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India market is coming back post GST: PepsiCo CEO Indra Nooyi

India market is coming back post GST: PepsiCo CEO Indra Nooyi

The New York-headquartered firm has witnessed organic revenue growth of 7 percent outside North America during the quarter, which was fuelled by continued strong performance in developing and emerging markets.

PepsiCo’s-CEO-Indra Nooyi

Global beverage major PepsiCo is seeing demand coming back in the Indian market post GST and the company has registered “very solid mid-single-digit growth” in the October-December quarter, its Chairman and CEO Indra Nooyi said.

The beverages major would also continue to franchise its bottling operation to its local partners in countries including India, as per its strategy, Nooyi said in a post-earnings concall.

“Post the GST, we are seeing the India market coming back,” Indra Nooyi said.

The New York-headquartered firm has witnessed organic revenue growth of 7 percent outside North America during the quarter, which was fuelled by continued strong performance in developing and emerging markets.

This was “led by double-digit growth in Vietnam, Turkey, Thailand, Philippines and Argentina; high single-digit growth in Russia and China; and very solid mid-single-digit growth in Mexico and India,” said Nooyi.

On being asked about franchising of its bottling operation globally to its partners such as Varun Beverages in India, she said:”I think internationally, when we find a very good bottler and we believe that they can run the business better than us, we will refranchise the business.” The company also said that it gained from an asset sale in India and refranchising in Jordan, which comes under its Asia, Middle East and North Africa (AMENA) division.

“Positively impacted by the Jordan refranchising gain, productivity gains and a gain on an asset sale in India,” the company said in its earnings press statement.

Source :  Money Control

GST law: Who are the persons eligible to opt for composition scheme?

GST law: Who are the persons eligible to opt for composition scheme?

GST Law model

There’s an event management company that organises events in different states. Does it need to register in all states?

The Government through its ‘FAQ tweets’ has clarified that in case of event-related services, a supplier shall be required to obtain the GST registration in the state where the event is held only if such person supplies services from such state. Where the services are provided from a different state, the supplier can charge IGST, treating the location of the event as the ‘Place of Supply’.

Therefore, the need for the event management company to obtain the GST registration in the state where the event is held would need to be determined based on whether they supply any services from such state or not under GST law.

A company has a registered office in Delhi. It needs to purchase goods from one registered manufacturer located in West Bengal and supply them on IGST to their customer in Haryana. To save time and freight charges from West Bengal to Delhi, the company wants to dispatch the goods directly to the location of his customer in Haryana. Please advise on how to issue the invoice keeping in mind that the supplier located in West Bengal will be directly sending the goods to Haryana. Can the company issue the IGST invoice from Delhi to Haryana and send the same to the transporter?

Under the GST law, if a supplier of goods instructs its vendor to supply products directly to a third person, it shall be deemed that the supplier of goods had received them from its vendor at its principal place of business and the tax is to be determined accordingly.

Based on the facts, the principal place of business of the company is Delhi, for which they have obtained the GST registration. Though the vendor would ship the goods directly from its location in West Bengal to the customer’s location in Haryana, it would be deemed that the company has first received the goods in Delhi. Subsequently, the supply of goods by the company shall be treated as supply from Delhi to Haryana, which shall attract integrated tax.

Also read: What is an e-way bill and why is it important?

Who are the persons eligible to opt for composition scheme under the GST law? Also, I want to know if the liability to pay taxes under Reverse Charge Mechanism is covered under the Composition scheme?

The GST law provides an option to a supplier of goods having an annual aggregate turnover not exceeding Rs10 million to opt for payment of GST under composition scheme.

Similar, option has also been provided to a person engaged in the supply of food/beverages (other than alcohol). However, this option is not available for other service providers. This option is also not available if the supplier is engaged in undertaking inter-State supplies.

The GST payable under reverse charge mechanism is not covered under composition scheme. If a person registered under composition scheme procures any goods/services in respect of which the GST is payable under reverse charge mechanism, the person shall be required to pay the GST at applicable rate and not based on rates prescribed under composition scheme.

What would be the GST liability in case of auction of goods? If the bidder is located outside the state of the auction, will IGST be charged or CGST+SGST?

The ‘Place of Supply’ of goods would be the location of goods at the time at which the delivery of goods terminates for supply to the recipient. If the intention of the parties is to transfer the property in goods during the auction or the goods would be sent to the premises of the recipient with the supplier bearing the risk while the goods are in transit. In the former case, CGST and SGST would be levied while in the latter case, IGST would be levied in case inter-state movement is involved.

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

(The author of this article is Amit Bhagat, Tax partner, PwC India. Aditya Khanna, associate director, PwC )
GST e-way bill software set to be overhauled

GST e-way bill software set to be overhauled

E-way bill : GST

The government is looking at complete overhaul of the electronic-way-bill (e-way-bill) system under the goods and services tax (GST) regime instead of tinkering with its structure or scrapping it altogether, sources in the know told DNA Money.

According to him, the e-way invoice could be relaunched by end of this month or early next.

The GST Council, the apex decision-making body on issues related to the new unified indirect tax, had made e-way-bill mandatory for movement of goods over Rs 50,000 between states from February 1. However, due to troubles encountered by businessmen while generating the e-way invoice, the decision was rolled back on the first day itself.

Currently, the GST Network (GSTN) that maintains the digital infrastructure on which various platforms are being developed for consumer services, is working on making e-way-bill “simpler and better”.

“They are already working on these things, on making it (e-way-bill) simpler and better but they don’t want to announce the date till they are 100% confident that it will work (without any glitch). The government is thinking of changing the e-way-bill system completely, only the back-end – the hardware and software. They will alter only the way it (e-way-bill) is stored on the portals, how it interacts with invoices and other such things,” said the source.

According to him, there could be some tweaks on how the e-way invoice was being processed internally.

Also read: What is an e-way bill and why is it important?

“They are looking at what gets stored, how much time it takes to generate the bill and what the printing options are. All these are being examined very closely,” said the source, who did not want to be named.

The source said the government had ruled out scrapping of e-way-bill as they believe it will help plug leakages in GST revenues, which had fallen for three consecutive months till December.

“It is unlikely that the government will scrap the e-way-bill. They seem to feel that e-way-bill is going to prevent a lot of evasions. They will never give up on e-way-bill. We are certainly going to have e-way-bill. It’s a question of time as to when it starts now,” said the source.

Currently, the way the software is designed is very cumbersome and confusing for traders to generate e-way-bill for large dispatches and single products that need to be transported in many trucks.

M S Mani, partner, Deloitte India, recommended a “staggered rollout” to enable a phased transition to a new system. “The GST Council could consider a staggered rollout of the e-way-bill by initially mandating it for interstate transactions and on a successful rollout, extend it for intrastate movements. In respect of intrastate movements, a threshold of Rs 2 lakh could be mandated initially, which on glitch free introduction could progressively be reduced to Rs 1 lakh and thereafter to Rs 50000. This would enable a phased transition to a new system with better monitoring, both from a business and government perspective,” he said.

Another tax expert, who spoke off-the-record, said most countries that have introduced GST do not have e-way-bill.

“There is no concept of e-way-bill anywhere else (in the world). Everywhere, it is just the invoice that goes with the truck. Many countries do not even have an invoice-matching system as tax evasion is much lower in those countries,” he said.

Source :  Zee Business
GST refund delays brought on working capital constraints which hit exports in October

GST refund delays brought on working capital constraints which hit exports in October

GST Refund

The implementation and refund delays under Goods and Services Tax (GST) caused working capital constraints for firms, which in turn might have hurt their exports in October 2017, said a study by RBI staff. But various initiatives by the government since then appear to have significantly alleviated exporters’ concerns which got reflected in the exports growth pick up in November and December 2017, it said.

A 10% increase in the Working Capital/Sales ratio led to a 1.8% decrease in the exports growth according to the RBI staff study. Sectors with high working capital to sales ratio took the biggest hit in exports growth between March and October. For example- Petroleum and Gems and Jewellery have the highest working capital/sales requirement and they were hit the most during October. Meat, Dairy and Poultry on the other hand have low working capital requirement and saw one of the smallest decrease in exports growth.

GST implementation was marred by infrastructure snags and implementation delays, which led to changing the date of filing tax returns for July multiple times. As per the implementation of the tax regime, exporters were supposed to get 90% of the input tax (GST on supply of services or goods to a taxable person) refund within seven days of filing their returns. However, there had been significant delays in receiving the input tax credit which could have adversely affected the working capital of firms.

Also read: Filing GSTR-1 return using XaTTaX GST Software

The impact of the implementation issues is more evident and severe for the exporters, the study said. Prior to GST, exporters were upfront exempted from paying any duties. But under GST, they are required to first pay the tax and later claim refunds. This constrained their working capital, at least once after the regime switch, since exporters would have had to adjust to the new tax regime. Under GST, they can avail 90% of the input tax refund within 7 days, but only after the goods are exported out of India.

Post dismal performance of exports in October, November 2017 , exports jumped by 30.55% This is one of the highest growth rates observed in the exports in the last two years.The staudy attributed this to fast-tracking of GST refunds and exports sops and lower base of export growth in November 2016.

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


Source :  The Economic Times
Filing GSTR-1 return using XaTTaX GST Software

Filing GSTR-1 return using XaTTaX GST Software

GSTR-1 Filing through XaTTaX GST Software

With GST filing around the corner, it becomes necessary for you to understand how to file your GSTR-1 return with simple steps using our state-of-the-art GST filing and reconciliation solution – XaTTaX.

  What is GSTR-1 return?

 GSTR-1 return needs to be filed by all individuals, who are registered under GST. The taxpayer needs to provide details of the outward returns (sales), upload and file the invoices with GSTN. The due date to file this return is 10th October 2017.

What do you need to report in your GSTR-1 return?

 As outlined earlier, GSTR-1 is a sales return and every tax payer has to mandatorily report the following set of information in this return:

  • Invoice summary that includes invoice types, credit notes and advance receipts
  • Summary of documents issued
  • Summary of HSN/SAC
  • Details of the turnover, which should be provided only once.

Now, let’s understand the procedure for filing the GSTR-1 return using XaTTaX:

  1. Login to XaTTaX as an accountant.

XaTTaX GST Software Login Page

Figure 1

  1. From the Home page, select the GSTIN that you want to access to direct you to the Dashboard.

Note: You can switch between different GSTINs from a single legal entity.

  1. In the Dashboard, you can view the analytics pertaining to various returns such as GSTR-1, GSTR-2, apart from other useful information such as list of activities, returns dates and XaTTaX updates.

XaTTaX GST Software Dashboard

Figure 2

  1. In the GSTR 1 – DATA IMPORT screen (appears when you click GSTR 1 -> Import in the left section), click Browse to choose the desired file and then click Import to import the GSTR-1 data in Tally or XaTTaX format (excel).

XaTTaX GST Software Dashboard GSTR 1

Figure 3

  1. Click Classify to classify the invoices into various categories such as B2B, B2C, etc and then click Submit for Approval.

 The invoices get routed to the manager for approval.

XaTTaX GST Software GSTR 1 Outward Transaction

Figure 4

  1. Once the manager approves the invoices, you can proceed to save, submit and file the GSTR-1 returns with GSTN.

This ends the process of filing the GSTR-1 return using XaTTaX, which is quite simple and ensures 100% security.

Also read: How to File GSTR 3B in Details and download GSTR 3B- Format.

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

GST return simplification to end traders’ woes likely before March 31

GST return simplification to end traders’ woes likely before March 31

GST Return Filing

The GST Council will most likely come up with simplified GST return system before March 31 as it has decided the return filing under the old system of GSTR- 1, 2, 3 and 3B only until March 31. According to a report by PTI, the chairman of GST Network (GSTN) will seek suggestions from industry and traders’ bodies on simplification of the returns filing.

According to him, the GST Council is planning to come up with a new system as soon as possible. The entire process of deliberating upon the new and simplified systems by the Group of Ministers (GoM) of the GST Council is likely to get expedited in next two weeks.

Post the implementation of the GST on July 1, traders have been complaining about complex GST return filing system and regular glitches on the GST Network. In November, with an aim to simplify the system to increase compliance, the Council not only extended the deadlines for filing returns but also temporarily removed the filing GSTR-2 and GSTR-3. The deadline for filing GSTR-3B was extended to March 31 and GSTR-1 to 20th of every succeeding month.

Also read: GST: What is an e-way bill and why is it important?

However, the council is planning to simplify the process even further. According to Finance Minister and head of GST Council Arun Jaitley, the process of simplification is culminating a particular direction. Earlier, it was reported that the GST Council was going to conduct a meeting via video conferencing to decide on the issue before the Budget 2018, however, it did not take place.

After the 25th meeting, Arun Jaitley gave a sneak-peek into the new process under consideration. He said that under the new system GSTR 3B would be continued along with invoices of supply. He said that supply invoice will automatically reflect the supplies, and hence, the process of filing GSTR-1 and GSTR-2 can be subsumed. However, there are other methods under consideration too by the council.

Source: Financial Express
GST Council recommends granting relief from GST on services provided by the Resident Welfare Associations (RWA) to their Members

GST Council recommends granting relief from GST on services provided by the Resident Welfare Associations (RWA) to their Members

Resident Welfare Associations (RWA) GST

In its 25th Meeting held on 18th January, 2018, the GST Council had recommended several measures granting relief from GST on a number of goods and services. One of the important reliefs granted by the Council is to enhance the limit of contribution made by members of a Resident Welfare Associations (RWA) for the purpose of exemption from GST.

The Council had recommended that the limit may be enhanced from Rs.5,000 to Rs 7,500 per month per member.

Services provided by RWAs(unincorporated body or a registered non-profit entity) to their members were hitherto exempt against contribution of up to an amount of five thousand rupees per month per member. Requests were received from several quarters to enhance the contribution limit of five thousand rupees per month per member for exemption.

Under GST, the tax burden on RWAs will be lower for the reason that they would now be entitled to Input Tax Credit (ITC) in respect of taxes paid by them on capital goods (generators, water pumps, lawn furniture etc.), goods (taps, pipes, other sanitary/hardware fillings etc.) and input services such as repair and maintenance services. ITC of Central Excise and VAT paid on goods and capital goods was not available in the pre-GST period and these were a cost to the RWA.

The Notifications giving effect to the above recommendations of the GST Council have been issued and have come into force on 25th January, 2018. Accordingly, from 25 January 2018, the services provided by Resident Welfare Association to its members against contribution-up to an amount of Rs 7,500per month per member have been exempted from GST.

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GST: What is an e-way bill and why is it important?

GST: What is an e-way bill and why is it important?

e-way bill xattax

What is an e-way bill ?

An e-way bill is a document that a person in charge of a conveyance carrying any consignment of goods of value exceeding Rs 50,000 is required to carry. It is a mandatory document that is generated from the GST Common Portal by registered persons or transporters who undertake movement of goods. A transporter needs to generate the e-way bill before the movement of goods commences.

Is there any scheme under GST for payment of taxes by small traders?

Composition levy is an alternative method of levying tax that is designed for small taxpayers whose turnover is up to Rs 10 million. This scheme is optional and is meant mainly for small traders, manufacturers and restaurant owners. However, it is not available to a trader engaged in inter-state supplies. Further, a trader opting to discharge GST liability under the composition scheme will not be eligible to claim input tax credit of GST paid on inward supplies.

In the pre-GST regime, a special economic zone (SEZ) customer was required to provide Form A-2 to claim exemption from payment of service tax. Will a service provider be required to obtain a similar form from his customers for not charging GST?

Under the pre-GST regime, a service provider was not required to charge service tax on his invoice for services rendered to an SEZ customer if the latter provided Form A-2 wherein he was authorised to receive specified services from such service providers.However, under GST law, there has been a change of procedure.

Under this law, supplies to SEZs have been treated as zero rated subject to execution of Letter of Undertaking/Bond by the service provider. GST law doesn’t require the SEZ customer to provide any specific form (such as Form A-2 under the service tax law).

If the GST rate on outward supply is less than the GST rate on inputs, what will be the treatment of input tax credit that gets accumulated? If refund is available, then at what time can one apply and within what time will one get it?

GST law contains a specific provision wherein the supplier of goods or services can apply for refund of input tax credit accumulated on account of inverted duty structure, except for a few categories.The refund can be applied for before the expiry of two years from the date on which the claim for refund arises. Further, the supplier would be granted provisional refund within seven days from the receipt of acknowledgment from the tax department.A person runs a grocery shop wherein he supplies goods worth Rs 50, Rs 200 and Rs 250 to three customers. Under the GST regime, can he issue a consolidated tax invoice for all the supplies made at the end of each day?Under GST law, a separate tax invoice is not required to be issued in case the value of goods or services is less than Rs 200, subject to the condition that the recipient is not a registered person and he does not require such an invoice. In such cases, the registered person can issue a consolidated tax invoice for such supplies at the close of each day for all such supplies. But for supplies of Rs 200 or Rs 250, A will have to issue separate invoices.

Also read: GST: E-way bill must for interstate goods movement from 1 February.

At the time of filing GSTR-1, does one have to file invoice-wise details or can one file consolidated details if the supplies are made to unregistered persons?

GST law allows a registered person to file the details of outward supplies in a consolidated manner in cases of intra-state supplies made to an unregistered person or inter-state supplies to unregistered person where the invoice value is up to Rs 250,000.


GST runs into e-way bill bump; truckers say it was a disaster waiting to happen

GST runs into e-way bill bump; truckers say it was a disaster waiting to happen

The crash of the e-way bill system on the day of its launch was a disaster waiting to happen because sufficient trials were not carried out, say transporters and courier services on the crucial link required to transport goods in the country under the new Goods and Services Tax regime. “The system crashed along expected lines. Nobody was able to generate an e-way bill. Lakhs of trucks across the country were stranded on Thursday till the evening,” said All India Motor Transport Congress core committee chairman Bal Malkit Singh.

The e-way bill system, a method to track the movement of goods worth over Rs 50,000, was rolled out on Thursday after 15 days of trials. However, as soon as it was launched, the system crashed under the load of 2-3 lakh e-way bills generated in an hour, forcing the government to defer its implementation. This left the government red-faced as officials had said the system was equipped to handle the expected load of 5-6 lakh inter-state e-way bills a day.

With the government putting off the rollout for the inter-state system, goods are being moved across the country without an e-way bill, paving the way for easy tax evasion. “A GST regime without an eway bill system is impotent,” said SP Singh, senior fellow at Indian Foundation of Transport Research and Training. He said trials should have started before the unified indirect tax regime’s rollout on July 1. “It was postponed to October because the system was not ready. Even after pushing it further to February, the site has crashed.” Massive tax evasion has been going on till January 31, he added.

The electronic bill has to be generated by transporters on the GSTN, the technology backbone of the GST. The system was developed by the National Informatics Centre (NIC) and its implementation is being handled by the GSTN, which also faced criticism when the system it developed for the GST crashed multiple times close on the heels of the unified tax regime’s rollout. “We requested the government long ago to ensure enough time to test the system. We wrote to the GSTN many times that eway bill load would be very high. In cases of express service like ours, we have high volumes of small value shipments,” said Express Industry Council of India (EICI) COO Vijay Kumar.

EICI told NIC in January-end about the problems that could arise from faulty implementation, he added. “But NIC went ahead with it anyway. Our hope is that before they go live next time that they will ensure they have the capacity to handle the high volume of eway bills,” Kumar lamented. He said the first day of the rollout was a disaster as a lot of shipments could not be moved. “The logjam on the first day has negatively affected businesses, although it is difficult to quantify the exact loss. Even though the government has deferred the implementation, the message may not have reached all the officials on the ground. This leads to confusion among transporters, suppliers and consumers,” said Jaspal Singh, partner at transport consultancy firm Valoriser.

GST Council decided to advance the implementation of the e-way bill, expecting it to check GST evasion and put to rest the worries of different states that they were losing out on GST revenues. GST collections picked up momentum in December to touch the Rs 86,703 crore mark, reversing the decline over the preceding two months. Total GST collections in November had slipped for the second straight month to Rs 80,808 crore, from over Rs 83,000 crore in October.

Also read: GST: E-way bill must for interstate goods movement from 1 February.

In September, the collections crossed Rs 92,150 crore. GSTN CEO Prakash Kumar said the government has extended the trial run for the system. Meanwhile, as many as 13 states voluntarily implemented intrastate e-way bill system on February 1, though the scheduled date for the rollout was June 1. Revenue secretary Hasmukh Adhia had said states which have notified e-way bill operations from February 1 will have to make required changes. However, confusion prevails over intra-state goods movement.

According to transporters, Gujarat has said it will start the e-way bill system from February 20 and Uttarakhand from February 10, while Karnataka has an operational e-way bill system. There is no clarity from the other states. Intrastate transport of goods accounts for 60-65 per cent of all goods transported in the country, while interstate contributes 35-40 per cent.

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

Source :  Business Today
Budget 2018: Fiscal deficit target miss due to GST shortfall: Arun Jaitley

Budget 2018: Fiscal deficit target miss due to GST shortfall: Arun Jaitley


Union finance minister Arun Jaitley sought to justify the fiscal deficit target miss with the shortfall of goods and services tax (GST) and other factors, including lower surplus transferred by the Reserve Bank of India (RBI) and telecom sector.

Jaitley said in 2017- 18 the central government will be “receiving GST revenues only for 11 months” instead of 12 months. “This will have a fiscal effect,” he said in the post-Budget press conference on Thursday.

The finance minister, in the Budget, projected a higher fiscal deficit of 3.5% of GDP for 2017-18, as against the target of 3.2%. The fiscal deficit is the amount of excess spending over revenue. The government has raised spending by 10% (to Rs 24.42 lakh crore) in this Budget, and postponed the deficit target.

Also read: Union Budget 2018 to be India’s first post implementation of GST

Revenue secretary Hasmukh Adhia, said, “GST revenue collection will fall short by Rs 50,000 crore.”

S D Mazumdar, former chairman of Central Board of Direct Tax, an apex body of earlier indirect tax, said, “The financial year continues to be of 12 months (April-March), while the Budget presentation has been advanced by a month. So, the contribution of GST in total indirect tax collection in this financial year will be for nine months (July-March), and that of Central Excise and Service Tax (pre- GST) for three months (April- June)”.

There have been too many revisions too frequently, in the past seven months.

“I expect GST revenue buoyancy in next year, provided it attains certainty and stability. Besides, GSTN (the IT backbone) must be fully operational without glitches,” he said.

As per the Budget document, total revised estimates for expenditure in 2017-18 are Rs 21.57 lakh crore (net of GST compensation transfers to the states) as against the Budget Estimates (BE) of Rs 21.47 lakh crore. The government has revised the estimated net borrowing in Budget for the current fiscal from Rs 3.5 lakh crore to Rs 4.79 lakh crore.

Jaitley said he would accept key recommendations of the Fiscal Reform and Budget Management Committee. The recommendations are related to the adoption of the debt rule and to bring down the central government’s debt-to-GDP ratio to 40%. “The government has also accepted the recommendation to use fiscal deficit target as the key operational parameter,” the minister said.

Direct tax buoyancy used in the fiscal 2019 Budget is 1.25, lower than 1.74 in fiscal 2018. But indirect tax buoyancy Union used in fiscal 2019 is 1.66 higher than 0.82 in fiscal 2018.

Sunil Kumar Sinha, principal economist at India Ratings, said, “This is plausible because GST collections in fiscal 2019 will be for 12 months as against 11 months in fiscal 2019 (three months of excise, customs, etc and eight months of GST). Disinvestment target of Rs 80,000 crore appears achievable, provided the capital markets remain buoyant.”

Also read: Union Budget 2018: Confederation of Indian Industry (CII) seeks easier GST compliance procedures in Budget.

Although the revenue growth assumed in the Budget at 14.63% looks likely, the expenditure growth at 10.12% seems to be an underestimate. This may make the fiscal deficit target of 3.3% feasible.

However, in case of any deviation from the budgeted estimates, analysts believe the government like in the past can cut the capital expenditure to achieve the fiscal deficit target.


Source: DNA