Filing Service Tax Return (ST-3) date has been extended to 30/04/17

ORDER NO : 1/2017-SERVICE TAX

NEW DELHI, dated the 25th April, 2017

THE DATE OF SUBMISSION OF THE FORM ST-3 FOR THE PERIOD FROM 1ST OCTOBER 2016 TO 31ST MARCH 2017 HAS BEEN EXTENDED FROM 25TH APRIL, 2017 TO 30TH APRIL, 2017

 

Read full notification here :  SERVICE TAX RETURN DATE EXTENDED

Distribution of GST Provisional Id and Access Token of Phase 4 dealers.

Office of the
Special Commissioner of sales Tax,
Maharashtra State,
3rd Flr., Vikrikar Bhavan,
Mazgaon, Mumbai-400010

TRADE CIRCULAR

No. JCST/Mahavikas/GST Enrollment/2017-18/B- 63Mumbai, Dt. 25/04/2017

Trade Circular No. 12 T of 2017

Subject: Distribution of GST Provisional Id and Access Token of Phase 4 dealers.

Reference: 1) Trade Circular 35 T of 2016 dt. 12-11-2016

2) Trade Circular 2 T of 2017 dt. 06-01-2017

3) Trade Circular 5 T of 2017 dt. 27-02-2017

4) Trade Circular 6 T of 2017 dt. 04-03-2017

5) Trade Circular 7 T of 2017 dt. 09-03-2017

In reference to the above referred Trade Circulars, the activity of GST data migration and distribution of Provisional Ids and Access Token is in progress since le November 2016. This activity has been carried out by Maharashtra Sales Tax Department (MSTD) in stage-wise manner in 3 phases.

A. Announcement of Phase 4:

Provisional Ids and Access Token of Phase 4 dealers, are now made available by GSTN. Dealer can obtain their Provisional Ids from department’s portal www.mahavat.gov.in, using their login credentials. The list of all such dealers is published under “What’s New” Section on MSTD’s portal.

B. Types of dealers are covered in Phase 4:

  1.  The dealers registered till 31-03-2017 under the MVAT, CST, Luxury, Entry and Sugarcane Purchase Tax Acts implemented by MSTD.
  2. RC restored cases till 31-03-2017: MSTD has disabled some of the Provisional Ids on GST Portal on the ground of RC cancellation. Now some of these RCs are restored. So, in case of dealers’ whose RCs are restored on or before 31-03-2017, their Provisional Ids are activated once again in Phase 4. These dealers can now access their account on GST Portal, if they have already activated it. If the account on GST Portal is not activated, then these dealers can collect the Provisional Id and Access Token from MSTD Portal to complete the enrollment process on GST Portal.
  3. PAN amendment cases till 31-03-2017: This includes the cases of dealers, to whom Provisional Id was issued on their earlier incorrect PAN in Mahavikas database. As per Trade circular 2T of 2017, these dealers have amended their correct PAN in Mahavikas database. So, as declared by department in Trade Circular 2T of 2017 & point D in Trade Circular 5T of 2017, New Provisional Ids have been created for these PAN amendment cases (till 31-03-2017) and the same are now made available to the dealers on the department’s portal www.mahavat.gov.in

C. Procedure to collect Provisional Id & Access Token for newly registered dealers:

The Trade Circular 35 T of 2016 dt. 12-11-2016 describes the steps to collect Provisional Id and Access Token from department’s portal www.mahavat.gov.in. For newly registered dealers after 25-05-2016, there is slight change in this procedure. They have to login through link https://newautomation. mahavat.gov.in;newregistrationandreturn/iiidex.html using their eleven-digit TIN as login id. Dealers will get Blank Page error, if they use their PAN/TAN for login on the New Automation Portal.

In such cases, if dealer doesn’t have password for his TIN or wants to reset his password, then he is required to send a password reset request to mvatresetp@gmail.com from his registered mail ID along-with necessary details like TIN, PAN & registered contact no. in that mail.

D. Categories of dealers are not covered in Phase 4:-

In addition to above, it is further clarified that following types of dealers are not covered in Phase 4

i.  The newly dealers registered after 31-03-2017, RCs restored after 31-03-2017 and PAN amended cases after 31-03-2017. All these dealers will be considered for GST enrollment in subsequent Phase.

ii. If Provisional Ids for any dealer is already created either for their Service Tax or Central Excise Registration Number. If it is already created, then such dealers are requested to collect it from concerned authorities and complete the GST Enrollment process.

One can check the Provisional Id generation and Enrollment Status on GST Portal (wwvv Rst.pov.in) from the Check Registration Status link at the footer of the page or by visiting the link https://services.gst.gov.in/services/check registration-status .

To check the status, select ID Type as “Permanent Account Number (PAN)” and State as “Maharashtra”. Then, enter your Permanent Account Number (PAN), the Captcha code and click on “SUBMIT” button.

iii. TIN issued by Maharashtra Sales Tax Department under the relevant Act is Active TIN, but Business PAN associated with that TIN in the department’s Mahavikas database have certain issues like PAN is either Blank or Invalid as per CBDT database or Associated with multiple Dealers, etc.

As mentioned earlier, in above referred Trade Circulars, if PAN (in Mahavikas database) has any issue, the same is required to be rectified by contacting concerned Nodal Officer and following necessary procedure.

In addition to this it is hereby clarified that, there might be few dealers, who satisfies all above criteria and have Active Registration number and Valid PAN, still they are missed from Phase 1, 2, 3 and 4 of GST Enrollment, then all such dealers are hereby informed that they will be covered in subsequent phase of GST Enrollment.

These dealers are further requested to contact their respective Nodal Officers and ensure the correctness of PAN related information in Mahavikas database. If Nodal Officer satisfies that the dealer is not covered in any of the category mentioned at point no. D (i), D (ii) & D (iii) above and still not covered in the list of Phase 4 dealers published on 25-04-2017 in “Whats New” section, then the Nodal Officer will report only such cases to the office of his supervisory Joint Commissioner of Sales Tax. The concerned Joint Commissioner of Sales Tax after confirmation of all the facts will send compiled list of all such cases (along-with contact number of concerned Nodal officer) to Joint Commissioner of Sales Tax, Mahavikas on or before 05th May 2017.

Last date for the GST Enrollment Process will be as per the End Date declared on the GST Common Portal at link https://www.gst.gov.in/enrolplan

This circular cannot be made use of for legal interpretation of provisions of Law, as it is clarificatory in nature. If any member of trade has any doubt, he may refer the matter to this Office for further clarifications.

Rajiv Jalota

Commissioner of Sales Tax,

Maharashtra State

No. JCST/Mahavikas/GST Enrollment/2017-18/B-63 Mumbai, Dt.25/04/2017

Trade Circular No. 32T of 2017

GST to boost domestic manufacturing, won’t up inflation: Revenue Sec.

The government on Tuesday said GST will not lead to inflation and rather make domestic goods competitive via-a-vis imported items.

Revenue Secretary Hasmukh Adhia dismissed fears that GST implementation will lead to a spurt in prices, saying that unlike in other countries, the transition to the new tax regime would be smooth in India.

He said several countries witnessed inflation following GST rollout as they had single point taxation system. In the case of India, there are multiple points of taxation and hence the possibility of sudden spurt in inflation is remote.

“Presently, we are tapping VAT at each stage of supply chain, from manufacturer to wholesaler to retailer. We already have multiple points taxation. Under GST, we are just merging the taxes of the Centre and states. The inflation which happened in other countries was because they shifted from single point taxation to GST,” Adhia said at the GST Conclave here.

He said that once the new indirect tax regime is rolled out, the incidence of tax on imported goods would be the same as on the locally manufactured items.

The imported goods, he explained, will be subject to Integrated GST (IGST) for which credit can be claimed at the time of sale. IGST is just an interim tax or a washout tax which is equivalent to the GST rate on a specific product.

In case of locally manufactured goods, a similar GST rate will be applicable and hence, there will be no advantage for the imported goods.

The government levies countervailing duty (CVD) and special additional duty (SAD) on imported goods to protect domestic manufacturers.

“The incidence of tax on imported goods will be equivalent to the tax paid by the local industry. This will strengthen domestic manufacturing and Make in India,” Adhia said.

Goods and services tax (GST), which is proposed to be rolled out from July 1, will unify at least 10 different central and state levies and make India a uniform market for seamless transfer of goods and services.

Adhia said as many as 71 per cent of the existing taxpayers have already migrated to the GSTN portal and the CBEC has asked field offices to organise awareness camps in towns with a population of 1 lakh or more.

Also, the department will come out with sector-wise guidance note for GST implementation.

The Centre and states have also agreed to keep businesses with turnover of up to Rs 20 lakh out of the GST ambit.

For entities with turnover of up to Rs 50 lakh can opt for composition or compounding scheme under which traders and manufacturers will be required to file tax at 1 per cent and 2 per cent, respectively. Besides, restaurants within this threshold will attract 5 per cent tax.

Adhia said businesses opting for the composition scheme will have to file returns quarterly and only provide details of turnover. There is no need for filing of invoice-wise detail.

With regard to the provision in the Act on refund of IGST paid by international tourists, he said it will not be implemented with effect from July 1 GST rollout date.

Asked whether VAT would be refunded at the airport to foreign tourists, Adhia said: “We have kept that provision in the Act, but to implement it will take time. Immediately, it won’t be available to foreign tourists, but after some time, we will see. We will have to develop a mechanism for it. We are not implementing this provision from July 1.”

The IGST Act provides that integrated tax paid by tourists leaving India on any supply of goods taken out of the country by him shall be refunded. However, the conditions and safeguards are yet to be prescribed.

The IGST Act defines ‘tourist’ as a person who enters India for a stay of not more than six months for legitimate non-immigrant purpose.

Business Today, 25 April 2017

Govt may not announce GST rates immediately for fear of market manipulation

The government is unlikely to announce the tax rates for various commodities under GST any time soon as it fears an early announcement could give rise to market distortions and hoarding.

Sources privy to the development told the Financial Express the rates will be revealed just a few days prior to the July 1 roll-out of the goods and services tax.

Rajat Mohan, Director-Indirect Taxation, Nangia & Co told FT that unlike western counterparts, India has a price-sensitive market where any indication of minor change in tax rates tempts the consumers to rate buy a product.

“This rate buying is not a good indication for any economy as it may result in black marketing and hoarding,” he said.

He said the government could control such malpractices if rates are revealed closer to the GST roll-out date.

While establishing the GST rate for a particular item the panel will place it in a slab nearest to its current rate and it is expected that the GST council will keep in mind the real tax incidence at present rather than the nominal rate, the source said.

“For instance, if the nominal tax rate on an item with maximum retail price of `150 and ex-factory price of `100 is 26.5 percent (12.5 percent excise and 14 percent VAT), the real tax incidence on the price to the consumer could be just over 22 percent, as the excise duty is virtually levied on the ex-factory price, with abatement for post-manufacturing value addition,” the report said.

Money Control, 25 April 2017

GST to rate taxpayers, businesses on payment record, make ratings public

Trade and industry will be assigned a ‘compliance rating’ based on their credibility with regard to timely deposit of taxes to the exchequer and filing of returns under the goods and services tax structure.

Revenue Secretary Hasmukh Adhia said a system of GST Compliance Rating will be put in place so that every trader or businessman will be rated based on their track record.

Once the rating is made public on the GSTN portal, a businessman can decide on whether to deal with another trader or entity who does not deposit tax with the government and therefore, has a low compliance score.

GST Network (GSTN) is the firm which is building the IT backbone of the unified tax, which is scheduled to go into effect from July 1.

The GST Council in due course will approve the procedures to be followed for compliance rating and it will mostly depend on how a trader or business entity has complied with filing returns and other requirements under the Act, GSTN CEO Prakash Kumar said.

“We will start with by putting everyone at equal level, but if a taxpayer is non-compliant, then only your rating will go down,” Kumar explained.

A GST compliance rating somewhat mirrors the credit score that CIBIL provides based on the credit history of a borrower. The score is a three-digit numeric summary and depends on an individual’s credit payment history across bank loans and credit institutions over time.

The Central GST Act as passed by Parliament also provides that every registered person may be assigned a goods and services tax compliance score by the government based on his record of compliance with the provisions of this Act.

The parameters for determining the rating score are yet to be prescribed.

The rating will provide the name of the taxpayer as well as the GST Identification Number (GSTIN).

Speaking to reporters at the GST Conclave here, Adhia further said all efforts are being made to roll out GST from July 1 and the industry too should brace for it.

He said Telangana and Bihar have already passed the State GST (SGST) Bill in their respective state legislatures while Rajasthan is scheduled to pass it tomorrow.

As many as 14 states have said they will pass the SGST Bills by mid of May and by May 31, all state legislatures will pass the SGST bill, Adhia said.

“We are making all efforts to implement GST from July 1. We request the trade and industry that they should not be complacent and should make efforts to prepare for GST. The big industry will have to change the ERP software system, the small traders need no preparation as they can file return using the offline tool on the GSTN portal,” Adhia said.

The secretary further said GSTN has already short-listed 34 companies to be the GST Suvidha Provider (GSP). The GSPs are mandated to provide innovative and convenient ways to taxpayers and other stakeholders while interacting with GST Systems, from registration of entity to uploading of invoice details to filing of returns.

GSTN will soon appoint some more startups and companies which will make easier software solution for filing returns, he said.

Besides, people with issues in filing returns can walk up to centres where ‘GST practitioners’ can assist them. Also, there will be helplines that will attend to queries from people both in national and vernacular languages.

The Economic Times, 25 April 2017

Professionals may face GST as ‘casual taxable persons’

If you are an interior decorator based in Mumbai and are providing services on-site to a client in Bengaluru (where you don’t have a fixed place of business), then irrespective of your turnover, you will have to register under Goods and Services Tax (GST) in the state of Karnataka.

Small businessmen or professionals (such as architects, fashion designers, make-up artists, trainers, musicians, stand-up comedians — et al) providing taxable goods or services may find that they have to register under GST if the term ‘casual taxable person’ applies to them. This registration will be required even if they fall below the threshold limit for GST levy. Currently, the exemption limit for GST is a turnover of Rs 20 lakh (Rs 10 lakh in NE states).

The term ‘casual taxable person’ is specifically defined as ‘One who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a state or a union territory where he has no fixed place of business’.

Nihal Kothari, executive director, Khaitan & Co, a law firm, illustrates: “A jeweller who has a showroom in Mumbai but participates in an exhibition-cum-sale in another city would fall under this category. However, if he sends the consignment from his Mumbai store, then it would be an inter-state sale and would not require his registration as a casual taxable person.”

Bipin Sapra, indirect tax partner at EY India, says, “The facts of each case will determine whether or not it would be a case of an inter-state supply or one falling in the category of supply by a casual taxable person. If both the place of supply and the location of the service provider is in a state where he doesn’t have a fixed place of business, registration as a casual taxable person may be required — more often than not, B2C transactions may fall in this category.”

Casual taxable persons are required to apply for registration five days prior to the commencement of business (or in other words, before entering into the transaction for supply of goods or services). The registration certificate is valid for 90 days and can be extended up to another 90 days. A TOI reader, who is a small businessman, wrote to us to express his dismay. “At the time of application for registration, an advance deposit of tax-equivalent to the estimated tax liability for the period for which the registration is sought is also to be deposited,” he pointed out. Kothari adds, “If the estimated tax is much more than what is payable, it would be a lengthy process to obtain a refund. In the absence of output tax in the state where the service has been rendered as a casual taxable person, input tax credit also cannot be claimed.”

Non-residents suppliers also require GST registration.

The Times of India Business, 25 April 2017

Odisha opposes use of clean cess funds for GST compensation

The Odisha government has opposed the decision of the GST Council to use proceeds of the clean environment cess for GST Compensation Fund meant for all states.

Chief Minister Naveen Patnaik said this decision is disadvantageous to coal bearing states which have to bear pollution load and environment degradation and also the cost of rehabilitation. He has suggested that 60 per cent of the clean environment cess be earmarked for coal bearing states.

Earlier Patnaik had demanded that renewable energy projects in projects need to be funded from National Clean Energy Fund (NCEF) and hydro electric projects having installed capacity of more than 25 Mw, especially the pump storage projects may also be considered as renewable energy projects. These projects, Patnaik felt, would help tremendously in meeting the peak demand of power and also in balancing the grid.

Though the rate of royalty on coal has not been revised for the past four years, the central government has enhanced the clean environment cess on coal from Rs 200 to Rs 400 per tonne in 2016-17 Budget. Proceeds of this cess accrue to the NCEF earmarked for development of renewable energy.

Originally envisaged a carbon tax, the clean energy cess was meant to combat climate change and fund clean energy projects. Over the past six years since its introduction in 2010, the Government of India has mopped up Rs 54,000 crore by way of clean cess. Less than 50 per cent of the proceeds have gone to NCEF and barely 10 per cent has been earmarked  for renewable energy projects. In the April-January period of 2016-17, the Union government had collected Rs 21,129 crore as clean environment cess. In 2016-17 Budget, the cess on coal, lignite and peat was doubled from Rs 200 to Rs 400 per tonne.

Business Standard, 24 April 2017

Bihar adopts GST; Nitish terms it as ‘a historic moment’

Both the Houses of Bihar Legislature today unanimously adopted the Goods and Services Tax (GST) bill along with the Bihar taxation (Amendment) Bill, becoming the second state after Telangana to pave the way for roll out of the GST from July 1.

Bihar Legislative Assembly as well as Legislative Council adopted the Bills related to GST with one voice.

Bihar became the second state after Telangana to ratify GST which needs nod of the states after its clearance in Parliament.

Chief Minister Nitish Kumar speaking in the state Legislative Council described the passing of GST by all the parties together as “a historic moment.”

Expressing thanks to all the members, Kumar said Bihar has been in favour of GST from the beginning.

“Even after change of government, Bihar continued with its support to GST,” Kumar, who is heading the Grand Alliance government of JD(U), RJD and Congress, said.

He said the budget session of the two Houses were prorogued on March 31 in anticipation of passing of GST in Parliament and its coming to the state for the same.

Leader of Opposition in Legislative Council Sushil Kumar Modi, who had headed a ministerial committee on GST during NDA rule in Bihar, expressed happiness over adoption of GST related bills with the help of all the parties.

He expressed thanks to Chief Minister Nitish Kumar for standing in favour of GST from the beginning. “On his advise, I had accepted Chairmanship of GST as Finance minister of the state during NDA rule,” the senior BJP leader said.

In the Legislative Assembly, bills related to GST were taken up in pre-lunch session and with ruling JD(U), RJD, Congress and even opposition BJP and its NDA partners in support of GST bill, it was adopted through voice vote.

Commercial Tax minister Bijendra Prasad Yadav had moved the Bihar Goods and Service Bill, 2017 and the Bihar Taxation (Amendment) bill, 2017.

While all the major parties were in favour of GST, JD(U), BJP and Congress tried to score over each other in taking credit in state Legislative Assembly over it.

Sushil Modi praised Nitish Kumar for continuously being in support of GST even when BJP was opposed to it when he was heading a NDA ministry in Bihar.

“A statesman looks for good of next generation while a politician merely looks for next election while taking decision on such issues,” Yadav said in praise of Kumar.

Leader of Opposition in Assembly Prem Kumar lauded the prime minister for the historic GST legislation which he said would help in checking corruption and increase investment.

Congress Legislature Party leader Sadanand Singh said that his party has been in support of GST from the beginning.

“Due to obstacle created by BJP, the GST could not be approved in 2006 during UPA ministry. On account of this, the country lost around 12 lakh crore and now it has been cleared,” he said.
The Economic Times, 24 April 2017

Under GST, small cars may see hike in prices

Small and mid-sized cars may see a small hike in prices after the Goods and Services Tax (GST) is rolled out from 1 July as different goods are fitted into the four-slab rate structure.

The GST will unify at least 10 central and state taxes into one. Goods and services will have to fall into one of the approved four rate categories of 5, 12, 18 and 28%, which is closest rate to the present incidence of taxation.

Small cars currently attract a 12.5% central excise duty. Another 14.5-15% VAT is levied by states, taking the total tax incidence to 27-27.5%.

A senior finance ministry official said the closed slab for this category of cars would be 28%, resulting in a small increase in price. Mid-sized cars of up to 1500 cc are levied with a 24% excise by the central government and a 14.5% VAT by state governments, taking the tax incidence to 38.5%. So this category of vehicles will attract the highest tax rate of 28% and a state compensation cess to take the total incidence closer to the current levels, the official said.

The GST law provides for levy of cess on top of the peak tax rate on demerit and luxury goods like pan masala, tobacco and certain class of automobiles to create a corpus that will be used to compensate states for loss of revenue arising on account of the implementation of the GST in first five years.

The official said a cess of up to 15% is provided in the GST Compensation Law and the final incidence of taxation would be arrived at adding the same to the peak rate. The cess would be levied in a manner so as to keep the final incidence of taxation at close to current levels, he said.

For SUV and bigger cars of more than 1500 cc, the current incidence of taxation is 41.5% to 44.5% (comprising of 27-30% of central excise and the remaining 14.5% being state VAT).

The official said these class of vehicles would be put in the peak 28% tax bracket and maximum 15% cess. This would take the total incidence of taxation to 43%. This means that for a select few vehicles, the tax incidence would be marginally lower than at present and would thus result in lower prices if the manufacturer passes on the benefit to the consumers.

Dubbed as the biggest tax reform since Independence, the GST is to unify at least 10 indirect taxes into one to be collected at state and central levels. Under the existing structure, the central government levies a production tax, called excise duty, and the state government charge a sales tax called VAT. These two will unify in the GST.

Livemint, 24 April 2017

Status of GST Migration

Vanaja N. Sarna

Chairman

GOVERNMENT OF INDIA

MINISTRY OF FINANCE/ DEPARTMENT OF REVENUE

CENTRAL BOARD OF EXCISE & CUSTOMS

Dated- 21st April, 2017.

DO.No.05/CH(EC)/2017

Dear Colleagues,

In this week’s newsletter I would like to highlight the importance of GST Awareness Campaign (GAC) of CBEC. As you are aware, this work is presently being done by NACEN in coordination with all the field formations in CBEC. I am happy to note that the Directorate General of Systems is creating an online dashboard for GAO which will be linked with the departmental website. This dashboard will have date wise and zone wise details of the GAC events that have been held or are planned to be held which will be very helpful to all stakeholders as they will be in a position to know in advance the location, venue, date and time of the GAC event being organised by CBEC.

This dashboard will also have a facility for departmental officers to upload the proposed location, venue, date and time of the GAO event being organised in their zone. Further, after the event is over, facility will also be given to the concerned field formations to upload a report of the event along with three or four photographs. I urge you all to make full use of this facility in these crucial months.

Recently, as part of the GST outreach activities, the Revenue Secretary had visited the States of Assam and Arunachal Pradesh to review the preparedness of the North Eastern Region for GST. In a programme, aptly named GST- Manthan, he addressed about 1000 members of industry, trade and professional associations and explained in detail about the various issues concerning GST and elaborated on the efforts being made for a smooth transition for trade and industry. He urged the taxpayers to quickly migrate to the GST regime by getting themselves registered.

Coming to the status of migration, as on date 73% of the existing Central Excise registrants and 34% of the existing Service Tax registrants have migrated. We are fast approaching the last date for completion of migration i.e. 30.04.2017. I urge all zonal Chief Commissioners to take necessary steps to assist all existing taxpayers in their migration to the new regime.

May I also take this opportunity to request all DDOs in CBEC to get registered in ‘Bhavishya Portal’which has been made mandatory from 1st January, 2017 for processing of all pension cases. Detailed instructions on various aspects of Bhavishya Portal are available at https://bhavishya.nic.in. If any further help is required, the Nodal Officer – Shri Sanjiv Kumar Singh, Additional Director, DGHRD, may be contacted on 011-25761008.

Last, but certainly not the least, I welcome all the newly posted IRS probationers to their respective field formations. Being fresh out of training, you will be most instrumental in conducting the GAC of the department. I wish you all the very best for your future career.

With warm wishes,

Yours sincerely,

(Van Sarna)

To

All officers and staff of Central Board of Excise and Customs