Tax Alerts

New GST returns will replace the existing GSTR-1, GSTR-3B and GSTR-4. Quarterly and monthly GST returns have been proposed. Also, two pre-customised quarterly returns, SAHAJ for filing B2C sales only and SUGAM for both B2C and B2B sales, have been prescribed. The proposed system allows small taxpayers with turnover of up to ₹5 crore (earlier ₹1.5 crore) to opt to file the GST returns every quarter. The others have to file monthly returns. All the sales details declared by a seller will be auto-populated into the returns. Further, for the first time amendment returns have been introduced under GST.

Sometimes, taxpayers approach assessing officers requesting for issuing nil or lower tax deduction certificates. This certificate can be furnished by the taxpayers to their deductors, who must stick to the rate prescribed in the certificate. This certificate is supposed to be issued within 30 days from the date of filing of an application . However, instances of inordinate delay have been brought to the notice of the Central Board of Direct Taxes (CBDT). For the benefit of taxpayers, the CBDT has warned AOs to stick to prescribed deadlines , failing which such delay would be viewed adversely.

All input service distributors who intend to distribute the input tax credit to their respective branches have to file this detail in GSTR-6 every month. The filing time for July 2017-August 2018 period has now been extended to September 30, 2018. Being the first year, users of GSTR-6 faced undue hardships on the GST portal while filing this return. Previously, this due date was extended twice once to 31st December 2018 and later to 31st July 2018. Banks, financial institutions and corporate offices of large companies that intend to distribute credit of certain expenses accounted by it to its branch offices will benefit.

The Ministry of Corporate Affairs offers a web facility for reserving a name for a new company or for changing an existing name. The web service helps you verify whether the name you've chosen is unique. Before the introduction of the RUN web-form, all applications pertaining to the company name were to be made in the Form INC-1. The names were to be accompanied by a minimum of two director identification numbers and one digital signature. Now, a company name can be reserved easily without a digital signature. It is important to have an MCA account before you access this service.

GST council has announced cash-back of 20 per cent of the GST borne on digital payments.This cash-back is subject to a cap of ₹100. This is to be introduced on a pilot basis in few States that are willing to sign up. This move will promoteuse of digital payment means like BHIM UPI app, USSD(Mobile-banking), Aadhaar based UPI or RuPay cards while making purchases. Further, this is one step closer to encouraging businesses to be more accountable for GST compliances. This incentive is not available on purchases made from composition dealer.Items that are exempt, petrol and alcohol, are outside the scope of this proposed scheme.

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