Since introduction of GST in July 2017, it has been a challenging task for the dealers, irrespective of the fact as the whether the dealer is migrated from earlier VAT registration or a new registered dealer under GST itself.
N number of issues reported by dealers in regard to filing of returns in GST portal which works hardly in proper shape and I am sure there are cases where the dealers could have filed their returns, where it may be of nil returns or limited with few transactions.
GST council has fully understood the difficulties of the dealers and accordingly the due date for filing of returns has been extended as per the appended table. This is basically not only the time for dealers to file the returns but more importantly it is an adequate breathing time GSTN to make up its software development to meet the demands of the GST act and rules.
Following is the table of time extension, approved by the GST council in the meeting held on 09 09 2017 at Hyderabad;
|Sl. No.||Details / Return||Tax Period||Revised due date|
|For registered persons with aggregate turnover of more than Rs. 100 crores, the due date shall be 3rdOctober 2017|
|4||GSTR-4||July-September, 2017||18-Oct-17 (no change)|
|Table-4 under GSTR-4 not to be filled for the quarter July-September 2017. Requirement of filing GSTR-4A for this quarter is dispensed with.|
Due dates for filing of the above mentioned returns for subsequent periods shall be notified at a later date.
Additional information’s covered in the press release, which I treat it as latest plus under GST;
GSTR-3B will continue to be filed for the months of August to December, 2017.
A registered person (whether migrated or new registrant), who could not opt for composition scheme, shall be given the option to avail composition till 30th September 2017 and such registered person shall be permitted to avail the benefit of composition scheme with effect from 1st October, 2017.
Presently, any person making inter-state taxable supplies is not eligible for threshold exemption of Rs. 20 lacs (Rs. 10 lacs in special category states except J & K) and is liable for registration. It has been decided to allow an exemption from registration to persons making inter-State taxable supplies of handicraft goods upto aggregate turnover of Rs. 20 lacs as long as the person has a Permanent Account Number (PAN) and the goods move under the cover of an e-way bill, irrespective of the value of the consignment.
Presently, a job worker making inter-State taxable supply of job work service is not eligible for threshold exemption of Rs. 20 lacs (Rs. 10 lacs in special category states except J & K) and is liable for registration. It has been decided to exempt those job workers from obtaining registration who are making inter-State taxable supply of job work service to a registered person as long as the goods move under the cover of an e-way bill, irrespective of the value of the consignment. This exemption will not be available to job work in relation to jewellery, goldsmiths’ and silversmiths’ wares as covered under Chapter 71 which do not require e-way bill.
FORM GST TRAN-1 can be revised once.
The due date for submission of FORM GST TRAN-1 has been extended by one month i.e. 31st October, 2017.
The registration for persons liable to deduct tax at source (TDS) and collect tax at source (TCS) will commence from 18th September 2017. However, the date from which TDS and TCS will be deducted or collected will be notified by the Council later.
Interpretations/ issues not questioned as of now by the public:
Issues on exercise of option for composition:
In case of an existing registered dealer under earlier VAT act and opted for composition method of tax payments under the VAT act for the financial year 2017-18 had been duly presented with his assessing authorities and valid up to March 2018. Just because of the reason that the Government has introduced the GST act and discontinued the provision of the VAT act, from its application form the date of introduction of VAT act, the authorities cannot deny the privileges of the dealer or can invalidate the option exercised by the dealer for composition, until 31st March 2018. If so, Is it not obligatory on part of the legislators to provide the relevant section in such a manner to protect the rights and privileges of the existing dealers. This canon has been duly endorsed by the GST act and rules, by migrating the dealers registration from VAT to GST on their own, if so, on what basis the GST act has withdrawn the rights and privileges of the dealer who opted for composition under earlier VAT act., Is it not amounts to withdrawal of rights of the citizen under the Indian constitution?
Now, the latest approval by the GST council is only a partial measure given to be dealers who have opted for composition under the earlier VAT act and failed to deliver the option letter under the present GST act, to exercise his option till 30th September 2017, which means the said dealer is liable to pay tax under non-composition method from 1st July 2017 to 30th Sep 2017. I humbly request the legislators and the GST council members to look in to their powers in denying the constitutional rights and privileges of the dealer who has opted under earlier VAT act which is valid up to 31st March 2017.
The readers are informed to note that the facts and information’s stated in this article is only the opinion/ view of the author and assesses can use the concepts and logical used in this article in support of their cases.
For any further clarifications the reader may reach the author
P. Jagadeeswaran, VAT Practitioner
Laws Reward Solutions, No.33, First Floor, Elango Street, Celliamman Nagar, Attipet, Ambattur, Chennai – 600 058, Mobile: 9176038176