Notification No. 49/2019- Central Tax - The CGST (Sixth Amendment) Rules, 2019 - Provisional ITC now restricted to 20%

Input Tax Credit will now be restricted for buyers if suppliers have not uploaded the invoice and deposited tax. i.e, Buyers will be able to claim only 20% provisional ITC.

Means, provisional ITC will be a maximum of 20% of the ITC for which invoices have been uploaded by suppliers.

Notification details:

The CGST (Sixth Amendment) Rules, 2019 were notified on 9 October 2019 in Notification No. 49/2019- Central Tax and published in the official gazette on the same date.

Details of Computation:

If a taxpayer is filing GSTR-3B regularly where outward supplies and provisional ITC is claimed and taxes are paid. While filing GSTR-3B, he should reconcile purchase register and expense ledger with GSTR-2A for that period. Suppose ITC as per GSTR-2A is Rs 20,000 and as per taxpayer’s own records, ITC should be Rs 30,000.

Previously, before this provisional ITC rule, he could have claimed the entire Rs. 30,000 based on his own records. Later, at a subsequent month he could carry out a detailed reconciliation and adjust this provisional claim against information as per GSTR-2A.

But now his provisional ITC claim cannot exceed Rs 24,000.

Rs 20,000 -Actual ITC based on information available in GSTR-2A

Rs 4,000 - Provisional ITC based upon the 20% rule, i.e. 20% of Rs 20,000

How to apply for Udyog Aadhar/ Register MSME for free

MSME Certificate is useful for various financial benefits for Micro, Small & Medium enterprises.
This is free by the government. That is, the governemnt do not charge any fees.
Following are the steps to implement registration by yourself:

I. Go to the website - https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx

II. Fill the application details as below:

1. Aadhaar Number - 12 digit Aadhaar number issued to the applicant should be filled in the appropriate field.

2. Name of Owner- The applicant should fill his/her name strictly as mentioned on the Aadhaar Card issued by UIDAI. E.g. if Raj Pal Singh has his name as Raj P. Singh, the same should accordingly be entered if the name does not match with the Aadhar Number, the applicant will not be able to fill the form further.

To Validate Aadhar:-

1. Validate Aadhar- The applicant must click on Validate Aadhaar button for verification of Aadhaar, after that only user can fill the form further.
2. Reset- The applicant can click on reset button to clear the field of Aadhaar No and Name of the owner for different Aadhaar.

OTP will be sent to your mobile number registred with UIDAI. If your mobile number is not registered with UIDAI, please follow instructions given on Pop up window.

3. Social Category- The Applicant may select the Social Category (General, Scheduled Caste, Scheduled Tribe or Other Backward Castes (OBC). The proof of belonging to SC, ST or OBC may be asked by appropriate authority, if and when required.

4. Gender- The Applicant can select gender of Entrepreneur

5. Physically Handicapped- The Applicant can select Physically Handicapped status of Entrepreneur

6. Name of Enterprise- The Applicant must fill the name by which his/her Enterprise is known to the customers/public and is a legal entity to conduct business. One applicant can have more than one enterprises doing business and each one can be registered for a separate Udyog Aadhaar and with the same Aadhaar Number as Enterprise 1 and Enterprise 2 etc. 
Combination of same Aadhaar Number and Enterprise Name can be aadded second times. Only additinal details can be added or deleted at the time of editing

7. Type of Organization- The Applicant may select from the given list the appropriate type of the organisation for his/her enterprise. The Applicant must ensure that he/she is authorised by the legal entity (i.e. enterprise being registered for Udyog Aadhaar) to fill this online form. Only one Udyog Aadhaar number shall be issued for each enterprise.

8. PAN Number - The Applicant have to enter PAN Number in case of Co Operative,Private Limited, Public Limited and Limited Liability Partnership It. Will be optinal in remaining type of Organisation

9. Location of Plant- The Applicant may add multiple plant location in one registration by clicking Add Plant button.

10. Official Address- The Applicant should fill in the appropriate field the complete postal address of the Enterprise including State, District, Pin code, Mobile No and Email.

11. Date of Commencement- The date in the past on which the business entity commenced its operations may be filled in the appropriate field.

12. Previous Registration Details(if any)- If the Applicant's enterprise, for which the Udyog Aadhaar is being applied, is already issued a valid EM-I/II by the concerned GM (DIC) as per the MSMED Act 2006 or the SSI registration prevailing prior to the said Act, such number may be mentioned in the appropriate place.

13. Bank Details- The Applicant must provide his/her bank account number used for running the Enterprise in the appropriate place. The Applicant must also provide the IFS Code of the bank's branch where his/her mentioned account exists. The IFS code is now a days printed on the Cheque Books issued by the bank. Alternatively, if the Applicant knows the name of the Bank and the branch where his/her account is there, the IFSC code can be found from website of the respective Bank.

14. Major Activity- The major activity i.e. either "Manufacturing" or "Service" may be chosen by the enterprise for Udyog Aadhaar. If your enterprise involves in both type of activities and if major work involves in Manufacturing and small portion of activity involves in Service sector then select your major activity type as "Manufacturing" and if major work involves in Services and small portion of activity involves in Manufacturing then select your major activity type as "Services"

15. National Industry Classification Code(NIC Code)- The Applicant may choose multiple National Industrial Classification-2008 (NIC) Codes to includes all their activities. Which means user can select multiple NIC code of Manufacturing and Service sector by clicking "Add More" button.If you want to add Manufacturing then select "Manufacturing" radiobutton and keep on adding by clicking "Add More" button otherwise if you want to add Service then select "Services" radiobutton and keep on adding by clicking "Add More" button. The NIC codes are prepared by the Central Statistical Organisation (CSO) under the Ministry of Statistics and Program implementation, Government of India. 

The Applicant may use National Industrial Classification-2008 (NIC) Codes searching facility to avoid 3 steps selection process. 
Example: User has to write matching key word (2 or more characters) in Search text box in Column No 11 . Then all related NIC CODEs will be listed (including Nic 2 Digit, Nic 4 Digit & Nic 5 Digit) with code and description. If User selects NIC 5 Digit code, then automatically all the related fields(like NIC 2 Digit, 4 Digit, 5 Digit & Enterprise Type) at column 11 will be automatically filled. Same way, If user selects NIC 4 digit, then related field of 2 digit NIC Code will filled, but user has to select NIC 5 digit from drop down(In this case 2 steps are required).

16. Person employed- The total number of people who are directly been paid salary/ wages by the enterprise may be mentioned in the appropriate field.

17. lnvestment in Plant & Machinery / Equipment- While computing the total investment , the original investment ( purchase value of items) is to be taken into account excluding tho cost of pollution control, research and development, industrial safety devices, and such other items as may be specified, by notification of RBI. If an enterprise started with a set of plant and machinery purchased in 2008 worth Rs. 70.00 lakh has procured additional plant and machinery in the year 2013 worth Rs. 65.00 lakh, then the total investment in Plant & Machinery may be treated as Rs. 135.00 lakh.

18. DIC- The Applicant, based on the location of the Enterprise, has to fill in location of DIC. This Column will be active and show option only when there are more than one DIC in the district. In fact if there is only one DIC in the district system will automatically register you in the same DIC.

19. Submit- The Applicant must click on Submit button to generate OTP which will be sent to email id mentioned for registration.

20. The Applicant have to enter OTP received on mobile (linked with Aadhaar) second time.

21. Enter Captcha- The Applicant must enter Captcha before clicking Final Submit button.

Once the above steps are completed, the MSME certificate is displayed for printing and downloading.

Contact Goutham Tax Consultancy(Ph: 9242858227) for more details

PAN CARD FOR FREE- Read this to get your PAN CARD done with no cost

PAN card for free:

Get PAN card for free – limited period offer! Source: Income tax website

There is a new announcement in the Income tax website which states as follows:

“Instant e-PAN allotment (Beta version) in near to real time is available free of cost for limited period. Individuals (other than minors) with a valid Aadhaar number (with updated Mobile number) can avail the e-PAN allotment facility.

Allotment of Free of cost instant E-PAN and is available only for a limited period on first come first serve basis for valid Aadhaar holders.

Prerequisites:

* Applicant already having PAN should not apply for E-PAN.

* The e-PAN facility is only for resident Individuals (Except Minors and others covered u/s 160 of Income Tax act, 1961) and not for HUF, Firms, Trusts, and companies etc.

* Active Mobile number linked with Aadhar to receive Aadhaar OTP (One Time Password). To verify the registered mobile number in Aadhaar, please visit UIDAI portal (Verify mobile number / email at Aadhaar).

* e-PAN is generated using the particulars available in Aadhar. Details such as Name, Date of Birth, Gender, mobile number and address in Aadhaar is not correct or not updated, please update the same in UIDAI prior applying e-PAN.”

Applying Instant e-PAN link is available here:

https://portal.incometaxindiaefiling.gov.in/e-Filing/Services/ePAN.html?lang=eng

Thanks for reading.

ITR forms

Confused about which ITR form to select to file your Income tax returns?

Then this is the right place where you can know about it.

Following is the ITRs to file the Income tax returns

ITR 1: For individuals being a resident other than not ordinarily resident having Income from Salaries, one house property, other sources (Interest etc.) and having total income upto Rs.50 lakh. You can't file ITR 1 if your salary exceeds this limit. You can file ITR 2 and this is unknown for most of the CAs.

ITR 2: For Individuals and HUFs not having income from profits and gains of business or profession

ITR 3: For individuals and HUFs having income from profits and gains of business or profession

ITR 4: For presumptive income from Business & Profession ( 44AD, 44AE, 44ADA - For those who run small businesses and books of accounts is not maintained)

ITR 5: For persons other than:- 

           (i) Individual,
           (ii) HUF,
           (iii) Company and 
           (iv) Person filing Form ITR-7

(According to Income tax Act, Person means Individual, HUF, Firm, Company, Local Authority, Artificial Judicial Person, Body of Individuals)

ITR 6: For Companies other than companies claiming exemption under section 11

ITR 7: For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F)

To file your returns feel free to contact us

+91 9242858227, gouthamtaxconsultancy@gmail.com

Thanks for reading

GST state codes

Here is the list of State Codes under GST:

(Annexure I: State code and TIN number co-relation for implementing the validation)

01	JAMMU AND KASHMIR	20	JHARKHAND
02	HIMACHAL PRADESH	21	ODISHA
03	PUNJAB	22	CHATTISGARH
04	CHANDIGARH	23	MADHYA PRADESH
05	UTTARAKHAND	24	GUJARAT
06	HARYANA	25	DAMAN AND DIU
07	DELHI	26	DADRA AND NAGAR HAVELI
08	RAJASTHAN	27	MAHARASHTRA
09	UTTAR  PRADESH	28	ANDHRA PRADESH (old)
10	BIHAR	29	KARNATAKA
11	SIKKIM	30	GOA
12	ARUNACHAL PRADESH	31	LAKSHWADEEP
13	NAGALAND	32	KERALA
14	MANIPUR	33	TAMIL NADU
15	MIZORAM	34	PUDUCHERRY
16	TRIPURA	35	ANDAMAN AND NICOBAR ISLANDS
17	MEGHLAYA	36	TELANGANA
18	ASSAM	37	ANDHRA PRADESH (NEW)

GST DRC 03

What is GST DRC 03 Form?

Form GST DRC-03 is now available on GST Portal for making voluntary payments. What is this form and how to file it?
This blog will answer these questions.

Form DRC-03 enables a taxpayer to make voluntary payments for
1. Before issue of notice u/s 73 or 74 of the CGST Act, 2017 or
2. Within 30 days of issue of show cause notice (SCN), if any. (But not after 30 days. So keep updated and make the payment before 30 days, if required)

Note: Partial payment is not allowed.

Following is the steps for how to file it:

1. Log in
2. Go to services
3. User services
4. My application
5. Application type: select INTIMATION OF VOLINTARY PAYMENT - DRC 03 from the drop down list.
6. Select date of required. Not recommended to type or click anything in date field. Just skip this step
7. Click on New Application
8. The website will ask details for the following:
A) cause for payment
B) section number
C) Financial year for payment
9. Click on proceed to payment. This will take you to your payment gateway and you can pay from your bank account.

Input tax credit (ITC) on capital goods

Business purchases many goods and Assets for its use and GST will be paid on this. We all generally think GST will be refunded. However there is restrictions to claim such ITC under GST ACT for capital goods. This blog is about such restrictions on capital goods.

Capital goods are assets such as buildings, machinery, equipment, vehicles and tools that an organization uses to produce goods or services. For example, comuter used in office is a capital goods.
The raw material used in the manufacturing process is not capital goods.

These capital goods will be kept by the business organisation for more than one year. Eg. Machinery, Furniture, Buildings, UPS, Laptops, etc

Since it is used for more than one year, depreciation is accounted. That is, only a part of its cost is taken as expenses for each year of use. It is computed by a percentage basis as per Income tax Act, 1961 to file your IT Return.

Once this depreciation on capital assets value (including GST) is claimed in income tax returns, you can not claim GST input tax on it. These GST expenses becomes ineligible ITC and recorded as rates and tax expense in profit and loss account.

However, the taxable value (assessible value/ amount excluding tax) of the assets can be taken for depreciation(means excluding tax value) so that you can claim the input tax under GST.