GST Impact: Undue profit of over Rs 1 crore to come under authority’s lens

by | posted in: Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0
It will take two-three months time to gauge whether the benefits of GST are being passed on to consumers. By then, the authority would be put in place

The proposed anti-profiteering authority under the new GST regime will take up for scrutiny only those cases that have mass impact and those where undue profit of more than Rs 1 crore has been earned, a senior government official said. A five member National Anti-Profiteering Authority, headed by a secretary-level officer, will be set up soon to keep a tab on businesses that have not passed on to consumers the benefit of lower tax rates under the Goods and Services Tax (GST) regime. “It will take two-three months time to gauge whether the benefits of GST are being passed on to consumers. By then, the authority would be put in place,” the official told PTI. As per the three tier structure — the GST Implementation Committee (GIC) will receive complaints and those which are state specific and involving smaller amounts will be transferred to the state screening committee.

Other cases will be referred to the Directorate General of Safeguards who will finish investigation within 3 months and send the findings to the anti-profiteering authority, which will pass an order in another 3-months time. “The issues which have a national or mass impact will be taken up by the authority. There may be many small cases which would be coming to the GIC, but only those cases where the financial implication is more than Rs 1 crore would be taken up by the authority. Rest would be transferred to the state screening committee,” the official said. ADG Safeguards will act as Secretary to the National Anti-Profiteering Authority and will coordinate between the authority and the DG Safeguards office, the official added.
The Central Board of Excise and Customs (CBEC) last week appointed Samanjasa Das as the Additional Director General (ADG) Safeguards in the Directorate General of Safeguards.

Das was ADG in the Directorate General of Central Excise Intelligence (DGCEI). In the three-tier structure for monitoring anti- profiteering, the GST implementation committee, including four officers each from the Centre and states and one officer from the GST Council, will first receive the complaints. Thereafter, DGS, which has the power to issue summons, will conduct investigation and give its findings to the authority. The anti-profiteering authority, if it finds that a company has not passed on the GST benefits, will either direct it to pass on the benefits to consumers or if the beneficiary cannot be identified will ask the company to transfer the amount to the ‘consumer welfare fund’ within a specified timeline. The authority will have the power to cancel registration of any entity or business if it fails to pass on to consumers the benefit of lower taxes under the GST regime, but it would probably be the last step against any violator.

According to the anti-profiteering rules, the authority will suggest return of the undue profit earned from not passing on the reduction in incidence of tax to consumers along with an 18 per cent interest, as also impose penalty. A five member committee, headed by Cabinet Secretary P K Sinha, comprising Revenue Secretary Hasmukh Adhia, CBEC Chairman Vanaja Sarna and chief secretaries from two states, will soon finalise the Chairman and members of the authority. It will be in existence for just two years unless the GST Council extends the tenure. The chairman will be paid a monthly salary of Rs 2.25 lakh plus other allowances and benefits, as are admissible to a central government officer holding posts carrying the same pay. Technical members will be paid a monthly salary of Rs 2,05,400. The chairman and members will hold office for a term of two years or until the age of 65-years, whichever is earlier.

Source: http://www.financialexpress.com/economy/undue-profit-of-over-rs-1-crore-to-come-under-gst-authoritys-lens/775391/

77.5L traders registered under GSTN till July 18

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0

The Government on Friday said as many as 77.5 lakh traders are registered on GSTN and help desks have been set up in every commissionerate to facilitate filing of tax return. “Till July 18, 2017, the total number of GSTIN (Goods and Services Taxpayer Identification Number) registration is 77,55,416,” Minister of State for Finance Santosh Kumar Gangwar said in a written reply to the Lok Sabha.

He further said Internet is not required for doing or conducting business, but it would be required only for the purpose of filing of returns under the GST. “The Government has ensured that the return filling process is made convenient for all taxpayers by setting up help desks in every commissionerate and by appointing GST Suvidha Providers,” he said.

Gangwar in another reply said it is difficult to predict whether corruption will be wiped out, but the implementation of GST will definitely bring about transparency in business operations related to taxation. The implementation of GST in itself is expected to have a positive impact on the overall growth of the economy, he said, adding that it is also expected to have a positive impact on the ease of doing business and making India an even more attractive destination for foreign investments.

Various studies, including that from NCAER, have estimated that growth in GDP to be around 1-2 per cent due to the implementation of GST.Replying to another question, Gangwar said, since GST has been implemented only with effect from July 1, it cannot be stated that it helps to bring out black money at this moment.However, he said, the provision in SGST, CGST, UTGST and IGST have a self policing mechanism.

Source: Daily Pioneer

GST deadline: Tax composition scheme last date extended till August 16

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0
The government today extended the deadline for small businesses to opt for the composition scheme in the GST regime by nearly four weeks to August 16.

The government today extended the deadline for small businesses to opt for the composition scheme in the GST regime by nearly four weeks to August 16.

Small businesses with turnover of up to Rs 75 lakh earlier had time till today to opt for the scheme in the Goods and Services Tax regime. “The Board hereby extends the period for filing an intimation in Form GST CMP-01… up to August 16, 2017,” the Central Board of Excise and Customs (CBEC) said in an office order.

To opt for composition scheme, the taxpayer needs to log into his account at the GST Portal www.gst.gov.in and select ‘Application to opt for the Composition Scheme’ under ‘Services’ menu. They have to fill up the Form GST CMP-01 to opt for the scheme.

Under composition scheme, traders, manufacturers and restaurants can pay tax at 1, 2 and 5 per cent, respectively.  Businesses opting for the composition scheme will see a lesser compliance burden as they will have to file returns only once in a quarter as against monthly returns to be filed by other businesses.

There are over 70 lakh excise, VAT and service taxpayers who have migrated to the GSTN portal for filing returns in the GST regime which kicked in from July 1.  Besides, there are over 8 lakh new taxpayers who have registered on the portal. These new registered taxpayers can opt for the composition scheme at the time of registration.

Source: Financial Express

GST impact on taxpayers: GSTN chief Navin Kumar says 35,000 registering every day

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0
Over two weeks into the goods and services tax (GST) regime, Navin Kumar, chairman of GSTN — the IT backbone of the system — speaks to Sumit Jha on how taxpayers have adopted the new system.

Over two weeks into the goods and services tax (GST) regime, Navin Kumar, chairman of GSTN — the IT backbone of the system — speaks to Sumit Jha on how taxpayers have adopted the new system.

What are the latest numbers on migration and new registrations on GSTN platform?

Till June 16, over 70 lakh have migrated to the portal while 7.4 lakh new taxpayers have registered so far. The number of migration has dwindled from 30,000 daily to about 12,000 since we reopened the window on June 25. However, the rate of new registration is still going as strong as it was on June 25 with nearly 35,000 taxpayers registering every day. Our system will remain open for migration till September 25 (3 months).

What explains the large number of new registrations?

A better analysis of why so many new taxpayers have registered can be provided by the tax department, but we are thinking on the lines that businesses realise that it would be harder to do business if they remain outside GST. According to our study, we were expecting a 4-5% growth in new taxpayers yearly. On an 80-lakh existing taxpayer base, this translates into around 4 lakh new registrations. Since June 25, we have had 7.40 lakh new registrations, which is nearly double our expectations. It shows businesses have welcomed GST.

What has been the response for composition scheme?

Till June 16, only 90,000 businesses had opted for composition scheme. I believe many more would want to but the problem is, if you don’t opt for it now, the next opportunity will arise only next year. Though we had collected information on composition scheme from VAT we can’t say off-hand how the registration under GST so far compares with the the figures in the VAT. One of the possible explanation for a subdued number could be that any inter-state supply made by a business makes it ineligible for the scheme.

Has the GSTN been able to deliver the application programming interfaces (APIs) on time?

There are two kinds of APIs: One is government-to-government meant for connecting the tax department with the GSTN, which is already functional. As far as APIs for GST suvidha providers (GSPs) are concerned, we had a meeting with them in June, where we shared a time schedule for releasing APIs. So far, we have stuck to that schedule.

Is there any pilot testing for uploading invoices being carried by GSTN?

The next big thing happening is we are opening the facility for uploading invoices for a closed group of businesses from June 24. Business-to-business people are required to record transactions at the invoice level for filing return. If you are generating 50,000 invoices every day, don’t wait until the last moment. If you have 5,000 invoices in a month, you can upload weekly but it must be done regularly.

A month ago you had questioned the GSPs’ preparedness. What is the status now?

We have asked all GSPs to be prepared, and they have assured us that they are working towards that. The invoice uploading pilot will tell us where they stand.

What is the expected format of filing interim return in August?

This is to be filed in the GSTR3B form where the taxpayer has to indicate his tax liability and input tax credit. So, it would be on self-declaration basis. When they submit the first full return in September for July, we will match their input tax credit submitted through GSTR3B as a form of cross-verification. The final position will be told to them then.

When is the e-way bill likely to come for approval?

The National Informatics Centre (NIC) is working on the e-way bill, and they are supposed to bring it for consideration by October 1. Currently, the removal of check posts at state borders is due to the nature of GST. Earlier you had tax arbitrage between VAT and CST which is gone now. However, state governments are concerned about movement of goods without paying taxes, which would be resolved once e-way bill is introduced.

Can businesses make amends in their information now?

We started the facility to amend registration data from June 18. Many people are coming and saying they need to change some data, including bank account number or phone number. Registration of non-residents and casual taxpayers will also open on June 18. This is for the people who come over in the country for a fair or exhibition for a few days or a month.

Source: http://www.financialexpress.com/economy/gst-impact-on-taxpayers-gstn-chief-navin-kumar-says-35000-registering-every-day/769121/

GSTN portal to be ready for invoice uploading from July 24

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0

Businesses can start uploading their sale and purchase invoices generated post-July 1 on the GSTN portal from July 24, a top company official said today.

The Goods and Services Tax has kicked in from July 1 and so far, the GST Network, the company handling the IT backbone for the new tax regime, has been facilitating registration of businesses.

“We plan to launch the invoice upload utility on the portal on July 24 so that businesses can come forward and start uploading the invoices on a daily or weekly basis to avoid a month-end rush,” GSTN Chairman Navin Kumar told PTI.

Generating invoices for dealings above Rs. 200 and keeping invoice records in serial number even if maintained manually, are pre-requisites for claiming input tax credit under the GST regime.

The GSTN had last month launched an offline Excel format for businesses to keep their invoice records and from July 24 this Excel sheet can be uploaded on the portal.

Kumar said GSTN would put up a video on its portal to assist businesses in uploading invoices.

Besides, a call centre help desk has been set up to assist taxpayers regarding any query they might have about the new tax regime.

“We have been reaching out to trade and industry associations telling them that those who have about 10,000 invoices a day, they should upload it on GSTN portal on a daily/ weekly basis to avoid last moment rush,” Kumar said.

So far, over 69 lakh excise, VAT and Service Tax assessees have migrated to the GSTN portal and nearly five lakh new registrations have happened under GST.

Under GST, which is a single tax in place of multiple central and state levies such as excise, service tax and VAT, businesses are required to upload on GSTN portal invoices of their trade every month.

Kumar had earlier said the offline Excel tool can upload 19,000 invoices data on the GSTN portal at one go and the process takes just half-a-minute.

So, if businesses which generate about 10,000 invoices a day upload the data on a daily or weekly basis, it would be less cumbersome for them.

While uploading invoices on the GSTN portal, a business would need to mention the invoice number and date, customer name, shipping and billing address, customer and taxpayer’s GSTIN, place of supply and HSN code.

Also, the taxable value and discounts and rates of CGST, SGST and IGST would have to be filled, along with item wise details including description, quantity and price.

Source: http://www.thehindubusinessline.com/economy/gstn-portal-to-be-ready-for-invoice-uploading-from-july-24/article9770819.ece

Taxpayers have to opt for GST composition scheme by July 21

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0

Small businesses with turnover of up to Rs. 75 lakh have time till July 21 to opt for composition scheme under the Goods and Services Tax regime, GST Network said.

To opt for composition scheme, the taxpayer needs to log into his account at the GST Portal www.gst.gov.in and select ’Application to opt for the Composition Scheme’ under ’Services’ menu, a GSTN statement said.

“Any person who has been granted registration on a provisional basis and has turnover not exceeding Rs. 75 lakh, and who wishes to opt for the composition levy, is required to electronically file an intimation, duly signed or verified through EVC, at the GST portal on or before July 21, 2017,” GSTN Chairman Navin Kumar said.

Under composition scheme, traders, manufacturers and restaurants can pay tax at one per cent, two per cent and five per cent, respectively in the new indirect tax regime.

Businesses opting for composition scheme will see a lesser compliance burden as they will have to file returns only once in a quarter as against monthly returns to be filed by other businesses.

There are over 69 lakh excise, VAT and service taxpayers who have migrated to the GSTN portal for filing returns in the GST regime which ushered in on July 1.

Besides, there are over 4.5 lakh new taxpayers who have registered in the portal. These new registered taxpayers can opt for the composition scheme at the time of registration.

GSTN also clarified that taxpayers who have been given provisional IDs must complete all parts of the enrolment at the GST portal and submit the same along with the required documents with digital signature or EVC.

Once the form is completed and submitted, the enrolled taxpayer will be issued the final Certificate of Registration which would mark completion of migration under GST.

In case an enrolled taxpayer fails to submit the duly filled form with the requisite documents, his provisional registration is liable to be cancelled.

“A period of three months is allowed to complete the enrolment procedure by September 22, 2017. In the interim, they can issue tax invoice using the provisional ID already allotted to them,” Kumar said.

Source: http://www.thehindubusinessline.com/economy/policy/taxpayers-have-to-opt-for-gst-composition-scheme-by-july-21/article9767610.ece

GSTIN display on sign boards must for businesses

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs | 0
The Goods and Services Taxpayer Identification Number (GSTIN) is a 15-digit number which taxpayers get after registering with the GST Network portal.

Traders and businesses will have to display the GST registration number on their business sign boards and the registration certificate in premises.

Also, composition dealers will have to mention that they are availing the composite scheme and are not entitled to collect taxes from people.

“Every taxable person is required to display his GSTIN number on name board or sign board of business and is also required to display his registration certificate in business premises so that a citizen can easily find out whether a person is registered or not,” a tax official said.

The composition dealer is required to mention in the business premises along with registration certificate that he is not entitled to collect tax from taxpayers.

“That is the legal requirement. So that the citizen can find out whether the person from whom he is buying is entitled to collect tax from him or not,” the official added.

The Goods and Services Taxpayer Identification Number (GSTIN) is a 15-digit number which taxpayers get after registering with the GST Network portal.

Initially, a business is given a provisional ID on logging into the portal and within 3 months the business has to complete the registration process by giving details of business. This provisional ID is then converted to GSTIN.

Revenue Secretary Hasmukh Adhia said that if a business entity does not generate certificate of registration within 90 days then the provisional ID will stand cancelled.

The GST, which subsumes service tax, excise and VAT, have been implemented from July 1.

Source : http://economictimes.indiatimes.com/articleshow/59531590.cms