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  • Contributed by CA Bimal Jain In Union Budget 2019-20, the Finance Minister has introduced the Finance (No.2) Bill, 2019 in Lok Sabha on July 05, 2019. The following are the gist of the notifications which makes amendment in Customs and Central Excise with effect from July 06, 2019 unless otherwise stated. To prescribe effective rate […]

    Contributed by CA Bimal Jain

    Ms. Nirmala Sitharaman today presented the full budget of 1st Year of 2nd term of Modi Government amid subdued economic growth and challenging fiscal situation. Taking into consideration, the need of time, with a vision to become $5 trillion economy by 2025, various sectors including social sectors were generously rewarded in this Budget.

    Contributed by CA Bimal Jain

    The legislative changes would come into effect only upon the enactment of the Finance (No. 2) Bill, 2019.

    Contributed by CA Bimal Jain

    Authority for Advance Ruling, Maharashtra vide GST-ARA, Application No. 114 dated January 25, 2019

    Facts:

    M/s. Aarel Import Export Private Ltd. (“the Applicant”) is an importer and exporter & trader of products such as Black Matpe, Toor Whole, Coke, Agarbatti, etc. The Applicant is registered under the Central Goods and Services Tax Act, 2017 (“CGST Act”) having its head office at Mumbai, Maharashtra.

    Contributed by CA Bimal Jain

    The Larger Bench (LB) of Bombay HC rules in favour of Revenue, holds that cash refund u/s 11B of the Central Excise Act, 1944 (“the Excise Act”) is not permissible when CENVAT Credit on inputs remains unutilized on account of closure of manufacturing unit or inability to utilize input credit.

    Contributed by CA Bimal Jain

    Background:

    The Interim Budget 2019 did not propose any changes with respect to Indirect Tax. In as much as GST is concerned, the GST Council in its 28th meeting held on July 21, 2018, recommended certain amendments in the CGST Act, IGST Act, UTGST Act and the GST (Compensation to States) Act, 2017.

    8 things to be done under GST before March 31, 2019 – Last chance to avail any pending ITC of FY 2017-18 –
    In terms of sec 16(4) of the CGST Act, 2017 (“the CGST Act”) a registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both, after the due date of furnishing of the return under sec 39 for the month of September following the end of financial year to which such invoice or invoice relating to debit note pertains or furnishing of the relevant annual return, whichever is earlier.

    Contributed by CA Bimal Jain

    The GST Council in its 32nd meeting held on January 10, 2019, gave approval that the changes made by CGST (Amendment) Act, 2018, IGST (Amendment) Act, 2018, UTGST (Amendment) Act, 2018 and GST (Compensation to States) Amendment Act, 2018 along with the corresponding changes in SGST Acts would be notified w.e.f. February 01, 2019

    What are your views about the current status of GST implementation in India?

    It is daunting task to replace multiple taxes and synchronizing various state and central bodies in a single tax system. GST is going to be an evolving tax system. It has been over 10 months since GST has been implemented in India. We can say that the law has come to a certain stability. To a certain extent, technology has also been tested at GSTN portal, practitioners, service providers and client end. Everyone has adopted to changes.

    Contributed by CA Bimal Jain

    Considering the first year of implementation of GST, major challenge is being faced by the Industry Inc in availing GST input tax credit (“ITC”) for the financial year 2017-18 after implementation of GST (i.e. July 2017 to March 2018) and lot of divergent views are floating with respect to the last date till which such ITC can be availed.

    Contributed by  CA Bimal Jain

    Finally, after facing every step of hurdle during past one year of journey of GST, passing through more than 400 changes in form of Notifications, Circulars, Press Releases and Orders, the final goal of every taxpayer is to assess their business records and analyse the mistakes done during the past financial year through the mode of GST Audit (GSTR – 9C) and Annual Return (GSTR – 9) for FY 2017-18.

    Contributed by  CA Bimal Jain

    After getting deferred till September 30, 2018, the Central Government vide
    Notification No. 50/2018 – Central Tax dated September 13, 2018 and Notification No. 51/2018 – Central Tax dated September 13, 2018, has appointed the 1st day of October 2018, as the date on which the provisions of Section 51 of the CGST Act, 2017 (i.e. Tax deduction at source) and Section 52 (i.e. Tax collection at source) shall come into force.

    Contributed by  CA Bimal Jain

    The GST Council in its 28th GST Council Meeting held on July 21, 2018 under the Chairmanship of Shri Piyush Goyal, Union Minister for Railways, Coal, Finance & Corporate Affairs had approved the new return formats. The Council had earlier approved the basic principles of GST return design and directed the law committee to finalize the return formats and changes in law. In pursuance thereof, the CBIC has placed Note on draft GST simplified returns and return formats in public domain on July 30, 2018 for perusal and feedback of stakeholders.

    Contributed by  CA Bimal Jain

    The recently concluded 28th meeting of GST Council has recommended changes in the GST rates on several goods and brought down the GST rates on number of products bringing as many as 88 products in lower tax slab. This is being seen as a major relief for the consumers and shall provide impetus to the relevant industries. However, lowering of tax rates always brings along with it the fear of profiteering by the Industry and the consumers for whom the taxes are brought down are deprived of these benefits.

    Contributed by CA Bimal Jain

    The GST Council in its 28th GST Council Meeting held on July 21, 2018 under the Chairmanship of Shri Piyush Goyal, Union Minister for Railways, Coal, Finance & Corporate Affairs has approved the new return formats. The Council had earlier approved the basic principles of GST return design and directed the law committee to finalize the return formats and changes in law.

    Contributed by CA Bimal Jain
    As seen recently after implementation of E-Way Bill, effectively from April 1, 2018, multiple cases of seizures of the goods/conveyances in transit by the department by way of Order passed under Section 129(1) of CGST Act, 2017 (“CGST Act”), has raised concerns as to whether the order of seizure of goods under Section 129(1) of CGST Act is appealable or not?

    Contributed by CA Bimal Jain

    A year-old Goods and Services Tax (“GST”) is all set to see slew of amendments soon. To iron out the practical hindrances and issues being faced by the Industry Inc since the implementation of GST, the GST Council (apex decision making body for GST) on July 9, 2018 had unveiled the draft of proposed changes in GST law before they are introduced in the upcoming monsoon session of the Parliament.

    Contributed by CA Vikash Parakh

    At present the need of the hour under the GST regime is the availability of INPUT TAX CREDIT to the registered person on 1st July 2017 and the procedure to claim such ITC under the GST regime.

    Contributed by Manoj Agarwal

    REVERSE CHARGE U/s 9(4) EXEMPTED for Inward supply Value upto Rs.5000 in a Day – Revised

    The Central Government has issued Exemption Notification No. 8/2017-CT(Rate) dated 28-06-2017 giving relaxation to Registered Persons under GST from major (and draconian) compliance required under section 9(4) of the CGST Act, 2017.

    Contributed by CA Vikash Parakh

    The term ‘supply’ includes all forms of supply of goods or services, supplied or to be supplied, for a consideration, in the course or for furtherance of business. It will include sale, transfer, barter/exchange, license, rental, lease & disposal.

    Contributed by CA Vikash Parakh

    Procurements play a vital role in any organization, and such procurements when made from unregistered vendors will have tax implications under reverse charge mechanism leading to impact on the entire working capital flow.

    Contributed by CA. Dr. Dilip V Satbhai

    Why GST?
    The passage of the GST bill by Loksabha has paved the way for introduction of GST law in India, likely to see the light of the day on 1st July 2017.

    Contributed by S Prakash, Secretary, KSTPA (Karnataka State Tax Practitioners Association)

    Year 2017 will be a remarkable year for both Direct and Indirect Tax reforms in India. Implementation of GST is a giant leap towards creating a unified Indian Market as the PM Says “One India – One Tax”. As we look into the benefits of this Law to elevate India’s economic growth at a global level, it is equally important to be mindful about the transition phase and preparation that our businesses have to undertake at the backstage for the successful implementation of the Law.

    Contributed by CA. Lalit Aggarwal

    GST will be new world of opportunity for all the chartered accountants as well as other professionals. As all of us know that migration of existing assessees have been started. In era of competition every client is looking for complete solution under one roof. Job work is very common between manufacturer in India. Here we will try to understand Job work provisions under GST.

    Contributed by CA. Raman Khatuwala

     Difference between the Sale & Supply ?

    • Till now VAT is paid on sale of goods and Central Excise Duty is paid on manufacture of commodity. In GST, this concept is changed which is based on supply of goods .

    Contributed by CA. Sukrati Agrawal

    ITC is core provision of GST as GST is destination based tax. ITC avoids cascading effect of taxes.
    Input tax in relation to a taxable person, means the IGST including that on import of goods, CGST and SGST charged on any supply of goods and/or services to him and includes the tax payable under section 8(3) but does not include the tax paid under section 9 of GST Model Law, November 2016.

    Contributed by CA. Puneet Oberoi.

    Meaning & Concept of Job Work
    JOB work is the only exception to the general rule of the GST concept that the credit moves with the goods. Job work is defined under 2(61) of the CGST Act, as:-
    “(61) job work means undertaking any treatment or process by a person on goods belonging to another registered taxable person and the expression job worker shall be construed accordingly;”

    Contributed by CA. Ronak Agarwal. 

    Introduction
    The Constitution Amendment Bill on Goods and Services Tax (GST) has received Presidential assent post its passage in both the houses of Parliament and ratification by over one-half of the State Legislatures. The GST Council, headed by the Union Finance Minister with all the State Finance Ministers as members, is in the process of finalizing and recommending model GST law.

    Contributed by CA. Anil Gupta

    1. What is Composition Scheme in current State Indirect tax?

    Considering the compliance complexity for small dealers, the current state indirect tax
    regime has provided a simpler compliance for their business called ‘composition
    scheme’.

    Contributed by CA. Puneet Oberoi

    Exports is one of the most important economic activity for a country which has spectrum of impact on all sectors. For a developing economy struggling to maintain rationality in balance of payment situation, it becomes more vital. All countries work on the basic premises that duties and taxes should not be exported along with goods and services.

    Contributed by CA. Vikram Seth

    While much is being said and heard about GST in India these days, we have many accountants who still think GST will just be another tax and all they need to do is to do is create another tax ledger and do another tax calculation.

    Contributed by CA. Dinesh Pagaria

    Let us understand the taxation of works contract (Including any transfer of property when works contract is executed) related to immovable property as the supply of service. Works contract, as well as the sale of under construction property, shall be subjected to GST.

    Contributed by CA. Raman Khatuwala

    Every supplier will get itself registered under GST in the state from where it makes taxable supply of goods or services, if his aggregate turnover in a F.Y exceeds

    Contributed by CA. Ashit Shah

    Goods and Services Tax (GST), a biggest Indirect Tax Reform in the country of India is going to be reality in the near future though some political interference cannot be ruled out.

    Contributed by CA. Anil Gupta

    1. What is the purpose of returns?

    Ans. a) Mode for transfer of information to tax administration; b) Compliance verification program of tax administration;

    Contributed by CA. Tarun Agarwalla

    Introduction:

    1. The New Model GST Law ( hence forth “MGL”) as made available on public domain as on 26th November 2016 have bring out many changes with respect to the provisons with respect to composition levy.

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