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All that you need to know about GSTR-11

GSTR-11 is a return that needs to be filed by people having UIN (Unique Identification Number). This return provides the details of the inward supplies. According to a GST provision, ‘Inward Supply’ means the acceptance of goods or services or both by purchase, acquisition or any other means with or without consideration. What is UIN? The UIN or the Unique Identity Number (UIN) is a special classification that has been made under GST for foreign diplomatic missions and embassies. These people or entities are not liable to pay tax under Indian jurisdiction. The UIN was created for the sole purpose of refunding any tax that has been collected from these people/bodies. However, to make sure that GST is refunded and paid back to them, GSTR-11 have to be filed by them. Read More at: http://bit....

An update on recent Advance Ruling on GST

A recent ruling of the Maharashtra Advance Ruling Authority has held that back office support services do not qualify as “export of services” as they are in the nature of “intermediary services”.    It is concerning and We as NASSCOM seek to engage with the GST Council and CBIC to highlight the impact of this ruling including some of the key aspects that have been ignored in the ruling:   Need for clarification on the interpretation of intermediary and the concept of exclusion of “main service” from intermediary services; Absence of Tripartite arrangement which is essential for intermediary services; Several judicial precedents under the erstwhile service tax regime which have affirmed the view that services provided on “own account” do not qualify as  “intermediary” The clarification issu...

Commerce Federation in Andhra Pradesh holds awareness programme on GSTR-9

Commerce Federation in Andhra Pradesh holds awareness programme on GSTR-9 Do Follow Link for More Details: http://bit.ly/2K40phv

E-commerce companies start collecting 1% tax at source from October 1st

E-commerce companies start collecting 1% tax at source from October 1st The Finance Ministry has issued a notification stating that e-commerce companies should collect an amount at the rate of one per cent as tax collected at source (TCS) on the supplies made by them. The e-commerce companies should pay half of the amount collected to the Centre while the other half should be paid to the State where supply takes place.  The government had proposed TCS for e-commerce companies after the implementation of the Goods and Services Tax (GST). Thereafter, the Goods and Services Tax Council announced its decision that TCS will be deducted from the 1st of October. Any e-commerce business that is supplying goods on behalf of any producer is liable to collect TCS.  Tax collected at source (TCS) means...

Company can claim ITC on maintenance of Guest House, Transit House and Training Hostels. By AAR

The Authority for Advance Ruling ( AAR ), Odisha has granted a ruling on entitlement to take credit of tax paid on various goods and services used for maintenance of township, guest house, hospital, horticulture maintained by a Company, in its ordinary course of business. The applicants provide townships and colonies near its factories and offices for its employees. It also operates guest houses for a temporary stay of employees and guests. It runs hospitals for its employees. They receive various services of repair and maintenance in the townships, guest houses, hospitals and horticulture which are received as part of its business operations. Such suppliers are also charging GST in their invoices. The applicants submitted that the management, maintenance, and repair service obtained from ...

Government amends Rule 96(10) of CGST Rules

Rule 96 (10) of the CGST Rules has been amended vide Notification 53/ 2018 – Central Tax dated October 9, 2018.  To recap, Notification No. 3/2018-Central Tax dated 23.01.2018 amended Rule 96 and inserted sub-rule (10) to state that the persons claiming the rebate option should not have received supplies on which the supplier has availed certain the export benefits.  Further, Rule 96(10) of the CGST Rules was further amended vide Notification No.39/2018- CT dated September 4, 2018 with retrospective effect from October 23, 2017 and a new sub-rule was inserted which provided that the person claiming refund of IGST paid on export should not have availed the benefit of Notification No.78/2017 and 79/2017- Customs.  An extract of the same is provided below:   “(10) The persons claiming refund ...

Internal Auditor cannot undertake GST Audit of same entity: ICAI

Internal Auditor not to undertake Goods and Service Tax (GST) Audit simultaneously We have received enquiries from the members at large and other stakeholders as to whether an internal auditor of an entity can also undertake GST Audit of the same entity as required under the Central Goods and Service Act, 2017. The Council of the Institute, while considering the issue at its 378th Meeting held on 26th and 27th September, 2018, noted its earlier decision taken at its 281st Meeting held from 3rd to 5th October, 2008, that internal auditor of an assesee, whether working with the organization or independently practising Chartered Accountant being an individual chartered accountant or a firm of chartered accountants, cannot be appointed as his Tax auditor (under the Income Tax Act, 1961).   Upo...

Government extends exemption from IGST and Compensation Cess to STPI/ EOU’s till March 2019

The much awaited notification on STPI / EOU exemption from IGST on import of goods is released extending the benefit of exemption from Integrated Tax and Compensation Cess up to 31.03.2019 on goods imported by STPI/ EOU.     You would recall that in October last year we had requested for this exemption which was allowed until 30 September 2018 (Notification No 78/ 2017 – Customs dated October 13, 2017). This came as a huge relief for EOU/ STPI units as till the issuance of the said notification, imports of capital goods attracted IGST and no refund was eligible of the said duties, thereby increasing the cost of doing business.    Over the last few months NASSCOM has been asking for an extension of this exemption and had very recently represented the matter with the GST council secretariat ...

Suppliers liable to pay penalty for not passing GST rate cut benefits By National Anti-Profiteering Authority

As per Section 122 supplier of any goods or services without issue of invoice or incorrect / false invoice is liable to pay a penalty of Rs 10,000 or an amount equivalent to the tax evaded or the tax not reduced under section 31 or short-deducted or deducted but not paid to the government…, whichever is higher. AMRG & Associates Partner Rajat Mohan said: This ruling by NAA has made it clear that anti-profiteering provisions apply to each supplier for its supplies, and in no case burden can be shifted to any other person in the supply chain. This would bring small traders and shopkeepers also under the umbrella of anti-profiteering regulations However, you can visit encomply to take care of all your GST-related problems.

Recent notifications on TDS and TCS provisions under GST

    51/2018-Central Tax ,dt. 13-09-2018 Seeks to bring section 52 of the CGST Act (provisions related to TCS) into force w.e.f 01.10.2018 50/2018-Central Tax ,dt. 13-09-2018 Seeks to bring section 51 of the CGST Act (provisions related to TDS) into force w.e.f 01.10.2018 49/2018-Central Tax ,dt. 13-09-2018 Notification amending the CGST Rules, 2017 (Tenth Amendment Rules, 2018) FORM GSTR-9C  

GST refunds – Government addresses significant concerns

Glad to share that the much needed definition of ‘adjusted total turnover’ relevant for determination of refund eligible has been amended vide Notification No. 39/2018. Basis the concerns raised by many members NASSCOM has been requesting for this amendment for quite some time now and have had series of engagements with the GST council secretariat and concerned officials. We are glad that our recommendations are considered.   The amendment puts to rest the anomaly in the mechanism of determination of zero rated supplies vis-à-vis adjusted total turnover for refund purposes.  The formula was inconsistent in that it considered realisation for the purpose of determination of export turnover but total turnover was based on discloses made in the returns (i.e. as per billings).  A copy of the no...

Missing service tax credit in GST update

The retrospective amendment to Section 140 (1) of the CGST Act 2017 that empowers assessees to transition the closing balance of cenvat (central value added tax) credit in the erstwhile indirect tax regime to the GST regime. While the intention was to ensure that the credit of various cesses was not transitioned, the amended section replaces “amount of cenvat credit” by “amount of eligible duties.” “Though unintended, absence of ‘service tax’ under eligible duties under explanations to Section 140, would mean that eligible credit of service tax transitioned under GST, can now be denied (as this is a retrospective amendment,” said Harpreet Singh, partner, indirect taxes, KPMG. This means that only the amount of eligible duties carried forward in the returns can be transitioned to GST and cl...

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