Sunday, 25 March 2018

31st March 2018 Income tax Return

You can file only two years income tax return for the A.Y.2016-2017 ,2017-18..

Please file online income tax return

Friday, 20 October 2017

GSTR-3B returns sep date is not extended.

33 lakh GSTR-3B returns filed till noon: GSTN chairman 

NEW DELHI: As many as 33 lakh GST returns for September have been filed till noon and 75,000 sales data is being uploaded on the GSTN portal on hourly basis, its Chairman Ajay Bhushan Pandey said today. 

The deadline for filing the initial returns in GSTR-3B for September under the Goods and Services Tax regime ends midnight tonight. 

In an interview to PTI, Pandey said that the GSTN system is stable and has been handling data at just 30 per cent of its capacity with 20 l .. 

GSTR-3B returns sep date is not extended.

Read more at:

Gst Questions & Answers


Four months since the launch of the (GST) a number of concerns and questions remain:

States’ rights

The Bill has not infringed on the rights of the state legislatures. In fact, the amendments to the Constitution have been made by consensus and all states have agreed to the scheme. It is also gratifying that all decisions of the Council have been unanimous so far. The state legislatures have obviously agreed to the scheme because the levy of value-added tax (VAT) on alcohol and petroleum products has been left out of it, whereby a substantial part of the revenue accruing to the states continues to be protected as state subjects. At the same time, accommodating the demands of the states has weakened the regime by making it complicated. It has also resulted in very high rates of taxation including rates of 28 per cent and above.

Exemption limit

The announced exemption for firms with a turnover below Rs 20 lakh is very low and will not ensure protection of the informal sector. Further, the reverse charge mechanism (RCM) is a serious blow to the informal sector and it has reportedly resulted in very small units being affected since larger units are reluctant to buy from them because of the RCM. Fortunately, this mechanism has been postponed till March 2018.

and GDP growth

The scheme was expected to increase GDP growth. But the complicated structure and the initial infrastructural problems have resulted in several units of all sizes facing difficulties in compliance. There are also reports that the manufacturing sector has experienced a slowdown and exports have been affected because of issues. The need for payment of the at the outset and for claiming refund at a later point of time has also impacted cash flow. For the present, the scheme will not give any boost to GDP growth.

Gold bullion, real estate, and alcohol

Traditionally, the bullion and jewellery sector has been subjected to very low rates of tax because of difficulties in compliance and the largely unorganised nature of business in this area. The tax rate of 3 per cent is a continuation of a similar rate that prevailed at an earlier point of time.

As far as the real estate sector is concerned, there is no justification for keeping it outside the ambit of the  Indeed, housing is an extremely important segment of the and including housing in the would have benefited housing projects for weaker sections. By excluding housing from the GST, the cost of individual apartments is bound to go up and this will particularly hit the lower middle class. When all inputs like cement and steel are subject to the and when renting of immovable property is also subject to the GST, there is no justification in disallowing on the ground that the houses which are constructed are immovable property.

At the same time, alcohol was kept out of the because of political compulsions and because it is a substantial source of revenue for most states. They would not have parted with the right to levy taxes on potable alcohol and without this concession the would not have been possible.

Gainers and losers

At present, it is still uncertain as to who will gain or lose in the long run from this major tax reform. It is likely that large sectors may benefit because of input credit on both goods and services and elimination of interstate trade barriers. This is a theoretical advantage but may get partly affected because of complex legal structures. For example, the e-way bill may create problems in transportation which will offset any benefit that has arisen because of abolishing octroi/entry tax or check posts. At present, the informal sector units are affected by the scheme as they do not have the capability of electronically complying with complex procedural requirements. Further, serial classification disputes are also likely to arise because of multiple tax rates.

Simplifying the tax system

The tax system will have to be simplified; the present complex system cannot continue. There is already an indication that multiple tax rates will have to be reduced and the maximum rate has to be brought down. Unless there is procedural simplification, the compliance costs will become quite heavy. There is a need to eliminate several provisions which do not serve any purpose. For example, the need to file three monthly returns is a provision which does not exist anywhere in the world and there is no reason why Indian businesses should be burdened with this onerous requirement.

Are we ready for GST?

India was not ready for on 1 July 2017. It would have been better if the GST had been introduced on a trial basis or like a pilot project and then suitably amended to ensure a relatively painless transition to the new regime. Unfortunately, the entire nation was required to shift to a completely new regime which was procedurally complex. There was inadequate electronic infrastructure both with the assessees as well as the government. Further, frequent changes in the rules and rates of duty added to the difficulty in having a workable software system. It is hoped that these technical problems are sorted out in the next few months.

Saturday, 14 October 2017

GST News, Notifications, and Announcements

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Latest Update:

As per 22nd GST Council meeting of 6th October 2017

Lesser burden of compliance for small businesses
  • The government has recognised hardship faced by small businesses with turnover of within Rs 1.5cr, by delaying their return filing compliance to once a quarter from once a month. Taxes will be paid quarterly.
  • Small businesses will also have to file monthly returns for three months – July, August, and September – and the switchover to quarterly filing will happen from the cycle starting October 1.

Relief for Service Providers
  • Exemption from Registration for a service provider if the aggregate turnover is less than Rs. 20Lacs (10 Lacs in special category state except for J&K) even if they are making inter-state supplies of services.
  • Services provided by a GTA to an Unregistered person shall be exempted from GST.
  • TDS/TCS provisions shall be postponed till 31.03.2018.
  • Small businesses will also have to file monthly returns for three months – July, August, and September – and the switchover to quarterly filing will happen from the cycle starting October 1.

Relief for Exporters
  • Refund cheques for July exports will be processed by Oct 10 and refund cheques for August exports will be processed by Oct 18.
  • Every exporter will now get an e-wallet. In the e-wallet, there would be a notional amount for credit. The refund they will eventually get will be offset from that amount. The e-wallet will be introduced from April next year.
  • Merchant exporters will pay a nominal 0.1% GST applicable on exports to enable their suppliers to claim ITC.

Composition Scheme changes
  • Person otherwise eligible for availing the composition scheme and are providing any exempt services shall now be eligible for the composition scheme.
  • Eligibility of composition scheme raised to Rs 1 crore.
  • Traders will pay 1%, manufacturers 2% and restaurants 5% under the composition scheme.
  • Due date of FORM GSTR-4 for the quarter July-September, 2017 is extended to 15th November 2017

 RCM postponed
RCM applicable for the purchases from the unregistered dealer shall be suspended till 31.03.2018.

No GST on advance receipts for businesses with turnover under Rs 1.5cr
Taxpayers having annual turnover upto 1.5 Crore shall not be required to pay GST at the time of receipt of advances on account of supply of goods.

Significant rate changes
  • GST on unbranded Ayurvedic medicines has been reduced from 12% to 5%.
  • Tax rate for man-made yarn has been reduced to 12% from 18%. The decision will have an effect on textiles.
  • GST rate on many job work items reduced from 12% to 5%. GST rate on some stationery items, diesel engine parts also reduced to 18% from the earlier 28%.
  • GST on khakra and unbranded namkeen has been reduced from 12% to 5%. Tax on zari work has been reduced from  12% to 5%.
  • 35% abatement on old leasing contract of vehicle
  • Printing Job work rate revised from 12% to 5%

  • E-way bill has been deferred to 1st April 2018
  • Relief for jewellers as no need to furnish PAN card on jewellery purchase of more than Rs 50,000. The amount of jewellery purchase for which KYC will be required will be determined later.
  • 35% abatement on old leasing contract of vehicle
  • Due date of GSTR-6 (filed by an input service distributor) for the months of July, August and September 2017 has been extended to 15.11.2017

Under consideration 
  • Finance Minister Arun Jaitley announced that a group of ministers will relook tax on AC restaurants. GST for AC restaurants may become cheaper from 18% to 12%. A group of ministers has been formed to devise the mechanism. The GoM will submit its report in 14 days.
  • GoM will also make the composition scheme more attractive
Next meeting of the council will take place in Guwahati on 9-10 November.

Central Tax Notifications

Composition Scheme- Notification 3 & 8/2017
Composition scheme threshold has been notified to be 75 lakhs . This will be beneficial to small businesses.
Notification 3 contains the composition scheme rules which had been issued ealrier on 17th May.

Reverse Charge- Notification 5/2017
The persons who only supply goods/services on which reverse charge applies are exempted from registering under GST registration.
For example, For example, Ola Cabs enlist drivers to ply their cars. Drivers are providing chauffeur/driving services to Ola and Ola is the service receiver.
Ola pays GST on the drivers’ services on reverse charge basis. Drivers are not required to register under GST thus removing the burden of tax compliance for individuals with limited resources (drivers) to large companies (Ola) with enough resources.
Sections coming into force-Notification 1 & 9/2017
With the Notification of 19th June and 28th June, most of the CGST Act is now in force. Only sections 51 & 52 (TDS & TCS respectively) are not applicable as the government has relaxed TDS & TCS provisions for the time being to give more time to the e-commerce sellers.
Sections 42(9) & 43(9) are not applicable.
These clauses say that if the output tax liability is reduced (or input tax credit is increased) due to a debit note (or a credit note) [mismatch of invoices reconciliation] then such amount shall be refunded by crediting electronic ledger. This is not applicable right now as there will not be any reconciliation for 2 months.
Rules-Notification 10/2017
CBEC has issued the rules on valutation, transisition, refunds etc. in a 247 page document.

HSN Codes-Notification 12/2017
Every registered person with turnover more than 1.5 crores must mention the HSN Codes in each and every invoice.
However, the numbers of digits to be mentioned in the Invoice depends on the annual turnover in the preceding financial year.
Turnover in previous FYNo. of digits
Upto Rs. 1.50 CrNIL
More than Rs. 1.50 Cr. & upto Rs. 5 Cr2 digits
More than Rs. 5 Cr4 digits
This is effective from 1st July, i.e., all invoices from 1st July must be GST compliant and have details of HSN codes.
The same notifications have also been made under IGST (notification 5).
Rates of interest-Notification 13/2017
The rates of interest are same as mentioned in the Act. The notification ratifies the rates.
This notification shall come into force from the 1st day of July, 2017
SectionsInterest p.a.
Sec 50(1)- Failure to pay tax18%
Sec 50(3)- Less tax paid/ excess ITC availed24%
Sec 54(12)- Interest on refunds withheld in an appeal later given6%
Sec 56- Interest on delayed refunds6%
Proviso to 56- Interest on refunds ordered in an appeal9%
The same notification has also been made under IGST (notification 6).
Common Portal- Notification 4 /2017
It is notified that the GST website of the Common Portal is managed by  Goods and Services Tax Network.
Modes of verification-Notification 6 & 11/2017
The modes of verification are-
  • Aadhaar based Electronic Verification Code (EVC)
  • Electronic verification code generated through net banking login on the common portal
  • Electronic verification code generated on the common portal
[Points ii & iii replacing the earlier Bank account based OTP as per earlier notification]

Central Tax Rate Notification (28.06.2017)

  1. Most of the goods are kept at the same rates as announced by the GST council earlier but rough or non industrial unworked diamond or precious stones will be charged CGST at the rate of 0.125%.
  2. List of goods exempt from CGST. No change in the list.
  3. Oil, gas, coal and petroleum licenses and sub-contract licenses and leases will be charged GST at the rate of 2.5%.
  4. The person liable to deduct TDS as per the GST law supplying intrastate goods or services to an unregistered person would be exempt from CGST.
  5. Cashew nuts, not shelled or peeled, Bidi wrapper leaves (tendu), Tobacco leaves, silk yarn, Supply of lottery would have reverse charge applicable under GST.
  6. Refund of the unutilized ITC would not be provided in the case of the tax on output being lower than the tax on inputs for certain goods mainly related to the textile and railways.
  7. The supply of goods by CSD to unit run canteens and authorized customers and supply of goods by the unit run canteens to the authorized customers.
  8. 50% of the tax paid on inward supplies of goods by the CSD for further supply to unit run canteens or authorized customers can be claimed as refund under GST.
  9. Person liable to deduct TDS as per the GST law supplying intra goods or services to an unregistered person would be exempt from CGST.
  10. Intrastate supply of second hand goods by a registered person who deals in selling second hand goods to an unregistered person would be exempt from CGST.

Integrated Tax

Sections in force-Notification No. 3/2017
The Central Government has notified that provisions of sections 4 to 13, 16 to 19, 21, 23 to 25 of The Integrated Goods and Service Tax Act, 2017 shall come into force from 1st July 2017.
Provisions of CGST will also apply for IGST- Notification No. 4/2017
The Integrated Goods and Services Tax Rules, 2017 have been notified and are deemed to have come into force retrospectively from 22nd June  2017.
The Central Goods and Services Tax Rules, 2017, for carrying out the provisions specified in section 20 of the Integrated Goods and Services Tax Act, 2017 shall, so far as may be, apply in relation to integrated tax as they apply in relation to central tax. Section 20 mentions the CGST provisions that will apply mutatis mutandis for IGST.

GST News -Integrated Tax (Rates) Notifications

Cases where the e-commerce operator will pay IGST- Notification No. 14/2017
E-commerce operator will pay the IGST in the following services-
  • Transportation of passengers by a radio-taxi, motorcab, maxicab and motor cycle (Eg. Ola outstation from Bangalore to Chennai)
  • Providing accommodation in hotels, inns and other commercial places meant for residential or lodging purposes. For example, a small hotel registered on Oyo rooms. Oyo rooms will pay IGST However, if the person (hotel) supplying such service through e-commerce is liable for registration under GST then that person will pay. Eg, Ibis Hotel is a large multi-chain hotel also registered on Oyo rooms. Then Ibis Hotel will pay.

It will come into force with effect from the 1st July 2017.
Goods on which reverse charge applies-Notification No.4/2017
A list of goods on which reverse charge applies is issued by CBEC. When the supply is made by the specified person, then IGST will be payable on reverse charge basis by the recipient of the intra-state supply of such goods. All the provisions of will apply to such recipient.
No ITC for Construction- Notification No. 12/2017
No refund of unutilized ITC will be allowed input tax credit shall be allowed for IGST in construction of a complex, building etc. (works contract). Except in cases where the entire consideration has been received after issuance of completion certificate or after its first occupation, whichever is earlier.

This is in keeping with the provision of not allowing ITC.
This will come into force with effect from the 1st day of July 2017.
Reverse Charge- Notification No. 10/2017
List of services on which reverse charge is applicable is issued. It is the same as issued under CGST Act.
Army Canteens- Notification No. 6 & 7/2017
In the public interest exempts, the following are exempted from IGST (& also CGST)-
  • The supply of goods by the Canteen Stores Department (CSD) to the Unit Run Canteens or
  • The supply of goods by the CSD/Unit Run Canteens to the authorized customers
The CSD can claim a refund of 50% on IGST of all input goods received by it for subsequent supply of such goods to the Unit Run Canteens or to the authorized customers of the CSD.
This notification shall come into force with effect from the 1st July 2017.
Inverted Rate Structure- Tax On Inputs>Tax On Outputs- Notification No.5/2017
Refund of unutilised ITC will NOT be allowed, when the ITC is accumulated due to rate of tax on inputs being higher than the rate of tax on the output goods (except nil rated or fully exempted goods).
High tax on the imported raw materials compels manufacturers to raise the price. On the other hand, foreign finished goods have lower tax rate. In conclusion, manufactured goods by the domestic industry become uncompetitive against imported finished goods.
List of goods on which this notification applies.
For UIN & Diplomats Notification No. 13/2017
This notification specifies the conditions applicable –
  • UN or specified international organisations and
  • Foreign diplomats in India
Panchayat services- Notification No. 11/2017
Constitutional services of the Panchayat are not covered under GST.

News on GST Act

The entire framework of GST is based on GST Act. It was devised by the GST Council, which is a committee consisting of the Union Finance Minister (Chairperson), the Union Minister of State, the minister in-charge of finance or taxation or any other minister nominated by each State Government.

GST News – Rule Changes

The GST is a constitutional amendment, and any change in the law will also affect the rules therein. Rules for invoicing, rules for penalty, rules defining the point of taxation – these are just some of the examples of any rule change in the model law.

GST Council meet: Large Transitional ITC claims shocks govt

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Against a robust collection of Rs 95000Cr (approx.) in the first month of GST implementation, Transitional input credit of Rs 60,000Cr has been claimed by entities. Significant refunds claimed by entities for the pre-GST (goods and services tax) stock has left the government startled.
For the close to Rs 95,000 crore of revenue collected for July so far, around Rs 60,000 crore has been claimed as input tax credit for taxes paid for the period before July 1, according to state official sources.
The input tax credit for the transitional period has been claimed through the TRAN 1 form. Companies had a 90-day period from July 1 to claim credit for the excise duty already paid on inputs.
The GST Council had allowed companies to claim 100 per cent input tax credit by uploading excise payment invoices for the period before July 1. In case of unavailability of invoices, the Council had allowed 40 per cent input tax credit.
In fact, the limit on input tax credit was raised to 60 per cent from 40 per cent of the GST liability on items with tax rates above 18 per cent at the June 4 meeting.
Besides, the entire 100 per cent input tax credit can be claimed on high-value items, priced above Rs 25,000, with a chassis number.

Saturday, 7 October 2017

GST Council Meeting

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22nd GST Council Meeting – Summary of Decisions

The 22nd GST Council Meeting was held at New Delhi on the 6th of October 2017. In the meeting, various decisions and changes pertaining to GST return filing, composition scheme, GST rates have been announced. The various measures announced in the 22nd GST Council will tremendously improve ease of compliance for SMEs. In this article, we summarise the key decisions made in the 22nd GST Council Meeting.

GST Return Filing

All regular taxpayers registered under GST were currently required to file 4 GST returns every month namely GSTR 3B, GSTR 1, GSTR 2 and GSTR 3. Filing 4 GST returns a month and maintaining GST compliance was a major burden for small businesses that have limited resources. Hence, to reduce the compliance burden for small businesses and improve ease of doing business, a decision was taken to reduce the number of GST returns for small businesses.

GST Return Filing for SMEs

Small and medium enterprises (SMEs) with an annual aggregate turnover of less than Rs.1.5 crores will no longer be required to file GSTR 1, GSTR 2 and GSTR 3 return every month. Instead, SMEs will be allowed to file quarterly GST returns and make quarterly GST payments, whether or not enrolled under the GST composition scheme.
SMEs will be allowed to file quarterly GST returns starting from the October – December 2017 quarter. For now, all regular taxpayers will be required to file monthly GSTR 1, GSTR 2, GSTR 3 and GSTR 3B return for the months of July, August and September 2017. The due date for July 2017 GSTR 1 return, GSTR 2 return and GSTR 3 return has been announced. The due dates for August and September GSTR 1, GSTR 2 and GSTR 3 returns will be announced shortly.

GST Return Filing for Businesses with Over Rs.1.5 Crore Turnover

All persons having GST registration with a turnover of more than Rs.1.5 crore per year will be required to file monthly GST returns in form GSTR 1, GSTR 2 and GSTR 3. GSTR 3B will have to be filed by all taxpayers for the months of July to December 2017, irrespective of annual aggregate turnover.

GST Registration

GST registration was earlier mandatorily required for any person who undertook inter-state (selling goods or services from one state to another state) irrespective of aggregate annual turnover. In the 22nd GST Council, it has been decided to exempt service providers from this criteria. Hence, service providers will now be allowed to undertake inter-state sales of upto Rs.20 lakhs without obtaining GST registration.
It is important to note that only service providers have been provided this exception. Any person supply goods will still be required to obtain GST registration mandatorily, if they undertake inter-state sales.

Reverse Charge Mechanism Suspended

The 22nd GST Council has decided to suspend the GST reverse charge mechanism. Under reverse charge, the recipient of a service is required to pay GST on behalf of the supplier.  Sub-section (4) of section 9 of the CGST Act, 2017 pertains to GST reverse charge and is reproduced below for reference:
“The central tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.”
Since, registered taxpayers were required to pay GST on reverse charge basis when they purchased from an unregistered person (Most times a micro or small business), many registered business stopped transacting with micro and small businesses. Hence, the GST Council has decided to suspend the reverse charge mechanism. Now, registered taxpayers can purchase from unregistered persons without having to pay GST on reverse charge basis. This measure will provide a major boost to micro, small and medium businesses.

GST on Advances Received NOT Required for SMEs

As per GST rules, whenever a taxable person receives advance, an advance receipt voucher must be issued and the GST on the advance received must be remitted to the Government. In case supply was later not provided and refund of advance was provided to the customer, then the supplier would have to claim refund. This caused tremendous difficulty for small and medium businesses.
As per the decision of 22nd GST Council, it has now been decided that taxpayers having annual aggregate turnover up to Rs. 1.5 crores will not be required to pay GST at the time of receipt of advances on account of supply of goods. The GST on such advance received will be payable only when the supply of goods is made.

Transportation of Goods by GTA

Goods Transport Agency were not extending services to unregistered persons and were in many cases requesting GSTIN for transporting goods. The GST Council in the 22nd meeting has clarified that GTAs will not need any GSTIN for providing transportation services, thereby removing the hardship faced by SMEs.

GST Composition Scheme

The GST Composition Scheme can be availed by SME taxpayers to reduce compliance and tax burden. The 22nd GST Council has decided to form a Group of Ministers (GoM) to examine measures to make the composition scheme more attractive for SMEs.
Further, entities with an aggregate turnover of upto Rs.75 lakhs were only eligible for enrolling under the GST Composition Scheme. The 22nd GST Council has decided to increase the aggregate turnover to Rs.1 crore.The aggregate turnover threshold for special category States, except Jammu & Kashmir and Uttarakhand, has also been increased to Rs. 75 lacs from Rs. 50 lacs. The turnover threshold for Jammu & Kashmir and Uttarakhand has been fixed at Rs. 1 crore.  With the increase in aggregate turnover threshold, more SMEs will now be eligible for enrolment under the GST Composition Scheme.

Due Date for Enrolling under GST Composition Scheme Extended

The due date for enrolling under the increased threshold has been made available to both migrated and new taxpayers up to 31.03.2018. Also, once a business has enrolled under the Composition Scheme, the scheme will become operational from the 1st date of the succeeding date.

Due Date of first GSTR 4 Return for Composition Scheme Dealers Extended

The due date for filing GSTR 4 return for July to September 2017 by taxpayers registered under  composition scheme has been extended to 15.11.2017. Also entities opting for composition scheme will have to now file GSTR 4 return only for that portion of the quarter from when the scheme becomes operational and can file returns as a normal taxpayer for the preceding tax period.

Implementation of TDS and TCS Provisions Postponed

TDS and TCS provisions of the GST is applicable to certain Government Department and E-Commerce Operators. To help the taxpayer ecosystem gradually absorb the changes in the indirect tax regime, the Government has decided to postpone the TDS/TCS registration and operationalisation to 31st March 2018.

E-Way Bill Implementation Postponed

As per E-Way bill rules, any transportation of goods with a value of more than Rs.50,000 would require an e-way bill. The e-way bill rules were earlier supposed to be implemented before December 2017. The GST Council has now decided to postpone the implementation of e-way bill provisions and rules to 1st January 2018. Hence, w-way bill rules will be operationalised in a staggered manner across India from 1st January 2018 to 1st April 2018.

22nd GST Council Press Release

The press release from the Government summarising the decisions of the 22nd GST Council is reproduced below for reference

Appointment of Whole - time Director as per schedule V of Companies Act, 2013

Appointment of Whole - time Director as per schedule V of Companies Act, 2013 " :-
1. Send notice of Board meeting to all directors.
2. Pass board resolution in Board meeting only & not by circulation.
3. Send General meeting ( AGM or EGM as Fixed) Notice to all members.
4. Pass Ordinary Resolution in General meeting.
5. File Form DIR-12 within 30 days of General meeting.
6. File Form MR-1 within 60 days from Appointment in Board meeting.

GST Council Meeting Updation.

Join:- #Dp Accounting and taxation services🌍
*Today's GST Meeting Highlights*
- *GST Council* allows *quarterly returns to traders with turnover upto Rs 1.5cr*
- *GST Council* allows increase in cap *for composition scheme from turnover upto Rs 75 lakh to Rs 1cr*
- *Reverse charging facility* deferred until 31 March 2018
- *E-wallet system* (separate for each exporter for payment IGST/CGST) to be implemented till from 1 April 2018. Till then, *they shall pay nominal tax of 0.1%*
- *Issue of taxation wrt restaurants* transferred to committee which will come out with its report within 2 weeks
- *Provisions of TDS/TCS* to be implemented from 1 April 2018
- *E-way bill pilot successful in Karnataka* and likely implementation from 1 April 2018
- *Businesses providing exempted services* shall be out of service tax net
- *GST Rate on work contracts by Govt (involving high degree of labour e.g. irrigation projects)* reduced from 12% to 5%
- *GST rate on plastic/rubber/paper waste/e-waste* reduced from 12% to 5%
- *GST Rate on Spinning Yarn* reduced from 18% to 12%
- *GST Rate on stones (other than marble/granite)* reduced from 28% to 18%
- *GST Rate on parts of diesel engine/pumps* reduced from 28% to 18%
- *GST Rate on job works in embroidery, food items, imitation jewellery* reduced from 12% to 5%
- *GST Rate on car leasing* (for cars less than 1 year) reduced by 35%
-*GST EXIM might be approoved in the Next meeting of GST Council.

Wednesday, 4 October 2017

Easy Guide of GSTR 3B with Step by Step Return Filing Procedure

The GSTR 3B form is a return form declared by the Indian government for the return filing only for initial 6 months of GST implementation. The GSTR 3B form will be filled up for the month of July to December 2017 in the place of normal return forms – GSTR 1, 2 and 3.
You can read entire help guide for filing GSTR-3B on Indian government portal here: GSTR 3B Creation-Submission PDF
A Registered dealer is mandated to file average three Returns in every month and 1 return annually under the GST. So, that total comes at 37 Returns every year for the registered taxpayer. Initially, the GSTR 1, 2 and 3 are discarded for the filing by the taxpayers for the month of July to December 2017.

Some of the Features of Return Form GSTR-3B

  • GSTR 3B to be filed mandatorily by all normal registered taxpayers
  • Nil returns to be filed in case of no business
  • Summary of information about sale and purchase, available input tax credit, tax payable, tax paid is to be furnished
  • All input tax credit availed and utilised will be posted in the ITC ledger
  • Unutilized ITC can be used in subsequent months
  • While filling up form GSTR 3B, don’t forget to Save partially filled form by clicking save GSTR 3B button
  • After pressing submit, no modification is possible therefore check the details carefully before pressing submit
  • If form GST TRAN-1 is submitted Click Check balance button to view the balance available for credit under integrated tax, Central tax, State tax and Cess ( including transitional credit also)

Who all don’t have to submit GSTR 3B return form?

  • (ISD) input service distributor
  • Composition supplier
  • TDS deductor
  • TCS collector
  • OIDAR (online information data access and retrieval)

Let’s See the Deadlines for Return Filing for July and August:

FormsFor July 2017For August 2017
GSTR 3B25th August20th September
GSTR 110th October
GSTR 231st October
GSTR 310th November
Note:  The GST council has decided in 21st meeting that GSTR-3B to be filed regularly from month August to December 2017

Interest on Late GST Payment & Missing GST Return Due Date Penalty

Those taxpayers, who do not pay their taxes on time as per the date scheduled by the GST Council, will have to pay an additional late fee amount at 18 percent per annum, depending on the number of days they delay the payment.
For example, If you fail to pay your tax liability on the due date, you will have to pay additional 1000*18/100*1/365 = Rs. 0.49 per day as late fee Where Rs. 1000 is the tax liability amount, 1 is the number of delayed days and 18 is the rate of interest (annual). See the official doc attached below for complete details of GST interest late fee and penalties
For delay in filing GSTR-3B tax return online on GSTR portal, a late fee of Rs.100 for CGST and Rs.100 for SGST per day (not exceeding Rs. 5,000) would be charged from the particular taxpayer.

Step by Step Procedure of Filing GSTR 3B Form Online

Step:1 First of all the taxpayer will have to enter his GSTIN ID very precisely with no errors. And in the second point, the legal of registered individual.
Step 2: Coming to the second box, including Details of Outward Supplies and inward supplies liable to reverse charge:

In the name of supplies column, it is given-
  • Outward taxable supplies (other than zero-rated, nil rated and exempted) – In this column, fill out all the general and non-taxable items which are sold by the business on regular basis.
  • Outward taxable supplies (zero-rated ) – In the column, only zero rate tax items will be included, if any.
  • Other outward supplies (Nil rated, exempted) – In the column, only exempted tax items will be included, if any.
  • Inward supplies (liable to reverse charge) – All the supplies of inward supplies must be mentioned here which are liable for the reverse charge.
  • Non-GST outward supplies – Include all the Non-GST outward supplies which are not covered by the GST tax scheme.
All the details must be filled along with Nature of Supplies, Total Taxable value, Integrated Tax Central Tax, State/UT Tax and Cess.
Step 3: Now the box, Of the supplies shown in above, details of inter-State supplies made to unregistered persons, composition taxable persons and UIN holders.
  • Supplies made to Unregistered Persons – All the supplies details with the item name and HSN codes in the column which has been done to an unregistered dealer or individual.
  • Supplies made to Composition Taxable Persons – All the supplies details with the item name and HSN codes in the column which has been done to a composition scheme dealer or individual.
  • Supplies made to UIN holders – All the supplies details with the item name and HSN codes in the column which has been done to a UIN holder.
All the supplies must be entered with details of Place of Supply (State/UT), Total Taxable value, Amount of Integrated Tax.
Step 4: Now, the 4th box is of Eligible ITC containing all the input tax credit demand from the taxes paid:
(A) ITC Available (whether in full or part)
  • Import of goods
  • Import of services
  • Inward supplies liable to reverse charge (other than 1 & 2 above)
  • Inward supplies from ISD
  • All other ITC
(B) ITC Reversed
  • As per rules 42 & 43 of CGST Rules
  • Others
(C) Net ITC Available (A) – (B)
been(D) Ineligible ITC
  • As per section 17(5)
  • Others
The required details must be filled up with Details of individual taxes to be paid accordingly, Integrated Tax, Central Tax and State/UT Tax Cess.
Step 5: Now coming to the box 5, it includes Values of exempt, nil-rated and non-GST inward supplies:
  • From a supplier under composition scheme, Exempt and Nil rated supply – Include all the purchases made from unregistered dealers and composition dealers in the list.
  • Non-GST supply – Include all the non-GST applicable items and products of the similar category.
The taxpayer has to include all the relevant details of Nature of supplies, Inter-State supplies, Intra-State supplies and its calculations.
Step 6: Now comes the important box for the payment of taxes, which included a number of significant data which has to be filled up with accurate details:
  • Integrated Tax
  • Central Tax
  • State/UT Tax Cess
The details must be Tax payable, Tax paid- (TDS./TCS) Tax/Cess paid in cash, Interest Rate Paid through ITC – (Integrated Tax Central Tax State/UT Tax Cess)
Note: Columns which are filled in black colour must not be filled up.
Step 7: In the next box, it comes the details of TDS/TCS Credit
A proper format in which it has been mentioned all the TDS and TCS deducted for all the tax scenario including Integrated Tax, Central Tax, State/UT Tax.
Overall the Government has chosen to implement GSTR 3B form in the starting phase of GST return filing for the easy and convenient taxpaying experience for the dealers.

Latest Update on GSTR 3B: Total Numbers of Filing done:

For July month, a total of 47 lakh people filed the GSTR-3B form and the government has received a huge revenue of INR 95,000 Crore in the treasury department. While for the August Month, the expectation is higher as at least to get an equivalent number of taxpayers in the month of August. But, until September 20, the last date of filing GSTR-3B form, there were only 30 lakh returns filed by the taxpayers in which 21.83 lakh returns were filed on the last date only. The last day rush on GSTN portal has created the impression of filing the highest return in a day under GST.