😍 *Relief for Small and Medium Enterprises* 😍
👉 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.
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Press Information Bureau
Government of India
Ministry of Finance
(06-October, 2017 21:11 IST )
Recommendations made by the GST Council in its 22nd Meeting held today under Chairmanship of the Union Minister of Finance and Corporate Affairs, Shri Arun Jaitley in the national capital.
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.
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💰GST Council 👥Meeting Highlights📑*
⚪The Goods and Services Tax Council met on Friday to discuss providing relief to exporters and traders hit by the tax reform. Here are the highlights of the meeting:⚪
💰GST rate on some stationery items, diesel engine parts reduced to 18% from 28%, says finance minister.
💰GST on unbranded ayurvedic medicines to reduced from 12% to 5%
💰GST rates of 26 items were reviewed by the GST Council says Arun Jaitley. Tax on food items like sliced dry mangoes, khakra and chapati have been brought down from 12% to 5%.
💰GOM to re-look at 18% GST charge on AC restaurants with turnover more than Rs 1 crore: Arun Jaitley
💰Any person providing exempted service are eligible for compensation scheme, says finance minister.
💰SMEs with Rs 1 crore turnover can file quarterly returns Arun Jaitley. 90% of the assesses who have turnover less than Rs 1.5 Cr turnover to file quarterly returns
💰The limit for turnover in composition scheme raised from Rs 75 lakh to Rs 1 crore: Arun Jaitley.
💰The e-wallet credit will allow for GST, IGST, etc, while actual refund will offset this, says Finance minister.
💰For July exports, refund cheques will be processed by October 10 and for August exports, refund cheques will be processed by October 18 Arun Jaitley. There will be an e-wallet for each exporter and notional amount as an advance refund will be given; will be initiated on 1 April 2018 - Arun Jaitley.
💰Nominal 0.1% GST on exports, says finance minister.
💰One of the concerns flagged by representatives of states after the implementation of GST was over exports and small-scale sector, says finance minister.
💰Pattern of collection (of GST) is not clear after two months because it was a period of transition, says Arun Jaitley.
💰GST Council allows SMEs with a turnover of up to Rs 1.5 cr to file quarterly returns instead of monthly filings.
💰Any person buying jewellery above Rs 50,000 will not be required to submit PAN or Aadhar Card details, reports ANI news.
💰Any entity dealing in gems/ jewellery/ other high-value goods & has a turnover of Rs 2 Crore or more in a FY will not be covered under Prevention of money laundering act (PMLA), reports ANI.
💰GST of gas stove and consumer articles has been cut from the current 28 percent GST Council member Mauvin Godinho tells CNBC-TV18.
💰A committee set up under revenue secretary Hasmukh Adhia on the issues faced by exporters is likely to submit its preliminary report to the Council on Friday.
💰Govt revokes GST notification on gems and jewellery, separate notification to be issued separately after due consideration., reports ANI news agency.
💰Threshold for composition scheme in GST hiked from Rs 75 lakh to Rs 1 crore PTI quoting sources.
💰Domestic bourses saw their first weekly rise in three weeks as the Sensex on Friday soared over 222 points to end at an over two-week high of 31,814.22 and the Nifty closed near 10,000-level on across-the-spectrum buying led by metal stocks ahead of the GST Council meet outcome.
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DLF gets relief from Delhi HC as Capital Gain from Slump Sale is Not Taxable before 2000 [Read Order]
Read more at: http://www.taxscan.in/dlf-gets-relief-delhi-hc-capital-gain-slump-sale-not-taxable-2000/11765/
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Gujarat to Go Investor Friendly: Offers Tax Incentives under GST
Read more at: http://www.taxscan.in/gujarat-go-investor-friendly-offers-tax-incentives-gst/11816/
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Facility to export under LUT extended to all exporters and other points of clarification – Master Circular on exports
The GST Policy Wing of the Central Board of Excise and Customs vide Master Circular No. 8/8/2017-GST dated October 4, 2017, has issued a clarification on issues related to furnishing of Bond/Letter of Undertaking (“LUT”) for exports. Gist of the Master Circular is given as under for your easy digests:
Facility to export under LUT has been extended to all registered persons intending to supply goods/services for export without IGST: The facility of export under LUT has been now extended to all registered persons who intend to supply goods or services for export without payment of IGST except those who have been prosecuted for any offence under the CGST Act or IGST Act or any of the existing laws and the amount of tax evaded in such cases exceeds Rs. 250 Lakhs. Thus, earlier requirement of being a status holder and receiving a minimum foreign inward remittance of 10% of the export turnover in the preceding financial year which was not less than Rs. 1 crore has been dispensed with.
Validity of LUT: In case the goods are not exported within the time limit under Rule 96A(1) of the CGST Rules, 2017, and the registered person fails to pay the amount mentioned in the said sub-rule, the facility of export under LUT will be deemed to have been withdrawn. If the amount mentioned in the said sub-rule is paid subsequently, the facility of export under LUT shall be restored. Exports during the period from when the facility to export under LUT is withdrawn till the time the same is restored, shall be either on payment of the applicable IGST or under bond with bank guarantee.
Form for bond/LUT: Furnish the duly filled form GST RFD-11 to the jurisdictional Deputy/Assistant Commissioner having jurisdiction over their principal place of business. The LUT shall be furnished on the letter head of the registered person, in duplicate, and it shall be executed by the working partner, the Managing Director or the Company Secretary or the proprietor or by a person duly authorised by such working partner or Board of Directors of such company or proprietor. The bond, wherever required, shall be furnished on non-judicial stamp paper of the value as applicable in the State in which the bond is being furnished.
Documents for LUT: Self-declaration to the effect that the conditions of LUT (i.e. have been he has not been prosecuted) fulfilled shall be accepted unless there is specific information otherwise.
Time for acceptance of LUT/Bond: It is clarified that LUT/bond should be accepted within a period of 3 working days of its receipt along with the self-declaration by the exporter. If the LUT/bond is not accepted within a period of 3 working days from the date of submission, it shall deemed to be accepted.
Bank guarantee: Since the facility of export under LUT has been extended to all registered persons, bond will be required to be furnished by those persons who have been prosecuted for cases involving an amount exceeding Rs. 250 Lakhs. A bond, in all cases, shall be accompanied by a bank guarantee of 15% of the bond amount.
Clarification regarding running bond: The exporters shall furnish a running bond where the bond amount would cover the amount of self-assessed estimated tax liability on the export. The exporter shall ensure that the outstanding IGST liability on exports is within the bond amount. In case the bond amount is insufficient to cover the said liability in yet to be completed exports, the exporter shall furnish a fresh bond to cover such liability. The onus of maintaining the debit/credit entries of IGST in the running bond will lie with the exporter.
Sealing by officers: Till mandatory self-sealing is operationalized, sealing of containers, wherever required to be carried out under the supervision of the officer, shall be done under the supervision of the central excise officer having jurisdiction over the place of business where the sealing is required to be done
Purchases from manufacturer and Form CT-1: It is clarified that there is no provision for issuance of CT-1 form which enables merchant exporters to purchase goods from a manufacturer without payment of tax under the GST regime. The transaction between a manufacturer and a merchant exporter is in the nature of supply and the same would be subject to GST.
Transactions with EOUs: Zero rating is not applicable to supplies to EOUs and there is no special dispensation for them under GST regime. Therefore, supplies to EOUs are taxable like any other taxable supplies. EOUs, to the extent of exports, are eligible for zero rating like any other exporter.
Realization of export proceeds in Indian Rupee: It is clarified that the acceptance of LUT for supplies of goods to Nepal or Bhutan or SEZ developer or SEZ unit will be permissible irrespective of whether the payments are made in Indian currency or convertible foreign exchange as long as they are in accordance with the applicable RBI guidelines. It may also be noted that the supply of services to SEZ developer or SEZ unit under LUT will also be permissible on the same lines. The supply of services, however, to Nepal or Bhutan will be deemed to be export of services only if the payment for such services is received by the supplier in convertible foreign exchange.
Jurisdictional officer: The exporter is at liberty to furnish the LUT/bond before either the Central Tax Authority or the State Tax Authority till the administrative mechanism for assigning of taxpayers to the respective authority is implemented.
Note: The earlier Circular No. 2/2/2017 – GST dated 5th July, 2017, Circular No. 4/4/2017 – GST dated 7th July, 2017 and Circular No. 5/5/2017 – GST dated 11th August, 2017, are rescinded
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# *GST*: CBEC has notified Conditions and safeguards for furnishing a Letter of Undertaking in place of a Bond by a registered person who intends to supply goods or services for export without payment of integrated tax – Noti.No.37/2017-CT, dt.04.10.2017 & Cir.No.8/8/2017-GST, dt.04.10.2017.
# *GST*: Export of goods to Nepal or Bhutan or SEZ developer or SEZ unit will be permissible irrespective of whether the payments are made in Indian currency or convertible foreign exchange as long as they are in accordance with the applicable RBI guidelines – Cir.No.8/8/2017-GST, dt.04.10.2017.
# *ICAI* has come up with EOI for appointment of statutory & internal auditors for FY2017-18 at various locations. For details visit www.icai.org.
# *IT*: Condonation of delay - removal of office objections - As a result Revenue officials are grossly negligent, we hold that there is no sufficient cause for condoning this enormous delay - Bharati Vidyapeeth Vs CIT (2017 (10) TMI 178 - Bombay HC).
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No Relief to Virbhadra Singh: Himachal Pradesh HC dismisses CM’s Income Tax Appeal [Read Judgment]
Read more at: http://www.taxscan.in/no-relief-virbhadra-singh-himachal-pradesh-hc-dismisses-cms-income-tax-appeal/11810/
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No Penalty when Assessee not disclosed Income in Good Faith and Voluntarily Offers the same to Tax during proceedings: Bombay HC [Read Judgment]
Read more at: http://www.taxscan.in/no-penalty-assessee-not-disclosed-income-good-faith-voluntarily-offers-tax-proceedings-bombay-hc/11790/
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We can't stop troubles from coming towards us. But we can make sure that we do not offer them Chairs to sit on.
Nothing is small or big only will, desire & commitment make us the best.
E-proceeding facilities launched by IT Deptt. , to facilitate conduct of assessment proceeding electronically. CBDT Instruction No. 8/2017 dt. 29.09.2017.
ICAI Invites Suggestions for Pre-Budget Memorandum-2018 through Direct Taxes Committee, Indirect Taxes Committee and Committee on International Taxation to be submitted to the Ministry of Finance.
GST: ALL Exporters can give Letter of Undertaking to export goods without payment of IGST or submitting bond. Notification 37 & Circular 8/8/2017 of 4 Oct.
Secretarial audit may be extended to all material unlisted Indian subsidiaries along with all listed companies - SEBI Committee on Corporate Governance.
Recognitions to CS Professionals in Report of SEBI Committee on Corporate Governance submitted i.e. 5th Oct., 2017.
As many as 4.5 lakh directors may face disqualification for their association with shell companies, Union minister P P Chaudhary said as the government steps up its fight against the black money menace.
RBI issued Master Directions - Non-Banking Financial Company – Peer to Peer Lending Platform (Reserve Bank) Directions, 2017 vide RBI/DNBR/2017-18/57Master Direction DNBR (PD) 090/ 03.10.124/ 2017-18 October 04, 2017.
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📺 *Updates*
➡1. Arbitration and SARFAESI proceedings can go simultaneously for recovery of debts: Apex Court
➡2. No withholding of taxes from freight paid to agent of foreign shipping co. assessed under sec. 172
Kuloday Technopack (P.) Ltd. v. Income Tax Officer
➡3. Deeming fiction of sec. 50C won't apply while claiming relief under sec. 54F: ITAT
Income Tax Officer, Ward 2(1), Ajmer v. Raj Kumar Parashar
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GSTN Technical Glitches will be resolved by October End: GoM
Read more at: http://www.taxscan.in/gstn-technical-glitches-will-resolved-october-end-gom/11801/
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👉🏻Double taxation happening under GST - ICAI.*
(It claimed that provisions of reverse charge mechanism (RCM) and composition scheme are leading to cascading of taxes. Under GST, if a taxable person procures goods or services from an unregistered person, the recipient is liable to pay tax under RCM)
👇🏻 👇🏻 👇🏻
https://goo.gl/VPQCAu
*👉🏻IBBI notifies the IBBI (Information Utilities) (Amendment) Regulations, 2017.*
(IBBI had notified the IBBI (Information Utilities) Regulations, 2017 on 31st March, 2017. These regulations provided that ordinarily a person should not hold more than 10% of paid up equity share capital or voting power of an information utility, while allowing certain specified persons to hold up to 25%)
👇🏻 👇🏻 👇🏻
https://goo.gl/HgvkBK
*👉🏻ICAI president Nilesh Vikamsey's daughter found dead in Mumbai.*
(Prayer Meeting of Pallavi Nilesh Vikamsey will be held on 7th october between 3pm to 5pm at Yogi Sabhagrah, Dadar, Mumbai.)
👇🏻 👇🏻 👇🏻
https://goo.gl/46fbyn
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*#Important Update:*
Another feather was added in the cap of the ICSI when the report of SEBI Committee on Corporate Governance was submitted to SEBI.
The *SEBI Conmmittee on corporate governance* was constituted on June 2, 2017 under the Chairmanship of Mr. Uday Kotak with the aim of improving standards of corporate governance of listed companies in India. ICSI represented in this Committee and made notable contributions thereat. It is a moment of great pleasure that certain recommendations made by the Committee specifically pertain to the profession of Company Secretaries and once incorporated shall not only boost the profession but enhance its significance as well.
We are delighted to share the reconunendations made specifically pertaining to the CS Profession:
*Secretarial Audit*
The Committee recognizing that secretarial functions are critical to efficient board functioning recommended that Secretarial audit may be extended to all material unlisted Indian subsidiaries. This is in line with the theme of strengthening group oversight and improving compliance at a group level.
*Disclosures Pertaining to Disqualification of Directors*
The Committee felt that investors are often unaware whether the directors of the company have been debarred from acting as directors of a con1pany. Therefore, the Committee recommended that in the annual report, a certificate from a company secretary in practice be included providing that none of the directors on the board of the company have been debarred or disqualified from being appointed or continuing as directors of companies by the SEBI/MCA or any such statutory authority.
This bears significance particularly in the context of some of the recent ongoing industry issues.
*The Committee while defining senior management recommends that the term 'senior management' shall specifically include Company Secretary.*
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Advertisement on Common Use Items to attract Lower GST Rates
Read more at: http://www.taxscan.in/advertisement-common-use-items-attract-lower-gst-rates/11783/
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Relationships cannot be made with mood and conditions; they have to be maintained by feeling. So never make life as a deal but live it with a great feel.
Honest people alter their ideas to fit the truth. And dishonest people alter the truth to fit their ideas. Believe in honesty.
ICAI has come up with EOI for appointment of statutory and internal auditors for FY 2017-18 at various locations. For details visit www.icai.org.
MCA/ Government ready to crack on defaulting Companies not filling Cost Audit Report required under the Companies Act. Another set of Accountants under lens: ET.
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UAE VAT: w.e.f. 1st October, 2017 UAE has opened the registration for VAT. effective from 1st January 2018. All companies having annual turnover of more than AED 375000 are compulsorily required to get registered with FTA.
SEBI is looking to issue a more relaxed loan default disclosure framework. SEBI now plans to give up to a month’s time to companies for disclosing loan defaults and also make provision to explain the nature of the default.
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*CBEC Relaxes Norms for Exports under GST*: Exporters can Furnish Letter of Undertaking instead of Bond without Threshold Limit. it has been decided that the facility of furnishing Letter of Undertaking, in place of a bond, for exporting goods or services or both shall be allowed to exporters and no bank guarantee will be required
*GST: Advisory on claiming credit in TRAN 1* in respect of existing registrations - https://www.gst.gov.in/newsandupdates/read/143
*Service Tax:* Clarification on Transitional Issues arising with respect to payment of service tax after 30th June, 2017 Central Government vide Circular No. 207/5/2017 Dated September 28, 2017
*Case Study:* The partial disallowance of depreciation in the year under consideration in any case would not result into any evasion of tax. In short, the assessee would earn no benefit out of the reduced depreciation which can always be claimed in later years. – PCIT - Vadodara -1 Versus Gujarat Electricity Board
NIRC: *“Seminar on Transfer Pricing”* on Saturday 7th October, 2017 at Hotel The Park, Parliament Street, New Delhi for register visit www.nircseminars.org
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📺 *Updates*
➡1. CBEC eases norms; now all registered persons eligible to furnish LUT in lieu of bond for making exports.
➡2. Govt likely to approve anti-profiteering body under GST regime today
➡3. Non-payment of self-assessment tax attracts penalty though same may be paid subsequently by filing revised return
Claris Life Sciences Ltd. v. Deputy Commissioner of Income-tax, Ahmedabad
🙏�Thank you🙏�
Have a nice day
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*Legal Word of the Day :*
*PAROLE:*
*Meaning:*
n. 1) the release of a convicted criminal defendant after he/she has completed part of his/her prison sentence, based on the concept that during the period of parole, the released criminal can prove he/she is rehabilitated and can "make good" in society. A parole generally has a specific period and terms such as reporting to a parole officer, not associating with other ex-convicts, and staying out of trouble. Violation of the terms may result in revocation of parole and a return to prison to complete his/her sentence. 2) a promise by a prisoner of war that if released he will not take up arms again.
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