No Input Tax Credit of repair, insurance and servicing of motor vehicle w.e.f 1st Feb 2019

Govt issued Notificatoon No 2/2019-CT dated 29.01.2019 whereby specific provisions of CGST (Amendment) Act 2018 made applicable w.e.f 01st Feb 2019 and accordingly Input tax credit of following services relatable to motor vehicle shall not be available:-

(a) general insurance, 

(b) servicing, 

(c). repair and maintenance

*Cases where ITC on  motor vehicle repairing/ insurance services is  available even after amendment*

1. Motor Vehicle for  transportation of persons having approved seating capacity of  more than 13 persons. ( e.g. A Bus)

2. Motor Vehicle for transportation of goods.  ( e.g. A  Truck)

3. Motor Vehicle used for making  following taxable supplies, namely :-

(A) further supply of such motor vehicles ( e.g. In case of a  Car Dealer)

(B) transportation of passengers (( e.g. In case of a Taxi Service Provider)

(C) imparting training on driving such motor vehicles ( e.g. In case of a Driving School)

4. Services received by a taxable person engaged—

(I) in the manufacture of such motor vehicles

(II) in the supply of general insurance services in respect of such motor vehicles insured by him;

*Thus in all other cases apart from above 4 cases (though in 4 cases it was available prior to amendment also), Input Tax Credit in respect of repairs/ insurance of motor vehicle is not available now on and after 01.02.2019*

Consequences of Not Filling of ITR before 31/03/2018

Last date for filling of the  Income Tax returns of Financial Year 2015-16, and 2016-17 was 31st march 2018. Now we will see what may be the consequences if one failed to file ITR before 31st March 2018.

1) PENALTY U/s 271F :- If person fails to file return before end of the relevant assesmnet year then the assessing office may levy penalty of  RS 5000/-

2) Interest u/s 234A :- Interest u/s 234A an simple interest of 1% is levied till the payment of taxes

3)Best judgement assessment u/s 144 : if return is not filled under Sections 139(1), 139(4) or  139 (5) or in response to section 142(1)

4) Prosecution for not filling return of income :  If the return of income is not filled then we may be prosecuted under section 276CC (3 month to 7 years) 

Filing for Cancellation of Registration by Legal Heir in case of Death of Sole Proprietor

Filing for Cancellation of Registration by Legal Heir in case of Death of Sole Proprietor

1. Can a legal heir transfer the ITC to a new entity in case of death of sole proprietor?
Yes, a legal heir can transfer the ITC to a new entity in case of death of sole proprietor. In such a case, legal heir needs to get a new registration under GST and transfer the ITC through FORM GST ITC-02 to this new entity.

2. What is the process to cancel the registration in case of death of sole proprietor? How can a legal heir transfer the ITC to a new entity in case of death of sole proprietor?
1. In case of death of sole proprietor, Legal heir has to visit office of the Proper Officer (Jurisdiction Officer) and submit the Death Certificate of the sole proprietor along with the Succession Certificate before the Proper Officer as documentary evidence.

2. Proper Officer will add legal heir as the authorized signatory on the GST Portal.

In case the successor is minor, he cannot be added as an authorized signatory. In such cases, minor successor needs to be represented by his legal/ natural / testamentary (appointed by will) guardian. The legal guardian needs to be appointed or nominated by the competent authority (Normally District Judge). Legal guardian can take decisions on behalf of minor legal heir/ successor and he can also appoint authorized signatory for this purpose.

3. Legal heir has to apply for new registration.

4. Once the new registration is approved, Legal heir has to apply for the transfer of ITC by filing FORM GST ITC–02 to new entity. However, there is no restriction on filing of ITC-02 pre or post cancellation. It is an independent form and has no relation with cancellation of the sole proprietorship firm.

5. Username and Temporary password reset will be communicated to the e-mail address of the newly added authorized signatory as entered by the Tax Officer in your jurisdiction. Next, the newly added authorized signatory need to login to the GST Portal available athttps://www.gst.gov.in/ and login using theFirst time login link. He/ She will be forced to change your username and password after first time login with the Username and Temporary password that was emailed on the newly added e-mail address of the Primary Authorized Signatory.

6. Legal heir or his/ her authorized signatory has to submit the application for cancellationand select the “Death of Proprietor” as reason of Cancellation of Registration and attach sufficient proof.

HOW TO CHANGE EMAIL ID AND MOBILE NUMBER OF AUTHORISED SIGNATORY

HOW TO CHANGE EMAIL ID AND MOBILE NUMBER OF AUTHORISED SIGNATORY

a) So first login... and use non-core amendment option

b) Then edit existing authorised signatory... remove checkbox from Primary and save

c) Add new dummy authorised signatory... with names and other information, unique PAN (you may even enter AAAAA9999A), correct NM (new mobile)and NE (new email), Do not forget to select "Primary" check box and save...

d) The moment you save, OTP pop up will appear and new OTP shall come on both NM and NE. Enter OTP

e) On validation system will replace OM (old mobile), OE (old email) with NM and NE respectively.

f) Delete authorised signatory just added in step c)

g) Go to authorised signatory, edit the one from Step b) and now select "Primary", the moment you select it, you will see your NM and NE in place. Save it.

h) Sign and submit...

i) Voila, its done!

Courtesy : FTAP

Due date for GSTR extended

Due dates for GSTR-1,2 & 3 for July extended to 10th,25th & 30th Sep respectively.

GSTR-1,2 & 3 for Aug extended to 5th,10th & 15th Oct respectively.

Highlights of the Draft WayBill Rules released under GST

Govt. recently released draft Rules on electronic WayBill under Goods and Services Tax (GST). A waybill is a document issued by a carrier giving details and instructions relating to the shipment of a consignment of goods. Typically it will show the names of the consignor and consignee, the point of origin of the consignment, its destination, and route.

Key highlights of e-WayBill Rules are:

1. Moving goods worth more than Rs 50,000 under GST will require prior online registration of the consignment and securing an ‘e-way bill’ that tax officials can inspect anytime during the transit to check tax evasion.

2. Upon generation of the e-way bill on the common portal, a unique e-way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal

3. The person in-charge of conveyance will be required to carry the invoice or bill of supply or delivery challan, and a copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device (RFID) embedded on to the conveyance.

4. Where multiple consignments are intended to be transported in one conveyance, consolidated e-way bill shall be generated carrying serial number of e-way bills generated in respect of each such consignment electronically on the common portal.

5. Validity of eWayBill:

A. Less than 100 km – One day
B. 100 km or more but less than 300km – Three days
C. 300 km or more but less than 500km – Five days
D. 500 km or more but less than 1000km – Ten days
E. 1000 km or more – Fifteen days

Verification of documents

6. The Commissioner shall get RFID readers installed at places where verification of movement of goods is required to be carried out and verification of movement of vehicles shall be done through such RFID readers where the e-way bill has been mapped with RFID.

7. Provision of physical verification goods can be carried out by officer upon proper authorization from Commissioner.

Inspection of Goods

8. A summary report of every inspection of goods in transit shall be recorded online by the proper officer in Part A of FORM GST INS – 03 within twenty four hours of inspection and the final report in Part B of FORM GST INS – 03 shall be recorded within three days of the inspection.

Detention of Vehicle
9. transporter whose vehicle has been intercepted and detained for a period exceeding 30 minutes, he may upload the said information on the GSTN portal.

Experts believe that through e-WayBill mechanism, black market or un-organised sector would take a big hit as the government would have details of every goods movement.

GST Act 2017 notified on 12.04.2017

President Pranab Mukherjee on Thursday gave his assent to four key Goods and Services Tax legislations. With this, the GST has further moved closer to its July roll-out.

The four key GST bills that were earlier passed by both the houses of Parliament are Central GST, Integrated GST, Union Territory GST and Compensation GST.

Notified GST Acts, notified on 12.4.2017

1. Central GST Act 2017: http://egazette.nic.in/WriteReadData/2017/175312.pdf

2. Integrated GST Act 2017: http://egazette.nic.in/WriteReadData/2017/175311.pdf

3. GST (Compensation to States) Act 2017: http://egazette.nic.in/WriteReadData/2017/175310.pdf

4. Union Territory GST Act 2017: http://egazette.nic.in/WriteReadData/2017/175313.pdf