GST Council meeting on Sunday, 11th June 2017 Highlights:
- Pickles, Movie Tickets & Insulin to be cheaper.
- Compliance burden on small businesses has been eased.
- Reduction was required because of changing nature of economy. FM, Arun Jaitley stated.
- Four basic Tax slabs of 5, 12, 18 and 28 per cent apply to practically all goods and services, in addition to several mass-consumption items attracting zero tax rate.
- Seperate slab rate of 3% created for gold and silver.
- Composition Scheme reworked to Rs 75 lakhs instead of Rs 50 lakhs earlier. Those who opt for this need not file invoices electronically or complete three-stage filing process every month. Input credit cannot be claimed, however.
- Small traders within prescribed turnover will be able to opt for scheme and pay 1% tax, manufacturers 2% and resteraunts 5%.
- Rate chart giving important rates given below:
#13Jun2017 | #1200HoursIST | #CAVSM
GST Council revises rates for 66 items. Here is the list of revised items
The CA (Final) New Course released by the Board of Studies, ICAI can be downloaded from this link on my #Dropbox. Cheers!
GST – Important Points
1. # GST will 100% be implemented on 01-07-2017
2. # Types of taxation in GST
3. IGST : Integrated GST
4. CGST : Central GST which with replacement CST
5. SGST : State GST which will replace VAT
6. # WEF from 01.06.2017 : Migration towards enrolment of GST will start till 15.06.2017
7. # Registration certificates will be issued online.
8. # There will be no check post for 1 year. Only mobile check posts will be in full force. All intelligence officers will be dormant for sometime.
9. # 5 forms on different dates have to be submitted every month.
R1 form on 10th
R2 form on 13th
R3 form on 15th
R4 form on 17th &
R5 form or final returns on 20th
You cannot file revised returns at all. Once filed on 20th is final.
10. # Tax payments will be accepted only by e payments. Tax Payments via credit & debit card also added.
11. # In the present Vat system you upload sales & purchases every month. In GST you have to upload every sale & purchase bill.
12. # Be careful , every thing in GST is system driven. Once uploaded you cannot revise anything. No officer can help you in this. They can only pity the mistake.
13. # Your firm rating will be done by the system. Based on the rating audit trials will be conducted.
14. # Proposed e sugam for ₹50000 & above value only.
15. # Proposed rates of GST in percentage are 0, 5, 8 , 12, 18 , 28 & 40.
16. # 1st time in the history of independent India 4 major category of businesses will be covered : Education, Textiles, Medical & Professional services.
17. # You need to submit 17 documents for migration to GST.
18. # Most products MRP to come down.
19. # Distribution + C & F channel under threat.
20. # All these categories which were not taxed will now be taxable : Replacements/ return goods, Barters , Free Samples, disposables, scrap material. For example : if you buy a 40 inch led TV from Girias for ₹30000 & return back your old TV in exchange for ₹4000, you have to pay tax on ₹34000.
21. # All movements of material will be taxable like : Head office to branch office (stock transfer), factory to C & F agent, godown to shop.
22. # The GST officer has all rights to value your goods & fix the price. The law will decide Valuation of the product at Various levels like : Manufacturing, Wholesalers, Distribution & retailers. For example if Kissan is selling Jam for ₹150 & Patanjali is selling the same Jam for ₹120. (Same quantity, flavour, ingredients etc) Then Patanjali has to pay tax on ₹150.
23. # All books & records to be maintained on daily basis.
24. # You will need a full time accountant in your shop/office to maintain books under GST.
25. # All travel & tour expenses related to business have to be claimed under firm name.
26. # If your vendor does not upload his bills within 180 days , you will not get tax credit.
27. # You cannot claim credit for material in stock beyond one year.
28. # They propose that You have to dispose all your old stocks purchased under VAT/CST within September 2017.
29. # All VAT related documents like C forms, F forms etc have to be cleared within Sept 2017.
30. # Your Vat credit will not be carry forwarded to GST.
GST RETURNS FORMAT RELEASED:
Under GST, Primarily a tax payer is required to file following:
1) GSTR 1 -: Details of outwards supplies of Goods & Services.
2) GSTR 1A -: Details of auto drafted supplies of Goods & Services.
3) GSTR 2 -: Details of inwards supplies of Goods & Services.
4) GSTR 2A -: Details of supplies auto drafted from GSTR-1 OR GSTR-5 to recipient.
5) GSTR 3: Monthly Return
6) GSTR 3A: Notice to Return Defaulter u/s 46A
7) GSTR 4: Quarterly return for Registered Person opting Composition Scheme.
8) GSTR 4A: Auto Drafted detail for Registered Person opting Composition Scheme.
9) GSTR 5: Return for Non Resident Taxable Person.
10) GSTR 6: Return for Input Service Distributor.
11) GSTR 6A -: Details of supplies auto drafted from GSTR-1 OR GSTR-5 to ISD.
12) GSTR 7: Return for Tax deducted at Source.
13) GSTR 7A: Tax deducted at Source Certificate.
14) GSTR 8: Statement for Tax Collection at Source.
15) GSTR 11 -: Details of inwards supplies statement for person having UIN.
CA VIKRAM SHANKAR MATHUR – LIVE
#05Jun2017 | #0225HoursIST #CAVSM
Today Council meeting update :
Gold @ 3%
Rough diamond @ .25%
Footwear below Rs500 @ 5%
Packaged food product containing registered trade mark @ 5%
Ready made garment @12% (readymade garments below 1000 @ 5%)
Textile @ 5%
All type of natural fibers and cotton @5%
Beedi leaves @ 18%
Beedi @ 28% without cess
Next GST council meeting – 11 June
👉🏿 Filing Returns under GST Will No Longer be Taxing..
▪There is an excitement in the country about GST. People want to understand the process of GST.
▪ Through this article, we present some points about the process of filing returns.
▪Every trader will have to file returns once a month and pay tax. The input credits of taxes that have been paid on purchases will be automatic and will be available to every trader.
▪ The whole process of filing returns is online. If accounts are kept in the Excel sheet provided by GSTN, then the same account will automatically be converted into returns with the help of an offline tool every month.
▪ If a trader sells all his merchandise only to retail customers, then the returns of such a trader will be very simple the summary of rate-wise turnover will be shown.
▪ If a trader avails of the composition scheme and has a turnover of less than `50 lakh, such a trader will not have to file returns every month, but every three months, showing the total turnover.
▪ Traders selling business-to-business merchandise must give specific details for each sale invoice in their returns.
▪When a trader’s sales details are entered into the form of returns on the GST website by the 10th of the month, the complete details of purchases made by his buyers will be seen in his GSTR-2 (GST Online Account). That means it will auto-populate.
▪With the purchasing buyer clicking okay, after looking at these details, the merchant’s GSTR-3 return will appear in the computer itself.
▪The GSTN system will auto prepare and show the merchant’s tax liability and the complete details of the input tax credit, along with net tax liability.
▪The trader would be required to deposit the difference between tax liability and input tax credit. Taxes must be deposited online or in the bank.
▪After this, the trader will have to submit the final return made by computer by clicking on GSTR-3 and submitting it by the 20th of the month.
▪ There is an arrangement in business-tobusiness transactions which we call the input tax credit reversal, which is to return the input tax credit taken. A lot of people have expressed concern about this, but if you understand the whole process, then you would fully support it.
▪If the trader from whom you buy goods has shown that transaction in his return by the 10th of the month, you will get input tax credit. Suppose the person selling the goods does not put that invoice in his returns, even then you will get an opportunity to show it in your GSTR-2 return by the 15th of the month, and by doing so, you will get full input tax credit.
▪After that, you have to contact the businessman (the supplier) and explain that he must show that transaction in his return so that there is no reversal of the input tax credit received in the next month.
▪You will get 30 days for this and if even then the merchant who sells the merchandise does not accept this transaction and does not show it in his return, then the input tax credit tax that you got would be reversed in your returns next month.
▪It is the duty of every businessman to deal with such traders who have not deposited the tax with the government after collecting the tax from you.
▪On the basis of the default of each merchant, they will be given a compliance rating, which will be visible to all other traders so that you do not do business with frequent defaulters.
RAJESH ADWANI DEPUTY COMMISSIONER OF SALES TAX PUNE
(Contributed by CA Jaideep Singh Gusain, N. Delhi)