Wednesday, November 28, 2018
Govt extends GST Return due Dates in Tamil Nadu - GST NEWS
The Central Government has extended the due dates of filing of GST returns in the State of Tamil Nadu after the State is suffering from the loss due to the cyclon, ‘Gaja’.
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Earlier, the State Government had asked the GST Council 30 days time for filing GST forms, including GSTR3B and GSTR 1.
Besides, the State government had also sought exemption of late fee of Rs. 200 per day and penal interest on it. If the Central government accepts this request, the assessees can file their forms without late fee and interest by December 20, an official release said.
As per a press release issued by the Government today, the due date for filing GSTR-3B, GSTR-1, GSTR-4 and GSTR4 for different periods has been extended to various dates.
READ ALSO:- GST Lessons for Commerce Students in Gujarat - GST NEWS
The Statement issued by the Government said that the due dates have been extended in view of the disturbances caused to daily life by cyclon Titli in the districts of Cuddalore, Nagapattinam, Thiruvarur, Thanjavur, Pudukottai, Ramanathapuram, Tiruchy, Karur, Theni, Sivaganga and Dindigul are facing difficulties in filing their monthly returns in the aftermath of the cyclone.
source:- taxscan
Monday, November 26, 2018
AHMEDABAD: The goods and services tax (GST) introduced in India in July 2017, sent business establishments across the country into course-correction mode with its new method of computation. From 2019, commerce students in Gujarat will also be calculating GST. Gujarat Secondary and Higher Secondary Education Board (GSHSEB) on Friday announced the introduction lessons on GST from the academic year 2019-20, for students of classes XI and XII (commerce).
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Textbooks of the National Council of Educational Research and Training (NCERT) introduced demonetization and GST from this year.
A J Shah, chairman of GSHSEB, said they have consulted the commerce and law departments of the state government for the purpose. “The textbooks of classes XI and XII will have one chapter on GST. The draft has been given to experts for review,” he said.
READ ALSO:- Demonetisation, GST cost economy Rs 4.75 lakh cr: Amit Mitra - GST NEWS
Bhupendrasinh Chudasama, state education minister, said that a number of issues were put forth by the state business community when the tax was introduced. “We thus thought of introducing the subject at the school level so students can get acquainted with the concept. We hope that the move will create more awareness,” he said.
source:- Times of India
Demonetisation, GST cost economy Rs 4.75 lakh cr: Amit Mitra - GST NEWS
As a result of the faulty implementation of the Goods and Services Tax (GST), the states earned Rs 78,929 crore less revenue since July 2017, which has been compensated by the Centre as per compensation law of the new indirect tax regime, he said.
PTI
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Demonetisation and faulty implementation of the GST have caused a loss of Rs 4.75 lakh crore to the country's economy, West Bengal Finance Minister Amit Mitra said on Friday.
He also criticised the Centre's initiative to extend up to Rs 1 crore loan to micro, small and medium enterprises (MSMEs) in 59-minutes, saying it was just a gimmick and he has not come across anyone who has received a loan through the portal.
As a result of the faulty implementation of the Goods and Services Tax (GST), the states earned Rs 78,929 crore less revenue since July 2017, which has been compensated by the Centre as per compensation law of the new indirect tax regime, he said.
"The government at Centre believes in chest thumping, hit and miss decision making, disastrous decision making and failure decision making ... There is an economic uncertainty in the minds of small businesses," Mitra said addressing a press conference at the India International Trade Fair (IITF) here.
Speaking about demonetisation of high-value currency notes on November 8, 2016, Mitra said it has hit farmers and unorganised sector of the economy badly since their business mode was cash dependent.
He said even developed countries like Japan and Switzerland have higher cash to GDP ratio than India.
"How much GDP has been lost to India due to demonetisation and GST? It is Rs 4.75 lakh crore," Mitra said, he said that economic growth has slowed down from 2015-16 onwards and to achieve that high level of growth India would need at least four years.
India's GDP growth declined from 8.2 per cent in 2015-16 to 7.1 per cent in 2016-17 and further to 6.7 per cent in 2017-18. The economic growth is expected to improve to 7.4 per cent in the current fiscal which ends in March 2019.
Mitra said that even consuming states are suffering revenue loss on account of GST implementation. Since there is no matching of invoices in GST, people are falsely generating invoices and claiming input tax credit, leading to hawala transactions.
READ ALSO:- Impact of GST on the formal sector - GST NEWS
Earlier this month, the government launched a portal to sanction loans of up to Rs 1 crore in just 59-minutes to GST-registered MSMEs.
"I have not heard of anybody who has got loans from that portal. In fact, MSMEs are worried that if they go through the portal, they will be chased later. They are suspicious about it. If the scheme means only giving in-principle approval, then how does it benefit the MSMEs," Mitra said.
source:- Moneycontrol
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Firms can avail ITCs from the tax authorities only if they can show that their supplier of inputs paid GST on those inputs. This forces all firms in the value chain to maintain records of their tax payments as firms higher up the value chain will demand these records to avail their respective ITCs. This self-policing feature of the GST is therefore expected to raise compliance and increase government revenues. It also has one more advantage. Firms in the informal sector are by definition out of the tax net. If these firms are suppliers of inputs to formal sector firms (that pay taxes), then they will be forced to register with the tax authorities and get their GSTIN numbers. Otherwise, the formal sector firms that procure their products as inputs will switch over to formal sector suppliers as they can use the suppliers’ GSTIN numbers to avail ITCs. Thus, the GST is also expected to formalise the economy, as more and more hitherto informal firms register with the tax authorities.
But there is a reverse possibility also. Consider two firms A and B. A is the supplier of inputs to B. Assume A is in the informal sector and B is in the formal sector. According to the previous paragraph, B will force A to get a GSTIN number so that B can avail ITC. So, A registers and comes into the formal sector. However, if the cost of GST compliance is very high, then B might instead be tempted to stop paying taxes or de-register and join the informal sector.
As a result, both A and B are now part of the informal sector and the entire value chain slips out of the tax net. Thus, if the costs of compliance are high enough, GST can actually shrink the formal economy and lower revenues.
READ ALSO:- Mineral mining rights liable to GST: AAR - GST NEWS
Two American economists, de Paula and Scheinkman, studied the effects of introduction of Value Added Tax (VAT) on Brazil. They found that the costs of compliance were so high that it marginally shrank the Brazilian formal sector initially. Later tax reforms reversed this trend and the formal sector expanded as expected. Has something like that happened in India? It is too early to say given the limited data. No doubt there has been a 50% increase in the indirect taxpayer base (according to the Economic Survey). But there is clear anecdotal evidence to suggest that firms are evading the payment of GST. Thus, value chains are slipping out of the tax net. Steps are, therefore, being taken to reduce the costs of compliance and incentivise firms to pay GST. The attempts by various stakeholders to make this tax reform work is promising.
source:- dnaindia
Sunday, November 25, 2018
NEW DELHI: Mineral mining rights granted by the government will be liable to the goods and services tax (GST) at the rate applicable on the supply of the extracted raw material, the Haryana Authority for Advance Rulings has ruled.
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The decision should ease the mining sector’s tax burden and clear the ambiguity over whether such rights are liable to be taxed at the rate applicable to the supply of these minerals or at a higher residual rate of 18%.
The ruling was given on an application filed by Pioneer Partners, engaged in mining of boulders and extraction of minerals, which had secured a mining licence from the Haryana government in lieu of which royalty was being paid.
The applicant sought to know whether such royalty payment on account of mining rights was liable to tax in the hands of the applicant under the reverse charge mechanism — where the recipient of goods/services is required to pay tax instead of the supplier — and if so, the rate applicable — 5% valid on supply of minerals or the residual 18%.
The AAR held that such rights granted by the government would qualify as a service liable to tax at the rate applicable to the supply of the mineral being mined, which is 5% in the present case.
In light of the specific notification providing for reverse charge liability on services received from the government, it also held that the applicant must pay tax on such royalty or rent paid.
In many cases, GST paid became a cost for the businesses where the products were either outside the ambit of the tax — such as petroleum products — or were used for activities exempt from GST, such as power generation.
READ ALSO:- Delayed loan EMI? Cough up 18% GST on penal interest - GST NEWS
Companies that have paid tax on such rights at 18% may explore the possibility of claiming a refund of the excess amount if it has not been claimed as input credit. “This is one of the rare rulings in favour of industry and it would be interesting to see if the authorities would appeal against it or consider making changes in the rate schedule itself,” said Siddharth Mehta, indirect tax partner at PwC India.
“Royalty paid to the government for various rights, amount paid for telecom spectrum, etc., are generally perceived as non-taxable payments by dealers. This ruling obviates doubts about their taxability and has rightly held that royalty paid for mining rights is eligible to tax,” said Harpreet Singh, a partner at KPMG.
source:- economictimes
Delayed loan EMI? Cough up 18% GST on penal interest - GST NEWS
MUMBAI: The GST Authority for Advance Rulings (GST-AAR), Maharashtra, has held that penal interest paid by a customer for delay in payments of equated monthly instalments to a finance company is subject to GST.
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Experts hold that this ruling, which has recently been made publicly available, will pinch the pockets of customers and may also lead to litigation. While advance rulings are binding only on the applicant and the tax authorities, they do create precedence in other similar cases.
"This ruling would in most probability be challenged before higher forums. In the meantime, there could be litigation and an exposure towards payment of 18% GST, if the ruling is ultimately upheld by the higher forums as well," says Sunil Gabhawalla, chartered accountant and indirect tax expert.
Bajaj Finance, which applied for this advance ruling, provided various types of loans to its customers. These ranged from car loans, housing loans, personal loans and even loans for purchase of consumer durable goods.
The outstanding dues were payable by the customer through equated monthly instalments (EMIs), either by cheque or electronic mode. EMIs were a fixed amount, covering repayment of both the loan taken and interest due on it. These were payable by the customer on specific dates.
In case of delay in payment of EMIs, Bajaj Finance collected a penal interest, as an additional interest, depending on the number of days of delay. The percentage of penal interest, varied from customer to customer and the nature of the loan – typically it was calculated at 2% to 4% per month on the overdue amount.
As interest on the loan amount itself is not subject to GST, the finance company, in its application contended that the penal interest should also not be covered by a GST levy.
However, the AAR held that GST exemption is available only in respect of interest earned or paid for loans, deposits or advances. If the transaction deviates from this nomenclature, the GST exemption is not available.
“Penal interest on delayed payment of EMIs is a receipt of an amount for tolerating the act of delay on part of the customers. It is not in the nature of additional interest, but is in the nature of a supply which is subject to GST” the AAR ruled.
READ ASLO:- Why e-commerce players are finding it difficult to comply with tax norms - GST NEWS
Gabhawalla adds: “AAR’s ruling seems to be disconnected from the factual matrix. The finance company does not in any way tolerate the delay in payment of EMI by the customer. In fact, the charging of penal interest itself suggests that the finance company is not keen to tolerate the delay. In the current scenario of non-performing assets (NPAs) and accountability, it appears too simplistic a proposition to classify such cases as toleration of a delay by the customers.”
According to a PwC-India alert, “The AAR ruling has adopted a position that appears contrary to the approach adopted historically by the financial services industry.It may create another area of potential dispute and the financial services industry may need to represent this issue to the Central Board of Indirect Taxes and Customs.”
source:- Times of India
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The law requires every e- commerce operator to collect 1 per cent tax in case of inter-state transactions and 0.5 per cent in case of intra-state transactions.
In order to collect TCS, the most important rule for the platforms is to get registered in each state where vendors selling on their platforms are based. To explain, a Gurgaon-based e-commerce platform will have to get registered in Kerala as well if a vendor from that state is selling on its platform. This requirement is causing a lot of problems as getting registered in multiple states is a hassle.
Anita Rastogi, partner, indirect taxes, PwC, says, "I need physical presence in the state to even get a registration. You need documents of presence in the state -- address, property, etc."
According to her, the GST authorities did assure the e-commerce platform that even if they put the address of the head-office, the state would provide the registration. The authorities even issued a circular in this regard. However, the instructions hadn't reached all the states and initially many of them rejected registration applications based on head-office addresses. "Though the states are now aware of the new circular, some of them are still getting educated," points out Anita Rastogi.
This has delayed the registration process for many e-commerce platforms.
Rajat Mohan, partner in a chartered accountant (CA) firm AMRG & Associates, says the confusion led many big e-commerce platforms to get their registrations much after October 1, 2018. For example, he says, one of the large travel portals got its registration done only on October 25, 2018 and another by November 5.
Some are still struggling to complete the registration process leading to a delay in the submission of taxes and filing of returns. Taxes collected in October were supposed to be deposited by November 10, 2018. Unless the taxes are deposited and returns are filed on time, vendors would not be able to avail credits on the taxes paid.
READ ALSO :- New GST Return Forms and Less refund outgo, push up GST collections
Bipin Sapra, partner, indirect taxes, EY, says many of the sellers on platforms like Amazon or Flipkart are small times vendors working on thin margins. "For them, this is an issue of increased compliance cost as well as an issue of working capital requirements," he says.
There are other practical issues as well that e-commerce operators are facing in complying with the TCS requirements.
Harshad Shinde, product manager, GST India, Avalara Technologies Pvt Ltd, says the TCS compliance brings many complications, which may not be easily addressed by the existing legislation and clarifications.
"For instance, how do cancellations get handled? Do e-commerce operators essentially act on behalf of the government and administer the collection and refund of TCS, since most of the vendors are not registered GST taxpayers? Which e-commerce operator will be responsible for TCS in case of hybrid transactions across two platforms? (Example - Trivago providing search of hotel room listings as an aggregation of multiple hotel room listing websites)," Shinde lists out some of the problems that e-commerce operators may encounter in future on complying with TCS norms.
source:- businesstoday
Friday, November 23, 2018
READ ALSO:- 9 TRUCK CAUGHT BY GST DEPARTMENT WITHOUT E-WAY BILLS - GST NEWS
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Thursday, November 22, 2018
GST department team caught 9 truck without E-Way Bills in Surat-Mumbai Highway. Patrolling many day's in highway, after diwali. Some Truck stopped for checking, GST Team found that some trucks are without E-way bills. Nine Lakh tax recovered by penalty on 9 trucks.
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Previous day's, state gst department caught tile's loaded truck without any document.
READ ALSO:- ANNUAL RETURN OPTION AVAILABLE IN GST PORTAL - GST NEWS
Wednesday, November 21, 2018
Pichhale dinon jaanch mein saamane aaya tha ki E-WAY BILL mein bhee bade paimaane par ghotaala kiya ja raha hai. Iss sistam ko bhee kuchh logo ne tax choree ka jariya bana liya hai. sendhamaaron ne is fool-proof yojana mein bhee jhol dhoondh kar Sarkaar ko mota choona lagaana shuroo kar diya hai. TAX chor E-Way Bill ke generate hote hee use cancel karaakar sarkaar ko tax mein motee chapat laga rahe hain aur bina koee tax ada kie system mein hee rahakar apana maal ek city se doosari city pahuncha rahe hain.
E-Way system mein rojana lag-bhag 15 lakh bill generate hote hain, lekin usi kram mein 1 lakh bill kcancel bhee ho jaate hain. bil cancel ke peechhe tax choro ka ek bada shadayantr kaam kar raha hai. Iss poore maamale mein sarkaar ko jo data haath laga hain ve chaunkaane vaale hain. sarkaar ne bill ke is durupayog karane vaale logo ke khilaaph kaarravaee karane aur system ko aur jyaada majaboot karne ka phaisala kiya hai.
Kaam Kar Raha Hai Pura Sindiket
GSTN dvaara jaanch mein paaya gaya ki kuchh log niyamit roop se E-Way Bill taiyaar karane chaar ghante ke bheetar us bil ko cancel kar rahe hain. Iss tarah kareeb 1 lakh bill rojaana cancel bhee ho rahe hain. itanee sankhya mein e-way bill cancel hone ke chalate Raashtreey soochana vigyaan kendr (NIEC) aur GSTN system kee jaanch shuroo kee gaee to jaanch mein paaya ki kuchh vyaapaaree jaanaboojh kar apane E-way bill cancel karava rahe hain.aur bill cancel hone ka yah kaam bill generate hone ke chaar ghante ke bheetar kiya jaata hai. aur in chaar ghante ke bheetar hee maal kee delivery bhee ho jaatee hai. yaanee maal bhee pahunch gaya aur e-way bill bhee cancel ho gaya.
E-way bill ko aur pukhta banaane ke lie GSTN ne ab OTP yaanee one time password system shuroo kiya hai. isase yah saabit ho sakega ki jis maal kee dileevaree kee ja rahee hai, us par tax choree nahin kee ja sake.
OTP ke saath Fast tagging mechanism shuroo kiya jaega. Isamen kisee karobaaree ko tax choree karte hue pakde jaane par usaka registration turant suspend kiya ja sakega
Jaanakaaree ke mutaabik new sysytem mein ek otp password Generate hoga aur usake satyaapaan ke baad hee E-waybill ka consignment poora maana jayega. Jab tak OTP ka satyaapan nahin hoga system mein kaarobaaree par laal nishaan laga rahega.
OTP aise karega kaam
Maal delivery ke lie koee bhee kaarobaaree jaise hee E-way bill taiyaar karega, usake saath ek OTP bhee aaega. yah otp us vyaapaaree ke mobail par pahunchega, jisako maal delivery kiya jaana hai. maal kee dileevaree hone ke baad maal bhejane vaale karobaaree ko otp system mein daalana hoga aur otp daalate hee consignment poora hone ka satyaapan karana hoga.
Is otp ke saath sarkaar national highway authority ke Fast tagging mechanism ka bhee istemaal karegee. taaki, kaarobaaree ke consignment par poore raaste najar rakhee ja sake.
4 ghante ke andar 1 laakh bill hote hain cancel
Jaanch mein yah bhee paaya gaya ki ek hee GSTN NO. se taiyaar 100 billon mein 99 billon ko cancel karaaya gaya hai. khaasabaat ye rahee ki jin billon ko cancel kiya gaya unamen se jyaadaatar ve the jin par inaput tax credit (ITC) ka daava nahin kiya gaya hai. ye bill chaar ghante ke bheetar hee cancel kie jaate hain.
READ ASLO:- Truck operators want vehicle fuel to be brought under GST - GST NEWS
khaasabaat ye hai ki jo bill cancel kiye ja rahe hain un par loha, steel, cement, sanitary item aur taambe ke taar aadi jaise ve saamaan bheje ja rahe hain jo aasaanee khap jaate hain. jaanch mein yah baat bhee saamane aaee hai ki in billon par saamaan bhejane kee dooree aasapaas ke shahar aadi hote hain, jahaan saamaan ko chaar ghante ke bheetar hee pahuncha diya jaata hai.
Monday, November 19, 2018
Sunday, November 18, 2018
In relief to tax-payers, rules that tax paid mistakenly under one head can be transferred to the correct account
In what is seen as a major relief for GST assessees, especially dealers, the Kerala High Court has ruled that any GST mistakenly paid under one head can be adjusted under the correct head.
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While noting that it sees no difficulty for the tax authorities to allow the petitioner’s request and get the amount transferred from the head ‘S-GST’ to ‘I-GST’, the court said it is inequitable for the authorities to let the petitioner suffer.
The court made these observations while disposing of a matter involving Saji S of Adithya and Ambadi Traders, Ranjith R of Ranjith Roadlines, and the State GST authorities.
Since the ruling is by a High Court, it can set a precedent for similar matters.
The said dealer bought goods from Chennai and transported them to Kerala. However, on way, the goods were seized, and a demand was made for tax and penalty. The payment was made under the head ‘State Goods and Services Tax’ (S-GST) and this became a matter of litigation.
The petitioner insisted that the payment was made on the instructions of the Assistant State Tax Officer (ASTO). But, by law, the remittance must have been made under the head ‘Integrated Goods and Services Tax’ (I-GST).
The petitioner submitted that even if the remittance was a mistake on the consignor’s part, the law empowers the authorities to transfer the deposit from one head to another, that is, from S-GST to I-GST.
But the tax authorities wanted the petitioner to pay the dues under I-GST and then claim refund under S-GST.
The court observed that there was no dispute on paying the tax and the penalty. Only, they had been remitted under the head S-GST, instead of I-GST. The court referred to Section 77 of the GST Tax and Rule 4(1).
Section 77 deals with tax refund of the tax mistakenly paid under one head. Rule 4(1) provides for an adjustment.
Preferring the adjustment route, the court asked the tax authorities to release the goods and the vehicle and ensure that the tax and penalty paid under S-GST get transferred to the I-GST.
Experts feel the ruling brings relief to tax-payers. Since the GST is a new law, many tax-payers have been struggling on this count of wrong payment of tax. The adjustment of tax paid under one head to another will save them the bother of paying again under the correct head and then claiming a refund.
READ ALSO:- Set up nodal agency for cruise tourism, slash GST: association - GST NEWS
Harpreet Singh, Partner at KPMG, said though the ruling reduces the complexity, it could lead to further litigation. “While the court has allowed the cross adjustment of tax under different heads, it would be interesting to see whether the ruling passes the muster of legal challenge, as the order relies upon subordinate legislation, that is, the Rules over the Act,” Singh added.
source:- thehindubusinessline
‘India emerging as potential destination given its vast coast’
India Cruise Lines Association (INCLA) approached the Prime Minister’s Office (PMO) earlier this month, seeking a host of relaxations that could make the domestic sector more attractive for investment and increase ease of doing business in the sector.
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Charter of demands
The charter of demands included regulatory framework in conjunction with global practices, reduction in Goods and Service Tax (GST), tax holidays to draw foreign capital investments through Foreign Direct Investment (FDI), duty-free shopping for cruise shipping and a nodal agency to streamline coordination between different ministries.
In a meeting held on November 8 at the joint secretary level in the PMO, Jurgen Bailom, chairman, inCLA, along with three other members, submitted a White Paper comprising recommendations for the Indian Cruise industry and a letter requesting early resolutions of challenges being faced by industry stakeholders. “We are optimistic that the cruise-tourism sector will be a game-changer for India’s economy,” Mr. Bailom said.
“The global cruising industry is one of the fastest growing segments in the travel and tourism industry and can make a significant contribution to a destination’s economy and local communities. As cruise lines are looking for new destinations, India is fast emerging as a potential destination for the cruise tourism. Especially for the coastal states, considering the vast coastline the country is endowed with, and yet remains unexploited,” he said.
Stating that the current GST rate of 18% will have a negative impact on the industry, inCLA sought a reduction to 5% on services of transportation of passengers by cruise ships.
Among the charter of demands submitted, the association also requested for cruise terminal of international standards and other facilities at Porbandar, Dwarka/Okha, Lakshadweep, Andamans, Puducherry, Kollam, Vizag and Kolkata. Given that there are various hotels, restaurants, bars, shops and entertainment centres on the cruise ships, the process of declaration of inventory is a time consuming task, it said.
READ ALSO:- CAG conducting performance audit of GST, report likely soon - GST NEWS
InCLA has recommended that adequate rules must be formulated to ensure that declaration of inventory and stocks and sealing of them is waived for Indian cruise industry.
source:- The Hindu
New Delhi, Nov 18 () The Comptroller and Auditor General (CAG) of India is conducting performance audit of GST and is likely to finalise its report soon.
The performance audit report on implementation of Goods and Services Tax (GST) could be tabled in Parliament as early as in the forthcoming Winter session beginning December 11, according to sources,
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The CAG is auditing the functioning of the new indirect tax regime since its implementation on July 1, 2017.
The audit aspect would include registration, refund, input tax credit, transition credit mechanism, ease of payment of taxes and the impact on the economic activity, the sources told .
The CAG team has already visited the GST Commissionerates in major states to get clarity on the functioning of the new indirect tax system and its efficiency and effectiveness, the sources said.
As part of the performance audit, the CAG looks at programmes, systems and activities to check if they are in accordance with the principles of economy and whether there is any scope for further improvement.
The performance audit will not take into account revenue collections. Its focus would primarily be on the implementation aspect of GST, which has subsumed 17 local taxes.
Tagged as the biggest tax reform since Independence, GST has faced some teething problems in the initial months of its implementation with the GST Network unable to take load of last minute monthly return filing rush.
Also, there were hiccups with respect to refunds to be claimed by exporters as well as excessive transitional credit claims.
READ ALSO:- Looks like fruits of Modi government's reforms getting visible steadily - GST NEWS
The monthly average revenue collection from GST in the previous fiscal (July 2017-March 2018) was Rs 89,885 crore. In current fiscal, the collections stood at Rs 1.03 lakh crore in April, Rs 94,016 crore in May, Rs 95,610 crore in June, Rs 96,483 crore in July, Rs 93,960 crore in August, Rs 94,442 crore in September and Rs 1 lakh crore in October.
source:- Times of India
