Latest GST Updates & GST News in India

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Finance commission Chairperson seeks big changes in GST structure, Finance commission chairman N K Singh called for major changes in the GST structure, including reducing the complex compliance procedures and also doing away with frequent rate changes, to improve collection.

Facts: A contract was awarded for supply of Engineering, Procurement & Construction (EPC) for establishment of Integrated Cryogenic Engine & Stage Test Facility (ICET) wherein both goods & services are supplied.

Contention: Advance ruling was sought to determine whether the above contract be construed to be composite supply under GST?

Ruling: Yes, the above contract is a composite contract under GST.

Explanation: Under GST, composite supply is a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both which are naturally bundled and supplied in conjunction with each other in ordinary course of business.

In the case under review, scope of work involves planning, documentation, site management, procurement of equipment, civil, electrical and structural works, etc., followed by commissioning of the entire system to have an operational Integrated Cryogenic Engine & Stage Test Facility for the satellite launch program. Hence, mere supply of equipment/instruments is not done but the same is integrated, erected and finally commissioned at Integrated Cryogenic Engine & Stage Test Facility. Also, the invoicing for supply of equipment/instruments and services is indivisible.
Therefore, the whole contract for establishment of Integrated Cryogenic Engine & Stage Test Facility (ICET) is a composite contract as various supplies of goods and services are naturally bundled together.

Raise in GST rates will only worsen the situation for low-income group families with dangerous impact on the economy. GST Council is considering major changes in the GST rates to increase revenue. Rate increase on essential products can squeeze the spending power of large sections of people. Whatever the government decides, the people can just hope that there are no significant increase in the tax rates. To know more read here: https://bit.ly/34yRywV

At the upcoming GST council meeting several measures aimed at plugging revenue leakages under GST regime are expected to figure out to perk up collections. Some suggestions the the slab of 5% be rised to 8% or 10%, and the 12% and 18% slabs be bumped up into one of 20%. The GST council sought the views of states to address revenue shortfall. The centre is expected to ask the states to share the burden of revenue loss on the count of cuts in tax rates as also exemptions. For read more visit: http://vsctaxsol.com/IDE/blogdetail/?Title=_GST_Council_likely_to_discuss_prevention_of_Revenue_Leakage

The Fifteenth Finance Commission (FFC) recently submitted its report for the year 2020-21 to the President. The panel’s chairman, Mr. N. K. Singh recently hinted at the need for incentives to states that have higher collection and a need to have predictability in the tax structure. Read the full blog here: https://bit.ly/2F5idHD

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.

SGST stands for State Goods & Services Tax. It represents the tax levied by the state governments on various categories of Goods & Services falling under the GST net and is applicable to the intrastate movement of taxable goods and services.

Find & learn more about the CGST stands for (Central Goods & Services Tax) and know also CGST Rules, Act, Notifications, Circulars, Case Laws and Orders at Vsctaxsol a dedicated web-portal for GST services solutions in India.

Find & get more about IGST stands for (Integrated Goods & Services Tax) and know also IGST Rules, Act, Notifications, Circulars, Case Laws and Orders at Vsctaxsol a dedicated web-portal for GST services solutions in India.

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).

Find & get more about the UTGST, what is UTGST (Union Territory Goods & Services Tax), and know also UTGST means, UTGST Rules, Act, Notifications, Circulars, Case Laws and Orders at Vsctaxsol webportal in Jaipur India.

Continuing with our series of updates from the Union Budget 2020, today we will talk about some of the key amendments proposed to the existing GST structure.

Rajasthan High Court Jodhpur bench has intervened to address the grievances and extend the due date of filing GSTR-9 and GSTR-9C for taxpayers in the state till February 12, without late fees. The court further directed the department to file a detailed reply about their preparedness and GSTN capacity.

Find & get more about the CESS, what is CESS, CESS full form and know also meaning of CESS, CESS Rules, Act, Notifications, Circulars, Case Laws and Orders at Vsctaxsol webportal in Jaipur India.

Goods and Services Tax (Compensation to States) Act, 2017 was enacted to levy Compensation cess for providing compensation to the States for the loss of revenue arising on account of implementation of the goods and services tax with effect from the date from which the provisions of the Central Goods and Services Tax (CGST).

The International Monetary Fund (IMF) has stated that the goods and services tax (GST) collections in India have been below potential. The organization said that multiple rates along with exemptions and implementation challenges have affected the GST collections in India.

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. A brief analysis of the same is as under:
 If company has given any loans and advances to any party and same has been recovered or not as per stipulated terms is to be given by auditor. It is specially incorporated so as to save banks NPA.
 Whether any income not recorded in the books of account has been kept out or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961, if so, whether the previously unrecorded income has been properly recorded in the books of account during the year;
 In case the company has been sanctioned working capital limits in excess of 5 crore rupees, in aggregate, from banks or financial institutions on the basis of security of current assets; whether the quarterly returns or statements filed by the company with such banks or financial institutions are in agreement with the books of account of the Company.
 Reporting on revaluation of Property, Plant and Equipments by company
 Reporting of proceedings under the Benami Transactions* (Prohibition) Act, 1988.
 Reporting of investments in or providing of any guarantee or security or granting any loans or advances.
 Loans overdue for more than 90 days, ever greening of loans, reporting on any *loan default, etc.
 Reporting of compliances with RBI directives and the provisions the Companies Act with respect to deemed deposits.
 Reporting on treatment by auditor of whistle-blower complaints received during the year by the company

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.

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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.

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.

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 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.

GST Council have not come up with an idea of extension of monthly complying return GSTR-3B because of Covid-19. GSTR-3B was to be filled by 20th of march if the aggregate turnover is or exceeds Rs. 5 crores. But there are still cases where the same has not been filled yet till 22nd of march.