Advance Ruling Authority under GST: Does it truly solves the taxpayer’s issues?

Since the starting of GST Laws, trade and industry have confronted diverse issues identifying with uploading of returns, benefiting legacy Cenvat credit under TRAN-1 form, different confusions in regards to the generation of e-way bills and numerous other such small issues.

At the point when the Government presented the Advance Ruling Authority under GST, it sought to give a lot more extensive coverage when contrasted with the prior Excise and Service Tax Regime, so as to give an early resolution of the potential tax dispute originating from the trade and industry. First time for any Tax Legislation, an intrigue system was given against the requests gone by the Advance Ruling Authority which was missing under the previous laws and also under the current Income Tax Act.

This appreciated step by the Govt was met with overwhelming help from the trade and industry and therefore, a large number of applications were filed before the Advance Ruling Authority looking for explanation on a variety of tax issues. Shockingly, the Advance Ruling Authorities of different states had not just come up with conflicting decisions on a similar subject yet in addition the majority of the decisions were ruled for the favour of revenue only. Further, the applicants rarely got any help before the Appellate Authority of Advance Ruling too.

Probably, the constitution of this discussion, which comprises just of revenue officials and not having a free judicial part is probably the most compelling motivation for this result. Henceforth, rather than getting relief, the trade and industry began confronting this one of a kind challenge.

This circumstance was additionally worsened by the ongoing order passed by the Bombay High Court on account of JSW Energy Limited wherein it has been held that no appeal can be filed against an order of the Appellate Authority of Advance Rulings on “merits” since no appeal has been given under the GST Act. Without going into the value of this judgment, which appears to have overlooked the well-settled proposition of law that a writ petition is surely viable under the steady gaze of the High Court, the request of the High Court has absolutely made chaos in the Industry.

Seeing this pattern, solid perception in the Trade and Industry is getting work with respect to why one ought to try and approach the Advance Ruling Authority who is probably going to choose the issue against the assessee and when essentially there is no appeal component against the said order. Though if the assessee selects the course of the adjudication, the entryways of the council just as the courts would dependably be available to look for help. Given this, it gives the idea that the entire target of making this forum to give quick goals of issues, rather than experiencing the long-drawn litigation route, is getting crushed.

Thus, it was a real wish and request of the industry that the Government should acquire some change the structure and offer life to this forum. Valuing the need of the industry, the recently chosen government in this Budget attempted to address this issue by presenting the National Appellate Tribunal for Advance Ruling (NATAR) under Section 101A of the CGST Act, 2017. The proposed NATAR will be directed upon by a resigned Judge of the Supreme Court or any High Court and would be joined by two technical individuals representing both the central and the state government.

The composition of the NATAR seems to solve the issue of departmental bias, by presenting a judicial member and furthermore presenting a choice of offer against orders of the Appellate Authority which was already missing under the GST Laws. However, the wording of proposed Section 101B of CGST Act recommends that an appeal before NATAR would lie just in cases where the views taken either by the individuals from Appellate Authority of Advance Ruling established in a similar state or in different states are conflicting.

Though this new proposal by the Government seems to give help in certain perspectives for example at the point when there are opposing perspectives from both of the individuals from a similar Bench or among the co-ordinate Benches of different states. However, there is no help given against the order of the AAAR if the ruling goes against the assessee. So, the NATAR would have a constrained utility and this takes the taxpayer back to square one.

According to the pattern of the Advance Authority Rulings up to this point, it has been seen that two co-ordinate seats of the Appellate Authority once in a while contrast in their perspectives with regards to a solitary issue. Additionally, a circumstance wherein the individuals from a similar seat of the Appellate Authority (who are both departmental officials) contrast in their conclusions, is likewise uncommon. In this manner, the NATAR will be restricted to tending to uncommon circumstances wherein clashing perspectives have been taken by at least two Appellate Authorities (of various states) or two individuals from the equivalent Appellate Authority Bench. Along these lines, in spite of the presentation of NATAR, adequately there is still no investigative gathering accessible to the assessee having an unfriendly request of the AAAR.

This issue may be fathomed if the NATAR is given more extensive forces to mediate on “any” request gone by the Appellate Authority. Consequently while passing the Bill, the Government should roll out appropriate improvements in the Bill to give the eagerly awaited alleviation to the Industry.

In summation, the presentation of the NATAR by the administration just explains the issue of the assessee superficially. In any case, the main problem of having an effectual redrafting cure against the requests of the AAR still evades the citizens.

For detailed info, contact Certicom Consulting.

Know The Due Dates for GST

Goods and Services Tax has been introduced in India from July 2017. Since then the due dates have been changing. Hence it becomes even more important to keep proper tracking on the upcoming due dates. For the ease of readers and to save them from avoidable penalties and hardships we have consolidated the GST calendar for all due dates coming up in the Year 2019 at one place.

IMPORTANT GST RETURN DUE DATES

Returns

Period

Quarterly/ Monthly/ Yearly

Due Dates

Due Date

(Extended)

GSTR 1 up to INR 1.5 Cr. JANUARY To MARCH 2019 Quarterly 30-Apr-19
GSTR 1 above INR 1.5 Cr. January 2019 Monthly 11-Feb-19
GSTR 3B January 2019 Monthly 20-Feb-19 22-Feb-2019
GSTR 3B (J&K) January 2019 Monthly 28-Feb-2019
GSTR 4Composition Taxpayers JANUARY To MARCH 2019 Quarterly 18-Apr-19
GSTR 5 NRTP Dealers January 2019 Monthly 20-Feb-19
GSTR 5A OIDAR Services January 2019 Monthly 20-Feb-19
GSTR 6 Input Service Distributors January 2019 Monthly 13-Feb-19
GSTR 7 TDS Dealers OCT0BER 2018 To JANUARY 2019 Monthly 10th of next month 28-Feb-19
GSTR 8 E-Commerce Operator January 2019 Monthly 10th of next month 10-Feb-19
GSTR 9 Annual Return APRIL 2017 To MARCH 2018 Yearly 31th Dec. of Next Year 30-Jun-19
GSTR 9A Annual Return For Composition APRIL 2017 To MARCH 2018 Yearly 31th Dec. of Next Year 30-Jun-19
GSTR 9C Audit APRIL 2017 To MARCH 2018 Yearly 31th Dec. of Next Year 30-Jun-19

 

Recommended: Latest Updates on 32nd GST Council Meeting Live from New Delhi
The revised due dates of GSTR 9, GSTR 9A & GSTR 9C are now 30th June 2019 as per the decision was taken in 31st GST council meeting.
The late fee shall be completely waived in case GSTR-1, GSTR-3B & GSTR-4 for the time period of months/quarters July 2017 to September 2018, which are furnished after 22nd December 2018 but should be on or before 31st March 2019
Due date extended for furnishing GSTR-3B and GSTR-1 for the time period of July 2017 to February 2019 and quarterly July 2017 to December 2018 respectively till 31st March 2019.
The revised due date of GST ITC 04 form is 31st March 2019 for the time period i.e. July 2017 to December 2018
Recipient must avail the ITC till due date through the invoice issued by suppliers in the period of FY 2017-18 to furnish GSTR 3B for the time period of March 2019 but with some condition.

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.