Pls get your GST registration certificate *framed / laminated* and display it on your shop/ office/ godown and every place of business which you have mentioned in the GST registration certificate.
2. Pls also get the GST registration number printed on the *SIGN BOARD* of your shop/ office/ godown and every place of business which you have mentioned in GST Registration.
3. Composition Dealers under GST are required to display wordings *"Composition Taxable Person"* in their shop/office/godown and every additional place and also on their SIGN BOARD.
4. Composition dealers under GST are required to print wordings *"Composition Taxable Person, not eligible to collect tax on supplies"* on the sales invoices to be issued under GST.
These are mandatory requirements as given in *CGST Rules No. 5 and 18*.
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GST Registration is Compulsory to Pay Tax under Reverse Charge Mechanism: Govt Explains the Concept of RCM [Read Concept Note]
Read more at: http://www.taxscan.in/gst-registration-compulsory-pay-tax-reverse-charge-mechanism-govt-explains-concept-rcm/10120/
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*SEBI CIRCULAR : Online Registration Mechanism for Custodian of Securities*
https://dasgovernance.wordpress.com/2017/08/10/sebi-circular-online-registration-mechanism-for-custodian-of-securities/
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“Oversight on the part of Accountant can be presumed to be a reasonable cause for not depositing the tax within time”: Patna HC [Read Judgment]
Read more at: http://www.taxscan.in/oversight-part-accountant-can-presumed-reasonable-cause-not-depositing-tax-within-time-patna-hc/10107/
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# *GST*: Migration of an Existing business to GST - Transitional Input Tax Credit of Excise, Service Tax, VAT etc. can’t be claimed in GSTR-3B, but through Transition Forms as The legal provisions doesn’t allow claiming transitional credit through Form GSTR-3B.
# *SEBI* has forwarded a list of 331 shell companies as identified by Ministry of Corporate Affairs and has directed the Exchanges to identify the companies listed on their trading platform and initiate measures.
# *CBDT*: Direct Tax Collection is Up by 19.10% to ₹ 1.90 Lac Crores in Apr-Jul, 2017, makes it 19.50% of the Budget estimate for FY 2017-18.
# *AADHAAR*: The Govt. & SEBI are planning to link Aadhaar to financial market transactions to try and curb sharp practices such as conversion of black money into white through the stock market.
# *AADHAAR*: Election Commission of India is also considering linking of Aadhar Number with the Voter Cards.
# *IT*: Grant of exemption under section 10(23C)(vi) - date of grant of registration - The registration will take effect from the date of application – CIT Vs Sahitya Sadawart Samiti (2017 (8) TMI 374 - Rajasthan High Court).
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DRI not Liable to Pay Demurrage Charges to Compensate Burden of Importers: SC [Read Judgment]
Read more at: http://www.taxscan.in/dri-not-liable-pay-demurrage-charges-compensate-burden-importers-sc/10102/
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: 12AA Registration cannot be withdrawn on Ground of Receiving Service Charges for conducting Programmes: Delhi HC [Read Order]
Read more at: http://www.taxscan.in/12aa-registration-cannot-withdrawn-ground-receiving-service-charges-conducting-programmes-delhi-hc/10092/
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Designing Charges & Tooling Cost Reimbursed by the Customers is part of ‘Sales Turnover’ under Bombay Sales Tax Act: Bombay HC [Read Judgment]
Read more at: http://www.taxscan.in/designing-charges-tooling-cost-reimbursed-customers-part-sales-turnover-bombay-sales-tax-act-bombay-hc/10049/
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Very very very useful complete RCM under GST*
*Reverse charge mechanism under GST and implications of exemption upto Rs. 5000 per day*
Let’s look at the critical provisions of the GST law which have enabled reverse charge mechanism :-
Compulsory Reverse Charge even if the supplier is registered –
Sec 9(3) The Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.
The above section primarily covers services availed from Goods Transport Agency, Lawyer, government, corporate sponsorships, director etc.
Reverse Charge if the supplier is unregistered –
Sec 9(4) The central tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.
Central Government had come up with an exemption to the small miscellaneous transactions from unregistered persons.
Notification No. 8/2017- Central Tax (Rate) dt 28.06.2017 issued by Central Government has exempted intra-State supplies of goods or services or both received by a registered person from any supplier, who is not registered, from the whole of the central tax leviable thereon under sub-section (4) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017)
The said exemption shall not be applicable where the aggregate value of such supplies of goods or service or both received by a registered person from any or all the suppliers, who is or are not registered, exceeds five thousand rupees in a day.
To sum up, the supply should be intra state supply (within the state) and can be for goods as well as services or both. Moreover the supply should be received by the registered person from an unregistered dealer only and upto a daily limit of Rs. 5000/-
Example:-
Mr. X purchased following items from unregistered dealer, all are dated 01.07.2017 as under:
1st bill – From Ram: Stationery = 2000/-
2nd bill – From Shyam: Lunch = 1000/-
3rd bill – From Madhu : Books = 3000/-
In this case, The bills of Mr. X will not get covered under this notification as aggregate value of all supplies exceeds 5000/- on a single date (01.07.2017)
Exemption would have been available if,:
1) Bill dates are different (So that it will come under 5000/- day limit, say bill date of Ram is 02.07.2017)
2) Any of the bills are 1000/- less than the mentioned value(Say Bill of Madhu is Rs 2000/-
3) If the one of the bills in the same of other person (say, one of the bill is in the name of Mr. Y)
FAQ’s
Whether these 5000 limit be availed for those cases where compulsory tax is payable in RCM basis as per section 9(3) of CGST act?
Where Compulsory tax is to be paid under the Reverse Charge Mechanism under 9(3) of CGST Act, and as per Notification N0o. 13/2017- Central Tax (Rate) dt 28.06.2017 the benefit of this limit cannot be availed. Reason being these notification cover only cases of 9(4) and not 9(3).
Mr. X purchased following items from unregistered dealer, all are dated 01.07.2017 as under:
1st bill – From Ram: Stationery = 2000/-
2nd bill – From Shyam: Lunch = 1000/-
3rd bill – From Madhu: Goods Transport Agency = 3000/-
In this case, The bills from Mr Ram and Mr Shyam will get covered under this notification as aggregate value of all supplies does not exceed 5000/- on a single date (01.07.2017). For the Third bill from Madhu Reverse charge is payable u/s 9(3) without any exemption threshold.
Whether this daily limit benefits would be available if the goods/services received from persons covered under 9(4) are blocked credits?
The benefit of daily limit would be available. Output Tax under reverse charge would be payable if it crosses the daily limit even though they are covered under blocked credits.
What if the limit crosses 5000 in a day, is GST payable over and above the value or from rupee 1?
If the value of taxable supplies exceeds Rs5000 per day for all suppliers, then GST would be payable on the Total value of the supplies received from unregistered persons.
Is this limit applicable to all supplies?
The limit is applicable to only taxable supply of goods or services or both. Exempt supplies are out of the preview of this notification.
Mr. X purchased following items from unregistered dealer, all are dated 01.07.2017 as under:
1st bill – From Ram: Stationery = 2000/-
2nd bill – From Shyam: Hotel Room = 1000/-
3rd bill – From Madhu: Books = 3000/-
In this case, the bills of Mr. X will not get covered under this notification as aggregate value of all supplies does not exceed 5000/- on a single date (01.07.2017) as the supplies from Shyam for Hotel room booking are exempt under Entry 14 of the exemption notification (12/2017).
What if the supplies are procured from Interstate supply from unregistered?
Benefit of this notification is available only for Intra State Purchase. If any transactions are done on an interstate basis the same are covered under the forward charge and in any case the reverse charge provisions are not applicable.
Goods and services both inclusive 5000 or separate?
Yes, the benefit is inclusive for all goods or services or both.
What rate GST should be payable then?
GST should be payable as per the schedules rate of the product/service.
What if procured from Composition persons?
Since Composition persons are registered person, reverse charge is not applicable on such supplies.
Can credit be availed for these taxes paid and on what basis, any invoice issue requirement?
Credits can be availed on payment of GST in cash. A consolidated monthly tax invoice can be raised if supplies are received from a single vendor. The Invoice shall be raised on the date of receipt of goods or services or both. Also a payment voucher needs to be issued on the date of making any advance payment as the time of supply is invoice of payment whichever is earlier.
We have compiled the daily expenses which would be liable to GST if procured from unregistered supplier as below:-
Sr.No. Nature of Expenses GST Rate GST IMPACT/ OTHER REMARKS
Supplies from UR (RCM Applicable)
*No GST / NIL GST or EXEMPTED :-*
1 Electricity Charges 0% Out of GST
2 Water Charges 0% Out of GST
3 Bank Interest 0% Out of GST
4 Professional Tax 0% Tax levied by local body / other association out of GST
5 License renewal like Pollution, Factories & Boilers & Local Bodies 0% Tax levied by local body / other association out of GST
6 Building or Property Tax 0% Tax levied by local body / other association out of GST
7 Rent Deposits 0% If adjusted with rent or forfeited – GST applicable
8 Other Deposits 0% If adjusted with other expenses or forfeited – GST applicable
9 Petrol Expense 0% Petrol & Diesel out of GST
10 Salary 0% Out of GST
11 Staff Amenities 0% Out of GST if in lieu of salary.
12 Gifts to Staff 0% Gifts by employer of value above Rs. 50000/- shall be liable to GST as outward supply.
13 Staff Mediclaim Contribution 0% Out of GST if in lieu of salary
14 Allowance & incentive to employees 0% Out of GST if in lieu of salary
15 Stamp & Registration Fees 0% If only a pure agent service – ensure GL balance Nil
16 Provision for Doubtful Debts 0% No credit / deduction shall be allowed
17 Bad Debts Written Off 0% No credit / deduction shall be allowed
18 Warranty Labour Charges 0% If there is no supply element & no consideration
19 Donation 0% If there is no supply element & no consideration
20 Labour Welfare Fund Contribution 0% Out of GST
21 Staff Medical Expenses 0% Employee service without any margin
22 Fine & Penalties by Government 0% Out of GST
23 Discounts – shown in bill 0% GST applicable is after all discount
– if shown in the bill
24 Free Gifts, Gold Coin to Customers 0%
25 Interest on Service Tax/ TDS 0%
26 Interest on Vehicle Loan 0%
27 Interest Others 0%
28 Local Conveyance 0%
29 Transportation Charges – Non GTA / Trucks 0%
*GST Applicable & No ITC :-*
28 Food Expense 12% / No ITC
29 Travel claims – Radio Taxi (Rent-a-cab) 5% No ITC
30 Transportation Charges – GTA 5% No ITC
31 Club & Membership fees 18% No ITC
32 Life Insurance Exps for Employees 18% No ITC
33 Work Contract Services – Construction of Building 18% No ITC if not supplied for outward works contract services
*GST Applicable / RCM supply of URD :-*
34 Advertisement Charges 18%
35 Advertisement in Magazine, 18%
36 Advertisement in Media 18%
37 Discounts – after issue of invoice (Post supply discount) GST Impact Credit note has to be issued, liability will be reduced to extent of GST on discount.
38 Annual Maintenance Charges 18%
39 Bank Charges – Service charges recovered 18%
40 Broker Fee & Charges 18%
41 Call Centre Expense 18%
42 Customer Schemes by MSIL 18%
43 Construction Work 18% GST amount – no ITC – for immovable property (Building)
44 Consumables Paint material
& Other Consumables
28%
45 Customer Welfare expense 18% Food charges – No ITC
46 Contract Labour Expense 18%
47 Extended Warranty Cancellation Charges 18%
48 Free Service Camp Expense 18% If any third party bill comes
49 House Keeping Charges 18%
50 Insurance Charges 18%
51 Legal charges to advocate 18% Advocate raise bill without GST component – RCM to us
52 Loading & unloading Charges 18%
53 Local Conveyance 5%
/ 12%
54 Mediclaim Policy Premium Contribution A/ c 18%
55 Mobile Allowance 18% Pure Agent Service / If margin then GST applicable
56 Other Training Expense 18%
57 Postage and Courier Charges 18% Subject to certain exemptions
58 Printing & Stationery(Flex Printing, Broad Printing, Notice Printing) 18%
59 Rates and Taxes Actuals Depends on case to case basis
60 Recruitment Expenses 18%
61 Rent Paid 18%
62 Rent Paid for Mess (Employees) 18%
63 Repair and Maintenance – Building / Electrical / P& M
/ Others
18%
64 RTO Expenses 18% or
28%
65 Sales Promotion – Others / SSI / Display 18%
66 Sponsorship services 18% Reverse Charge to Service Receiver
– ITC can be availed
67 Security Charges 18%
68 Staff Recruitment 18%
69 Staff Training Expenses 18%
70 Staff Uniform Expenses 18% If a third party bill comes
71 Stationery Expenses 18%
72 Subscription & periodicals 18%
73 Telephone Charges 18%
74 Transportation Charges – GTA 5%
75 Travelling Expenses Interstate 5%/18% Services from Tour operators / Agencies
76 Travelling Expenses International 28%
Note: The above expense heads are for illustrative purpose only. The applicability of GST on a particular expense has to be checked on case to case basis.
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Designing Charges & Tooling Cost Reimbursed by the Customers is part of ‘Sales Turnover’ under Bombay Sales Tax Act: Bombay HC [Read Judgment]
Read more at: http://www.taxscan.in/designing-charges-tooling-cost-reimbursed-customers-part-sales-turnover-bombay-sales-tax-act-bombay-hc/10049/
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GST Authorities have now activated the option on GST portal to seek cancellation of registrations. Taxpayers who have not filled Part B of their enrollment application,and would like to seek cancellation of registration,may do so now on GST Portal.
Physician samples of Drugs and pharmaceuticals distributed free of cost, the ITC availed on the samples has to be reversed in view of section 17(5)(h) of CGST Act. No tax is payable on clearance of Physician samples distributed free of cost as the value of supply is Zero and no credit has been availed.
Transitional Input Tax Credit of Excise, Service Tax, VAT etc. cannot be claimed in GSTR-3B. He said that "The legal provisions don’t allow claiming transitional credit through Form GSTR-3B, they have to claim through Transition Forms".
Any revision in GSTR-3B must be routed through Forms GSTR-1, GSTR-2 and GSTR-3.
Refund (if allowable as per section 54 of CGST Act, 2017) Can not be claimed under Form GSTR-3B, excess ITC can be carried forward to subsequent months for setting off liability.
Where there are no inward or outward supplies during July & August, ‘Nil’ return must be filed.
Composition scheme dealers shall file Form GSTR-4 in the month of October, while e-commerce operators supplying own goods & services will require to file Form GSTR-3B, but in other cases, they will deduct TCS and file Form GSTR-8 which is yet to be notified .
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[🍎 Dear All
👉 Don't wait for last minute or last Due Date, Finalise the following immediately so that all compliances can be made well in time:
1. Details of Stock as on 30th June, 2017.
2. Turnover for the year 2016-17 and for the period April to June 2017.
3. Sales made during the month of July and Output Tax Liability thereon.
4. Purchases made during the month of July and eligible ITC thereon.
5. Purchases made from Unregistered Dealers and calculate GST liability to be discharge under RCM.
6. Make a list of all Expenditures for the month of July and calculate GST liability to be discharge under RCM. Specially Rent and Freight expenditure.
(Note: GST is not Payable on Salary Paid to Employees).
7. Calculate Net Tax Liability and Pay on or before 15th August, 2017 along with GST under RCM.
Thanks For Reading