Information of GST Act and Rules, GST latest news, GST useful procedure and general matters.
Saturday, 2 December 2017
Thursday, 30 November 2017
GST - INSURANCE PREMIUM AND BANK CHARGES
Impact
of GST on Insurance
The old tax
rate on basic insurance services was 15 per cent, comprising of 14% service
tax, .5% Swachh Bharat Cess, and .5% Krishi Kalyan Cess. After GST, the tax rate will be levied at the standard rate of 18% on all types of
insurance policies, including life insurance, health insurance
and general insurance. In case of
normal insurance plans such as term insurance and health insurance, the
previous tax rate of 15% has been replaced by the GST rate of 18%, which will
certainly increase the premium cost making it costlier for people to buy
insurances.
For ULIPs
(Life insurance) policies, where insurance is usually integrated with some kind
of investment, the increased GST is applicable only to the insurance amount and
not on the investment part. For example, if your gross premium amount is
Rs.1000, of which Rs. 400 is the investment and Rs. 600 is the insurance
premium; the 18% GST would be levied only on Rs. 600. The policies
associated with single premium annuity are liable to pay 10% of the premium
amount as GST. For endowment
policies, GST will be levied at the standard rate of 18% on 25 per cent of the
first year premium and 12.5 per cent on the subsequent premium of following
years. So, if your endowment policy has an annual premium of Rs. 1000, then 18%
GST will be applicable on Rs. 250 (25% of the premium amount) for the first
year, and the same GST rate on Rs. 125 (12.5%) for subsequent premiums. In short, the
first year premium will be liable for 4.50% tax as opposed to existing 3.75%
rate, while subsequent annual premiums will be taxed at 2.25%. If a life
insurance policy is only for risk cover and doesn’t involve any savings or
investment, the entire premium is liable for 18% GST. Other
insurance services such as fire insurance, theft insurance, vehicle insurance,
marine insurance, etc are also under the same 18% GST rate.As for the
impacts of GST on insurance policies, the premium
amounts for policyholders have increased due to the increased tax rate. This is
applicable to both existing and new taxpayers. So, they will now have to pay
tax at 18% rate on all their life cover premiums. Insurers,
however, are not affected very much by the introduction of GST as they continue
to pass their tax liabilities on to the consumers. Corporate
policyholders having general insurance are eligible for input tax credit on the
tax paid on insurance premiums. Life and health insurance holders, however, are
not liable to claim ITC on premiums for insurances being used for personal
purposes. This is also true for corporate policyholders having life/health insurance
for their workers. Note: Life insurance schemes by Government are exempt from GST. Impact
of GST on Bank Service Charges The old
service tax rate of 15% on banking services is now replaced with 18% GST. As a
result, banking has become costlier for the customers.The old tax
rate of 15% on interbank ATM transactions and branch transactions has been
replaced by 18% GST. All other
banking services like GST on bank charges that
were previously taxable under service tax are now taxable under the revised
rate of GST. Banks and finance companies are allowed to pass on the tax
liabilities to their customers. Intra-branch
services will also be taxable under GST at the same standard rate, however, ITC
on bank charges under GST will be available on the same. The immediate impact of GST on banks is in the form of an increase in administrative and
compliance work, which leads to increase in operational costs of these banking
organizations. Business/corporate consumers are able to claim ITC on the taxes
paid by them for official (business-related) banking services. To conclude,
GST has increased the operating costs for banking and financial organizations.
Policyholders are now paying a higher premium on all types of insurances.
GST - REFUND OF EXCESS BALANCE
How To Get Refund Of Excess Balance In Electronic Cash
Ledger Or Wrong Deposited Tax
Have you deposited tax in wrong head ?
Do you have Excess balance in your cash Ledger?
If yes, now you can get the refund. The most awaited
service has been started on GST Portal.
step by step guide to claim refund
1.Login to GST Portal with the help of user name &
Password
2. Click On Service on Dashboard
3. Click on Refunds and select application of Refund
4. Select the refund Type “Refund
of Excess Balance in Electronic Cash Ledger” and click in
create
5. Now Fill the required column and submit the form.
GST - DEBIT NOTE, KYC
Introduction
A supplier of goods or services or both is mandatorily
required to issue a tax invoice. However, during the course of trade or
commerce, after the invoice has been issued there could be situations like:
• The supplier has erroneously declared a value which is
less than the actual value of the goods or services or both provided.
• The supplier has erroneously declared a lower tax rate
than what is applicable for the kind of the goods or services or both supplied.
• The quantity received by the recipient is more than
what has been declared in the tax invoice.
• Any other similar reasons.
In order to regularize these kinds of situations the
supplier is allowed to issue what is called as debit note to the recipient. The
debit note also includes supplementary invoice.
Meaning
When a tax invoice has been issued for supply of any
goods or services or both and the taxable value or tax charged in that tax
invoice is found to be less than the taxable value or tax payable in respect of
such supply, the registered person, who has supplied such goods or services or
both, shall issue to the recipient a debit note containing the prescribed
particulars.
Format
There is no prescribed format but debit note issued by a
supplier must contain the following particulars, namely:
(a) name, address and Goods and Services Tax
Identification Number of the supplier;
(b) nature of the document;
(c) 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 symbolised as “-” and “/” respectively, and any combination thereof, unique for a financial year;
characters hyphen or dash and slash symbolised as “-” and “/” respectively, and any combination thereof, unique for a financial year;
(d) date of issue;
(e) name, address and Goods and Services Tax
Identification Number or Unique Identity Number, if registered, of the
recipient;
(f) name and address of the recipient and the address of
delivery, along with the name of State and its code, if such recipient is
un-registered;
(g) serial number and date of the corresponding tax
invoice or, as the case may be, bill of supply;
(h) value of taxable supply of goods or services, rate of
tax and the amount of the tax debited to the recipient; and
(i) signature or digital signature of the supplier or
his authorized representative
his authorized representative
Tax liability
The issuance of a debit note or a supplementary invoice
creates additional tax liability. The treatment of a debit note or a
supplementary invoice would be identical to the treatment of a tax invoice as
far as returns and payment are concerned.
Records
The records of the debit note or a supplementary invoice
have to be retained until the expiry of seventy two months from the due date of
furnishing of annual return for the year pertaining to such accounts and
records. Where such accounts and documents are maintained manually, it should
be kept at every related place of business mentioned in the certificate of
registration and shall be accessible at every related place of business where
such accounts and documents are maintained digitally.
Conclusion
The debit note or a supplementary invoice is therefore a
convenient and legal method by which the value of the goods or services in the
original tax invoice can be enhanced. The issuance of the debit note will
easily allow the supplier to pay his enhanced tax liability in his returns
without requiring him to undertake any other tedious process.
Circular No. /2017-Customs F.No.450/178/2015-CUS-
IV Subject: -
Know Your Customer (KYC) norms-regarding Kind reference
is invited to Board’s Circular Nos. 07/2015-Customs dated 12.02.2015 and
13/2016-Customs dated 26.04.2016 on the subject cited above.
2.
In line with the KYC norms stipulated by the Reserve
Bank of India, Board had decided that two documents, one for proof of identity
and other for proof of address are required for KYC verification. However, in
case of individuals, if any one document listed in the Board Circular No.
9/2010-Cus dated 08.04.2010 contains both proof of identity and proof of addresses,
the same would suffice for the purposes of KYC verification. Aadhaar card had
also been recognised as one of the document for individuals. Board had further
relaxed KYC norms for individual, in view of the problem being faced by
individuals who possess proof of identity in the form of prescribed document
but their address of present stay is not mentioned in the proof of identity.
Moreover, many a times, it is difficult for individuals to produce
present/current proof of address. For such cases, it was decided that proof of
identity collected by the representative of the authorized courier at the time
of delivery of such consignments to an individual consignee along with
recording of address of the place where such consignments would be delivered to
the consignee by the authorized courier companies, would suffice for KYC
verification [Circular No.
13/2016-Customs dated 26.04.2016 refers]. In order to further simplify and
clarify the procedure in this regard, Board has decided that in case of import
or export through courier by an individual, Aadhaar card or passport or PAN or
Driving License or Voter ID card shall suffice for KYC verification however
recording of address of place of delivery, as mentioned above, would continue.
Board
has also decided to simplify the norms for KYC verification in the light of
introduction of Goods & Services Tax (GST) and in view of the emphasis of
government on adoption of a unified identifier. Accordingly, in modification of
the earlier instructions, in the case of import or export through courier by a
firm, company, institution, registered under the GST laws, GSTIN shall suffice
as the document for the purpose of KYC verification. In cases where the firm,
company or institution is not registered under GST laws, Unique identification
Number (UIN) or PAN shall serve as the document for KYC verification.
Wednesday, 29 November 2017
GST - LATEST
Q.
Is that it is compulsory to file GSTR-1A even there is no corrections and where
GSTR 1 already filled?
A.
GSTR-1A is auto-populated from GSTR-2A. Procedure for filing of GSTR-2 and 3
has been kept in abeyance for the time being
Q.
Can a restaurant is allowed to charge GST on Delivery charges and Container
charges for home delivery orders?
A.
GST is chargeable on entire consideration payable for any supply.
Q.
If we sell a goods and provide a service, how can we generate invoice if rate
are different?
A.
You may either issue a separate invoice or a single invoice showing both
supplies.
Subscribe to:
Posts (Atom)