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September 2018 GST Return - Think before you file!! Writer: CS Payal Kataria Beat the clock……..September is deadline for some crucial matters to be reported like making rectification in errors and omissions, claiming input Tax credit, issuing Debit/credit notes etc. For detailed understanding of these matters don’t forget to read section 16, 34 and 38 before filing September GST Return. Below are the extracts of these three important issues: Take ITC otherwise it will lapse Section 16(4) of CGST Act 2017 clearly states that 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 section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier. Issue Debit/credit note if pending otherwise benefit of...

Charitable organisation activities under GST? Writer: CS Payal Kataria Registering charitable organisations under Section 12AA of Income Tax Act 1961 doesn’t mean that all the activities carried by such organisations are exempt from GST. Even charitable institutions should see each and every transaction from GST lens. Recently, the Authority of Advance Rulings (AAR) for GST in Maharashtra has held that Income from the sale of products such as booklets, magazines & DVD and providing accommodation and food by religious organisations on payment are not charitable activities thereby GST is liable to be paid. It is held that this activity fall under the definition of business and supply. This AAR is good piece of learning for all stake holders. Following are the lessons to be learnt from this AAR: o It may be possible that even due to single transaction or activity one may be required to take registration under GST o It is time to rethink and start testing transactions for GST applicability or non-applicability o In the...

Annual Return forms for filing GSTR-9 & GSTR-9A notified Format of much awaited Annual Return i.e. GSTR-9 (for Regular Tax payer) and GSTR-9A (for Composition Dealer) has been notified on 4th September 2018 vide notification number 39/2018-Central Tax. Last date to file Annual return is on or before 31st December 2018 for the financial year 2017-18. Though, at present, form is not available on GST portal, but soon users will find it on the portal. Start compiling data and information as required in Annual Return form GSTR-9 and GSTR-9A as it is mandatory to file Annual Return by all the registered persons. Click here to download Form GSTR-9 Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the authors nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this document nor for any actions taken in reliance thereon. Readers...

Special concern for the benefit to MSME sector Writer: CS Payal Kataria In the days to come, small tax payers registered under GST can enjoy following benefits: Simplified returns o Sahaj & Sugam o NIL Return (No purchase, No sale) can be filed by sending SMS o Facility to upload invoices continuously by the seller and can be continuously viewed and locked by buyer for availing ITC o Most welcome facility i.e. amendment return. It will be possible to amend invoice and also other details filed in the return. Even payment would be allowed to be made through the amendment return. Registration o Registration to remain temporarily suspended while cancellation of registration is under process, thereby relieved the registered person of continued compliance under GST law Composition Scheme o Under composition scheme, upper limit of turnover for opting composition scheme raised from 1 Cr. to 1.5 Cr. o Composition dealer to be allowed to supply services (other than restaurant services) for up to value not exceeding 10% of turnover in the preceding financial year, or INR 5...

Are you still struggling to complete GST migration process? Writer: CS Payal Kataria Relax!!! Government has issued notification number 31/2018 – Central Tax, mentioning procedure to complete migration process. Government is very proactive and addressing problems faced by stake holders in the implementation of GST. There were various big challenges in the implementation of GST but government has endeavoured to provide solution to each and every problem. It is equal responsibility of stake holders to extend their support for smooth implementation of GST in the country. Besides tax reform, GST is a business reform. Let’s be a partner in this game changer reform. Don’t wait …………..…. If your migration process is not complete, below mentioned notification can help you to understand the procedure to complete your pending GST migration. Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the authors nor firm and its affiliates accepts any liabilities for any loss...

Highlights of recommendations by GST Council o To raise upper limit of turnover for obtaining composition scheme from existing INR 1 Cr. to INR 1.5 Cr. o Under composition scheme, supply of services allowed but with certain restrictions. Supply of services (other than restaurant services) are allowed up to value not exceeding 10% of turnover in preceding financial year or IRN 5 lakhs whichever is higher o Levy of RCM (Reverse charge mechanism) on receipt of supplies from un-registered suppliers, to be applicable only to specified goods in case of certain notified classes of registered persons o To raise threshold limit of aggregate turnover for registration in the state of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim and Uttrakhand from existing INR 10 lakhs to INR 20 lakhs o To allow multiple registrations within same state / UT for multiple places of business in that state / UT o Mandatory registration for only those e-commerce operators who are required to collect tax at source (TCS). o If cancellation of registration is applied, it will...

FAQ’s – Relax!!! Migration window is opened once again Writer: CS Payal Kataria Question 1: I was registered under earlier regime and got my Provisional ID (PID) but was not able to fill Part B to complete the registration process. Is there any way to complete registration today? Answer: In the 28th GST Council meeting held on 21st July 2018, proposal is to open migration window for tax payers. Question 2: Till when migration window will remain open? Answer: On or before 31st August 2018 Question 3: Is migration window available online at GST portal? Answer: No, visit your jurisdictional nodal officer. Question 4: Is there any prescribed form to be submitted with nodal officer for migration process? Answer: No, submit request letter. Question 5: Is registration process under migration window online or offline? Answer: Only first time, for submission of request letter, one need to visit his/her jurisdictional office. After that registration process and pending return filing will be through online process. Question 6: What particulars need to be mentioned in...

Business management tools help mirroring an organisation digitally   With the advent of GST, Business management IT tools are buzzing. There has been tremendous increase in the amount of information that needs to be recorded. The easiest way to do that is digitally. Mirroring an organisation digitally bring accuracy, agility and real time data analytics. MSME’s would prefer the digital solution to be as close as a mirror to their day-to-day operations and simple like making an invoice the traditional way. Digital adaptation helps businesses create competitive differentiation by optimising operations efficiency and reducing operational costs and defining brands. Pakkabill helps businesses in every possible way to manage businesses digitally. It's unique features like full customisation as per business needs, useful business reports, ease of use, save your precious time and keep business in control. Pakkabill is a first of its kind tool which replicate the traditional bill book digitally, letting MSME segment users have the comfort of running the business traditional way, but digitally. Traditional methods...

FAQ's on Export Refund Writer: CS Payal Kataria Question 1: I am exporter of goods. I availed drawback in respect to central tax. Can I claim refund of input tax credit of central tax paid? Ans. No, refund of input tax credit shall not be allowed in cases where the supplier of goods or services or both avails of drawback in respect of central tax. Question 2: I am exporter of goods. I availed drawback only with respect to basic customs duty. Am I eligible for refund of unutilised input tax credit of central tax/state tax/integrated tax? Ans. Supplier availing of drawback only with respect to basic customs duty shall be eligible for refund of unutilized input tax credit of central tax / State tax / Union territory tax / integrated tax / compensation cess under the said provision. Question 3: I am exporter of goods. I availed drawback in respect of central tax. Am I eligible for refund of eligible credit on account of state...

Invoice – The measure of Sale   Business owners are drivers of their business and Invoices are an inherent part of any business, be it manufacturing or services. In addition, making invoice is a huge task, especially manual invoicing (be it using printed billbooks or using MS-Excel / MS-Word templates etc.). The surprising fact is that most businesses around the world are still making manual invoices. Businesses must understand that making manual invoices are time-intensive and often error prone. It is imperative to know that digitization makes sense in this digital era. Dis-Advantages  Labour Intensive Referring to past records turns out to be a tedious task at times  Margin of Error Manual calculations could lead to possible errors in computation  Record keeping Manual invoices get lost very easily, unless files are stored in the right place Advantages  Clear and Eligible invoices: No more effort required to understand the person’s handwriting  Instant information: Digital invoices can be easily accessed at anytime  Reduces Or Eliminates Errors: With digital invoices, possibility...