Key Points regarding GST Compiled From FAQs
1. Hotels can charge CGST+SGST only, they cannot charge IGST.
2. If any Bills related to july month has not been taken in GSTR-3B than the same can be taken in Next Month Return
3. Person who has taken Composition Scheme want to go to Normal Scheme can do so by filling CMP(04)
4. GST charged by Banks on bank charges can be claimed as ITC on the basis of statement itself. No separate Invoice is required.
5. Import of services is under RCM and to be shown in table 3 in GSTR-3B, Import of Goods is not under RCM and IGST is required to be Paid after filing BOE and this to be shown in table 4 in GSTR-3B
6. Royalty Paid to Author of books is covered under RCM and therefore Publisher required to pay GST under RCM on payment of Royalty
7. If a person have both Domestic and Export sale than the Whole ITC can be adjusted for payment of Liability on Domestic Sales because export is zero rated Supply
8. Free samples given are not subject to GST but ITC on Input used has to be reversed
9. Transferring Capital Goods to another state for Construction Purpose and after completing the work taking back. In this case IGST will be charged and ITC if it can be taken in destination State
10. Goods sold on High Sea Sale Basis outside India not required to be reported in GSTR-3B
11. IGST can be used for payment of IGST, CGST and SGST in this order only
12. CGST can be used for payment of CGST and IGST in that order only
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#GSTUPDATES
Changing Contact No. and Email ID of Authorized Person:
Process of changing the email and mobile number of the primary authorized signatories mentioned at the time of enrolment or new registration.
Hence given below the steps which need to be followed by the user taxpayer for change of email and mobile number:-
Step -1 Login with your user id and password,
Step-2 Click on the registration bar and select the non-core amendment,
Step -3 Click on the authorized signatory tab,
Step-4 Add new authorized signatory whose email and mobile number user wants to use,
Step -5 Go to verification tab and submit the application.
Step-6 After submission of application please wait for sometime ( 15 minutes)
Step 7 Login again with user id and password,
Step 8- Go to the authorized signatory tab – deselect the primary authorized signatory check box,
Step 9 – Select the newly added authorized signatory as primary authorized signatory,
(Important- Older mobile and email id will be pre fetched by the system. Please ensure to change the mobile and email id to which you want to add.)
Step 10- Go to the verification tab and submit,
(Note For Company /LLP DSC will be allowed. For EVC submission, OTP will come on newly added email/mobile number)
Kindly follow the above mentioned steps and also instruct the taxpayer to follow the steps.
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Govt Explains Appeals and Review Mechanism under GST [Read Concept Note]
Read more at: http://www.taxscan.in/govt-explains-appeals-review-mechanism-gst/11174/
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Concepts of Inspection, Search, Seizure & Arrest under GST Explained
Read more at: http://www.taxscan.in/concepts-inspection-search-seizure-arrest-gst-explained/11183/
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Kerala HC Permits Release of Seized Goods on payment of 50% of demand as per GST Laws [Read Judgment]
Read more at: http://www.taxscan.in/kerala-hc-permits-release-seized-goods-payment-50-demand-per-gst-laws-read-judgment/11169/
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Govt Explains Appeals and Review Mechanism under GST [Read Concept Note]
Read more at: http://www.taxscan.in/govt-explains-appeals-review-mechanism-gst/11174/
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Registration Window for GST Composition Scheme Open Now: Traders can register till 30th Sept.
Read more at: http://www.taxscan.in/registration-window-gst-composition-scheme-open-now-traders-can-register-till-30th-sept/11180/
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Notification 34/2017
1. New rule 120A has been inserted for revision of Tran 1 once.
2. Cenvat credit reversed under service tax law paid subsequently within 3 months can be reclaimed vide sec 140 (9) of cgst act. Form Tran 1 has been amended for claiming the same and it can be claimed through column 6 of table 5(a).
3. Credit through CTD can be claimed in Table 7A and shall also file Tran 3.
4. Rule 138 regarding waybill has been amended and a proviso has been inserted that where goods are sent by principal to job worker from one state to another eway bill shall be generated by principal irrespective of the value of the consignment.
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: The Central Board of Excise and Customs (CBEC) on Friday notified that GST TRANS-1, i.e., the returns for transitional credit can be revised for once.
TRANS-1 is the form that businesses had to file to claim transitional credit under GST.
Earlier, both the Government and the GST Council had been puzzled by the input tax credit claims of over Rs.65,000 crore for Central Goods and Services Tax (CGST) for July.
Following this, the Central Board of Excise and Customs (CBEC) has asked the officials to verify such claims thoroughly.
In a circular issued to its officials, the Board expressed that “The credit specifically excluded under section 17(5) of the CGST Act is not eligible to be carried forward. The possibility of claiming ineligible credit due to mistake or confusion cannot be ruled out,”
The Board also directed its field formations to check that only eligible credit has been carried forward.
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Govt Explains Appeals and Review Mechanism under GST [Read Concept Note]
Read more at: http://www.taxscan.in/govt-explains-appeals-review-mechanism-gst/11174/
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Please find below updates on release of new functionality and production defect fix :
1) Opt in for composition levy for current financial year w.e.f from 1st October is available in production now.
2) RC was being generated without GSTIN, this defect has been fixed and deployed to production last night. RC generated so far will be regenerated by tomorrow EOD.
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Registration Window for GST Composition Scheme Open Now: Traders can register till 30th Sept.
Read more at: http://www.taxscan.in/registration-window-gst-composition-scheme-open-now-traders-can-register-till-30th-sept/11180/
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🌺 *Articleship Can be Commenced After Passing Any Group in IPCC:*
👉 Till yesterday, students who have cleared First Group of CA IPCC is eligible to join Articleship Training.
👉 For students registered under the new CA Syllabus, ICAI changed this rule such that, even if you clear 1st or 2nd Group of IPCC, you can join Practical Training.
👉 Now, Starting today, ICAI has extended this rule to Old Syllabus students also. So, now anyone who has cleared either of IPCC Groups can immediately join Articleship.
👉 There are around 16,000 students who have already cleared IPCC Group-2, but are waiting to pass IPCC Group1, so that they can join articleship.
👉 Now, this new rule is going to benefit all those students and also students going to appear in the upcoming exams too.
👉 Note that, you have to complete IT and OP first before you can join the articleship.
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GST: Tamil Nadu to bring New Guidelines for Government Works Contract
Read more at: http://www.taxscan.in/gst-tamil-nadu-bring-new-guidelines-government-works-contract/11167/
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ITC Rules for Capital Goods under GST*
One of the critical aspects of the Goods and Services Tax, or GST, is the availability of input tax credit on capital goods used for manufacturing activities. ITC Rules for Capital Goods under GST have been prescribed which is to be followed strictly.
Manufacturing contributes a major part to our country’s GDP and initiatives such as Make in India, Digital India are going to boost it further.
The GST Council has agreed upon rules related to transition, input credit, registration as well as other features of the tax. In this article, we shall give you our guide on ITC Rules for Capital Goods under GST.
*ITC Rules for Capital Goods under GST*
Below are the high level rules for determination of Input Tax Credit (ITC) w.r.t. Capital Goods and reversal if any:
A. Credit of Input Tax will not be available on the following:
i. Capital Goods used exclusively for effecting exempt supplies
ii. Capital Goods used exclusively for non-business (personal) activity
B. Credit of Input Tax will be available in totality where Capital Goods have been used for effecting taxable supplies and business activity without any restrictions
C. Amount of input tax referred in above points A and B must be indicated in Form GSTR-2 and however only point B will be credited to electronic credit ledger.
D. Where Capital Goods is used commonly for exempt and taxable supplies and/or business and non-business activity the credit of input tax shall be calculated in the following manner:
Such amount shall be credited to Electronic Credit Ledger
Useful life of such capital good shall be taken to be 5 years from the date of purchase
Now the total amount of input tax credited to Electronic Credit Ledger w.r.t. whole useful life such common capital good shall be distributed over the useful life

4. The above amount shall be calculated for all such common capital goods for every tax period namely a month
5. The amount of credit to be added to output tax liability attributable to exempt supplies out of input tax for common use of capital good shall be
6. Remaining amount after deducting credit attributable towards exempt supplies will be allowed as ITC
7. the above calculations must be done separately for:
Central tax
State Tax
Union Territory Tax
Integrated Tax
E. Where a capital good which was earlier used or intended to be exclusively used for:
Non- business purpose
Effecting exempt supplies
Later to be used commonly for:
Business and non-business purpose
Effecting taxable and exempt supplies
Input tax to be credited to electronic credit ledger would be:
= Input Tax – 5% of Input tax for every quarter or part thereof
Let us understand the situation through an example
Mr. Avinash bought a Capital Good intended to be used for effecting exempt supplies only, for Rs 1,00,000/- paying Rs 18,000 as input tax on 01/04/2017 and now on 15/11/2018 he wishes to use the capital good commonly for taxable and exempt supplies.
Now the eligible common input tax credit will be calculated as follows
= Input Tax – 5% of Input tax for every quarter or part thereof
= 18,000 – 5% of 18000 * 3 quarters
= 18,000 – 2,700
= 15,300
Now Mr. Avinash will credit Rs 15,300 to Electronic Credit ledger and follow the steps shown in point D to calculate the input tax attributable to exempt supplies out of common credit
F. Where a capital good which was earlier used, or intended to be exclusively used for effecting taxable supplies and business purpose
Later to be used commonly for
Business and non-business purpose
Effecting taxable and exempt supplies
Input tax to be credited to electronic credit ledger would be:
= Input Tax – 5% of Input tax for every quarter or part thereof
*Manner of reversal of credit under certain circumstances*
Under the following circumstances attributable credit of input tax will be added to output tax liability:
Where a normal taxpayer opts to pay tax under composition scheme or goods and/or services supplied by him become exempt
2. In case of supply of capital goods or plant and machinery, on which input tax credit has been taken
3. Every registered person whose registration is cancelled
Input tax credit involved in the remaining useful life in months shall be computed on pro-rata basis, taking the useful life as five years.
Example
Capital goods have been in use for 4 years, 6 month and 15 days.
The useful remaining life in months= 5 months ignoring a part of the month
Input tax credit taken on such capital goods= Ç
Input tax credit attributable to remaining useful life= C multiplied by 5/60
The above calculation must be done separately for integrated tax and central tax.
The amount determined must form part of output tax liability and furnished in:
Where a normal taxpayer opts to pay tax under composition scheme or goods and/or services supplied by him become exempt- FORM GST ITC-03
Registration is cancelled- FORM GSTR-10
Along with certification from a practicing chartered accountant or cost accountant.
In case of sale of capital good, where the amount determined as above is greater than the tax on transaction value of such supply, the amount determined as above will be added to output tax liability and details to be furnished in FORM GSTR1
*Capital goods send on job work*
Where a capital good including plant & machinery have been send to a job worker for job work, credit of input tax shall be allowed to the principal manufacturer.
Such goods must be received back within a period of 3 years of being send out or else it shall be treated as supply on the date on which goods was earlier send and tax would be payable along with interest for late payment of taxes
Where capital goods have been send directly to job worker after purchase of such capital goods, the period of three years would be calculated from the date of receipt of such goods by the job worker.
All the above provisions will not apply to moulds and dies, jigs and fixtures, or tools sent out to a job worker for job work.
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Kerala HC Permits Release of Seized Goods on payment of 50% of demand as per GST Laws [Read Judgment]
Read more at: http://www.taxscan.in/kerala-hc-permits-release-seized-goods-payment-50-demand-per-gst-laws-read-judgment/11169/
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GST (GOODS AND SERVICES TAX)
*GST - REGISTRATION*
*Introduction*
In any tax system, registration is the most fundamental requirement for identification of tax payers ensuring tax compliance in the economy. Registration of any business entity under the GST Law implies obtaining a unique number from the concerned tax authorities for the purpose of collecting
tax on behalf of the government and to avail Input Tax Credit
for the taxes on his inward supplies. Without registration, a person can neither collect tax from his customers nor claim
any input Tax Credit of tax paid by him.
*Need and advantages of registration*
Registration will confer the following advantages to a
taxpayer:
• He is legally recognized as supplier of goods or services.
• He is legally authorized to collect taxes from his customers and pass on the credit of the taxes paid on the goods or services supplied to the purchasers/recipients.
• He can claim Input Tax Credit of taxes paid and can utilize
the same for payment of taxes due on supply of goods or services.
• Seamless flow of Input Tax Credit from suppliers to recipients at the national level.
*Liability to register*
GST being a tax on the event of “supply”, every supplier needs to get registered. However, small businesses having all India aggregate turnover below Rupees 20 lakh (10 lakh if business is in Assam, Arunachal Pradesh, J&K, Himachal Pradesh, Uttarakhand, Manipur, Mizoram, Sikkim, Meghalaya, Nagaland or Tripura) need not register. The small businesses, having turnover below the threshold limit can, however, voluntarily opt to register.
The aggregate turnover includes supplies made by him on behalf of his principals, but excludes the value of job-worked goods if he is a job worker. But persons who are engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax or an agriculturist, to the extent of supply of produce out of cultivation of land are not liable to register under GST.
*Nature of registration*
The registration in GST is PAN based and State specific. Supplier has to register in each of such State or Union territory from where he effects supply. In GST registration, the supplier is allotted a 15-digit GST identification number called “GSTIN”, and a certificate of registration incorporating therein this GSTIN is made available to the applicant on the GSTN common portal. The first 2 digits of the GSTIN is the State code, next 10 digits are the PAN of the legal entity, the
next two digits are for entity code, and the last digit is check
sum number. Registration under GST is not tax specific, which means that there is single registration for all the taxes i.e. CGST, SGST/UTGST, IGST and cesses.
A given PAN based legal entity would have one GSTIN per
State, that means a business entity having its branches in multiple States will have to take separate State wise registration for the branches in different States. But within a State, an entity with different branches would have single registration wherein it can declare one place as principal
place of business and other branches as additional place
of business. However, a business entity having separate
business verticals (as defined in section 2 (18) of the CGST Act,
2017) in a state may obtain separate registration for each of its business verticals.
Generally, the liability to register under GST arises when you are a supplier within the meaning of the term, and also your aggregate turn over in the financial year is above the
exemption threshold of 20 lakh rupees. However, the GST law
enlists certain categories of suppliers who are required to get *compulsory registration* irrespective of their turnover that is to say, the threshold exemption of 20 lakh is not available to them. Some of such suppliers who need to *register*
*compulsorily* irrespective of the size of their turnover are:
• 🐌Inter-state suppliers
• 🐌A person receiving supplies on which tax is payable by
recipient on reverse charge basis
• 🐌Casual taxable person who is not having fixed place of
business in the State or Union Territory from where he
wants to make supply
• 🐌Non-resident taxable persons who are not having fixed place of business in India
• 🐌A person who supplies on behalf of some other taxable
person (i.e. an Agent of some Principal)
• 🐌E-commerce operators, who provide platform to the suppliers to supply through it
• 🐌Suppliers who supply through an e-commerce operator
• 🐌Those ecommerce operators who are notified as liable for GST payment under Section 9(5)
• 🐌TDS Deductor
• 🐌Those supplying online information and data base access or retrieval services from outside India to a non-registered
person in India.
A Casual taxable person is one who has a registered business in some State in India, but wants to effect supplies from some other State in which he is not having any fixed place of business. Such person needs to register in the State
from where he seeks to supply as a Casual taxable person.
A Non-Resident taxable person is one who is a foreigner and occasionally wants to effect taxable supplies from any
State in India, and for that he needs GST registration. GST law prescribes special procedure for registration, as also for extension of the operation period of such Casual or Non-Resident taxable persons. They have to apply for registration at least five days in advance before making any
supply. Also, registration is granted to them or period of operation is extended only after they make advance deposit of the estimated tax liability. In respect of supplies to some notified agencies of United Nations organisation, multinational financial institutions and other organisations, a unique identification number (UIN) is
issued.
*Standardisation of procedures*
A total of 30 forms/formats have been prescribed in the GST registration rules. For every process in the registration
chain such as application for registration, acknowledgment,
query, rejection, registration certificate, show cause notice
for cancellation, reply, cancellation, amendment, field visit report etc, there are standard formats. This will make the
process uniform all over the country. The decision making
process will also be fast. Strict time lines have been stipulated
for completion of different stages of registration process.
An application has to be submitted online through the common portal (GSTN) within thirty days from the date when liability to register arose.
The Casual and Non-Resident taxable persons need to apply at least five days prior to the commencement of the business. For transferee of a business as going concern, the liability to register arises on the date of transfer.
The Proper Officer has to either raise a query or approve the
grant of registration within three working days failing which,
registration would be considered as deemed to have been approved. The applicant would have to respond within seven working days starting from the fourth day of filing the original application. The Proper Officer would have to grant or reject the application for registration within seven working days
thereafter.
*Amendment of registration*
Except for the changes in some core information in the registration application, a taxable person shall be able to make amendments without requiring any specific approval from the tax authority. In case the change is for legal name of the business, or the State of place of business or additional place of business, the taxable person will apply for amendment within 1 days of the event necessitating the change. The
Proper Officer, then, will approve the amendment within the next 15 days. For other changes like the name of day-to-day
functionaries, e-mail IDs, mobile numbers etc. no approval
of the Proper Officer is required, and the amendment can be
affected by the taxable person on his own on the common portal.
*Cancellation of registration*
The GST law provides for two scenarios where cancellation
of registration can take place;
-the one when the taxable person no more requires it (voluntary cancellation), and
-another when the Proper Officer considers the registration liable for cancellation in view of certain specified defaults (Suo-motu cancellation) like when the registrant is not doing business from the registered place of business or if he issues tax invoice without making the supply of goods or services.
The taxable person desirous of cancellation of registration will apply on the common portal within 30 days of the event warranting cancellation. He will also declare in the application, the stock held on the date with effect from which he seeks cancellation. He will also work out and declare the quantum of dues of payments and credit reversal, and the particulars of
payments made towards discharge of such liabilities. In case of voluntary registration (taken despite not being liable for), no cancellation is allowed until expiry of one year from the
effective date of registration. If satisfied, the Proper Officer has to cancel the registration within 30 days from the date of application or the date of reply to notice (if issued, when rejection is concluded by the officer).
*Revocation of cancellation*
In case where registration is cancelled suo-motu by the Proper
Officer, the taxable person can apply within 30 days of service of cancellation order, requesting the officer for revoking the
cancellation ordered by him. However, before applying, the
person has to make good the defaults (by filing all pending
returns, making payment of all dues and so) for which the registration was cancelled by the officer. If satisfied, the proper officer will revoke the cancellation earlier ordered by him. However, if the officer concludes to reject the request for revocation of cancellation, he will first observe the principle of natural justice by way of issuing notice to the person and hearing him on the issue.
*Physical verification for registration*
Physical verification is to be resorted to only where it is found
necessary in the subjective satisfaction of the proper officer. If at all, it is felt necessary, it will be undertaken only after granting the registration, and the verification report along with the supporting documents and photographs, shall
have to be uploaded on the common portal within fifteen
working days. .
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