Jaideep Singh, Chartered Accountant

21/07/2018

Items exempted from GST

• Sanitary pads
• Rakhis, without precious material like gold, silver etc
• Marbles, stone or wood deities
• Raw material used in brooms
• Fortified milk
• Saal leaves
• Coir pith compost
• Circulation and commemorative coins

GST slashed from 28% to 18%

• Washing machine
• Refrigerators, Freezers
• TVs up to 68cm
• Video games
• Vacuum cleaners
• Trailers and semi-trailers
• Mixer grinders
• Shavers & Hair dryers
• Water cooler
• Storage water heaters
• Lithium ion batteries
• Electric iron
• Paint

18% to 12%:

• Handbags including pouches and purses; jewellery box
• Wooden frames for painting, photographs, mirrors etc
• Art ware of cork (including articles of sholapith)
• Stone art ware, stone inlay work
• Ornamental framed mirrors
• Glass statues (other than those of crystal)
• Glass art ware (including pots, jars, votive, cask, cake cover, tulip bottle, vase)
• Art ware of iron
• Art ware of brass, copper/ copper alloys, electro plated with nickel/silver
• Aluminium art ware
• Handcrafted lamps (including panchloga lamp)
• Worked vegetable or mineral carving, articles thereof, articles of wax, of stearin, of natural gums or natural resins or of modelling pastes etc, (including articles of lac, shellac)
• Ganjifa card
• Bamboo flooring
• Zip and Slide Fasteners
• Hand Operated Rubber Roller
• Brass Kerosene Pressure Stove

GST slashed to 5%

• Ethanol
• Solid bio fuel pellets
• Chenille fabrics and other fabrics under heading 5801
• Handloom dari
• Phosphoric acid (fertilizer grade only)
• Knitted cap/topi having retail sale value not exceeding Rs 1000
• Handmade carpets and other handmade textile floor coverings (including namda/gabba)
• Handmade lace
• Hand-woven tapestries
• Hand-made braids and ornamental trimming in the piece
• Toran

21/07/2018

Here we Go 👉
updates 😃

*GST Council Updates*
1. Quarterly Returns approved for taxpayers with turnover less than Rs 5cr ( *tax payments to continue on monthly basis*)
2. Sanitary Napkins exempted from GST going forward
3. No decision on 1% sugar cess
4. GST on bamboo flooring reduced to 12%
5. GST on hotels would now be on actual tariff & not declares tariff
6. Ethanol for Oil Marketing Companies now at 5% vs 18% earlier
7. 5% GST ceiling on footwear raised from Rs 500 to Rs 1000
8. GST on paints & varnishes, wall putty cut from 28% to 18%
9. GST on all leather items cut from 28% to 18%
10. GST on consumer electronics - *TV (up to 27"), Washing Machine, Refrigerator, mixer, juicer, grinder* cut from 28% to 18%
11. GST on special purpose vehicles, work truck, trailer cut from 28% to 18%

09/07/2018

📚 *GST and Goods Transport Agency*
=======================

*Goods transport agency:* Goods transport agency or GTA means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called. A consignment note is an essential condition to be considered as a GTA.

*Consignment note*: A consignment note is a document issued by a goods transportation agency against the receipt of goods for the purpose of transporting the goods by road in a goods carriage.

*Registration requirements:* IF Transports,

a) Exclusivey goods on which RCM applicable (even turnover more than Rs. 20/10 Lacs limit) - NO REGISTRATION

b) Turnover less than Rs. 20/10 Lacs Limit (including RCM based and service to unregistered) - NO REGISTRATION

c) All other cases - REGISTER

*Rate of Tax:* Options available to GTA - 12% with ITC or 5% without ITC AND 5% with ITC by Consignor/consignee at RCM Basis.

*Exemptions:*

The following services provided by GTA by way of transport in a goods carriage are exempt from payment of tax:

(a) agricultural produce
(b) goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed Rs. 1,500
(c) goods, where consideration charged for transportation of all such goods for a single consignee does not exceed Rs. 750
(d) milk, salt, and food grain including flour, pulses, and rice
(e) organic manure
(f) newspaper or magazines registered with the Registrar of Newspapers
(g) relief materials meant for victims of natural or man-made disasters, calamities, accidents, or mishaps
(h) defence or military equipment etc

*Reverse Charge Mechanism:*
A person paying to GTA will pay GST under RCM. (Consignor / Consignee)

The categories on which RCM applicable, include:

(a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948)
(b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India
(c) any co-operative society established by or under any law
(d) any person registered under the CGST Act, the Integrated GST (IGST) Act, the State GST (SGST) Act, or the Union Territory GST (UTGST) Act
(e) anybody corporate established, by or under any law
(f) any partnership firm whether registered or not under any law including association of persons
(g) any casual taxable person

*Input Tax Credit:*

- A person (consignor/consignee) paying GST under RCM will pay GST at the rate of 5% and will take ITC on the same.

- A GTA paying GST at the rate of 5%. No one will get the ITC. OR A GTA paying GST at the rate of 12%, GTA will get the ITC. (Option to opt in beginning of the Financial Year)

CGST/SGST/IGST Aplicability:

The place of supply of services by way of transportation of goods, including by mail or courier to -

(a) a registered person, shall be the location of such person

(b) a person other than a registered person, shall be the location at which such goods are handed over for their transportation.
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14/06/2018

Updates: Circular No. 34/8/2018-GST dated 01/03/18

Q: Whether retreading of tyres is a supply of goods or services?

Ans: In retreading of tyres, which is a composite supply, the pre-dominant element is the process of retreading which is a supply of service. Rubber used for retreading is an ancillary supply.

Which part of a composite supply is the principal supply, must be determined keeping in view the nature of the supply involved. Value may be one of the guiding factors in this determination, but not the sole factor. The primary question that should be asked is what is the essential nature of the composite supply and which element of the supply imparts that essential nature to the composite supply.

Supply of retreaded tyres, where the old tyres belong to the supplier of retreaded tyres, is a supply of goods (retreaded tyres under heading 4012 of the Customs Tariff attracting GST @ 28%)

12/06/2018



GST refund to foreign tourists at airports on the cards

Countries like Australia, Germany, France, Singapore, Japan, Malaysia, United Kingdom and Switzerland offer VAT or GST refund to international tourists subject to certain conditions.

Foreign tourists may soon get to claim GST refunds at airports at the time of exit as the revenue department is working on a mechanism to refund taxes paid by them on local purchases.

Initially, only purchases made by tourists from big retailers would be eligible for Goods and Services Tax (GST) refunds at the airports when the tourist is leaving the country, an official said.

In several countries VAT or GST are refunded to the tourists for purchases made beyond a prescribed threshold.

The department is working out a mechanism which will ensure refund of GST to foreign tourists and for that the field offices have to be sensitised, the official said.

"It has to be ensured that refunds are not claimed on the basis of fake invoices. The refund mechanism could start on the basis of invoices issued by big retailers," the official told PTI.

A provision for GST refund to tourists have been made in the GST law, but it is yet to be operational.

The law has defined the term 'tourist' as a person not normally resident in India, who enters India for a stay of not more than six months for legitimate non-immigrant purposes.

AMRG & Associates Partner Rajat Mohan said tourist refund claims are a great inbound tourism marketing technique with a low cost to the exchequer.

"Internationally, countries like Singapore and Australia have an online robust system connecting multiple refund agencies and retailers on a single platform, offering tourists a seamless and hassle-free experience while verifying, processing and disbursing the tax refunds. Matching such state-of-the-art systems could be a technological nightmare for Indian counterparts," Mohan said.

Countries like Australia, Germany, France, Singapore, Japan, Malaysia, United Kingdom and Switzerlandoffer VAT or GST refund to international tourists subject to certain conditions. These countries also have a threshold of the minimum amount spent for availing these tax refund advantage.

In Australia, to avail the tax benefit the minimum spend should be 300 Australian dollars (around Rs 15,000). Also, the goods have to be purchased from a single business with same Australian business number.

In case of Singapore, the norms are more relaxed and the minimum purchase amount fixed is SGD 100 (around Rs 5,000), while for Japan and Switzerland the threshold has been fixed at 5,401 yen (around Rs 3,000) and 300 Swiss francs (around Rs 20,000), respectively.

08/06/2018

*How is servicing of cars involving both supply of goods (spare parts) and services (labour), where the value of goods and services are shown separately, to be treated under GST?*

(Circular No. 47/21/2018-GST 08th June, 2018)

🗝2.1 The taxability of supply would have to be determined on a case to case basis looking at the facts and circumstances of each case.

🗝2.2 Where a supply involves supply of both goods and services and the value of such goods and services supplied are shown separately, the goods and services would be liable to tax at the rates as applicable to such goods and services separately.

06/06/2018

_*Anti-profiteering measure for GST section*_

*Case studies*

• As per the ET, currently notices are passed to 5 companies i.e. Honda dealer, Hard castle restaurants, McDonalds franchisees for west and south Delhi, Retailer lifestyle.

• Notice to Jaipur-based Sharma trading is also issued for *charging 28% GST on Vaseline but the rate is 18%.*

• Notice against Hard Castle Restaurants is issued on complain that price of cup of coffee *was charged @ 18% instead of its rate at 5%.*

• Notice issued to Pyramid Infratech has said that 36 buyers have accused the *builder of not passing on the benefit of ITC* to them which will lower the total consideration for flats booked under Haryana affordable housing scheme.

• A Bareilly based dealer of Honda cars India- Vrandavanhwaree Automotive ltd. Is charged of charging higher tax when car was *booked in April and delivered on the implementation of GST in July.*

*• All complaints are with standing committee and are asked to submit documents and replies.*

_What we can do_

*If we go to buy something and supplier is charging higher rate and we know prices are less and supplier is saying due to GST we are charging higher rate we can file a complaint to the anti-profiteering committee*

06/06/2018

*Rate of GST on Supply of Old/Used Vehicles* :

Notification No. 8/2018 -Central Tax (Rate) Dated 25-01-2018

i) Chapter Heading 8703

Old & used petrol, LPG or CNG driven motor vehicle having engine capacity >=1200CC & length of >=4000mm
Rate of tax18%

ii) Chapter Heading 8703

Old & used diesel driven motor vehicle having engine capacity >=1500CC & length of 4000mm
Rate of tax 18%

iii) Chapter Heading 8703

Old & used motor vehicle of engine capacity >1500CC (SUVs & UVs)
Rate of tax 18%

iv) Chapter Heading 87

Old & used motor vehicle other than covered in Sl No.1 to 3
Rate of tax 12%

Note:

The above notification shall not apply, if the supplier of such goods has availed input tax credit as defined in clause (63) of section 2 of the Central Goods and Services Tax Act, 2017, CENVAT as defined in CENVAT Credit Rules, 2004 or the input tax credit of Value Added Tax or any other taxes paid, on such goods.GST Compensation cess shall not be applicable by virtue of Notification No. 1/2018 Compensation Cess (Rate) Dated 25th January 2018

*Rate of GST on leasing of Old/Used Vehicles*

Notification No.37/2017 Central Tax (Rate) Dated.13-10-17

Leasing of vehicles purchased and leased prior to 1st July, 2017 would attract GST at a rate equal to 65% of the applicable GST rate (including Compensation Cess).

02/06/2018

Ministry of Finance
*Income Tax Department issues Revised Income Tax Informants Reward Scheme, 2018 *

Posted On: 01 JUN 2018 1:09PM by PIB Delhi

With the objective of obtaining people’s participation in the Income Tax Department’s efforts to unearth black money and reduce tax evasion, a new reward scheme titled “Income Tax Informants Reward Scheme, 2018” has been issued by the Income Tax Department, superseding the earlier reward scheme issued in 2007.

Under the revised scheme, a person can get *reward up to Rs. 50 lakh* for giving specific information in prescribed manner to the designated officers of Investigation Directorates in Income Tax Department about substantial evasion of tax on income or assets in India which are actionable under the Income-tax Act, 1961.

Further, Government of India had earlier introduced *Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015*, in order to investigate and assess income and specific assets kept in foreign countries by people taxable in India, recover tax on it and take other actions like penalty and prosecution. With the objective of attracting and encouraging people to give information about such income and assets actionable under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, *reward up to Rs. 5 crore* has been introduced in the new reward scheme. The amount has been kept high to make it attractive to potential sources in foreign countries. Under this Scheme, a person can get reward for giving specific information in prescribed manner about substantial tax evasion on income and assets abroad which are actionable under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

Information under this scheme has to be given in prescribed manner to the Director General of Income Tax (Investigation) or an officer whom he may authorize in this behalf. Foreigners will also be eligible for reward under this scheme. Identity of the persons giving information will not be disclosed and strict confidentiality shall be maintained.

Details of the revised reward scheme are available in the Income Tax Informants Reward Scheme, 2018, copy of which is available in Income Tax offices and on the official website of Income Tax Department www.incometaxindia.gov.in .

The Income Tax Department NEVER asks for your PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts through e-mail.

31/05/2018

*GST Updates on Cancellation of GST Registration Certificate*

As per the instructions given to GST Customer Care or GST department it has been informed to us that even if I have applied for cancellation of GST registration but till the date I do not receive cancellation certificate I need to continue filing my GST return.

Now there would be two kind of cases possible first is where the assessee has *discontinued* his *business* then in such case assessee need to *file Nil return* continuously till the date he does not receive his GST registration cancellation certificate.

*Secondly* there might be a case where assessee has taken the GST registration voluntarily let's say because of interstate sale or supply of service but after notification there is no need to take the GST registration in case of interstate supply of service. In this case assessee has taken the voluntary registration and was charging the GST *even if the turnover was below Rs. 20 lac* now the question is *whether he need to file Nil return or with GST?*

In this case GST customer care department has given their answers as since the GST registration certificate is not cancelled and all the facilities of GST portal is available to the assessee till the assessee not received GST registration cancellation certificate therefore till that date *assessee need to charge GST* from their customer as he was charging before and accordingly need to pay GST to the government *and file Returns accordingly.*

Please note that, they have upation on this topic in their system because i asked them to confirm it from their senior but they said that this issue is already answered/updated it our sytem.

therefore in my opinion in case you do not receive cancellation certificate either you should go to the department and get your assessment done to get the cancellation certificate or *continue to file your gst return as a regular dealer with GST.* Do not wait for the litigation. I know the law says differently but this is the land of law where law is not what it has been written in the Act but it is What an officer told to you or what he understands. Small assessee never go for the appeal or courts.

30/05/2018

👉🏻👉🏻Update by Vikas Sharma
______________________________________

*Related Party Transactions under Companies Act, 2013*
==========================

Related Party Transactions are a common occurrence in the business marketplace. Companies often seek business deals with entities to which they are familiar with or have been connected with their directors and KMPs. While these types of transactions are legal and ethical, the special relationship inherent between the involved parties creates potential conflicts of interest, which must be regulated because they can result in actions that benefit the people involved as opposed to the shareholders. Related party transactions have been an area that has received considerable attention in India and across the globe. Significant corporate frauds have happened connected to Related Party Transactions or similar arrangements.

Earlier, in the Companies Act, 1956, contracts or transactions in which directors or their relatives are interested, had been regulated through a 'Government approval-based regime' now as per Companies Act, 2013 this has been shifted to 'Shareholder approval and disclosure-based regime'.

*Related Party [Section 2(76)]*

As Per Companies (Amendment) Act, 2017, following parties included in the definition of related party:

Anybody corporate (Earlier, it was written as ‘Company') which is holding, subsidiary or an associate company of such company or a subsidiary of a holding company to which it is also a subsidiary or an investing company or venture of the Company, shall be considered as a related party.An investing company or the venturer of the company' will mean a body corporate whose investment in the company would result in the company becoming an associate company of the body corporate.

*Related Party Transaction (Section 188)*

Approvals Required for Carrying out RPTs

1. Board Approval

No company shall enter into any contract or arrangement with a related party with respect to above mentioned transactions except with the approval of Board by way of resolution (Not Circular Resolution).Approval of Board of Directors is required for each and every related party transaction irrespective of capital of the company and the value of the transactions.If a Director is interested in any contract or arrangement with a related party he shall not be present at the meeting during discussions on such resolution, Moreover, he shall neither discuss nor vote and also not be counted for quorum in respect of such transaction. Provided this is not applicable to a company in which 90 % or more members, in number, are relatives of promoters or are related parties. (Companies Amendment Act, 2017)

2. Audit Committee Approval

All related party transactions shall require approval of the Audit Committee and the Audit Committee may make ‘omnibus approval' for related party transactions proposed to be entered into by the company subject to the certain conditions like:

1. Omnibus approval shall be valid for a period not exceeding one financial year and for Transaction upto Rs. 1 Crore and shall require fresh approval after the expiry of such financial year;

2. The Audit Committee shall, after obtaining approval of the Board of Directors, specify the criteria for making the omnibus approval which shall include the following, namely:-

Name of the related parties;Maximum value of the transactions, in aggregate, which can be allowed under the omnibus route in a year;Maximum value per transaction which can be allowed;Extent and manner of disclosures to be made to the Audit Committee at the time of seeking omnibus approval;Review, at such intervals as the Audit Committee may deem fit, related party transaction entered into by the company pursuant to each of the omnibus approval made;Transactions which cannot be subject to the omnibus approval by the Audit Committee.

However, Omnibus approval shall not be made for transactions in respect of selling or disposing of the undertaking of the company.

Whether RPT should be first approved by Board or Audit Committee?

The Companies Act doesn't specify whether any related party transactions should be first approved by Board or Audit Committee. In bigger transactions, the board may first refer proposed related party transactions to the audit committee and upon receiving the audit committee approval; the board will make its decision and approve the transactions. It would not be appropriate if the Audit Committee rejects a transaction, which has already been approved by the board. Hence, all matters relating to related party transactions and other matters involving conflicts of interest should be first referred to the Audit Committee.

Where Members (Shareholders) approval required?

3. Approval of Members (Shareholders)

Approval of Members by way of Ordinary Resolution (Earlier, it was ‘Special Resolution')required if the transactions value increased from above threshold.The transactions between Holding Company and its Wholly Owned Subsidiary are exempted from taking member approval.

What if Post transaction approval is not received?

Where any Related Party Transactions entered into without obtaining the consent of the Board or approval by Members and if it is not ratified by the Board or by the members at a meeting within 3 months from the date on which such contract or arrangement was entered into, such contract or arrangement shall be voidable at the option of the Board or members and if the contract or arrangement is with a related party to any director, or is authorized by any other director, the directors concerned shall indemnify the company against any loss incurred by it.

*Duties of Directors*

The act imposes a duty on every director to disclose the contracts or arrangements with the company, whether existing or proposed or acquired subsequently, in which he, directly or indirectly, has any interest or concern.

The notice for relevant disclosure should be made by the interested director to the Board of Directors at a meeting of the Board in which the transaction is to be discussed, so that information is available to the Board in a timely manner.

Failure to make disclosure should be treated as a default. Director concerned should be held liable to penalties and he should be deemed to have vacated his office. This should also be a condition of disqualification to hold office of director of that company for a prescribed period.

*Register*

The company should maintain a register, in which all transactions above a prescribed threshold value in respect of contracts/arrangements, in which directors are interested, should be entered. The register should be kept at registered office of the company and should be open to inspection to all members.

*Complete Exemption from Section 188*

The provisions of this section are not applicable if the transactions are in Ordinary Course of Business and at Arm's Length Basis.

*Ordinary Course of Business*

The phrase 'ordinary course of business' is not defined under the Companies Act 2013 or rules made thereunder. It seems that the ordinary course of business will cover the usual transactions, customs and practices of a business and of a company.

The Allahabad High Court has observed that for a transaction to be construed to have occurred in the ordinary course of business, there must be 'an element of continuity and habit for it to constitute the exercise of a profession and business.' However, the frequency of transactions over a period of time should not be the only criterion and it cannot be restricted to the core business activities of a company alone. Support services that do not form part of the main core activity of a business, but are necessary and ancillary for running the core business, can also be considered as transactions that happen during the ordinary course of business.

The assessment of whether a transaction is in ordinary course of business is very subjective, judgemental and can vary on case-to-case basis giving consideration to nature of business and objects of the entity. Companies should consider variety of factors like size and volume of transactions, arms-length, frequency, purpose, etc, to make this assessment.

*Arm's Length Basis*

Arm's length transaction means a transaction between two related parties which is conducted as if they were unrelated, so that there is no conflict of interest.

For e.g, let's assume a bank whose normal course of business provides 9% rate to its customers for placing fixed deposit for 2 year tenure. It offers 9.25%, higher rate, to all its group employees. One may argue that the same is not at arm's length. The arm's length assessment is subjective exercise and requires judgement after considering various parameters.

*Offence & Penalty*

Any director or other employee of a company, who had entered into or authorized the contract or arrangement in violation of the provision of this section shall, in case of listed company, be punishable with imprisonment for a term which may extended to one year or fine which shall not be less than twenty-five thousand but which may be extended to five lakh rupees or with both; and in case of any other company, be punishable with fine which shall not be less than twenty-five thousand but which may be extended to five lakh rupees.
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29/05/2018

BCAS Initiative - Educational Sevies on GST: https://t.co/cAkoUwQelj via

GST for Charitable Trusts: https://t.co/1oVl4JWUB6 via

Composition Scheme: https://t.co/UBa6D4k3p1 via

GST on Co-operative Societies: https://t.co/kFSv9ADUwC via

GST under Agency Principle: https://t.co/P84NUdGEI7 via

Procedures for LUT/Bonds/Export Refunds: https://t.co/wShrcJugqJ via

Levy Provisions under GST: https://t.co/ZtQX2Zdhnx via

Composite vs. Mixed Supplies: https://t.co/RlStkfja1N via

Bill to/ Ship to - GST Implications: https://t.co/6TR4ZLncLP via

Capital Goods - GST Issues around Credit: https://t.co/5kkJElEDnR via

Moevable Works Contracts: https://t.co/OHM0moHOLd via

Job Work Provisions: https://t.co/ICNpaYq9fU via

Works Contracts - Issues for Contractors:

President Message on New Initiative of BCAS by CA Narayan Pasari