GST Council 27th Meeting Update dated 04-May-2018
GST council meet today. It was 27th meeting of GST council. There were two major decisions in GST Council today which were regarding *one monthly return* for all dealers except some dealers and *change in Shareholding Pattern of GSTN Network* . There were two more points discussed like incentive to promote digital payments and cess on sugar. Final Decision on these two shall be taken later.
Summary of today’s discussion is as follows:
1. *One Monthly Return* :
a. For all Taxpayers EXCEPT Composition dealers & dealers having NIL transactions shall file monthly return.
b. Return Filing dates shall be staggered based on turnover of registered person to manage load on IT System.
c. Composition dealers & dealers having NIL transactions shall have facility to file QUATERLY Return.
2. *Unidirectional Flow of Invoices* :
a. Invoices for B2B transaction shall need to use HSN at four digit level or more to achieve uniformity in the reporting systems.
b. Seller can upload invoices anytime during the month.
c. Buyer would also be able to continuously see the uploaded invoices during the month.
3. *Simple Return design and easy IT interface* :
a. The B2B dealers will have to fill invoicewise details of the outward supply made by them.
b. On the basis of invoicewise details, tax liability will be calculated automatically.
c. ITC shall be also calculated by the system on the basis of Invoices uploaded by the seller (as per above mentioned Point-2)
4. *No Automatic reversal of Credit* :
a. There shall not be any automatic reversal of ITC from buyer due to non-payment of tax by the seller.
b. In case of the *default in payment of tax by the seller* , recovery shall be made from seller .
c. However in case of exceptional situations reversal of credit from buyer shall also be the option before authorities. Such exceptional situations could be:
i. Dealer Missing
ii. Closure of Business
iii. Supplier not having adequate assets etc.
5. *TRANSITION* :
a. *Stage-1* : Present filing of GSTR-1 & GSTR-3B shall continue. GSTR-2 & GSTR-3 shall remain suspended.
b. *Stage-2* : The new return will have facility for invoice-wise data upload and also facility for claiming ITC on basis of self-declaration basis, as in case of GSTR-3B now.
c. *Stage-3* : After 6 months of Stage-2, *the facility of provisional credit will be withdrawn* and ITC shall be limited to the invoices uploaded by the seller.
6. *Content of Returns* :
a. Return shall be simplified also by reducing the content/information required to be filed.
b. Law Committee will finalize details of design of return.
7. *Change in Shareholding Pattern of GSTN*
a. Currently Central Government and State Governments holds 24.50% each and remaining 51% are held by Non-Government Institutions.
b. Council has decided to acquire entire 51% equity held by Non-Government Institutions in GSTN equally by the Centre & the State governments.
c. Post acquisitions GSTN Board shall be allowed to continue the existing staff at existing terms and conditions for the period upto 5 years.
8. *Incentive to promote Digital Transactions*
a. Council has discussed (NOT FINALIZED) in detail the proposal of a concession of 2% in GST Rate on B2B supplies for which payment is made through cheque or digital mode.
b. Where GST Rate is 3% or more, 1% each applicable from CGST & SGST.
c. Maximum celling of incentive is Rs. 100/- per transactions.
9. *Imposition of Sugar Cess over and above 5% GST*
a. Keeping in view of record production of sugar in the current sugar season and consequent depressed sugar prices, Council discussed the *imposition of sugar cess* .
b. Council has recommended for *setting up of a Group of Ministers from State* to look into the proposal & *make recommendations within two weeks* .
(all announcement are subject to notification by CBEC)
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GSTAN 1 Relief: Madhya Pradesh HC directs Petitioner to approach Govt’s IT Grievance Redressal Committee* [Read Judgment]
Read more at: http://www.taxscan.in/tran-1-relief-madhya-pradhesh-hc-it-grievance-redressal-committee/22421/
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*Cabinet approves Mutual Recognition Agreement between the ICAI and South African Institute of Chartered Accountants*
Read more at: http://www.taxscan.in/cabinet-approves-mutual-recognition-agreement-icai-south-african-institute-chartered-accountants/22305/
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ICAI launches New IT Initiatives for Chartered Accountants and Students*
Read more at: http://www.taxscan.in/icai-new-chartered-accountants-students/22440/
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Waiver of loan not taxable as perquisite u/s 28(iv) if receipts were in nature of cash: Apex Court
2018] 93 taxmann.com 32 (SC)
IT : Waiver of loan for acquiring capital assets cannot be taxed as perquisite under section 28(iv) as receipt in hands of debtor/assessee are in form of cash/money and it also cannot be taxed as a remission of liability under section 41(1) as waiver of loan does not amount to cessation of trading liability
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[2018] 93 taxmann.com 32 (SC)
SUPREME COURT OF INDIA
Commissioner
v.
Mahindra And Mahindra Ltd.
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10-05-2018- Due date for filing GSTR -1 for the month of March 2018. Applicable for taxpayers with Annual Aggregate turnover more than 1.50 Crore (Rs. One Crore Fifty Lacs only)
20-05-2018 is the due date to file GSTR-3B for the m/o April. Also Pay due tax till this date.
31-05-2018- Due date for filing GSTR -1 for the month of April 2018 – Applicable for taxpayers with Annual Aggregate turnover More than 1.50 Crore (Rs. One Crore Fifty Lacs only).
31-05-2018 – Due date of GSTR-6 (filed by an input service distributor) for the months from July 2017 to April 2018.
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👉🏻SC Orders deletion of adverse remarks made by NCLAT against Resolution Professional*
(SC has directed deletion of adverse remarks made against a Resolution Professional (RP) registered with the IBBI by the NCLAT questioning his competence without any reasons)
👇🏻 👇🏻 👇🏻
https://goo.gl/87iHuU
*👉🏻Applicability of GST on Transfer of Tenancy Rights - CBIC*
(Services provided by outgoing tenant by way of surrendering tenancy rights against consideration in form of a portion of tenancy premium is also liable to GST. Circular No. 44/18/2018-CGST - Dated 02/05/2018)
👇🏻 👇🏻 👇🏻
https://goo.gl/1G4z1r
*👉🏻Cabinet approves Mutual Recognition Agreement between ICAI and SAICA*
(Union Cabinet has approved the Mutual Recognition Agreement between the Institute of Chartered Accountants of India (ICAI) and The South African Institute of Chartered Accountants (SAICA)
👇🏻 👇🏻 👇🏻
https://goo.gl/t9mtmk
*👉🏻Digital copy of E-way bill enough to give transporters right of way - HC*
(Tax authorities cannot seize goods just because they-’re not accompanied by a physical copy of the electronic way bill (eway bill) - HC)
👇🏻 👇🏻 👇🏻
https://goo.gl/temA5g
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📺 *Updates*
▶1. Payment to discharge contractual obligation to indemnify excise dept. couldn't be held as penal in nature.
Principal Commissioner of Income-tax, Jaipur-II v. Agribiotech Industries Ltd.
▶2. Surrender of tenancy rights against consideration liable to GST; Govt. clarifies
▶3. Order passed by CIT(A) granting stay subject to deposit of 10% of tax demand didn't require any interference: HC
St. Joseph's Granites v. Assistant Commissioner of Income Tax.
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Case Study: Lease equalisation charges allowable expense; ICAI Guidance Note carries great weight: CIT Vs Virtual Soft Systems Ltd. (Supreme Court of India)
*Cabinet approves Mutual Recognition Agreement between the ICAI and South African Institute of Chartered Accountants*
http://pib.nic.in/newsite/PrintRelease.aspx?relid=179064
NIRC: Seminar on Important Aspects of Companies Act in the Context of Corporate Governance on Saturday 05th May, 2018 at Hotel Royal Plaza, Ashoka Road, Janpath, New Delhi. Visit www.nirc-icai.org/seminars
*Insolvency and Bankruptcy Board of India invites comments from public on the Regulations notified under the Insolvency and Bankruptcy Code, 2016*
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Very Important decision on Name Restoration of company with ROC*
Name of co. to be restored when company expressed its willingness to file ROC returns with late fee
*[2018]92 taxmann . com 357*
*NCLT HYDERABAD BENCH*
*Ms. Rashmi Rajpal v. Klienz Herbal (P.) Ltd.*
*Decision:*
Where name of a company was struck off because of delay in filing statutory returns, reasons of which was explained, and, company had expressed its willingness to file all returns along with payment of prescribed fee to which ROC had no objection, name of company was to be restored
_For detailed facts and decision please click on the following link:_
http://www.camukeshbansal.com/Images/NCLT%20Decision.pdf
*
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CA ANZ Offers Unilateral Membership Scheme for ICAI Members based in Australia and New Zealand*
Read more at: http://www.taxscan.in/ca-anz-unilateral-membership-scheme-icai-members/22294/
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*Services Provided by Outgoing Tenant by Way of Surrendering Tenancy Rights for a Portion of Tenancy Premium is liable to GST: CBIC* [Read Circular]
Read more at: http://www.taxscan.in/services-provided-outgoing-tenant-surrendering-tenancy-rights-tenancy-premium-gst-cbic/22312/
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*Cabinet approves Mutual Recognition Agreement between the ICAI and South African Institute of Chartered Accountants*
Read more at: http://www.taxscan.in/cabinet-approves-mutual-recognition-agreement-icai-south-african-institute-chartered-accountants/22305/
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Credit available on Cement and Steel bars used in Structural Foundation to support Power Plant: CESTAT* [Read Order]
Read more at: http://www.taxscan.in/credit-available-cement-steel-bars-power-plant-cestat/22194/
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*Clearances Made on Payment of Excise Duty Can’t Be Considered as Exempt Service: CESTAT* [Read Order]
Read more at: http://www.taxscan.in/clearances-payment-excise-duty-considered-exempt-service-cestat/22252/
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CBDT to recognise transgenders as independent gender, new category amended in PAN form. Now, there will separate column for male, female and transgenders.
Date for the filing of DVAT Return for Q-4, 2017-18, Pertaining to Petroleum and Liquor Dealers, has been extended up to 13-05-2018, vide Circular No. 23, dated 27-04-2018.
GST Council has set Rs 12 trillion as the target for goods and services tax collections for the current financial year, buoyed by rising tax compliance in the first year of the new indirect tax regime.
Due dates for GSTR-1 for the month of March for Aggregate Annual Turnover Exceeding Rs. 1.5 Cr or opted to file Monthly Return is 10 May, 2018.
SEBI has barred 28 entities from the capital markets for sending out unauthenticated SMSes in bulk with misleading 'buy' recommendations to pump up trading volumes in the shares of Kalpa Commercial.
SEBI has made Amendment to SEBI w.r.t Monitoring of Foreign Investment limits in listed Indian companies. vide its Circular dated April 5, 2018.
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📺 *Updates*
▶1. Name of co. to be restored when company expressed its willingness to file returns with late fee.
Ms. Rashmi Rajpal v. Klienz Herbal (P.) Ltd.
▶2. Canteen facilities extended to employees to be deemed as taxable services under GST - AAR
https://gst.taxmann.com/fileopennew.aspx?id=105010000000015433&mode=home&page=
▶3. Export procedure under GST regime- A huge sigh of relief
https://gst.taxmann.com/topstories/105010000000015403/export-procedure-under-gst-regime-a-huge-sigh-of-relief.aspx
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Income Tax Deptt drive towards higher compliance has additional Rs 1.5 lakh crore in direct taxes during 2017-18 and get a record number of new filers. Now it’s chasing 65 lakh people who it suspects did not file returns last year as it hopes to expand the taxpayer base to over 9.3 crore.
Interest income from share application money received by a company is liable to be set off against public issue expenses” CIT Vs. M/s. Shree Rama Multi Tech Ltd., Supreme Court of India.
With the GST stabilising, TDS TCS provisions that had been put on hold till June 30 may be rolled out from July 1, 2018.
Circular No. 10/2018 - Customs issued by CBIC clarifying on the procedure to be followed by EOUs for importing goods without payment of duty.
Extension to 31.05.2018 of last date to file AOC-4 XBRL e-Forms using Ind AS. MCA General Circular No. 04/2018.
EPFO will now inform employees whose contributions have not been deposited by the employer for a given month in due time. Currently, EPFO only sends messages to employees whose contributions are credited into their EPF accounts.
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*Overseas Campus Placement Programme: ICAI to Tie-Up with Universities approved by Foreign Embassies*
Read more at: http://www.taxscan.in/overseas-campus-placement-programme-icai-universities-foreign-embassies/22137/
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*Incentive for Booking Space for Cargo with Shipping Lines does not Amount to Commission: CESTAT* [Read Order]
Read more at: http://www.taxscan.in/incentive-booking-space-cargo-shipping-commission-cestat/22161/
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*Overseas Campus Placement Programme: ICAI to Tie-Up with Universities approved by Foreign Embassies*
Read more at: http://www.taxscan.in/overseas-campus-placement-programme-icai-universities-foreign-embassies/22137/
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GST: Bombay HC Extends Due Date for Filing TRAN-1 for Identified Taxpayers* [Read Order]
Read more at: http://www.taxscan.in/gst-bombay-hc-extends-due-date-filing-tran-1-identified-taxpayers/22143/
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*Limitation laid down in the Statute or Notification for Claiming Refund can’t be modified by Tribunal: CESTAT* [Read Order]
Read more at: http://www.taxscan.in/limitation-statute-notification-claiming-refund-modified-tribunal-cestat/22214/
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Oil for ‘Treatment of Dandruff, Premature Graying and Split Ends’ a Pharmaceutical Product: CESTAT* [Read Order]
Read more at: http://www.taxscan.in/oil-treatment-dandruff-premature-graying-pharmaceutical-product-cestat/22085/
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📺 *Updates*
▶1. HC directed to complete adjudication within a week for goods seized due to absence of records.
Poonam Grahnirman (P.) Ltd.
v. Assistant State Tax Officer
▶2. CBDT issues draft notification to provide Sec. 112A relief to off-market acquisitions
https://www.taxmann.com/fileopennew.aspx?id=105010000000015454&mode=home&page=
▶3. Where consideration in respect of transfer of an asset is ascertainable, section 50D cannot be invoked
Analjit Singh v. Deputy Commissioner of Income Tax, Circle- 16 (2), Delhi*
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No Penalty against CHA for Unknowingly Filling Shipping Bills of Prohibited Goods: CESTAT* [Read Order]
Read more at: http://www.taxscan.in/penalty-cha-unknowingly-filling-shipping-bills-prohibited-goods-cestat/22064/
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*Reimbursement of Expenses Can’t Be Taxed Under Business Auxiliary Services: CESTAT* [Read Order]
Read more at: http://www.taxscan.in/reimbursement-expenses-taxed-business-auxiliary-services-cestat/22052/
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Rules of Application for Declaration of Fugitive Economic Offender Notified* [Read Notification]
Read more at: http://www.taxscan.in/application-declaration-fugitive-economic-offender/22058/
