Dr. Sanjiv Agarwal, FCA, FCS
With India now deciding for NDA Government to be come back for the second term, it is expected that there may be broader continuity of economic policies, growth may trigger with vigour and new energy keeping long-term perspective in mind. Economic reforms, tax reforms and GST in particular may see a positive outlook and change with stability, ease of doing business and industrial growth being in focus.
GST may see a overall revamp with provisions, procedures and practices which are tax-payers friendly and aid to ease of doing business. GST Council may even look at promises made by various political parties if there is any merit in the same. GST Council is expected to consider setting up of National Appellate Authority for Advance Ruling in next meeting to address issue of conflicting rulings. This is long due since there are about a dozen conflicting rulings from different states.
CBIC has recently issued a new set of FAQ’s on GST on real estate projects for which changes were made recently. Accordingly, while a home buyer can not decide upon the rate of GST to be levied to installments remaining to be paid for a under construction flat or on a new booking, it is the builder who will have to opt for the GST rate, i.e., new or old @ 12%. As a result, there could be situations that for a similar flats, different buyers may have to shell out different amounts based on options chosen by the builders.
National Anti-profiteering Authority (NAA)’s term comes to end in November, 2019. The new Government shall have to take a call to continue with NAA. Looking to larger interest, it should.
Major recent changes in GST:
♦ Income Tax Department to share Taxpayers Information with GSTN
> The CBDT has notified a designated Authority, Principal Director General of Income Tax (System) or Director General of Income Tax (System) to furnish information in respect to assessees to GSTN u/s 138 (1)(a) of Income Tax Act, 1961.
> This will be done under a MOU which will cover aspects like modalities of exchange of data, confidentiality, mechanism for safe preservation, etc.
> Data/information will include request-based exchange of data wherein important financial fields captured in return of income like turnover/gross total income, status of filing ITR, turnover ratio, GTI range, turnover range etc., spontaneous exchange of data and automatic exchange of data, if it is felt that such information sharing is necessary for GSTN authorities to perform function under GST law.
> This move will enable authorities to identify under –reporting or non-reporting of income and is expected to curb tax evasion by the businesses by cross-checking of information available with both the tax bodies.
♦ Ongoing Real Estate Projects- Option to be exercised by 20.05.2019
> According to clauses (ie) and (if) of Entry 3 of Notification No. 3/2019-CT(R) dated 29.03.2019, for supply made in an ongoing real estate project, an option is required to be exercised by the Promoter / Builder by 10th May, 2019 either to opt for old rates (8% or 12%) or new rate (5%) by 10th May, 2019 .
> The date for exercising the option in an ongoing real estate project is being extended to 05.2019.
> In case, no option is exercised by May 20th, 2019 then, real estate companies shall be covered under the lower tax rate of 5 % and 1 % with effect from April 1, 2019, and will not be entitled to avail inputs tax credit .
♦ Extension in due date of Form GSTR-1 in specified districts of Odisha
> CBIC has extended the due date of furnishing the details of outward supply of goods or services or both in FORM GSTR-1 for the month of April, 2019 for registered persons whose principal place of business is in the districts of Angul, Balasore, Bhadrak , Cuttack , Dhenkanal , Ganjam, Jagatsinghpur, Jajpur, Kendrapara, Keonjhar, Khordha, Mayurbhanj, Nayagarh and Puri in the State of Odisha to 10th June, 2019”.
[Source : Notification No. 23/2019-Central Tax dated 11.05.2019]
♦ Extension in due date of Form GSTR-3B in specified districts of Odisha
> CBIC has extended the due date of furnishing the return in FORM GSTR-3B for the month of April, 2019 for registered persons whose principal place of business is in the districts of Angul, Balasore, Bhadrak , Cuttack , Dhenkanal , Ganjam, Jagatsinghpur, Jajpur, Kendrapara, Keonjhar, Khordha, Mayurbhanj, Nayagarh and Puri in the State of Odisha to 20th June, 2019”.
♦ Examination for confirmation of enrollment of GST Practitioners
> Notification No. 24/2018-Central Tax dated 28.05.2018 has authorized National Academy of Customs, Indirect Taxes and Narcotics (NACIN) to conduct an examination for confirmation of enrollment of Goods and Services Tax Practitioners (GSTPs) in terms of the sub-rule (3) of Rule 83 of the Central Goods and Services Tax Rules, 2017.
> In terms of Rule 83A(3) of CGST Rules, 2017, the examination shall be conducted twice in a year by NACIN.
> Those meeting the eligibility criteria of having enrolled as Sales Tax Practitioners or Tax Return Preparer under the existing law for a period not less than five years, are required to pass the said examination before 31.12.2019
>The next two examinations in year 2019, for GSTPs falling under STPEL/TRPEL categories, shall be conducted on 14.06.2019 and 12.12.2019
(Source: CBIC Press Release dated 10.05.2019)
♦ Important points for filing GSTR-9A
> Download GSTR 4A and compile GSTR 4 & 4A with original Data
> Previous year turnover shall be require to be reported
> In case of both schemes i.e. composition scheme and normal scheme, GSTR 9 and 9A shall be file altogether
> Additional liability if any shall be discharged through DRC-03
> GSTR 9A can also be file without discharging Additional Liability
> Late fee for filing GSTR-9A: Rs. 100/- per day of default or 0.25% of Turnover, whichever is higher.
♦ Modes of signing GSTR-9
> Digital Signature Certificate (DSC): DSC is the digital equivalent (that is electronic format) of physical or paper certificates. A digital certificate can be presented electronically to prove one’s identity, to access information or services on the Internet or to sign certain documents digitally. In India, DSC are issued by Authorized Certifying Authorities. The GST Portal accepts only PAN based Class II and III DSC.
> Electronic Verification Code (EVC):EVC authenticates the identity of the user at the GST Portal by generating an OTP. The OTP is sent to the mobile phone number of the registered mobile phone of Authorized Signatory filled in part A of the Registration Application.
♦ New Website for offline access of New GST Return Process
> The Goods and Service Tax Network (GSTN) has released a new website namely https://demoofflinetool.gst.gov.infor offline demonstration of new GST return process for the taxpayers.
> Taxpayers can access the offline tool of New GST Return process, and provide their feedback for improvisation purpose.
> Process to access the new GST return offline tool by the taxpayers is mentioned hereunder:
√ Go to the homepage: https://demoofflinetool.gst.gov.in
√ Provide “GSTIN”, “Financial Year” and “Tax Period” for which the return need to be filed.
√ All the outward supplies will be detailed in GST ANX-1 while GST ANX-2 will contain details of inward supplies auto-populated mainly from the suppliers GST ANX-1.
√ Taxpayers can match Annexure of Inward Supplies (GST ANX-2) with its Purchase Register.
[Source: Team GSTN]