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GST Dept cannot detain Goods for bonafide Misclassifation. Pending refunds up to Rs 5 lakh rupees to be processed immediately. The government unveiled a raft of measures to ensure availability of cash in the system, including speeding up of refunds worth Rs 18,000 crore linked to income tax returns, customs and GST, while deciding to prioritise spending on areas like health, pharma, food, rural development, railways and aviation.
The decision has come due to the coronavirus lockdown in the country. In the wake of Coronavirus lockdown affecting normal life both socially and financially of the public, it was ordered the immediate clearance of pending income Tax refund cases where the claim amount is up to Rs 5 lakh. The Ministry of Finance issued notification in this regard citing the move will be a great relief for around 14 lakh income tax payers. Remuneration paid to directors to attract GST. Companies will have to pay GST on the remuneration they give to directors.
Clay Craft India Pvt. Ltd had filed application before the Rajasthan bench of the AAR and sought clarification on whether salaries paid to directors would attract Goods and Services Tax. It was brought to the notice that its directors are working as employees for which they are being compensated by way of a regular salary and other allowances and the company is deducting TDS on their salary and PF laws are also applicable to their service. Lowest collection of GST on imports in March. Collection of GST was just over Rs 18,000 crore through integrated GST (IGST) on imports in March, the lowest since the new tax regime kicked in 30 months ago, indicating diminishing collection in future, putting additional pressure on the government that is facing demands for fiscal stimulus in the wake of the coronavirus pandemic.
Collections in March are related to sales or import consignments in February and the numbers are lower than the previous low of Rs 19,603 crore raised in February 2018. Low collections from imports point to not only a significant decline in the value shipments into the country but also a further moderation in economic activity. The numbers on the cess on imported luxury and sin goods, however, were not the lowest ever, although collections under this head, estimated at Rs 841 crore, declined 20% compared to the previous month and 5.6% compared to a year ago. GSTN enables IT officers to access system. The Goods and Services Tax Network (GSTN), IT backbone of GST has enabled over 20,000 registrations and processed about 8,000 refund cases till April 3, 2020, during the first 10 days of the lockdown.
They have provided remote access, securely through virtual private network or VPN, to over 1700 tax officials across the country. From March 25 – when the nationwide lockdown began - to April 3, 20,273 registration-related cases were processed, including 10,077 cases of new registration, 3377 cases of core amendment, 3784 cases of cancellation by application, 1966 cases of cancellation by suo moto and 1069 cases of revocation.
During the same period, 7876 cases of refund were also processed. Soon after the lockdown was announced, GSTN offered secured access to all these states to enable their officers to work remotely. EMI deferment: Pain for customers, gain to banks. On March 27, the Reserve Bank of India (RBI) said that all lending institutions, including banks and housing finance companies, will have to give its borrowers a three-month moratorium on term loans, the deferred instalments under the moratorium will include the following payments falling due from March 1, 2020 to May 31, 2020: (i) principal and/or interest components; (ii) bullet repayments; (iii) equated monthly instalments (EMIs); (iv) credit card dues.
There was merry all around and Aam Admi was obviously happy given the loss of earnings, pay cuts and delays in salary payments. But now there is clarity. GST collection in March indicates slowdown. GST collections in March slipped below the psychological Rs 1 lakh crore-mark for the first time in four months to Rs 97,597 crore as COVID-19 lockdown that shut most businesses compounded tax collection woes in an already sluggish economy.
Goods and Services Tax (GST) mop-up in March recorded a 8.4% decline over March 2019 collection of Rs 1.06 lakh crore. The collections were lower on account of dip in revenues from domestic transactions as well as imports. Clarification on refund related issues. 1.
CBIC has clarified that there is no restriction on bunching of refund claims across financial years (Circular No. 125/44/2019-GST Dated-18.11.2019 stands modified). 2. Refund of accumulated ITC on account of reduction in GST rate not applicable where input and output supplies are the same. 3. Clarification on Income tax related issues. Later in recent days, actions have been taken to give relief to the taxpayers- 1) FY 2019-20 is not at all extended till 30th June, only the date is extended for some compliances. 2) Belated returns or Revised returns for the FY 2018-19 can be filed till 30th June. 3) In the FY 2019-20, income is taxable till 31st March only and not up to 30th June, i.e. for taxability of income financial year is considered till 31st March only. 4) Deductions under 80C, 80D, etc. can be claimed by investing till 30th June. 5) New LIC, Mediclaim, PPF, NPS, etc. policies taken till 30th June will be eligible for the deduction for the FY 2019-20. 6) Payment of Premium of old policies of LIC, Mediclaim, PPF, NPS, etc. due up to 31st March can be claimed as deduction even if paid till 30th June. 7) Housing loan interest is eligible for deduction on accrual basis, so interest accrued till 31st March will be eligible for the deduction in FY 2019-20.
No extension for GSTR-3B. Finance Minister announces several relief measures in view of COVID-19 outbreak. The Union Finance & Corporate Affairs Minister Smt.
Niramla Sitharaman announced several important relief measures taken by the Government of India in view of COVID-19 outbreak, especially on statutory and regulatory compliance matters related to several sectors. 1. Those having aggregate annual turnover less than Rs. 5 Crore Last date can file GSTR-3B due in March, April and May 2020 by the last week of June, 2020. No interest, late fee, and penalty to be charged. 2. Others can file returns due in March, April and May 2020 by last week of June 2020 but the same would attract reduced rate of interest @9 % per annum from 15 days after due date (current interest rate is 18 % per annum). No late fee and penalty to be charged, if complied before till 30th June 2020. 3.
Clarifications regarding refund of GST. Through a notification dated 23.03.2020 it has been provided that where a registered person has claimed refund of any amount of tax wrongly paid or paid in excess for which debit has been made from the electronic credit ledger, the said amount, if found admissible, shall be re-credited to the electronic credit ledger by the proper officer by an order which allow to curb the practice of voluntarily paying more tax or wrong tax from out of ITC, to encash such accumulated ITC by way of claiming refund in cash.
It has also been specified as to how to find out whether any particular tax liability was paid out of Electronic Credit Ledger or through Electronic Cash ledger and payments are made on a consolidated manner on the due date. Analysis of 39th meeting of GST Council. In the last GST council meeting held on 14th March, 2020, the GST rate on mobile phones was increased to correct the inverted duty structure on recommendations of Fitment Committee. GST rate was raised from 12% to 18% on mobile phones. Another decision made by the Council was to make effective the proviso of section 50(1) of the CGST Act inserted vide Finance Act (No. 2) of 2019 which seeks to correct an anomaly in the provision as it existed prior to such insertion. Same was held by Madras High Court and the effect of the same should be read operative retrospectively.
Therefore, demands raised by the department for payment of interest on gross GST liability, paid by utilizing input tax credit stand invalid. Waiver of late fees of Rs. 200/- per day applicable for other taxpayers having aggregate turnover of more than Rs. 2 crores for delay in filing of GSTR-9. Industry and analysts denounce GST rate hike to 18% on mobile phones. At a time when all major handset manufacturers are struggling to cope with disruptions caused by the coronavirus (COVID-19), the Goods and Services Tax (GST) Council has worsened the matters for mobile phone sector.
Notwithstanding falling demand and severe crunch in supply of key mobile components, the council in its 39th meeting announced the raise in rate of taxation for mobile phones and specific parts presently attracting 12% to 18%. Reacting to the move, the representative of the Smartphone industry said the industry had heeded Prime Minister Narendra Modi’s call to participate in the “Make in India” initiative. CLEARTAX Buys GST Filing Unit in Karvy.
ClearTax is built on top of India's Massive Digitization of its Tax Systems. They are a Bangalore based Financial-Technology platform providing solutions for Income Tax filing, GST and Mutual Fund Investments and so on. Also, it is the largest tax filing platform in India with more than 20 Lakh returns filed through it. This was started as a platform to demystify Income Tax filing for the average Indian. Interest on delayed payment on Gross or Net Liability. Every person who is liable to pay tax in accordance with the provisions and fails to pay such tax shall pay interest on default amount. Further, a taxable person who makes an undue or excess claim of input tax credit shall pay interest on such undue or excess claims. CARO - 2020. MCA has come out with revised CARO rules which will be effective from 01.04.2020. 5 more clauses have been added to CARO, 2016 making a total of 21 clauses in CARO, 2020.
India's GST collections below potential, says IMF. Shortfall in GST Cess holding up payments to states. What is CESS? GST is a consumption-based tax, meaning the state where the final consumption of taxable goods or services takes places will enjoy the revenue collected from taxes. This creates a situation where the manufacturing states could face a revenue deficit.To address this, the government decided to introduce the GST compensation cess, which is applied in addition to the regular taxes, i.e. it will be applied in addition to CGST, SGST/UTGST and IGST.
It is noteworthy that the compensation cess is applicable only on certain notified goods, most of them belonging to luxury and demerit category for example, Pan masala, Motor cars of a specified category, etc.The central government is responsible for collecting the compensation cess which is them distributed to individual state. GSTR 9 & 9C Due Date Extended for FY 2017-18. Untitled. PROPOSED GST AMENDMENTS UNDER BUDGET 2020. What is UTGST? UTGST Rules, Act & Notifications. Over 65 lakh GSTR-3B filed till Jan 20, 2020. Over 65.65 lakh GSTR-3B returns were filed till January 20, for the tax month of December, of which 13.30 lakh GSTR-3B returns were filed on the last day, as per data from Goods and Services Tax Network (GSTN). “This month’s return filing data till date shows that the GSTN return filing system was working within its expected limits.
This was evident by the fact that till January 14, a total of 24.66 lakh GSTR-3B were filed,” an official said Tuesday, January 21.GSTR 3B is a monthly return to be filed under GST in which every taxable person has to summarize the details of outward and inward supplies. On January 15, 2.66 lakh returns were filed, followed by 4.65 lakh on January 16, and 5.93 lakh returns were filed the next day. What is IGST? IGST Rules, Act & Notifications. What is CGST? CGST Rules, Act & Notifications - Vsctaxsol. What is SGST? SGST Rules, Act & Notifications - Vsctaxsol. Facilitation Centers may be set up to help file GST Returns. The Finance Ministry is considering setting up facilitation centers and developing an app to help traders and small businesses file their Goods and Services Tax (GST) returns.
The main reason behind its coming is that the Government has struggled to improve GST compliance for over two and half years now. The facilitation centers would be similar to the Aadhaar Seva Kendras.On the other hand, for the app, the GST Network (GSTN) that handles the I-T end and professional entities which file returns would be approached. The measures would specifically target traders and micro, small and medium enterprises for the purpose of simplifying filing of returns as they lack the internal infrastructure. Also, they depend on Chartered Accountants (CAs), who themselves are overburdened. Currently, these accountants come and collect papers from traders and file returns. Predictability of GST – need of the Hour. GST Council likely to discuss prevention of Revenue Leakage. GST Council likely to discuss prevention of Revenue Leakage Several measures aimed at plugging revenue leakages under the goods and services tax (GST) regime are expected to figure at the upcoming GST Council meeting as the Centre and the states look to increase collections.
Raise in GST Rates Will Only Have A Perilous Impact on Economy. Congress leader and former GST Council member Krishna Byre Gowda has cautioned the Council that if it were to go ahead with any increase in GST rates on essential items, it will only worsen the situation for low-income group families with perilous impact on the economy. Raising the rates on essential products will further squeeze the spending power of large sections of people. AAR: EPC contract is a Composite Supply. Finance commission Chairperson seeks big changes in GST structure. VSC Tax Solutions. VSC Tax Solutions (@vsctaxsol) VSC Tax Solutions, GST Updates, GST Return.