Update on GST
1. New rates to be applicable from 15.11.2017 prospectively after notification.
2. 178 items shifted from 28% slab to lower slabs leaving apart sin goods and cess applicable goods.
3. Restaurants to have no ITC. Rate of tax shall be 5%. Restaurants in star hotels-18% with ITC. Other hotels -5% without ITC.
4. Outdoor catering -18% with ITC.
5. Gstr-3b to continue till 31.03.2018.
6. Nil returns to become very easy.
7. Only filing of GSTR-1 in current year for all taxpayers. Below 1.5 crore- 31st dec for July to sept, Qtr3- 15.02.2018, Qtr4- 30.04.18
8. Other taxpayers file GSTR 1 for July-oct by 31st dec 2017 then from November by 10th of next month - only GSTR 1.
9. Gstr-1 to be matched with GSTR-3B.
10. Penalty on late filing, nil return- Rs. 20 per day. Others- Rs. 50 per day.
11. Composition: July-sept- ITC-05 by 31.12.2017 and GSTR-04 by 24.12.2017
12. *TRAN-01 to be filed by 31.12.2017.*
13. Composition rate of 1% for manufacturers.
14. Composition scheme for services up to Rs. 5 Lakhs in addition to supply of goods.
15. Composition limit to be increased to Rs. 1.5 crores only upon amendment of law.
16. 1% composition only on taxable and not exempt goods. Dealer dealing in exempted goods allowed to opt for composition.
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GST Council Reduces Fine for Late Filing of Return to Rs. 20 from Rs. 200 per day
Read more at: http://www.taxscan.in/gst-council-reduces-fine-late-filing-return-rs-20-rs-200-per-day/13220/
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Composition Scheme: #GST Council recommends Uniform Rate of 1 % on all Manufacturers and Traders #GSTNews #TaxNews
Read more at: http://www.taxscan.in/composition-scheme-gst-council-recommends-uniform-rate-1-manufacturers-traders/13222/
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*BIG Relief & Decision* Taken at 2 Days 23rd GST Council Meeting concluded on 10 NOV 2017 at Guwahati:
# 178 items have been moved from 28% to 18% bracket w.e.f.15 NOV 2017. Items from construction such as marble, flooring will be included in the 18% tax slab. Only 50 goods will stay in the highest slab of 28%.
# 6 items have been moved from 18% bracket to 5% bracket w.e.f. 15 NOV 2017.
# 8 items have been moved from 12% bracket to 5% bracket w.e.f. 15 NOV 2017.
# 6 items have been moved from 5% bracket to NIL bracket w.e.f. 15 NOV 2017.
# GST on wet grinders, armoured vehicles reduced from 28% to 12%.
# All restaurants (AC & non-AC) will come under the 5% tax bracket, without Input Tax Credit (ITC).
# Hotels with tariffs over Rs 7,500/night would be taxed at 18% as per the current norms. Other items like outdoor catering will get a levy of 18%.
# Composition Fee for Manufacturers & Traders made uniform at 1%. Restaurants to be continued at 5% under Composition or 5% GST as it chose.
# The threshold for Composition Limit has been increased to Rs.2 Crores including exempt supplies. 1% Fee to be levied only on taxable supplies and not exempt supplies.
# GSTR-3B to be continued to be filed till 31 March 2018.
# All taxpayers to file only GSTR-1 in the year 2017-18. The Council may have to take another look at forms for GSTR 1, GSTR 2 & GSTR 3 going forward.
# Date of filing of GSTR-04 (Composition Dealer) for the m/o July, 2017 has been extended to 24 DEC 2017.
# Date of filing of TRAN-1 has been extended to 31 DEC 2017.
# Returns filing process to be made simpler by making it interactive.
# Late filing penalty for 'Nil returns' cut to Rs.20/day from Rs.200/day.
# Late filing penalty without ‘Nil Returns’ cut Rs.50/day from Rs.200/day.
# Taxpayers with turnover less than Rs.1 crore should file invoices every quarter. Taxpayers with turnover above Rs.1 cr should file invoices every month.
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Key Points From 23rd Council Meeting Today*-
1. *178 items have been moved from 28 per cent to 18* like chewing gums, Detergent, marble floorings, toiletries to 18 per cent from existing 28 per cent.
2. *Restaurants in starred-hotels will charge 18 per cent* tax with input tax credit, those in *lower category hotels to charge 5 per cent* GST without ITC, Jaitley said.
3. *Tax rate on 13 items reduced from 18 per cent to 12 per cent*, while tax rates have been reduced to 5 per cent on five items from 18 per cent. Besides, rate on 6 items lowered to zero from 5 per cent
4. *Late Fees for the months of July, August and Sept, 2017 for GSTR-3B waived in all such cases*. It will be re-credited to their Electronic Cash Ledger under “Tax” head instead of “Fee” head so as to enable them to use that amount for discharge of their future tax liabilities. The software changes for this would be made and thereafter this decision will be implemented.
5. *For subsequent months*, i.e. October 2017 onwards, the amount of late fee payable by a taxpayer whose tax liability for that month was ‘NIL’will be Rs. 20/- per day (Rs. 10/- per day eachunder CGST & SGST Acts) instead of Rs. 200/- per day (Rs. 100/- per day eachunder CGST & SGST Acts).
6. A facility for *manual filing of application for advance ruling* is being introduced for the time being.
7. *Exports of services to Nepal and Bhutan* have already been exempted from GST. It has now been decided that such exporters will also be eligible for claiming Input Tax Creditin respect of goods or services used for effecting such exempt supply of servicesto Nepal and Bhutan.
8. *Due dates for furnishing the following forms shall be extended as under*: -GST ITC-04 for the quarter July-September, 2017 25.10.2017 ; GSTR-4 for the quarter July-September, 2017 From 18.10.2017 To 24.12.2017; GSTR-5 for July, 2017 To 20.08.2017 or 7 days from the last date of registration whichever is earlier 11.12.2017; GSTR-5A for July, 2017 20.08.2017 To 15.12.2017; GSTR-6 for July, 2017 13.08.2017 To 31.12.2017; TRAN-1 30.09.2017 To 31.12.2017 (One-time option of revision also to be given till this date)
9. *For Foreign Diplomatic Missions / UN Organizations, a centralized UIN will be issued* to every Foreign Diplomatic Mission / UN Organization by the Central Government and all compliance for such agencies will be done by the Central Government in coordination with the Ministry of External Affairs.
10. *Taxpayers with annual aggregate turnover uptoRs. 1.5 crore* need to file GSTR-1 on quarterly basis as per following frequency:- Jul- Sep 31st by Dec 2017; Oct- Dec 15th by Feb 2018; Jan- Mar 30th by April 2018
11. *Taxpayers with annual aggregate turnover more than Rs. 1.5 crore* need to file GSTR-1 on monthly basis as per following frequency: -Jul- Oct 31st by Dec 2017; Nov by 10th Jan 2018; Dec by 10th Feb 2018; Jan 10th by Mar 2018; Feb 10th by Apr 2018; Mar 10th by May 2018
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GST Council meeting Highlights*
*Revision in Late fee*
1) For nil return from 200 Rs per day to Rs 20 per day
2) For others , The late fees Has been revised from Rs 200 to Rs 50 Per day
*Revision in Timelines for filling return*
GSTR 2 & 3 is abolished till March 2018
For Asseses having Turnover upto Rs 1.5 Cr will file
1- GSTR 3B monthly
2- GSTR 1 - Quarterly
For assesses having Turnover more than 1.5 Cr will file
GSTR 3B- Monthly filling by 20th of the following month.
GSTR 1- Monthly
*Revision in due dates*
GSTR 4 shall have to file there return 24th December 2017. Form for GSTR 4 is already available online
GSTR 5- 11th Dec 2017
Trans 1 - 31st December 2017
*Changes in Composition Scheme*
COMPOSITION dealer shall have uniform rate of 1% for manufacturer and traders.
Restaurant Services will have a flat rate of 5%
COMPOSITION SCHEME will cover services of up to Rs 5 Lakhs in addition to the goods.
Threshold limit for COMPOSITION SCHEME will increase to 2 Cr (Necessary ammendments will be made in act). Once the act is ammended, the threshold limit will be Rs 1.5 Cr
The aggregate turnover will only cover the taxabale supplies and not exempt supplies for the purpose of computing tax @1%/5%.
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Depreciation is Allowable on Goodwill even if it was not shown in Balance Sheet: ITAT Vishakhapatnam [Read Order]
Read more at: http://www.taxscan.in/depreciation-allowable-goodwill-even-not-shown-balance-sheet-itat-vishakhapatnam/13168/
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Salary Income Earned on Deputation Abroad not Taxable even if credited to Bank Account in India: ITAT [Read Order] #TaxNews #IncomeTax #Taxscan
Read more at: http://www.taxscan.in/salary-income-earned-deputation-abroad-even-salary-credited-bank-account-india-itat/13176/
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👉🏻Now, link all your insurance policies to Aadhaar and PAN.*
(In a directive that is likely to pose a huge logistical challenge to insurance providers, the regulator has made it mandatory for companies to link Aadhaar with every individual policy.)
👇🏻 👇🏻 👇🏻
https://goo.gl/xhtHC3
*👉🏻Global regulators want to limit accountants' say on audit rules.*
(Global regulators want to shake up how corporate audit rules are written to curb the influence of accountants and avoid any conflict of interest.)
👇🏻 👇🏻 👇🏻
https://goo.gl/GPzAhq
*👉🏻RBI release new outsourcing norms for NBFCs.*
(NBFCs cannot outsource core management functions like internal audit, strategic and compliance functions for know your customer (KYC) norms, sanction of loans and management of investment portfolio.)
👇🏻 👇🏻 👇🏻
https://goo.gl/wkV6Sw
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CBDT said the income accruing to Non-residents due to indirect transfer or redemption of shares in a multi-tier investment fund in India, held through upstream companies based abroad, will not be taxed, provided the fund already pays taxes on income.
CBDT releases draft amendments to rules relating to the registration of religious and charitable trusts as per changes in the I-T Act brought through the Finance Act of 2017 Religious and charitable trusts enjoying tax exemption will need to seek fresh registration under a new format announced.
Revision of TRAN-1 has been enabled on GSTN. On opening the TRAN-1 filed previously and scrolling till bottom, one can see the 'Re-Open' tab which has been added. Re-open button is given only for those users that have either submitted or filed TRAN-1 previously.
Supplier can accept missing invoices or changes by purchasers in GSTR- 1A for July 2017 from 1 to 6 Dec 2017. Circular 15/15/2017-GST of 6.11.17.
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*MCA*: Companies which are required to prepare their financial statements in accordance with Companies (Indian Accounting Standards) Rules, 2015 are also required to file AOC-4 XBRL – Notification (F.No.1/19/2013-CL-V-G.S.R.1372(E), dt.06.11.2017.
# *MCA* has notified the I&BBI (Fast Track Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2017 and the I&BBI (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2017.
# *FCRA*: The Union Ministry of Home Affairs has made it mandatory for all NGO's to register with Niti Aayog’s portal NGO Darpan, if they want to receive orhope to receive foreign funding.
# *IT*: Determination of remuneration to partners u/s 40(b) - Interest received on FDR of surplus funds cannot be considered as business income – CIT Vs Allen Career Institute (2017 (11) TMI 521 - Rajasthan HC).