Thursday, 17 August 2017

Extension in due date for filing GSTR 3B | PIB issued and Notification issued by Odisha Government

This is to update that Ministry of Finance vide a Press Release dated August 17, 2017 has clarified regarding the availability of Transitional Input Tax Credit (ITC) for making payment of GST for the month of July 2017.  Vide the said Press Release, it has been clarified that :

       The taxpayers who are willing to avail transitional ITC are required to compute their tax liability after estimating the amount of transitional credit.  The Press Release though clarifies that payment of tax liability post adjustment of such estimated transition credit is required to be made by August 20, 2017.

       With the above, the Government has granted additional 8 day time i.e. August 28, 2017, to submit Form TRAN- I and Form 3B respectively.  It has been clarified that in case of a shortfall in the amount already paid vis-à-vis the amount payable on submission of Form 3B, the tax payer will be liable to discharge the balance tax along with interest @ 18% for the period between August 21, 2107 till the payment of such differential  amount.

       Further no such extension will apply to taxpayers not opting for the above (i.e. transitional credit) and the due date will continue to be August 20, 2017.

With the above, it can also be inferred that transitional ITC is only available once the prescribed ITC transition form is filed and no such credit appears to be available unless such compliance is adhered to.  We have attached herewith a copy of the Press Release for your reference.  The official Notification from the Central Government in this regard is yet to be issued. 

However, in line with the above press release, the State Government of Odisha vide Notification No. 12520 dated August 17, 2017 has announced extension for filing of GSTR 3B returns for a situation where the assessee is seeking to claim transition credits. While this had currently been issued by Odisha Government, we are hopeful that other states will also come up with similar notifications. Further, West Bengal and Assam have also issued similar notifications in the last couple of hours

Step by step guide on how to file GST Return-3B

GSTR-3B filling is under progress and the last date for GSTR-3B filling is 20 August 2017. Please find below the step by step guide on how to file GST Return-3B.  

Important Income Tax Case law update

K Raveendranathan Nair vs. CIT (Supreme Court)

S. 260A: Right of appeal is not a matter of procedure. It is a substantive right. This right gets vested in the litigants at the commencement of the lis and such a vested right cannot be taken away or cannot be impaired or imperilled or made more stringent or onerous by any subsequent legislation unless the subsequent legislation said so either expressly or by necessary intendment. An intention to interfere with or impair or imperil a vested right cannot be presumed unless such intention be clearly manifested by express words or by necessary implication.

FAQs on Rates inter alia explain 'Retail Sale Pricing', GST on Export Incentive Licenses

FAQs on GST Rates inter alia clarify that prefabricated buildings, including portable and mobile toilets, fall under heading 9406 and attract 18% GST, while battery for mobile handsets shall fall under heading 8506 and attract 28% GST; ‘Retail Sale Price’ (RSP) declared on the package of a commodity is inclusive of all taxes including GST, but GST will be payable on the transaction value; In respect of readymade garments, Govt. clarifies that ‘sale value’ of Rs. 1000 refers to transaction value, not RSP, and GST at 5% or 12% will apply accordingly; Export Incentive Licenses like MEIS and SEIS fall under heading 4907 and attract 12% GST; Sarees, Dhotis and Rakhis will be classified and taxed as per their constituent materials, states Govt. while clarifying the rates for various commodities like chocolate ‘sandesh’ Bengali misti, Isabgul, dried coconut, tobacco leaves, khari and hard butters, khoya / mawa, tamarind, cotton seed oil cake, wet dates and pet food : FAQs on Rates  

HC : Sets-aside ITAT order; Denies ‘Peak credit’ benefit as deposits remain unexplained

Delhi HC sets aside ITAT order, rejects application of ‘peak credit' principle in respect of unexplained source of deposit and corresponding outgo; While assessee-individual admitted to being an accommodation entry provider, ITAT had for relevant AY 1995-96, restricted the additions u/s. 68 to extent of peak credit worked out by assessee, by observing that the additions could not be made twice, once on the basis of cash deposits and again on the basis of cheque transactions; HC lays down the  legal position in respect of an accommodation entry provider seeking the benefit of 'peak credit', rules that “if the Assessee as a self-confessed accommodation entry provider wanted to avail the benefit of the 'peak credit', he had to make a clean breast of all the facts within his knowledge concerning the credit entries in the accounts. He has to explain with sufficient detail the source of all the deposits in his accounts as well as the corresponding destination of all payments from the accounts.”; As assessee was unable to explain the source of all deposits in his accounts or the ultimate destination of all outgoes therefrom, HC refuses to extend benefit of ‘peak credit’ while relying on Allahabad HC ruling in Bhaiyalal Shyam Bihari; Restoring the assessment order, HC remarks that “ITAT went merely on the basis of accountancy, overlooking the settled legal position that peak credit is not applicable where deposits remain unexplained u/s. 68”:HC 

Govt. extends GSTR-3B/Form TRANS 1 filing deadline till Aug. 28

Finance Ministry issues press release, announces extension of deadline till August 28, for submission of GSTR-3B & Form TRANS 1; Govt. acknowledges concerns regarding form for claiming transitional input tax credit not being available on the GSTN website, says the form will be available from August 21st; Extension of deadline only for those taxpayers who want to claim transitional credit, however with caveat that they have to make full settlement of the tax liability after adjusting the transitional input tax credit before August 20th: PIB Release