GSTN PORTAL TO BE READY FOR INVOICE UPLOADING FROM JULY 24, 2017

GOODS AND SERVICES TAX

UPDATES :

Dated : 16^th July, 2017

GSTN portal to be ready for invoice uploading from July 24, 2017

Businesses can start uploading their sale and purchase invoices generated post July 1 on the GSTN portal from July 24, a top company official said today.

The Goods and Services Tax has kicked in from July 1 and so far, the GST Network, the company handling the IT backbone for new tax regime, has been facilitating registration of businesses.

"We plan to launch the invoice upload utility on the portal on July 24 so that businesses can come forward and start uploading the invoices on a daily or weekly basis to avoid month-end rush," GSTN Chairman Navin Kumar told PTI.

Generating invoices for dealings above Rs. 200 and keeping invoice records in serial number even if maintained manually, are pre-requisites for claiming input tax credit under the GST regime.

The GSTN had last month launched an offline Excel format for businesses to keep their invoice records and from July 24 this Excel sheet can be uploaded on the portal.

Kumar said GSTN would put up a video on its portal to assist businesses in uploading invoices.

Besides, a call Centre help desk has been set up to assist taxpayers regarding any query they might have about the new tax regime.

"We have been reaching out to trade and industry associations telling them that those who have about 10,000 invoices a day, they should upload it on GSTN portal on a daily/weekly basis to avoid last moment rush," Kumar said.

So far, over 69 lakh excise, VAT and Service Tax assessees have migrated to the GSTN portal and nearly five lakh new registrations have happened under GST.

Under GST, which is a single tax in place of multiple central and state levies like excise, service tax and VAT, businesses are required to upload on GSTN portal invoices of their trade every month.

Kumar had earlier said that the offline Excel tool can upload 19,000 invoices data on GSTN portal at one go and the process takes just half a minute.

So, if businesses which generate about 10,000 invoices a day upload the data on a daily or weekly basis, it would be less cumbersome for them.

While uploading invoice on the GSTN portal, a business would need to mention the invoice number and date, customer name, shipping and billing address, customer and taxpayer's GSTIN, place of supply and HSN code.

Also, the taxable value and discounts and rates of CGST, SGST and IGST would have to be filled, along with item wise details like description, quantity and price.

FYI : The GSTN had last month launched an offline Excel format for businesses to keep their invoice records and from July 24 this Excel sheet can be uploaded.

Legal Services Provided by Advocates Covered under GST

GOODS AND SERVICES TAX

UPDATES / PRESS RELEASES :

Dated : 15^th July, 2017

PRESS RELEASE :

MINISTRY OF FINANCE

Advocates legal serices covered under GST

Position regarding applicability of GST on Legal Services provided by individual Advocates including Senior Advocates and a Firm of Advocates. 

There are points being raised about the applicability of GST on legal services provided by advocates – whether it is in forward charge or reverse charge. It may be mentioned that there is no   change made in taxation of legal services in the GST era.

In this context, it is further clarified that legal service has been defined to mean any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority.

It is further clarified that notification No. 13/2017-Central Tax (Rate) dated 28.6.2017 (Serial

No. 2)specifies, inter alia, the following service under reverse charge mechanism,-

“Services supplied by an individual advocate including a senior advocate by way of representational services before any court, tribunal or authority, directly or indirectly, to any business entity located in the taxable territory, including where contract for provision of such service has been entered through another advocate or a firm of advocates, or by a firm of advocates, by way of legal services, to a business entity.”

The words “by way of legal services” are preceded and succeeded by comma. Therefore, the said words apply to an individual advocate including a senior advocate and a firm of advocates. Legal services provided by either of them are liable for payment of GST under reverse charge by the business entity. The words “by way of representational services before any court, tribunal or authority….” appear in conjunction with senior advocate without a comma and merely describe the nature and mode of representational services provided by a senior advocate to a business entity. It, therefore, follows that legal services, which includes representational services, provided by advocates are under reverse charge.

press release can be access at : http://pib.nic.in/newsite/erelease.aspx issued by Ministry of finance dated 15^th July, 2017.

Non-Registration under GST after 30th July, 2017 would attract penalty

Goods and services tax

Updates / Press releases :

Dated : 15^th July, 2017

Press Release :

Ministry of Finance

Provisions related to registration under GST regime; Traders are requested to register now without waiting for the last date i.e. 30th July, 2017. 

As per the GST laws, one is required to take registration on or before 30^th July, 2017. All traders are requested to register now without waiting for the last date.

If one is carrying-out any business and have an Annual Aggregate turnover in the preceding Financial Year exceeding Rs. 20 lakh (Rs. 10 lakh in Special Category States), you need to register in all the States/Union Territories from where you are making taxable supplies. However, one need not register if one is engaged exclusively in the supply of exempted goods or services or both. The timelines for applying for registration are as follows:-

Registered under any of the existing law	Migrated	Liable for registration in GST regime	Provisional Ids issued need to be converted to GSTIN by submitting necessary documents in 3 months (i.e. by 22nd September 2017)
		Not liable for registration in GST regime	Need to apply for cancellation in 30 days (i.e. by 22nd July, 2017)
	Not-Migrated	Liable for registration in GST regime	Need to apply for registration within 30 days (i.e. by 22nd July, 2017)
Not registered under any of existing law	Liable for registration in GST regime	Become liable from 01/07/2017	Need to apply for registration within 30 days (i.e. by 30thJuly, 2017)
		Become liable after 01/07/2017	Need to apply for registration within 30 days from becoming liable for registration

  

Taking registration in GST is a very simple process, and the comfort of the taxpayer has been kept in mind while designing the procedure. You can take registration from the comfort of your home by filing an online application on the common portal https://www.gst.gov.in/  . All one need is a valid PAN, email id and a mobile number. Once these 3 details are verified, one will be required to furnish other details relating to his/her business. There is no need to submit any physical documents (unless a query is raised and documents asked for) and all necessary documents can be scanned and uploaded. If there are no queries, one will receive his/her registration online within 3 working days from submission of online application.

It’s simple. But what will happen if one doesn’t get registered?

More than anything, getting registered is for one’s own benefit. If one is liable to take registration but don’t get registered, one will not be able to enjoy the benefit of input tax credit. Not only he/she, but any registered person, purchasing from him/her may not be able to get the input tax credit. Not obtaining registration, though liable to do so, would also attract penalty.

Getting registered would lead to growth in one’s business. Prospective buyers, who are registered under GST, will prefer to buy from suppliers who are also registered under GST, as this would entitle them to the input tax credit. This also means that one is contributing his bit towards nation building, by ensuring that appropriate taxes are collected and paid to the Government. Therefore, traders are requested to register under GST immediately without wasting any more time..

press release can be access at : http://pib.nic.in/newsite/erelease.aspx issued by Ministry of finance dated 15^th July, 2017.

MARGIN SCHEME UNDER GST_ DEALERS IN SECOND HAND GOODS & OLD AND USED EMPTY BOTTLES

Goods and services tax

Updates / Press releases :

Dated : 15^th July, 2017

Press Release :

Ministry of Finance

applicability of the Margin Scheme under GST

Position regarding applicability of the Margin Scheme under GST for dealers in second hand goods in general and for dealers in old and used empty bottles in particular. 

Doubts have been raised regarding the applicability of the Margin Scheme under GST for dealers in second hand goods in general and for dealers in old and used empty bottles in particular.

Rule 32(5) of the Central Goods and Services Tax (CGST) Rules, 2017 provides that where a taxable supply is provided by a person dealing in buying and selling of second hand goods i.e., used goods as such or after such minor processing which does not change the nature of the goods and where no input tax credit has been availed on the purchase of such goods, the value of supply shall be the difference between the selling price and the purchase price and where the value of such supply is negative, it shall be ignored. This is known as the margin scheme.

Further, notification No.10/2017-Central Tax (Rate), dated 28.06.2017 exempts Central Tax leviable on intra-State supplies of second hand goods received by a registered person, dealing in buying and selling of second hand goods [who pays the central tax on the value of outward supply of such second hand goods as determined under sub-rule (5)] from any supplier, who is not registered. This has been done to avoid double taxation on the outward supplies made by such registered person, since such person operating under the Margin Scheme cannot avail input tax credit on the purchase of second hand goods.

Thus, Margin Scheme can be availed of by any registered person dealing in buying and selling of second hand goods [including old and used empty bottles] and who satisfies the conditions as laid down in Rule 32(5) of the Central Goods and Services Tax Rules, 2017. 

press release can be access at : http://pib.nic.in/newsite/erelease.aspx  issued by Ministry of finance dated 15^th July, 2017.

SEBI Regulations _ Updates dated 13th & 14th July, 2017

SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)

Updates on Regulations :

sebi has issued few updates on regulations dated 13^th & 14^th July, 2017.

1. SEBI (Stock Brokers and Sub-brokers) Regulations, 1992 - last amended on July 13, 2017

In  exercise  of  the  powers  conferred  by  section  30  of  the  Securities  and  Exchange  Board  of  India  Act,  1992  (15  of  1992),  the  Board  hereby  1[***]  makes  the  following regulations, namely:

These  regulations  may  be  called  the  Securities  and  Exchange  Board  of  India  (Stock  Brokers and Sub-brokers) Regulations, 1992.

These  regulations  shall  come  into  force  on  the  date  of  their  publication  in  the  Official  Gazette.

Full details can be access at: http://www.sebi.gov.in/legal/regulations/jul-2017/sebi-stock-brokers-and-sub-brokers-regulations-1992-last-amended-on-july-13-2017_35309.html

2. Securities and Exchange Board of India (Issue and Listing of Debt Securities) (Amendment) Regulations, 2017

No.  SEBI/LAD-NRO/GN/2017-18/009.  

In  exercise  of  the  powers  conferred  under  section  30  of  the  Securities  and  Exchange  Board  of  India  Act,  1992  (15  of  1992)  the  Board  hereby  makes  the  following  regulations  to  further  amend  the  Securities  and  Exchange  Board  of  India  (Issue  and  Listing  of  Debt  Securities)  Regulations,  2008,  namely,–

These regulations  may  be  called  the  Securities  and  Exchange  Board  of  India  (Issue  and Listing of Debt Securities) (Amendment) Regulations, 2017.   

They shall come into force on the date of their publication in the Official Gazette.

Full details can be access at: http://www.sebi.gov.in/legal/regulations/jul-2017/securities-and-exchange-board-of-india-issue-and-listing-of-debt-securities-amendment-regulations-2017_35314.html

3. SEBI (Employees' Service) (Third Amendment) Regulations, 2017

No. SEBI/LAD-NRO/GN/2017-18/010.

In exercise of the powers conferred by section 30  of  the  Securities  and  Exchange  Board  of  India  Act,  1992  (15  of  1992),  the  Board  hereby  makes  the  following  regulations  to  further  amend  the  Securities  and  Exchange  Board of India (Employees' Service) Regulations, 2001, namely,–

These  regulations  may  be  called  the  Securities  and  Exchange  Board  of  India  (Employees’ Service) (Third Amendment) Regulations, 2017.

They shall come into force on the date of their publication in the Official Gazette.

Full details can be access at: http://www.sebi.gov.in/legal/regulations/jul-2017/sebi-employees-service-third-amendment-regulations-2017_35313.html

4. SEBI (Debenture Trustees) (Amendment) Regulations, 2017

No. SEBI/LAD-NRO/GN/2017-18/011.

In  exercise  of  the  powers  conferred  under  section  30  of  the  Securities  and  Exchange  Board  of  India  Act,  1992  (15  of  1992),  the  Securities  and  Exchange Board of India hereby, makes the following regulations to further amend the Securities and Exchange Board of India (Debenture Trustees) Regulations, 1993, namely,

These  regulations  may  be  called  the  Securities  and  Exchange  Board  of  India  (Debenture  Trustees) (Amendment) Regulations, 2017.

They shall come into force on the date of their publication in the Official Gazette.

Full details can be access at: http://www.sebi.gov.in/legal/regulations/jul-2017/sebi-debenture-trustees-amendment-regulations-2017_35310.html

5. Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) (Amendment) Regulations, 2017

No. SEBI/LAD-NRO/GN/2017-18/005.

In exercise of the powers conferred under section 30 of  the  Securities  and  Exchange  Board  of  India  Act,  1992  (15  of  1992),  the  Securities  and Exchange Board of India hereby, makes the following regulations to further amend the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Regulations, 1992, namely;

These regulations may be called the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) (Amendment) Regulations, 2017.

They shall come into force on the date of their publication in the Official Gazette.

Full details can be access at: http://www.sebi.gov.in/legal/regulations/jul-2017/securities-and-exchange-board-of-india-stock-brokers-and-sub-brokers-amendment-regulations-2017_35308.html

ROLLING OUT OF GST PRESENTS GREAT OPPORTUNITIES - Said by Union Minister for MSME

Goods and services tax

- Ministry of Micro, Small & Medium Enterprises

Press Release :

Rolling out of GST presents great opportunities : 

Ministry of MSME along with FICCI organized National Workshop on GST and Digital MSME here today. Speaking on the occasion Shri Kalraj Mishra, Union Minister for MSME said that Ministry of MSME is giving special focus to the development of MSMEs all over the country and to effectively implement different Schemes and Programmes. It has also directed the banks to accelerate the pace of solving the loan related problems of the entrepreneurs. 

He also informed the gathering that by rolling out GST, cascading of taxes will be overcome and this will significantly reduce the tax burden. Furthermore, this will pave the way for a formal economy hence will give a fillip to growth and employment generation. Therefore, MSMEs should see this as an opportunity rather than a challenge

Minister also informed that the Ministry has taken up various efforts to popularize GST. Under office of Development Commissioner (MSME), GST cells have been established in Headquarter office , all MSME-DIs and Tool Rooms. NSIC has also set up a Facilitation Cell with a toll free number – 1800-111-955. Till now more than 12000 entrepreneurs have been trained for GST by various MSME field offices and training institutes.

He reiterated that that he himself has given information on GST at Guwahati and Agartala in North East. Minister has directed all officials to use social media i.e. Facebook and Twitter to provide information, to publish notification and to answer questions related to GST. Furthermore, more than 200 Additional Secretary/Joint Secretary level officers have been told to monitor the implementation of GST at district level. In this effort two Joint Secretaries of M/o MSME are involved.

Shri Mishra informed that a special issue of Laghu Udyog Samachar has been published by his Ministry focusing on GST. Furthermore, Secretary (MSME) has been included in the reviewing committee the Cabinet Secretary level. Central MSME Minister informed that along with GST, M/o MSME has taken effort to simplify the guidelines for implementation of its various schemes. E-initiatives have been taken in simplification of guidelines wherein PMEGP has been made online. Online Grievance Redressal and Monitoring Systems(CPGRAMS and IGMS) have been established. E-office and Mobile friendly website have been initiated and ‘My-MSME’ Mobile App, MSME-Data Bank Portal and Digital-MSME portal have been started.

He informed that Digital MSME Scheme has been launched to sensitize and encourage MSMEs towards new approach i.e., Cloud computing for ICT adoption in their production and business processes with a view to improve their competitiveness in National and International Market.

Minister of State Shri Giriraj Singh informed the gathering that by rolling out GST, the Government has opened new opportunities for the hitherto unorganized rural entrepreneurs predominantly in the Micro and small segment.

 Minister of State Shri Haribhai Parthibhai mentioned that a huge parallel economy which has been existing till now will subsequently come in the formal fold, with the emergence of GST. He appealed to entrepreneurs to choose their vendors judiciously so as to take benefit of the input tax credit being offered by the new system.

Shri Arun Kumar Panda, Secretary (MSME) welcomed all participants and put light on the various possible problems which could be faced by the MSMEs in the new GST regime. He emphasized upon the utility of ICT Schemes like Digital MSME which could help in handholding the MSME entrepreneurs. The representative of CBEC was present in the occasion and he addressed to the common queries put forward by MSME entrepreneurs. 

press release can be access at : http://pib.nic.in/newsite/erelease.aspx  issued by Ministry of Micro, Small & Medium Enterprises dated 13^th July, 2017.

CLARIFICATION ON TAX IN REVERSE CHARGE ON GOLD ORNAMENTS

Goods and services tax

Updates / Press releases :

Dated : 13^th July, 2017

Press Release :

Ministry of Finance

Further clarification on tax in reverse charge on gold ornaments; 

Sale of old jewellery by an individual to a jeweller will not make the jeweller liable to pay tax under reverse charge mechanism on such purchases;

However, if an unregistered supplier of gold ornaments sells it to registered supplier, the tax under RCM will apply. 

In the GST Ki Master Class held yesterday, in one of the replies given to an on-the-spot-question, it was informed that purchase of old gold jewellery by a jeweler from a consumer will be subject to GST @ 3% under reverse charge mechanism in terms of the provisions contained in Section

9(4) of the CGST Act, 2017.

On further examination, it is felt that the issue needs to be clarified.

Section 9(4) of the said Act mandates that tax on supply of taxable goods (gold in this case) by an unregistered supplier (an individual in this case) to a registered person (the jeweller in this case) will be paid by the registered person (the jeweller in this case) under reverse charge mechanism. This provision, however, has to be read in conjunction with section 2(105) read with section 7 of the said Act. Section 2 (105) defines supplier as a person supplying the goods or services. Section 7 provides that a supply is a transaction for a consideration by a person in the course or furtherance

Of business.

Even though the sale of old gold by an individual is for a consideration, it cannot be said to be in the course or furtherance of his business (as selling old gold jewellery is not the business of the said individual), and hence does not qualify to be a supply per se. Accordingly, the sale of old jewellery by an individual to a jeweller will not attract the provisions of Section 9(4) and jeweller will not be liable to pay tax under reverse charge mechanism on such purchases. However, if an unregistered supplier of gold ornaments sells it to registered supplier, the tax under RCM will apply.

(Source : Press Information Bureau, Government of India)

GST Impact on Services of Educational Institution

Goods and services tax

Updates / Press releases :

Dated : 13^th July, 2017

Press Release :

Ministry of Finance

No GST on Annual subscription/fees charged as lodging/boarding charges by educational institutions from its students for hostel accommodation; 

Services provided by an educational institution to students, faculty and staff are fully exempt from GST. 

There are some reports that GST@18% will be levied on annual subscription/fees charged for lodging in hostels. This is not true.  There is no change in tax liability relating to education and related services in the GST era, except reduction in tax rate on certain items of education.

It may be mentioned that services provided by an educational institution to students, faculty and staff are fully exempt. Educational institution has been defined as an institution imparting

• pre-school education and education up to higher secondary school or equivalent;
• education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force;
• education as a part of an approved vocational education course.

Thus, services of lodging/boarding in hostels provided by such educational institutions which are providing pre-school education and education up to higher secondary school or equivalent  or education leading to a qualification recognized by law, are fully exempt from GST. Annual subscription/fees charged as lodging/boarding charges by such educational institutions from its students for hostel accommodation shall not attract GST.

(Source : Press Information Bureau, Government of India)

GST Impact on RWA Services

Goods and services tax (GST)

Updates / Press releases :

Dated : 13^th July, 2017

Press Release :

Ministry of Finance

Services provided by the Housing Society Resident Welfare Association (RWA) not to become expensive under GST;

There is no change made to services provided by the Housing Society (RWA) to its members in the GST regime. 

There are some press reports that services provided by a Housing Society [Resident Welfare Association (RWA)] will become expensive under GST. These are completely unsubstantiated.

It may be mentioned that supply of service by RWA (unincorporated body or a registered non- profit entity) to its own members by way of reimbursement of charges or share of contribution up to an amount of five thousand rupees per month per member for providing services and goods for the common use of its members in a housing society or a residential complex are exempt from GST.

Further, if the aggregate turnover of such RWA is upto Rs.20 Lakh in a financial year, then such supplies would be exempted from GST even if charges per member are more than Rs. five thousand.

RWA shall be required to pay GST on monthly subscription/contribution charged from its members if such subscription is more than Rs. 5000 per member and the annual turnover of RWA by way of supplying of services and goods is also Rs. 20 lakhs or more. Under GST, the tax burden on RWAs will be lower for the reason that they would now be entitled to ITC in respect of taxes paid by them on capital goods (generators, water pumps, lawn furniture etc.), goods (taps, pipes, other sanitary/hardware fillings etc.) and input services such as repair and maintenance services. ITC of Central Excise and VAT paid on goods and capital goods was not available in the pre-GST period and these were a cost to the RWA.

Thus, there is no change made to services provided by the Housing Society (RWA) to its members in the GST era.

(Source : Press Information Bureau, Government of India)

SEBI _ UPDATES ON 11th & 12th July, 2017

Securities and exchange board of india (SEBI)

Updates on regulations / Press release :

1. sebi has issued Securities Contracts (Regulation) (Third Amendment) Rules, 2017 

(Applicable w.e.f., July 03, 2017)

In  the  Securities  Contracts  (Regulation)  Rules,  1957,  in  rule  19A,  in  sub-rule  (1),  in  the  proviso,  for  the  words “three years” the words “four years” shall be substituted.

Full details release can be access at: http://www.sebi.gov.in/legal/rules/jul-2017/securities-contracts-regulation-third-amendment-rules-2017-w-e-f-july-3-2017-_35291.html

2. Extension of date for submitting comments on the Consultation paper on Amendments/Clarifications to the SEBI (Investment Advisers) Regulations, 2013 issued on June 22, 2017

SEBI issued Consultation Paper proposing Amendments/Clarifications to the SEBI (Investment Advisers) Regulations, 2013 on June 22, 2017 and public comments were sought till July 14, 2017. Based on the representations received from various bodies/associations etc., seeking extension of the timeline to furnish the comments/suggestions, it has been decided to grant time till July 31, 2017 for submitting the comments on the aforesaid consultation paper.

Full press details can be access at: http://www.sebi.gov.in/media/press-releases/jul-2017/extension-of-date-for-submitting-comments-on-the-consultation-paper-on-amendments-clarifications-to-the-sebi-investment-advisers-regulations-2013-issued-on-june-22-2017_35285.html

3. SEBI has issued Guidelines for issuance of ODIs, with derivative as underlying, by the ODI issuing FPIs

In  terms  of  the  SEBI  (Foreign  Portfolio  Investors)  Regulation,  2014  (FPI  Regulations)  and circulars  issued  from  time  to  time  regarding  ODI, the  Foreign  Portfolio  Investors  (FPIs) issuing  ODIs  (hereinafter  referred  to  as  ODI  Issuers)  are  required  to  comply  with  the conditions for issuance of ODIs.

Full press details can be access at: http://www.sebi.gov.in/legal/circulars/jul-2017/guidelines-for-issuance-of-odis-with-derivative-as-underlying-by-the-odi-issuing-fpis_35266.html