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As part of its advocacy on GST matters, the Forum made a submission summarising recommendations for effective resolution to the request for state-wise data by GST authorities at the time of GST audits.
In the 47th Meeting of the GST Council held in June this year, the Group of Ministers (GoM) on Rate Rationalisation (led by Mr. Basavaraj Bommai, Chief Minister of Karnataka) had submitted an interim report with its recommendations. Ahead of the next meeting of the GST Council which is likely to be held by the end of September, the Tax Forum has made a representation to the GoM on behalf of the industry summarising the recommendations for rationalising GST rates across sectors.
As part of its advocacy on GST matters, the Forum made a submission summarising recommendations for effective resolution to the request for state-wise data by GST authorities at the time of GST audits.
In the 47th Meeting of the GST Council held in June this year, the Group of Ministers (GoM) on Rate Rationalisation (led by Mr. Basavaraj Bommai, Chief Minister of Karnataka) had submitted an interim report with its recommendations. Ahead of the next meeting of the GST Council which is likely to be held by the end of September, the Tax Forum has made a representation to the GoM on behalf of the industry summarising the recommendations for rationalising GST rates across sectors.
Pursuant to the recommendations made in the 47th Meeting of the GST Council held last month, the GST Policy Wing of Central Board of Indirect Taxes & Customs has released a Concept Paper detailing the changes, including a draft Form GSTR-3B and explanatory instructions thereto, seeking comments and suggestions from the industry to finalise the same. The proposed changes aim to incorporate long-standing industry requests in view of challenges faced in undertaking compliances. A copy of the Concept Paper can be accessed here.
The GST council will be holding its next meeting on May 28th 2021. Basis the feedback received from our members forum submitted a detailed recommendation on the legislative and procedural changes which are required under the GST Law mostly focus on the COVID relief measures.
The IT-ITeS industry has been grappling with challenges on the concept of ‘intermediary services’ and being exposed to demand of GST at 18% on exports, even though the billing for its activities are made to overseas customers for which foreign exchange is received as well. Forum has been diligently pursuing this matter with the Ministry of Finance, the GST Law Committee, the GST Council Secretariat and the Board (CBIC) and have made multiple requests earlier. However, the industry is still awaiting a concrete resolution on this issue around “intermediary”. We have now submitted a request for issuance of revised Circular on the classification of Information Technology enabled Services as ‘intermediary services’ as recommended by the GST council in 37th meeting.
Recently, CBIC had issued clarifications in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance of Notification No. 14/2020- C.T. dated March 21, 2020. Please refer to clarifications here. On the basis of feedback received from our members, USISPF has submitted a detailed note highlighting the need for additional clarifications. To discuss the feedback and to share further suggestions to the Government forum did back to back meetings with CBIC, GST policy wing and also with the GST council secretariate. Given that guidelines were only recently and the need for additional time for companies to implement this compliance, Forum has now requested GST council secretariate and the CBIC for deferring the date of implementation.
The revised threshold of INR 50 Cr for GST e-invoicing is applicable from 1 April 2021. However, at present there is no facility online for checking e-invoicing enablement GSTIN-wise as per the new threshold. While list of GSTINs that are presently generating IRNs has been issued, the list does not contain GSTINs who are required to generate IRNs. On behalf of our members forum requested the GST council to enable to the same.
The Indian Finance Minister presented the Union Budget 2021 on February 1 2021. Key tax announcements made in the Budget which include some clarifications with respect to the equalization levy or the digital service tax and various other procedural changes. Most of the tax proposals will be applicable from April 1, 2021 unless otherwise specified. Please access the updates (here) and (here). On the basis of feedback received from our members, USISPF shared detailed submission as a post budget feedback to the Government on tax amendments.
Last week CBIC had issued clarifications in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance of Notification No. 14/2020- C.T. dated March 21, 2020. Please refer to clarifications here. On the basis of feedback received from our members, USISPF has submitted a detailed note highlighting the need for additional clarifications.
The manner of generation of e-waybill for e-invoices is being updated from 01 January 2021 onwards (e-waybill to be generated only through the e-invoice portal by the seller). The change involves significant efforts both for the seller as well as the transporters from a technology standpoint. On behalf of the industry, Forum has requested that this requirement be either removed given the objective of replacing e-waybill with e-invoice or deferring the date of implementation to 01 April 2021 thereby providing much needed time for the industry to make necessary system changes and end to end testing.
Basis the inputs received from our members, forum has submitted detailed GST legislative and procedural issues across sectors with the CBIC and will soon engage with the concerned officials to get their views.
The dynamic QR code in case of B2C supplies is currently proposed to be implemented from December 1, 2020. There are some prevailing concerns and ambiguities which our members are apprehensive about and basis the same we have submitted a detailed note with the CBIC and also held a closed door meeting with CBIC in relation to this.
Owing the impact of COVID-19 which has resulted in business disruption and ability of work force to perform their tasks as well as difficulty for professionals in accessing data and interacting with the relevant stakeholders, USISPF has on behalf of its members requested CBIC for further relaxations on the compliance deadlines approaching by September 2020.
On August 5 forum discussed select issues around challenges/ issues being faced in obtaining endorsements for the purpose of GST refunds with the GST council secretariat. Further to the discussion we submitted a detailed note highlighting the need to bring our urgent clarifications in light of August 30 deadline.
Post our interactive session with Mr Yogendra Garg, Principal Commissioner, Central Board of Indirect Taxes & Customs and in continuation to our GST advocacy efforts USISPF shared key recommendations across sectors for consideration at the GST policy meeting to be held on June 12, 2020. These recommendations were shared with the GST policy wing, Central Board of Indirect Taxes & Customs and GST council. Some of the key reforms are with regards:
Government of India is planning to implement GST E-invoicing scheme voluntarily from January 2020 for companies with a specific turnover. On December 6, GSTN hosted an industry consultation to discuss the schema and address queries from the companies. USISPF along with few industry representatives shared the key suggestions towards a seamless implementation of the scheme.
Government of India has begun a comprehensive review of goods and services tax (GST) — including a possible resetting of rates along with a scrutiny of the slabs — to tone up collections and plug leakages. The task has been assigned to a 12-member committee of state and central government officials to “augment GST collection and administration”. On behalf of our member companies Forum has submitted detailed recommendations with the GST council.
USISPF on behalf of its members shared and discussed industry issues with the CBIC officials. The recent E-invoicing recommendations of the Forum, GST issues for the E-commerce sector, classification of testing services and issues around the rolling stock industry were some top issues discussed.
In what could radically transform the indirect tax administration and compliance system and how businesses are conducted in India, we understand that the Government of India is looking at the possibility of introducing electronic invoicing under the Goods and Services Tax. Pursuant to this business will likely have to issue invoices, or bills, directly via the GST Network. The forum has submitted a detailed note sharing severe concerns on this proposal. We have highlighted to the legislative and policy committee that a proposal like this could pose a deterrent threat to business and could result in signification disruption for businesses and the economy as a whole. Our request has been to defer the proposal for at least 2 years still GST as a regime is stabilized. – GST
Pursuant to the issues highlighted by our member companies, USISPF sent a submission to the GST authorities with a request to exempt the Online Information and Database Access Retrieval (‘OIDAR’) service providers from the upcoming GST return and audit obligations. We have highlighted that while the intent of the Government of India has been clear that non-resident taxable persons (providing OIDAR services) need not undertake detailed compliances as applicable for a resident taxable person, it appears that inadvertently compliances w.r.t. Annual Return and GST Audit Report have been made applicable to non-resident taxable person providing OIDAR services. – May 2019
The dynamic QR code in case of B2C supplies is currently proposed to be implemented from December 1, 2020. There are some prevailing concerns and ambiguities which our members are apprehensive about and basis the same we have submitted a detailed note with the CBIC and also held a closed door meeting with CBIC in relation to this. To get meeting updates and to share any further concerns, please write to @Shweta Kathuria
Owing the impact of COVID-19 which has resulted in business disruption and ability of work force to perform their tasks as well as difficulty for professionals in accessing data and interacting with the relevant stakeholders, USISPF has on behalf of its members requested CBIC for further relaxations on the compliance deadlines approaching by September 2020.
On August 5 forum discussed select issues around challenges/ issues being faced in obtaining endorsements for the purpose of GST refunds with the GST council secretariat. Further to the discussion we submitted a detailed note highlighting the need to bring our urgent clarifications in light of August 30 deadline.
Post our interactive session with Mr Yogendra Garg, Principal Commissioner, Central Board of Indirect Taxes & Customs and in continuation to our GST advocacy efforts USISPF shared key recommendations across sectors for consideration at the GST policy meeting to be held on June 12, 2020. These recommendations were shared with the GST policy wing, Central Board of Indirect Taxes & Customs and GST council. Some of the key reforms are with regards:
Government of India is planning to implement GST E-invoicing scheme voluntarily from January 2020 for companies with a specific turnover. On December 6, GSTN hosted an industry consultation to discuss the schema and address queries from the companies. USISPF along with few industry representatives shared the key suggestions towards a seamless implementation of the scheme.
Government of India has begun a comprehensive review of goods and services tax (GST) — including a possible resetting of rates along with a scrutiny of the slabs — to tone up collections and plug leakages. The task has been assigned to a 12-member committee of state and central government officials to “augment GST collection and administration”. On behalf of our member companies Forum has submitted detailed recommendations with the GST council.
USISPF on behalf of its members shared and discussed industry issues with the CBIC officials. The recent E-invoicing recommendations of the Forum, GST issues for the E-commerce sector, classification of testing services and issues around the rolling stock industry were some top issues discussed.
In what could radically transform the indirect tax administration and compliance system and how businesses are conducted in India, we understand that the Government of India is looking at the possibility of introducing electronic invoicing under the Goods and Services Tax. Pursuant to this business will likely have to issue invoices, or bills, directly via the GST Network. The forum has submitted a detailed note sharing severe concerns on this proposal. We have highlighted to the legislative and policy committee that a proposal like this could pose a deterrent threat to business and could result in signification disruption for businesses and the economy as a whole. Our request has been to defer the proposal for at least 2 years still GST as a regime is stabilized. – GST
Pursuant to the issues highlighted by our member companies, USISPF sent a submission to the GST authorities with a request to exempt the Online Information and Database Access Retrieval (‘OIDAR’) service providers from the upcoming GST return and audit obligations. We have highlighted that while the intent of the Government of India has been clear that non-resident taxable persons (providing OIDAR services) need not undertake detailed compliances as applicable for a resident taxable person, it appears that inadvertently compliances w.r.t. Annual Return and GST Audit Report have been made applicable to non-resident taxable person providing OIDAR services. – May 2019
USISPF submits recommendations for Union Budget 2019 – June 2019 – others
The Union Budget will be presented by the newly-appointed Finance Minister Ms Nirmala Sitharaman on July 5, 2019 in first session of Parliament for the new Government that begins June 17 and continues till July 26, 2019. USISPF has submitted our key asks for Budget 2019 across industries as our Pre-budget memorandum. Focus of our recommendations this year is:
