CA NARESH KUMAR SANKHLA

RCM for Commercial Property Rentals: A New Provision in GST Understanding the Implications of Notification No. 09/2024 The Indian government has introduced a significant change to the Goods and Services Tax (GST) regime with the issuance of Notification No. 09/2024. This notification mandates the implementation of Reverse Charge Mechanism (RCM) for the renting of commercial property by any unregistered person to a registered person. What is Reverse Charge Mechanism (RCM)? RCM is a mechanism under GST where the recipient of the supply is liable to pay the tax instead of the supplier. In the context of commercial property rentals, it means that the registered person renting the property will be responsible for paying the GST on the rental amount. Key Points of the Notification  * Effective Date: The RCM for commercial property rentals will come into force on October 10, 2024.  * Scope: The notification applies to all cases where an unregistered person (such as an individual or a small bu

The Central Government, acting on the recommendations of the GST Council, has issued a set of significant notifications, bringing about changes that will impact electronic commerce operators and businesses operating in the e-commerce space. These changes are set to take effect on October 1, 2023. Can a composition scheme dealer sell online? Notification No. 36/2023 - Central Tax (Dated: August 4, 2023): According to this composition scheme dealer can sell online within same state. This notification outlines a special procedure for electronic commerce operators in India. It restricts them from facilitating inter-State supply of goods by persons paying tax under Section 10 of the Central Goods and Services Tax Act. Electronic commerce operators are required to collect tax at source for such supplies and file the details electronically in FORM GSTR-8. These changes aim to ensure smoother tax collection and reporting, particularly for composition scheme dealers. The effectiv

Recent notification issued by CBIC with respect to Standard Operating Procedure (SOP) for Scrutiny of GST Returns for FY 2019-20 onwards. Earlier CBIC had rolled out a module for automated scrutiny of GST returns. The module enables tax officers to carry out scrutiny of GST returns selected on the basis of data analytics and risks identified by the System.  Selection of returns for scrutiny will be done by the Directorate General of Analytics and Risk Management (DGARM) based on various risk parameters identified by them. The selected GSTINs (GST Identification Numbers) with the details of the risk parameters, in respect of which risk has been identified for a particular GSTIN, and the amount of tax/ discrepancy involved in respect of the concerned risk parameters (i.e. likely revenue implication), will also be shown on the ACES-GST application i.e scrutiny dashboard of the proper officer for their convenience. Step 1:- Tax officer would send scrutiny notice to an assessee in GST ASM

New GST E-invoicing notification:   The Finance Ministry has issued a notification announcing reduction in threshold limit for GST E-invoicing . Businesses with a turnover of ₹5 crore or more will be required to adopt e-invoicing from August 1, whereas the current threshold stands at ₹10 crore.  E-invoicing was initially implemented in 2020 for large companies with turnover of more than Rs 500 crore, and within 3 years the threshold has now been lowered to Rs 5 crore. E-invoicing for business-to-business (B2B) transactions was made mandatory under GST law for companies with annual revenues over Rs 500 crore starting on October 1, 2020, and then for those with annual revenues over Rs 100 crore starting on January 1, 2021. Companies that had a turnover of more than Rs 50 crore started producing B2B e-invoices from April 1, 2021. from April 1, 2022, the barrier was reduced to Rs 20 crore. The threshold was further reduced to Rs 10 crore as of October 1, 2022. 

Recent GST Notification for a Special All-India Drive:-  A Special All-India Drive may be launched by all Central and State Tax administrations during the period 16th May 2023 to 15th July 2023 to detect suspicious / fake GSTINs and to conduct requisite verification and further remedial action to weed out these fake billers from the GST eco-system and to safeguard Government revenue.  Basic Things for GST registered persons:-  1. Mention GST number on Sign bord.  2. Display of Registration Certificate on prompt place.  3. Filing of GST returns on timely basis.  4. Maintain purchase and sales bills in proper file or folder.  5. If any additional place of business or godown then same to be updated on GST registration certificate. For regular updates click here  More details