Tag: GST

Facility of furnishing Letter of Undertaking extended to more exporters

Per Dept of Finance

Small exporters have brought to the notice of the Government the difficulties in furnishing bond with requisite bank guarantee. To facilitate exports under GST, it has been decided that the facility of furnishing Letter of Undertaking, in place of a bond, for exporting goods or services or both shall be allowed to exporters and no bank guarantee will be required.The relevant notification for this shall be issued in due course.

The issue of cash blockage is expected to be partially addressed by this measure.

GST Rate Recommendations from GST Council

The GST Council that had met on 9th Sept’17 has decided to change Or modify the GST rates on 40 goods that are for day to day use.
The rates of Wall nuts if reduced from 12% to 5% , Roasted Gram from 12% to 5%, Custard Powder from 28% to 18%, Batters, including idli/ dosa batter from 18% to 12%.
gst-new-rates-Sep09th-meeting

GST Cess increase for certain automobiles

Honorable Finance minister, Mr. Arun Jaitley, made a decision during the GST Council meeting held on 09th Sep @ Hyderabad, to increase the GST Cess for mid-to-large segment automobiles.

With this, the GST cess on mid-segment Cars (<1500cc)  will go up by 2%, large Cars by 5% and SUVs by 7%. The effective tax burden is expected to be less than the pre GST levels. Interestingly no changes made to GST Cess on hybrid vehicles falls in the expensive category.

gst-cess-rate-change-for-autos

 

GSTR Deadlines extended again!

Per latest reporting from GST Council’s 21st meeting held in Hyderabad, the GOI extended the deadline to file GSTR 1 for July to October 10. The earlier deadline was Sunday, September 10.

Despite of all the hard work from the GSTN and other related govt agencies, the deadline extension is a good move for the SME segment where they faced hurdles over last several wks in getting oriented towards GST and the troubles, in addition, technical glitches with the new GST Portal challenged tax professionals patience.

Let’s wish to have a better system in coming month.

Visit EZTax.in/gst for further help on GST, how EZGST.in software help traders to be quick with tax compliance, without hassels.

Tax Audit and ITR filing due date extension

Tax Audit and ITR filing due date extension AY 2017-18 to 31-10-2017. Deadline for filing return of income and all audit reports extended in view of GST.

Order under Section 119 of the Income-tax Act, 1961 (‘Act’)

The Goods and Services Tax (‘GST’) has come into effect on 01.07.2017. In recent days, dates for filing various returns and forms under GST have been extended by the Government. In this backdrop, representations have been filed by various stakeholders requesting for extending the ‘due date’ for filing various reports of audit as well as tax-returns under the Income-tax Act from 30th September, 2017 so as to allow sufficient time to the assessees’ and tax professionals, and thus, facilitate their ease of compliance with statutory responsibilities under various fiscal laws.

 

 

Reverse charge mechanism under GST for supply of goods/services

Reverse charge mechanism under GST. Supply of Goods under RCM and description of nine supply of services covered under RCM-CBEC Paper.

Generally, the supplier of goods or services is liable to pay GST. However, in specified cases like imports and other notified supplies, the liability may be cast on the recipient under the reverse charge mechanism. Reverse charge means the liability to pay tax is on the recipient of supply of goods or services instead of the supplier of such goods or services in respect of notified categories of supply.

There are two type of reverse charge scenarios provided in law. First is dependent on the nature of supply and/or nature of supplier. This scenario is covered by section 9 (3) of the CGST/ SGST (UTGST) Act and section 5 (3) of the IGST Act. Second scenario is covered by section 9 (4) of the CGST/SGST (UTGST) Act and section 5 (4) of the IGST Act where taxable supplies by any unregistered person to a registered person is covered.

Supplies of goods under reverse charge mechanism:

  • Cashew nuts, not shelled or peeled
  • Bidi wrapper leaves (tendu)
  • Tobacco leaves
  • Supply of lottery
  • Silk yarn

Supplies of services under reverse charge mechanism:

  • GTA Services
  • Legal Services by advocate
  • Services supplied by an arbitral tribunal to a business entity
  • Services provided by way of sponsorship to anybody corporate or partnership firm
  • Services supplied by the Central Government, State Government, Union territory or local authority to a business entity.
  • Services supplied by a director of a company or a body corporate to the said company or the body corporate
  • Services supplied by an insurance agent to any person carrying on insurance business
  • Services supplied by a recovery agent to a banking company or a financial institution or a non-banking financial company.
  • Supply of services by an author, music composer, photographer, artist or the like by way of transfer or permitting the use or enjoyment of a copyright covered under section 13(1)(a) of the Copyright Act, 1957 relating to original literary, dramatic, musical or artistic works to a publisher, music company, producer or the like.

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Truths about GST

 

All Invoices can be generated manually also, not required to be generated online on Internet.

Internet connection is need only once in a month for filing the Returns.

Provisional Id is the GSTN

New Business Registrations to be done within 30 days.

One Return every month with 3 parts. One is to be filled by the Dealer and the 2 other parts are auto populated.

Small Traders dealing with B2C need to file a Summary of Total Sales

GST rate is higher because previously excise duty and other taxes were not visible, now it is visible.

 

Provisional GST number is GSTIN (GST Identification number)

On the registration of businesses, all the subsumed tax assesees, have migrated to the GST Network. Registration, which closed on June 15, will reopen on June 25. The provisional ID number will be the same for GSTIN (GST identification number). New businesses too need not rush. They will have 30 days for GSTIN.