Tax Updates January 2020 – 09.01.2020
1. 2nd National GST Conference held for streamlining GST system – The multi-faceted Conference was focused on a brainstorming session for streamlining the Goods and Services Tax (GST) system and plugging revenue leakages. Following measures were decided to take the necessary action:-
a). For examine and implement quick measures in within time frame to stop fraudulent refund claims including the inverted tax structure refund claims and evasion of GST, Government constitute a committee of central and state officers. The Committee will come out with detailed SOP within a week, which may be implemented across the country by January end.
b). Considering fraudulent IGST refund claims, it was explored to link foreign exchange remittances with IGST refunds for the risky and new exporter.
c). Investigation wing of Income tax department shall investigate all big cases of fake Input Tax Credit, export / import fraud and fraudulent refunds.
d). For data exchange through API, CBDT, CBIC and GSTN would be signed MoU. Data exchange shall be done from CBDT to GSTN and CBIC and vice-versa. It was decided that this data should be shared on a quarterly basis, instead of being shared on a yearly basis.
e). GSTN also in consultation with RBI and NPCI to explore access to banking transactions including the bank account details. Suggestions were also received to make the GST system aligned with FIU for the purpose of getting bank account details and transactions and also PAN-based banking transactions.
f). To share data of cases involving evasion and fraudulent refund detected by CBIC with CBDT and vice versa, so that proper profiling of these fraudsters could also be done.
g). It was also suggested to provide a single bank account for foreign remittance receipt and refund disbursement.
h). In case of closure of businesses, a self-assessment declaration to be prescribed by suitable amendments in GSTR Forms .
2. Statistic Data has been enabled under the Download section by GSTN
3. Printing of Content Given by Customers on Banners & Supply of Such Printed Material is ‘Composite Supply’ of Services
a). In the case of M/s Macro-Media Digital Imaging Private Ltd the appellant is doing the job of printing of content provided by the customer on polyvinyl chloride banners and supplying such printed trade advertisement material, supplies by the appellant would constitute a supply of services falling under Heading 9989 of the scheme of classification of services.
b). Director of Sulabh Pharmaceuticals Pvt Ltd has been accused of fraudulently availing Rs 158 crore as an input tax credit on the strength of invoices without receipts of goods or services.
c). Prajapati indulged in such fraud practices to also obtain loans from various banks. He used the inflated turnover to convert his company Dhruv Wellness Pvt Ltd into a public limited company and artificially inflate the value of its shares, another officer said.
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4. GST threshold limit increase – with effect from 1st January 2020, there is an enhancement in aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupees in case of a supplier who is engaged exclusively in the supply of goods. A person shall be considered to be engaged exclusively in the supply of goods even if he is engaged in the exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.
5. Composition Scheme – with effect from 1st January 2020, Value of exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount shall not be taken into account for determining the value of turnover in a State or Union territory.
6. Inter-head transfer facility – with effect from 1st January 2020, A registered person may, on the common portal, transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger to the electronic cash ledger for integrated tax, central tax, State tax, Union territory tax or cess, in such form and manner and subject to such conditions and restrictions as may be prescribed.
7. With effect from 11.01.2020, e-way bill will not be generated even if GSTR – 1 is pending.
Also See, “Tax updates January 2020 – 07-01-2020
Also See, “Reminder Statutory Due Dates Chart for January 2020
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