Circular No: 139/09/2020 – GST dated 10.06.2020
It is hereby clarified that the treatment of refunds of such ITC relating to imports, ISD invoices, and the inward supplies liable to Reverse Charge (RCM supplies) will continue to be the same as it was before the issuance of Circular No. 135/05/2020- GST dated March 31, 2020 and refund of these components will be allowed even if not appearing in GSTR 2A.
Circular:
https://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular_Refund_139_9_2020.pdf
Circular No: 140/10/2020 – GST dated 10.06.2020
It is clarified that the part of Director’s remuneration which are declared as “Salaries‟ in the books of a company and subjected to TDS under Section 192 of the IT Act, are not subject to GST and not treated as supply in terms of Schedule III of the CGST Act, 2017.
It is further clarified that the part of Director’s remuneration which is declared separately other than “salaries” in the Company’s accounts and subjected to TDS under Section 194J of the IT Act as Fees for professional or Technical Services shall be treated as taxable supply for GST and company is liable to discharge the applicable GST on it on RCM basis.
The GST Council in its 32nd Meeting held today took the following major decisions to give relief to MSME (including Small Traders) among others:
1. Increase in Turnover Limit for the existing Composition Scheme:
The limit of Annual Turnover in the preceding Financial Year for availing Composition Scheme for Goods shall be increased to Rs 1.5 crore. Special category States would decide, within one week, about the Composition Limit in their respective States.
1.1 Compliance Simplification:
The compliance under Composition Scheme shall be simplified as now they would need to file one Annual Return but Payment of Taxes would remain Quarterly (along with a simple declaration).
2. Higher Exemption Threshold Limit for Supplier of Goods:
There would be two Threshold Limits for exemption from Registration and Payment of GST for the suppliers of Goods i.e. Rs 40 lakhs and Rs 20 lakhs. States would have an option to decide about one of the limits within a weeks’ time. The Threshold for Registration for Service Providers would continue to be Rs 20 lakhs and in case of Special Category States at Rs 10 lakhs.
3. Composition Scheme for Services:
A Composition Scheme shall be made available for Suppliers of Services (or Mixed Suppliers) with a Tax Rate of 6% (3% CGST +3% SGST) having an Annual Turnover in the preceding Financial Year up to Rs 50 lakhs.
3.1 The said Scheme Shall be applicable to both Service Providers as well as Suppliers of Goods and Services, who are not eligible for the presently available Composition Scheme for Goods.
3.2 They would be liable to file one Annual Return with Quarterly Payment of Taxes (along with a Simple Declaration).
4. Effective date:
The decisions at Sl. No. 1 to 3 above shall be made operational from the 1st of April, 2019.
5. Free Accounting and Billing Software shall be provided to Small Taxpayers by GSTN.
6. Matters referred to Group of Ministers:
i. A seven Member Group of Ministers shall be constituted to examine the proposal of giving a Composition Scheme to Boost the Residential Segment of the Real Estate Sector.
ii. A Group of Ministers shall be constituted to examine the GST Rate Structure on Lotteries.
7. Revenue Mobilization for Natural Calamities:
GST Council approved Levy of Cess on Intra-State Supply of Goods and Services within the State of Kerala at a rate not exceeding 1% for a period not exceeding 2 years.
The Central Board of Indirect Taxes and Customs (CBIC) has notified the GST Audit Form ‘FORM GST-9C by amending the Central Goods and Services Tax Rules, 2017.
The Central Goods and Services Tax (Tenth Amendment) Rules, 2018 notified by the Board today specified that the amendment is applicable from 13th September 2018. GSTR 9C should be filed by the taxpayers whose annual turnover exceeds Rs 2 crores during the financial year.
All such taxpayers are also required to get their accounts audited and file a copy of audited annual accounts and reconciliation statement of tax already paid and tax payable as per audited accounts along with GSTR 9C.
http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-49-central-tax-english-new.pdf;jsessionid=33BECC70E46E1C1B3379241F034E40C2
Govt Notifies Implementation of TDS, TCS Provisions under GST
In a significant move, the Central Government has notified that the provisions relating to Tax Deduction at Source ( TDS ) and Tax Collection at Source ( TCS ) under the new Goods and Services Tax (GST) regime will be implemented from 1st October 2018.
The registration for these provisions has already started in the GSTN portal from earlier this year. As per the Central Goods and Services Tax (CGST) Act, the notified entities are required to collect TDS at 1% on payments to suppliers of goods or services in excess of Rs 2.5 lakh.
http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-50-central-tax-english.pdf;jsessionid=23C33F05B9F6A2B3A62F7108AE94DC54
http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-51-central-tax-english-new.pdf;jsessionid=E5EBC6C21A68CCD85AF8894E633432F5
Government through notification no 1/2018 – Central dated 1 January 2018 has made following changes in payment of GST at composite rate:
1) GST composite rate for manufacturer reduced from 2% to 1%
2) GST at composite rate would be applicable only to taxable supplies instead of total supplies in case of a trader who has opted for composition scheme.
Composition Dealer need to keep proper records to get the details of taxable as well as exempt supply.
| GST Returns Deadline Extended By Govt |
| Businesses with turnover of up to Rs. 1.5 crore will have to file GSTR-1 for July-September by January 10, 2018, as against December 31, 2017 earlier… |
Please note that due dates for various returns under GST Act, 2017 in the month of December, 2017 are as follows.
|
Type of Dealer |
Return period |
Return Form |
Due Date |
| All Taxpayers (other than Composition Taxpayers, Non-Resident Taxpayers, Input Service Distributors and Taxpayers liable to pay tax under section 51 & 52 of GST Act.) |
November, 2017 |
GSTR-3B |
20.12.2017 |
| Quarterly return for Composition dealers. |
July to September, 2017 |
GSTR-4 |
24.12.2017 |
| Quarterly return for registered persons with aggregate turnover up to Rs. 1.5 Crore. |
July to September, 2017 |
GSTR-1 |
31.12.2017 |
| Monthly returns for registered persons with aggregate turnover more than Rs. 1.5 Crore. |
July, August, September and October 2017 |
GSTR-1 |
31.12.2017 |
GST Updates :-
Finance Minister Arun Jaitley addressed the media on GST after 16/1/2017 Council meeting:-
1. The entire taxation base will be shared between the assessment and machinery of the Centre and the states.
2. Those above turnover 1.5 crores would be assessed in the ratio of 50:50 between Centre and state.
3. All assesses with GST turnover of Rs 1.5 crore or less, 90 per cent of them will be assessed by States & 10 per cent by administrative machinery of Centre.
4. States will also be cross empowered on the ratio mentioned earlier.
5. States will be empowered to collect tax in any economic activity in this decision.
6. As far as the area of 12 nautical miles into the territorial waters is concerned, it is a part of the Union government territory but as per convention, the states will be empowered to collect tax on any economic activity in this territory.
7. An alternative proposal made by a minister from Tamil Nadu. It was debated upon, improved and finally agreed upon.
8. All the minister present agreed to the proposal except the West Bengal minister, who said that the division of assets to 90-10 to 100-10.
9. The SGST and the CGST, the draft of those laws tentatively by the officers and will come up before the GST council by the 18th Feb.
10. This exercise will in all probability take us well into the March.
The ministers then assessed a realistic date by when the 3 important things pending, final draft legislations and the rules, approval of these by the legislative bodies can take place.
11. There was a broad view that the 1st of July appears to be more realistic since its transactional tax it can be introduced any time.
Also they felt that the industry and trade would have to be given adequate notice.
12. The system of GST will have to be modified suitably. So, their next meeting will be on the 18th of February.
Revised Model law released and officially available on departmental website.
http://www.cbec.gov.in/htdocs-cbec/gst/revised-gst-laws