The introduction of GST reportedly resulted in a slump in the real-estate with many projects having a low take off in their construction. This was mainly due to compliance concerns, uncertainties in the and lack of clarifications in GST law. One of the most affected areas is the ‘Affordable Housing Schemes’ that is undertaken by various developers.
GST laws have undergone a major change in the form of CGST Amendment Act, 2018 and these changes were made effective from 1st February, 2019. One of the major changes that has brought relief and reduced the number
of litigations is the exclusion of Schedule III activities from Exempt supplies for apportionment of Input Tax Credit purposes.
RCM has been applicable on various goods & services and the most common are GTA and Advocate’s services. But in the recent 31st GST Council meeting which concluded on 22nd December 2018 another service has been brought into the RCM net; Supply of Security Services.
Tax rebate u/s 87A has been increased from Rs.2,500/- to Rs.12,500/- for Resident Individuals whose total income does not exceed Rs.5,00,000 per annum.Therefore Individual taxpayers having total income up to Rs. 5 lakh will get full tax rebate and will NOT BE REQUIRED TO PAY ANY INCOME TAX.
GST brought various taxpayers registered under different indirect tax laws under its rule. As GST is a destination-based tax, so any supplier with an aggregate turnover exceeding Rs 20 lakh needs to register under GST. Certain types of suppliers need to compulsorily register under GST irrespective of their turnover and some have the
option to do so without any compulsion.
The conclusion of September 2018 GST returns was a major landmark in the GST regime. It ended with
reconciliations with GSTR 2A & Books of Accounts, contacting suppliers to upload B2B invoices and claiming ITC
remaining unclaimed.
TDS & TCS has been an idea mooted even before GST was implemented in India on 1st July 2017. However, considering the abrupt introduction of GST & the teething issues that it would face the GST council deferred the initial date from 18th September 2017 till 31st March 2018 and again till 30th September 2018.
It is quite often in business that we come across Sale, Merger, Amalgamation, Lease or Transfer of a
business. For all such transactions we legally draft sale deed or Slump agreement, Lease deeds, utilise
merger schemes etc and then we transfer the assets and liability including un-utilised GST – ITC from
existing business to new business.
Recently GST council has published a proposed simplified a single return to be filed under GST and has published for public opinion and suggestions. It is true that the return is one but the same returns are to be operated by the tax payer multiple times. Originally GST council initiated to introduce three returns.
July 1, 2018 marks one year of the launch of Goods and Service Tax in India. GST was launched on 30th June 2017, midnight and was rolled out after small function at the Parliament’s Central Hall.
GST is a destination based consumption tax that is implemented in over 160 countries worldwide and have reaped the benefits of higher GDP and lowering of inflation.The passing of the 122nd Constitution amendment bill by Loksabha on May 6th, 2015 and persistent efforts by the Government of India to get that cleared by Rajya Sabha clearly indicates that, GST is becoming a reality. GST is going to be a game changer, not only for the Government but also for the businesses and consumers. GST is going to redefine the way businesses’ are done, transactions are structured, taxes are collected and goods are distributed. It is certain to increase the tax base, however, it will also bring in lot of restructuring in the existing businesses.
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The definition of “intermediary” also popularly known as commission/buying agents is amended in The Finance (No. 2) Act 2014 to include an intermediary in goods. Thus, the tax treatment for intermediary for both goods and services would be the same as per the amended provisions which is effective from 1st Oct 2014. [ Download PDF ]
The CBDT on December 23, 2015 issued draft guiding principles to determine PoEM of a company. This is in consequence of the amendment made in the last Budget in the residency rules for Foreign Companies in India. [ Download PDF ]
The Auditors in their audit report are now required to comment on the Adequacy and operating effectiveness of internal financial controls. In this context, the following aspects merit consideration. This is deferred to accounting periods beginning on or after April 1, 2015. [ Download PDF ]