Highlights of Budget 2019 from Direct Tax and Indirect Tax Perspetive

1.Within 2 years, Tax assessment will be done electronically
2.IT returns processing in just 24 hours
3.Minimum 14% revenue of GST to states by Central Govt.
4.Custom duty has abolished from 36 Capital Goods
5.Recommendations to GST council for reducing GST rates for home buyers
6.Full Tax rebate upto 5 lakh annual income after all deductions.
7.Standard deduction has increase from 40000 to 50000
8.Exempt on tax on second self-occupied house
9.Ceiling Limit of TDS u/s 194A has increased from 10000 to 40000
10.Ceiling Limit of TDS u/s 194I has increased from 180000 to 240000
11.Capital tax Benefit u/s 54 has increased from investment in one residential house to two residential houses.
12.Benefit u/s 80IB has increased to one more year i.e. 2020
13.Benefit has given to unsold inventory has increased to one year to two years.

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Highlights of the Interim Budget for 2019-20 (Apr-Mar), presented by Finance Minister Piyush Goyal in Parliament today

FY20 ESTIMATES

* Will spend 190 bln rupees FY20 on rural road plan

* 600 bln rupees being allocated for MNREGA FY20

* Will provide more if needed for MNREGA in FY20

* Defence outlay at 3 trln rupees in FY20

* Allocated 645.8 bln rupees for railways FY20

* FY20 northeast infra allocation at 581.7 bln rupees

* Railway operating ratio seen 96.2% in FY19, 95% in FY20



FY19 REVISED 

* FY19 fiscal deficit seen at 3.4% of GDP

* Allocated 200 bln rupees for farm income scheme in FY19



FISC HEALTH

* Restored fiscal balance

* India has been in best phase of macroeconomy in last 5 yrs

* Contained fisc deficit despite raising states' tax share

* India attracted $239 bln as FDI in 5 years

* Most FDI came through automatic route

* Current account deficit seen at 2.5% of GDP

* Will provide additional funds for Defence, if needed

* Disbursed over 350 bln rupees for one-rank-one-pension plan



GROWTH, INFLATION

* Average growth in 5 yrs highest since econ reforms began

* 2008-2014 saw expansive credit growth

* Reforms have set stage for decades of high growth

* Inflation is unfair tax on poor, middle class

* Have broken the back of back-breaking inflation

* Contained double digit inflation



FINANCIAL SECTOR, MARKETS

* RBI's AQR revealed hidden NPAs in 2015

* Had guts to tell RBI to do asset quality review of banks

* Have run a corruption-free govt

* Ushered in new era of transparency

* Banks' merger being done to improve access to capital

* Spent 2.6 trln rupees so far on bank recapitalisation

* Bank mergers done to get economies of scale

* Expect other banks to soon exit prompt corrective action

* IBC a resolution friendly mechanism retaining assets' value

* On IBC: Even big businessmen now worry about loan repayment

* 3 trln rupees already recovered by banks

* IBC has institutionalised recovery of NPAs

* Govt stopped culture of phone banking

* Measures undertaken to ensure clean banking

* 175-bln-rupee orders placed on govt e-marketplace

* Govt e-marketplace being extended to all PSUs



INFRASTRUCTURE, INDUSTRY

* 7.23 trln rupees MUDRA loans given so far

* India 2nd largest hub for start-ups now

* To create 100,000 digital villages in 5 years

* Mobile data consumption increased 5 times in last 5 years

* Need to improve hydropower capacity to cut oil, gas import

* Solar power generation capacity raised 10 times

* To start container cargo movement in northeast

* All unmanned level crossings on broad gauge eliminated

* 27 km of highways being built each day

* India fastest highways developer in the world

* Gone beyond incremental growth in infra



FARM SECTOR

* Seek a new India where farmers' income would have doubled

* Income support scheme to be given in 3 equal instalments

* Income support for farmers holding less than 2 ha land

* Kisaan scheme to transfer 6,000 rupees/yr to small farmers

* To create PM Kissan Fund for small, medium farmers

* Fall in commodity, farm pdt prices have reduced farm income

* There is a need for structured income support for farmers

* Agriculture continues to be main driver of rural economy

* Increased allocation for Gokul scheme to 7.5 bln rupees

* 1st instalment of 2,000 rupees to be given to farmers soon

* Income support scheme to cost 750 bln rupees per year

* Farm income scheme to be effective from Dec 1, 2018

* 120 mln small farmers to benefit from income support scheme

* Farm income scheme to be fully funded by central govt

* Interest subvention for farmers hit by natural disasters

* To set up Rashtriya Kamdhenu Aayog

* To start drive to bring all farmers under Kisan credit plan

* 2% interest subvention for animal husbandry, fisheries



SOCIAL SECTOR, EDUCATION
* Ayushman Bharat to provide facilities to 500 mln people

* Massive scale-up in healthcare in last 5 years

* Construction of rural roads tripled under PM road plan

* Swachh Bharat world's largest behavioural change movement

* Conducted transparent auction of natural resources

* To set up 22nd AIIMS in Haryana

* Households saved 30 bln rupees from Ayushman Bharat

* 1.7 trln rupees spent for food at affordable rates for poor

* 5-bln-rupee allocation for new "mega" pension plan

* Half of GDP is from 420 mln workers in informal sector

* EPFO data shows formalisation of econ, job creation

* Jobs are created when there is high growth

* Aim 80 mln LPG connections under Ujjwala plan by next yr

* To allot more funds for new "mega" pension plan, if needed

* To give 3,000 rupees/month under new PM pension plan

* New pension plan for workers earning below 15,000 rupees/month



MISCELLANEOUS

* India is solidly back on track

* Have reversed policy paralysis engulfing the nation

* Goyal wishes speedy recovery to Jaitley

* People of India gave strong mandate to our govt

* India 6th largest economy in the world

* India fastest growing major economy in the world today

* India recognised as a bright spot in last five years

* India marching towards growth, prosperity

* Have run a corruption-free govt

* Ushered in new era of transparency

More to come

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MANDATORY TO OBTAIN CERTIFICATE OF COMMENCEMENT OF BUSINESS FOR REGISTERED COMPANIES

*MANDATORY TO OBTAIN CERTIFICATE OF COMMENCEMENT OF BUSINESS FOR REGISTERED COMPANIES:*

Companies registered on or after November 02, 2018 is required to file the declaration for commencement of business with the Registar of companies.

*Time limit :* The decleration for commencement of business shall be filled within 180 days from the date of getting CERTIFICATE OF INCORPORATION. 

*PENALTY IF NOT FILED THE ABOVE MENTIONED FORM:*

• Company is liable to pay Rs 5000 

• Directors is liable to pay Rs 1000 Per day and maximum 1 lacs after expiration of 180 days from the date of registration.

*CONSEQUENCES IF FORM IS NOT FILED WITHIN TIME-*

• Company cannot start his business
• Company cannot borrow money
• Company will be closed by the Registrar of Companies.
• Department will remove of name of the company from the Registrar of Companies.

--
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Eway Bill to GSTR1 new feature

Now No need to punch all Invoices in GSTR-1.
You can directly import your all invoices declared in E-Way Bill system into Form GSTR-1.
Only those invoices will be punched, for which no Eway Bill has been generated.

--
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*14 Amendments to take effect under GST from 1st Febuary 2019*

1. Upper limit of turnover for opting of composition scheme shall be raised from Rs. 1 Cr to Rs. 1.5 Cr.

2. A Composite dealer(in goods) shall be allowed to supply services (other than restaurant services), for a value not exceeding -

Higher of 10% of turnover in the preceding financial year, or Rs. 5 lakh.

3. The threshold limit of Turnover for exemption from registration in the States of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand shall be increased to Rs. Twenty Lakh from Rs. Ten Lakh.

4. In case of purchase of notified goods from unregistered suppliers, Reverse charge mechanism shall be applicable to notified registered persons.

5. Taxpayers may opt for multiple registrations within a State/U.T in respect of multiple places of business located within the same State/U.T on the same PAN.

6. Mandatory registration is required for only those e-commerce operators who are required to collect tax at source.

7. Registration shall be remain temporarily suspended while cancellation of registration is under process, so that the taxpayer could get relief of further continued compliance under the law.(i.e Taxpayers will not be required to file returns).

8. The following transactions shall not treated as supply (i.e no tax payable under GST) under Schedule III:-

a. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India;
b. Supply of warehoused goods to any person before clearance for home consumption; and
c. Supply of goods in case of high sea sales.

9. Input tax credit would now be available in respect of the following:-

a. Most of the activities or transactions specified in Schedule III;
b. Motor vehicles for transportation of persons having seating capacity of more than thirteen (including driver), vessels and aircraft;
c. Services of general insurance, repair and maintenance in respect of motor vehicles, vessels and aircraft on which credit is available; and
d. Goods or services which are obligatory for an employer to provide to its employees, under any law for the time being in force.

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

11. Commissioner may extend the time limit for return of inputs and capital sent on job work, upto a period of 1 year and 2 years, respectively.

12. If RBI would permit, Supply of services outside India shall be regarded as exports, even if payment is received in Indian Rupees.

13. Place of supply shall be outside India, where job work or any treatment or process has been done on goods temporarily imported into India and then exported out of India without putting them to any other use in India except the uses which were necessary for the purpose of such job work or treatment or process.

14. Recovery of taxes, interest, fine, penalty etc. can be made from distinct persons, even if such distinct persons are present in different State/Union.

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Highlights of *Companies (Amendment) Ordinance 2019* ) Date of applicability is yet to be notified )

1. *Commencement Certificate* is mandatory now to be obtain within 6 months of Incorporation without which, it can not comment its business activity or borrow money.

2. The ROC can strike off a company if the address of Regd Office is *bogus* or incomplete/improper  address.

3. Conversion of public Ltd to Pvt Ltd matters shifted from NCLT to Regional Directorate.

4. Company cannot issue shares at discount, - heavy penalty imposed on violation.

5. Alteration of Authorised Capital to be intimated within 30 days, default - penalty 1000 every day or 5 Lac whichever is less.

6. Creation of charge filing with ROC-  time limit *reduced* from 300 days to 60 days.

7. Wrong statement/ information in filing Charge forms with ROC may lead to misrepresentation and *jail*

8. *Annual Return* should be filed within 60 days from AGM, failure to this, penalty of 100 per day to Company + directors max 5 Lakh apart from ROC delay charges is applicable.

9. Penalty of 5 lakh to Company secretary certifying wrong Annual Return.

10. Explanatory statement to be given with Notice of General Meeting must contain all details as required by Law, if no detail/short detail/misleading - penalty for Company + Directors + KMP - 50K

11. *filing of Resolutions* with ROC- delay will be *very costly* now. Penalty for defaulter increased substantially. 500 every day max 25 Lakh

12.Filing of Balance sheet with ROC within time limit- failure is costly for Company + Directors both. Penalty of 100 per day + 1 lakh to Company + Director each.

13. *Resignation of Auditor* must be filed by the resigning Auditor within 30 days, failure to which the resigning Auditor is liable for penalty of 50,000 + 500 per day.

14. A director can not become director in  morethan 20 companies. If he continues, he becomes disqualified now.

15. Appointment of CS on payroll (Pvt Co having paid-up capital 5 cr & above) is mandatory. Default is now very costly- penalty increased substantially.

16. ROC may strike off a company if subscribers have not paid initial share capital after incorporation of a Company within 6 months.

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Upcoming due dates for GST and Income Tax

                       

                             

Ø  18th January - GSTR-4 by composition dealers for quarter October to December.

Ø  20th January - GSTR-5 (non-resident foreign taxpayers) for the month December 2018.

Ø  20th January - GSTR-5A (non-resident OIDAR service provider) for the month December 2018.

Ø  20th January - GSTR-3B for the month December 2018.

Ø  30th January - Quarterly TCS certificate in respect of tax collected for the quarter ending December 31, 2018.

Ø  30th January - Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA and 194-IB in the month of December, 2018.

Ø  31st January - Quarterly statement of TDS deposited for the quarter ending December 31, 2018

Ø  31st January - GSTR-1 for the quarter October to December.

Ø  31st January - GSTR-8 for the the month of October to December.

Ø  7th February - Due date for deposit of Tax deducted/collected for the month of January, 2019.                                                                           *FinTax*                                                                      📲 91 9892094003                                                  📥 fintax.ca@gmail.com 

**

*

Major decisions taken / recommendations made by the GST Council in its 32nd GST Council meeting dated 10th January, 2019 at New Delhi

The GST Council in its 32nd meeting held in Delhi, under the Chairmanship of Shri Arun Jaitley, the Union Finance Minister and the Minister of Corporate Affairs in the Cabinet of India took the following decisions, published vide press release, discussed herein below in the sequence of publication along with observation wherever found necessary for explanation and ease of understanding:

A. GST council gave approval for the following:
i. The followings will be notified w.e.f 1st February, 2019:
a. CGST (Amendment) Act, 2018,
b. IGST (Amendment) Act, 2018,
c. UTGST (Amendment) Act, 2018,
d. GST (Compensation to States) Amendment Act, 2018,
e. amendments in CGST Rules,
f. Notifications and Circulars issued earlier, and
g. Corresponding changes in SGST Acts.
ii. Last date for passing the examination for GST Practitioners to be extended till 31.12.2019 for those GST Practitioners who have enrolled under rule 83(1)(b).

B. GST Council has taken the following decisions:

1. Increase in turnover limit for the existing composition scheme:
i. The limit of annual turnover in the preceding financial year for availing
composition scheme for goods shall be increased to Rs. 1.5 crore.
ii. Special category States would decide, within one week, about the
composition limit in their respective States.
Observation:
i. The phrase ‘annual turnover’ hasn’t been defined in GST law. Sec 2(6)
of the CGST Act, 2017 defines the phrase ‘aggregate turnover’. In the
absence of a clarification, this might lead to confusion.
ii. Increase in turnover is applicable for persons supplying ‘goods’ only.
iii. State wise different limit, if varies, will be a departure from uniform
applicability across nation.
iv. Large section of traders are likely to be benefited out of it.
iii. Compliance under composition scheme shall be simplified with filing
of one annual return and payment of taxes quarterly along with a
simple declaration.
Observation:
i. Proposed system will likely to ease compliance burden.
ii. Proposed simple declaration form to be reviewed.

2. Higher exemption threshold limit for supplier of goods:
a. two threshold limits for exemption from registration and payment of
GST for supplier of goods:
➢ Rs. 40 lakhs, and
➢ Rs. 20 lakhs.
❖ States would have an option to decide about one of the limits
within a weeks’ time;
b. threshold limit for exemption for service providers would continue to
be as follows:

➢ Rs. 20 lakhs, and
➢ Rs. 10 lakhs in case of Special category States.
Observation:
i. State wise separate registration limit, if decided, will be a departure
from uniform applicability across nation.

3. Composition scheme for services:
i. A composition scheme shall be made available for supplier of service
(or mixed suppliers) with a tax rate of 6% (3% CGST plus 3% SGST);
ii. The scheme is available having an annual turnover in preceding
financial year up to Rs. 50 lakhs;
iii. The said scheme shall be applicable to the following suppliers who are
presently not eligible for the presently available composition scheme for
goods:
➢ supplier of services, and
➢ supplier of goods and services.
iv. Such supplier will be liable to file one annual return and quarterly
payment of taxes along with a simple declaration.
Observation:
i. This will beneficial for small service providers.

4. Decisions stated in B(1), B(2) and B(3) above, shall be made operational
from 1st April, 2019.

5. Free Accounting and Billing Software shall be provided to small taxpayers
by GSTN.

6. Matters referred to Group of Ministers:
i. A seven member Group of Ministers (GoMs) shall be constituted to
examine the proposal of giving a composition scheme to boost the
residential segment of real estate sector;

ii. A Group of Ministers (GoMs) shall be constituted to examine the GST
rate structure on lotteries.

7. Revenue mobilisation for natural calamities:
GST Council approved levy of cess on intra State supply of goods and
services within the State of Kerala at a rate not exceeding 1% for a period
not exceeding 2 years.
Observation:
i. Revenue mobilisation, for natural calamity, in the form of cess, appears to
have planned for the State, from the State itself where such calamity took
place.

Source: PIB

Disclaimer: The publications contain information solely for informational purpose. It
is not a guidance note and does not constitute any professional advice at all. 

*FinTax*

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Update on GST Council 32nd Meeting

GST Council has made a big decision about the composition scheme. GST Council today has made several big decisions for businesses and the general public. This was the Council’s 32nd meeting. GST Council has made several changes in the composition scheme and GST limit. Know what are the major decisions related to GST today. According to ET Now’s exhaustive news, the limit of composition scheme has been reduced to Rs 1.5 crore in the meeting. This new limit will be applicable from 1 April 2019. Apart from this, GST Council has allowed SMEs to file annual returns. However, these small traders have to pay tax every quarter. Earlier, they had to fill the returns in every quarter.
GST Council can extend the GST scope today too. Now the business of up to Rs 20 lakh comes under the purview of GST. This limit can be increased to Rs 40-50 lakh. For this reason many small businessmen will be out of the realm of GST. These small businessmen will not have the hassles of GST registration. The finance minister of all the states is included in the GST Council meeting. This meeting is being held today in Delhi under the chairmanship of Finance Minister Arun Jaitley. GST Council takes a decision on all matters connected with GST. In the previous meeting, the rate of tax was reduced on 26 things. It is yet to be informed of the other decisions related to GST Council meeting.
GST Council may also approve disaster cess today. This discount can be received by Kerala. Kerala can be allowed to impose 1% cess. Apart from this, the GST can be reduced to 5% on under construction, flat and house. In December, the government got a collection of Rs 94,726 crore through GST. In this meeting, service sector units doing business up to 50 lakhs can also be brought under the composition scheme. These can be 5 percent GST. The Group of Ministers has recommended the payment of accounting and billing software for free of up to 1.5 crore business units.

All this information is not yet published or officially announced.

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New Releses on GST Portal as on 9th January 2019

(A)    Assessment and Adjudication:

(i)             Rectification of mistake in the order by the Adjudicating Authority: Errors or mistakes apparent on face of record can be rectified by the Adjudicating Authority, on basis of suo-moto rectification or upon receipt of an application from taxpayer, within a period of six months from the date of issue of such order. In these type of cases, an application for Rectification can be filed by the taxpayer on GST portal within 3 months from date of issue of order. User Manual and FAQ may be accessed at link https://www.gst.gov.in/help/assesmentadjustment at GST portal.

(ii)             Furnishing details of security/ surety : Taxpayer can now furnish details of security/ surety in prescribed form on GST Portal.  After submitting the form online, they are required to furnish hard copy of original bank guarantee/ surety/ security to the proper officer. (refer Rule 98(4) of the CGST Rules, 2017 & Form GST ASMT-05).

(B)      Refund Module (Filing of Monthly Refund applications by Quarterly GSTR-1 filers) : As of now, taxpayers filing Form GSTR 1 quarterly, can file refund application on quarterly basis only. The system validates whether the tax payer has filed Form GSTR-1 and Form GSTR-3B for the corresponding period or not. Now, the restriction for applying refund on quarterly basis for quarterly GSTR 1 filers is removed, so that these tax payer would also be able to file refund application on monthly basis. This implies that the taxpayer can file monthly refund application, but Form GSTR 1 for the quarter must be filed. FAQ and User Manual for Refund Module can be accessed at link https://www.gst.gov.in/help/refund at GST portal.

(C)     Appeal (Preparation of Form GST APL-01 by GSTP, on behalf of taxpayer) : Tax payers can now select a GST Practitioner, to prepare an appeal in Form GST APL-01, to be filed by them. The GSTP can save draft of the appeal application form. The taxpayer and GSTP would be able to continue on the saved drafts of the appeal application form, saved by either of them.

(D)    Appeal : An application, for rectification of an order, passed by an appellate authority, by a taxpayer, has been made available on GST Portal (refer Section 161 of the CGST Act, 2017). FAQ and User Manual for Appeal can be accessed at link https://www.gst.gov.in/help/appeal on GST Portal.

(E)     Composition Scheme:  If proceedings for compulsory withdrawal from Composition Scheme is initiated by a Tax Official, against a composition taxpayer, then composition taxpayer can now reply to such SCN issued on GST Portal (refer Rule 6(5) of the CGST Rules, 2017 & Form GST CMP -06).

(F)    Payment Module (Preferred banks list for taxpayer for making payment) : Now upto 6 preferred banks will be shown to a taxpayer while making e-Payment on GST Portal. When Taxpayer makes the first payment from GST portal, the selected bank will automatically get updated in the Preferred Banks list. Every time Taxpayer will make payment from a different bank it will be updated in the Preferred Banks list. In case, a Taxpayer already having 6 banks in its preferred banks list, makes a payment with 7th bank, then that 7th bank will be added in the preferred banks and the least used bank will be removed from the list.  Taxpayer can delete any of the preferred banks at any point of time.

(G)  Advance Ruling:

(i)                   Appeal against Advance Ruling given the Authority: Once an advance ruling is issued by an authority and if the applicant or the taxpayer is aggrieved by such an advance ruling, then they can file an appeal before the appellate authority.

(ii)                 Rectification of mistake in the order by the advance ruling authority or its appellate authority : If there is any mistake in the order passed under Section 98 or 101, by the authority or the appellate authority, which is apparent from the record, the authority or the appellate authority can pass a rectification order, for rectifying such mistake, within a period of six months from the date of the order. The applicant/appellant/taxpayer can make an application to the authority/ appellate authority for rectification of the mistake.

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Wheather it is mandatory to furnish inward details in Table 4A of GST-4 ?

👉As per Rule 62 sub-rule (3)(a) of CSGT Rules, 2017 Part-A (as on 31.12.2018),  Composition dealers are required to furnish invoice wise inter-State and intra-State inward supplies received from registered and unregistered persons in the FORM GSTR - 4

👉And as per FORM GSTR-4 of CGST Rules, 2017 Part-B (Forms) (as on 31.12.2018), in the instructions provided it is clearly mentioned that TABLE 4A will be auto-populated from the information reported by Supplier in GSTR-1 and GSTR-5.

*Practical Problem*

👉As mentioned in the GST law, details shall be auto-populated in GSTR-4A, but due to technical issues and in some cases, where supplier failed to file GSTR-1 or GSTR-5, this auto-population is not happening.

👉And even some cases where details are auto-populated in GSTR-4A but the same is not reflecting in Table 4A of GSTR-4. And Taxpayer has to suffer to upload the inward details manually from the books.

*Relief:*

👉Considering the practical difficulties and to facilitate simple return filing process, The Ministry of Finance on 17-October-2018 issued a press release & clarified the taxpayers who have opted to pay tax under the composition levy shall not furnish the data in Table 4A of FORM GSTR-4.

☝So we can conclude , As Inwards details are not auto-populating and taking Press Release issued on 17th of October,2018 as a base & based on department internal communication,  REPORTING OF TABLE 4A IN GSTR-4 IS NOT MANDATORY.

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GST Amendment Act, 2018

The President has given its assent to the The Central Goods and Services Tax (Amendment) Act 2018 , The Integrated Goods and Services Tax (Amendment) Act 2018. , The Union Territory Goods and Services Tax (Amendment) Act 2018. , The Goods and Services Tax (Compensation to States) Amendment Act 2018. on August 29, 2018.
Effective Date for Amendment in GST Act(s) 2018  will be 01.02.2019

Changes in CGST Act 2017 w.e.f 01.02.2019

Following are the Changes in the Relevant Section of CGST Act 2017 by Central Goods and Services Tax (Amendment) Act 2018
Section 2(4). Definitions of CGST Act 2017 : Adjudicating Authority
Section 2(17). Definitions of CGST Act 2017 : business
Section 2(18). Definitions of CGST Act 2017 :business vertical
Section 2(35). Definitions of CGST Act 2017 : cost accountant
Section 2(69). Definitions of CGST Act 2017 : local authority
Section 2(102). Definitions of CGST Act 2017 : services
Section 7. Scope of supply. : Amended  relating to “Scope of Supply” in order to clarify the scope of supply.
Section 9. Levy and collection. : Amended so as to restrict the levy of tax on reverse charge basis to receipt of supplies of certain specified categories of goods or services or both by notified classes of registered persons from unregistered suppliers on the recommendations of the Council.
Section 10. Composition levy. : Amended so as to raise the statutory threshold of turnover for a taxpayer to be eligible for the composition scheme from one crore rupees to one crore and fifty lakh rupees, and to allow the composition taxpayers to supply services (other than restaurant services), for up to a value not exceeding ten per cent. of turnover in the preceding financial year, or five lakh rupees, whichever is higher.
Section 12. Time of supply of goods. : Amended and the said amendment is drafting in nature.
Section 13. Time of supply of services.  : Amended   and the said amendment is drafting in nature.
Section 16. Eligibility and conditions for taking input tax credit. :
Amended in order to provide for input tax credit in cases of “Bill- to-ship-to” model in the case of supply of services. The said Amendment further seeks to include the provisions relating to the new return format as specified in the proposed new section 43A, for availment of input tax credit.
Section 17. Apportionment of credit and blocked credits. :  :Amended in order to further expand the scope of eligibility of input tax credit.
Section 20. Manner of distribution of credit by Input Service Distributor. : Amended  in order to exclude the amount of tax levied under Entry 92A of List I of the Seventh Schedule of the Constitution from the value of turnover for the purposes of distribution of credit.
Section 22. Persons liable for registration. : Amended so as to increase the threshold turnover for registration in special category States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand from ten lakh rupees to twenty lakh rupees.
Section 24. Compulsory registration in certain cases. : Amended  so as to provide for mandatory registration for only those e-commerce operators who are liable to collect tax at source under section 52 of the Act.
Section 25. Procedure for registration. : Amended aso as to allow persons having multiple places of business in a State or Union territory to obtain separate registration for each such place of business, and to insert the provisions for separate registration for a person having a unit(s) in a Special Economic
Zone or being a Special Economic Zone developer, distinct from his other units located outside the Special Economic Zone.
Section 29. Cancellation of registration. Amended so as to provide for temporary suspension of registration while cancellation of registration is under process.
Section 34. Credit and debit notes. Amended so as to allow registered persons to issue consolidated credit or debit notes in respect of multiple invoices issued in a Financial Year.
Section 35. Accounts and other records. Amended so as to provide that any Department of the Central or State Government or local authority which is subject to audit by the Comptroller and Auditor-General of India need not get their books of account audited by any Chartered Accountant or Cost Accountant.
Section 39. Furnishing of returns. : Amended so as to provide for prescribing the procedure for quarterly filing of returns with monthly payment of taxes.
Section 43A:  Procedure for furnishing return and availing input tax credit. (Newly inserted)
Section 48. Goods and services tax practitioners : Amended so as to allow Goods and Services Tax Practitioners to perform other functions such as filing refund claim, filing application for cancellation of registration, etc.
Section 49. Payment of tax, interest, penalty and other amounts.  Amended in order to provide that the credit of State tax or Union territory tax can be utilised for payment of integrated tax only when the balance of the input tax credit on account of central tax is not available for payment of integrated tax.
Section 49A : Utilisation of input tax credit subject to certain conditions (Newly inserted) This Section seeks to specify that a taxpayer would be able to utilise the input tax credit on account of central tax, State tax or Union territory tax only after exhausting all the credit on account of integrated tax available to him towards payment or integrated tax, Central tax, State tax or Union territory tax.
Section 49B  :Order of utilisation of input tax credit. (Newly inserted) This Section seeks to empower the Government to prescribe any specific order of utilisation of input tax credit of any of the taxes for payment of any tax.
Section 52. Collection of tax at source. : Amended in order to give the reference of section 39 of CGST Act 2017 Furnishing of Returns
Section 54. Refund of tax. Amended in order to provide that the principle of unjust enrichment will apply in case of a refund claim arising out of supplies of goods or services or both made to a Special Economic Zone developer or unit, and to allow receipt of payment in Indian rupees, where permitted, by the Reserve Bank of India in case of export of services.
Section 79. Recovery of tax. Amended to enable recovery to be made from distinct persons registered in different States or Union territories in order to ensure speedy recovery from other establishments of the registered person.
Section 107. Appeals to Appellate Authority. Amended Authority”, in order to specify twenty-five crore rupees as the upper limit of the amount of pre-deposit payable for filing of appeal before the Appellate Authority.
Section 112. Appeals to Appellate Tribunal. Amended in order to specify fifty crore rupees as the upper limit of the amount of pre-deposit payable for filing of appeal before the Appellate Tribunal.
Section 129. Detention, seizure and release of goods and conveyances in transit  Amended in order to increase the time limit before which proceedings under section 130 can be initiated from seven to fourteen days.
Section 140. Transitional arrangements for input tax credit. Amended  in order to clarify with retrospective effect from 1st July, 2017 that the cesses and additional duty of excise (on textile and textile articles) levied under the pre-Goods and Services Tax laws shall not be a part of transitional input tax
credit under the goods and services tax.
Section 143. Job work procedure. Amended in order to empower the Commissioner to extend the time limit for return of inputs and capital goods sent on job work, upto a period of one year and two years, respectively.
SCHEDULE I. of CGST Act 2017 “Activities to be treated as supply even if made without consideration”. : Amended

SCHEDULE II. of CGST Act 2017 : Amended  the title of Schedule II of the principal Act from “Activities to be treated as supply of goods or supply of services” to “Activities or transactions to be treated as supply of goods or supply of services”.
SCHEDULE III. of CGST Act 2017 “Activities or transactions which shall be treated neither as a supply of goods nor a supply of services”. Amended

Changes in IGST Act 2017 w.e.f 01.02.2019

Section 2(6). Definitions. “export of services
Section 2(16). Definitions. “non-taxable online recipient”
Section 5. Levy and collection. :  Amended to empower the Central Government to notify classes of registered persons to pay tax on reverse charge basis in respect of receipt of supplies of certain specified Categories of goods or services or both from unregistered suppliers;
Section 8. Intra-State supply. Words ‘‘being a business vertical’’ shall be omitted.
Section 12. Place of supply of services where location of supplier and recepient is in India. :   Amended to provide that if the transportation of goods is to a place outside India, the place of supply shall be the place of destination of such goods;
Section 13. Place of supply of services where location of supplier or location of receipient is outside India. Provisions of Section 13(1)(3)(a) Amended and  shall not apply in the case of services supplied in respect of goods which are temporarily imported into India for repairs or for any other treatment or process and are exported after such repairs or treatment or process without being put to any use in India, other than that which is required for such repairs or treatment or process;
Section 17. Apportionment of tax and settlement of funds. Amended to make a provision for settlement of balance in the integrated tax account equally between the Central Government and the State Governments or the Union territories, as the case may be, on ad hoc basis and shall be adjusted against the amount apportioned under the said sub-sections.
Section 20. Application of provisions of Central Goods and Services Tax Act. Amended to specify the amount of pre-deposit payable
for filing of appeals —
(a) before the Appellate Authority to be capped at fifty crore rupees;
(b) before the Appellate Tribunal to be capped at one hundred crore rupees.

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Bird Eye View on Removal of difficulty orders from Order No.2/2018 to order No.04/2018 and analysis of few recent GST Notification 67/2018 to 79/2018

The CBIC has issued Notifications related to recommendations made during 31st Meeting of the GST Council.

1. *_Order No. 2/2018:_* The due date for availing ITC on the invoices or debit notes relating to such invoices issued during the FY 2017-18 extended till 31st March,2019.

2. *_Order No. 3/2018:_* The due date for furnishing of annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the FY 2017-2018 extended till 30.06.2019.

3. *_Order No. 4/2018:_* The due date for furnishing the statement in FORM GSTR-8 by e-commerce companies for the months of October to December, 2018 extended till 31.01.2019.

4. *Notification No. 67/2018*: The time period specified in notification No. 31/2018-CT dated 06.08.2018 for availing the special procedure for completing migration of taxpayers who received provisional IDs but could not complete the migration process extended.

a. The details should be furnished by such taxpayers to the jurisdictional nodal officer of the Central Government or State Government on or before the 31st January, 2019.

b. Upon receipt, such taxpayers are required to furnish the following details to GSTN by email, on or before the 28th February, 2019, to migration@gstn.org.in

5. *Notification No. 68/2018:* The time limit for furnishing the return in FORM GSTR-3B for the newly migrated taxpayers extended for the period "July, 2017 to February, 2019" till "31st day of March, 2019

6. *Notification No. 69/2018:* The time limit for furnishing the return in FORM GSTR-3B for the newly migrated taxpayers extended for the period "July, 2017 to February, 2019" till "31st day of March, 2019".

7. *Notification No. 71/2018*: The time limit for furnishing the details of outward supplies in FORM GSTR-1 for the newly migrated taxpayers extended for registered persons having aggregate turnover of up to 1.5 crore rupees in the preceding financial year or the current financial year, the due date for the "July, 2017 to December, 2018" till "31st day of March, 2019".

8. *Notification No. 72/2018:* The time limit for furnishing the details of outward supplies in FORM GSTR-1 for the newly migrated taxpayers extended for registered persons having aggregate turnover more than 1.5 crore rupees in the preceding financial year or the current financial year, the due date for the "July, 2017 to February, 2019" till "31st day of March, 2019".

9. *Notification No. 73/2018:* The supplies made by Government Departments and PSUs to other Government Departments and vice-versa are exempt from TDS, the following services are:

(a) an authority or a board or any other body, -

(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by any Government, with fifty-one per cent. or more participation by way of equity or control, to carry out any function;

(b) Society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860);

(c) public sector undertakings.

10. *Notification No. 75/2018*: The amount of late fee payable under section 47 of the said Act shall stand waived for the registered persons who failed to furnish the details of outward supplies in FORM GSTR-1 for the months/quarters from July, 2017 to September, 2018 by the due date but furnishes the said details in FORM GSTR-1 between the period from 22nd December, 2018 to 31st March, 2019.".

11. *Notification No. 76/2018*: the amount of late fee payable under section 47 of the said Act shall stand waived for the registered persons who failed to furnish the return in FORM GSTR-3B for the months of July, 2017 to September, 2018 by the due date but furnishes the said return between the period from 22nd December, 2018 to 31st March, 2019.

12. *Notification No. 77/2018:* The amount of late fee payable under section 47 of the said Act shall stand waived for the registered persons who failed to furnish the return in FORM GSTR-4 for the quarters from July, 2017 to September, 2018 by the due date but furnishes the said return between the period from 22nd December, 2018 to 31st March, 2019.".

13. *Notification No. 78/2018*: The Commissioner, hereby extends the time limit for furnishing the declaration in FORM GST ITC-04 of the said rules, in respect of goods dispatched to a job worker or received from a job worker, during the period from July, 2017 to December, 2018 till the 31st day of March, 2019.

*FinTax*
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FinTax e-services

Many of us regularly facing issues relating to tax or finance or general issues. FinTax has started with e-services from where all your tax and finance related query will be answered by our expert panels within 24 hours of your submission.

You just have to click on below link, write your issue/query and submit it with your email ID and Mobile No, rest all will be assured by FinTax.

https://api.elasticemail.com/public/survey?sid=XptyIICIeO05ND8k2A2Fdg2

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Reward to Honest Tax Payers by Government

*Waiver of Late Fees enabled on common portal* for those who could not file GSTR1 and GSTR3B for the period July - September, 2018 - now to file after 22nd Dec, 2018 by 31st March, 2019
But what about Honest Taxpayers, who have already paid late fees for filing belated GSTR 1 & GSTR 3B for the same period...They should also be allowed refund of such late fees as "REWARD TO HONEST TAX PAYERS"

*FinTax*
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GST Late Filling Fees

*#GSTUpdates #GSTPortal*

Good Morning,

Just IN: Late fees have been waived off from portal. The tab indicates the same above. Please note the late fees have been waived for below mention period only!!!

*GSTR-1 Notification No. 75/2018-Central Tax ,dt. 31-12-2018*
To fully waive the amount of late fees leviable on account of delayed furnishing of *FORM GSTR-1* for the period *July, 2017 to September, between the period from 22nd December, 2018 to 31st March, 2019*

*GSTR-3B Notification No. 76/2018-Central Tax ,dt. 31-12-2018*
The late fee payable for delayed filing of *FORM GSTR-3B* and fully waive the amount of late fees leviable on account of delayed furnishing of FORM GSTR-3B for the period *July, 2017 to September, 2018 between the period from 22nd December, 2018 to 31st March, 2019*

*GSTR-4 Notification No. 77/2018-Central Tax ,dt. 31-12-2018*
To fully waive the amount of late fees leviable on account of delayed furnishing of *FORM GSTR-4* for the period *July, 2017 to September, 2018 between the period from 22nd December, 2018 to 31st March, 2019*

* FinTax*
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FinTax wishes Happy New Year 2019

New Year,
New Hopes,
New Aspirations,
Newer Energy,

_Wish you all the great Success this year.

*Wish you all a very Happy New Year.*

FinTax
Tax and Finance Consultant

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GST Circular on RCM dated 31st December 2018

RCM on Security Services has been introduced in GST by the Government vide Notification No. 29/2018-Central Tax (Rate) dated 31.12.2018.

W.e.f. today i.e. 01.01.2019, any registered person receiving *Security services (services provided by way of supply of security personnel)* from *any person other than a body corporate* is required to pay GST on reverse charge basis.

However, Government Department/Establishment/Agency who have taken registration under GST only for TDS purpose and those paying tax under Section 10 (Composition Scheme) are not required to pay GST on RCM basis.

Therefore, if any registered person is receiving security services from any security agency (other than body corporate) he is required to pay GST on RCM basis w.e.f. 01.01.2019.

GST Circulars dated 31 December 2018

*GST Circulars-*

CBIC has recently issued circulars dated 31.12.2018.

1. Clarification on refund related issues – Reg (Circular No. 79/53/2018-GST)
http://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular-No-79.pdf;jsessionid=ED2780AE15A9C963F09056681032208A

2. Clarification on export of services under GST – Reg (Circular No. 78/52/2018-GST)
http://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular-No-78.pdf;jsessionid=469AF4A4B600BB0A41835F9A87ABEDAB

3. Denial of composition option by tax authorities and effective date thereof – Reg (Circular No. 77/51/2018-GST)
http://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular-No-77.pdf;jsessionid=BE09C7A2CBD5329F4D02B0C09885BF35

4. Clarification on certain issues (sale by government departments to unregistered person; leviability of penalty under section 73(11) of the CGST Act; rate of tax in case of debit notes / credit notes issued under section 142(2) of the CGST Act; applicability of notification No. 50/2018-Central Tax; valuation methodology in case of TCS under Income Tax Act and definition of owner of goods) related to GST-Reg. (Circular No. 76/50/2018-GST)
http://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular-No-76.pdf;jsessionid=54D404F783307558242AA7D0DFDC5000

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