GST

1,169

Full List of Items Rates Revised by GST Council on 21st July 2018

Posted on by Fastlegal Team

Full List of Items Rates Revised by GST Council on 21st July 2018

1. Rates for 17 consumer goods including washing machines, refrigerators, TVs, video games, vacuum cleaners, trailers, juicer mixer, grinders, shavers and hair dryers, water coolers, water heaters, lithium-ion batteries and electric iron slashed from 28 percent to 18 percent.

2. GST rate of 18 percent will be applicable on TVs up to 68 cm (27 inch) in size

3. Small handicraft exempted under GST

4. Deities made of stone, marble and wood exempted under GST

5. Rakhis exempted under GST

6. Knitted caps or otherwise under Rs 1,000/Unit now at 5 percent

7. Ethanol for oil companies now under 5 percent slab

8. Footwear under Rs 1,000 now under 5 percent slab

9. Actual bill of hotel stay above Rs 7,500 will attract 28 percent GST. Actual hotel bill below Rs 7,500 will, however, attract only 18 percent GST

10. Fortified milk will be exempted from GST

11. Rates on paints, wall putty and varnish down to 18 percent from 28 percent

12. Perfumes, toilet spray now under 18 percent slab

13.  GST on handbags, jewellery box, wooden box for paintings, artware of glass, stone endeavour, ornamental framed mirrors, handmade lamps etc reduced to 12 percent

14.  Simpler return filing process approved. Quarterly returns for business turnover up to Rs 5 crore instead of monthly filings. However, tax payment will be monthly. Nearly 93 percent traders and small businesses will get benefited from this. Exemption limit for traders in Assam, Arunachal Pradesh, Himachal Pradesh, Himalaya, Sikkim, increased from Rs 10 lakh to Rs 20 lakh

15.  No decision on sugar cess, to be decided in next meeting

The GST Council will meet next on August 4 to discuss the problems faced by small traders and businesses and entrepreneurship. The meeting will be completely focussed on the MSME sector, Goyal said.

 

Source : Moneycontrol

293

Online Information Database Access & Retrieval (OIDAR) Services Under GST

Posted on by Fastlegal Team

Due to Technology and internet Advertising, Technology Cloud Services, Instant Download Services ( like E Book’s, Info graphics etc  )  , supplies of digital content (movies, television shows, music etc) , online gaming  services are becoming very popular,  Services Provided from the Non -Taxable Territory to Taxable Territory  are covered under the GST with the Name of Online Information Database Access and Retrieval Services (OIDAR) :    

Meaning of Online Information Database Access and Retrieval Services:

Online information and database access or retrieval services” mean services whose delivery is mediated by information technology over the internet or an electronic network, nature of which renders their supply essentially automated, involving minimal human intervention & impossible to ensure in the absence of information technology and includes electronic services such as-

• Advertising on the internet;

• Providing cloud services;

• Provision of movie, software, e-books, music, and other intangibles through telecommunication networks or internet;

• Providing data or information, retrievable or otherwise, to any person in electronic form through a computer network;

• Online supplies of digital content (movies, television shows, music and the like);

• Digital data storage; and

• Online gaming.

Taxability of OIDAR Services : 

When Supplier is Located outside India and Recipient is Unregistered Person ( Services Provided from Non- Taxable Territory to Unregistered Person in the Taxable Territory i.e India )

In this case Place of Supply will be taxable territory  i.e. India.  (Location of Recipient of Services ) and IGST provisions will be applicable and the Supplier of Services is required to be Registered in India for the Payment of IGST.

To take the Registration in India , Application will be made in form REG-10.

Supplier will take registration at principal commissioner of central tax, Bengaluru west who has been designated for grant of Registration in such cases.

In this case Suppler is required to appoint Authorized Representative in India for Registration and Compliance.

When supplier is located outside India and recipient is business entity (i.e. Registered Person under GST)

In this case recipient is required pay tax on Reverse Charge basis and Supplier is not required to be registered

 

Fastlegal Provides Online Registratioon and Return Filing Services for Online Information Database Access and Retrieval Services (OIDAR ) Companies.

Please email us your Requirements at mail@fastlegal.in or call/whatsapp at 9782280098

 

2,728

Frequently Asked Questions on Input Tax Credit Under GST

Posted on by Fastlegal Team
  1. What is input tax?

 Input tax in relation to a taxable person, means the (IGST and CGST) in respect of CGST Act and (IGST and SGST) in respect of SGST Act, Charged to him on any supply of goods and/or services which are used, or are intended to be used, in the course or furtherance of his business. Under the IGST Act, input tax is defined as IGST, CGST or SGST charged on any supply of goods and / or services.

2. Can GST paid on reverse charge be considered as input tax? 

Yes. The credit can be availed if such goods and/or services are used, or are intended to be used, in the course or furtherance of his business.

3.Does input tax includes tax (CGST/ IGST/SGST) paid on input goods, input services and/ or capital goods?

 Yes. It may be noted that credit of tax paid on capital goods also is permitted to be availed in one installment.

4.What is the ITC entitlement of a person who has applied for registration under the Act within thirty days from the date on which he becomes liable to registration and has been granted such registration?

 He shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of this Act. It may be noted that the credit on pre-registration stock would not be admissible if the registration has not been obtained within a period of 30 days from the date on which he becomes liable to registration.

5.What is the eligibility of input tax credit on inputs in stock for a person who obtains voluntary registration?

 The person who obtains voluntary registration is entitled to take the input tax credit of input tax on inputs in stock, inputs in semi finished goods and finished goods in stock, held on the day immediately preceding the date of registration.

6.Where goods and/or services received by a taxable person are used for effecting both taxable and non-taxable supplies, whether the input tax credit is available to the registered taxable person?

 The input tax credit of goods and / or service attributable to only taxable supplies can be taken by registered taxable person. It is important to note that credit on capital goods also would now be permitted on proportionate basis.

7.What would be input tax eligibility in case where the goods and/or services supplied by a registered taxable person become absolutely exempt?

 The registered taxable person who supplies goods and / or services which become absolutely exempt, has to pay an amount equivalent to the input tax credit in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date of such exemption. It has also been provided that after payment of the amount on such goods, the balance, if any available in electronic credit ledger would lapse..

8.A dealer paying tax on composition basis crosses the composition threshold and becomes a regular taxable person. Can he avail ITC and if so from what date?

 He can avail ITC in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date from which he becomes liable to pay tax.

9.Whether the principal is eligible to avail input tax credit of inputs sent to job worker for job work?

 Yes, the principal is eligible to avail the input tax credit on inputs sent to job worker for job work.

10.What is the time period within which the inputs sent for job work has to be received back by the principal?

180 days.

10.Whether principal has to reverse the input tax credit on inputs which have not been received back from the job worker within 180 days?

 Yes, the principal has to reverse the credit along with interest on inputs which have not been received back from job worker within 180 days but he can reclaim the credit on receipt of inputs.

11.What is the time period within which the capital goods sent for job work has to be received back by the principal?

 Two years.

12.What is the liability of the principal if the capital goods sent to job worker have not been received within 2 years from the date of being sent?

Principal has to pay an amount equal to credit taken on such capital goods along with interest. But he can reclaim the credit on receipt of inputs.

13.Where the registered taxable person has claimed depreciation on the tax component of the cost of capital goods under the provisions of the Income Tax Act, 1961, will ITC be allowed in such cases?

The input tax credit shall not be allowed on the said tax component.

14.What are the conditions necessary for obtaining ITC?

Following four conditions are stipulated:

(a) The registered taxable person should be in possession of taxpaying document issued by a supplier;

(b) The taxable person must have received the goods and / or services;

(c) The tax charged on such supply has been actually paid to the government either in cash or through utilization of input tax credit; and

(d) The taxable person should have furnished the return.

3,689

Frequently Asked Questions on GST Registration

Posted on by Fastlegal Team
  1. What are the benefits for taking registration in GST?                                                                      Businesses registered under GST will have following benefits:
  • Legally recognized as supplier of goods or services.
  • Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods or services or both by the business.
  • Legally authorized to collect tax from his purchasers and pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients.
  1. What will be the effective date of registration?

If a person gets his business registered within 30 days from the date of crossing of threshold limit for registration than effective date would be the date of crossing of threshold limit. If the person get his business registered voluntarily than effective date of registration would be the date on which registration is granted.

  3.Who is liable for Registration under GST?

Every person who makes taxable supply of goods or services and whose aggregate turnover in a financial year (against a PAN) exceeds the threshold limit of Rs. 20 lakhs (Rs.  10 lakhs for Special Category states) is liable for Registration under GST.

4.Which are the special category states under GST?

Following states are special category states for the purpose of GST:

Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, Uttarakhand.

5.What is the meaning of aggregate turnover under GST?

Aggregate value of all taxable supplies (excluding the value of supplies on which tax is payable under reverse charge mechanism) and exempt supplies made within a State or Union territory by a taxable person, exports of goods or services or both and inter-State supplies of goods or services or both made from the State or Union territory by the said taxable person but excludes central tax, State tax, Union territory tax, integrated tax and cess.

6.Under which circumstances registration is mandatory under GST, even when the turnover has not crossed threshold limit?

  • When there is any change in constitution of the business.
  • Anyone who make inter-state taxable supply of goods
  • Casual taxable person making taxable supply
  • Non-Resident taxable person making taxable supply
  • Agents of a supplier who make taxable supply
  • Those paying tax under the reverse charge mechanism
  • Input service distributor
  • E-commerce operator or aggregator
  • Person who supplies via e-commerce aggregator
  • Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person

Person who are required to deduct tax.                                                                                                                          7.Weather separate registration is required for each state in which a person carrying business?

Yes.  Separate registration is required for each state where a taxable person is making any supply of goods or services.

8.Can a person get more than one registration in a state if he is carrying on more than one business against the same PAN?

Yes. A person may obtain different registration on a single PAN if having different kind of business verticals.

9.Is possession of a Permanent Account Number (PAN) mandatory for obtaining a Registration?

Yes. Every person shall have a Permanent Account Number in order to be eligible for grant of registration under Section 19 of the Model GST Law. However PAN is not mandatory for a non-resident taxable person who may be granted registration on the basis of any other document as may be prescribed.

10.Is it necessary for the Govt. organization to get registration?

A unique identification number (ID) would be given by the respective state tax authorities through GST portal to Government authorities / PSUs not making outwards supplies of GST goods (and thus not liable to obtain GST registration) but are making inter-state purchases.

11.At the time of registration will the assesses have to declare all his places of business?

Yes. The principal place of business and place of business have been separately defined under section 2(78) & 2(75) of MGL respectively. The taxpayer will have to declare the principal place of business as well as the details of additional places of business in the registration form.

12.Can the registration certificate be downloaded from the GSTN portal?

In case registration is granted, applicant can download the Registration Certificate from the GST common portal.

13.Where and how can I apply for Registration under GST?

 You can apply for GST Registration online using the GST web portal. No Physical (manual) application is required.

14.Do I need to visit tax department for submission of hard copies of GST Registration?

No, you don’t need to submit hard copies to tax department as new registration process is paperless.

15.What documents/information required for GST Registration?

  • PAN card of Business, Pan Card of Proprietor in case of Proprietorship business.
  • Valid and accessible e-mail ID and Mobile Number (will be verified through OTP)
  • Proof of constitution of business (Certificate of Incorporation/ Partnership Deed etc.)
  • Documentary Proof of directors/partners/proprietor/executive Committee members (Copy of Pan Card/Aadhar Card/Voter’s ID card, Driving License, Passport etc.)
  • Proof of principal place of business (Rent Agreement/Consent letter/Electricity Bill/Government tax receipt.)
  • Details of additional places of business, if applicable
  • Details of Authorized Signatories including photographs and authorization letter.
  • Details of Primary Authorized Signatory (one person must be primary authorized signatory out of authorized signatories)
  • Business bank account details along with bank statement or first page of bank passbook or canceled chaque.
  • Valid Class II or Class III DSC of authorized signatory in case of companies and LLPs; valid Class II or Class III DSC or Aadhaar (for E-Sign option) in case of other entities.
  • Passport size photograph of directors/partners/proprietor/executive Committee members/HUF Karta etc.

 

 

 

 

 

 

 

 

 

 

 

 

3,711

Frequently Asked Questions on GST Returns-Form GSTR-3B

Posted on by Fastlegal Team

 1. What is GSTR-3B?

GSTR-3B is a simplified summary return and the purpose of the return is for taxpayers to declare their summary GST liabilities for the tax period and the discharge of these liabilities in a timely manner.

A normal taxpayer is required to file GSTR-1, 2, & 3 returns for every tax period. In case of extension of due dates for filing of GSTR-1 and GSTR-2, GSTR-3B needs to be filed and subsequently if there is any discrepancy between the system generated 3B and earlier filed 3B the taxpayer will have to pay additional tax, liability and other dues.

2.Who needs to file the GSTR-3B?

All normal taxpayers and casual taxpayers are required to file the GSTR-3B every time there is an extension of due dates of filing for GSTR-1 and GSTR-2.

 3. Where can I file GSTR-3B?

GSTR-3B can be filed from the returns section of the GST Portal. In the post login mode, you can access it by going to Services > Returns > Returns Dashboard. After selecting the financial year and tax period, GSTR-3B, (if applicable), in the given period will be displayed.

 4. By when do I need to file GSTR-3B?

GSRR-3B is required to be filed by 20th of Succeeding month for a Tax Period.

5.Will there be any invoice matching in GSTR-3B?

 No, all the details in GSTR-3B will be self declared in summary manner and the taxes will be paid based on the table 6 of GSTR-3B (refer to the Rules as available on the GST Council or CBEC website, applicable for GSTR-3B Form).

6.Will the Utilize cash/ITC functionality be available for discharging return related liabilities?

No, all the details in GSTR-3B will be declared in a consolidated manner by the taxpayer and the taxes will be paid based on the table 6 of GSTR-3B, after submitting the return (refer to the CGST/SGST Rules available on the GST council or CBEC website applicable for GSTR-3B Form).

7.What will happen if my declared liabilities in GSTR-3B are different from that of my GSTR-3 which I will file later?

Upon generation of GSTR-3, if liabilities are different from those declared in GSTR-3B, the system will update the delta (difference) between GSTR-3B and GSTR-3 automatically.

Note: In case of an upward revision of liabilities, you will be liable to pay differential tax along with interest on the (differential) amount.

8.Is filing of GSTR-3 mandatory even if there is no business in the particular tax period?

Like for filing of GSTR-1, 2 and 3, GSTR-3B is also mandatory to be filed by all normal and casual tax payers, even if there is no business in the particular tax period.

 

 

 

 

588

Frequently Asked Questions on GST Returns FORM GSTR-2

Posted on by Fastlegal Team

In this article we have included Frequently Asked Questions on Form GSTR-1 asked by our clients as well as some questions has been taken from Governments’ GST Portal

  1. What is Form GSTR-2?

 GSTR-2 is the details of inward supplies of goods or services to be furnished by registered taxpayer on a monthly basis. The GSTR-2 would be prepared by registered taxpayer by acting upon on auto-populated details from GSTR-1,5,6, 7,8 filed by the corresponding supplier/ Non-Resident taxable persons/ ISD/ Tax Deductor/ Tax Collector and by adding missing /other details as applicable. The registered taxpayer can avail Input Tax Credit (ITC) for eligible inward supplies.

  1. Who is required to file Form GSTR-2

Every registered person, other than an Input Service Distributor or a Non-Resident taxable person or a person paying tax under the provisions of section 10 (Composition taxable person) or section 51 (TDS) or section 52 (TCS), is required to file Form GSTR-2 (Statement of Inward Supplies), on a monthly basis, prepared on the basis of auto-populated details from the Form GSTR-1 of the suppliers after accepting, modifying, rejecting, or keep pending such data.

Receiver taxpayers can also add inward supplies and credit or debit notes received for supplies that are not declared by the supplier taxpayer in Form GSTR-1.

Recipient is also required to declare his claim of ITC on inward supplies in Form GSTR-2.

Form GSTR-2 needs to be filed even if there is no business activity (Nil Return) during a given tax period.

 3. Is there any taxpayer who is exempt from filing Form GSTR-2?

Yes, the following taxpayers are exempt from filing Form GSTR-2:

  • Input Service Distributors
  • Taxpayers under the Composition Scheme
  • Non-resident Taxable Persons
  • Taxpayers paying tax under section 51 (TDS) or 52 (TCS)

 4. By when do I need to file Form GSTR-2 for a given tax period? OR What is the due date for filing Form GSTR-2?

The due date for filing Form GSTR-2 is the 15th of the month succeeding the tax period but small taxpayers with a turnover up to 1.5 crore need to  file GSTR-2 quarterly.

5. Can the date of filing of Form GSTR-2 be extended?

Yes, date of filing of Form GSTR-2 can be extended by the Board/Commissioner by notification.

6.Is there any late fee applicable on filing of Form GSTR-2 after due date? If yes, what are the charges?

Yes, a receiver tax payer is charged late fee for filing Form GSTR-2 after the due date.

Late fees payable is Rs 100/- for every day (as per CGST Act) during which such failure continues subject to maximum of Rs 5000/-, (fees as per SGST Act will be charged separately as per respective SGST Act).

 7. What is the definition of inward supplies under GST?

 The inward supplies include all inward supplies of goods and/ or services, including inward supplies of services and goods on which the tax is payable on reverse charge basis.8.

8. Under what circumstances can the details of inward supplies of month M in the Form GSTR-2 can be filed before the end of month M (before the end of the tax period)?

Normal taxpayers cannot file Form GSTR-2 before the due date of the filing of Form GSTR-1 of the current tax period.

However, following are the exception scenario for filing before due date:

  1. Casual taxable person
  2. Surrender of Registration by Normal Taxpayer Surrender of Registration by Normal Taxpayer

However, taxpayer who has applied for cancellation/ surrender of registration would be allowed to file GSTR-2 only after confirmation of cancellation application.

 9.What is the time limit up to which a taxpayer can claim ITC?

 ITC can be claimed up to the due date of filing of the return of the tax period ending September of the subsequent financial year in which the original invoice/ debit note was issued or the annual return of the subsequent financial year is filed, whichever is earlier. If the invoice date is after this limitation period, credit is not allowable.

 10.What are the pre-conditions for filing GSTR-2?

 Pre-conditions for filing of GSTR-2 are:

  • The receiver taxpayer should be a Registered Normal Dealer and should have an active GSTIN.
  • Receiver taxpayer should have valid login credentials (i.e., User ID and password).
  • Receiver taxpayer should have valid and non-expired/ unrevoked Digital Signature Certificate (DSC which is mandatory for companies, LLPs and FLLPs).
  • Receiver taxpayer should have a valid Aadhaar number with mobile number, in case they want to use the E-Sign option.
  • A receiver taxpayer should have with him an active mobile number which is indicated in his registration details furnished to GST Portal at the time of enrolment/ registration or amendment to registration details for signing through EVC.
  • A receiver taxpayer will have an option to file Form GSTR-2 for cancelled GSTINs for the period in which it was active.
  • Due date for filing of Form GSTR-1 of the same tax period should have lapsed.

 11.What happens after Form GSTR-2 is filed?

 After Form GSTR-2 is filed:

  •  ARN is generated on successful submission of the Form GSTR-2 Return. In case, the return is filed through an offline utility, a Temporary ID is generated when the taxpayer uploads the .JSON file. On successful submission of the Form, an ARN is generated.
  • An SMS and an email are sent to the taxpayer on his registered mobile and email on successful submission of Form GSTR-2.
  • Once the Form is submitted after affixing DSC or E-sign or EVC as the case may be, the Form is passed on to:
  1. The CBEC (Central Board of Excise and Customs – the central tax authority)
  2. Tax authority of jurisdictional State or UT of
  • In case of modifications or additions in Form GSTR-2, such details are auto-populated in Form GSTR-1/ 1A/ 5 of counterparty supplier taxpayers.
  • Electronic Credit Ledger is updated.

 

 

 

 

 

78

Frequently Asked Questions on GST Returns- FORM GSTR-1

Posted on by Fastlegal Team

In this article we have covered frequently asked question on GSTR-1 asked by our clients as well as some questions has also been taken from Governments’ GST Portal.

1. What is GSTR-1?
GSTR-1 is a monthly Statement of Outward Supplies to be furnished by all normal and casual registered taxpayers making outward supplies of goods and services or both and contains details of outward supplies of goods and services.
2. Who is required to file the GSTR-1?
Every registered taxable person, other than an input service distributor/compounding taxpayer/TDS Deductor/TCS Collector is required to file GSTR-1, the details of outward supplies of goods and/or services during a tax period, electronically on the GST Portal.
3. Is GSTR-1 filing mandatory?
GSTR-1 needs to be filed even if there is no business activity (Nil Return) in the tax period.
4. What are the available modes of preparing GSTR-1?
GSTR-1 can be prepared using the following modes through:
A. Online entry on the GST Portal
B. Uploading of invoice and other GSTR-1 data using Returns Offline Tool
C. Using third party application of Application Software Provider (ASPs) through GST Suvidha Providers (GSPs)
5. What details have to be furnished in GSTR-1?
The following details of a tax period have to be furnished in GSTR-1:
a. Invoice level details of supplies to registered persons including those having UIN
b. Invoice level details of Inter- state supplies of invoice value greater than equal to INR 2,50,000 to unregistered persons (consumers)
c. Details of Credit/Debit Notes issued by the supplier against invoices
d. Details of export of goods and services including deemed exports (SEZ)
e. Summarised state level details of supplies to unregistered persons (consumers)
f. Summary Details of Advances received in relation to future supply and their adjustment
g. Details of any amendments effected to the reported information for either of the above categories.
h. Nil- rated, exempted, and non-GST supplies
i. HSN/SAC wise summary of outward supplies
6. Which type of registered taxpayers are not required to file the GSTR-1?
The following taxpayers are not required to file GSTR-1:
• Taxpayers under the Composition Scheme (Return to be filled by them in GSTR 4)
• Non-resident foreign tax payers (Return to be filled by them in GSTR 5)
• Online information database and access retrieval service provider (Return to be filled by them in GSTR 5A)
• Input Service Distributors (ISD) (Return to be filled by them in GSTR-6)
• Tax Deducted at Source (TDS) deductors (Return to be filled by them in GSTR 7)
• E-commerce operators deducting TCS (Return to be filled by them in GSTR 8)
7. What are the pre-requisites for filing GSTR-1?
Pre-requisites for filing GSTR-1 are:
a. The taxpayer should be a registered taxpayer and should have an active GSTIN during the tax period for which GSTR-1 has to be furnished.
b. The taxpayer should have valid login credentials (i.e., User ID and password) to login into GST Portal.
c. The taxpayer should have an active and non-expired/ revoked digital signature (DSC), in case the digital signature is mandatory
d. In case a taxpayer wants to use E-Sign, they must have a valid Aadhar number with access to the mobile number and e-mail id registered with Aadhar authority (UIDAI) as OTP will only be sent on the registered mobile number and e-mail id. In case the taxpayer has changed the mobile number and e-mail id, they must first update the same with UIDAI. For cancelled GSTINs, the taxpayers will have an option to file GSTR-1 for the period up to the date of cancellation.
e. In case taxpayer wants to use EVC, they must have access to the registered mobile number of the Primary Authorized Signatory
8. For which class of Taxpayers is DSC mandatory for filing returns?
DSC is mandatory in case of all Public & Private Limited Companies, Limited Liability Partnerships (LLPs), and Foreign Limited Liability Partnerships (FLLPs).
9. By when do I need to file the GSTR-1 for a given tax period? OR What is the due date for filing the GSTR-1?
For normal taxpayers due date to file GSTR-1 for a given tax period is 10th day of the succeeding month and small taxpayers with turnover up to 1.5 crore are required to file GSTR-1 quarterly.
10. How should the value of turnover to be in entered in the mandatory field on the landing page of GSTR-1?
The turnover value in Table 3 of GSTR-1 has to be entered manually for the first year as the information is not available with the GST system. From the second year of implementation of GST, the system will auto-calculate the turnover based on all the annual returns filed for all the GSTINs associated with a given PAN (PAN-based turnover). However, the turnover value will be editable and you will have the option to amend it.
11. What does the ‘Total Invoice Value’ column indicate in GSTR-1?
The ‘Total Invoice Value’ column in GSTR-1 is for the invoice value inclusive of taxes.
12. Will there be any validation on relationship between Invoice value and Taxable Value?
Taxable value is the value as per the provisions of GST law. There will be no validation that the invoice value is equivalent to taxable value plus the tax amount.
13. Can I enter details of Goods and Services in the same invoice?
Yes, you can enter details of Goods and Services in the same invoices.
14. What are B2B Supplies?
B2B Supply refers to supply transactions between registered taxable entities/persons (Business-to-Business supplies).
15. What is meant by B2C Supplies?
B2C Supply refers to supply transactions between a Registered Supplier and an Unregistered Buyer (Business-to-Consumer).
16. What are Debit Notes?
A Debit Note is a document issued against an invoice in cases where the original invoice was issued at a value lower than the actual value of goods and/or services provided. It can also be issued in case of post supply price negotiations. The difference amount is accounted for in the form of a Debit note
17. What are Credit Notes?
Credit Note is a document issued against an invoice in cases where invoice was issued at a value higher than the actual value of goods and/or services provided or the invoice value is reduced due to post supply negotiations. This may also happen when the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient.
18. When are Debit Notes to be reported in the return?
Debit Notes are to be reported in the return of the month in which they are issued by the supplier.
19. When are Credit Notes to be reported in the return?
Credit Notes are to be reported in the return of the month in which they are issued but not later than the return of the September month following the end of the financial year in which such supply was made, or the date of furnishing of the relevant annual return, whichever is earlier.
20. Does a tax payer need to report the credit notes and debit notes of supplies to consumer separately?
No. In case of supplies to consumers are to be reported in a consolidated manner (intra-state supplies to consumer and inter-state supplies of invoice value less than INR 2.5 lakhs), the credit/debit notes are not required to be reported separately. Such supplies have to be reported in a consolidated manner net off the values of credit and debit notes.
21. In case of Receipt of advance by the Supplier from a Receiver, is the supplier liable to pay tax on such an advance amount?
Yes, Supplier is liable to pay tax on advances received from Receivers for the supply of goods and services and report the consolidated advance received details in month in which payment is received. The amount of advances to be reported in GSTR-1 is net off the amount for which invoices have already been issued and the value reported in the same return in other sections.
22. How is the tax paid on advance payments adjusted against the invoice(s) issued in the subsequent tax period(s)?
The taxpayer has to declare the advance that has to be adjusted in the tax period in which advance is received. Subsequently when invoice is issued,then taxpayer can
adjust the tax liability of the invoice issued of that tax period, in the GSTR-1 of that period. This can be shown in the advance adjustment table of GSTR-1.
23. Whether purchases from unregistered person, which are subject to reverse charge, for which the recipient issues a tax invoice, is required to be reported ?
All the purchases from unregistered person, which are subject to reverse charge, for which the recipients issues a tax invoice are to be reported in GSTR-2 (and not in GSTR-1).
24. Do I need to upload the invoice(s) details at the time of filing GSTR-1?
Taxpayers can upload invoice details any time during the tax period and not just at the time of filing of GSTR-1. For example, let’s take September 2017 as the tax period – the tax payer can upload invoices from 1st September to 10th October and after 15th October in case of late filing of GSTR-1.
25. Until when can changes be made to the uploaded invoice details?
Taxpayers can modify/delete invoices any number of times till they submit the GSTR-1 of that particular tax period. The uploaded invoice details are in a draft version, and can be changed irrespective of due date until the GSTR-1 is submitted.
26. What is the due date for the payment of monthly tax liabilities for normal taxpayers?
A normal taxpayer is required to discharge their return related liability at the time of filing of GSTR-3. The current due date for filing GSTR-3 is 20th of the succeeding month.

70

Concept & Meaning of Supply under GST

Posted on by Fastlegal Team

The taxable event in GST is supply of goods or services or both. Various taxable events like manufacture, sale, rendering of service, purchase, entry into a territory of state etc. have been done away with in favour of just one event i.e. supply. The constitution defines “Goods and Services Tax” as any tax on supply of goods, or services or both, except for taxes on the supply of the alcoholic liquor for human consumption. The Central and State governments will have simultaneous powers to levy the GST on Intra-State supply. However, the Parliament alone shall have exclusive power to make laws with respect to levy of Goods and Services Tax on Inter-State supply. The term, “supply” has been inclusively defined in the Act. The meaning and scope of supply under GST can be understood in terms of following six parameters, which can be adopted to characterize a transaction as supply:

  1. Supply of goods or services, Supply of anything other than goods or services does not attract GST
  2. Supply should be made for a consideration
  3. Supply should be made in the course or furtherance of business
  4. Supply should be made by a taxable person
  5. Supply should be a taxable supply
  6. Supply should be made within the taxable territory





While these six parameters describe the concept of supply, there are a few exceptions to the requirement of supply being made for a consideration and in the course or furtherance of business. Any transaction involving supply of goods or services without consideration is not a supply, barring few exceptions, in which a transaction is deemed to be a supply even without consideration. Further, import of services for a consideration, whether or not in the course or furtherance of business is treated as supply.

Supply of Goods or Services or Both

Goods as well as services have been defined in the GST Law. The securities are excluded from the definition of goods as well as that of services. Money is also excluded from the definition of goods as well as services, however, activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged are included in services. Schedule II to the CGST Act, 2017 lists a few activities which are to be treated as supply of goods or supply of services. For instance, any transfer of title in goods would be a supply of goods, whereas any transfer of right in goods without transfer of title would be considered as services. Further Schedule III to the CGST Act, 2017 spells out activities which shall be treated as neither supply of goods nor supply of services or outside the scope of GST. This includes: 1. Services by an employee to the employer in the course of or in relation to his employment. 2. Services of funeral, burial, crematorium or mortuary including transportation of the deceased. 3. Sale of land and sale of building where the entire consideration has been received after completion certificate is issued or after its first occupation. Actionable claims are included in the definition of goods, however, Schedule III provides that actionable claims other than lottery, betting and gambling shall be neither goods nor services.

Supply for Consideration

Consideration has specifically been defined in the CGST Act, 2017. It can be in money or in kind. Any subsidy given by the Central Government or a State Government is not considered as consideration. It is immaterial whether the payment is made by the recipient or by any other person. A deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply.

Further, when there is barter of goods of services, the same activity constitutes supply as well as a consideration. When a barber cuts hair in exchange for a painting, hair cut is a supply of services by the barber. It is a consideration for the painting received. However, there are exceptions to the requirement of ‘Consideration’ as a pre-condition for a supply to be called a supply as per GST. As per schedule to CGST Act, 2017, activities as mentioned below shall be treated as supply even if made without consideration:

  1. Permanent transfer or disposal of business assets where input tax credit has been availed on such assets.
  2. Supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business: Provided that gifts not exceeding fifty thousand rupees in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both.
  3. Supply of goods— (a) by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal; or (b) by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.
  4. Import of services by a taxable person from a related person or from any of his other establishments outside India, in the course or furtherance of business.

 Supply in the Course or Furtherance of Business



 GST is essentially a tax only on commercial transactions. Hence, only those supplies that are in the course or furtherance of business qualify as supply under GST. Hence, any supplies made by an individual in his personal capacity do not come under the ambit of GST unless they fall within the definition of business as defined in the Act. Sale of goods or service even as a vocation is a supply under GST. Therefore, even if a famous politician paints paintings for charity and sells the paintings even as a one-time occurrence, the sale would constitute supply. However, there is one exception to this ‘Course or Furtherance of Business’ rule i.e., import of services for a consideration.

1

GST Registration

Posted on by Fastlegal Team

GST Registration Liability based on turnover of the business:

As per Section 22 of CGST ACT, 2017 Every Person shall be liable for registration under this Act in the State or Union Territory, other than special category states, from where he makes a taxable supply of goods or services or both if his aggregate turnover in a financial year exceeds twenty lakh rupess:

Person making a taxable supply of goods or services or both in from a special category states shall be liable for registration if his aggregate turnover in a financial year exceeds ten lakh rupees.

Special Category States under GST:

” Special Category States ” shall mean the States as specified in sub-clause (g) of clause (4) of article 279A of the Constitution currently following  states falls under this category:

Arunachal Pradesh,  Assam,  Jammu & Kashmir,  Manipur,  Meghalaya,  Mizoram,  Nagaland,  Sikkim,  Tripura,  Himachal Pradesh, & Uttarakhand.

Mandatory Registration under GST:

Following persons shall be required to be registered under this Act compulsorily, irrespective of turnover limits provided above:

  • Persons making any inter-state taxable supply; any person supplying goods or services to persons outside the state in which he is carrying on business shall be liable for registration irrespective of his turnover.
  • Casual taxable person making taxable supply; Person who does not have fix place of business in the state where he is supplying goods or services occasionally, For example person who is supplying services on work contract basis for a specific project in that state where he does not have fix place of business.
  • Persons who is required to pay tax under reverse charge; Persons who are required to pay tax under reverse charge under GST, For Example Taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territory in this case recipient of service is liable to pay tax under reverse charge.
  • persons who are required to deduct tax under section 51, whether or not separately registered under this Act; As per section 51 of CGST Act,2017 the Government may mandate: (a) a department or establishment of the Central Government or State Government; or (b) local authority; or (c) Governmental agencies; or (d) such persons or category of persons as may be notified by the Government on the recommendations of the Council to deduct tax at the rate of one percent from the payment made to the supplier where total value of such supply under a contract exceeds two lakh and fifty thousand rupees, so the persons, department or agency mandated by government under section 51 shall be liable for registration under GST.
  • Input Service Distributor, whether or not separately registered under this Act; input service distributor means an office of the supplier of goods or services or both which receives tax invoices issued under section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable goods or services or both having the same Permanent Account Number as that of the said office.
  • Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise; any person supplying goods or services on behalf of some other taxable person and it shall include agent, broker, dealer etc.
  • Persons registered under existing laws; Persons registered under existing laws i.e. Service Tax, Excise & Vat Laws of respective state are required to be registered under GST, even if they are not liable for registration under GST u/s 22 & 24 in this case these dealers may apply for cancellation of registration after migration to GST.
  • Every electronic commerce operator; “electronic commerce operator” means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce.
  • Every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person.
  • Persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52.

Persons NOT liable for registration under GST:

As per section 23 of CGST Act, 2017 following persons shall not be liable for registration;

(a) Any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act;

(b) An agriculturist, to the extent of supply of produce out of cultivation of land.

Frequently asked questions on GST Registration:

1. Can I get voluntary registration under GST, even if I am not liable for registration under the provisions of the GST law?

Yes,  any person who wish to take advantage of Inpt Tax Credit i.e. tax paid by him on his purchases may get themselves registered under GST after registration all provisions of GST Law shall apply to them like other registered dealers For Example they have to collect tax and file returns etc.

2. Can I cancel my Voluntary registration?

Yes, but it can be cancelled after 1 year from date of registration.

3. Do I need to have separate registration for different branches in same state?

No, a single registration is sufficient for a state, you may add multiple branches

4. Do I need to take separate registration for each state in which I am making a taxable supply of service or goods or both?

Yes, separate GST registration is required for each state from where a taxable person is making supply of any goods or services or both.

5. Do I need to pay tax for transfer of goods to my branch in another state?

Yes, You need to pay tax on supply of goods to branch in another state that is Integrated Goods & Service Tax and you may claim Input Tax Credit of the IGST paid when these goods are sold in that state.

6. Do I need to visit GST office for getting my entity registered under GST?

No, GST Registration is online process you need to feel some information online on GSTN Portal and upload required documents and you will receive your registration certificate online without visiting GST office.

7. Is there any Govt. Fee for GST Registration?

No, Govt. is not charging any fee for GST Registration.

8. Do I have to file returns even if I am not carrying on any business for some time after getting my entity registered?

Yes, return filling is mandatory you may file nil returns in this case.

9. Can I amend my GST Registration?

Yes, you may amend your registration details any time subject to approval of concerned authority.

GST Registration process at Fastlegal:

You may use Fastlegal online GST registration services at Rs. 2299/- , for which you just need to fill the form given below and upload required documents with the link provided in the form. Our experts will apply your registration on the day payment is received and you will get GST registration Certificate in 3-5 working days. You may talk to our experts if you have any doubts before apply for GST registration.

Document/information required for applying GST Registration:

  1. Mobile number of the applicant
  2. Email address of the applicant
  3. Pan card of Proprietor/Partners/Designated Partners/Directors as the case may be.
  4. Bank Statement/cancelled claque.
  5. Electricity Bill/Telephone Bill/Rent agreement and consent if the business premises are rented.
  6. Aadhar Card/Voters’ ID/Driving License of Proprietor/Partners/Designated Partners/Directors as the case may be.

 

 

 

 

 

 

                                        

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gst Registration Procedure

Gst Registration Procedure