Goods and Services Tax

GST – States – 69/ST-2 – Dated:- 10-8-2017 – HARYANA GOVERNMENT EXCISE AND TAXATION DEPARTMENT Notification The 10th August, 2017 No. 69/ST-2.- In exercise of the powers conferred by sub-rule (5) of rule 61 of the Haryana Goods and Services Tax Rules, 2017, read with Section 168 of the Haryana Goods and Services Tax Act, 2017 (19 of 2017), the Commissioner of State tax, Haryana on the recommendations of the Council, specifies that the return for the month as specified in column (2) of the Table

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Customs – 44/2017 – Dated:- 10-8-2017 – OFFICE OF THE COMMISSIONER Or CUSTOMS, NEW CUSTOM HOUSE, KANDLA-37O 210 Phone No. 02836-271468/469, Fax No.02836-271467 F. No. S/20-07/AG/GST/17-18 Dated: 10/08/2017 Public Notice No. 44/2017 Subject: Leviability of Integrated Goods and Service Tax (IGST) on High Sea Sales of imported goods and point of collection thereof -reg. Attention of the Trade is invited to Board s Circular No. 33/2017- Customs issued vide F. No. 450/131/2017-Cus-IV dated 01.08.2017. 2. The issue has been examined in the Board High Sea Sales is a common trade practice whereby the original importer sells the goods to a third person before the goods are entered for customs clearance. After the High Sea Sale of the goods, the Cus

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lso separately under section 5 of the Integrated Goods and Service tax Act, 2017. 4. GST council has deliberated the levy of Integrated Goods and Service Tax . on high sea sales in the case of imported goods. The council has decided that IGST on high sea sale (5) transactions of imported goods, whether one or multiple, shall be levied and collected only at the time of importation i.e. when the import declaration are filed before the Customs authority for the customs clearance purposes for the first time. Further, value addition accruing in each such high sea sale shall form part of the value on which IGST is collected at the time of clearance. 5. The above decision of the GST council is already envisioned in the provisions of su

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GST – States – G.O. (Ms) No. 091 – Dated:- 10-8-2017 – COMMERCIAL TAXES AND REGISTRATION (B1) DEPARTMENT G.O. (Ms) No. 91 Dated: 10.8.2017 Aadi-25 Thiruvalluvar Aandu, 2048 ANNEXURE. NOTIFICATION. No.SRO A-38(a)/2017. In exercise of the powers conferred by section 164 of the Tamil Nadu Goods and Services Tax Act, 2017 (Tamil Nadu Act 19 of 2017), the Governor of Tamil Nadu hereby makes the following rules to amend the Tamil Nadu Goods and Services Tax Rules, 2017, namely: – 1. These rules may be called the Tamil Nadu Goods and Services Tax (Amendment) Rules, 2017. 2. In the Tamil Nadu Goods and Services Tax Rules, 2017, (i) in rule 10, with effect from 29th June, 2017, in sub-rule (4), the word either shall be omitted; (ii) in rule 24, with effect from 29th July, 2017, in sub-rule (4), for the words within a period of thirty days from the appointed day , the words and figures on or before 30th September, 2017 shall be substituted; (iii) for rule 34, with effect from 27th July, 2017, t

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shall be substituted; (v) in rule 46, with effect from 27th July, 2017, for the third proviso, the following proviso shall be substituted, namely:- Provided also that in the case of the export of goods or services, the invoice shall carry an endorsement SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS ON PAYMENT OF INTEGRATED TAX or SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX , as the case may be, and shall, in lieu of the details specified in clause (e), contain the following details, namely,- (i) name and address of the recipient; (ii) address of delivery; and (iii) name of the country of destination: ; (vi) in rule 61, with effect from 29th June, 2017, for sub-rule (5), the following sub-rules shall be substituted, namely:- (5) Where the time limit for furnishing of details in FORM GSTR-1 under section 37 and in FORM GSTR-2 under secti

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credit in FORM GSTR-3 exceeds the amount of input tax credit in terms of FORM GSTR-3B, the additional amount shall be credited to the electronic credit ledger of the registered person. ; (vii) in rule 83, with effect from 29th June, 2017, in sub-rule (3), in the second proviso, for the word sub-section , the word sub-rule shall be substituted; (viii) in rule 89, with effect from 29th June, 2017, in sub-rule (4), in clause (E), for the word sub-section , the word clause shall be substituted; (ix) in rule 96, with effect from 29th June, 2017,- (a) in sub-rule (1), in clause (b), and (b) in sub-rule (3), after the words, figures and letters FORM GSTR 3 , the words and figures or FORM GSTR-3B, as the case may be; shall be inserted; (x) in rule 119, with effect from 29th June, 2017,- (a) in the heading, for the word agent , the word jobworker/agent shall be substituted; (b) for the expression sub-section (14) of section 142 , the expression section 141 or sub-section (14) of section 142 sha

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of goods, from whose custody such goods or things are seized, the custody of such goods or things for safe upkeep and the said person shall not remove, part with, or otherwise deal with the goods or things except with the previous permission of such officer. (4) Where it is not practicable to seize any such goods, the proper officer or the authorised officer may serve on the owner or the custodian of the goods, an order of prohibition in FORM GST INS-03 that he shall not remove, part with, or otherwise deal with the goods except with the previous permission of such officer. (5) The officer seizing the goods, documents, books or things shall prepare an inventory of such goods or documents or books or things containing, inter alia, description, quantity or unit, make, mark or model, where applicable, and get it signed by the person from whom such goods or documents or books or things are seized. 140. Bond and security for release of seized goods.- (1)The seized goods may be released on

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uivalent to the market price of such goods or things or the amount of tax, interest and penalty that is or may become payable by the taxable person, whichever is lower, such goods or, as the case may be, things shall be released forthwith, by an order in FORM GST INS-05, on proof of payment. (2) Where the taxable person fails to pay the amount referred to in sub-rule (1) in respect of the said goods or things, the Commissioner may dispose of such goods or things and the amount realized thereby shall be adjusted against the tax, interest, penalty, or any other amount payable in respect of such goods or things. CHAPTER – XVIII DEMANDS AND RECOVERY 142. Notice and order for demand of amounts payable under the Act.- (1) The proper officer shall serve, along with the (a) notice under sub-section (1) of section 73 or sub-section (1) of section 74 or sub-section (2) of section 76, a summary thereof electronically in FORM GST DRC-01, (b) statement under sub-section (3) of section 73 or sub-sec

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an order in FORM GST DRC-05 concluding the proceedings in respect of the said notice. (4) The representation referred to in sub-section (9) of section 73 or sub-section (9) of section 74 or sub-section (3) of section 76 shall be in FORM GST DRC-06. (5) A summary of the order issued under sub-section (9) of section 73 or sub-section (9) of section 74 or sub-section (3) of section 76 shall be uploaded electronically in FORM GST DRC-07, specifying therein the amount of tax, interest and penalty payable by the person chargeable with tax. (6) The order referred to in sub-rule (5) shall be treated as the notice for recovery. (7) Any rectification of the order, in accordance with the provisions of section 161, shall be made by the proper officer in FORM GST DRC-08. 143. Recovery by deduction from any money owed.- Where any amount payable by a person (hereafter referred to in this rule as the defaulter ) to the Government under any of the provisions of the Act or the rules made thereunder is n

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ay be required for recovering the amount payable along with the administrative expenditure incurred on the recovery process. (2) The said goods shall be sold through a process of auction, including e-auction, for which a notice shall be issued in FORM GST DRC-10 clearly indicating the goods to be sold and the purpose of sale. (3) The last day for submission of bid or the date of auction shall not be earlier than fifteen days from the date of issue of the notice referred to in sub-rule (2): Provided that where the goods are of perishable or hazardous nature or where the expenses of keeping them in custody are likely to exceed their value, the proper officer may sell them forthwith. (4) The proper officer may specify the amount of pre-bid deposit to be furnished in the manner specified by such officer, to make the bidders eligible to participate in the auction, which may be returned to the unsuccessful bidders, forfeited in case the successful bidder fails to make the payment of the full

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this rule as the third person ), a notice in FORM GST DRC-13 directing him to deposit the amount specified in the notice. (2) Where the third person makes the payment of the amount specified in the notice issued under sub-rule (1), the proper officer shall issue a certificate in FORM GST DRC-14 to the third person clearly indicating the details of the liability so discharged. 146. Recovery through execution of a decree, etc.- Where any amount is payable to the defaulter in the execution of a decree of a civil court for the payment of money or for sale in the enforcement of a mortgage or charge, the proper officer shall send a request in FORM GST DRC- 15 to the said court and the court shall, subject to the provisions of the Code of Civil Procedure, 1908 (5 of 1908), execute the attached decree, and credit the net proceeds for settlement of the amount recoverable. 147. Recovery by sale of movable or immovable property.- (1) The proper officer shall prepare a list of movable and immovabl

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aint under sub-rule (1) is- (a) an immovable property, the order of attachment or distraint shall be affixed on the said property and shall remain affixed till the confirmation of sale; (b) a movable property, the proper officer shall seize the said property in accordance with the provisions of chapter XIV of the Act and the custody of the said property shall either be taken by the proper officer himself or an officer authorised by him. (4) The property attached or distrained shall be sold through auction, including e-auction, for which a notice shall be issued in FORM GST DRC- 17 clearly indicating the property to be sold and the purpose of sale. (5) Notwithstanding anything contained in the provision of this Chapter, where the property to be sold is a negotiable instrument or a share in a corporation, the proper officer may, instead of selling it by public auction, sell such instrument or a share through a broker and the said broker shall deposit to the Government so much of the proc

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or distraint of any property on the ground that such property is not liable to such attachment or distraint, the proper officer shall investigate the claim or objection and may postpone the sale for such time as he may deem fit. (9) The person making the claim or objection must adduce evidence to show that on the date of the order issued under sub-rule (1) he had some interest in, or was in possession of, the property in question under attachment or distraint. (10) Where, upon investigation, the proper officer is satisfied that, for the reason stated in the claim or objection, such property was not, on the said date, in the possession of the defaulter or of any other person on his behalf or that, being in the possession of the defaulter on the said date, it was in his possession, not on his own account or as his own property, but on account of or in trust for any other person, or partly on his own account and partly on account of some other person, the proper officer shall make an orde

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such bidder: Provided that where the highest bid is made by more than one person and one of them is a co-owner of the property, he shall be deemed to be the successful bidder. (13) Any amount, including stamp duty, tax or fee payable in respect of the transfer of the property specified in subrule (12), shall be paid to the Government by the person to whom the title in such property is transferred. (14) Where the defaulter pays the amount under recovery, including any expenses incurred on the process of recovery, before the issue of the notice under sub-rule (4), the proper officer shall cancel the process of auction and release the goods. (15) The proper officer shall cancel the process and proceed for re-auction where no bid is received or the auction is considered to be non-competitive due to lack of adequate participation or due to low bids. 148. Prohibition against bidding or purchase by officer.- No officer or other person having any duty to perform in connection with any sale un

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ourt shall be attached by a written order in FORM GST DRC-16 prohibiting.- (a) in the case of a debt, the creditor from recovering the debt and the debtor from making paymen thereof until the receipt of a further order from the proper officer; (b) in the case of a share, the person in whose name the share may be standing from transferring the same or receiving any dividend thereon; (c) in the case of any other movable property, the person in possession of the same from giving it to the defaulter. (2) A copy of such order shall be affixed on some conspicuous part of the office of the proper officer, and another copy shall be sent, in the case of debt, to the debtor, and in the case of shares, to the registered address of the corporation and in the case of other movable property, to the person in possession of the same. (3) A debtor, prohibited under clause (a) of sub-rule (1), may pay the amount of his debt to the proper officer, and such payment shall be deemed as paid to the defaulter

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e of such interest or such other order as the circumstances of the case may require. (2) The other partners shall be at liberty at any time to redeem the interest charged or, in the case of a sale being directed, to purchase the same. 154. Disposal of proceeds of sale of goods and movable or immovable property.- The amounts so realised from the sale of goods, movable or immovable property, for the recovery of dues from a defaulter shall,- (a) first, be appropriated against the administrative cost of the recovery process; (b) next, be appropriated against the amount to be recovered; (c) next, be appropriated against any other amount due from the defaulter under the Act or the Central Goods and Services Tax Act, 2017 or the Integrated Goods and Services Tax Act, 2017 or the Union Territory Goods and Services Tax Act or any of the State Goods and Services Tax Act, 2017 and the rules made thereunder; and (d) any balance, be paid to the defaulter. 155. Recovery through land revenue authorit

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aulter. 158. Payment of tax and other amounts in instalments.- (1) On an application filed electronically by a taxable person, in FORM GST DRC- 20,seeking extension of time for the payment of taxes or any amount due under the Act or for allowing payment of such taxes or amount in instalments in accordance with the provisions of section 80, the Commissioner shall call for a report from the jurisdictional officer about the financial ability of the taxable person to pay the said amount. (2) Upon consideration of the request of the taxable person and the report of the jurisdictional officer, the Commissioner may issue an order in FORM GST DRC- 21 allowing the taxable person further time to make payment and/or to pay the amount in such monthly instalments, not exceeding twenty-four, as he may deem fit. (3) The facility referred to in sub-rule (2) shall not be allowed where- (a) the taxable person has already defaulted on the payment of any amount under the Act or the Central Goods and Servi

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erned Revenue Authority or Transport Authority or any such Authority to place encumbrance on the said movable or immovable property, which shall be removed only on the written instructions from the Commissioner to that effect. (3) Where the property attached is of perishable or hazardous nature, and if the taxable person pays an amount equivalent to the market price of such property or the amount that is or may become payable by the taxable person, whichever is lower, then such property shall be released forthwith, by an order in FORM GST DRC-23, on proof of payment. (4) Where the taxable person fails to pay the amount referred to in sub-rule (3) in respect of the said property of perishable or hazardous nature, the Commissioner may dispose of such property and the amount realized thereby shall be adjusted against the tax, interest, penalty, fee or any other amount payable by the taxable person. (5) Any person whose property is attached may, within seven days of the attachment under su

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r before or after the institution of prosecution, make an application under sub-section (1) of section 138 in FORM GST CPD-01 to the Commissioner for compounding of an offence. (2) On receipt of the application, the Commissioner shall call for a report from the concerned officer with reference to the particulars furnished in the application, or any other information, which may be considered relevant for the examination of such application. (3) The Commissioner, after taking into account the contents of the said application, may, by order in FORM GST CPD-02, on being satisfied that the applicant has co-operated in the proceedings before him and has made full and true disclosure of facts relating to the case, allow the application indicating the compounding amount and grant him immunity from prosecution or reject such application within ninety days of the receipt of the application. (4) The application shall not be decided under sub-rule (3) without affording an opportunity of being hear

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that appears to have been committed by him in connection with the compounding proceedings and the provisions the Act shall apply as if no such immunity had been granted. ; (xii) in FORM GST REG-13, with effect from 29th June, 2017, in PART-B, for serial numbers 7, 8, 9, 11 , the serial numbers 5,6,7,8 shall be substituted; (xiii) in FORM GST REG-28, with effect from 29th June, 2017, for the brackets, words and figures [See rule 4(3)] , the brackets, words and figures [See rule 24(3)] shall be substituted; (xiv) in FORM GSTR-1, with effect from 29th June, 2017, in serial number 11, for the words, figures and brackets Amendment of information furnished in Table No.11[1] in GSTR-1 statement for earlier tax periods [Furnish revised information] , the words, figures and brackets II. Amendment of information furnished in Table No.11[1] in GSTR-1 statement for earlier tax periods [Furnish revised information] shall be substituted; (xv) in FORM GST TRAN-1, with effect from 29th June, 2017, in

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GST – States – Memo No. 1698/ST-2, – Dated:- 10-8-2017 – From Excise & Taxation Commissioner Haryana, Panchkula. To All Dy. Excise & Taxation Commissioners (.,ST), in the State of Haryana. Memo No. 1698/ST-2, Panchkula, dated the 10.08.2017 Subject:- Guidelines to complete proceedings for grant of Registration Certificate under HGST Act, 2017. On the captioned subject, please find enclosed herewith guidelines to complete the proceedings for grant Of Registration Certificate under HGST Act, 2017. The above guidelines must be brought to the notice Of the officers/officials working under your jurisdiction and control and be followed in true letter and spirit. Addl. Excise & Taxation Commissioner (GST), for Excise Taxation Commissi

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on Inspector should record the reasons of getting registration, type of business, stocks of raw, semi finished or finished goods, verity the documents submitted/uploaded or get any other document, if required. 5. He shall verify documents related to solvency, credentials, genuineness of the person and his business. 6. Photo and exact location Of the business premises shall also be taken & uploaded. 7. Taxation Inspector shall upload inspection report in form REG-30 within 15 days from the date of inspection. 8. On the report of Taxation Inspector, the Proper Officer of the ward shall confirm the approval of registration certificate or initiate action for cancellation of approved registration certificate by issuing a notice. Timeline for

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Goods and Services Tax – Started By: – Ganeshan Kalyani – Dated:- 9-8-2017 Last Replied Date:- 11-8-2017 – Amid pressure from some states, the GST Council will soon start publishing rates of various products to prod companies to pass on gains, including those from input tax credit. To begin with, 150 items will be taken up. It will have a detailed explanation of previous taxes and prices as well as new prices after GST. It will also explain the price differential between the two tax regimes, said an official who did not wish to be identified. – Reply By Ganeshan Kalyani – The Reply = More items would be added once the campaign with 150 products takes off.Another officer said, This will only be illustrative. While the government had discuss

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e Centre.There were some ministers who wanted to let companies decide on pricing, at least in the short term, arguing that it will be against the spirit of empowering businesses and making life simpler. What they want is price control, which will result in inspector raj, said a source.. – Reply By Ganeshan Kalyani – The Reply = Already, officers in states such as Maharashtra and Tamil Nadu seem to have jumped the gun and shot off letters seeking details of price changes, while others such as Andhra Pradesh and Puducherry have limited themselves to phone calls. Durables and FMCG players as well as fast food chains have received enquiries regarding prices, which are not permitted – Reply By Ganeshan Kalyani – The Reply = GST Council finalised

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es) will not be available. Isn t sir? – Reply By Arunachalam siva – The Reply = As per erstwhile law, credit on material(Ms channels, Ms beams and angles) used for making structural support(fixed with earth) to machinery/equipment was not available. But as per sec 17(d) of CGST act and explanation provided at end of sec 17, ITC is available on materials (Ms channels, Ms beams and angles) used for such structural support. Is this correct sir? – Reply By Arunachalam siva – The Reply = What is Tax treatment/procedure for Removal of used goods purchased prior to GST? – Reply By Arunachalam siva – The Reply = Sir, What is procedure under GST law for sending Machinery/equipment outside the factory for any work(repair, rewinding etc)?. As per erst

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Goods and Services Tax – Started By: – THYAGARAJAN KALYANASUNDARAM – Dated:- 9-8-2017 Last Replied Date:- 11-8-2017 – Dear sir, What Is the rate of tax for tea and coffee supply by the vendor to our employees regularly. And if they don't charge, then is there any RCM to be paid? And what rate. Thanks in advance. – Reply By KASTURI SETHI – The Reply = Has vendor crossed threshold exemption of Rd.20 lakhs ? You are not responsible for vendor' s GST liability. No RCM is applicable here. –

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Goods and Services Tax – Started By: – pawan kumar – Dated:- 9-8-2017 Last Replied Date:- 10-8-2017 – if pathpedhi (Credit Co operative Society) paid commission to their agent. in this case can credit cooperative society paid agent gst on RCM basis on commission amount . or agent have to take gst registration.Agent means who collect money from client and deposit it into client account in credit co operative society. for this service society paid commission to their agent. can society paid gst o

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Service Tax – Started By: – shahid hashmi – Dated:- 9-8-2017 Last Replied Date:- 14-8-2017 – Whether Job Work Charges will attract GST on supply of Job Work Services by the Job Worker for Job Work in the GST regime on raw material / process goods supplied to Job Woker before the appointed date or before GST applicable date by the Principal. – Reply By HimansuSekhar Sha – The Reply = If the job work done post gst then gst is applicable on job work charges – Reply By HimansuSekhar Sha – The Reply = Raw material supplied earlier has no bearing on job work. – Reply By shahid hashmi – The Reply = Thanks for you reply. but Section 141 says that Where any inputs received at a place of business had been removed as such or removed after being parti

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hukla – The Reply = Kindly read section in place of rule in my reply.The second proviso to this section lends credence to my views wherein it has been prescribed that if goods are not returned within the specified period , input tax credit shall be recovered. so obviously it has to be input tax credit that must have been taken on the goods so supplied. – Reply By HimansuSekhar Sha – The Reply = If the goods will not be returned, within six months, then it will be treated as a supply. The provisions are specifically to determine the supply of goods. Regardinbg the services provided to the job worker after the appointed date, gst will be leviable. In the existing law, the same was charged service tax when the process was not amounting to manu

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GST – GST Law and Procedure – 252 – GST – CONCEPT & STATUS – As on 3rd June, 2017 Introduction: The introduction of Goods and Services Tax (GST) would be a very significant step in the field of indirect tax reforms in India. By amalgamating a large number of Central and State taxes into a single tax, it would mitigate cascading or double taxation in a major way and pave the way for a common national market. From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which is currently estimated to be around 25%-30%. Introduction of GST would also make Indian products competitive in the domestic and international markets. Studies show that this would have a boosting impact on economic growth. Last but not the least, this tax, because of its transparent and self-policing character, would be easier to administer. Genesis: 2. The idea of moving towards the GST was first mooted by the then Union Finance Minister in his Bud

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ains. The Centre has the powers to levy tax on the manufacture of goods (except alcoholic liquor for human consumption, opium, narcotics etc.) while the States have the powers to levy tax on sale of goods. In case of inter-State sales, the Centre has the power to levy a tax (the Central Sales Tax) but, the tax is collected and retained entirely by the originating States. As for services, it is the Centre alone that is empowered to levy service tax. Since the States are not empowered to levy any tax on the sale or purchase of goods in the course of their importation into or exportation from India, the Centre levies and collects this tax as additional duties of customs, which is in addition to the Basic Customs Duty. This additional duty of customs (commonly known as CVD and SAD) counter balances excise duties, sales tax, State VAT and other taxes levied on the like domestic product. Introduction of GST would require amendments in the Constitution so as to concurrently empower the Centre

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ed tax – IGST) on inter-State trade or commerce (including imports) in goods or services. The Central Government will have the power to levy excise duty in addition to the GST on tobacco and tobacco products. The tax on supply of five specified petroleum products namely crude, high speed diesel, petrol, ATF and natural gas would be levied from a later date on the recommendation of GST Council. 4.1 A Goods and Services Tax Council (GSTC) shall be constituted comprising the Union Finance Minister, the Minister of State (Revenue) and the State Finance Ministers to recommend on the GST rate, exemption and thresholds, taxes to be subsumed and other features. This mechanism would ensure some degree of harmonization on different aspects of GST between the Centre and the States as well as across States. One half of the total number of members of GSTC would form quorum in meetings of GSTC. Decision in GSTC would be taken by a majority of not less than three-fourth of weighted votes cast. Centre

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g major decisions have been taken by the GSTC: (i) The threshold exemption limit would be ₹ 20 lakh. For special category States enumerated in article 279A of the Constitution, threshold exemption limit has been fixed at ₹ 10 lakh. (ii) Composition threshold shall be ₹ 50 lakh. Composition scheme shall not be available to inter-State suppliers, service providers (except restaurant service) and specified category of manufacturers. (iii) Existing tax incentive schemes of Central or State governments may be continued by respective government by way of reimbursement through budgetary route. The schemes, in the present form, would not continue in GST. (iv) There would be four tax rates namely 5%, 12%, 18% and 28%. The tax rates for different goods and services have been finalized. Besides, some goods and services would be under the list of exempt items. The exempted services has been finalized which is same as the services exempted under existing service tax law, except se

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er above ₹ 1.5 crore shall be divided equally in the ratio of 50% each for the Central and State tax administration. (vii) Powers under the IGST Act shall also be cross-empowered on the same basis as under CGST and SGST Acts with few exceptions. (viii) Power to collect GST in territorial waters shall be delegated by Central Government to the States. (ix) Formula and mechanism for GST Compensation Cess has been finalised. (x) Nine rules on registration, composition levy, valuation, tax invoice, input tax credit, payment, returns, refund and transitional provisions have been recommended. (xi) www.gst.gov.in, managed by GSTN, shall be the Common Goods and Services Tax Electronic Portal. (xii) Rate of interest on delayed payments and delayed refund has been recommended. (xiii) Rate of TCS has been recommended. Salient Features of GST: 6. The salient features of GST are as under: (i) GST would be applicable on supply of goods or services as against the present concept of tax on the ma

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to IGST. (vii) CGST, SGST /UTGST& IGST would be levied at rates to be mutually agreed upon by the Centre and the States under the aegis of the GSTC. (viii) GST would replace the following taxes currently levied and collected by the Centre: a) Central Excise Duty; b) Duties of Excise (Medicinal and Toilet Preparations); c) Additional Duties of Excise (Goods of Special Importance); d) Additional Duties of Excise (Textiles and Textile Products); e) Additional Duties of Customs (commonly known as CVD); f) Special Additional Duty of Customs (SAD); g) Service Tax; h) Cesses and surcharges insofar as they relate to supply of goods or services. (ix) State taxes that would be subsumed within the GST are: a) State VAT; b) Central Sales Tax; c) Purchase Tax; d) Luxury Tax; e) Entry Tax (All forms); f) Entertainment Tax (except those levied by the local bodies); g) Taxes on advertisements; h) Taxes on lotteries, betting and gambling; i) State cesses and surcharges insofar as they relate to sup

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inimum and it would be harmonized for the Centre and the States as well as across States as far as possible. (xv) Exports would be zero-rated. (xvi) Credit of CGST paid on inputs may be used only for paying CGST on the output and the credit of SGST/UTGST paid on inputs may be used only for paying SGST/UTGST. In other words, the two streams of input tax credit (ITC) cannot be cross utilized, except in specified circumstances of inter-State supplies for payment of IGST. The credit would be permitted to be utilized in the following manner: a) ITC of CGST allowed for payment of CGST & IGST in that order; b) ITC of SGST allowed for payment of SGST & IGST in that order; c) ITC of UTGST allowed for payment of UTGST & IGST in that order; d) ITC of IGST allowed for payment of IGST, CGST & SGST/UTGST in that order. ITC of CGST cannot be used for payment of SGST/UTGST and vice versa. (xvii) Accounts would be settled periodically between the Centre and the State to ensure that the

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s, local authorities and government agencies, who are recipients of supply, to deduct tax at the rate of 1% from the payment made or credited to the supplier where total value of supply, under a contract, exceeds two lakh and fifty thousand rupees. (xxii) Refund of tax to be sought by taxpayer or by any other person who has borne the incidence of tax within two years from the relevant date. (xxiii) Obligation on electronic commerce operators to collect tax at source , at such rate not exceeding two per cent. (2%) of net value of taxable supplies, out of payments to suppliers supplying goods or services through their portals. (xxiv) System of self-assessment of the taxes payable by the registered person. (xxv) Audit of registered persons to be conducted in order to verify compliance with the provisions of Act. (xxvi) Limitation period for raising demand is three (3) years from the due date of filing of annual return or from the date of erroneous refund for raising demand for short-payme

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on has been made. (xxxii) Advance Ruling Authority would be constituted by States in order to enable the taxpayer to seek a binding clarity on taxation matters from the department. Centre would adopt such authority under CGST Act. (xxxiii) An anti-profiteering clause has been provided in order to ensure that business passes on the benefit of reduced tax incidence on goods or services or both to the consumers. (xxxiv) Elaborate transitional provisions have been provided for smooth transition of existing taxpayers to GST regime. Benefits of GST: 7. (A) Make in India: (i) Will help to create a unified common national market for India, giving a boost to Foreign investment and Make in India campaign; (ii) Will prevent cascading of taxes as Input Tax Credit will be available across goods and services at every stage of supply; (iii) Harmonization of laws, procedures and rates of tax; (iv) It will boost export and manufacturing activity, generate more employment and thus increase GDP with gain

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e multiplicity of taxes that are at present governing our indirect tax system leading to simplification and uniformity; (iii) Reduction in compliance costs – No multiple record keeping for a variety of taxes- so lesser investment of resources and manpower in maintaining records; (iv) Simplified and automated procedures for various processes such as registration, returns, refunds, tax payments, etc; (v) All interaction to be through the common GSTN portal- so less public interface between the taxpayer and the tax administration; (vi) Will improve environment of compliance as all returns to be filed online, input credits to be verified online, encouraging more paper trail of transactions; (vii) Common procedures for registration of taxpayers, refund of taxes, uniform formats of tax return, common tax base, common system of classification of goods and services will lend greater certainty to taxation system; (viii) Timelines to be provided for important activities like obtaining registrati

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e taxpayers, GSTN would be developing back-end IT modules for 27 States who have opted for the same. The migration of existing taxpayers has already started from November, 2016. The Revenue department of both Centre and States are pursuing the presently registered taxpayers to complete the necessary formalities on the IT system operated by GSTN for successful migration. About 75 percent of existing registrants have already migrated to the GST systems. 8.1 GSTN has selected 34 IT, ITeS and financial technology companies, to be called GST Suvidha Providers (GSPs). GSPs would develop applications to be used by taxpayers for interacting with the GSTN. Other Legislative Requirements: 9. Four Laws namely CGST Act, UTGST Act, IGST Act and GST (Compensation to States) Act have been passed by the Parliament and since been notified on 12th April, 2017. Twenty three States have passed SGST Act. Other States are expected to pass them in the month of June, 2017. 9.1 The levy of the tax can commence

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ering Committee for implementation of GST System for CBEC. The name of IT project of CBEC under GST is SAKSHAM involving a total project value of ₹ 2,256 crores. 10.1 It was also felt that the organizational structure and deployment of human resources needed a review for smooth and effective implementation of GST. A Working Group has after extensive deliberations and studies, submitted its Report which has been approved by the Government. 10.2 Augmentation of human resources would be necessary to handle large taxpayers base in GST scattered across the length and breadth of the country. Capacity building, particularly in the field of Accountancy and Information Technology for the departmental officers has to be taken up in a big way. A massive four-tier training programme is being conducted under the leadership of NACEN. This training project is aimed at imparting training on GST law and procedures to more than 60,000 officers of CBEC and Commercial Tax officers of State Governmen

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on the CBEC website www.cbec.gov.in : (i) Presentation on GST (ii) GST – Concept & Status (iii) GST Tax rates for goods and services (iv) FAQs on GST in English, Hindi and eight regional languages (v) CGST, IGST, UTGST and GST (Compensation to States) Act (vi) Nine finally approved Rules (vii) Constitutional Amendment Act Way Forward: 11. Looking forward, there are number of goal posts that need to be met before GST can be rolled out in the country. The following tasks are required to be completed within defined time frame: (i) Passage of SGST laws by all State legislatures; (ii) Recommendation of remaining Model GST Rules by GST Council; (iii) Notification of GST Rules; (iv) Establishment and upgradation of IT framework; (v) Meeting implementation challenges; (vi) Effective coordination between Centre & State tax administrations; (vii) Reorganization of field formations; (viii) Training of Officials; and (ix) Outreach programs for all stakeholders including Trade & Indust

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Goods and Services Tax – Started By: – THYAGARAJAN KALYANASUNDARAM – Dated:- 9-8-2017 Last Replied Date:- 21-8-2017 – I want to know the the Consequences for non filing of GSTR-3B on or before its due date. Thanks in Advance… – Reply By KASTURI SETHI – The Reply = Not liable to penalty. Two months period is for understanding GST law. – Reply By THYAGARAJAN KALYANASUNDARAM – The Reply = Dear sir, Thanks for your valuable support. Someone said that, if the gstr-3b not filed on or before 20th of this month then we can't file the gstr-1 return in September 2017 with respect to July 2017. Is it true? Thanks in advance. – Reply By KASTURI SETHI – The Reply = GSTR 3 B, GSTR 3, GSTR 2 and GSTR 1 are to be filed serial wise. Data to be filled

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progress as already explained above. Stipulated date is now extended period. – Reply By sankul gupta – The Reply = sir, there has been an error in filing GSTR-3B, itc figures despite of being punched and saved are not being reflected in the return and the same is being shown as submitted due to which my output liability amounts to ₹ 8 lacs. However my itc is more than 8 lacs. what should i do in such case as paying such huge amount in cash would lead to financial hardship. how should i proceed in this matter ?? can i skip GSTR 3B? Please guide. Thank you. – Reply By KASTURI SETHI – The Reply = Do not be panicky. Wait for a few days I.e. till the last date of GSTR 3 B. There is some fault in the system. Your exact liability will be cle

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GST Forms Rules – Forms – Central Goods and Services Tax Rules, 2017 Visit this URL for GST Forms / Formats – Statutory Provisions, Acts, Rules, Regulations, Taxation

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GST – GST Law and Procedure – 029 – Chapter Twenty Nine Valuation in GST Value of Supply Every fiscal statue makes provision for determination of value as tax is normally payable on ad-valorem basis. In GST also, tax is payable on ad-valorem basis i.e. percentage of value of the supply of goods or services. Section 15 of the CGST Act and Rule 27 to Rule 35 of CGST Rules, 2017 (Chapter IV – Determination of Value of Supply), contain provisions related to valuation of supply of goods or services made in different circumstances and to different persons. Transaction Value Under GST law, taxable value is the transaction value i.e. price actually paid or payable, provided the supplier & the recipient are not related and price is the sole consideration. In most of the cases of regular normal trade, invoice value will be the taxable value. However, to determine value of certain specific transactions, Determination of Value of Supply rules have been prescribed in CGST Rules, 2017. Compulso

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to the discounts is reversed by the recipient. Taxable value when consideration is not solely in money In some cases, where consideration for a supply is not solely in money, taxable value has to be determined as – prescribed in the rules. In such cases following values have to be taken sequentially to determine the taxable value: – i. Open Market Value of such supply. ii. Total money value of the supply i.e. monetary consideration plus money value of the non-monetary consideration. iii. Value of supply of like kind and quality. iv. Value of supply based on cost i.e. cost of supply plus 10% mark-up. v. Value of supply determined by using reasonable means consistent with principles & general provisions of GST law. (Best Judgement method) Open Market Value means the full value in money excluding taxes under GST laws, payable by a person to obtain such supply at the time when supply being valued is made, provided such supply is between unrelated persons and price is the sole consider

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company etc. Under GST law various categories of related persons have been specified and as relation may influence the price between two related persons therefore special valuation rule has been framed to arrive at the taxable value of transactions between related persons. In such cases following values have to be taken sequentially to determine the taxable value: – i. Open Market Value ii. Value of supply of like kind and quality. iii. Value of supply based on cost i.e. cost of supply plus 10% mark-up. iv. Value of supply determined by using reasonable means consistent with principles & general provisions of GST law. (Best Judgement method) However if the recipient is eligible for full input tax credit, the invoice value will be deemed to be the open market value. It has also been provided that where the goods being supplied are intended for further supply as such by the recipient, the value shall, at the option of the supplier, be an amount equivalent to 90% of the price charged

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to determine the taxable value: – i. Value of supply based on cost i.e. cost of supply plus 10% mark-up. i. Value of supply determined by using reasonable means consistent with principles & general provisions of GST law. (Best Judgement method) Value of supply of services in case of a Pure Agent Subject to fulfilment of certain conditions, the expenditure and costs incurred by the supplier as a pure agent of the recipient of supply of service has to be excluded from the value of supply. Illustration Corporate services firm A is engaged to handle the legal work pertaining to the incorporation of Company B. Other than its service fees, A also recovers from B, registration fee and approval fee for the name of the company paid to Registrar of the Companies. The fees charged by the Registrar of the companies registration and approval of the name are compulsorily levied on B. A is merely acting as a pure agent in the payment of those fees. Therefore, A s recovery of such expenses is a d

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s of foreign currency. However if RBI reference rate for a currency is not available then taxable value is 1% of the gross amount of Indian Rupees provided/received by the person changing the money. Case 2: Transaction where neither of the currencies exchanged is Indian Rupees Taxable value will be 1% of the lesser of the two amounts the person changing the money would have received by converting (at RBI reference rate) any of the two currencies in Indian Rupees. Option-2 The person supplying the service may also exercise the following option to ascertain the taxable value, however once opted then he cannot withdraw the during the remaining part of the financial year: – One percent of the gross amount of currency exchanged for an amount up to one lakh rupees, subject to minimum amount of two hundred and fifty rupees. One thousand rupees and half of a percent of the gross amount of currency exchanged for an amount exceeding one lakh rupees and up to ten lakh rupees. Five thousand rupees

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such allocation is intimated to the policy holder at the time of collection of premium. Single premium annuity policy where allocation for investments and savings is not intimated to the policy holder – taxable value is ten percent of the single premium charged from the policy holder. Other cases- Twenty five percent of premium charged from the policy holder in the first year and twelve and a half percent of premium charged for subsequent years. However, where insurance policy has benefit of risk coverage only, then taxable value is entire premium charged from the policy holder. Special provision related to determination of value of second hand goods The taxable value of supply of second hand goods i.e. used goods as such or after such minor processing which does not change the nature of goods shall be the difference between the purchase price and the selling price, provided no input tax credit has been availed on purchase of such goods. However, if the selling price is less than purc

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a coupon, or a stamp (other than postage stamp) which is redeemable against a supply of goods or services or both shall be equal to the money value of the goods or services or both redeemable against such token, voucher, coupon, or stamp. Value of taxable services provided by a notified class of service providers as referred to in para 2 of schedule 1 between the distinct persons The taxable value is deemed to be Nil wherever input tax credit is available. Valuation of certain works contract services (i) Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier. In case of supply of service mentioned above, involving transfer of property in land or undivided share of land, as the case may be, the value

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GST – GST Law and Procedure – 020 – Chapter Twenty Transition Provisions under GST GST is a significant reform in the field of indirect taxes in our country. Multiple taxes levied and collected by the Centre and States have been replaced by one tax called Goods and Services Tax (GST). GST is a multi-stage value added tax on consumption of goods or services or both. As GST sought to consolidate multiple taxes into one it was very essential to have transitional provisions to ensure that the transition to the GST regime is very smooth and hassle free and no ITC (input tax credit) / benefits earned in the existing regime are lost. The transition provisions can be categorized under three heads: a) relating to input tax credit b) Continuance of existing procedures such as job work for a reasonable period without any adverse consequence under GST law. c) All claims (pending as well as future) pertaining to existing laws filed before, on or after the appointed day. a) A. Transitional arrangem

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credit can also be taken by filing the requisite declaration in the GST TRAN 1. c) Credit on duty paid stock: A registered taxable person, other than manufacturer or service provider, may have a duty paid goods in his stock on 1st July, 2017. GST would be payable on all supplies of goods or services made after the appointed day. It is not the intention of the Government to collect tax twice on the same goods. Hence, in such cases, it has been provided that the credit of the duty/tax paid earlier would be admissible as credit. Such credit can be taken as under: i. credit shall be taken on the basis of invoice evidencing payment of duty of excise or VAT. ii. such invoices should be less than one-year old. iii. declare the stock of duty paid goods within prescribed time on the common portal. d) credit on duty paid stock when registered person does not possess the document evidencing payment of excise duty/VAT. For such traders who do not have excise or VAT Invoice, there is a scheme to a

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Credit relating to exempted goods under the existing law which are now taxable. Input Tax Credit of CENVAT / VAT in respect of input, semi-finished and finished goods in stock attributable to such exempted goods or services which are now taxable can also be taken in the same manner. f) Input /input services in transit: There might be a scenario where input or input services are received on or after the appointed day but the duty or tax on the same was paid by the supplier under the existing law. Registered person (RP) may take credit of eligible duties and taxes, provided the invoice has been recorded in the books within 30 days from 1st July, 2017. The period can be extended by the Commissioner GST by another 30 days. A statement of such invoices have to be furnished. ISD can also distribute such credit. g) Tax paid under existing law under composition scheme: Those taxpayers who paid tax at fixed rate or fixed amount in lieu of tax payable under the existing law but are working under

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rsed on account of non-payment of consideration within three months can be reclaimed if payment is made to the supplier of service within 3 months from 1st July, 2017 j) Where any goods or capital goods belonging to the principal are lying at the premises of the agent on the Appointed Day: This provision is specific to SGST law. In such cases, agent shall be entitled to take credit subject to the following conditions: i. the agent is a registered taxable person ii. both the principal and the agent declare the details of stock iii. the invoices are not earlier than twelve months iv. the principal has either reversed or not availed of the input tax credit. b) Transition provisions relating to job work, goods returned/ sent on approval etc.: a) Job work: – Inputs, semi-finished goods or finished goods were sent to the job worker or any other premises without payment of duty/VAT under the existing law. No GST is payable by the job worker when such goods are returned by him within six month

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pproval basis before 6 months of the appointed day i.e. 1st July, 2017 but returned within 6 months from 1st July, 2017: No tax is payable by the person returning the goods. Commissioner may extend the period by 2 months. If returned after that, tax is payable if the supply is taxable under GST (by the recipient. If not returned, tax is payable by the person who sent the goods on approval basis. d) TDS deducted in VAT Where a supplier has made any sale of goods and tax was required to be deducted under VAT Act and Invoice was issued before the appointed day, however, the payment was made on or after appointed day. In such cases no TDS under GST is to be deducted. e) Price revision in respect of existing contracts In case of upward price revision, a registered person will issue a supplementary invoice or debit notes within 30 days from the date of revision and such revision shall be treated as supply under GST and tax is payable under this Act. In case of downward revision, registered p

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GST – GST Law and Procedure – 005 – Chapter Five Time of Supply in GST Time of Supply In order to calculate and discharge tax liability it is important to know the date when the tax liability arises i.e. the date on which the charging event has occurred. In GST law, it is known as Time of Supply. GST law has provided separate provisions to determine the time of supply of goods and time of supply of services. Sections 12, 13 & 14 of the CGST Act, 2017, deals with the provisions related to time of supply and by virtue of section 20 of the IGST Act, 2017, these provisions are also applicable to inter-State supplies leviable to Integrated tax. Point of time when supplier receives the payment or date of receipt of payment The phrase the date on which supplier receives the payment or the date of receipt of payment means the date on which payment is entered in books of accounts of the supplier or the date on which the payment is credited to his bank account, whichever is earlier. Time of

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e special procedures to be followed by such persons including those with regard to registration, furnishing of return, payment of tax and administration of such persons. In exercise of powers conferred by this section, the government on the recommendations of the GST Council has notified the registered persons (who have not opted for composition levy) as the class of persons who shall pay GST on outward supply of goods at the time of supply specified in clause (a) of sub-section (2) of Section 12. Thus, in respect of supply of goods by normal registered persons (other than composition dealers), the time of supply will be the issue of invoice (or the last date by which invoice has to be issued in terms of Section 31) Therefore, all taxpayers (except composition taxpayers) are exempted from paying GST at the time of receipt of advance in relation to supply of goods. The entire GST shall be payable only when the invoice is issued for such supply of goods. The special procedure will be app

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to have been made to the extent it is covered by the invoice or by the payment, as the case may be. For example, Firm A receives an advance of ₹ 2500/- on 29.07.2017 for provision ofservices worth ₹ 10000/- to be supplied in the month of September, then it is deemed that firm A has made a supply of ₹ 2500/- on 29.07.2017 and tax liability on ₹ 2500/- is to be discharged by 20.08.2017. Although tax is payable on any advance received for a supply of services, however for the convenience of trade it is provided that if a supplier of taxable services receives an amount up to ₹ 1000/- in excess of the amount indicated on the tax invoice, then the supplier has an option to take the date of issue of invoice in respect of such supply as time of supply. For example, if a supplier has received an amount of ₹ 1500/- against an invoice of ₹ 1100/- on 25.07.2017 and date of invoice of next supply to the said recipient is 14.08.2017, then he has option to tr

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m the date of issue of invoice or any other legal document in lieu of invoice by the supplier. However, if it is not possible to determine the time of supply in aforesaid manner then the time of supply is the date of entry of the transaction in the books of accounts of the recipient of supply. Time of supply of services in case of supply by Associated Enterprises located outside India In this case, the time of supply is the date of entry in the books of account of the recipient or the date of payment, whichever is earlier. Time of supply in case of supply of vouchers Voucher has been defined in the CGST Act, 2017 as an instrument where there is an obligation to accept it as consideration or part consideration for a supply of goods or services or both and where the goods or services or both to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instrument.

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termine the time of supply under aforesaid provisions, the time of supply is,- Due date of filing of return, in case where periodical return has to be filed Date of payment of tax in all other cases. Time of supply of goods or services related to an addition in the value of supply by way of interest, late fees or penalty Time of supply related to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which suppliers receives such addition in value. For example a supplier receives consideration in the month of September instead of due date of July and for such delay he is eligible to receive an interest amount of ₹ 1000/- and said amount is received on 15.12.2017. The time of supply of such amount (Rs. 1000/-) will be the 15.12.2017 i.e. the date on which it is received by the supplier and tax liability on this is to be discharged by 20.01.2018. Change in Rate of Tax in respect of supply of goods or

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GST – GST Law and Procedure – 003 – Chapter Three The Meaning and Scope of Supply The Meaning and Scope of Supply The taxable event in GST is supply of goods or services or both. Various taxable events like manufacture, sale, rendering of service, purchase, entry into a territory of State etc. have been done away with in favour of just one event i.e. supply. The constitution defines goods and services tax as any tax on supply of goods, or services or both except taxes on the supply of the alcoholic liquor for human consumption. The Central and State governments will have simultaneous powers to levy the GST on intra-state supply. However, the Parliament alone shall have exclusive power to make laws with respect to levy of goods and services tax on inter-state supply. The term, supply has been inclusively defined in the Act. The meaning and scope of supply under GST can be understood in terms of following six parameters, which can be adopted to characterize a transaction as supply: 1. S

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excluded from the definition of goods as well as services, however, activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged are included in services. Schedule II to the CGST Act, 2017 lists a few activities which are to be treated as supply of goods or supply of services. For instance, any transfer of title in goods would be a supply of goods, whereas any transfer of right in goods without transfer of title would be considered as services. Further Schedule III to the CGST Act, 2017 spells out activities which shall be treated as neither supply of goods nor supply of services – in other words, outside the scope of GST.A few important ones are: – 1. Services by an employee to the employer in the course of or in relation to his employment. 2. Services of funeral, burial, crematorium or mortuary including transportation of the dec

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uts hair in exchange for a painting, hair cut is a supply of services by the barber. It is a consideration for the painting received. However, there are exceptions to the requirement of Consideration as a pre-condition for a supply to be called a supply as per GST. As per schedule to CGST Act, 2017, activities as mentioned below shall be treated as supply even if made without consideration. 1. Permanent transfer or disposal of business assets where input tax credit has been availed on such assets. 2. Supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business: Provided that gifts not exceeding fifty thousand rupees in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both. 3. Supply of goods- (a) by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal; or (b) by an agent to

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charity and sells the paintings even as a one-time occurrence, the sale would constitute Supply. However, there is one exception to this Course or Furtherance of Business rule i.e., import of services for a consideration. Supply by a taxable Person A supply to attract GST should be made by a taxable person. Hence a supply between two non-taxable persons does not constitute supply under GST. A taxable person is a person who is registered or liable to be registered under section 22 or section 24. Hence even an unregistered person who is liable to be registered is a taxable person. Similarly, a person not liable to be registered but has taken voluntary registration and got himself registered is also a taxable person. It should be noted that GST in India is state-centric. Hence a person making supplies from different states need to take separate registration in each state. Further the person may take more than one registration within a state if the person has multiple business verticals.

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ther a supply is treated as an Intra State supply or an Inter State supply. Determination of the nature of supply is essential to ascertain whether integrated tax is to be paid or Central plus State tax are to be paid. Inter – State supply of goods means a supply of goods where the location of the supplier and place of supply are in different States or Union territories. Intra State supply of goods means supply of goods where the location of the supplier and place of supply are in the same State or Union territory. Imports, Supplies from and to SEZs are treated as deemed inter-State supplies. Composite/Mixed supply A composite supply means a supply made by a taxable person to a recipient comprising two or more supplies of goods or services or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply. For instance, a travel ticket from Mumbai to Delhi may include service of food

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GST – GST Law and Procedure – 047 – Chapter Forty Seven TDS Mechanism under GST Under the GST regime, section 51 of the CGST Act, 2017 prescribes the authority and procedure for Tax Deduction at Source . The Government may order the following persons (the deductor) to deduct tax at source: (a) a department or establishment of the Central Government or State Government; or (b) local authority; or (c) Governmental agencies; or (d) such persons or category of persons as may be notified by the Government on the recommendations of the Council. The tax would be deducted @1% of the payment made to the supplier (the deductee) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees (excluding the amount of central tax, State tax, Union territory tax, integrated tax and cess indicated in the invoice). Thus, individual supplies may be less than ₹ 2, 50,000/-, but if contract value is more than ₹ 2, 50,00

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and State tax would be levied. In such case, transfer of TDS (Central tax + State tax State B) to the cash ledger of the supplier (Central tax + State tax of State A) would be difficult. So in such cases, TDS would not be deducted. Thus, when both the supplier as well as place of supply are different from that of recipient, no tax deduction at source would be made. Registration of TDS deductors: A TDS deductor has to compulsorily register without any threshold limit. The deductor has a privilege of obtaining registration under GST without having required to obtain PAN. He can obtain registration using his Tax Deduction and Collection Account Number (TAN) issued under the Income Tax Act, 1961. Deposit of TDS with the government: The amount of tax deducted at source should be deposited to the Government account by the deductor by 10th of the succeeding month. The deductor would be liable to pay interest if the tax deducted is not deposited within the prescribed time limit. TDS Certificat

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unt of government by 10th of the succeeding month. The TDS so deposited in the government account shall be reflected in the electronic cash ledger of the supplier (i.e. deductee) who would be able to use the same for payment of tax or any other amount. The purpose of TDS is just to enable the government to have a trail of transactions and to monitor and verify the compliances. TDS Return: The deductor is also required to file a return in Form GSTR-7 within 10 days from the end of the month. If the supplier is unregistered, name of the supplier rather than GSTIN shall be mentioned in the return. The details of tax deducted at source furnished by the deductor in FORM GSTR-7 shall be made available to each of the suppliers in Part C of FORM GSTR-2A electronically through the Common Portal and the said supplier may include the same in FORM GSTR-2. The amounts deducted by the deductor get reflected in the GSTR-2 of the supplier (deductee). The supplier can take this amount as credit in his

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GST – GST Law and Procedure – 048 – Chapter Forty Eight TCS Mechanism under GST Tax Collection at Source (TCS) has similarities with TDS, as well as has distinctive features also. TDS refers to tax which is deducted when recipient of goods or services makes some payments under a contract etc. while TCS refers to tax which is collected by the electronic commerce operator when a supplier supplies some goods or services through its portal and the payment for that supply is collected by the electronic commerce operator. We will discuss the exact nature of TCS with an example. There are many e-Commerce operators [hereinafter referred to as an Operator], like Amazon, Flipkart, Jabong, etc. operating in India. These operators displays / lists on their portal products as well as services which are actually supplied by some other person to the consumer. The goods or services belonging to other suppliers are displayed on the portals of the operators and consumers buy such goods/services through

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r supplying goods or services through an operator need to compulsorily register under GST. The threshold limit of ₹ 20 lakhs (10 lakhs for special category states) is not applicable to them. Section 24(x) of the CGST Act, 2017 makes it mandatory for every e-Commerce Operator to get registered under GST. Similarly, section 24(ix) of the CGST Act, 2017 makes it mandatory for every person who supplies goods/services through an Operator to get registered under GST. Power to collect tax: Section 52 of the CGST Act, 2017 provides for Tax Collection at source, by e-Commerce operator in respect of the taxable supplies made through it by other suppliers, where the consideration in respect of such supplies is collected by him. TCS Statement: The amount of tax so collected by the operator is required to be deposited by the 10th of the following month, during which such collection is made. The operator is also required to furnish a monthly statement in Form GSTR-8 by the 10th of the followin

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of supplies submitted by all such suppliers in their returns. If there is any discrepancy in the value of supplies, the same would be communicated to both of them. If such discrepancy in value is not rectified within the given time, then such amount would be added to the output tax liability of such suppler. The supplier will have to pay the differential amount of output tax along with interest. Notice to the Operator: An officer not below the rank of Deputy Commissioner can issue notice to an Operator asking him to furnish details relating to volume of goods/ services supplied, stock of goods lying in warehouses/ godowns, etc. The Operator is required to furnish such details within 15 working days. In case an Operator fails to furnish the information, besides being liable for penal action under section 122 shall also be liable for penalty up to ₹ 25,000/- The GST Council in their 22nd meeting held on 6th October, 2017 at New Delhi decided that operationalization of TDS/ TCS pro

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GST – GST Law and Procedure – 013 – Chapter Thirteen Tax Invoice and other such instruments in GST Introduction Generally speaking, an invoice is a commercial instrument issued by a seller to a buyer. It identifies both the trading parties and lists, describes, and quantifies the items sold, shows the date of shipment and mode of transport, prices and discounts, if any, and delivery and payment terms. In certain cases, (especially when it is signed by the seller or seller s agent), an invoice serves as a demand for payment and becomes a document of title when paid in full. Types of invoice include commercial invoice, consular invoice, customs invoice, and proforma invoice. It is also called a bill of sale or contract of sale. Invoice under GST Under the GST regime, an invoice or tax invoice means the tax invoice referred to in section 31 of the CGST Act, 2017. This section mandates issuance of invoice or a bill of supply for every supply of goods or services. It is not necessary that

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ply is less than ₹ 200/- subject to specified conditions. Importance of tax invoice under GST Under GST a tax invoice is an important document. It not only evidences supply of goods or services, but is also an essential document for the recipient to avail Input Tax Credit (ITC). A registered person cannot avail input tax credit unless he is in possession of a tax invoice or a debit note. GST is chargeable at the time of supply. Invoice is an important indicator of the time of supply. Broadly speaking, the time of supply of goods or services is the date of issuance of invoice or receipt of payment whichever is earlier. However, a special procedure for payment of tax has been prescribed for registered persons (other than composition dealers) supplying goods. Such category of persons (suppliers of goods other than composition dealers) need to pay GST only at the time of issue of invoice irrespective of when they receive payment. Thus the importance of invoice under GST cannot be ove

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Invoice rules makes it mandatory for an invoice to have following fields (only applicable field are to be filled): a) name, address and GSTIN of the supplier; b) a consecutive serial number, in one or multiple series, containing alphabets or numerals or special characters hyphen or dash and slash symbolised as – and / respectively, and any combination thereof, unique for a financial year; c) date of its issue; d) name, address and GSTIN or UIN, if registered, of the recipient; e) name and address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is un-registered and where the value of taxable supply is fifty thousand rupees or more; f) HSN code of goods or Accounting Code of services; g) description of goods or services; h) quantity in case of goods and unit or Unique Quantity Code thereof; i) total value of supply of goods or services or both; j) taxable value of supply of goods or services or both taking into account discount o

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dress and GSTIN or UIN, if registered, of the recipient; e) HSN Code of goods or Accounting Code for services; f) description of goods or services or both; g) value of supply of goods or services or both taking into account discount or abatement, if any; and h) signature or digital signature of the supplier or his authorized representative Services A registered person supplying taxable services shall, before or after the provision of service but within a prescribed period, issue a tax invoice, showing the description, value, tax charged thereon and such other particulars as has been prescribed in the Invoice Rules. The Government may, on the recommendations of the Council, by notification and subject to such conditions as may be mentioned therein, specify the categories of services in respect of which- a) any other document issued in relation to the supply shall be deemed to be a tax invoice; or b) tax invoice may not be issued. Thus it can be seen that in case of goods, an invoice has

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ble for registration. Thus there would be a time lag between the date of grant of certificate of registration and the effective date of registration. For supplies made by such person during this intervening period, the law enables issuance of a revised invoice, so that ITC can be availed by the recipient on such supplies. Receipt Voucher/ Refund voucher on receipt of advance payment Whenever a registered person receives an advance payment with respect to any supply of goods or services or both, he has to issue a receipt voucher or any other document, containing such particulars as has been prescribed in the Invoice Rules, evidencing receipt of such payment. Where any such receipt voucher is issued, but subsequently no supply is made and no tax invoice issued, the registered person who has received the advance payment can issue a refund voucher against such payment. A receipt voucher needs to contain the following particulars: a) name, address and GSTIN of the supplier; b) a consecutive

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the nature of supply is not determinable, the same shall be treated as inter-State supply. Invoice and payment voucher by a person liable to pay tax under reverse charge A registered person liable to pay tax under reverse charge (both for supplies on which tax is payable under reverse charge mechanism and supplies received from unregistered persons) has to issue an invoice in respect of goods or service or both received by him. Such a registered person in respect of such supplies also has to issue a payment voucher at the time of making payment to the supplier. Invoice in case of continuous supply of goods In case of continuous supply of goods, where successive statements of accounts or successive payments are involved, the invoice shall be issued before or at the time each such statement is issued or, as the case may be, each such payment is received. Invoice in case of continuous supply of services In case of continuous supply of services, where, a) the due date of payment is ascerta

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er. Amount of tax to be indicated in invoice Where any supply is made for a consideration, every person who is liable to pay tax for such supply has to prominently indicate in all documents relating to assessment, tax invoice and other like documents, the amount of tax which shall form part of the price at which such supply is made. Credit and Debit Notes In cases where tax invoice has been issued for a supply and subsequently it is found that the value or tax charged in that invoice is more than what is actually payable/chargeable or where the recipient has returned the goods, the supplier can issue a credit note to the recipient. A registered person who issues such a credit note has to declare details of such credit note in the return for the month during which such credit note has been issued but not later than September following the end of the financial year in which such supply was made or date of furnishing of the relevant annual return whichever is earlier. The tax liability of

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re of the document; d) a consecutive serial number containing alphabets or numerals or special characters -hyphen or dash and slash symbolised as – and / respectively, and any combination thereof, unique for a financial year; e) date of issue of the document; f) name, address and GSTIN or UIN, if registered, of the recipient; g) name and address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is un-registered; h) serial number and date of the corresponding tax invoice or, as the case may be, bill of supply; i) value of taxable supply of goods or services, rate of tax and the amount of the tax credited or, as the case may be, debited to the recipient; and j) signature or digital signature of the supplier or his authorized representative. Manner of issuing invoice The invoice shall be prepared in triplicate, in case of supply of goods, in the following manner:- a) the original copy being marked as ORIGINAL FOR RECIPIENT; b) the d

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it is distributed; e) amount of the credit distributed; and f) signature or digital signature of the Input Service Distributor or his authorized representative. Tax Invoice in special cases Where the Input Service Distributor is an office of a banking company or a financial institution, including a nonbanking financial company, a tax invoice shall include any document in lieu thereof, by whatever name called, whether or not serially numbered but containing the prescribed information. Where the supplier of taxable service is an insurer or a banking company or a financial institution, including a non-banking financial company, the said supplier shall issue a tax invoice or any other document in lieu thereof, by whatever name called, whether or not serially numbered, and whether or not containing the address of the recipient of taxable service but containing other information as prescribed under rule 1 of Invoice Rules. Where the supplier of taxable service is a goods transport agency sup

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he following cases it is permissible for the consignor to issue a delivery challan in lieu of invoice at the time of removal of goods: a) supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known, b) transportation of goods for job work, c) transportation of goods for reasons other than by way of supply, or d) such other supplies as may be notified by the Board. The delivery challan, serially numbered not exceeding 16 characters, in one or multiple series, shall contain the following details: i. date and number of the delivery challan, ii. name, address and GSTIN of the consigner, if registered, iii. name, address and GSTIN or UIN of the consignee, if registered, iv. HSN code and description of goods, v. quantity (provisional, where the exact quantity being supplied is not known), vi. taxable value, vii. tax rate and tax amount – central tax, State tax, integrated tax, Union territory tax or cess, where the transportation is

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GST – GST Law and Procedure – 032 – Chapter Thirty Two Returns in GST The basic features of the return mechanism in GST includes electronic filing of returns, uploading of invoice level information, auto-population of information relating to input tax credit from returns of supplier to that of recipient, invoice level information matching and auto-reversal of input tax credit in case of mismatch. The returns mechanism is designed to assist the taxpayer to file returns and avail ITC. Under GST, a regular taxpayer needs to furnish monthly returns and one annual return. There are separate returns for a taxpayer registered under the composition scheme, non-resident taxpayer, taxpayer registered as an Input Service Distributor, a person liable to deduct or collect the tax (TDS/TCS), a person granted Unique Identification Number. It is important to note that a taxpayer is NOT required to file all the types of returns. In fact, taxpayers are required to file returns depending on the activiti

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rious types of returns under GST Law. Return Description Who Files? Standard Date for filing GSTR-1* Statement of Outward supplies of Goods or Services Normal Registered Person 10th of the next month GSTR-2* Statement of Inward supplies of Goods or services Normal Registered person 15th of the next month GSTR-3* Return for a normal taxpayer Normal Registered Person 20th of the next month GSTR-3B Simple Monthly Return for the period Jul 2017 to March 2018 Normal Registered Person 20th of the next month GSTR-4 Quarterly Return Taxable Person opting for Composition Levy 18th of the month succeeding the quarter GSTR-5 Monthly return for a non-resident taxpayer Non-resident taxpayer 20th of the month succeeding tax period & within 7 days after expiry of registration GSTR-5A Monthly return for a person supplying OIDAR services from a place outside India to a non-taxable online recipient Supplier of OIDAR Services 20th of the next month GSTR-6 Monthly return for an Input Service Distribut

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re rupees in the preceding financial year or the current financial year shall furnish GSTR-1on a quarterly basis. Other Registered persons having aggregate turnover of more than 1.5 Crore rupees shall furnish these returns on a monthly basis. Filing of GSTR-2 and GSTR-3 has been postponed till a further announcement in this regard is made. Calendar for Return filing The due dates for filing various GST returns may vary from the Standard dates mentioned in the table above. Various notifications are issued from time to time in this regard and as per the notifications issued till 29/12/2017. Return Category of Taxpayer Time Period Due Date GSTR-3B All taxpayers to file along with payment of tax Every month till March 2018 20th of the succeeding month GSTR-1 Taxpayers with annual aggregate turnover up to ₹ 1.5 Crore to file on Quarterly basis July-Sep 2017 10th Jan 2018 Oct-Dec 2017 15th Feb 2018 Jan-Mar 2018 30th April 2018 Taxpayers with annual aggregate turnover of more than &#837

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een done away with. The rectification of errors/omissions is allowed in the return for subsequent month(s). However, no rectification is allowed after furnishing of the return for the month of September following the end of the financial year to which such details pertain, or furnishing of the relevant annual return, whichever is earlier. Interest on Late GST Payment An interest of 18 percent is levied on the late payment of taxes under the GST regime. The interest would be levied for the days for which tax was not paid after the due date. Penalty for non-filing of GST Returns In case a taxpayer does not file his/her return within the due dates, he/she shall have to pay a late fee of ₹ 200/- i.e. ₹ 100/- for CGST and ₹ 100/- for SGST per day (up to a maximum of ₹ 5,000/-) from the due date to the date when the returns are actually filed. Note: In case of GSTR-3B, • For the months July to September, 2017, the late fee payable for failure to furnish the retur

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e details of every inward supply furnished by the taxable person (i.e. the recipient of goods and/or services) in form GSTR-2 shall be matched with the corresponding details of outward supply furnished by the corresponding taxable person (i.e. the supplier of goods and / or services) in his valid return. A return may be considered to be a valid return only when the appropriate GST has been paid in full by the taxable person as shown in such return for a given tax period. 4. In case the details match, then the ITC claimed by the recipient in his valid returns shall be considered as finally accepted and such acceptance shall be communicated to the recipient. Failure to file valid return by the supplier may lead to denial of ITC in the hands of the recipient. 5. In case the ITC claimed by the recipient is in excess of the tax declared by the supplier or where the details of outward supply are not declared by the supplier in his valid returns, the discrepancy shall be communicated to both

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GST – GST Law and Procedure – 001 – Chapter One Registration under GST Law Introduction In any tax system registration is the most fundamental requirement for identification of tax payers ensuring tax compliance in the economy. Registration of any business entity under the GST Law implies obtaining a unique number from the concerned tax authorities for the purpose of collecting tax on behalf of the government and to avail Input tax credit for the taxes on his inward supplies. Without registration, a person can neither collect tax from his customers nor claim any input tax credit of tax paid by him. Need and advantages of registration Registration will confer the following advantages to a taxpayer: He is legally recognized as supplier of goods or services. He is legally authorized to collect tax from his customers and pass on the credit of the taxes paid on the goods or services supplied to the purchasers/ recipients. He can claim input tax credit of taxes paid and can utilize the same

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ster under GST. Also, if all the supplies being made by a supplier are taxable under reverse charge, there is no requirement for such a supplier to register in light of Notification No. 5/2017-Central Tax dated 19.06.2017. Nature of Registration The registration in GST is PAN based and State specific. Supplier has to register in each of such State or Union territory from where he effects supply. In GST registration, the supplier is allotted a 15-digit GST identification number called GSTIN and a certificate of registration incorporating therein this GSTIN is made available to the applicant on the GSTN common portal. The first 2 digits of the GSTIN is the State code, next 10 digits are the PAN of the legal entity, the next two digits are for entity code, and the last digit is check sum number. Registration under GST is not tax specific which means that there is single registration for all the taxes i.e. CGST, SGST/UTGST, IGST and cesses. A given PAN based legal entity would have one GST

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who are required to get compulsory registration irrespective of their turnover that is to say, the threshold exemption of 20 lakh rupees or 10 lakh rupees as the case may be is not available to them. Some of such suppliers who need to register compulsorily irrespective of the size of their turnover are those who are, – Inter-state suppliers; However, persons making inter-state supplies of taxable services and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of twenty lakh rupees (ten lakh rupees for special category States except J & K) are exempted from obtaining registration vide Notification No. 10/2017-Integrated Tax dated 13.10.2017. A person receiving supplies on which tax is payable by recipient on reverse charge basis Casual taxable person who is not having fixed place of business in the State or Union Territory from where he wants to make supply. However casual taxable persons making supplies of specified handicraft goods need not t

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ing online information and data base access or retrieval services from outside India to a non-registered person in India. A casual taxable person is one who has a registered business in some State in India, but wants to effect supplies from some other State in which he is not having any fixed place of business. Such person needs to register in the State from where he seeks to supply as a casual taxable person. A non-resident taxable person is one who is a foreigner and occasionally wants to effect taxable supplies from any State in India, and for that he needs GST registration. GST law prescribes special procedure for registration, as also for extension of the operation period of such casual or nonresident taxable persons. They have to apply for registration at least five days in advance before making any supply. Also, registration is granted to them or period of operation is extended only after they make advance deposit of the estimated tax liability. In respect of supplies to some no

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business. For transferee of a business as going concern, the liability to register arises on the date of transfer. The Proper Officer has to either raise a query or approve the grant of registration within three working days failing which registration would be considered as deemed to have been approved. The applicant would have to respond within seven working days starting from the fourth day of filing the original application. The proper officer would have to grant or reject the application for registration within seven working days thereafter. Amendment of Registration Except for the changes in some core information in the registration application, a taxable person shall be able to make amendments without requiring any specific approval from the tax authority. In case the change is for legal name of the business, or the State of place of business or additional place of business, the taxable person will apply for amendment within 15 days of the event necessitating the change. The pro

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s of cancellation of Registration will apply on the common portal within 30 days of event warranting cancellation. He will also declare in the application the stock held on the date with effect from which he seeks cancellation. He will also work out and declare the quantum of dues of payments and credit reversal, and the particulars of payments made towards discharge of such liabilities. In case of voluntary registration (taken despite not being liable for obtaining registration), no cancellation is allowed until expiry of one year from the effective date of registration. If satisfied, the proper officer has to cancel the registration within 30 days from the date of application or the date of reply to notice (if issued, when rejection is concluded by the officer). Revocation of Cancellation In case where registration is cancelled suo-motu by the proper officer, the taxable person can apply within 30 days of service of cancellation order, requesting the officer for revoking the cancella

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GST – GST Law and Procedure – 034 – Chapter Thirty Four Refunds under GST INTRODUCTION Timely refund mechanism is essential in tax administration, as it facilitates trade through release of blocked funds for working capital, expansion and modernization of existing business. The provisions pertaining to refund contained in the GST law aim to streamline and standardise the refund procedures under GST regime. Thus, under the GST regime there will be a standardised form for making any claim for refunds. The claim and sanctioning procedure will be completely online and time bound which is a marked departure from the existing time consuming and cumbersome procedure. It has been decided, however, that since the online refund module is not available immediately, the refund process would be handled manually and Circular No. 17/17/2017GST dated 15.11.2017 and Circular no. 24/24/2017-GST dated 21.12.2017 prescribing the detailed procedure have been issued. SITUATIONS LEADING TO REFUND CLAIMS The

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r taxes paid on advances against which goods or services have not been supplied 12. Refund of CGST & SGST paid by treating the supply as intra-State supply which is subsequently held as inter-State supply and vice versa. Thus practically every situation is covered. The GST law requires that every claim for refund is to be filed within 2 years from the relevant date. CREDIT NOTES Further, Section 34 of the CGST Act, 2017 provides for issuance of credit notes for post supply discounts or if goods are returned back within a stipulated time. When such credit notes are issued, obviously it would call for reduction in output liability of the supplier. Hence, the taxes paid initially on the supply would be higher than what is actually payable. In such a scenario the excess tax paid by the supplier needs to be refunded. However, instead of refunding it outright, it is sought to be adjusted after verifying the corresponding reduction in the input tax credit availed by the recipient. Section

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r both used for such supplies even though they might be non-taxable or even exempt supplies. Every person making claim of refund on account of zero rated supplies has two options. Either he can export under Bond/ LUT and claim refund of accumulated Input Tax Credit or he may export on payment of integrated tax and claim refund thereof as per the provisions of Section 54 of CGST Act, 2017. Thus, the GST law allows the flexibility to the exporter (which will include the supplier making supplies to SEZ) to claim refund upfront as integrated tax (by making supplies on payment of tax using ITC) or export without payment of tax by executing a Bond/LUT and claim refund of related ITC of taxes paid on inputs and input services used in making zero rated supplies. GRANT OF PROVISIONAL REFUND IN CASE OF ZERO RATED SUPPLIES GST law also provides for grant of provisional refund of 90% of the total refund claim, in case the claim relates for refund arising on account of zero rated supplies. The prov

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he incidence of tax to file refund claim in accordance with the provisions of Section 54 of the CGST Act, 2017. REFUNDS TO CASUAL/NON-RESIDENT TAXABLE PERSONS A casual/Non-resident taxable person has to pay tax in advance at the time of registration. Refund may become due to such persons at the end of the registration period because the tax paid in advance may be more than the actual tax liability on the supplies made by them during the period of validity of registration period. The law envisages refund to such categories of taxable persons also. But the amount of excess advance tax shall not be refunded unless such person has filed all the returns due during the time their registration was effective. It is only after such compliance that refund will be granted. REFUND TO UN BODIES AND OTHER NOTIFIED AGENCIES Supplies made to UN bodies and embassies may be exempted from payment of GST as per international obligations. However, this exemption is being operationalized by way of a refund

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Talking about unjust enrichment, a presumption is always drawn that the businessman will shift the incidence of tax to the final consumer. This is because GST is an indirect tax whose incidence is to be borne by the consumer. It is for this reason that every claim of refund (barring specified exceptions) need to pass the test of unjust enrichment. And every such claim if sanctioned is first transferred to the Consumer Welfare Fund. The GST law makes this test inapplicable in case of refund of accumulated ITC, refund on account of exports, refund of payment of wrong tax (integrated tax instead of central tax plus state tax and vice versa), refund of tax paid on a supply which is not provided or which refund voucher is issued or if the applicant shows that he has not passed on the incidence of tax to any other person. In all other cases the test of unjust enrichment needs to be satisfied for the claim to be paid to the applicant. For crossing the bar of unjust enrichment, if the refund c

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ount lying in the credit balance of the cash ledger can be made in the monthly returns also. The proper officer has to convey deficiencies if any in the refund claimed in such cases the claim will be sent back to the applicant along with the notified deficiencies and the applicant can file the refund claim again after making goods the deficiencies. The claim, if in order, has to be sanctioned within a period of 60 days from the date of receipt of the application of claim complete in all respect. If this mandatory period is exceeded, interest at the rate of 6% (9% in case of refund made on order passed by an adjudicating authority or Appellate Tribunal or court which has attained finality) will become payable along with refund from the expiry of 60 days till the date of payment of refund. However, if the refund claim is on account of pre-deposit made before any appellate authority, the interest becomes payable from the date of making such payment. DOCUMENTATION The applicant need not fi

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d on account of any order or judgment of appellate authority or court, the reference number of the order giving rise to refund should also be given. For crossing the bar of unjust enrichment, if the refund claim is less than ₹ 2 Lakhs, then a self-declaration by the applicant to the effect that the incidence of tax has not been passed to any other person will suffice to process the refund claim. For refund claims exceeding ₹ 2 Lakhs, a certificate from a Chartered Accountant/Cost Accountant will have to be given. COMPLIANCE WITH NATURAL JUSTICE In case the claim is sought to be rejected by the proper officer, a notice has to be given online to the applicant stating the ground on which the refund is sought to be rejected. The applicant needs to respond online within 15 days from the receipt of such notice. Thus no claim can be rejected without putting the applicant to notice. PAYMENT TO BE CREDITED ONLINE The refund claim, wherever due, will be directly credited to the bank

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hereof) shall be transmitted electronically by the common portal to the system designated by the Customs and the said system shall electronically transmit to the common portal, a confirmation that the goods covered by the said invoices have been exported out of India. Upon receipt of the information regarding the furnishing of a valid return in FORM GSTR-3 or FORM GSTR-3B, as the case may be and FORM GSTR-1 from the common portal, the system designated by the Customs shall process the claim for refund and an amount equal to the integrated tax paid in respect of each shipping bill or bill of export shall be electronically credited to the bank account of the applicant mentioned in his registration particulars and as intimated to the Customs authorities. As per Rule 96, the refund of IGST paid on export of goods is processed and disbursed by Customs. For processing such refund, GST system transmits invoice level data of Table 6A in GSTR 1 subject to the following validations 1. GSTR-3B is

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d in the CGST Rules, 2017 vide Notification no. 55/2017-Central Tax dated 15.11.2017 to enable manual processing of refund claims. The said rule provides that any reference to electronic filing of an application, intimation, reply, declaration, statement or electronic issuance of a notice, order or certificate on the common portal shall, in respect of that process or procedure, include manual filing of the said application, intimation, reply, declaration, statement or issuance of the said notice, order or certificate in such Forms as appended to CGST Rules, 2017. Circular no. 17/17/2017-GST dated 15.11.2017 and Circular no. 24/24/2017-GST dated 21.12.2017 has been issued clarifying the procedure for filing of manual refund claims. The circular mandates that due to the non-availability of the refund module on the common portal, it has been decided that the applications/documents/forms pertaining to refund claims on account of zero-rated supplies shall be filed and processed manually til

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t on inputs or input services used in making such zero-rated supplies shall be filed in FORM GST RFD-01A on the common portal and the amount claimed as refund shall get debited in accordance with sub-rule (3) of rule 86 of the CGST Rules, 2017 from the amount in the electronic credit ledger to the extent of the claim. The common portal shall generate a proof of debit (ARN- Acknowledgement Receipt Number) which would be mentioned in the FORM GST RFD-01A submitted manually, along with the print out of FORM GST RFD-01A to the jurisdictional proper officer, and with all necessary documentary evidences as applicable (as per details in statement 3 or 5 of Annexure to FORM GST RFD-01), within the time stipulated for filing of such refund under the CGST Act, 2017. Where to file the refund claims The registered person needs to file the refund claim with the jurisdictional tax authority to which the taxpayer has been assigned as per the administrative order issued in this regard by the Chief Com

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sly. The time limits laid down in the Act need to be followed and the prescribed forms need to be generated manually for processing of such refund claims Manual filing and processing of refund claims on account of inverted duty structure, deemed exports and excess balance in electronic cash ledger Due to the non-availability of the refund module on the common portal, it has been decided by the competent authority that the applications/documents/forms pertaining to refund claims on account of inverted duty structure (including supplies in terms of notification Nos. 40/2017-Central Tax (Rate) and 41/2017-Integrated Tax (Rate) both dated 23.10.2017), deemed exports and excess balance in electronic cash ledger shall be filed and processed manually till further orders. The procedure to be followed for manual filing of following type of refund claims and processing thereof shall be in accordance with Circular no. 24/24/2017-GST dated 21.12.2017 read with Circular no. 17/17/2017-GST dated 15.

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sis. Further, it is stated that the refund claim for a tax period may be filed only after filing the details in FORM GSTR-1 for the said tax period. It is also to be ensured that a valid return in FORM GSTR3B has been filed for the last tax period before the one in which the refund application is being filed. Since the date of furnishing of FORM GSTR 1 from July, 2017 onwards has been extended while the dates of furnishing of FORM GSTR 2 and FORM GSTR 3 for such period are yet to be notified, it has been decided by the competent authority to sanction refund of provisionally accepted input tax credit at this juncture. However, the registered persons applying for refund is required to give an undertaking to the effect that the amount of refund sanctioned would be paid back to the Government with interest in case it is found subsequently that the requirements of clause (c) of sub-section (2) of section 16 read with sub-section (2) of sections 42 of the CGST Act, 2017 have not been complie

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tified as deemed export. Further, the third proviso to rule 89(1) of the CGST Rules, 2017 allows the recipient or the supplier to apply for refund of tax paid on such deemed export supplies. In case such refund is sought by the supplier of deemed export supplies, the documentary evidences as specified in notification No. 49/2017-Central Tax dated 18.10.2017 are also required to be furnished which includes an undertaking by the recipient of deemed export supplies that he shall not claim the refund in respect of such supplies and that no input tax credit on such supplies has been availed of by him. The undertaking from the recipient should be submitted manually by the supplier along with his application for refund claim. Similarly, in case the refund is filed by the recipient of deemed export supplies, an undertaking by the supplier of deemed export supplies that he shall not claim the refund in respect of such supplies is also required to be furnished manually. The procedure regarding p

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by respective authorities Para 2.5 of Circular No. 17/17/2017-GST dated 15.11.2017 may be referred to in order to ascertain the jurisdictional proper officer to whom the manual application for refund is to be submitted. Where any amount claimed as refund is rejected under rule 92 of the CGST Rules, 2017, either fully or partly, the amount debited, to the extent of rejection, shall be re-credited to the electronic credit ledger by an order made in FORM GST RFD-1B until the FORM GST PMT-03 is available on the common portal. Further, the payment of the sanctioned refund amount shall be made only by the respective tax authority of the Central or State Government. Thus, the refund order issued either by the Central tax authority or the State tax/UT tax authority shall be communicated to the concerned counter-part tax authority within seven working days for the purpose of payment of the relevant sanctioned refund amount of tax or cess, as the case may be. This time limit of seven working day

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anctioned refund amount in relation to State tax and vice versa. The aforesaid communication shall primarily be made through e-mail attaching the scanned copies of the sanction order [FORM GST RFD-04 and FORM GST RFD-06], the application for refund in FORM GST RFD-01A and the Acknowledgement Receipt Number (ARN). Accordingly, the jurisdictional proper officer of Central or State Tax, as the case may be, shall issue FORM GST RFD-05 and send it to the DDO for onward transmission for release of payment. After release of payment by the respective PAO to the applicant s bank account, the nodal officer of Central tax and State tax authority shall inform each other. The manner of communication as referred earlier shall be followed at the time of final sanctioning of the refund also. In case of refund claim for the balance amount in the electronic cash ledger, upon filing of FORM GST RFD-01A, the amount of refund claimed shall get debited in the electronic cash ledger. Drawback of all taxes un

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GST – GST Law and Procedure – 051 – Chapter Fifty One Recovery of Tax 1. All tax administration occasionally comes across a situation where the tax dues are not paid correctly by the tax payers, most of the times inadvertently and sometimes deliberately. To minimise the inadvertent short payment of taxes the concept of Matching of details of Outward supplies of supplier with the details of Inward supplies of recipient has been introduced in the GST Act. Moreover, the self-assessed tax has to be paid by due date prescribed under the GST Act and in case of any failure to pay the same by due date the Input Tax Credit will not be available to his customers and also the tax payer will not be able to file any return for further period. Effectually these provisions works as a Self-Policing system and takes care of any mis-match in the payment of taxes. However, despite these provisions there may arise some instances where the tax was not paid correctly. To deal with all such situations the p

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limit/incidence. The Table below gives a comprehensive chart of provisions for voluntary compliance:- Sr.No. Action by Tax Payer Amount of Penalty payable-Normal Cases Amount of Penalty payable-Fraud Cases Remarks 1. Tax amount, along with interest, aid before issuance of Notice. No Penalty and no Notice shall be issued. 15% of the Tax amount and no Notice shall be issued. The penalty shall also be not chargeable in cases Where the self-assessed tax or any amount collected as tax is paid (with interest) within 30 days from the due date of payment. 2. Tax amount, along with interest, paid within 30 days of issuance of Notice. No Penalty. All proceedings deemed to be concluded. 25% of the Tax amount. All proceedings deemed to be concluded. 3. Tax amount, along with interest, paid within 30 days of communication of Order. 10% of the Tax amount or ₹ 10,000/-, whichever is higher 50% of the Tax amount. All proceedings deemed to be concluded. 4. Tax amount, along with interest, paid af

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becomes inevitable to issue a show cause notice and thereafter pass an Order, the GST Act ensures a timely completion of all these procedures by providing a fixed timeline for issuance of notice and order-as follows:- Sr. No. Nature of Case Time for issuance of Notice Time for issuance of Order 1. Normal Cases Within 2 years and 9 months from the due date of filing of Annual Return for the Financial Year to which the demand pertains or from date of erroneous refund. Within 3 years from the due date of filing of Annual Return for the Financial Year to which the demand pertains or from date of erroneous refund. 2. Fraud Cases Within 4 years and 6 months from the due date of filing of Annual Return for the Financial Year to which the demand pertains or from date of erroneous refund. Within 5 years from the due date of filing of Annual Return for the Financial Year to which the demand pertains or from date of erroneous refund. 3. Any amount collected as tax but not paid No time limit. With

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re are sufficient opportunities to make amend and discharge the tax liability with nil or nominal penalties. However, there are disincentives also for the person who fails to utilise these beneficial provisions. Besides that, the law also provides that the Board may fix certain monetary limits for not filing an Appeal against any order. It means if any order is passed in favour of the assessee the department will not pursue the case further by filing Appeals if the amount involved is less than the specified limit. At present, under the existing laws, the monetary limits for not filing an appeal to various judicial forums are follows: – i. Tribunal- ₹ 10 Lakhs ii. High Courts- ₹ 20 Lakhs and iii. Supreme Court- ₹ 25 Lakhs 5. The recovery proceedings are final step towards realization of any tax or amount, which has been confirmed as payable after following the due process of adjudication by the proper officer. Therefore, if the tax dues and other amounts remain unpaid,

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GST – GST Law and Procedure – 026 – Chapter Twenty Six Pure Agent Concept in GST Introduction The GST Act defines an Agent as a person including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another. So, who is a pure agent and why is a pure agent relevant under GST? Broadly, speaking a pure agent is one who while making a supply to the recipient, also receives and incurs expenditure on some other supply on behalf of the recipient and claims reimbursement (as actual, without adding it to the value of his own supply) for such supplies from the recipient of the main supply . While the relationship between them (provider of service and recipient of service) in respect of the main service is on a principal to principal basis, the relationship between them in respect of other ancillary services is that of a pure a

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, 2006 and carried forward under GST. Under the GST Valuation Rules 2017 pure agent is given the following meaning. pure agent means a person who – a) enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both; b) neither intends to hold nor holds any title to the goods or services or both, so procured or provided as pure agent of the recipient of supply; c) does not use for his own interest such goods or services so procured; and d) receives only the actual amount incurred to procure such goods or services in addition to the amount received for supply he provides on his own account. The important thing to note is that a pure agent does not use the goods or services so procured for his own interest and this fact has to be determined from the terms of the contract. In the illustration of importer and Customs Broker given above, assuming that the contract was for clearance of

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elevant, when it comes to determining the value of a supply for levy of GST. The preceding para explains who will be considered as a pure agent. The valuation rules provide that expenditure incurred as pure agent, will be excluded from the value of supply, and thus also from aggregate turnover. However, such exclusion of expenditure incurred as pure agent is possible only and only if all the conditions required to be considered as a pure agent and further conditions stipulated in the rules are satisfied by the supplier in each case. The supplier would have to satisfy the following conditions (in addition to the condition required to be satisfied to be considered as a pure agent) for exclusion from value as under:- i. the supplier acts as a pure agent of the recipient of the supply, when he makes payment to the third party on authorization by such recipient; ii. the payment made by the pure agent on behalf of the recipient of supply has been separately indicated in the invoice issued by

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s, Port charges, Custom duty, dock dues, transport charges etc. paid by Customs Broker on behalf of owner of goods. 2. Expenses incurred by C& F agent and reimbursed by principal such as freight, godown charges. Illustration: Suppose a Customs Broker issues an invoice for reimbursement of a few expenses and for consideration towards agency service rendered to an importer. The amounts charged by the Customs Broker are as below: S/No. Component charged in invoice Amount 1 Agency Income ₹ 10, 000/- 2 Traveling expenses ; Hotel expenses ₹ 15,000/- 3 Customs Duty ₹ 55,000/- 4 Docks Dues ₹ 5000/- In the above situation, agency income and travelling/hotel expenses shall be added for determining the value of supply by the Customs Broker whereas Docks dues and the Customs Duty shall not be added to the value provided the conditions of pure agent are satisfied. CONCLUSION A pure agent concept is an important one for businesses as it has direct implications on the valu

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GST – GST Law and Procedure – 042 – Chapter Forty Two Online Information Data Base Access and Retrieval (OIDAR) Services in GST WHAT IS OIDAR? Online Information Database Access and Retrieval services (hereinafter referred to as OIDAR) is a category of services provided through the medium of internet and received by the recipient online without having any physical interface with the supplier of such services. E.g. downloading of an e-book online for a payment would amount to receipt of OIDAR services by the consumer downloading the e-book and making payment. The IGST Act defines OIDAR to mean services whose delivery is mediated by information technology over the internet or an electronic network and the nature of which renders their supply essentially automated and involving minimal human intervention and impossible to ensure in the absence of information technology and includes electronic services such as, – (i) advertising on the internet; (ii) providing cloud services; (iii) provis

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seas and may not be having a presence in India, the compliance Online Information Data Base Access and Retrieval Services in GST verification mechanism become difficult. It is in such circumstances, that the government has plans to come out with a simplified scheme of registration for such service providers located outside. HOW WOULD OIDARSERVICES BE TAXABLE UNDER GST? For any supply to be taxable under GST, the place of supply in respect of the subject supply should be in India. In case, both the supplier of OIDAR Service and the recipient of such service is in India, the place of supply would be the location of the recipient of service i.e. it would be governed by the default place of supply rules. What happens in cases where the supplier of service is located outside India and the recipient is located in India. In such cases also the place of supply would be India and the transaction would be amenable to tax. WHO WILL BE RESPONSIBLE FOR PAYING THE TAX? In cases where the supplier of

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ated in a non-taxable territory shall be the person liable for paying integrated tax on such supply of services. Now if an intermediary located outside India arranges or facilitates supply of such service to a non-taxable online recipient in India, the intermediary would be treated as the supplier of the said service, except when the intermediary satisfies the following conditions. (a) the invoice or customer s bill or receipt issued or made available by such intermediary taking part in the supply clearly identifies the service in question and its supplier in non-taxable territory; (b) the intermediary involved in the supply does not authorise the charge to the customer or take part in its charge which is that the intermediary neither collects or processes payment in any manner nor is responsible for the payment between the nontaxable online recipient and the supplier of such services; (c) the intermediary involved in the supply does not authorise delivery; and (d) the general terms an

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on in the taxable territory for the purpose of paying integrated tax and such person shall be liable for payment of such tax. Who is a Non-Taxable Online Recipient? non-taxable online recipient means any Government, local authority, governmental authority, an individual or any other person not registered and receiving online information and database access or retrieval services in relation to any purpose other than commerce, industry or any other business or profession, located in taxable territory. The expression governmental authority means an authority or a board or any other body, – i) set up by an Act of Parliament or a State Legislature; or ii) established by any Government, with ninety per cent or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution. Examples of what could be or could not be OIDAR services The inclusive part of the definition of OIDAR services are only indicative and not exha

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and webpage hosting; (b) automated, online and distance maintenance of programmes; (c) remote systems administration; (d) online data warehousing where specific data is stored and retrieved electronically; (e) online supply of on-demand disc space. 2. Supply of software and updating thereof; (a) Accessing or downloading software (including procurement/accountancy programmes and antivirus software) plus updates; (b) software to block banner adverts showing, otherwise known as Banner blockers; (c) download drivers, such as software that interfaces computers with peripheral equipment (such as printers); (d) online automated installation of filters on websites; (e) online automated installation of firewalls. 3. Supply of images, text and information and making available of databases; (a) Accessing or downloading desktop themes; (b) accessing or downloading photographic or pictorial images or screensavers; (c) the digitised content of books and other electronic publications; (d) subscripti

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similar electronic networks, where players are geographically remote from one another. (5) Supply of distance teaching. (a) Automated distance teaching dependent on the Internet or similar electronic network to function and the supply of which requires limited or no human intervention, including virtual classrooms, except where the Internet or similar electronic network is used as a tool simply for communication between the teacher and student; (b) workbooks completed by pupils online and marked automatically, without human intervention, The place of supply of online information and database access or retrieval services shall be the location of the recipient of services. Filing of Returns by a person providing OIDAR service to a non-taxable online recipient in India. In terms of Rule 64 of CGST Rules, 2017, every registered person providing online information and data base access or retrieval services from a place outside India to a person in India other than a registered person shall

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GST – GST Law and Procedure – 030 – Chapter Thirty Margin Scheme in GST Normally GST is charged on the transaction value of the goods. However, in respect of second hand goods, a person dealing is such goods may be allowed to pay tax on the margin i.e. the difference between the value at which the goods are supplied and the price at which the goods are purchased. If there is no margin, no GST is charged for such supply. The purpose of the scheme is to avoid double taxation as the goods, having once borne the incidence of tax, re-enter the supply and the economic supply chain. Valuation of Second Hand Goods: As per Rule 32(5) of the CGST Rules, 2017, where a taxable supply is provided by a person dealing in buying and selling of second hand

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e person making such repossession. In this regard, Notification No.10/2017-Central Tax (Rate) New Delhi, dated 28th June, 2017 exempts intra-State supplies of second hand goods received by a registered person, dealing in buying and selling of second hand goods and who pays the central tax on the value of outward supply of such second hand goods as determined under sub-rule (5) of rule 32 of the CGST Rules, 2017, from any unregistered supplier, from the whole of the central tax levied under the CGST Act, 2017. Similar exemptions are also there in respective SGST Acts. Illustration: For instance, a company say M/s First Source Ltd, which deals in buying and selling of second hand cars, purchases a second hand Maruti Celerio Car of March, 2014

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