Tuesday, 3 April 2018

IMPORTANT NOTE ON GOODS & SERVICES TAX ACT, 2017


As we all are aware that GST Act has already been implemented and now, the new financial year 2018-19 has started so it is important to share the few important topics, which every dealer will deal on day to day basis while conducting his business.

GSTR-1 (Details of Outward Supplies of Goods or Services)


In Goods & Services Tax Act, 2017, for the Month of February 2018, March 2018, April 2018, May 2018 and June 2018 where turnover in preceding financial year is above Rs.1.5 crores, due Dates for Monthly Filing of FORM GSTR-1 are as follows:

                           Month                        Due date
                           Feb 2018                   10 April’18
                           March 2018               10 May’18
                           April 2018                 31 May’18
                           May 2018                  10 June’18
                           June 2018                  10 July’18

·       In case, the turnover in preceding financial year is below Rs. 1.5 crores, Due Dates for Quarterly Filing of FORM GSTR-1 for the Quarter of January 2018 to March 2018 and April 2018 to June 2018 are as follows:

                             Month                        Due date
                             Jan – March 2018     30 April’18
                             April-June 2018         31 July’18

GSTR-3B (Return in lieu of GSTR-3, when the time limit for GSTR-1 and GSTR-2 is extended)
·       For the Month of March 2018, April 2018, May 2018 and June 2018, due dates for Filing of Form GSTR-3B are as follow:

                           Month                        Due date
                           March 2018               20 April’18
                           April 2018                 20May’18
                           May 2018                  20 June’18
                           June 2018                  20 July’18

GSTR 2A [Details of auto-drafted supplies (Form GSTR-1, GSTR-5, GSTR-6, GSTR-7)]

·       Purchases are auto-calculated on the GST portal in the form GSTR 2A. Under GST, as reflected in GSTR-2A, all the taxable persons shall check the purchases which are made before 31st March 2018 with account books.

“Due date for furnishing the statement in FORM GST TRAN-2 extended till 30.06.2018” Earlier the date was 31.03.2018.

5. HSN Code to be mentioned in the Invoice as per scale of turnover
Taxpayers should calculate their turnover for financial year 2017-18, before issuing their first invoice in financial year 2018-19. Following parameters are to be followed:

1.     Taxpayers whose Aggregate turnover is more than Rs. 1.5 crores but upto Rs. 5 crores shall use 2-digit code
2.     The taxpayers whose Aggregate turnover is more than Rs. 5 crores shall use 4-digit code.
3.     The taxpayers whose Aggregate turnover is upto Rs. 1.5 crores are not required to mention HSN Code in their invoices.

1. If payment is not made to supplier within 180 days, then the ITC is to be reversed:

·       As per the Central Goods & Services Tax Act and its rules, if receiver does not make the full payment of amount along with tax within 180 days from the date of invoice after issuance of tax invoice by a supplier then the credit with regard to the invoice shall be reversed along with interest @ 18% p.a. from the date of availment till the date of reversal.
·       The credit can be re-availed in case the payment (deferred) is made subsequently.
·       In order to save himself from this situation, ageing analysis of the debtors and creditors shall be conducted.

       3. Gifts to employees:
·       During a financial year, if the value of gifts to the employee exceeds Rs.50,000/-, then same shall be considered as a supply and will be liable to tax under GST.

      L.U.T (Letter of Undertaking)
    

    Exporters must ensure to obtain fresh LUT for next year and same can be done by submitting online application on GST portal. Beside this, a person has to submit hard copy of the same to jurisdictional GST authorities.

IMPORTANT GUIDELINES ON E- WAY BILL

As we all know that for interstate transactions, E-way bill is compulsory from 01.04.2018 if the value exceeds Rs. 50,000/-. Some important guidelines on E-way bill are as under:

1.               E- Way bill on intra state transactions not notified yet and will be notified by each respective state government.
2.               E- way bill to be generated if consignment value exceeds Rs 50,000 either it is a case of supply or a case other than supply. A person dealing in nil rated or exempted goods, jewellery, alcohol etc. are not covered by e way bill.
3.               If you are transporting goods in non-motorized conveyance (Rickshaws etc) then no e way bill is required.
4.               If a principal sends goods for job worker to job worker in another state e way bill has to be compulsorily generated irrespective of any value.
5.               Transporter can also generate the Part A of e way bill (Basic details of invoice) after an authorization from the registered person.
6.               If goods are handed over to transporter then registered person has to update the details of transporter in Part-B of e way bill and transporter will generate e way bill after updating the vehicle number.
7.               Earlier transporter had to generate consolidated e way bill if aggregate value of goods carried in vehicle was more than 50,000. Now this provision is deferred.
8.               E way bill can be cancelled within twenty four hours of its generation but it cannot be cancelled if it is verified in transit.
9.               An e-way bill shall be valid for a period of 1 day per 100 Kilometres. The first day will expire on midnight of the day immediately after the day when e way bill is generated. For example: If e way bill is generated on 1st April 2018 at 4:00 P.M then it will be valid till 2nd April midnight 12 in case distance is upto 100 Kilometres.
10.           Person who is receiving the goods has to communicate his acceptance or rejection within 72 hours of getting the details on his portal or till goods are delivered whichever is earlier. So it is advised to regularly check your portal to accept or reject the e way bill details made available to you.
11.           Transporter is required to carry copy of e way bill and invoice /challan while transporting the goods.
12.           Vehicle number is required to be compulsorily mentioned for generating e way bill. In case you are carrying goods, you have to mention vehicle details in Part-B. In the case where transporter will transport your goods you have to enter his ID and e way bill will be generated by him when he updates vehicle number in Part-B of E-way bill. Transport Document Number will be mentioned if goods are transported by railways.
13.           E-way bill has to be compulsorily produced to get the goods delivered from railways at the time of delivery.


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