Goods and Services Tax

GST – GST Law and Procedure – 027 – Chapter Twenty Seven Job Work under GST Introduction Job-work sector constitutes a significant industry in Indian economy. It includes outsourced activities that may or may not culminate into manufacture. The term Job-work itself explains the meaning. It is processing of goods supplied by the principal. The concept of job work already exists in Central Excise, wherein a principal manufacturer can send inputs or semi-finished goods to a job worker for further processing. Many facilities, procedural concessions have been given to the job workers as well as the principal supplier who sends goods for job work.The whole idea is to make principal responsible for meeting compliances on behalf of the job-worker on the goods processed by him (job-worker), considering the fact that typically the job-workers are small persons who are unable to comply with the discrete provisions of the law. The GST Act makes special provisions with regard to removal of goods f

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s without payment of tax. The principal is not required to reverse the ITC availed on inputs or capital goods dispatched to job-worker. b) Principal can send inputs or capital goods directly to the job worker without bringing them to his premises, still the principal can avail the credit of tax paid on such inputs or capital goods. c) However, inputs and/or capital goods sent to a job worker are required to be returned to the principal within 1 year and 3 years, respectively, from the date of sending such goods to the job worker. d) After processing of goods, the job-worker may clear the goods to- (i) Another job-worker for further processing; (ii) Dispatch the goods to any of the place of business of the principal without payment of tax; (iii) Remove the goods on payment of tax within India or without payment of tax for export outside India on fulfilment of conditions. The facility of supply of goods by principal to the third party directly from the premises of the job-worker on payme

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keeping proper accounts for the inputs or capital goods shall lie with the principal. Input Tax credit on goods supplied to job-worker Section 19 of the CGST Act, 2017 provides that the principal (a person supplying taxable goods to the job-worker) shall be entitled to take the credit of input tax paid on inputs sent to the job- worker for the job work. Further, the proviso also provides that the principal can take the credit even when the goods have been directly supplied to the job-worker without bringing into the premise of the principal. The principal need not wait till the inputs are first brought to his place of business. Time Limits for return of processed goods As per section 19 of the CGST Act, 2017, inputs and capital goods after processing shall be returned back to principal within one year or three years respectively of their being sent out. Further, the provision of return of goods is not applicable in case of moulds and dies, jigs and fixtures or tools supplied by the pri

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Goods and Services Tax – Started By: – saket s – Dated:- 9-8-2017 Last Replied Date:- 10-8-2017 – Hi,Subsequent to decisions of 20th meeting of GST Council how much GST freight forwarder will charge and whether, as a service recipient, can we take credit of GST.ThanksSaket – Reply By KIRTIKUMAR PUROHIT – The Reply = 12% with Input Tax Credit & 5% without ITC – Reply By HimansuSekhar Sha – The Reply = Let the notif. Is notified. – Reply By RameshBabu Kari – The Reply = Dear Experts,In case o

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GST – GST Law and Procedure – 021 – Chapter Twenty One Integrated Goods and Services Tax Act The introduction of Goods and Services Tax (GST) is a significant reform in the field of indirect taxes in our country. Multiple taxes levied and collected by the Centre and states would be 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. 2. A dual GST model has been adopted in view of the federal structure of our country. Centre and States will simultaneously levy GST on every supply of goods or services or both which takes place within a State or Union territory. Thus, there shall be two components of GST as under: – i. Central tax (CGST): (levied & collected under the authority of CGST Act, 2017 passed by the Parliament) ii. State tax (SGST) (levied & collected under the authority of SGST Act, 2017 passed by respective State) Why the third tax in the name of IGST? 3. Before discussing the IGST

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om following shortcomings: i. CST is collected and retained by the origin state, which is an aberration. Any indirect tax, by definition is a consumption tax, the incidence of which is borne by the consumer. Logically, the tax should accrue to the destination state having jurisdiction over such consumer. ii. Input Tax Credit (ITC) of CST is not allowed to the buyer which results in cascading of tax (tax on tax) in the supply chain. iii. Various accountal forms are required to be filed in CST viz., C Form, E1, E2, F, I, J Forms etc. which adds to the compliance cost of the business and impedes the free flow of trade. iv. Another negative feature of CST is the opportunity it provides for arbitrage because of the huge difference between tax rates under VAT and CST being levied on intra-State sales and inter-State sales respectively 5. The IGST model would remove all these deficiencies. IGST is a mechanism to monitor the inter-state trade of Goods and services and further to ensure that th

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lizing ITC. The amount of ITC on account of IGST is allowed to be utilized towards payment of IGST, CGST and SGST in that order. 8. Nature of Supply It is very important to determine the nature of supply – whether it is inter-state or intra state, as the kind of tax to be paid (IGST or CGST+SGST) depends on that. i. Inter- state Supply: Subject to place of supply provisions, where the location of the supplier and the place of supply are in- a) two different States; a) two different Union territories; or a) a State and a Union territory, Such supplies shall be treated as a supply of goods or services in the course of inter-State trade or commerce. Any supply of goods or services in the taxable territory, not being an intra-State supply shall be deemed to be a supply of goods or services in the course of inter-State trade or commerce. Supplies to or by SEZ are defined as inter-State supply. Further supply of goods imported into territory of India till they cross the customs frontiers of

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the supplier and the place of supply. Both these terms have been defined in the IGST Act. 9. Location of Supplier broadly is the registered place of business or the fixed establishment of the supplier from where the supply is made. Sometime, a service provider has to go to client location for providing service. However, such place would not be considered as the location of supplier. It has to be either regular place of business or fixed establishment which is having sufficient degree of permanence and suitable structure in terms of human and technical resources. 10. Place of supply 10.1 Place of supply provisions have been framed for goods & services keeping in mind the destination/consumption principle. In other words, place of supply is based on the place of consumption of goods or services. As goods are tangible, the determination of their place of supply based on the consumption principle is not difficult. Generally the place of delivery of goods becomes the place of supply. H

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the time at which the movement of goods terminates for delivery to the recipient. 2 where the goods are delivered to recipient or any person on the direction of third person by way of transfer of title or otherwise, it shall be deemed that third person has received the goods The principal place of business of such person 3 where there is no movement of goods either by supplier or recipient Location of such goods at the time of delivery to recipient 4 where goods are assembled or installed at site The place where the goods are assembled or installed 5 where the goods are supplied on board a conveyance, like vessel, aircraft, train or motor vehicle The place where such goods are taken on board the conveyance 6 Where the place of supply of goods cannot be determined in terms of sub-section (2), (3), (4) and (5) It shall be determined in such manner as may be prescribed B. Place of supply of goods in case of import &Export [Section -11] S.No. Nature of supply of goods Place of Supply 1

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ere the event is actually held or where the park or such other place is located. 5 Organization of an event. B2B : Location of such registered person; B2C: Location where the event is actually held. If event is held outside India :Location of the recipient 6 Transportation of goods including mails B2B : Location of such registered person; B2C : Location at which such goods are handed over for their transportation 7 Passenger transportation. B2B : Location of such registered person; B2C : Place where the passenger embarks on the conveyance for a continuous journey 8 Services on board a conveyance Location of the first scheduled point of departure of that conveyance for the journey. 9 Telecommunication services. Services involving fixed line, circuits, dish etc., place of supply is location of such fixed equipment. In case of mobile/ internet post-paid services, it is location of billing address of the recipient. In case of sale of pre-paid voucher, place of supply is place of sale of su

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pply of services in case of cross-border supplies 🙁 Section 13) (Where the location of the supplier of services or the location of the recipient of services is outside India) i. In respect of following category of services, the place of supply is determined with reference to a proxy. Rest of the services are governed by a default provision. S.No Nature of service Place of supply 1. Services supplied in respect of goods that are required to be made physically available from a remote location by way of electronic means, (Not Applicable in case of goods that are temporarily imported into India for repairs and exported.) the location where the services are actually performed, the location where goods are situated 2. services supplied to an individual which require the physical presence of the receiver the location where the services are actually performed. 3. Immovable property related services including hotel accommodation Location at which the immovable property is located. 4. Admission

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and database access or retrieval services The location of recipient of service. ii. For the rest of the services other than those specified above, a default provision has been prescribed as under. Default Rule for the cross border supply of Services other than nine Specified Services S.No. Description of supply Place of supply 1 Any Location of the Recipient of Service If not available in the ordinary course of business: The location of the supplier of service. 11. Supplies in territorial waters: Where the location of the supplier is in the territorial waters, the location of such supplier; or where the place of supply is in the territorial waters, the place of supply is be deemed to be in the coastal State or Union territory where the nearest point of the appropriate baseline is located. 12. Export /Import of services: a supply would be treated as Import or export if certain conditions are satisfied. These conditions are as under: – Export of Services Import of Services means the sup

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Goods and Services Tax – GST – Dated:- 9-8-2017 – PRESS RELEASE 25th July, 2017 On National Anti-profiteering Authority under GST The GST Council has formed a Selection Committee under the Chairmanship of Cabinet Secretary to identify and recommend eligible persons for appointment as Chairman and Members of the National Anti-profiteering Authority under GST. The National Anti-profiteering Authority is tasked with ensuring the full benefits of a reduction in tax on supply of goods or services flow to the consumers. 2. When constituted by the GST Council, the National Anti-profiteering Authority shall be responsible for applying anti-profiteering measures in the event of a reduction in rate of GST on supply of goods or services or, if the be

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of Safeguards, CBEC who shall give his recommendation for consideration of the National Anti-profiteering Authority. 4. In the event the National Anti-profiteering Authority confirms the necessity of applying anti-profiteering measures, it has the power to order the business concerned to reduce its prices or return the undue benefit availed along with interest to the recipient of the goods or services. If the undue benefit cannot be passed on to the recipient, it can be ordered to be deposited in the Consumer Welfare Fund. In extreme cases the National Anti-profiteering Authority can impose a penalty on the defaulting business entity and even order the cancellation of its registration under GST. 5. The constitution of the National Anti-prof

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GST – GST Law and Procedure – 049 – Chapter Forty Nine Inspection, Search, Seizure and Arrest In any tax administration the provisions for Inspection, Search, Seizure and Arrest are provided to protect the interest of genuine tax payers (as the Tax evaders, by evading the tax, get an unfair advantage over the genuine tax payers) and as a deterrent for tax evasion. These provisions are also required to safeguard Government s legitimate dues. Thus, these provisions acts as a deterrent and by checking evasion provide a level playing field to genuine tax payers. 2. It may be mentioned that the options of Inspection, Search, Seizure and Arrest are exercised, only in exceptional circumstances and as a last resort, to protect the Government Revenue. Therefore, to ensure that these provisions are used properly, effectively and the rights of tax payers are also protected, it is stipulated that Inspection, Search or Seizure can only be carried out when an officer, of the rank of Joint Commissio

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cer higher in rank can give such authorization only if he has reasons to believe that the person concerned has done one of the following actions: (a) Suppression of any transaction relating to supply of goods or services or stock in hand; (b) Claimed excess input tax credit; (c) Contravention of any provisions of the Act or the Rules to evade tax; (d) Transporting or keeping goods which escaped payment of tax or manipulating accounts or stocks which may cause evasion of tax; Inspection can also be done of the conveyance, carrying a consignment of value exceeding specified limit. The person in charge of the conveyance has to produce documents / devices for verification and allow inspection. Inspection during transit can be done even without authorisation of Joint Commissioner. (ii) Inspection in movement (a) Any consignment, value of which is exceeding ₹ 50,000/-, may be stopped at any place for verification of the documents /devices prescribed for movement of such consignments. (

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h of any place of business etc. can be carried out only under authorisation from an officer of the rank of Joint Commissioner and if he has a reason to believe that the person concerned has done at least one of the following:- (a) Goods liable to confiscation or any documents /books/record/things, which may be useful for or relevant to any proceedings, are secreted in any place then all such places can be searched; (b) All such goods/documents/books/record/ things may be seized, however, if it is not practicable to seize any such goods then the same may be detained. The person from whom these are seized shall be entitled to take copies/ extracts of seized records; (c) The seized documents/books/things shall be retained only till the time the same are required for examination /enquiry/proceedings and if these are not relied on for the case then the same shall be returned within 30 days from the issuance of show cause notice; (d) The seized goods shall be provisionally released on execut

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s In the administration of taxation the provisions for arrests are created to tackle the situations created by some unscrupulous tax evaders. To some these may appear very harsh but these are necessary for efficient tax administration and also act as a deterrent and instil a sense of discipline. The provisions for arrests under GST Law have sufficient inbuilt safeguards to ensure that these are used only under authorisation from the Commissioner. Besides this, the GST Law also stipulates that arrests can be made only in those cases where the person is involved in offences specified for the purposes of arrest and the tax amount involved in such offence is more than the specified limit. The salient points of these provisions are:- (a) Provisions for arrests are used in exceptional circumstance and only with prior authorisation from the Commissioner. (b) The law lays down a stringent criteria and procedure to be followed for arresting a person. A person can be arrested only if the criteri

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GST – GST Law and Procedure – 019 – Chapter Ninteen Input Tax Credit Mechanism in GST Electronic Way Bill in GST Uninterrupted and seamless chain of input tax credit (hereinafter referred to as, ITC ) is one of the key features of Goods and Services Tax. ITC is a mechanism to avoid cascading of taxes. Cascading of taxes, in simple language, is tax on tax . Under the present system of taxation, credit of taxes being levied by Central Government is not available as set-off for payment of taxes levied by State Governments, and vice versa. One of the most important features of the GST system is that the entire supply chain would be subject to GST to be levied by Central and State Government concurrently. As the tax charged by the Central or the State Governments would be part of the same tax regime, credit of tax paid at every stage would be available as set-off for payment of tax at every subsequent stage. Let us understand how cascading of taxes takes place in the present regime. Centra

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s. This mechanism eliminates cascading of taxes. However, when the pen is sold by the manufacturer to a trader he is required to levy VAT on such sale. But under the present system, the manufacturer cannot use the credit of central excise duty paid on the pen for payment of VAT, as the two levies are being levied by Central and State government respectively with no statutory linkage between the two. Hence he is required to pay VAT on the entire value of the pen, i.e. ₹ 22/-, which actually includes the central excise duty to the tune of ₹ 2/-. This is cascading of taxes or tax on tax as now VAT is not only paid on the value of pen i.e. ₹ 20/- but also on tax i.e. ₹ 2/-. Goods and Services Tax (GST) would mitigate such cascading of taxes. Under this new system most of the indirect taxes levied by Central and the State Governments on supply of goods or services or both would be combined together under a single levy. The major taxes/levies which are going to be clu

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)[also known as Integrated Tax] on inter-state supply of goods or services or both. In case of import of goods also the present levy of Countervailing Duty (CVD) and Special Additional Duty (SAD) would be replaced by Integrated tax. The protocol to avail and utilise the credit of these taxes is as follows: Credit of To be utilised first for payment of May be utilised further for payment of CGST CGST IGST SGST/UTGST SGST/UTGST IGST IGST IGST CGST, then SGST/UTGST Credit of CGST cannot be used for payment of SGST/ UTGST and credit of SGST / UTGST cannot be utilised for payment of CGST. Some of the technical aspects of the scheme of Input Tax Credit are as under: a) Any registered person can avail credit of tax paid on the inward supply of goods or services or both which is used or intended to be used in the course or furtherance of business. b) The pre-requisites for availing credit by registered person are: a) He is in possession of tax invoice or any other specified tax paying document

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prescribed under Customs Act e) Revised invoice f) Document issued by Input Service Distributor a) No ITC beyond September of the following FY to which invoice pertains or date of filing of annual return, whichever is earlier b) The Input Service Distributor (ISD) may distribute the credit available for distribution in the same month in which it is availed. The credit of CGST, SGST, UTGST and IGST shall be distributed as per the provisions of Rule 4(1)(d) of ITC Rules. ISD shall issue invoice in accordance with the provisions made under Rule 9(1) of Invoice Rules. c) ITC is not available in some cases as mentioned in section 17(5) of CGST Act, 2017. Some of them are as follows: a) motor vehicles and other conveyances except under specified circumstances. b) goods and / or services provided in relation to i. food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, except under specified circumstances; ii. membership of a club, health and fit

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ITC is available: a) A person who has applied for registration within 30 days of becoming liable for registration is entitled to ITC of input tax in respect of goods held in stock (inputs as such and inputs contained in semi-finished or finished goods) on the day immediately preceding the date from which he becomes liable to pay tax. b) A person who has taken voluntary registration under section 23(3) of the CGST Act, 2017 is entitled to ITC of input tax in respect of goods held in stock(inputs as such and inputs contained in semi-finished or finished goods) on the day immediately preceding the date of registration. c) A person switching over to normal scheme from composition scheme under section10 is entitled to ITC in respect of goods held in stock(inputs as such and inputs contained in semi-finished or finished goods) and capital goods on the day immediately preceding the date from which he becomes liable to pay tax as normal taxpayer. d) Where an exempt supply of goods or services

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Reduced tax liability on homes under GST – Goods and Services Tax – GST – Dated:- 9-8-2017 News – Press release

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GST – GST Law and Procedure – 023 – Chapter Twenty Three Imports in GST Regime Introduction Under the GST regime, Article 269A constitutionally mandates that supply of goods, or of services, or both in the course of import into the territory of India shall be deemed to be supply of goods, or of services, or both in the course of inter-State trade or commerce. So import of goods or services will be treated as deemed inter-State supplies and would be subject to Integrated tax. While IGST on import of services would be leviable under the IGST Act, the levy of the IGST on import of goods would be levied under the Customs Act, 1962 read with the Custom Tariff Act, 1975. The importer of services will have to pay tax on reverse charge basis. However, in respect of import of online information and database access or retrieval services (OIDAR) by unregistered, non-taxable recipients, the supplier located outside India shall be responsible for payment of taxes (IGST). Either the supplier will h

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provisions of the Customs Tariff Act, 1975 on the value as determined under the said Act at the point when duties of customs are levied on the said goods under the Customs Act, 1962. The integrated tax on goods shall be in addition to the applicable Basic Customs Duty (BCD) which is levied as per the Customs Tariff Act. In addition, GST compensation cess, may also be leviable on certain luxury and de-merit goods under the Goods and Services Tax (Compensation to States) Cess Act, 2017. The Customs Tariff Act, 1975 has accordingly been amended to provide for levy of integrated tax and the compensation cess on imported goods. Accordingly, any goods which are imported into India shall, in addition to the Basic Customs duty, be liable to integrated tax at such rate as is leviable Sr.No. Date of prior intimation given for procuring deemed export supplies Details of registered person Jurisdictional GST officer details of registered person Invoice no. and date of registered person Name Addres

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an addition to, and in the same manner as, a duty of customs. The value of the imported article for the purpose of levying cess shall be assessable value plus Basic Customs Duty levied under the Act, and any sum chargeable on that goods under any law for the time being in force as an addition to, and in the same manner as, a duty of customs. The integrated tax paid shall not be added to the value for the purpose of calculating cess. Let s take an example: Suppose the assessable value of an article imported into India is ₹ 100/-. Basic Customs Duty is 10% ad-valorem. Education Cess is 3%; Integrated tax rate is 18% and Compensation Cess is 15% The taxes will be calculated as under: Particulars Duty (A) Assessable Value ₹ 100/- (B) Basic Customs Duty@10% Rs.10/- (C) Education Cess @3% Rs.0.30 (D) Value for Integrated Tax Rs.110.30 (E) Integrated Tax @18% Rs.19.85 (F) Value for Compensation Cess Rs.110.30 (G) Compensation Cess @ 15% ₹ 16.55 (H) Total Duty ( B+C +E+G) Rs.

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vides for removal of goods from a customs station to a warehouse without payment of duty. The said Act has been amended to include warehouse in the definition of customs area in order to ensure that an importer would not be required to pay the Integrated tax at the time of removal of goods from a customs station to a warehouse. However, the transaction of sale / transfer etc. of the warehoused goods between the importer and any other person may be at a price higher than the assessable value of such goods. Such a transaction squarely falls within the definition of supply and shall be taxable under the IGST Act, 2017. It may be noted that as per sub-section (2) of section 7 of the IGST Act, any supply of imported goods which takes place before they cross the customs frontiers of India, shall be treated as an inter-State supply. Thus, such a transaction of sale/transfer will be subject to IGST under the IGST Act, 2017. The value of such supply shall be determined in terms of section 15 of

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urther, 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. Import of goods by 100% EOU s and SEZs: Import of goods by 100% EOU s would be governed by Notification no. 52/2003-Customs as amended by Notification no. 78/2017-Customs dated 13.10.2017. EOUs are allowed duty free import of goods (exempt from Customs duties, IGST & Compensation Cess) under the said notifications. However, exemption from IGST is only available till 31.03.2018. Goods imported by a unit or a developer in the Special Economic Zone for authorised operations are exempted from the whole of integrated tax under section 3 (7) of the Customs Tariff Act, 1975 vide Notification No. 64/2017-Customs dated 05.07.2017. Input tax credit of integrated tax: The definition of input tax in relation to a registered person also includes the integrated tax and compensation cess charged on import of goods. Thus, input tax credit of the integrated ta

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t, 2017 and refers to supply of any service where the supplier is located outside India, the recipient is located in India and the place of supply of service is in India. As per the provisions contained in Section 7(1) (b) of the CGST Act, 2017, import of services for a consideration whether or not in the course or furtherance of business shall be considered as a supply. Thus, in general, import of services without consideration shall not be considered as supply. However, business test is not required to be fulfilled for import of service to be considered as supply. Furthermore, in view of the provisions contained in Schedule I of the CGST Act, 2017, the import of services by a taxable person from a related person or from a distinct person as defined in Section 25 of the CGST Act, 2017, in the course or furtherance of business shall be treated as supply even if it is made without any consideration. In view of the provisions contained in Section 14 of the IGST Act, 2017, import of free

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1st July, 2017 will be liable to integrated tax regardless of whether the transactions for such import of services had been initiated before the appointed day. However, if the tax on such import of services had been paid in full under the existing law, no tax shall be payable on such import under the IGST Act. In case the tax on such import of services had been paid in part under the existing law, the balance amount of tax shall be payable on such import under the IGST Act, 2017. For instance, suppose a supply of service for Rs. One crore was initiated prior to the introduction of GST, a payment of ₹ 20 lacs has already been made to the supplier and service tax has also been paid on the same, the integrated tax shall have to be paid on the balance ₹ 80 lacs. Section 13 of the IGST Act, 2017 provides for determination of place of supply in cases wherein the location of the supplier of services or the recipient of services is outside India. Thus, this section provides the pla

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ted into India for repairs and are exported after repairs 3. Services supplied directly in relation to an immovable property Place where the immovable property is located or intended to be located 4. Admission to, or organisation of an event Place where the event is actually held 4.1 Above Services provided in more than one country including India India 4.2 Above Services provided in more than one state Proportionate Basis 5. Services supplied by a banking company, or a financial institution, or a non-banking financial company, to account holders Location of the supplier of services 5.1 Intermediary services 5.2 Services consisting of hiring of means of transport, including yachts but excluding aircrafts and vessels, up to a period of one month 6. Transportation of goods, other than by way of mail or courier Place of destination of such goods 7. Passenger transportation services Place where the passenger embarks on the conveyance for a continuous journey 8. Services provided on board a

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Goods and Services Tax – GST – Dated:- 9-8-2017 – PRESS RELEASE 07th August, 2017 The Schedule to the Goods and Service Tax (GST) (Compensation to State) Act 2017 specifies the maximum rate at which Goods and Service Tax Compensation Cess may be collected. In respect of motor vehicles, the maximum rate at which Goods and Service Tax Compensation Cess may be collected is 15%. 2. After introduction of GST, the total tax incidence on motor vehicles [GST + Compensation Cess] has come down vis-a-vis

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Goods and Services Tax – Started By: – Mayuri Shete – Dated:- 9-8-2017 Last Replied Date:- 10-8-2017 – HelloWe provide works contract services. rate of GST on the same is 18%.But is it same if we provide the service to Government Authorities (Government of India,Minsitry of Defence (R&D) ?Previously we were exempted from service tax.please help. – Reply By KASTURI SETHI – The Reply = Now no exemption is available. There is a difference between both. Government Authority is not fully Govt. e

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Goods and Services Tax – Started By: – pawan kumar – Dated:- 9-8-2017 Last Replied Date:- 30-12-1899 – 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

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Goods and Services Tax – Started By: – RameshBabu Kari – Dated:- 9-8-2017 Last Replied Date:- 12-8-2017 – Dear Experts, While filing the GSTR-1 through online, There is a problem with it i.e 1.In B2B transactions, We have uploaded the all out word supplies(total invoices is 34) but in the B2B, showing only 24 only. and also not matching the total liability. (In this case, if we try to enter any inovice, it is showing that this invoice is already there) – What to do and how to do ? 2.For unregis

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GST – GST Law and Procedure – 043 – Chapter Forty Three GST Practitioners Section 48 of the CGST Act provides for authorisation of an eligible person to act as approved GST practitioners. A registered person may authorise an approved GST practitioner to furnish information, on his behalf, to the government. The manner of approval of goods and services tax practitioners, their eligibility conditions, duties and obligations, manner of removal and other conditions relevant for their functioning have been prescribed in rule 24 and 25 of the Return Rules. Standardised formats from GST PCT- 1 to GST PCT-5 have been prescribed for making application for enrolment as GST practitioner, certificate of enrolment, show cause notice for disqualification, order of rejection of application of enrolment, list of approved GST practitioners, authorisation letter and withdrawal of authorisation. A goods and services tax practitioner enrolled in any other State or Union Territory shall be treated as enro

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ing, or Business Administration or Business Management from any Indian University established by any law for the time being in force; or (ii) a degree examination of any Foreign University recognized by any Indian University as equivalent to the degree examination mentioned in sub clause (i); or (iii) any other examination notified by the Government, on the recommendation of the Council, for this purpose; or (iv) any degree examination of an Indian University or of any Foreign University recognized by any Indian University as equivalent of the degree examination or (v) has passed any of the following examinations, namely. – (a) final examination of the Institute of Chartered Accountants of India; or (b) final examination of the Institute of Cost Accountants of India; or (c) final examination of the Institute of Company Secretaries of India. A person desirous of becoming GST Practitioner has to submit an application in the form GST PCT-1. The application shall be scrutinised and GST pra

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h details of outward and inward supplies; (b) furnish monthly, quarterly, annual or final return; (c) make deposit for credit into the electronic cash ledger; (d) file a claim for refund; and (e) file an application for amendment or cancellation of registration. But it has been provided that a confirmation form registered person shall be sought where an application relating to a claim for refund or an application for amendment or cancellation of registration has been submitted by the goods and services tax practitioner. In addition, a GST practitioner shall also be allowed to appear as authorised representative before any officer of department, Appellate Authority or Appellate Tribunal, on behalf of such registered person who has authorised him to be his GST practitioner. Conditions for GST Practitioner Any registered person may give consent and authorise a GST practitioner in the form GST PCT-5 by listing the authorised activities in which he intends to authorise the GST practitioner.

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nfirming, should ensure that the facts mentioned in the return are true and correct before signature. However, failure to respond to request for confirmation shall be treated as deemed confirmation. The GST practitioner shall prepare all statements with due diligence and affix his digital signature on the statements prepared by him or electronically verify using his credentials. If the GST practitioner is found guilty of misconduct, his enrolment will be liable to be cancelled. A show cause notice would be issued to him in the form GST PCT-3. List of Formats (GST Practitioner) Sr.No. Form No. Description 1. GST PCT-1 Application for Enrolment as Goods and Services Tax Practitioner 2. GST PCT-02 Enrolment Certificate for Goods and Services Tax Practitioner 3. GST PCT-03 Show Cause Notice for disqualification 4. GST PCT-04 Order of Rejection of Application for enrolment as GST Practitioner/Or Disqualification to function as GST Practitioner 5. GST PCT-05 Authorization/withdrawal of autho

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GST – GST Law and Procedure – 004 – Chapter Four Composite Supply and Mixed Supply Introduction The taxable event under GST is supply of goods or services or both. GST will be payable on every supply of goods or services or both unless otherwise exempted. The rates at which GST is payable for individual goods or services or both is also separately -notified. Classification of supply (whether as goods or services, the category of goods and services) is essential to charge applicable rate of GST on the particular supply. The application of rates will pose no problem if the supply is of individual goods or services which is clearly identifiable and the goods or services are subject to a particular rate of tax. But not all supplies will be such simple and clearly identifiable supplies. Some of the supplies will be a combination of goods or combination of services or combination of goods and services both. Each individual component in a given supply may attract different rate of tax. The r

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ecific rate of tax mentioned against such services. (Works contract and restaurant) In respect of composite supplies (other than the two categories mentioned above), the need to determine the supply as a composite one, will arise, so as to determine the appropriate classification. It will be necessary to determine as to whether a particular supply is naturally bundled in the ordinary course of business and what constitutes principal supply in such composite supplies. The concept of composite supply under GST is identical to the concept of naturally bundled services prevailing in the existing service tax regime. This concept has been explained in the Education Guide issued by CBEC in the year 2012 as under – Bundled service means a bundle of provision of various services wherein an element of provision of one service is combined with an element or elements of provision of any other service or services. An example of bundled service would be air transport services provided by airlines wh

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conference Access to fitness room for the delegates Availability of conference room Business centre As is evident a bouquet of services is being provided, many of them chargeable to different effective rates of tax. None of the individual constituents are able to provide the essential character of the service. However, if the service is described as convention service it is able to capture the entire essence of the package. Thus, the service may be judged as convention service and chargeable to full rate. However, it will be fully justifiable for the hotel to charge individually for the services as long as there is no attempt to offload the value of one service on to another service that is chargeable at a concessional rate. Whether services are bundled in the ordinary course of business would depend upon the normal or frequent practices followed in the area of business to which services relate. Such normal and frequent practices adopted in a business can be ascertained from several in

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ng of 3-4 items of clothing free of cost per day. Such service is an ancillary service to the provision of hotel accommodation and the resultant package would be treated as services naturally bundled in the ordinary course of business. Other illustrative indicators, not determinative but indicative of bundling of services in ordinary course of business are – There is a single price or the customer pays the same amount, no matter how much of the package they actually receive or use. The elements are normally advertised as a package. The different elements are not available separately. The different elements are integral to one overall supply – if one or more is removed, the nature of the supply would be affected. No straight jacket formula can be laid down to determine whether a service is naturally bundled in the ordinary course of business. Each case has to be individually examined in the backdrop of several factors some of which are outlined above. The above principles explained in t

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hat the supply is a composite supply. A supply can be a mixed supply only if it is not a composite supply. As a corollary it can be said that if the transaction consists of supplies not naturally bundled in the ordinary course of business then it would be a Mixed Supply. Once the amenability of the transaction as a composite supply is ruled out, it would be a mixed supply, classified in terms of a supply of goods or services attracting highest rate of tax. The following illustration given in the Education Guide of CBEC referred to above can be a pointer towards a mixed supply of services: – A house is given on rent one floor of which is to be used as residence and the other for housing a printing press. Such renting for two different purposes is not naturally bundled in the ordinary course of business. Therefore, if a single rent deed is executed it will be treated as a service comprising entirely of such service which attracts highest liability of service tax. In this case renting for

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services would be applicable. Alternatively, if composite supply involves supply of goods as principal supply, such composite supply would qualify as supply of goods and accordingly, the provisions relating to time of supply of goods would be applicable. Time of supply in case of mixed supplies The mixed supply, if involves supply of a service liable to tax at higher rates than any other constituent supplies, such mixed supply would qualify as supply of services and accordingly the provisions relating to time of supply of services would be applicable. Alternatively, the mixed supply, if involves supply of goods liable to tax at higher rates than any other constituent supplies, such mixed supply would qualify as supply of goods and accordingly the provisions relating to time of supply of services would be applicable. Certain clarifications on composite and mixed supply given by CBEC The printing industry in India in particular faces a dilemma in determining whether the nature of supply

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nual reports, and the like, where only content is supplied by the publisher or the person who owns the usage rights to the intangible inputs while the physical inputs including paper used for printing belong to the printer, supply of printing [of the content supplied by the recipient of supply] is the principal supply and therefore such supplies would constitute supply of service falling under heading 9989 of the scheme of classification of services. In case of supply of printed envelopes, letter cards, printed boxes, tissues, napkins, wall paper etc. falling under Chapter 48 or 49, printed with design, logo etc. supplied by the recipient of goods but made using physical inputs including paper belonging to the printer, predominant supply is that of goods and the supply of printing of the content [supplied by the recipient of supply] is ancillary to the principal supply of goods and therefore such supplies would constitute supply of goods falling under respective headings of Chapter 48

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GST – GST Law and Procedure – 045 – Chapter Forty Five Benefits of Goods and Services Tax (GST) GST stands for Goods and Services Tax which is levied on the supply of goods or services or both in India. GST subsumes a number of existing indirect taxes which were earlier levied by the Centre and State Governments including Central Excise duty, Service Tax, VAT, Purchase Tax, Central Sales Tax, Entry Tax, Local Body Taxes, Octroi, Luxury Tax, etc. It brings benefits to all the stakeholders viz. industry, government and the citizens. It is expected to lower the cost of goods and services, boost the economy and make our products and services globally competitive. GST will make India a common national market with uniform tax rates and procedures and removes the economic barriers, thereby paving the way for an integrated economy at the national level. By subsuming most of the Central and State indirect taxes into a single tax and by allowing a set-off of prior-stage taxes for the transactio

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rated in entirety unlike the earlier system where refund of some taxes was not allowed due to fragmented nature of indirect taxes between the Centre and the States. All taxes paid on the goods or services exported or on the inputs or input services used in the supply of such export goods or services shall be refunded. The principle of exporting only the cost of goods or services and not taxes would be followed. This will boost Indian exports thereby improving the balance of payments position. Exporters are being facilitated by grant of provisional refund of 90% of their claims within seven days of issue of acknowledgement of their application, thereby resulting in the easing of position with respect to cash flows. Benefits of Goods and Services Tax (GST) GST is expected to bring buoyancy to the Government Revenue by widening the tax base and improving the taxpayer compliance. GST is likely to improve India s ranking in the Ease of Doing Business Index and is estimated to increase the

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ces and manpower in maintaining records. Common procedures for registration of taxpayers, refund of taxes, uniform formats of tax return, common tax base, common system of classification of goods or services along with timelines for every activity will lend greater certainty to taxation system. GST is largely technology driven. The interface of the taxpayer with the tax authorities is through the common portal (GSTN). There are simplified and automated procedures for various processes such as registration, returns, refunds, tax payments, etc. All processes, be it of applying for registration, filing of returns, payment of taxes, filing of refund claims etc. , is done online through GSTN. The input tax credit will be verified online. Electronic matching of input tax credit all – across India will make the process more transparent and accountable. This will encourage a culture of compliance. This will greatly reduce the human interface between the taxpayer and the tax administration lead

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GST – GST Law and Procedure – 050 – Chapter Fifty Appeals and Review Mechanism under GST Introduction Tax laws (or any laws, for that matter) impose obligations. Such obligations are broadly of two kinds: tax-related and procedure-related. The taxpayer s compliance with these obligations is verified by the tax officer (by various instruments such as scrutiny, audit, anti-evasion, etc.), as a result of which sometimes there are situations of actual or perceived non-compliance. If the difference in views persists, it results into a dispute, which is then required to be resolved. Tax law recognizes that on any given set of facts and laws, there can be different opinions or viewpoints. Hence, it is likely that the taxpayer may not agree with the adjudication order so passed by the tax officer. It is equally possible that the Department may itself not be in agreement with the adjudication order in some cases. It is for this reason that the statute provides further channels of appeal, to bo

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the CGST as well as the SGST/UTGST component of the same transaction. The Act also provides that where a proper officer under one Act(say CGST) has passed an order, any appeal/review/revision/rectification against the said order will lie only with the proper officers of that Act only (CGST Act)So also if any order is passed by the proper officer of SGST, any appeal/review/revision/rectification will lie with the proper officer of SGST only. Appellate Mechanism A person who is aggrieved by a decision or order passed against him by an adjudicating authority, can file an appeal to the Appellate Authority (AA, for short). It is important to note that it is only the aggrieved person who can file the appeal. Also, the appeal must be against a decision or order passed under the Act. It is to be noted that no appeals whatsoever can be filed against the following orders:- (a) an order of the Commissioner or other authority empowered to direct transfer of proceedings from one officer to another

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can also increase the rigour of the order appealed against by enhancing any fee or penalty or fine in lieu of confiscation or confiscating goods of greater value or reducing the amount of refund or input tax credit, but this can only be done after the AA has given to the appellant a reasonable opportunity of showing cause against the proposed order. Further, if the AA is of the opinion that any tax has not been paid or short-paid or erroneously refunded, or where input tax credit has been wrongly availed or utilized, no order requiring the appellant to pay such tax or input tax credit shall be passed unless the appellant is given notice to show cause against the proposed order and the order is passed within the time limit specified under section 73 or Section 74 of the CGST Act, 2017. The Order-in-appeal has to be a speaking order i.e. it should state the points for determination, the decision thereon and the reasons for the decision. The law provides an advisory time limit of 1 year

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t on substantial questions of law. Appeal to the Tribunal by the aggrieved person is to be filed within 3 months from the communication of the order under appeal. Further, Tribunal has the power to condone delay (of up to 3 months in case of appeals or 45 days in case of cross objections, beyond the mandatory period) on being satisfied that there is sufficient cause for the delay. The Tribunal has the discretion not to admit any appeal involving an amount of Rs. Fifty Thousand or less. The law also provides for filing of cross-objections by the respondent against such part of the order against which the respondent may initially not have chosen to file an appeal. It is provided that on receipt of notice that an appeal has been filed (by the appellant), the party against whom the appeal has been preferred (i.e. the respondent) may, notwithstanding that he may not have appealed against such order or any part thereof, file within 45 days a memorandum of cross-objections against any part of

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nments to either side. Concept of pre-deposit As mentioned earlier, the right to appeal is a statutory right which operates within the limitations placed on it by the law. One such limitation flows from the principle that an appellant must first deposit the adjudged dues before his further appeal can be heard. However, often an appellant may succeed in his appeal, and hence it would (in retrospect) be unfair to saddle him with this financial burden. To balance these factors, tax laws mandate some pre-deposit so as to discourage frivolous appeals and also safeguard the bonafide interests of both the taxpayers and the revenue. The CGST Act, 2017 require an appellant before AA to pre-deposit full amount of tax, interest, fine, fee and penalty, as is admitted by him, arising from the impugned order and a sum equal to 10% of the remaining amount of tax in dispute arising from the impugned order. In so far as appeals to the Tribunal is concerned, no appeal can be filed before the Tribunal un

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hat is commonly known as a review application/appeal . The GST Law gives powers to the Commissioner to review any order passed by his subordinates acting either as an adjudicating authority, or the appellate authority or revisional authority. If the Commissioner is of the view that any order passed by such authorities are not legal and proper, he can direct any officer subordinate to him to apply to the competent authority. For example, if the order of adjudicating authority is reviewed, he can order his subordinate to file an appeal before the appellate authority. If the order of the appellate authority or the revisional authority is reviewed, he can direct his subordinate to file an appeal before the Tribunal. The grounds for appeal will be mentioned in his order. The review of the order and the consequent filing of appeal by the subordinate has to be done within a period of six months from the date of communication of the order. The resultant review application is required to be dea

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annulling the said decision or order. The above power is subject to the condition that non-appealable orders and decision cannot be revised. Further the power of revision cannot be exercised if: – (a) the order has been subject to an appeal before AA or Tribunal or High Court or Supreme Court; or (b) the period of six months (from the date of communication of order) has not yet expired or more than three years have expired after the passing of the decision or order sought to be revised; or (c) the order has already been taken for revision at an earlier stage; or (d) the order sought to be revised is a revisional order in the first place: If the said decision or order involves an issue on which the Appellate Tribunal or the High Court has given its decision in some other proceedings and an appeal to the High Court or the Supreme Court against such decision of the Appellate Tribunal or the High Court is pending, the period spent between the date of the decision of the Appellate Tribunal

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purpose, authorised representative has been defined in the Act itself. Broadly, it includes a relative, a regular employee, an advocate, a chartered accountant, a cost accountant, a company secretary, or any person with prescribed qualifications. It is also provided that indirect tax gazetted officers can appear as authorised representative after one year from retirement. The GST law also provides for some disqualifications for an authorised representative such as dismissal from government service, conviction under some specified Acts, insolvency, misconduct, etc. Such orders of disqualification are, however, required to be passed after following the principles of natural justice. Appeal to the High Court The law provides that either side (department or party) if aggrieved by any order passed by the State Bench or Area Bench of the Tribunal may file an appeal to the High Court and the High Court may admit such appeal if it is satisfied that the case involves a substantial question of

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GST – GST Law and Procedure – 037 – Chapter Thirty Seven Advance Ruling Mechanism in GST Introduction An advance ruling helps the applicant in planning his activities, which are liable for payment of GST, well in advance. It also brings certainty in determining the tax liability, as the ruling given by the Authority for Advance Ruling is binding on the applicant as well as Government authorities. Further, it helps in avoiding long drawn and expensive litigation at a later date. Seeking an advance ruling is inexpensive and the procedure is simple and expeditious. It thus provides certainty and transparency to a taxpayer with respect to an issue which may potentially cause a dispute with the tax administration. A legally constituted body called Authority for Advance Ruling (AAR) can give a binding ruling to an applicant who is a registered person or is desirous of obtaining registration. The advance ruling given by the Authority can be appealed before an Appellate authority for Advance

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Under the present dispensation, advance rulings can be given only for a proposed transaction, whereas under GST, Advance ruling can be obtained for a proposed transaction as well as a transaction already undertaken by the appellant. What are the matters/questions specified in Section 97(2) & Section 100(1) of the CGST Act, 2017 (a) classification of any goods or services or both; (b) applicability of a notification issued under the provisions of CGST Act; (c) determination of time and value of supply of goods or services or both; (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods or services or both; (f) whether applicant is required to be registered; (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. Section 100(1) of the CGST Act, 2017 provides that

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he ruling given by the AAR & AAAR will be applicable only within the jurisdiction of the concerned state or union territory. It is also for this reason that questions on determination of place of supply cannot be raised with the AAR or AAAR. To whom the Advance Ruling is applicable An advance ruling pronounced by AAR or AAAR shall be binding only on the applicant who has sought the advance ruling and on the concerned officer or the jurisdictional officer in respect of the applicant. This clearly means that an advance ruling is not applicable to similarly placed other taxable persons in the State. It is only limited to the person who has applied for an advance ruling. Time period for applicability of Advance Ruling The law does not provide for a fixed time period for which the ruling shall apply. Instead, it has been provided that advance ruling shall be binding till the period when the law, facts or circumstances supporting the original advance ruling have not changed. However, an

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all be made on the common portal in FORM GST ARA-01 and shall be accompanied by a fee of five thousand rupees, to be deposited in the manner specified in section 49 (Section 49 deals with procedure of payment of tax/interest/penalty and the mechanism to make payment through Electronic Cash and Credit Ledgers). The application, the verification contained therein and all the relevant documents accompanying such application shall be signed in the manner specified in rule 26 of the CGST Rules, 2017. Rule 26 provides for the manner of authenticating documents through Digital Signature Certificate (DSC) or e-signature as specified in the Information Technology Act. Upon receipt of an application, the AAR shall send a copy of application to the officer in whose jurisdiction the applicant falls and call for all relevant records. The AAR may then examine the application along with the records and may also hear the applicant. Thereafter the AAR will pass an order either admitting or rejecting th

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of AAAR are also unable to come to a common conclusion in regard to the point(s) referred to them by AAR, then it shall be deemed that no advance ruling can be given in respect of the question on which difference persists at the level of AAAR. Appeals against order of AAR If the applicant is aggrieved with the finding of the AAR, he can file an appeal with AAAR. The form and manner of filing appeal with AAAR is given in Rule 106 of the CGST Rules, 2017. An appeal against the advance ruling shall be made by an applicant on the common portal in FORM GST ARA-02 and shall be accompanied by a fee of ten thousand rupees to be deposited in the manner specified in section 49. Similarly, if the prescribed or jurisdictional officer of CGST/SGST does not agree with the finding of AAR, he can also file an appeal with AAAR. The word prescribed officer of CGST/SGST means an officer who has been designated by the CGST/SGST administration in regard to an application for advance ruling. In normal circu

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y days of the filing of an appeal. If members of AAAR differ on any point referred to in appeal, it shall be deemed that no advance ruling is issued in respect of the question under appeal. Manual Filing of applications before AAR & AAAR As per rules 104 and 106 of the CGST Rules, 2017 the application for obtaining an advance ruling and filing an appeal against an advance ruling shall be made by the applicant on the common portal. However, due to the unavailability of the requisite forms on the common portal, a new rule 107A has been inserted vide notification No. 55/2017-Central Tax, dated 15.11.2017, which states that in respect of any process or procedure prescribed in Chapter XII, 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 the manual filing of the said application, intimation, reply, declaratio

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under section 49 of the CGST Act. It is reiterated that though the application shall be filed manually till the advance ruling module is made available on the common portal, the fee is required to be deposited online in terms of section 49 of the CGST Act. In order to make the payment of fee for filing an application for Advance Ruling on the common portal, the applicant has to fill his details using Generate User ID for Advance Ruling under User Services . After entering the email id and mobile number, a One Time Password (OTP) shall be sent to the email id. Upon submission of OTP, Systems shall generate a temporary ID and send it to the declared email and mobile number of the applicant. On the basis of this ID, the applicant can make the payment of the fee of ₹ 5,000/- each under the CGST and the respective SGST Act. The applicant is then required to download and take a print of the challan and file the application with the Authority for Advance Ruling. The application, the ver

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any other association, by any member of the association or persons or the authorised signatory thereof; (g) in the case of a trust, by the trustee or any trustee or the authorised signatory thereof; or (h) in the case of any other person, by some person competent to act on his behalf, or by a person authorised in accordance with the provisions of section 48 of the CGST Act. Form and Manner of Appeal to the Appellate Authority for Advance Ruling An appeal against the advance ruling issued under subsection (6) of section 98 of the CGST Act and the rules made thereunder shall be made by an applicant in quadruplicate, in FORM GST ARA-02 and shall be accompanied by a fee of ten thousand rupees to be deposited online, in the manner specified in section 49 of the CGST Act. It may be noted that though the application shall be filed manually till the advance ruling module is made available on the common portal, the fee is required to be deposited online in terms of section 49 of the CGST Act. T

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filed in the jurisdictional office of the respective State Authority for Advance Ruling or the State Appellate Authority for Advance Ruling respectively. If the space provided for answering any item in the Forms is found to be insufficient, separate sheets may be used. Further, the application, the verification appended thereto, the Annexures to the application and the statements and documents accompanying the Annexures must be self-attested. The contact details of all the AARs for all States are available at http://www.gstcouncil.gov.in/sites/default/files/Detailsof-AAR-as-on_22-11-2017.pdf Rectification of Mistakes The law gives power to AAR and AAAR to amend their order to rectify any mistake apparent from the record within a period of six months from the date of the order. Such mistake may be noticed by the authority on its own accord or may be brought to its notice by the applicant or the prescribed or the jurisdictional CGST/SGST officer. If a rectification has the effect of enh

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GST – GST Law and Procedure – 014 – Chapter Fourteen Accounts and Records in GST Assessment in GST is mainly focused on self-assessment by the taxpayers themselves. Every taxpayer is required to self-assess the taxes payable and furnish a return for specified tax periods i.e. the period for which return is required to be filed. The compliance verification is done by the department through scrutiny of returns, audit and/or investigation. Thus, the compliance verification is to be done through documentary checks rather than physical controls. This requires certain obligations to be cast on the taxpayer for keeping and maintaining accounts and records. 2. Section 35 of the CGST Act, 2017 and Chapter VIII of the CGST Rules, 2017 (hereinafter referred to as rules) provide that every registered person shall keep and maintain all records at his principal place of business. It also cast, responsibility on owner or operator of warehouse or godown or any other place used for storage of goods an

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tered person shall keep and maintain records of- a) goods or services imported or exported; or b) supplies attracting payment of tax on reverse charge along with relevant documents, including invoices, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers, refund vouchers and e-way bills. 4. In case, more than one place of business is specified in the certificate of registration, the accounts relating to each place of business shall be kept at such places of business. A registered person may keep and maintain such accounts and other particulars in electronic form in such manner as may be prescribed. 5. Following accounts and records will have to be maintained by every registered person: a) accounts of stock in respect of goods received and supplied; and such account shall contain particulars of the opening balance, receipt, supply, goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples and balance of stock in

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e and by products thereof; h) accounts showing the quantitative details of goods used in the provision of services, details of input services utilised and the services supplied; i) separate accounts for works contract showing – the names and addresses of the persons on whose behalf the works contract is executed; description, value and quantity (wherever applicable) of goods or services received for the execution of works contract; description, value and quantity (wherever applicable) of goods or services utilized in the execution of works contract; the details of payment received in respect of each works contract; and the names and addresses of suppliers from whom he has received goods or services. 6. The books of account shall be kept at the principal place of business and at every related place(s) of business mentioned in the certificate of registration and such books of account shall include any electronic form of data stored on any electronic devices. The data so stored shall be a

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therwise than those of clerical nature, shall be scored out under attestation and thereafter correct entry shall be recorded, and where the registers and other documents are maintained electronically, a log of every entry edited or deleted shall be maintained. Further each volume of books of account maintained manually by the registered person shall be serially numbered. 9. Period for preservation of accounts: All accounts maintained together with all invoices, bills of supply, credit and debit notes, and delivery challans relating to stocks, deliveries, inward supply and outward supply shall be preserved for seventy-two months (six years) from the due date of furnishing of annual return for the year pertaining to such accounts and records and shall be kept at every related place of business mentioned in the certificate of registration. A registered person, who is a party to an appeal or revision or any other proceedings whether filed by him or by the Commissioner, or is under investig

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and any other information which is required for such access along with a sample copy in print form of the information stored in such files. 11. Records to be maintained by owner or operator of godown or warehouse and transporters: The transporters, owners or operators of godowns, if not already registered under the GST Act(s), shall submit the details regarding their business electronically on the Common Portal in FORM GST ENR-01. A unique enrolment number shall be generated and communicated to them. A person enrolled in any other State or Union territory shall be deemed to be enrolled in the State or Union Territory. 12. Every person engaged in the business of transporting goods shall maintain records of goods transported, delivered and goods stored in transit by him and for each of his branches. Every owner or operator of a warehouse or godown shall maintain books of accounts, with respect to the period for which particular goods remain in the warehouse, including the particulars rel

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Goods and Services Tax – Started By: – SURYAKANT MITHBAVKAR – Dated:- 9-8-2017 Last Replied Date:- 10-8-2017 – Whether GST is applicable on conveyance charges under RCM. – Reply By HimansuSekhar Sha – The Reply = If it is a GTA, then RCM is applicable. GTA is defined. – Reply By KASTURI SETHI – The Reply = Conveying charges is not GTA. It is like travelling allowance. Not taxable under GST. No question of RCM. However, as expense may be part of transaction value. – Reply By subramanian vijayakumar – The Reply = Yes I agree with Sethi sir view – Reply By THYAGARAJAN KALYANASUNDARAM – The Reply = Dear sir, In case the conveyance expenses like auto fare expenses is claim by the employees, then RCM is applicable? If yes then what is the tax ra

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Goods and Services Tax – Started By: – RameshBabu Kari – Dated:- 9-8-2017 Last Replied Date:- 9-8-2017 – Dear Experts,There is the Classification Scheme for Services under GST was given and to such services, there is no rate was prescribed in that list. For them, how can we find the rate ? Can we assume as all other services not specified elsewhere in the taxable services and rate shall be as 18%. ? – Reply By KASTURI SETHI – The Reply = Service wise and slab wise (rate wise) details are availa

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Goods and Services Tax – Started By: – Augustine Pagare – Dated:- 9-8-2017 Last Replied Date:- 9-8-2017 – Hello Innovative Interiors is my Interior Designing and Contracting firm. I would like to know that as i fall in Services, still can i raise Supply of goods Tax Invoce and Labour charges, professional charges ( Designing fees ) seperately???? As off now as per my knowledge providing and fixing which comes under services ( works contract ) where my client can't availe ITV ( Input Tax Cre

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Goods and Services Tax – Started By: – SURYAKANT MITHBAVKAR – Dated:- 9-8-2017 Last Replied Date:- 16-8-2017 – If GST is applicable on remuneration paid to Directors by company. – Reply By HimansuSekhar Sha – The Reply = Yes, the gstvis applicable – Reply By KIRTIKUMAR PUROHIT – The Reply = ON DIRECTORS REMUNERATION THERE IS NO GST APPLICABLE BECAUSE IT IS CONSIDERED AS SALARY AND 16-A FORM ALSO IS TO BE ISSUED, Any other services provide in that case GST applicable. – Reply By HimansuSekhar Sh

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 9-8-2017 Last Replied Date:- 9-8-2017 – We all know that compensation cess has been introduced in GST with the sole objective of collecting revenue (not tax) in the form of a compensation cess to augment the resources to meet out any tax deficit which may be payable to states in the event of any State having a short fall of tax revenue in GST regime as per agreed formula. The likely hood of such shortfall was also estimated and accordingly compensation rates were decided, notified on select items as per the scheme of law. All vehicles on which cess was notified, flat rate of 15 percent had been fixed which resulted in all vehicles getting cheaper in final price- some with sm

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e down and such rate fixation had been done with considerable discussions and after a lot of thought process was involved. Government has now have a afterthought that why should the prices be lowered on such items and therefore, come out with an idea that compensation cess should be enhanced from 15% to 25% (by 10%) on select vehicles (luxury and SUVs) so that prices such vehicles do not become cheaper than in the earlier taxation system. We all know that after GST was introduced w.e.f. 1.7.2017, the overall tax incidence on motor vehicles come down as compared to the pre GST tax regime (see table below): Segment Excise CST VAT Infrastructure Cess Luxury cess Total pre GST rate GST Cess Effective GST Change Two / three wheelers 12.5 2 13.5

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g capacity, mid segment / large cars, hybrid cars and SUVs. While GST Council and the Central Government has all powers to do so, there are few questions to be addressed. It was a Council's decisions taken with full conscience in meeting dated 18 May, 2017 that compensation shall be met as per the cesses decided. Then why to tinker so early only to see that lower prices are not desirable. Tinkering with rates so frequently would result in anarchy and unjust enrichment. Does it not amount to profiteering on the part of Government which expects taxpayers to be just and fair to customers and has anti profiteering clause in place. Will such a decision shake the faith of trade & industry in the Government and its tax policies affecting s

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Goods and Services Tax – Started By: – Jitender Kumar – Dated:- 9-8-2017 Last Replied Date:- 9-8-2017 – I am Jitender Kumar and stay in Bangalore, recently we have bought a flat in Bangalore on 29th May with the advance payment of 20% of total cost as booking amount. Builder has provided us payment slab with Service Tax as 4.9% which we have to pay every alternate month from August onward.Since GST is in place now builder is asking us to pay 12% GST on the pending slab though we have booked the flat before July itself rather than 4.9% earlier service tax. This is creating a burden of additional 4 lakhs on us.I believe that builder should not ask increased tax slab since we have booked before GST implementation. I am really confused now and

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the earlier practice of payment of VAT at the time of Registration) on 20% of the Advance amount that you have paid. With effect from 1st July under GST, Flat sales are taxed @ 12% effective rate, and GST is liable on 80% of your Flat value @ 12%. However Builders are given seamless credit in GST regime by allowing Input tax credit tax on all the purchases & services that has been received by him. As per Anti profiteer provisions of GST, he should pass on atleast 3-4% of tax reduction to the buyer. You can question him the same. He may get a discount/reduction of 4% GST. – Reply By Jitender Kumar – The Reply = Thansk Vamsi Krishna Information provided by you really helped me to have a discussion with my builder. Builder finally agreed o

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