The slowdown in economy continues. The output in core sectors has claimed by 5.2 percent in September, 2019 with production in all major sectors declining – steel, cement, electricity, natural gas, crude oil, refinery products and coal. The ease of doing business ranking has however, improved with India moving up at 63rd position.

It is learnt that the revenue Officer’s Committee on revenue augmentation is examining the feasibility of imposing GST on some items including food grains on reverse charge basis as tax on certain items is today lower than the tax in pre-GST era. It is also reviewing rates under composition scheme. It is also learnt that E-way bill on gold is being examined by the Law Committee as a measure to tighten enforcement amid reports of GST evasion. But at the same time, it will not be easy amid security concerns. To address that, an encrypted version of e-way bill is being discussed.

CBIC has issued Notification No. 51 dated 31.10.2019   to give effect to the constitution of Jammu & Kashmir and Laddakh as Union Territories which will now be subject to UTGST in place of SGST.

GST collection declined 5.29 per cent to Rs 95,380 crore in October 2019, in comparison to the same month last year. GST revenue collection in October 2018 stood at Rs 1,00,710 crore. Notably, GST collection increased 3.76 per cent in comparison to September 2019, when it was Rs 91,916 crore.  Looking at continued economic slowdown and reduced consumption, it is only expected that GST revenue collections may continue to be under stress for remaining part of the current fiscal.

√ Guidelines for concessional GST on Purchase of Vehicle by Disabled

The Department of Heavy Industry, Ministry of Heavy Industries & Public Enterprises, Government of India, in pursuance of Ministry of Finance Notification No. 14/2019-Integrated Tax Rate dated 30.09.2019, has notified the revised guidelines for availing the concessional rate of GST, for purchase of vehicle by the persons with orthopaedic disability, of 40% or more . Accordingly,

  • The concession can be availed for following motor vehicles of length not exceeding 4000mm only :

♦ Petrol, Liquefied petroleum gases (LPG) or compressed natural gas (CNG) driven vehicles of engine capacity  not exceeding 1200cc; and

♦ Diesel driven vehicles of engine capacity not exceeding 1500 cc

  • For availing the concessional duty, an eligible applicant with Orthopedic Physical Disability (40% or more) shall make an application to Department of Heavy Industry (DHI) in the format prescribed. Documents to be submitted are as follows :

♦ Medical certificate duly signed and countersigned.

♦ Copy of Income Tax Return filed for the last three years.

♦ A self-declaration for not availing concession in last five years and for non – disposal of vehicle for 5 years from the date of purchase in the prescribed format.

[Source : F.No. 12/42 /2015-AEI dated 24.10.2019]

Clarification on SVLDRS

  • Pending Audit

An audit shall be considered as pending (where there is a demand raised in such audit) till the time, either the Show Cause Notice is issued or the assesses deposits such demand. Even if Final Audit report is issued before 30.06.2019 but no SCN is issued, and demand is still pending, audit shall be considered as pending.

  • Voluntary Declaration

No check is required in case of voluntary declaration as there are adequate safeguard which can be evoked later in case of false declaration.

  • Ration by ARC

An Asset Reconstruction Company (ARC) can make disclosure under this scheme and pay dues of its defaulters.

  • Late Filing of Return

Late fees waiver for any Service Tax return filed for period prior to 30.06.2019 where there is a declaration of pending demand shall be covered under the scheme.

  • Single Declaration

Disclosure of tax demands under multiple returns can be filed under a single registration. However, tie declaration limit (of 50 Lakhs) shall he considered for each return separately.

  • Pending Appeal

Appeals filed after 30.06.2019 shall be considered as eligible under the scheme if the taxpayer files an application for with drawl of such appeal. Thus with drawl in such cases must precede the application.

[Source : Circular No.  1073 / 06 /2019 –CX dated 29.10.2019]

Due date extended for Form CMP-08

  • CMP-08 is a Quarterly Challan-cum-Statement to be furnished by composition dealers.
  • Last date for filing of CMP-08 for composition taxpayers has been extended by two days from 20th of October , 2019 to 22nd of October, 2019 for the quarter July-September, 2019.

[Source: Notification No. 50/2019 – CT dated 24.10.2019]

 √ Jurisdiction of Jammu Commissionerate over UT of J & K and Ladakh

  • The Central Board of Indirect Taxes and Customs (CBIC) had notified Jurisdiction of Jammu Commissionerate over Union Territory of Jammu & Kashmir and Union Territory of Ladakh.
  • By the Virtue of Jammu and Kashmir Reorganization Act, which downgrades and bifurcates the State of Jammu and Kashmir into the Union Territory of Jammu & Kashmir and Union Territory of Ladakh with effect from October 31?
  • The Central Government had earlier notified October 31 as the ‘appointed day’ for the taking effect of the Act passed by the Parliament on August 6. The Act was made along with the measures taken by the Central Government to revoke the special status enjoyed by the State of J&K by diluting Article 370 of the Constitution.

 [Source: Notification No. 51/2019 – CT dated 31.10.2019]

Filing of Application for cancellation of Registration & filing clarifications by GSTPs

  • Normal/Composition/ SEZ Developer/ SEZ Unit/ Casual Taxable Person/ ISD/ NRTP users can now select a GST Practitioner for Filing of Application for Cancellation of Registration.
  • UN Body/Embassy/ONP users can now select a GST Practitioner for filing clarifications on issues raised by a tax official on their registration application.
  • The GSTP can save draft of the application. The taxpayer/ users and GSTP would be able to work on the drafts of the application, saved by either of them.

(Source: GSTN)

√ Amendment of Registration in Core and Non-Core fields through a GST Practitioner

  • TDS/TCS/NRTP/OIDAR/UN Body/Embassy/ONP Taxpayers can now select a GST Practitioner for filling the Amendment of Registration of Core and Non-Core fields.
  • The GSTP can amend details and save the draft. The taxpayer would be able to work on the saved drafts of the application and file it.

(Source: GSTN)

√ GST Collections for the month of October, 2019

  • GST collection declined 5.29 per cent to Rs 95,380 crore in October 2019, in comparison to the same month last year. GST revenue collection in October 2018 stood at Rs 1,00,710 crore. Notably, GST collection increased 3.76 per cent in comparison to September 2019, when it was Rs 91,916 crore.
  • Out of gross GST collection of Rs 95,380 crore, CGST was Rs 17,582 crore, SGST was Rs 23,674 crore, IGST was Rs 46,517 crore (including Rs 21,446 crore collected on imports), and cess was Rs 7,607 crore (including Rs 774 crore collected on imports). The total number of GSTR-3B returns filed for the month of September up to October 31, 2019, was 73.83 lakh.

(Source: Business Today dated 01.11.2019)

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