(GSTmitra Series-2019-“7”)

📒9 Facts You Must Know about the New GST Limit of Rs40 lakh

⛳ Next Year:
🌴This limit is applicable from FY 2019-20 onward, i.e., for financial year starting from 1 April 2019.

⛳ Goods, Not Services:
🌴The limit is applicable only for sale of goods.
🌴For service providers limit continues to be Rs20 lakh for all states except for special states where it is Rs10 lakh.

⛳Not for Interstate Sales:
🌴The limit is not applicable if you are selling goods inter-state, i.e., from one state to another.

🌴GST being a dual tax (Central and state), the limit for turnover will have to be changed in both the Acts.
🌴This will have to be done for each state in Central Goods and Services Act, 2017 as well.

🌴Section 24 of GST Act makes it compulsory to register in certain circumstances, and this Section is not amended.
🌴Hence, if a small businessman is registered due to that, he will have to continue with the registration.
🌴Exporters and those selling on websites like Flipkart, Amazon, Snapdeal will have to continue with their registration.

⛳No Clarity on Service Income:
🌴If a person, who is selling goods, has even small service income like rent for neon signs or product placements at his shop, it is not clear whether the limit of Rs. 20 lakh or Rs. 40 lakh will apply to him.
🌴For example, a person may have sales of Rs25 lakh and rental income of Rs5 lakh, will he be covered by the new exemption limit?
🌴Since increase in limit is for goods only and there no separate limit for goods and services for aggregate turnover, once registered, GST has to be charged on all outward supplies whether goods or service.

⛳Turnover Calculation:
🌴Section 22 of GST Act uses the word aggregate turnover (taxable goods plus taxable services plus exempt/nil rated goods plus exempt/nil rated services) while describing persons who are liable for registration.
🌴Hence, small shop-owners will have to see their turnover in totality before deciding.
🌴Even for as basic an issue as the limit for registration , what was the need to have so much complications.

⛳GST Paid Becomes Cost:
🌴All GST paid on purchases will become cost to the person and he cannot charge any GST on outward supplies, i.e., sales.

⛳Draconian Consequences:
🌴On top of all this, please remember Section 17(5)(i), which says that if you decide that tax is not payable but GST department asks for tax and you lose in appeal, you may not be eligible for input tax credit on purchases.

(GSTmitraSeries-Advance Ruling-“4”) 📒 AAR WEST BENGAL 📒 IN RE: RITES LIMITED


⛳ Dated:- 21-12-2018
⛳ 27/WBAAR/2018-19 Case No. 28 of 2018


🌴 Rate of GST – construction of railway siding -r Sl. No 3(v)(a) or Sl No 3(xiii) of Notification no 11/2017-CT(Rate) dated 28.06.2017 – Held that:- The scope of work, as outlined in the Applicant’s agreement with DVC, is that of works contract, as defined under section 2(119) of the GST Act, fit to be called an ‘original work’ within the meaning ascribed to the term in para 2(zs) of Notification No. 12/2017-CT (Rate) dated 28/06/2017, and pertains to ‘railways’, provided it is meant for public carriage of passengers or goods.

🌴 Whether the phrase “public carriage of passenger or goods” prevents a private siding from being included in the definition of ‘railways’ has repeatedly come up for judicial scrutiny. The courts generally held that the phrase ‘public carriage of passengers or goods’ cannot be construed in such manner as to exclude from the ambit of ‘railways’ the sidings built and owned by organizations other than the government.

🌴 DVC, a public sector undertaking, is the owner of the railway siding being built. It is meant for carriage of coal and oil fuel to RTPS. The purpose of the carriage of goods is, therefore, not recreation, but producing public goods like electricity. It is, therefore, not excluded under section 2(31)(ii) of the Railways Act, 1989 – The construction of the private siding that the Applicant refers to, therefore, pertains to ‘railways’.

🌴 Ruling:- Construction of a private railway siding for carriage of coal and oil fuel to Raghunathpur TPS, as described in the agreement between the Applicant and DVC, is a composite supply of works contract taxable @ 12% under Serial No 3(v)(a) of Notification no 11/2017-CT(Rate) dated 28.06.2017.

(GSTmitra Series-2019-“6”) 📒Outcome of 32nd GST Council Meeting

⛳Threshold limit increased to 40 Lakhs
🌴Effective April 1, the GST exemption threshold has been raised from Rs 20 lakh to Rs 40 lakh. For hilly states and those in the North East, the threshold has been doubled to Rs 20 lakh.

⛳Power to states
🌴Now states will be able to choose if they want to keep the GST exemption limit at Rs 20 lakh or Rs 40 lakh, Jaitley said.

⛳Composition limit increased to 1.5 cr from the present 1 cr
🌴The existing Composition Scheme turnover threshold raised to Rs 1.5 crore in preceding FY.
🌴Scheme effective from April 1, 2019.
🌴 Special Category States to decide in 1 week about the composition limit in their respective states.

⛳Quarterly payment and Annual Return
🌴Composition tax payers will pay tax quarterly, but file return annually (with self declaration).

⛳Composition scheme for services
🌴Those providing services or mixed supplies (goods and services) with a turnover in preceding FY up to Rs 50 lakhs will now be entitled to avail composition scheme.
🌴 Applicable for those who are not eligible for the presently composition scheme for goods.

⛳Rate for services under composition scheme @ 6%
🌴Compounding rate for services under composition scheme is fixed at 6 percent (3% cgst + 3% sgst).

⛳ Free Accounting and billing software for small taxpayers

⛳ RealEstate & Lotteries
🌴 A committee has been set up to consider real estate & lotteries GST rates, a consensus is yet to be achieved.

⛳ Calamity cess by Kerela @1%
🌴GST Council decides Kerala levy 1% cess for 2 years on intra-state supply

(GSTmitraSeries-Advance Ruling-“2”)

⛳ Dated:- 21-12-2018
⛳ 29/WBAAR/2018-19 Case No. 27 of 2018


🌴 Classification of supply – rate of tax – Composite Contract or Works Contract? – tender received from the Indian Railways for retro-fitment of Twin Pipe Air Brake Systems on wagons – principal supply – Twin Pipe Air Brake Systems or the supply of services of fitting these goods to the wagons?

🌴 Held that:- The contract referred to by the Applicant is that of a composite supply within the meaning of Section 2(30), where the Twin Pipe Air Brake Systems are the Principal Supply as defined under Section 2(90) ibid. The entire contract value is, therefore, taxable at the rate applicable for supply of Twin Pipe Air Brake Systems – Twin Pipe Air Brake System is classifiable under Tariff Head 8607 21 00 [Parts of Railway.. ..Air Brakes and part thereof] which is taxable @ 5% under Serial No. 241 of Schedule I of Notification No. 01/2017 – CT (Rate) dated 28/06/2017 with no benefit of refund of the unutilized input tax credit (as per TRU Clarification issued under F.No.354/1/2018-TRU dated 25/01/2018).

🌴 Ruling:- The Applicant’s contract for retro-fitment of Twin Pipe Air Brake System on Railway Wagons is to be treated as Composite Supply, where the Twin Pipe Air Brake System is the Principal Supply.

🌴 Twin Pipe Air Brake System is classifiable under Tariff Head 8607 21 00 and is taxable @ 5% [in terms of Serial No. 241 of Schedule I of Notification No. 01/2017 – CT (Rate) dated 28/06/2017] with no refund of the unutilized input tax credit [as clarified in TRU Clarification issued under F.No.354/1/2018-TRU dated 25/01/2018].

(GSTmitraSeries-Advance Ruling-“1”)

⛳ Dated:- 24-12-2018
⛳ MAH/AAAR/SS-RJ/14/2018-19


🌴 Public charitable and religious trust – scope of business – scope of supply – main object of the Appellant trust is to spread the knowledge of the Jain Dharam and advancement of teachings of Paramkrupaludev Shrimad Rajchandra – whether the activities carried out by them would fall under the definition of business as defined under the Section 2(17) of the CGST Act, 2017? – registration under the provisions of the CGST Act, 2017 and the MGST Act, 2017 – sale of spiritual products which are incidental and ancillary to main charitable object.

🌴 Held that:- the definition of ‘business’ under the CGST Act is wide enough to include trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activities. The term ‘trade’ is a comprehensive term which covers the activity of buying, selling or exchanging goods or services. The terms ‘trade and commerce’ by themselves mean the buying or selling goods or services between people. The charitable trust may be formed with the fundamental objectives of carrying out spiritual activity and salvation. But it also, at the same time, sells goods and services under the auspices of the trust.

🌴 The trust sells various goods and services to the people desiring to buy them and such an activity by itself forms a part of the objective of the trust – The main activity or object of the trust includes trade and commerce and as the definition of ‘business’ under the CGST Act includes the words ‘trade and commerce’ it can be said that the appellant is engaged in supply of goods and services and is therefore liable to get itself registered.

🌴 The appellant sells goods and services for consideration and its various activities come within the ambit of definition of ‘supply’ – it is already held as how the appellant can be said to be engaged in the business. Therefore, the said supply of spiritual products like books, CDs and DVDs are in the nature of supply in the course of business.

🌴Specific exemption from GST is given to charitable institutions registered u/s.12AA of the IT Act, 1961. It can be gathered that the intention of the legislature is to tax all the activities of supply goods and services by charitable trust except those specifically exempted. This is with the background that charitable institutions qua their activities of charity do not lend themselves to any specific concession or exemption from the definition of ‘supply’ or ‘business’ or ‘taxable person’. The very fact that certain services have been carved out and given out a special treatment makes it clear that all trade and commerce transaction of selling books, statutes, CDs and DVDs etc. done commercially for consideration come within the broad ambit of ‘business’ under the CGST Act.

(GSTmitraSeries-2019-“5″) 📒Change in GST Rate (Services) as Recommended by 31st GST Council Meeting

🌴 Service supplied by banks to basic saving bank deposit (BSBD) account holders under Pradhan Mantari Jan Dhan Yojna (PMJDY) shall be exempted.
🌴 Air travel of pilgrims by non-scheduled charter operations for religious pilgrimage facilitated by by the Government of India under bilateral arrangements attract the same rate of GST as applicable to similar flights in economy class (i.e. 5% with ITC of input services).
🌴 GST rate on cinema tickets above Rs. 100 shall be reduce from 28% to 18% and on cinema tickets upto Rs. 100 from 18% to 12%.
🌴 GST rate on third party insurance premium of goods carrying vehicles shall be reduced from 18% to 12%.
🌴 Services supplied by rehabilitation professionals recognized under rehabilitation council of India act, 1992 at medical establishments, educational institutions, rehabilitation centers established by Central Government / State Government or Union Territories or entity registrations under section 12AA of the Income-tax-Act shall be exempted.
🌴 Services provided by GTA to Government departments / local authorities which have taken registration only for purpose of deducting tax under Section 51 shall be excluded from payment of tax under RCM and the same shall be exempted.
🌴 Exemption on services provided by Central or State Government or Union Territory Government to their undertaking or PSUs by way of guaranteeing loans taken by them from financial institutions is being extended to guaranteeing of such loans taken from banks.
🌴 To clarify that with effect from 31st January 2018 degrees / diploma awarded by IIMS under IIM Act, 2107 will be exempt from GST.
🌴 To clarify that the services provided by IFC and ABD are exempt from GST in term of provision of IFC Act , 1958 and ADB Act, 1996.
🌴 To clarify the West Bengal that the services provided by Council / Board of Primary / Secondary / Higher secondary Education of conduct of examination to his students are exempt.
🌴 To clarify that “printing of pictures” falls under service code “998386: photographic and videographic processing services” of the scheme of classification of services attract GST @ 18% not under “998912 Printing and reproduction services of recorded media , on a fee or contract basis” which attract GST @ 12%.
🌴 To clarify leasing of pumps and reservoirs by the OMCs to petrol pump dealers is a mixed supply and the Licence Fee Recovery (LFR)charged foe the same shall be leviable to GST @ 28% the rate applicable to pumps. Leasing of land and buildings alone with the equipment shall fall under heading 9972 (real state services) and attract GST rate of 18%.
🌴 To clarify that the incentives paid by RBI to Bank under “Currency Distribution and Exchange Scheme “(CDES) are taxable.
🌴 To clarify under section 113(3) of CGST Act , 2017 that scope of entry for multi-modal transport with GST rate of 12% inserted w.e.f. date 26.07.2018, covers only transport of goods from a place in India to another place in India, that is only domestic, multi-modal transport.
🌴 To clarify that the nature of business establishment making supply of food, drink and other articles for human consumption will not determine whether the supply by such establishments is a supply of goods or services. It will be rather depend on the constituents of each individual supply and whether same satisfies the conditions / ingredients of a “composite supply” or “mixed supply”.
🌴 To clarify that GST is exempt on supply of food and drinks and educational institution when provided by institution ifself to its students, faculty and staff and is leviable to GST of 5% when provided by another person based on a contractual arrangement with such institutions.
🌴 To clarify that the banking company is liable to pay GST on the entries value of services charge to fee charged to customers whether or not received via business facilitator or the business corresponded.
🌴 To issue a clarification to Food Corporation of India (FCI) that the service provided by godown owner is case of lease with services, where the godown owner, besides leasing the warehouse , undertakes to carry out activities of storage and preservation of stored food grains, is the services of storage and warehousing of agricultural produce and the same is exempt.



(GSTmitra Series-2019-“4”) 📒 Change in GST Rate (Goods) as Recommended by 31st GST Council Meeting Applicable w.e.f. 1-1-2019

⛳ Change in GST Rate- 28% to 18%.
🌴 Monitors and TVs of upto screen size of 32 inches.
🌴 Digital Cameras and Video Camera Recorders.
🌴 Power bank of Lithium ion Batteries. (Note: Lithium ion batteries are already at 18%)
🌴 Video games consoles and other games and sports requisites falling under HSN Code 9504.
🌴 Re-treaded or used pneumatic tyres or rubber.
🌴 Pulleys, transmission shafts and cranks, gear boxes etc. falling under HSN Code 8483.

⛳ Change in GST Rate- 28% to 5%.
🌴 Parts and accessories for the carriages for disabled persons.

⛳ Change in GST Rate- 18% to 12%.
🌴 Articles of natural cork.
🌴 Agglomerated cork.
🌴 Cork roughly squared or debagged.

⛳ Change in GST Rate- 18% to 5%.
🌴 Marble rubber.

⛳ Change in GST Rate – 12% to 5%.
🌴 Walking Stick.
🌴 Natural Cork.
🌴 Fly ash blocks.

⛳ Change in GST Rate – 12% to NIL.
🌴 Music Books.

⛳ Change in GST Rate- 5% to NIL.
🌴 Vegetables, frozen, branded and put in a unit container.
🌴 Vegetables provisionally preserved, but unsuitable in that state for immediate consumption.

⛳ Miscellaneous Changed in rates.
🌴 Rate of 5%/18% to be applied based on transaction value of footwear.
🌴 Uniform GST rate of 12% on FIBC.
🌴 Exemption from GST on supply of gold by nominated agencies to exporters of article of gold jewellery.
🌴 Exemption from IGST/Compensation Cess on vehicles imported for temporary purposes under the Custom Convention on the temporary importation of Private Road Vehicles (Carnet de Passages-en-douane).
🌴 Exemption from GST proceeds received by Govt. from auction of gifts received by President, PM, Governor or CM of a State and Public Servants, the proceeds of which is used for public or charitable cause.

(GSTmitra Series-2019-“3”) 📒RCM on Security Services w.e.f. 1.1.2019


🌴RCM on Security Services has been introduced in GST by the Government vide Notification No. 29/2018-Central Tax (Rate) dated 31.12.2018.

🌴W.e.f. 01.01.2019, any registered person receiving Security services (services provided by way of supply of security personnel) from any person other than a body corporate is required to pay GST on reverse charge basis.

🌴TDS deductor and Composition taxpayers are not required to pay GST on RCM basis.

🌴If any registered person is receiving security services from any security agency (other than body corporate) he is required to pay GST on RCM basis.

🌴Note that government had issued notification on 31-12-2018 regarding under compulsory reverse charge by recipient of service.

🌴In other words:
If you receive any Invoice DATED on or after 01-01-2019 then, Please inform the Security Service provider (other than Body Corporate), not to charge GST in the Invoice. As you are liable to pay GST on the same under the compulsory reverse charge

(GSTmitra Series-2019-“2”) 📒 Notifications released on 31-Dec-2018 as recommended in 31st GST Council Meeting

⛳ NO need to furnish Bank Account at the time of New GST Registration.
🌴 Time limit extended to 31-Jan-2019 for tax payers who are not migrated in GST.
🌴 Time limit for GSTR-3B & GSTR-1 for newly migrated taxpayers extended to 31-Mar-2019.
🌴 Time limit for GSTR-3B & GSTR-1 for newly migrated taxpayers extended to 31-Mar-2019.
🌴 Exempt supplies made by Government Departments and PSUs to other Government Departments and vice-versa from TDS u/s 51.
🌴 Exempt supplies made by Government Departments and PSUs to other Government Departments and vice-versa from TDS u/s 51.

⛳ Rule 12(1A) of CGST Rules, 2017 – Grant of registration to persons required to deduct tax at source or to collect tax at source.
🌴 A person applying for registration to collect tax in accordance with the provisions of section 52, in a State/UT where he does not have a physical presence, shall mention the name of the State/UT in PART A of the application in FORM GST REG-07 and mention the name of the State/UT in PART B thereof in which the principal place of business is located which may be different from the State/UT mentioned in PART A.

⛳ Rule 45(3) of CGST Rules, 2017 – ITC-04 (Job Work).
🌴 The details of challans in respect of goods dispatched to a job worker or received from a job worker or sent from one job worker to another during a quarter shall be included in FORM GST ITC-04 furnished for that period.

⛳ Electronic Invoice.
🌴 “Provided also that the signature or digital signature of the supplier or his authorised representative shall not be required in the case of issuance of an
Rule 46 (Fifth Proviso) Tax Invoice electronic invoice
Rule 49 (Third Proviso) Bill of Supply electronic bill of supply
Rule 54 (2) [Banking/FI/NBFC] Consolidated Tax Invoice
Rule 54 (4) [Passenger Transportation Service] Ticket
in accordance with the provisions of the Information Technology Act, 2000.

⛳ Rule 109B of CGST Rules, 2017 – Notice to person and order of revisional authority in case of revision.
🌴 (1) Where the Revisional Authority decides to pass an order in revision under section 108 which is likely to affect the person adversely, the Revisional Authority shall serve on him a notice in FORM GST RVN-01 and shall give him a reasonable opportunity of being heard.
🌴 (2) The Revisional Authority shall, along with its order under section 108(1), issue a summary of the order in FORM GST APL-04 clearly indicating the final amount of demand confirmed.

⛳ Rule 138E of CGST Rules, 2017 – Restriction on furnishing of information in PART A of FORM GST EWB-01.
🌴 No person shall be allowed to furnish the information in PART A of FORM GST EWB-01 in respect of a registered person, whether as a supplier or a recipient, who has not furnished the returns for a consecutive period of 2 months.

⛳ Amendments in Forms RDF-01, RFD-01A, GSTR-9, 9A, 9C.
🌴 We will start a series specially on Annual Return and Audit under GST in due course.

⛳ Late Fees Waiver.
🌴 Form GSTR-3B, GSTR-1 & GSTR-4 Late Fee Waived for the tax period Jul-17 to Sep-18 if filed between 22-Dec-2018 to 31-Mar-2019.

Q. Those who filed their GSTR-1 till 21-Dec-2018, Can they amend it after 22-Dec-2018?
Q. What about the Late Fees paid by taxpayers upto 21-Dec-2018?

⛳ FORM GST ITC-04 (Job Work).
🌴 The due date for submitting FORM GST ITC-04 for the period July 2017 to December 2018 shall be extended till 31.03.2019