Category: GST

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Mid year Any time Availment of Composition Scheme opened till 31-03-2018 vide Notification 45/2017 dtd 13-10-2017 vide Para 2(i)

The above availment of Composition Scheme is available from Ist day of the each month immediately succeeding the month in which intimation of opting for Composition Scheme is filed in GST CMP-02. This amendment has been brought by substituting Rule 3(3A).

 

Further the above,  option is available to :

  1. Persons who have been granted provisional registration for migration from existing law u/R 24 OR
  2. Persons who have been granted final certificate of registration GST REG-06 under Rule 10(1)

 

In old Rule 3(3A) inserted by Notification 34/2017 dated 15-09-2017, the option was available to :

  1. a) Persons who have been granted provisional registration for migration from existing law u/R 24 OR
  2. b) Persons who have applied for registration u/R 8(1) by declaring his Permanent Account Number, mobile number, e-mail address, State or Union territory in Part A of Form GST REG-01

 

Further in old Rule 3(3A) the mid year option was available only till 30-09-2017.

 

Hence now composition scheme can be availed by

Migrated Persons granted provisional registration u/R 24 could apply in

  1. GST CMP-01 till 21-07-2017 which was later extended to 16-08-2017 [Rule 3(1)]. Stock details in GST CMP-03 is required to filed in such cases as per R.3(4) in 60 days (extended to 90 days) from date of exercise of option. Even if CMP-01 is filed after appointed day i.e. 22-06-2017, still only bill of supply to be issued.
  2. Making fresh application of Registration in Part A of GST REG-01by declaring his Permanent Account Number, mobile number, e-mail address, State or Union territory [R.3(2)].
  3. Making of option before commencement of financial year[ R.3(3)]. Stock Detail in GST ITC-03 is required to be filed in such cases with in 60 days from the commencement of financial year i.e. till 31May.
  4. In the middle of the year till 31-03-2018 only effective from Ist day of month following the month of option [R.3(3A)] . Stock detail in GST CMP-03 to be filed in 90 days from day on which persons starts payment of tax in composition scheme.

 

After furnishing GST ITC-03, TRAN-01 is not permitted to be furnished.

 

 

Hence GST CMP-02 is applicable both for Rule 3(3) and Rule 3(3A) for which suitable amendment has been made in Form GST CMP-03 by Para 2(v) of NN 45/2017 dated 13-10-2017

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Avail ment of ITC for pre registration period by filing GST ITC -01 extended till 31-10-2017 by Notification 44/2017 dated 13-10-2017

As per section 18(1), credit of inputs can be availed for pre transition period in following cases :

  1. Compulsory registration is applied with in 30 days from being liable
  2. Voluntary registration
  3. Exempted goods become taxable. Also entitled to credit for capital goods
  4. Swithcing from Composition to Normal Scheme. Also entitled to credit for capital goods

 

However the availment of credit is subject to filing GST ITC-01 providing the detail of inputs and capital with in 30 days from above transitions. However since GST-ITC-01 is not still available on the portal, the date for filing ITC-01 has been extended to 31-10-2017

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Exemption to small suppliers of goods from monthly filing and tax by Notification 40/217 dated 13-10-2017

Section 148 of the CGST Act allows the government to notify certain classes of registered persons, and the special procedures to be followed by such persons including those with regard to registration, furnishing of return, payment of tax and administration of such persons.

 

The notification applies to :

  1. Registered person whose aggregate turnover in the preceding financial year did not exceed one crore and fifty lakh rupees

OR

  1. The registered person whose aggregate turnover in the year in which such person has obtained registration is likely to be less than one crore and fifty lakh rupees

AND

who did not opt for the composition levy under section 10 of the said Act

 

 

In pursuance of powers u/s 148, above suppliers have been required to file returns and make payment of tax on prescribed basis. The method of filing and tax payment has however not been prescribed as yet.

 

Note

  1. While the same notification deals both exemption from tax on advance payments and monthly filing and tax payment, the exemption form tax on advance payment is confined to outward supply of goods but exemption from monthly filing of return and tax shall apply to both small suppliers of goods as well as services.

 

  1. Further, turnover for 2016-17 being more than 1.5 crore can not debar, in the opinion of author from monthly filing and tax because the concept of aggregate turnover has been put into operation by GST law only. So, people having higher turnover but who have not yet crossed the 1.5 crore limit might empt to avail the exemption from monthly fling due to language of the notification.

 

  1. Further although composition dealers are not covered but they are already exempted from monthly filing and payment of tax u/s 39(2)
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Exemption to small suppliers of goods from payment of tax on advance received against supply of goods by Notification 40/217 dated 13-10-2017

Section 148 of the CGST Act allows the government to notify certain classes of registered persons, and the special procedures to be followed by such persons including those with regard to registration, furnishing of return, payment of tax and administration of such persons.

 

The notification applies to :

  1. Registered person whose aggregate turnover in the preceding financial year did not exceed one crore and fifty lakh rupees

OR

  1. The registered person whose aggregate turnover in the year in which such person has obtained registration is likely to be less than one crore and fifty lakh rupees

AND

who did not opt for the composition levy under section 10 of the said Act

 

 

In pursuance of powers u/s 148, payment of tax for above class of persons has  been confined to outward supply of goods at the time of supply u/s 12(2)(a) i.e. the date of issue of invoice by the supplier or the last date on which he is required to issue the invoice with respect to the supply.

 

Section 12(2)(b) which declares the date on which the supplier receives the payment with respect to the Supply as time of supply, where date of receipt falls before the date of supply,  has been dispensed for small suppliers.

 

Note:

  1. Hence persons covered by composition levy shall continued to be taxed for advance payment against supply
  2. Further supplier of services shall also pay tax on advance payments .

Where turnover is likely to be lesser but actually exceeds 1.5 crore, whether such person is required to pay tax on advance payments after crossing 1.5 crore ?

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State Tax officers authorized to sanction refunds of jurisdictional registered persons , except refund of integrated tax paid on export of goods by Notification 39/2017 dated 13-10-2017 and NN 11/2017-IGST dated 13-10-2017

Section 54 and 55 allows refund in following cases:

  • Refund of tax paid on zero-rated supplies of goods or services or both
  • Refund of tax paid on inputs or input services used in making such zero-rated supplies made without payment of tax
  • Refund of tax on the supply of goods regarded as deemed exports
  • Refund of unutilized input tax credit, where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies, except supplies of goods or services or both as may be notified by the Government on the recommendations of the Council
  • Refund of tax paid on a supply which is not provided, either wholly or partially, and for which invoice has not been issued, or where a refund voucher has been issued
  • Refund of tax paid under wrong head
  • The tax and interest, if any, or any other amount paid by the applicant, if he had not passed on the incidence of such tax and interest to any other person
  • Refund of tax paid on supplies received by UN organizations

 

 

However the above notifications has specifically barred the State tax  officers to sanction the refunds covered by Rule 96 which covers the refund of integrated tax paid on export of goods.

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Exemption from registration to Casual Taxable Person till threshold limit for supply handicraft goods expanded by Notification 38/2017 dtd 13-06-2017 and NN 9/2017-IGST dtd 13-10-2017

 

Exemption to Casual taxable person (CTP) from registration u/s 23(2) was allowed for supply of 28 items of handicraft goods till threshold exemption was allowed by Notification 32/2017 dated 15-9-2017 both for inter state and intra state transactions. These handicraft items as per said notifications are exempt when made  by the craftsmen predominantly by hand even though some machinery may also be used in the process.  Further  availability of PAN and generation of e-way bill was made compulsory,  The list of items covered by above notifications has been expanded for certain following further items:

 

  1. In Sl. No. 9, textile handloom products were exempt. Now Handmade shawls, stoles and scarves have been added.
  2. Further 5 items have been added to exemption list of registration for CTP