Goods and Services Tax

Goods and Services Tax – Started By: – Aitha RajyaLakshmi – Dated:- 4-5-2017 Last Replied Date:- 5-5-2017 – Sir,Is there any option to modify the details given in GST migration. Our additional place of business is rented but we have given it as own premises. – Reply By KASTURI SETHI – The Reply = Still it is proviosnal. It can be modified. Nothing to worry. You can amend it even after the date of implementation of GST. – Reply By MARIAPPAN GOVINDARAJAN – The Reply = Section 28 of CGST Act, 2017 provides for amendment of Registration. Rule 11(2) of Returns as approved by GST Council provides that where the change relates to legal name of business, address of the principal place or any additional place of business or addition, deletion or re

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST ROLL OUT – 1st SEPTEMBER 2017? – Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 4-5-2017 Last Replied Date:- 5-5-2017 – The implementation of GST in India has been taken effort since 2010. Now it has come true after making amendment in the Constitution and passing of four acts viz., Central Goods and Services Tax Act, 2017, Union Territory Goods and Services Tax Act, 2017, Integrated Goods and Services Tax Act, 2017 and the Goods and Services Tax (Compensation to States) Act, 2017. It is expected that the implementation of GST would be with effect from 1st July, 2017. The following rules have been approved by GST Council (as on 02.04.2017)- Composition Rules; Valuation Rules; Transition Rules; ITC Rules; Revised Invo

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

with effect from 01.09.2017. Migration of existing assessees to GST is also another challengeable issue. 30.03.2017 was fixed as the deadline for migration to GST by the existing assessees. It is reported that only 70% of them migrating as of April 30 deadline. Migration of service tax and Central excise assessees was also low at 43.73% and 24% respectively. This lacking is to be discussed in the GST Council to be conducted at Srinagar on 18.05.2017 and 19.05.2017. It is reported in www.gst.gov.in that more than 60 lakhs tax payers enrolled on GST portal between 8th November, 2016 to 30th April, 2017. The enrolment process has been closed with effect from 01.05.2017. Data of all those who have signed the enrolment form will be migrated to

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

use in CGST Act is another challenge to the assessees. Because of it every one wants to be very careful. Detailed guidelines are to be issued by the Government in this regard. The Finance Minister is keen in introducing GST by 01.07.2017. Every wing in service sectors, industries and traders wants some time to come up with the GST. Whatever date GST may be implemented there shall be a smooth transition to the new environment. Source: 1. www.gst.gov.in 2. Business Line 3. www.cbec.gov.in – Reply By KASTURI SETHI – The Reply = Dear Sir,Very informative and educative article. Writing an article is an innate art gifted by God.You are really a great hard worker coupled with appreciable stamina. God does not shower such grace on everybody. – Repl

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GOODS & SERVICES TAX (GST) (Status as on 01st May, 2017) – Goods and Services Tax – GST – Dated:- 3-5-2017 – GOODS & SERVICES TAX (GST) (Status as on 01st May, 2017) – News – Press release

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Started By: – Pranay Jain – Dated:- 3-5-2017 Last Replied Date:- 4-5-2017 – Whether deemed credit of 40% in CSGT will be available to first stage dealer on SEZ goods in his stock on appointed date 01st Jul17. – Reply By Govind Gupta – The Reply = Hi Pranaylet us go into more details, ideally if goods have been subjected to any tax incidence, then ideally there should not be any credit available, the law is drafted to bring everyone on same level whether it is trader/man

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – Dated:- 3-5-2017 – 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 Budget for 2006-07. Initially, it was pro

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

y 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 and the States to levy and collect th

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

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 and minimum of 20 States would be requ

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

e 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%. Besides, some goods and services would be under the list of exempt items. Rate for precious metals is yet to be fixed. A cess over the peak rate of 28% on certain specified luxury and demerit goods would be imposed for a period of five years to compensate States for any revenue loss on account of im

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

) Four rules on input tax credit, composition levy, transitional provisions and valuation have been recommended. Further five Rules on registration, invoice, payments, returns and refund, finalized in September, 2016 and as amended in light of the GST bills introduced in the Parliament, have also been recommended. Salient Features of GST 6. The salient features of GST are asunder: (i) GST would be applicable on supply of goods or services as against the present concept of tax on the manufacture of goods or on sale of goods or on provision of services. (ii) GST would be based on the principle of destination based consumption taxation as against the present principle of origin based taxation. (iii) It would be a dual GST with the Centre and the States simultaneously levying it on a common base. The GST to be levied by the Centre would be called Central GST (CGST) and that to be levied by the States [including Union territories with legislature] would be called State GST (SGST). Union ter

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

) 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 supply of goods or services. (x) GST would apply to all goods and services except Alcohol for human consumption. (xi) GST on five specified petroleum products (Crude, Petrol, Diesel, ATF & Natural gas) would be applicable from a date to be recommended by the GSTC. (xii) Tobacco and tobacco products would be subject to GST. In addition, the Centre would continue to levy Central Excise duty. (xiii) A common threshold exemption would apply to both CGST and SGST. Taxpayers with an annual turnover of ₹

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

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 credit of SGST used for payment of IGST is transferred by the originating State to the Centre. Similarly the IGST used for payment of SGST would be transferred by Centre to the destination State. Further the SGST portion of IGST collected on B2C supplies would also be transferred by Centre to the destination State. The transfer of funds would be carried out on the basis of information contained in the returns filed by the taxpayers. (xviii) Input Tax Credit (ITC) to be broad based by making it available

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ing 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-payment or non-payment of tax or erroneous refund and its adjudication in normal cases. (xxvii) Limitation period for raising demand is five (5) years from the due date of filing of annual return or from the date of erroneous refund for raising demand for short-payment or non-payment of tax or erroneous refund and its adjudication in case of fraud, suppression or willful misstatement. (xxviii) Arrears of tax to be recovered using various modes including detaining and sale of goods, movable and im

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

f 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 gainful employment leading to substantive economic growth; (v) Ultimately it will help in poverty eradication by generating more employment and more financial resources; (vi) More efficient neutralization of taxes especially for exports thereby making our products more competitive in the international market and give boost to Indian Exports; (vii) Improve the overall investment climate in the country which will naturally benefit the development in the states; (viii) Uniform SGST and IGST rates will

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

axpayer 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 registration, refunds, etc; (ix) Electronic matching of input tax credits all – across India thus making the process more transparent and accountable. (C) Benefit to Consumers: (i) Final price of goods is expected to be lower due to seamless flow of input tax credit between the manufacturer, retailer and service supplier; (ii) It is expected that a relatively large segment of small retailers will be either exempted from tax or will suffer very low tax rates under a compounding scheme- purchases from suc

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

already appointed M/s Infosys as Managed Service Provider (MSP) at a total project cost of around ₹ 1380 crores for a period of five years. 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. The State of Telangana, Bihar, Rajasthan, Jharkhand and Chhattisgarh have also passed SGST Act. Other States are expected to pass them in the month of May, 2017. 9.1 The levy of the tax can commence only after the GST Law has been enacted by all the legislatures. Also, unlike the State VAT, the date of commencement of this levy would have to be synchronized across the Centre and the States. This is because the IGST model cannot function unless the Cen

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

o 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 Governments. Officers of the office of CAG are also participating and getting trained in this training programme. More than 50000 officers (including around 20000 officers from States) have al

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – Dated:- 2-5-2017 – Lucknow, May 2 (PTI) The Uttar Pradesh government today approved implementation of the Goods and Services Tax (GST) in the state and the same will be passed in the Assembly in the session commencing from May 15. The decision in this regard was taken at the state cabinet meeting chaired by Chief Minister Yogi Adityanath here. The revenue of the state is likely to increase after implementation of the GST in the first session of this government, Ca

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Started By: – Siddharaj Deora – Dated:- 2-5-2017 Last Replied Date:- 27-7-2017 – Are works contract covered under composition scheme? If not, whether any abatement is provided as in Service Tax? And what rate will apply for supply of goods and supply of services? – Reply By MARIAPPAN GOVINDARAJAN – The Reply = Section 10(2) of CGST Act provides that the registered person shall be eligible to opt under composition scheme, if- (a) he is not engaged in the supply of services other than supplies referred to in clause (b) of para 6 of Schedule II; (b) he is not engaged in making any supply of goods which are not leviable to tax under this Act; (c) he is not engaged in making any inter-State outward supplies of goods; (d

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Started By: – CA AJAY KUMAR AGRAWAL – Dated:- 2-5-2017 Last Replied Date:- 17-6-2017 – Dear all, By the time learned members must have an idea of shape of GST in area based exemption states like HP & UK. Please share your valuable views or share link of relevant articles. – Reply By MARIAPPAN GOVINDARAJAN – The Reply = It is learnt that the same may likely to be continued in GST regime. – Reply By CA AJAY KUMAR AGRAWAL – The Reply = Thank you sir very much. My query was specifically regarding whether they have to avail ITC on the transition date & then pay GST or whether they will be eligible to avail ITC after completion of Exemption period & have to pay GST now without availing ITC. – Reply By MARIAPP

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 2-5-2017 – Section 66B of the Finance Act, 1994 provides that there shall be levied a tax at the rate of fourteen per cent. on the value of all services, other than those services specified in the negative list, provided or agreed to be provided in the taxable territory by one person to another and collected in such manner as may be prescribed. The central excise duty is leviable on the manufacturing of goods. GST, being subsumed service tax and central excise duty, levies tax on the concept of supply. The key word that is to be remembered by the stakeholders is supply . In this article the meaning of the term supply and the types of various supplies are discussed for the information of the readers. Supply Section 7 of the Act defines the term supply including- all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a co

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

inuously or on recurrent basis, under the contract whether or not by means of a wire, cable, pipeline or other conduit, and for which the suppler invoices the recipient on a regular or periodic basis and includes supply of such goods as Government may, subject to such conditions as it may, by notification, specify. Section 2(33) defines the expression continuous supply of services as a supply of services which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract for a period exceeding three months with periodic payment obligation and includes supply of such services as the Government may, subject to such conditions, as it may, by notification, specify. Inward supply Section 2(67) defines the expression inward supply in relation to a person, as receipt of goods or services or both whether by purchase, acquisition or any other means with or without consideration. Outward supply Section 2(83) defines the expression outward supply in relation to a tax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary. Inter-State supply Section 7 of Integrated Goods and Services Tax Act, defines the expression inter-State Supply as supply of goods, where the location of the supplier and place of supply are in- two different States; two different Union territories; or a State and a Union territory shall be treated as a supply of goods in the course of inter-State trade or commerce. Supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce. Where the location of the supplier and the place of supply are in- two different States; two different Union territories; or a State and a Union territory shall be treated as a supply of service in the course of inter-State trade or commerce. Supply of services imported into the territory of India shall be tre

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

pplies made to a tourist referred to in Section 15. The supply of services where the location of the supplier and the place of supply of services are in the same State or same Union territory shall be treated as intra-State supply. The intra-State supply of services shall not include supply of services to or by a Special Economic Zone developer or a Special Economic Zone unit. Explanation 1. -for the purposes of this Act, where a person has- an establishment in India and any other establishment outside India; an establishment in a State or Union territory and any other establishment outside that State; or an establishment in a State or Union territory and any other establishment being a business vertical registered with that State or Union territory, then such establishments shall be treated as establishments of distinct persons. Explanation 2. – A person carrying on a business through a branch or an agency or a representational office in any territory shall be treated as having an est

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

For kind attention of Honourable Prime Minister and Finance Minister. Meaning of services – there seems serious and fatal flaw in definition clause in GST laws – Goods and Services Tax – GST – By: – CA DEV KUMAR KOTHARI – Dated:- 2-5-2017 – Relevant laws: THE CENTRAL GOODS AND SERVICES TAX ACT, 2017. In short CGST THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017. In short IGST THE UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017. In short UTGST THE GOODS AND SERVICES TAX (COMPENSATION TO STATES) ACT, 2017. In short GST Compensation. Common definition or meaning of services : Definitions or meaning provided in the CGST are adopted in IGST and UTGST, unless specific definition is provided in them. We find that meaning of services is provided in CGST and not in IGST, UTGST and GST Compensation. Therefore meaning of services as per CGST is applicable in IGST, UTGST, and GST Compensation. We also find that few specific services have been defined in CGST, IGST and UTGST. Relevant provisions a

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

t defined in this Act but defined in the Central Goods and Services Tax Act, the Integrated Goods and Services Tax Act, the State Goods and Services Tax Act, and the Goods and Services Tax (Compensation to States) Act, shall have the same meaning as assigned to them in those Acts. Analysis of meaning of Services as per S.2 (102) of CGST: services means anything other than goods, money and securities but includes 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; Analysis: Although the definition clause starts with standard sentence unless the context otherwise requires , however in relation to services we find that: A meaning has been given by use of expression services means Service means anything- this connotes that it should be thing. A service is generally not a thing. Thing should be other than goods, money and secur

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

eneral or special order for removal of difficulties as provided in S.172, which is reproduced below: Removal of difficulties. 172. (1) If any difficulty arises in giving effect to any provisions of this Act, the Government may, on the recommendations of the Council, by a general or a special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act or the rules or regulations made thereunder, as may be necessary or expedient for the purpose of removing the said difficulty: Provided that no such order shall be made after the expiry of a period of three years from the date of commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be, after it is made, before each House of Parliament. Hope and expectation: Author hopes that he is correct and is not unaware or unconscious of any hidden aspect of meaning of services as provided in CGST Act and as discussed above. Author also hopes that Honourable P

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST bill tabled in U khand Assembly – Goods and Services Tax – GST – Dated:- 1-5-2017 – Dehradun, May 1 (PTI) The Goods and Services Tax (GST) bill was tabled in Uttarakhand Assembly today during a special two-day session of the House convened for the purpose of passing the proposed legislation. Introducing the bill in the Assembly, state Finance Minister Prakash Pant said its passage by the House was necessary in view of a uniform tax regime coming into force across the country from July 1. As

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – By: – Ashwarya Agarwal – Dated:- 29-4-2017 Last Replied Date:- 29-4-2017 – Q1. What will be the effective date of registration in GST? Ans. Where the application for registration has been submitted within thirty days from the date on which the person becomes liable to registration, the effective date of registration shall be date of his liability for registration. Where an application for registration has been submitted by the applicant after thirty days from the date of his becoming liable to registration, the effective date of registration shall be the date of grant of registration. In case of suo-moto registration, i.e. taking registration voluntarily while being within the threshold exemption limit for paying tax, the effective date of registration shall be the date of order of registration. Q2. Whether a person can apply for registration even if turnover is less than threshold exemption limit? Ans. Yes, it will be a case of Voluntary Registration. I

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

e CGST Bill, aggregate turnover includes the aggregate value of: all taxable and non-taxable supplies, exempt supplies, and exports of goods and/or service all inter-state supplies of a person having the same PAN. Excludesvalue of supplies on which tax is levied on reverse charge basis, and value of inward supplies. The above shall be computed on all India basis and excludes taxes charged under the CGST Act, SGST Act and the IGST Act. The value of goods after completion of job work is not includible in the turnover of the job-worker. It will be treated as supply of goods by the principal and will accordingly be includible in the turnover of the Principal. Q6. Is it necessary for the UN bodies to get registration under GST? Ans. Yes. U/s Sec 25(9) of the CGST Bill, All UN bodies Consulate or Embassy of foreign countries and any other class of persons so notified would be required to obtain a unique identification number (UIN) from the GST portal. The structure of the said ID would be un

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ed to a Casual Taxable Person and non-Resident Taxable person? Ans. A casual taxable person or a non-resident taxable person shall apply for registration at least five days prior to the commencement of business. As per Sec 27(1),the certificate of registration issued to a casual taxable person or a non-resident taxable person shall be valid for a period specified in the application for registration or for a period of ninety days from the effective date of registration,whichever is earlier. However, the proper officer, at the request of the said taxable person, may extend the validity of the aforesaid period of ninety days by a further period not exceeding ninety days. Q10. What if the person makes supply from territorial waters of India? Ans. Every person who makes a supply from the territorial waters of India shall obtain registration in the coastal State or Union territory where the nearest point of the appropriate base line is located. Q11. Can a person take multiple registration wi

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

tion is sought. If registration is to be extended beyond the initial period of ninety days, an advance additional amount of tax equivalent to the estimated tax liability is to be deposited for the period for which the extension beyond ninety days is being sought. Q13. Whether the Registration granted to any person is permanent? Ans. Yes, the registration Certificate once granted is permanent unless surrendered, cancelled, suspended or revoked. Q 14. Whether amendments to the Registration Certificate is permissible? Ans. Yes. In terms of Sec 28 of CGST Bill, the proper officer may, on the basis of such information furnished either by the registrant or as ascertained by him, approve or reject amendments in the registration particulars in the manner and within a period of 15 common working days from the date of receipt of application for amendment. Provided that the proper offices shall not reject the application for amendment without giving notice to show cause and opportunity of being h

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

officer) or from the date of receipt of application for cancellation (in case where the taxable person/legal heir applies for such cancellation) Q16. Whether cancellation of Registration under means cancellation under CGST Act also? Ans. Yes. The cancellation of registration under one Act (say SGST Act or UTGST Act) shall be deemed to be a cancellation of registration under the other Act i.e. CGST Act.(Section 29 (4)) Q17 Whether a Registration once cancelled, be revoked? Ans. Yes, as per section 30 of the CGST Bill a taxable person whose registration has been cancelled by the proper officer on his own motion, may apply to such officer for revocation of cancellation of the registration in the prescribed manner. Q18. Will ISD be required to be separately registered other than the existing taxpayer registration? Ans. Yes, the ISD registration is for one office of the taxpayer which will be different from the normal registration Q 19. Can a taxpayer have multiple ISDs? Ans. Yes. Different

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

a, other than a registered taxable person; and l. Such other person or class of persons as may be notified by the Central/ State Government on recommendation of the Council. Q. 21 Who are the persons Not Liable to get registered? Ans. Following persons are not liable to get registered as per section 23: Any person engaged exclusively in the business of supplying goods and/or services that are not liable to tax or are wholly exempt from tax under this Act; An agriculturist, for the purpose of agriculture. Q 22. What are the special cases in which a person is liable to register under GST? Ans As per section 22 of CGST Bill, special cases in Registration are as follows: Every person who,on the day immediately preceding the appointed day, is registered or holds a license under present law, shall be liable to be registered under GST with effect from the appointed day; Where a registered business is transferred, whether on account of succession or otherwise, to another person as a going conc

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ll be asked to submit all requisite documents and information required for registration in a prescribed period of time. Failure to do so will result in cancellation of the provisional GSTIN number. The service tax assesses having centralized registration will have to apply afresh in the respective states wherever they have their businesses. Q 24. What are forms for registration under GST? Ans. The various Forms as prescribed in relation to Registration are as follows: Sl. Form Description 1. REG-01 Application for Registration u/s 22The GST Bill 2017 2. REG-02 Acknowledgement 3. REG-03 Notice for Seeking Additional Information relating to Registration / Amendments / Cancellation 4. REG-04 Application for filing clarification Registration / Amendment / Cancellation / Revocation of Cancellation 5. REG-05 Order of Rejection of Application for Registration / Amendment / Cancellation / Revocation of Cancellation 6. REG-06 Registration Certificate issued u/s 25(11) of the The GST Bill 2017 7

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ellation of Registration 18. REG-17 Reply to the show cause notice 19. REG-18 Order for Cancellation of Registration 20. REG-19 Order for dropping of proceeding of cancellation of registration 21. REG-20 Application for Revocation of Cancelled Registration under The GST Bill 2017 22. REG-21 Order for Approval of Application for Revocation of Cancelled Registration 23. REG-22 Show cause notice for why application submitted for revocation should not be rejected 24. REG-23 Reply to show cause notice for why application submitted for revocation should not be rejected 25. REG-24 Application for Enrolment of Existing Taxpayer 26. REG-25 Provisional Registration Certificate to existing taxpayer 27. REG-26 Application for Cancellation of Registration for the Migrated Taxpayers not liable for registration under The GST Bill 2017 28. REG-27 Show Cause notice for cancellation of registration for the migrated tax payers 29. REG-28 Application for cancellation of tax payer in existing rule not liab

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 29-4-2017 Last Replied Date:- 29-4-2017 – GST law provides for Goods and Services Tax Compliance Rating which is a new concept in India. Presently, there is no system of compliance rating under any tax laws in India. GST compliance rating is a concept which will be experimented as a legal provision for the first time in our country. Accordingly, every taxable person shall be assigned a GST compliance rating score based on his record of compliance with the provisions of the GST Act. Every taxable person irrespective of its nature or size or turnover shall be assigned a GST compliance rating. As a governance issue, it is a fact that taxes and their compliances are increasingly being discussed at board level. Statutory Provisions Section 149 of the Central Goods and Services Tax Act, 2017 contains provision in respect of GST compliance rating as under: (1) Every registered person may be assigned a goods and services tax co

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ce rating is a new concept in GST. All the taxable persons will be assigned rating scores on the basis of his record of compliance of provisions of the GST law. The various compliance parameters on which the performance will be evaluated would be prescribed. The compliance rating scores would be updated on periodical basis and would be intimated to the taxable person and also the information of which would be put in public domain. Salient features of Compliance Rating Every taxable person shall be assigned a GST compliance rating score based on his record of compliance with the provisions of the GST Act irrespective of its nature or size or turnover. Compliance rating scores could be based on promptness of paying taxes, timely e-filing of returns, matching of transactions, transparent reconciliations, adherence to various time limits, cooperation in dealing with tax department etc. It is expected that GST compliance rating scores may be used for identifying compliant tax payers which m

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ive / monitoring purposes. The rating would be based on tax payer's record of compliance with the provisions of CGST, IGST and SGST. The details of parameters and methodology for rating would be as prescribed. The compliance rating score will be updated periodically and will be intimated as follows: to the taxable person will be placed in the public domain In terms of sub-section (3) of section 149 of the CGST Act, 2017, the GST compliance rating score shall be updated at periodic intervals and intimated to the taxable person and also placed in the public domain in the manner prescribed. The parameters and criteria as well as methodology shall be prescribed by way of regulations / guidelines. Since GST shall operate on electronic platform, GSTN may be entrusted with the responsibility of determining rating scores based on parameters, its periodic updating and publication of rating in public domain. However, regulations or guidelines stipulating criteria for compliance ratings are e

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

eputation. Large organizations and rated or listed companies including PSU s may prefer and choose to deal with good rated suppliers / vendors / enterprises. The GST compliance sores will primarily be based on compliances with law and rules. These could cover, inter alia, the following: Filing of appeals an monthly basis Matching of transactions, i.e., no mismatch of invoices Filing of regular and annual returns timely and correctly Timely payment of proper taxes Correct utilization of input tax credit and its disclosure Correct deduction of TDS / TCS, whereable applicable Findings in scrutiny of returns / audit findings Refund claims etc. These ratings and expected to be measured at periodic of tax payers and their dissemination on public platform. Impact of GST Ratings GST ratings would allow business enterprises to choose the most GST compliant or better rated vendor for their businesses. Rating would help identifying as to which vendor has got the better or acceptable track record

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Started By: – Ramaswamy S – Dated:- 28-4-2017 Last Replied Date:- 4-5-2017 – At present an EOU is allowed to invoice to another EOU in free foreign currency. No ED is charged. However, VAT is leviable if Intra State and CST (reimbursable) if Inter State. Under the GST regime, the invoice is to be uploaded onto the GSTN. IGST is leviable on Inter State supply of goods from one EOU to another and CGST+SGST if the supply is Intra State (from one EOU to another EOU).Query:

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – Dated:- 28-4-2017 – New Delhi, Apr 28 (PTI) Finance Minister Arun Jaitley today promised not to spring any surprises in fixing tax rates under the new GST regime, saying they will not be significantly different from current levels. He, however, said companies should pass on to consumers the benefit of reduction in taxes under GST which will eliminate the current compounding effect of different central and state levies. The GST Council, headed by Jaitley and comprising representatives of all the states, is scheduled to meet in Srinagar on May 18-19 to finalise tax rates on different goods and services after unifying at least 10 indirect taxes into the Goods and Services Tax (GST). Speaking at CII's Annual

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 28-4-2017 – This part of the series contains meanings of certain terms covered in Section 2 of the CGST Act, 2017. These are aggregate turnover, agriculturist, assessment, associated enterprise, audit and authorized representative. Aggregate Turnover [Section 2(6)] The aggregate turnover is used for the purpose of calculation of threshold limit of INR 20 lakhs / 10 lakhs for registration and also calculation of eligibility of composition levy under section 10 of the Act. 'Aggregate turnover' shall be total of the following amounts or sums in relation to a person carrying on business, i.e., aggregate of the following – Value of all taxable supplies of goods and services Value of exempt supplies of goods and services Value of all goods and services exported Value of inter-state supplies However, aforementioned value of aggregate turnover would exclude taxes, if any, charged under the CGST Act, IGST Act and SGST Ac

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

is not liable for registration under the Act. Following stipulations are relevant for understanding the meaning of agriculturist: Only an individual or Hindu undivided family (HUF) can be considered as an agriculturist. Cultivation of land personally is the pre-condition for being an agriculturist. Agriculturist shall not be considered as a taxable person. Ownership of the land is not a factor to be considered. It is not important whether the land is owned or leased one. It is also not a condition that the agriculturist should be involved in agriculture for full time. Cultivation of land through own labour, by labour of own family or servants employed on wages in cash or kind will be considered as own cultivation. A person will be considered as an 'agriculturist' only when a person cultivates land personally. To cultivate personally would imply carrying on agricultural operations on his own account by employing own labour, family's labour or hired labour under own supervisi

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

n procedure which involves observance of principles of natural justice. The person who is assessed is called assessee. (i.e., taxable person). Associated Enterprise [Section 2(12)] Associated enterprise, in relation to another enterprise, means an enterprise- which participates, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise; or in respect of which one or more persons who participate, directly or indirectly, or through one or more intermediaries, in its management or control or capital, are the same persons who participate, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise. As per section 92A of the Income Tax Act, 1961,sub-section (2), for the purposes of sub-section (1), two or more enterprises shall be deemed to be associated enterprises if, at any time during the previous year, one enterprise holds, directly or indirectly, shar

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ods or articles or business carried out by one enterprise is wholly dependent on the use of know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature, or any data, documentation, drawing or specification relating to any patent, invention, model, design, secret formula or process, of which the other enterprise is the owner or in respect of which the other enterprise has exclusive rights; or ninety per cent or more of the raw materials and consumables required for the manufacture or processing of goods or articles carried out by one enterprise, are supplied by the other enterprise, or by persons specified by the other enterprise, and the prices and other conditions relating to the supply are influenced by such other enterprise; or the goods or articles manufactured or processed by one enterprise, are sold to the other enterprise or to persons specified by the other enterprise, and the prices and other conditions relating

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

under GST law / any other law or rules Verification of correctness of – turnover declared taxes paid refund claimed, and input tax credit availed Assessment of compliances with provisions of GST law and rules. All the registered taxable persons having a turnover beyond the prescribed limit are required to get their accounts audited from a Chartered Accountant or a Cost Accountant and file the audit report and the reconciliation statement with the proper officer. There are also provisions for a 'Special audit' to be carried out by a Chartered Accountant or a Cost Accountant. Such audit can be allotted after prior approval of Commissioner in the circumstances where a view is made by an officer not below the rank of Deputy Commissioner/Assistant Commissioner that considering the complexity of operations and interest of revenue, the detailed audit is required to be done. Authorized Representative [Section 2(15)] Authorized representative is the representative of the assessee / tax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – Dated:- 27-4-2017 – Ranchi, Apr 27 (PTI) Jharkhand Assembly today passed the Jharkhand Goods and Services Taxes Bill, 2017 to pave the way for roll out of GST from July 1. A one-day special session of the assembly was convened to take up the bill. Urban Development Minister C P Singh placed the bill in the assembly which was passed by voice vote. Later, Singh told reporters that the bill was passed unanimously. He said it is a step towards one country, one tax . T

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Started By: – SURYAKANT MITHBAVKAR – Dated:- 26-4-2017 Last Replied Date:- 28-4-2017 – We are having two different manufacturing unit in same state. Since we have registered in Central Excise in different jurisdiction we have using different serial number for issuing sale invoice.After implementation of GST Act, can we continue to do so or we have to keep common invoice under one GST number. – Reply By Ramaswamy S – The Reply = You can continue with the current system.

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Started By: – Yogesh Panchal – Dated:- 26-4-2017 Last Replied Date:- 28-4-2017 – A registered taxable person, who was not liable to be registered under the earlier law or who was engaged in the manufacture of exempted goods under the earlier law but which are liable to tax under this Act, shall be entitled to take, in his electronic credit ledger, credit of eligible duties and taxes in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to the following conditions: such inputs and / or goods are used or intended to be used for making taxable supplies under this Act; the said taxable person was eligible for cenvat credit on receipt of suc

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ng inputs material & for the trading material also, revert service tax credit at turnover ratio prescribe in the central excise law. In above scenario please guide following points. Trading warehouse material on which we have not take the credit, we have not charged excise duty at the time of sales, not collect duty from our customer, but if duty paid stock laying in trading warehouse on 30th June-2017. As a closing stock. also after implementation of GST, we have liable to pay GST on above duty paid trading goods, which excise duty paid but do not take credit , in the above case tax paid two time, first at the time of purchase paid excise duty & after 1st July-2017 GST payable, what action we are do? , We have take trading warehous

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Started By: – Yogesh Panchal – Dated:- 26-4-2017 Last Replied Date:- 21-10-2017 – A registered taxable person shall be entitled to take, in his electronic credit ledger, credit of the amount of cenvat credit carried forward in a return, furnished under the earlier law by him, in respect of the period ending with the day immediately preceding the appointed day in such manner as may be prescribed:But Following credit amount not Appeared in the last return Pri-deposit Amou

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST to boost domestic manufacturing, won t up inflation: Adhia – Goods and Services Tax – GST – Dated:- 25-4-2017 – New Delhi, Apr 25 (PTI) The government today said GST will not lead to inflation and rather make domestic goods competitive via-a-vis imported items. Revenue Secretary Hasmukh Adhia dismissed fears that GST implementation will lead to a spurt in prices, saying that unlike in other countries, the transition to the new tax regime would be smooth in India. He said several countries witnessed inflation following GST rollout as they had single point taxation system. In the case of India, there are multiple points of taxation and hence the possibility of sudden spurt in inflation is remote. Presently, we are tapping VAT at each stag

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ilar GST rate will be applicable and hence, there will be no advantage for the imported goods. The government levies countervailing duty (CVD) and special additional duty (SAD) on imported goods to protect domestic manufacturers. The incidence of tax on imported goods will be equivalent to the tax paid by the local industry. This will strengthen domestic manufacturing and Make in India, Adhia said. Goods and services tax (GST), which is proposed to be rolled out from July 1, will unify at least 10 different central and state levies and make India a uniform market for seamless transfer of goods and services. Adhia said as many as 71 per cent of the existing taxpayers have already migrated to the GSTN portal and the CBEC has asked field offic

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ith regard to the provision in the Act on refund of IGST paid by international tourists, he said it will not be implemented with effect from July 1 GST rollout date. Asked whether VAT would be refunded at the airport to foreign tourists, Adhia said: We have kept that provision in the Act, but to implement it will take time. Immediately, it won't be available to foreign tourists, but after some time, we will see. We will have to develop a mechanism for it. We are not implementing this provision from July 1. The IGST Act provides that integrated tax paid by tourists leaving India on any supply of goods taken out of the country by him shall be refunded. However, the conditions and safeguards are yet to be prescribed. The IGST Act defines &

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Presentation for GST Conclave/Workshop – Goods and Services Tax – GST – Dated:- 25-4-2017 – Presentation for GST Conclave/Workshop – News – Press release

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – Dated:- 25-4-2017 – Goods and Services Tax (GST) 1. Benefits: GST is a win-win situation for the entire country. It brings benefits to all the stakeholders of industry, government and the consumer. It will lower the cost of goods and services, give a boost to the economy and make the products and services globally competitive. GST aims to make India a common market with common tax rates and procedures and remove the economic barriers thus paving the way for an integrated economy at the national level. By subsuming most of the Central and State taxes into a single tax and by allowing a set-off of prior-stage taxes for the transactions across the entire value chain, it would mitigate the ill effects of cascading, improve competitiveness and improve liquidity of the businesses. GST is a destination based tax. It follows a multi-stage collection mechanism. In this, tax is collected at every stage and the credit of tax paid at the previous stage is available

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

xporters with clean track record will be rewarded by getting immediate refund of 90% of their claims arising on account of exports, within seven days. GST is expected to bring buoyancy to the Government Revenue by widening the tax base and improving the taxpayer compliance. GST is likely improve India s ranking in the Ease of Doing Business Index and is estimated to increase the GDP growth by 1.5 to 2%. GST will bring more transparency to indirect tax laws. Since the whole supply chain will be taxed at every stage with credit of taxes paid at the previous stage being available for set off at the next stage of supply, the economics and tax value of supplies will be easily distinguishable. This will help the industry to take credit and the government to verify the correctness of taxes paid and the consumer to know the exact amount of taxes paid. The taxpayers would not be required to maintain records and show compliance with a myriad of indirect tax laws of the Central Government and the

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

base. The GST to be levied by the Centre on intra-State supply of goods or services would be called the Central tax (CGST) and that to be levied by the States including Union territories with legislature/Union Territories without legislature would be called the State tax (SGST)/ Union territory tax (UTGST) respectively. (ii) The GST would apply to all goods other than alcoholic liquor for human consumption and five petroleum products, viz. petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel. It would apply to all services barring a few to be specified. The 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. S

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ITC) benefits. Taxpayers making inter-State supplies or paying tax on reverse charge basis shall not be eligible for threshold exemption. (vi) Composition levy: Small taxpayers with an aggregate turnover in a financial year up to Rest. 50 lakhs shall be eligible for composition levy. Under the scheme, a taxpayer shall pay tax as a percentage of his turnover during the year without the benefit of ITC. The rate of tax for CGST and SGST/UTGST each shall not exceed – 2.5% in case of restaurants etc 1% of the turnover in a state/ UT in case of a manufacturer 0.5% of the turnover in state/UT in case of other suppliers. A taxpayer opting for composition levy shall not collect any tax from his customers nor shall he be entitled to claim any input tax credit. The composition scheme is optional. Taxpayers making inter-State supplies shall not be eligible for composition scheme. The government, may, on the recommendation of GST Council, increase the threshold for the scheme to up to rupees one cr

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

all use 4-digit code. Taxpayers whose turnover is below ₹ 1.5 crore are not required to mention HSN Code in their invoices. (x) Exports and supplies to SEZ shall be treated as zero-rated supplies. The exporter shall have an option to either pay output tax and claim its refund or export under bond without tax and claim refund of Input Tax Credit. (xi) Import of goods and services would be treated as inter-State supplies and would be subject to IGST in addition to the applicable customs duties. The IGST paid shall be available as ITC for further transactions. 3. GST Council The mechanism of GST Council would ensure harmonization on different aspects of GST between the Centre and the States as well as among States. It has been specifically provided that the GST Council, in its discharge of various functions, shall be guided by the need for a harmonized structure of GST and for the development of a harmonized national market for goods and services. The GST Council shall establish a m

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ayment of tax shall be made electronically through internet banking, or also through credit card and through the modes of Real Time Gross Settlement (RTGS) or National Electronic Funds Transfer (NEFT). Smaller taxpayers shall be allowed to pay tax over the bank counter. All challans for payment of tax shall be generated online on the Goods and Services Tax Network (GSTN). e) The taxpayer shall furnish the details of outward supplies electronically without any physical interface with the tax authorities. Inward supply details would be auto-drafted from the supply details filed by the corresponding suppliers. f) Taxpayers shall file, electronically, monthly returns of outward and inward supplies, ITC availed, tax payable, tax paid and other prescribed particulars. Composition taxpayers shall file, electronically, quarterly returns. Omission/incorrect particulars can be self-rectified before the last date of filing of return for the month of September of the following year or the actual d

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

actice of staggering the credit in more than one installment. Unutilized input tax credit can be carried forward. The facility of distribution of input tax credit for services amongst group companies has been provided for through the mechanism of Input Service Distributor (ISD). 6. Refund Time limit for claiming online refund has been increased from one year to two years. Refund shall be granted within 60 days from the date of receipt of complete application. Interest is payable if refund is not sanctioned within the stipulated period of 60 days. If the refund claim is less than ₹ 2 lakhs, there is no need for the claimant to furnish any documentary evidence to prove that he has not passed on the incidence of tax to any other person. Only a self-certification to this effect would suffice. Refund of input tax credit shall be allowed in case of exports or where the credit accumulation is on account of inverted duty structure (i.e. where the tax rate on output is higher than that on

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

e of supply, rate of tax, admissibility of input tax credit, liability to pay tax, liability to take registration and whether a particular transaction amounts to a supply under GST law. b) Advance ruling can be sought not only for new activities but also for existing activities. The facility of appeal, which is not there under the Central law, has been provided in the GST Law. c) The applicants or the Department, if aggrieved by the advance ruling, would henceforth get the opportunity to file an appeal before the Appellate Authority for revision of the ruling. Advance Ruling can be obtained more easily as there will be one Advance Ruling Authority (as also the Appellate Authority) in every State. 9. Other provisions of GST The provisions worth mentioning here are: (i) Valuation of goods shall be done on the basis of transaction value i.e. the invoice price, which is the current practice under the Central Excise and Customs Laws. Taxpayers are allowed to issue supplementary or revised i

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – By: – Ravi Kumar Somani – Dated:- 25-4-2017 Last Replied Date:- 25-4-2017 – Medium Small and Minor enterprises contributes approximately 37% of our Nations GDP. Any negative implication of GST on this segment can directly knock off the player from the competitive business market. This article tries to put forth various issues that this industry could face due upon passage GST. The article also try to provide the possible solution for the issues highlighted as explained below. 1) Low Basic Exemption Limit: Under Excise law, the SSI s enjoy the basic exemption limit up to ₹ 1.5 crore which itself has been continuing since long time even though inflation has led to increase in prices of various goods/ services over a period of time. Further, under GST, the basic exemption limit has been proposed to be reduced to a very low threshold limit of ₹ 20 lakhs. Further, in some cases of e-commerce, reverse charge, output inter-state supply activities th

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

cation of this could lead to erosion of this sector and also bring monopolistic market of large players instead of competitive market. Therefore, it is suggested that Government must come up with some notification providing the relief in this regard which is in the best interest of this sector and supports its growth objective. 2) High Compliance burden: It is seen that GST law demands high compliance. Key compliance requirements are as under: Three returns be filed in each month for every state. Further, returns must be filed for TDS, ISD (if applicable). Also, one annual return with reconciliation statement has to be filed for every state; Registration must be taken in every state and there is no concept of centralised registration; Accounting needs to be timely updated and the same needs to be maintained state-wise to reconcile the taxation with accounts at state level; GST computations, liability calculation, credit availment etc. has to be done on monthly basis. In a small and med

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

try and its contribution to the economy. 3) Taxation under reverse charge for un-registered purchases: In the GST bill, it is proposed that if any goods or services are supplied by a person who is unregistered and supplied to a registered person, then GST needs to be paid by the registered person under reverse charge as a recipient. Therefore, even if any small businesses who does not take registration and claim the basic exemption threshold then the person receiving goods or services from them need to pay GST under reverse charge. This provision shall have negative impact as businesses would not prefer to deal with unregistered persons and to take the additional burden of taxation under reverse charge. Therefore, this provision directly impacts the business of small sector negatively and virtually forces them to either register or to shut the business which was ideally not the principles guiding the existence of the GST taxation. 4) Taxation on stock Transfers and deemed supplies: Pre

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

or return basis. However, in GST regime, the maximum time limit for the return of goods sent on sale or return basis is 6 months and if the same is not approved within the said time limit then the invoice needs to be issued and the goods shall be deemed to have been supplied since time of supply for payment of tax would arise. In various small scale industries like ready-made garment industry, the norm is to send goods to Consignment Sales Agents (CSA) and customers on a sale or return basis. The norm in such industries is that the CSAs / customers return the goods after the season is over. However, casting time-limit on return of goods would have negative impact on such sectors. Therefore, it is suggested to remove this provision and continue with the present practice of paying GST only once actual supply takes place. 6) Tax on Advances Advances received against supply of goods and/or services are taxable in GST regime. Collection of GST on advances would be cumbersome and requires hi

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

T can be made only on receipt basis as prevalent in service tax for small individuals and partnership firms. This shall ease the compliance and cash flow burden. 7) Availability of Composition Levy Non-availability of composition scheme to those who are supplying services or making any supply of goods which are not leviable to tax under the Act or if any inter-state supply is made seems to be harsh on such person. Small services suppliers only shall be required to comply with the normal provisions of the law which could prove to be cumbersome for such suppliers. Further, small suppliers making few of the supplies not chargeable to tax while majority of supplies are taxable may find this provision an unnecessary burden on them. It is suggested that eligibility for composition scheme be based on the turnover during a particular financial year and be made available uniformly to all suppliers whether supplying goods or services or both. Alternatively, Sector specific composition schemes ma

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

edit of appropriate Government in order to enable the purchaser to avail the input tax credit on such supply made may cause undue hardship to the assesses. It is suggested that the pre-conditions relating to payment of tax to the credit of Government and mandatory filing of return be deleted / removed and the same must be reconsidered and liberalized to enable the small sector to avail input tax credit of tax paid by them. Alternatively, if the Government believes that certain taxable persons in the unorganized sector may not deposit the collected tax to Government the concept of reverse charge be made applicable to them instead of denying/ delaying the credit based on the non-compliance by other party to the contract. 9) Power to Arrest & Prosecution: A Commissioner of CGST or SGST can authorize an arrest of a person if has reason to believe that the person has committed any offence punishable under the GST law. The person can be arrested even if such a person has not been issued

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Started By: – Govind Gupta – Dated:- 24-4-2017 Last Replied Date:- 25-4-2017 – Dear SirsAs we are trader and currently not eligible for input tax credit of CVD paid on our imports and ED paid on local purchases, what is the process of computation of credit to be claimed under GST, also as we know, there are two options for your total inventory1. if you have duty paying document for the closing stock of inventory,a. you are eligible for full credit ( what will the value of credit, is it what we have actually paid or some other computed value)b. does this stock need to be less than 1 year oldc. do we need to transfer the credit to customersd. is there any time limit to clear such stock2. if we don t have duty paying

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =