Complete User Guide for Migration to GST in Punjab

8 comments Monday, December 12, 2016
GST Migration starts from 16 December 2016 for State of Punjab. Migration will close on 31st December 2016. Registrants will be provided Provisional ID and Password by ETD, to Login to the GSTN Portal (

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Documents required for migration into GST in Punjab

The migration from VAT to GST is going to start from 16th December and this migration will continue till 31st December. To migrate into GST regime a provisional user I'd and password is required, which can be obtained from the jurisdictional excise and taxation department.
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Schedule and documents required for enrollment under GST

2 comments Tuesday, November 8, 2016
The schedule of the enrolment for GST activation drive for states is given below. The date to complete the enrolment will be during the specified dates as given below. However, the window will be open till 31/01/2017 for those who miss the chance.

Puducherry, Sikkim
Start Date: 08/11/2016
End Date: 23/11/2016

Gujrat, Maharashtra, Goa, Daman and Diu, Dadra Nagar Haveli, Chhattisgarh
Start Date: 14/11/2016
End Date: 29/11/2016

Odisha, Jharkhand, Bihar, West Bengal, Madhya Pradesh, Assam, Tripura, Meghalaya, Nagaland, Arunachal Pradesh, Manipur, Mizoram
Start Date: 30/11/2016
End Date: 15/12/2016

Uttar Pradesh, Jammu and Kashmir, Delhi, Chandigarh, Haryana, Punjab, Uttarakhand, Himachal Pradesh, Rajasthan
Start Date: 16/12/2016
End Date: 31/12/2016

Kerala, Tamil Nadu, Karnataka, Telangana, Andhra Pradesh
Start Date: 01/01/2017
End Date: 15/01/2017

Service Tax Registrants
Start Date: 01/01/2017
End Date: 31/01/2017

Delta All Registrants (All Groups)
Start Date: 01/02/2017
End Date: 20/03/2017

GST Registration shall start  at Assessees with verified PAN shall be allowed to fill details & submit proofs.

All the taxpayers registered under any of the Acts as specified viz. taxes which are subsumed , are expected to visit the GST System Portal and enroll themselves.

Before enrolling with GST System Portal, you must ensure to have the following information/ documents available with you:-

I. Provisional ID received from State/Central Authorities;

II. Password received from the State/Central Authorities;

III. Valid Email Address;

IV. Valid Mobile Number;

V. Bank Account Number



a. Proof of Constitution of Business:

i. In case of Partnership firm: Partnership Deed of Partnership Firm (PDF and JPEG format in maximum size of 1 MB)

ii. In case of Others: Registration Certificate of the Business Entity (PDF and JPEG format in maximum size of 1 MB)

b. Photograph of Promoters/ Partners/Karta of HUF (JPEG format in maximum size of 100 KB)

c. Proof of Appointment of Authorized Signatory (PDF and JPEG format in maximum size of 1 MB)

d. Photograph of Authorized Signatory (JPEG format in maximum size of 100 KB)

e. Opening page of Bank Passbook / Statement containing Bank Account Number; Account Number, Address of Branch, Address of Account holder and few transaction details (PDF and JPEG format in maximum size of 1 MB)
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GST Network to start collecting traders’ data for issuing tax IDs

3 comments Thursday, August 18, 2016

The network that forms the information technology backbone of the goods and services tax (GST) will start a nationwide drive, in collaboration with state governments, to collect information on around eight million traders and issue them tax identification numbers (TIN) as India prepares to implement the tax from the next fiscal year.

The Goods and Services Tax Network (GSTN), as it is called, has already collated basic information like Permanent Account Number (PAN) and names from existing databases of the income-tax department but needs more detailed data like place of operation, nature of business and bank account details before it can issue a GST ID number to the traders.

All traders will need a GST ID number—a 15-digit PAN-based number—to operate under GST, which is expected to come into effect on 1 April 2017.

As per GSTN estimates, there are around 6.5 million VAT (value-added tax) dealers registered with state tax authorities, and around two million service tax and about half a million excise duty dealers registered with central authorities.

Even if there is an overlap between dealers registered with the centre and the states, GSTN estimates there will be more than eight million traders who will need to be issued GST ID numbers.

“We are making a software where the existing taxpayers can fill essential data, like place of business, name of directors, the nature of their business and bank account details, etc. We are planning to throw this site open in October. Over the next four months, we will roll out a programme in a staggered manner wherein dealers in a state can fill in all their information online,” GSTN chairman Navin Kumar said in an interview.

GSTN and the states will use a mix of newspaper advertisements, media campaigns and direct outreach to encourage taxpayers to provide information about their businesses online.

Kumar said GSTN had asked states to obtain PAN from all the traders and that this exercise has been going on for the past two years.

“We have also verified 90% of the PANs from the income-tax department’s database,” he said. “What we have now is the PAN, the name of the business and details of whether it is a company or a proprietorship. But we couldn’t extract any other information from the states as they were all in different formats.”

To be sure, even after it gathers all the necessary information, GSTN can issue the ID number only after Parliament passes three proposed laws: the Central GST, Integrated GST and the State GST.

“If needed, we can generate the TIN for the eight million taxpayers in one day,” said Kumar.

GST is expected to remove barriers across states and integrate the country into a common market. It will subsume most of the indirect taxes levied by the centre and the states, including excise duty, service tax, VAT, entertainment tax and luxury tax. It will put the entire tax process online—right from registration, tax payment and tax return filing to refunds, audits and assessments—thereby making GSTN a very important part of the GST ecosystem.

“It is going to be a long-drawn exercise because of the huge number of assessees. The earlier they start the better. The law will get passed in the winter session. So it does not make sense to wait till then to collect information about the taxpayers else they will not be able to provide automatic registration to the traders in time,” said R. Muralidharan, senior director at Deloitte in India.
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1 comments Wednesday, August 17, 2016
As the GST Bill is about to come into action by the next year, the government of India is taking necessary steps to make sure that the GST regime works fine. The Government will introduce eight forms namely GSTR-1 to GSTR-8 that will be required to file the GST Tax returns in India. These forms will be collectively used to take the assesses details and offer multiple options to file online return.

As per department issue some draft form for return purpose. These are as below:

*1. GSTR-1 (Sales Register)*

•This is a sales register of goods and services, here we can enter the details data of of sales . If a persons sells his goods and services to a register person within the state in that case he is liable to charge CGST and SGST on the transaction. At the same point of time if the person sells his goods and services to other state he is liable for IGST charge on him.

•Here of each transaction it is important to classify the goods or services with his SAC or HSN code because these codes will identify the nature of the transaction.

•Again for avoidance of the black money or hawala transaction in GST returns, there is a  need to identify  some important transaction like inter state transaction worth Rs. 250000/- or more.

*GSTR- 2 (Purchase Register)*

•This is a comprehensive purchase register. Here we can enter the data of both purchase of service and goods.

•In GSTR-2 the data of the goods purchase from register dealer including debit/credit note will automatically populated as the respective dealers upload there sales register on due date. Due to this we can match our purchases against the sales register and the impact of this in current scenario where tax credit mismatch is hard to match and a time taking process, in GST there we will check our data as per seller return so mismatch issue resolve will solve easily

•As well as here we will amend our purchase bill too as we received in earlier periods

•Here a separate details information will be required for input service distributors

•Due date of filling the return is 15th of the next month. But we can upload our data on daily, fortnight, weekly too. Soon the last date of return filing the workload should be lesser than before

*GSTR-3 (Monthly Return Form)*

•Now the time taking process of return filling is over now. In GST return maximum data of this return is auto populated from purchase and sales registers. Only adjustment entries and challan information will enter after these entries

•Here cash ledger (tax deposit in cash and TDS/ TCS) will made separately for CGST , SGST and IGST

*GSTR-4 (Quarterly return for compounding dealers)*

•This return is a quarterly return filled by the compounding dealer (as per draft GST law the assesses whose turnover is less than Rs. 50 lacs and there is no interstate transaction ) is liable to file return on and before 18th of the month after the quarter

•In this return, data will be automatically populated after filing of GSTR-1
*GSTR-5 (Return file by the Non-Resident)*

•This will be a monthly return filed by the non –resident within 18th day after end of the month and within the 7 days after expiry of registration

•In this return HSN/SAC code should be mention because these are classify the transaction as a sales and purchase of goods and services

*GSTR-6 (Return for Input Service Distributor)*

•This return will be filed by the Input Service Distributors within 15 days after end of the month

•In this return form input service distribution ledger will be maintained. In this ledger credit of CGST, SGST, IGST  will maintain separately of each tax amount

*GSTR-7 (TDS Return)*

•Tax deductor will be liable to file this TDS return within the 10 days after end of the month
•This return form is almost similar to TDS return of income tax (26Q/24Q etc) as in this return deductee information and transaction information is mention with the related challan in which the TDS amount is paid to department

*GSTR-8 (Annual Return)*

•This return form will be filed on or before 31st December of the next financial year

•In this return the total annual returns information will be matched by the department with the monthly /quarterly return filled by the assesse

•In this return auditors information will submitted

•In this return all the transaction will bifurcated within goods and services. This bifurcation should be match with the HSN/SAC code given by the assessee in his monthly/ quarterly return

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No disallowance of ITC for mere technical defect in VAT invoice-HC

1 comments Saturday, August 6, 2016
The Hon'ble Punjab & Haryana High Court in a crucial decision has held that input tax credit cannot be disallowed merely for a technical defect in the VAT Invoice such as non mentioning of words " “Input Tax Credit is available to a person against this copy” as per Rule 54 of the Punjab VAT Rules, 2005.
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TCS to apply only on cash portion of sales transaction CBDT clarifies

2 comments Friday, June 24, 2016
Welcome clarification by CBDT on TCS on Cash Sale.

CBDT vide Circular No. 23/2016 dt. 24 June 2016 has clarified on FAQs of stakeholders reg. scope of the provisions and the procedure to be followed in case of the amended provisions of Section 206C of the Income Tax Act, as under:
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Facility of efiling of returns extended to Punjab luxury tax and Entertainment tax

0 comments Wednesday, June 8, 2016



 Kind Attention: Dealers/Chartered Accountants/Lawyers/Other Stakeholders
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Assessee cannot be asked to reverse ITC for non payment of tax by selling dealers

0 comments Tuesday, June 7, 2016
In a PATH BREAKING JUDGEMENT the Madras High Court has held that  Assessee cannot be asked to reverse input tax credit due to non-payment of taxes by the selling dealers.

Sri Lakshmi Textiles Vs. the Commissioner of Commercial Taxes and Others 

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Scope of prima facie adjustments u/s 143(1) of Income Tax Act enhanced

2 comments Saturday, May 28, 2016
The Finance Act, 2016 has made a very important amendment to section 143(1) of Income Tax Act, 1961, whereby the scope of prima facie adjustments u/s 143(1) has been enhanced while processing the returns. The following four sub-cluases and two provisos to the clause (a) of Section 143(1) have been added to allow for the following adjustments also while processing the returns:

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No entry tax on sugar in Punjab till date

0 comments Wednesday, May 18, 2016
There has been a lot of confusion off late about the levy of entry tax on import of sugar from outside the State of Punjab. The Excise and Taxation Department has been recovering entry tax on sugar imported from outside the state of Punjab.

The new entry tax law legislated by Punjab Government I.e. Punjab Development of trade commerce and Industries (Validation) Act is under challenge before the Punjab & Haryana High Court in CWP no 26998 of 2015. In the said Writ petition while passing an interim order on 27.04.2016 not only the stay on recovery of entry tax on sugar levied under an earlier ordinance I.e Ordinance no 1 of 2015 has been continued by the Hon'ble High Court but also it has been conceded by the Government councel in the court that no notification for leving  entry tax on sugar under new law (i.e validation Act) has been issued till date.

Thus it is very much clear that no entry tax is leviable on sugar imported from outside State of Punjab till date. Hence any recovery made in this regard at the check post by the Department is illegal.
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No local VAT on goods purchased inter-state or in the cource of import in works contracts-SC

1 comments Tuesday, May 3, 2016
The Hon’ble Supreme Court delivering very important judgment with regard to taxability of inter-state works contract. In the case of Commissioner, Delhi VAT  vs ABB Ltd., it has been held that in case the goods are purchased from other States or are imported from outside the country for the purpose of only using in the works contract, then the transaction would be covered under the Central Sales Tax Act and not liable to tax under local VAT act. 
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Sales Tax; Time for assessment cannot be extended when the assessment has already become time barred: SC

1 comments Monday, March 7, 2016

Supreme Court, in State of Punjab Vs. M/s. Shreyans Indus Ltd., has held that power of the Sales Tax Commissioner to extend the time to pass an order on assessment is to be exercised before the normal period of assessment expires.Three Judge Bench of the Apex Court comprising of Chief Justice of India T.S. Thakur, Justices A.K.Sikri and R. Banumati dismissed the appeals by Revenue challenging a judgement of Punjab and Haryana High Court.
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Some of the major changes proposed in the Union Budget 2016.

2 comments Tuesday, March 1, 2016



·         Government to bring Income Declaration Scheme 2016, to give opportunity to persons who have not paid full taxes in the past to come forward and declare their undisclosed income and pay tax. Scheme will start from 1st June 2016 and will remain open till date to be notified. Tax @ 30%, Surcharge @ 7.5% and penalty @ 7.5% (Total 45% ) will be charged by the Government on the undisclosed income. The tax will have to be paid on or before the date to be notified by the Central Govt.


·         No change in personal income tax slabs has been proposed. However Rebate of Rs.5000/- in tax will be allowed to individuals earning upto Rs.500000/- per year. Earlier this rebate was Rs.2000/-.


·         Turnover limit for Presumptive Taxation for Businesses has been increased from Rs.1 Crore to Rs. 2 Crore. Net Profit @ 8% will have to be declared in the Income Tax Return, if Sale is less than 2 Crores, otherwise Tax Audit will apply. Firms will have to declare income @ 8% of the Sales and pay tax on the same. Salary and interest to partners will not be allowed as deduction, as was being allowed earlier.

·         Any person paying tax under presumptive taxation scheme (section 44AD) will have to pay tax under the scheme for a continuous period of 5 years. If he opts out of the scheme during any year, then the option to pay tax on presumptive basis will not be allowed to him for next 5 years, and he will have to maintain proper books of accounts and get them audited during those 5 years.

·         Presumptive Tax introduced for Professionals like doctors, engineers, chartered accountants, architects. Professionals will have to declare income @ 50% of Gross receipts, otherwise will have to get the books of accounts audited. Tax Audit Limit for professionals increased to Rs. 50 lakhs.



·         Advance Tax will now have to be paid in four installments by all assessees – 15th June, 15th September, 15th December, 15th March. Earlier these installments were only for the Companies.

·         If Income Tax Return (in which Refund is due) is filed late, then department will not pay interest for the delayed period.

·         Now Income Tax Return can be filed only till one year from the end of the Financial Year. Earlier this limit was 2 years.

·         Income Tax Return which was filed after the due date could not be revised. Now the late filed return can also be revised if there is any mistake in the original return.

·         Earlier Dividends were exempt in the hands of the recipients. Now Dividend recipient will be liable to pay tax @ 10% if dividend received during the year is more than 10 lakhs.


·         Threshold limit for deduction of TDS on Commission has been increased from Rs.5000/- to Rs.15000/-. TDS on Commission reduced from 10% to 5%.

·         Threshold limit for deduction of TDS on Contract (Section 194C) increased to Rs.100000/- per year from Rs.75000/-.

·         Recipients of  Rental Income can also file Form 15G/15H for non deduction of TDS, if total income is below taxable limit.

·         TCS @ 1% introduced on Sale of any Goods or Services in Cash exceeding Rs.2 lakhs. If any Goods/Services are sold and payment is received in Cash exceeding Rs. 2 lakhs, then TCS will have to be collected from the person and paid to the government on monthly basis.



·         Krishi  Kalyan Cess @0.5% introduced. W.e.f. 1st June 2016, effective rate of service tax will be 15% (Service Tax 14%, Swach Bharat Cess 0.5%, Krishi Kalyan Cess @ 0.5%).

·         Annual Return of Service Tax introduced. Earlier there were only two half yearly returns of service tax. Now there will be three returns -  2 Half yearly and one annual.

·         Delayed payment of Service Tax, Interest @ 15% will have to be paid. However if Service Tax is collected but not paid to Government, then interest @ 24% will have to be paid 

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Presumptive income scheme under budget 2016


I. Amendments to section 44AD:

The existing provisions contained in the said section (applicable to individual, HUF or partnership firm) provides that notwithstanding anything to the contrary contained in section 28 to 43C, in the case of an assessee engaged in an eligible business having total turnover or gross receipts not exceeding one crore rupees, a sum equal to 8% of the total turnover or gross receipts, or, as the case may be, a sum higher than the aforesaid sum declared by the assessee in his return of income, shall be deemed to be the profits and gains of such business chargeable to tax under the head "Profit and gains of business or profession".
Further, under the existing scheme as per proviso to section 44AD(2), where the eligible assessee is a firm, the salary and interest paid to its partners shall be deducted from the income computed under sub-section (1) of section 44AD subject to the conditions and limits specified in section 40(b).
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The Indirect Tax Dispute Resolution Scheme, 2016 - A Step Towards Resolving Pending Litigations


1.0 Introduction:
The Finance Bill, 2016 has proposed THE INDIRECT TAX DISPUTE RESOLUTION SCHEME, 2016 for indirect tax disputes. The scheme is new to the indirect tax laws and is proposed to aimat resolving the litigations pending under the said Acts in a peacefull manner. The scheme is optional and provides relief to those litigants who want to buy peace of mind. The scheme is analysed as follows:

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10 Big Tax-Related Announcements In Budget 2016

Finance Minister Arun Jaitley did not change income tax slabs in his third Budget, but he did tweak some deductions and announced multiple new cesses, which will impact tax liability for the common man.
Here is a complete list of new tax measures announced in Budget 2016:
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Pilot project for online issuance of ‘C’ forms for dealers of District Mohali

0 comments Friday, January 22, 2016

Public Notice

Subject: Launching of Pilot Project for online issuance of ‘C’ forms in SAS Nagar, Mohali.

Kind Attention : Dealers/Lawyers/Chartered Accountants/Other Stakeholders of S.A.S Nagar Mohali

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Services by Excise and Taxation Department brought under Punjab Right to Service Act, 2011

0 comments Sunday, January 17, 2016
The Government of Punjab has notified the additional services, stipulated time limit, designated officers, first appellate authorities and second appellate authorities for the purpose of Section 3 of the Punjab Right To Service Act, 2011. This new notification has also brought many services provided by Excise and Taxation department Punjab such as registration, cancellation, issuance of refund/penalty/assessment orders etc, under the ambit of Right to Service Act, 2011.
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