NITIN Sardana and Associates

10/11/2017

The GST Council, in its 23rd meeting held at Guwahati on 10th November 2017, has recommended the followingfacilitative measuresfortaxpayers:
Return Filing
a) The return filing process is to be further simplified in the following manner:
i. All taxpayers would file return in FORM GSTR-3B along with payment of tax by 20th of the succeeding month till March, 2018.
ii. For filing of details in FORM GSTR-1 till March 2018, taxpayers would be divided into two categories. Details of these two categories along with the last date of filing GSTR 1 are as follows:
(a) Taxpayers with annual aggregate turnover uptoRs. 1.5 croreneed to file GSTR-1 on quarterly basis as per following frequency:
Period
Dates
Jul- Sep
31st Dec 2017
Oct- Dec
15th Feb 2018
Jan- Mar
30th April 2018
(b) Taxpayers with annual aggregate turnover more thanRs. 1.5 croreneed to file GSTR-1 on monthly basis as per following frequency:
Period
Dates
Jul- Oct
31st Dec 2017
Nov
10th Jan 2018
Dec
10th Feb 2018
Jan
10th Mar 2018
Feb
10th Apr 2018
Mar
10th May 2018
iii. The time period for filing GSTR-2 and GSTR-3 for the months of July, 2017 to March 2018 would be worked out by a Committee of Officers. However, filing of GSTR-1 will continue for the entireperiod without requiring filing of GSTR-2 & GSTR-3 for the previous month / period.
b) A large number of taxpayers were unable to file their return in FORM GSTR-3B within due date for the months of July, August and September, 2017.Late fee was waived in all such cases. It has been decided that where such late fee was paid, it will be re-credited to their Electronic Cash Ledger under “Tax” head instead of “Fee” head so as to enable them to use that amount for discharge of their future tax liabilities. The software changes for this would be made and thereafter this decision will be implemented.
c) For subsequent months, i.e. October 2017 onwards, the amount of late fee payable by a taxpayerwhose tax liability for that month was ‘NIL’will be Rs. 20/- per day (Rs. 10/- per day eachunder CGST & SGST Acts) instead of Rs. 200/- per day (Rs. 100/- per day eachunder CGST & SGST Acts).
Manual Filing
d) A facility for manual filing of application for advance ruling is being introduced for the time being.
Further benefits for service providers
e) Exports of services to Nepal and Bhutan have already been exempted from GST. It has now been decided that such exporters will also be eligible for claiming Input Tax Creditin respect of goods or servicesused for effecting such exempt supply of servicesto Nepal and Bhutan.
f) In an earlier meeting of the GST Council, it was decided to exempt those service providers whose annual aggregate turnover is less than Rs. 20 lakhs (Rs. 10 lakhs in special category states except J & K) from obtaining registration even if they are making inter-State taxable supplies of services. As a further measure towards taxpayer facilitation, it has been decided to exempt such suppliers providing services through an e-commerce platform from obtaining compulsory registration provided their aggregate turnover does not exceed twenty lakh rupees. As a result, all service providers, whether supplying intra-State, inter-State or through e-commerce operator, will be exempt from obtaining GST registration, provided their aggregate turnover does not exceed Rs. 20 lakhs (Rs. 10 lakhs in special category States except J & K).
Extension of dates
g) Taking cognizance of the late availability or unavailability of some forms on the common portal, it has been decided that the due dates for furnishing the following forms shall be extended as under:
S. No.
FORM and Details
Original due date
Revised due date
1
GST ITC-04 for the quarter July-September, 2017
25.10.2017
31.12.2017
2
GSTR-4 for the quarter July-September, 2017
18.10.2017
24.12.2017
3
GSTR-5 for July, 2017
20.08.2017 or 7 days from the last date of registration whichever is earlier
11.12.2017
4
GSTR-5A for July, 2017
20.08.2017
15.12.2017
5
GSTR-6 for July, 2017
13.08.2017
31.12.2017
6
TRAN-1
30.09.2017
31.12.2017 (One-time option of revision also to be given till this date)
Revised due dates for subsequent tax periods will be announced in due course.
Benefits for Diplomatic Missions/UN organizations
h) In order to lessen the compliance burden on Foreign Diplomatic Missions / UN Organizations, a centralized UIN will be issued to every Foreign Diplomatic Mission / UN Organization by the Central Government and all compliance for such agencies will be done by the Central Government in coordination with the Ministry of External Affairs.
2. Relevant notifications for all of the above decisions will be issued shorty, so as to be effective from 15.11.2017.

06/10/2017

Turnover for composite dealer exceeded upto 1cr from 75lac

06/10/2017

Relaxation for small dealer whose turnover is under 1.5cr,can file return quarterly .

31/07/2017

Last date for filling income tax return extended up to 5th August .

05/07/2017

No gst on reverse charge mechanism up to rs 5000 per day ..if it is rs 5100 the tax will be levied on 5100 not on rs 100.

24/06/2017

GOODS AND SERVICES TAX (GST)


It replaces
1. VAT (State as well as Central)
2. Excise Duty
3. Octroi / Entry Tax / LBT

However, following taxes will continue
1. Customs Duty
2. Professional Tax
3. Stamp Duty
4. Motor Vehicle Tax
5. Electricity Duty
6. VAT on Petroleum Products

GST Council is the apex body created by Parliament for governance of this Act. It includes Finance Secretaries of Central as well as various State Governments

GST Rates - 5%, 12%, 18% & 28%
GST Exempt goods / services - 0%

Old VAT / Excise TIN will go and new PAN based Registration Number for GST is essential. Structure of this number is as under:
27AAAAA0000Azzi
Out of which first two digits are state code (in which Registration is taken) - '27' is for Maharashtra
Next 10 digits (AAAAA0000A) are PAN number of the assessee
and last 3 digits are serial number

Incidence of GST is on following :
1. Supply of Goods / Services
2. Agreed to Supply Goods / Services for Consideration (either in cash or kind)
3. 'Destination based' Tax is charged (If source & destination are in same state, it is Transaction within state, if Source & Destination are in different states, then it is Interstate Transaction)
4. Branch Transfer / Stock Transfer will attract GST

GST Registration is MANDATORY if Annual Turnover is Rs.20 Lacs or above.

Three types of GST are there :
1. Central Goods & Service Tax (CGST)
2. State Goods & Service Tax (SGST)
3. Integrated Goods & Service Tax (IGST)

Rates under GST
1.Rates of CGST & SGST shall be equal and will be 50% of the rates stipulated for thos specific Goods or specific Services. e.g. if the goods under transaction attract 18%, then CGST for them is 9% and SGST for them is 9%.

2.In case of Local Invoice or Within State Invoice, CGST and SGST both need to be charged SEPARATELY and to be mentioned in the Return accordingly.

3.Rates of IGST are equal to sum of rate under CGST and rate under SGST. Thus in above example, rate under IGST is 18% (9 + 9).

4.Tax Credit (or set-off, as was said in earlier days), shall be available for all these three taxes viz. CGST, SGST & IGST.

5.Earlier, in spite of 'C' or 'H' or 'F' forms, 2% Tax was a cost to the assessee. now since these forms are done away with, this 2% cost is avoided, since full set-off or ITC of all Interstate Transactions is allowed now.

6.There will be GST chargeable on FREE Items such as Medical Samples, Buy 1 get 1 Free etc. Valuation of such Free Items will have to be made, at par with sale of these items. Thus if your are giving 1 free for purchase of 10, You will have to Invoice for 11, levy GST and then you may give credit for the basic value of 1 being Free Item. Thus GST needs to be paid on all items, being delivered to the customer.

7.Invoice is allowed to be cancelled ONLY by way of issuing Credit Note and that too within a period of 6 months from the date of such invoice.

Composite Scheme
1.It is available for all assessees having Turnover < Rs.75 lacs
2.Under this scheme, 2.5% tax is applicable for Manufacturing Companies and 1% tax is applicable for all others.
3.No Set-off or Tax Credit shall be available under this scheme.
4.This is optional
5.Assessee has to apply for this and then GST Official's permission is required to opt for this.
6.If this scheme is availed, GST cannot be charged in the Invoices raised by the Assessee.
7. If this is availed in one year and for next year you intend to do away with this, you can apply to GST officials and take permission for the same i.e. either to Opt-in or Opt-out of the scheme.

Immovable Property is NOT Taxable under GST.
Thus, if the flat is booked before Completion Certificate, it is TAXABLE under GST,
whereas, if the flat is purchased after Completion Certificate (Ready-possession flat), it is NOT Taxable under GST

GST is applicable on Advance from Customer, as and when it is received from the customer, before raising invoice for the same. It needs to be declared in the Output GST Return (GSTR-1)

URD Purchases (Purchases from Unregistered Dealers / Suppliers)
If the Assessee has purchases from Unregistered Dealers, Assessee has to ACTUALLY pay GST on the same Reverse Charges). Assessee can take set-off (credit) of the same in next month.

No Revised Return is allowed under GST

Input Tax Credit (ITC) (similar to set-off under old system)
1.Assessee has to be in possession of Tax Invoice, or Debit Note or Credit Note.
2.Payment has to be made to the Supplier within 180 days. If the payment is not made to the supplier within this period the ITC has to be reversed by the Assessee. It can later be availed, as and when actual payment of this is made to the Supplier.
3. ITC for Reverse charges (GST paid on URD purchase or other specific services), can be availed in the next month, of the month of their actual payment.

GST Rating
1.There will be GST Rating (just like CIBIL Credit Ratings) in respect of Assessee, in consideration of timely filing of Returns, timely GST payment and other discipline followed by the Assessee.
2.This can be viewed by the Assessee, as also by others.
3.Thus while selecting the Supplier, his GST Rating can be viewed beforehand.
4.It will also be viewed by bankers, financial institutions while lending money to the Assessee.

Set-off (ITC) under GST
1.ITC under GST shall be available under GST in following order.
CGST - 1.CGST
2.SGST
3.IGST

SGST - 1.SGST
2.CGST
3.IGST

IGST - 1.IGST
2.CGST
3.SGST

RETURN Filing Due Dates
1. 10th of Next Month - Output GST (including Advance from Suppliers) i.e. Sale Return (GSTR-1)
2. 11th to 15th - system will be closed / blocked for any entry, but entries can be viewed during this period, including Entries of your suppliers. View Supplier's sales entries, and ensure if they match with your purchase entries in your books.
3. 17th of Next Month - Input GST i.e. Purchase Return (GSTR-2) These entries HAVE TO MATCH with the entries made by your suppliers in their Sales Return.
4. 21st if Next Month - Monthly Return in GSTR-3, alongwith payment. Liability of Payment shall be calculated by the System itself, after filing of GSTR-1 & 2 as mentioned above.
5. 31st December of Next Financial Year - Annual Return (GSTR-9), alongwith Audit Report. Audit is compulsory for Assessees having Turnover of Rs.1 Crore and more.
6.Thus during the year, total 37 Returns (12months X 3 each month = 36 plus 1 Annual) are to be filed by Assessee, for each of Place of Business. If the Assessee is caarying out business at more than one places, he has to obtain GST Registration at each of such place and has to file 37 Returns for each of such place of business.

Reverse Charges - GST to be paid on Self-Invoicing
1. URD Purchases (with Names & Addresses of such suppliers)
2. Services such as a. Goods Transport, b. Advocates Fees, c. Sponsorship, d. Rent a Cab.

TRANSITION PROVISIONS (For the period of switching over from present Tax System to GST)
1. Transit-1 Return to be filed within 90 days. Set-off or ITC for these items shall be pending till this is filed.
2. June 29 - Reverse Charges to be paid

23/06/2017

18/06/2017

*Key take-outs from the 17th Meeting of GST Council held on 18th July*

1. *GST Council categorically decided to implement GST from 1st July*. There will be a special launch of GST in Delhi on the mid-night of 30th June and 1st July.

2. *Relaxation in Return filing time-line for first 2 months*:
A summary return form in GSTR-3B will required to be filed on self-declaration basis for first 2 month i.e. July and August by 20th day of next month. I.e. for the month of July, a summary return needs to be filed by 20th august after paying appropriate taxes, and for the month of August, the same needs to filed by 20th September.

3. GSTR-1 with invoice level details needs to be filed for the month of July by 5th September, and for the month of August by 20th September. GSTR-2 and GSTR-3 for these 2 months will be filed thereafter.

4. *Reduced tax rate for hotels with tariff between 5000-7500*:
Reduced tax rate of 18% will apply on the hotels with tariff between Rs. 5000 to Rs. 7500. Restaurants in these hotels will also be taxable at 18%.

5. *Tax rate on Lotteries*
State-run lotteries will be taxed at 12%
Private lotteries will be taxed at 18*

6. *Negative List of Composition Scheme*
Only 3 products have been added in negative list of Composition Scheme, which means for following 3 products composition scheme will not be available.
• Ice cream
• Pan masala
• To***co

7. *E-way bill* will be deferred and will be implemented later on once the rules for same will finalized. Till that time, an alternate e-way bill will be introduced to allow the state with their current system.

8. IGST rate of 5% on Ship with full ITC will be applicable.

9. GST Council also approved anti-profiteering rule.

10. *New Registration in GST will be commenced from 25th June.*

Regards,

17/04/2017