27 RETURNS PRESCRIBED UNDER GST;

*_IN TOTAL 27 RETURNS PRESCRIBED UNDER GST; FIND OUT HOW MANY YOU NEED TO FILE_*

_With introduction of Goods and Services Tax in India, compliance for tax payers is set to go up. Service sector will get most effected since under current law, almost every service provider operated under centralised registration scheme wherein 2 returns in a year is all they file. Annual return has been recently added. Manufacturing sector is a compliance heavy industry which files monthly Excise and VAT returns (state specific)._

Under GST, 27 different returns have been prescribed. Details of all the returns to be furnished by registered persons have been enlisted below:

1. *Form GSTR-1* Details of outward supplies of taxable goods and/or services effected.

2. *Form GSTR-1A* Details of outward supplies as added, corrected or deleted by the recipient.

3. *Form GSTR-2* Details of inward supplies of taxable goods and/or services claiming input tax credit.

4. *Form GSTR-2A* Details of inward supplies made available to the recipient on the basis of *FORM GSTR-1* furnished by the supplier.

5. *Form GSTR-3* Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax.

6. *Form GSTR-3A* Notice to a registered taxable person who fails to furnish return under section 27 and section 31.

7. *Form GSTR-4* Quarterly Return for compounding Taxable persons.

8. *Form GSTR-4A* Details of inward supplies made available to the recipient registered under composition scheme on the basis of *FORM GSTR-1* furnished by the supplier.

9. *Form GSTR-5* Return for Non-Resident foreign taxable person.

10. *Form GSTR-6* ISD return.

11. *Form GSTR-6A* Details of inward supplies made available to the ISD recipient on the basis of *FORM GSTR-1* furnished by the supplier.

12. *Form GSTR-7* Return for authorities deducting tax at source.

13. *Form GSTR-7A* TDS Certificate.

14. *Form GST-ITC-1* Communication of acceptance, discrepancy or duplication of input tax credit claim.

15. *Form GSTR-8* Details of supplies effected through e-commerce operator and the amount of tax collected as required under sub-section (1) of section 43C.

16. *Form GSTR-9* Annual return.

17. *Form GSTR-9A* Simplified Annual return by Compounding taxable persons registered under section 8.

18. *Form GSTR-9B* Reconciliation Statement.

19. *Form GSTR-10* Final return.

20. *Form GSTR-11* Details of inward supplies to be furnished by a person having UIN.

21. *Form GST-TRP-1* Application for enrolment as Tax return preparer.

22. *Form GST-TRP-2* Enrolment certificate as Tax return preparer.

23. *Form GST-TRP-3* Show cause to as Tax return preparer.

24. *Form GST-TRP-4* Order of cancelling enrolment as Tax return preparer.

25. *Form GST-TRP-5* List of Tax return preparers.

26. *Form GST-TRP-6* Consent of taxable person to Tax return preparer.

27. *Form GST-TRP-7* Withdrawal of authorization to tax return preparer.

GST Council

Press Information Bureau
Government of India
Ministry of Finance
12-September-2016 19:01 IST

Cabinet approves creation of GST Council and its Secretariat ; First Meeting of the GST Council to be held on 22nd and 23rd September, 2016 in national Capital.

The Constitution (One Hundred and Twenty-second Amendment) Bill, 2016, for introduction of Goods and Services Tax (GST) in the country was accorded assent by the President on 8th September, 2016, and the same has been notified as the Constitution (One Hundred and First Amendment) Act, 2016. As per Article 279A (1) of the amended Constitution, the GST Council has to be constituted by the President within 60 days of the commencement of Article 279A. The notification for bringing into force Article 279A with effect from 12th September, 2016 was issued on 10th September, 2016.

As per Article 279A of the amended Constitution, the GST Council will be a joint forum of the Centre and the States. This Council shall consist of the following members namely: -

a) Union Finance Minister… Chairperson

b) The Union Minister of State, in-charge of Revenue of finance… Member

c) The Minister In-charge of finance or taxation or any other Minister nominated by each State Government… Members

As per Article 279A (4), the Council will make recommendations to the Union and the States on important issues related to GST, like the goods and services that may be subjected or exempted from GST, model GST Laws, principles that govern Place of Supply, threshold limits, GST rates including the floor rates with bands, special rates for raising additional resources during natural calamities/disasters, special provisions for certain States, etc.

The Union Cabinet in its meeting held on 12th September, 2016 approved setting-up of GST Council and setting-up of its Secretariat. The Cabinet inter alia took decisions for the following:

(a) Creation of the GST Council as per Article 279A of the amended Constitution;

(b) Creation of the GST Council Secretariat, with its office at New Delhi;

(c) Appointment of the Secretary (Revenue) as the Ex-officio Secretary to the GST Council;

(d) Inclusion of the Chairperson, Central Board of Excise and Customs (CBEC), as a permanent invitee (non-voting) to all proceedings of the GST Council;

(e) Create one post of Additional Secretary to the GST Council in the GST Council Secretariat (at the level of Additional Secretary to the Government of India), and four posts of Commissioner in the GST Council Secretariat (at the level of Joint Secretary to the Government of India).

The Cabinet also decided to provide for adequate funds for meeting the recurring and non recurring expenses of the GST Council Secretariat, the entire cost for which shall be borne by the Central Government. The GST Council Secretariat shall be manned by officers taken on deputation from both the Central and State Governments.

The Finance Minister Shri Arun Jaitley has also decided to call the First Meeting of the GST Council on 22nd and 23rd September 2016 in New Delhi. It is a matter of satisfaction for the Government that the steps required in the direction of implementation of GST are being taken ahead of the schedule so far.

GST Bill- President's Assent

Dear Professional Colleague,

GST Bill gets President's assent – Now becomes a law

The Government's plan to roll out Goods and Services Tax ("GST") from April 1, 2017, has moved an inched closer to the reality with the Hon'ble President Shri. Pranab Mukherjee signing the Government's flagship Constitution (122^nd Amendment) Bill, 2014 on GST ("GST Bill"), just a while ago. The much-awaited GST now becomes a law with President signing the GST Bill after more than 16 States (BJP-ruled Assam being the first one) ratified it.

After being assented by the President, the GST Bill will be enacted as the Constitution (101^st  Amendment) Act, 2016, to pave the way for much-awaited roll out of the landmark tax reform that will create a common national market of 1.25 billion people. GST, the biggest indirect tax reform since independence, is aimed at dismantling Inter-State barriers to trade in goods and services by subsuming a slew of around 17 indirect taxes viz. Excise Duty, Service Tax, VAT, CST, Luxury tax, Entertainment Tax, Entry Tax, etc.

Earlier, the Rajya Sabha has unanimously passed the ambitious GST Bill, as amended with over 2/3 majority on August 3, 2016, followed by its approval by the Lok Sabha on August 8, 2016. The key to forging consensus was the amendments the National Democratic Alliance (NDA) effected in the GST Bill, which importantly included dropping of 1% additional tax on Inter-State sale of goods and a definite provision in the statute for 100% compensating the States for any revenue loss for 5 years, amongst others.

With the President giving his assent to the GST Bill, a GST Council will be set up within 60 days of the enactment of the GST Bill, comprising the Union Finance Minister as Chairman, MOS–Revenue/ Finance and State Finance Ministers as Members of the GST Council, which will make important recommendations on GST rates, Common list of Exempted goods and services, dual control & adjudication, subsumation of surcharge and cesses, etc.Thereafter, following legislations—Central GST (CGST) and Integrated GST (IGST) will have to be passed by Parliament and a State GST (SGST) legislation by each of the State Legislatures.

The States and the Centre are working overtime and talking to stakeholders to draft the CGST, SGST and IGST laws, which are to be passed in the Winter Session of Parliament in November this year. Today is indeed a landmark day for the economy.

Sectoral impact of likely passage of GST Bill

*Automobile*  

*2w,Small Cars, CVs – Hero, Bajaj, TVS, Eicher, AL, Maruti*

Currently, the total tax outgo is ~27% (Excise + VAT + CST). A Standard rate of 18% would lead to a ~9% reduction in vehicle prices thereby stimulating demand. OEMs would benefit largely from savings on logistics and warehousing related costs and a simplified tax maintenance structure.

*Large Cars – M&M*

Currently, M&M’s total tax outgo in the UV segment is ~45% (excise + VAT + CST). Luxury cars are recommended to be taxed at higher/demerit tax rate of 40%. UV prices are therefore, likely to reduce by ~5%. We see very little possibility of the SUV segment taxed at a standard rate of 18%, which if happens, can reduce prices by ~27%. Large carmakers would again benefit largely from  savings on logistics and warehousing related costs and a simplified tax maintenance structure.

 
*Tractors – M&M, Escorts*

Tractors is completely exempted from excise and pays an exempted rate of 4% on VAT. As such total tax outgo (including CST) would be ~6%. Note that as tractors is exempt from excise, OEMs currently receive no MODVAT benefit, leading to an indirect excise duty of ~7% and hence a total tax outgo of ~13%. Tractors are likely to be taxed at the ‘Low’ GST rate of 12%, thereby keeping product prices unchanged.

 
*Auto Ancillaries*

*Batteries – Exide, Amara Raja*

Other players with vast unorganized segments in the replacement market

GST implementation is expected to bring the unorganized players in the tax net – this should reduce the price gap between organized and unorganized players. Battery industry, with ~40% of the replacement market still unorganized, and is likely to benefit from the same and we expect organized players to gain market share. Other smaller auto ancs, catering to replacement market and competing with the unorganized segment are likely to similarly benefit.
 

*Building materials*

*Tiles – Kajaria*

Currently unorganised sector (~50% of the industry) benefits from tax evasion and lower tax rates at 18% vs current duty of 25-27% paid by the organised players 25-27% will reduce the gap between organised and organized

 

*Plywood – Centuryply*

Currently, unorganised sector (~75% of the industry) imports raw material without paying duty and final goods are sold without any duty.

 

*Cement*

Though, 18% tax rate will be lower than what the companies are paying currently (~24.5% excise and VAT), we believe that the companies will pass on the benefits to consumers as demand continues to remain weak. The sector will benefit only when the pricing power is strong in the hands of manufacturers.

*Consumer Durables*

*Symphony*

Large unorganised sector in the air cooler industry (~85% of total market).  

The unorganized segment of the consumer durables segment have been evading the indirect taxes for the past many years.  The introduction of GST will bring them within the ambit of indirect taxes and would most likely impact their competitive advantage in terms of pricing.  The narrowing of the price differential between the organised and unorganised players would help the organised players increase their market share.

 

*Consumer and Retail Sector*

*FMCG Staples*

*HUL, Colgate, Britannia, GSK Consumer, Nestle, Dabur, Emami, Marico, Godrej Cons*

*Building Products*

*Asian Paints, Berger, Havells, Pidilite, HSIL*

 

§ All consumer companies will stand to gain with respect to supply chain and logistic.

§ Indirect tax rate will come down to (as per recommendations to possibly 18%) which would lead to higher purchasing power. 

§ More players to come under tax net. Thus, competitiveness of organized players to further improve.

§ In Categories, which have high pricing power, reduction might not be as much and hence, the benefits will flow down.

 

*Fashion Retail*

*Shoppers Stop*

 

Retailers will benefit from reduced logistics related costs

 

*Jewellery Retail*

*PC Jeweller, Titan*

·         Jewelry retailers too, will benefit from reduced logistics costs

·         However, a higher rate on precious metals and gold could impact demand

 

*Infrastructure*

 

*Sadbhav Engineering*

*IL &FS Transportation*

 

Implementation of e-permit/e-tolling systems, post GST, will help manufacturers save on logistics costs by reducing travel time, reducing the need for warehouses in multiple states and the need for buffer inventory

 

*Media*

 

*Dish Tv & PVR*

 

§ Dish TV: The company currently pays ~22% tax on revenues (assuming E-tax rate of 7.5% of revenue) and 4% as special additional duty (SAD). With GST implementation, total tax outgo will reduce depending on the final GST rate (we have done scenario analysis in table below). Further, SAD will also get subsumed with GST implementation. At 18% GST rate, Dish TV would have margin expansion 400bps. We have not assumed 1% additional inter-state movement surcharge as there is no clarity on the same.

§ PVR: The company currently pays    22% E-Tax on gross ticket sales, 7-8% VAT on F&B sales, service tax on inputs (rentals, maintenance and others). With GST implementation total tax outgo will reduce depending on the final GST rate (we have done scenario analysis in table below). Primary benefit to PVR would be offset of service tax paid on inputs (~Rs600-650mn in FY16), this amount will further increase as service tax rate will also increase from 14.5% to 18% (in GST regime). At 18% GST rate, PVR would see EBITDA upgrade of 22% on our current assumption Rs4010mn for FY17E, implying 400-500bps margin expansion.

15 things you should know about Model GST Law

On June 14, 2016 the Finance Ministry has released the 'Model GST Law'. It outlines the structure of the GST regime. Further, the draft of 'Integrated GST Bill, 2016' is also released along with such Model GST laws. It also provides the framework for levy and collection of CGST and SGST. "CGST" is the tax levied under the Central Goods and Services Tax Bill, 2016. "IGST" is the tax levied under the Integrated Goods and Services Tax Bill, 2016.

Key takeaways from Model GST law are given hereunder:

1) Threshold limit for registration

The dealer is required to take registration under this law if his aggregate turnover in a financial year exceeds Rs.9 lakhs. However, dealers conducting business in any North Eastern State are required to take registration if their turnover exceeds Rs.4 lakhs.

2) Place of registration

The dealer has to take registration in the State from where taxable goods or services are supplied.

3) Migration of existing taxpayers to GST

Every person already registered under extant law will be issued a certificate of registration on a provisional basis. This certificate shall be valid for period of 6 months. Such person will have to furnish the requisite information within 6 months and on furnishing of such information, final registration certificate shall be granted by the Central/State Government.

4) GST compliance rating score

Every taxable person shall be assigned a GST compliance rating score based on his record of compliance with the provisions of this Act. The GST compliance rating score shall be updated at periodic intervals and intimated to the taxable person and also placed in the public domain.

5) Levy of Tax

The person registered under this law is liable to pay tax if his aggregate turnover in a financial year exceeds Rs 10 lakhs. However, a dealer conducting business in any of the North Eastern is required to pay tax if his aggregate turnover exceeds Rs. 5 lakhs.

A negative list has also been prescribed for transactions and activities of Government and Local Authorities which shall be exempt from GST levy, like activities of issuance of passport, visa, driving license, birth certificate or death certificate, etc.

6) Taxable Event

The taxable event under GST regime will be supply of goods or services. Supply includes all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration. It also includes importation of service, whether or not for a consideration.

7) Point of taxation

CGST/SGST shall be payable at the earliest of the following dates, namely:

  (i) Date on which the goods are removed for supply to the recipient (in case of movable goods).

 (ii) Date on which the goods are made available to the recipient (in case of immovable goods).

(iii) Date of issuing invoice by supplier; or

(iv) Date of receipt of payment by supplier; or

 (v) Date on which recipient shows the receipt of the goods in his books of account.

8) TCS on online sales of goods or service

Every E-commerce operator engaged in facilitating the supply of any goods and/or services (like Amazon, Flipkart, etc.) shall collect tax at source at the time of credit or at the time of payment whichever is earlier.

9) Valuation Rules

Such Rules shall apply to the supply of goods and/or services under the IGST/CGST/SGST Bill. Some of the methods prescribed for valuation are given hereunder:

  a) Transaction Value: As per this method the value of goods and/or services shall be the transaction value.

  b) Transaction value of goods or services of like kind: Where value of supply cannot be determined under previous method [i.e. point a], the value shall be determined on the basis of transaction value of goods and/or services of like kind and quality supplied at or about the same time to customers.

  c) Computed Value Method: Where value cannot be determined under previous method [i.e., point b], it shall be based on computed value which shall include cost of production, manufacture or processing of the goods or, the cost of the provision of services, the charges, if any, for design and brand and amount towards profit and general expenses.

  d) Residual Method: Where the value cannot be determined under the computed value method, the value shall be determined using reasonable means consistent with the principles and general provisions of these Rules.

10) Utilization of credit:

Utilization of IGST: The amount of input tax credit on account of IGST available in the electronic credit ledger of dealer shall first be utilized towards payment of IGST and the amount remaining, if any, may be utilized towards the payment of CGST and SGST, in that order.

Utilization of SGST: The amount of input tax credit on account of SGST available in the electronic credit ledger shall first be utilized towards payment of SGST and the amount remaining, if any, may be utilized towards the payment of IGST.

Utilization of CGST: The amount of input tax credit on account of CGST available in the electronic credit ledger shall first be utilized towards payment of CGST and the amount remaining, if any, may be utilized towards the payment of IGST.

Note: The input tax credit on account of CGST shall not be available for payment of SGST.

11) Payment

Any tax, interest, penalty, fee, etc., shall be paid via internet banking or by using credit/debit cards or NEFT or RTGS. This amount shall be credited to the electronic cash ledger of dealer.

12) TDS

The Central or a State Government may mandate certain departments (viz, local authority, Govt. agencies) to deduct tax at the rate of one percent on notified goods or services, where the total value of such supply, under a contract, exceeds Rs 10 lakhs.

13) Refund

A person can claim refund of any tax and interest by making an application in that regard to the prescribed officer of IGST/CGST/SGST. The application can be made before the expiry of two years from the relevant date as may be prescribed. It has been provided that the limitation of two years shall not apply where such tax or interest or the amount has been paid under protest.

14) Returns

Dealers shall be required to furnish following returns

  a) Monthly Return: Every registered taxable person shall have to e-file a monthly return for inward and outward supplies of goods and/or services, input tax credit availed, tax payable, tax paid and other particulars within 20 days after the end of such month.

  b) Return for Composition Scheme: Dealers paying tax under composition scheme shall have to furnish a return for each quarter or part thereof, electronically within 18 days after the end of such quarter.

  c) TDS Return: Every dealer who is required to deduct tax at source shall furnish a return electronically within 10 days after the end of month in which deduction is made.

  d) Return for Input Service Distributor: Every Input Service Distributor shall file e-return for every calendar month or part thereof, within 13 days after the end of such month.

  e) First Return: Every registered taxable person paying CGST/SGST on all intra-State supplies of goods and/or services shall have to furnish the first return from the date on which he became liable to registration till the end of the month in which the registration has been granted.

  f) Annual return: Every registered taxable person shall have to furnish an annual return for every financial year electronically on or before the 31st day of December following the end of such financial year.

  g) Final return: Every registered taxable person who applies for cancellation of registration shall have to furnish a final return within three months of the date of cancellation or date of cancellation order, whichever is later, in a prescribed form.

15) Transitional Provisions

  a. Under the Model GST Law, a registered taxable person will be entitled to take credit of the amount of cenvat credit/ Value Added Tax carried forward in a return furnished by him in respect of the period ending with the day immediately preceeding the appointed day.

  b. As per Model GST Law, a registered taxable person shall be entitled to take in his electronic credit ledger/credit of the unavailed cenvat credit/ unavailed input tax credit in respect of capital goods not carried forward in a return furnished by him for the period ending with the day immediately preceding the appointed day.

  c. If a person registered under GST was not liable to be registered under the earlier law or if he was manufacturing exempted goods under the earlier law which are not taxable, then he will be allowed to take credit of eligible duties and taxes in respect of inputs held in stocks or semi-finished/finished goods.

  d. Every claim for refund of any duty/tax and interest, if any, paid on such duty/tax or any other amount, filed by any person before the appointed day, shall be disposed of in accordance with the provisions of earlier law and any amount eventually accruing to him shall be paid in cash. However, where any claim for refund is fully or partially rejected, the amount so rejected shall lapse

Source:taxmann