Goods and Services Tax

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. 

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, the GST policy wing, and also with the GST council secretariat. Post these meetings Forum submitted further details as required by the officials.

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.

GST Council Secretariat has taken a progressive step of constitution of the Committee of Officers for Monitoring of Businesses Run through Online Platform for Tax Compliance. E-commerce sector is a power ally of the Government and we look forward to positive progressive steps being made in ensuring data availability vide compliances undertaken by us under the GST laws. With regards to the same, Forum has shared detailed submission on the issues being faced by the Sector.

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:

  • Representation on GST rates rationalization on digital content, author royalties and home delivery kitchen etc
  • Revenue neutral recommendations to provide more liquidity to businesses by unblocking working capital locked in accumulated in GST input tax credits
  • Representation on operational issues faced by DTA Suppliers for endorsement of invoices in relation to supplies made to SEZ Units/ Developers
  • Representation on treatment of post-sale discounts
  • GST representation on face to face audit requirements

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.

Forum submitted detailed recommendations on behalf of our members on the draft consultation paper and template released by GSTN. Government of India is looking at implementing the electronic invoicing under the Goods and Services Tax w.e.f January 2020. As a part of the next steps, GSTN had released a consultation paper and a draft template for the E-invoicing system for comments. – GST

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

For further details please reach us here

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:

  • Representation on GST rates rationalization on digital content, author royalties and home delivery kitchen etc
  • Revenue neutral recommendations to provide more liquidity to businesses by unblocking working capital locked in accumulated in GST input tax credits
  • Representation on operational issues faced by DTA Suppliers for endorsement of invoices in relation to supplies made to SEZ Units/ Developers
  • Representation on treatment of post-sale discounts
  • GST representation on face to face audit requirements

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.

Forum submitted detailed recommendations on behalf of our members on the draft consultation paper and template released by GSTN. Government of India is looking at implementing the electronic invoicing under the Goods and Services Tax w.e.f January 2020. As a part of the next steps, GSTN had released a consultation paper and a draft template for the E-invoicing system for comments. – GST

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 submission on request to exempt Online Information and Database Access Retrieval (‘OIDAR’) service providers from GST Annual and Audit report as required under Section 35(5) and Section 44 of the CGST Act, 2017 - GST

India Tax

USISPF submits feedback to the CBDT committee on profit attribution in case of a permanent establishment in India – May 2019 – Direct taxes

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:

US-India
US-India Tax Forum

Subscribe to get our weekly updates

USISPF Home Tax Forum Members