Navigate

Sunday, 3 February 2019

03 February 2019 Updates

Govt. extends Due date for filing Form GST TRAN-1 from January 31, 2019 to March 31, 2019 [Read Notification]

Read more at: http://www.taxscan.in/govt-extends-due-date-filing-form-gst-tran-1-january-31-2019-march-31-2019/33240/
.
=======>
.
Progressive budget from Chartered Accountant FM says ICAI

The Interim Finance Minister, Shri Piyush Goyal, being a Chartered Accountant with deep insight of the state of affairs of the Indian economy, while presenting his maiden Union Budget 2019-20,   emphasized that the country witnessed its best phase of macro-economic stability during the last four years, with a high annual average GDP growth since 1991, the year when significant economic reforms were first initiated. 

He iterated that generation of high growth rate, curtailing inflation and restoring fiscal balance, has taken India to the 6th position in world economy. This period also witnessed a rapid liberalisation of the FDI policy, a wave of next generation structural reforms, including the path breaking implementation of Goods and Services Tax (GST).

The Insolvency and Bankruptcy Code was introduced in this period and the same has institutionalised a resolution-friendly mechanism, helping in recovery of non-performing loans while preserving the underlying businesses and jobs. The Real Estate (Regulation and Development) Act, 2016 (RERA) and Benami Transaction (Prohibition) Act, 1988 were also introduced in this period to bring transparency in the real estate sector.

As per this Government’s vision reflected through Union Budget, India is poised to become a Five Trillion Dollar Economy in the next five years and the country aspires to become a Ten Trillion Dollar Economy in the next 8 years thereafter.

This is proposed to be achieved through a comprehensive ten dimensional vision, which includes building physical as well as social infrastructure, creating a Digital India reaching every sector of the economy, becoming a major source of energy supply, employing micro-irrigation techniques, developing inland waterways, becoming the launch-pad of satellites, working towards distress-free health care and last, but not the least, transforming India into a minimum Government maximum Governance nation.

CA. Naveen N. D. Gupta, President, ICAI today said “Chartered Accountant Finance Minister presents maiden Union Budget with ten dimensional vision for India’s growth & nation building”

The Interim Finance Minister detailed the tax reforms on the direct taxes and GST front, and the benefits of the same to the citizens of India.  He highlighted that  tax collections as well as the tax base have shown significant increase and India has made considerable progress towards achieving a moderate taxation-high compliance regime.  He acknowledged the valuable contribution of tax payers to nation building and in particular, for providing a better life to the poor and marginalized sections of society.  In order to pass on the benefit of tax reforms to such tax payers without any delay, tax proposals have been introduced in this interim budget itself favouring small taxpayers especially middle class salary earners, pensioners, and senior citizens.

The beneficial tax proposals include complete tax rebate for individual taxpayers having total income up to RS. 5 lakhs, increase in standard deduction from  Rs.40,000 to Rs. 50,000,  extension of benefit of Nil annual value for self-occupation to two residential houses and  increase in TDS threshold on interest earned on bank/post office deposits from Rs.10,000 to Rs.40,000 and on rent from Rs.1,80,000 to Rs.2,40,000. Further, investment in two residential houses would be permissible for claiming capital gains exemption under section 54.

Overall, the budget proposals on the personal taxation front would put more money in the pockets of small taxpayers and increase their purchasing power.  In short, it is a progressive budget from a Chartered Accountant FM.

.
=======>
.
GST AAJ TAK
As Per Order No. 01/2019-GST -Dated - 31st January 2019- Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 117(1A)

Commissioner hereby extends the period for submitting the declaration in FORM GST TRAN-1 till 31st March, 2019, for the class of registered persons who could not submit the said declaration by the due date on account of technical difficulties on the common portal and whose cases have been recommended by the Council.

.
=======>
.
Budget Talk-
Farmers
• 12 crore small and marginal farmers to be provided with assured yearly income of ₹ 6000 per annum under PM-KISAN, total Outlay of ₹ 75,000 crore for FY 2019-20 with additional ₹ 20,000 crore in RE 2018-19

Labour
• Pradhan Mantri Shram Yogi Maandhan scheme to ensure fixed monthly pension to 10 crore unorganized sector workers - ₹ 3000 per month after 60 years of age with an affordable contribution of only ₹ 100/55 per month

Fiscal Program
• Fiscal deficit pegged at 3.4% of GDP for 2019-20
• Target of 3% of fiscal deficit to be achieved by 2020-21.
• Fiscal deficit brought down to 3.4% in 2018-19 RE from almost 6% seven years ago
• Total expenditure increased by over 13% to ₹ 27,84,200 crore in 2019-20 BE
• Capital Expenditure for 2019-20 BE estimated at ₹ 3,36,292 crore
• Centrally Sponsored Schemes (CSS) allocation increased to ₹ 3,27,679 crore in BE 2019-20
• National Education Mission allocation increased by about 20% to ₹ 38,572 crore in BE 2019-20
• Allocation for Integrated Child Development Scheme (ICDS) increased by over 18% to ₹ 27,584 crore in BE 2019-20
• Substantial increase in allocation for the Scheduled Castes and Scheduled Tribes -
- Allocation for SCs increased by 35.6% - from ₹ 56,619 crore in BE 2018-19 to ₹ 76,801 crore in BE for 2019-20
- Allocation for the STs increased by 28% - from 39,135 crore in BE 2018-19 to ₹ 50,086 crore in 2019-20 BE
• Government confident of achieving the disinvestment target of 80,000 crore
• Focus now on debt consolidation along with fiscal deficit consolidation program.
• Indian filmmakers to get access to Single window clearance as well for ease of shooting films

MSME and Traders
• 2% interest subvention on an incremental loan of ₹ 1 crore for GST registered SMEs
• Atleast 3% of the 25% sourcing for the Government undertakings will be from women owned SMEs.

.
=======>
.
#GSTUpdates #Circulars #Orders #Amendments

On 1st February’2019 CBIC has issued 5 circulars and removal of difficulty orders to give effect of Amendment Acts’2018 (to the earlier issued circulars) which have been brought in force with effect from 01st February’2019.

1. Seeks to make amendments in the earlier issued circulars in wake of amendments in the CGST Act, 2017 (which shall come into force w.e.f. 01.02.2019).
Circular No. 88/07/2019-GST https://bit.ly/2GhQ7KX

2. Seeks to make amendments in the earlier issued circulars in wake of amendments in the IGST Act, 2017 (which shall come into force w.e.f. 01.02.2019).
Circular No. 04/01/2019-GST https://bit.ly/2MJJ4M8

3. Seeks to supersede Removal of Difficulties Order No. 1/2017 - Central Tax dated 13.10.2017 in view of the amendment to Section 10 of the CGST Act, 2017 (regarding allowing registered persons opting for Composition Scheme to supply services up to a limit) coming into force w.e.f. 01.02.2019
Order No. 1/2019 - Central Tax https://bit.ly/2D2BF6f

4. Seeks to amend Removal of Difficulties Order no 4/2018-CT to extend the due date for furnishing of FORM GSTR – 8 for the months of October, 2018 to December, 2018 till 07.02.2019
Order No. 2/2019 - Central Tax https://bit.ly/2DOOcvN

5. Seeks to supersede Removal of Difficulties Order No. 1/2017 - Union Territory Tax dated 13.10.2017 in view of the amendment to Section 10 of the CGST Act, 2017 (regarding allowing registered persons opting for Composition Scheme to supply services up to a limit) coming into force w.e.f. 01.02.2019.
Order No. 1/2019 - Union Territories Tax https://bit.ly/2t0W6Mj

6. CBIC has issued Removal of Difficulty Order No.2/2018 – Central Tax, dated 31 Dec 2018 (attached) i.e. Central Goods and Services Tax (Second Removal of Difficulties) Order, 2018, to extend the time limit for availing the input tax credit (‘ITC’) on invoices and debit note pertaining to invoices issued during the financial year (‘FY’) 2017-18.

In terms of the said order taxpayers can avail credit of any missing invoices or debit notes upto the due date of furnishing GSTR 3B return for the month of March 2019 (i.e 20th April 2019) in respect of any invoice issued in the Financial year 2017-18; or debit note pertaining to invoices issued in the Financial year 2017-18

Provided details of such invoices or debit notes are uploaded by the suppliers in their GSTR - 1 return by the due date of filling such return for the month of March 2019 (i.e. 11th April 2019)

Further, with respect to availment of credit on any missing Bill of entries/invoices pertaining to reverse charge payments are concerned, the said order does not explicitly provide for such situations and in the event taxpayers avail credit on such missing BOE/invoices pertaining to reverse charge payments, the same can be disputed by GST Authorities.

Further, in terms of the said order the supplier also needs to need to rectify the error or omission regarding delay in uploading the invoices in the GSTR 1 return and pay the tax liability accruing on account of the same in his GSTR 3B return by the due date of filling the said return for the month of March 2019 (i.e. 20th April 2019)

.
=======>
.

📒 NOTIFICATION NO. 03/2019 – CENTRAL TAX

⛳ RULE 21A. SUSPENSION OF REGISTRATION

🌴  Where a registered person has applied for cancellation of registration under rule 20, the registration shall be deemed to be suspended from the date of submission of the application or the date from which the cancellation is sought, whichever is later, pending the completion of proceedings for cancellation of registration under rule 22.

🌴Where the proper officer has reasons to believe that the registration of a person is liable to be cancelled under section 29 or under rule 21, he may, after affording the said person a reasonable opportunity of being heard, suspend the registration of such person with effect from a date to be determined by him, pending the completion of the proceedings for cancellation of registration under rule 22.

🌴 A registered person, whose registration has been suspended under sub-rule (1) or sub-rule (2), shall not make any taxable supply during the period of suspension and shall not be required to furnish any return under section 39.

🌴 The suspension of registration under sub-rule (1) or sub-rule (2) shall be deemed to be revoked upon completion of the proceedings by the proper officer under rule 22 and such revocation shall be effective from the date on which the suspension had come into effect.”

.
=======>
.
Important update
Insertion of Section 49A

49A. Notwithstanding anything contained in section 49, the input tax credit on account of central tax, State tax or Union territory tax shall be utilised towards payment of integrated tax, central tax, State tax or Union territory tax, as the case may be, only after the input tax credit available on account of integrated tax has first been utilised fully towards such payment.

This will help to generate more revenue for States. in order to protect interest of States, this provision is inserted. But it is harsh for taxpayers.