No deduction of tax at source (TDS) under Income Tax on 'GST on Services' component
The Central Board of Direct Taxes (CBDT) vide Circular No. 23/2017 dated July 19, 2017 clarified that wherever in terms of the agreement or contract between the payer and the payee, the component of ‘GST on Services’ included in the amount payable to a resident is indicated separately, tax shall be deducted on the amount paid or payable without including such ‘GST on Services’ component. In other words, tax shall not be deducted on such ‘GST on Services’ component.
Further, GST for these purposes will include IGST, CGST, SGST and UTGST.
Moreover, any reference to ‘Service tax’ in an existing agreement or contract which was entered prior to July 01, 2017 will be treated as ‘GST on Services’ with respect to the period from July 01, 2017 onward till the expiry of such agreement or contract.
Time limit for filing intimation for Composition Scheme extended
The Central Government vide Order No. 01/2017-GST dated July 21, 2017 has extended the time limit for filing intimation (Form GST CMP-01) for Composition levy up to August 16, 2017 for the assessee existing registered and opting for composition scheme. Prior to this order, the time limit for filing such intimation was till July 21, 2017 i.e. 30 days from June 22, 2017 when Section 10 of the CGST Act, 2017 came into force.
Time limit for filing of application for cancellation of registration extended
The Central Government vide issuing a Press Release dated July 22, 2017 has extended the period of applying for Cancellation of Registration up to September 30, 2017 for the taxpayers who were provisionally migrated into GST by virtue of being registered under the earlier laws, but who are no longer required to be registered under GST.
E-way bill is required to enter into UP for taxable goods over Rs. 5000/-
The Uttar Pradesh Government vide Circular No. KA-NI-1014/XI-9(52)/17-U.P.GST Rules-2107-order(31)-2017 dated July 22, 2017 has mandated to have E-way bill 01/ E-way bill 02/ E-way bill 03/ TDF 01 for all taxable goods whose value exceeds Rs. 5,000/- coming from outside Uttar Pradesh to the state. The same can be downloaded from http://comtax.up.nic.in before start of movement of goods.
This is contrary to the GST provision for uniform e-way bill, which requires goods of more than Rs. 50,000/- in value to be pre-registered online in Form GST INS-01 before it can be moved.
Further, for movement of specified goods like iron, steel and edible oil from one point to another within the state i.e. Uttar Pradesh, e-way bill is compulsory, if value of goods is above Rs. 1 lakh.
GST News :
Uploading of invoices on GSTN portal has begun
The GSTN portal has started uploading of specified particulars of outward supply invoices of businesses generated after GST rollout. The uploaded invoice data particulars can be saved at the portal and the portal will auto populate the invoice data of the respective buyers in GSTR 2A. If the taxpayer has limited number of invoices, he can directly enter the details at the GST portal. However, if number of invoices are in hundreds or thousands, a tool can be downloaded from the portal and installed on the taxpayer’s computer to prepare the return in GSTR-1 format in an offline mode. The portal has started accepting uploads of outward supply invoices into GSTR-1 from July 24, 2017. This invoice upload facility is available 24×7.
Undue profit exceeding Rs. 1 Cr to come under check of Anti Profiteering Authority
The proposed Anti-Profiteering Authority under the GST regime will take up only those cases for scrutiny that have mass impact and those where undue profit of more than Rs. 1 Cr has been earned. A five member National Anti-Profiteering Authority will be set up soon to keep a check on businesses that have not passed on the benefit of lower tax rates to consumers. It will take 2-3 months time to gauge whether the benefits of GST are being passed on to consumers.
The authority, if it finds that a company has not passed on the GST benefits, will either direct it to pass on the benefits to consumers or if the beneficiary cannot be identified will ask the company to transfer the amount to the ‘Consumer Welfare Fund’ within a specified time period. The authority will have the power to cancel registration of any entity or business if it fails to pass on to consumers the benefit of lower taxes.
The authority will ensure return of the undue profit earned from not passing on the reduction in incidence of tax to consumers along with 18% interest and can also impose penalty. This authority will be in existence for 2 years unless the GST Council extends the tenure.
FCA, FCS, LLB, B.Com (Hons)
Author of a book on Goods and Services Tax, titled, "GUIDE TO REVISED MODEL GST LAW (With Draft Rules on Registration, Payment, Invoice, Returns and Refund)” [3rd Edition]
A2Z TAXCORP LLP
Tax and Law Practitioners