Gist of Notifications GST Council in their meeting held on September 20, 2019

Gist of Notifications issued in order to implement the recommendations of the GST Council in their meeting held on September 20, 2019

There are several changes proposed in GST rates on specified goods and services during the 37^th GST Council meeting held on September 20, 2019.

The Central Government has now given effect to the recommendations of the GST Council vide various notifications dated September 30, 2019 and all such notifications, unless specifically mentioned otherwise, shall be effective from October 01, 2019.

Important highlights of all such notifications has been summarised for your easy digest:

Notification No.	Gist of Amendments
Amendment in rate of Goods and Services
Notification No. 14/2019-Central Tax (Rate)	The CBIC further amends the GST Rate of Specified Goods The CBIC has issued Notification No. 14/2019 – Central Tax (Rate) dated September 30, 2019, which further amends the GST Rate of various goods notified under Notification No. 01/2017 CT(R) dated June 28, 2017. The list of few goods wherein amendment has been brought are as under: – 1. Other non-alcoholic beverages [other than tender coconut water] “and caffeinated beverages” 2. Railway or tramway goods vans and wagons, not self-propelled. 3. Woven and non-woven bags and sacks of polyethylene or polypropylene strips or the like, whether or not laminated, of a kind used for packing of goods”;
Notification No. 20/2019- Central Tax (Rate)	The CBIC further amends the GST Rate of specified Services The CBIC vide Notification No. 20/2019- Central Tax (Rate) dated September 30, 2019 has further amended Notification No. 11/2017- CT(R) dated June 28, 2017. The list of few services wherein amendment has been brought are as under: 1. Supply of “hotel accommodation” having a value of supply of a unit of accommodation above one thousand rupees (> Rs. 1,000/-) but less than or equal to seven thousand five hundred rupees (< Rs. 7,500/-) per unit per day or equivalent. 2. Supply of “restaurant service” other than at “specified premises”

Exemption of Goods and Services
Notification No. 15/2019-Central Tax (Rate)	CBIC exempts certain goods The CBIC vide Notification No. 15/2019- (CT Rate) dated September 30, 2019 has amended Notification No. 02/2017- (CT Rate) dated June 28, 2017 to exempt following products which were earlier taxable @5%: ·        Tamarind dried ·        Plates and cups made up of leaves/ flowers/bark.
Notification No. 21/2019-Central Tax
(Rate)	CBIC exempts and rationalises certain services The CBIC vide Notification No. 21/2019- (CT Rate) dated September 30, 2019 has amended Notification No. 12/2017- (CT Rate) dated June 28, 2017 (“Services exemption notification”) to rationalise or further exempt certain services as under: ·        Services provided by the Central Government, State Government, Union territory or local authority to a business entity with an aggregate turnover of up to “such amount in the preceding financial year as makes it eligible for exemption from registration under the Central Goods and Services Tax Act, 2017 (12 of 2017)” is exempt. Earlier the turnover was specified as “twenty lakh rupees (ten lakh rupees in case of a special category state) in the preceding financial year” which has now been rationalised. ·        S. No. 9AA has been inserted in Services exemption notification to exempt “Services provided by and to FIFA and its subsidiaries directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020 to be hosted in India” ·        Amendment has been brought under S. No. 14 of Services exemption notification to clarify that services by way of residential or lodging purposes, having value of supply of a unit of accommodation below or upto one thousand rupees per day is exempt. ·        Condition to S. No. 19A/ 19B of Services exemption notification has been amended to extend the exemption of services by way of transportation of goods by an aircraft/ vessel from customs station of clearance in India to a place outside India till September 2020. Earlier it was exempted only upto September 2019. ·        S. No. 24B has been inserted in Services exemption notification to exempt “services by way of storage or warehousing of cereals, pulses, fruits, nuts and vegetables, spices, copra, sugarcane, jaggery, raw vegetable fibres such as cotton, flax, jute etc., indigo, unmanufactured tobacco, betel leaves, tendu leaves, coffee and tea” ·        S. No. 29B has been inserted in Services exemption notification to exempt “services of life insurance provided or agreed to be provided by the Central Armed Police Forces (under Ministry of Home Affairs) Group Insurance Funds to their members under the Group Insurance Schemes of the concerned Central Armed Police Force” ·        S. No. 35 of Services exemption notification has been amended to exempt services of general insurance business provided under “Bangla Shasya Bima” scheme ·        Services provided by 1. an arbitral tribunal 2. a partnership firm of advocates or an individual as an advocate other than a senior advocate, by way of legal services 3. a senior advocate by way of legal services to inter-alia a business entity with an aggregate turnover of up to “such amount in the preceding financial year as makes it eligible for exemption from registration under the Central Goods and Services Tax Act, 2017 (12 of 2017)” is exempt. Earlier the turnover was specified as “twenty lakh rupees (ten lakh rupees in case of a special category state) in the preceding financial year” which has now been rationalised. ·        S. No. 82A has been inserted in Services exemption notification to exempt “Services by way of right to admission to the events organised under FIFA U-17 Women’s World Cup 2020” This Notification is effective from October 01, 2019. Similar Notifications are issued under UTGST and IGST Law. In addition, “Services provided by an intermediary when location of both supplier and recipient of goods is outside the taxable territory”, subject to certain conditions, has been exempted by way of additional amendment in IGST notification.
Notification No. 20 /2019- Integrated Tax (Rate)	The CBIC vide Notification No. 20/2019- (IT Rate) dated September 30, 2019 amended Notification No. 09/2017- (IT Rate) dated June 28, 2017 so as to exempt “Services provided by an intermediary when location of both supplier and recipient of goods is outside the taxable territory”.

Other Notifications:
Notification No. 16/2019-Central Tax (Rate)	The CBIC vide Notification No. 16/2019- (CT Rate) dated September 30, 2019 amended Notification No. 03/2017- (CT Rate) dated June 28, 2017 so as to extend concessional CGST rates of 2.5% to “Petroleum operations or coal bed methane operations undertaken under specified contracts under the Hydrocarbon Exploration Licensing Policy (HELP) or Open Acreage Licensing Policy (OALP)”
Notification No. 17/2019-Central Tax (Rate)	The CBIC vide Notification No. 17/2019- (CT Rate) dated September 30, 2019 amended Notification No. 26/2018- (CT Rate) dated December 31, 2018, so as to exempt CGST on supplies of silver and platinum by nominated agencies to registered persons.
Notification No. 18/2019-Central Tax (Rate)	The CBIC vide Notification No. 18/2019- (CT Rate) dated September 30, 2019 amended Notification No. 02/2019- (CT Rate) dated March 07, 2019 so as to exclude manufacturers of aerated waters from the purview of composition scheme.
Notification No. 19/2019-Central Tax (Rate)	The CBIC vide Notification No. 19/2019- (CT Rate) dated September 30, 2019 has exempted supply of goods for specified projects under Food and Agricultural Organisation of the United Nations.
Notification No. 23/2019-Central Tax (Rate)	The CBIC vide Notification No. 23/2019- (CT Rate) dated September 30, 2019 has put a retrospective sunset clause on applicability of Notification No. 04/2018- (CT Rate) dated January 25, 2018 w.r.t. development rights supplied on or after April 01, 2019. The later Notification provided special procedure to be followed while determining time of supply in case of construction services against transfer of development rights.
Notification No.43/2019-Central Tax	The CBIC vide Notification No. 43/2019- (CT) dated September 30, 2019 amended Notification No. 14/2019- (CT) dated March 07, 2019 so as to exclude manufacturers of aerated waters from the purview of composition scheme.
Notification No. 22/2019- Central Tax (Rate)	CBIC notifies certain services under Reverse Charge Method u/s 9(3) of the CGST Act Following are the list of few services which has been made leviable under Reverse charge Mechanism subject to certain conditions: 1. Supply of services by an author by way of transfer or permitting the use or enjoyment of a copyright covered under clause (a) of subsection (1) of section 13 of the Copyright Act, 1957 relating to original literary works to a publisher. 2. Services provided by way of renting of a motor vehicle provided to a body corporate. 3. Services of lending of securities under Securities Lending Scheme, 1997 (“Scheme”) of Securities and Exchange Board of India (“SEBI”), as amended.
Notification No. 24/2019- Central Tax (Rate)	The CBIC vide Notification No. 24/2019- (CT Rate) dated September 30, 2019 has amended Notification No. 07/2019 – (CT Rate) dated the March 29, 2019 by amending the entry related to cement on which GST is leviable under Reverse Charge Mechanism.
Notification No. 25/2019-Central Tax (Rate)	Grant of liquor license by State Govt to be treated as “no supply” in GST The CBIC vide Notification No. 25/2019-Central Tax (Rate) dated September 30, 2019, has notified “service by way of grant of alcoholic liquor licence, against consideration in the form of a licence fee or application fee or by whatever name it is called” undertaken by the State Governments in which they are engaged as public authorities,  as neither a supply of goods nor a supply of service.
Notification No. 04/2019- Integrated Tax	The CBIC vide Notification No. 04/2019- (IT) dated September 30, 2019 has notified the place of supply of R&D services related to pharmaceutical sector provided by Indian pharma companies to foreign service recipients, as the place of effective use and enjoyment of a service i.e. location of the service recipient.
Notification No. 2/2019-Compensation Cess (Rate)	The CBIC vide Notification No. 02/2019- (Compensation Cess rate) dated September 30, 2019 has amended Notification No. 01/2017-(Compensation Cess rate) dated June 28, 2017 to inter-alia levy Compensation Cess @ 12% on Caffeinated Beverages.
Notification No. 03/2019-Compensation Cess (Rate)	The CBIC vide Notification No. 03/2019- (Compensation Cess rate) dated September 30, 2019 has disallowed the refund of compensation cess in case of inverted duty structure for tobacco and manufactured tobacco substitutes.

The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation.

Mandatory Compliances for a Private Limited Company in India

Although Private Limited Company is the most popular form of starting a business, there are various compliances which are required to be followed once your business is incorporated.

Managing the day to day operations of your business along with complying the corporate laws can be a little taxing for any entrepreneur. Hence, it is essential to take the help of a professional and also understand such legal requirements to ensure timely fulfillment of compliances, without any levy of interest or penalty.

We have elaborated below some of the common compliances which a private limited company has to mandatorily ensure:

Compliance Requirement	Description and Timeline
Appointment of Auditor	The auditor will be appointed for the 5 (Five) years and form ADT-1 will be filed for a 5-year appointment. The first Auditor will be appointed within one month from the date of incorporation of the Company.
Statutory Audit of Accounts	Every Company shall prepare its Accounts and get the same audited by a Chartered Accountant at the end of the Financial Year compulsorily. The Auditor shall provide an Audit Report and the Audited Financial Statements for the purpose of filing it with the Registrar.
Filing of Annual Return (Form MGT-7)	Every Private Limited Company is required to file its Annual Return within 60 days of holding of the Annual General Meeting. Annual Return will be for the period 1st April to 31st March.
Filing of Financial Statements (Form AOC-4)	Every Private Limited Company is required to file its Balance Sheet along with a statement of Profit and Loss Account and Director Report in this form within 30 days of holding of the Annual General Meeting.
Holding Annual General Meeting	It is mandatory for every Private Limited Company Company to hold an AGM in every Calendar Year. Companies are required to hold their AGM within a period of six months, from the date of closing of the Financial Year.
Preparation of Directors’ Report	Directors’ Report will be prepared with a mention of all the information required under Section 134.

Statutory Audit Compliances

The purpose of a statutory audit is the same as the purpose of any other audit – to determine whether an organization is providing a fair and accurate representation of its financial position by examining information such as bank balances, bookkeeping records, and financial transactions.

·        Appointment of the Statutory Auditors of the Company.

·        Finalise Annual Accounts with the Auditors of the Company

Annual RoC Filings

·        Private Limited Companies are required to file its Annual Accounts and Returns disclosing details of its shareholders, directors, etc to the Registrar of Companies. Such compliances are required to be made once in a year.

·        As a part of Annual Filing, the following forms are to be filed with the ROC:

·        Form MGT-7 (Annual Return) : Every Private Limited Company is required to file its Annual Return within 60 days of holding of the Annual General Meeting. Annual Return will be for the period 1st April to 31st March.

·        Form AOC-4 (Financial Statements) : Every Private Limited Company is required to file its Balance Sheet along with the statement of Profit and Loss Account and Director Report in this form within 30 days of holding of Annual General Meeting.

Annual General Meeting

·        Every Private Limited Company is required to hold a meeting of its shareholders once in every year within a period of six months from the date of closing of the financial year.

·        The primary agenda of an AGM includes approval of financial statements, declaration of dividends, appointment or re-appointment of auditors, appointment and remuneration of directors etc.

·        The Annual General Meeting shall be held during business hours on a day which is not a public holiday and shall take place at the registered office of the company or at some other place within the city, town or village in which the registered office of the company is situated.

Board Meetings

·        The First meeting of the Board of Directors of a Private Limited Company shall be conducted within 30 days from the date of the Incorporation of the company.

·        Further, minimum Four Board Meetings shall be held in a calendar year (one meeting in every 3 months). In case of a Private Limited Company which is classified as a “Small Company”, atleast two Board Meetings shall be held in a calendar year (one meeting in every half year)

·        Most of the startups fall within the category of “Small Company”.

·        Minimum 2 directors or 1/3rd of the total number of directors, whichever is greater, are required to be present in meeting of the Board of Directors. The discussions of the meeting need to be drafted and recorded in the form of “Minutes of the Meeting” and maintained at the Registered Office of the Company.

·        Directors should be intimated about the date and purpose of the meeting by giving a notice at least 7 days in advance from the date of the meeting.

Directors’ Report

Every director has to disclose about his directorship in other companies every year. This shall be done by giving a declaration in writing to the company every year in a specified Directors’ Report format.

Income Tax Compliances

·        Calculation and Quarterly Payment of Advance Tax

·        Filing of Income Tax Returns (Tax will be payable at a flat rate of 30% plus Education Cess)

·        Tax Audit – Mandatory in case sales, turnover or gross receipts of a business exceed Rs. One Crore in the previous year relevant to the assessment year.

·        Filing of Tax Audit Report

Maintenance of Statutory Registers and Records

A Private Limited Company has to maintain various statutory registers and records as required by the Company law such as Register of shares, Register of Members, Register of Directors etc. Besides, Incorporation documents of the company, Resolutions of the meetings of the Board of Directors, Minutes of the Board Meetings and Annual General Meeting etc are also required to be preserved by the Company.

Such records are to be kept at the registered office of the company and shall be open for inspection to its members during business hours. Also, the books of account of every company relating to a period of atleast eight financial years should be preserved and kept in good order.

Other Event Based Compliances

Besides Annual Filings, there are various other compliances which need to be done as and when any event takes place in the Company. Instances of such events are:

·        Change in Authorised or Paid up Capital of the Company.

·        Allotment of new shares or transfer of shares

·        Giving Loans to other Companies.

·        Giving Loans to Directors

·        Appointment of Managing or whole time Director and payment of remuneration.

·        Loans to Directors

·        Opening or closing of bank accounts or change in signatories of Bank account.

·        Appointment or change of the Statutory Auditors of the Company.

Different forms are required to be filed with the Registrar for all such events within specified time periods. In case, the same is not done, additional fees or penalty might be levied. Hence, it is necessary that such compliances are met on time.

Non-Compliance

If a Company fails to comply with the rules and regulations of the Companies Act, then the Company and every officer who is in default shall be punishable with fine for the period for which default continues.

If there is delay in any filing, then additional fees is required to be paid, which keeps on increasing as the time period of non-compliance increases. It should be noted that some of the Annual Filing Forms can also be revised but the fees for subsequent revised filing shall be charged, assuming it as a new filing.