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E-way Bill for Intra-State Supplies in Maharashtra from May 1st

E-way Bill for Intra-State Supplies in Maharashtra from May 1st

The Commissioner of State Tax, Maharashtra has issued a notification amending an earlier notification which stated that on or after the 1st April 2018, no e-way bill shall be required to be generated, for the intra-State movement that commences and terminates within the State of Maharashtra, in respect of any goods of any value. As per clause 2 of the earlier notification, the notification shall be in force until further orders are issued.

E-Way Bill

The new notification has amended clause 2 and has fixed an expiry date for the Notification, i.e. 30th April 2018.

This would mean that from 1st May onwards e-way bill will become a requirement for the intra-State movement that commences and terminates within the State of Maharashtra. Already six States-Karnataka, Andhra Pradesh, Gujarat, Kerala, Telengana, Uttar Pradesh has implemented e-way bill system for intra-state movement of goods.

E-way bills will be mandatory for intra-State trade in respect of these six more states- Bihar, Jharkhand, Haryana, Madhya Pradesh, Tripura and Uttarakhand -from April 20.

XaTTaX: Your automated EWay bill compliance is just a click away!

Government advances deadline for GST seller returns for April, May, June

Government advances deadline for GST seller returns for April, May, June

The government has advanced the deadlines for filing of seller forms under the GST (goods and services tax), GSTR-1, for April, May and June, in comparison to those given for previous months.

GSTR-1 for the month of April will have to be filed by May 31. Earlier, 40 days were given for filing these, which would have made June 10 the deadline. Returns for May have to be filed by June 10 and for June by July 10. So, only 10 days after the month ends, against the earlier 40 days.

Abhishek Jain, indirect tax partner at consultants EY India, said businesses take four of five days to close the accounts after the month ends. Leaving them five or six days to file the return.

However, the government has not changed the deadline for filing GSTR-3B. These are to still be filed by the 20th of the following month. The idea is to allow reconciliation between the two forms, GSTR-3B and GSTR-1. According to the original plan, the GST Council had decided to give only 10 days to file GSTR-1, after which GSTR-2, the return for buyers, had to be finalised and filed within the next five days. These were to be then used for filing GSTR-3 forms, to claim credits.

However, the outcry over complicated returns prompted the Council to redo this. GSTR-1 was retained; GSTR-2 and GSTR-3 forms were suspended. In place of GSTR-3 came GSTR-3B, meant for the initial months but continuing.

Also, the government gave 40 days for an assessee to file GSTR-1 after the month in question ended. Since GSTR-2 has been suspended, such reconciliation will enable companies to liase with their vendors to rectify any incorrect recording at their end, Jain said.

However, the issue is why the deadlines have been changed when the group of ministers on the subject, headed by Bihar’s deputy chief minister, Sushil Modi, is trying to bring in single returns.

XaTTaX: Your automated EWay bill compliance is just a click away!

Source: Business Standard
The complete guide to prevent and deal with seizure of goods under E-way bill

The complete guide to prevent and deal with seizure of goods under E-way bill

As e-way bill slowly, but surely comes into application across different parts of the country, states are now planning to step up checking as they suspect they are losing a large amount of revenue.

E-way bill is a considered a vital mechanism to check tax evasion under Goods and Services Tax (GST) and the government has been keen to get the system working. Originally planned for a February 1 roll-out, the site witnessed major technical glitches, prompting the government to take a staggered approach.

E-Way Bill system for all inter-State movement of goods has been rolled-out from April 1, 2018 with the State of Karnataka being the first to make it operational. On April 15, intra-state movement of goods in Gujarat, Uttar Pradesh, Telangana, Andhra Pradesh and Kerala also come under the ambit of e-way bills.

The government on April 13 issued a circular that has laid down the procedure for interception of vehicles carrying the consignment of goods, for checking, detention, release etc. of goods carried in such vehicles.

To prevent detention, it is important that in case of transportation of goods through road, E-way bill needs to be generated before the commencement of movement.

According to the circular, interception etc. of goods and vehicles is to be done by the proper officer authorised by the Joint Commissioner or any other officer specified in the Act. As per Circular No. 3/3/2017 – GST dated 05 July 2017, the proper officer for the purpose of Rule 138B is Inspector of Central Tax.

The guidelines state that the person in charge of the conveyance has to carry invoice or delivery challan along with a copy of e-way bill in physical form or in electronic form. A e-way bill number may be available with the person in charge of the conveyance in form of a printout, SMS or written on an invoice. All these forms are valid forms.

The complete guide to prevent and deal with seizure of goods under E-way bill

The procedure of e-way bill interception and detention/confiscation & release of goods/ conveyances is mentioned below in tabular format:
i. Time limits mentioned in above table to be modified in case of proceedings for perishable or hazardous goodsii. In case if the owner of goods or of conveyance does not make payment within the time specified in GST MOV-11, the title of such goods/conveyance will then vest with the Government and concerned officer will auction the goods and as per Section 130

iii. The above procedure applies for proceedings under the IGST Act

iv. The concerned Central officer to issue the order under the corresponding SGST Act also

v In case of above proceedings initiated for the unregistered person, the concerned officer to create temporary ID on the portal for posting and payment of liability

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The summarized note has been prepared by Deloitte India. 
GST: Sushil Modi-led GoM approves new single-page return

GST: Sushil Modi-led GoM approves new single-page return

A ministerial panel chaired by Bihar deputy chief minister Sushil Modi Sushil Modi : GSThas worked out a new simplified model for goods and services tax (GST) return filing as per which input tax credit could be given on a provisional basis once the supplier uploads the sales invoice. However, the current system of filing the interim return GSTR-3B while paying the tax might continue till a new single-page return is endorsed by the GST Council. The GSTR-3B was to replaced with more comprehensive returns with details

of inward and outward supplies post-June. The idea was to have system of invoice-matching without complexities. The group of ministers (GoM) on Tuesday met about 40 industry representatives and 15 tax experts to discuss simplification of the return filing process.

Meanwhile, six more states — Bihar, Haryana, Jharkhand, Madhya Pradesh, Tripura and Uttarakhand — will launch the electronic way bill (E-Way Bill)  mechanism for intrastate movement of goods above a threshold value from April 20. This means that including the five states that had launched the system on Sunday (Andhra Pradesh, Gujarat, Kerala, Telangana and Uttar Pradesh) and Karnataka which had it running even earlier, 12 states will have the anti-evasion measure rolled out by April 20. The e-way bill system, which allows tracking of consignments with a value above Rs 50,000 beyond 10 km, was rolled out for interstate transport on April 1.

While bulk of the GST assessee base of over 1 crore are yet to register for the e-way bill, the implementation of the system has been rather smooth so far. As many as 10.31 lakh e-way bills were generated on the portal on Monday, out of which 2.60 lakh were at the intrastate level. The e-way bill system is expected to plug revenue leakages of `10,000 crore in business-to-consumer transactions. After the crash in February, the GST Network system was augmented to generate 75 lakh e-way bill a day. Nine states have generated 82% of the total e-way bills so far. Gujarat topped the list of states for intrastate e-way bill generation, followed by Karnataka and Maharashtra.

An earlier model of return filing proposed that input tax credit could be availed simply by uploading of invoices by the seller and subsequent confirmation by the recipient. Based on acceptance by the recipient, the credit could be finalised. Another model was simultaneous uploading of sales/purchase data wherein the buyer would be able to avail credit on filing of purchase details at the invoice level; the taxpayer had to match only data under the mismatch category. As against these, what is being planned now is a third fusion model, under which credit could be extended once the invoice uploaded by the supplier is verified by the purchaser on the GSTN portal. Also, system-based notices may be issued to taxpayers for non-payment of taxes even after availing credit and the credit could be reversed.

“It’s good to see wider consultation with industry bodies and experts on the returns simplification process. Clearly, the government wants to implement the revised system after adequate due diligence this time. However, this process may take some time with possible changes in laws. It seems the new GST returns may only be introduced either in the last quarter or the next year,” said Pratik Jain, leader, indirect tax, PwC. Modi said there was unanimity in the GoM that businesses would have to file only one return every month, instead of GSTR-1, 2 and 3 as was conceived earlier.

Also there was unanimity that there would be no system-based matching and the purchaser would have to verify the invoice uploaded by the seller. Modi said the model for simplified return filing that is being worked out would safeguard the interest of revenue to the exchequer, and avoid inconvenience to taxpayers. “Till then, it’s likely that the current summary return (GSTR 3B) on a monthly basis will continue,” said Jain.

XaTTaX: Cloud and On-Premises Based Return Filing Software 

Source :  Financial Express
FinMin clarifies on return filing by businesses opting for composition scheme

FinMin clarifies on return filing by businesses opting for composition scheme

The finance ministry (FinMin) today said traders who have opted for composition scheme need not file certain details in return form since the reverse charge mechanism is not yet functional.

The GST Council, headed by FinMin Arun Jaitley and comprising state counterparts, has kept the reverse charge mechanism in abeyance till June.

The ministry, in a statement, said doubts are being raised about the manner of filing the quarterly return by composition dealers in Form GSTR-4.

Press: Return Filing GSTR4
“Since auto-population of the details of the inward supplies, including supplies on which tax is to be paid on reverse charge is not taking place, taxpayers who have opted to pay tax under the composition levy shall not furnish the data in serial number 4A of Table 4 of Form GSTR-4 for the tax periods January, 2018 to March, 2018 and subsequent tax periods,” it said in a statement.

Businesses with the turnover of up to Rs one crore can opt for composition scheme under the Goods and Services Tax (GST) which was rolled out from July 1, 2017.

The scheme allows taxpayers to pay GST at a fixed rate of turnover and not to go through the tedious GST formalities.Under the reverse charge mechanism, registered dealers are required to make tax payments in case he procures goods from unregistered businesses.

XaTTaX: Cloud and On-Premises Based Return Filing Software 

Source: ET
GoM to meet stakeholders today to discuss GST return filing process

GoM to meet stakeholders today to discuss GST return filing process

A Group of Ministers (GoM) headed by Bihar Finance Minister Sushil Kumar Modi Sushil Modi : GSTwill be meeting different stakeholders today to devise a simple, single-stage return filing process, to reduce compliance burden and ease procedures for businesses under GST.

Non-Executive Chairman of Infosys Nandan Nilekani, officials from Central Board of Indirect Taxes and Customs (CBIC), along with GST Network (GSTN) Ajay Bhushan Pandey will also be present at the meeting.

The GoM was set up by the GST Council to make the GST return filing process smooth and less complex, especially for the small taxpayers. Despite a couple of consultations with IT experts over the last four months, meetings have remained inconclusive.

In the last meeting in March, the GST Council discussed two alternate models for simplification of return filing. However, there was no definitive view regarding the same. Tax officials have been deliberating whether provisional input tax credit should be provided to businesses and if it should be linked with payment of tax under GST.

“Tax bureaucracy of states and the Centre felt that simplification should not provide room for evasion…the Council was of the view that there should be single return every month, it should be simple, not prone to evasion and (look at) how to simplify it further. So no decision was taken today. The existing system will continue for another three months (till June 30),” Finance Minister Arun Jaitley had said during the last Council meeting.

Currently, tax assessees file only two sets of forms — GSTR3B (summary form) and GSTR1 (outward supply or goods sold).

GSTR3B is a summary form, which a business is supposed to file before the 20th of the following month. However, a taxpayer does not have to provide invoice level information in the form.

The erstwhile plan of return filing through three key forms—GSTR1 (outward supply), GSTR2 (inward supply) and GSTR3 (the final netted out return)—has been temporarily suspended owing to the complexities in the process.

XaTTaX: Cloud and On-Premises Based Return Filing Software 

Source :  MoneyControl
GST to enter Class X ICSE syllabus from 2020

GST to enter Class X ICSE syllabus from 2020

The goods and services tax (GST) is set to make its way into textbooks. The ICSE board has decided to do away GST to enter Class X ICSE syllabus from 2020with the component on value added tax and replace it with GST in the Class X mathematics syllabus.

The Council For Indian School Certificate Examinations (CISCE) said the segment on VAT carrying four to six marks will be replaced with GST from 2020 as the earlier tax regime has been discontinued. The decision on introducing the new chapter was taken last year.

“Since VAT serves no purpose, it has been discontinued. Students who will be promoted to Class X in 2019 will be offered the new chapter and will be tested on it in 2020,” said Sujoy Biswas, principal of Rammohan Mission School.

But students who will appear in the ICSE exam in 2019, will not have to study either VAT or GST.

Nabarun De, principal of Central Modern School in Baranagar added, “The Council is always in favour of upgrading syllabus in the light of current happenings.”

Senior mathematics teachers pointed out that students who will pursue commerce or have commercial activities in mind will benefit from the change. “Even for a layman, it is important to understand the intricacies of GST. The change will help students learn the present indirect tax structure of the country,” said a school principal.

The National Council of Educational Research and Training (NCERT) has decided to include the topics related to GST and demonetisation in the existing syllabus of subjects, such as economics, business studies, accountancy, and political science, minister of state for human resource and development Upendra Kushwaha had informed the Rajya Sabha in August last year. He had added that while publishing the reprinted editions of their textbooks for the academic year 2018-19, NCERT will make the changes.

The reprinted editions of the NCERT books has been updated and relevant issues included. Most CBSE affiliated schools and Kendriya Vidyalayas follow the NCERT curriculum.

Assam Board has introduced GST from the Class XII curriculum while UP Board has decided to include GST in Class X syllabus.

“GST is a new introduction to the country’s tax structure. It is an important topic that is being introduced in MBA programmes, CA, costing and other professional higher study courses. If students have a strong base on the topic then it will help them to learn the topic at higher levels. Directly or indirectly, GST plays a role in our everyday life,” said Vivekananda Mission School principal Sarmistha Banerjee.

In a circular sent to all school heads on Friday, CISCE secretary and chief executive Gerry Arathoon wrote that VAT has become obsolete and has been replaced with GST from the ICSE 2020 Mathematics syllabus. “Considering the above facts the schools are being informed that VAT will not be tested in the ICSE 2019 mathematics syllabus,” reads the circular.

West Bengal Board of Secondary Education (Madhyamik) and West Bengal Higher Secondary Council (HS) are however tight-lipped on introducing GST. Sources said though GST is a revelant topic, it was unlikely to be introduced in either Class X or XII. “A state government directive is mandatory for bringing any change in the syllabus. With the state and centre being at loggerheads, any such decision is hard to be implemented,” a Madhyamik Board source said.

The syllabus which will be taught to the students from the 2019 -2020 academic session is likely to highlight the issue of demonetisation. “Students are still not aware of demonistisation. Introduction of GST in the syllabus will give students a brief idea about the newly introduced tax reforms,” said a teacher. “The ‘one nation one tax’ concept too will be much easily taught,” said another principal.

XaTTaX: Your automated E-Way bill compliance is just a click away!

Source :  The Times of India
Tax department begins verifying pre-GST records

Tax department begins verifying pre-GST records

Taxpayers registered for goods and services tax (GST) have begun receiving notices from the tax department, asking them to produce documents for detailed verification of transitional credits claimed. Pre-GST NoticeThe government had earlier identified top 50,000 assessees in terms of the claims for further analysis. In the GST regime, businesses are allowed to claim credit for central taxes (excise and service tax) paid on the stock bought in the pre-GST regime but sold after July 1, when GST came into existence. However, stunning the government, nearly 9.5 lakh assessees have claimed a massive Rs 1.6 lakh crore as such credits till the December 27 deadline. The government has also held the “unusually high” claim as one of the reasons for GST collections being below expectations. “For verification of the said credit you are, hereby, requested to furnish the copy of Trans-I return along with stock statement and copies of purchase documents for the said stock,” an email sent by the department said. The taxpayers had taken credit in Trans-1 return against the stock as on June 20, 2017, or of the credit lying in the balance as on the same date.

In case the claim is for unutilized credit, a taxpayer has to submit a copy of the Trans-1 return along with copies of returns filed under the excise and service tax regime for last six months in the next two days, the notice said. Further, in case of credit taken against capital goods, the copy of the Trans-I return with copies of purchase invoice and Cenvat credit register have to be furnished for verification. The suspicion of large-scale malpractice prompted the government to initiate an investigation on such claims in September. However, a cursory inquiry failed to find any substantial wrongdoing. Following up, the Central Board of Indirect Taxes and Customs (CBIC) has drawn a year-long timeline for detailed verification of such claims in the phased manner. For instance, businesses have claimed credit for service tax paid on offsite meetings and taxis used by employees even though these are explicitly disallowed in the GST law. Similarly, multiple tax practitioners told FE that businesses have claimed the credit for works contract services in relation to immovable property, which is allowed only for builders as its used in the furtherance of business.

“Many businesses have claimed credit for services which were explicitly barred by courts and tribunals in the previous regime like catering services. However, taxpayers feel that the legality of such issues could be revisited in the GST regime and have gone ahead with their claims,” said Rashmi Deshpande, associate director at Khaitan & Co. She added that in a few cases where contradictory judgments existed in earlier regimes, taxpayers have decided to go ahead with claims in GST.

“The verification process would deny claims pertaining to supplies like rent-a-cab, life insurance, health insurance, goods given as gifts to employees, vendors or anyone else, goods are given as free samples among others,” said Rajat Mohan, a partner at AMRG & Associates. He added that the pressure of revenue collection growth would force tax department to take a rigorous view on the technical reading of the law.

Earlier, the indirect tax department had told construction companies that transitional credit cant be claimed for raw material already used in an under-construction building prior to July 1, and the facility existed only for input material like cement, bricks, steel, etc, carried over to the GST regime. This circular was issued after many builders were found to have practiced this.

XaTTaX: Your automated E-Way bill compliance is just a click away!

Source :  Financial Express
Merchant trade transaction no longer vulnerable to GST: Kerala AAR

Merchant trade transaction no longer vulnerable to GST: Kerala AAR

The Authority for Advance Ruling (AAR) under the GST (goods and service tax) in Kerala held that merchant trade transactions, in which traded commodities never GSTenter the country’s tax jurisdiction, are not liable to the GST as goods are never imported to India.

In merchant trade transactions, a supplier is India procures goods from an overseas supplier and supplies directly to its overseas customer. In such transactions, goods do not come to the country.

Goods are liable to IGST (integrated GST) when they are imported to India and the IGST is payable at the time of import of goods into India, the authority said in its ruling.

“The applicant is neither liable to GST on the sale of goods procured from China and directly supplied to the US, nor on sale of goods stored in the warehouse in the Netherlands, after being procured from China, to customers, in and around the Netherlands, as the goods are not imported into India at any point,” the order said.

According to the GST Act, an advance ruling pronounced by AAR is the binding only on the applicant who has sought the advance ruling and on the officer concerned or the jurisdictional officer in respect of the applicant. This means that an advance ruling is not applicable to similarly placed other taxable persons in the state. It is only limited to the person who has applied for an advance ruling.

“While earlier, such transactions were not subject to VAT or service tax, there was an ambiguity under GST laws. Therefore, this AAR provides relief to industry, particularly in commodity trading where such transactions are quite common,” Pratik Jain, leader – indirect tax at PwC, said.
Jain said while it has been held that the GST is not required to be paid on such transactions, another important question which has not been asked in the application filed for this ruling is as to whether there is a requirement for reversal of input credit of taxes paid on expenses attributable to such non-taxable income.

XaTTaX: Your automated E-Way bill compliance is just a click away!

Source: Financial Express
After e-way bill, government eyes tools to check GST evasion

After e-way bill, government eyes tools to check GST evasion

After deciding to mandate the use of E-Way  Bill to track the movement of goods within five states Andhra Pradesh, Gujarat, Kerala, Telangana and Uttar Pradesh from next week,e-way bill the government is working to introduce other anti-evasion tools to shore up the collection of GST, where it suspects massive leakage is taking place.

On Tuesday, the finance ministry said that intra-state movement of goods in 5 Staes — which account for 61% of the inter-state e-way bill generation — will require the electronic tool from April 15 as part of the planned expansion. E-way bill had become mandatory for movement of goods valued over Rs 50,000 from one state to another at the start of the month.

Sources said in the coming days, the states are planning to step up checking of e-way bills as they suspect that they are losing a large amount of revenue.

Also Read – GST E-way Bill: Objective, Features, and Benefits

On April 16, a committee headed by Bihar deputy CM Sushil Modi will deliberate on ways to reintroduce the reverse charge mechanism, a key anti-evasion tool that was suspended in the wake of protest from traders.

Reverse charge is to be paid by registered GST payers on behalf of small suppliers, who are exempted. The registered dealer or the buyer, who has to pay GST under reverse charge, has to undertake self-invoicing for purchases. While it keeps small businesses out of the tax ambit, SMEs complain that the cost is borne by them and this makes their businesses unviable, although officers believe that the motive behind resistance to blocking reverse charge mechanism is to evade taxes. The government will pay credit to traders against the reverse charge.

“Even under VAT, many states had the tool. But given the concerns we will look at options to ensure that businesses are not impacted and remain viable,” said a finance ministry official. One option is to increase the threshold of daily transactions to keep several small businesses out.

XaTTaX: Your automated E-Way bill compliance is just a click away!

Source: TOI