जीएसटी करावरील व्याजाबाबतचा वाद

COMMON MISTAKES IN GST COMPLIANCE

It’s been more than one and half year of GST implementation however, GST has not yet started its settling phase. This is mainly because of two reasons; first, there are continuous amendments and second, non-clarity / confusion regarding applicability of legal provisions.  It is observed that due to non-clarity of many legal concepts, companies are making certain errors / mistakes or non-compliance which needs to be rectified before starting GST audit. Certain common mistakes in GST compliance, few of them are summarized below. The intention is to highlight common mistakes and precautions to be taken for GST audit so that efforts can be taken to solve / rectify them before starting GST audit and save cost of interest and penalty.
INPUT TAX CREDIT (ITC)
1	ITC availed without tracking date of payment – condition of payment within 180 days
2	Availment of 100% credit on pre-paid expenses. 100% ITC will not be available in the same month since condition of receipt of service is not satisfied
3	Non-reversal of ITC in case of free sample/write off / gift /personal consumption
4	Non-availment of ITC on banking transactions due to non-receipt of invoices OR ITC is availed on back statement but not on bank invoice
5	Non-payment of GST / non-reversal of ITC in case of receipt of insurance claim
6	Non-availment of ITC on air tickets since air travel agent provides his GSTIN instead of company. OR in other cases, air travel agent provides GSTIN of the company however, ITC is not availed due to non-availability of tax invoice of airline company
7	Non-availment of ITC on repairs / renovation of office or factory when such expenses are not capitalised
8	Availment of ITC on canteen / employee transport service from September 2018 without issue of Notification to give effect. ITC on such services will be available w.e.f. 1st February 2019
9	ITC of CGST and SGST of one State is claimed in other State – e.g. hotel accommodation
10	Availment of ITC on RCM in the subsequent month instead of in the same month
11	Carry forward of credit in TRAN-1 which was not reported in returns filed under excise, service tax and VAT but availed in books
DOCUMENTATION / RECORD
1	Non-issue of Tax Invoice (self-invoice) in case of RCM credit
2	Non-fixing / display of GST registration Certificate / GSTIN at the entrance of the office / factory
3	Non-issue of Receipt Voucher / Payment Voucher / Refund Voucher
4	Non-filing of ITC-04 related to job work transactions
5	Non-maintenance of ITC Register in a proper manner. Mainly not updating GSTIN of all suppliers which is essential at the time of reconciliation of ITC with GSTR-2A
6	Raising of Debit Note first in case of purchase return rather than supplier raising Credit Note
7	Issuing of separate delivery challan by job worker for returning of processed goods to the principal manufacturer
GST RETURNS
1	Many suppliers file GSTR-3B but not GSTR-1 or vice versa
2	Wrongly reporting outward supply liability under RCM or vice versa
3	Non-reconciliation of GSTR-1 and GSTR-3B for the same month

जीएसटी रिटर्न मधील सुधारणा

DECISIONS IN 32nd GST COUNCIL

RECOMMENDATIONS MADE BY THE GST COUNCIL ON 22.12.18

Recommendations made by the GST Council on 22.12.18
Miscellaneous
1	Exemption from GST on supply of gold by Nominated Agencies to exporters of article of gold Jewellery.
2	Exemption from GST on proceeds received by Government from auction of gifts received by President, Prime Minister, Governor or Chief Minister of a State and public servants, the proceeds of which is used for public or charitable cause.
3	Exemption from IGST/ Compensation cess on vehicles imported for temporary purposes under the Customs Convention on the Temporary importation of Private Road Vehicles (carnet de passages-en-douane).
4	Rate of 5% /18% to be applied based on transaction value of footwear
5	Uniform GST rate of 12% on Flexible Intermediate Bulk Container (FIBC) from existing 5%/12% (depending on the value)
GST on solar power generating plant and other renewable energy plants
a	GST rate of 5% rate has been prescribed on renewable energy devices & parts for their manufacture (bio gas plant /solar power based devices, solar power generating system (SGPS) etc) [falling under chapter 84, 85 or 94 of the Tariff]. Other goods or services used in these plants attract applicable GST.
b	Certain disputes have arisen regarding GST rates where specified goods attracting 5% GST are supplied along with services of construction etc and other goods for solar power plant.
c	To resolve the dispute the Council has recommended that in all such cases, the 70% of the gross value shall be deemed as the value of supply of said goods attracting 5% rate and the remaining portion (30%) of the aggregate value of such EPC contract shall be deemed as the value of supply of taxable service attracting standard GST rate.
Clarifications :
1	Sprinkler system consisting of nozzles, lateral and other components would attract 12% GST rate under S.No. 195B of notification No. 1/2017-Central Tax (Rate) dated 28.6.2018
2	Movement of Rigs, Tools & Spares and all goods on wheels on own account where such movement is not intended for further supply of such goods but for the provision of service does not involve a supply (e.g. movement of testing equipment etc.) and is not be liable to GST.
3	The goods with description Bagasse Board [whether plain or laminated] falling under Chapter 44 attract GST at the rate of 12%.
4	Concessional GST rate of 5% applies to the LPG supplied in bulk to an OMC by refiners/ fractioners for bottling for further supply to household domestic consumers.
5	While animal /cattle /aquatic /poultry feed are exempt vide S. No. 102 of notification No. 2/2017-Central Tax (Rate), this exemption would not apply to their inputs such as fish meal, meat bone meal, bran, sharps, oil cakes of various oil seeds etc.
6	Manure of determination of classification of vitamins, provitamins etc. as animal feed supplements
7	Sattu or Chattua falling under HS code 1106 and attracts the applicable GST rate.
8	Polypropylene Woven and Non-Woven Bags and PP Woven and Non-Woven Bags laminated with BOPP falls under HS code 3923 and attract 18% GST rate.
9	18% GST is applicable on wood logs including the wood in rough/log used for pulping.
10	Turbo charger is classified under heading 8414 and attracts 18% GST and not 5% GST.
11	Fabric even if embroidered or has stitching of lace and tikki etc. and even if sold in three piece fabric as ladies suit set, will be classifiable as fabric and would attract 5% GST.
12	Scope of concessional rate of 5% GST rate for specified equipment for waste to energy plant.