BroadWing Tax Info

24/06/2017

Gst.Broadwingtax.info

05/01/2017

GST Draft Laws- Important Sections to be analysed and discussed:-

We are essentially also required to examine/ evaluate, the other important features/ applications and statutory scopes/analysis of the provisions of the CGST/ SGST and IGST Laws; in field of:-
-levy of SGST &CGST (Section 7 & 8);
-levy of IGST (Section 4 of IGST Act);
-Taxable Person (Section 9); for determining the Taxable Person(s);
-Time of supply of Goods (Section 12);
-Time of supply of Services (Section 13);
-Place of Supply of Goods for Inter-State Supplies of Goods (Section 5 of IGST Act);
-Place of Supply of Services for Inter-State Supplies of Services (Section 6 of IGST Act);
-Value of Taxable Supply (Section 15);
-GST Valuation (Determination of the Value of Supply of Goods and Services) Rules 2016;
-Furnishing the details of Outward Supplies (Section 25);
-Furnishing the details of Inward Supplies (Section 26);
-Payment of Tax, Interest and penalties (Section 35);
-Returns (Section 27);
-Matching, reversal and reclaim of Input Tax Credit (Section 29);
-Matching, reversal and reclaim of reduction in output tax liability (Section 29A);
-Annual Return (Section 30);
-Final Return (Section 31);
-Manner of taking input Tax credit (Section 16, 35 and Section 7(5) of IGST Act);
-Availing ITC in respect of Inputs sent for Job work (Section 16A);
-manner of distribution of credit by Input Service Distributor (Section 17);
-Tax Invoice (Section 23); Credit and debit Notes (Section 24;);

http://www.broadwingtax.info/gst/gstnextsteps/gst-faqs/GST-Sections-Analysed

15/12/2016

18/10/2016

The IMC had organized an interactive meeting with Mr. Upendra Gupta, Commissioner, GST Policy Wing, Ministry of Finance on ‘GST’ which was held in Mumbai on 15th October 2016. Following are some clarifications given by him on various issues raised by the industry representatives present in the seminar:

Go-live Date
1. Go live date of 01st April 2017 was reaffirmed by him stating that as per One Hundred and First Constitutional Amendment Bill, 2016, GST needs to come before 15th September 2017.
2. Second draft of GST law will not come in public domain before placing the final law in Parliament.

Registration
3. Government will not provide centralized registration mechanism in GST. Hence, Insurance company will have to take registration for every branch from where it provides services.
4. Telecom company will have to show every tower installed for providing telecommunication services as their ‘place of business’.
5. Suggestions invited for definition of business verticals in case of separate registration within state.

Supply
6. Supplies to SEZ will be on “pay and claim refund’ basis. Unjust enrichment will not be applicable on such refunds.
7. Definition of ‘Location of supplier of goods’ will come in final law.
8. Sales return issues in case of a B2C supply or a B2B supply (where goods are in transit) will get addressed in final law
9. In case of mobile recharges through wallets like Oxygen, these channel partners do not have the consumer address with them. Government is considering to collect tax in such situations at the first level of the distribution chain.

ITC
10. ITC pool will be linked to registration and not legal entity. Hence, IGST, SGST and CGST of one state cannot be utilized in another state.
11. No corresponding provision to Rule 4(7) in CCR will be there in final law.
12. In case of a mismatch, where supplier uploads tax of Rs.10 and recipient rectifies it as Rs.12, the whole of Rs.12 will be denied to the recipient instead of only the balance Rs.2.
13. Time for auto reversal (2 months as provided in GST Return Rules when tax is not paid to the credit of government by the supplier) may be considered for extension upon representation from the industry.
14. ISD for goods will not be provided. Transfer credit by treating it as a supply of service.

HSN/SAC Classification
15. HSN classification is required as IGST will be levied on imports (It was requested to him to remove HSN classification for traders as it is not a statutory requirement in current law)
16. HSN classification will not be a factor when invoice details of supplier will be matched with that of recipient.
17. Services for which SAC code is not there should be filed in ‘Others” category (E.g. Leasing)

Valuation
18. Valuation issues raised by industry will be addressed in final law. Free supply of goods/services will also be addressed.
19. Bad debt adjustment will not be provided.
20. No comparison will be made between input price and output price of goods/services (FIAT judgment)

Exemptions
21. They are contemplating adopting the VAT exemption list when deciding exemption list in GST and not Excise exemption list. The same is yet to be discussed with the GST Council.
22. Area-based exemption will not continue in present form. It will on “pay and reimburse’ basis. States will have to make a budgetary allocation for the same.
23. Refunds to be connected with one Bank Account and will not involve cheques.
24. Compliance rating will be connected with refunds. Taxable persons will good compliance rating will benefit.

Other
25. FIRC will be linked to the GSTN and it will also include invoice number in the certificate.
26. It will be difficult to give credit of excise paid on stock in hand of traders due to lack of duty-paid documents. If it is decided to be credit for the same, quantum and basis of credit to be given is a question to be addressed.
27. Two views in GST council whether goods in Article 366(29A) of Constitution can be classified as services.
28. Uniform rates will be there across India for goods/services.

14/10/2016

04/10/2016

Jharkhand VAT Act: Notification no. S.O.90—Dt 29th September, 2016 Amendment in Section 8(5) of the Jharkhand Value Added Tax Act, 2005 (Jharkhand Act 05, 2006), in clauses (c) & (d):
AMENDMENTS
(c) is engaged in any other business other than clauses (a) & (b)Rs. 10 lakhs.
(d) involved in the ex*****on of Works Contract and Leasing Rs. 1 lakh.

02/10/2016

GST- FAQs- 10. Input Tax Credit

Q 1. What is input tax?
Q 2. What is the implication of different definition of “input tax” in three acts viz CGST, SGST and IGST Acts?
Q 3. Can GST paid on reverse charge be considered as input tax?
Q 4. Does input tax includes tax (CGST/ IGST/SGST) paid on input goods, input services and/ or capital goods?
Q 5. What is the ITC entitlement of a person who has applied for registration under the Act within thirty days from the date on which he becomes liable to registration and has been granted such registration? (Section 16(2))
Q 6. A person becomes liable to pay tax on 1st August, 2017 and has obtained registration on 15th August, 2017. Such person is eligible for input tax credit on inputs held in stock as on …….
Q 7. What is the eligibility of input tax credit on inputs in stock for a person who obtains voluntary registration?
Q 8. Where goods and/or services received by a taxable person are used for effecting both taxable and non-taxable supplies, whether the input tax credit is available to the registered taxable person?
Q 9. Where goods and/or services received by a taxable person are used for the purpose of business and non-business supplies, whether the input tax credit is available to the registered taxable person?
Q 10. What would be input tax eligibility in cases where there is a change in the constitution of a registered taxable person?
Q 11. What would be input tax eligibility in case where the goods and/or services supplied by a registered taxable person become absolutely exempt?
Q 12. What would be input tax eligibility in cases where taxable person paying tax under section 7 opts to pay tax under Compounding Scheme under Section 8?
Q 13. A dealer paying tax on compounding basis crosses the compounding threshold and becomes a regular taxable person. Can he avail ITC and if so from what date?
Q 14. Mr. B, a registered taxable person was paying tax under composition rate up to 30th July, 2017. However, w.e.f 31st July, 2017. Mr. B becomes liable to pay tax under regular scheme. Is he eligible for ITC?
Q 15. Mr. A applies for voluntary registration on 5th June, 2017 and obtained registration on 22nd June, 2017. Mr. A is eligible for input tax credit on inputs in stock as on …………..
Q 16. When shall a taxable person be not entitled to take input tax credit under sub-section (2), (2A) or sub-section (3) of Section 16 in respect of any supply of goods and / or services to him?
Q 17. Whether the principal is eligible to avail input tax credit of inputs sent to job worker for job work?
Q 18. What is the time period within which the inputs sent for job work has to be received back by the principal?
Q 19. Whether principal has to reverse the input tax credit on inputs which have not been received back from the job worker within 180 days?
Q 20. Which of the following is included for computation of taxable supplies for the purpose of availing credit:
(a) Zero-rated supplies;
(b) Exempt supplies;
Q 21. What is the time period within which the capital goods sent for job work has to be received back by the principal?
Q 22. What is the liability of the principal if the capital goods sent to job worker have not been received within 2 years from the date of being sent?
Q 23. A Taxable person is in the business of information technology. He buys a motor vehicle for use of his Executive Directors. Can he avail the ITC in respect of GST paid on purchase of such motor vehicle?
Q 24. Where the registered taxable person has claimed depreciation on the tax component of the cost of capital goods under the provisions of the Income Tax Act, 1961, will ITC be allowed in such cases?
Q 25. What are the conditions necessary for obtaining ITC?
Q 26. Where the goods against an invoice are received in lots or instalments, how will a registered taxable person be entitled to ITC?
Q 27. Who will get the ITC where goods have been delivered to a person other than taxable person (‘bill to’- ‘ship to’ scenarios)?
Q 28. What is the time limit for taking ITC?
Q 29. Is there any negative list on which ITC is not permitted?
Q 30. Section 29 of the MGL provides that the ITC would be confirmed only if the inward details filed by the recipient are matched with the outward details furnished by the supplier in his valid return. What happens if there is a mismatch?
Q 31. What will be the tax impact when capital goods on which ITC has been taken are supplied by taxable person?
Q 32. What is the recovery mechanism for wrongly availed credit?

http://www.broadwingtax.info/gst/gstnextsteps/gst-faqs/inputtaxcredit

Q 1. What is input tax?
Ans. “Input tax” has been defined in section 2 (57) of the MGL and section 2 (1) (d) of the IGST Act. Input tax in relation to a taxable person, means the {IGST and CGST} in respect of CGST Act and {IGST and SGST} in .....

01/10/2016

GST FAQs- 8. Electronic Commerce

Q 1. What is e-commerce?
Q 2. Who is an e-commerce operator?
Q 3. Is it mandatory for e-commerce operator to obtain registration?
Q 4. Whether a supplier of goods/services supplying through e-commerce operator would be entitled to threshold exemption?
Q 5. Who is an aggregator?
Q 6. Is an aggregator required to be registered under GST?
Q 7. What is Tax Collection at Source (TCS)?
Q 8. At what time/intervals should the e-commerce operator make such deductions?
Q 9. What is the time within which such TCS is to be remitted by the e-commerce operator to Government account? Is the operator required to file any returns for this purpose?
Q 10. How can actual suppliers claim credit of this TCS?
Q 11. Is the e-commerce operator required to furnish information to the Government?
Q 12. Is the e-commerce operator required to submit any statement? What are the details that are required to be submitted in the statement?
Q 13. What is the concept of matching in e-commerce provisions and how it is going to work?
Q 14. What will happen if the details remain mismatched?

http://www.broadwingtax.info/gst/gstnextsteps/gst-faqs/electroniccommerce

Q 1. What is e-commerce?
Ans. Section 43B(d) of the MGL defines an Electronic Commerce to mean the supply or receipt of goods and/ or services, or transmitting of funds or data, over an electronic network, primarily the internet, by using any ....

01/10/2016

GST FAQs- 9. Job Work

Q 1. What is job-work?
Q 2. Whether goods sent by a taxable person to a job-worker will be treated as supply and liable to GST? Why?
Q 3. Can a registered taxable person send goods without payment of tax to his job-worker?
Q 4. Is a job-worker required to take registration?
Q 5. Whether the goods of principal directly supplied from the job-worker’s premises will be included in the aggregate turnover of the jobworker?
Q 6. Can the principal supply the goods directly from the premises of the job-worker without bringing it back to his own premises?
Q 7. Under what circumstances can the principal directly supply goods from the premises of job-worker?
Q 8. What are the provisions concerning taking of ITC in respect of inputs/capital goods sent to a job-worker?
Q 9. Are the provisions of job-work applicable to all category of goods?

http://www.broadwingtax.info/gst/gstnextsteps/gst-faqs/jobwork

Q 1. What is job-work?
Ans. Section 2(62) of the MGL provides that “job-work” means undertaking any treatment or process by a person on goods belonging to another registered taxable person and the expression “job-worker” shall be construed....

30/09/2016

Ministry of Finance 30-September, 2016 14:47 IST

FM: Government is working on a target date of 1st April, 2017 for the roll out of the Goods and Service Tax (GST) in the country.

http://www.pib.nic.in/newsite/erelease.aspx?relid=151291

The Union Finance Minister Shri Arun Jaitley said that the Government is working on a target date of 1st April, 2017 for the roll out of the Goods and Services Tax (GST) in the country. He said that till 16th September, 2017, that is one year after the provisions of the Constitution (101st Amendment) Act, 2016 being brought into force, the Constitution empowers the Central Government to levy excise duty on manufacturing; and service tax on the supply of services. The Finance Minister said that similarly the Constitution Amendment Act empowers the State Governments to levy sales tax or Value Added Tax (VAT) on the sale of goods till that time i.e. 16th September, 2016. The Finance Minister Shri Jaitley said that so far the Government is following the road map for implementation of GST as per the schedule. The Finance Minister Shri Jaitley was making his Opening Remarks at the Fourth Meeting of the Parliamentary Consultative Committee attached to the Ministry of Finance held here today. The subject of today’s Meeting was the Goods and Services Tax (GST)

The Finance Minister Shri Jaitley further said that the First Meeting of the GST Council was held in a very cordial and constructive environment earlier this month and today, he will hold the Second Meeting of the GST Council. In the GST regime, the GST Council has been created under Article 279A of the Constitution. The GST Council is a joint forum of the Centre and the States. The Council will take decisions on important issues like tax rates, exemption list and threshold limits etc.

Thereafter, the Members of Consultative Committee who participated in today’s Meeting sought various clarifications with regard to GST Law and gave suggestions for its better implementation. Some of the major suggestions include need for absolute clarity and transparency with regard to where taxes will be collected, assessed and where the appeal will be filed in case of GST regime. The members said that it will be challenging task to tackle complex situation arising-out of implementation of GST law in a federal system. Some of the members suggested there is a need for launching a large scale Awareness Campaign especially for the small traders as most of them are still unaware about the complex procedures and processes under GST regime including for registration and filing of returns etc. Some of the members suggested that availability of IT network in all parts of the country, especially in small towns and rural areas, must be ensured as GST system will work only online. Some of the members appreciated the initiative of the Government in getting the GST law passed by both the Houses of Parliament as well as its commitment to implement it in a time bound manner. The members hoped that this law will bring relief to the common man by exempting certain essential items from GST and moderate rate of taxation on other items which in turn will bring down the prices of common man consumption items as well as cost of living at large.

Along with the Union Finance Minister, Shri Arun Jaitley, Shri Santosh Kumar Gangwar, Minister of State for Finance, the Members of the Consultative Committee who participated in the today’s Meeting include Shri Baijayanta Jai Panda, Shri Dilip Kumar Mansukhlal Gandhi, Shri Kailkesh Narayan Singh Deo, Shri Prabhatsinh Chauhan, Shri Ram Charitra Nishad, Shri Subhash Chandra Baheria and Shri Suresh Chanabassappa Angadi (all members of Lok Sabha); Shri Anil Desai, Shri Digvijaya Singh, Shri Rajkumar Doot and Shri Satish Chandra Misra (all members of Rajya Sabha) .

Among the officers who attended the Consultative Committee Meeting include Shri Ashok Lavasa, Finance Secretary, Shri Shaktikanta Das, Secretary, DEA, Dr. Hasmukh Adhia, Revenue Secretary, Ms. Anjuly Chib Dugal, Secretary, Financial Services, Shri Neeraj Kumar Gupta, Secretary, DIPAM, Dr. Arvind Subramanian, Chief Economic Adviser (CEA), Chairman, CBEC Shri Najib Shah and other senior officers of the Ministry of Finance.

29/09/2016

GST FAQs- 7. GST Payment of Tax

Q 1. What are the Payments to be made in GST regime?
Q 2. Who is liable to pay GST?
Q 3. When is GST payment to be done by the taxable person?
Q 4. What are the main features of GST payment process?
Q 5. How can payment be done?
Q 6. When is payment of taxes to be made by the Supplier?
Q 7. Whether time limit for payment of tax can be extended or paid in monthly installments?
Q 8. What happens if the taxable person files the return but does not make payment of tax?
Q 9. Which date is considered as date of deposit of the tax dues- Date of presentation of cheque or Date of payment or Date of credit of amount in the account of government account?
Q 10. What are E-Ledgers?
Q 11. What is a tax liability register?
Q 12. What is a Cash Ledger?
Q 13. What is an ITC Ledger?
Q 14. What is the linkage between GSTN and the authorized Banks?
Q 15. Can a taxpayer generate challan in multiple sittings?
Q 16. Can a challan generated online be modified?
Q 17. Is there a validity period of challan?
Q 18. What is a CPIN?
Q 19. What is a CIN and what is its relevance?
Q 20. What is the sequence of payment of tax where that taxpayer has liabilities for previous months also?
Q 21. What is an E-FPB?
Q 22. What is TDS?
Q 23. How will the Supplier account for this TDS while filing his return?
Q 24. How will the TDS Deductor account for such TDS?
Q 25. What is Tax Collected at Source (TCS)?
Q 26. Is the pre-registration of credit card necessary in the GSTN portal for the GST payment?

http://www.broadwingtax.info/gst/gstnextsteps/gst-faqs/gstpaymentoftax

Q 1. What are the Payments to be made in GST regime?
Ans. In the GST regime, for any intra-state supply, taxes to be paid are the Central GST (CGST, going into the account of the Central Government) and the State GST (SGST, going into the .....

29/09/2016

GST FAQs- 6. Valuation in GST

Q 1. What is the value of taxable supply to be adopted for the levy of GST?
Q 2. What is transaction value?
Q 3. Are there separate valuation provisions for CGST, SGST and IGST and Goods and Services?
Q 4. Is contract price not sufficient to determine valuation of supply?
Q 5. Is reference to Valuation Rules required in all cases?
Q 6. What is to be done if there are certain factors affecting price though the transaction is not covered by section 15(4)?
Q 7. Can the transaction value declared under section 15(1) be accepted?
Q 8. Whether post-supply discounts or incentives are to be included in the transaction value?
Q 9. Whether pre-supply discounts allowed before or at the time of supply are includible in the transaction value?
Q 10. When are Valuation Rules applicable?
Q 11. What are the reasons for doubting transaction value declared?
Q 12. What are the methods provided for determining the value, in terms of draft GST Valuation Rules?
Q 13. What are the inclusions specified in Section 15(2) which could be added to Transaction Value?

http://www.broadwingtax.info/gst/gstnextsteps/gst-faqs/valuationingst

Q 1. What is the value of taxable supply to be adopted for the levy of GST?
Ans. The value of taxable supply of goods and services shall ordinarily be ‘the transaction value’ which is the actually the price paid or payable, when the parties ....