Last chance to claim “Unclaimed ITC” in September 2018 return

GSTR 3B for September 2018 is the Last return to claim Unclaimed Input Tax Credit on the invoices raised during “July 2017 to March 2018.”

1. PENDING INPUT TAX CREDIT TO BE AVAILED BEFORE FILING GSTR-3B OF SEPTEMBER 2018

Section 16(4) of the Central Goods and Services tax Act, 2017 provides that the Input Tax Credit (ITC) on the invoices raised during July 2017 to March 2018 can be availed by the registered person on earliest of the following dates:

  • On or before the due date of furnishing the return for the month of September 2018, e., 20-10-2018 (unless extended),

OR

  • Before filing of annual return for July, 2017 to March,
  • Therefore, the registered persons are advised to avail of the pending ITC pertaining to invoices raised in July, 2017 to March, 2018 by the vendor within the due date of filing the return of September 2018.
  • Therefore, all clients are advised that the return in Form GSTR-3B for September 2018 should be filed within the due date, e., 20th October 2018 (for availment of credit on invoices / debit note of 2017-18) to avoid any action of reversal of credit from the department.

The following activities have to be carried out by the company for each GST registration before filing the GSTR-3B of September 2018 and avail of the pending eligible ITC, otherwise the ITC on the same shall lapse.

  1. Reconciliation of ITC availed in GSTR-3B with the books: Reconciliation of ITC availed in books and that availed in GSTR-3B. There may be instances where due to human/system error, the ITC has not been availed in GSTR-3B. Such invoices are required to be traced so that the ITC can be availed within the time frame
  2. Reconciliation of ITC availed in GSTR-3B with ITC available as per GSTR-2A: Presently, there is no requirement to file or verify GSTR 2A return. However, there may be many reasons for difference between credit availed under GSTR-3B & credit appearing under GSTR-2A. For example:
  • There may be cases where vendor has sent the invoice which the company has not received at all. In such cases, the company is required to follow up with the vendor and get the invoices and then avail of ITC within the time prescribed above.
  • In many cases, ITC on bank charges has not been taken as invoice may not be received from Bank. In such cases, the company is required to follow up with the bank and get the invoices and then avail of ITC within the time prescribed above.
  • There have been instances where GSTIN number was not provided to the vendors initially resulting in issuance of invoice as B2C. In such cases, the company must get the invoices amended from the vendor as B2B before availing of the ITC and assure that the vendor rectifies the same in his GSTR-1 not later than GSTR-1 for the month of September’2018.
  • A reconciliation between ITC as per GSTR-2A and as per books will reveal such differences (if any). Hence, such activity may be carried out to avail of credit at the time of filing September 2018 return within the due date.
  • ITC available on distribution by ISD: All the recipient units are required to avail of the ISD credit based on the invoices issued by ISD. It is advised that all such ITCs distributed on ISD invoices issued in July 2017 to March 2018, shall be availed on or before due date of Sept 2018 return.
  • Debit note issued during 2018-19 by vendor for invoices issued in 2017-18:  As per section 16 (4) of the Central Goods and Services Tax Act, ITC on debit note issued by vendor during the current year, i.e., 2018-19 which is pertaining to invoices raised in 2017-18 has to be availed before due date of filing of annual return OR before due date of filing GSTR-3B for the month of September’18, whichever is earlier. Therefore, the company has to evaluate all the debit notes issued during the periods 1-4-2018 to 30-9-2018 pertaining to the original invoices issued during the period 1-7-2017 to 31-3-2018. E.g., ITC on debit note issued by vendor in April’18 against the original invoice pertaining to March’18 has to be availed on or before due date of Sept. 2018 return.

2. OTHER IMPORTANT POINTS TO BE CONSIDERED BEFORE FILING GSTR-3B/ GSTR-1 OF SEPT’18

  • Rectification of error or omission of invoices: In case of any errors made while uploading Invoices in GSTR-1, the company can rectify the invoices in GSTR-1 in subsequent months. However, as per section 37, rectification of such invoices can be made before filing GSTR-1 for the month of September OR before filing annual return, whichever is earlier. Similarly, the invoices which have been missed in GSTR- 1 for July’17 to March’18 can be uploaded in GSTR- 1 of September 2018. Further, corrections in GSTR-3B should also be done till the return of September 2018.
  • Credit Notes: The credit notes for the periods 01-07-2017 to 31-03-2018 have to be issued & uploaded in GSTR-1 before filing annual return OR before filing GSTR-1 for the month of September, whichever is earlier. If such credit notes are not uploaded on or before filing GSTR-1, then the liability cannot be reduced to that extent.
  • Cross-charging: The Head office provides administration/business support services (Tax/HR/Legal/Finance Team) to other units/branches located in different States or different registrations, i.e., distinct persons which is considered as supply of services and, accordingly, GST has to be charged on the same. Therefore, Head office has to cross charge and pay GST on the same (if not done) to all distinct persons at the earliest. 
  • Reverse charge liability paid under normal registration on behalf of ISD unit: Reverse charge liability cannot be discharged under ISD and, therefore, the same has to be paid under the normal registration in the State in which ISD is registered. Thereafter, an invoice has to be raised on ISD as per rule 54 (1A) for common input services so that the same can be distributed to distinct persons at the earliest. It is advisable that the invoice shall be raised on ISD in the month in which ITC is availed under the normal registration.

List of Changes in GST Rate on Goods in 28th GST Council Meeting

GST Council made various recommendations for changes in the GST law & rate of various goods and services in its 28th meeting held on 21 July 2018.

Changes will be effective after being approved by the Parliament as well as the State legislature whereas changes in the rates will be effective after issuance of notifications which are likely by 27 July 2018.

  1. Changes in rate of tax : The Council has recommended changes in the rate of tax of various goods and services. Changes in the rate of tax for some of the key goods are listed below:
Details Current Rate Proposed Rate
Paints and varnishes (including enamels and lacquers), specified putty and resin cement 28% 18%
Refrigerators, freezers and other refrigerating or freezing equipment including water cooler, milk cooler, refrigerating equipment for leather industry, ice cream freezer etc. 28% 18%
Washing machines, vacuum cleaners, domestic electrical appliances such as food grinders and mixers, food or vegetable juice extractor, storage water heater, immersion heaters, shaver, hair clippers, hair dryers, hand dryers, electric smoothing irons etc. 28% 18%
Television sets up to the size of 68 cm 28% 18%
Lithium-ion batteries 28% 18%
Special purpose motor vehicles, for instance crane lorries, fire fighting vehicle, concrete mixer lorries, spraying lorries 28% 18%
Works trucks [self-propelled, not fitted with lifting or handling equipment] of the type used in factories, warehouses, dock areas or airports for short transport of goods, trailers and semi-trailers 28% 18%
Miscellaneous articles such as scent sprays, toilet sprays, powder-puffs and pads for application of cosmetics or toilet preparations 28% 18%
Fuel cell vehicle 28% 12%
Compensation cess also proposed to be exempt
     
Stone/Marble/Wood Deities 12%  Exempt
Sanitary Napkins  12%  Exempt
     
Bamboo flooring 18% 12%
Brass Kerosene Pressure Stove 18% 12%
Hand Operated Rubber Roller 18% 12%
Zip and Slide Fasteners 18% 12%
     
Footwear having a retail sale price up to Rs. 1,000 per pair 18% 5%
Ethanol for sale to Oil Marketing Companies for blending with fuel 18% 5%
Solid bio fuel pellets 18% 5%
     
Chenille fabrics and other fabrics under heading 5801 12% 5%
Phosphoric acid of fertilizer grade 12% 5%
Knitted cap/topi having retail sale value not exceeding Rs 1,000 12% 5%
Specified handicraft items 18% or 12% 12% or 5%

 B. The Council further issued clarifications regarding the applicable rate on the following goods:

  • Milk enriched with vitamins or minerals salt (fortified milk) classifiable under heading 0401 as milk and hence, exempt from GST
  • Beet and cane sugar, including refined beet and cane sugar, (heading 1701) attracts GST at 5%
  • Water supplied for public purposes (other than in sealed containers) does not attract GST
  • Marine engine (sub-heading 8408 10 93) attracts GST at 5%
  • Unpolished kota and similar stones (except marble and granite) attracts GST at 5% whereas ready to use polished kota and similar stones attracts GST at 18%

C. Changes in the rate and mechanism of applicability of GST for some of the key services are listed below:

Details Current Rate Proposed Rate
E-books for which print version exists 18% 5%
Warehousing of minor forest produce 18% Exempt
Installation and commissioning undertaken by electricity distribution companies for extending electricity distribution network up to the tube well of the farmer/ agriculturalist for agricultural use 18% Exempt
Services provided by FSSAI to food business operators 18% Exempt
Services by an old age home run by State / Central Government or a body registered under Section 12AA of the Income Tax Act to its residents aged 60 years or more against consideration up to INR 25,000 per month per member, inclusive of charges for boarding, lodging and maintenance 18% Exempt
Reinsurance Services provided to specified Insurance Schemes funded by Government 18% Exempt
Import of services by Foreign Diplomatic Missions / UN and other International Organizations, based on reciprocity 18% Exempt
Services provided by an establishment of a person in India to any establishment of that person outside India (i.e. related party) in banking and IT sectors 18% Exempt

D.The Council made some further changes and issued clarifications regarding various services, as below:

  • The rate of tax for accommodation services by hotels etc. will be determined on the basis of transaction value, instead of declared tariff
  • Composite supply of food and drinks in restaurant, mess, canteen, eating joints and such supplies to institutions (educational, office, factory, hospital) on contractual basis will be liable to GST at 5%; the Council clarified that the scope of outdoor catering is restricted to supplies in case of outdoor/indoor functions that are event based and occasional in nature
  • Exemption granted on outward transportation of all goods by air and sea to be extended up to 30 September 2019
  • Composite supply of multimodal transport will be liable to GST at 12% under forward charge with availability of input tax credit
  • Reduced rate of GST on composite supply of works contract received by the Government or a local authority in the course of their sovereign functions
  • An explanation to be inserted in the relevant notification to define the term ‘renting of immovable property’
  • Liability of GST on services provided by individual direct sales agents to banks/NBFCs to be paid under reverse charge by the banks/NBFCs; services by non-individuals (corporate, partnership firms) to banks/NBFCs would continue under forward charge.

2. GST Return Filing process further simplified

  • Regular taxpayers with a turnover of up to Rs 5 crores can opt to file GST return on a quarterly basis against earlier limit of Rs. 1.5 crores. However, have to pay taxes monthly through a challan.
  • Regular taxpayers with turnover over Rs. 5 crores, have to file monthly returns. The process would be based on Invoice “UPLOAD – LOCK – PAY TAX”.
  • It is proposed, NIL return filers (no purchase and no sale) shall be given facility to file the return by sending SMS.

3. For Composite Dealers                                                                      

  • Now service providers can join: Limit equal to or below 10% of the turnover of services rendered or Rs 5 lakhs, whichever is higher shall be fixed for opting into the scheme. 
  • Restaurant services are not be included to reckon this criterion.

4. On GST Registration

  • 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.
  • While the GST registration cancellation application is under process, the registration will be treated as temporarily suspended. Thus, taxpayers will not have to comply with GST law (No return filing).
  • E-commerce operators needed to have compulsory GST registration whom TCS is applicable.
  • Registration threshold increase from Rs. 10 lakhs to Rs. 20 lakhs for special category states.

5. Reverse charge mechanism deferred for a year till 30th Sept 2019

  • Meanwhile, an amendment is proposed to Levy GST on reverse charge mechanism only on specified goods in case of certain notified classes of registered persons who receive supplies from unregistered suppliers.

6. Relief to taxpayers up to 31st August 2018 to complete the registration

  • Taxpayers who filed Part A of FORM GST REG-26, but not Part B of the said FORM are requested to approach the jurisdictional Central Tax/State Tax nodal officers with the necessary details on or before 31st August 2018. The Nodal officer would then forward the details to GSTN. 
  • The late fee payable for delayed filing of return in such cases is decided to be waived. First, taxpayers pay late fees, the same will then be reversed in the cash ledger under the tax head.

7. Important announcement regards Invoicing

Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a Financial Year. 

8. What’s in for Exporters?

  • Extension of the exemption by another year up to 30th September, 2019 granted on outward transportation of all goods by air and sea, as relief to the exporter of goods.
  • Services provided in sectors like banking, IT have been provided relief by exempting services supplied by an establishment of a person in India to any establishment of that person outside India [related party].
  • E-books will attract 5% GST instead of earlier 18%.

9. The scope of ITC widened : To include further in its scope:

  • Most of the activities or transactions specified in Schedule III;
  • Motor vehicles for transportation of persons, with seating capacity of more than thirteen (including driver), vessels and aircraft;
  • Motor vehicles for transportation of money for or by a banking company or financial institution;
  • Services of general insurance, repair and maintenance in respect of motor vehicles, vessels and aircraft on which credit is available; and
  • Goods or services which are obligatory for an employer to provide to its employees, under any law for the time being in force.
  • 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. Liability to pay interest is being done away with in that case.
  • 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.
  • The order of cross-utilisation of input tax credit is being rationalised. One must await for further announcements giving clarity to this.

10. Following have been kept out of scope of ‘Supply’

  • 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;
  • Supply of warehoused goods to any person before clearance for home consumption; and
  • Supply of goods in case of high sea sales.

Legislative changes will be effective after being approved by the Parliament as well as the State legislature whereas changes in the rates will be effective after issuance of notifications which are likely by 27 July 2018.

 

 

 

 

Can I file Income Tax Returns for previous year now?

Income Tax Returns filing for Previous Financial years. How to file old ITRs? Can I file Income Tax Return for last 2, 3, 4 or 5 Assessment years? How to file Previous Year’s ITR online now? Penalty for late filing of ITR, after due date.

Source: Can I file Income Tax Returns for previous year now?

How many past years’ Income Tax Returns can be filed?

Every individual whose gross total income exceeds the taxable limit is liable to file income tax return (ITR). Therefore, if your income is over Rs 2.5 lakh, then it is compulsory for you to file your income tax return in India.

As of now, in this financial year you can file your income tax returns for the previous two financial years.

For example : In the FY 2017-18, up till 31st March 2018, you can file return for the previous two financial years i.e., FY 2016-17 (or AY 2017-18) and FY 2015-16 (AY 2016-17).

Can I file my FY 2015-16 / AY 2016-17 ITR now? – Yes, you can file it on or before 31-March-2018.

Can I file my FY 2016-17 / AY 2017-18 ITR now? – Yes, till 31-March-2018.

However, with the amendment of Finance Act 2016, from AY 2017-18 (FY 2016-17) this process is going to change. Income Tax belated returns should now be filed before the end of the relevant Assessment Year only.

For example, return for FY 2016-17 can be belatedly filed on or before31-03-2018 only.

Therefore, ideally, 31st March, 2018 is the deadline for all the belated tax return filers for the Assessment Years 2016-17 & 2017-18.

 

The ITR of FY 2017-18 (AY 2018-19) can be filed before 31st July, 2018. In case, you miss this deadline, you can file a belated return (or can revise, if filed) before 31st March, 2019 only. (Kindly note that belated returns of past many years can be filed in response to an Income Tax Notice.)

Another important point to note is that from the Assessment Year 2018-19, the time limit for filing a revised return rectifying any omission, error etc., made in the original tax return has also been reduced and such revision has to be done on or before the end of the relevant AY.

For example : Let’s say you file your FY 2017-18 ITR before 31st July, 2018. Later, you may realize that there has been an error in the original ITR and would like to revise it. In such a case, you can revise it on or before 31st March, 2019 only. (For Financial Year 2017-18, the relevant Assessment Year is 2018-19.)

Belated Returns & Drawbacks

Though you are given some time to file a belated return, such returns come with some drawbacks and penalties as below ;

  • For returns of FY 2017-18 and onwards, penalty of Rs 5,000 will be charged for returns filed after due date but before 31st December.
  • If returns are filed after 31st December, a penalty of Rs 10,000 shall apply. However, penalty will be Rs 1,000 for those with income upto Rs 5 Lakhs. 
  • Losses incurred (other than house property loss) are not allowed to be carried forward to subsequent years to be set off against the future gains in case where return has not been filed within the due date. (Read : ‘How to set-off Capital Losses on Mutual Funds, Stocks, Property, Gold, Bonds & Debentures?‘)
  • If there are any taxes which are unpaid, penal interest @ 1% per month or part thereof will be charged till the date of payment of taxes (as per u/s 234A).
  • Penal interest may also be applicable under section 234 B and 234 C w.r.t default in payment of Advance Tax (if any).
  • In case, you pay taxes but could not file your ITR then penal interest will not be levied. However other drawbacks such as non-carry forward of losses  will be applicable.

(Source : https://www.relakhs.com/income-tax-returns-previous-years/)

E-Way Bill under GST

Detail guide on practical aspects of e-way bill in GST

List of Goods not liable for E-way Bill :

Notification E Way BILL (30.8.2017)

  • E-way bill is an electronic document generated on the GST portal evidencing movement of goods.
  • The nationwide e-way Bill system will be ready to be rolled out on a trial basis latest by 16th January, 2018 i.e, from tomorrow and from the 1st February the implementation of nationwide e-way Bill system for interstate supply will be done on a compulsory basis.
  • What is the importance of E-way bill for Consignor?
    • Consignor means supplier.
    • Every registered person who causes movement of goods of consignment value more than Rs. 50000/- is required to furnish E-way bill.
    • In that following details need to be given:
      • the details of GSTIN of recipient,
      • place of delivery (PIN Code),
      • invoice or challan number and date,
      • value of goods,
      • HSN code,
      • transport document number etc
    • On the basis of this information, the GSTR 1 of the supplier will be generated on the portal. That’s why it is important for the Consignor.
  • What is the importance of E-way bill for Consignee?
    • Consignee means receiver.
    • The e-way bill is very much important for the consignee. All the details of consignment received can be cross checked by E-waybill. Whether the supply is as per our requirement?, its value, HSN Codes, etc can be verified through E-way bill. ITC allowance may be affected due to this on the proof of receipt of goods. As, ITC is available on receipt of goods only.
  • Is there any relation between transporter and E-way bill?
    • Transporter is an important link between consignor and consignee.
    • If either the consignor or consignee do not generate the e-way bill and the value of goods is more than Rs.50,000/- then responsibility of the generating e-way bill will be of the transporter.
    • Transporter should check whether the consignment is sent to right person, or received from correct supplier, Vehicle no., etc.
    • Where a vehicle has been intercepted and detained, the transporter may upload the said information in FORM GST EWB-04 on the common portal.
    • Ataxable person who transports any taxable goods without the cover of e-way bill shall be liable to a penalty of Rs.10,000/- or tax sought to be evaded whichever is greater.
  • What is the importance of E-way bill for Tax officer?
    • E-way bill and tax officer will come face to face at two times.
    • First, they will check the consignment on the roads at the time of transportation and
    • second, at the time of assessment, the tax officer will check the documents i.e, e-way bill.
    • Where any contravention found, the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure.
    • Unlawful acts of Consignor, consignee, transporter or tax officer may lead to corruption on the road.
  • The E-way bill is starting from 1st February 2018. Transporter is an important link between consignor, consignee and transportation. If the transporter make any wrong things, then the consignor and consignee will be found in difficulty. Therefore, the transporter should transport the goods after complying with the GST provisions.

New GST Tax Rates for 178 Items

Recommendations made On GST Rate changes by the GST Council as per discussions in its 23rd Meeting on 10th November, 2017 held at Guwahati

 

a)In the meeting held today, that is 10th November, 2017, the Council has recommended major relief in GST rates on certain goods and services. These recommendations spread across many sectors and across commodities.

b)As per these recommendations, the list of 28% GST rated goods is recommended to be pruned substantially, from 224 tariff headings [about 18.5% of total tariff headings at 4-digit] to only 50 tariff headings including 4 headings which have been partially reduced to 18% [about 4% of total tariff headings at 4-digit].  

c)Further, the Council has recommended changes in GST rates on a number of goods, so as to rationalise the rate structure with a view to minimise classification disputes.

d)The Council has also recommended issuance of certain clarifications to address the grievance of trade on issues relating to GST rates and taxability of certain goods and services.

e)On the services side also, the Council recommended changes in GST rates to provide relief to aviation & handicraft sectors and restaurants.  

   Major recommendations of the Council are summarised below.

(I)      Pruning of list of 28% rated goods:  The Council has recommended reduction in GST rate from 28% to 18% on goods falling in 178 headings at 4-digit level (including 4 tariff heading that are partially pruned). After these changes, only 50 items will attract GST rate of 28%.

a)Goods on which the Council has recommended reduction in GST rate from 28% to 18% include:

  • Wire, cables, insulated conductors, electrical insulators, electrical plugs, switches, sockets, fuses, relays, electrical connectors
  • Electrical boards, panels, consoles, cabinets etc for electric control or distribution
  • Particle/fibre boards and ply wood. Article of wood, wooden frame, paving block
  • Furniture, mattress, bedding and similar furnishing
  • Trunk, suitcase, vanity cases, brief cases, travelling bags and other hand bags, cases
  • Detergents, washing and cleaning preparations
  • Liquid or cream for washing the skin
  • Shampoos; Hair cream, Hair dyes (natural, herbal or synthetic) and similar other goods; henna powder or paste, not mixed with any other ingredient;
  • Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, perfumery, cosmetic or toilet preparations, room deodorisers
  • Perfumes and toilet waters
  • Beauty or make-up preparations
  • Fans, pumps, compressors
  • Lamp and light fitting
  • Primary cell and primary batteries
  • Sanitary ware and parts thereof of all kind
  • Articles of plastic, floor covering, baths, shower, sinks, washbasins, seats, sanitary ware of plastic
  • Slabs of marbles and granite
  • Goods of marble and granite such as tiles
  • Ceramic tiles of all kinds
  • Miscellaneous articles such as vacuum flasks, lighters,
  • Wrist watches, clocks, watch movement, watch cases, straps, parts
  • Article of apparel & clothing accessories of leather, guts, furskin, artificial fur and other articles such as saddlery and harness for any animal
  • Articles of cutlery, stoves, cookers and similar non electric domestic appliances
  • Razor and razor blades
  • Multi-functional printers, cartridges
  • Office or desk equipment
  • Door, windows and frames of aluminium.
  • Articles of plaster such as board, sheet,
  • Articles of cement or concrete or stone and artificial stone,
  • Articles of asphalt or slate,
  • Articles of mica
  • Ceramic flooring blocks, pipes, conduit, pipe fitting
  • Wall paper and wall covering
  • Glass of all kinds and articles thereof such as mirror, safety glass, sheets, glassware
  • Electrical, electronic weighing machinery
  • Fire extinguishers and fire extinguishing charge
  • Fork lifts, lifting and handling equipment,
  • Bull dozers, excavators, loaders, road rollers, 
  • Earth moving and levelling machinery,
  • Escalators,
  • Cooling towers, pressure vessels, reactors
  • Crankshaft for sewing machine, tailor’s dummies, bearing housings, gears and gearing; ball or roller screws; gaskets
  • Electrical apparatus for radio and television broadcasting
  • Sound recording or reproducing apparatus
  • Signalling, safety or traffic control equipment for transports
  • Physical exercise equipment, festival and carnival equipment, swings, shooting galleries, roundabouts, gymnastic and athletic equipment
  • All musical instruments and their parts
  • Artificial flowers, foliage and artificial fruits
  • Explosive, anti-knocking preparation, fireworks
  • Cocoa butter, fat, oil powder,
  • Extract, essence ad concentrates of coffee, miscellaneous food preparations
  • Chocolates, Chewing gum / bubble gum
  • Malt extract and food preparations of flour, groats, meal, starch or malt extract
  • Waffles and wafers coated with chocolate or containing chocolate
  • Rubber tubes and miscellaneous articles of rubber
  • Goggles, binoculars, telescope,
  • Cinematographic cameras and projectors, image projector,
  • Microscope, specified laboratory equipment, specified scientific equipment such as for meteorology, hydrology, oceanography, geology
  • Solvent, thinners, hydraulic fluids, anti-freezing preparation

b)Goods on which the Council has recommended reduction in GST rate from 28% to 12% are:

  • Wet grinders consisting of stone as grinder
  • Tanks and other armoured fighting vehicles

(II)        Other changes/rationalisation of GST rates on goods:

 a)18% to 12%

  • Condensed milk
  • Refined sugar and sugar cubes
  • Pasta
  • Curry paste, mayonnaise and salad dressings, mixed condiments and mixed seasoning
  • Diabetic food
  • Medicinal grade oxygen
  • Printing ink
  • Hand bags and shopping bags of jute and cotton
  • Hats (knitted or crocheted)
  • Parts of specified agricultural, horticultural, forestry, harvesting or threshing machinery
  • Specified parts of sewing machine
  • Spectacles frames
  • Furniture wholly made of bamboo or cane
  • b)18% to 5%
  • Puffed rice chikki, peanut chikki, sesame chikki, revdi, tilrevdi, khaza, kazuali, groundnut sweets gatta, kuliya
  • Flour of potatoes put up in unit container bearing a brand name
  • Chutney powder
  • Fly ash
  • Sulphur recovered in refining of crude
  • Fly ash aggregate with 90% or more fly ash content

c)12% to 5%

  • Desiccated coconut
  • Narrow woven fabric including cotton newar [with no refund of unutilised input tax credit]
  • Idli, dosa batter
  • Finished leather, chamois and composition leather
  • Coir cordage and ropes, jute twine, coir products
  • Fishing net and fishing hooks
  • Worn clothing
  • Fly ash brick

d)5% to nil

  • Guar meal
  • Hop cone (other than grounded, powdered or in pellet form)
  • Certain dried vegetables such as sweet potatoes, maniac
  • Unworked coconut shell
  • Fish frozen or dried (not put up in unit container bearing a brand name)
  • Khandsari sugar

e)Miscellaneous

  • GST rates on aircraft engines from 28%/18% to 5%, aircraft tyres from 28% to 5% and aircraft seats from 28% to 5%.
  • GST rate on bangles of lac/shellac from 3% GST rate to Nil.

(III) Exemption from IGST/GST in certain specified cases:

  • Exemption from IGST on imports of lifesaving medicine supplied free of cost by overseas supplier for patients, subject to certification by DGHS of Centre or State and certain other conditions
  • Exemption from IGST on imports of goods (other than motor vehicles) under a lease agreement if IGST is paid on the lease amount.
  • To extend IGST exemption presently applicable to skimmed milk powder or concentrated milk, when supplied to distinct person under section 25(4) for use in production of milk for distribution through dairy cooperatives to where such milk is distributed through companies registered under the Companies Act.
  • Exemption from IGST on imports of specified goods by a sports person of outstanding eminence, subject to specified conditions
  • Exemption from GST on specified goods, such as scientific or technical instruments, software, prototype supplied to public funded research institution or a university or IISc, or IITs or NIT.
  • Coverage of more items, such as temporary import of professional equipment by accredited press persons visiting India to cover certain events, broadcasting equipments, sports items, testing equipment, under ATA carnet system. These goods are to be re-exported after the specified use is over.

(IV)Other changes for simplification and harmonisation or clarification of issues

  • To clarify that inter-state movement of goods like rigs, tools, spares and goods on wheel like cranes, not being in the course of furtherance of supply of such goods, does not constitute a supply. This clarification gives major compliance relief to industry as there are frequent inter-state movement of such kind in the course of providing services to customers or for the purposes of getting such goods repaired or refurbished or for any self-use.  Service provided using such goods would in any case attract applicable tax.
  • To prescribe that GST on supply of raw cotton by agriculturist will be liable to be paid by the recipient of such supply under reverse charge.
  • Supply of e-waste attracts 5% GST rate. Concerned notification to be amended to make it amply clear that this rate applies only to e-waste discarded as waste by the consumer or bulk consumer.

(V)        Changes relating to GST rates on certain services 

(A)        Exemptions / Changes in GST Rates / ITC Eligibility Criteria                                

  • All stand-alone restaurants irrespective of air conditioned or otherwise, will attract 5% without ITC. Food parcels (or takeaways) will also attract 5% GST without ITC.
  • Restaurants in hotel premises having room tariff of less than Rs 7500 per unit per day will attract GST of 5% without ITC.
  • Restaurants in hotel premises having room tariff of Rs 7500 and above per unit per day (even for a single room) will attract GST of 18% with full ITC.
  • Outdoor catering will continue to be at 18% with full ITC.
  • GST on services by way of admission to “protected monuments” to be exempted.
  • GST rate on job work services in relation to manufacture of those handicraft goods in respect of which the casual taxable person has been exempted from obtaining registration, to be reduced to 5% with full input tax credit. 

 

(B)    Rationalization of certain exemption entries 

  • The existing exemption entries with respect to services provided by Fair Price Shops to the Central Government, State Governments or Union Territories by way of sale of food grains, kerosene, sugar, edible oil, etc. under Public Distribution System (PDS) against consideration in the form of commission or margin, is being rationalized so as to remove ambiguity regarding list of items and the category of recipients to whom the exemption is available.
  • In order to maintain consistency, entry at item (vi) of Sr. No.3 of notification No. 11/2017-CT(R) will be aligned with the entries at items (ii), (iii), (iv) and (v) of SI.No.3. [The word “services” in entry (vi) will be replaced with “Composite supply of Works contract as defined in clause 119 of Section 2 of CGST Act, 2017”].
  • In order to obviate dispute and litigation, it is proposed that irrespective of whether permanent transfer of Intellectual Property is a supply of goods or service.-

(i) permanent transfer of Intellectual Property other than Information Technology software attracts GST at the rate of 12%; and

(ii) permanent transfer of Intellectual Property in respect of Information Technology software attracts GST at the rate of 18%.

(C)    Clarifications

  • It is being clarified that credit of GST paid on aircraft engines, parts & accessories will be available for discharging GST on inter–state supply of such aircraft engines, parts & accessories by way of inter-state stock transfers between distinct persons as specified in section 25 of the CGST Act.
  • A Circular will be issued clarifying that processed products such as tea (i.e. black tea, white tea etc.), processed coffee beans or powder, pulses (de-husked or split), jaggery, processed spices, processed dry fruits & cashew nuts etc. fall outside the definition of agricultural produce given in notification No. 11/2017-CT(R) and 12/2017-CT(R) and therefore the exemption from GST is not available to their loading, packing, warehousing etc.
  • A suitable clarification will be issued that (i) services provided to the Central Government, State Government, Union territory under any insurance scheme for which total premium is paid by the Central Government, State Government, Union territory are exempt from GST under Sl. No. 40 of notification No. 12/2017-Central Tax (Rate);  (ii) services provided by State Government by way of general insurance (managed by government) to employees of the State government/ Police personnel, employees of Electricity Department or students are exempt vide entry 6 of notification No. 12/2017-CT(R) which exempts Services by Central Government, State Government, Union territory or local authority to individuals.
  1. It is proposed to issue notifications [giving effect to these recommendations of the Council] on 14th/15thNovember, 2017, to be effective from 00hrs on 15th of November, 2017.

 

 

Decisions in 23rd GST Council meeting at Guwahati

Recommendations made by the GST Council in the 23rd meeting at Guwahati on 10th November, 2017 

The GST Council, in its 23rd meeting held at Guwahati on 10th November 2017, has recommended the following facilitative measures for taxpayers:

Return Filing

  1. a)The return filing process is to be further simplified in the following manner:
  2.             All taxpayers would file return in FORM GSTR-3B along with payment of tax by 20th of the succeeding month till March, 2018.
  3.             For filing of details in FORM GSTR-1 till March 2018, taxpayers would be divided into two categories. Details of these two categories along with the last date of filing GSTR 1 are as follows:

(a) Taxpayers with annual aggregate turnover uptoRs. 1.5 croreneed to file GSTR-1 on quarterly basis as per following frequency:

Period Dates
Jul- Sep 31st Dec 2017
Oct- Dec 15th Feb 2018
Jan- Mar 30th April 2018

(b)      Taxpayers with annual aggregate turnover more thanRs. 1.5 croreneed to file GSTR-1 on monthly basis as per following frequency:

Period Dates
Jul- Oct 31st Dec 2017
Nov 10th Jan 2018
Dec 10th Feb 2018
Jan 10th Mar 2018
Feb 10th Apr 2018
Mar 10th May 2018

                iii.            The time period for filing GSTR-2 and GSTR-3 for the months of July, 2017 to March 2018 would be worked out by a Committee of Officers. However, filing of GSTR-1 will continue for the entireperiod without requiring filing of GSTR-2 & GSTR-3 for the previous month / period.

  1. b)A large number of taxpayers were unable to file their return in FORM GSTR-3B within due date for the months of July, August and September, 2017.Late fee was waived in all such cases. It has been decided that where such late fee was paid, it will be re-credited to their Electronic Cash Ledger under “Tax” head instead of “Fee” head so as to enable them to use that amount for discharge of their future tax liabilities. The software changes for this would be made and thereafter this decision will be implemented.
  2. c)For subsequent months, i.e. October 2017 onwards, the amount of late fee payable by a taxpayerwhose tax liability for that month was ‘NIL’will be Rs. 20/- per day (Rs. 10/- per day eachunder CGST & SGST Acts) instead of Rs. 200/- per day (Rs. 100/- per day eachunder CGST & SGST Acts).

Manual Filing

  1. d)A facility for manual filing of application for advance ruling is being introduced for the time being.

Further benefits for service providers

  1. e)Exports of services to Nepal and Bhutan have already been exempted from GST. It has now been decided that such exporters will also be eligible for claiming Input Tax Creditin respect of goods or servicesused for effecting such exempt supply of servicesto Nepal and Bhutan.
  2. f)In an earlier meeting of the GST Council, it was decided to exempt those service providers whose annual aggregate turnover is less than Rs. 20 lakhs (Rs. 10 lakhs in special category states except J & K) from obtaining registration even if they are making inter-State taxable supplies of services. As a further measure towards taxpayer facilitation, it has been decided to exempt such suppliers providing services through an e-commerce platform from obtaining compulsory registration provided their aggregate turnover does not exceed twenty lakh rupees. As a result, all service providers, whether supplying intra-State, inter-State or through e-commerce operator, will be exempt from obtaining GST registration, provided their aggregate turnover does not exceed Rs. 20 lakhs (Rs. 10 lakhs in special category States except J & K).

Extension of dates

  1. g)Taking cognizance of the late availability or unavailability of some forms on the common portal, it has been decided that the due dates for furnishing the following forms shall be extended as under:

 

S. No. FORM and Details Original due date Revised due date
1 GST ITC-04 for the quarter July-September, 2017 25.10.2017 31.12.2017
2 GSTR-4 for the quarter July-September, 2017 18.10.2017 24.12.2017
3 GSTR-5 for July, 2017 20.08.2017 or 7 days from the last date of registration whichever is earlier 11.12.2017
4 GSTR-5A for July, 2017 20.08.2017 15.12.2017
5 GSTR-6 for July, 2017 13.08.2017 31.12.2017
6 TRAN-1 30.09.2017 31.12.2017 (One-time option of revision also to be given till this date)

 

Revised due dates for subsequent tax periods will be announced in due course.

 

Benefits for Diplomatic Missions/UN organizations

  1. h)In order to lessen the compliance burden on Foreign Diplomatic Missions / UN Organizations, a centralized UIN will be issued to every Foreign Diplomatic Mission / UN Organization by the Central Government and all compliance for such agencies will be done by the Central Government in coordination with the Ministry of External Affairs.

 

  1.        Relevant notifications for all of the above decisions will be issued shorty, so as to be effective from 15.11.2017.

 

                                                                **************

 

 

GSTR-1 for July 2017

 

  • GSTR 1 prescribes the details to be provided by the taxpayer in relation to outward supplies.
  • Format of GSTR-1 is here.
  • Due date for the month of July for GSTR-1 is 5th September 2017.

Filing GST First Return – GSTR1 Return Offiline Utility – ( हिंदी में ):

 

  • Form GSTR-1 contains 13 tables in which the outward supplies details needs to be captured. Based on the nature of business and the nature of supplies effected during the month, only the relevant tables are applicable, not all. The GSTR-1 format is as follows:
  • Table 1, 2 & 3: Details of GSTIN and aggregate turnover in preceding year.
  • Table 4: Taxable outward supplies made to registered persons (including UIN-holders) other than Zero rated supplies and Deemed Exports.
  • Table 5: Taxable outward inter-State supplies to un-registered persons where the invoice value is more than INR 2.5 Lakh.
  • Table 6: Details of Zero rate supplies and Deemed Exports.
  • Table 7: Details of Taxable supplies (Net of debit notes and credit notes) to unregistered persons other than the supplies covered in Table 5.
  • Table 8: Details of Nil rated, exempted and non GST outward supplies.
  • Table 9: Details of debit notes, credit notes, refund vouchers issued during current period and any amendments to taxable outward supply details furnished in the GSTR1 returns for earlier tax periods in Table 4, 5 & 6.
  • Table 10: Details of debit note and credit note issued to unregistered person.
  • Table 11: Details of Advances Received/Advance adjusted in the current tax period or Amendments of information furnished in earlier tax period.
  • Table 12: HSN-wise summary of outward supplies.
  • Table 13: Documents issued during the tax period.

Click here to view the tables and understand the GSTR 1 format.

GSTR -1 कैसे फाइल करें : 

 

Types of different GST returns and their last date to file in September 17

GST Return Due Date GST Form GST Return Details
5th September,17 Form GSTR-1 ·        The outward supplies made during July, 17, need to be reported in Form GSTR-1.

·        This needs to be filed from 1st to 5th September, 17.

10th September,17 Form GSTR-2 ·        The final claim of ITC on July’s inward supplies needs to be submitted in Form GSTR-2 on GST portal from 6th to 10th September, 17.
15th September,17 Form GSTR-3 ·        The auto-populated Form GSTR-3 of July, 17, needs to be submitted in GST portal by 15th September, 17.
20th September,17 Form GSTR-3B ·        The Form GSTR-3B of August, 17, needs to be filed by 20th September, 17, along with the payment of tax.
20th September,17 Form GSTR-1 ·        The Form GSTR-1 of August needs to be filed by 20 September, 17. This can be filed from 16th to 20th September, 17.
25th September,17 Form GSTR-2 ·        The final claim of ITC on  August’s inward supplies needs to be submitted in Form GSTR-2 on GST portal from 20th to 25th September, 17.
28th September,17 Form GST Tran-1 ·        The businesses who have not opted to claim transitional ITC in discharging July month’s tax liabilities, need to submit the Form GST Tran-1 within 90 days from the date of implementation of GST which is 28th September, 17.
30th September,17 Form GSTR-3 ·        The auto-populated Form GSTR-3 of August, 17 needs to be submitted in GST portal by 30th September, 17.

 

people who are earning rs 5 lakh from fixed deposits are on income tax radar | फिक्स्ड डिपॉजिटवरील व्याज लपवल्यास कारवाई होणार

मुदत ठेवीच्या (फिक्स्ड डिपॉझिट) माध्यमातून मोठे उत्पन्न मिळवणारे लोक आता आयकर विभागाच्या रडारवर आहेत. मुदत ठेवींच्या माध्यमातून ५ लाखांहून अधिक उत्पन्न मिळवणाऱ्या लोकांवर आता आयकर विभागाची नजर असेल.

http://www.loksatta.com/desh-videsh-news/people-who-are-earning-rs-5-lakh-from-fixed-deposits-are-on-income-tax-radar-1539617/

Accounts & Records To Be Maintained Under GST

Accounts & Records :

Section 35 (1)

  • Every registered person shall keep and maintain at his Principle Place of Business,
  • true and correct account of:
    • Production or manufacture of goods;
    • Inward and outward of goods or services or both;
    • Stock of goods;
    • Input tax credit availed;
    • Output tax payable and paid; and
    • Such other particulars as be prescribed
  • In case of multiple place of business, such related accounts records or accounts are to be kept and maintained at such place of business.
  • These accounts and records may also be kept and maintained in electronic form as per the manner prescribed.

Sec 35(3) -The commissioner may also notify additional accounts or documents to be maintained by such specified class of taxable persons.

Sec 35(4) – The commissioner may also relax the provisions of keeping and maintaining accounts and records in respect of any class of taxable persons if he feels that such class of persons are not in position to keep and maintain accounts and records as per the requirements of this section.

Sec 35(5) – Every registered person whose aggregate turnover during a financial year exceeds two crore rupees shall get his accounts audited and he shall furnish a copy of audited annual accounts and a reconciliation statement, duly certified, in FORM GSTR-9C. (Rule 80(3)).

Sec 35(6) – Where registered person fails to account for the goods or services or both in accordance with section 35(1),

  1. the PO shall determine the amount of tax payable on the goods or service not accounted for, as if such goods or services have been supplied by him and
  2. penalty provisions of section 73 & 74 shall apply accordingly.

 

Period for Retention Sec 36

  1. Every registered taxable person required to keep and maintain books of account or other records will maintain the books for at least 72 months, counted from the last date of filing of Annual Return.
  2. In case of appeal or revision or any other proceedings or investigation, such records shall be retained for a period of 1 year after disposal of such appeal or revision or proceedings or investigation or for the period as specified above.

ACCOUNTS AND RECORDS RULES

Rule 56. Maintenance of accounts by registered persons.-

  1. Every registered person shall keep and maintain, in addition to the particulars mentioned in sub-section (1) of section 35, a true and correct account of the: goods or services imported or exported, supplies attracting payment of tax on reverse charge along with the relevant documents, including invoices, bill of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers and refund vouchers.
  2. Every registered person, other than Composition dealer, shall maintain the accounts of stock in respect of:
    • goods received and supplied by him, and such accounts shall contain particulars of the
      • opening balance, receipt,
      • supply,
      • goods lost,
      • stolen,
      • destroyed,
      • written off or
      • disposed of by way of gift or free sample and
      • the balance of stock including
        1. raw materials,
        2. finished goods,
        3. scrap and wastage thereof.
  3. Every registered person shall keep and maintain a separate account of advances received, paid and adjustments made thereto.
  4. Every registered person, other than Composition dealer, shall keep and maintain : an account containing the details of
    • tax payable (including tax payable under RCM),
    • tax collected and paid,
    • input tax, input tax credit claimed, and 
    • a register of
      1. tax invoice,
      2. credit notes,
      3. debit notes,
      4. delivery challan issued or received during any tax period.
  5. Every registered person shall keep the particulars of –
    1. names and complete addresses of suppliers from whom he has received the goods or services chargeable to tax under the Act;
    2. names and complete addresses of the persons to whom he has supplied goods or services, where required under the provisions of this Chapter;
    3.  the complete address of the premises where goods are stored by him, including goods stored during transit along with the particulars of the stock stored therein.
  6. If any taxable goods are found to be stored at any place(s) other than those declared under sub-rule (5) without the cover of any valid documents, the proper officer shall determine the amount of tax payable on such goods as if such goods have been supplied by the registered person.
  7. Every registered person shall keep the books of account at the principal place of business and books of account relating to additional place of business mentioned in his certificate of registration and such books of account shall include any electronic form of data stored on any electronic device. 
  8. Any entry in registers, accounts and documents shall not be erased, effaced or overwritten, and all incorrect entries, otherwise than those of clerical nature, shall be scored out under attestation and thereafter, the correct entry shall be recorded and where the registers and other documents are maintained electronically, a log of every entry edited or deleted shall be maintained.
  9. Each volume of books of account maintained manually by the registered person shall be serially numbered.
  10. Unless proved otherwise, if any documents, registers, or any books of account belonging to a registered person are found at any premises other than those mentioned in the certificate of registration, they shall be presumed to be maintained by the said registered person.
  11. Every agent shall maintain accounts showing the :
    1. particulars of authorization received by him from each principal to receive or supply goods or services on behalf of such principal separately;
    2. particulars including description, value and quantity (wherever applicable) of goods or services received on behalf of every principal 
    3. particulars including description, value and quantity (wherever applicable) of goods or services supplied on behalf of every principal; 
    4. details of accounts furnished to every principal; and
    5. tax paid on receipts or on supply of goods or services effected on behalf of every principal.
  12. Every registered person manufacturing goods shall maintain monthly production accounts showing quantitative details of: raw materials or services used in the manufacture and the goods so manufactured including the waste and by products thereof.
  13. Every registered person supplying services shall maintain the accounts showing quantitative details of: goods used in the provision of services, details of input services utilized and the services supplied. 
  14. Every registered person executing works contract shall keep separate accounts for works contract showing
    1. the names and addresses of the persons on whose behalf the works contract is executed;
    2. description, value and quantity (wherever applicable) of goods or services received for the execution of works contract;
    3. description, value and quantity (wherever applicable) of goods or services utilized in the execution of works contract; 
    4. the details of payment received in respect of each works contract; and 
    5. the names and addresses of suppliers from whom he received goods or services.
  15. The records under the provisions of this Chapter may be maintained in electronic form and the record so maintained shall be authenticated by means of a digital signature. 
  16. Accounts maintained by the registered person together with all the invoices, bills of supply, credit and debit notes, and delivery challans relating to stocks, deliveries, inward supply and outward supply shall be preserved for the period as provided in section 36 and shall, where such accounts and documents are maintained manually, be kept at every related place of business mentioned in the certificate of registration and shall be accessible at every related place of business where such accounts and documents are maintained digitally. 
  17. Any person having custody over the goods in the capacity of a carrier or a clearing and forwarding agent for delivery or dispatch thereof to a recipient on behalf of any registered person shall maintain true and correct records in respect of such goods handled by him on behalf of such registered person and shall produce the details thereof as and when required by the proper officer. 
  18. Every registered person shall, on demand, produce the books of accounts which he is required to maintain under any law for the time being in force. Rule 57.
  1. Generation and maintenance of electronic records.
    1. Proper electronic back-up of records shall be maintained and preserved in such manner that, in the event of destruction of such records due to accidents or natural causes, the information can be restored within a reasonable period of time.
    2. The registered person maintaining electronic records shall produce, on demand, the relevant records or documents, duly authenticated by him, in hard copy or in any electronically readable format.
    3. Where the accounts and records are stored electronically by any registered person, he shall, on demand, provide the details of such files, passwords of such files and explanation for codes used, where necessary, for access and any other information which is required for such access along with a sample copy in print form of the information stored in such files.