Chief Editor CA Manoj Jain dfgdfgdf dfg
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In this issue, we’ll be covering the Reverse Charge Mechanism under GST. What and how to do in case of Cancellation and Revocation of GST registration. The issue also covers the mandate resetting of invoice number series for the financial year 2019-20.
The features of the issue are B2CS Amendments and Cross-Amendment Reconciliation.
Team IRIS GST
Reverse Charge Mechanism
GST is normally charged by Supplier of Goods/Services from the recipient and pay the total tax amount to the Government. However, in some cases, instead of the Supplier, the Recipient of supply becomes liable to pay GST directly to government. This is in essence Reverse Charge Mechanism.
RCM is applicable in 3 scenarios, which are,
Under RCM, the recipient of goods cannot claim ITC as the supplier has not paid any tax for their sales. Input Tax Credit is available only on the receipt of supplies for which tax has been paid and the supplies were consumed for business purpose.
If a person is not registered under GST, he cannot issue GST compliant invoices. Thus, in such scenarios, the recipient is required to prepare the invoice himself for the purchase made as well as the taxes paid.
Provision Applicable from 01.02.2019:
The CGST(Amendment) Act, 2018 has been put to effect from February 1, 2019, through ‘notification no 02/2019 - Central Tax dated 29th January 2019’.
Cancellation and Revocation of GST Registration
The GST Regime mandates every person/business with an annual turnover of Rs. 40 lakhs* (Rs 10 lakhs for North Eastern states) or more, to register as a normal taxable person. Likewise, a person making inter-state transactions of taxable goods/services is also required to be registered under GST.
In a similar manner, a taxpayer can also apply for the cancellation of GST registration, on the grounds of,
As of now, IRIS Garnet is an offline utility tool and supports .xls and .csv files. IRIS Garnet shall soon be available on cloud to automatically transforming user data into the required format.
GST registration is mandatory for every business exceeding the threshold limit. However, if the annual turnover of the business drops below the given threshold limit, the registered person can opt in for GST cancellation.
The taxpayer has transferred or merged the business with another organization or vice versa). In this case, the transferee (or the new company from amalgamation/ demerger) has to get registration under GST.
The taxpayer has discontinued the business.
There is a change in the constitution of the business
Cancellation by Legal Heirs
If in case, a registered person is deceased, the family or the legal heir of the taxpayer can apply for cancellation of GST registration in FORM GST REG 16
Cancellation by Authorized Officer
An Authorized officer can cancel GST registration of a taxpayer if,
To cancel the registration of a given business, the authorized officer is required to follow the below given process
Revocation of Cancellation under GST
In case of cancellation imposed by an officer, the given taxpayer can apply revocation within 30 days from the date of the cancellation order.
WEST BENGAL, AAR
The applicant intends to produce a feature film, a portion of which is planned to be shot at locations outside India. For this purpose, he is in the process of appointing CDI Virtual Films Inc. (hereinafter the CDIVF) as a Line Producer in Brazil.
CDIVF is supplying namely accommodation for the crew, supply of food, props, and ancillary services like renting of shooting locations etc.
The Applicant argues that the service being that of an intermediary or else of an event manager, it fits the description of the services covered under subsections (3) to (13) of section 13 of the IGST Act, 2017. The place of supply of the service provisioned from CDIVF is, therefore, the location of the supplier in terms of section 13(2) of the IGST Act, 2017
The Applicant is liable to pay IGST on the payments made to the above Line Producer in terms of Sl No. 1 of Notification No. 10/2017 – IGST (Rate) dated 28/06/2017at 18% rate specified under Sl No. 34(vi) of Notification No. 08/2017 – IT (Rate) dated 28/06/2017, as amended from time to time.
Businesses in India will be filing their first ever GST Annual Returns in the month of March 2019. With the due date approaching soon, here are few guide points to help you file your annuals without any issue.
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IRIS Sapphire: New Features
IRIS Sapphire has been equipped with the below-given feature to ensure your GST Compliance go without any hassles.
B2CS and Advances Amendments
With this feature, the user will be able to make amendments for B2CS invoices and Advances sections in GSTR 1 directly through IRIS Sapphire.
Here is how you can save amendments in B2CS and Advance sections in GSTR 1 with IRIS Sapphire:
Cross Amendment Reconciliation
With this feature, the user would be able to reconcile the data between CDN and CDNA and B2B and B2BA, thereby reducing the chances of any discrepancy in their returns.
Here is how you can reconcile data across Amended invoice:
IRIS Sapphire will reconcile your data with supplier’s amended data and display the summary in the Results tab.
To know more, connect with our support team at firstname.lastname@example.org
Resetting invoice numbers
Rule 46 (b) of the CGST Rules 2017 suggests that any tax invoice should have a 16 character alpha-numeric invoice number unique for a financial year. This draws attention, now that we are entering a new Financial Year – 2019-2020.
The GSTN has issued an advisory to this regard –
“Attention of all taxpayers is invited to Rule 46 (b) of the CGST Rules 2017, which specifies that the tax invoice issued by a registered person should have a consecutive serial number, not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters - hyphen or dash and slash symbolized as “-” and “/” respectively, and any combination thereof, unique for a financial year.
This rule implies that with the start of new financial year 2019-20 (w.e.f. 01/04/2019), a new invoice series, unique for the financial year is to be started by the GST taxpayers. Similar provision is there in Rule 49 of the CGST Rules 2017, in respect of issue of Bill of Supply by registered taxpayers availing Composition Scheme or supplying exempted goods or services or both.
If the provisions of Rule 46 or Rule 49 are not adhered to, apart from being a compliance issue, taxpayers may face problem while generating E-Way Bill on EWB system, furnishing Form GSTR 1 or for applying for refund on GST Portal. It is therefore necessary that suitable modification may be made by the taxpayers in their invoices or bill of supply, to avoid any inconvenience in the future.
Rule 46 of CGST Rules 2017, Chapter VI suggests that a tax invoice shall be issued by the registered person containing the following particulars, namely,-
GSTR 4 - 18th April
GSTR 3B – 20th April
GSTR 1 – 30th April (Quarterly)
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