Shikha Saini & Associates

24/06/2020

12/06/2020

*40th GST Council Meeting Updates*

1️⃣For all those who have no tax liability but have not filed GST returns for tax period July 2017 - Jan 2020 (prior to period), there shall be no late fee at all

2️⃣ For people who have tax liability, maximum late fee for non-filing of GSTR-3B returns for period Jul 2017 - Jan 2020 has been capped to ₹ 500
This will apply to all returns submitted during Jul 1, 2020 - Sep 30, 2020

3️⃣ For small tax payers whose aggregate turnover is up to ₹ 5 crore, the rate of interest for late furnishing of GST returns for Feb, Mar and April 2020, beyond July 6, 2020: the rate of interest is being reduced from 18% to 9%

4️⃣ Small tax payers whose aggregate turnover is up to ₹ 5 crore will be provided a waiver of late fees and interest if they file the form GSTR-3B for the supplies affected in months of May, June and July 2020, by September 2020

5️⃣ Tax payers who could not get cancelled GST registrations restored in time are being given an opportunity to apply for revocation of cancellation of registration up to September 30, 2020
In all cases where registration has been cancelled till June 12, 2020

Source: Ministry of Finance - official Twitter channel. Check press release and final notifications.

22/01/2020

*Latest News on GST*
Due to heavy load on Gst portal, New staggered dates for Gst 3B returns as:

Turnover above 5 crores - 20th of next month

Turnover below 5 crores
In 15 states -22nd of next month
In 22 states -24th of next month

20/09/2019

20/09/2019

*GST Council Meeting Outcome-*

1. Hotel Tariffs Rs. 7,500 and above GST at 18%.

2. Hotel Tariffs Rs. 1,000 upto 7,500 GST at 12%.

3. Hotel Tariffs below Rs. 1,000 GST at Nil rate.

4. Outside Catering GST rate reduced at 5%.

5. Diamond Job-work GST rate reduced at 1.5% and Other Job-work GST rate reduced to 12% from 18%.

6. Council amended rules regarding Refund by Appellate Authority.

7. Council amended rules regarding GST Practitioners and Consumer Welfare Fund.

8. Cups/Plates made from Flowers leaves GST rate Nil from 5%.

9. GST Annual Returns GSTR-9, 9A Optional for those with turnover upto 2cr for FY 17-18 & 18-19.

10. Those with turnover above 2cr to still file GSTR9.

11. No relief in case of GSTR-9C as it’s applicable only where turnover exceeds 2cr.

12. GSTR-9 also to be made “Saral”.

13. GST Council recommends lower 12% cess on 1,500 cc diesel, 1,200 cc petrol vehicles with capacity to carry up to 13 people

14. Uniform GST rate of 12% to be levied on polypropylene bags and sacks used for packing of goods

21/06/2019

*35th GST Council Meeting Updates*

1. Decision for reduction of rate on electric vehicle (EV) is given to Fitment committee – decision is expected in next council meeting. Current rate on EV is 12% and proposal is to reduce it to 5%

2. Anti-profiteering mechanism which was to end on 30.06.2019 has been extended for another 2 years till 2021.

3. If Profiteered amount is not deposited as per the order of the authority within 30 days then supplier will have to pay Penalty of 10% on it.

4. Annual Return (GSTR 9 / 9A) and Audit (GSTR 9C) has been extended from 30.06.2019 to 31.08.2019

5. Registration process simplified by using Aadhar back bone

6. Generation of invoices on Government portal given in-principle approval, once implemented, this invoice will be treated as E-way bill as well.

7. E-ticketing for multi-plexes approved

8. Major discussion took place on how to control Fake / bogus billing. Details awaited for this.

12/06/2019

*GST New Return Advisory - 11.06.2019*

*CBIC has issued a press release* stating that new returns will be made mandatory in phased manner as under:

*A. For Taxpayers with Turnover > INR 5 crores:*

1. Return in *Form GSTR-3B* is required *to be filed till Nov, 2019*. The *First New Return* in *Form GST RET-1* will be filed *for the monthly tax period ending in Dec, 2019* which will due *in January, 2020*.

2. Return in *Form GSTR-1* is required to be *filed till Sept, 2019* and then the same shall be *replaced* by a New Return *GST ANX-1* for the months ending *Oct, 2019 and Nov, 2019*.

_*Note - Dec, 2019 on-wards*, *GSTR-3B and GSTR-1* will be combined in *New Return GST RET-1* and the taxpayer is only required to file the same._

*B. For Taxpayers with Turnover < = INR 5 crores:*

1. Return in *GSTR-3B* and *GSTR-1* is required *to be filed till Sept, 2019*. The *First New Return* in *GST RET-1* will be filed *for the quarterly tax period ending in Dec, 2019* which will due *in January, 2020*.

_*Note - However, Taxpayer will start paying monthly* tax by filing *GST PMT-08* from tax period of Oct, 2019 on-wards_ as the payment is to be discharged on monthly basis.

*SHORT NOTES:*

*Large Taxpayers* (Turnover > INR 5 crores)

# # *GSTR 3B* (Till Nov, 2019), *GSTR-1* (Till Sep, 2019), *GST ANX-1* (Oct, 2019 and Nov, 2019) and *then from Dec, 2019, Only GST RET-1 shall be filed.*

*Small Taxpayers* (Turnover < = INR 5 crores)

# # *GSTR-3B and GSTR-1* (Till Sep, 2019), *GST PMT-08* (every month w.e.f. Oct, 2019 for payment of tax) and *GST RET-1* w.e.f. *quarter ended Dec, 2019*.

_*Note - From January, 2020, GSTR-3B and GSTR-1 will be completely replaced with GST RET-1 and GST PMT-08.*_

22/02/2019

Every Company incorporated on or before 31st December 2017 has to file this return called “Active Company Tagging Identities and Verification”.

Due date - On or before 25-04-2019

Late fee - After due date Rs. 10,000/-

31/01/2019

14 Amendments to take effect under GST from 1st Feb 2019

1. Upper limit of turnover for opting of composition scheme shall be raised from Rs. 1 Cr to Rs. 1.5 Cr.

2. A Composite dealer(in goods) shall be allowed to supply services (other than restaurant services), for a value not exceeding -

Higher of 10% of turnover in the preceding financial year, or Rs. 5 lakh.

3. The threshold limit of Turnover for exemption from registration in the States of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand shall be increased to Rs. Twenty Lakh from Rs. Ten Lakh.

4. In case of purchase of notified goods from unregistered suppliers, Reverse charge mechanism shall be applicable to notified registered persons.

5. Taxpayers may opt for multiple registrations within a State/U.T in respect of multiple places of business located within the same State/U.T on the same PAN.

6. Mandatory registration is required for only those e-commerce operators who are required to collect tax at source.

7. Registration shall be remain temporarily suspended while cancellation of registration is under process, so that the taxpayer could get relief of further continued compliance under the law.(i.e Taxpayers will not be required to file returns).

8. The following transactions shall not treated as supply (i.e no tax payable under GST) under Schedule III:-

a. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India;

b. Supply of warehoused goods to any person before clearance for home consumption; and

c. Supply of goods in case of high sea sales.

9. Input tax credit would now be available in respect of the following:-

a. Most of the activities or transactions specified in Schedule III;

b. Motor vehicles for transportation of persons having seating capacity of more than thirteen (including driver), vessels and aircraft;

c. Services of general insurance, repair and maintenance in respect of motor vehicles, vessels and aircraft on which credit is available; and

d. Goods or services which are obligatory for an employer to provide to its employees, under any law for the time being in force.

10. Registered persons may issue consolidated credit/debit notes to a party in respect of multiple invoices issued in a Financial Year to that party.

11. Commissioner may extend the time limit for return of inputs and capital sent on job work, upto a period of 1 year and 2 years, respectively.

12. If RBI would permit, Supply of services outside India shall be regarded as exports, even if payment is received in Indian Rupees.

13. Place of supply shall be outside India, where job work or any treatment or process has been done on goods temporarily imported into India and then exported out of India without putting them to any other use in India except the uses which were necessary for the purpose of such job work or treatment or process.

14. Recovery of taxes, interest, fine, penalty etc. can be made from distinct persons, even if such distinct persons are present in different State/Union territories.

10/01/2019

*GST Council decides to increase the GST registration threshold limit from current Rs20 lakh to RS 40.lakh*

*Threshold limit for Composition dealers increased to 1.5 Cr. Effective from 1st April 2019.*

*GST Council approves annual return for composition deales but quarterly tax payment for them*

*Composition Scheme for Services*

*Threshold limit : 50lakhs*
*Rate: 6%*