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. 

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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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