Compliance Calendar for the month of February-2018 (GST/PF/ESI/TDS)

Compliance Calendar for the month of February-2018. Please keep watching CBEC/CBDT etc Order/Notifications/Circulars/Press Releases for any change. Thanks.

Happy Republic Day !

69TH Republic Day. Heartiest Congratulations to Everyone. India is getting matured. People are logical now. When some paid or illiterate agents of political parties spread humors about a movie, and commit riots and demolish public property to divert attention of people from issues like unemployment, inflation, Rise in price of Petrol and Diesel, Action against 20 members of AAP whereas silence on same issue in other states, Sealing in Delhi and so on. It sounds so good, when young boys and girls stands against people of their own community and ask, how ? what is wrong ? how the movie disgraced our tradition ? Now, people do not follow easily. They ask questions. They want explanations. They analyze facts. If this attitude continues, no political leader or party will succeed to fool people in the name of caste, region or religion. Hope, our next generation/s will live in a new India. No Caste or Religion but everyone will call himself or herself an Indian. A country free of corruption and hatred. Thanks. Jai Hind.

E-Way Bills. User Manuals.

E-Way Bill : In my personal opinion, when we are talking about one country, one market and one tax. There should not be any place for a process like e-way bill. But until Tax Payers turn into Law Abiding Citizens and Tax Officers stop being most corrupt officers and stop harassing honest tax payers in the name of Law, nothing will change. Reforms like GST will only be like old wine into new bottle. Anyway, No choice other than waiting for such day. So Let’s see, What’s GSTN plan to deal with Eway bills. In past they have already faced criticism on account of poor capacity of server, frequent server failure and laps in processes. So this time, they won’t take any chance. There are dedicated servers for e-way bills. Different Modes can be used to generate/cancel e-way bills. Different User Manuals have been uploaded on e-way bills portal. Here is the link over these manuals. Useful to understand various process and system/s related to e-way billing in India.

Generating E-way bills through web system :

http://164.100.80.180/ewbnat8/Documents/usermanual_ewb.pdf

Generating E-way bills through SMS system :

http://164.100.80.180/ewbnat8/Documents/EWB_SMS.pdf

Generating E-way bills through Bulk Generation system :

http://164.100.80.180/ewbnat8/Documents/EWB_BULK_GEN.pdf

Generating E-way bills through API interface :

http://164.100.80.180/ewbnat8/Documents/EWB_API.pdf

Keep Enjoying #GST and Welcome #E-WayBills Thanks.

Recommendations made on GST Rate changes on services by the 25th GST Council Meeting

Ministry of Finance

Recommendations made on GST Rate changes on services by the 25th GST Council Meeting

Posted On: 18 JAN 2018 7:40PM by PIB Delhi

The Union Finance Minister Shri Arun Jaitley Chaired the 25th Meeting of the GST Council in New Delhi today. The Council has recommended many relief measures regarding GST rates ongoods and services covering many sectors and  commodities.  The Council has also recommended issuance of certain clarifications on issues relating to GST rates and taxability of certain goods and services.

            Major recommendations of the Council are summarised below.

Changes relating to GST rates on certain services

(A) Exemptions / Changes in GST Rates / ITC Eligibility Criteria

	To extend GST exemption on Viability Gap Funding (VGF) for a period of 3 years from the date of commencement of RCS airport from the present period of one year.
	To exempt supply of services by way of providing information under RTI Act, 2005 from GST.
	To exempt legal services provided to Government, Local Authority, Governmental Authority and Government Entity.
	To reduce GST rate on construction of metro and monorail projects (construction, erection, commissioning or installation of original works) from 18% to 12%.
	To levy GST on the small housekeeping service providers, notified under section 9 (5) of GST Act, who provide housekeeping service through ECO, @ 5% without ITC.
	To reduce GST rate on tailoring service from 18% to 5%.
	To reduce GST rate on services by way of admission to theme parks, water parks, joy rides, merry-go-rounds, go-carting and ballet, from 28% to 18%.
	To grant following exemptions: (i) To exempt service by way of  transportation of goods from India to a place outside India by air; (ii) To exempt service by way of transportation of goods from India to a place outside India by sea and provide that value of such service may be excluded from the value of exempted services for the purpose of reversal of ITC. The above exemptions may be granted with a sunset clause upto 30th September, 2018.
	To exempt services provided by  the Naval Insurance Group Fund by way of  Life Insurance to personnel of Coast Guard under the  Group Insurance Scheme of the Central Government retrospectively w.e.f. 1.7.2017.
	To exempt IGST payable under section 5(1) of the IGST Act, 2017 on supply of services covered by item 5(c) of Schedule II of the CGST Act, 2017 to the extent of  aggregate of the duties and taxes leviable  under section 3(7) of the Customs Tariff Act, 1975 read with sections 5 & 7 of IGST Act, 2017 on part of consideration declared under section 14(1) of the Customs Act, 1962 towards royalty and license fee includible in transaction value as specified under Rule 10 (c) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.
	To allow ITC of input services in the same line of business at the GST rate of 5% in case of tour operator service.
	To reduce GST rate (from 18% to 12%) on the Works Contract Services (WCS) provided by sub-contractor to the main contractor providing WCS to Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity, which attract GST of 12%. Likewise, WCS attracting 5% GST, their sub-contractor would also be liable @ 5%.
	To enhance the exemption limit of Rs 5000/- per month per member to Rs 7500/- in respect of services provided by Resident Welfare Association (unincorporated or nonprofit entity) to its members against their individual contribution.
	To reduce GST rate on transportation of petroleum crude and petroleum products (MS, HSD, ATF) from 18% to 5% without ITC and 12% with ITC.
	To exempt dollar denominated services provided by financial intermediaries located in IFSC SEZ, which have been deemed to be outside India under the various regulations by RBI, IRDAI, SEBI or any financial regulatory authority, to a person outside India.
	To  exempt  (a) services by government or local authority to governmental authority or government entity, by way of lease of land, and (b) supply of land or undivided share of land by way of lease or sub lease where such supply is a part of  specified composite supply of construction of flats etc. and   to carry out suitable amendment in the provision relating to valuation of construction service involving transfer of land or undivided share of land, so as to ensure that buyers pay the  same effective  rate of GST on property built on leasehold and freehold land.
	To amend entry 3 of notification No. 12/2017-CT(R) so as to exempt pure services provided to Govt. entity.
	To expand pure services exemption under S. No. 3 of 12/2017-C.T. (Rate) so as to include composite supply involving predominantly supply of services i.e. upto 25% of supply of goods.
	To reduce job work services rate for manufacture of leather goods (Chapter 42) and footwear (Chapter 64) to 5%.
	To exempt services relating to admission to, or conduct of examination provided to all educational institutions, as defined in the notification. To exempt services by educational institution by way of conduct of entrance examination against consideration in the form of entrance fee.
	To enhance the limit to Rs 2 lakh against Sl. No. 36 of exemption notification No. 12/2017-C.T. (Rate) which exempts services of life insurance business provided under life micro insurance product approved by IRDAI upto maximum amount of cover of Rs. 50,000.
	To exempt reinsurance services in respect of insurance schemes exempted under S.Nos. 35 and 36 of notification No. 12/2017-CT (Rate). [It is expected that the premium amount charged from the government/insured in respect of future insurance services is reduced.]
	To increase threshold limit for exemption under entry No. 80 of Notification No. 12/2017-C.T. (Rate) for all the theatrical performances like Music, Dance, Drama, Orchestra, Folk or Classical Arts and all other such activities in any Indian language in theatre GST from Rs.250 to 500 per person and to also extend the threshold exemption to services by way of admission to a planetarium.
	To reduce GST on Common Effluent Treatment Plants services of treatment of effluents, from 18% to 12%.
	To exempt services by way of fumigation in a warehouse of agricultural produce.
	To reduce GST to 12% in respect of mining or exploration services of petroleum crude and natural gas and for drilling services in respect of the said goods.
	To exempt subscription of online educational journals/periodicals by educational institutions who provide degree recognized by any law from GST.
	To exempt the service provided by way of renting of transport vehicles provided to a person providing services of transportation of students, faculty and staff to an educational institution providing education upto higher secondary or equivalent.
	To extend the concessional rate of GST on houses constructed/ acquired under the Credit Linked Subsidy Scheme for Economically Weaker Section (EWS) / Lower Income Group (LIG) / Middle Income Group-1 (MlG-1) / Middle Income Group-2 (MlG-2) under the Housing for All (Urban) Mission/Pradhan MantriAwasYojana (Urban) and low-cost houses up to a carpet area of 60 square metres per house in a housing project which has been given infrastructure status, as proposed by Ministry of Housing & Urban Affairs, under the same concessional rate.
	To tax time charter services at GST rate of 5%, that is at the same rate as applicable to voyage charter or bare boat charter, with the same conditions.
	To levy concessional GST @12% on the services provided by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of building used for providing (for instance, centralized cooking or distributing) mid-day meal scheme by an entity registered under section 12AA of IT Act.
	To exempt services provided by and to FédérationInternationale de Football Association (FIFA) and its subsidiaries directly or indirectly related to any of the events under FIFA U-20 World Cup in case the said event is hosted by India.
	To exempt government’s share of profit petroleum from GST and to clarify that cost petroleum is not taxable per se.

(B) Rationalization of certain exemption entries

	To provide inCGST rules that value of exempt supply under sub-section (2) of section 17, shall not include the value of deposits, loans or advances on which interest or discount is earned (This will not apply to a banking company and a financial institution including a non-banking financial company engaged in providing services by way of extending deposits, loans or advances).
	To defer the liability to pay GST in case of TDR against consideration in the form of construction service and on construction service against consideration in the form of TDR to the time when the possession or right in the property is transferred to the land owner by entering into a conveyance deed or similar instrument (eg. allotment letter). No deferment in point of taxation in respect of cash component.
	To tax renting of immovable property  by government or local authority to a registered person under reverse Charge while renting of immovable property by government or local authority to un-registered person shall continue under forward charge
	To define insurance agent in the reverse charge notification to have the same meaning as assigned to it in clause (10) of section 2 of the Insurance Act, 1938, so that corporate agents get excluded from reverse charge.
	To insert a provision in GST Rules under section 15 of GST Act that the value of lottery shall be 100/112 or 100/128 of the price of lottery ticket notified in the Gazette (the same is currently notified in the rate notification).
	To add, in the GST rate schedule for goods at 28%, actionable claim in the form of chance to win in betting and gambling including horse racing.
	To insert in GST rules under section 15 of GST Act,- Notwithstanding anything contained in this chapter, value of supply of Betting & Gambling shall be 100 % of the face value of the bet or the amount paid into the totalizator.

(C) Clarifications

	To clarify that exemption of Rs 1000/- per day or equivalent (declared tariff) is available in respect of accommodation service in hostels.
	To clarify that fee paid by litigants in the Consumer Disputes Commissions and any penalty imposed by these Commissions, will not attract GST.
	To clarify that elephant/ camel joy rides are not classified as transportation services and attract GST @ 18% with threshold exemption to small services providers.
	To clarify that leasing or rental service, with or without operator, of goods, attracts same GST as supply of like goods involving transfer of title in the said goods. Therefore, the GST rate for the rental services of self-Propelled Access Equipment (Boom. Scissors/Telehandlers) is 28%.
	To clarify that,- 1) Services provided by senior doctors/consultants/technicians hired by the hospitals, whether employees or not, are healthcare services which is exempt.   2) Hospitals also provide healthcare services. The entire amount charged by them from the patients including the retention money and the fee/payments made to the doctors etc., is towards the healthcare services provided by the hospitals to the patients and is exempt. 3) Food supplied to the in-patients as advised by the doctor/nutritionists is a part of composite supply of healthcare and not separately taxable. Other supplies of food by a hospital to patients (not admitted) or their attendants or visitors is taxable.
	To clarify that  services by way of,- 1. admission to entertainment events or access to amusement facilities including casinos, race-course 2. ancillary services provided by casinos and race-course in relation to such admission. 3. services given by race-course by way of totalisator (if given through some other person or charged separately as fees for using totalisator for purpose of betting, are taxable at 28%. Services given by race-course by way of license to bookmaker which is not a service by way of betting and gambling, is taxable at 18%.

It is proposed to issue notifications giving effect to these recommendations of the Council on 25th January, 2018.

100 Years of Sai Baba’s Mahasamadhi – Lesson 1 – Never Commit Suicide

100 Years of Sai Baba’s Mahasamadhi – Lesson 1 – Never Commit Suicide :

This year (2018). It is going to be 100 years, when Sai Baba of Shirdi attained samadhi. I tried to study some incarnations of God or Say the form/reflection of Almighty Lord along with some great devotees, like Kabir Ji, Rahim Ji, Ravidas Ji, Sai Baba of Shirdi and our own Gurus. All tried to show the real path of life, how to live a human life with peace and fulfill the purpose of your life. Here I’ll be sharing some lessons taught by Shirdi Sai Baba.

Few days ago in my one of posts on Linkedin, one lady mentioned out of pain and miseries she attempted suicide, but saved. So, First lesson, from Sai :

"You must enjoy the fruit - good or bad - of your past actions; if the enjoyment be incomplete, suicide won't help you. You have to take another birth and suffer again; so instead of killing yourself, why not suffer for some time and finish up your store of the fruit of your past deeds and be done with it once and for all?"

Life is not easy. I have seen many people in deep pain. Most of them on account of their expectations from world. Not happy with Job, Not happy with their spouse. Some with health issues and some are born with negative mind. Remain worried without any genuine reason like when Kim will press button on his desk, soon we all will die.

During the lifetime of Sai Baba, just to make understood importance and value of human life, he created circumstances in lives of many such people, who decided to commit suicide.

To have expectations is not bad, but attachment with expectations. Same thing is explained by Lord Krishna in Bhagavad Gita. Also live in present, Plan for tomorrow, but do not worry about future. And if you think, you can not bear the pain anymore, Go to God with full faith and a heart free of Ego and hatred for anyone. You will find Peace. Thanks. 

GST - Updated Study Material by CBEC and IDTC of ICAI

Some new resources on GST :

CBEC issued new series on GST – FAQs on 01.01.2018. Many chapters have been updated according to changes made recently. A Good Read for GST Professionals.

Link : http://www.cbec.gov.in/resources//htdocs-cbec/gst/faq-gst-2018.pdf

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The Indirect Taxes Committee of ICAI (IDTC), also has recently launched/ revised following publications :

1. FAQ’s &  MCQ’s on GST (January, 2018)

Link : http://idtc-icai.s3.amazonaws.com/download/pdf18/FAQs_and_MCQs_on_GST_Jan18.pdf

2. Background Material on GST Acts and Rules- January 2018 Edition

(Two Volumes: Vol-1 : Act & its analysis, Vol-02: Rules & Notifications)

The publication contains in-depth clause by clause analysis of the GST Acts and Rules made thereunder along with the corresponding FAQ’s, MCQ’s, Flowcharts and Illustrations etc. to make the reading and understanding easier.

Link : Volume – 1 : http://idtc-icai.s3.amazonaws.com/download/pdf18/Volume-I(BGM-idtc).pdf

Link : Volume - 2 : http://idtc-icai.s3.amazonaws.com/download/pdf18/Volume-II(BGM-idtc).pdf

3. Background Material on Exempted Services under GST- January, 2018 Edition

The publication contains detailed discussion on all exemptions available for various services like health care, education etc. along with the examples and reference to the mega exemption notification under the earlier Service Tax regime has also been provided.

Link : http://idtc-icai.s3.amazonaws.com/download/pdf18/BGM-on-Exempted-Services-under-GST.pdf

*Printed hard copy of the above publications of IDTC of ICAI would be available for sale only after passing of the Union Budget in February’18.

 Keep Enjoying #GST 

Compliance Calendar for the Month of January-2018. (TDS/GST/PF/ESI)

Compliance Calendar for the Month of January-2018. Please keep watching Govt's Orders/Circulars/Notifications/Press Releases for any change. Thanks.