CBIC vide Notification No.06/2020 – Central Tax dated 03 February 2020 further extends the due date for filing Annual Return and Reconciliation Statement for the FY 2017-18 in staggered manner similar to previous extension. The extended due dates for registered persons having their principal place of business in various states are as follows:
In the wake of recent slowdown in the economy and the existing challenges, the Hon’ble Finance Minister Nirmala Sitharaman has endeavored to steer the economy through slew of expenditure plans and investment schemes. Riding over the three themes of the budget viz., Aspirational India, Economic Development and Caring Society, the Hon’ble Minister has allocated funds and proposed new schemes in various sectors particularly for the agriculture, healthcare and infrastructure.
With billions of dollars on expenditure offerings, the Government expects that the economy will grow up to 6.5% in the next fiscal year and hopes to follow China's example in developing labor-intensive industries and exports. Accordingly, it has focused on generation of employment and inclusive growth through increased expenditure on rural economy, infrastructure, digital governance, MSME and healthcare.
Further, abolition of DDT, tax relief to middle class and lower middle-class segments along with simplification of the tax regime appears to be a sincere effort on part of the Government to provide the necessary impetus to improve the public sentiment and augur well for the economy.
Moreover, the proposed easing of tax payments for startups with a view to promote growth of budding entrepreneurs ‘by deferring the tax payment by five years or till they leave the company or when they sell, whichever is earliest’ would potentially encourage and promote the startups ecosystem in the country.
It goes without saying that the Government intends to make-up the short fall arising due to the aforesaid expenditures through various divestment plans including the listing of LIC, the Vivaad se Vishwas amnesty Scheme under the Income tax, and increase in Custom duties on various products etc.
Overall, the Government looks rich on intent and have been able to identify the sufficient strategic points to accelerate the growth. The same is evident in view of the extended support to MSME Sector by providing adequate Credit facility, investments in road and infrastructure construction activity. However, we will have to wait and analyze the real impact of the proposed measures in coming months. Even though the markets have fallen nearly 1000 points in the immediate aftermath of the Budget 2020, it is expected that matching with the Government’s intent, the measures would deliver results on expected lines
Attached herewith is a Budget booklet providing meaningful insights into the key amendments proposed in Union Budget for FY 2020-21.
The Hon’ble Finance Minister, Ms. Nirmala Sitharaman, presented her second Union Budget for the Fiscal Year 2020-21. The Union Budget has been split into three major themes viz. Aspirational India, Economic Development and a Caring Society. The Key Highlights have been summarized in ensuing paragraphs.
Overall, the budget has met various pre-budget expectations of the industry as far as the abolistion of DDT, relief in individual Income tax rates, Amnesty Schemes under Income tax etc. are concerned. However, the proposed divestments in the insurance sector and implications of other Direct Tax amendments have to be analyzed to term the instant budget as pro assessee or otherwise.
The GLS Budget booklet with a detailed analysis of the amendments would follow in couple of hours.
CBIC vide their tweet dated 31 January 2020 extends the due date for filing Annual Return and Reconciliation Statement for the F.Y. 2017-18 in staggered manner as follows. Notification / Order to this effect will follow soon.
Due date for states under Group 1: Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Puducherry, Telangana, Andhra Pradesh, Other Territory - 3rd February 2020;
Due date for states under Group 2: Jammu and Kashmir, Himachal Pradesh, Punjab, Chandigarh, Uttarakhand, Haryana, Delhi, Rajasthan, Gujarat- 5th February 2020; and
Due date for states under Group 3: Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Andaman & Nicobar Islands, Jharkhand, Odisha, Chhattisgarh, Dadra and Nagar Haveli and Daman and Diu, Lakshadweep, Madhya Pradesh, Uttar Pradesh- 7th February 2020.
In a landmark judgment by the Hon'ble Gujarat HC in the case of Mohit Minerals Private Limited vs. Union of India, the notifications levying IGST on ocean freight have been struck down owing to the lack of legislative competency. The decision inter alia holds that the importer cannot be said to be the recipient of services where the entire transaction takes place outside the territorial jurisdiction of India.
Under the Service Tax regime, the Hon'ble Gujarat HC in the case of Sal Steel Limited had struck down similar notifications which levied Service Tax on ocean freight. The rationale for the said judgment was similar to the present ruling that the levy of Service Tax on ocean freight for import of goods is ultra vires to the provisions of the Finance Act in as much as the transactions are being carried out beyond the territories of India.
In light of the present judgment, it would be interesting to see whether the Government would be made liable to refund the IGST paid on ocean freight by importers. Moreover, it would be interesting to see the fate of Input Tax Credit already collected by importers who had abided by the now 'struck down notifications'.
Acknowledging the difficulties faced by trade and industry in filing of returns, the government has decided to introduce several measures to ease the process, by allowing filing of GSTR-3B in staggered manner as follows. The Finance Ministry further said that it has also taken a note of difficulties and concerns expressed by the taxpayers regarding filing of GSTR-3B and other returns. The matter has been discussed by the GSTN with Infosys, the Managed Service Provider, which has come out with above solution to destress the process as a temporary but immediate measure.
The key highlights of the Press Release are as follows:
List of 15 states having deadline as 22nd of subsequent month
List of 22 states having deadline as 22nd of subsequent month
For further improving the performance of GSTN filing portal on permanent basis, several technological measures are being worked out with Infosys and will be in place by April 2020.
BIS Hallmarking for Jewelry Industry
The Union Minister of Consumer Affairs, Food and Public Distribution had held a press conference on 14 January 2020, to discuss matters relating to hall marking of Gold jewelry and Artefacts. Some of the key points are mentioned below:
BIS Requirement for Renewable Energy
Acting upon the decisions of the Union Minister of Commerce & Industry and Railways taken in the 6th National Standards Conclave on the subject of Standards for Trade Facilitation held in New Delhi on 15 and 16 January 2020, the DGFT issued a Trade Notice to that effect
Trade Notice No. 46/2019-20 dated 17 January 2020
It has been clarified that all importers should file their Bills of Entry under specific ITC (HS) Codes at 8-digit level, wherever possible and to avoid ‘others’ category. It has also been clarified that in case of continued non-compliance and mis-classification, the Government may consider bringing a licensing regime for all items imported under the ‘others’ category by shifting these items from ‘free’ to ‘restricted’ category.
It has been further advised to the members of the Trade and Industry are of the view that existing HS Code are not sufficient to cover the imported goods, they shall immediately suggest appropriate 8 digit HS Code to the competent authorities.
Standardization of products and processes is a touchstone today for the globalized world. It indicates the existence of accepted product standards and a claim that the manufactured products and its underlying processes adhere to the prescribed standards. International Standards Organization (“ISO”), with a membership of 162 countries, publishes guidelines which form the backbone for standards issued by national standards bodies in their respective domestic jurisdictions.
With the world witnessing ever increasing non-tariff barriers to trade and with the phenomenal pace with which technology is advancing, need for standardization of products is important today more than ever to maintain competitiveness in an international marketplace. Consequently, the role of national standards bodies has become all the more vital. In view of the intensity of the current regulated business environment, it is of paramount importance for businesses to gain a comprehensive knowledge of relevant Indian regulations mandating compliances including the BIS Certification.
The BIS has recently increased the fold of mandatory certification to include a number of categories under its ambit.
CBIC vide Notification No. 05/2020 – Central Tax dated 13 January 2020 notifies the appointment of Revisional Authorities under the CGST Act, 2017 as follows:
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