6 Changes in E-Way Bills from 1st Oct. 2018

This document will explain the new enhancements done in the E- Way Bill (EWB) generation form and is being release on 1st of Oct. 2018. The purpose of this document is to communicate the tax payers and transporters the latest changes with screen shots and make them to understand and prepare them while generating the E-Way Bills from 1st Oct. 2018.

Following are the enhancements done in the E-Way Bill generation Form:

1. Display of only relevant document types in “Document Type” drop down list based on the selected Transaction “Supply Type” and “Sub Type” by the tax payers.

2. Auto-population of state name based on the pin code entered at consignor and consignee addresses.

3. Standard rates for tax are provided in the drop down list for selection based on the type (intra-state/inter-state) transactions.

4. Additional fields for “CESS Non Advol Amount” & “Other Value” have been introduced to enter CESS Non Advol amount and any other charges (+/-) written in invoice.

5. Alerting the generator of the E-Way Bill through SMS message, in case the total invoice value is more than Rs. 10 Crores.

6. Transporter ID is made compulsory for generating Part-A slip.

Reverse Charge Mechanism Under GST Law

Generally, the supplier of goods or services is liable to pay GST. However, in specified cases like imports and other notified supplies, the liability may be cast on the recipient under the reverse charge mechanism. Reverse charge means the liability to pay tax is on the recipient of supply of goods or services instead of the supplier of such goods or services in respect of notified categories of supply.

TWO TYPE OF REVERSE CHARGE SCENARIOS IN GST LAW.

> First is dependent on the nature of supply and/or nature of supplier. This scenario is covered by section 9 (3) of the CGST/ SGST (UTGST) Act and section 5 (3) of the IGST Act, 2017. > Second scenario is covered by section 9 (4) of the CGST/SGST (UTGST) Act and section 5 of the IGST Act where taxable supplies by any unregistered person to a registered person is As per the provisions of section 9(3) of CGST/SGST (UTGST) Act, 2017/section 5(3)of IGST Act, 2017, the Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. Similarly, section 9(4) of CGST/SGST (UTGST) Act, 2017/section 5(4) of IGST Act, 2017 provides that the tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. Accordingly, whenever a registered person procures supplies from an unregistered supplier, he needs to pay GST on reverse charge basis. However, supplies where the aggregate value of such supplies of goods or services or both received by a registered person from any or all the unregistered suppliers is less than five thousand rupees in a day are exempted.

Registration Compulsory to pay tax under reverse charge

A person who is required to pay tax under reverse charge has to compulsorily register under GST and the threshold limit of Rs. 20 lakhs (Rs. 10 lakhs for special category states except J & K) is not applicable to him.

Input Tax Credit (ITC)

A supplier cannot take ITC of GST paid on goods or services used to make supplies on which the recipient is liable to pay tax.

Time of Supply

Time of supply for supplies under reverse charge is different from the supplies which are under forward charge. In case of supply of goods, time of supply is earliest of: – date of receipt of goods; or date of payment as per books of account or date of debit in bank account, whichever is earlier; or the date immediately following thirty days from the date of issue of invoice or similar other In case of supply of services, time of supply is earliest of: – date of payment as per books of account or date of debit in bank account, whichever is earlier; or the date immediately following sixty days from the date of issue of invoice or similar other Where it is not possible to determine time of supply using above methods, the time of supply would be the date of entry in the books of account of the recipient.

Self – Invoicing

Self-invoicing is to be done when you have purchased from an unregistered supplier AND such purchase of goods or services falls under reverse charge. This is due to the fact that your supplier cannot issue a GST-compliant invoice to you, and thus you become liable to pay taxes on their behalf. Hence, self-invoicing, in this case, becomes necessary.

Compliances In Respect Of Supplies Under Reverse Charge Mechanism:

1. As per section 31 of the CGST Act, 2017 read with Rule 46 of the CGST Rules, 2017, every tax invoice has to mention whether the tax in respect of supply in the invoice is payable on reverse charge. Similarly, this also needs to be mentioned in receipt voucher as well as refund voucher, if tax is payable on reverse charge. 2. Maintenance of accounts by registered persons: Every registered person is required to keep and maintain records of all supplies attracting payment of tax on reverse charge 3. Any amount payable under reverse charge shall be paid by debiting the electronic cash ledger. In other words, reverse charge liability cannot be discharged by using input tax credit. However, after discharging reverse charge liability, credit of the same can be taken by the recipient, if he is otherwise eligible. 4. Invoice level information in respect of all supplies attracting reverse charge, rate wise, are to be furnished separately in the table 4B of GSTR-1. 5. Advance paid for reverse charge supplies is also leviable to GST. The person making advance payment has to pay tax on reverse charge

Reverse Charge -Applicability

A. Supply from an unregistered dealer to a Registered dealer If a vendor who is not registered under GST, supplies goods to a person who is registered under GST, then Reverse Charge would apply. This means that the GST will have to be paid directly by the receiver to the Government instead of the supplier. The registered dealer who has to pay GST under reverse charge has to do self-invoicing for the purchases made. Purchases up to Rs. 5,000 per day from unregistered suppliers will not attract GST. In other words, there is a reverse charge on buying from unregistered dealers if you are dealing with unregistered suppliers and making payments above Rs. 5,000.

For Inter-state purchases the buyer has to pay IGST. For Intra-state purchased CGST and SGST has to be paid under RCM by the purchaser. (TILL DATE IT IS NOT EFFECTIVE)

B. Services through an e-commerce operator

If an e-commerce operator supplies services then reverse charge will be applicable to the e-commerce operator. He will be liable to pay GST. For example, UBER provides services of passengers transport through cab. UBER is liable to pay GST and collect it from the customers instead of the registered service providers. If the e-commerce operator does not have a physical presence in the taxable territory, then a person representing such electronic commerce operator for any purpose will be liable to pay tax. If there is no representative, the operator will appoint a representative who will be held liable to pay GST.

C. Supply of certain goods and services specified by CBEC

CBEC has issued a list of goods and a list of services on which reverse charge is applicable.

GST Revenue collections for July 2018

Ministry of Finance

GST Revenue collections for July 2018

Posted On: 01 AUG 2018 3:04PM by PIB Delhi The Total Gross GST Revenue collected in the month of July 2018 is Rs. 96,483 crore of which CGST is Rs. 15,877 crore, SGST is Rs. 22,293 crore, IGST is Rs. 49,951 crore (including Rs. 24,852 crore collected on imports) and Cess is Rs. 8,362 crore (including Rs. 794 crore collected on imports). This is broadly on expected lines. The total number of GSTR 3B Returns filed for the month of July up to 31st July, 2018 is 66 lakh compared to GSTR 3B Returns filed for the month of June up to 30th June, 2018 was 64.69 lakh. Rs. 3899 crore has been released to the States as GST Compensation for the months of April-May, 2018. source:PIB **** DSM/RM/KA

Nodal officers nominated for implementation of e-way bill system

PRESS RELEASE

18th July, 2018

Subject: Nodal officers nominated for implementation of e-way bill system

As per the decision of the GST Council, e-way bill system has been rolled out in a staggered manner across the country. E-way bills are getting generated successfully and till 17th July, 2018, more than thirteen crore and fifty lakh e-way bills have been generated which includes six crore and fifty lakh e-way bills for intra-State movement of goods. 2. Grievance Redressal Officers have been appointed by both Central and State Governments under the provisions of e-way bill rules for processing the complaints/information uploaded by taxpayers/transporters regarding detention of their vehicle. List of these Grievance Redressal Officers is available at – http://www.cbic.gov.in/resources//htdocs-cbec/gst/GRO%20Officers%20-%20180718.pdf 3. Any difficulties or issues being faced by the trade and industry may be brought to the notice of Grievance Redressal Officers in your jurisdiction. Trade is also advised to make themselves conversant with e-way bill rules and be aware of mechanisms available for redressal of all their concerns.

Refunds Processed Under GST during the refund fortnight

Government of India

Ministry of Finance

Department of Revenue

(Central Board of Indirect Taxes& Customs)

*****

01-August-2018

Press Note

Total Rs 54,378 Crores of Refunds processed under GST As part of the continued focus of the government to liquidate pending GST refunds, the Central Board of Indirect Taxes and Customs (CBIC) has successfully concluded the third refund fortnight from 16th July, 2018 to 31st July, 2018. Till 31st July, 2018, the total GST refunds disposed by Centre and States are to the tune of Rs 54,378 Crore. During this refund fortnight, apart from various measures like Special refund cells at CBIC offices, exporter awareness campaigns etc., a unique facility was provided by CBIC. It was the first time that officers of CBIC reached out to doorsteps of the exporters for sanctioning of refunds by the way of GST refund Help Desks. The GST refund Help Desks were established at 11 locations in the offices of FIEO, EEPC and AEPC for the ease of exporters. These Help Desks were manned by officers of CBIC who were tasked with assisting the exporters in resolving issues related to refunds. These Help Desks provided an extension of CBIC offices, thus eliminating any need to go to Customs office for submission of documents. During the period, all field formations of CBIC and States, once again worked hard to provide all assistance to the exporters to ensure quick disposal of refund claims. By the end of 31st July,2018, the total amount of IGST refund claims disposed by CBIC is Rs 29,829 Crore taking the disposal rate to 93%. During the third refund fortnight, the IGST refunds of amount Rs 3,391 Crore have been sanctioned by CBIC. As on 31st July, 2018, in case of RFD-01A refunds, the amount disposed by the CBIC is Rs 16,074 Crore and that by State authorities is Rs 8475 Crore, taking total amount of RFD01A refunds to Rs 24,549 Crore. The remaining GST refunds pending with CBIC will continue to be processed expeditiously. However, the exporters are requested to ensure that the correct procedure of filing returns, giving accurate information in Shipping Bill and submitting RFD01A application forms to the jurisdictional formations are followed for quick disbursal of their GST refund claims.

Fraudulent Issuance of Input Tax Credit Invoices

Press Release

Central GST Delhi West Cornmissionerate arrested two Rohini based businessmen on 01.08.2018 in a case of fraudulent issuance of Input Tax Credit invoices without actual supply of goods involving evasion of approximately Rs. 201 crores relating to plastic granule industry. ii) Searches were conducted at several places during which various incriminating documents and evidences were found. During investigation it was revealed that the businessmen had floated multiple entities for issuing such fake invoices. Both of them were arrested under Section 69(1) of the CGST Act,2017 and produced before the Hon’ble Metropolitan Magistrate, Patiala House iii) Further investigations are underway and the quantum of evasion is likely to go up. Officers are not ruling out the possibility of existence of several other fake firms as the investigation moves ahead. (Krishna A. Mishra) Commissioner, Central GST Delhi West

Recommendations made during the 28thmeeting of the GST Council held in New Delhi on 21st July, 2018

PRESS NOTE

July 21, 2018

Recommendations made during the 28thmeeting of the GST Council held in New Delhi on 21st July, 2018 Amendments to the CGST Act, 2017, IGST Act, 2017, UTGST Act2017, and GST (Compensation to States) Act, 2017

1. The GST Council in its 28th meeting held today at New Delhi has recommended certain amendments in the CGST Act, IGST Act, UTGST Act and the GST (Compensation to States) Act. 2. The major recommendations are as detailed below: 1. Upper limit of turnover for opting for composition scheme to be raised from Rs. 1 crore to Rs. 1.5 crore. Present limit of turnover can now be raised on the recommendations of the Council. 2. Composition dealers to be allowed to supply services (other than restaurant services), for upto a value not exceeding 10% of turnover in the preceding financial year, or Rs. 5 lakhs, whichever is higher. 3. Levy of GST on reverse charge mechanism on receipt of supplies from unregistered suppliers, to be applicable to only specified goods in case of certain notified classes of registered persons, on the recommendations of the GST Council. 4. The threshold exemption limit for registration in the States of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand to be increased to Rs. 20 Lakhs from Rs. 10 Lakhs. 5. Taxpayers may opt for multiple registrations within a State/Union territory in respect of multiple places of business located within the same State/Union territory. 6. Mandatory registration is required for only those e-commerce operators who are required to collect tax at source. 7. Registration to remain temporarily suspended while cancellation of registration is under process, so that the taxpayer is relieved of continued compliance under the law. 8. The following transactions to be treated as no supply (no tax payable) under Schedule III: a. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India; b. Supply of warehoused goods to any person before clearance for home consumption; and c. Supply of goods in case of high sea sales. 9. Scope of input tax credit is being widened, and it would now be made available in respect of the following: a. Most of the activities or transactions specified in Schedule III; b. Motor vehicles for transportation of persons having seating capacity of more than thirteen (including driver), vessels and aircraft; c. Motor vehicles for transportation of money for or by a banking company or financial institution; d. Services of general insurance, repair and maintenance in respect of motor vehicles, vessels and aircraft on which credit is available; and e. Goods or services which are obligatory for an employer to provide to its employees, under any law for the time being in force. 10. In case the recipient fails to pay the due amount to the supplier within 180 days from the date of issue of invoice, the input tax credit availed by the recipient will be reversed, but liability to pay interest is being done away with. 11. Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a Financial Year. 12. Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the Appellate Tribunal to be capped at Rs. 25 Crores and Rs. 50 Crores, respectively. 13. Commissioner to be empowered to extend the time limit for return of inputs and capital sent on job work, upto a period of one year and two years, respectively. 14. Supply of services to qualify as exports, even if payment is received in Indian Rupees, where permitted by the RBI. 15. Place of supply in case of job work of any treatment or process done on goods temporarily imported into India and then exported without putting them to any other use in India, to be outside India. 16. Recovery can be made from distinct persons, even if present in different State/Union territories. 17. The order of cross-utilisation of input tax credit is being rationalised. 3. These amendments will now be placed before the Parliament and the legislature of State and Union territories with legislatures for carrying out the amendments in the respective GST Acts.

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Company Registration & GST Registration

Company Registration & GST Registration