Nandhakumar & Sundaran
Chartered Accountants, Auditors

By: Nandhakumar & Sundaran | February 18, 2019

An Advanced Authority Ruling (AAR) has upheld that merger of a proprietorship firm as a going-concern with a company is not a supply and hence it does not involve payment of Goods and Services Tax (GST) on the fixed or current assets. Also, un-utilised ITC (Input Tax Credit) balance of the firm can be transferred to the company which is taking over, the ruling said. The applicant is BM Industries, a proprietorship firm based in Yamunanagar, Haryana, engaged in manufacture and sales of aluminium profiles.

Source: Thehindubusinessline

Category: GST 

Tags: GST 

By: Nandhakumar & Sundaran | February 18, 2019

CBIC has reiterated/ clarified that registered persons (especially in the banking, insurance, telecom, etc. sectors) are required to indicate the place of supply along with the name of the State in the Tax Invoice  in the case of an inter state supply of goods or services to comply with CGST Rule 46(n) and to avoid penal action under sections 122 or 125 of the CGST Act, 2017, vide Circular No. 90/09/2019 GST dt. 18 Feb. 2019, as under:

Compliance of rule 46(n) of the CGST Rules, 2017 while issuing invoices in case of inter- State supply.

1. A registered person supplying taxable goods or services or both is required to issue a tax invoice as per the provisions contained in section 31 of the Central Goods and Servi...

Category: GST 

Tags: GST 

By: Nandhakumar & Sundaran | January 11, 2019

The GST Council in its 32nd Meeting held under the Chairmanship of the Union Minister of Finance & Corporate Affairs, Shri Arun Jaitley in New Delhi. Below is press release of Major Decisions taken by the GST Council in its 32nd Meeting.

Major Decisions taken by the GST Council in its 32nd Meeting held today under the Chairmanship of the Union Minister of Finance & Corporate Affairs, Shri Arun Jaitley 

Press Release - Posted On: 10 JAN 2019 6:18PM by PIB Delhi

The GST Council in its 32nd Meeting held today under the Chairmanship of the Union Minister of Finance & Corporate Affairs, Shri Arun Jaitley in New Delhi took the following major decisions to give relief to MSME (including Small Traders) among o...

Category: GST 

Tags: Updates 

By: Nandhakumar & Sundaran | December 10, 2018

CBIC has issued a Press Release to clarify certain issues relating to Applicable Output GST Rates, Input Tax Credit (ITC) and Effective Tax Rate on Construction of Property, like complex, building, flat, etc. under affordable housing or other segments, along with comparative tax rates applicable during pre-GST period.

Further, Govt. has reiterated that GST is not applicable on sale of ready to move-in flats where completion certificate has already been issued by the competent authority, i.e. GST is applicable only on sale of under-construction property or ready to move-in flats but where completion certificate is yet to be issued at the point of time of sale.

CBIC Press Release dt. 8 Dec. 2018

1. It is brought to the notice of buyers of constructed property that there is no GST on sale of complex/ building and ready to move-in flats where sale takes place after issue of completion certificate by the competent authority. GST is applicable on sale of under construction property or ready to move-in flats where completion certificate has not been issued at the time of sale.

2. Effective rate of tax and credit available to the builders for payment of tax are summarized in the table for pre-GST and GST regime.

PeriodOutput Tax RateInput Tax Credit detailsEffective Rate of Tax
Pre-GSTService Tax: 4.5%; VAT: 1% to 5%(composition scheme)Central Excise on most of the construction materials: 12.5%; VAT: 12.5 to 14.5%; Entry Tax: YesNo input tax credit (ITC) of VAT and Central Excise duty paid on inputs was available to the builder for payment of output tax, hence it got embedded in the value of properties. Considering that goods constitute approximately 45% of the value, embedded ITC was approximately 10- 12%.Effective pre-GST tax incidence: 15- 18%
GSTAffordable housing segment: 8%; Other segment: 12% after 1/3rd abatement of value of landMajor construction materials, capital goods and input services used for construction of flats, houses, etc. attract GST of 18% or more.ITC available and weighted average of ITC incidence is approximately 8 to 10%.Effective GST incidence, for affordable segment and for other segment has not increased as compared to pre-GST regime.

3. Housing projects in the affordable segment such as Jawaharlal Nehru National Urban Renewal Mission, Rajiv Awas Yojana, Pradhan Mantri Awas Yojana or any other housing scheme of State Government etc., attract GST of 8%. For such projects, after offsetting input tax credit, the builder or developer in most cases will not be required to pay GST in cash as the builder would have enough ITC in his books of account to pay the output GST.

4. For projects other than affordable segment, it is expected that the cost of the complex/ buildings/ flats would not have gone up due to implementation of GST. Builders are also required to pass on the benefits of lower tax burden to the buyers of property by way of reduced prices/ installments, where effective tax rate has been down.

Category: GST 

Tags: News 

By: Nandhakumar & Sundaran | December 08, 2018

CBIC has extended the deadline/ due date upto 31 March 2019 for filing of GST Annual Return in Form GSTR-9 (normal dealers)/ GSTR-9A (composition dealers) and GST Audit Report in Form GSTR-9C  (Audit Certificate/ Reconciliation Statement in the case of Taxpayers having turnover above Rs. 2 crores).

CBIC Press Release dt. 7 Dec. 2018

Extension of due date for filing FORM GSTR-9, FORM GSTR-9A and FORM GSTR-9C 

1. FORM GSTR-9 and FORM GSTR-9A have been notified vide notification No. 39/2018-Central Tax, dated 04.09.2018 while FORM GSTR-9C has been notified vide notification no. 49/2018-Central Tax, dated 13.09.2018 as part of the CGST Rules.

2. The competent authority has decided to extend the due date for filing FORM GSTR-9, FORM GSTR-9...

Category: GST 

Tags: News