GST: Input Tax Credit Restrictions applicable w.e.f. 01st January 2021
A. Rule 36(4) of Central Goods & Services Tax Rules restricting ITC to 5% of total ITC reflecting in GSTR-2A Rule 36(4) of the Central Goods and Services Tax Rules (hereinafter referred as ‘Rules’) has been inserted by notification No.49/2019 Central Tax dated 09.10.2019 with effect from 09.10.2019 under section 164 of the Act, which restricts the credit […]
GST: E-Invoicing now applicable to entities having turnover exceeding Rs. 100 crore in any of the last 3 financial years
As per notification no. 88/2020-Central Tax dt.10th November’20, E-invoicing has been made applicable w.e.f. 01st January 2021 to entities having turnover exceeding Rs. 100 crore in any of the preceding 3 financial years. The financial years for which this limit has to be checked are FY 2017-18, 2018-19 & 2019-20. Such taxpayers will continue to generate their invoices as […]
Quarterly Return Monthly Payment Scheme (QRMPS) under GST
A. Eligibility for the SchemeIn terms of notification No. 84/2020- Central Tax, dated 10.11.2020, a registered person who is required to furnish a return in FORM GSTR-3B, and who has an aggregate turnover of up to 5 crore rupees in the preceding financial year, is eligible for the QRMP Scheme. B. Exercising option for QRMP […]
Is a Trust carrying out “charitable activities” liable to GST registration?
A very common question these days being debated is- Whether a charitable trust registered under section 12AA of the Income Tax Act,1961 as well as under section 80G of the Income Tax Act required to obtain a GST registration? Charitable activities are defined in Notification No 12/2017 – Central Tax (Rates) as below: Charitable activities” means […]
Provisions of TDS on cash withdrawals simplified
Section 194N for deduction of tax at source (TDS) on cash withdrawals exceeding Rs. 1 crore was introduced by the Finance Minister in the Union Budget 2019. This section applies to an aggregate of sums withdrawn from a particular payer in a financial year. The Government has introduced Section 194N in the Union Budget 2019 […]
TDS on Salary- New vs Old Tax Regime
The Finance Act 2020 has brought in a new tax regime for calculating TDS on salary. The employee is required to choose either the old or the new tax regime and intimate the same to the employer. The choice once made cannot be modified during the remaining part of the financial year for the purpose […]
FAQs on new TCS provisions w.e.f. 01st October 2020
Q1. What is the applicability of these new provisions or who is required to comply with these provisions? A: Every seller whose total sales, gross receipts or turnover from his business exceeds INR 10 crores in the immediately preceding Financial Year is liable to collect TCS. Therefore if the turnover of the seller in FY 2019-20 exceeds […]
Clarification on Impact of GST on various types of sales promotion schemes
Treatment of Free Samples and Gifts under GST: Under Section 7(1)(a) of the Central Goods and Services Act, 2017 (‘CGST Act’), supply includes any transaction undertaken for consideration. Therefore, any items supplied without any consideration would not qualify as “supplies” under the GST law, except when the activity falls within the ambit of Schedule I […]
Clarifying difficulties faced in preparing Job-Work challans and related E-Way Bills in GST
What is Job work? Section 2(68) of the CGST Act, 2017 defines job work as ‘any treatment or process undertaken by a person on goods belonging to another registered person’. The one who does the said job would be termed as ‘job worker’. The ownership of the goods does not transfer to the job worker […]