Critical Aspects for GST Returns in 2019
By: – Akshay Hiregange
Goods and Services Tax – GST
Dated:- 4-2-2019<\/p>\n
Critical Aspects for GST Returns in 2019
\nIn light of the recent barrage of notifications, Act amendments, we have prepared a small article on few major changes that GST has undergone, and the impact it could have on the GST returns in the year 2019. We would be speaking on the following topics:
\n * RCM on Security Personnel services
\n * RCM on purchases from unregistered persons
\n * Amendment in manner of utilisation of ITC
\n * Amendment in definition of Supply
\n * Amendment in ITC Reversal
\n * Other important Miscellaneous amendments
\nReverse Charge Mechanism applicability on security services:
\nIn terms of Notification no.29\/2018- Central Tax (Rate) has been issued to include the security personnel services under the ambit of Reverse Charge Mechanism. The notification is effective from the 01\/01\/2019 and to be considered for the GSTR-3B of January 2019. This <\/p>\n
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For full text:-Visit the Source <\/a><\/p>\n
\nSupplier
\nRecipient
\nReverse\/Forward Charge
\nBody corporate (Unregd.)
\nRegistered person
\nRCM
\nBody corporate (Regd.)
\nRegistered person
\nFCM
\nOther than body corp. (Regd.)
\nRegistered person
\nRCM
\nOther than body corp. (Regd.)
\nRegd. For TDS
\nFCM
\nOther than body corp. (Regd.)
\nComposite Dealer
\nFCM
\nRegistered person
\nUnregistered
\nFCM
\nUnregistered
\nUnregistered
\nNo GST
\nReverse Mechanism not applicable on purchases from unregistered persons Section 9(4):
\n * Notification no.01\/2019 Central Tax (Rate) rescinded the notification no.08\/2017 Central Tax (Rate) which deferred the present RCM u\/s 9(4) of CGST Act till 30th September 2019 CT(R)
\n * Therefore, the deferment of RCM on URD procurements till 30th September 2019 is not applicable.
\n * According to the latest amendment of CGST Act applicable from 1st February 2019, Section 9(4) of CGST Act which states that GST liable under RCM for the procurements from unregistered persons would b<\/p>\n
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\nOutput
\n 1,00,000
\n 1,00,000
\n 1,00,000
\nTRAN C\/f
\n –
\n -50,000
\n –
\nInput
\n -2,00,000
\n -80,000
\n -80,000
\nAccording to Section 49(5) – Applicable up to 31st January 2019:
\nPayment of Tax
\nIGST
\nCGST
\nSGST
\nIGST
\n1,00,000
\nCGST
\n1,00,000
\nSGST
\n20,000
\n80,000
\nITC Balance
\n-80,000
\n-30,000
\nAccording to Section 49A & 49(5) – effective from 01\/02\/2019
\nPayment of Tax
\nIGST
\nCGST
\nSGST
\nIGST
\n 1,00,000
\nCGST
\n 1,00,000
\nSGST
\n 80,000
\nCash
\n 20,000
\nITC Balance
\n –
\n -1,30,000
\nThe above amendment seems to increase accumulation in CGST and cash pay-out in SGST. This may also be the requirement of the government wherein; the cash pay-out is directed towards the states and the refund if any could be claimed from Centre in a easier and faster process.
\nThe above amendment will be effective from the 01\/02\/2019 and to be considered for the GSTR-3B of February 2019 month.
\nAmendment in Definition of Supply
\nThe definition of supply has been changed with retrospective with effect fro<\/p>\n
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\n shall be treated neither as a supply of goods nor a supply of services
\n (3) Subject to the provisions of sub-sections (1), (1A) and (2), the Government may, on the recommendations of the Council, specify, by notification, the transactions that are to be treated as-
\n * supply of goods and not as a supply of services; or
\n * supply of services and not as a supply of goods.
\nOur comment:
\nSchedule II of CGST Act provides the transactions which are fall under the ambit of either supply of goods or supply of service, merely transactions covered under schedule II does not make it has a supply. First, it has to satisfy 'supply' within clause (a) to (c) of section 7(1). After satisfying the above conditions, reference would be made to Schedule II to determine as to whether it 'supply of goods' or 'supply of services'.
\nAmendment in input tax credit reversal:
\nAccording to the amendment (w.e.f 01\/<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n