GST

Sharing of ITR data with GST Department by CBDT

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CBDT issued an order ( F. No. 225/105/2019/ITA.II dated 30th April, 2019) specifying the Income Tax authority for furnishing information in respect of assessees to the Nodal officer, GSTN.

The text of the order is given below:

Order

In exercise of powers conferred under section 138(1)(a) of the Income tax Act, 1961 (‘Act’), for purposes of sub-clause (i) of section 138(1)(a) of the Act, the Central Board of Direct taxes (‘CBDT’) hereby directs that Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems), New Delhi shall be the specified income-tax authority for furnishing information respecting assessees to the Nodal Officer, Goods and Services Tax Network (‘GSTN’).

2. The data/information to be furnished by the specified income-tax authority shall be:

(a) Request based exchange of data, wherein, important financial fields which are captured in the Income Tax Returns (ITRs) such as (i) status of filing of ITR; (ii) turnover; (iii) gross total income, (iv)turnover ratio; (v)GTI range; (vi) turnover range and (vii) any other field, the modalities of which shall be decided by the concerned specified authorities.

(b) Spontaneous exchange of data, the modalities of which shall be decided by the concerned specified authorities.

(c) Automatic exchange of data, the modalities of which shall be decided by the concerned specified authorities.

While furnishing the information, the specified income-tax authority shall form an opinion that sharing of such information is necessary for the purposes of enabling the specified authority in GSTN to perform its functions under the Goods and Services Tax.

3. To facilitate the process of furnishing information, Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) would enter into a Memorandum of Understanding (‘MoU’) with nodal officer, GSTN, which inter-alia would include modalities of exchange of data, maintenance of confidentiality, mechanism for safe preservation of data, weeding out after usage etc. The time line for furnishing information shall also be decided by Pr. Director General of Income-tax (Systems) or Director General of Income-tax (Systems) in consultation with concerned nodal officer and included in the said MoU.

4. A copy of MoU shall be forwarded to this division for record purposes.

5. This issues with the approval of Chairman, CBDT.

A similar order is expected from CBIC also in the near future,

Sharing of ITR data with GST Department by CBDT

GST: No E-way Bill if buyer/seller don’t file returns for two consecutive tax period/months

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Restrictions in generating E-way bill in case of non-filing of GST Returns

CBIC had notified that Government of India appoints the 21st day of June, 2019, as the date from which the provisions of the Rule 138E of Central Goods and Service Tax, Rule (Inserted by Central Goods and Services Tax (Fourteenth) Amendment Rules, 2018 rule 12 of [notification No. 74/2018–Central Tax, dated the 31st December, 2018]), which restricts generation of Part A of E-way bill in case on non-filing of returns for two consecutive months by a normal registered person and in case of composition dealers under section 10 of CGST Act, non-filing of returns for two tax periods.

The extract of the rule 138E is given below:

“138E. Restriction on furnishing of information in PART A of FORM GST EWB-01.- Notwithstanding anything contained in sub-rule (1) of rule 138, no person (including a consignor, consignee, transporter, an e-commerce operator or a courier agency) shall be allowed to furnish the information in PART A of FORM GST EWB-01 in respect of a registered person, whether as a supplier or a recipient, who,—

(a) being a person paying tax under section 10, has not furnished the returns for two consecutive tax periods; or

(b) being a person other than a person specified in clause (a), has not furnished the returns for a consecutive period of two months

Provided that the Commissioner may, on sufficient cause being shown and for reasons to be recorded in writing, by order, allow furnishing of the said information in PART A of FORM GST EWB 01, subject to such conditions and restrictions as may be specified by him;

Provided further that no order rejecting the request of such person to furnish the information in PART A of FORM GST EWB 01 under the first proviso shall be passed without affording the said person a reasonable opportunity of being heard;

Provided also that the permission granted or rejected by the Commissioner of State tax or Commissioner of Union territory tax shall be deemed to be granted or, as the case may be, rejected by the Commissioner.

Explanation:– For the purposes of this rule, the expression ―Commissioner‖ shall mean the jurisdictional Commissioner in respect of the persons specified in clauses (a) and (b).”

As per the rule, a registered person can’t fill PART- A of FORM GST EWB-01 in case of another registered person, who had defaulted in filing retun for two months or two tax periods. For Example, M/s.ABC is selling goods to M/s.XYZ, for a value exceeding the limits prescribed for E-way bill, M/s.ABC is not allowed to submit/furnish information in relation such supply, when M/s.XYZ had defaulted in filing return. In this case M/s.XYZ, is also not permitted to furnish PART- A of FORM GST EWB-01. So non-filing of returns for two months of two tax periods will result in not getting goods and there by affect your business operations.

So registered persons especially those dealing in goods or require goods in providing the services, should ensure that all the backlogs in filing GST returns were cleared on or before 21st June, 2019 and ensure that the monthly returns are filed in time. This is an additional restriction, that is going to be imposed in addition of late fee for filing return and Interest on delayed payment of tax.

GST: No E-way Bill if buyer/seller don’t file returns for two consecutive tax period/months

GST Council 34th meeting Decisions of Real Estate – Press Release

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GST COUNCIL 34th Meet – GST Rate on Real Estate Sector

Decisions taken by the GST Council in the 34thmeeting held on 19thMarch, 2019 regarding GST rate on real estate sector

Posted On: 19 MAR 2019 5:41PM by PIB Delhi

GST Council in the 34th meeting held on 19th March, 2019 at New Delhi discussed the operational details for implementation of the recommendations made by the council in its 33rd meeting for lower effective GST rate of 1% in case of affordable houses and 5% on construction of houses other than affordable house. The council decided the modalities of the transition as follows.

 Option in respect of ongoing projects:

2.         The promoters shall be given a one -time option to continue to pay tax at the old rates (effective rate of 8% or 12% with ITC) on ongoing projects (buildings where construction and actual booking have both started before 01.04.2019) which have not been completed by 31.03.2019.

3.         The option shall be exercised once within a prescribed time frame and where the option is not exercised within the prescribed time limit, new rates shall apply.

New tax rates:

4.         The new tax rates which shall be applicable to new projects or ongoing projects which have exercised the above option to pay tax in the new regime are as follows.

(i) New rate of 1% without input tax credit (ITC) on construction of affordable houses shall be available for,

(a) all houses which meet the definition of affordable houses as decided by GSTC (area 60 sqm in non- metros / 90 sqm in metros and value upto RS. 45 lakhs), and

(b)  affordable houses being constructed in ongoing projects under the existing central and state housing schemes presently eligible for concessional rate of 8% GST (after 1/3rd land abatement).

(ii)        New rate of 5% without input tax creditshall be applicable on construction of,-

  1. all houses other than affordable houses in ongoing projects whether booked prior to or after 01.04.2019. In case of houses booked prior to 01.04.2019, new rate shall be available on instalments payable on or after 01.04.2019.
  2. all houses other than affordable houses in new projects.
  3. commercial apartments such as shops, offices etc. in a residential real estate project (RREP) in which the carpet area of commercial apartments is  not more than 15% of total carpet area of all apartments.

Conditions for the new tax rates:

5.         The new tax rates of 1% (on construction of affordable) and 5% (on other than affordable houses) shall be available subject to following conditions,-

  1. Input tax credit shall not be available,
  2. 80% of inputs and input services (other than capital goods, TDR/ JDA, FSI, long term lease (premiums)) shall be purchased from registered persons. On shortfall of purchases from 80%, tax shall be paid by the builder @ 18% on RCM basis. However, Tax on cement purchased from unregistered person shall be paid @ 28% under RCM, and on capital goods under RCM at applicable rates.

Transition for ongoing projects opting for the new tax rate:

6.1       Ongoing projects (buildings where construction and booking both had started before 01.04.2019) and have not been completed by 31.03.2019 opting for new tax rates shall transition the ITC as per the prescribed method.

6.2       The transition formula approved by the GST Council, for residential projects (refer to para 4(ii)) extrapolates ITC taken for percentage completion of construction as on 01.04.2019 to arrive at ITC for the entire project. Then based on percentage booking of flats and percentage invoicing, ITC eligibility is determined. Thus, transition would thus be on pro-rata basis based on a simple formula such that credit in proportion to booking of the flat and invoicing done for the booked flat is available subject to a few safeguards.

6.3       For a mixed project transition shall also allow ITC on pro-rata basis in proportion to carpet area of the commercial portion in the ongoing projects (on which tax will be payable @ 12% with ITC even after 1.4.2019) to the total carpet area of the project.

Treatment of TDR/ FSI and Long term lease for projects commencing after 01.04.2019

7.         The following treatment shall apply to TDR/ FSI and Long term lease for projects commencing after 01.04.2019.

7.1       Supply of TDR, FSI, long term lease (premium) of land by a landowner to a developer shall be exempted subject to the condition that the constructed flats are sold before issuance of completion certificate and tax is paid on them. Exemption of TDR, FSI, long term lease (premium) shall be withdrawn in case of flats sold after issue of completion certificate, but such withdrawal shall be limited to 1% of value in case of affordable houses and 5% of value in case of other than affordable houses. This will achieve a fair degree of taxation parity between under construction and ready to move property.

7.2       The liability to pay tax on TDR, FSI, long term lease (premium) shall be shifted from land owner to builder underthe reverse charge mechanism (RCM).

7.3       The date on which builder shall be liable to pay tax on TDR, FSI, long term lease (premium) of land under RCM in respect of flats sold after completion certificate is being shifted to date of issue of completion certificate.

7.4       The liability of builder to pay tax on construction of houses given to land owner in a JDA is also being shifted to the date of completion. Decisions from para 7.1 to 7.4 are expected to address the problem of cash flow in the sector.

Amendment to ITC rules:

8.         ITC rules shall be amended to bring greater clarity on monthly and final determination of ITC and reversal thereof in real estate projects. The change would clearly provide procedure for availing input tax credit in relation to commercial units as such units would continue to be eligible for input tax credit in a mixed project.

9.         The decisions of the GST Council have been presented in this note in simple language for easy understanding.  The same would be given effect to through Gazette notifications/ circulars which alone shall have force of law.

GST Council 34th meeting Decisions of Real Estate – Press Release

GST: Return of time expired goods

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GST : Return of Time Expired Goods

CBIC had issued a Circular No.72/46/2018-GST dated 26th October, 2018, stating the procedures to be followed when time expired drugs and medicines are returned back to manufacturer through supply chain. In the circular, two options/procedures are given. The same are:

  1. Return of the Time Expired Goods to be treated as fresh supply
  2. Return of time expired goods using credit note

The two options are discussed below:

  1. Return of the Time Expired Goods to be treated as fresh supply

In case the goods returned is destroyed by the manufacturer, the manufacturer is required to reverse the Input tax Credit (ITC ) availed on the return supply. ITC that need to be reversed in such scenario is the ITC availed on return supply and not ITC that is attributable to manufacture of such expired goods.

Illustration: Supposedly, manufacturer has availed ITC of Rs. 10/- at the time of manufacture of medicines valued at Rs. 100/-. At the time of return of such medicine on the account of expiry, the ITC available to the manufacturer on the basis of fresh invoice issued by wholesaler is Rs. 15/-. So, when the time expired goods are destroyed by the manufacturer he would be required to reverse ITC of Rs. 15/- and not of Rs. 10/-.

  1. Return of time expired goods by issuing credit note

As per sub-section (1) of Section 34 of the CGST Act the supplier can issue a credit note where the goods are returned back by the recipient. Thus, the manufacturer or the wholesaler who has supplied the goods to the wholesaler or retailer, as the case may be, has the option to issue a credit note in relation to the time expired goods returned by the wholesaler or retailer, as the case may be. As per law, there is no time limit for issuing of Credit Note. But, when it comes to adjustment of tax liability, the following scenarios may arise:

It is also clarified that, the circular will be applicable to other scenarios, where the goods are returned on account of reasons other than return of expired goods.

Disclaimer: Users are requested to verify the validity of content before taking informed decisions.

GST: Return of time expired goods

GST: Effective date of E-Way bill & GSTR-3B due dates.

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moving-truck-5819445

CBEC vide notification no.15/2018 (Central Tax) dated 23rd March, 2018, notified 01st April, 2018 as the date from which the E-way bill will come into force. The text of notification is given below:

Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
Notification No. 15/2018 – Central Tax

New Delhi, the 23rd March 2018

G.S.R. …..(E).— In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government hereby appoints the 1st day of April, 2018, as the date from which the provisions of sub-rules (ii) [other than clause (7)], (iii), (iv), (v), (vi) and (vii) of rule 2 of notification No. 12/2018 – Central Tax, dated the 7th March, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 204 (E), dated the 7th March, 2018, shall come into force.

[F. No.349/58/2017-GST(Pt)]

GSTR-3B Due  Dates for the period April, 2018 to June 2018

Adobe Spark

CBEC vide notification no.16/2018 (Central Tax) dated 23rd March, 2018, notified the due date for filing GSTR-3B returns and payment of Tax. The due date for payment and filing of GSTR-3B will be 20th the of the succeeding month; i.e, for the month April, 2018, 20th May, 2018 will be the due date for filing GSTR-3B and payment of tax. The text of the notification is given below:

Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Excise and Customs
Notification No. 16 /2018 – Central Tax

New Delhi, the 23rd March, 2018

G.S.R……(E). – In exercise of the powers conferred by section 168 of the Central Goods and
Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the Act) read with sub-rule (5) of rule 61 of the Central Goods and Services Tax Rules, 2017, the Commissioner, on the recommendations of the Council, hereby specifies that the return in FORM GSTR-3B for the month as specified in column (2) of the Table below shall be furnished electronically through the common portal, on or before the last date as specified in the corresponding entry in column (3) of the said Table, namely:-

Table

Sl. No Month Last date for filing of return in FORM GSTR-3B
(1) (2) (3)
1. April, 2018 20th May, 2018
2. May, 2018 20th June, 2018
3. June, 2018 20th July, 2018

2. Payment of taxes for discharge of tax liability as per FORM GSTR-3B: Every registered person furnishing the return in FORM GSTR-3B shall, subject to the provisions of section 49 of the Act, discharge his liability towards tax, interest, penalty, fees or any other amount payable under the Act by debiting the electronic cash ledger or electronic credit ledger, as the case may be, not later than the last date, as mentioned in column (3) of the said Table, on which he is required to furnish the said return.

[F. No. 349/58/2017-GST (Pt.)]

(Dr. Sreeparvathy S.L.)
Under Secretary to the Government of India

GST: Effective date of E-Way bill & GSTR-3B due dates.

GST: GSTR – 3B and GSTR -1 to continue till June 2018…

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India-how-beneficial-is-it-with-goods-and-service-taxGST

The major recommendation made by GST Council in it’s 26th meeting are as follows:

  1. GSTR-3B and GSTR-1 extended to three months i.e., April, 2018 to June, 2018;
  2. Reverse Charge on inward supplies from unregistered persons covered U/s 9(4) of CGST Act, had been deferred till 30th June, 2018;
  3. Recommended to introduce E-way bill from 01-04-2018 for interstate movement of goods. For intrastate, the same will be decided later, but not later than 01-06-2018. Kerala Finance Minister announced that the same will be applicable in Kerala from 01-04-2018. Council had recommended few improvements in the E-way bill; and
  4. TDS/TCS provisions will remain suspended till 30-06-2018.
GST: GSTR – 3B and GSTR -1 to continue till June 2018…

GST applicable on Hostel mess of Educational Institutions…

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CBEC/Ministry of Finance had issued Circular clarifying that the Hostel mess run by educational institutions, by themselves or outsourced to a third person,  GST will be applicable on Food and Drinks provided by such mess or canteen and the same is taxable at 5% without input credit.

The same is clarified vide Circular No. 28/02/2018-GST dated 08th January, 2018. To see the circular please click the link below:

circularno-28-gst

 

GST applicable on Hostel mess of Educational Institutions…

GST: GSTR 2 & GSTR 3 DATE EXTENDED

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Government today extends the due date of GSTR 2 and GSTR 3 for the month of July, 2017 to 30th November, 2017 and 11th December, 2017 respectively. 

To see the press release please click the link below:

GST: GSTR 2 & GSTR 3 DATE EXTENDED

GST: Date extended for filing GST TRAN 1

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Due date for filing GST TRAN 1 (with revision facility) extended to November 30, 2017. The same was tweeted by the official account of GST,Government of India

To see the tweet please see below:

GST: Date extended for filing GST TRAN 1

GST: Return for composition scheme extended

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CBEC vide circular no. 41(CGST) dated 13-10-2017 extended due date of  return GSTR 4 for assesses opted for composition scheme for the quarter July to September 2017 to 15th November, 2017.
The due date for filing returns in GSTR 6 by input service distributor for the period July 2017, August 2017 and September 2017 extended  to 15th November, 2017 vide notification 43/2017 (Central tax).

Also the due date for filing returnsFORM GSTR-5A for the month of July, 2017, August, 2017 and September, 2017 by a person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient referred to in section 14 of the Integrated Goods and Services Tax Act, 2017 and rule 64 of the Central Goods and Services Tax Rules, 2017, till the 20th day of November, 2017 by notification 42/2017 (Central Tax)

To see the notifications please click the link below:

Notification 41 (Central Tax)

Notification 42 (Central Tax)

Notification 43 ( Central Tax)

GST: Return for composition scheme extended