ITC Now Available on GST Paid for Post-sale Discounted Products

As per the recently updated GST tax regime, the dealers would be obliged to pay 18% GST on the post-sale discount, if it is passed to them by their companies as a part of promotional activities to benefit the end consumers. If the company has necessarily asked the dealers to pass on this benefit to end customers, then they would have to pay 18% GST.

Although, if the discount was passed to dealers without any obligation by the companies, then they will not be required to pay any GST on it. Such kind of discounts can be generally seen in fast moving consumer goods (FMCG), automobiles, consumer durables, and pharmaceutical products to lure more customers.

Further, the dealers would be eligible to claim ITC against the overall GST paid for the post-sale discounted products. The same has also been confirmed by the Central Board of Indirect Taxes and Customs (CBIC) department last Friday, i.e., 28th June 2019, via a clarification statement.

To offer more clarity on these changes, Abhishek Jain, partner at EY, stated, let’s suppose a car has been sold to a dealer by the company for INR 10 lakh, on which, the dealer has been received a discount of INR 50,000 from the company. No obligation on dealer has been put by the company to pass this benefit to the customers. In such a scenario, the dealer would not be required to pay any GST on Rs 50,000. Although, if the company has asked the dealer to pass this discount to end consumers via some promotional activity, then the dealer would have to pay GST on INR 50,000 too.

One must also note that if the company has asked the dealer to give benefit to the end customer, then the dealer always has to pay GST on the higher value item, not the amount at which he sold the car. For example, in the previous case, if the dealer has a margin of INR 25,000 on the car priced at INR 10 lakh along with INR 50,000 discount, but he has sold the car at INR 9.75 lakh, then he has to pay GST on higher value, i.e., INR 10.25 lakh.

Read AlsoGST: Hundreds of Fake Companies Playing on the Name of ITC Claim

The CBIC has further made it crystal clear for dealers that they would be eligible to claim input tax credit (ITC) against the whole amount of taxes paid if a post-sale discount is prevalent. Although, this clarification shows dissimilarities with the judgment given by Maharashtra authority for advance ruling (AAR) in MRF Tyres case recently.

Jain, partner at EY said, “This clarification is quite welcome for businesses. However, other clarifications would obligate businesses to re-look at their current tax positions and legally re-evaluate the GST positions.”

The circular also notified that GST would be applied on the calamity cess imposed by Kerela, starting from next month for rehabilitation works to improve the post-flood state conditions.

GST 2nd Anniversary: Govt to Introduce New GST Reforms

One crore GST Registration by Year End

With the royal ceremony in the central hall of Parliament, GST was implemented in its full swing on 30 June 2017 and was effective from 1 July 2017. On the occasion of the second anniversary of GST in India, today the finance ministry will introduce further new changes for good in the indirect tax system with the launch of new policies in return system, rationalization of cash ledger system and a single refund paying system as well.

Decisions will be taken in an event in the presence of Minister of State in Finance and Corporate Affairs Mr. Anurag Thakur along with other important members and officials from different departments.

Two years back, implementation of GST changed the whole scenario of Indian Economy but there was a vision behind changing the whole system, multi-layered and complex indirect tax system became simple and the whole tax administration became transparent and technology-directed.

Ministry said, the new GST tax reforms will be implemented from 1 July 2019 on trial basis to record the consequences of the changes and will become mandatory from 1 October 2019.

In its new cash ledger system, the government will merge 20 heads into 5 major heads to avoid complexities. There is only one cash ledger for tax, interest, fee, penalty, and others.

The ruling will be a single refund-assigning system where the government which sanctions the refunds will disburse four major returns namely, CGST, IGST, SGST, and cess.

The Event Concluded with the Following:

  • As per the decision of the state threshold limit of Rs 40 Lakhs will be offered to the Suppliers of Goods.
  • The compensation scheme is introduced for small service providers up to the annual turnover of Rs. 50 Lakhs with a tax rate of 6%.
  • For B2B transactions electronic invoicing system are proposed to be introduced in a phase-wise manner.
  • GST Appellate Tribunals are being established in various state head branches and area branches as well.

GST has brought together India as a single common market by breaking all the obstacles to inter-state trade and commerce. The government has brought business to ease by reducing the cost of the transaction, eliminating the streaming of taxes and pushing forward “Make in India” campaign.

It was further revealed that, in the event, the book on GST for MSME will be released and The Central board of Indirect Taxes and Customs officers will be awarded for the hard work and dedication in the implementation of GST, with the GST Commendation Certificate by Mr Anurag Thakur.

Past, Present, and Future Scenario of GST Regime

GST Regime Past, Present, and Future

Some expectations are yet left to be fulfilled, some issues are yet left to be settled down! Some pending petitions, some harsh provisions and some new steps in the digital world are halting our journey towards full stabilization and uniformity under GST.

GST system is the biggest reform in the taxation system which rolled out with a motto of “One Nation One Tax”. This system has been adopted by a few developed countries and its implementation in India is itself a remarkable measure to bring uniformity in the taxation system.
The inauguration of the GST regime brought many complications for the taxpayers and traders because they were not on board with this new system neither they were fully conversant with the procedures and acts under GST.

With the passage of time, amendments in law and 35th GST Council Meetings, some charities and stabilisation were yielded and some are yet left to achieve. Some of the issues are ironed out, some are on the verge of resolvement and some needs to be sorted at the earliest. Here we have spelt out the past, present and future scenario of GST era.

GST Return Filing

Initially, the filing of GST returns was troublesome and baffling for the taxpayer but some stability can be now be seen. However, the implementation of the new proposed return filing system should be postponed until the time comes when the businessmen, professionals and the departmental authorities become well-acquainted with the same. Change in the return filing process in between the financial year becomes inconvenient as accounting systems need to be altered to get attuned with the same.

Read also: Old GST Return vs New GST Return Filing

GST Refund

Initially, the defiance (absence) of GST refund created havoc in the minds of the exporter and stagnated their working capital. Now direct refunding to the exporter of goods and 90% instant refund to the exporter of services marks the smooth and up-to-date refund process. But the recent notification about verification of all refund claims by the authorities has again accosted a tense atmosphere for the exporters.

Introduction of Cess

Initiation of Kerala Calamity Cess has become a matter of concern as people of other states are dreadful that they may also have to pay cess introduced by the state for some other welfare schemes.

Notices for Reconciliation

Periodic notices for variations in Input Tax credit claimed by the trader and as reflecting in the GSTN network before the completion of a year puts traders and industry cumbersome situation. Business and professionals get more bewildered when they get to encounter the difference between figures reflecting in their GST Return, GSTR 2A on GSTN network and figures specified in the government notice.

A Call for Centralised Assessment

Business operating from different places/locations are facing complications in appearing for assessment before authorities in different states. Usually, large organizations follow a centralised system of accountancy and taxation. So, an awaiting demand of the trader with locations in multiple states for assessment or inquiries in the main state would be a worth appreciating step.

E-Invoicing for Business

Initiation of e-invoicing is a digital move in the digital era but it has summed up the compilation of GST because of the absence of clarity regarding the process of its generation in the situation of system breakdowns.

Fitful Changes

The traders and professionals are combating with the fitful and frequent changes and notifications issued since the beginning of the GST regime before two years. Although the alterations and amendments are needed for clarity, major amendments affect the decision taking potential of the industry. Real Estate sector is an apparent example that showcases how the imposition of conditions for a new scheme and old scheme of taxes on builders and developers have brought them into a quandary to opt between the schemes and how they are affected by a loss of past and future ITC.

Cross charging of expenses between offices in different states
A bothersome situation and court intervention are anticipated in the absence of any precise guidelines for cross charging of expenses between offices in various states. The latest ruling in the case of Columbia Hospitals which cross charged the employees cost of head office has raged the matter further. Appropriate clarity is highly needed ASAP.

Writ Petitions

There are many orders laying pending before the High Courts. Initially, the issues regarding the system, transitional credit and so on were enlisted as the writ petitions questioning the sections and procedures. Now the issues like allowing ITC on the construction of malls, Detention of goods, RCM on Import Ocean Freight, Interest on Gross Liability and not after the ITC adjustment, Liability on Mineral Rights Rate on Solar Equipments, etc are also writ petition which needs to be resolved ASAP.

Input Tax Credit

ITC eligibility has been a matter of argument between trade and authorities from the pre-GST era. In the present scenario, if a vendor does not pay GST or file returns, he/she becomes ineligible to claim ITC, this provision is tough and so should be revised at the earliest.

Imprisonment under GST Regime

Different stances by different High Courts and bail approval for illegal acts under GST has led to the formulation of the special bench under the Supreme Court to resolve the issue to avert the conditions of uncertainty in such cases.

Recommended: Complete Guide to File GST Returns Online

After two years of GST regime, a balanced scenario with smooth GSTN network and minimum changes in the law is something we expect but it is quite apparent that we are straddling the fence and there is much left to be achieved for authorities and businesses. Meanwhile, the emphasis should be on broadening the tax base, curbing the tax evasion and simplifying the procedures and GSTN system.

50% Off on CA Day 2019 for Chartered Accountants in India

Just like every year, SAG Infotech is happy to bring exclusive discounts on its wide range of software solutions designed for CA professionals and experts. On the 70th occasion of CA (Chartered Accountant) day on July 1, 2019, the company will be offering a flat 50% discount on select software products, including Genius, Gen GST, Gen Payroll (Desktop), Gen Payroll (Online), Gen CompLaw (With XBRL), Gen CompLaw (Without XBRL), XBRL, and CA Portal. 

Do not miss this amazing opportunity. Buy the most popular accounting & taxation software at half the price under this limited-period offer (1st July to 6th July 2019.) The registration for CA day offer will start on 1st July 2019

There are a total of 6 modules on which the company is providing discount namely

Genius Software (Income Tax + TDS + Balance Sheet)

Genius tax software is a complete package for all the company tax needs including Gen IT, Gen CMA, Gen TDS, Gen FM, Gen BAL, and Gen AIR. Gen income tax files all the income tax returns of the taxpayer with the given tax data and also uploads it on the govt portal. While the Gen TDS is used for tax deductions eligible for the TDS on payment to the supplier. Gen balance sheet prepares a complete balance sheet of the company as per the companies ACT 2013 regulation. Apart from it, other tax solutions are always technically ready to provide instant solutions to the taxpayer.

Current PriceAfter 50% DiscountWhere to Go?
INR 10,000*INR 5,000*More Info | Get Free Trial | Buy Now

Gen GST Software for Complete GST Solution

Gen GST a one-stop solution for the goods and services tax compliance of the taxpayers and business units. The software provides a solution of GST return filing along with billing, e-waybill generation, registration and printing etc.

Current PriceAfter 50% DiscountWhere to Go?
INR 5,000*INR 2500*More Info | Get Free Trial | Buy Now

Gen Payroll Software for HR & Employees Database Management

The Gen Payroll is the best software for payroll management required by the human resource department of every company. The Gen Payroll software is the best attendance marking and salary management software in India with up to date system accuracy and active data showcase at the time of login and request.

Current PriceAfter 50% DiscountWhere to Go?
INR 15,000*INR 7500*More Info | Get Free Trial | Buy Now

Gen XBRL Software for Preparing XBRL Sheets

The Gen XBRL is a perfect tool for all the chartered accountants to Validate & Prepare XBRL Sheets For MCA. The software is well updated and technically accurate for all the details and perfectly import/export of XML from any year. XBRL format files are now simple and easy to understand with GEN XBRL tool by SAG Infotech.

Current PriceAfter 50% DiscountWhere to Go?
INR 15,000*INR 7500*More Info | Get Free Trial | Buy Now

Gen Comp Law Software for ROC, MCA & XBRL Filing

The Gen Comp law, MCA filing software with XBRL is the best solution for the ROC e-Forms, XBRL, Resolutions, Minutes, Registers and multiple MIS reports. The software helps in all the statutory compliance of the company act. Also, it is one of the best MCA e filing tools in India.

CompLaw Without XBRLAfter 50% DiscountWhere to Go?
INR 15,000*INR 7500*More Info | Get Free Trial | Buy Now
CompLaw With XBRLAfter 50% DiscountWhere to Go?
INR 20,000*INR 10,000*More Info | Get Free Trial | Buy Now

CA Portal for CA Website Solution

One of the most acclaimed and quality service providers in chartered accountant and other legal professionals websites is the CA Portal. SAG Infotech offers CA Portal to cater all the online presence needs of the tax and legal professionals. The website is designed according to all the requirements and template base of ICAI and other authorized chapters of the profession.

Current PriceAfter 50% DiscountWhere to Go?
INR 10,000*INR 5000*More Info

The History Behind The Foundation Of CA Day

Established on 1 July 1949, by the parliament on India, Institute of Chartered Accountant of India (ICAI) is one of the most prestigious and oldest professional institutions in the country. India is proud to have ICAI as it is the second largest professional and financial body in the world.

ICAI is the only regulatory body which is licensed for the regulation of financial audits and the accountancy profession. Currently, the organization accumulates the total number of 2.5 lakh members, which itself is a great number.

It is such an honour for every member to be a part of this renowned institution, since decades, every year on the occasion of ICAI foundation, i.e. 1 July,  CA Day is started.

A Glimpse On The Origin Of ICAI

CA Profession Prevailed Days Before Independence – Regime of CA profession could be traced in decades much before Independence. Companies Act issued by the British Raj in 1913 had a detailed list of rules every company coming under the act must follow. Under the act, it was mandatory for the companies to maintain and manage books of accounts. Further mentioned in the act, it was important for the companies to appoint an auditor for the inspection of those account books.

Diploma Course in Accountancy – In 1918, “Government Diploma in Accountancy” was started by the British government in Mumbai. The syllabus was somehow the same as per the present CA course, with a training period of three years. Candidates who successfully completed this three-year training were eligible to practice profession on an Auditor, throughout India. 

Government Recognised Accountants –  Later in 1930, a register consisting of the names of accountants was maintained by the new Government Of India (GOI). Accountants whose names were listed in the register were counted under professional accountants.

1949 – Introduction of Chartered Accountant Act and ICAI – Prevailing norms were not enough to effectively manage the profession of accountancy, this called for an expert committee in 1948. The committee suggested the formation of an autonomous body to enhance the regulation of this profession. So, in 1949, the Chartered Accountants Act was passed under which ICAI was formed. 

The Designation Title Changed from Registered Accountant to Chartered Accountant – By the time, many Indians were already members of the Institute of Chartered Accountants of England and Wales (ICAEW) and were designated under the name “Chartered Accountants”. In 1949, when the Chartered Accountants Act was passed and ICAI started operating, the term Chartered Accountant was preferred over Registered Accountant and thus it retained. 

Since then, every year 1 July is celebrated as ICAI foundation day or CA Day all over the country.

Significance of CA Day in 2019

ICAI is the renowned institution all over the world and a CA passed with the degree from this organization is recognized worldwide. ICAI has strict codes of conduct which every CA is bound to follow.

A Chartered Accountant is a crucial person in all industries whether it is small or big, domestic or international. He is the one who is responsible for effective financial planning, tax filing on behalf of the company and maintaining the financial records of the company.

To enlighten the significance of this profession and to honour all the CAs of the country every 1 July is known as CA Day.

Just like every year, SAG Infotech is happy to bring exclusive discounts on its wide range of software solutions designed for CA professionals and experts. On the 70th occasion of CA (Chartered Accountant) day on July 1, 2019, the company will be offering a flat 50% discount on select software products, including Genius, Gen GST, Gen Payroll (Desktop), Gen Payroll (Online), Gen CompLaw (With XBRL), Gen CompLaw (Without XBRL), XBRL, and CA Portal. 

Do not miss this amazing opportunity. Buy the most popular accounting & taxation software at half the price under this limited-period offer (1st July to 6th July 2019.) The registration for CA day offer will start on 1st July 2019

There are a total of 6 modules on which the company is providing discount namely

Genius Software (Income Tax + TDS + Balance Sheet)

Genius tax software is a complete package for all the company tax needs including Gen IT, Gen CMA, Gen TDS, Gen FM, Gen BAL, and Gen AIR. Gen income tax files all the income tax returns of the taxpayer with the given tax data and also uploads it on the govt portal. While the Gen TDS is used for tax deductions eligible for the TDS on payment to the supplier. Gen balance sheet prepares a complete balance sheet of the company as per the companies ACT 2013 regulation. Apart from it, other tax solutions are always technically ready to provide instant solutions to the taxpayer.

Current PriceAfter 50% DiscountWhere to Go?
INR 10,000*INR 5,000*More Info | Get Free Trial | Buy Now

Gen GST Software for Complete GST Solution

Gen GST a one-stop solution for the goods and services tax compliance of the taxpayers and business units. The software provides a solution of GST return filing along with billing, e-waybill generation, registration and printing etc.

Current PriceAfter 50% DiscountWhere to Go?
INR 5,000*INR 2500*More Info | Get Free Trial | Buy Now

Gen Payroll Software for HR & Employees Database Management

The Gen Payroll is the best software for payroll management required by the human resource department of every company. The Gen Payroll software is the best attendance marking and salary management software in India with up to date system accuracy and active data showcase at the time of login and request.

Current PriceAfter 50% DiscountWhere to Go?
INR 15,000*INR 7500*More Info | Get Free Trial | Buy Now

Gen XBRL Software for Preparing XBRL Sheets

The Gen XBRL is a perfect tool for all the chartered accountants to Validate & Prepare XBRL Sheets For MCA. The software is well updated and technically accurate for all the details and perfectly import/export of XML from any year. XBRL format files are now simple and easy to understand with GEN XBRL tool by SAG Infotech.

Current PriceAfter 50% DiscountWhere to Go?
INR 15,000*INR 7500*More Info | Get Free Trial | Buy Now

Gen Comp Law Software for ROC, MCA & XBRL Filing

The Gen Comp law, MCA filing software with XBRL is the best solution for the ROC e-Forms, XBRL, Resolutions, Minutes, Registers and multiple MIS reports. The software helps in all the statutory compliance of the company act. Also, it is one of the best MCA e filing tools in India.

CompLaw Without XBRLAfter 50% DiscountWhere to Go?
INR 15,000*INR 7500*More Info | Get Free Trial | Buy Now
CompLaw With XBRLAfter 50% DiscountWhere to Go?
INR 20,000*INR 10,000*More Info | Get Free Trial | Buy Now

CA Portal for CA Website Solution

One of the most acclaimed and quality service providers in chartered accountant and other legal professionals websites is the CA Portal. SAG Infotech offers CA Portal to cater all the online presence needs of the tax and legal professionals. The website is designed according to all the requirements and template base of ICAI and other authorized chapters of the profession.

Current PriceAfter 50% DiscountWhere to Go?
INR 10,000*INR 5000*More Info

The History Behind The Foundation Of CA Day

Established on 1 July 1949, by the parliament on India, Institute of Chartered Accountant of India (ICAI) is one of the most prestigious and oldest professional institutions in the country. India is proud to have ICAI as it is the second largest professional and financial body in the world.

ICAI is the only regulatory body which is licensed for the regulation of financial audits and the accountancy profession. Currently, the organization accumulates the total number of 2.5 lakh members, which itself is a great number.

It is such an honour for every member to be a part of this renowned institution, since decades, every year on the occasion of ICAI foundation, i.e. 1 July,  CA Day is started.

A Glimpse On The Origin Of ICAI

CA Profession Prevailed Days Before Independence – Regime of CA profession could be traced in decades much before Independence. Companies Act issued by the British Raj in 1913 had a detailed list of rules every company coming under the act must follow. Under the act, it was mandatory for the companies to maintain and manage books of accounts. Further mentioned in the act, it was important for the companies to appoint an auditor for the inspection of those account books.

Diploma Course in Accountancy – In 1918, “Government Diploma in Accountancy” was started by the British government in Mumbai. The syllabus was somehow the same as per the present CA course, with a training period of three years. Candidates who successfully completed this three-year training were eligible to practice profession on an Auditor, throughout India. 

Government Recognised Accountants –  Later in 1930, a register consisting of the names of accountants was maintained by the new Government Of India (GOI). Accountants whose names were listed in the register were counted under professional accountants.

1949 – Introduction of Chartered Accountant Act and ICAI – Prevailing norms were not enough to effectively manage the profession of accountancy, this called for an expert committee in 1948. The committee suggested the formation of an autonomous body to enhance the regulation of this profession. So, in 1949, the Chartered Accountants Act was passed under which ICAI was formed. 

The Designation Title Changed from Registered Accountant to Chartered Accountant – By the time, many Indians were already members of the Institute of Chartered Accountants of England and Wales (ICAEW) and were designated under the name “Chartered Accountants”. In 1949, when the Chartered Accountants Act was passed and ICAI started operating, the term Chartered Accountant was preferred over Registered Accountant and thus it retained. 

Since then, every year 1 July is celebrated as ICAI foundation day or CA Day all over the country.

Significance of CA Day in 2019

ICAI is the renowned institution all over the world and a CA passed with the degree from this organization is recognized worldwide. ICAI has strict codes of conduct which every CA is bound to follow.

A Chartered Accountant is a crucial person in all industries whether it is small or big, domestic or international. He is the one who is responsible for effective financial planning, tax filing on behalf of the company and maintaining the financial records of the company.

To enlighten the significance of this profession and to honour all the CAs of the country every 1 July is known as CA Day.

Government Leads Into Faceless Tax Assessment

The Government of India (GOI) has swung into action the faceless income tax assessment and scrutiny, and this would all together transform the relationship between a taxpayer and income tax department and would surely lower down the corruption and tax malfeasance and quicken up the processing.

Faceless tax assessment and scrutiny simply construe that now a taxpayer would not need to personally contact or communicate with the tax officer. And at the same an assessing officer would be utterly techno-dependent and he would not be aware of the taxpayers, whose records he assesses and audits.

The government has delegated the responsibility of faceless or anonymised income tax verification & scrutiny and the formation of related modalities to the top-level direct taxes panel. The faceless processing and issuance of refunds have already been carried out by them in Bangalore.

“Terms of reference of the direct tax task force have been expanded,” a senior government official said.

Under the Narendra Modi administration, various taxpayer convenient measures were rolled out in the previous term, and now the measure of faceless assessment is the top-notch priority for the government. The squad of experts who have been appointed for this task has allotted time till July 31 to submit the report.

Read Also: Income Tax Department To Impose Tax On Cashback Exceeding INR 50K

At the same time, they have been asked to curtail down the complexities and compliance concern related to GST and Customs from the shoulders of taxpayers.

Now, the task force will explore more measures to simplify the tax mechanism while casting about a method for system-based assessment of monetary dealings.

In November 2017 the Finance ministry framed a task force to revamp the income tax norms and regulations to the simplicity and ease while considering the tax mechanism of other countries, economic needs of India and other best practices prevailing in the world.

The tenure of the task force which was gathered by Akhilesh Ranjan, who is a member in the CBDT had extended by two months in May by Arun Jaitley, who is the former finance minister. The task force will now have Ritvik Pandey, joint secretary in the department of revenue and Chief Economic Advisor K Subramanian as members. Former CEA Arvind Subramanian was a fixed invitee of the crew

Income Tax Department To Impose Tax On Cashback Exceeding INR 50K

Income Tax on Cashback

With the ITR filing dates coming close, everyone must be busy in collecting the relevant documents and information for filing an ITR. While filing an ITR one should not forget that the cashback offers served via, UPI, e-wallets, credit/debit cards under certain conditions may be taxable.

A person can get cashback immediately or after the transaction is complete. Cashbacks are basically the discounts one gets on purchase. For instance, on the purchase of Rs. 5,000 you get a cashback of Rs. 500. Such discounts are eligible for taxations in case if they exceed Rs. 50,000 in a financial year.

Cashback or discounts exceeding the limits (Rs.50,000) are targeted under section 56(2) of the Income Tax Act. They are treated as gift tax under ‘income from other sources’ or ‘profits from the business’.

Read Also: Step by Step Guide To File Income Tax Return FY 2018-19

To be noted, there are certain exceptions where gift tax is not applicable, such as free pen drives, earphones unless they are purchased for business or generating business. In such cases, taxes can be charged on free commodities under section 28(4) based on the market value of that commodity.

As per the norms of section 147 of the Income Tax Act, a notice of reassessment can be issued if the filer fails to mention such income in ITR.

Compare Old vs New GST Return Filing System

New Filing System for filing Simplified Returns under GST has been the fiery topic since past few months. The government notified the launch of the new system for trial purpose to make the taxpayers on board with the same. However after many postpone, the new system for trial is finally going to set in motion from July 2019, whereas the ultimate implementation of the system will be from October 2019.

Key Points About New GST Return Filing System

Under the new filing system, An important and main return is proposed, known as GST RET 1 return form to represent all supplies made, ITC claimed, and all tax or interest paid. GST RET 1 will take place of the GSTR 3B and ANX 1 will take place of GSTR 1 return, both which are being filed under the current system.

This form consists of two Annexures, namely –Annexure of SuppliesandAnnexure of Inward SuppliesThese annexures will be linked to the main return.

Annexure of Supplies (FORM GST ANX-1) will include details of :

  • Outward Supplies,
  • Inward Supplies Subject to Reverse Charge,
  • Import of Goods and Services.

Note: These details have to be reported invoice-wise on a real-time basis.(except B2C supplies).

Annexure of Inward Supplies (FORM GST ANX-2) will include the details of :

  • Inward Supplies

Note: Here the recipient can act on the auto-drafted documents which are uploaded by the supplier (as documents are available on a real-time basis).

  • The Form GST RET-1 will be filed on a monthly basis. However, the small taxpayers whose turnover of previous F.Y. is up to INR 5 crore, can file this return on a quarterly basis. But in this case as well they will need to pay the taxes on a monthly basis in FORM GST PMT-08.
  • The New Filing System demands supplier to upload invoices on a real-time basis which will enable recipients to take instant action. This will lead to a genuine claim of ITC.
  • In cases when a supplier fails to upload invoices or file his return, the recipient will be able to claim ITC on a provisional basis, which will not exceed the 20% of the value mentioned. The current system does not allow any provisional credit.

Timeline Comparison of New GST Filing System vs Old

For the Period from July to September 2019, small as well as large taxpayers will file Form GSTR-1, GSTR-3B under the current filing system. While under the new filing system, only Annexures will be available for upload and view on a trial basis for both types of taxpayers.

For the Period from October to December 2019, the small taxpayer will have to file the monthly return of GST PMT 08 and large taxpayers will have to file GSTR-3B for the month of October and November and monthly GST ANX – 1 as per the current system.

Under the new system, a small taxpayer will have to GST ANX-1 (quarterly), GST RET-01 (quarterly) and GST PMT-08 (monthly) and large taxpayers will have to file monthly GST ANX-1 and GST RET 01 form ( only from Dec’19 onwards)

GST Return: Compare Old vs New GST Return Filing System

The objective of the New Simplified GST Returns is to completely knock off the tax evasion pan India so that the transparency and equality can be attained under the indirect tax mechanism. Lets us check how a new system quick fixes the failings of the current systems :

Tax Payment: In the current system, Full Tax liability must be paid for a tax period while filing monthly return GSTR-3B. In the new system, complete Tax liability must be paid for a tax period in monthly PMT-08, regardless of monthly or quarterly filing of GST returns.

Number of Returns: Present System demands the filing of two returns while the new system demands the filing of just one return.

Reporting of Invoice Details in Returns: In the current filing system, invoice details can be reported while filing GSTR 1 form but can be viewed afterwards in GSTR-2A. In the new filing system, filing and viewing go simultaneously so that instant action can be taken on that.

The changeover period from the current filing system to the new filing mechanism is very important and worth taking care. C.A. professionals also need to give all their attention to the mutation resulting out of the launch of the new system even if is also under the prevailing GST Law.

Few Noteworthy Points:

  • The three months trial period for the new filing system will begin from July and will last till September 2019.
  • In the trial period, the filing of GSTR-1 and GSTR-3B can be continued.
  • After the trial period, from October to December, taxpayers whose total turnover exceeds INR 5 crores will need to adopt the new filing system and so start filing only GSTR-3B.
  • From January 2020, all taxpayers will have to file the new GST returns and annexures mandatorily.
  • The new filling completely snuffs out the Form GSTR-3B.

A Complete Guide to File DPT-3 Form (MCA) for Return of Deposits

Form DPT 03

What is Form DPT-3?

DPT-3 form is a one-time return form of loans that has to be filed by a company that has outstanding loans not treated as deposits.

According to the latest Ministry of Corporate Affairs (MCA) Amendments, it is mandatory for all the companies excluding the Government Companies to file a one time return for the outstanding receipts of money which are the loan of the company but are not considered deposits.

How did the Form DPT-3 Come into Existence?

On 22nd January 2019, the MCA (Ministry of Corporate Affairs) rolled out a new rule in the Companies (Acceptance of Deposits), Rules, 2014 and that new rule is DPT-3 form.

Companies (Acceptance of Deposits) Amendment Rules, 2019

MINISTRY OF CORPORATE AFFAIRS

NOTIFICATION

New Delhi, the 22nd January 2019

G.S.R. 42(E).—In exercise of the powers conferred by clause (31) of section 2 and section 73 read with sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government, in consultation with the Reserve Bank of India, hereby makes the following rules further to amend the Companies (Acceptance of Deposits) Rules, 2014, namely:-

1. (1) These rules may be called the Companies (Acceptance of Deposits) Amendment Rules, 2019.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Companies (Acceptance of Deposits) Rules, 2014 (hereinafter referred to as the said rules), in rule 2, in sub-rule (1), in clause (c), in sub-clause(xviii), after the words “Infrastructure Investment Trusts,” the words “Real Estate Investment Trusts” shall be inserted.

3. In the said rules, in rule 16, the following Explanation shall be inserted, namely:- “Explanation.- It is hereby clarified that Form DPT-3 shall be used for filing return of deposit or particulars of transaction not considered as a deposit or both by every company other than Government company.”.

4. In the said rules, in rule 16(A), after sub-rule (2), the following sub-rule shall be inserted, namely:- “

(3) Every company other than Government company shall file a onetime return of outstanding receipt of money or loan by a company but not considered as deposits, in terms of clause (c) of sub-rule 1 of rule 2 from the 01st April, 2014 to the date of publication of this notification in the Official Gazette, as specified in Form DPT-3 within ninety days from the date of said publication of this notification along with fee as provided in the Companies (Registration Offices and Fees) Rules, 2014.”.

Who has to File The DPT-3 Form?

Except for the Government companies, all other companies which include all private limited companies, OPC, limited companies or Section 8 Company have to mandatorily file this form.

What is the Last Date (Due Date) to File the DPT-3 Form?

As per the Companies (Acceptance of Deposits) Amendment Rules, 2019, all the companies have to compulsorily file the one-time deposit return in E-form DPT-3 within 90 days form the end Financial Year 2018-19. While filing the return, the company has to give all the details about the outstanding receipt of money or debt which are not treated as deposits from 1 April 2014 to 31st March 2019.

Which Period Loans Must be Covered Under the Form DPT-03?

All Outstanding receipt of Money or Loan by the company prevailed from 1st April 2014 up to 22nd January 2019 must be covered under the DPT-3 form.

Should Form DPT-3 be Filed if there is no Outstanding Loan?

No, the DPT-3 form must not be filed if there is no outstanding receipt of money or loan.

Who is Applicable to File the DPT-3 Form?

  • According to the rule 16A, DPT-3 must be filed by all the companies who have received money and loan which is due.
  • The DPT-3 form must be filed by all the companies including small, private, non-small, OPC, etc.
  • Both secured, unsecured Loans along with advance for goods and services must be filed in the DPT-3 Form.
  • Even if the Holding Company or Subsidiary Company or Associate Company obtains the loan then it also has to file the DPT-3 Form
  • If the company has not paid the loan before 1st April 2014 which is still continuing then such loans have to be reported to the ROC under the DPT-3 Form.

Who is not Applicable to File the DPT-3 Form?

  • If the company does not have any loan till 22nd January 2019, then the filing of DPT-3 form is not required.
  • If the company takes a loan after 1 April 2019 or pays it before 22nd January 2019 and there is no record of an outstanding loan then the company does not have to file the DPT-3 Form.

Given below is a table of Effect of Amendment to understand it clearly.

Relevant AmendmentApplicable toType of ReturnDue Date
Explanation to rule 16Every company excluding Government CompanyReturn of deposit or particulars of the transactions not treated as a 
deposit or both
On or before 30th June of the previous year.
Insertion of rule 16A (3)Every company excluding Government CompanyOne time return of outstanding receipt of money or dept by a 
company which is not treated as deposits as per rule 2 (1) (c)
On or before 30th May 2019.

Sample of the Form DPT-3

Given below is the sample of the DPT-3 Form with the Companies (Acceptance of Deposits) Amendment Rules, 2019

Amendment Process in GST Registration: Step by Step Guide

Under GST regime, registration is the foremost and the essential step for existing taxpayers as without registration they would not get GSTIN number which is a basic identity number of a taxpayer. Filling the correct details in registration form is necessary but, what if somebody entered wrong details or missed out some important fields?

Recommended: All Latest Updates on 32nd GST Council Meeting

To ease the hurdles, Rule 12 and Form GST REG 14 provides a way to correct the information without visiting any government office or centre. An applicant can correct some information and change the particulars without approval from any authority and some fields require approval but editing can be done online in both the cases. The amendments for GST registration are categorized into three, which describes the level of approval and time period to amend the fields. While applying for amendment in particular fields of a registration form, it is mandatory to mention the “Reasons” for amendment in GST registration process.

Three Types Of Amendments That Can Be Done:

Change In Core Field: The changes in Core field includes the legal name of the business, the address of the principal place of business, and any additional place of business. It takes 15 days to get approval from a proper office to amend the Core Fields.

Change In Non-core Field: There are some fields which don’t require any approval from a proper office and amendments in Non-core fields can be easily done online. All the fields except those, which are covered under core fields come under a Non-core field.

Three Types Of Amendments

Change In Email Or Mobile Number: The change in email or mobile number requires a verification by OTP(One-Time Password) after online verification on common GST portal.

Eligible Applicant To Change The Registration Details:

The taxpayers under the following category can amend the registration details:

  • Normal taxpayers and new applicants
  • Changes in TDS/TCS registration for the person having UIN card and belongs to UN Bodies, Embassies & other notified
  • person
  • Non-resident foreign taxpayer
  • GST practitioner
  • Online application and retrieval service provider

The Fields Which Cannot Be Changed:

  • Any amendment to the details of PAN card cannot be done as GST registration is wholly based on PAN number
  • Change in constitution of business cannot be done as it requires change in PAN number on the first place
  • Modification in place of business from one state to another state cannot be possible as GST registration are state-specific

Apart from this, primarily authorized signatory can also be changed with the condition to add a new primary signatory. If the condition is not fulfilled, then changes in primary signatory are not possible.

Timeline For Amendment in GST Registration Process

In case of requirement of any modification in the GST registration, a taxpayer needs to submit the application with required documents for amendments on GST portal within 15 days. After GST REG 14 amendment form approval, the changes will be corrected in form GST REG 06.

The application for amendments of registration can be saved for 15 days. However, if an applicant fails to submit the application for any reason, the application for amendments will be removed automatically.

How To Do Changes In Core Fields?

To change the details of the core fields in a registration form, you need to follow below-mentioned step by step procedure:

  • Step 1: Go to GST home page by clicking www.gst.gov.in
  • Step 2: Login with the provided credentials to GST portal
  • Step 3: Click on ‘Services’ tab from the main menu, hover the mouse on ‘Registration’ tab under services
  • Step 4: Click on ‘Amendment Of Registration Core Fields’ to open the link

Business Details Tab

Step 5: The “Business Details’ tab appears as a default. Select the field which you want to edit by clicking the Edit icon

  • Edit the particular detail you wish to edit
  • Select the ‘Date Of Amendment’ by clicking on calendar icon
  • Provide the reason for amendment in GST registration process online under “Reasons” tab
  • Click the ‘Save’ button given at the bottom of the page
  • After verifying all the “Business details”, press “Continue” button at the bottom of the page

Principal Place of Business Tab

Step 6: Click on “Principal Place of business” provided in the main menu, after that select the “EDIT” button provided at the bottom of the page, if there is need to edit something

  • Edit the required details and then follow the same procedure of entering “Reasons”, and “Date Of Amendment”
  • Click on “Save” button at the bottom of the page.

Additional Places of Business Tab

Step 7: Click on “Additional Places of Business” Tab provided in the main menu, after that enter the details about “Number of additional places”, this field requires to filled by values

  • Click on “Add New” button
  • Edit the desired details in relevant field
  • After that follow the same “Reasons” field and “Date Of Amendment”
  • Click on “Save & Continue” and “Save” button at the bottom of the page.

Note: To VIEW, DELETE, and EDIT promoter or partner details, click on the respective button

Promoter / Partners tab

Step 8: Select the “Promoter / Partners” tab, provided in the main menu

  • Click on “ADD NEW” button to add promoter/partners’ details
  • Enter the details and upload the relevant documents as an identity proof
  • After that follow the same “Reasons” field and “Date Of Amendment”
  • Click on “Save” & “Continue” button at the bottom of the page.

Verification Tab

Step 9: Select “Verification” tab and click on Verification checkbox

  • In the “Name of Authorized Signatory” field, choose the authorized signatory by drop-down list
  • Enter the name of the place in “Place” field
  • After successfully amending the field under “Amendment Of Registration Core Fields”, digitally sign the form by using Digital Signature Certificate (DSC)/ E-Signature or EVC.

After successful completion of the amendment in GST registration process online, the acknowledgement message will be sent automatically to registered Email and mobile no. in next 15 minutes. Again, the message of application approval or rejection by a tax authority will be sent by SMS and email to the registered email ID and mobile number.

How To Do Changes In Non-Core Fields?

To change the details of the core fields for a registration form, you need to follow below-mentioned step by step procedure:

  • Go to GST home page by clicking www.gst.gov.in
  • Login with the provided credentials to GST portal
  • Click on ‘Services’ tab from the main menu, hover the mouse on ‘Registration’ tab under services
  • Click on ‘Amendment Of Registration Non-Core Fields’ to open the link
  • The Non-Core fields are shown in editable format, edit the details in the respective fields and tabs
  • Select “Verification” checkbox under “Verification” tab
  • In the “Name of Authorized Signatory” field, choose the authorized signatory by drop-down list
  • Enter the name of the place in “Place” field
  • After successfully amending the field under “Amendment Of Registration Core Fields”, digitally sign the form by using Digital Signature Certificate (DSC)/ E-Signature or EVC.

After successful completion of the amendment in GST registration process, the acknowledgement message will be sent automatically to registered Email and mobile no. in next 15 minutes. The modification done in the Non-core fields doesn’t require any approval by the Tax Official.

Government to Levy GST on Inter-State Office Services

GST Implications on Inter State

Latest in the news, Government has made it clear in its pitch that, goods and services tax or GST will be imposed on the exchange of services from one state to another. If the scale of the services provided by the office in one state goes to the office in another state than the responsible organization has to face GST. This clause adopted by the GST council on papers will soon be effective. 

This decision is followed by the vision of Karnataka Authority of Advance Rulings (AAR) which states that any domestic activity carried out in the office of one state for the office in another state has to confront GST and an invoice will be issued for the same. 

This clause will be a tough one for companies having branch offices in different states. 

The council in its new GST circular will also include the perks of the employees, said a government official. On this, Input Tax Credits can be claimed by the companies but for absolve sectors such as healthcare, liquor, education, power, it will be a cost as the tax charged would not be credited.

This new circular also has portrayals from industries, asking for clarification on tax-ability of activities performed by the offices of an organization in multiple states, considered as two different entities, under GST laws, services offered by the office in one state to the office of the same organization in another state will be treated as the supply between two different units.

The law commission under GST council has decided to clarify the issues through the circular regarding the division of input tax credit in regards to the input services offered by the head offices or other outlets of the same organization. 

Input tax credit assured by the GST council will consider the expenses sustained by the head office on the purchase, distribution, and management of the services and treatment of services provided by the head office to its outlets and their assessments. 

Read also: List of Goods and Services Not Eligible for Input Tax Credit

The circular in the form of Frequently asked questions will define the distribution of input tax credit between the head office and branch offices of the same organization. 

Expenses will be allocated based on the valuation principles specified by the GST council and generally accepted accounting principles. According to some experts in the field, regardless of the location, the government has to treat an employee of an organization as the employee of the single organization. 

Experts say “it would be a sensible approach of the government to consider an employee as an employee of the whole organization and not of a defined location, so there may not be a need to cross charge of income cost between head office and branch office transactions”. Deduction of cross charging will prevent loads of confusion based on paperwork.

In most of the cases, it is the revenue neutral practice, except where the output is either immune or not within GST where GST charged becomes a cost. Technically speaking it should be made optional by the government where the input tax is confined to a state, further the salary of the employee should not be included as he is an employee of the particular organization and not of a particular state or location.

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