23rd GST Council Meeting – GST Rate Changes for Services

In the 23rd GST Council Meeting, GST rate reduction for various goods and services was announced. A major highlight of the 23rd GST Council Meeting was the reduction of GST rates for various goods listed under the 28% slab. In addition to the changes in GST rate for goods, the GST rate for services have also been reduced as follows:

Want to know about other major changes announced at the 23rd GST Council Meeting?

Details of GST Return Due Date Changes announced in the 23rd GST Council Meeting

Details of GST Rate Changes for Goods announced in the 23rd GST Council Meeting

Details of GST Composition Scheme Changes announced in the 23rd GST Council Meeting

GST Registration for Service Providers through E-Commerce

In the 22nd GST Council Meeting, it was decided to exempt those service providers whose annual aggregate turnover is less than Rs. 20 lakhs (Rs. 10 laths in special category states except for Jammu and Kashmir) from obtaining GST registration even if they are mating inter-state taxable supplies of services.

As a further measure towards taxpayer facilitation, it has been decided in the 23rd GST Council Meeting to exempt service providers providing services through an e-commerce platform from obtaining compulsory GST registration provided their aggregate turnover does not exceed Rs.20 lakhs. Thus all service providers, whether supplying intra-state, inter-State or through an e-commerce operator, will be exempt from obtaining GST registration if the average annual turnover does not exceed Rs. 20 lakhs (Rs 10 laths in special category states except for Jammu & Kashmir.

Claim Input Tax Credit for Export of Services to Nepal & Bhutan

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 Credit in respect of goods or services used for effecting such exempt supply of services to Nepal and Bhutan.

GST Rate for Services Reduced for Services

In the 23rd GST Council Meeting, the GST rate for various services was reduced as follows:

Restaurants

All stand-alone restaurants irrespective of air-conditioning or otherwise will now attract 5% without input tax credit. Also, restaurants in hotel premises having room tariff of less than Rs 7500 per unit per day will attract GST of 5% without input tax credit.

Food parcels (or takeaways) will also attract 5% GST without input tax credit. Hence, home delivery order and eating out at restaurants will become cheaper for all persons.

High-End Hotel Restaurants

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 input tax credit. It is important to note the word (even for a single room) in this circular. 18% GST rate will be applicable for restaurants, the moment a hotel has a tariff of over Rs.7500 on its rate card.

Outdoor Catering

Outdoor catering will be taxed at 18% GST rate with full input tax credit.

Job Work

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.

Tickets to Protected Monuments

GST on services by way of admission to “protected monuments will be exempted from GST.

Transfer of Intellectual Property – Other Than Software

Permanent transfer of Intellectual Property other than Information Technology software will attract GST at the rate of 12%.

Transfer of Intellectual Property – Software

Permanent transfer of Intellectual Property in respect of Information Technology software will attract GST at the rate of 18%.

Services Provided to Government under an Insurance Scheme

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.

Services Provided by State Government by way of General Insurance

Services provided by State Government by way of general insurance (managed by the government) to employees of the State government/ Police personnel, employees of Electricity Department or students are exempt.

The post 23rd GST Council Meeting – GST Rate Changes for Services appeared first on IndiaFilings.com | Learning Center.

23rd GST Council Meeting – Changes to Composition Scheme

In the 23rd GST Council Meeting held on 10th November 2017, various measures to improve compliance and reduce the burden on taxpayers were announced. In various articles, we have covered the major announcements made in the 23rd GST Council Meeting. In this article, we look at changes to composition scheme announced.

Small businesses can enrol under the GST Composition Scheme to pay GST at a flat rate and file simplified quarterly GST returns. In the 23rd GST Council Meeting, various changes have been made to the GST Composition Scheme to make it more taxpayer friendly.

Want to know about other major changes announced at the 23rd GST Council Meeting?

Details of GST Return Due Date Changes announced in the 23rd GST Council Meeting

Details of GST Rate Changes for Goods announced in the 23rd GST Council Meeting

Details of GST Rate Changes for Services and Service Providers announced in the 23rd GST Council Meeting

Increase in Threshold Limit for Registration under Composition Scheme

The annual aggregate turnover threshold for registering under the GST Composition Scheme has been increased now to Rs.2 crores. Thereaftereligibility for composition will be increased to R. 1.5 Crore per annum.

Uniform GST Rate fo 1% for Composition Scheme Dealers

The GST rate payable by GST Composition dealers has been harmonised for all taxpayers at 1%. However, not change has been announced on the GST rate for composition scheme for restaurants.

Supply of Services upto Rs.5 Lakhs

Taxpayers registered under the GST Composition Scheme can now supply services with a taxable value of upto Rs.5 lakhs per annum. This provision will immensely help small computer shop operators and dealers involved in providing services along with sales of product.

Due Date for Filing GSTR – 4 Return Extended

GSTR 4 return must be filed by taxpayer registered under the GST composition scheme. GSTR4 is a quarterly return that was originally due on the 18th of October, January, April and July.

Now, GSTR 4 for the July to September 2017 quarter will be due only on the 24th of December 2017. The due date for subsequent quarters will be announced by the GST Council at a future date. 

The post 23rd GST Council Meeting – Changes to Composition Scheme appeared first on IndiaFilings.com | Learning Center.

GST Registration for Service Providers

GST rules for registration have been made more convenient for service providers in the 23rd GST Council Meeting. In this article, we look at the turnover limit for service providers for obtaining GST registration.

Turnover Limit for Service Providers

Like any other category of business, service providers would be required to obtain GST registration, if the entity has an aggregate annual turnover of more than Rs.20 lakhs per annum in most states and Rs.10 lakhs in Special Category States.

Inter-State Sales Service Provider – GST Registration

For all other types of business, GST registration is mandatory, irrespective of annual aggregate turnover, if the business is involved in supplying goods from one state to another. However, for service providers, this limitation does not apply as per the decision announced in the 23rd GST Council Meeting. Hence, if you are a service provider, involved in inter-state or intra-state supply of goods, within a turnover of 20 lakhs (Rs.10 lakhs in Special Category State), you are exempt from GST registration. Further, this is exemption is also available for service providers supplying services through an e-commerce operator.

Services Providers Requiring Mandatory GST Registration

The Government has provided an exemption for obtaining GST registration for a majority of the service providers, subject to the annual aggregate turnover criteria. However, the following types of service providers would still be required to be registered under GST irrespective of annual aggregate turnover:

• OIDAR Service Providers
• E-Commerce Operators
• Non-Resident Taxable Person supplying services to Indian Residents
• Casual Taxable Person

When Should GST Registration be Obtained?

If you are an existing service provider having service tax registration, the service tax registration must have been mandatorily migrated to a GST registration.

If you are starting a new service business, then you must apply and obtain GST registration within 30 days of commencing business. If you are a casual taxable person or non-resident taxable person, you must obtain GST registration atleast 5 days before commencing business.

GST Invoice for Services

In case you are not registered under GST, you can issue a bill of supply, without mentioning any GST. You are also not eligible to collect GST from customers if you do not have a GST registration.

In case, you have a GST registration, you must provide a tax invoice for the services within a period of 30 days of the rendering of services. Two copies of the invoice must be produced by the supplier, in the form of original and duplicate. The tax invoice must include detail of service rendered, GSTIN of the customer (if registered under GST), invoice date, invoice number, GST rate applicable, SAC Code, and GST applicable.

Process of Registration

For those service provider who must obtain GST registration, the process is very simple:

• Upon logging into your service tax account, you will be given a provisional ID and password for the purpose of enrollment in GST.
• Upon entering the GST portal, you will be prompted with selecting one of the two given choices, where you must click “New user login”.
• Login using your ID and password
• After logging in, you will be taken to a page where you enter your mobile number and mail address
• After entering the same, you will receive separate OTP’s on your mobile number and mail, mention them
•  Create your desired user name and password
• Set security questions

You will be enrolled into GST after following the above steps.

In case you have more questions about GST registration, feel free to contact an IndiaFilings Business Advisor for GST registration.

The post GST Registration for Service Providers appeared first on IndiaFilings.com | Learning Center.

Continuous Supply of Goods – GST

Continuous supply of goods is a type of a supply, provided under a contract for a period of more than three months, on a continuous or recurrent basis. Supplies may be provided by means of a wire, cable, pipeline, or other conduit (this is just an illustration on the scheme of things, supplies can be made through any means). The Government has the privilege to notify certain supplies to be continuous. GST invoices, in these cases can be raised on a periodical basis. A few examples of “Continuous supply” can be supply of bricks for construction, security service, supply of ten-liter water cans on a weekly basis, annual maintenance contract, or telecom and internet services.

Time Limit for Issue of Invoice

Invoices are produced on a periodical basis, but for transaction that involve continuous supply of goods, the GST Act also specifies a time limit for issuing invoice. Hence, an invoice for continous supply of goods must be issued before the expiry of the time limit as specified below:

When Due Date is Mentioned in the Contract

In some types of contract for continous supply, like supply of internet, electricity, etc., the due date for payment would be fixed in a contract. In such cases, the invoice must be issued on or before the due date of payment.

When Due Date is Not Mentioned in Contract

If the due date of payment is not mentioned in the contract, the invoice must be issued before or at the time when supplier of service receives payment.

Completion of an Event

If the payment is linked to the completion of an event, the invoice should be issued on or before the date of completion of that event.

General Invoice Rules

Invoices, as per the general dictum, must be produced within a period of 30 days from the date of supply, and forty five days in case of a bank, or a non-banking financial institution. This is also applicable here, except that it varies from transaction to transaction, as witnessed above. Whatever the differences, invoices are generally produced within the prescribed time limit.

The post Continuous Supply of Goods appeared first on IndiaFilings.com | Learning Center.

GSTR-1 Due Date Extended upto 10th January 2018

The due date for filing GSTR-1 return has been extended upto 10th January 2018 for all taxpayers. The due date extension announcement was made through a press release and official twitter account of GSTN.

Last date for filing of GSTR-1 is extended for all classes of taxpayers to 10th January, 2018 pic.twitter.com/PBjQswJrRb

— GST@GoI (@askGST_GoI) December 29, 2017

GSTR-1 Due Date

Originally, the due date for filing GSTR-1 return for the months of July to October 2017 was extended upto 31st December 2017. However, to help taxpayer comply and avoid the rush during the holiday season, the due date has been extended to 10th January 2018.

Hence, if you are a business with an annual aggregate turnover of less than Rs.1.5 crores during the last financial year, you will have to file GSTR-1 return for the months of July to September 2017 before 10th January 2018.

In case you are a business with an annual aggregate turnover of more than Rs.1.5 crores during the last financial year, you will have to file GSTR-1 return for the months of July to October 2017 before 10th January 2018.

How to File GSTR-1 Return

GSTR-1 return can be easily filed online using LEDGERS GST Software. You can also read this guide to know more about GSTR-1 filing or get in touch with an IndiaFilings Advisor for help with GST return filing.

The post GSTR-1 Due Date Extended upto 10th January 2018 appeared first on IndiaFilings.com | Learning Center.

 25th GST Council Meeting – GST Rate Changes & Summary

The 25th GST Council Meeting was held at New Delhi on the 18th of January 2018. Though there is no GST return filing due date changes, various other measures were announced to improve ease of doing business. In addition to relaxation of GST rules and regulations, GST rates have also be reduced for various goods and services as below:

Penalty for Late Filing GST Return Reduced to Rs.50 – Rs.20 for NIL Return

The penalty for late filing of GST returns has been further reduced by the 25th GST Council Meeting. Now, any business that failed to file GSTR1 return, GSTR5 return or GSTR5A return will only have to pay a penalty of Rs.50 per day of default. In case of failure to file NIL GST return, the penalty has been reduced to just Rs.20 per day. The reduction in penalty for late filing GST returns will reduce the compliance and penalty burden on many small and medium businesses across the country.

Cancellation of GST Registration

Persons who obtained GST registration voluntarily were previously barred from surrendering their GST registration before end of one year from date of registration. The rules have now been modified to allow cancellation of voluntary GST registration before 1 year.

Also, those who obtained GST registration mandatorily due to migration from VAT or Service Tax or Central Excise can cancel their GST registration before 31st March 2018.

E-Way Bill Introduced

The Government has begun rolling out the e-way bill mechanism on a trial basis through ewaybill.nic.in. Stakeholders can login to ewaybill.nic.in and generate, cancel or modify GST eway bill on a trial basis. Once the system is ready, the GST eway bill system will be made available on ewaybillgst.gov.in.

The Government expects to rollout a nationwide GST eway bill system for interstate movement of goods from 1st Februrary 2018. The Government expects to rollout eway bill system for intrastate movement of goods on later than 1st June 2018. However, no date has been announced by the Government mandating eway bill for intrastate movement of goods.

25th GST Council Meeting Press Release

Press release by the Government summarising major policy changes announced by the 25th GST Council Meeting is reproduced below for reference:

GST Rate Changes for Goods

The following are the GST rate changes for goods announced in the 25th GST Council Meeting:

Find GST Rate for all goods and services.

GST Rate Reduced from 28% to 18%

• Old and used motor vehicles [medium and large cars and SUVs] on the margin of the supplier, subject to the condition that no input tax credit of central excise duty/value added tax or GST paid on such vehicles has been availed by him.
• Buses, for use in public transport, which exclusively run on bio-fuels.

GST Rate Reduced from 28% to 12%

• All types of old and used motors vehicles [other than medium and large cars and SUVs] on the margin of the supplier of subject to the conditions that no input tax credit of central excise duty /value added tax or GST paid on such vehicles has been availed by him.

GST Rate Reduced from 18% to 12%

• Sugar boiled confectionary
• Drinking water packed in 20 litters bottles
• Fertilizer grade Phosphoric acid
• Bio-diesel
• Bio-pesticides
• Bamboo wood building joinery
• Drip irrigation system including laterals, sprinklers
• Mechanical Sprayer

GST Rate Reduced from 18% to 5%

• Tamarind Kernel Powder
• Mehendi paste in cones
• LPG supplied for supply to household domestic consumers by private LPG distributors
• Scientific and technical instruments, apparatus, equipment, accessories, parts, components, spares, tools, mock ups and modules, raw material and consumables required for launch vehicles and satellites and payloads.

GST Rate Reduced from 12% to 5%

• Articles of straw, of esparto or of other plaiting materials; basketware and wickerwork
• Velvet fabric with no refund of unutilised input tax credit.

GST Rate Reduced from 3% to 0.25%

• Diamonds and precious stones

GST Rate Change to NIL

• Vibhuti
• Parts and accessories for manufacture of hearing aids.
• De-oiled rice bran

GST Rate Increased from 12% to 18%

• Cigarette filter rods

GST Rate Increased from Nil to 5%

• Rice bran (other than de-oiled rice bran)

GST Rate Changes for Services

The following are the GST rate changes or exemptions for services announced in the 25th GST Council Meeting:

Major Clarifications

In addition the above GST rate changes, the GST Council has also clarified the following matters:

Health Care Services

The GST Council has clarified that services provided by senior doctors/consultants/technicians hired by the hospitals, whether employees or not is exempt from GST. Also, the entire amount charged by hospitals for healthcare services from the patients including the retention money and the fee/payments made to the doctors is exempt from GST. Finally, food supplied to the in-patients as advised by the doctor/nutritionists is a part of composite supply of healthcare and is not separately taxable under GST. However, other supplies of food by a hospital to patients (not admitted) or their attendants or visitors is taxable under GST.

The post 25th GST Council Meeting appeared first on IndiaFilings.com | Learning Center.

GST Refund for Export And Supply To SEZ

Exports and supplies to special economic zones are “zero” rated the IGST Act, 2017. Zero rating means that the entire supply chain of a particular “zero-rated supply” is free of GST. However, in the case of exempted supplies, output alone is exempted and GST is applicable on the input side. The quintessence of zero rating helps Indian businesses compete globally on the international market as it ensures that tax does not get added to the cost of exports.

A person having GST registration making a zero-rated supply is eligible to claim GST refund in accordance with the provisions of the CGST Act, 2017. The two options are mentioned below:

• Supply of goods or services under Bond or Letter of Undertaking without payment of integrated tax and claim refund of unutilised input tax credit of CGST, SGST / UTGST and IGST; or
• Supply of goods or services with payment of integrated tax and claim of GST refund on tax paid.

GST Refund on Exports

To claim GST refund, the following conditions must be satisifed by the taxable person registered under GST:

• The person in charge of the conveyance carrying the export goods duly files an export manifest or an export report covering the number and the date of shipping bills or bills of export.
• The applicant has furnished a valid return in Form GSTR-3 or Form GSTR-3B, once the shipping bill and export general manifest (EGM) is filed and a valid return is filed, the application for refund will be considered complete and refund process will commence.

In case of service exporters, a statement containing the number and date of invoices and the relevant Bank Realisation Certificates or Foreign Inward Remittance Certificates along with the refund claim must be submitted. 

Get assistance with GST Return Filing.

GST Refund Policy on Supply to SEZ

Application for refund can be filed for supplies to a Special Economic Zone unit or a Special Economic Zone developer by:

• Supplier of goods after such goods have been admitted in full in the Special Economic Zone for authorised operations, as endorsed by the specified officer of the Zone;
• Supplier of services along with such evidence regarding receipt of services for authorized operations as endorsed by the specified officer of the Zone.

To claim refund on supply to SEZ, the following documents and information must be submitted:

• Proof of receipt of goods or services as demonstrated by the specified officer of the SEZ.
• A statement containing the number and date of invoices, the evidence regarding the endorsement SEZ Officer and the details of payment.
• A declaration to the effect that the Special Economic Zone unit or the Special Economic Zone developer has not availed the input tax credit of the tax paid by the supplier of goods or services.

Know more about GST refunds.

GST Provisional Refund

Taxable persons making zero-rated supplies will be eligible for a provisional refund of 90% of the claim in terms of CGST Act, 2017. The CGST Rules, 2017 states that the provisional refund is to be granted within 7 days from the date of acknowledgement of the refund claim. An order for provisional refund is to be supplied in Form GST RFD 04 with payment advice in the name of the claimant. The GST provisional refund amount will be electronically credited to the taxable persons bank account mentioned on the GST Portal.

Provisional refunds will not be granted if the person claiming refund has, during any period of five years immediately preceding the tax period to which the claim for refund relates, been prosecuted for any offence under the Act or under an earlier law where the amount of tax evaded.

The post GST Refund for Export And Supply To SEZ appeared first on IndiaFilings.com | Learning Center.

GST on Housing Societies

A society which allots open plots for housing or flats to its members while also providing amenities and services to its residents is known as a Housing Society. In this article, we look at the applicability of GST on Housing Societies.

Applicability of GST

As per Central Goods and Service Tax Act, a taxable person is someone who supplies goods or service to another person and is not exempted from GST. The definition of taxable person under GST includes natural persons, a Hindu Undivided Family,  a company, a firm, a Limited Liability Partnership, an association of persons or a body of individuals, whether incorporated or not, in India or outside India, a local authority, Central Government or a State Government, Society as defined under the Societies Registration Act, 1860, or any Trust. Hence, a Co-operative Society registered under any of the Societies Act is considered as a taxable person liable to pay GST in India.

Further, as per the CGST Act, 2017, the term business includes, provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members. Hence, a society offering amenities and services to its member, is also liable to pay GST.

Compliance Requirements for Housing Societies under GST

All housing society that exceeds 20 lakhs of revenue must obtain GST registration. However, if the monthly contribution received from its member is less than Rs. 5000, no GST is to be charged by the housing society on the monthly bill raised by the society. Further, other dues such as property tax and electricity charges, are exempt from GST and will not be included while calculating the limit of Rs. 5000.

Further, if the aggregate turnover of the society is up to only Rs. 20 lakh in a financial year, then such supplies would be exempted from GST even if charges per member are more than Rs. 5000.

Know more about GST Return Filing.

Applicability of GST on Charges Collected by Society

A housing society would normally collect the following charges from its members:

• Services provided by the Central Government, State Government, Union territory or local authority to a person other than business entity, is exempt from GST. The property tax and water tax are collected by Municipal Corporation of Greater Mumbai collects(MCGM). If the housing society collects these charges on behalf of MCGM, they are not liable to pay GST. Know more about Pure Agent concept under GST.
• GST will not be imposed on charges such Non-Agricultural Tax, Electricity charges etc, which are collected under other statutes from individual flat owners. However, if the same is collected by the society for electricity generation or to provide water facility or any other service, then GST is applicable on such charges.
• Sinking funds, repairs and maintenance fund, car, parking charges, non-occupancy charges or simple interest for late payment collected by the society will attract GST.

Thus, the GST exemptions given ensure that there would be no tax burden on smaller societies where the monthly contribution of the individual members does not exceed Rs. 5000. Whereas, larger societies with higher revenue or monthly contribution from members as discussed above would be under the ambit of GST.

The post GST on Housing Societies appeared first on IndiaFilings.com | Learning Center.

GST E-Way Bill – Procedure for Generation & Cancellation

GST e-way bill is a document issued by a carrier which provides details regarding shipment of the consignment. The GST e-way bill mechanism ensures that goods are being transported in line with the norms of GST and relevant information is uploaded before the commencement of the transportation of goods. The biggest use case for GST e-way bill is to track the movement of goods across India and to curtain the evasion of GST. In this article, we look at the procedure for generation of cancellation of GST E-Way Bill.

Information & Documents Required

GST e-way bill can be generated on the GST portal. GST e-way bill must be mandatorily generated before transportation of any goods which has a taxable value of more than Rs.50,000. The following information must be provided to generate a GST e-way bill:

• GSTIN of recipient
• Place of delivery (PIN Code)
• Invoice or challan number and date
• Value of goods
• HSN code
• Transport document number (Goods Receipt Number or Railway Receipt Number or Airway Bill Number or Bill of Lading Number)
• Reasons for transportation
• Transporter details (Vehicle number)

Generation of An E-Way Bill

The e-way bill is created by the consignor or consignee on his/her own, for transport of goods via railways, air or ship. If the goods are transported by road, GST e-way bill would be created by the transporter. The consignor or the consignee generates the e-way bill if the value of goods is more than Rs. 50,000.

In case of transfer of goods for job work by a principal located in one state to a job worker located in any other state, then the e-way bill must be generated by the principal irrespective of the value of consignment.

Part A of GST E-Way Bill

Part-A of the GST e-way bill would be completed by the individual who controls the movement of consignment. Part-B of the GST e-way bill would be generated by the transporter.

Part B of GST E-Way Bill

When goods with a taxable value of more than Rs.50,000 are to be transported by a registered person, a GST e-way bill must be generated by updating the information as mentioned above on the GST Portal. (Irrespective of the fact that he may be a consignor or a recipient).

In Part-B of the GST E-Way Bill, details of the transporter are updated and GST e-way bill is generated along with a unique e-way bill number (EBN) which will be available to the supplier, the recipient and the transporter.

During the process for generation of GST e-way bill number, the detail of the request is made available to the registered recipient on the common portal. In case, the recipient does not communicate acceptance or rejection within 72 hours, the e-way bill would be considered accepted. On the other hand, before 72 hours, the registered person can accept or reject an e-way bill at anytime.

Validity Of An E-Way Bill

Validity of a GST e-way bill depends upon the distance of transportation. If the distance is less than 100 Km, the e-way bill would be valid for 1 day from the date of generation of the bill. For every additional 100 kms, the e-way bill’s validity would be 2 days additional from the date of generation of the bill. In case the goods cannot be transported within the validity period of the e-way bill, the transporter can produce another e-way bill for the same consignment after updating the details in the “Part B” section of form “GST EWB-01”. Finally, in rare circumstances, the Commissioner can extend the validity period of GST e-way bill through issue of notification for certain categories of goods alone.

Cancellation of An E-Way Bill

• In case, an e-way bill had been generated, but the goods have not been transported or are not transported as per the details furnished in the bill, then the e-way bill can be cancelled online on the GST Portal or through a GST Facilitation Centre.
• A GST e-way bill can be cancelled easily within 24 hours of its generation. However, an e-way bill cannot be cancelled if it had been verified in transit.

GST E-Way Bill Requirement for Transportation

The following requirements must be satisfied by the transporter and registered person while transporting goods with a GST e-way bill:

E-Way Bill

GST e-way bill must be generated for all consignment on the transport where the value of the consignment exceeds Rs. 50,000. In case of ,multiple consignments comprising varying values (per consignment) are to be carried in a single vehicle, e-way bill must be compulsorily generated for those consignments whose value exceeds Rs. 50,000. For multiple consignments, transporters are also allowed to generate a consolidated GST e-way bill indicating serial number for all the way bills before commencement of transport.

However, there is no constraint on the minimum amount for which GST e-way bill can be generated. Hence, GST e-way bill can be generated even for transport of consignment wherein the value of goods transported is less than Rs.50,000.

Other Documents

In addition to the GST e-way bill, the person in charge of a transport must carry the invoice or bill of supply or delivery challan in addition to the e-way bill. Finally, GST Commissioner can also require certain class of transporters to obtain a unique Radio Frequency Identification Device and get the device embedded and mapped onto the vehicle prior to the commencement of travel.

Get in touch with an IndiaFilings Advisor for GST Return Filing

The post GST E-Way Bill appeared first on IndiaFilings.com | Learning Center.

Unutilised Input Tax Credit Refund under GST

An inverted tax structure could lead to accumulation of input tax credit on the taxpayers GST account. For example, input tax credit would get accumulated if an entity purchases an input that is charged 12% GST rate and sells the item after processing at 5% GST rate. In such a scenario, the taxable person registered under GST can apply for refund of unutilised input tax credit due to an inverted tax structure. In this article, we look at the procedure for applying for unutilised input tax credit refund under GST.

Requirements for Filing GST Refund Application

Before filing the application for GST refund, ensure that you have filed GSTR 1 and GSTR 3B return for the relevant tax period for which refund application is made. Normal taxpayers having a turnover of more than Rs.1.5 crores can file for GST refund every month after filing the relevant GSTR 1 and GSTR 3B return. In case of taxpayers opting to file quarterly GST returns, GST refund application can be filed every quarter after filing of GSTR 1 and GSTR 3B return.

Note: Since GSTR 2 and GSTR 3 return have been temporarily suspended, there is no requirement for filing such returns to claim GST refund.

Click here to file GST return.

Amount of Refund Claimed

The maximum amount of refund that can be claimed by a taxpayer on account of an inverted tax structure can be calculated using the following formula:

Refund Amount = (Turnover of inverted rated supply of goods X Net input tax credit / Adjusted total turnover) – Tax payable on such inverted rated supply of goods

In the above formula:

• “Refund amount” means the maximum refund that is admissible.
• “Net ITC” means input tax credit availed on inputs and input services during the relevant period
• “Turnover of inverted rated supply of goods” means the value of inverted supply of goods made during the relevant period without payment of tax under bond or letter of undertaking.
• “Tax payable on such inverted rated supply of goods” means tax payable on such inverted rated supply of goods under the same head i.e. IGST, CGST, SGST.
• “Adjusted Total turnover” means the turnover in a State or a Union territory, as defined under clause (112) of section 2 of CGST Act, excluding the value of exempt supplies other than inverted-rated supplies, during the relevant period
• “Relevant period” means the period for which the claim has been filed.

Step 1: Select Application for Refund

• Login to your GST account on the GST Portal.
• Navigate to the Services > Refunds > Application for Refund option.
• Click on Application for Refund.

Step 2: Select Type & Period for Refund Application

• In the refund application page, select the Refund on account of ITC accumulated due to Inverted Tax Structure radio button. You can also select and apply for other types of GST refunds from this page.
• Select the tax period (year and month) for which the refund application needs to be filed below the GST refund types.
• Click the CREATE button corresponding to your selected refund type.

Step 3: Refund Computation

This is the most important step in making the GST refund application. In the table computation for refund, the following information must be provided:

• In column-1 (Turnover of inverted rated supply of goods), enter the turnover of inverted rated supply of goods by referring to column-3.1(a) of the Form GSTR-3B.
• In column-2 (Tax payable on such inverted rated supply of goods), enter the tax payable on such inverted rated supply of goods under the four major heads – IGST, CGST, SGST / UTGST, and CESS.
• In column-3 (Adjusted total turnover), enter the adjusted total turnover.
• In column-4 (Net input tax credit), enter the Net Input Tax credit figures for the major heads – IGST, CGST, SGST / UTGST, and CESS separately. The figures of Net Input Tax Credit (ITC) in column-4 may be taken from column-4(C) of the Form GSTR-3B respectively.

Step 3 – Unutilised Input Tax Credit RefundAfter filling the appropriate figures in the above table, the refund amounts will get auto-populated for all the four major heads, in the “Amount Eligible for Refund” Table. The amount of refund to be provided by the Government will be displayed in the Refund Claimed table.

Step 4: Select Bank Account and Submit Application

The refund amount will be credited to one of the bank accounts that was registered in the GST Portal and linked with the taxpayers GST account. At the time of filling-out form RFD-01A, you will be required to select a bank account from the list of your linked / registered accounts in the GST Portal. In case the taxpayer requires receipt of refund in a different bank account, he/she may add that bank account in GST registration details by way of non-core amendment.

The refund application must be saved before filing. Hence, save the refund application by clicking on the Save Button. Once, the system displays a confirmation message upon saving the application, the proceed button will be activated.

Now agree by selecting the checkbox and click the PROCEED button to begin the e-signing process.

Note: All GST refund applications that have been saved can be retrieved using the My Saved / Submitted Applications option under Refunds. Saved applications are stored in the system for 15 days, after which they get deleted automatically.

Step 5: Sign the Refund Application

On clicking the PROCEED button, the steps for digitally signing the GST refund will be initiated. You can now sign with a digital signature or EVC to complete and submit the application.

Step 6: Download ARN Receipt, Sign and Submit to Tax Officer

On signing the refund application, a success message would be displayed, and the status of the application is changed to submitted. An Application Reference Number (ARN) is also generated and an ARN receipt would be downloaded.

Open the refund ARN receipt downloaded as a PDF document, take a print of application and submit to the Jurisdictional Authority manually along with other relied upon documents as required under RFD-01.

The post Unutilised Input Tax Credit Refund under GST appeared first on IndiaFilings.com | Learning Center.

26th GST Council Meeting

The 26th GST Council Meeting was held on 10th March 2018 at New Delhi, India. In the meeting, various decisions pertaining to GSTR 3B return filing, e-way bill, reverse charge mechanism, TDS/TCS provisions and grievance redressal mechanism were announced. In this article, we look at the highlights of the 26th GST Council Meeting in detail.

 GSTR 3B Return Filing – Extended up to June 2018

GSTR 3B return was introduced as a temporary measure until the full-fledged implementation of GSTR 1, GSTR 2 and GSTR 3 returns. All taxpayers having GST registration were mandatorily required to file GSTR 3B returns upto March 31 2018 every month. However, as GSTR 2 and GSTR 3 returns have been suspened, the GST Council has decided to extended GSTR 3B return filing upto June, 2018.

Hence, all taxpayers registered under GST would now be required to file GSTR 3B return for upto the month of June 2018.

Reverse Charge Mechanism – Not Applicable up to June 2018

GST reverse charge is applicable on some types of transactions. If reverse charge is applicable, the recipient of the goods or services would be liable for payment of GST instead of the supplier. GST reverse charge supplier was suspended up to March 2018.

The 26th GST Council Meeting has decided to extend the suspension of reverse charge mechanism upto June 2018.

TDS & TCS Provisions – Not Applicable upto June 2018

The GST TDS and TCS provisions are applicable for e-commerce companies and certain types of taxpayers. The GST TDS and GST TCS provisions were also suspended and will not be applicable upto June 2018.

E-Way Bill Mechanism

In the 26th GST Council Meeting, e-way bill rollout has been announced from 1st April 2018 across India. From 1st April 2018, e-way bill would be mandatorily required for all transport of goods from one state to another (inter-state) with a value of more than 50,000. E-way bill would be mandatorily required for all transport of goods (both inter-state and intra-state) with a value of more than Rs.50,000 from 1st June, 2018. Some of the major changes announced to the e-way bill mechanism are as follows:

• E-way bill would be required if the value of the consignment exceeds Rs. 50000/-. For smaller value consignments, no e-way bill is required.
• The value of exempted goods has been excluded from value of the consignment, for the purpose of a-way bill generation.
• Public conveyance has also been included as a mode of transport and the responsibility of generating an e-way bill in case of movement of goods by public transport would be that of the consignor or consignee.
• Goods transport by railways has been exempted from generation and carrying of ea-way bill with the condition that without the production of an e-way bill, railways will not deliver the goods to the recipient. But railways are required to carry invoice or delivery challan etc.
• Time period for the recipient to communicate his acceptance or rejection of the consignment would be the validity period of the concerned a-way bill or 72 hours, whichever is earlier.
• In case of movement of goods on account of job-work, the registered job worker can also generate an e-way bill.
• Consignor can authorize the transporter, courier agency and e-commerce operator to fill PART-A of an e-way bill on his behalf.
• Movement of goods from the place of consignor to the place of transporter up to a distance of 50 Km [increased from 10 km] does not require filling of PART-B of an e-way bill. They have to generate PART-A of an e-way bill.
• Extra validity period has been provided for Over Dimensional Cargo (ODC).
• If the goods cannot be transported within the validity period of the a-way bill, the transporter may extend the validity period in case of transhipment or in case of circumstances of an exceptional nature.
• Validity of one day will expire at midnight of the day immediately following the date of generation of an e-way bill.
• Once verified by any tax officer, the same conveyance will not be subject to the second check in any State or Union territory, unless and until specific information for the same is received.
• In case of movement of goods by railways, airways and waterways, the e-way bill can be generated even after commencement of movement of goods.
• Movement of goods on account of Bill-To-Ship-To supply will be handled through the capturing of place of despatch in PART-A of an e-way bill.

GST Export & Refund Procedures

The GST Council has decided to extend the available tax exemptions on imported goods for a further 6 months beyond 31.03.2018. Hence, exporters availing various export promotion schemes can continue to avail such exemptions on their imports up to 01.10.2018, by which time an e-wallet scheme is expected to be in place to continue the benefits in future.

Fast Processing of GST Refund for Exports

The pace of grant of GST refunds for exports has increased. The Council has also directed GSTN to expeditiously forward the balance refund claims to the Customs/Central GST/State GST authorities, as the case may be, for their immediate sanction and disbursal.

Extension of Various Benefits for Exporters

For merchant exporters, a special scheme of payment of GST @ 0.1% on their procured goods was introduced to improve cash-flow for the taxpayers. Also, domestic procurement made under Advance Authorization, EPCG and EOU schemes were recognized as ‘deemed exports’ with flexibility for either the suppliers or the exporters being able to claim a refund of GST / IGST paid thereon. All these avenues and benefits have been extended upto 1.10.2018.

E-Wallets

The e-Wallet scheme is basically the creation of electronic e-Wallets, which would be credited with notional or virtual currency by the DGFT. This notional / virtual currency would be used by the exporters to make the payment of GST / IGST on the goods imported / procured by them so their funds are not blocked. The GST Council has decided to implement e-wallets as a permanent solution for easing the GST refunds process and compliance for exporters. GST e-wallets are expected to be implemented from 1.10.2018.

Controlling GST Evasion

The Government has noticed that there are major discrepancies between the amount of IGST & Compensation Cess paid by importers at Customs ports and input tax credit of the same claimed in GSTR 3B return. There are major data gaps between self-declared liability in FORM GSTR-1 and FORM GSTR 3B return. The Government has started analysing such discrepancies and started taking action against tax evaders.

The post 26th GST Council Meeting appeared first on IndiaFilings.com | Learning Center.

Electronic Sealing of Containers

Gone are the days where a jurisdictional officer had to supervise the stuffing of export cargo. The Central Board of Excise and Customs (CBEC) has introduced a concept which enables the exporters to self-seal their containers using electronic seals. Such a measure will result in the reduction of transportation cost, as exporters may not have to incur MOT (Merchant Overtime) charges with respect to the supervision, combined with the fact that the time taken for moving the goods will be significantly lower. The initiative will be processed through RFID (Radio Frequency Identification) e-seal. This article is a brief account on the various pre-requisites pertaining to the recently launched system of electronic sealing of containers by the CBEC.

Applicability

Electronic sealing of containers can be adopted only for fully loaded container that is sealed at an approved premise, by an authorized exporter. Exporters who were availing ceiling at the factory premises under the previous system of supervision automatically qualify for electronic sealing of containers. Further, exporters who have been availing supervised sealing can automatically start electronic sealing of containers without any approval or permission from the jurisdictional commissioner.

Also, entities that are granted Authorized Economic Operator (AEO) status can electronically self seal containers regardless of whether they were involved in self-sealing or supervised sealing. Finally, all exporters having GST registration and filing GST returns can start electronic sealing of containers after obtaining approval from the respective jurisdictional Commissioner.

GST Registration and Return Filing

Only exporters who have GST registration and filing GST returns can bring export goods to a CPS/ICD for stuffing and sealing of container or electronically seal containers. Further, GST registration is now mandatory for importing goods in India. Hence, its best for those involved in import or export business to obtain GST registration at the outset.

Procedure for Electronic Sealing of Containers

Only full container loads can be electronically sealed by eligible exporters without the supervision of a Customs Officer. If a full container load is received at a port or ICD with electronic self-sealing RFID, then it would be deemed to be the equivalent of a container sealed under the supervision of an Officer.

Full containers brought to ports without RFID e-seals would be taken to a CFS or allowed direct port entry and subject to usual RMS treatment. Similarly, Full Containers Loads arriving at ICDs, without RFID e-seals, will be subject to usual risk management parameters. Finally, in case of good reasons or intelligence to warrant inspection or if the electronic seals are tampered, then the containers would be subject to the normal processing with supervision.

Intimation of Details

The jurisdictional customs officer has been relieved of supervision responsibilities, but the concerned officer must be duly informed by the exporter about the details of premises where container stuffing is undertaken. An exporter who intends to pursue electronic sealing should inform the jurisdictional Customs Officer at the rank of Superintendent or Appraiser of Customs at-least 15 days before the first planned involvement of the consignment. The Jurisdictional Superintendent or Inspector of Customs will conduct an inspection on the premises to validate its viability and then submit a report of the same to the Deputy/Assistant Commissioner of Customs, who in-turn will forward the proposal to the Principal Commissioner/Commissioner of Customs. The Principal Commissioner/ Commissioner of Customs is vested with the rights of granting permission for electronic sealing.

Once the permission is granted, the exporter is required to furnish an intimation to the jurisdictional Superintendent of Customs prior to each session of electronic sealing.  On the other hand, if the report of the inspection conducted by the concerned authority is not satisfactory, the exporter needs to bring the goods to the CFS/ICD/port for sealing.

Clearance of Export Goods

Exporters who are intent on clearing export goods without the assistance of a customs broker i.e. on self-clearance, need to file the Shipping Bill under digital signature.

Sealing Specifications

The exporter should seal the container with tamper-proof electronic seal of the specified standard. A unique number should be assigned to the Electronic Seal, which should be mentioned in the shipping bill. In addition to it, the exporter should specify details such as his/her name, IEC code, GSTIN number, description of the goods, tax invoice number, name of the authorized signatory and shipping bill number in the electronic seal.

Government Circular on Electronic Sealing of Containers

The government notification on electronic sealing of containers is reproduced below for reference:

The post Electronic Sealing of Containers appeared first on IndiaFilings.com | Learning Center.

How to Generate E-Way Bill

An eway Bill is an ‘electronic way’ bill for movement of goods which can be generated on the eWay Bill Portal. Transport of goods of more than Rs. 50,000 (Single Invoice/bill/delivery challan) in value in a vehicle cannot be made by a registered person without an eWay bill from 1st April 2018. E-way bill can be generated or cancelled through the e-way bill website, LEDGERS GST Software, SMS, Android App and by Site-to-Site Integration (through API). When an eWay bill is generated a unique eWay bill number (EBN) is allocated and is available to the supplier, recipient, and the transporter. In this article, we look at the steps to generate a e-way bill on the Government website.

Know more about e-way bill.

Steps to Generate E-Way Bill

E-way bill can be generated on the GST eWay Portal. To use the portal, you will need a GST registration and transporter registration.

Login to E-Way Bill Portal

Step 1: Access the eway bill generation portal at https://ewaybill.nic.in/ and enter the login detail to enter the platform.

Step 2: Click on the “Generate New” option from the eWay bill- Main menu page to generate a new eWay bill.

Generate eWay Bill

Step 3: A new eway bill generation form appears. Fill in the details required similar to creating a GST invoice.

Select outward, if you are the supplier and inward, if you are the recipient. Enter details of the supplier and recipient along with GSTIN, wherever applicable.

When a registered GSTIN is entered in the field provided in the form, other details gets pulled into the empty fields. Before proceeding to the next step kindly check the details.

Enter Goods Description

STEP 4: The second half of the page will contain information to be filled as follows:

• Product Name and Description must be completed similar to a tax invoice.
• HSN Code for the Product must be entered. Click here to find HSN code.
• IGST or CGST Rates applicable. IGST would be applicable for inter-state transport and SGST / CGST for intra-state transport.
• Approximate distance of transport. This would determine the validity of the eway bill.

Step 5: Generate E-way bill

Click on the “SUBMIT” button to generate the eWay Bill. The eWay bill gets displayed which contains the eWay Bill number and the QR Code that contains all the details in the digital format. The printed copy of the bill should be provided to the transporter who will carry it throughout the trip till it is being handed over to the consignee.

Step 6: Consolidate E-way Bill Generation

A consolidated eWay bill can also be created which contains all the details on the transaction and is also easy to generate it by providing just the ‘eWay bill number’ in the required field. Click on “SUBMIT” to generate the consolidated eWay Bill.

An eWay bill can be updated once it is created. Details on the transporter, consignment, consigner and also the GSTIN of both the parties can be updated in the existing eWay bill provided the bill is not due on its validity.

Signup for LEDGERS GST Software to easily generate E-way Bill.

The post How to Generate E-Way Bill appeared first on IndiaFilings.com | Learning Center.

SMS E-Way Bill Generation

The GST e-way bill is an electronic paperwork for tracking all interstate movement of goods. E-way bill can be generated through various modes including SMS. In this article, we look at the procedure for generating e-way bill through SMS.

Know more about E-Way Bill Generation Portal

Government website for generating e-way bill: https://ewaybillgst.gov.in/

SMS E-way Bill Operation

Mobile e-way bill is a simple SMS based waybill generation facility using any cell phone. This type of e-way bill generation is usually carried out by small taxpayers who might not be equipped with a computer and internet connectoin. SMS e-way bill generation is ideal for entities with limited transactions, as it would be prudent to use other methods in case of higher volume. SMS e-way bill generation facility can also be used by taxpayers in case o emergencies such as during the night or while involved in travelling in a vehicle. 3 major activities related to e-way bill operation through SMS mode are as follows:

• Generate the e-way bill
• Update the vehicle details
• Cancellation of the e-way bill

Enabling SMS E-Way Bill Facility

Before starting to transact, the taxpayer must first register his/her mobile number on the GST e-way bill portal. The system only enables and responds to mobile number registered on the portal for a particular GSTIN.

Once user selects option ‘for SMS’ under main option ‘Registration’, following screen is displayed.

The user must enter the mobile number and complete the OTP to register the mobile number.

In the next screen the mobile number registered with the GSTIN is displayed. The user can use this screen for delinking or changing the mobile number, if required.

Step 1: Access to Portal

The taxpayer or the transporter must open the e-way bill portal and log in using his/her credentials.

Step 2: Register Mobile Number

Enable the SMS e-way bill facility by following the below shown above. Once validation is complete and the mobile number is registered, you are ready to generate e-way bill using SMS.

Mobile Number for SMS E-Way Bill – 77382 99899

The mobile number to send SMS to e-way bill generation is 77382 99899. There must be a space beside each parameter. The SMS format is as follows.

SMS format for E-way Bill Generation

EWBG TranType RecGSTIN DelPinCode InvNo InvDate TotalValue HSNCode ApprDist Vehicle

Each of the above parameters in the SMS format must be filled with the appropriate information as per the table below:

SMS Format – Vehicle Details Update

The details of the vehicle can only be updated by the taxpayer or transporter who has generated the e-waybill. Further, vehicle details may be updated within the validity period as per the distance mentioned in e-Way Bill. To update details of the vehicle used for carrying the consignment, the following SMS format must be used.

EWBV EWBNO Vehicle ReasCode

SMS Format – Cancellation of E-Way Bill

An e-way bill can be terminated within 24 hours of generating an e-way bill and a verified e-waybill cannot be terminated. The SMS format can be used to cancel an e-way bill:

EWBC EWBNO

Validation

On sending the SMS, the automated system would validate the bill before processing the request. If the validations fail, the system sends an error message to the registered mobile number. The invalidation of an e-way bill is limited to the generator of the e-Way Bill. Also, the taxpayer must be very careful while transacting through SMS mode because the SMS must retain the prescribed format without any data entry errors. Incorrect data entry or format could lead to failure or incorrect e-way bill generation.

Signup for LEDGERS GST Software to Issue and Track E-way Bill.

The post SMS E-Way Bill Generation appeared first on IndiaFilings.com | Learning Center.

E-way Bill Registration

E-way bill is used under the GST regime to track the movement of goods across India. E-way bill is now mandatory for transport of goods with a value of more than Rs.50,000. E-way bill can be generated for free from the GST E-way Bill Portal or through SMS facility. However, before generating e-way bill, the taxpayer must be registered on the e-way bill portal. In this article, we provide a step-by-step guide to obtaining e-way bill registration.

Documents Required E-way Bill Registration

Registration on the e-way bill portal must be completed before generating e-way bills. The following documents are required for registration:

• GST registration certificate of the registered taxpayer/transporter.
• A mobile number with cellphone.

E-way Bill Portal Registration

E-way bill registration and the facility to generate e-way bill can be obtained by the following categories of persons:

• Registered suppliers having GST registration.
• Transporters with GST registration
• Transporters not having GST registration.

E-Way Bill Registration for Registered Suppliers

The process for creating an e-way bill portal login for registered suppliers is very simple. On the e-Way Bill portal, a supplier having GST registration can click on the e-way bill Registration link to begin the enrollment process. After selecting e-way bill registration, the taxpayer must enter GSTIN and select GO. The screen shown below with details of the GST registration information will be shown:

Click on Send OTP and complete the OTP authentication. Once, the OTP is authenticated, the user must provide a username that can be used for the account and setup the password. Once the username and password is accepted, the user can begin using the e-way bill portal.

E-Way Bill Registration for Unregistered Transporters

In case of a transporter not having GST registration, he/she can still obtain the facility for issuing and authenticating e-way bills by registering on the e-way bill portal.

Steps to Register on the E-way bill – Unregistered Transporters

To obtain e-way bill registration for a transporter not registered under GST, visit the e-way bill portal and select registration -> Enrolment for transporters.

The following information will be required from the transporter:

Upload a copy of identity and address proof in the place requested and select a username/password for the account. Once, all the information and documents are uploaded select submit. A Transporter ID would then be generated along with e-bill portal access. The transporter can use the credentials for operating the e-way bill portal.

E-Way Bill Registration for Registered Transpasdfasdfasdforters

In case of a transporter having GST registration, the process for obtaining e-way bill portal access is similar to that of a person having GST registration as below.

• Step 1:  Go to e-way bill portal.
• Step 2: Go to the Registration tab and click on e-way bill registration.
• Step 3: Generate an OTP and submit the same.
• Step 4: Create the user ID and password

Once all the details are correctly entered, user id and password will be created.

E-way Bill Portal Access for Unregistered Supplier:

If an unregistered provider supplies goods to a person having GST registration, the receiver of the goods should generate the e-way bill on the e-way bill portal on behalf of the unregistered person.

To create and manage e-way bill, signup for LEDGERS GST Software.

The post E-way Bill Registration appeared first on IndiaFilings.com | Learning Center.

Tracking GST Payment Status

GST payment can be done online or offline through authorised banks. Prior to making a GST payment, the taxpayer must login to his/her GST account and generate a GST payment challan. The procedure for generating GST challan and making GST payment is covered in other articles, In this article, we look at the procedure for tracking GST payment status on the GST portal. Keeping a track of the payment is essential at different levels as it gives the users a record of the complete transaction. To keep a track of the complete payment, follow the steps below. In case you have not received credit for GST payment made after 24-48 hours, you can raise a ticket for GST payment problems.

STEP 1: Access the GST Portal. The GST Home page is displayed

STEP 2: Click the Services> Payments > Track Payment Status option.

STEP 3: In the Enter GSTIN field, enter your GSTIN.

STEP 4: In the Enter CPIN field, enter your CPIN.

STEP 5: In the Type the characters as displayed below field, enter the captcha text.

STEP 6:  Click the TRACK STATUS button. The payment status is displayed. To view the challan, click the VIEW CHALLAN button.

GST Payment Challan Status

Once the details are entered in the field and the ‘Track Payment Status’ is clicked, the status of the challan is displayed. There are two statuses:

• FAILED/ NOT PAID
• PAID

Failed Payment

If the status of Challan is FAILED/ NOT PAID and mode selected is E-Payment, taxpayer can click on the VIEW CHALLAN button. To make the Payment again for the Failed challan, select the Bank, agree with the Terms and Conditions and click on the MAKE PAYMENT button

Paid Challan

If Payment status is PAID, then the VIEW RECEIPT button is enabled and Taxpayer can view the receipt and also download the receipt after clicking on the VIEW RECEIPT button. In case of any other Status of challan (other than PAID), Taxpayer will be able to View the Challan.

Know more about procedure for making GST Payment.

The post Tracking GST Payment Status appeared first on IndiaFilings.com | Learning Center.

Download GST Certificate

GST Certificate is issued to people who are registered under GST. Those having GST registration certificate are mandatorily required to display the registration certificate prominently at their place of business. Downloading GST certificate is a pretty easy process. In this article, we look at the process for downloading GST certificate from the GST Portal.

Know more about rules of displaying GST registration certificate.

Steps to Download GST Registration Certificate

To download GST registration certificate, you should have access to your GST account. Once, you have the GST Portal account details, follow the steps below:

STEP 1: Open the GST India portal https://www.gst.gov.in/

STEP 2: Click on the ‘Login’ button to access the username and password page.

STEP 3: Enter the correct ‘Username’ and ‘Password’ credentials along with the captcha in the required field and click ‘LOGIN’.

STEP 4: Click on the Services –> User Services –>View/ Download Certificate.

STEP 5: Click on the ‘Download’ button in the screen to download the certificate. The certificate contains all the details on the tax transactions.

Sample GST Registration Certificate

A sample GST registration certificate is reproduced below for reference:

Validity of GST Certificate

GST registration certificates issued to regular taxpayers do not have an expiry. Hence, as long as the GST registration is not surrendered or cancelled by GST authority, it would continue to remain valid.

However, in case of casual taxable person GST registration or non-resident taxable person GST registration, the validity is restricted to a maximum of 90 days. The validity can be extended or renewed at the end of its validity period.

Changes to GST Certificate

In case any information on the GST registration certificate is wrong, the taxpayer can initiate an amendment to core field on the GST portal. Amendment to cor field requires approval by the Tax Officials and on approval a new amended GST registration certificate would be downloaded. Some of the core fields in a GST registration certificate are:

• Any change in legal/ trade name of business, not involving change in PAN
• Principal place of business
• Additional Place of Business (Other than change in State)
• Addition or deletion of Partners/Karta/Managing Directors and whole time Director / Members of Managing Committee of Associations / Board of Trustees/ Chief Executive officer or equivalent etc.

Amendment to core field can initiated by following the steps below:

1. Access the GST Portal.
2. Login to the GST Portal with valid credentials.
3. Click theServices> Registration > Amendment of Registration Core Fields link.
4. Update the changes required in any of the fields required.
5. In the Verification tab, select the Verification checkbox.
6. In the Name of Authorized Signatory drop-down list, select the authorized signatory.
7. In the Place field, enter the name of the place.
8. After filling the application for Amendment of Registration, you need to digitally sign the application using Digital Signature Certificate (DSC)/ E-Signature or EVC.

Once the amendment application is approved or rejected, you will receive a notification through SMS and e-mail message. Also the approval order (REG 15) can be viewed/ downloaded on the GST portal.  Also, amended registration certificate containing the amended details will be available for download.

The post Download GST Certificate appeared first on IndiaFilings.com | Learning Center.

GST Inspection and Confiscation of Goods in Transit

GST E-way bill regulations are being rolled out and streamlined across India. Currently, e-way bill is mandatory for inter-state transfer of goods and e-way bill is being made mandatory for intra-state transfer of goods in phases. Under GST, an Officer would have to follow certain rules and regulations while intercepting and inspecting goods in transit. In this article, we look at such rules pertaining to the inspection of goods in transit under GST.

Interception of Goods

An officer authorised by the jurisdictional Commissioner is empowered to intercept and inspect a conveyance. On being intercepted, the person in charge of the conveyance or transporter must produce the documents related to the goods and the conveyance like e-way bill and invoice or delivery challan.

The officer could verify the documents produced and the e-way bill number electronically,either by logging on to http://mis.ewaybillgst.gov.in or the Mobile App or through SMS by sending EWBVER to the mobile number 77382 99899 (For e.g. EWBVER 120100231897). In case all the documents are in order, the goods must be allowed to move further.

Inspection of Goods

In case the transporter fails to produce the documents requested by the officer or there is a discrepancy, the officer can record a statement of the person in charge of the conveyance in FORM GST MOV01 to begin the process of inspection of goods.

In addition, the proper officer will issue an order for physical verification/inspection of the conveyance, goods and documents in FORM GST MOV-02, requiring the person in charge of the conveyance to station the vehicle at the place mentioned in the order and allow the inspection of the goods.

On issuing GST MOV-02, the officer must perform the following steps within the timeline mentioned below:

1. Prepare a report in Part A of FORM GST EWB-03 and upload the same on the common portal. – Within 24 hours.
2. Conclude the inspection proceedings and prepare a report in Form GST MOV04 and complete Part B of GST EWB-03 on E-way Bill Portal – Within 3 working days.
3. In case time of more than 3 days is required, the officer must obtain approval in Form GST MOV03.

Release of Goods

After inspection and completion of the above steps, if there is no discrepancy, then the officer can issue a release order in Form GST MOV05. In case, the officer is of the opinion that the goods need to be detained after inspection, he/she can issue a detention order in Form GST MOV06 and a notice in Form GST MOV07 along with the tax and penalty payable. Form GST MOV06 and GST MOV07 will be served to the person in charge of the conveyance.

Payment of Penalty

On being served notice in Form GST MOV07, the owner of the goods or any person authorized by can make the payment of tax and penalty. In case the payment of tax and penalty is made, the Officer would issue an order in Form GST MOV05 to release the goods.

Demand of any tax, penalty, fine or other charges will be added in the electronic liability ledger of the person concerned. If no electronic liability ledger is available in case of an unregistered person, a temporary ID will be created by the proper officer on the common portal and the liability will be created. The concerned person can then credit the payments made towards such demands of tax, penalty or fine and other charges by debiting the electronic cash ledger of the concerned person.

Accrual of Penalty

In case the owner of the goods does not come forward to make the payment of tax and penalty, then the amount of tax and penalty would be accrued and the order in FORM GST MOV-09 will be uploaded on the common portal and the tax demand and penalty will be added in the electronic liability register.

Security

In case the owner of the goods, or the person authorized by him, comes forward to get the goods and the conveyance released by furnishing a security, the goods and the conveyance will be released, by an order in FORM GST MOV-05, after obtaining a bond in FORM GST MOV-08 along with a security in the form of bank guarantee equal to the amount payable.

Objecting the Penalty

In case any objections are filed against the proposed amount of tax and penalty payable, the proper officer must provide an opportunity for the taxpayer to be heard and consider such objections. Finally, the Officer can pass an order in FORM GST MOV-09, quantifying the tax and penalty payable.

Non Payment of Penalty

In case the proposed tax and penalty are not paid within seven days from the date of the issue of the order of detention in FORM GST MOV-06, the officer can issue a notice in Form GST MOV10 and propose confiscation of the goods and conveyance and imposition of penalty.

Further, if the officer believes that the movement of goods is being effected to evade payment of tax, he can directly invoke section 130 of the CGST Act and issue a notice proposing to confiscate the goods and conveyance in FORM GST MOV-10.

In GST MOV10, the quantum of tax and penalty leviable along with the fine in lieu of confiscation leviable will be specified.

Know more about GST penalties.

Confiscation of Goods

In case of non-payment of penalty or if the goods were moved for evading taxes, an order of confiscation of goods can be passed in FORM GST MOV-11 and uploaded on the common portal, after giving an opportunity for the taxpayer to be hear. While confiscating the goods, the Officer must take into consideration the objections filed by the person in charge of the goods (owner or his representative). Once the order of confiscation is passed, the title of such goods will stand transferred to the Central Government. Further, in the confiscation order a suitable time not exceeding three months will be offered to make the payment of tax, penalty and fine imposed in lieu of confiscation and get the goods released.

Auction of Goods

After confiscation of goods, if the owner of the goods nor any person other than the owner of the goods comes forward to make the payment of tax, penalty and fine imposed and get the goods or conveyance released within the time specified, the goods can be auctioned in a public auction and the sale proceeds would be credited to the account of the Central Government.

The post GST Inspection of Goods in Transit appeared first on IndiaFilings.com | Learning Center.

GST on Property Transactions

GST or Goods and Services Tax is an indirect tax levied on all supply of goods and services in India. GST is applicable for supply of service related to construction of building. However, GST is not applicable on completed constructions. In this article, we look at the applicability of GST on Property Transactions in detail.

Applicability of GST

As per GST law, construction of a complex, building, civil structure intended for sale to a buyer is considered a service and liable for GST – if any consideration is received before issuance of completion certificate. However, GST is not applicable if the whole of the consideration for a property is paid after issuance of completion certificate by a competent authority or after its first occupancy, whichever is earlier.

Hence, if you are purchasing a property from a builder directly and if payments are made to the builder towards the property prior to occupation, GST would be payable on the amount paid. However, if a property is purchased in a secondary transaction from an owner, then GST would not be applicable as the payment is being made after issuance of completion certificate or first occupancy.

GST Rate on Property Transaction

The effective GST rate applicable on purchase of under construction residence or commercial properties from a builder involving transfer of property in land or undivided share of land to the buyer, is 12% with full Input Tax Credit (ITC).

The GST rate payable on construction services is 18%. However, the effective rate paid on property transaction would be 12%, as GST at the rate of 18% is levied only on 2/3rd of the amount for the property; 1/3rd of the amount is deemed as value of land or undivided share of land supplied to the buyer and is not taxable under GST.

Property Purchased Before GST Implementation of GST

GST has been implemented in India from 1st July 2017. If all payment for a property under construction was paid before 1st July 2017, then no GST would be payable on such a property even if the construction is completed and the property is handed over after 1″ July, 2017.

However, this transaction would have attracted Service Tax at the rate of 4.5% because if the invoice was raised or payment made prior to the implementation date of GST, the point of taxation arose before the GST implementation day and the transaction attracts Service Tax and not GST.

However, if a builder raised GST invoice or received payment from a buyer after 1⁵ July, 2017, then GST would be applicable at the 12% rate. Further, from 1st July, 2017, the builder is eligible for availing full input tax credit (ITC) on goods and services for paying his output tax @ 12%.

Anti-Profiteering

Under section 171 of the CGST Act, any reduction in GST rate on supply of goods or services or the benefit of input tax credit should be passed on to the buyer by commensurate reduction in prices. In case a seller does not reduce prices after reduction of GST rates, the matter can be referred to the Anti-Profiteering Authorities. Anti-profiteering Authorities have been set up to examine whether input tax credits availed by a registered person has actually resulted in a commensurate reduction in price of the goods or services supplied by him.

The post GST on Property Transactions appeared first on IndiaFilings.com | Learning Center.

27th GST Council Meeting

The 27th GST Council Meeting is set to be held on May 4th, 2018 over video conferencing. In the 27th GST Council Meeting, the major agendas to be taken up by the Government and GSTIN are:

• Simplification of the GST return filing forms
• Change of ownership of the GST Network
• Imposition of cess on sugar to clear the dues of farmers.

Check out the major decision taken in the 26th GST Council Meeting.

Simplification of GST Return Filing

One of the major agendas to be taken up in the 27th GST Council is the simplification of GST Return Filing. Initially, a taxpayer was required to file GSTR1 return, GSTR2 return and GSTR3 return. However, as there was trouble with filing forms GSTR1, GSTR 2 and GSTR3, the Government introduced a simplified return called GSTR3B upto December 31, 2017. GSRT 3B return filing was further extended upto June 2018. GSTR 2 and GSTR 3 returns were not required to be filed until further notification from the Government.

Now, in the 27th GST Council Meeting, the Government will try to streamline the GST return filing and decide the fate of GSTR 2 and GSTR 3 returns. GSTR 2 and GSTR 3 returns are key in invoice matching and input tax credit disbursement. However, introducing more returns will make compliance burdensome for many entities. Hence, the Government is keen on approving the new system for tax payment, credit disbursement and compliance monitoring (via a semi-automatic invoices-matching).

Hence, under a new model to be taken up in the 27th GST Council meeting, a new model would be considered wherein the taxpayers would not have to file additional returns. The system will automatically generate reports based on monthly returns file by a taxpayer based on supply data uploaded and inward supplies accepted. Based on this data, the system would generate a list of suppliers defaulting on tax payment and GST officials will use this for curbing tax evasion.

Changes to GSTN Ownership

Currently GSTN is owned by the Government (Central and State) along with five private financial institutions — HDFC, HDFC Bank, ICICI Bank, NSE Strategic Investment and LIC Housing Finance. GSTN is incorporated as a Section 8 Company.

Since, the data handled by GSTN is very sensitive, there has been representations made to change the ownership of the GSTN. This will be taken up in the 27th GST Council Meeting as well.

CESS on Sugar

The 27th GST Council Meeting will also take up the issue of levying GST Cess on sugar. The proposed Cess levied on sugar will be used by the Government to finance the gap between the cane price mills pay to farmers in accordance with a revenue-sharing formula recommended by the Rangarajan Committee and the benchmark rate – fair and remunerative price (FRP) — fixed by the Central Government. The proposed Cess could be in the range of Rs.1 to R.1.50 per kg of sugar.

The post 27th GST Council Meeting appeared first on IndiaFilings.com | Learning Center.