GST Rates Lowered!

Key Highlights of 25th GST Council Meet

The GST Council met on 18th Jan to discuss GST Returns consolidation, rate cuts and more. While a few changes were announced, the council has decided to meet again in 10 days to come to consensus on various matters. Here is a summary of the:
1. Late fee reduction:

a. GSTR-1, GSTR-5, GSTR-5A and GSTR-6 - late fee is reduced to Rs. 50 per day

b. Nil return filed for GSTR-1, GSTR-5, GSTR-5A – late fee is reduced to Rs. 20 per day

2. Cancellation of registration by voluntary registrants can be applied before expiry of 1 year from the date of registration.

3. Cancellation of registration (REG - 29) by migrated taxpayers extended till 31st March 2018

4. After successful implementation of e-Way Bills, the e-Way Bill portal to be shifted to ewaybillgst.gov.in

5. Certain modifications to e-Way Bill rules to be notified soon.

6. Recommendations made by Handicraft Committee has been accepted by the Council. The rates are to be worked out later.

7. GST rates for 29 Goods and 53 Services have been reduced. These rates are going to come into effect from 25th January 2018.
For any assistance with GST, call us on 9900397777 or write to us at info@preethamandco.com

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Latest on GST

Extension of GSTR-1 due dates

Taxpayers can file GSTR-1 either monthly or quarterly.

Those with turnover of more than Rs 1.5 crore must file a monthly GSTR-1

Taxpayers of turnover up to Rs 1.5 crore can file a quarterly GSTR-1.

Every taxpayer must choose the option of monthly or quarterly on the GSTN portal. Taxpayers with turnover of less than Rs 1.5 crore may choose to file a monthly GSTR-1 if they want to.

The government has extended the due dates of filing of GSTR-1.

Quarterly filing option:

GSTR 1 for the Period	Due Date
July-September 2017	10th January 2018
October - December 2017	15th February 2018
January - March 2018	30th April 2018

Monthly filing option:

GSTR 1 for the Period	Due Date
July, August, September, October, November 2017	10th January 2018
December 2017	10th February 2018
January 2018	10th March 2018
February 2018	10th April 2018
March 2018	10th May 2018

Composition rate notified for Manufacturers

A total composition rate of 1% (0.5% SGST and 0.5% CGST) was proposed in the 23rd GST Council meeting. This rate has now been notified via Notification no 1/2018- Central Tax dated 1st January 2018.

Late Fee

GSTR-4 for composition taxpayers was due on 24th December 2017. Late fee is applicable where return has not been filed on time. The late fee for late filing of GSTR-4, where tax is due is Rs 50 per day and for nil return is Rs 20 per day

CMP-03

After opting for composition scheme, a taxpayer has to report the stock held by them on the day of opting into the scheme. The stock details have to be provided in Form GST CMP-03. The due date for filing of CMP-03 has been extended to 31st January 2018.

Important clarifications from CBEC

Here are some important aspects of GST Compliance

1.    Taxpayers have to self-calculate turnover for opting for monthly or quarterly filing

2.    Taxpayers may opt to file monthly return even where turnover is less than Rs 1.5crores if they want to. This will help their buyers reconcile their input tax credit on a monthly basis. And will be useful when GSTR-2 filing begins.

3.    Since GSTR-3B cannot be revised, errors can be revised while filing GSTR-1 and GSTR-2 of the same month.

4.    GSTR-2 and GSTR-3 will be worked out by a Committee of officers and announced at a later date.

5.    The system will then automatically reconcile GSTR-3B with Form GSTR-1 and Form GSTR-2 and discrepancies will be offset against tax payable or added to tax payable as the case may be. This will be implemented at a later date.

6.    The department has clarified common errors faced while filing GSTR-3B and the steps to be taken to resolve the same. These can be seen in detail here.

For any assistance with GST, call us on 9900397777 or write to us at info@preethamandco.com

Quick Insights to Initial Coin Offerings

What is ICO?

An Initial Coin Offering, also commonly referred to as an ICO, is a fundraising mechanism in which new projects sell their underlying crypto tokens in exchange for bitcoin and ether. It's somewhat similar to an Initial Public Offering (IPO) in which investors purchase shares of a company.

When a cryptocurrency startup firm wants to raise money through an Initial Coin Offering (ICO), it usually creates a plan on a whitepaper which states what the project is about, what need(s) the project will fulfill upon completion, how much money is needed to undertake the venture, how much of the virtual tokens the pioneers of the project will keep for themselves, what type of money is accepted, and how long the ICO campaign will run for. During the ICO campaign, enthusiasts and supporters of the firm’s initiative buy some of the distributed cryptocoins with fiat or virtual currency. These coins are referred to as tokens and are similar to shares of a company sold to investors in an Initial Public Offering (IPO) transaction. If the money raised does not meet the minimum funds required by the firm, the money is returned to the backers and the ICO is deemed to be unsuccessful. If the funds requirements are met within the specified timeframe, the money raised is used to either initiate the new scheme or to complete it.

Legality?

Legally, ICOs have existed in an extremely gray area because arguments can be made both for and against the fact that they're just new, unregulated financial assets. In some cases, the token is simply a utility token, meaning it gives the owner access to a specific protocol or network; thus it may not be classified as a financial security. On the other hand, if the token is an equity token, meaning that it's only purpose is to appreciate in value, then it looks a lot more like a security.

Source: Nasdaq, Investopedia, BitcoinMagazine

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