Monthly Newsletter Volume - 22 March - 2019

G S T

1 ICSI-GST Newsletter
 Inside
The Issue
03
President Message

04
Latest Changes in GST Registration Provisions

07
Applicability of RCM on Purchases from Unregistered Persons

09
Major Amendments in GST Acts

13
GST in News

19
GST Statistical Updates

21
Compliance Calender

22
GST Quiz

23
Appeal to Register as GST Practitioner

Disclaimer: Although due care and diligence have been taken in preparation of this Newsletter, the
Institute shall not be responsible for any loss or damage, resulting from any action taken on the basis of
the contents of this Newsletter. Any one wishing to act on the basis of the material contained herein
should do so after cross checking with the original source.
2
Dear Professional Colleagues,
While presenting the Interim Budget for 2019-2020, honourable Finance Minister, Shri
Piyush Goyal stated that “last ve years have seen India being universally recognised
as a bright spot of the global economy. The country witnessed its best phase of macro-
economic stability during this period. We are the fastest growing major economy in
the world with an annual average GDP growth during last ve years higher than the
growth achieved by any Government since economic reforms began in 1991. From
being the 11th largest economy in the world in 2013-14, we are today the 6th largest in
the world. Besides generating high growth rate, we contained double-digit ination
and restored scal balance”. This tremendous achievement is denitely contributed
by continuous efforts of Government. Implementation of GST is one of the key
ingredients of this journey. Over the last 20 months, India has seen a new era of
economic growth, where ease of indirect taxes compliances with robust IT
infrastructure are the witness of such growth.
Government is taking every possible step in understanding the grievance of
taxpayers and simplifying the GST laws for better and smooth administration.
Recently GST Council slashed down the GST rates on various goods & services and
now only very few items are falling under 28% tax bracket. Various concerns & issues
of Industry have been taken care by the Government in GST Amendment Acts, 2018
and the same is made effective from February 01, 2019.
Indeed, with all these constant initiatives of the government, when GST is paving the
way for one Common National Market, the dedicated efforts of all of us as
professionals are equally important in the success of GST. It is essential for us to keep
ourselves updated with the latest developments in serving the professional expertise
in GST.
Aligning our appreciation towards the Interim Budget 2019-20 and fortifying our
efforts towards the success of GST, we are pleased to release our 22nd edition of ICSI
GST Newsletter, a monthly circulation to the professional community containing
various updates on GST laws.
We look forward for your feedback for further enriching the contents of GST
Newsletter.
With best wishes
CS Ranjeet Pandey
President, ICSI
3 ICSI-GST Newsletter
 NO PAIN ONLY GAIN: LATEST CHANGES IN
GST REGISTRATION PROVISIONS*
GST has brought various business reforms. Intention of any law is not to give pain but to
provide gain. For achieving goal of Ease of doing business in India, various measures are
taken and one of the prime focuses is on GST. Since long business community was
demanding to allow taking one or more
registration in the same state under same PAN
even in the same line of Business, Government
took proactive step and allow it through CGST
Amendment Act 2018 which was notied w.e.f.
1st Feb 2019. Second area to cry was ling of Nil
GST returns between the time period of
applying for GST registration cancellation and
its nal approval by department which is also
resolved.

• Separate registration for multiple places of business within a State or a

Union territory [Rule 11 of CGST Rules, 2017]

Any person having multiple places of business within a State or a Union territory,
requiring a separate registration for any such place of business under sub-section (2) of
section 25 shall be granted separate registration in respect of each such place of business
subject to the following conditions, namely:-

(a) Such person has more than one place of business as dened in clause (85) of
section 2;

Section 2(85) of CGST Act 2017 “place of business” includes–– (a) a place from where
the business is ordinarily carried on, and includes a warehouse, a godown or any
other place where a taxable person stores his goods, supplies or receives goods or
services or both; or (b) a place where a taxable person maintains his books of account;
or (c) a place where a taxable person is engaged in business through an agent, by
whatever name called;

*Contributed by Ms. Payal Kataria, FCS, and Special Invitee, ICSI-GST Core Advisory Group
Views expressed in this article are the personal views of the author

4 ICSI-GST Newsletter
 (b) such person shall not pay tax under section 10 for any of his places of
business if he is paying tax under section 9 for any other place of business;
Section 10 of CGST Act deals with Composition Levy and for all places of
business either opt composition scheme or regular scheme.
It is claried that where any place of business of a registered person that has
been granted a separate registration becomes ineligible to pay tax under
section 10, all other registered places of business of the said person shall
become ineligible to pay tax under the said section.
Example: If Mr. A has already taken GST registration under regular Scheme
in Punjab and as allowed in GST amendment Act, he can opt to take another
registration in Punjab under regular Scheme only and cannot take
Composition Scheme for second registration in Punjab.
(c) all separately registered places of business of such person shall pay tax
under the Act on supply of goods or services or both made to another
registered place of business of such person and issue a tax invoice or a bill of
supply, as the case may be, for such supply.

Procedure to Take separate Registration in the Same State

A registered person opting to obtain separate registration for a place of business shall
submit a separate application in FORM GST REG-01 in respect of such place of business.
The provisions of rule 9 and rule 10 relating to the verication and the grant of registration
shall, mutatis mutandis, apply to an application submitted under this rule
There is no any other new form prescribed for taking separate registration in the same state
and Form GST REG-01 is to be led for the same.

Treatment of ITC
Transfer of credit on obtaining separate registration for multiple places of business
within a State or Union territory- Procedural aspect [Rule 41A of CGST Rules, 2017]
(1) A registered person who has obtained separate registration for multiple places of
business in accordance with the provisions of rule 11 and who intends to transfer,
either wholly or partly, the unutilised input tax credit lying in his electronic credit
ledger to any or all of the newly registered place of business, shall furnish within a
period of thirty days from obtaining such separate registrations, the details in
FORM GST ITC-02A electronically on the common portal, either directly or
through a Facilitation Centre notied in this behalf by the Commissioner
Provided that the input tax credit shall be transferred to the newly registered
entities in the ratio of the value of assets held by them at the time of registration.
Explanation.- For the purposes of this sub-rule, it is hereby claried that the 'value
of assets' means the value of the entire assets of the business whether or not input
tax credit has been availed thereon.

5 ICSI-GST Newsletter
(2) The newly registered person (transferee) shall, on the common portal, accept the
details so furnished by the registered person (transferor) and, upon such
acceptance, the unutilised input tax credit specied in FORM GST ITC-02A shall be
credited to his electronic credit ledger.

v Suspension of registration [Rule 21A of CGST Rules, 2017]

(1) Where a registered person has applied for cancellation of registration under rule 20,
the registration shall be deemed to be suspended from the date of submission of the
application or the date from which the cancellation is sought, whichever is later,
pending the completion of proceedings for cancellation of registration under rule
22.
(2) Where the proper ofcer has reasons to believe that the registration of a person is
liable to be cancelled under section 29 or under rule 21, he may, after affording the
said person a reasonable opportunity of being heard, suspend the registration of
such person with effect from a date to be determined by him, pending the
completion of the proceedings for cancellation of registration under rule 22.
(3) A registered person, whose registration has been suspended under sub-rule (1) or
sub-rule (2), shall not make any taxable supply during the period of suspension and
shall not be required to furnish any return under section 39.
(4) The suspension of registration under sub-rule (1) or sub-rule (2) shall be deemed to
be revoked upon completion of the proceedings by the proper ofcer under rule 22
and such revocation shall be effective from the date on which the suspension had
come into effect.”

Section 29 of the CGST Act has been amended by the CGST (Amendment) Act, 2018 to
provide for “Suspension” of registration. The intent of the said amendment is to
ensure that a taxpayer is freed from the routine compliances, including ling returns,
under GST Act during the pendency of the proceedings related to cancellation.

Conclusion: Before taking decision to take multiple registrations in the same state
various points and parameters to be judged and calculated.

6 ICSI-GST Newsletter
 Applicability of Reverse Charge Mechanism (RCM)
on
Purchases from Unregistered Persons*

Section 9(4) of CGST Act, 2017 and Section 5(4) of IGST Act, 2017 contain provisions regarding
Reverse Charge Mechanism (RCM) on purchases from unregistered persons.

GST on supplies from unregistered person to registered person is levied in the hands of
registered person under RCM.

Government has amended the provisions regarding RCM on purchases from unregistered
persons vide GST Amendment Acts, 2018.

Before Amendment After Amendment

Section The central tax/ integrated The Government may, on the

9(4)/ 5(4) tax in respect of the supply of recommendations of the Council, by
of CGST taxable goods or services or notication, specify a class of registered
Act/ IGST both by a supplier, who is not persons who shall, in respect of supply of
Act registered, to a registered specied categories of goods or services
person shall be paid by such or both received from an unregistered
person on reverse charge supplier, pay the tax on reverse charge
basis as the recipient and all basis as the recipient of such supply of
the provisions of this Act shall goods or services or both, and all the
apply to such recipient as if he provisions of this Act shall apply to such
is the person liable for paying recipient as if he is the person liable for
the tax in relation to the paying the tax in relation to such supply
supply of such goods or of goods or services or both.
services or both.
Analysis Every registered person was A class of registered person shall pay GST
liable to pay GST on all intra- on all intra-state/ inter-state supplies of
state/ inter-state supplies of goods or services or both received from
goods and services or both unregistered persons under reverse
received from unregistered charge mechanism.
persons under reverse charge
mechanism.

*Prepared by CS. Richa Gupta, Consultant, Dte of PD, PP & Studies, ICSI

7 ICSI-GST Newsletter
BEFORE AMENDMENT
An exemption was granted by Central Government vide Notication No. 08/2017- Central
th
Tax (Rate) dated 28 June, 2017 to those registered persons whose aggregate value of supplies
of goods or services or both received from any or all the suppliers, who is or are not registered
doesn't exceed Rs. 5000 in a day.
st
This notication came into force with effect from the 1 day of July, 2017.
No such exemption was granted under IGST Act.
th
Central Government further vide Notication No. 38/2017- Central Tax (Rate) dated 13
October, 2017 extended such exemption to all the registered persons till 31st March, 2018.
Similar exemption notication was also issued under IGST Act on the same day to provide
exemption for inter-state supplies from unregistered persons.
th th th
Such exemption was further extended to 30 June, 2018 then 30 September, 2018 and then 30
September, 2019 vide various Notications issued by the Central Government for both intra-
state and inter-state supplies from unregistered persons.
AFTER AMENDMENT
Notication No. 01/2019 – Central Tax (Rate) dated 29th January, 2019 rescinds notication
No. 8/2017-Central Tax (Rate) dated 28th June, 2017 in view of bringing into effect the
amendment regarding RCM on supplies by unregistered persons in the CGST Act.
Notication No. 01/2019 – Integrated Tax (Rate) dated 29th January, 2019 rescinds notication
th
No. 32/2017-Integrated Tax (Rate) dated 13 October, 2017 in view of bringing into effect the
amendments regarding RCM on supplies by unregistered persons in the IGST Act.
Consequent to the Notication No. 01/2019 – Central Tax (Rate) and Notication No.
01/2019 – Integrated Tax (Rate) dated 29th January, 2019 exemption provided till 30th
September, 2019 also stands withdrawn.
W.e.f. 01.02.2019, Section 9(4)/ Section 5(4) to be applicable only for specied class of
registered persons.
The class of persons to whom Section 9(4)/ Section 5(4) will be applicable is yet to be notied.

CONCLUSION
From 1.7.1017 to 13.10.2017 From 13.10.2017 to From 01.02.2019
Only those Registered 31.1.2019 Section 9(4)/ Section 5(4) to
Persons whose aggregate All the Registered be applicable only for
value of intra-state supplies Persons receiving specied class of Registered
of goods or services or both supplies (intra-state/ Persons in respect of
received from any or all the inter-state) of goods or specied category of goods
suppliers, who is or are not services or both from any or services or both.
registered [i.e. from or all the suppliers, who is The class of persons and
Unregistered Person(s)], or are not registered [i.e. category of goods/ services
doesn't exceed Rs. 5000 in a from Unregistered in respect of which Section
day were exempted. Person(s)], were 9(4)/ Section 5(4) will be
exempted without any applicable is yet to be
limit. notied.

8 ICSI-GST Newsletter
 Major Amendments made in GST Amendment Acts,
2018 enforced w.e.f. February 01, 2019*

S. No. Major Amendments

1. New Provision: Section 49A inserted in CGST Act, 2017

The input tax credit (ITC) on account of Central tax, State tax or Union territory tax
shall be utilised towards payment of Integrated tax, Central tax, State tax or Union
territory tax, as the case may be, only after the input tax credit available on account of
Integrated tax has rst been utilised fully towards such payment.

An Example:
CGST Liability: ₹ 20,000 Available Input Tax Credit:
CGST Input: ₹ 7,000
SGST Input: ₹ 2,000
IGST Input: ₹ 12,000

Order of Set Off:

1. IGST: ₹12,000
2. CGST: ₹ 7,000
3. Cash: ₹ 1,000

2. Newly inserted Section 49B in CGST Act, 2017 provides that the order and manner of
utilization of ITC may be changed/ altered by the Government on the
recommendations of the GST Council any time.

3. Reverse Charge Mechanism (RCM) provisions on supplies from unregistered

person is restricted to specic class of registered person and for specic category of
goods/ services.

The class of persons and category of goods/ services in respect of which Section
9(4)/ Section 5(4) will be applicable is yet to be notied.

(For detailed analysis, kindly refer Article: Applicability of Reverse Charge Mechanism
(RCM) on Purchases from Unregistered Persons)

4. In respect of Composition Scheme, maximum limit of turnover has been enhanced

from ₹ 1 Crore to ₹ 1.5 Crore.

Note: Maximum limit is enhanced by the amendment act but presently the limit is ₹ 1
Crore only.

*Prepared by CS. Richa Gupta, Consultant, Dte of PD, PP & Studies, ICSI

9 ICSI-GST Newsletter
 Further, manufacturers and traders can opt for composition scheme even if they
supply services, provided that the value of such service should not exceed ten per
cent of turnover in the preceding nancial year or ve lakh rupees, whichever is
higher.

5. Separate registration for each place of business in respect of a person having

multiple place of business in a State allowed.

Earlier, multiple registrations within a State were allowed only in cases of separate
business vertical.

6. During pendency of the proceedings relating to cancellation of registration, the

registration may be suspended for such period and in such manner as may be
prescribed.

The intent of the said amendment is to ensure that a taxpayer is freed from the
routine compliances, including ling returns, under GST Act during the pendency
of the proceedings related to cancellation.

7. Separate registration requirement for SEZ unit or developer incorporated in the Act
itself in Section 25.

8. Suppliers can issue consolidated credit note/ debit note for multiple invoices in a
nancial year.

Practical problem of linking each credit note/ debit note to particular invoice has
been resolved.

9. Increase in threshold limit for obtaining GST registration in the States of Arunachal
Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand from
earlier ₹ 10 lakhs to now ₹ 20 lakhs.

After amendment, threshold limit is ₹ 10 Lacs in case of Manipur, Mizoram,

Nagaland & Tripura AND ₹ 20 Lacs in case of remaining states.

Further, Govt. has enabled itself, to increase threshold limit for obtaining GST
Registration, from ₹ 10 lakh to ₹ 20 lakhs upon request received from any special
category state.

10. Input Tax Credit (ITC) will be available for motor vehicles having approved seating
capacity of more than 13 persons (including driver).

ITC will also be available in respect of dumpers, work-trucks, fork-lift trucks and
other special purpose motor vehicles.

10 ICSI-GST Newsletter
 No ITC shall be available for services of general insurance, servicing, repair and
maintenance in so far as they relate to motor vehicles, vessels and aircraft for which
the credit is not available.

Scope of ITC available expanded.

11. Any department of the Central Government or a State Government or a local

authority, whose books of account are subject to audit by the Comptroller and
Auditor-General of India or an auditor appointed for auditing the accounts of local
authorities under any law for the time being in force need not to get their accounts
audited by a Chartered Accountant or Cost Accountant under GST. Hence, they are
not required to le audit report in FORM GSTR-9C.

12. Activities specied in schedule II will be taxed, only when the activity is constituted
as supply in accordance of provisions of Section 7(1) of the CGST Act.

This provision is amended retrospectively w.e.f. July 01, 2017.

The schedule doesn't decide whether a transaction is supply or not, rather it decides
whether the supply is in the nature of supply of goods or supply of services.

Drafting error is rectied.

13. The principle of Unjust enrichment will be applicable in case where supplies are
made to SEZ Unit/ Developer and tax is recovered by a unit located in Domestic
Tariff Area (DTA) AND at the same time refund is also claimed by such unit.

Refund will be available to SEZ Unit/ Developer only.

14. In case of export of services, receipt of consideration in foreign currency is a pre-

condition to claim refund.

Amendment allows receipt of payment in Indian rupees, where permitted, by the

RBI in case of export of services. [Section 54 of CGST Act]

15. In case of any recovery is due from one unit in a particular state the amount can be
recovered from another unit of same person located in different state also which
means for the purpose of speedy recovery word person to include distinct person
also (person with same PAN). [Section 79 of CGST Act]

11 ICSI-GST Newsletter
16. Law has restricted the maximum ceiling of pre-deposit in case of

Appeals to Appellate Authority to ₹ 25 crores [Section 107(6) of CGST Act];

and

Appeals to Appellate Tribunal to ₹ 50 crores [Section 112(8) of CGST Act]

Earlier there was no ceiling limit.

17. Time limit for payment of tax or penalty for goods detained or seized has been
increased from 7 days to 14 days. [Section 129(6) of the CGST Act]

18. Time limit for receipt of goods sent to job-worker for job-work (Section 143 of CGST Act):

The period of 1 year (in case of inputs) and 3 years (in case of capital goods) may on
showing sufcient cause can be extended by a Commissioner for a further period
not exceeding 1 year (in case of inputs) and 2 years (in case of capital goods)
respectively.

19. In Schedule I of the principal Act, in paragraph 4, for the words “taxable person”, the
word “person” shall be substituted.

An entity, even though not registered under GST, if receives services from their
related parties located outside India, in course or furtherance of business, falls under
an ambit of GST.

20. Insertion of the words “OR TRANSACTIONS” after the word “ACTIVITIES” in the
heading of Schedule II.

Some items in the form of transactions will be better covered through this
amendment.

This provision is amended retrospectively w.e.f. July 01, 2017.

21. · Supply of goods from a place in the non-taxable territory to another place in the
non-taxable territory without such goods entering into India (Merchant Trade
Transactions);
· Sale of goods after dispatch from the port of origin located outside India but
before clearance for home consumption (High Sea Sales); and
· Supply of warehoused goods to any person before clearance for home
consumption

not to be treated as supplies.

The above 3 transactions are specied under Schedule III through CGST
Amendment Act.
12 ICSI-GST Newsletter
 GST News
1. GST Revenue collection for January 2019 crossed one lakh crore rupees
· The total gross GST revenue collected in the month of January, 2019 is Rs 1,02,503 crore of
which CGST is Rs 17,763 crore, SGST is Rs 24,826 crore, IGST is Rs 51,225 crore (including
Rs 24,065 crore collected on imports) and Cess is Rs 8,690 crore (including Rs 902 crore
collected on imports).

· In FY 2018-2019, it is for the third time that GST Revenue collection has crossed One Lakh
Crore.

· The total number of GSTR-3B Returns led for the month of December up to 31st January,
2019 is 73.3 lakh.

· The collection in January 2019 is a signicant increase from the collection of Rs 94,725 crore
in December, which was a decline from Rs 97,637 crore in November and Rs 1,00,710 crore
in October.

· January 2019 collections are 14% above the January 2018 collections of Rs 89,825 crore. This
jump has been achieved despite various tax reductions having come into force that
provided major relief to the consumers. The gross GST collections over the last three-month
period has been 14% higher than the corresponding period last year.

The following Chart shows Trends in Revenue during the Current Financial Year 2018-19 as
compared to the Last FY 2017-18:

http://pib.nic.in/newsite/PrintRelease.aspx?relid=187958

13 ICSI-GST Newsletter
2. Rising Revenue Trend prompted Government to estimate 18% growth in FY20 GST
Collections: Ajay Bhushan Pandey

· The Government has projected over 18 percent growth in GST collections in 2019-20 based
on the rising trend in revenue mop up witnessed during the three-month period ending
January 2019, Revenue Secretary Ajay Bhushan Pandey said.

· The central government plans to collect over Rs 7.61 lakh crore in Goods and Services Tax
next scal as against the revised estimate of over Rs 6.43 lakh crore to be collected in the
current nancial year ending March.

· However, the collection during this scal would be less by Rs 1 lakh crore from the Rs 7.43
lakh crore estimated in the budget for 2018-19.

· Last scal, our average collection was Rs 89,000 crore. This scal, we are averaging Rs 97,000
crore. So, the revenue trend is on an upward scale. If one compares November, December,
January of 2017-18 with that of 2018-19, one can see a 14 percent increase. So, based on this
assessment, we have given the increase for next year said Ajay Bhushan Pandey, Revenue
Secretary.

· He said during the last one-and-half years, a series of measures, both in rate rationalisation
and processes, have been undertaken.

· The changes made to the GST system will hopefully lead to consolidation next year, which
in turn will result in higher revenue, Pandey told PTI. “Based on that, we have given the
estimate.”

https://www.bloombergquint.com/gst/rising-revenue-trend-prompted-govt-to-peg-18-pc-rise-in-
fy20-gst-collections-secy#gs.231u4y86

3. GSTN develops system to fetch e-way bill data into monthly sales returns to curb evasion
· Now, businesses supplying goods worth more than Rs 50,000 will have option to include
details of e-way bills generated while ling the nal monthly sales return under GSTR-1, a
move aimed at curbing tax evasion by reporting different sets of supplies data.

· Matching of invoices of e-way bills with the sales shown in GSTR-1 will help taxmen in
assessing whether the supplies have been accurately shown in sales return and GST paid on
the same, tax experts said.

· "To avoid double data entry, GSTN has provided a facility to taxpayers, where month's e-
way bill data is shown in format, which is required by a taxpayer to ll up the Form GSTR-1.
The taxpayer can import data in his GSTR-1 form or import the same and use it with GSTR-1
ofine tool to create his GSTR-1 Return Form," GST Network said.

· Touted as an anti-evasion measure, e-way bill system was rolled out on April 1, 2018, for
moving goods worth over Rs 50,000 from one state to another. The same for intra or within
the state movement was rolled out in a phased manner from April 15, 2018.

14 ICSI-GST Newsletter
 · Following this, it has come to investigative ofcers' notice that some transporters are doing
multiple trips by generating only a single e-way bill or not reecting e-way bill invoices
while ling GSTR-1. It has also come to the notice that certain e-way bill is not being
generated even as supplies are being made.

· While generating e-way bill, details of supplier, receiver and other invoice details like
number, date, goods, quantity, HSN code etc are provided by the taxpayer on e-way Bill
Portal. This data is now transferred to GST portal, GSTN, which has developed the
technology backbone for Goods and Services Tax (GST), said.

· With this facility, taxpayer will not be required to enter data in his Form GSTR-1 for all
invoices for which he has generated e-way bill. This will avoid double data entry by
taxpayers. This facility will help taxpayer to ll up their Form GSTR-1 in less time. This will
also avoid any data entry mistakes made while lling details,” GSTN Chief Executive
Prakash Kumar said.

· GSTN said it has divided the taxpayers into three categories to download /import the data
into GSTR-1. In last 18 months, around 90 per cent of taxpayers have reported up to 50 B2B
and B2C large invoices in a month.

· "Since these invoices can be easily seen on the screen, facility to import the data directly into
GSTR-1 has been provided for such taxpayers. These taxpayers can edit the details imported
in GSTR-1, if required, and then le their Form GSTR 1 online after adding other details like
B2C supplies," GSTN said.

· For those having more than 50 invoices but up to 500, have been provided facility to
download the data in a prescribed 'csv' le format, which can then be imported into GSTR 1
ofine tool.

· In case the number of invoices is more than 500, the invoice details can be imported from
return Dashboard on GST portal as a 'zip' le. Tax payer can add more invoices (like those
below Rs 50,000 in value) and upload in ofine tool to prepare his/her return.

· Linking of e-way bill data with GSTR-1 would help taxmen keep a tab on whether the
supplies shown in e-way bill matches the sales shown in the returns form and thereby check
evasion.
https://economictimes.indiatimes.com/news/economy/nance/gstn-develops-system-to-fetch-e-
way-bill-data-into-monthly-sales-returns-to-curb-evasion/articleshow/67756802.cms

4. Proposal to encourage taxmen to le GST proteering complaints on anvil

· The GST ofcials are working out mechanism to prompt taxmen to initiate proteering
complaints, which could be taken up for further investigation by the Directorate General of
Anti-Proteering.

· Currently, only consumers le complaints against businesses for not passing on the benets
of reduction of the rates of Goods and Services Tax (GST) on various products.

15 ICSI-GST Newsletter
 · Under the standard operating procedure (SoP) being worked out by the GST ofcials, the
Central and State Government Tax Ofcerswill be encouraged to take up suo moto the issue
of proteering by businesses, sources said.

· Once the tax ofcersnd that GSTbenets have not been passed on to the consumers, they
will refer the case for further investigation to the Directorate General of Anti-Proteering
(DGAP).

· As per the procedure, the DGAP submits its investigation report to the National Anti-
Proteering Authority (NAA), which decide on the nal quantum of proteering and the
monetary penalty.

· In 2018, the NAA received 80 investigation reports from the DGAP and issued nal orders
in 29 cases. Of this, 9 businesses were found to have not passed on benets of rate cuts of
about Rs 559.90 crore to consumers.

· So far in 2019, the NAA has passed orders in 3 cases.

· Sources said as consumers often are reluctant to le complaints, the GST ofcials and the
NAA are keen to rope in the eld formation for ling complaints of proteering against
businesses.

· Sources further noted that consumers usually lag the expertise to ascertain whether the GST
rate cut benets have been passed on to them by way of reduction in prices. The tax ofcials,
they said, will be able to nd out with greater certainty, whether the tax cut benets have
been passed on to the consumers.

· The proposed mechanism will also act as a deterrent for businesses who show reluctance in
passing on GST benets

· The GST has replaced a tangle of local taxes and entry levies. Since its roll out on July 1, 2017,
GST Councilhas reduced tax rates on a host of items.

· Of the 1,216 commodities being used at present, broadly 183 are taxed at zero rate, 308 at 5
per cent, 178 at 12 per cent, 517 at 18 per cent and 28 items in the 28 per cent slab.

https://economictimes.indiatimes.com/news/economy/policy/proposal-to-encourage-taxmen-to-
file-gst-profiteering-complaints-on-anvil/articleshow/67741096.cms

5. GoM favours paring GST to 5% on residential properties from 12% currently

· "The GoM favoured lowering GST rates on residential houses to 5 per cent without input tax
credit and to 3 per cent for those under affordable housing," an ofcial said.

· Currently, GST is levied at 12 per cent with Input tax credit (ITC) on payments made for
under-construction property or ready-to-move-in ats where completion certicate has not
been issued at the time of sale.\

· The effective pre-GST tax incidence on such housing property was 15-18 per cent.
16 ICSI-GST Newsletter
 · GST, however, is not levied on buyers of real estate properties for which completion
certicate has been issued at the time of sale.

· There have been complaints that builders are not passing on the ITC benet to consumers by
way of reduction in price of the property after the rollout of GST.
h ps://www.business-standard.com/ar cle/p -stories/gom-favours-cu ng-gst-to-5-pc-on-
residen al-proper es-3-pc-on-affordable-housing-119020800716_1.html

6. Jubilant found guilty of not passing GST benet on sale Of Domino's Pizza

· Jubilant FoodWorks Ltd., the operator of Domino's Pizza chain in India, has been found
guilty of not passing on the goods and services tax cut benet of Rs 41.42 crore on sale of
some products and has been directed to deposit the illegal gains with the government.

· The National Anti-Proteering Authority passed the order on an email complaint led by a
customer that Jubilant FoodWorks had not reduced the prices of 'Domino's Stuffed Garlic
Bread' and 'Medium Veg Pizza' despite a cut in GST rate from 18 percent to 5 percent.

· The GST rate on restaurants was cut to 5 percent without input tax credit from 18 percent,
effective Nov. 15, 2017.

· The anti-proteering authority held that Jubilant FoodWorks has not passed on the benet
of reduction in the tax rate to its customers during the period Nov. 15, 2017 to May 31, 2018.

· It asked the company to reduce the prices of its products by way of commensurate reduction
in taxes.

· “The respondent (Jubilant FoodWorks) is directed to refund to the applicant an amount of

Rs 5.65 along with interest at the rate of 18 percent from the date of charging the above
amount from him till its refund. It is further directed to deposit the balance amount of Rs
41,42,97,629.25 in the ratio of 50:50 in the central and the state consumer welfare funds along
with interest at the rate of 18 percent till the same is deposited, within a period of three
months,” the National Anti-Proteering Authority said.

· It also asked the Directorate General of Anti-Proteering, which investigated the case, to
conduct further investigation after May 31, 2018 to check if the benet of tax reduction was
passed to customers.

· “It is clear that the respondent has resorted to proteering by charging more price than what
he could have charged by issuing wrong tax invoices,” the National Anti-Proteering
Authority said.

· The authority has also issued a show cause notice to Jubilant FoodWorks to explain why the
penalty should not be imposed on the company.

· Jubilant FoodWorks operates quick service restaurant from 1,128 outlets across 31 sates and
union territories.
https://www.bloombergquint.com/business/jubilant-found-guilty-of-not-passing-gst-benefit-on-
sale-of-dominos-pizza#gs.D9ziL4wb

17 ICSI-GST Newsletter
7.
One lakh students to be trained in GST accountancy, Govt. to fund fees
· The Government is coming out with Goods and Services Tax(GST) Accountants course and
plans to train about 1 lakh GSTAccountants over the next one to one-and-half year.

· The course fees would be fully funded by the Government of India, ICAI (The Institute of
Cost Accountants of India) president Amit Anand Apte told reporters.

· The objective of the programme is to ensure that compliance as far GSTis concerned increases
especially in the SMEs sector, he said adding the intention was to serve the sector because there
was a gap between availability of trained resources and requirements.

· "GST Accountants programme will be launched very soon and about 1 lakh accountants will
be trained specically on GST compliances.

· We are working out the modalities with the Ministry of Corporate Affairs and the course
would be tentatively launched by February end," Apte said.
https://www.business-standard.com/article/pti-stories/icai-to-train-1-lakh-students-on-gst-
accountants-course-119021400765_1.html

8. GST Rate Cut on Housing Sales

• Affordable Homes: The GST Council has approved lowering the tax rate on affordable
housing to 1 % without ITC from earlier 8% with ITC.

• Under-construction Flats: The GST Council has approved lowering the tax rate on under-
construction ats to 5% without ITC from earlier 12% with ITC.

• The new tax rates will be applicable from April 01, 2019.

• Denition of what constitutes affordable housing will be based on carpet area of ats— a
residential house of carpet area of up to 90 square metre in non-metropolitan cities, and 60
square metre in metropolitan cities having value of up to Rs 45 lakh.

• Metropolitan cities where a house of 60 square metre will come under the affordable housing
segment are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida,
Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai, including Mumbai
Metropolitan Region.

https://www.bloombergquint.com/gst/gst-council-approves-5-tax-rate-for-under-construction-
properties#gs.nNU2ABdi

18 ICSI-GST Newsletter
 GST STATISTICAL UPDATES*

GST Collections
The total gross GST revenue collected in the month of January, 2019 is Rs 1,02,503 crore.

The GST collection stood at Rs. 103,458 crore in April 2018, Rs. 94,016 crore in May 2018, Rs.
95,610 crore in June 2018, Rs. 96,483 crore in July 2018, Rs. 93,960 crore in August 2018, Rs.
94,442 crore in September 2018, Rs. 100,710 crore in October 2018, Rs. 97,637 crore in November
2018 and Rs. 94,726 crore in December 2018 .

In FY 2018-2019, it is for the third time that GST Revenue collection has crossed One Lakh Crore.

* Prepared on the basis of information available at pib.nic.in:

19 ICSI-GST Newsletter
IGST Settlement between Centre and States

The government has settled Rs. 18,344 crore to CGST and Rs. 14,677 crore to SGST from IGST as
regular settlement.

The total revenue earned by Central Government and the State Governments after regular
settlement in the month of January, 2019 is Rs. 36,107 crore for CGST and Rs. 39,503 crore for the
SGST.

Total Revenue earned by Central Government and State Government in the

month of December (after regular IGST Settlement)

Central Govt.: Rs. 36,107 Crore CGST State Govt.: Rs. 39,503 Crore SGST
(17,763 + 18,344 = 36,107) (24,826 + 14,677= 39,503)

Form GSTR-3B led from April' 2018 to January' 2019y' 2019

S. No. For the Month Upto In lacs

1 March, 2018 30th April, 2018 60.47

2 April, 2018 31st May, 2018 62.47

3 May, 2018 30th June, 2018 64.69

4 June, 2018 31st July, 2018 66.00

5 July, 2018 31st August, 2018 67.00

6 August, 2018 30th September, 2018 67.00

7 September, 2018 31st October, 2018 67.45

8 October, 2018 30th November, 2018 69.60

9 November, 2018 31st December, 2018 72.44

10 December, 2018 31st January, 2019 73.30

20 ICSI-GST Newsletter
 COMPLIANCE CALENDER –
FEBRUARY 2019

Turnover exceeding Rs. 1.50 Crores or opted to file

GSTR-1 monthly Return

GSTR-3B Monthly declara on return

Return for a taxpayer registered under the

GSTR-4 composi on levy

GSTR-5 Return for a Non-Resident foreign taxable person

GSTR-6 Return for an Input Service Distributor

GSTR-7 Return for authori es deduc ng tax at source

Details of supplies effected through e-commerce

GSTR-8 operator and the amount of tax collected

*Prepared by Mr. Deepak Kumar, Assistant Director, Dte of PD PP & Studies, ICSI
21 ICSI-GST Newsletter
 GST QUIZ
1 ITC can be claimed by a registered A. Taxable supplies for business
person for_______________. purpose
B. Taxable supplies for non-business
purpose
C. Exempted supplies
D. All of the above

2 ITC can be claimed on goods/services A. Payment to supplier has been made

for personal use if _________________. B. Return being filed
C. All of the above
D. No ITC can be claimed

3 ITC on works contract service can be A. S e r v i c e r e l a t e d t o m o v a b l e

availed only if ___________________. property
B. Service related to immovable
property
C. Engaged in same line of business
D. All of above
Answer: Q1- A, Q2- D, Q3- C, Q4- D, Q5- D

A. Inputs
4 The principal can avail ITC on goods sent
B. Capital Goods
to job-worker which relates to
C. Inputs/ Capital goods directly sent
____________.
to job-worker
D. All of the above

5 Input Tax credit as credited in electronic A. Interest

Credit ledger can be utilized for payment B. Penalty
of__________. C. Fine
D. Taxes

*Prepared by CS. Richa Gupta, Consultant, Dte of PD, PP & Studies, ICSI

22 ICSI-GST Newsletter
23 ICSI-GST Newsletter