GST Implication for Goods taken/Sent out of India for Exhibition or on a consignment basis for Export Promotion

GST Implication for Goods taken/Sent out of India for Exhibition or on a consignment basis for Export Promotion CS Payal Kataria Exporters community was facing problem to know correct GST implications for the Goods taken/ sent out of India for Exhibition or sale on approval basis. In this matter, main ambiguity was with respect to concept of Supply, time of Supply, Issue of Invoice, Refund etc. To clarify all these issues CBIC issued clarification vide Circular No. 108/27/2019-GST dated 18th July 2019 As there is no consideration at the time when goods are taken/sent out of India for Exhibition or on consignment basis for Export Promotion, Supply does not take place except when such activity satisfy the test laid down in Schedule I of CGST Act and same cannot be considered as Zero Rated Supply. Therefore this activity/transaction is neither supply nor Export at this stage and here termed as specified goods. Now question arise, what is the procedure to take/send goods...
Read More

Limits of GST Exemption on Maintenance Charges charged by RWA

Limits of GST Exemption on Maintenance Charges charged by RWA Contributed by: CS Payal Kataria Are you living in housing Society or Residential Complex? Still struggling to know GST exemption available on maintenance/ subscription/contribution charges charged by Residential Welfare Association (RWA)? Relaxed!!!  To clarify these confusions, Circular No.109/28/2019- GST dated 22/07/2019 has been issued by CBIC. Let’s understand the matter and remove all ambiguities. Para (1).Exemptions from GST on Maintenance Charges With effect from 25th January 2018, the exemption from GST on maintenance charges charged by  RWA from residents is available only if such charges do not exceed Rs. 7500/- per month per member. In case the charges exceed Rs. 7500/- per month per member, the entire amount is taxable. For example, if the maintenance charges are Rs. 10,000/- per month per member, GST @18% shall be payable on the entire amount of Rs. 10,000/- and not on [Rs. 10,000 - Rs. 7500] = Rs. 2500/- . Prior to 25th January 2018, the exemption was available if the maintenance charges did not...
Read More

Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019

Opportunity to unload old Indirect tax litigation Baggage “Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019” Contributed by CS Payal Kataria Budget 2019 was presented by first whole time Woman Finance Minister Ms. Nirmala Sitharaman on 5th July 2019. “Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019” proposed in Budget 2019 clearly shows the intention of the government to resolve the long-pending disputes under Pre GST indirect tax Regime and to start the journey of GST under excellent Governance. Rightly said by honorable Finance Minister “There is a need to unload this baggage and allow the business to move on.” She also told that Rs 3.75 lakh crore was blocked in litigations in service tax and excise. It's a great opportunity and big relief for the business community to resolve the burden of past disputes and to focus on business activities peacefully. Of course! these past disputes & mistakes must have given learnings, it’s time to learn from past mistakes, start prosperous business journey under...
Read More

‘GST Free’ Goods for Outgoing International Tourist

'GST Free' Goods for Outgoing International Tourist Second Anniversary of GST brought gift for outgoing International Tourist. Notification No. 11 /2019 – Central Tax (Rate) dated 29th June 2019 specifies retail outlets established in the departure area of an international airport, beyond the immigration counters, making tax free supply of goods to an outgoing international tourist, as class of persons who shall be entitled to claim refund of applicable central tax paid on inward supply of such goods, subject to the conditions specified in rule 95A of the Central Goods and Services Tax Rules,2017. This notification shall come into force with effect from the 1st day of July, 2019. Detailed procedure and process for availing benefits of this notification was issued by CBIC through Circular No 20/16/04/2018-GST dated 29th June 2019 . Now Retail outlets established at departure area of the International Airport beyond immigration counters can avail refund of taxes paid on inward supply of indigenous goods supplied to outgoing international...
Read More

GST Annual Return, Fear or Excitement?

GST Annual Return, Fear of Excitement? GST is a growth booster both for business and Government. It has brought unprecedented transparency and combat tax evasion. Government exchequer is flooded with revenue. For the month of April 2019, there was a total collection of Rs.1.13 Lakh Crore.  There is sheer scope to follow systematic and targeted approach to spend and disburse revenue in the right direction and at the right time. It is noteworthy that GST is not only Tax reform but a big Business Reform as well. After the advent of GST, businesses have revamped their work culture, informal sectors who were not having the culture of issuing Invoices; too have changed their Business style. They recognised the importance and benefits of issuing Invoices. They are becoming organised and getting an entry in the Formal Sector. System of Payments has been streamlied and improving. MSME Sector has been flourishing due to advent of GST and lucrative provisions of MSME Act has...
Read More

Dawn of New Financial Year! Still confused over Invoice series to follow?

Dawn of New Financial Year! Still confused over Invoice series to follow? Contributed by: CS Payal Kataria As per GST Rules, at the onset of every New financial Year, follow unique Invoice Series. On 04/04/2019 GST Portal issued advisory on this matter to spread awareness and also highlighted consequences of not following unique Invoice series. GST was rolled in the mid of FY 2017-18 and even at the entry of third Financial Year under GST regime, there is ambiguity over Invoice Series to be followed. Let’s remove the ambiguity and understand the concept lucidly. Rule 46 (b) and Rule 49(B) talk about Invoice Series. Below is the extract of Rule 46(b) and Rule 49(b): Tax Invoice Extract of Rule 46 (b) of CGST Rules 2017 "A consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters- hyphen or dash and slash symbolised as “-” and “/” respectively, and any combination thereof, unique for a financial...
Read More

New Avtar of GST Monthly / Quarterly Return filing system: Sahaj Sugam and Normal GST Monthly / Quarterly Returns

New Avtar of GST Monthly / Quarterly Return filing system: Sahaj Sugam and Normal GST Monthly / Quarterly Returns At the onset of GST, there was concept of filing GSTR-1, GSTR-2 and GSTR-3 but it worked only for one month and later it was decided by council to file GSTR-1 and GSTR-3B, which is being implemented till time. Fundamental principle and procedure followed under the old concept of GSTR 1, 2 and 3 can't be ignored. There was need to revamp old scheme to establish ease of filing GST returns. To address this issue, 28th GST Council Meeting proposed the idea of Sahaj, Sugam and Normal (monthly and quarterly returns). Details of this proposed new scheme of Return filing is now available at GST Portal. Sahaj, Sugam and Normal are built on the fundamental concept of GST and will robust return filing system. Paradigm shift of real time uploading of invoices by Supplier in Form GST ANX 1 and automatic visibility...
Read More

Recheck !! Are you correctly making Tax Invoice/Bill?

Recheck!! Are you correctly making Tax Invoice / Bill? Recently it was observed by Government that some registered persons especially service providers making interstate supply to unregistered persons, Composition dealers UIN etc are not mentioning Place of Supply in the Tax Invoice. To clarify and highlight the importance of mentioning Place of supply in such cases, Circular No. 89/08/2019-GST and Circular No. 90/09/2019-GST dated 18th February 2019 was issued by CBIC. Circular clearly states the fundamental Principal of GST “destination-based Consumption tax” therefore registered person must ensure that tax accrues to the state where consumption of goods or services or both takes place. To avoid severe consequences and hassles, revisit section 31 of CGST Act 2017 and related Rule 46 of CGST Rules 2017 and check whether you are issuing Tax invoice as required in the Act. Alert! Registered persons making supply of goods or services or both in the course of inter-State trade or commerce shall specify the place of supply...
Read More

No Pain only Gain: Latest GST Registration Changes

Latest GST Registration Changes  GST has brought various business reforms. Intention of any law is not to give pain but to provide gain. For achieving goal of Ease of doing business in India, various measures are taken and one of the prime focus is on GST. Since long business community was demanding to allow to take one or more registration in the same state under same PAN even in the same line of Business, Government took proactive step and allow it through CGST Amendment Act 2018 which was notified w.e.f 1st Feb 2019. Second area to cry was filing of nil GST returns between the time period of applying for GST registration cancellation and it’s final approval by department which is also resolved. Separate registration for multiple places of business within a State or a Union territory Any person having multiple places of business within a State or a Union territory, requiring a separate registration for any such place of business under sub-section (2) of section 25 shall be granted separate registration in respect...
Read More

Welcome Changes in Composition Scheme from Next Financial Year 1st April 2019

Welcome Changes in Composition Scheme from Next FY i.e. 1st Apr 2019 GST Council is carefully listening Voice of Industry. Government is following harmonious approach and endeavouring to find all possible solutions to points raised by Industry, for effective, efficient and successful implementation of GST. In case planning to take Composition Scheme, below mentioned latest changes be beneficial to arrive at correct decision. Increase in Turnover Limit: W.E.F 01.04.2019, The limit of Annual Turnover in the preceding Financial Year for availing Composition Scheme for Goods shall be increased to Rs 1.5 crore. Special category States would decide, within one week, about the Composition Limit in their respective States. Compliance Simplification: The compliance under Composition Scheme shall be simplified. They would need to file one Annual Return but Payment of Taxes would remain Quarterly along with a simple declaration. Composition Scheme for Services A Composition Scheme shall be made available for Suppliers of Services (or Mixed Suppliers) with a Tax Rate of 6% (3% CGST +3% SGST) having an Annual Turnover in the preceding Financial Year up to...
Read More