Saturday, 7 October 2017

Recommendations made by the GST Council in its 22nd Meeting held on 6th October 2017

The GST Council, in its 22nd Meeting which was held today in the national capital under Chairmanship of the Union Minister of Finance and Corporate Affairs, Shri Arun Jaitley has recommended the following facilitative changes to ease the burden of compliance on small and medium businesses:


Composition Scheme 1.  

The composition scheme shall be made available to taxpayers having annual aggregate turnover of up to Rs. 1 crore as compared to the current turnover threshold of Rs. 75 lacs. This threshold of turnover for special category States, except Jammu & Kashmir and Uttarakhand, shall be increased to Rs. 75 lacs from Rs. 50 lacs. The turnover threshold for Jammu & Kashmir and Uttarakhand shall be Rs. 1 crore. The facility of availing composition under the increased threshold shall be available to both migrated and new taxpayers up to 31.03.2018. The option once exercised shall become operational from the first day of the month immediately succeeding the month in which the option to avail the composition scheme is exercised. New entrants to this scheme shall have to file the return in FORM GSTR-4 only for that portion of the quarter from when the scheme becomes operational and shall file returns as a normal taxpayer for the preceding tax period. The increase in the turnover threshold will make it possible for greater number of taxpayers to avail the benefit of easier compliance under the composition scheme and is expected to greatly benefit the MSME sector.

2.  Persons who are otherwise eligible for composition scheme but are providing any exempt service (such as extending deposits to banks for which interest is being received) were being considered ineligible for the said scheme. It has been decided that such persons who are otherwise eligible for availing the composition scheme and are providing any exempt service, shall be eligible for the composition scheme.

3.  A Group of Ministers (GoM) shall be constituted to examine measures to make the composition scheme more attractive.


Relief for Small and Medium Enterprises 

4.  Presently, anyone making inter-state taxable supplies, except inter-State job worker, is compulsorily required to register, irrespective of turnover.  It has now been decided to exempt those service providers whose annual aggregate turnover is less than Rs. 20 lacs (Rs. 10 lacs in special category states except J & K) from obtaining registration even if they are making inter-State taxable supplies of services. This measure is expected to significantly reduce the compliance cost of small service providers.

5.  To facilitate the ease of payment and return filing for small and medium businesses with annual aggregate turnover up to Rs. 1.5 crores, it has been decided that such taxpayers shall be required to file quarterly returns in FORM GSTR-1,2 & 3 and pay taxes only on a quarterly basis, starting from the Third Quarter of this Financial Year i.e. October-December, 2017. The registered buyers from such small taxpayers would be eligible to avail ITC on a monthly basis. The due dates for filing the quarterly returns for such taxpayers shall be announced in due course. Meanwhile, all taxpayers will be required to file FORM GSTR-3B on a monthly basis till December, 2017. All taxpayers are also required to file FORM GSTR-1, 2 & 3 for the months of July, August and September, 2017. Due dates for filing the returns for the month of July, 2017 have already been announced. The due dates for the months of August and September, 2017 will be announced in due course.

6.  The reverse charge mechanism under sub-section (4) of section 9 of the CGST Act, 2017 and under sub-section (4) of section 5 of the IGST Act, 2017 shall be suspended till 31.03.2018 and will be reviewed by a committee of experts. This will benefit small businesses and substantially reduce compliance costs.

7.  The requirement to pay GST on advances received is also proving to be burdensome for small dealers and manufacturers. In order to mitigate their inconvenience on this account, it has been decided that taxpayers having annual aggregate turnover up to Rs. 1.5 crores shall not be required to pay GST at the time of receipt of advances on account of supply of goods. The GST on such supplies shall be payable only when the supply of goods is made.

8.  It has come to light that Goods Transport Agencies (GTAs) are not willing to provide services to unregistered persons. In order to remove the hardship being faced by small unregistered businesses on this account, the services provided by a GTA to an unregistered person shall be exempted from GST.

Other Facilitation Measures 

9.  After assessing the readiness of the trade, industry and Government departments, it has been decided that registration and operationalization of TDS/TCS provisions shall be postponed till 31.03.2018.

10.  The e-way bill system shall be introduced in a staggered manner with effect from 01.01.2018 and shall be rolled out nationwide with effect from 01.04.2018. This is in order to give trade and industry more time to acclimatize itself with the GST regime. 

11.  The last date for filing the return in FORM GSTR-4 by a taxpayer under composition scheme for the quarter July-September, 2017 shall be extended to 15.11.2017. Also, the last date for filing the return in FORM GSTR-6 by an input service distributor for the months of July, August and September, 2017 shall be extended to 15.11.2017. 12.  Invoice Rules are being modified to provide relief to certain classes of registered persons.

Tuesday, 5 September 2017

E-Way Bill rules Notified by Government

With 6th amendment in Central Goods and Services Tax Rules, 2017 (CGST Rules, 2017) Central Government has notified provisions for e-way bill.
 
The Notification no. 27/2017-CT dated 30.08.2017 substituted Rule 138 with new Rule 138 with additional set of rules i.e. 138A to 138D. Its worth noting that the date of the implementation of these rules has not been notified till date.
 
Following are the main features of e-way bill provisions –
 
• These provisions are applicable only when value of consignment exceeds Rs. 50,000.
 
• Consignor who is registered is required to upload information in Part A of form GST EWB-01, electronically, before commencement of movement of goods..
 
• If consignor is unregistered and consignee is registered, the consignee is required to upload the details electronically [Rule 138(1) of CGST Rules]
 
• If goods are transported in own conveyance or by air, railways or vessel, the consignor/consignee is also required to generate e-way bill form GST EWB-01 electronically on the common portal after furnishing information in Part B of form GST EWB-01 [Rule 138(2) of CGST Rules]
 
• If goods are transported by road , the consignor/consignee shall furnish information relating to transporter in Part B of form GST EWB-01 and  Transporter will generate the e-way bill [Rule 138(3) of CGST Rules]
 
• An Exemption is provided if the distance between places is less than 10 Kms .
 
• On submission of such information, a unique  number (EBN) will be generated by system.
 
• If goods are transferred from one vehicle to other, details have to be submitted in form GST EWB-01 [Rule 138(5) of CGST Rules]
 
• If more than one consignments are grouped in one conveyance, a consolidated e-way bill in form GST EWB-02 should be generated [Rule 138(6) of CGST Rules]
 
• If consignor or consignee does not generate any form, transporter himself must generate form GST EWB-01 [Rule 138(7) of CGST Rules]
 
• The e-way bill generated is valid for one day is transport of goods is less than 100 Km. Further, one additional day is allowed for every 100 Kms after first 100 Km. If goods could not be transported within that period, fresh e-way bill should be generated [Rule 138(10) of CGST Rules]
 
• Exemptions have been provided from provisions of e-way bill in case of transport of exempted goods, goods under customs clearance, LPG, kerosene, pearls, diamonds, jewellery, currency, coral and household effects.
 
• If a vehicle is intercepted and detained for more than 30 minutes, the transporter may upload the said information in form GST EWB-04 on the common portal [rule 138D of CGST Rules]
• RFID tags integration will be implemented for smooth transport of goods and to avoid vehicle being checked multiple times.

Regards
CA Anand Mutha

Wednesday, 23 August 2017

Last date for payment of gst and filing of return for July 2017 extended by 5 days

The last date for payment of taxes and filing of GST Return in Form 3B for the month of July is 20th of August 2017. However, owing to various issues faced by the assesses being first return, technical glitches and requests received by flood hit states the last date for payment of the GST for the month of July 2017 to 25th August, 2017. For those tax payers, who do not want to avail of transitional credit in TRANS1 this month, the date for return filing will be 25th August 2017. And for those who want to fill up TRANS1 this month, the last date for filing of returns will be 28th August 2017, as announced earlier.

ast date for payment of gst and filing of return for July 2017 extended by 5 days

The last date for payment of taxes and filing of GST Return in Form 3B for the month of July is 20th of August 2017. However, owing to various issues faced by the assesses being first return, technical glitches and requests received by flood hit states the last date for payment of the GST for the month of July 2017 to 25th August, 2017. For those tax payers, who do not want to avail of transitional credit in TRANS1 this month, the date for return filing will be 25th August 2017. And for those who want to fill up TRANS1 this month, the last date for filing of returns will be 28th August 2017, as announced earlier.

Wednesday, 12 April 2017

१ एप्रिल २०१७ पासून रोखीने व्यवहार महागात पडू शकतात

२२ मार्च २०१७ ला लोकसभेने मंजूर केलेल्या वित्त विधेयकात रोखीने केल्या जाणाऱ्या व्यवहारांवर अनेक निर्बंध लादले आहेत. वित्तीय वर्ष २०१७ २०१८ पासून यांची अंमल बजावणी सुरु झालेली असून, या वर गांभीर्याने विचार करणे अत्यंत आवश्यक आहे. असे न केल्यास मोठ्या शास्ती ची भीती निर्माण होऊ शकते. या बदलांची व्याप्ती फक्त व्यावसायिकांन पुरती राहिलेली नसून इतरानाही रोखीने व्यवहार करतांना काळजी घेणे अत्यंत आवश्यक झाले आहे. अगदी राजकीय संस्था सुद्धा यातून सुटलेल्या नाही. आपण खऱ्या अर्थाने कॅश लेस व्यवहारांकडे वाटचाल करीत असल्याचे हे द्योतक आहे.







खाली दिलेल्या रोखीच्या व्यवहारांवर कायद्याचे पालन न केल्यास शास्ती लागू शकते किंवा दिलेली सूट काढून घेतली जाऊ शकते.


क्र.
आयकर कलम
निर्बंध
शास्ती किंवा परिणाम
13A - राजकीय संस्थाना आयकरातून दिलेली सुट
रु.२००० च्या वरती एका व्यक्तीकडून रोखीने देणगी स्वीकारू नये
आयकरातून दिलेली सुट मिळणार नाही
40A(3) - व्यावसायिक खर्च
रु. १०००० च्या पेक्षा रोखीने खर्च करू नये
खर्चाची वजावट भेटणार नाही.
43(1) - अचल किंवा चल मालमत्ता ( Fixed Asset )
रु. १०००० च्या पेक्षा रोखीने अदा  करू नये
घसारा वजावट भेटणार नाही
35AD - भांडवली खर्चाशी निगडीत गुंतवणुकी वरील वजावट
रु. १०००० च्या पेक्षा रोखीने अदा  करू नये
वजावट भेटणार नाही
80D - आरोग्य विमा
रोखीने विम्याचा हफ्ता चालणार नाही
वजावट भेटणार नाही
80G -  देणगी
रु. २००० च्या पेक्षा रोखीने अदा  करू नये
वजावट भेटणार नाही
80GGA - विज्ञान संशोधना साठी  देणगी
रु. १०००० च्या पेक्षा रोखीने अदा  करू नये
वजावट भेटणार नाही
80GGB - राजकीय संस्थाना  कंपनीने दिलेली देणगी
रोखीने चालणार नाही
वजावट भेटणार नाही
80GGC - राजकीय संस्थाना  इतरांनी  दिलेली देणगी
रोखीने चालणार नाही
वजावट भेटणार नाही
१०
269SS - रोखीने उधार किंवा कर्ज किंवा ठेव स्वीकारणे
रु. २०००० पेक्षा जास्त एका व्यक्ती कडून घेऊ नये
रोखीने स्वीकारलेल्या रकमेच्या १००% शास्ती
११
269ST - रोखीने इतर कुठल्याही प्रकारे रक्कम स्वीकारणे
रु. २००००० पेक्षा जास्त एका व्यक्ती कडून, एका कामा साठी किंवा एका कार्यक्रमा बद्दल एका वेळेस अथवा वेळोवेळी  घेऊ नये
रोखीने स्वीकारलेल्या रकमेच्या १००% शास्ती
१२
269T - रोखीने उधार किंवा कर्ज किंवा ठेव परत करणे
रु. २०००० पेक्षा जास्त एका ला देऊ नये
रोखीने दिलेल्या रकमेच्या १००% शास्ती


वरील विविध कलम वाचल्यास आपल्याला हे लक्षात येईल कि सरकारची मनीषा काय आहे. तसेच काळा पैसा बनूच नये या साठी सरकार प्रतिबद्ध असल्याचे दिसून येत आहे. डिजिटल इंडिया चे घोषवाक्य आपणही स्वीकारून, सर्वांनी काळा पैसा बनू नये या साठी हातभार लावणे आवश्यक आहे.


अधिक माहिती साठी
सी ए आनंद मुथा
anandmutha@armutha.in

New Companies to get PAN and TAN within 1 day - Ease of Doing Business




In order to improve the Ease of Doing Business for newly incorporated corporates, CBDT has tied up with Ministry of Corporate Affairs (MCA) to issue Permanent Account Number (PAN) and Tax Deduction Account Number (TAN) in 1 day.



ease of doing Business


Applicant companies submit a common application form SPICe (INC 32) on MCA portal and once the data of incorporation is sent to CBDT by MCA, the PAN and TAN are issued immediately without any further intervention of the applicant. The Certificate of Incorporation (COI) of newly incorporated companies includes the PAN in addition to the Corporate Identity Number (CIN). TAN is also allotted simultaneously and communicated to the Company.




Saturday, 8 April 2017

Calrification - Withdrawal from Bank Accounts - Penalty

CBDT issues clarification with respect to restriction on cash transactions contained under newly inserted Sec. 269ST;
CBDT clarifies that “the restriction on cash transaction shall not apply to withdrawal of cash from a bank, co-operative bank or a post office savings bank.”;



CBDT  notification in this regard –

Monday, 3 April 2017

One more bold step to curb black money : Section 269ST

Government has taken a bold step to curb black money by inserting a new section 269st by Finance Act 2017. The section came in to force from 1st April 2017. As it is going to impact everyday transactions, the in-depth analysis of it becomes necessary. It is also important to note that this sections provides for penalty on payee.

The provisions is as below -

Provisions of section 269ST:
No person shall receive an amount of two lakh rupees or more—
(a) in aggregate from a person in a day; or
(b) in respect of a single transaction; or
(c) in respect of transactions relating to one event or occasion from a person, otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account:
Provided that the provisions of this section shall not apply to —


Monday, 13 March 2017

Amendments regarding Educational Institutions under Mega Exemption Notification No 25/2012-Service Tax

Central Government vide Notification No. 10/2017-Service Tax, dated: March 08, 2017has amended the clause 9(b) of Mega Exemption Notification No. 25/2012 where by restricting the scope of exemptions.   

Saturday, 4 March 2017

CBDT to issue legal notice to those who haven’t responded to cash deposit verifications

The Govt. had demonetized Rs500 and Rs1,000 notes on 8 November 2016.
Taxpayers were required to deposit the demonetized note till 30 December 2017 in their bank accounts. 

Central Board of Direct taxes (CBDT) had sent emails and text messages to around 1.8 million taxpayers whose cash deposits looks suspicious.
They were given time till 10 February 2017 to submit their response online; this was later extended to 15 February 2017. 

Saturday, 11 February 2017

Cash Transactions 2016 Frequently asked questions.

The Income tax Department has already made its move towards "Clean Money Operation". ITD has started intimating those who have made cash deposits during 9th November 2016 to 31st December 2016 in large amount. Data analytics have been used in selecting such cases. It may be noted that this intimation is not a notice. It is also suggested that, even though one may not have received such information, one should check it through logging in to www.incometaxindiaefilling.gov.in 

Although the a 10 days period was given to respond, now extension has been granted to submit the response till 15th February 2017. 




Following is the text of Frequently Asked Questions as issued by Income Tax Department.  


GST Audit Report and Reconciliation Statement Format notified

The CBIC has notified the has notified Form GSTR-9C  for Audit Report and Reconciliation Statement  vide  Central GST (Tenth Amendment) Rul...