Jaydip Desai

Current GST Return filing system to continue for next 3 months. Taxpayers can continue to file GSTR-1 and GSTR-3B. E-Way bill:            - Inter-state implementation of E-way bill to be implemented from 1st April 2018.           - Intra-state implementation of E-Way Bill to take off from 15th April 2018 a phased manner. States to be divided into 4 lots to execute this phased rollout. Reverse Charge Mechanism (in case of supplies made by unregistered persons to registered persons) delayed till 1st July 2018. TDS & TCS applicability postponed until 30th June 2018 pending procedural. Exporters presently availing various export promotion schemes can now continue to avail such exemptions on their imports up to 1st October 2018 by which time an e-Wallet scheme is expected to be in place with effect from 1st April 2018, to continue the benefits in future. Council has advised the GSTN to expedite the export refund...

Discontinuance of Letters of Undertaking (LoUs) and Letters of Comfort (LoCs) for Trade Credits by RBI LOU & Bank Guarantees under which a bank allows its customer to raise money from another Indian bank’s foreign branch in the form of short-term credit. The loan is used to make payment to the customer’s offshore suppliers in foreign currency. The overseas bank usually lends to the importer based on the LOU  issued by the importer’s bank. The central bank's move may hit businesses which are dependent on imports, who are often reliant on LoUs to get bank guarantees. RBI NOTIFICATION www.cajd.co.in

A taxable event under GST is supply of goods or services or both. GST will be payable on every supply of goods or services or both unless otherwise exempted. The rates at which GST is payable for individual goods or services or both is also separately notified Classification of supply (whether as goods or services, the category of goods and services) is essential to charge applicable rate of GST on the particular supply. The application of rates will pose no problem if the supply is of individual goods or services, which is clearly identifiable and the goods or services are subject to a particular rate of tax. But not all supplies will be such simple and clearly identifiable supplies. Some of the supplies will be a combination of goods or combination of services or combination of goods and services both. Each individual component in a given supply may attract different rate of tax. The rate of tax to be levied on such supplies may pose a problem in respect of classification of such s...

Companies registered under The Companies Act, 2013 are required to file their annual financial statements & annual returns with Registrar of Companies and non-filing of same is offence under the companies act, 2013. Section 164(2) read with section 167 of the Companies Act, 2013 (w. e. from 01.04.2014) provide for disqualification of director on account of default by company in filing an annual return or financial statement for a continuous period of 3 years. Rule 14 of The Companies (Appointment & Disqualification of Directors) Rules, 2014 prescribe that every director shall inform to the company concerned about his disqualification, if any, u/s 164(2), in form DIR-8. Consequent upon notification of provisions of section 164(2), Ministry of Corporate Affairs (MCA) had launched a Company Law Settlement Scheme 2014 providing an opportunity to defaulting companies to clear their defaults within the time period specified therein & Following the due process as notifie...

Rate of Tax of Composition Levy Sl. NO Particulars Rate of tax (CGST) 1 Turnover in state in case of Manufacturers 0.50 % (Earlier 1 %) 2 Turnover in state in case Restaurant Services Suppliers 2.50 % 3 Turnover of Taxable Supplies of goods (Earlier Turnover) 0.50 % Eligibility: Supplier Dealing only in Goods & Restaurant Services Threshold Limit: ₹ 1 Crore (₹ 0.75 Crore in specified states) Maintain Details Records: No Avails ITC: No Issue tax Invoice: No Tax Collection from Customer: No Inter State Supplier opt this scheme: No, only Intra State supplies can be suppled under this scheme Relevant Notifications: Notification No. 8/2017-Central Tax Notification No. 46/2017- Central Tax Notification No. 1/2018- Central Tax www.cajd.co.in

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...

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 ...