In view of the disruption caused due to severe floods in Kerala, Mahe (Puducherry) and Kodagu (Karnataka), the competent authority has extended the due dates for filing of the following GST returns by taxpayers registered in these areas
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The last date for filing of return in FORM GSTR-3B for the month of July, 2018 has been extended till 24th August, 2018 for all class of taxpayers by the competent authority.
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|S. No.||State||Date of Implementation|
|1||Chhattisgarh, Goa, Jammu & Kashmir,||01st June, 2018|
|2||Tamil Nadu||02nd June, 2018|
|3||West Bengal||03rd June, 2018|
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1. As per the decision of the GST Council, e-Way Bill system for inter-State movement of goods has been rolled out from 01st April, 2018. As on 23rd May, 2018, e-Way Bill system for intra-State movement of goods has been rolled out in the States of Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Meghalaya, Nagaland, Rajasthan, Sikkim, Telangana, Tripura, Uttarakhand, Uttar Pradesh and Union Territory of Puducherry. E-Way Bills are getting generated successfully and till 23rd May, 2018 more than five crore and thirty lakh e-Way Bills have been successfully generated which includes more than one crore and sixty lakh e-Way Bills for intra-State movement of goods.
2. It is informed that e-Way Bill system for intra-State movement of goods would be implemented from 25th May, 2018 in the following States / Union Territories :-
3. Twenty seven States / Union Territories would have implemented the e-Way Bill system for intra-State movement of goods with the roll-out of the same on 25th May, 2018. Registration / enrolment on e-Way Bill portal namely https://www.ewaybillgst.gov.in may be taken at earliest in the remaining States as well since the same would soon be rolled out in these States also. The system is working smoothly and without any glitches. On an average twelve lakh e-way bills are being generated every day. Trade and industry may approach their respective tax authority for any guidance in this matter. Further, it is informed that trade should get well versed with respect to the provisions of the e-Way Bill rules in order to avoid any difficulty. The provisions of rule 138D of Central / State GST Rules, 2017 may be referred to for any grievance redressal.
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It has been brought to the notice of the competent authority that certain technical issues are being faced by the taxpayers during the filing of FORM GSTR-3B for the month of April, 2018. In order to resolve the same, emergency maintenance is being carried out on the system.
Therefore, in the interest of taxpayers, it has been decided to extend the last date for filing of return in FORM GSTR-3B for the month of April, 2018 for two days, i.e., till 22nd May, 2018. The notification in this regard shall be published shortly.
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|GSTR 1 Filing Dates|
|Return Period||Due dates|
|April 2018||31st May 2018|
|May 2018||10th June 2018|
|June 2018||10th July 2018|
|GSTR 3B Filing Dates|
|Return Period||Due dates|
|April 2018||20th May 2018|
|May 2018||20th June 2018|
|June 2018||20th July 2018|
As per the decision of the GST Council, e-Way Bill system for inter-State movement of goods has been rolled out from 01st April, 2018. As on 13th May, 2018, e-Way Bill system for intra-State movement of goods has been rolled out in the States/ Union Territory of Andhra Pradesh, Arunachal Pradesh, Bihar, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Meghalaya, Nagaland, Sikkim, Telangana, Tripura, Uttarakhand, Uttar Pradesh and Puducherry. E-Way Bills are getting generated successfully and till 13th May, 2018 more than four crore and fifteen lakh e-Way Bills have been successfully generated which includes more than one crore e-Way Bills for intra-State movement of goods.
It is hereby informed that e-Way Bill system for intra-State movement of goods would be implemented in Assam from 16th May, 2018 & Rajasthan from 20th May, 2018.
With the roll-out of e-Way Bill system in these States/ Union Territory, it is expected that trade and industry will be further facilitated insofar as the transport of goods is concerned, thereby eventually paving the way for a nation-wide single e-Way Bill system. Trade and industry and transporters located in these States/ Union Territory may obtain registration/ enrolment on e-Way Bill portal namely https://www.ewaybillgst.gov.in at the earliest without waiting for the last date.
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The Goods and Services Tax Network - Special Purpose Vehicle (GSTN-SPV) was created as a private limited, not-for-profit company under Section 25 of the Companies Act, 1956 (Section 8 of the Companies Act, 2013) by Govt. of India on 28th March, 2013 with an objective to provide shared IT infrastructure and services to Centre and States Governments, tax payers and other stakeholders for implementation of Goods and Services Tax (GST) in the country.
Presently, the Central Government and State Government are holding 24.5% equity shares respectively and the remaining 51% are held by non-Governmental institutions and through various mechanisms, GSTN is under strategic control of government. Majority of the GST processes including registration, filing of returns, payment of taxes, processing of refunds is IT driven and GSTN is handling large-scale invoice level data of lakhs of business entities including data relating to exports and imports. Considering the nature of ‘state’ function performed by GSTN, Council felt that GSTN be converted into a fully owned government Company.
In view of the above, Council decided:
Acquisition of entire 51% of equity held by the Non-Governmental Institutions in GSTN amounting to Rs. 5.1 crore, equally by the Centre and the States governments and allow GSTN Board to initiate process for acquisition of equity held by the private Companies; and GSTN Board shall be allowed to continue the existing staff at existing terms and conditions for the a period upto five years, and shall have the flexibility of hiring people through contract on the terms and conditions similar to those used by GSTN till now while hiring regular employees. The existing financial commitments given by Centre and States to GSTN to share the capital and O&M cost of the IT Systems shall continue.
GST Council today (4th May, 2018) in its 27th meeting approved principles for filing of new return design based on the recommendations of the Group of Ministers on IT simplification. The key elements of the new return design are as follows –
(i) One monthly Return: All taxpayers excluding a few exceptions like composition dealer shall file one monthly return. Return filing dates shall be staggered based on the turnover of the registered person to manage load on the IT system. Composition dealers and dealers having Nil transaction shall have facility to file quarterly return.
(ii) Unidirectional Flow of invoices: There shall be unidirectional flow of invoices uploaded by the seller on anytime basis during the month which would be the valid document to avail input tax credit by the buyer. Buyer would also be able to continuously see the uploaded invoices during the month. There shall not be any need to upload the purchase invoices also. Invoices for B2B transaction shall need to use HSN at four digit level or more to achieve uniformity in the reporting system.
(iii) Simple Return design and easy IT interface: The B2B dealers will have to fill invoice-wise details of the outward supply made by them, based on which the system will automatically calculate his tax liability. The input tax credit will be calculated automatically by the system based on invoices uploaded by his sellers. Taxpayer shall be also given user friendly IT interface and offline IT tool to upload the invoices.
(iv) No automatic reversal of credit: There shall not be any automatic reversal of input tax credit from buyer on non-payment of tax by the seller. In case of default in payment of tax by the seller, recovery shall be made from the seller however reversal of credit from buyer shall also be an option available with the revenue authorities to address exceptional situations like missing dealer, closure of business by supplier or supplier not having adequate assets etc.
(v) Due process for recovery and reversal: Recovery of tax or reversal of input tax credit shall be through a due process of issuing notice and order. The process would be online and automated to reduce the human interface.
(vi) Supplier side control: Unloading of invoices by the seller to pass input tax credit who has defaulted in payment of tax above a threshold amount shall be blocked to control misuse of input tax credit facility. Similar safeguards would be built with regard to newly registered dealers also. Analytical tools would be used to identify such transactions at the earliest and prevent loss of revenue.
(vii) Transition: There will be a three stage transition to the new system. Stage I shall be the present system of filing of return GSTR 3B and GSTR 1. GSTR 2 and GSTR 3 shall continue to remain suspended. Stage I will continue for a period not exceeding 6 months by which time new return software would be ready. In stage 2, the new return will have facility for invoice-wise data upload and also facility for claiming input tax credit on self declaration basis, as in case of GSTR 3B now.
During this stage 2, the dealer will be constantly fed with information about gap between credit available to them as per invoices uploaded by their sellers and the provisional credit being claimed by them. After 6 months of this phase 2, the facility of provisional credit will get withdrawn and input tax credit will only be limited to the invoices uploaded by the sellers from whom the dealer has purchased goods.
2. Content of the return and implementation: Return shall be simplified also by reducing the content/information required to be filled in the return. The details of the design of the return form, business process and legal changes would be worked out by the law committee based on these principles. Government is keen to introduce the simplified return design at the earliest to reduce the compliance burden on the trade in keeping with the philosophy of ease of doing business.
1. Reversal of Input tax credit - As per the rules of Input tax credit, after issuance of tax invoice if receiver does not made the full payment of amount within 180 days then the credit taken on that invoice is to be reversed. And whenever the payment is made, the receiver can take the credit of the amount. Therefore the aging analysis of the debtors and creditors is to be done. all old invoices issued before 1st October, 2017, should be paid before 31st March 2018.
Ex. Suppose the fees Rs. 10000 is payable to the Chartered Accountant on 15th September, 2017, and the credit on that of Rs. 1800 has been taken in the return of that month, then the fees should be paid before 31st March, 2018. Otherwise the extra payment of Rs. 1800 is to be made in the month of March.
2. E way bill - It is compulsory to issue E way bill from 1st April, 2018 for interstate transport. In case of interstate supply, the goods are in transit as on 1st April, 2018, it is compulsory to generate e way bill for them. Therefore, it is necessary to take the registration under E way bill system before 31st March.
3. Reconciliation - All the taxpayers should reconcile the cash ledger, credit ledger and liability ledger with their books of accounts. All the entries should be done before the year end. Also debit note, credit note, rate difference, discount, etc also to be reconciled.
4. HSN Code in the Invoice - Before preparing first invoice in the new financial year, taxpayers should check the turnover for the year 2017-18. Taxpayers whose turnover is above Rs. 1.5 crores but below Rs. 5 crores shall use 2-digit code and the taxpayers whose turnover is Rs. 5 crores and above shall use 4-digit code. Taxpayers whose turnover is below Rs. 1.5 crores are not required to mention HSN Code in their invoices.
5. New series for tax invoice - If anyone wants to change the series for billing in the new year, then he can do that from 1st April. New numbering should be started from 1st April.
6. Composition scheme - If any taxpayer wants to register under composition scheme then he can apply in Form GST CMP - 02 before 31st March. Similarly, those who wants to cancel the registration under composition scheme, they have to apply in Form GST CMP - 04 before 7th April. They have to calculate the effects of ITC on closing stock.
7. Due dates of the returns - There are various due dates in the April month for filing the returns relating to 31st march. Such as GSTR 3B for March is to be filed up to 20th April. GSTR 1 is to be filed up 10th April. GSTR 4 is to be up to 18th April and GSTR 6 is to be filed up to 13th April.
8. Monthly/ Quarterly returns - Taxpayers should check the turnover for the year 2017-18. If the aggregate turnover is above Rs. 1.5 Crore then the taxpayers have to file monthly return. If the aggregate turnover is below Rs. 1.5 Crore then the taxpayers have an option to file the quarterly GST returns. Taxpayer can choose any of the option.
9. Form GST TRAN 2 - The taxpayers who have filed the TRAN 1 and have taken the credit of Excise duty paid, without any documents, they have to file the details of outward supplies for six months in TRAN 2 before 31st March 2018 for availing 40%/ 60% credit.
10. GSTR 6 - Input service distributor has to file GST return in form GSTR 6. So 31st March is the due date to file GSTR 6 from July 2017 to February 2018.
11. Refund - As in Maharashtra VAT, there was a provision of refund for excess input tax credit, there is no such provision in GST law. Excess credit needs to be carried forward compulsorily.
12. GSTR 2 - Details of purchases are reflecting on the portal in the form GSTR 2A. All the taxpayers should check the details of purchases before 31st March.
13. Valuation of the closing stock - At the time of valuation of closing stock as on 31st March, the input tax credit taken on raw material, consumables, semi finished goods is to be calculated. In Excise, there was a concept of making provision for the tax payable on the finished goods as on 31st March, no such concept was introduced in the GST.
14. Depreciation on the capital asset - At the time of calculating depreciation on the capital goods (other than building), if ITC has been claimed, then the tax amount needs to be ignored at the time of calculating depreciation.
15. Anti profiteering - Do the comparative check of the gross profit earned for March 2018 with the gross profit of financial year 2016-2017 or gross profit for April 2017 to June 2018. If the gross profit ratio for the March 2018 is higher, then taxpayer should check whether he is trapped in the Anti profiteering or not?
Press Release regarding E-way Bill
The GST Council has recommended the introduction of e-way bill for inter-State movement of goods across the country from 1st April 2018. For intra-State movement of goods, e-way bill system will be introduced w.e.f. a date to be announced in a phased manner but not later than 1st June 2018.
Major improvements over the last set of rules. as approved by the Council now. are as follows:
Return filing deferred: The present system of filing GSTR 3B and GSTR 1 is extended for three months till June 2018 till the new return system is finalized. A new model was discussed extensively and group of ministers on IT has been tasked to finalise the same.
Tax exemptions for exporters extended: Available tax exemptions on imported goods have been extended for a further six months beyond March 31. Now, exporters availing various export promotion schemes can continue to avail such exemptions on their imports upto October 1. By that time, e-wallet scheme is expected to be in place to continue the benefits in future.
E-Way Bill From April 1: The electronic way or e-way bill for movement of goods between states will be implemented from April 1. However, for intra-state movement, the e-way bill would be rolled out in a phased manner starting April 15, and will cover all the states by June 1.
Reverse charge mechanism deferred: The liability to pay tax on reverse charge has been deferred till June 30. Meanwhile, a group of ministers will look into the modalities of its implementations to ensure that no inconvenience is caused to the trade and industry.
Deduction of TDS/TCS deferred: The Provision for deduction of tax at source (TDS) under section 51 of the CGST Act and collection of tax at source under section 52 of the CGST Act shall remain suspended till June 30.In the meantime, the modalities of linking state and central governments accounting system with GSTN will be worked out so that seamless credit is available to the registered traders whose tax is deducted or collected at source.
For redressing grievances: GST implementation committee has been tasked with the work of redressing the grievances caused to the taxpayers arising out of IT glitches.
In the 23rd GST council meeting, it was decided that filing of GSTR-2 and GSTR-3 forms would stop and only the filing of GSTR-1 and GSTR-3B would continue.
According to the recommendation made by Nilekani, instead of supplying invoices to be uploaded, a module can be formed where supplying invoice details can be posted, and based on the invoice data fed by the supplier, the system by itself generates the return.
GSTR-3B Return: Due Dates For February And March
Due date of filing GSTR-3B return is 20th of the next month. For instance, the 3B return for the month of March can be filed anytime before April 20, and similarly, the 3B return for the month of February can be filed anytime before March 20. GSTR-1 Return: Due Dates For February And March
Taxpayers with an annual turnover that amounts to Rs. 1.5 crore or less are obligated to file their GSTR-1 returns quarterly. The due date for such taxpayers is 30th of the month following the end of respective quarter. For the March (Jan 1 to March 31) quarter, for instance, the deadline would be 30th of April.
Those with a turnover of Rs. 1.5 crore and above are meant to file monthly returns of GSTR-1. The deadline for monthly return is 10th of the month that comes two months after the end of respective month. For instance, the GSTR-1 return for the month of January can be filed by March 10. Likewise, returns for the months of February and March can be filed by April 10 and May 10.
Extension of GSTR-1 filing Due Dates:
For business with turnover upto Rs 1.5 cr
|Return Period (Quarterly)||Due dates|
|July- Sept||10th Jan 2018|
|Oct- Dec||15th Feb 2018|
|Jan- Mar||30th April 2018|
For turnover of more than Rs 1.5 cr
|Return Period (Monthly)||Dates|
|July to Nov 2017||10th Jan 2018|
|Dec 2017||10th Feb 2018|
|Jan 2018||10th Mar 2018|
|Feb 2018||10th Apr 2018|
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The discussion mainly pointed toward the implementation of E-way bill system in the country. After having Discussion with all the states GST council took following decisions regarding applicability of E-way Bill system:
What is way bill?
A way bill is a receipt or a document issued by a carrier giving details and instructions relating to the shipment of a consignment of goods and the details include the name of consignor, consignee, the point of origin of the consignment, its destination, and route.
What is E-Way bill?
Electronic Way Bill (E-Way Bill) is basically a compliance mechanism wherein by way of a digital interface the person causing the movement of goods uploads the relevant information prior to the commencement of movement of goods and generates e-way bill on the GST portal.
Rule 138 of the CGST Rules, 2017 provides for the e-way bill mechanism and in this context it is important to note that “information is to be furnished prior to the commencement of movement of goods” and “is to be issued whether the movement is in relation to a supply or for reasons other than supply”.
E-Way Bill under GST
E-way bill is an electronic document generated on the GST portal evidencing movement of goods. It has two Components:
Who should generate the e-way bill and why?
E-way bill is to be generated by the consignor or consignee himself if the transportation is being done in own/hired conveyance or by railways by air or by Vessel. If the goods are handed over to a transporter for transportation by road, E-way bill is to be generated by the transporter. Where neither the consignor nor consignee generates the e-way bill and the value of goods is more than Rs.50,000/-. It shall be the responsibility of the transporter to generate it.
Further, it has been provided that where goods are sent by a principal located in one State to a job worker located in any other State, the e-way bill shall be generated by the principal irrespective of the value of the consignment.
Also, where handicraft goods are transported from one State to another by a person who has been exempted from the requirement of obtaining registration, the e-way bill shall be generated by the said person irrespective of the value of the consignment.
How to Generate e-way bill?
To generate an e-way bill, the supplier and transporter will have to upload details on the GST Network portal, after which a unique e-way bill number(EBN) will be made available to the supplier, the recipient and the transporter on the common portal.
Purpose of E-Way Bill
E-way bill is a mechanism to ensure that goods being transported comply with the GST Law and is an effective tool to track movement of goods and check tax evasion.
The validity of e-way bill depends on the distance to be travelled by the goods.
Cancellation of E-Way Bill
Where an e-way bill has been generated under this rule, but goods are either not transported or are not transported as per the details furnished in the e-way bill, the e-way bill may be cancelled electronically on the common portal within 24 hours of generation of the e-way bill.
Note: An e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 138B of the CGST Rules, 2017.
Exceptions to e-way bill requirement
No e-way bill is required to be generated in the following cases:
Physical verification during transit
Note: Where a vehicle has been intercepted and detained for a period exceeding 30 minutes, the transporter may upload the said information in FORM GST EWB-04 on the common portal.
Consequences of non-conformance to E-way bill rules
If e-way bills, wherever required, are not issued in accordance with the provisions contained in Rule 138 of the CGST Rules, 2017, the same will be considered as contravention of rules. As per Section 122 of the CGST Act, 2017, a taxable person who transports any taxable goods without the cover of specified documents (e-way bill is one of the specified documents) shall be liable to a penalty of Rs.10,000/- or tax sought to be evaded (wherever applicable) whichever is greater. As per Section 129 of CGST Act, 2017, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or the rules made thereunder, all such goods and conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure.
Changes to Composition Scheme
There have been many important updates to the Composition Scheme. These are detailed below:
**Notifications and suitable amendments for the above are awaited.
GST Important Dates: a) Taxpayers with aggregate annual turnover up to INR 1.5 crore are required to file GSTR1 on a quarterly basis as follows:
|July-Sep 2017||31 December 2017|
|Oct-Dec 2017||15 February 2018|
|Jan-Mar 2018||30 April 2018|
b) Taxpayers with aggregate annual turnover exceeding INR 1.5 crore are required to file GSTR1 on a monthly basis as follows:
|July, Aug, Sept. and Oct 2017||31 December 2017|
|November 2017||10 January 2018|
|December 2017||10 February 2018|
|January 2018||10 March 2018|
|February 2018||10 April 2018|
|March 2018||10 May 2018|
The time period for filing GSTR-2 and GSTR-3 for the months of July, 2017 to March 2018 would be worked out by a Committee of Officers. However, filing of GSTR-1 will continue for the entire period without requiring filing of GSTR-2 & GSTR-3 for the previous month / period.
The Council decided to extend the due dates for furnishing various other returns as well. The revised due dates are as mentioned below:
|Return type||Tax period||Revised due date|
|GST ITC-04 (Details of goods/ capital goods sent to job worker and received back)||Jul-Sep 2017||31 December 2017|
|GSTR 4 (Composition Return)||Jul-Sep 2017||24 December 2017|
|GSTR 5 (Non-resident foreign taxpayers)||July 2017||11 December 2017|
|GSTR 5A (OIDAR return by foreign taxable person)||July 2017||15 December 2017|
|GSTR 6 (ISD Return)||July 2017||31 December 2017|
|TRAN-1 (Transitional credit etc.)||NA||31 December 2017|
|Description||Existing Rate||Proposed Rate|
|Wire, cables, insulated conductors, electrical insulators, electrical plugs, switches, sockets, fuses, relays, electrical connectors||28%||18%|
|Furniture, mattress, bedding and similar furnishing||28%||18%|
|Electrical boards, panels, consoles, cabinets etc for electric control or distribution||28%||18%|
|Trunk, suitcase, vanity cases, brief cases, travelling bags and other hand bags, cases||28%||18%|
|Detergents, washing and cleansing preparations; Liquid or cream for washing the skin||28%||18%|
|Shampoos; Hair cream, Hair dyes (natural, herbal or synthetic) and similar other goods||28%||18%|
|Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, perfumery, cosmetic or toilet preparations, room deodorisers including razor and razor blades||28%||18%|
|Perfumes and toilet waters; Beauty or make-up preparations||28%||18%|
|Fans, pumps, compressors; Lamp and light fitting, primary cell and primary batteries||28%||18%|
|Sanitary ware and parts thereof of all kind||28%||18%|
|Slabs and goods of marble and granite such as tiles; Ceramic tiles of all kinds||28%||18%|
|Multi-functional printers, cartridges office or desk equipment; door, windows made of aluminum; wallpaper and wall covering||28%||18%|
|All musical instruments and their parts; Cinematographic cameras and projectors, image projector,||28%||18%|
|Articles of plaster, cement, asphalt or mica||28%||18%|
|Particle/fibre boards and ply wood. Article of wood, wooden frame, paving block||28%||18%|
|Chocolates, Chewing gum / bubble gum; Waffles and wafers coated with chocolate or containing chocolate||28%||18%|
|Wet grinders consisting of stone; tanks and armored fighting vehicles||28%||12%|
|Glass of all kinds and articles thereof such as mirror, safety glass, sheets, glassware||28%||12%|
|Aircraft engines, tyres and seats||28%, 12%||5%|
|Fork lifts, lifting and handling equipment, bull dozers, excavators, loaders, road rollers, earth moving and levelling machinery, escalators, cooling towers, pressure vessels, reactors||28%||12%|
|Electrical apparatus for radio and television broadcasting, sound recording or reproducing apparatus, signaling, safety or traffic control equipment for transports||28%||12%|
|Condensed milk; Pasta; mayonnaise and salad dressings, mixed condiments and mixed seasoning; Diabetic food||18%||12%|
|Hand bags of jute and cotton; Furniture of bamboo or cane||18%||12%|
|Puffed rice chikki, peanut chikki, sesame chikki, revdi, tilrevdi, chutney powder, etc.||18%||5%|
|Idli, dosa batter||12%||5%|
|Guar meal; unworked coconut shell||5%||Nil|
|Bangles of lac/ shellac||3%||Nil|
Changes relating to Restaurant Services
Relief under the Composition scheme