Western India Regional Council of
The Institute of Chartered Accountants of India

Law Update Details

 
April 2019 CA. Rajiv Luthia
 

CBIC vide Notification No. 8/2019-CT dated 8th February, 2019 has extended the time limit for furnishing the FORM GSTR-7 (return by registered person who is required to deduct TDS) for the month of January, 2019 till 28th February, 2019.


CBIC vide Notification No. 9/2019-CT dated 20th February, 2019 has extended the time limit for furnishing the FORM GSTR-3B for the month of January, 2019 till 28th February, 2019 for person having principal place in State of Jammu Kashmir & till 22nd February, 2019 for rest of the states.


CBIC vide Notification No. 10/2019-CT dated 7th March, 2019 provides that person who is engaged exclusively in supply of goods & whose aggregate turnover in the financial year does not exceed ` 40 lakh are exempted from obtaining registration except


Persons required to take compulsory registration under section 24 of the said Act


Persons engaged in making supplies of the goods specified as under


  • Ice cream and other edible ice, whether or not containing cocoa (Tariff – 2105 00 00)
  • Pan masala (Tariff – 2106 90 20)
  • All goods, i.e., Tobacco and manufactured tobacco substitutes (Tariff – 24)

Persons engaged in making intra-State supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand


Person who wants to take voluntary registration under GST law


The said notification shall come in force w.e.f. 1st April, 2019


CBIC vide Notification No. 11/2019-CT dated 7th March, 2019 has prescribed 31st July, 2019 as date for filing GSTR-1 (details of Outward Supply) for quarter April to June, 2019 for registered person having aggregate turnover upto ` 1.50 crore in current or preceding financial year.


CBIC vide Notification No. 12/2019-CT dated 7th March, 2019 has prescribed 11th day of every month succeeding such month as date for filing GSTR-1 (details of Outward Supply) for months April, 2019 to June, 2019 for registered person having aggregate turnover above ` 1.50 crore in current or preceding financial year.


CBIC vide Notification No. 13/2019-CT dated 7th March, 2019 has prescribed 20th day of the month succeeding such month as date for filing Form GSTR-3B for months April, 2019 to June, 2019.


CBIC vide Notification No. 14/2019-CT dated 7th March, 2019 increased the limit for composition scheme for states other than special category states from ` 1 crore to 1.50 crore. Further, person engaged in manufacturing of following goods are not eligible to opt for composition scheme


  • Ice cream and other edible ice, whether or not containing cocoa. (Tariff – 2105 00 00)
  • Pan masala (Tariff – 2106 90 20)
  • All goods, i.e., Tobacco and manufactured tobacco substitutes (Tariff – 24)

The said notification shall come in force w.e.f. 1st April, 2019.


CBIC vide Notification No. 2/2019-CT (Rate) dated 7th March, 2019 provides that a registered person making first supplies of goods or services upto an aggregate turnover of ` 50 lakh made on or after 1st April in any financial year shall pay GST at the rate of 6% (3% CGST + 3% SGST) subject to following conditions & compliance.


Conditions


Aggregate turnover in the preceding financial year is up to ` 50 lakh


Registered person is not eligible to pay tax under composition scheme u/s. 10 of CGST Act, 2017


Registered person is not engaged in making any supply which is not leviable to tax under the Act


Registered person is not engaged in making any inter-State outward supply


Registered person is neither a casual taxable person nor a non-resident taxable person


Registered person is not engaged in making supply through e-commerce


Registered persons not engaged in making supplies of the goods specified as under


  • Ice cream and other edible ice, whether or not containing cocoa. (Tariff – 2105 00 00)
  • Pan masala
  • All goods, i.e., Tobacco and manufactured tobacco substitutes

REGISTERED PERSON OPTING FOR BENEFIT OF THIS NOTIFICATION:


Shall neither collect tax from recipient nor avail any input tax credit


Shall issue “BILL OF SUPPLY” instead of “TAX INVOICE”


Shall mention following words at the top of bill of Supply – “Taxable person paying tax in terms of Notification No. 2/2019-Central Tax (Rate) dated 7/3/2019, not eligible to collect tax on supplies”.


Shall pay tax @ 6% on all the outward supplies (i.e., first supplies up to 50 lakh) notwithstanding any other notification issued under Section 9(1) or under section 11 of said Act.


Shall pay GST under RCM by respective rate.


In computing aggregate turnover in order to determine eligibility of a registered person to pay under this notification, value of supply of exempt services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount, shall not be taken into account.


“First supplies of goods or service or both” shall for the purposes of determining eligibility of a person to pay tax under this notification, include the supplies from the 1st day of April of a financial year to the date from which he becomes liable for registration under the said Act but for the purpose of determination of tax payable under this notification shall not include the supplies from the first day of April of a financial year to the date from which he becomes liable for registration under the Act.


CBIC vide circular No. 92/11/2019-GST dated 7th March, 2019 has clarified following


  • Free sample supplied by Pharmaceutical companies to their stockists, medical practitioners etc., without any consideration do not qualify as “supply” under GST, except where the activity falls within the ambit of Schedule I of the said Act (i.e., supply to distinct person without consideration).

Further, input tax credit shall not be available to the pharmaceutical companies on the inputs, input services and capital goods to the extent they are used in relation to the gifts or free samples distributed without any consideration. However, where the activity of distribution of gifts or free samples falls within the scope of “supply” in view of Schedule I of the said Act, the supplier would be eligible to avail of the ITC


  • “Buy one get one free” offer can best be treated as supplying two goods for the price of one. The taxability of such supply will be dependent upon as to whether the supply is a composite supply or a mixed supply and the rate of tax shall be determined as per the provisions of section 8 of the said Act.
  • Further, it is clarified that ITC shall be available to the supplier for the inputs, input services and capital goods used in relation to supply of goods or services or both as part of such offers.
  • Discounts offered by the suppliers to customers (including staggered discount under “Buy more, save more” scheme and post supply / volume discounts established before or at the time of supply) shall be excluded from the value of supply provided they satisfy the parameters laid down in section 15(3) of the Act, including the reversal of ITC by the recipient of the supply as is attributable to the discount on the basis of document issued by the supplier.

Further, it is clarified that supplier shall be entitled to avail the ITC for such inputs, input services and capital goods used in relation to the supply of goods or services or both on such discounts.


  • Discounts which are not known at the time of supply or offered after the supply is already over. For example, M/s. A supplies 10,000 packets of biscuits to M/s. B at `10/- per packet. Afterwards M/s. A re-values it at `9/- per packet. Subsequently, M/s. A issues credit note to M/s. B for ` 1/- per packet.

It is clarified that such secondary discounts shall not be excluded while determining the value of supply as such discounts are not known at the time of supply and the conditions laid down in section 15(3)(b) of the Act are not satisfied. There is no impact on availability or otherwise of ITC in the hands of supplier in this case.

 

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