Appellate Authority upholds order of AAR that appellant, a public charitable and religious trust engaged in advancement of religious and spiritual teachings also engaged in sale of spiritual goods is said to be in 'business' and therefore attract provisions of CGST Act, 2017
• On perusal of activities of trust it was found that activities of trade and commerce also form a major part of objectives and as definition of business under CGST includes words 'trade and commerce' it can be said that appellant is engaged in supply of goods and services and is therefore liable to get itself registered. Thus, activity of selling spiritual products like books, CDs, DVDs are in nature of supply in course of business.
• There is specific exemption provided to charitable trusts registered under section 12AA of Income Tax Act for certain services. Intention of legislature is to tax all activities of supply goods and services by charitable trust except those specifically exempted. Very fact that certain services have been carved out and given special treatment makes it clear that all trade and commerce transaction of selling books, statues, CDs and DVDs etc. done commercially for consideration come within broad ambit of 'business' under CGST Act.
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[2019] 101 taxmann.com 2 (AAAR-MAHARASHTRA)
APPELLATE AUTHORITY FOR ADVANCE RULING, MAHARASHTRA
Shrimad Rajchandra Adhyatmik Satsang Sadhana Kendra, In re
SMT. SUNGITA SHARMA AND RAJIV JALOTA, MEMBER
ORDER NO. MAH/AAAR/SS-RJ/14/2018-19
DECEMBER 24, 2018
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RCM on Security Services has been introduced in GST by the Government vide Notification No. 29/2018-Union Territory Tax (Rate) dated 31.12.2018.
W.e.f. 01.01.2019, any registered person receiving Security services (services provided by way of supply of security personnel) from any person other than a body corporate is required to pay GST on reverse charge basis.
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👉GST collection dropped to Rs 94,726 Crore in December 2018, lower than Rs 97,637 Crore collected in the previous month.
👉The next meeting of GST Council is set to held on January 10, which will decide on bringing Under-Construction Residential Properties to 5% slab, raising the threshold limit for MSMEs and bringing small service suppliers under the composition scheme
👉Union Cabinet approves first-ever three way merger in Indian Banking with amalgamation of Vijaya Bank, Dena Bank and Bank of Baroda. The scheme shall come into force on 01.04.2019
👉RBI sets up MSME panel under Ex-SEBI Chief Sh. U.K. Sinha to suggest Long-Term Solutions for the Economic and Financial Sustainability of the MSME Sector
👉SEBI decides to Implement Mandatory Physical Settlement for all Stock Derivatives by October 2019. According to a circular, the new system will be implemented in three phases starting April.
👉India Cuts Import Duties on Crude and Refined Palm Oil sourced from Southeast Asian (ASEAN) Countries after request from suppliers. The duty on Crude Palm Oil was lowered to 40% from 44%, while a tax on the Refined Variety was cut to 50% from 54%
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GST Update
1. Requirement of bank account details has been removed at the time of GST Registration. Now it is required after first login because normally a bank account cannot be opened before commencement of business. Bank account details can be added vide amendment of non-core field.
2. GSTR1 and GSTR3B *ate Fee waived now on portal from July, 17 to September, 18. Due date showing as 31/03/2019
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CBIC has notified new annual GST return forms, which are required to be filed by businesses registered under GST regime by June 30, 2019. In the annual return forms, businesses have to provide consolidated details of sales, purchases and input tax credit (ITC) benefits accrued to them during the 2017-18 fiscal.
GST collection dropped to Rs 94,726 crore in December 2018, lower than Rs 97,637 crore collected in the previous month. The total number of sales returns or GSTR-3B filed till December 30, 2018, is 72.44 lakh.
CBIC has launched a one-time scheme to waive late fee for delayed furnishing of filing GST return-1 form for the period July 2017 to September 2018, to encourage taxpayers to furnish the returns. The waiver, which will be effective till 31 October 2018.
RBI to breather to the micro, small and medium enterprise (MSME) sector has decided to permit one-time restructuring of existing loans to these enterprises that are in default but ‘standard’ as on January 1, 2019, without an asset classification downgrade.
UPI transactions for December stood at 620 million.Transactions via the unified payments interface (UPI), the country’s flagship payments platform, crossed a value of Rs 1 trillion in December, according to the data released by the National Payments Corporation of India.
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1. Due to technical issues being faced by the e-commerce operators on the common portal, Govt has extended the due date for furnishing of GSTR-8 for the months of Oct, Nov, Dec, 2018 till 31.01.19.
2. Government has extended the due dates for claiming ITC on the invoices or debit notes issued during the F.Y. 2017-18 and rectification in GSTR-1.
3. CBDT has clarified that the provisions of section 56(2)(viia) shall not be applicable in cases of receipt of shares by the specified company or firm as a result of fresh issuance of shares including by way of issue of bonus shares, right shares and preference shares, by specified company.
4. Appellate Authority upholds order of AAR that appellant, a public charitable and religious trust engaged in advancement of religious and spiritual teachings also engaged in sale of spiritual goods is said to be in 'business' and therefore attract provisions of CGST Act, 2017.
5. Benami Act: If an order is set aside on account of violation of principles of natural justice or on account of any procedural defect in decision making process, concerned authority is not precluded from re-initiating proceedings after curing procedural defects, subject to condition that fresh proceedings are (a) within jurisdiction of authority;.and (b) are not barred by limitation.
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*CPE Hours Requirement for the Block Period of 3 Years (1 JAN 2017 to 31 DEC 2019) to be Complied with by Different Categories of Members
*1. All the members (aged less than 60 yrs) who are holding Certificate of Practice (except all those members who are residing abroad) are required to:
• Complete at least 120 CPE credit hours in a rolling period of 3 Years.
• Complete minimum 20 CPE credit hours of structured learning in each calendar year.
• Balance 60 CPE credit hours (minimum 20 CPE credit hours in each calendar year) can be completed either through Structured or Unstructured learning (as per Member’s choice).
*2. All the members (aged less than 60 yrs) who are not holding Certificate of Practice; and all the members who are residing abroad (whether holding Certificate of Practice or not) are required to:
• Complete at least 60 CPE credit hours either structured or unstructured learning (as per Member’s choice) in rolling period of three-years
• Complete minimum 15 CPE credit hours of either structured or unstructured learning (as per member’s choice) in each calendar year.
*3. All the members (aged 60 yrs & above) who are holding Certificate of Practice, are required to:
• Complete at least an aggregate of 90 CPE credit hours of either Structured or Unstructured Learning (as per member’s choice) in a rolling period of three years
• Complete minimum of 20 CPE credit hours being an aggregate of either Structured or Unstructured Learning (as per member’s choice) in each calendar year
*4. The following class of members are exempted from CPE credit hours requirement:
• All the members (aged 60 years and above) who are not holding Certificate of Practice.
• Judges of Supreme Court, High Court, District Courts and Tribunal
• Members of Parliament/MLAs/MLCs
• Governors of States
• Centre and State Civil Services
• Entrepreneurs (owners of Business (manufacturing) organizations other than professional services)
• Judicial officers
• Members in Military Service
*5. Temporary Exemptions:
• Female members for one Calendar year on the grounds of pregnancy
• Physically disabled members on case to case basis having permanent disability of not less than 40% and above (Supported with medical certificates from any doctor registered with Indian Medical Council with relevant specialisation as evidenced by Post Qualifications (M.D., M.S. etc.).
• Members suffering from prolonged critical diseases / illnesses or other disability as may be specified or approved by the CPEC. (Supported with medical certificates from any doctor registered with Indian Medical Council with relevant specialisation as evidenced by Post Qualifications (M.D., M.S. etc.).
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👉As per CBIC, CG notifies the waiver of late fee for GSTR 3B for the period July 17 to September 2018.
👉CBIC updates the Standard Operating Procedure on TDS under the GST regime.
Full SOP here: https://bit.ly/2SpwFPw
👉CBIC issues a circular simplifying the procedure for granting refund under GST regime. In the circular, the Board laid down certain instructions to simplify the refund process when the same is applied off-line.
👉CBIC clarifies that the supplier of services located in India would be liable to pay IGST on reverse charge basis on the import of services on that portion of services which has been provided by the supplier located outside India to the recipient of services located outside India.
👉CG extends the deadline for NGOs to submit online the annual income and expenditure statement on foreign funds till March 31, 2019, following representations from various NGOs which have faced difficulties.
👉SEBI issues a framework for making physical settlement of stock derivatives mandatory in a phased manner, a move that could bring much-needed balance between equity cash and derivative segments.
👉MSME ministry establishes an export promotion cell to create a sustainable ecosystem for MSMEs, for benefits like integration of MSMEs into global value chain and evaluation of readiness of MSMEs to export their products and services.
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CBDT notifies DTAA between India-Hong Kong For Avoidance Of Double Taxation And Prevention Of Fiscal Evasion With Respect To Taxes On Income vide Notification No. 89/2018 dated 21st December, 2018.
GST; No profiteering if base price of product not changed after Tax Reduction. Kerala State Screening Committee on Anti-profiteering Vs M/s. Asian Granito India Ltd. (National Anti-Profiteering Authority)
RBI have recorded the decision that the central bank will not touch the ‘unrealised gains’ in its balance sheet for dividend distribution to its sole shareholder, the government. “Unrealised gain is valuation gain in currency and gold. To tap this, it has to be realised or converted in the market.
ICAI defers UDIN implementation to 1st Feb., 2019To enable TCS do the huge data migration and data audit which will require around 30 days before the UDIN Platform becomes mandatory, as against the earlier announced date of 1st Jan., 2019.
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CBIC has recently issued notifications dated 31.12.2018
Notification No. 67/2018: Extend the time period for availing the special procedure for completing migration of taxpayers who received provisional IDs but could not complete the migration process.
http://www.cbic.gov.in/htdocs-cbec/gst/notfctn-67-central-tax-english-2018.pdf
Notification No. 68/2018: Extend the time limit for furnishing the return in FORM GSTR-3B for the newly migrated taxpayers.
http://www.cbic.gov.in/htdocs-cbec/gst/notfctn-68-central-tax-english-2018.pdf
Notification No. 69/2018 : Extend the time limit for furnishing the return in FORM GSTR-3B for the newly migrated taxpayers.
http://www.cbic.gov.in/htdocs-cbec/gst/notfctn-69-central-tax-english-2018.pdf
Notification No. 71/2018 : Extend the time limit for furnishing the details of outward supplies in FORM GSTR-1 for the newly migrated taxpayers.
http://www.cbic.gov.in/htdocs-cbec/gst/notfctn-71-central-tax-english-2018.pdf
Notification No. 72/2018: Extend the time limit for furnishing the details of outward supplies in FORM GSTR-1 for the newly migrated taxpayers.
http://www.cbic.gov.in/htdocs-cbec/gst/notfctn-72-central-tax-english-2018.pdf
Notification No. 73/2018 : Exempt supplies made by Government Departments and PSUs to other Government Departments and vice-versa from TDS.
http://www.cbic.gov.in/htdocs-cbec/gst/notfctn-73-central-tax-english-2018.pdf
Notification No. 74/2018 : Fourteenth amendment to the CGST Rules, 2017 .
http://www.cbic.gov.in/htdocs-cbec/gst/notfctn-74-central-tax-english-2018.pdf
Notification No. 75/2018 : Fully waive the amount of late fees leviable on account of delayed furnishing of FORM GSTR-1 for the period July, 2017 to September, 2018 in specified cases.
http://www.cbic.gov.in/htdocs-cbec/gst/notfctn-75-central-tax-english-2018.pdf
Notification No. 76/2018 : Specify the late fee payable for delayed filing of FORM GSTR-3B and fully waive the amount of late fees leviable on account of delayed furnishing of FORM GSTR-3B for the period July, 2017 to September, 2018 in specified cases.
http://www.cbic.gov.in/htdocs-cbec/gst/notfctn-76-central-tax-english-2018.pdf
Notification No. 77/2018 : Fully waive the amount of late fees leviable on account of delayed furnishing of FORM GSTR-4 for the period July, 2017 to September, 2018.
http://www.cbic.gov.in/htdocs-cbec/gst/notfctn-77-central-tax-english-2018.pdf
Notification No. 78/2018 : Extend the due date for furnishing FORM ITC-04 for the period from July, 2017 to December, 2018 till 31.03.2019.
http://www.cbic.gov.in/htdocs-cbec/gst/notfctn-78-central-tax-english-2018.pdf
Notification No. 79/2018 : Amend notification No. 2/2017 - Central Taxes dated 19.06.2017.
http://www.cbic.gov.in/htdocs-cbec/gst/notfctn-79-central-tax-english-2018.pdf
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ITax update- THE HIGH COURT OF BOMBAY in the case of Principal Commissioner of Income-tax-II v.Viksit Engineering Ltd. held that gain on sale of share taxable as STGC if assessee maintained seperate portfolio one for Trading and other for investment.
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👉CG amends the CGST Rules, wherein the rules relating to the e-way bill, refund and the forms including the audit reports, annual returns, and reconciliation statements have been modified.
👉CBIC instructs that, “the effective date of Withdrawal from Composition Scheme shall be the date indicated in the intimation/application filed in FORM GST CMP-04 but such date may not be prior to the commencement of the FY in which such intimation/application for withdrawal is being filed”.
👉CBIC notifies the applicability of reverse charge mechanism under the GST to some more services including supply of security personnel provided to a registered person and services provided by unregistered Business Facilitator (BF) to a bank.
👉CG issues Order, so that input tax credit in respect of any invoice or invoice relating to such debit note for supply of goods or services or both made during the FY 2017-18 can be availed till March 2019.
👉NCLT allows Govt to open IL&FS Group Companies' past financial statements. This is the first instance that Section 130 of the Companies Act has been put to use by the Govt.
👉RBI allows a one-time restructuring of existing debt up to Rs 25 crore for the companies which have defaulted on payment but the loans given to them have continued to be classified as standard assets.
👉SEBI directs 13 entities to disgorge over Rs 1.6 crore of unlawful gains made by them while trading in the shares of Sarang Chemicals.
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# GST: CBIC issues few important circular on 31.12.2018:
1. Clarification on *export of services* – C.N.78/52/2018-GST.
2. Clarification on *refund related issues* – C.N.79/53/2018-GST.
# GST: CBIC notifies changes in GST rates w.e.f. 01.01.2019 on goods as per recommendations of the GST Council in its 31st meeting by amending N.N.1/2017-CT(R), dt.28.06.17 – N.N.24/2018-CT(Rate), dt.31.12.18.
# GST: CBIC notifies changes in GST rates w.e.f. 01.01.2019 on services as per recommendations of the GST Council in its 31st meeting by amending N.N.12/2017-CT(R), dt.28.06.17 – N.N.28/2018-CT(Rate),dt.31.12.18.
# GST: Failure to discharge its GST liabilities for the past several months – petitioner was unable to pay the tax, the Returns could not be filed - Attachment to bank accounts suspended with conditions - Coromandel Agrico Pvt. Ltd. Vs. CTO (2018 (12) TMI 1578 - Gujarat HC).
# IT: Addition u/s 68 - the theory of gift was not established by the assessee. The so called transfer through an NRO account was also self-serving because, the amount was transferred through TT and the source of transfer was not established as to how it was relatable to the donor – Narendra Sakaria Vs ACIT (2018 (12) TMI 1598 - Madras HC).
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Indirect Tax Legal updates:
1. GST – Karnataka AAAR – The services of the employees at the Corporate Office in the course of employment for the units located in the other states, shall be treated as Supply of service by one distinct person to another, and by virtue of the Entry 2 of Schedule I, supply of services between distinct persons even if without consideration is a "supply" within the scope of Section 7 and is liable to GST. The impugned Order is upheld the appeal is dismissed.
2018-VIL-30-AAAR
2. Central Excise - Captive Consumption- The duty was demanded by the Department on captively consumed ‘sugar syrup’ ( which is intermediate product) used in manufacture of biscuits.The appellants contended that ‘intermediate goods’ i.e. sugar syrup is used for production of final goods are exempt from duty but as long as final product is dutiable no duty can be demanded on clearance of sugar syrup which is intermediate product though exempt.
2018-VIL-835-CESTAT-MUM-CE
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👉🏻List of audit firms approved for appointment as Statutory Central Auditors in Public Sector Banks.
(RBI released List of audit firms approved for appointment as Statutory Central Auditors (CSA) in 21 Public Sector Banks for the year 2018-19)
👇🏻 👇🏻 👇🏻
https://goo.gl/RjvDXQ
👉🏻IBBI publishes revised syllabus and other details of valuation examinations
(The Insolvency and Bankruptcy Board of India (IBBI) came out with syllabus for valuer course and the examinations to be conducted from April 1, 2019)
👇🏻 👇🏻 👇🏻
https://goo.gl/N2zVWV
👉🏻RBI releases guidelines on restructuring of advances to MSMEs
(RBI has allowed a one-time restructuring of existing debt of up to 25 crore rupees for the companies which have defaulted on payment but the loans given to them have continued to be classified as standard assets)
👇🏻 👇🏻 👇🏻
https://goo.gl/yuritK
👉🏻Branch Managing Committees Election Dates announced by ICAI
(Branch having upto 500 Members - 5 Members instead of 6 Members, as at present. Branch having more than 500 Members - 7 Members instead of 8 Members, as at present. Polling for Northern Region Branches - 16-02-2019)
👇🏻 👇🏻 👇🏻
https://goo.gl/a6EwmV
🌹With Warm Regards🌹
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GST: Govt notifies applicability of Reverse Charge to certain Services [Read Notification]
Read more at: http://www.taxscan.in/gst-reverse-charge-services/32258/
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Rajasthan Govt extends Due Date for filing GST Annual Return till June [Read Order]
Read more at: http://www.taxscan.in/rajasthan-due-date-gst-annual-return/32264/
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Chartered Accountants Act won’t be Repealed due to NFRA, says Official
Read more at: http://www.taxscan.in/chartered-accountants-act-repealed-nfra/32281/
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GST
• No decision yet on inclusion of petroleum products in GST, yet to be decided by GST council
• Sale of religious products like books, CDs, DVDs by a charitable & religious trust is a supply under GST: AAAR
• Govt. Extends the due date for availing of Input Tax Credit and rectification in GSTR-1
• CBIC has clarified applicability of GST on various programmes conducted by IIMs, GST on services of business facilitators to banks, GST on International Financial Corporation, etc.
• CBIC has clarified GST rates & classification of various goods and services such as Sattu, Fish meal, LPG for domestic use, Sprinkler, supply of food & beverage service by education institutions and Printing of pictures, etc.
• No reverse charge on services provided by a goods transport agency to Government Department or Local Authority or Governmental agencies, which has taken registration under the GST only for the purpose of deducting tax and not for making a taxable supply of goods or services
: GST council next meeting to be held on 10th January, 2019
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