GST Suvidha Kendra by EL Ventures is a consulting firm which focuses on major areas of the Goods & Service Tax Consulting services facilitating GST registration services, GST implication services, GST Return filing services and other value added services.
Monday, June 11, 2018
An important information on raising invoice
https://www.facebook.com/2075861099330068/posts/2081855502063961/An important information on raising invoice
5 banking,financial transactions on which GST is payable now: check how you will get impacted
Amid speculation whether the ‘free services’ offered to customers by banks and other financial institutions will come under the ambit of GST (goods and services tax), the government has recently clarified that these services will not attract GST. The confusion arose when notices were sent to a large number of banks for non-payment of service tax on free services offered to their clients under the pre-GST regime. The officials of the Central Board of Indirect Taxes and Customs (CBIC) had earlier justified such notices arguing that banks were not offering free services, but were actually charging customers. However, the Department of Financial Services approached the revenue department in May, seeking exemption of free banking services from GST.
Now CBIC has clarified that there won’t be any levy on services provided without consideration to other than a related or distinct person. Therefore, GST won’t be levied on free banking services such as ATM withdrawals and cheque book issuance. However, transactions like purchase of insurance policies by NRIs and late payment charges on outstanding bills of credit cards will attract GST.
Here we are taking a look at 5 banking and financial transactions on which GST will now be levied:
1. Credit card late payment charges
CBIC has clarified that charges for late payment of dues on credit card outstanding will be chargeable to GST. Thus, if you delay your credit card payments and banks levy charges on it, then you will now be required to pay GST on those charges also.
2. Life insurance policies issued to NRIs
The life insurance policies issued to non-resident Indians (NRIs), where premium is received through Non-Resident External Account, are taxable since payments are made in Indian rupees and not in convertible foreign exchange.
3. Exit loads charged by mutual funds
Will the exit loads charged by mutual funds now attract GST? The government has clarified that such exit loads will now attract GST. It has said that exit load in the form of a fee (whether or not as a fixed percentage of the investment) will come under the GST ambit. “Even if the exit load is in the form of units in the fund, it may be concluded that the consideration received in money was later converted to NAV units,” it said.
4. Default in loan payments
If an additional interest is slapped on a bank customer for defaulting in the payment of loan instalments, that will be liable to GST.
5. Sale of repossessed asset
Sale of repossessed asset falls within the scope of supply. Therefore, its will be chargeable to GST.
Sunday, June 10, 2018
Business Name Board
According to the GST Act, taxpayers are required to display the GST registration certificate in a prominent location at the principal place of business and all additional places of business. Hence, in an office or shop, the GST registration certificate can be displayed at the entrance or near the billing section.
In all the tax invoice issued by a person registered under GST, GSTIN must be mentioned along with business name and address. Further, all tax invoices under GST must be issued as per the invoice format prescribed by the GST Rules.
The GSTIN of the business must be mentioned in the name board of the business fixed at the entrance. According to the GST Act, “Every registered person shall display his Goods and Services Tax Identification Number on the name board exhibited at the entry of his principal place of business and at every additional place or places of business.”
In the name board at the entrance of the business, composition dealers must mention the words “Composition Taxable Person” along with GSTIN.
Saturday, June 9, 2018
IMPORTANT ANNOUNCEMENT :FILING RETURNS IS MANDATORY IN GST REGIME
GST Suvidha Kendra by EL Ventures would provide three front end services to the taxpayers namely registration, payment and return.For consumers, it may just seem like new tax slabs of 0%, 5%, 12%, 18% and 28%, but for businesses GST has brought in 13 types of return filing forms - GSTR-1, GSTR 2, GSTR 3, GSTR 3B, GSTR 4, GSTR 5, GSTR 6, GSTR 7, GSTR 8, GSTR 9, GSTR 9A, GSTR 10, and GSTR-11.
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