Major Changes in GST Act which are applicable from Feb. 1st, 2019

On the proposal of all-ground-breaking GST Council, Government has presented GST Amendment Act, 2018 in August, 2018. The corrections presented through this Amendment Act are viable from February 1, 2019. Besides, based on proposal made by the GST Council, in last three gatherings, a few changes have likewise been presented. All such significant changes in GST law which are made powerful from February 1, 2019 are as per the following:

1. Threshold limit expanded for enrollment in specific States

As far as possible for required enrollment under GST has been expanded from Rs. 10 lakhs to Rs. 20 lakhs in the States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand. Therefore, Special class States under GST Act will currently bar the States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand.

2. Switch Charge if there should be an occurrence of supply gotten from Unregistered Persons

The arrangement as to require of GST under turn around charge, if products or administrations are gotten by an enrolled individual from any unregistered individual and the estimation of such supply in multi day surpasses Rs. 5,000, was conceded for the present by way an exception notice. The charging arrangements of Section 9(4) has been corrected and Government has been engaged to advise explicit classes of enlisted people who will be at risk to cover regulatory expense under turn around charge on supply of indicated merchandise and ventures.

3. Rationalization of Composition Scheme

The farthest point for selecting structure plot has been expanded from Rs. 1 crore to Rs 1.5 crores. Already, dealers and makers, who were likewise rendering administrations, were not qualified to select creation plot. Presently, according to new standards an enlisted provider of merchandise will be qualified for creation plot regardless of whether it is occupied with supply of administrations gave the estimation of such supply doesn’t surpass 10% of its turnover in the first monetary year in a State/Union Territory or Rs 5 lakhs, whichever is higher. The complete duty under arrangement demand will be at 1% (0.5% CGST + 0.5% SGST) of turnover of assessable supplies of good and administration in State or Union Territory.

4. Compulsory usage of IGST credit for installment of any tax

According to the new procedure, it would be required for a provider to use the credit of IGST first for installment of yield charge risk (IGST, CGST, SGST or UTGST), and the equalization of other ITC (CGST, SGST or UTGST) can be utilized just if parity of credit of IGST is totally depleted. This change can be comprehended with following precedent.

Particulars IGST CGST SGST
Output tax liability (A) 100 100 100
Available ITC (B) 200 50 50
Up to January 31, 2019
ITC utilized (C) 100 50 50
Balance ITC (D = B-C) 100 – –
Unpaid output liability (E = A – C) – 50 50
Utilization of IGST for payment of CGST/SGST – 50 50
Balance ITC – – –
Net Liability – – –
On or After February 1, 2019
Utilization of IGST for payment of IGST, CGST and SGST (C = B – A) 100 100 –
Utilization of SGST for payment of SGST (C = B – A) – – 50
Balance ITC (D = B – C) – 50 –
Unpaid output liability – – 50
Balance ITC – 50 –
Net Liability to be paid in cash – – 50

5. Mandatory enlistment by an online business administrator just in the event that it is at risk to gather TCS

Prior, an internet business administrator was required to take compulsory enrollment regardless of the way that whether it was required to gather TCS or not. With impact from February 1, 2019, the enlistment will be obligatory just for that web based business administrator who is required to gather TCS. According to Section 52 of the CGST Act, it is obligatory for a web based business administrator to gather the TCS on the off chance that it enables the outsider dealer to move products or administrations through its stage.

6. Single credit note can be issued for numerous solicitations

Prior, the provider was required to raise separate credit note for each receipt, which was badly designed and lumbering. Presently, the providers have been permitted to issue solidified credit note and charge note in appreciation of numerous solicitations issued in the equivalent money related year.

7. Registration to be suspended first before dropping

With impact from February 9, 2019, where any individual applies for dropping of his GST enrollment, his enlistment will be regarded to be suspended from the date of recording of use for wiping out. Amid the time of suspension, a sensible chance of being heard must be given to him by the experts previously supporting the crossing out of his enlistment. Amid the time of suspension, the provider will not gather GST on supply of merchandise or benefits and will not be required to document GST returns.

8. Relaxation from taking enrollment stretched out to providers who are rendering administrations through internet business administrators

With impact from February 1, 2019, a provider, who is providing administrations through internet business administrator, isn’t required to get enrollment if his absolute turnover amid the money related year doesn’t surpass Rs. 20 lakhs (Rs. 10 lakhs for extraordinary classification States). This unwinding is accessible just for provider of administrations and not for provider of merchandise.

9. Transfer of ITC to new enlisted spot of business of existing provider

Any enrolled individual, who has gotten isolated enlistment for different spots of business inside same State or UT, can exchange the credit of ITC from his current spot of business to his recently enlisted spot of business. The credit of existing business will be moved in extent to the estimation of advantages exchanged to the recently enlisted unit. For this reason, another Form ITC-02A has been presented.

10. No ITC of GST paid on engine vehicle with sitting limit of up to 13 people

Information charge credit will not be accessible for the GST paid in appreciation of traveler engine vehicles, with affirmed seating limit up to 13 people including driver. In any case, the info charge credit will be permitted if engine vehicle is utilized for further supply of such engine vehicles or transportation of travelers or granting preparing to drive such engine vehicles.

Further, the Input expense credit will not be accessible for the GST paid in appreciation of general protection, adjusting, fix and support of such engine vehicles, vessels or flying machine. In any case, the credit for the expense paid on these administrations will be permitted in following cases:

(a) If engine vehicles, vessels or flying machine are utilized for the reasons indicated above and ITC is permitted consequently

(b) If these administrations are gotten by an assessable individual occupied with:

♦ The assembling of such engine vehicles, vessels or flying machine

♦ Supply of general protection benefits in appreciation of such engine vehicles, vessels or flying machine safeguarded by them

11. Concept of ‘Business Vertical’ has been removed

The idea of acquiring separate enrollment for an alternate business vertical inside a similar State or UT has been excluded. Along these lines, more than one enlistment might be acquired in a similar State or UT for better places of business, regardless of whether these spots of business are occupied with providing distinctive arrangement of merchandise or administrations.

12. Relevant date changed for recording of utilization for GST Refund

The application for discount of expense ought to be made before expiry of 2 years from pertinent date. Prior, the significant date for recording of use for discount of unutilized ITC, because of transformed duty structure, was end of the budgetary year in which such case or discount emerges. Presently, the applicable date would be the due date for outfitting of return under segment 39 of CGST Act for the important period in which such discount guarantee emerges.

13. Time utmost for clearing GST test broadened

Any individual, who has been enlisted as GST professional, will be qualified to remain selected on the off chance that he passes GSTP examination inside a time of 30 months from the date of enrollment. Also, a GST specialist can now moreover play out the accompanying:

(a) Furnish data for e-way charge age,

(b) Furnish subtleties of challan as for data sources or capital products sent to work laborer

(c) Amend or drop the enlistment of records to be kept up by proprietor or administrator of godown or distribution center and transporters

(d) File application for profiting or quitting the creation plot.

Know If your Business GST is Ready?

Know If your Business  GST is Ready?

With the probability of presenting GST in India from first April 2016, there has been much theory about the expense and when will it be actualized. In any case, in any case, the inquiry that is disturbing numerous SMEs is that is their business/ERP programming GST prepared and bookkeeping framework has capacities to deal with Good and Service tax successfully

Products and Ventures Tax  OR GST is effectively a standout amongst the most vital expense changes to be out before the Parliament of India. With the present duty framework, there are different assessments required at various stages which are borne by the makers and at last purchasers. GST wipes out all multi-level tax collection and a solitary duty is required which is a lot less demanding and less difficult to get it.

This solitary tax assessment module will profit the Indian assembling segment by making it progressively aggressive and sparing both time and cash. With GST set up, different assessments like VAT, Excise, Octroi, Service impose are probably going to go out. The GST executed will deal with an equation that will partition the assessment between the inside and the state which is worthy to them both.

GST is being imagined as a long haul methodology and Manufacturers crosswise over are adapting to support the change. In any case, with the new tax assessment approach, the producers currently need to likewise acquire a change or buy new programming which can figure these charges for them absent much trouble.

Sage Software Solutions can without much of a stretch actualize Good and Service tax in the present Sage Solutions as Sage Malaysia has effectively executed GST in Malaysia and Sage 300 ERP is well known in other province nations like Canada and UK which have GST Regime set up throughout recent years

Sage ERP Solutions accompany 100 % configurable tax collection module with which Good and Service tax can be effectively actualized in the ERP Solution without patches and administration packs, inbuilt TAX Reporting can give you Good and Service tax reports at state level also at Central dimension. Sage Software Solutions have prepared group and accomplices in every significant city of India like Mumbai, Chennai, Bangalore, and Delhi NCR to enable clients to move to Good and Service tax as and when it is actualized. The opportunity has already come and gone for all SME Business Owners and Decision creators to view their framework and check in the event that their Accounting or ERP System is GST Ready, if not, time to make a move is NOW

GST on OIDAR Services – Impact and Applicability

Effect Of GST on OIDAR Services:

Online Information Database Access and Retrieval administrations (OIDAR) is a classification of administrations given through the mode of the web, and gotten by the beneficiary online without having any physical interface with the provider of such administrations.

Example: Download of a digital book online for an installment would add up to receipt of OIDAR benefits by the buyers.

Instances of OIDAR Services:

  • Publicizing on the web (Eg. Advertisements in Google).
  • Giving cloud administrations (Eg. Amazon Cloud).
  • Arrangements of digital books, film, music, programming and different intangibles through media transmission systems or web (Eg. Amazon Kindle, HP Drivers and so on).
  • Giving information or data, retrievable or something else, to any individual in electronic frame through a PC arrange.
  • Online supplies of computerized content like films, TV programs, music and so forth (Eg. Hotstar, Amazon Prime).
  • Computerized Data Storage.
  • Web based Gaming.

Criteria to decide an OIDAR Service:

An administration ought to be delegated OIDAR benefit just if the accompanying two conditions are fulfilled

  • Administrations whose conveyance is interceded by data innovation over the web/electronic system and,
  • Administrations are computerized and difficult to guarantee without web innovation.

 

Why OIDAR requires a treatment unique in relation to different administrations?

  • A Similar administration like OIDAR Service given by an Indian Service Provider from the assessable domain to beneficiaries in India is assessable.
  • Such administrations gotten by an enrolled substance in India from an area outside assessable domain are additionally assessable under switch charge.

In any case, the abroad providers of such administrations would have an uncalled for favorable position if the administrations gave are forgotten from assessment and the consistence system wind up troublesome as the specialist organization is situated in Overseas. Henceforth the administration has turned out with a streamlined plan of GST Registration.

Taxability of OIDAR Services in GST:

The Place of Supply ought to be in India for any supply to be assessable in India,

  • On the off chance that both the provider and beneficiary of such OIDAR benefit is situated in India, the place of supply would be the area of the beneficiary of administration and the exchange is chargeable to impose.
  • On the off chance that the provider of OIDAR benefit is situated outside India and the beneficiary is situated in India, the place of supply in India and the exchange is chargeable to GST.

[frontpage_news widget=”879″ name=”Certicom – A Group of Chartered Accountants – Articles”]