India Regulatory Brief: Filing GST Returns, Aadhaar Mandatory for Banking and Financial Transactions

Posted by Reading Time: 5 minutes

Relaxation in filing GST returns till September 2017

The GST Council meeting on June 18, 2017 delivered key resolutions ahead of the GST launch at midnight of June 30. The Council opted for a relaxation in return filing until September, meaning no late fees or penalties will be levied in the interim period.

Professional Service_CB icons_2015 RELATED: Tax Compliance Advisory

GSTR-1 with invoice level details for the month of July have to be filed by September 5, and for the month of August by September 20. Correspondingly, the GSTR-2 and GSTR-3 forms for these two months must be filed thereafter. The summary return form in GSTR-3B must be filed on a self-declaration basis for the first two months – July and August – by the 20th day of the following month, after paying taxes.

Resolution on the e-way bill system (electronic way bill for movement of goods) could not be reached and has been deferred to the GST Council meeting on June 30.

GST Council amends rates, approves anti-profiteering rules           

The GST Council released amended rates of taxation for the hospitality sector on June 18. Hotels charging between US$39 and US$116 (Rs 2,500 to Rs 7,500) will be subject to 18 percent GST, while hotels charging upwards of US$116 (Rs 7,500) will attract 28 percent GST. Restaurants in these hotels will be subject to 18 percent GST, at par with air-conditioned establishments.

Integrated GST on shipping vessels will now attract a 5 percent tax. Also, input credit will not be available on ice cream, pan masala, and tobacco.

Further, the Council cleared anti-profiteering rules that will compel firms to reduce the prices of goods benefitting from lower taxation rates under GST. An anti-profiteering regulatory body will be setup for two years.

Previously, the GST Council widened the scope of a concessional tax payment scheme for small businesses and restaurants on June 11. This was in addition to revised GST rates for 66 items, including kitchen goods and movie tickets, the complete list of which is available on the website of the Central Board of Excise and Customs.

Related Link Icon-IB RELATED: Goods and Services Tax (GST) in India: Key Terms and Concepts

Aadhaar details mandatory for bank accounts, financial transactions

The federal government has now made Aadhaar (biometric identification number) mandatory for opening a new bank account.

The same is compulsory when conducting any financial transaction worth US$776.19 (Rs 50,000) and above. This amends the Prevention of Money Laundering (Maintenance of Records) Rules, 2005, and mandates the quoting of the Aadhaar number along with the permanent account number (PAN) or Form 60 by individuals, companies, and partnership firms.

Meanwhile, according to a notice released by the Department of Revenue, existing bank accounts will need to be linked with the Aadhaar system by December 31, 2017, failing which the accounts will cease to be operational.

After June 1, a person opening a bank account in India will need to compulsorily furnish proof of application for enrolment in Aadhaar, and submit the Aadhaar number to the bank within six months of opening the account.

Related Link Icon-IB RELATED: The Aadhaar Card: Now a Mandatory Proof of Identification

Petrol, diesel price to change daily in India

From June 16, India’s fuel sector moved to a system of daily price change for petrol and diesel. This means that petrol and diesel will be sold in sync with international rates (price of crude oil), a system currently followed by the U.S. and Australia.

The state-run oil companies Indian Oil Corp. Ltd (IOC), Bharat Petroleum Corp. Ltd (BPCL) and Hindustan Petroleum Corp. Ltd (HPCL) hold 90 percent of the country’s fuel market share, and previously tried the new dynamic pricing model in Udaipur, Jamshedpur, Puducherry, Chandigarh and Visakhapatnam since May 1.

The new pricing policy will hopefully reduce volatility in the fuel market, and ensure no drastic change in the domestic selling prices. Further, the benefits or costs of any change in the international oil prices can be carried unto the dealers and end-users. This also creates transparency in the sector.

About Us

India Briefing is published by Asia Briefing, a subsidiary of Dezan Shira & Associates. We produce material for foreign investors throughout Eurasia, including ASEANChinaIndonesiaRussia, the Silk Road, & Vietnam. For editorial matters please contact us here and for a complimentary subscription to our products, please click here.

Dezan Shira & Associates provide business intelligence, due diligence, legal, tax and advisory services throughout India and the Asian region. We maintain offices in Delhi and Mumbai and throughout China, South-East Asia, India, and Russia. For assistance with India investment issues or into Asia overall, please contact us at india@dezshira.com or visit us at www.dezshira.com.

 
Related Reading:

dsa brochure

Dezan Shira & Associates Brochure

Dezan Shira & Associates is a pan-Asia, multi-disciplinary professional services firm, providing legal, tax and operational advisory to international corporate investors. Operational throughout China, ASEAN and India, our mission is to guide foreign companies through Asia’s complex regulatory environment and assist them with all aspects of establishing, maintaining and growing their business operations in the region. This brochure provides an overview of the services and expertise Dezan Shira & Associates can provide.


An Introduction to Doing Business in India 2017

An Introduction to Doing Business in India 2017 is designed to introduce the fundamentals of investing in India. As such, this comprehensive guide is ideal not only for businesses looking to enter the Indian market, but also for companies who already have a presence here and want to stay up-to-date with the most recent and relevant policy changes.


Payroll processing and compliance in India

Payroll Processing and Compliance in India

In this issue of India Briefing Magazine, we discuss payroll processing and reporting in India, and the various regulations and tax norms that impact salary and wage computation. Further, we explain India’s complex social security system and gratuity law, and how it applies to companies. Finally, we describe the importance of IT infrastructure, compliance, and confidentiality when processing payroll in India.