CA Inter GST amendments for May 25 Quick Recap | CA Ramesh soni

Summary

This video provides a comprehensive recap of key GST amendments for students preparing for the CA Intermediate exam. The instructor covers crucial updates, including changes in GST rules related to reverse charge mechanism (RCM), mandatory registration, exemption provisions, and deadlines for GSTR filing. Important exemptions in sectors such as railways, education, and electricity transmission are highlighted. The session also clarifies the new process for filing GSTR 1A and discusses the latest revisions on input tax credit, e-commerce transactions, and other essential updates. The video serves as an essential resource for exam preparation, providing clear insights into the amendments.

Takeaways

• 😀 RCM applies on renting by unregistered persons – If an unregistered person rents property to a registered one, the registered person must pay GST under Reverse Charge Mechanism (RCM).
• 😀 Due date for GSTR-4A filing is June 30th of the next year – The new due date for filing GSTR-4A (for Composition Scheme) is fixed.
• 😀 Compulsory registration for certain supplies – If the recipient is liable for GST under RCM (e.g., metal scrap), they must register if the supplier's turnover exceeds the registration limit.
• 😀 Aadhaar authentication for GST now available nationwide – This biometric-based authentication for GST is now available across India, not limited to specific states.
• 😀 Revocation of GST registration – Once registration is canceled, filing all pending returns within 30 days is mandatory for revocation.
• 😀 Exemptions from GST for certain services – Services related to the Real Estate Regulatory Authority (RA) and Indian Railways are exempt, along with specific NSDC services.
• 😀 ITC eligibility post-cancellation – If your GST registration is canceled and later revoked, you can claim ITC on missed invoices, provided returns are filed within 30 days.
• 😀 Demo vehicles can claim ITC – Input Tax Credit is allowed on demo vehicles provided by motor vehicle suppliers.
• 😀 Interest calculation on e-cash ledger – Interest is calculated on the remaining liability, not on the balance in your e-cash ledger while filing returns.
• 😀 TDS and TCS changes – TDS on metal scrap transactions is now 2% and TCS for e-commerce operators is reduced to 0.25% CGST/SGST or 0.5% IGST.
• 😀 Exemption from annual return for small businesses – Businesses with turnover under ₹2 crore in FY 2023-24 are exempt from filing the annual GST return.

Q & A

What is the key change regarding the Reverse Charge Mechanism (RCM) in the amendments?

The amendment introduces the Reverse Charge Mechanism (RCM) for unregistered persons renting immovable property (other than residential property) to registered persons. This means that the registered person will be liable to pay GST under RCM.

What is the updated due date for filing GSTR-4A as per the amendments?

The new due date for filing GSTR-4A has been set to 30th June.

Who needs to take GST registration under the amendments regarding metal scrap?

Suppliers of metal scrap are required to take GST registration if their turnover exceeds the threshold limit. Until registration is obtained, Reverse Charge Mechanism (RCM) will apply, after which forward charge will apply.

What is the significance of biometric Aadhaar authentication as per the amendments?

Biometric Aadhaar authentication is now mandatory for GST registration and verification in all states, not just in Puducherry, Gujarat, and Andhra Pradesh.

What happens if the registration is canceled and revoked as per the amendments?

If a GST registration is canceled and revoked, the taxpayer must file all pending returns within 30 days. Failure to do so will result in the cancellation of the registration.

Which services are exempt from GST under the amendments related to government services?

Certain government services, such as R&D services funded by the government and affiliation services provided by universities or boards to schools, are exempt from GST. However, government schools and educational institutions are not affected by this exemption.

How are residential properties impacted by the new GST amendments?

Renting of residential properties to registered persons for personal use is exempt from GST. However, renting services provided for commercial purposes may still be taxable, depending on the terms and conditions.

What does the amendment say about the availability of ITC on demo vehicles?

The amendment allows Input Tax Credit (ITC) on demo vehicles provided by motor vehicle suppliers, which was previously restricted.

How does the amendment affect the calculation of interest for delayed payments?

The amendment clarifies that no interest will be charged on the balance available in the e-cash ledger while calculating interest for delayed payments of taxes.

What changes are made in TDS and TCS provisions under the amendments?

The amendments introduce a 2% TDS on sales between registered persons for metal scrap. Additionally, the Tax Collected at Source (TCS) rate for e-commerce transactions has been reduced to 0.25% for CGST and SGST, or 0.5% for IGST.