Jaydip Desai

Notification No. 71/2017 – Central Tax Notification No. 72/2017 – Central Tax www.cajd.co.in

The 24th meeting of the #GST Council held on 16.12.2017 through a video conference. It discussed about the implementation of e-way Bill system in the country which are as below: The nationwide e-way Bill system will be ready to be rolled out on a trial basis latest by 16th January, 2018. Trade and transporters can start using this system on a voluntary basis from 16th January, 2018. The rules for implementation of nationwide e-way Bill system for inter-State movement of goods on a compulsory basis will be notified with effect from 1 st February, 2018. While the system for both inter-State and intra-State e-way Bill generation will be ready by 16th January, 2018, the States may choose their own timings for implementation of e-way Bill for intra-State movement of goods on any date before 1 st June, 2018. Press Release www.cajd.co.in

Under GST some specific cases are mentioned where ITC cannot be availed which are as follows: 1.    Motor Vehicles & Other conveyances   Exceptions: for making following taxable supplies: ·          Further supply of such vehicles or conveyances ·          transportation of passengers ·          imparting training on driving, flying, navigating such vehicles or conveyances ·          Transportation of Goods (other than GTA) 2.    Food and Beverages, Outdoor catering, Beauty treatment, Health services, Cosmetic and Plastic surgery Exception: Category of inward and outward supply is same or the component belongs to a mixed or composite supply under GST 3.    Membership of a club, Health and Fitness Centre 4.    Rent-a-cab, Life insurance and Health insurance Exception: for cases covered as under: ·          Any services which are made obligatory for an employer to provide its employee by the Indian Government under any current law in force. ·         

In a Press Release issued by Ministry of Finance, Government urges taxpayers who have claimed transitional credit erroneously to avail the opportunity of revising Form TRAN-1 by  December 27  to ensure correct and bona fide credit availment. It also clarifies that if such correct or bonafide credit is not availed then it would constrain tax administration to initiate audit and enforcement action against identified units. Noting that some taxpayers have availed “extraordinarily high” transitional credit of CGST which is neither commensurate with trend of input tax credit of industry nor as maintained by taxpayer himself in the past, Govt. remarks, “Such behaviour leads to breach of trust between the taxpayer and the tax-administration, which is the bed-rock of self-assessment regime in GST. Press Release www.cajd.co.in

v   Value of Supply Every act for collecting revenue makes provisions for determination of value as tax which is normally payable on ad-valorem basis. In GST also, tax is payable on ad-valorem basis i.e. percentage of value of supply of Goods/Services. Section 15 of the CGST Act and Determination of Value of Supply, CGST Rules contains provisions relating to valuation of supply of goods/services. v   Transaction Value Under GST law, taxable value is transaction value i.e. price actually paid or payable, provided supplier & recipient are nor related and price is sole consideration. In most of the cases of regular normal trade, invoice value will be the taxable value. However, to determine value of certain specific transactions, Determination of Value of Supply rules have been prescribed in CGST Rules, 2017. v   Compulsory Inclusions Any taxes, fees, charges levied under any law other than GST law, expenses incurred by the recipient on behalf of the supplier, inci

In order to review the income tax act and to draft new direct tax law in consonance with economic needs of country, the government has constituted a Task Force for drafting New Direct Tax Legislation. The Terms of Reference of the Task Force is to draft an appropriate Direct Tax Legislation keeping in view:  (i) The direct tax system prevalent in various countries, (ii) The international best practices. (iii) The economic needs of the country and (iv) Any other matter connected thereto.  The Task Force shall set its own procedures for regulating its work and shall submit its report to the Government within six months.  http://www.incometaxindia.gov.in/news/misccom-constitution-task-force-drafting-new-direct-tax-legislation-22-11-2017.pdf www.cajd.co.in

All Taxpayers are exempted from payment of tax on advance received in case of supply of goods Taxpayers who are supplying goods are not required to pay tax on advance received for supply of goods rather they are required to pay tax at the time of outward supply of goods. Notification No. 66/2017 – Central Tax Suppliers of services through an e-commerce platform are exempted from obtaining compulsory registration Taxpayers supplying services through an e-commerce platform are exempted from obtaining compulsory registration provided aggregate turnover does not exceed Rs. 20 lakh in financial year & Rs. 10 lakh in case of special category states. Notification No. 65/2017 – Central Tax Fee for late filing of Form GSTR-3B reduced Fee for late filing of return in Form GSTR-3B is limited to Rs. 50 per day (for Central Tax Rs. 25 & for State Tax Rs. 25) for the month of October 2017 onwards. Provided that total amount of tax payable in said return is N

Due Date for filing ITRs & Tax Audit Reports has been extended to 7th November, 2017 for those liable by 30.09.17. www.cajd.co.in

Extension of time limits for filing Form GSTR-2 & GSTR-3 for July,2017   Notification No. 54/2017- Central tax dated 30 th  October, 2017 www.cajd.co.in

The Department of Income-tax (Systems) has noticed that a large number of tax audit reports have been uploaded by Chartered Accountants but the same have not been approved by the assesses under their digital signatures. The Department is already issuing SMS reminders to taxpayers. If any person fails to get his accounts audited in respect of any previous year or years relevant to an assessment year or furnish a report of such audit as required under section 44AB, then the Assessing Officer may impose penalty on such person as per the provisions of section 271B of the Income-tax Act, 1961. Tax audit reports will stand unfurnished as on 31 st  October, 2017 and may result in initiation of penalty if not digitally approved by the assessee. Assessees are advised to timely digitally approve the reports to avoid such proceedings. www.cajd.co.in