#Economy:The Govt has waived the penalty for taxpayers who failed to file the first GST returns within the deadline.The taxpayers will, however, have to bear the interest on late payment of dues.The taxpayers had to file the GST returns for July by August 25 and those claiming transitional input tax credit by August 28.Earlier, FM had said that the taxpayers who failed to meet the deadline will have to bear a penalty of Rs 200 per day -- Rs 100 for Central GST and Rs 100 for State GST. A total of about 5.95 million taxpayers for July should have filed the GST returns, but till August 29 only about 3.83 million (or 64.42 per cent) had complied. Thus, the remaining 2.1 million taxpayers were facing penalty for late filing. The Finance Ministry in a circular also said that the taxpayers who might have made errors in filing the first GST returns could make corrections while filing the GSTR-1 and GSTR-2 forms for the month of July. Form GSTR-1 reflects sales of a business while GSTR-2 reflects purchases. For July, GSTR-1 needs to be filed between September 1 and 5 and GSTR-2 between September 6 and 10.
#Finance:The credit growth of all banks slowed down to 8.1% in 2016-17 from 10.9% in the previous year, though the aggregate deposits improved on account of massive flow of funds after demonetisation. The banks NPAs continued to display the highest level of stressed advances.The gross non-performing advances of banks rose to 9.6% in March, 2017 from 7.5% in March, 2016. The net NPA ratio of banks stood at 5.5% in March 2017. At present, the Indian banking sector is going through a critical phase. The credit growth has remained subdued, particularly in the case of public sector banks. Increase in stressed assets has affected the profitability of banks and therefore, deteriorating asset quality means a major challenge for the banking industry.
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Room Rent in Hospitals is out of the GST Net: Govt. [Read FAQs]
Read more at: http://www.taxscan.in/room-rent-hospitals-gst-net-govt/10735/
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Acquittal of CA by ICAI Disciplinary Committee can’t be a Ground for Escaping Prosecution under PMLA: Calcutta HC [Read Judgment]
Read more at: http://www.taxscan.in/acquittal-ca-icai-disciplinary-committee-cant-ground-escaping-prosecution-pmla-calcutta-hc/10755/
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ICAI releases Exposure Draft of Guidance Note on Transfer Pricing [Read Draft Guidelines]
Read more at: http://www.taxscan.in/icai-releases-exposure-draft-guidance-note-transfer-pricing-read-draft-guidelines/10751/
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CBEC via Notification No.28 /2017 – dated 01st September, 2017 have waived the late fee payable under section 47, for all registered persons who failed to furnish the return in FORM GSTR-3B for the month of July 2017 by the due date.
2.Rules related to E-Way Bill-As Per Notifi No-27/2017 Dated 30-08-2017-
Consignment Value Exceeds Rs 50000- Eway Bill to be generated in Form GST EWB-01.
Procedure- Supplier will Fill Part-A of Form GST EWB-01 and than Transporter will fill Part-B of Form GST EWB-01 before movement of Goods.
Distance < 10 Km- where the goods are transported for a distance of less than ten kilometres within the State or Union territory from the place of business of the transporter finally to the place of business of the consignee, the details of conveyance may not be updated in Part-B of the e-way bill.
Unique e-way bill number (EBN)- Upon generation of the e-way bill on the common portal, a unique e-way bill number (EBN) shall be made available to the *supplier*, the *recipient* and the *transporter* on the common portal.
*Transporter transferring goods from one conveyance to another* - in the course of transit shall, before such transfer and further movement of goods, update details of conveyance in the e-way bill on the common portal in FORM GST EWB-01.
*Multiple consignments in one conveyance*- A consolidated e-way bill in FORM GST EWB-02 has to be generated by the Transporter which contains the serial No of all the individual Consignments.
*Cancellation of E-way Bill*- If Goods are not transported after generation of E-way Bill than it need to be cancelled with 24hrs of its generation.
*Validity of E-way Bill*- Upto 100km one day and additional 1 Day for each additional 100 Km.
*No E-way Bill is Required in the following cases*- Goods Specified in Annexure to E-Way Rules, Goods Transported by Non-motorised Conveyance.
3.GST Returns filling Due Dates in Sept-2017:
05.09.17* - *GSTR-1*(July)
10.09.17* - *GSTR-2*(July)
15.09.17* - *GSTR-3*(July)
20.09.17* - *GSTR-3B*(August)
20.09.17* - *GSTR-1*(August)
25.09.17* - *GSTR-2*(August
30.09.17* - *GSTR-3*(August)
30.09.17* - *TRANS FORM 1
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Govt allows Tax Payers to Rectify Errors in GSTR 3B while filing Regular Returns GSTR 1 and GSTR 2 [Read Circular]
Read more at: http://www.taxscan.in/govt-allows-tax-payers-rectify-errors-gstr-3b-filing-regular-returns-gstr-1-gstr-2/10714/
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Income from Sale/Redemption of Investment is not Chargeable to Tax: Delhi HC [Read Judgment]
Read more at: http://www.taxscan.in/income-saleredemption-investment-not-chargeable-tax-delhi-hc/10720/
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Govt notifies Protocol Amending India – Vietnam DTAA [Read Notification]
Read more at: http://www.taxscan.in/govt-notifies-protocol-amending-india-vietnam-dtaa/10726/
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➡1. Ind AS 16: Roads & bridges to be capitalised if constructed to facilitate business operation.
➡2. Sec. 144C assessment order had to be quashed if AO didn’t furnish draft assessment order to assessee: HC
Commissioner of Income tax, Vadodara-2 v. C-Sam (India) (P.) Ltd.
➡3. Benefit of peak credit wasn’t available if assessee was involved in providing accommodation entries: Delhi HC
Commissioner of Income Tax v. D.K. Garg*
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# *GST*: CBEC waived off late fee u/s 47 of the CGST Act, 2017 for those registered person who failed to file return in Form GSTR-3B for the m/o Jul’ 2017 – Notification No.28/2017-Central Tax, dt.01.09.2017.
# *GST*: CBEC issues guidelines for System based reconciliation of information furnished in FORM GSTR-1 and FORM GSTR-2 with FORM GSTR-3B - Correction can be done in in GSTR-1 and GSTR-2 even if GSTR-3B submitted but not filed – Circular No.7/7/2017-GST, dt.01.09.2017.
# *GSTN* launched GSTR-1 Off-Line Tool Version 1.2 to help preparation of GSTR-1 offline and thus reduce burden on the network.
# *GST*: Manufacturing activity rebounds in August as GST linked doubts eases as the Purchasing Managers’ Index (PMI) for Aug increases to 51.20 as compared to 47.90 for Jul’ 2017.
# *IT*: Prime Minister Modi asks IT Officers to improve work culture and put greater reliance on technology and data analytics to reduce search and seizure operations.
# *CBDT*: Cash seized during search operation u/s 132B can be adjusted against advance tax payment - Circular No.20/2017, dt.12.06.2017.
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#Economy:PMI for manufacturing rose to 51.2 points in August from 47.9 points in July. A PMI below 50 shows contraction while above this level denotes expansion. Manufacturing was one of the biggest segments hit by persisting effect of demonetisation and pre-GST confusion as it grew only 1.2% in April-June, from 5.3% in January-March.The survey showed that manufacturers remained cheerful of growth prospects, with marketing efforts, the launch of new products and favourable economic conditions expected to lead to output growth in the year ahead.
#Finance:PM Modi asked a gathering of top-level I-Tax officials to overhaul the old tax structure, as the existing tax laws are over 50 years old and do not fit in with today’s environment and present economic situation. Modi is backing a major change in the system, which could change the entire tax department’s strategy to nab tax evaders.The PM, at Rajasva Gyan Sangam in New Delhi addressing direct and indirect tax officers, highlighted that there was huge distrust between taxpayers and the tax collector, which was an unpleasant situation.He asked the tax department to build a system where there would be no “I-T raids”. Citing the 275,000 tax appeals which are pending so far, he directed the I-T dept to prepare an action plan to reduce this pendency in a time-bound manner.
#Only 4.4 million invoices have been uploaded as part of the GSTR 1 return filing, a facility that became operational on July 25. At least 440 million invoices should have been uploaded. The facility is open for 38 days.
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Status/Solution for Common issues being faced by Taxpayers
1. While submission of GST return, system is showing "No authorised Signatory"
🚩 Status: The issue is being fixed by GSTN
2. While submission of TRAN-1 through EVC system showing "System Error GSTIN NO. 34AAXXXXXXXX1ZX"
🚩 Status: The issue is being fixed by GSTN
👍 Solution: The issue may be resolved by opting to use DSC instead of EVC.
3. Validation Error after submission of Amendment of Non-Core Application.
👍 Solution: While migrating, system was validating only Name of PAN holder, but now system is validating entire data related to PAN such as date of birth etc. and AAADHAR No. details. Hence please verify all data in case you are receiving validation error.
4. Few RC's are shown cancelled by tax authorities and message is appearing that since your erstwhile registration is cancelled your GSTIN stands cancelled.
👍 Solution: You can make a representation to respective tax authorities and also inform helpdesk@gst.gov.in
5. Due to presence of some decimal value in Input Tax Credit taken from TRAN-1, taxpayers are not able to offset duty liability.
🚩 Status: The issue is being fixed by GSTN
6. Processing error in TRAN-1 while carrying forward the balance credit of Central Excise/ServiceTax/VAT.
👍 Solution: Processing error will show if you have not included your earlier Registration Number (CE/ST/VAT) details while migrating. In such case you may file "Non-core amendment" and register all your RC details and then submit TRAN-1.
7. When TRAN-1 is just submitted and not filed, the credits from TRAN-1 are still shown in credit ledger and taxpayer is able to offset liability, but while submitting the return error is shown that TRAN-1 is not filed. But when TRAN-1 is filed through EVC system error is coming. However when filed via DSC error is not shown.
🚩 Status: The issue is being fixed by GSTN
👍 Solution: The issue may be resolved by opting to use DSC instead of EVC.
(Status as on 01-Sep-2017 18:15 hrs)
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Rules related to E-Way Bill-As Per Notification No-27/2017 Dated 30-08-2017*-
1. *Consignment Value Exceeds Rs 50000*- Eway Bill to be generated in Form GST EWB-01
2. *Procedure*- Supplier will Will Part-A of Form GST EWB-01 and than Transporter will fill Part-B of Form GST EWB-01 before movement of Goods.
3. *Distance < 10 Km*- where the goods are transported for a distance of less than ten kilometres within the State or Union territory from the place of business of the transporter finally to the place of business of the consignee, the details of conveyance may not be updated in Part-B of the e-way bill.
4. *Unique e-way bill number (EBN)*- Upon generation of the e-way bill on the common portal, a unique e-way bill number (EBN) shall be made available to the *supplier*, the *recipient* and the *transporter* on the common portal.
5. *Transporter transferring goods from one conveyance to another* - in the course of transit shall, before such transfer and further movement of goods, update details of conveyance in the e-way bill on the common portal in FORM GST EWB-01.
6. *Multiple consignments in one conveyance*- A consolidated e-way bill in FORM GST EWB-02 has to be generated by the Transporter which contains the serial No of all the individual Consignments.
7. *Cancellation of E-way Bill*- If Goods are not transported after generation of E-way Bill than it need to be cancelled with 24hrs of its generation
8. *Validity of E-way Bill*- Upto 100km one day and additional 1 Day for each additional 100 Km
9. *No E-way Bill is Required in the following cases*- Goods Specified in Annexure to E-Way Rules, Goods Transported by Non-motorised Conveyance,
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CBDT has extended due date of filing of ITRs & Tax Audit Report due for filing on 30.09.2017 to 31.10.2017. Order U/s 119 of the IT Act, 1961, Dated.31.08.2017.
Deadline for linking PAN with Aadhaar has been extended 31.10.2017.
The government has notified the e-way bill keeping some items of mass consumption such as vegetables, fruits, food grains, meat, bread, curd, books and jewellery out of its ambit. It is required to transport any item worth more than Rs 50,000 within the country.
The promoters of at least two dozen of the 200 companies that have been compulsorily delisted by the BSE plan to file a writ petition against the SEBI and the stock exchange.
The Central Government, has notified the rules to prevent the tampering of Mobile Device Equipment Identification Number which may be called as the prevention of tampering of the Mobile Device Equipment Identification Number, Rules, 2017.
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# *CBDT* has EXTENDED Due Date of filing of ITRs & TAR due for filing on 30 SEP 2017 to 31 OCT 2017 - Order U/s 119 of the IT Act, dt.31.08.2017.
# *GSTR1* for the m/o JUL 2017 can be uploaded from TODAY till 5th Sep, 2017. GSTR-2 & GSTR-3 for JUL can be filed b/w 6-10 and 11-15 SEP respectively.
# *CBDT* has EXTENDED PAN-AADHAAR linking deadline from 31 AUG 2017 to 31 DEC 2017.
# *GST*: CGST (Sixth Amendment) Rules, 2017 - *Movement of goods and generation of e-Way bill - To be effective from the date to be notified*.
# *CBDT*: ₹2.89 Lac Crore deposited by 9.72 Lac persons in 13.33 Lac accounts post-DeMon under IT radar.
# *CBDT*: Properties worth ₹ 14,000 Crore have come under the scanner of the IT Deptt. that launched a major offensive against tax evaders post DeMon.
# *GDP* growth slows down to 5.7% in Q1-FY2017-18 Vs 6.1% growth in Q4-FY2016-17.
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FAQ on E-commerce
But is pertinent to economy at large, so selected.
Question 22:
GST requires a dealer to maintain a consecutive
serial number for invoices. If we are supplying from multiple
locations, do we need to centrally maintain the invoice
numbers serially?
Answer: Section 46 of the CGST Rules, 2017 provides that
invoice may have “a consecutive serial number not exceeding
sixteen characters, in one or multiple series, containing
alphabets or numerals or special characters hyphen or dash
and slash symbolised as “-” and “/” respectively, and any
combination thereof, unique for a financial year”. Therefore, a
supplier can have multiple series for the same year, so long as
the same series is not used across financial years. Therefore,
you may have a different invoice series for each location
having consecutive serial numbers running across that series.
Thanks For Reading