GST Council Updates
1. Quarterly Returns approved for taxpayers with turnover less than Rs 5cr -it is for GSRT-1( *tax payments to continue on monthly basis*)
GSTR-3B monthly tax return would continue file On *monthly Basis*
2. Sanitary Napkins exempted from GST going forward
3. No decision on 1% sugar cess
4. GST on bamboo flooring reduced to 12%
5. GST on hotels would now be on actual tariff & not declares tariff
6. Ethanol for Oil Marketing Companies now at 5% vs 18% earlier
7. 5% GST ceiling on_* footwear raised from Rs 500 to Rs 1000*_
8. GST on paints & varnishes, wall putty cut from 28% to 18%
9. GST on all leather items cut from 28% to 18%
10. GST on consumer electronics - *TV (up to 27"), Washing Machine, Refrigerator, mixer, juicer, grinder* cut from 28% to 18%
11. GST on special purpose vehicles, work truck, trailer cut from 28% to 18%
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🍎Press Note on Simplified GST Return
👉 GST Council in its 28th meeting held on 21st of July, 2018 in New Delhi, approved the *new return formats* and associated changes in law. It may be recalled that in the 27th meeting held on 4th of May, 2018 the Council had approved the basic principles of GST return design and directed the law committee to finalize the return formats and changes in law. The formats and business process *approved today* were in line with the basic principles with one major change
👉 i.e the option of *filing quarterly return* with *monthly payment* of tax in a simplified return format by the small tax payers.
👉 2. *All taxpayers* excluding small taxpayers and a few exceptions like ISD etc. shall file *one monthly return.* The return is simple with *two main tables.* 🌧 One for reporting *outward supplies* and ⛈ one for availing *input tax credit* based on invoices uploaded by the supplier.
Invoices can be uploaded continuously by the seller and can be continuously viewed and locked by the buyer for availing input tax credit. This process would ensure that very large part of the return is automatically filled based on the invoices uploaded by the buyer and the seller. Simply put, the process would be *“UPLOAD – LOCK – PAY”* for most tax payers.
👉 3. Taxpayers would have facility to create his profile based on nature of supplies made and received. The fields of information which a taxpayer would be shown and would be required to fill in the return would depend on his profile.
👉 4. *NIL return filers* (no purchase and no sale) shall be given facility to file return by sending *SMS.* ✉
👉 5. Council approved quarterly filing of return for the small taxpayers having *turnover below Rs. 5 Cr as an optional facility.* Quarterly return shall be similar to main return with monthly payment facility but for two kinds of registered persons – *small traders making only B2C supply* or making *B2B + B2C supply.* For such taxpayers, simplified returns have been designed called *Sahaj* and *Sugam*. In these returns details of information required to be filled is lesser than that in the regular return.
👉 6. The new return design provides facility for *amendment of invoice* and also other details filed in the return. Amendment shall be carried out by filing of a return called amendment return. *Payment* would be allowed to be made through the amendment return as it will help save interest liability for the taxpayers.
👉 7. 93% of the taxpayers have a turnover of less than Rs 5 Cr and these taxpayers would benefit substantially from the simplification measures proposed improving their ease of doing business. Even the large taxpayers would find the design of new return quite user friendly.
🎾 *PRESS NOTE* 🏉
July 21, 2018
🍑 Recommendations made during the 28thmeeting of the GST Council held in New Delhi on 21st July, 2018*
Amendments to the CGST Act, 2017, IGST Act, 2017, UTGST Act2017, and GST (Compensation to States) Act, 2017
1.The GST Council in its 28th meeting held today at New Delhi has recommended certain amendments in the CGST Act, IGST Act, UTGST Act and the GST (Compensation to States) Act.
2.The major recommendations are as detailed below:
1. Upper limit of turnover for opting for composition scheme to be raised from Rs. 1 crore to Rs. 1.5 crore. Present limit of turnover can now be raised on the recommendations of the Council.
2. Composition dealers to be allowed to supply services (other than restaurant services), for upto a value not exceeding 10% of turnover in the preceding financial year, or Rs. 5 lakhs, whichever is higher.
3. Levy of GST on reverse charge mechanism on receipt of supplies from unregistered suppliers, to be applicable to only specified goods in case of certain notified classes of registered persons, on the recommendations of the GST Council.
4. The threshold exemption limit for registration in the States of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand to be increased to Rs. 20 Lakhs from Rs. 10 Lakhs.
5. Taxpayers may opt for multiple registrations within a State/Union territory in respect of multiple places of business located within the same State/Union territory.
6. Mandatory registration is required for only those e-commerce operators who are required to collect tax at source.
7. Registration to remain temporarily suspended while cancellation of registration is under process, so that the taxpayer is relieved of continued compliance under the law.
8. The following transactions to be treated as no supply (no tax payable) under Schedule III:
a. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India;
b. Supply of warehoused goods to any person before clearance for home consumption; and
c. Supply of goods in case of high sea sales.
9. Scope of input tax credit is being widened, and it would now be made available in respect of the following:
a. Most of the activities or transactions specified in Schedule III;
b. Motor vehicles for transportation of persons having seating capacity of more than thirteen (including driver), vessels and aircraft;
c. Motor vehicles for transportation of money for or by a banking company or financial institution;
d. Services of general insurance, repair and maintenance in respect of motor vehicles, vessels and aircraft on which credit is available; and
e. Goods or services which are obligatory for an employer to provide to its employees, under any law for the time being in force.
10. In case the recipient fails to pay the due amount to the supplier within 180 days from the date of issue of invoice, the input tax credit availed by the recipient will be reversed, but liability to pay interest is being done away with.
11. Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a Financial Year.
12. Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the Appellate Tribunal to be capped at Rs. 25 Crores and Rs. 50 Crores, respectively.
13. Commissioner to be empowered to extend the time limit for return of inputs and capital sent on job work, upto a period of one year and two years, respectively.
14. Supply of services to qualify as exports, even if payment is received in Indian Rupees, where permitted by the RBI.
15. Place of supply in case of job work of any treatment or process done on goods temporarily imported into India and then exported without putting them to any other use in India, to be outside India.
16. Recovery can be made from distinct persons, even if present in different State/Union territories.
17. The order of cross-utilisation of input tax credit is being rationalised.
3.These amendments will now be placed before the Parliament and the legislature of State and Union territories with legislatures for carrying out the amendments in the respective GST Acts.
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✳MCA Update:
▶MCA21 system will be intermittently unavailable from Saturday, 21st July 2018 22:00 Hrs to Sunday, 22nd July 2018 14:00 Hrs due to maintenance activity. Stakeholders are requested to plan accordingly.
✳Direct Tax :
▶Mumbai ITAT Special Bench (‘SB’) confirms penalty levy u/s. u/s 271D on assessee -company for receiving cash loans from one of its directors during AY 2008-09 as assessee failed to demonstrate bonafide reasons for not accepting them by account payee cheque/bank draft; Clarifies that bonafide nature of transactions alone not sufficient to claim immunity u/s. 273B and “it is required to be established that there was some bonafide reasons for the assessee for not taking or accepting loan or deposit by account payee cheque or account payee bank draft”, cites SC ruling in Kum. A.B.Shanthi; [TS-387-ITAT-2018(Mum)
▶SC dismisses assessee-company’s SLP against Allahabad HC judgement upholding addition u/s 68 with respect to share capital subscription as assessee failed to establish identity and genuineness of the investors; Noting that assessee is private limited company and alleged investors were close friends and business associates of its directors and shareholders, HC had held that the burden rested squarely on the assessee to disclose true and correct details of the persons making substantial investments in assessee-company; HC e subscribed to its share capital”;[TS-386-SC-2018]
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Rent received by Builder not House Property Income: ITAT allows Crediting the same towards Work-In-Progress* [Read Order]
Read more at: http://www.taxscan.in/rent-received-builder-house-property-income-itat-crediting-work-progress/26139/.
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CBDT has directed tax sleuths to conduct quarterly ‘survey and inspection’ of High Value Transactions entities to determine the correctness of the statement filed by them and to report to the I-T department.
CBDT has notified the Income-tax (7th Amendment) Rules, 2018 which shall come into force from the date of their publication in the Official Gazette. CBDT amends Forms for advance ruling and seeks unique number for identification of non-resident for all advance ruling.
GST Council in its 28 Meeting on Saturday (Tomorrow) is expected to take up issues related with simplification of returns, creation of appellate tribunal, revenue position of states and laws related to the indirect tax structure.
MCA wef 10th July, 2018 onwards every individual who has been allotted a DIN as on the 31st of March of a financial year shall submit e-form DIR-3-KYC to the Central Government on or before the 31 Aug-2018.
Supreme Court directed the Centre to come out with proper guidelines within two weeks to blacklist builders, contractors and architects found to have constructed buildings against sanctioned plans.
Cabinet approves ICAI's pacts with Tanzania's National Board of Accountants and Auditors (NBAA) and Bahrain Institute of Banking and Finance (BIBF) https://www.business-standard.com/article/pti-stories/cabinet-approves-icai-s-pacts-with-nbaa-bibf-118071801401_1.html
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*👉🏻National GST appellate tribunal on anvil, Council to decide on July 21*
( GST Council will consider setting up of a National Appellate Tribunal in Delhi with three regional benches with members from judiciary as well as tax departments to hear appeals against the order of the appellate authority set up by states under the GST regime.)
👇🏻 👇🏻 👇🏻
https://goo.gl/4a7Q2L
*👉🏻RBI to hold joint Audit of credit rating agencies with SEBI*
(RBI will conduct regular audit and inspection of rating agencies whose actions can significantly influence the borrowing price of all companies)
👇🏻 👇🏻 👇🏻
https://goo.gl/Ysjqq9
*👉🏻MCA invites applications from Chartered Accountants having 2 to 5 years of experience*
(MCA invites applications from Chartered Accountants (CAs) having 2 to 5 years of post-qualification experience as Consultant in the MCA Offices located all over India)
👇🏻 👇🏻 👇🏻
https://goo.gl/adJZZc
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*Reduced Interest Rates on Small Savings Schemes shall continue for 2nd Quarter also: RBI*
Read more at: http://www.taxscan.in/reduced-interest-rates-small-savings-schemes-2nd-quarter-rbi/26151/
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No Tax Evasion If Goods in Transit was not Marketable: Patna HC* [Read Order]
Read more at: http://www.taxscan.in/tax-evasion-goods-transit-marketable-patna-hc/26231/
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Failure on the Part of Professional to file TDS Returns ‘reasonable cause’ for Delay: ITAT* [Read Order]
Read more at: http://www.taxscan.in/failure-professional-file-tds-returns-reasonable-cause-delay-itat/26132/
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Finance Ministry has appointed Grievance Redressal Officers for processing the complaints/information under the E-Way Bill System.http://www.cbic.gov.in/resources/htdocscbec/gst/GRO%20Officers%20-%20180718.pdf.
MCA invites applications from CA having 2 years plus experience at all over India in compliance, Investigation and inspection related work. remuneration will be Rs. 40,000 PM + Rs. 1000/- as conveyance. may apply https://cmib.icai.org/mcaform by 28 July, 2018.
Lok Sabha passed the Fugitive Economic Offenders Bill, 2018, which seeks to bring back white collar criminals, who have fled the country, to face trial in India. It seeks to target fugitives for offences exceeding `100 crore.
Rajya Sabha passed the Prevention of Corruption (Amendment) Act, 2013. It comes at a time when bankers are facing intense scrutiny for their lending decisions with many former and current bankers arrested by investigative agencies over loans that have now turned non-performing.
CA final Result -I group 16%, II Group-13%, Both group -13%, CPT* is 28%, Foundation is 19%.
ICAI has arranged the ‘Tax Cloud’ software on Web based ITR & TDS Return Preparation for Practice Chartered Accountants & CA Firms of ICAI. http://taxcloudindia.com
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Transitional Credit is Substantive Right and can’t be taken away by Procedural Requirements: Gujarat HC issues notice to Centre and GST Council* [Read Petition]
Read more at: http://www.taxscan.in/transitional-credit-substantive-right-procedural-requirements-gujarat-hc-gst-council/26242/
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*Declare NFRA Unconstitutional: Chartered Accountant approaches Madras High Court* [Read Petition]
Read more at: http://www.taxscan.in/declare-nfra-unconstitutional-chartered-accountant-madras-high-court/26247/
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No Due Date Extension for Income Tax Return Filing: CBDT* [Read Circular]
Read more at: http://www.taxscan.in/due-date-income-tax-return-cbdt/26255/
