Dr. Sanjiv Agarwal, FCA, FCS

Sanjiv Agarwal Photo

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.

1. F. No 354/32/2019 – TRU dated 7thMay 2019 (FAQ Series 1 – 41 FAQs)

2. F. No 354/32/2019 – TRU dated 14thMay 2019 (FAQ Series 2 – 27 FAQs) 

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.

[Source: CBDT Order F.No. 225/105/2019/ITA-II dated 30.04.2019]

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 . 

[Source : Notification No. 10/2019-Central Tax (Rate) dated 10.05.2019]

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”.

[Source : Notification No. 24/2019-Central Tax dated 11.05.2019]

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.

(Source: @askGSTech)

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.

(Source: @askGSTech)

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] 

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  1. vswami says:

    A REshare:
    Apropos of related Pr. Posts ( In continuation of) (:
    RERA, as notified, has come into effect, and been in force, from the specified date of – 1-5-2017.
    GST Levy on realtor has been notified to have come into effect on April 1, 2019.
    The term ‘Ongoing Projects’ is of crucial relevance and significance for the purposes of both RERA and GST .
    However, the same term has been differently defined.
    Further, GST levy has been made applicable to all ongoing projects; that is, regardless of whether or not any given project has been duly registered and allotted a Regn. No. by the RERA.
    In view of the forgoing aspects, ostensibly, there is an inconsistency between the two enactments. The noted incompatibility of a material nature , on the first blush, seem to have added inherent potentials, so as to put spokes in the wheels of machinery,- as presently in place, – for implementation and enforcement of GST levy on realtor.
    In this context, attention needs to be prudently drawn to the following RERA provisions:
    Sec 88 : Application of other laws not barred.- the provisions of this act shall be in addition to , and not in derogation of , the provisions of ANY OTHER LAW FOR THE TIME BEING IN FORCE.
    (FONT supplied, for due emphasis, requiring to be made a conscious note of)
    Equally to be made a conscious note of is the fact that the notified enactment, in terms of which GST levy on realtor is sought to be imposed (w.e.f. the specified date of April 1, 2019) ) was not a law ‘for the time being in force’, as envisaged – i.e. 01-05-2017 – on which the RERA came into force.
    OVER to the RERA and /or (?) GST Law EXPERTS at large, infield practice, in the fond hope of their taking on suitably with the Govt./ its Authorities, and successfully pursuing to the end of finding a proper solution /resolution, for the COMMON GOOD.

  2. vswami says:

    Is not to Artticulate / Discuss at length the FILING fand Other procedural requitrements or for tha matter, the Mechanism in place, – toon premature; to be aptly compared to the lack of wisdom same as- Putting the Cart Before The HORSE ?!
    May be, EXPERTS at large know better; so as to be expected to enlighten, in prpoer light, after examinng from a multi-dimensional perspective; that is, with due focus on the host of glaring UNCERTAINTIES and FALL-out problems quite likely to surface should anyone were decide and proceed despite such sorrounding field realities !
    (A self-confessed QUIXOT)

  3. vswami says:

    “Major recent changes in GST:
    ♦ Income Tax Department to share Taxpayers Information with GSTN….”
    If remember right, offhand (subject to correction if were factually wrong) it was reported that the referred proposal has been deferred for now. One’s own guess that the reason behind could be that the GST administration itself is, by any standard or yardstick, in an extremely muddled scenario; with no knowing how long that is going to take for being settled , to a reasonable level.
    Another worrysome specific area, expected to be of most concern tto one and all having common interests from the socio -economic viewpoint in general, and from that of the tax payers and the advising / assisting profssiinals, like CAs, in particular, relates to ‘ÇUSTOMS’ regime and the dovetailed FTC; All the more so is because that entails international ramifications and consequences, remaining gloomy even otherwise, as ever..
    Be that as it may, the wisdom behind deferring the proposal for having a useful interaction between / exchang of INFO. by the two administations (IT and GST), if were closely and critically viewed, is highly questiionable; besides being oddly suspect !

  4. vswami says:

    This refers, selectively, to the learned author’s FEED -input under the para-
    “♦ Ongoing Real Estate Projects- Option to be exercised by 20.05.2019….”
    The above portion of the write-up , in one’s well-considered view, calls for a review and revision.
    As personally pointed out, repeatedly, – and made available in public domain for anyone concerned to take a note of, – the extension of the due date from 10-05-2019 t0 20-05-2019 suffers from a not-so-obvious malady- patent illogicality and illegality. In that, on the expiry of the due date/ point in time (moment) for realtor to exercise the option, automatically, – with no further action required, – the right of buyer to the reduced rate of 5% has come into existence. In short, the Notification of 20-05-2019 has no legal sanctity/ sanction ; hence s non-est in the eyes of law (s)- including the rudimentary principles of the Limitation Act, the Contract Act, ..; so also, from the viewpoint of the common law principles of, – Natural Justice, Good Conscience, Equity ..
    For an appreciation, per contrast (; In the income-tax regime, as is common knowledge, yielding to external pressure from concerned quarters, the specified due date for filing of tax return is being extended, sometimes even more than once. That is, however being done, in exercise of the wide- enough executive/administrative powers vested u/s 119. The point calling for a conscious noting is that is a case in which , if at all, it is the government itself, which stands to lose, monetarily- with no direct financial impact of disadvantage to any other. In contrast, this is an instance in which, by any extension of the originally fixed/committed due date /time limit , on the whims f the Govt., that has the effect, obviously unintended/unrealised , of buyer ’s right to right to the specified lower rate of 5%.
    For viewpoints additionally shared having regard to the other related angles, suggest to mind and go through the Posts in social media, – e.g, FB and LinkedIn.
    For info, may add that a personal representation on the foregoing lines has been made ,- in the larger PUBLIC INTEREST – via e’mail, to the ID of CEO, GST Council; a response to which remains to be received, as yet.
    May have more to share, if that becomes necessary !

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December 2020