Browsed by
Tag: GST Regime

Government extends IGST, compensation cess exemption under various export promotion plans

Government extends IGST, compensation cess exemption under various export promotion plans

Giving relief to exporters, the government has extended IGST (Integrated Goods and Service Tax) and compensation cess exemptions for goods procurement under certain export promotion schemes till March 2020.

These exemptions have been extended for exporters buying inputs domestically or importing for export purposes under export oriented unit (EOU) scheme, Export Promotion Capital Goods (EPCG) scheme and advance authorization.

EPCG is an export promotion scheme under which an exporter can import a certain amount of capital goods at zero duty for upgrading technology related to exports.

On the other hand, advance authorization is issued to allow duty-free import of inputs, which is physically incorporated in the export product.

The move was aimed at giving relief to exporters as they do not have to pay IGST at the initial point itself. In the GST regime, they have to pay the indirect tax and then seek a refund, which is a cumbersome process.

In a notification, the Directorate General of Foreign Trade (DGFT) has said that exemption from integrated GST and compensation cess under advance authorisation scheme, EOU, and EPCG scheme of foreign trade policy 2015-20 “is extended up to March 31, 2020”.

During April-February of the current fiscal year, exports grew 8.85 percent to USD 298.47 billion, while imports rose by 9.75 percent to USD 464 billion.

The trade deficit has widened to USD 165.52 billion during the 11 months of the current fiscal from USD 148.55 billion compared to the year-ago period.

XaTTaX: Cloud and On-Premises Based GST Filing Software For India

Source: Economic Times

GST: 50 Crore E-Way Bills generated till February, says Govt

GST: 50 Crore E-Way Bills generated till February, says Govt

The Central Board of Indirect Taxes and Customs (CBIC) has confirmed that till 28th February 2019, 50 crores E-Way Bills have been generated through the online portal under GST regime.

“Total no. of e-way bill generated across India crosses 50 crore mark from April 1, 2018, to Feb 28, 2019,” CBIC tweeted.

The Goods and Services Tax Network (GSTN), which is the IT backbone of the GST had earlier said that between September 1st to 18th, over 2,72,58,344 E-Way Bills have been generated in the country.

Under GST rules, ferrying goods worth more than Rs 50,000 within or outside a state will require securing an electronic-way or e-way bill through prior online registration of the consignment.

From April 1, the government had implemented the electronic way or e-way bill system for moving goods from one state to another. The same for intra or within the state movement has been rolled out from April 15.

The number of e-way bills generated from April 1st to till August 31st had crossed 20 crores. The first 10 Crore E-way Bills generated in 83 days while next 10 Crore E-way Bills Generated in 66 days.

From, April this year, the Government is all set to integrate NHAI’s FASTag mechanism from April to help track movement of goods and check GST evasion.

In a further development, the Government is also planning to integrate GST returns to the E-way Bills.

Besides, all these, the Government to form a committee of tax officers to suggest steps to deal with bogus e-way bills as there are many instances of bogus e-way bills and fake invoices have come to the notice of the CBIC since April last year.

XaTTaX: Cloud and On-Premises Based GST Filing Software For India

Source: Tax Scan.
Ministerial Panel Approves Disaster Cess For Kerala Under GST

Ministerial Panel Approves Disaster Cess For Kerala Under GST

A ministerial panel allowed Kerala to levy an additional 1 percent calamity cess on the value of goods and services under the new indirect tax regime.

“Kerala will be permitted to have 1 percent cess on the value of goods and services across all or select items for two years,” state’s Finance Minister Thomas Isaac told reporters after the meeting of group of ministers in Delhi today.

The items on which the additional cess will be levied will be selected by the state, Bihar’s Deputy Chief Minister Sushil Modi, also the panel’s head, said. “If other states urge the Goods and Services Tax Council to allow them to levy this additional cess in case of a calamity, it will decide if the state should be allowed or not.”

If the GST Council gives its approval, Kerala would be the first state to levy a calamity cess and set a precedent for other states, Issac, a member of the Modi-led panel, said.

The 32nd GST Council meeting is scheduled to held on Jan. 10.

The move to seek the council’s approval comes after Kerala sought permission for a state-specific cess to raise additional revenues for the flood-ravaged state. While the central government was not in favour of a state-specific cess, it said a time-bound national disaster cess can not only help Kerala but also be an institutionalized fundraising mechanism for such disasters in any part of the country. The Modi-led panel had in October last year decided to seek states’ views on whether a state-specific or a nationwide “disaster tax” should be levied under the GST.

The council had earlier said the cess will be structured in such a way that only a pre-determined amount will be collected within a specific time limit. If approved, it may see a minor increase in the prices of one or two specifically identified goods, it said.

Relief For Small Businesses

Another panel, headed by Minister of State for Finance Shiv Pratap Shukla, recommended the council to allow dealers under the composition schemes to file GST returns annually but pay tax quarterly.

It also suggested that the composition scheme be extended to all service providers with an annual turnover of up to Rs 50 lakh. Currently, the composition scheme can be availed by manufacturers, traders and restaurant service providers.

The service providers will have to pay a flat GST of 5 percent, Modi said, adding the panel was also of the view that the threshold for registering under the GST regime should be increased from Rs 20 lakh.

Modi, however, said that the committee could not finalise the new threshold. The council will now decide the new exemption threshold for registering under the GST regime.

Delhi suggested that the exemption threshold should be kept at Rs 40 lakh, while Bihar recommended the limit at Rs 50 lakh, Modi said.

The states had suggested the panel to allow taxpayers with an annual turnover of more than Rs 50-60 lakh to pay a fixed tax of Rs 5,000 a year, and businesses with annual turnover between Rs 60 lakh and Rs 75 lakh to pay a fixed tax of Rs 10,000-15,000 per annum.

Also, the group of ministers suggested that 1.5 crore dealers will be given free accounting software, Modi said.

Ease Your Return Filing & Invoice with XaTTaX 


Source: Bloomberg Quint
Govt notifies new annual GST return forms

Govt notifies new annual GST return forms

The government has notified new annual GST return forms, which are required to be filed by businesses registered under the Goods and Services Tax regime by June 30, 2019.

In the annual return forms, businesses have to provide consolidated details of sales, purchases and input tax credit (ITC) benefits accrued to them during the 2017-18 fiscal.

The Central Board of Indirect Taxes and Customs (CBIC) on December 31, 2018, notified form GSTR-9, GSTR-9A, and GSTR-9C.

GSTR-9 is the annual return form for normal taxpayers, GSTR-9A is for composition taxpayers, while GSTR-9C is a reconciliation statement.

Trade and industry bodies had raised several objections on the GST annual return filing forms, which were earlier notified in September last year. Following this, the CBIC has notified the new forms.

AMRG & Associates Partner Rajat Mohan said “it is disheartening to witness that only minor modifications have been made in these forms and all other demands have been rejected. Primary demand of industry was to do away with the requirement of segregating Inputs, input service, and capital goods, which has been outrightly rejected”.

Mohan said the CBIC has limited the preparation of HSN code wise inward summary details only for those supplies which independently account for 10 percent or more of the total supplies. “This would be of some relief to taxpayers,” he added.

Initially, the due date for filing the annual return form was set at December 31, 2018. In view of industry concerns, the government then extended the date till March 31, 2019.

The GST Council in its recent meeting on December 22, 2018, has decided to extend the due date further to June 30, 2019. JD MKJ

XaTTaX: Cloud and On-Premises Based GST Filing Software For India


Source: Times of India
Let’s split the bill: GST Council wants more services unbundled

Let’s split the bill: GST Council wants more services unbundled

You may soon get separate bills for taxable and non-taxable components in bills that include services exempt under the goods and services tax (GST) regime.

The GST Council has decided to extend the unbundling of bills beyond healthcare for all categories of services currently exempt from the tax, such as education.

The proposal considered by the council was for healthcare.

“The view within the council was that the provision is extended to all exempt services,” a government official, familiar with the deliberations of the council, told ET.

The move is aimed at bringing more transparency in billing for consumers as also protecting the government’s revenues.

The GST Council had considered a proposal in respect of hospitals.

While healthcare services per se are exempt from GST except a few such as cosmetic surgery and hair transplant, medicines and consumables attract GST, with some under the maximum retail price regime.

There have been reports of hospitals charging consumers full maximum retail price (MRP) even though they had received discount and not paid full MRP. A bundled bill makes it difficult for consumers — and tax officials — to differentiate between GST paid and non-GST components. Tax officials feel this tax collected often doesn’t reach the government.

Last Saturday, the GST Council examined the suggestion that hospital bills be split between medicines and consumables and hospitalization charges. This would ensure that the tax collected reaches the government.

The council backed the proposal and wanted it expanded to include other such services as well where the similar practice of bundled invoice is followed.


Education services, for instance, could come under the new norm. While core education services are exempt from GST, goods and services clubbed but not incidental to education are taxed. Tax experts said the decision to split the bill would help prevent litigations and disputes.

“The principles governing composite supplies and mixed supplies have certain common elements, while the tax treatment is completely different,” said M S Mani, a partner at Deloitte India. “Hence, breaking down composite supplies, where feasible, into its constituent elements, could be an option to avoid future litigation,” he said.

Experts, however, said the move would require a change in the definition of composite supply.

“Raising one consolidated bill or separate is a commercial decision between the parties involved and also based on the practice being followed in a particular industry,” said Anita Rastogi, indirect tax partner at PwC. “If the government mandates separate billing, one would need to be mindful of the existing definition of composite supply which would still cover the bundled supply concept.”

In other words, Rastogi said, mere splitting of invoices would not achieve the objective. Instead, an amendment in the definition would be required.

XaTTaX: India’s most trusted GST software for filing and E-way bill


Source: Economic Times
Fake bill racket: GST consultant behind the scam

Fake bill racket: GST consultant behind the scam

As officials make new inroads into the massive fake invoice scam, said to be one of the largest in the country, it is now learnt that a tax consultant, Suhail, was behind the racket. Suhail,  a BCom graduate who was a tax consultant for about a decade, allegedly had knowledge on the intricacies of the new taxation system.

Another major player in the case of generating fake invoices to the tune of Rs 1,200 cr is said to be Basha, a scrap dealer. He was among the channels through which the fake bill racket was executed. Officials investigating the case suspect that many other firms might have used this channel to defraud the government by not paying GST, according to investigating officials.

Another accused in the case, identified as Hafizur, was working with Suhail at his tax consultancy.
While the accused have allegedly been running the scam for more than ten months, sources in Bengaluru South GST Commissionerate told The New Indian Express that the first red flag was raised around two months ago. An officer of the department had found some discrepancies in the GST returns filed by one of the fake firms floated

“After it was detected, it was a case of identifying other companies which were involved in this racket. During the ten months, fake invoices were generated using multiple fake companies to generate bills without the actual movement of goods.

The level of routing the invoices and the complexity involved to execute it is staggering,” said sources.
By running the racket, both Suhail and Basha have allegedly made crores in commission for the fake bills.  The extent of the loot by the culprits is currently being assessed.

The accused in the scam reportedly made use of a window set by the Centre for registering new companies under the new GST regime.

Since hundreds of companies had to be registered during the same period, Suhail and others used it to register multiple fake companies and get GST numbers for the same. These companies, formed using fake addresses in various localities of the city, were then used to generate fake invoices for other firms and defraud the government.

The Department is currently tracking other firms which might be part of the racket, sources added.

XaTTaX – World Class Automated eSolution for Return filing and e-Waybill

Source: Indian Express

Central, State officials can act against GST evaders irrespective of jurisdiction: CBIC

Central, State officials can act against GST evaders irrespective of jurisdiction: CBIC

The Central Board of Indirect Taxes and Custom (CBIC) has made it clear that irrespective of assessees assigned under the Goods and Services Tax (GST) regime, officials from the Centre or State can initiate enforcement action against tax evaders and take it to its logical conclusion.


The directive will remove the ambiguity on initiation of enforcement action by the Central tax officers in case of taxpayers assigned to the State tax authority and vice versa. It is also meant to end jurisdictional disputes.

In a communication sent to senior Central tax officials, Mahender Singh, Member, CBIC, said: “It is accordingly clarified that the officers of both Central Tax and State Tax are authorized to initiate intelligence-based enforcement action on the entire taxpayer’s base irrespective of the administrative assignment of the taxpayer to any authority.”

The move will also help in higher revenue collection which is still in the range of 93,960- 1,03,459 crore while the estimate is between 1-10 lakh crore. Anita Rastogi, an Indirect tax Partner at PwC, said that intelligence-based enforcement action has taken a new importance considering that GST revenue has not really seen the increase as expected by the Government coupled with some sector-specific tax evasions being noticed recently. “Businesses would now need to deal with both Centre and State in specific situations,” she said.

The communication further read that the authority which initiates such action is empowered to complete the entire process of investigation, issue show cause notice, adjudication, recovery, the filing of appeals etc. In other words, if an officer of the Central tax authority initiates intelligence-based enforcement against a taxpayer administratively assigned to the State tax authority, the officers of Central tax authority will not transfer the said case to its State tax counterpart and will themselves take the case to its logical conclusion. The same system will follow for State tax authorities.

The Goods and Services Tax Network (GSTN) is making changes in the IT system to facilitate the new mechanism to work smoothly. So far there is nearly 1.14 crore business registered under assessees.

The whole issue arose due to the present system for distribution of administration. Of the total number of taxpayers below 1.5 crore turnover, all administrative control over 90 percent of the taxpayer’s vests with the State tax administration and 10 percent with the Central tax administration. In respect of the total number of taxpayers above 1.5 crore turnover, all administrative control is divided equally in the ratio of 50 percent each for the Central and the State tax administration. The division of taxpayers in each State has been done by computer at the State level based on stratified random sampling and could also take into account the geographical location and type of the taxpayers, as may be mutually agreed.

For the new registrants, the mechanism says that they shall be initially divided one each between the Central and the State tax administration and at the end of the year, once the turnover of such new registrants is ascertained, those units with turnover below 1.5 crore shall be divided in the ratio of 90 per cent for the State tax administration and 10 per cent for the Central tax administration and those units above the turnover of  l.5 crore shall be divided in the ratio of 50 per cent each for the State and the Central tax administration.

XaTTaX – World Class Automated eSolution for Return filing and e-Waybill

Source: TheHinduBusinessLine


Companies may have to show ledgers for claiming GST credit of over Rs 25 lakh

Companies may have to show ledgers for claiming GST credit of over Rs 25 lakh

Companies that availed of more than Rs 25 lakh credit under the goods and services tax (GST) regime in lieu of levies paid under the previous system will soon have to give details of their purchase ledgers for six months before the new tax regime was rolled out.

The government will soon bring out a new ‘credit growth return’ form. This comes after a detailed analysis of the top 50,000 taxpayers showed a sharp rise in the closing balance of credit of many at the end of June last year compared with September 30, 2016. These top 50,000 taxpayers have claimed about Rs 1.5 lakh crore worth of credit.
GST was rolled out on July 1 last year. “The form would be notified soon,” a government official with knowledge of the development told ET.

Companies that have shown more than a 25% jump in credit between October 2016 and June 2017 will also have to share these details. This form will be restricted to central GST as states captured purchase details under the value added tax (VAT) regime.

The move implies that tax authorities are looking to turn up the heat as GST collections remain far from buoyant. There is a worry that companies may have claimed more credit than they were entitled to, leading to suppressed GST revenue.

Most states, barring six, have suffered a revenue shortfall and will have to be compensated by the Centre. GST collections in August stood at Rs 93,960 crore, less than Rs 96,483 crore in July.

The deadline for availing past credit expired on September 30. GST replaced multiples state and central taxes such as excise duty, service tax, countervailing duty, value added tax, purchase tax, and octroi. The government had in December last year issued a warning to industry to amend any inflated returns filed for credit in lieu of taxes paid prior to the rollout of GST.

Under the transition rules, traders and retailers are allowed to claim a credit of 60% of taxes paid earlier against CGST or SGST dues where the tax rate exceeded 18%. In cases where the GST rate was below 18%, only 40% deemed credit was allowed against CGST and SGST dues.

The government also allowed refund of 100% excise duty on goods that cost aboveRs 25,000 and bore the brand name of the manufacturer along with a serial number such as televisions, refrigerators or car chassis. Tax experts say instead of prescribing another form, tax authorities should rely on data captured under the VAT regime.The government can surely verify the purchase details with respect of opening credit claimed by businesses as on July 1, 2017, and there might be some genuine concerns around possible excess credit claimed in specific cases.

GST Ready Invoicing Software – Generate GST Compliant Invoice

Source: economictimes.indiatimes
Alert! TDS, TCS under GST next month; Know what is the difference

Alert! TDS, TCS under GST next month; Know what is the difference

Surprising industries, the government has now taken one step ahead in its Goods and Services Tax (GST) drive. It has brought in section 51, which is about tax deducted at source (TDS) and section 52 about tax collection at source (TCS) under the regime. The government has kept October 01, to implement this new provision under the GST law. This new development is expected to make it mandatory for e-commerce companies in collecting taxes at the source and also to help in tracking down sellers on platforms like Amazon and Flipkart. Further, it will also give a boost to government companies in deducting GST at a specified rate. Both TDS and TCS were kept in abeyance as the government wanted their newly GST which was launched on July 01, 2017, to settle down.

Now that less than two weeks are left, let us understand about what is TDS and TCS.


Who is required to deduct TDS? 

  • a department or establishment of the Central Government or State Government
  • local authority
  • Governmental agencies
  • such persons or category of persons as may be notified, by the Central or a State Government on the recommendations of the Council

When is it required to be deducted? 

Where the total value of supply under a contract exceeds Rs 2,50,000 then a supplier of taxable goods or services is liable to deduct TDS. The rate at which TDS can be deducted is set at 2% under GST.

It needs to be noted that, TDS deductors, whether or not separately registered, are required to compulsorily register in GST irrespective of threshold limits.

TDS certificate

A deductor must furnish to the deductee a certificate in Form GSTR-7A (made electronically available), within 5 days of crediting the amount so deducted to Government, mentioning details like contract value, the rate of deduction, the amount deducted and an amount paid to the Government.

Amount of TDS shall be paid to the Government by the deductor within 10 days after the end of the month in which such deduction is made.

As for the deductee can claim credit, in his electronic cash ledger, of the tax deducted and reflected in the return of the deductor furnished under Section 39(3).

The due date for filing GSTR-7 is on 10th of the following month.


Who is required to collect? 

Every electronic commerce operator (“operator”), who is not an agent, is eligible to collect TCS at the prescribed rate when taxable supplies are made through it by other suppliers and the consideration with respect to such supplies is to be collected by the operator.

Companies like Amazon, Flipkart, Jabong, Snapdeal, Shopclues, etc. are the ones operating in India. As per the law, it is compulsory for every e-commerce operator register in GST irrespective of threshold limits. Further, it is mandatory for every person who supplies goods/services through an e-commerce operator to get registered under GST.

The rate of TCS is levied at 1% under CSGT, 1% under SGST and 2% under IGST.

An operator must pay the amount of TCS to the government within 10 days after the end of the month in which such collection is made.

Furthermore, the operator is required to furnish a monthly statement in Form GSTR-8 by the 10th of the following month. Not only this, they are also required to file an Annual statement in Form GSTR-9B by the 31st of December following the end of every financial year.

Every tax collected by the operator must be credited to the cash ledger of the supplier who has supplied the goods/services through the operator. Later the supplier can claim credit of the tax collected and reflected in the return by the Operator in his [supplier’s] electronic cash ledger.

Ease Your GST Retrun Filing & Invoice with XaTTaX- GST Software

Source: Zee Business
About 1,800 businesses apply for migration from VAT to GST regime

About 1,800 businesses apply for migration from VAT to GST regime

About 1,800 businesses that were registered under the earlier VAT and service tax regime have applied for migrating to the GST regime.

1,800 businesses apply for VAT to GST regime

The GST Council, in its meeting in July, had allowed businesses with provisional GST ID to migrate to the new GST regime.

The Central Board of Indirect Taxes and Customs (CBIC) had then asked these taxpayers to approach the jurisdictional nodal officer of the Central or state government on or before the August 31, 2018, along with provisional ID, registration number under the earlier law, reason for not migrating in the system, along with the contact details.

“About 1,800 businesses have migrated to GST regime availing the latest migration window. The number could go up as the state tax officers are still compiling data,” an official told PTI.

Currently, over 11.5 million businesses are registered under the GST regime, of which 6.37 million have migrated from the erstwhile service tax and VAT regime, and over 5.1 million are new registrants.

ALSO READ – CBIC to weed out a million assessees from GST tax net

“The migration window since November 2016 and closed after roll out of GST on July, 2017. Many taxpayers would have migrated when the window was open initially before GST roll-out. Hence the turnout for migration would have been less this time,” the official added.

The process of migration of existing assessees to the GSTN had started in a phased manner from November 2016.

Once a business migrates to the GST regime, it is given a provisional ID. After that, in the second stage, the business has to log in to the GSTN portal and give details of its business, such as the main place of business, additional place of business, directors and bank account details.

Thereafter, the business has to verify its registration through digital signature, or by generating an electronic verification code (EVC).

Many businesses, who were earlier registered with excise, service tax, VAT regime, had not completed the second stage of the migration process.

In the VAT regime, businesses with turnover upto Rs 500,000 were exempt. However, in Goods and Services Tax (GST) regime, the exemption threshold has gone up to Rs 20 lakh. Hence, all businesses who were registered under the erstwhile Indirect tax regime, need not migrate to the GST regime.

Ease Your GST Filing & Invoice with XaTTaX GST Software

Source: Business Standard