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GST Audit is not an avoidable Compliance, Chartered Accountant ensures checks and balances: ICAI President

GST Audit is not an avoidable Compliance, Chartered Accountant ensures checks and balances: ICAI President

GST Audit is not an avoidable compliance. GST Audit by a Chartered Accountant ensures maker checker concept thereby detecting inconsistencies, lapses, errors and ambiguities, if any, in complying with the provisions of GST law, said the ICAI President CA. Nihar N. Jambusaria.

The ICAI President said that, he met key Government functionaries to discuss matters related to contribution of accounting profession and its increasing role in economy. Our meeting with Smt. Nirmala Sitharaman, Hon’ble Union Finance and Corporate Affairs Minister was held to discuss our representation regarding the removal of requirement of audit and certification of reconciliation statement by a Chartered Accountant under CGST Act. We, besides other points, apprised that GST Audit is not an avoidable compliance. GST Audit by a Chartered Accountant ensures maker checker concept thereby detecting inconsistencies, lapses, errors and ambiguities, if any, in complying with the provisions of GST law.

The ICAI also submitted that Audit should not be seen as a cost to the taxpayer, rather it is an investment for him, the benefits of which are reaped over a period of time. The taxpayer is able to take corrective actions for irregularities/lapses detected during the audit thereby saving avoidable costs in terms of interest and penalties.

Further, audit also helps the taxpayers in saving on litigation expenses as errors are noticed and addressed in time. In this meeting, CA. Rajendra Kumar P., Chairman, GST and Indirect Taxes Committee also joined us. In this direction, CA. Babu Abraham Kallivayalil, Chairman, Professional Development Committee also met Finance Minister and Members in Parliament CA. Thomas Chazhikadan, CA. Suresh Prabhu, CA. Narain Dass Gupta.

He also added that, These meetings provided us the opportunity to discuss our professional matters with the dignitaries and reinstate our position as a partner in nation building. Two virtual meetings with the Secretary MCA and Jt. Secretary MCA were also held to apprise them about the networking guidelines and the proposed amendments in Industrial Training framework.

Source: TaxScan.

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GST Council to issue new tax norms for real estate

GST Council to issue new tax norms for real estate

Federal indirect tax body the Goods and Services Tax (GST) Council will on Tuesday announce new rules on how far builders can make use of credit for taxes paid on raw materials and services in settling their final tax liability as the sector moves to a new tax regime from 1 April.

The Council has designed a formula to allow builders to take advantage of the tax credits on their books as best as GST principles will allow. Policymakers want to give relief to builders to the extent possible as unused credit will either push up the cost of the property or impact the bottom line of builders, explained a government official, who asked not to be named.

The GST Council had decided on 24 February to lower the tax rate on under-construction residential properties from an effective 12% to 5% and on under-construction affordable houses from an effective 8% to 1%. The new tax structure does not allow builders to use credits for taxes paid on raw materials to be used for settling part of their final tax liability.

The new rules to be announced on Tuesday will specify under what circumstances sale transactions initiated in the current tax regime but concluded after 1 April will be eligible for credits on taxes paid on raw materials and services. It will clarify on the tax rates applicable and the availability of tax credits in a host of scenarios including where the builder has paid taxes on raw materials but has either not started construction or has only half-completed the construction. These rules were necessitated as home buying is often a lengthy affair while the new tax rate kicks in from a specific date. The move is significant considering that many builders are grappling with project delays which are likely to continue beyond 1 April.

“We had extensive discussions on the impact of the new tax regime on the real estate industry. The new formula for utilization of credit during the transition period takes into account the fact that unlike other industries, real estate projects have a long gestation time,” the official quoted above said on condition of anonymity.

For builders, the change in the tax regime is a challenging situation. Currently, an unutilized tax credit is an asset on the builder’s books. The moment that becomes unusable, it becomes an expense and has to be shown accordingly, explained Ved Jain, former president of the Institute of Chartered Accountants of India (ICAI). Disallowed tax credits could thus affect builders’ bottom line and even valuation.

Also, under property sale deals, customers are liable to pay the property price plus GST at the applicable rate. In the case where houses were booked earlier but the sale is to be completed after 1 April, buyers will insist on paying only 5% GST, while developers may prefer to utilize the input tax credit available to them and charge the higher tax rate prevailing now.

“Rules on a transition to the new tax regime should address such scenarios to prevent civil disputes,” said Jain. “It is essential to frame modalities for the rate reductions in the real estate sector in a manner that is beneficial to both the real estate business and the consumers with clarity on transition provisions,” said M.S. Mani, Partner, Deloitte India.

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Source: live mint
ICAI mandates UDIN for GST and Tax Audit Reports

ICAI mandates UDIN for GST and Tax Audit Reports

The Institute of Chartered Accountants of India (ICAI) has announced that in the second phase, the Unique Document Identification Number ( UDIN ) would be mandatory for all the GST and Tax reports.

An announcement made by the Institute said that “it has been made mandatory as per the Council decision was taken at its 379th Meeting held on 17th – 18th December 2018 in the following phases, (i) All Certification done by Practicing CAs w.e.f. 1st February 2019. (ii) All GST & Tax Audit Reports w.e.f. 1st April 2019 and (iii) All other attest functions w.e.f. 1st July 2019.

“Since 1st February 2019, all certificates issued by Chartered Accountants had been made mandatory. Now in 2nd phase, w.e.f 1st April 2019, UDIN is being made mandatory for GST & Tax Audit Reports. Members are requested to make a note of above schedule of mandating UDIN and also adhere to the same while conducting Bank Audits,” ICAI said.

Practicing CAs have to register at UDIN portal ( to obtain UDIN. To authenticate the documents by various Regulators/Banks/Authorities/Other Stakeholders, practicing CAs have to provide some financial figures and details which are found in the certificate issued.

Further, the ICAI clarified that for generating UDIN, no certificates are required to be uploaded on the portal. For Process, FAQs, and helpdesk you may visit

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Source: Tax Scan


GST site down since Saturday

GST site down since Saturday

GST site

Within two months after the biggest tax reform rolled out in the country, the portal of GST (Goods and Services Tax) is ‘experiencing some issues’ and has reportedly crashed. Experts said the site had been taken down on Saturday for thirty minutes at around 2 pm but it is still dysfunctional.

Users access the website of GST to file their returns and with the taxpayers across the country sitting before their computers to submit it, the shutdown can have severe consequences. “People can’t download the forms from the site and the ones who can, are not able to use it properly,” said CA Julfesh Shah.

“People faced the same trouble during the last date of filing Income Tax returns on July 31,” said CA Anand Taori.

Ashok Chandak, former president of Institute of Chartered Accountants of India (ICAI), said, “Last date for filing GST return was August 20 and since it is Sunday, practically Saturday was the last date to file the return.”

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Source :  The Times of India
ICAI Sets Up Desks To Help Traders With GST

ICAI Sets Up Desks To Help Traders With GST

GST help desk

Chartered accountants’ apex body ICAI has set up desks to help small businessmen and traders on Goods and Services Tax (GST), which is set to be rolled out from July 1.

ICAI GST Sahayata Desks have been made operational, without any charge, at all major cities to facilitate small businessmen, traders, shopkeepers and public at large.

The Institute of Chartered Accountants of India (ICAI) said these desks would be made operational at around 200 locations in different part of the country.

Among others, these desks would create basic awareness on GST, inform individuals about the benefits and help them in migration to the new system.

“The GST Sahayata Desks would be operational w.e.f May 28, 2017 till September 30, 2017 at pan India level,” it said in a release today.

The GST would replace multiple taxes system from July 1, and it would also boost economic growth in the country because of development of common market, ICAI President Nilesh S Vikamsey said.

CA’s have important role in implementation of GST

CA’s have important role in implementation of GST

Chartered accountants have important role to play in the implementation of Goods and Services Tax (GST), said Chitra Kulkarni, additional commissioner of sales tax, while inaugurating the conference on new tax regime.

The two-day day event, concluded on Saturday, was organised by the Aurangabad Branch of Western India Regional Council (WIRC) of the Institute of Chartered Accountants of India (ICAI).

“The ICAI and all chartered accountants should initiate various awareness workshop for small traders and unorganized sector workforce to bring them into GST net,” Kulkarni said.

Nearly 500 chartered accountants participated in the conference, during which key aspects of implementation of GST was discussed.

Source : TOI