Summary of GST meeting 4th August 2018:
1. GOM for MSME Issues:
a. GST Council constitutes a Group of Ministers (GoM) to look into issues of MSME’s.
b. Finance Minister’s of Assam, Delhi, Punjab & Kerala will be part of this GoM.
c. Finance Minister of State – Shri Shiv Pratap Shukla ji will be head of this GoM.
Further a Sub-Committee to be formed under this GoM. This Committee will interact with MSME’s and listen to issues like
i. Return filing with Turnover upto Rs. 1.50 Crores
ii. Competition & Benefits of co’s with turnover upto Rs. 1.50 Crores
Further another sub-committee named fitment committee will submit report and will provide suggestions where rate changes are required.
2. Adding more MSME in GST Network
a. After GST Council meeting Mr. Sushil Modi, Finance Minister of Bihar, stated that it was also discussed to add more MSME to the GST Network.
b. He also discussed that steps would be taken in next meeting to benefit MSME’s.
3. Cash Back Facility:
a. GST Council gives approval for Pilot Project to promote Digital Payments through cash back of GST.
b. 20% cash back of GST paid to be proposed. Subject to maximum Rs. 100/-.
c. Cash Back applicable on payments through RuPay Debit Card, Bhim, USSD etc.
d. It’s on wish of States to launch this incentive scheme or not.
4. West Bengal opposes idea of Digital incentivization of GST!!
a. West Bengal Finance Minister Mr. Amit Mitra opposes the idea of Digital incentivization.
b. He said that these incentives will come from the GST's revenue that was collected dearly.
c. He also says that total revenue loss in Q1 has been Rs 43,000 cr.
5. Next meeting to be held on month end of September’18 at Goa.
Two Days Workshop on Advanced Excel & Data Dashboard by 4 times Excel's Most Valuable Professional (MVP) CA Vijay Agarwal on 11 & 12 August, 2018 at 09.30 am to 5.30 pm at Radisson Blue Hotel Paschim Vihar , New Delhi. Fees Rs. 5500/- Plus GST. Visit https://goo.gl/Expx4A or call 8059305000, 9810315945.
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No sec. 68 additions if assessee failed to produce persons who had applied as shareholders; SC dismissed SLP
*IT: SLP dismissed against High Court ruling that additions made to income of assessee under section 68 in respect of amount received as share capital on ground that assessee expressed its inability to produce share applicants had rightly been set aside by Tribunal as assessee could not have been assessed to tax to find out person who had applied as shareholder*
*[2018] 95 taxmann.com 331 (SC)*
SUPREME COURT OF INDIA
Commissioner of Income Tax
v.
Jalan Hard Coke Ltd.*
ROHINTON FALI NARIMAN AND ABHAY MANOHAR SAPRE, JJ.
SPECIAL LEAVE PETITION (CIVIL) DIARY NO. 16078 OF 2018†
MAY 15, 2018 vinay
Section 68 of the Income-tax Act, 1961 - Cash credits (Share capital) - Assessee-company filed details of share capital money before Assessing Officer showing that there are number of share applicants who applied for allotment of shares and most of them were residing in Delhi and each application was for Rs. 2 lakhs each and payment was made by demand drafts - Assessee also filed photocopies of share applications but informed Assessing Officer that directors of company did not consider allotment of shares favourable to company and as such they did not allot shares to any of these applicants and share application money remained with company, which later, company invested in purchase of flat at Mumbai - Assessing Officer required assessee to produce all persons/share applicants for examination - Assessee expressed its inability to produce share applicants, however, submitted that since share application had been received from identifiable persons having capacity and creditworthiness of making share application no addition under section 68 should be made - Commissioner (Appeals) however, made additions to income of assessee under section 68 - Tribunal by order deleted additions made by Commissioner (Appeals) - High Court by impugned order held that view taken by Tribunal was just and proper as assessee-company could not have been assessed to tax to find out person who had applied as shareholder - Whether Special Leave petition against said impugned order was to be dismissed - Held, yes [Para 2] [In favour of assessee]
vinay
CASE REVIEW
CIT v. Jalan Hard Coke Ltd. [2018] 95 taxmann.com 330 (Raj.) (para 2) [SLP dismissed].
Ms. Pinky Anand, ASG K. Radhakrishnan, Sr. Adv., Ms. Nisha Bagchi, Ms. Kirti Dua, Ms. Gargi Khanna, Advs. and Mrs. Anil Katiyar, AOR for the Appellant.
ORDER
1. Delay condoned.
2. The Special Leave Petition is dismissed.
JYOTI
*In favour of assessee.
†Arising out of order of High Court in CIT v. Jalan Hard Coke Ltd. [2018] 95 taxmann.com 330 (Raj.).
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Amendments in Section 134 of Companies Act 2013 relating to financial statements, Board report etc. made effective from 31.7.2018 (notification placed on MCA website on 6.8.2018):
http://www.mca.gov.in/Ministry/pdf/CommencementNot3107_06082018.pdf
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SEBI
SEBI has decided to discontinue with the registration of Sub-Brokers as a market intermediary. No fresh registration shall be granted to any person as Sub-Broker. Any pending applications for registration as Sub-Brokers under process, shall be returned to the concerned Stock Exchanges for onward transmission to the applicant. The registered Sub-Brokers shall have time till March 31, 2019 in order to migrate to act as an AP and / or Trading Member (TM). The Sub-Brokers, who do not choose to migrate into AP and /or TM, shall deemed to have surrendered their registration with SEBI as Sub-Broker, w.e.f. March 31, 2019. Under the current regulatory framework, Sub-Brokers (‘SB’) need to seek registration from SEBI under SEBI (Stock Broker and Sub-Broker) Regulations, 1992, and Authorized Persons (‘AP’) need to seek registration from the concerned Exchange. There is no difference in the operative role of a Sub-Broker and that of an Authorized Person. Further, The Stock Exchanges are directed to bring the provisions of this circular to the notice of the Stock Brokers and Sub-Brokers, and make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision in co-ordination with one another, as considered necessary.
THE SPECIFIC RELIEF (AMENDMENT) ACT, 2018
The Ministry of Law & Justice has notified the Specific Relief (Amendment) Act, 2018, shall come into force on such date as the Central Government may, by notification in the Official Gazette, notify. The Key features of the Amendment includes the Amendment substitutes Section 10 of the Act providing for Cases in which specific performance of contract is enforceable with a new Section 10 which states that specific performance of a contract shall be enforced by the court subject to the provisions contained in sub-section (2) of section 11, section 14 and section 16. Thus, through the aforesaid amendment, effort has been made to curtail discretionary powers of the Court while making an order for specific performance of the contract as the cases in which specific performance of contract is enforceable would be subject to Section 11(2) relating to contract made by Trustee in excess of his powers and Section 14 (contracts not specifically enforceable) and Section 16 (personal bars to relief). The amended Section 22 states where the contract is broken due to non-performance of promise by any party, the party who suffers by such breach shall have the option of substituted performance through a third party or by his own agency, and, recover the expenses and other costs actually incurred, spent or suffered by him, from the party committing such breach. The Amendment incorporates Section 20A which enumerates provision for contract relating to infrastructure project. Section 20A provides that the Court shall not grant any injunction in a suit under this Act involving a contract relating to an infrastructure project, where granting injunction would cause impediment or delay in the progress or completion of such infrastructure project.
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No GST refunds for foreigners as of now: Finance Ministry
Foreigners coming to India may not get GST refunds on goods purchased and carried back by them as the government has not invoked relevant provisions of the Integrated Goods and Services Tax Act yet, the Finance Ministry has said in reply to an RTI query.
It was asked to provide details on procedures for foreigners to get GST refunds on goods purchased by them in India.
Some western nations provide refunds of certain taxes on goods purchased by foreigners there.
According to the section, integrated tax paid by a tourist leaving India on any supply of goods taken out of India by him shall be "refunded in such manner and subject to such conditions and safeguards as may be prescribed". “For the purposes of this section, the term ‘tourist' means a person not normally resident in India, who enters India for a stay of not more than six months for legitimate non-immigrant purposes,” the Act says.The IGST makes provisions for the levy and collection of taxes on inter-state supply of goods or services or both by the Central government.
According to senior GST professional Sandeep Chilana, the government should come out with terms, conditions and safeguards for refunds of GST paid by international tourists in India “GST is a consumption-based tax.
To the extent consumption is happening in India the taxes should stay in India. In case the goods are purchased in India and taken by the tourist outside India, it should be seen as export and necessary refund should be available,” he said.
In order to ensure there is no misuse, the mechanism for such a refund process would need to be robust, said Chilana, a partner of the law firm Shardul Amarchand Mangaldas. “While selling these goods to international tourists, shopkeepers will have to charge IGST only and not local taxes. The government may also require shopkeepers to issue some form/certificate verifying the details of the purchases along with passport number and other relevant details,” he said.
Like other developed countries, it is likely that the foreign tourist would need to show the form/certificate along with invoices etc at refund counters that need to be set up at exiting points like international airports, so that tourists can get refunds of the GST paid on the goods brought by them, the tax expert said. He added that foreign countries, mainly in Europe, have established a provision that a foreigner needs to show a form or receipt that he has got on purchase of particular goods to get refund.
“I feel having a provision for refund of taxes to foreign tourists will definitely act as a motivation for international travellers. It will encourage them to spend more money in India. It will promote tourism in the country and help in generating foreign exchange from the tourists. It will give huge impetus to demand for various industries including handicraft, textiles etc.,” Chilana said. The Goods and Services Tax came into force on July 1, 2017.
“But Section 15 of the IGST has not been brought into force yet. It is more than a year since we implemented the GST and the IT system has also stabilised to a great extent. It is high time we bring into effect this provision of refund of GST taxes to foreigners,” he said.
