Giving relief to exporters, the government has extended IGST (Integrated Goods and Service Tax) and compensation cess exemptions for goods procurement under certain export promotion schemes till March 2020.
These exemptions have been extended for exporters buying inputs domestically or importing for export purposes under export oriented unit (EOU) scheme, Export Promotion Capital Goods (EPCG) scheme and advance authorisation.
EPCG is an export promotion scheme under which an exporter can import certain amount of capital goods at zero duty for upgrading technology related with exports.
On the other hand, advance authorisation is issued to allow duty free import of inputs, which is physically incorporated in export product.
The move was aimed at giving relief to exporters as they do not have to pay IGST at the initial point itself. In the GST regime, they have to pay the indirect tax and then seek refund, which is a cumbersome process.
In a notification, the Directorate General of Foreign Trade (DGFT) has said that exemption from integrated GST and compensation cess under advance authorisation scheme, EOU, and EPCG scheme of foreign trade policy 2015-20 "is extended up to March 31, 2020".
During April-February of the current fiscal year, exports grew 8.85 per cent to USD 298.47 billion, while imports rose by 9.75 per cent to USD 464 billion.
The trade deficit has widened to USD 165.52 billion during the 11 months of the current fiscal from USD 148.55 billion compared to the year-ago period.
The GST Council approved a transition plan for the implementation of new tax structure for the real property sector with applicable guidelines for housing gadgets being applicable from April 1, 2019.
The Council additionally determined that under creation projects can have an option to shift to new price. The GST Council in its 33rd meeting on February 24, 2019 had provide you with new fees for housing devices. GST can be levied at effective fee of 5% with out ITC on residential residences outside low priced segment, while GST shall be levied at powerful GST of 1% with out ITC on low cost housing houses.
A residential residence/flat of carpet region of as much as 90 sq. in non-metropolitan cities/cities and 60 sq. in metropolitan cities having price up to Rs. forty five lakh (both for metropolitan and non-metropolitan towns) has been labeled as inexpensive housing. Metropolitan towns are Bengaluru, Chennai, Delhi NCR (restrained to Delhi, Noida, more Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR).
The Council in it meeting these days also held that 80% procurement of materials should be from registered provider. It additionally introduced that up to 15% of industrial space to be dealt with as residential belongings for GST motive. however, the exact contour of this point mooted via the Council isn't very clean.
With a number of the key inputs for production along with bricks, stone, hardware and so on. coming from sectors that are in large part unorganised, assembly the circumstance of 80% procurement from registered sellers for concessional GST charge could be hard, particularly in Tier-2 and smaller towns” stated Harpreet Singh, partner, oblique Tax, KPMG India.
Time will inform whether or not the reduced GST prices for beneath-production residences will provide the necessary fillip to the actual property sector which is presently witnessing adversities. “the concern concerning the reduced rate of five% and 1% is that it's far offered with out the capability for developers to take enter tax credit, that could without a doubt cause an escalation of charges. The GST council assembly these days mentioned modalities on transition and made the brand new fee mandatory for brand new production 1 April 2019 onwards,”
The Council additionally determined that reversal of enter tax credit score to be executed on propotionate basis and the time restrict for transition to new rates could be discussed with the states.
“The pragmatic move to segregate under construction tasks from new projects might provide alleviation to builders who were worried about the loss of input tax credit. this will also allow them to charge the lack of enter tax credits within the new projects. Reversal of enter tax credit score on a proportionate foundation would entail massive computational troubles for developers as each project might be in diverse stages of construction and have differing pre and publish of entirety sale styles. shielding current enter tax credit and mandating the new charges best in appreciate of latest tasks could advantage each developers and consumers. The specific announcement on invocation of anti-profiteering provisions if the benefits of lower rates are not handed to clients seems to indicate that the government is eager to guard purchasers from a GST-led price growth”.
The all-effective GST Council approved a transition plan for the implementation of recent tax shape for housing units.
An inexpensive time for transition may be given to developers in session with states.
The meeting deliberated at the transition provision and associated troubles for the implementation of decrease GST quotes for the actual estate quarter.
The Council had in its last assembly on February 24, slashed tax quotes for underneath-construction residences in the low-cost class to 1 per cent. GST price on other categories changed into decreased to 5 in line with cent, powerful April 1.
GST charges for brand new projects might be obligatory from April 1.
Composition Scheme is a simple and easy scheme under GST for taxpayers. Small taxpayers can get rid of tedious GST formalities and pay GST at a fixed rate of turnover. This scheme can be opted by any taxpayer whose turnover is less than Rs. 1.0 crore*.
CBIC has notified the increase to the threshold limit from Rs 1.0 Crore to Rs. 1.5 Crores.
1. Who can opt for Composition Scheme
A taxpayer whose turnover is below Rs 1.0 crore* can opt for Composition Scheme. In case of North-Eastern states and Himachal Pradesh, the limit is now Rs 75* lakh.
As per the CGST (Amendment) Act, 2018, a composition dealer can also supply services to an extent of ten percent of turnover, or Rs.5 lakhs, whichever is higher. This amendment will be applicable from the 1st of Feb, 2019. Further, GST Council in its 32nd meeting proposed an increase to this limit for service providers on 10th Jan 2019*.
Turnover of all businesses registered with the same PAN should be taken into consideration to calculate turnover.
CBIC has notified the increase to the threshold limit from Rs 1.0 Crore to Rs. 1.5 Crores.
3. What are the conditions for availing Composition Scheme?
The following conditions must be satisfied in order to opt for composition scheme:
4. How can a taxpayer opt for composition scheme?
To opt for composition scheme a taxpayer has to file GST CMP-02 with the government. This can be done online by logging into the GST Portal.
This intimation should be given at the beginning of every Financial Year by a dealer wanting to opt for Composition Scheme.
5. How Should a Composition Dealer raise bill?
A composition dealer cannot issue a tax invoice. This is because a composition dealer cannot charge tax from their customers. They need to pay tax out of their own pocket.
Hence, the dealer has to issue a Bill of Supply.
The dealer should also mention “composition taxable person, not eligible to collect tax on supplies” at the top of the Bill of Supply.
6. How should GST payment be made by a composition dealer?
GST Payment has to be made out of pocket for the supplies made.
The GST payment to be made by a composition dealer comprises of the following:
GST on supplies made.
Tax on reverse charge
Tax on purchase from an unregistered dealer*
Only on the specified categories of goods and services and well as the notified class of registered persons with effect from 1st Feb 2019 but is yet to be notified. Hence, not applicable until then.
7. What are the returns to be filed by a composition dealer?
8. What are the advantages of Composition Scheme?
The following are the advantages of registering under composition scheme:
Lesser compliance (returns, maintaining books of record, issuance of invoices)
Limited tax liability
High liquidity as taxes are at a lower rate
9. What are the disadvantages of Composition Scheme?
Let us now see the disadvantages of registering under GST composition scheme:
A limited territory of business. The dealer is barred from carrying out inter-state transactions
No Input Tax Credit available to composition dealers
The taxpayer will not be eligible to supply exempt goods or goods through an e-commerce portal.
The GSTN, which handles the generation backbone for the brand new indirect tax, has provided a facility to the taxpayers to view and download a record on tax legal responsibility as declared in their form GSTR- 1 (final sales return) and as declared and paid in their return filed in form GSTR-3B (summary sales return).
Even as GSTR-1 for a month is filed via the eleventh day of the succeeding month, GSTR-3B is filed and taxes paid by means of the 20 th day of the succeeding month.
GSTN, in a assertion stated, on the grounds that GSTR-1 and GSTR-3B are filed unbiased of every different, a need became felt to provide facility to view liability declared in both the forms at one location.
The new facility permits the taxpayers to view those two liabilities in one table for each go back duration at one region, which may be compared. this could allow taxpayers to make top of any variations between the 2 forms filed via them on GST portal, GSTN said.
In addition, the GSTN has additionally supplied taxpayers data regarding information of input tax credit (ITC) as claimed of their form GSTR 3B and as collected in form GST network Tuesday said corporations registered underneath GST can now examine the tax legal responsibility declared in addition to input tax credit score claimed of their very last and summary income returns bureaucracy.
This capability has been supplied in Returns dashboard on the GST Portal to taxpayers below the headings "evaluation of legal responsibility declared and ITC claimed".
"This facility will help taxpayers in reconciling their legal responsibility and ITC info speedy. they can view the monthly assessment in addition to cumulative comparison as much as the month, at the GST Portal in the tables furnished. this will help them in taking corrective steps," GSTN CEO Prakash Kumar said
There are around 5.44 crore taxpayers who filed their income tax returns in FY 2017-18/AY 2018-19. To assess each taxpayer, they are divided into income tax wards/circles across the country. An Assessing Officer (A.O.) is assigned to each Income Tax Ward/Circle who assess the tax filing return.
Let us understand the two ways how you can find out your income tax ward/circle and what it means for you.
Who is an Assessing Officer (A.O) and what is income tax ward number/circle?
Assessing Officer is the person authorized to assesses the income tax return you have filed and if he finds any discrepancy in your filed return, he will send you a notice seeking clarification. These assessing officers are present across the country and sit at their designated offices. The income tax ward/circle denotes the jurisdiction of an income tax assessing officer.
Method 1: By entering PAN details and OTP
It is a direct way to view your income tax ward/circle from the home page of the income tax filing website. In this process, you have to log in to your e-filing tax account by entering PAN details and registered mobile number.
Once you have entered the details correctly, click on the submit tab. You will receive 'One Time Password' (OTP) on your registered mobile number. Enter the OTP and validate the process to view your Jurisdiction.
Now you will be directed to a page "Know Your Jurisdictional Assessing Officer (A.O). Here you can check your Area Code, AO type, Range Code, AO Number, Jurisdiction's address and the email ID.
Method 2- By entering PAN details, password and captcha code.
You need to visit https://www.incometaxindiaefiling.gov.in/home and log-in your e-filing tax account by entering PAN details, password and captcha code.
Once you have logged in, go to the 'Profile Settings' tab and click on 'My Profile'. By default, your 'Contact Details' page will open. From there you need to further click on the 'PAN Details' tab.
Once you have clicked on the PAN detail tab, you can view the 'Jurisdiction Details' as mentioned below. And from there you can view your Income Tax Ward/Circle.
Under the jurisdiction details (Income Tax Ward/Circle), you can check the Area Code, AO type, Range Code, AO Number, Jurisdiction's address and the email ID. Hence, you should know that this Income Tax Officer will be checking your Income Tax Return.
Eligible bills include life insurance top rate, most important repayment of the home mortgage and children's lessons.
Understand all approximately: section 80C
There are numerous tax saving avenues however the maximum popular is the tax benefit Section 80C of the Income Tax Act below which an amount equal to the investment that you make in certain specified instruments or an expense that you incur up to a maximum of Rs 1.5 lakh in a financial year reduces your gross total income by the same amount.
1. An individual or an HUF can reduce as much as Rs 1,50,000 from their overall taxable earnings through section 80C for the financial year 2018-19.
2. Eligible investments consist of contributions to EPF, VPF, PPF, ELSS mutual budget, Sukanya Samriddhi Account, tax saving FDs and post workplace, NPS, NSC, SCSS, NABARD bonds, and a few different options.
3. Every of the eligible investment has its personal investment restrict, price of return, liquidity and tax remedy on its returns.
4. Eligible payments include life insurance premium, principal repayment of home loan and children's tuition.
5. In order to claim the deduction for this particular financial year, one needs to invest or spend the deductible amount in this financial year itself.