(GSTmitra-Series-13) 📒 GST in respect of under construction flats etc.

⛳ Press Release by CBEC w.r.t. “Reduced Liability of Tax on complex, building, flat etc. under GST”.

⛳ Construction of flats, complex, buildings will have a lower incidence of GST as compared to a plethora of central and state indirect taxes suffered by them under the existing regime.

⛳ Central Excise duty is payable on most construction material @12.5%. In addition, VAT is also payable on construction material @12.5% to 14.5% in most of the States. In addition, construction material also presently suffer Entry Tax levied by the States. Input Tax Credit of the above taxes is not currently allowed for payment of Service Tax. Credit of these taxes is also not available for payment of VAT on construction of flats etc. under composition scheme. Thus, there is cascading of input taxes on constructed flats, etc.

⛳ As a result, incidence of Central Excise duty, VAT, Entry Tax, etc. on construction material is also currently borne by the builders, which they pass on to the customers as part of the price charged from them. This is not visible to the customer as it forms a part of the cost of the flat.

⛳ The current rate of service tax on construction of flats, residences, offices etc. is 4.5%. Over and above this, VAT @1% under composition scheme is also charged. The buyer only looks at the headline rate of 5.5%. In other cities/states, where VAT is levied under the composition scheme @2% or above, the headline rate visible to the customer is above 6.5%. What the customer does not see is the embedded taxes on account of cascading and sticking of input taxes in the cost of the flat, etc.

⛳ This will change under GST. Under GST, full input credit would be available for offsetting the headline rate of 12%. As a result, the input taxes embedded in the flat will not (& should not) form a part of the cost of the flat. The input credits should take care of the headline rate of 12% and it is for this reason that refund of overflow of input tax credits to the builder has been disallowed.

⛳ Anti-Profiteering Clause: The builders are expected to pass on the benefits of lower tax burden under the GST regime to the buyers of property by way of reduced prices/ installments. It is, therefore, advised to all builders / construction companies that in the flats under construction, they should not ask customers to pay higher tax rate on instalments to be received after imposition of GST.

Regards
CA. SHARMA Praveen
GST Trainer & Consultant
+91 9871530610, 8383073005
www.facebook.com/capraveensh

(GSTmitra-Series-12) 📒 Composition Scheme Under GST

⛳ A registered person, whose aggregate turnover in the preceding FY doesn’t exceed Rs. 75 Lakhs may opt for Composition Scheme and pay tax.
⛳ It would be applicable for all transactions under the same PAN-India bases.
⛳ Composition taxable person shall not be eligible for any Input tax credit.
⛳ CTP shall not collect any tax on supply.
⛳ CTP will issue Bill of Supply instead of Tax Invoice.
⛳ CTP is liable to pay tax on receipts of goods or services from un-registered person.
⛳ CTP is liable to pay tax on receipts of services under RCM.
⛳ No ITC allowed for taxed paid under reverse charge.

⛳ Persons not eligible:
🌴 Effecting inter-state outward supplies.
🌴 Making supply of exempted goods.
🌴 Engaged in supply of any other service except food/restaurant services.
🌴 Making any supply of goods through an e-commerce operator.
🌴 Manufacturer of notified goods.

⛳ The Registered person paying tax under composition scheme is required to pay tax on quarterly basis and also required to file a quarterly return in Form GSTR-4 by the 18th of the month following the end of the quarter.

⛳ The option availed by a registered person shall lapse with effect from the day on which his aggregate turnover during a financial year exceeds 75/50 lakh rupees.

⛳ Person Registered Before GST Regime (Opt for Composition)
🌴 Having Prov. ID shall file an intimation in FORM GST CMP-01 within 30 days from AD.
🌴 Required to file detail of stock from all suppliers (including unregistered) AND Input credit in Return as on 30 June 2017 in FORM TRAN-1.
🌴 Further, detail of stock from all suppliers (including unregistered) AND Inward supply as on 30 June 2017 in FORM GST CMP-03 within 60 days of opting for composition.

⛳ Person Registered Under GST Regime (Opt for Composition)
🌴 Any Person who are not registered under the existing law and applies for registration under GST regime with an option to pay under composition in Form GST REG-01.
🌴 Further, registered taxable person files an intimation to pay tax under composition in FORM GST CMP-02 prior to commencement of FY.
🌴 Further, furnish the statement in Form GST ITC-03 within 60 days (Regular to Composition) of commencement of FY.

⛳ Condition & restriction to Opt for Composition
🌴 Cannot be a Casual Taxable Person or a Non-resident taxable person.
🌴 Goods in stock on transition date must not have been purchased in the course of inter-State trade or commerce or imported from a place outside India or received from his branch situated outside the State or from his agent or principal outside the State.
🌴 If goods held in stock on AD purchased from an unregistered supplier or any notified goods or services or both, then pay tax under RCM.
🌴 Not engage in the manufacture of notified goods during the preceding FY.
🌴 On every notice or signboard mandatory to mention the words “Composition Taxable Person”.
🌴 On top of Bill of Supply mandatory to mention the words “Composition Taxable Person, not eligible to collect tax on supplies”.

⛳ Validity of composition levy (Opt Out from Composition)
🌴 If CTP ceases to satisfy any condition or suo-motu, require to furnish FORM GST CMP-04 within 7 days of occurrence of such event then, shall liable to issue Tax Invoice.
🌴 Proper officer may issue SCN in FORM GST CMP-05 & the recipient gives his reply in FORM GST CMP-06 within 15 days, thereafter the proper officer issue an order in FORM GST CMP-07 within 30 days.
🌴 Further, furnish the statement in FORM GST ITC-01 for the ITC CLAIM within 30 days.

⛳ Rate of Tax
1. Manufacturers or other than manufacturers notified by the govt. (ice-cream, tobacco, pan masala) 1%+1%= 2%
2. Suppliers of food & any human consumption article or drink except alcohol. 2.5%+2.5%= 5%
3. Any other Supplier eligible to opt CS 0.5%+0.5%= 1%

Regards
CA. SHARMA Praveen
GST Trainer & Consultant
+91 9871530610, 8383073005
www.facebook.com/capraveensh

(GSTmitra-Series-11) 📒 READY FOR GST

🌴 GST is finally coming on 1 July-2017.

🌴 Inform your GSTIN / ARN to all suppliers of Goods & Services.

🌴 Obtain GSTIN of all Suppliers/Vendors.

🌴 Start working to maintain quantity details of stock with value and invoices as on 30 June-2017 for claiming credit in GST.

🌴 Make a separate file of those items which are shown in your Unsold stock as on 30.6.2017 e.g. Purchase Bills/ Bill of Entry/ Excise Paying Documents etc.

🌴 Intra-state supply (e.g. Delhi to Delhi Sales), say GST rate @5% Charge CGST@2.5% and SGST@2.5% in Invoice. If address of delivery to different state, then charge IGST.

🌴 Inter-state supply (e.g. Delhi to Gurgaon Sales), say GST rate @5% Charge IGST@5% in Invoice.

🌴 If purchase from un-registered dealer, then pay GST on reverse charge @ rate of goods/services.

🌴 Stock ageing be made to ascertain if any stock is more than 1 year old.

🌴 Make strict follow-up to Collect all the C forms/F Form/ I forms etc.

🌴 Formulate and ready the invoice proforma.

🌴 Take a note of the HSN codes and tax rates of the goods/ services dealing with.

🌴 Matching concept/ Reconciliation will be biggest time-consuming task in GST regime, so start connecting with your suppliers.

🌴 GST / Interest/ penalty or any levy may be paid through RTGS/ NEFT/ Debit Card/ Credit Card Etc. by 20th of next month or 18th of quarter.

🌴 Due Dates for uploading of Returns:
GSTR 1: 10th of Next Month
GSTR 2: 15th of Next Month
GSTR 3: 20th of Next Month
GSTR 4: 18th of Next Quarter (Composite Dealers)
GSTR 9: 31st December of Next F.Y.

🌴 GSTR-1 with invoice level details needs to be filed for the month of July by 5th September, and for the month of August by 20th September. GSTR-2 and GSTR-3 for these 2 months will be filed thereafter.

🌴 Option of revising the return is not available in GST Regime.

🌴 A return furnished without payment of full tax due as per such return shall be treated as invalid return for allowing input tax credit in respect of supplies made by such person.

🌴 Input tax credit is eligible only after filing a valid GST return.

🌴 Plan and build a system for keeping the accounting records updated by every month end.

🌴 Under GST, every registered taxable person is required to maintain correct accounts of the following details at the principal place of business specified in the registration certificate: –
📒 Inward and outward supply of goods and/or services,
📒 Stock of goods,
📒 Input tax credit availed,
📒 Output tax payable and paid,
📒 Tax Invoice/Bill of Supply, Receipt Voucher, Payment Voucher, Refund Voucher, CN/DN,
📒 Electronic Credit Ledger, Electronic Cash Ledger, Tax Liability Register for easy reconciliation.

🌴 Maintaining books and records in electronic form will be ideal and convenient for accurate and timely compliance under GST.

🌴 For Persons whose turnover during the financial year exceeds Rs. 2 crore is required to get the accounts audited by a Chartered Accountant and Submit a copy of the audited annual accounts and a reconciliation statement.

🌴 All above Invoices, Registers, Cash/Bank Statement is required to file GST Return.

🌴 New Registration in GST will be commenced from 25th June.

🌴 Be in regular touch with your GST Consultant.

🌴 Pay special attentions for any Calls/ mails/ messages or communication of your GST Consultant/ Department.

Disclaimer: The above points applies to regular case. It doesn’t mean all the provisions of GST Act is covered. It may be cover some other point on a case to case basis.
Please contact

Regards
CA. SHARMA Praveen
GST Trainer & Consultant
+91 9871530610, 8383073005
www.facebook.com/capraveensh

(GSTmitra-Series-10) 📒 Tax Invoice

⛳ Supplier of taxable goods is required to issue a tax invoice?
🌴 Before or at the time of REMOVAL of the goods where the supply involves movement of goods.
🌴 Before or at the time of DELIVERY of the goods to the recipient where the supply does not involve movement of goods.

⛳ Supplier of services is required to issue a tax invoice
🌴 Before provision of the services.
🌴 After provision of the services but within a specified time (30/45 days).

⛳ Particulars in a ‘Tax Invoice’
According to Rule 1 of GST Invoice Rules, a tax invoice issued by the REGISTERED PERSON shall contain the following particulars:
a. name, address and GSTIN of the supplier,
b. a consecutive serial number, not exceeding 16 characters containing only alphabets and/or numerals, unique for a financial year,
c. DATE of its issue,
d. name, address and GSTIN/ UIN, if registered, of the recipient,
e. name and address of the RECIPIENT and the address of delivery, along with the name of State and its code, if such recipient is UR and where the value of taxable supply is Rs. 50,000/- or more,
f. hsn code of goods or Accounting Code for services,
g. DESCRIPTION of goods or services or both,
h. QUANTITY in case of goods and unit or Unique Quantity Code thereof,
i. TOTAL VALUE of supply of goods or services or both,
j. TAXABLE VALUE of supply of goods or services taking into account discount or abatement, if any,
k. RATE of tax (CGST, SGST, IGST, UTGST or cess),
l. AMOUNT OF TAX charged in respect of taxable goods or services (CGST, SGST, IGST, UTGST or cess),
m. PLACE OF SUPPLY along with the name of State, in case of a supply in the course of inter-State trade or commerce;
n. ADDRESS OF DELIVERY where the same is different from the place of supply;
o. whether the tax is payable on REVERSE CHARGE basis; and
p. SIGNATURE or digital signature of the supplier or his authorized representative.

⛳ In case of exports of goods or services, the invoice shall carry an endorsement?
“SUPPLY MEANT FOR EXPORT ON PAYMENT OF IGST” or “SUPPLY MEANT FOR EXPORT UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF IGST”. Contain the following details:
🌴 name and address of the recipient;
🌴 address of delivery;
🌴 name of the country of destination; and
🌴 number and date of application for removal of goods for export.

⛳ Supplies not exceeding Rs.200/-
A registered person is not required to issue a tax invoice in respect of supply of goods or services or both where the value therein does not exceed a sum of Rs.200/- subject to the following conditions: –
🌴 the recipient is not a registered person; and
🌴 the recipient does not require such invoice,

⛳ Consolidated Bill of Supply
Rule 1 of GST Invoice Rules, consolidated bill of supply shall be prepared by the registered taxable person-
🌴 at the end of each day,
🌴 in respect of all supplies for value of less than rupees two hundred (Rs. 200),

⛳ Insurer, Banking Company, Financial Institution, NBFC and Passenger transport agency
🌴 Optional: Serial No., Address of the recipient.
🌴 Mandatory: supra
Note: Time limit of Issue of Tax Invoice for services is 30 days.

⛳ Goods transport agency transporting goods by road
🌴 Mandatory: supra + Gross weight of consignment, Consignor and Consignee Name, Reg. No. of Vehicle, Details of goods transported, Origin and Destination, GSTIN of person liable to pay tax.

⛳ Revised Tax Invoice
🌴 The Taxable person may issue a revised tax invoice for supplies from the effective date of registration till the date of issuance of registration certificate.
🌴 Issue within one month from the date of registration.
🌴 Such person may also issue a consolidated revised tax invoice in respect of all taxable supplies made to a recipient who is not registered.
🌴 In a transaction of inter-state supply where the value of supply does not exceed Rs.2.50 lakhs a consolidated revised tax invoice is to be issued separately for each of the recipients in a particular State who are not registered.

Regards
CA. SHARMA Praveen
GST Trainer & Consultant
+91 9871530610, 8383073005
www.facebook.com/capraveensh

(GSTmitra-Series-9) 📒 Bill of Supply


⛳ What is Bill of Supply?

🌴 SECTION 31(3)(c) of CGST Act, A registered person supplying EXEMPTED goods or services or both or paying tax under the provisions of SECTION 10 shall issue, instead of a tax invoice, a bill of supply (in lieu of tax invoice) containing the prescribed particulars.

⛳ Particulars in a ‘Bill of Supply’
According to Rule 4 of GST Invoice Rules, a bill of supply issued by the supplier shall contain the following details:
a. name, address and GSTIN of the supplier,
b. a consecutive serial number, not exceeding 16 characters containing only alphabets and/or numerals, unique for a financial year,
c. date of its issue,
d. name, address and GSTIN/ UIN, if registered, of the recipient,
e. HSN Code of goods or Accounting Code for services,
f. description of goods or services or both,
g. value of supply of goods or services taking into account discount or abatement, if any, and
h. signature or digital signature of the supplier or his authorized representative.
Note: Tax Invoice issued under any other act in respect of non-taxable supply shall be treated as bill of supply.

⛳ HIGHLIGHTS of ‘Bill of Supply’?
🌴 bill of supply to be issued by registered taxable person supplying non-taxable goods and/or services.
🌴 bill of supply to be issued by registered taxable person paying amount under the composition levy.
🌴 bill of supply containing prescribed particulars is issued in lieu of tax invoice.
🌴 bill of supply will also be issued by unregistered persons who are not required to pay GST.
🌴 bill of supply will generally contain the similar particulars as in case of tax invoice except that of tax charged.

⛳ When Bill of Supply is not required?
🌴 Rule 4 of GST Invoice Rules, a registered taxable person may not be required to issue bill of supply if the value of the goods or services supplied is < Rs. 200. 🌴 He may be required to issue bill of supply where the recipient of the goods or services requires such bill. ⛳ Consolidated Bill of Supply
Rule 4 of GST Invoice Rules, consolidated bill of supply shall be prepared by the registered taxable person-
🌴 at the end of each day,
🌴 in respect of all supplies for value of less than rupees two hundred (Rs. 200),
🌴 consolidated bill of supply will only cover supplies where bill of supply has not been issued..

Regards
CA. SHARMA Praveen
GST Trainer & Consultant
+91 9871530610, 8383073005
www.facebook.com/capraveensh

(GSTmitra-Series-8) Transitional Provisions related to Stock in hand under GST

Case 8: Trader not registered under any of current laws now registered under GST

⛳ VAT in respect of raw materials, finished/ semi-finished stock held on 30th June, 2017
🌴 Credit of VAT allowed (Conditions-Used for Taxable Supplies, Eligible for ITC in GST).
🌴 Duty paying documents/ Possession of invoice are essential.
🌴 Date of issue of such invoice must be on or after 1st July, 2016.
🌴 GST FORM TRAN-1 to be filed by 28th Sep, 2017.
🌴 The GST FORM TRAN-1 to contain details about the stock held on 30th June, 2017 and about the credit claimed.
🌴 Opening Credit as on 1st July 2017 shall be shown as SGST.

Regards
CA. SHARMA Praveen
GST Trainer & Consultant
+91 9871530610, 8383073005
www.facebook.com/capraveensh

(GSTmitra-Series-7) Transitional Provisions related to Stock in hand under GST

Case 7: Manufacturer/ Service provider not registered under any of current laws now registered under GST

⛳ Excise duty, Additional Excise Duty, CVD and SAD in respect of raw materials, finished/ semi-finished stock held on 30th June, 2017
🌴 Credit of Excise and other related duties allowed (Conditions-Used for Taxable Supplies, Eligible for ITC in GST).
🌴 Duty paying documents/ Possession of invoice are essential.
🌴 Date of issue of such invoice must be on or after 1st July, 2016.
🌴 GST FORM TRAN-1 to be filed by 28th Sep, 2017.
🌴 The GST FORM TRAN-1 to contain details about the stock held on 30th June, 2017 and about the credit claimed.
🌴 Opening Credit as on 1st July 2017 shall be shown as CGST.

Regards
CA. SHARMA Praveen
GST Trainer & Consultant
+91 9871530610, 8383073005
www.facebook.com/capraveensh

(GSTmitra-Series-6) Transitional Provisions related to Stock in hand under GST

Case 6: Service provider registered under Service Tax paying tax at normal rate

⛳ Return filed under Service Tax shows outstanding/ excess/ unutilised balance of input tax credit
🌴 The excess input tax credit reflected in the return filed for period ended 30th June, 2017 to be carried forward under GST.
🌴 GST FORM TRAN-1 to be filed by 28th Sep, 2017. Commissioner may extend this timeline by another 90 days.
🌴 The GST FORM TRAN-1 to specify separately the details about the credit to be carried forward.
🌴 Excess CENVAT Credit (shown in Service Tax return) shall be carried forward as CGST.
⛳ The balance is not allowed to be carried forward in following cases:
🌴 The Credit is not admissible in the GST Law.
🌴 All returns for 6 months have not been duly filed under the Service Tax Law.
⛳Return filed under Service Tax does not show outstanding balance of input tax credit
🌴 No credit shall be carried forward under GST.
🌴 No requirement to file any detail with respect to the stock in GST FORM TRAN-1.

Regards
CA. SHARMA Praveen
GST Trainer & Consultant
+91 9871530610, 8383073005
www.facebook.com/capraveensh

(GSTmitra-Series-5) Transitional Provisions related to Stock in hand under GST

Case 5: Trader registered under VAT

⛳ Return filed under VAT shows outstanding/ excess/ unutilised balance of input tax credit
🌴 The excess input tax credit reflected in the return filed for period ended 30th June, 2017 to be carried forward under GST.
🌴 GST FORM TRAN-1 to be filed by 28th Sep, 2017. Commissioner may extend this timeline by another 90 days.
🌴 The GST FORM TRAN-1 to specify separately the details of stock held on the appointed day.
🌴 In case of capital goods, he will have to submit the declaration specifying:
(a) Amount of credit already availed in the current law.
(b) Amount of credit yet to be availed under the existing law and which he intends to avail under GST.
🌴 Excess VAT Credit (shown in VAT Return) shall be carried forward as SGST.
⛳ The balance is not allowed to be carried forward in following cases:
🌴 The Credit is not admissible in the GST Law.
🌴 All returns for 6 months have not been duly filed under the VAT Law.
🌴 VAT Credit attributable to claims related to sales under Form C, F, E, H or I etc. not to be allowed unless the forms are duly made available.
⛳Return filed under VAT does not show outstanding balance of input tax credit
🌴 No credit shall be carried forward under GST.
🌴 No requirement to file any detail with respect to the stock in GST FORM TRAN-1.

⛳Excise duty, Additional Excise Duty, CVD and SAD in respect of raw materials, finished/ semi-finished stock held on 30th June, 2017
🌴 Credit of Excise and other related duties allowed (Conditions-Used for Taxable Supplies, Eligible for ITC in GST).
🌴 Duty paying documents/ Possession of invoice are essential.
🌴 Duty paying documents/ Possession of invoice are not available (Conditions-Used for Taxable Supplies, Eligible for ITC in GST) – Deemed credit allowed, persons who don’t have excise invoice, will be eligible to take credit in the following manner:
(a) For goods taxable @18% or above – Credit shall be allowed at the rate of 60% of CGST payable on that goods- so if the rate is 18% then credit will be available @5.4% (60% of 9% CGST).
(b) For goods other than above – Credit shall be allowed at the rate of 40% of CGST payable on that goods- so if the rate is 12% then credit will be available @2.4% (40% of 6% CGST).
🌴 Credit in the above Deemed credit scheme will be available only once the said goods are sold and GST paid. It’s like a cash back scheme.
🌴 Deemed credit scheme will go on for 6 tax periods from 1st July, 2017, so stocks lying as on 30th June, 2017 have to be sold maximum upto 31st Dec, 2017. No credit will be available if these goods are sold after 31st Dec, 2017.
🌴 Conditions- Statement containing details of supplies to be submitted each month for 6 months (GST TRAN-2). Documents for procurement of the goods are essential. Goods should not be exempt from excise or nil rated. Stock of goods is stored and easily identifiable.
🌴 Date of issue of such invoice must be on or after 1st July, 2016.
🌴 GST FORM TRAN-1 to be filed by 28th Sep, 2017.
🌴 The GST FORM TRAN-1 to contain details about the stock held on 30th June, 2017 and about the credit claimed.
🌴 Opening Credit as on 1st July 2017 shall be shown as CGST.

Regards
CA. SHARMA Praveen
GST Trainer & Consultant
+91 9871530610, 8383073005
www.facebook.com/capraveensh

Section 1 – Short title, extent and commencement

(1) This Act may be called the Central Goods and Services Tax Act, 2017.

(2) It extends to the whole of India.

Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.