METTUR-SALEM CHAPTER OF COST ACCOUNTANTS GST – LATEST DEVELOPMENTS AND AMENDMENTS

ADVANCES RECEIVED BY SMALL BUSINESS The Central Government vide Notification No. 40/2017 - Central Tax dated October 13, 2017, has prescribed that registered persons : Having aggregate turnover up to Rs. 1.5 Crore in the preceding FY or whose aggregate turnover in the year in which such person has obtained registration is likely to be less than Rs. 1.5 Crore; and who did not opt for the composition levy under Section 10, shall pay tax on outward supply of goods at the time of supply and furnish the returns accordingly. Therefore, the specified persons mentioned above shall not be required to pay GST on receipt of advances against supply of goods.

FILING OF RETURNS BY SMEs Small and Medium business having : a.aggregate Turnover in the preceding financial year did not exceed Rs.1.50 Cr or b.the registered person whose aggregate turnover in the year in which such person has obtained registration is likely to be less than Rs.1.50 Cr who did not opt for the composition levy under section 10 can file returns on quarterly basis starting from the quarter October to December 2017. (Notification 40/2017 Central Tax) Important to note here is that such benefit is extended to the supplier of goods and NOT to the supplier of services. Registered Buyers from such small business would be eligible to avail input tax credit on monthly basis. Meanwhile all taxpayers will be required to file Form GSTR-3B on a monthly basis till December 2017. .

REGISTRATION EXEMPTED TO SMALL INTERSTATE SERVICE PROVIDERS Vide Notification No.10/2017 Integrated Tax Service providers engaged in providing taxable supplies have been exempted from registration if the turnover does not cross the mandatory registration threshold of Rs. 20 Lakhs. Earlier all the suppliers making interstate supplies were required to get themselves registered irrespective of their turnover, in terms of provisions of sec 24(i). However, this benefit is not extended to supplier of goods.

TURNOVER LIMIT FOR COMPOSITION DEALER Vide 46/2016 notification Central Govt. has enhanced the turnover limit of Composition dealer from Rs.75 Lakhs to Rs. 100 lakhs ( one crore). Other specified category limit enhanced to Rs.75 lakhs from Rs. 50 lakhs. Persons providing any Exempted service now eligible for Composition Scheme. For the purpose of calculation of Turnover for availing Composition Scheme, Turnover pertains to Exempted Service is NOT to be included.

Filing of Return by Composition Dealer Composition dealers can file return (GSTR-4) for 1st quarter (July to Sep 2017) till 15th Nov 2017 instead of earlier date of 18th Oct 2017. The facility for opting Composition Scheme is extended from 16/08/2017 to 31/03/2018. New entrants to the scheme shall file GSTR-4 only for the portion of the quarter from when scheme becomes applicable and shall file returns as regular dealers for the preceding tax period. The period for intimation of details of stock held on the date preceding the date from which the option to pay tax under Section 10 (i.e. Composition scheme) in FORM GST CMP-03 is extended till November 30, 2017. 

EXEMPTION OF RCM Notification 36/2017 (Central Tax Rate) & 32/2017 (Integrated Tax Rate) Exemption from reverse charge u/s 9(4), CGST Act, 2017 and 5(4) of IGST Act, 2017: All the registered persons have been exempted from the applicability of reverse charge u/s 9(4) i.e. goods or services procured from unregistered persons till 31.03.2018. Now, no reverse charge will be required to be paid for procurement from unregistered persons. However RCM will be continued in case of goods or services notified u/s 9(3), e.g. Advocates, Govt services, GTA Services etc. Important to note that this change shall be effective from the date of notification i.e. 13.10.2017.

SERVICES PROVIDED BY GTA TO UNREGISTERED PERSONS EXEMPTED Vide Notification No.32/2017 Central Tax Services provided by GTA to unregistered person have been exempted. Now with this exemption GTA service providers are no longer required to be registered since all the services provided by them are either exempt or covered under Reverse Charge u/s 9(3). So now they can start surrendering theIre registrations.

RCM UNDER SEC. 9(3) OF CGST Registered person is liable to pay GST under RCM in case of used vehicles, seized and confiscated goods, old and used goods, waste and scrap supplied by Government or Local Authority Notification No. 4/2017 dated June 28, 2017 - Central Tax (Rate) RCM Notification specifies the category of goods on which GST is liable to be paid by the recipient under reverse charge in terms of Section 9(3) of the CGST Act, 2017. The Central Government vide Notification No. 36/2017-Central Tax (Rate) dated October 13, 2017 has inserted new entry [S.NO. 6] in the list of goods under RCM Notification, to provide that ‘used vehicles, seized and confiscated goods, old and used goods, waste and scrap’ supplied by CG, SG, Union Territory or Local Authority to any registered person, shall be covered under RCM i.e. CGST thereon shall be paid by such registered person under RCM.

INVOICE CUM BILL OF SUPPLY Registered Person supplying Taxable as well as Exempted Goods or Services or Both to an Unregistered Person shall issue a single “Invoice-cum-Bill of Supply” for all such supplies.

GSTR-3B Some Important Points If something wrong done in GSTR-3B, then correction can be made in next month’s return or during reconciliation between GSTR-1,2 &3 with GSTR-3B. If you have purchased goods from other state, bill date was 31.08.17 and Goods were received on 05.09.17, then ITC should be claimed in the return for the month of September 2017. If you forgot some purchase bill to submit in GSTR-3B of August than you can add them in the Return of September.

IMPORTANT POINTS ON GSTR-3B GSTR-3B : INTERIM RETURN APPLICABLE TO : REGULAR & CASUAL SUPPLIERS APPLICABLE : IN CASE OF EXTENSION OF DUE DATE OF GSTR-3 CURRENT POSITION: TO BE FILED FOR THE MONTHS JULY-DEC 2017 GSTR-3B SHOULE BE CORRECT AND COMPLETE IT CANNOT BE REVISED CHANGE IF ANY SHOULD BE MADE IN GSTR-1,2&3 FILING OF GSTR-1, 2 & 3 IS ALLOWED EVEN IF GSTR-3B NOT FILED DUE DATE: 20TH OF SUCCEDING MONTH LATE FEE IS WAIVED FOR JULY, AUG & SEPTEMBER LATE FILING.

Declaration in Form GST ITC-01 Section 18(1) of the CGST Act, 2017 deals with availability of input tax credit on the inputs held in stock and inputs contained in semi-finished or finished goods held in stock in special circumstances like the persons applying for registration within 30 days from the date on which he become liable to registration, persons taking voluntary registration, and persons ceasing to pay tax under composition scheme etc.  Notification No. 44/2017 - Central Tax dated October 13, 2017, has extended the time limit for furnishing a declaration in FORM GST ITC-01, by the registered persons, who have become eligible to avail the input tax credit under Section 18(1) of the CGST Act, 2017 during the months of July 2017, August 2017 and September 2017 upto October 31, 2017. 

FORM GST TRAN-1 Order No.7/2017: Extension of due date for filing original GST TRAN-1 to 30th Nov 2017. Order No.8/2017: Extension of due date for filing Revised GST TRAN-1 to 30th Nov 2017.

BRIEF GIST OF THE NOTIFICATIONS Notification No.51/2017 – Cancellation of migrated cases extended upto 31st Dec 17. Notification No.52/2017 – Extension of time limit for filing ITC-01 applicable to New Registrations upto 30th Nov 2017. Notification No.53/2017 – Extension of time limit for filing ITC-04 for Job Work details upto 30th Nov 2017.

Notification No.54/2017: - LAST DATE FOR FILING OF GSTR-2 FOR THE MONTH OF JULY IS EXTENDED TO 30TH NOV 17. - LAST DATE FOR FILING OF GSTR-3 FOR THE MONTH OF JULY IS EXTENDED TO 11TH DEC 17.

TDS AND TCS PROVISIONS OPERATIONALIZATION OF TDS AND TCS PROVISIONS PROPOSED IN GST ACT ARE POSTPONED TILL 31/03/2018.

E-Way BILL THE SYSTEM RELATING TO E-WAY BILL TO BE INTRODUCED IN A STAGGERED MANNER EFFECTIVE FROM JANUARY 1, 2018. SUCH SYSTEM SHALL BE ROLLED OUT NATIONWIDE WITH EFFECT FROM APRIL 1, 2018