GstTak

  (A) Eligibility for the Scheme:- Following Persons are eligible for the Scheme. 1) A registered person who is required to furnish a return in FORM GSTR-3B . AND 2) Who has an aggregate turnover of up to 5 crore rupees in the preceding financial year .                 However in case the aggregate turnover exceeds 5 crore rupees during any quarter in the current financial year, the registered person shall not be eligible for the Scheme from the next quarter.   (B) Exercising option for QRMP Scheme:- In order to exercise this option, the registered person must have furnished the last return, as due on the date of exercising such option. Register Persons can opt in or opt out of the scheme as follows:- Q1 (April –May - June):- 1st February to 30th April. Q2 (July – August – September):- 1st May to 31st July. Q3 (October – November – December):- 1st August to 31st October. Q4 (Jan...

  In this article we discuss about the GST impact on Sale of Capital Goods (i.e. Business Assets). First we discussed about the Definition of Capital Goods.   Capital Goods:- As per the Section 2(19) “capital goods” means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business.   For the Purpose of Qualifying the Goods as a Capital goods following conditions should be satisfied. 1)       Goods should be capitalised in the Books of Accounts. (It can by anything whether Fixed Assets or Current Assets). 2)       ITC Should be availed on such goods. 3)       Such goods should be used for furtherance of business.     Now we will discussed about the Provision of the Supply. (As GST is applicable if only there is a supply)   1)  ...

Interest in GST. Before the discussing about the liability of Interest in GST, First we will discuss what the provision of GST Act, 2017 says about the Interest liability. Section 50 of CGST Act, 2017:- Interest on delayed payment of tax.                 Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen per cent., as may be notified by the Government on the recommendations of the Council.                 After reading the wordings of section 50 of CGST Act, 2017 the doubt has been raised whether interest of 18% shall be paid on Gro...

Now Aadhaar Authentication process has been introduced while application of new GST Registration. (A) Aadhaar Authentication applicable to following persons.                 1) Normal Taxpayer.                 2) Composition Scheme.                 3) Casual Taxable Person.                 4) Input Service Distributor (ISD).                 5) SEZ Developer or SEZ Unit. (B) Under this, Individuals, Authorized signatory of all types of businesses, Managing and Authorized partners of a partnership firm and Karta of a Hindu undivided family, applying for new registration, can opt to undergo e-KYC au...

In this Article we will discuss about the GST Implication on Bad Debts. Before moving ahead first will discuss the two important sections related to this article. Section 15:- Value of taxable supply. Section 15 of CGST Act, 2017 says that the value of a taxable supply of goods or services or both shall be the "TRANSACTION VALUE". Transaction Value:- It is a combination of three elements. " Price actually paid or payable for the supply (+) Supplier and the recipient of the supply are not related (+) Price is the sole consideration for the supply " Also if you see the exclusion list of section 15 the only one term i.e. "DISCOUNT" shall be exclude from the value of taxable supply and there is no specific exclusion under Section 15 from the value of supply in respect to non-recovery of payments or bad debts. Accordingly, GST is levied on transaction value which is available at the time of supply but does not exclude the ...

In this Article we will discuss about the Inclusion or Exclusion of Interest, on SB or FD or PPF or Loan given, in the Turnover for GST. As per the Section 2(6) of CGST Act, 2017 “Aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess. From the above definition it is clarify that all the supplies whether taxable or exempt are included in the Aggregate turnover. Now as per Section 2(47) of CGST Act, 2017 “exempt supply” means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax A...

In this Article we are going to discuss about the Scope of supply & Related Scheduled. Section 7 of CGST Act, 2017:- Scope of Supply. Schedule 1:- Activities to be treated as supply even if made without consideration. Schedule 2:- Activities or Transactions to be treated as supply of goods or supply of service. Schedule 3:- Activities or Transactions which shall be treated neither as a supply of goods nor a supply of services. Section 7 of CGST Act, 2017:- SCOPE OF SUPPLY (1)     For the purposes of this Act, the expression “supply” includes, (a)     All forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. (aa) Activities or transactions involving supply of goods or Service by any person, Other than an individual, to its member or constituent or vice-ver...