GST Update 03 2018-19 19th August 2018 FOR PRIVATE CIRCULATION ONLY M.S. CHHAJED & CO. GST UPDATE 3/18-19 1
Reverse Charge Mechanism The Central Government vide Notification No. 22/2018- Central Tax (Rate) further amended the notification no. 12/2018- Central Tax (Rate) the general reverse charge mechanism (RCM), i.e. on supply from unregistered person to a registered person, levied u/s. 9(4) of the Central GST Act, 2017 viz-a-viz 5(4) of the Integrated Tax, 2017 and 9(4) o fate Gujarat GST Act, 2017, has been deferred to 30.09.2019. It must be noted that RCM shall still be applicable on services notified vide Notification no. 13/2017- Central tax (Rate), 22/2017- Central tax (Rate) and 03/2018- Central Tax (Rate). GST Return Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 32/2018- Central Tax, dated August 10th, 2018, notifying the due dates for return filing for the period July 2018 to March 2019. GSTR 3B Period July 2018 - March 2019 Due Date On or before 20th of the succeeding month along with the payment of tax. M.S. CHHAJED & CO. GST UPDATE 3/18-19 2
GSTR 1 (Optional for assessee s having turnover exceeding 1.5 crores in previous year) Quarter July - September, 2018 31st October, 2018 October - December, 2018 31st January, 2019 January - March, 2019 30th April, 2019 Due Date GSTR 1 (All registered persons having aggregate turnover of more than 1.5 crore rupees in the preceding financial year or the current financial year) Period Due Date Jul-18 11th August, 2018 Aug-18 11th September, 2018 Sep-18 11th October, 2018 Oct-18 11th November, 2018 Nov-18 11th December, 2018 Dec-18 11th January, 2019 Jan-19 11th February, 2019 Feb-19 11th March, 2019 Mar-19 11th April, 2019 Changes to Tax Audit Report (Income Tax) Vide Circular No. 6/2018 dated 17.08.2018 the Central Board of Direct Taxes have decided to defer the reporting requirement under clause 30C (pertaining to General Anti-Avoidance Rules (GAAR)) as well as clause 44 (pertaining to Goods and Services Tax (GST) compliance) of the revised 3CD tax audit report which is applicable from 20.08.2018. M.S. CHHAJED & CO. GST UPDATE 3/18-19 3
GST Migration The taxpayers who filed Part A of FORM GST REG-26, but not Part B of the said FORM are requested to approach the jurisdictional Central Tax/State Tax nodal officers with the necessary details on or before 31st August, 2018 for enabling migration. Copy of the press release is attached. 28th GST Council Meeting Simplified Return All taxpayers excluding small taxpayers and a few exceptions like ISD etc. shall file one monthly return. The return is simple with two main tables. One for reporting outward supplies and one for availing input tax credit based on invoices uploaded by the supplier. Invoices can be uploaded continuously by the seller and can be continuously viewed and locked by the buyer for availing input tax credit. This process would ensure that very large part of the return is automatically filled based on the invoices uploaded by the buyer and the seller. Simply put, the process would be UPLOAD LOCK PAY for most tax payers. NIL return filers (no purchase and no sale) shall be given facility to file return by sending SMS. The Council approved quarterly filing of return for the small taxpayers having turnover below Rs. 5 Cr as an optional facility. Quarterly return shall be similar to main return with monthly payment facility but for two kinds of registered persons small traders making only B2C supply or making B2B + B2C supply. For such taxpayers, simplified returns have been designed called Sahaj and Sugam. In these returns details of information required to be filled is lesser than that in the regular return. The new return design provides facility for amendment of invoice and also other details filed in the return. Amendment shall be carried out by filing of a return called amendment return. Payment would be allowed to be made through the amendment return as it will help save interest liability for the taxpayers. M.S. CHHAJED & CO. GST UPDATE 3/18-19 4
Textile Industry GST Council meeting on 21.07.2018 had suggested a slew of measures for industry. To give effect to the said measures, notifications were issued on 26.07.2018. Notifications 20/2018 Central tax (Rate) may have far reaching impact on the textile sector. Normally industry with inverted rate structure were allowed refund of accumulated ITC. Inverted rate structure means wherein the rate of GST on inputs is higher than the rate of ITC on output tax. Textile industry had this issue wherein their inputs like yarn etc. were at higher rate but output was at 5 %. This had led to accumulation of Input tax credit with the textile players. The textile industry was however not allowed to claim refund of the said Input tax credit. Recently the Finance Ministry came out with a notification wherein refund will be allowed to the textile industry from 1st August, 2018 for Input tax credit accumulated due to inverted rate structure with a condition that the accumulated credit lying unutilised in balance as on 31st July, 2018 shall lapse. This mechanism of institutional loot itself is bad in the eyes of law. Immediate clarity is required in the said matter to clear the confusion on the said notification else the textile industry will have a substantial impact on their profitability and cash outflows in near future. It is expected that the textile industry will urge and represent to the government for clarifying or making necessary amendments in the said notification. M.S. CHHAJED & CO. GST UPDATE 3/18-19 5
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Contact M. S. Chhajed & Co. Chartered Accountants Kamal Shanti, Nr. Sardar Patel Colony Under Bridge, Sardar Patel Colony, Ahmedabad 380014 (O) +91 79 48902330/ 26400989 www. mschhajedandco.com M.S. CHHAJED & CO. GST UPDATE 3/18-19 7