GST - FAQ

GST – FAQ

GST – FAQ

GST – COMPLAINT OF WRONG PAYMENT

Have you been charged GST wrongly? Here's how to report tax fraud?

We're four odd months into the new GST regime, and already there are scores of people trying to trick the system, and clueless consumers. According to GST Helpline India, the most common types of fraud currently are collecting tax on products/services that are GST-free, charging GST over and above the defined rate and fraudsters posing as GST officers. For instance, consumers have complained about shopkeepers and dealers charging additional rates in the name of GST on daily need items like mineral water, grains, milk, vegetables, eggs that are on the exemption list. Then, some businesses are illegally levying GST in addition to the already applied VAT tax on their service bills. Earlier this month, the GST Council slashed the GST rate on restaurants to a uniform 5 per cent from over 12 per cent earlier, but many restaurants reportedly continue to overcharge diners. And now the government is reportedly coming down hard on FMCG companies that have failed to pass on benefits of lower taxation to consumers.

So if you have been a victim of any of the above, what should you do? To begin with, shake off the average Indian predisposition to stay mum  and suffer in silence. There are various, simple options to raise a complaint that you can choose from.

Log into the official portal
Simply visit http://cbec-gst.gov.in, click on CBEC mitra Helpdesk in the bottom right corner of the page and then choose "Raise Web Ticket". On the new window that opens, click on the option to "Report Tax Fraud/Avoidance" and fill in the details required. In the "report" box, make your complaint and don't forget details such as the name and address of the shop/restaurant/organisation that cheated you.

On receiving your online complaint, a representative will first contact the restaurant to check the details with them and then revert to you with the next steps if not a redressed.
Send an e-mail
A slower alternative is to email your grievance to either cbecmitra.helpdesk@icegate.gov.in.
Although you don't have to attach bills along with the mail, media reports suggest it's better to keep the pre-GST bill handy. 
Tweet your angst
You can also flag your complaints on the official Twitter handles of GST (askGST_Goi) and the Finance Ministry (@FinMinIndia)
Although the CBEC-GST website mentions a toll-free number (18001200232), a customer service agent told us that for fraud complaints we have to dial 01126174191, but no there was no response there. So your best option is to just make an online complaint.

Also, since prevention is better than cure, you can install the government's GST Rate Finder app on your phone as a handy reference to avoid getting conned.

GSTR – 4 OFFLINE TOOL

GST – C FORM PURCHASES

Clarification Regarding the Inter-State Purchases Against C Form for Period Starting From 1st July 2017

Maharashtra sales tax department vide Trade circular no. 47T of 2017 dated 17th November,2017 has issued clarification regarding the inter-State purchases against C form for period starting from 1st July,2017

Background

The definition of “goods “in Central Sales Tax Act ,1956 in section 2(d) up to 30^th June ,2017 was as under: –

“(d) “Goods” includes all materials, articles, commodities, and all other kinds of movable property, but does not include newspapers, actionable claims, stocks, shares and securities.

In view of the constitution (one Hundred and first amendment) Act, 2016 dated 8^th September ,2016 the Central Government has amended the Central Sales Tax Act vide Taxation Laws (Amendment) Act, 2017 (18 of 2017) dated the 4^th May 2017

By virtue of this amendment the aforesaid definition of “goods “has been amended. The amended definition is reproduced as under: –

(d) “Goods “means-

Petroleum crude

High speed diesel;

Motor spirit

Natural gas;

Aviation turbine fuel; and

Alcoholic liquor for human consumption.

The Ministry of Finance, Department of Revenue, State Tax Division, New Delhi issued office memorandum dated the 7^th November, 2017 to clarify the inter-State purchases against C form for period starting from 1^st July ,2017. The clarification is reproduced as under: –

“The undersigned is directed to say that opinion of department of Legal Affairs, ministry of Law was solicited on the issue “Whether the definition of “goods “the phrase “manufacture or processing of goods” in section 8(3)(b) of the Central Sales Tax Act would be as per the definition provided under section 2(d) of the Central Sales Tax Act or that the word “goods ”when it appears in the phrase “manufacture or processing of goods” means any goods i.e. “goods” which fall with in GST as well as “goods” which do not come under the ambit of GST.

Department of Legal Affairs, Ministry of Law has confirmed that the term “goods “has been specifically defined under the Central sales Tax Act, 1956 and prima facie the term “Goods “referred to in section 8(3)(b) of the Central Sales Tax Act, 1956 will have same meaning as defined and amended under section 2(d) of the Central Sales Tax Act ,1956 vide tax laws Amendment Act,2017. However, it does not affect the provisions of section 8(3)(b) of CST Act relating to telecommunication network or mining or generation or distribution of electricity or any other form of power.”

In view of this clarification the following instructions as being issued

The clarification is applicable for the declarations in Form ‘C ’to be issued for the period from 1^st July onwards.

Form ‘C’ shall be used for the inter-State purchases of the “goods’’(as amended) only subject to purposes enumerated in (3) below: –

Declaration in Form ‘C’ for the periods starting from 1^st July 2017 shall be issued only if such goods are purchased for the purposes enumerated in the office memorandum issued by ministry of Finance, Department of Revenue, State Tax Division, New Delhi dated 7^thNovember 2017 such as:

Resale of above six goods;

Manufacturing of above six goods;

Use of above six commodities in the telecommunication network or mining or generation or distribution of electricity or any other form of power.

GST – SPECIAL AUDIT

Introduction

GST is a trust based taxation regime wherein the assessee is required to self-assess his returns and determine tax liability without any intervention by the tax official. Therefore a tax regime that relies on self-assessment has to put in place a robust audit mechanism to measure and ensure compliance of the provisions of law by the taxable person.

“Audit” has been defined in section 2(13) of the CGST Act, 2017 and it means the examination of records, returns and other documents maintained or furnished by the registered person under the GST Acts or the rules made there under or under any other law for the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provisions of the GST Acts or the rules made thereunder.

Types of Audit

GST envisages three types of Audit. The first audit is by a chartered accountant or a cost accountant. Every registered person whose aggregate turnover during a financial year exceeds two crore rupees has to get his accounts audited by a chartered accountant or a cost accountant and furnish a copy of audited annual accounts and a reconciliation statement, duly certified, in FORM GSTR-9C.

In the second type which is the normal audit, the Commissioner or any officer authorised by him, can undertake audit of any registered person for such period, at such frequency and in such manner as may be prescribed.

The third type of audit is called the Special Audit. In Special Audit the registered person can be directed to get his records including books of account examined and audited by a chartered accountant or a cost accountant during any stage of scrutiny, inquiry, investigation or any other proceedings; depending upon the complexity of the case.

Procedure

• During the scrutiny, inquiry, investigation or any other proceedings of a registered person, the Assistant Commissioner or any officer senior to him, having regard to the nature and complexity of the case and the interest of revenue, might be of the opinion that the value has not been correctly declared or the credit availed is not within the normal limits.

• In such cases, with the prior approval of the Commissioner, the Assistant Commissioner or any officer senior to him can direct the registered person in FORM GST ADT-03 to get his records including books of account examined and audited by a specified chartered accountant or a cost accountant. The chartered accountant or a cost accountant will be nominated by the Commissioner.

• The chartered accountant or cost accountant so nominated has to submit a report of such audit within the period of ninety days, duly signed and certified by him to the Assistant Commissioner.

• On an application made by the registered person or the chartered accountant or cost accountant or for any material and sufficient reason, the Assistant Commissioner can extend the said period by a
further period of ninety days.

• The provisions of special audit shall have effect even if the accounts of the registered person have been audited under any other provisions of the GST Act or any other law for the time being in force.

• The registered person shall be given an opportunity of being heard in respect of any material gathered on the basis of special audit and which is proposed to be used in any proceedings against him under this Act or the rules made thereunder.

• The expenses of the examination and audit of records, including the remuneration of such chartered accountant or cost accountant, shall be determined and paid by the Commissioner.

• On conclusion of the special audit, the registered person shall be informed of the findings of the special audit in FORM GST ADT-04.

• Where the special audit results in detection of tax not paid or short paid or erroneously refunded, or input tax credit wrongly availed or utilised, the process of demand and recovery will be initiated
against the registered person.

Conclusion

Special audit provides a lawful and legal way for the GST officers to take the assistance of a chartered accountant or cost accountant to determine tax liabilities in complex cases. The professional expertise of a chartered accountant or cost accountant will be of great significance in ensuring that the interest of revenue is safeguarded at all times.