GST

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GST Provisions Relating To Government

Posted on by Jitendra Sharma

Registration:

Liability for Registration in Government departments/  Local Authority-

  1. If a person makes supply of goods or services or both more than 20 lakh in a financial year then he is liable for registration under GST Act.
  2. Persons who are required to deduct tax at source (TDS) whether or not separately registered under GST Act are compulsorily  liable for registration under GST Act.

 

Information/ Documents required for registration under GST Act :

  1. Application in Form GST REG-01 in case mention at S.NO.-1 and in Form GST REG-07 in case mention at S.NO.-2.
  2. PAN/TAN as the case may be, E-mail, Mobile number
  3. Authority letter- an officer authorized in this behalf
  4. Digital signature of the authorized signatory
  5. Photograph of CEO/ person incharge / authorized signatory
  6. Proof of constitution
  7. Proof of principal place of business : electricity bill/ rent receipt or rent deed in case of rental premises
  8. Bank A/C NUMBER- copy of first page of bank a/c, cancelled cheque ( no bank a/c is required for Government department)
  9. Address of principle place of business with PIN code
  10. Details of DDO/ person responsible for deducting tax/collecting tax/ authorized signatory – name, fathers name, DOB, photo, mobile, e-mail, designation, PAN, Aadhar number, residential address etc

IN GST ACT DEFINITION OF A PERSON  INCLUDES  :`

  • Central Government or a State Government
  • A local authority
  • Any corporation established by or under any Central Act, State Act or Provincial Act or a Government company
  • A co-operative society registered under any law

DEFINITION OF A LOCAL AUTHORITY IN GST ACT :

  • A Panchayat
  • A Municipality
  • A Municipal committee , a Zila parisahd, a District board, any other authority entitled to, entitled by the Central Government or any State Government with the control of a municipal or local fund
  • A Cantonment Board
  • A Regional Council or a District Council constituted under the sixth schedule to the Constitution
  • A Development Board
  • A Regional Council constituted under article 371A of the Constitution

 

RETURN/ DEDUCTION OF TAX/PAYMENT OF TAX :

I n case of tax deduction at source-

  1. Deduct tax @ 1% from payment made to suppliers of notified goods/ services where total value of such supply under contract exceeds Rs. 2.5 lakh
  2. Tax need to deposit TDS before 10th of succeeding month in challan PMT-06 generated through portal . In case late payment of tax deducted the interest shall be liable @18% per annum.
  3. Certificate to be issued within 5 days of crediting the amount then a late fee Rs 100/ per day in RGST and Rs 100/ per day in CGST shall be leviable subject to maximum of 5000/ rupees.
  4. filling of Return within 10 days after each of such month then a late fee Rs 100/ per day in RGST and Rs 100/ per day in CGST shall be leviable.
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Frequently Asked Questions- Form GSTR-1

Posted on by Fastlegal Team
  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.

  1. 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.

  1. Is GSTR-1 filing mandatory?

GSTR-1 needs to be filed even if there is no business activity (Nil Return) in the tax period.

  1. What are the available modes of preparing GSTR-1?

GSTR-1 can be prepared using the following modes through:

  1. Online entry on the GST Portal
  2. Uploading of invoice and other GSTR-1 data using Returns Offline Tool
  3. Using third party application of Application Software Provider (ASPs) through GST Suvidha Providers (GSPs)
  4. What details have to be furnished in GSTR-1?

The following details of a tax period have to be furnished in GSTR-1:

  1. Invoice level details of supplies to registered persons including those having UIN
  2. Invoice level details of Inter- state supplies of invoice value greater than equal to INR 2,50,000 to unregistered persons (consumers)
  3. Details of Credit/Debit Notes issued by the supplier against invoices
  4. Details of export of goods and services including deemed exports (SEZ)
  5. Summarised state level details of supplies to unregistered persons (consumers)
  6. Summary Details of Advances received in relation to future supply and their adjustment
  7. Details of any amendments effected to the reported information for either of the above categories.
  8. Nil- rated, exempted, and non-GST supplies
  9. HSN/SAC wise summary of outward supplies
  10. 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)
  1. What are the pre-requisites for filing GSTR-1?

Pre-requisites for filing GSTR-1 are:

  1. 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.
  2. The taxpayer should have valid login credentials (i.e., User ID and password) to login into GST Portal.
  3. The taxpayer should have an active and non-expired/ revoked digital signature (DSC), in case the digital signature is mandatory
  4. 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.
  5. In case taxpayer wants to use EVC, they must have access to the registered mobile number of the Primary Authorized Signatory
  6. 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).

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. What are B2B Supplies?

B2B Supply refers to supply transactions between registered taxable entities/persons (Business-to-Business supplies).

  1. What is meant by B2C Supplies?

B2C Supply refers to supply transactions between a Registered Supplier and an Unregistered Buyer (Business-to-Consumer).

  1. 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

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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).

  1. 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.

  1. 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.

  1. 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.

 

 

 

 

 

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Input Tax Credit Under GST

Posted on by Fastlegal Team

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.

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.

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.

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.

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

As per section 16(2A) of MGL, 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.

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.

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.

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.

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.

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

180 days.

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.

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

Two years.

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.

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.

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 retur

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Do you Require GST Registration ? Everything you need to Know about GST Registration in India

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 an 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 wishes to take advantage of Input 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 the approval of the 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 for 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/canceled 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.
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Procedure for Export Under GST without paying IGST by furnishing Letter of Undertaking or Bond

Posted on by Manoj Famra

In this article we have tried to include provisions contained in the Act, Rules, Notification or circulars issued till date in this regard.

As Per Rule 96A of CGST ACT, 2017 Registered Person would furnish Letter of Undertaking or Bond in Form GST RFD-11, This Form may be filled electronically through common portal but this facility is currently not available on common portal and CBEC vide its circular number 2/2/2017 dated 04.07.2017 has clarified that till this facility is not available on common portal this form may be furnished manually to jurisdictional deputy/ Assistant Commissioner.

1. Eligibility to export under LOU (Latter of Undertaking):

Any registered person who has received a minimum foreign inward remittance of 10% of export turnover in the preceding financial year is eligible for availing the facility of LUT provided that the amount received as foreign inward remittance is not less than  Rs. one crore. This means that only such exporters are eligible to LUT facilities who have received a remittance of Rs. one crore or 10% of export turnover, whichever is a higher amount, in the previous financial year.

2. Export under Bond:

Registered persons who do not fulfill the above conditions i.e. who are not eligible to Export under LUT shall have to furnish Bond. Bond is required to be furnished on a non-judicial stamp paper of value as applicable in the respective state.

Bank Guarantee in Bond: Circular No. 4/4/2017 dated 7th July, 2017 provides that bank guarantee should normally not exceed 15% of the bond amount. However, the Commissioner may waive off the requirement to furnish bank guarantee taking into account the facts and circumstances of each case.  If the jurisdictional commissioner is satisfied with the track record of the Exporter than Bond may be furnished without Bank Guarantee.

 

In the latter of undertaking or Bond in Form GST RFD-11 Taxpayer bind himself to pay the tax plus interest u/s 50(1) within a period of:

  • 15 Days after the expiry of 3 Months from the date of issue of the invoice for export, if the goods are not exported out of India.
  • 15 days after the expiry of 1 year from the date of invoice for export, if the payment of such invoice is not received by the exporter in convertible foreign exchange.

Where the goods are not exported within the time specified and the Exporter fails to pay the amount mentioned in sub rule, the export allowed under bond or LOU shall be withdrawn forthwith and the said amount shall be recovered in accordance with the provisions of section 79.But Bond or LOU shall be restored immediately when the person pay the due amount.

3. Value of Bond:

The Bond would cover the amount of tax involved in the export based on the estimated tax liability as assessed by exporter himself. In case the Bond amount is insufficient to cover the tax liability, the Exporter shall furnish a fresh bond to cover such liability.


4. How it would be determined weather goods have been exported or not:

GST Common Portal and system of Custom Department are interlinked and shall transmit information regarding export of goods. Details of Export Invoices filled in GSTR-1 shall be transmitted electronically to System designated by Custom department and custom department will verify with its records weather the goods have been exported or not and send a confirmation to GST Common Portal.

Click here to get Expert Advice or  Support on Export Under GST