GST AUDIT: GSTR-9C -Analysis of Point No. 5A to 5O

POINT NO. 5  OF  FORM  GSTR 9C (CLAUSE WISE) – SHORT ANALYSIS

5A – Turnover (including exports) as per audited financial statements for the State / UT (For multi-GSTIN units under same PAN the turnover shall be derived from the audited Annual Financial Statement)

1. The turnover as per the audited Annual Financial Statement shall be declared here.

2. While considering the turnover from the audited financial statements, the Auditor is also required to include indirect income in the form of dividend, interest, forex fluctuation, profit on sale of asset etc.

DOCUMENTS REQUIRED —- 

1. Audited financial statements for the FY to derive the total turnover of the Registered Person;

1. GST (Viz. Form GSTR 3B and Form GSTR 1) returns filed by the Registered Person to ensure that the turnover declared in the returns match with the turnover captured in the audited financial statements.

5B – Unbilled revenue at the beginning of Financial Year

1. In simple terms, unbilled revenue is the revenue recognized in the books of accounts before the issue of an invoice at the end of a particular period as per Accounting Standard-9.

2. Unbilled revenue which was recorded in the books of accounts on the basis of accrual system of accounting in the earlier financial year for which the invoice is issued under GST law is required to be declared here.

i.e. GST is payable during the financial year on such revenue (which was recognized as income in the earlier year), the value of such revenue is to be declared here.(booked in 16-17 but invoice rasied in 18-19)

3. The expression ‘financial year’ for 2017-18 — to be 9 months period commencing 1 July, 2017, the value under this clause must be reckoned as at 30th June, 2017.

4. ONLY APPLICABLE TO “SERVICES” ; AS FOR “GOODS” IT WOULD GET COVERED UNDER “UNADJUSTED ADVANCES”.

DOCUMENTS REQUIRED —-

1. Reliance has been placed on the audited financial statements for determining the unbilled revenue and no separate exercise is conducted to validate the same.

5C – Unadjusted advances at the end of the Financial Year

1. It is a business practice to collect Advances from customers before effecting supplies.

2. As per GST Law, any advances received from Customers before the supply is made ; on receipt of such advance GST has to be charged.

3. Advances received would be for various purposes. So, the Advances on which GST is liable should only be considered for the adjustment.

INCLUDE	REASON
Advance received for services as on 31st March 2018	Revenue not recognized in books, but offered to tax for GST
Advance received for Goods before 15th Nov 2017 and the supply of goods not complete as on 31st March 2018	Revenue not recognized in books, but offered to tax for GST

NOTE —

(a)  value of all advances for which GST has been paid but the same has not been  recognized as revenue/sale in the audited Annual Financial Statement shall be declared here.

(b) Even if not considered in the returns GSTR 1 and GSTR 9, the same shall be added as turnover here.

5D – Deemed Supply under Schedule I

1. Requirement of this Sl.No. is to report the transactions which were not reported in the financial statements, though the same are reported in the returns filed since they are treated as deemed supplies under the GST law.

2. Any deemed supply which is already part of the turnover in the audited Annual Financial Statement is not required to be included here.

 SCHEDULE-1 COVERS FOLLOWING SUPPLIES MADE WITHOUT CONSIDERATION  – 

1. Assets Donated would also not escape the levy and would have to be subject to GST Certain other examples would be – decommissioning of an entire plant, impairment of assets, assets taken by a proprietor on completion of its useful life (computer taken by the proprietor) etc. (only if ITC was availed on the above Assets).

2. Supply of goods or services or both between related persons or between distinct persons;

Provided that gifts not exceeding fifty thousand rupees in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both.

3. Supply of goods-

(a) by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal;

or

(b) by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.

4. Import of services by a taxable person from a related person or from any of his other establishments outside India, in the course or furtherance of business.

5E – Credit Notes issued after the end of the financial year but reflected in the  annual return

1. Value of credit notes which were issued after Mar 31, 2018 ; for supply accounted in 18-19(not 17-18) ; but such credit notes were reflected in the annual return GSTR –9 for the financial year 2017-18.

i.e. credit notes issued after 01.04.2018 — reported in books in FY 2018-19 – but reflected in GSTR-9 of 2017-18.

2. Above amount would get added with Turnover as per Audited Books to reconcile it with Turnover of GSTR-9.

5F – Trade Discounts accounted for in the audited Annual Financial Statement but are not permissible under GST

1. This clause requires disclosure of trade discounts which have been given effect to, in the audited financial statements ;

but which are not permissible as deduction from the value of supply as per VALUATION RULES.(i.e. not permissible under GST).

2. As per Sec.15(3) following discount is permissible –

a. If discount is mentioned on face of Invoice , it can be reduced from the Value of Supply.

b. If discount is not mentioned on face of Invoice , it can be reduced from the Value of Supply , on fulfilling following conditions :

• • Both Supplier & Recipient have agreed about the discount before the supply &
  • Such discount is specifically linked to relevant invoices &
  • Proportionate ITC attributable to discount has been reversed by the Recipient.

3. The Trade discounts can be issued in various ways and manners like special discounts for maintaining the business relationship ; bonus discount for purchasing goods beyond certain stipulated targets

5H – Unbilled revenue at the end of Financial Year

1. Revenue which was recorded in the books of accounts on the basis of accrual system of accounting i.e. as per AS-9 in current FY (17-18) ;

Invoice for the same would be raised in subsequent FY (18-19) &

then GST would also be paid in FY 18-19.

2. Above amount will get reduced from the Turnover as per Books so as to arrive to Turnover of GSTR-9; as GSTR-9 doesn’t includes such unbilled amount.

3. Also refer Point 5B as discussed above.

5I – Unadjusted Advances at the beginning of the Financial Year

1. NIL – for the first year ; as GST was not applicable on advances received in FY 16-17 & till 30.06.2017.

5J – Credit notes accounted for in the audited Annual Financial Statement but are not permissible under GST

1. All the adjustments made by issuing a Credit Note ; in the Books of Accounts ; by way of  reduction in the Turnover of Books ; without having GST effect shall be reported here.

2. Identify all Non-GST Credit notes, which have effect of reducing the Turnover as per Books.

3. Since, these Non-GST credit notes have reduced the Turnover of Books but they aren’t reflected in any GST returns(as they are non-gst).

4. Hence added back to arrive to the Turnover as per GSTR-9.

5K – Adjustments on account of supply of goods by SEZ units to DTA Units

1. Value of all goods supplied by SEZs to DTA units ; for which the DTA units have filed bill of entry shall be declared here.

2. Such outward supplies are not required to be reported by SEZ units in their GST Returns (as it is Import for the DTA unit).

3. Hence, the data cannot be retrieved from the returns filed by such SEZ units.

4. Though above transaction would be ‘sale’ for the purpose of Financial Statements of SEZ unit; but will not be considered as supply for GST purposes and hence, needs to be deducted from the turnovers of financial statements for the purpose of arriving at the turnover as per GSTR 9.

5M – Adjustments in turnover under section 15 and rules thereunder

1. Any difference between the turnover reported in the audited Financial Statements &Turnover reported in GSTR-9 due to difference in Value of Supply (Valuation Rules) shall be declared here.

2. Section 15 provides that transaction value will be considered as Value of Supply only if :-

• Supplier and the recipient are not related  &
• Price is the sole consideration for the supply.

3. Even if the price for a supply is agreed to be the transaction value, few adjustments (provided for under Section 15 itself) are required to carried out ; for the purpose of computation of ‘Value’ on which GST is required to be paid.

For Eg. –

• ADD – Any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act.

• ADD – Incidental expenses, including commission and packing,freight charged by the supplier to the recipient & recovered thereon.

• ADD – Any amount that the supplier is liable to pay in relation to such supply, but which has been incurred by the recipient of the supply and not included in the price.

5N- Adjustments in turnover due to foreign exchange fluctuations

1. Forex Transactions are accounted in the books of accounts based on RBI REFERENCE RATE ; whereas CGST Rulesrequire value of taxable goods to be determined based on the exchange by CBEC NOTIFIED RATE .

2. Hence difference between RBI REFERENCE RATE & CBEC NOTIFIED RATE shall be declared here.

3. Additionally, difference in amount booked in accounts and actual amount received would also result in Forex Gain/Loss which again needs to be adjusted from the Annual Turnover as per as per financials(i.e. reduce forex gain & add forex loss) to arrive at the revenue as per GSTR 9.

5O- Adjustments in turnover due to reasons not listed above

1. This is a residuary clause for difference between the turnover due to reasons not listed above.

2. The following broad head of adjustments can be reported under this Sl.No.: –

• turnover considered as ‘supply’ under GST but not considered as income in the audited Annual Financial Statements;

• turnover discovered as ‘supply’ during the course of audit, but not considered in books of account and Form GSTR 9.

Sl No.	Particulars	Action
1	Physician sample distributed by the pharmaceutical company to physician for free	(+)
2	Notice pay recovered from employees	(+)
3	Gifts given to customers/vendors/distributors	(+)
4	Stocks issued to discharge CSR obligation	(+)
5	Sales promotion / advertisement reimbursement received and considered as supply	(+)
6	Out of pocket expenses considered in the value of supply	(+)
7	Value of Capital Goods on which GST paid on sale	(+)
8	Profit on sale of Capital goods disclosed in audited Annual Financial Statements	(-)
9	Loss on sale of Capital goods disclosed in audited Annual Financial Statements	(+)
10	Income in Profit and Loss account recognized based on special circumstances	(-)
11	value on which GST is liable to be paid in respect of transactions where income is recognized based on special circumstances	(+)
12	Discounts which are not to be excluded from the value of supply as per Section 15	(+)
13	Sale reversals in financials as risk & rewards not transferred.	(+)
14	Provision for doubtful debts written back	(+)
15	Interest income	(-)
16	Miscellaneous income or Any other amount	(-)

                                         (views are strictly personal)

GST New Tax Rate Structure on Real Estate Sector

Currently, the Goods and Services Tax (GST) is levied at 12 per cent on payments made for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale. 

The GST Council in its 33^rd meeting held on 24^thFebruary 2019 has recommended for a new GST rate structure on the construction of residential projects. The decision was taken to address the industry concern on the slowdown in the sector and low off-take of under construction houses.

In the 34^th meeting held on 19^th March 2019, the GST Council has given the modus operandi of the new GST rate of 1%/5% on real estate sector.

New rate of tax:

Applicability: It is applicable to new projects or ongoing projects which have exercised the above option to pay tax in the new regime.

Rates:

1% without ITC

• Affordable Houses *1 
• On going Afforable House Project under central and state housing schemes

5% without ITC

• all houses other than affordable houses in ongoing projects *2 
• all houses other than affordable houses in new projects
• commercial apartments such as shops, offices etc. in a residential real estate project (RREP) *3 

*1. Definition of affordable housing:  A residential house/flat of carpet area of upto 90 sqm in non-metropolitan cities/towns and 60 sqm in metropolitan cities having value upto Rs. 45 lacs (both for metropolitan and non-metropolitan cities). Metropolitan Cities are Bengaluru, Chennai, Delhi NCR

2. In case of construction of houses other than the affordable house in ongoing projects, new rate shall be available on installments payable on or after 01.04.2019 in case of houses booked before 01.04.2019.

3. In case of commercial apartments such as shops, offices etc. in a residential real estate project (RREP), the new rate of 5% tax without ITC will be applicable only if the carpet area of all such commercial apartment in a RREP is not more than 15% of total carpet area of all apartments including residential apartments (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR).[O1] 

Conditions for the new tax rates

The GST Council has laid down the following conditions on the new tax rates regime

1. The Input Tax Credit shall not be available on the inward supplies.
2. 80% of inputs and input services (other than capital goods, TDR/ JDA, FSI, long term lease (premiums)) shall be purchased from registered persons.

In case of shortfall of purchases from 80%, tax shall be paid on the differential shortfall at 18% on RCM basis by the builder. However, Tax on cement purchased from the unregistered person shall be paid @ 28% under RCM, and on capital goods under RCM at applicable rates.

Is it Mandatory of the existing running/ongoing project?

The GST Council has provided for one time option to the promoters/builders to continue to pay the tax at the old rates of 8% or 12% with ITC on the ongoing projects.

The Ongoing Projects are the Projects/Buildings where construction and actual booking have started before 01/04/2019 and which have not been completed by 31.03.2019.

Therefore for the ongoing projects, the promoters have an option to opt for the new tax structure of 1%/5% without ITC or to continue with the old tax rates of 8%/12% with ITC.

ITC Transitional Provision for ongoing projects

The Ongoing projects where construction and booking both had started before 01.04.2019 and have not been completed by 31.03.2019 opting for new tax rates shall transition the ITC as per the prescribed method.

The transition formula approved by the GST Council, for residential projects extrapolates ITC taken for percentage completion of construction as on 01.04.2019 to arrive at ITC for the entire project. Then based on percentage booking of flats and percentage invoicing, ITC eligibility is determined. Thus, the transition would thus be on pro-rata basis based on a simple formula such that credit in proportion to booking of the flat and invoicing done for the booked flat is available subject to a few safeguards.

To arrive at the eligible ITC we can use the following steps and the formulae.

Step 1: As on 01.04.2019 arrive at the percentage completion of construction
Step 2: Based on step 1 arrive at the ITC of the entire Project.

Formula Derived =

ITC availed as on date  * 100
Percentage Completed (Step 1)

Step 3: Determine the percentage booking of flats and percentage of invoicing made

Step 4: Determining the ITC eligible based on pro-rata basis in proportion to booking of the flat and invoicing done for the booked flat

Formula: ITC Eligible =

Invoicing of the Flat Booking made * Total ITC (Step 2)
Total Estimated sale of the projects

The para 4(ii) of the press release of 34^th GST Council meeting envisages that new rate shall be available on installments payable on or after 01.04.2019. Therefore the ITC will be available only for the invoicing made for installments till 31.03.2019.

In case of a mixed project, the ITC shall be divided on pro rata basis between commercial portion and noncommercial portion in proportion to carpet area of the commercial portion in the ongoing projects (on which tax will be payable @ 12% with ITC even after 1.4.2019) to the total carpet area of the project.

Formula

Carpet area of the commercial portion in the ongoing project * Eligible ITC
Total carpet area of the project

Amendment of ITC Rules

The GST Council in its 34^th meeting has provided that, the ITC rules will be amended to bring greater clarity on monthly and final determination of ITC and reversal thereof in real estate projects. The change would clearly provide procedure for availing input tax credit in relation to commercial units as such units would continue to be eligible for input tax credit in a mixed project.

Treatment of TDR/ FSI and Long term lease for projects commencing after 01.04.2019

The GST Council has to address the concerns of cash flow of the builders/developers has.

The GST Council has provided for the exemption on supply of TDR, FSI, long term (premium) of land by a landowner to a developer if the constructed flats are sold before issuance of completion certificate and applicable tax is paid on them. In case the flats are sold after issue of completion certificate, the exemption will be withdrawn, however such withdrawal shall be limited to 1% of value in case of affordable houses and 5% of value in case of other than affordable houses. This will achieve a fair degree of taxation parity between under construction and ready to move property.

The Builder/Developer would be liable to pay tax under RCM (Reverse Charge Mechanism) on TDR, FSI, long term lease (premium).

The date of liability to pay tax under RCM on TDR, FSI, long term lease (premium) of land shall be the date of issue of completion certificate in respect of flats sold after completion certificate.

The above points holds good in case of JDA for the share of land owner in the construction of houses. The Builder/developer would be liable to pay tax on the land owner share in the constructed apartments on date of completion i.e. at the time of obtaining occupancy certificate.

Pros and Cons of the new tax rate Structure

The new tax regime on real estate sector comes with the following pros

1. The tax burden is reduced for the ultimate buyer.
2. The buyer of house gets a fair price with GST @ 1%/5% instead of current 8%/12%.
3. The issues like ITC benefit not being transferred to the buyer will not exist.
4. Interest of the buyer/consumer gets protected.
5. Cash flow problem for the sector is addressed by exemption of GST on development rights, long term lease (premium), FSI etc.
6. Unutilized ITC, which used to become cost at the end of the project gets removed and should lead to better pricing.
7. Tax structure and tax compliance become simpler for builders.

However apart from the above pros, it has certain following cons:

1. The ITC becomes the cost to the builder, therefore the apartments prices may go up due to increase in the cost.
2. The compliance on part of minimum 80% purchase from registered dealers would require regular tracking and reconciliation would be the tedious process.
3. Transition of ITC in case of ongoing projects opting for new regime is complex and difficult task.

Conclusion:

The new tax regime is a welcome step in the GST era with the simple taxation in the Real Estate sector and reduced burden of tax compliance. The Real Estate has seen a sign of bear and hope to see the new tax regime comes with a hope of light in the real estate sector. The eyes are on the CBIC and GSTN on how the new regime is implement and given effect to.

E-Way Bill System Forthcoming changes in e-Waybill system

1. Auto calculation of route distance based on PIN code for generation of EWB
Now, E-waybill system is being enabled to auto calculate the route distance for movement of
goods, based on the Postal PIN codes of source and destination locations. That is, the e-waybill
system will calculate and display the actual distance between the supplier and recipient
addresses. User is allowed to enter the actual distance as per his movement of goods. However,
it will be limited to 10% more than the displayed distance for entry. That is, if the system has
displayed the distance between Place A and B, based on the PIN codes, as 655 KMs, then the
user can enter the actual distance up to 720KMs (655KMs + 65KMs). In case, the source PIN
and destination PIN are same, the user can enter up to a maximum of 100KMs only. If the PIN
entered is incorrect, the system would alert the user as INVALID PIN CODE. However, he can
continue entering the distance. Further, these e-waybills having INVALID PIN codes are flagged
for review by the department.
Route distance calculation between source and destination uses the data from various
electronic sources. This data employs various attributes, for example: road class, direction of
travel, average speed, traffic data etc. These attributes are picked up from traffic that is on
National highways, state highways, expressways, district highways as well as main roads inside
the cities. A proprietary logic is then used for approximating the distance between two postal
pin codes. The distance thus derived is then provided as the motorable distance at that point of
time.
2. Blocking of generation of multiple E-Way Bills on one Invoice/document
Based on the representation received by the transporters, the government has decided not to
allow generation of multiple e-way bills based on one invoice, by any party – consignor,
consignee and transporter. That is, once E-way Bill is generated with an invoice number, then
none of the parties - consignor, consignee or transporter - can generate the E-Way Bill with the
same invoice number. One Invoice, One E-way Bill policy is followed. The change will come in
the next version.
3. Extension of E-Way Bill in case Consignment is in Transit
The transporters had represented to incorporate the provision to extend the E-way Bill, when
the goods are in transit. The transit means the goods could be on Road or in Warehouse. This
facility is being incorporated in the next version for the extension of E-way Bill.
During the extension of the e-way bill, the user is prompted to answer whether the
Consignment is in Transit or in Movement. On selection of In Transit, the address details of the
transit place need to be provided. On selection of In Movement the system will prompt the user
to enter the Place and Vehicle details from where the extension is required. In both these
scenarios, the destination PIN will be considered from the PART-A of the E-way Bill for
calculation of distance for movement and validity date. Route distance will be calculated as
explained above.
4. Blocking of Interstate Transactions for Composition dealers
As per the GST Act, the composition tax payers are not supposed to do Interstate transactions.
Hence next version will not allow generation of e-way bill for inter-state movement, if the
supplier is composition tax payer. Also, the supplies of composition tax payers will not be
allowed to enter any of the taxes under CGST or SGST for intrastate transactions. In case of
Composition tax payer, document type of Tax Invoice will not be enabled.

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रियल एस्टेट सेक्टर पर नई जीएसटी दर

The GST council in the 34^th GST council meeting held on 19^th March, 2019 at New Delhi decided new GST rates and other related issues on real estate sector. Followings are the main provisions (other than transition related provisions) as have been published by way of press release by CBIC on its website.

Q1: What is the new GST rate on Real Estate Sector?

A1: 1% without ITC on construction of affordable houses.

5% without ITC on construction of all houses other than affordable houses.

Q2: What would be the GST rate on commercial apartments in case they are constructed in a residential real estate project?

A2: 5% without ITC if carpet area of commercial apartments is not more than 15% of total carpet area of the residential project. In all other cases GST rate on commercial apartments shall be 18% (effective rate 12%)

Q3: What is the definition of affordable house?

A3: Carpet area is not more than 60 Sq. Mtr. (645.834625 Sq. Ft.) in case residential unit is situated in a metro area

Carpet area is not more than 90 Sq. Mtr. (968.751938 Sq. Ft.) in case residential unit is situated in other than metro area.

Affordable houses being constructed in ongoing projects under the existing central and state housing schemes presently eligible for concessional rate of 8% GST (after 1/3^rd land abatement).

Q4: In case of ongoing projects which rate should be followed (Old/New)?

A4: The promoters shall be given a one –time option to continue to pay tax at the old rates (effective rate of 8% or 12% with ITC). Option should be exercised once within a prescribed time limit. Where the option is not exercised within the prescribed time limit, new rates shall apply.

Q5: Which projects are to be considered as ongoing?

A5: Buildings where construction and actual booking have both started before 01.04.2019.

Q6: Whether inputs or input services for constructions of buildings can be purchased from unregistered persons?

A6: Maximum 20% of total value of inputs and input services to complete a project can be purchased from unregistered persons. Therefore, 80% or more of total value of input and input services shall be purchased from registered persons. On shortfall of purchases from 80%, tax shall be paid by the builder @18% on RCM basis. However, tax on cement purchased from unregistered person shall be paid @28% on RCM basis.

Capital goods, TDR/JDA, FSI, long term lease (premiums) shall be excluded to compute the above mentioned 80%

Tax on capital goods purchased from unregistered persons shall be paid under RCM at applicable rates.

Q7: What are the treatments of TDR/FSI and long term lease for projects commencing on or after 01.04.2019?

A7: Supply of TDR, FSI, long term lease (premium) of land by a landowner to a developer shall be exempted subject to the condition that the constructed flats are sold before issuance of completion certificate and tax is paid on them. Exemption of TDR, FSI, long term lease (premium) shall be withdrawn in case of flats sold after issue of completion certificate, but such withdrawal shall be limited to 1% of value in case of affordable houses and 5% of value in case of other than affordable houses. This will achieve a fair degree of taxation parity between under construction and ready to move property.

The liability to pay tax on TDR, FSI, long term lease (premium) shall be shifted from land owner to builder under the reverse charge mechanism (RCM).

The date on which builder shall be liable to pay tax on TDR, FSI, long term lease.

(Premium) of land under RCM in respect of flats sold after completion certificate is the date of issue of completion certificate.

The liability of builder to pay tax on construction of houses given to land owner in a JDA is also being shifted to the date of completion.

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Important Things To Remember This March ending!

इस मार्च अंत को याद करने के लिए महत्वपूर्ण बातें!

Arjun (Fictional Character): Krishna, the financial year 2018-19 is about to end, and the new financial year is about to start. During the year many changes were made in GST. So now in March 2019, what precautions the taxpayer needs to take in respect of GST?

Krishna (Fictional Character): Arjun, This financial year was an important one. Many important changes were brought in GST this year. Soon, taxpayers would be filing their Annual return and getting their accounts audited. This would be the first time taxpayers would file annual return and also their last chance to rectify mistakes if any in FY 2017-18. So, as March end approaches the taxpayers should reconcile their books with returns.

Arjun: Krishna, what are points on which the taxpayers need to pay attention at the end of financial year?

Krishna: Arjun,

1. Amendments/ rectification: One should note that the return for March 2019 is the last chance to amend or rectify mistakes done, or things omitted in GSTR-1 or GSTR 3-B return for FY 17-18.

So, The taxpayers should reconcile their books of accounts and returns uploaded and adjust their differences in March GSTR-3B. Also, if any mistake is made in GSTR-1, like B2C shown as B2B, or wrong GSTIN uploaded, invoices omitted to be uploaded etc. can be amended.

2. Last chance to Avail pending Input tax credit-  The taxpayer should reconcile their Input tax credit as reflected in GSTR 2-A with GSTR 3B filed by them and also books of accounts.

Taxpayers should also take supplier follow up for the invoices not uploaded by them, as ITC cannot be taken by taxpayer if the same is not auto populatedin GSTR 2A.

3. Return ITC-04 in relation to jobwork- Taxpayers should ensure that they have filed ITC-04 for all quarters from July 17 to December 18, giving details of goods sent to jobworker and goods received from jobworker.

4. TDS returns- TDS deductors should file TDS returns from October 18 to February 19, so that the counterparty can receive TDS credit before filing their last GST 3B of FY 18-19.

5. TDS credit- Taxpayers should accept the TDS credit as reflected on GST portal on monthly basis so that the amount of TDS deducted can be credited to the cash ledger.

6. Letter of Undertaking (LUT) - All the exporters who make exports without paying tax under LUT should apply for LUT for FY 19-20.

7. Opting for Composition Scheme – The taxpayer must also workout whether he wants to convert to Composition scheme (Limit is Rs. 1.5 Cr. Now) from FY 19-20.

Arjun: Krishna, what other things should the taxpayer keep in mind before 31^st March 2019?

Krishna: Arjun, following are the things to keep in mind-

• In Income tax, 31^st March is the last date to file belated return for FY. 17-18.
• 31^st March is the last date for filing Revised returns for FY. 16-17/17-18.
• Aadhaar-PAN linking is now mandatory for the PAN holders requiring filing of Income Tax Return. The last date to link Aadhaar number and PAN is 31.03.2019.
• If deduction u/s 80 is to be claimed in Income tax, then every taxpayer should verify the limits of Income tax and their tax liability and should invest, donate, etc. before 31^st March 2019.
• If Taxpayers have not paid Advance tax before 15^th March then it should be paid before 31^stMarch so that less interest will be levied.
• Last date to file Professional tax return for FY 18-19 is 31^st March 2019.

Arjun: Krishna, What lesson the taxpayer should take from this?

Krishna: Arjun, All the taxpayers should complete their pending work before 31^st march. The taxpayers, who are liable to make payment, should do the payment on time. Everyone should follow the correct tax system from this new financial year. So, pay the tax as per provisions of the Act. Otherwise taxpayers will have to face consequences in the future.

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ITR फाइलिंग के क्या लाभ हैं?

आईटीआर फाइलिंग के कई लाभ हैं जिनके पास कर देयता है, लेकिन आप सोच रहे होंगे कि किसी व्यक्ति को आयकर रिटर्न क्यों दाखिल करना चाहिए जब उनकी आय छूट सीमा से कम हो? यहाँ कारण हैं: -

टैक्स रिफंड का दावा

ऐसी संभावनाएं हैं कि, टीडीएस को व्यक्ति के नाम पर किए गए कुछ निवेश पर काट लिया गया है, तो करदाता को कर वापसी का लाभ उठाने के लिए आयकर रिटर्न दाखिल करना आवश्यक है।

ऋण के लिए आवेदन करते समय लाभकारी

यदि आप ऋण के लिए आवेदन करने की योजना बना रहे हैं, तो पात्रता और ऋण की मात्रा आपकी आय पर निर्भर करेगी, जिसका पता आपके आयकर रिटर्न से लगाया जा सकता है। आयकर रिटर्न अधिकारियों को प्रासंगिक वित्तीय वर्ष के लिए आय के खिलाफ भुगतान की गई कुल आय और कुल करों की स्पष्ट तस्वीर प्रदान करता है।

आप नुकसान को आगे बढ़ा सकते हैं

आयकर नियमों के अनुसार, जिन लोगों ने संबंधित आकलन वर्ष के लिए आयकर रिटर्न ई-फाइल किया है, वे पूंजीगत लाभ के खिलाफ उन्हें निर्धारित करने के लिए आगे के नुकसान उठाने के पात्र हैं। ऐसी संभावनाएं हैं कि आपको एक वर्ष के लिए नुकसान हो सकता है। ऐसी स्थिति में, आप ई-फाइलिंग इनकम टैक्स रिटर्न भर कर हानि को आगे ले जा सकते हैं, यदि आपके पास छूट सीमा से कम आय है।

इसके अलावा, नागरिकों को हमेशा प्रासंगिक वित्तीय वर्ष के लिए आयकर रिटर्न दाखिल करने की सिफारिश की जाती है, भले ही व्यक्ति को छूट सीमा से कम आय हो, क्योंकि यह भारत में आपकी आय का एकमात्र प्रमाण है।

Contact us- 8545873214

sagzp73@gmail.com

What are the benefits of ITR Filing?

There are several benefits of ITR filing for those who have tax liability, but you must be wondering why an individual should file Income Tax Return when their income is below the exempt limit? Here are the reasons why: –

Claiming Tax Refund

There are chances that, the TDS has been deducted on some investment made under the name of the individual, then the taxpayer is required to file Income Tax Return, in order to avail the tax refund.

Beneficial while applying for Loans

If you are planning to apply for loan, then the eligibility and the quantum of loan will depend on your income, which can be traced by your Income Tax Return. Income Tax Return provides the authorities a clear picture of the total income earned and total taxes paid against the income for the relevant Financial Year.

You can carry-forward losses

As per the Income Tax Rules, only those who have e-filed the Income Tax Return for the relevant assessment year are eligible to carry forward losses to set them off against capital gains. There are possibilities that you may have incurred losses for a year. In such a situation, you cannot shy-away from e-filing Income Tax Return, if you have an income below the exemption limit.

Moreover, it is always recommended for the citizens to file their Income Tax Return for the relevant Financial Year even when the individual has income below the exemption limit, as it the only proof of your Income in India.

Contact us-8545873214

Email-sagzp73@gmail.com

जीएसटी मोटर व्हीकल्स पर इनपुट क्रेडिट – एक वस्तुस्तिथि CA Sudhir Halakhandi

कार , स्कूटर्स , मोटर साइकल्स इत्यादि यदि आप अपने व्यवसाय के लिए खरीदते हैं या उनकी मरम्मत कराते हैं , टायर बदलवाते हैं और इस पर जीएसटी का भुगतान करते हैं तो क्या आप इसकी इनपुट क्रेडिट ले सकते हैं क्या ? यह सवाल कई बार पूछा जाता रहा है तो आइये आज इस सम्बन्ध में वस्तुस्तिथी क्या है आपके इस सवाल का जीएसटी कानून में क्या जवाब है आइये देखें .

जीएसटी जब से लागू हुआ है एक सवाल हमेशा डीलर्स के मन में रहता है कि वो अपने व्यवसाय में काम में लेने के लिए जो वाहन खरीदते हैं चाहे वे माल  वाहन हो या कार , स्कूटर या कोई और वाहन इत्यादि हो उनकी खरीद पर जो जीएसटी का भुगतान वे करते हैं क्या उसकी क्रेडिट उन्हें मिलेगी या नहीं . इसके अतिरिक्त इन वाहनों के लिए जो भी मरम्मत होती है , स्पेयर लगते हैं जैसे टायर, पार्ट्स  इत्यादि  या इन्शुरन्स करवाते हैं उसपर भी जीएसटी लगता है तो उसकी क्रेडिट मिलती है क्या ? यदि इनमें से कुछ की क्रेडिट नहीं मिलती है तो क्यों नहीं मिलती है और इस सम्बन्ध में कानून की वस्तुस्तिथी क्या हैं . ये सवाल जब से जीएसटी भारत में लगा है लगातार पूछा जाता रहा है तो आइये आज इस सम्बन्ध में वस्तुस्तिथी क्या हैं इसका अध्ययन करतें हैं और ये भी देखेंगे कि दिनांक 1 फरवरी 2019 से इसमें कोई परिवर्तन हुआ है क्या ?

वैसे आपकी जानकारी के लिए प्रारम्भ में ही बता दें कि व्यवहारिक रूप से अधिकांश  एवं सामान्य मामलों में यात्री वाहनों पर यह क्रेडिट नहीं मिलती है इसलिए इस लेख से आप कोई बहुत अच्छी खबर का इन्तजार नहीं करें . यह लेख इसलिए लिखा जा रहा है ताकि आपका कोई भ्रम इस सम्बन्ध में हो तो वह दूर हो जाए और यह भी मालूम हो जाए कि 1 फरवरी 2019 से भी स्तिथी बहुत अधिक आपके पक्ष में नहीं गई है.

हाँ ध्यान रखें कि  माल वाहनों के सम्बन्ध में पहले भी कोई क्रेडिट ब्लॉक्ड नहीं थी और उनकी स्तिथी यथावत बनी रहेगी और उन्हें यह क्रेडिट जो माल वाहनों के खरीद और उन पर होने वाले  खर्च पर मिलती थी मिलती रहेगी .

1. पेसेंजर कार , स्कूटर इत्यादि

देखिये व्यवहारिक रूप से पेसेंजेर कार , स्कूटर , मोटरसाइकिल या कोई भी वाहन जो यात्री वाहन हो अर्थात माल वाहन नहीं है  इत्यादि की खरीद पर लगने वाले जीएसटी की कोई क्रेडिट आपको नहीं मिलेगी चाहे आपने ये वाहन अपने व्यवसाय में काम में लेने के लिए ही क्यों नहीं ख़रीदे हों.

इसी प्रकार से जो भी मरम्मत होती है , स्पेयर लगते हैं जैसे टायर, पार्ट्स  इत्यादि  या इन्शुरन्स करवाते हैं उसपर भी जीएसटी लगता है तो उसकी क्रेडिट भी आपको नहीं मिलेगी .

आप जो कार,  स्कूटर , मोटरसाइकिल इत्यादि मोटर व्हीकल या अन्य यात्री वाहन  खरीदते हैं उनके सम्बन्ध में भी यही नियम है अर्थात उन पर भी आप द्वारा चुकाए हुए जीएसटी की इनपुट क्रेडिट नहीं मिलती हैं ना ही उनके स्पेयर पार्ट्स , टायर ट्यूब इत्यादि की खरीद एवं इन्शुरन्स पर चुकाए गए जीएसटी की इनपुट क्रेडिट मिलती है .

यह पढ़कर आपको निराशा जरुर होगी लेकिन जीएसटी का सामान्य और प्रारम्भ अर्थात 1 जुलाई 2017 से ही  नियम यही है . अब आप पुछेंगे कि इसका क्या कारण है कि ये सब खर्चे एवं खरीद व्यापार के दौरान किये जा रहे हैं फिर भी इनकी कोई इनपुट क्रेडिट क्यों नहीं मिलती है ? इसके पीछे तर्क क्या है ?

इसका जवाब यह है कि ये खर्च एवं खरीद जीएसटी कानून की धारा 17 (5) के तहत ब्लॉक्ड क्रेडिट की श्रेणी में लिए गए हैं  इसलिए हम इनकी क्रेडिट क्लेम नहीं कर सकते हैं लेकिन आपका एक सवाल यह भी है कि इसके पीछे तर्क क्या है तो इसका जवाब कोई नहीं है सिर्फ कानून निर्माताओं ने इसे “ब्लॉक्ड क्रेडिट” की श्रेणी में डाल दिया है इसलिए इस इनकी खरीद पर  यह क्रेडिट नहीं मिलती है और इसी कारण से इनके स्पेयर पार्ट्स, टायर ट्यूब , मरम्मत इत्यादि पर किये खर्चे की इनपुट क्रेडिट भी नहीं मिलती है.

क्या 1 फरवरी 2019 से इस व्यवस्था में कोई परिवर्तन आया है ?

हाँ लेकिन बहुत अधिक नहीं और आपमें से अधिकाँश डीलर्स पर वह व्यवहारिक रूप से लागू नहीं होगा. अब 1 फरवरी 2019 से किया यह गया है कि 13 से अधिक सिटिंग कैपेसिटी (ड्राईवर सहित ) के यात्री वाहनों पर यह “ब्लॉक्ड क्रेडिट” का  नियम लागू नहीं होगा और उनकी खरीद एवं खर्च पर चुकाए जीएसटी की क्रेडिट मिल जायेगी यदि वे वाहन व्यापार या व्यवसाय में काम आ रहें हों . लेकिन व्यवहारिक रूप से आप स्वयं समझते हैं कि 13 से   अधिक सिटिंग कैपेसिटी के वाहनों का कितना प्रयोग आप अपने व्यापार में कर पाते हैं . इसके अतिरिक्त यह भी समझ ले कि यात्री वाहन की कैपेसिटी (ड्राईवर) सहित यदि 13 है या इससे कम है तो यह क्रेडिट नहीं मिलेगी.

हाँ एक बात 1 फरवरी 2019 से एक परिवर्तन और हुआ है और वह यह है कि पहले यात्री मोटर व्हीकल्स के अन्य यात्री वाहन इस ब्लॉक्ड क्रेडिट में जुडे थे लेकिन अब केवल मोटर व्हीकल्स अर्थात कार, स्कूटर , मोटर साइकिल इत्यादि पर ही यह ब्लॉक्ड क्रेडिट का नियम लागू होगा लेकिन व्यवहारिक रूप से इसका कोई बड़ा फर्क नहीं पडेगा.

अब आप यह भी पूछ सकते हैं कि अब  13 से अधिक  पेसेंजेर कैपेसिटी  की गाड़ियों पर इनपुट 1 फरवरी से प्रारम्भ करने के पीछे क्या तर्क है तो यह कानून में लिखा है और इसके पीछे क्या कानून निर्माताओं का तर्क है यह स्पष्ट नहीं है. एक संभावना यह हो सकती है कि सामान्य यात्री वाहन के व्यक्तिगत उपयोग (व्यवसाय के अलावा) काम में आने की संभावना रहती है और इसे किसी पैमाने पर नापा नहीं जा सकता है लेकिन इसके लिए पूरी ही क्रेडिट ब्लाक करने का तर्क समझ नहीं आता है .

आप स्वयम ही सोचिये क्या वाहन , बिल्डिंग ( व्यापार में काम आने वाले बिल्डिंग चाहे वह ऑफिस या फैक्ट्री बिल्डिंग ही क्यों ना हो के  बनाने पर भी लगे मटेरियल एवं सेवाओं पर क्रेडिट नहीं मिलती है ) के बिना वह व्यापार या व्यवसाय हो सकता है जिससे सरकार जीएसटी वसूलना चाहती है ? और विशेष बात तो यह है कि ये बिल्डिंग्स तो कभी व्यापार के अतिरिक्त किसी और काम में आ भी नहीं सकती तो कुल मिला कर अर्थ यह है कि जीएसटी कानून में आप अब तार्किकता देखना छोड़ ही दें तो ठीक रहेगा.

इसके अतिरिक्त 1 फरवरी से जो परिवर्तन लागू हुए हैं उनमें इस प्रकार से जिन यात्री वाहनों पर इनपुट क्रेडिट ब्लॉक की गई है उनपर सर्विस, इन्सुरांस एवं मरम्मत और रख रखाव पर भी दिए गए जीसटी की इनपुट क्रेडिट पर भी  स्पष्ट रूप से प्रतिबन्ध लगा दिया है और इससे एक सवाल और उठता है कि क्या इसके पहले अर्थात 1 जुलाई से इस परिवर्तन तक क्या सर्विस इत्यादि पर यह क्रेडिट ली जा सकती है तो इस सम्बन्ध में प्रारम्भ से ही एक विवाद रहा है और विशेषज्ञों का एक मत था इसे प्राप्त नहीं किया जा सकता है लेकिन इसके विपरीत मत भी थे और प्रारम्भिक जो सरकारी स्पष्टीकरण आये उनमें स्थायित्व नहीं था और इससे और भी भ्रम उत्पन्न हुआ था लेकिन अब लगता है सरकार की मंशा इसे प्रारम्भ से ही  ब्लाक करने की ही थी लेकिन इस सम्बन्ध में विवाद था इसलिए अब इसे और भी अधिक स्पष्ट तरीके से कानून में लिख दिया गया है .   

क्या नियम का कोई अपवाद भी हैं ?

हाँ , यदि ये यात्री वाहन (ड्राईवर सहित 13 यात्री कैपेसिटी तक)  निम्नलिखित कार्यों से प्रयोग हो रहें हैं तो इस “ब्लॉक्ड क्रेडिट” के नियम से बाहर रहेंगे और इनकी खरीद एवं अन्य खर्च पर आपको चुकाए गए जीएसटी की इनपुट क्रेडिट मिल जायेगी :-

1. इन वाहनों को कर योग्य बिक्री करने के लिए खरीदा जाता है .

2. इन वाहनों का प्रयोग यात्रियों को लाने ले जाने की करयोग्य सेवा देने हेतु  किया जाता है .

3. इन वाहनों का प्रयोग इन्हें चलाने की ट्रेनिंग देने की करयोग्य सेवा देने हेतु किया जाता है .

एक और मुख्य बात ध्यान में रखें कि 1 फरवरी 2019 से पूर्व यात्री वाहन यदि माल के लाने –ले जाने में काम आते थे तो उनकी एवं उनपर किये गए खर्च पर चुकाए गए जीएसटी की इनपुट क्रेडिट मिल सकती थी लेकिन अब 1 फरवरी 2019 से इस सम्बन्ध में स्तिथी अलग हो गई है और अब यात्री वाहन जिनपर इनपुट क्रेडिट ब्लॉक कर दी गई है वे यदि माल के लाने –लेजाने के काम आते हैं तो भी उनकी खरीद एवं खर्च पर चुकाए हुए जीएसटी की क्रेडिट नहीं मिलेगी. अब आपको यह ध्यान रखना पडेगा कि माल के लाने –लेजाने के लिए यदि आप इनकी खरीद एवं खर्च पर जीएसटी की क्रेडिट लेनी है तो आप यात्री वाहन की जगह माल वाहन ही खरीदें और यदि आप यात्री वाहन का प्रयोग माल वाहक के रूप में करते हैं तो आपको इनपुट क्रेडिट नहीं मिलेगी.

माल वाहक के सम्बन्ध में इनपुट क्रेडिट

माल वाहक वाहनों पर “ब्लॉक्ड क्रेडिट” का नियम लागू नहीं होता है और इनकी खरीद पर एवं इनपर किये गए खर्च पर चुकाए हुए जीएसटी की क्रेडिट मिलती हैं और इसमें किसी भी प्रकार का विवाद नहीं हैं.

आइये अब देखें कि कारों , स्कूटर इत्यादि पर  इस प्रकार से इनपुट क्रेडिट को ब्लाक करना तार्किक हैं क्या ? तो इसका जवाब यह है कि ऐसा नहीं हैं ना तो इसके बिना व्यापार एवं व्यवसाय किया जा सकता है ना ही मरम्मत एवं स्पेयेर्स के बिना इन्हें चलाया जा सकता है इसलिए यह रोक उचित नहीं हैं लेकिन कानून में यह रोक दी हुई है इसलिए आपको इस समय तो यह छूट नहीं मिल सकती है .

नोट :- इस लेख में दिए विचार लेखक के अपने विचार है .(CA Sudhir Halakhandi)

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अंतरिम बजट 2019-20 की प्रमुख झलकियाँ The key highlights of the Interim Budget 2019-20

The key highlights of the Interim Budget 2019-20 presented by the Union Minister for Finance, Corporate Affairs, Railways & Coal, Shri Piyush Goyal in Parliament today are as follows:

New Announcements

Farmers

• 12 crore small and marginal farmers to be provided with assured yearly income of Rs. 6000 per annum under PM-KISAN
• - Outlay of Rs. 75,000 crore for FY 2019-20 with additional Rs. 20,000 crore in RE 2018-19
• Outlay for Rashtriya Gokul mission increased to Rs 750 crore
• Rashtriya Kamdhenu Ayog to be setup for sustainable genetic up-gradation of the Cow resources
• New separate Department of Fisheries for welfare of 1.5 crore fishermen
• 2% interest subvention to Farmers for Animal husbandry and Fisheries activities; additional 3% in case of timely repayment.
• Interest subvention of 2% during disaster will now be provided for the entire period of reschedulement of loan

Labour

• Pradhan Mantri Shram Yogi Maandhan scheme to ensure fixed monthly pension to 10 crore unorganized sector workers
• - Rs 3000 per month after 60 years of age with an affordable contribution of only Rs 100/55 per month

Health

22nd AIIMS to be setup in Haryana

MGNREGA

Rs. 60, 000 crore allocation for MGNREGA in BE 2019-20

Direct Tax proposals

• Rebate on Income upto Rs. 5 lakh
• More than Rs. 23,000 crore tax relief to 3 crore middle class taxpayers
• Standard Deduction to be raised to Rs. 50,000 from Rs. 40,000
• TDS threshold to be raised from Rs. 10,000 to Rs. 40,000 on interest earned on bank/post office deposits
• Existing rates of income tax to continue
• Tax exempted on notional rent on a second self-occupied house
• Housing and real estate sector to get boost-
• - TDS threshold for deduction of tax on rent to be increased from Rs. 1,80,000 to Rs. 2,40,000
  - Benefit of rollover of capital gains increased from investment in one residential house to two residential houses for capital gains up to Rs. 2 crore.
  - Tax benefits for affordable housing extended till 31st March, 2020 under Section 80-IBA of Income Tax Act
  - Tax exemption period on notional rent, on unsold inventories, extended from one year to two years

Fiscal Programme

• Fiscal deficit pegged at 3.4% of GDP for 2019-20
• - Target of 3% of fiscal deficit to be achieved by 2020-21.
• Fiscal deficit brought down to 3.4% in 2018-19 RE from almost 6% seven years ago
• Total expenditure increased by over 13% to Rs.27,84,200 crore in 2019-20 BE
• Capital Expenditure for 2019-20 BE estimated at Rs. 3,36,292 crore
• Centrally Sponsored Schemes (CSS) allocation increased to Rs. 3,27,679 crore in BE 2019-20
• National Education Mission allocation increased by about 20% to Rs. 38,572 crore in BE 2019-20
• Allocation for Integrated Child Development Scheme (ICDS) increased by over 18% to Rs. 27,584 crore in BE 2019-20
• Substantial increase in allocation for the Scheduled Castes and Scheduled Tribes -
• - Allocation for SCs increased by 35.6% - from Rs. 56,619 crore in BE 2018-19 to Rs. 76,801 crore in BE for 2019-20
  - Allocation for the STs increased by 28% - from 39,135 crore in BE 2018-19 to Rs. 50,086 crore in 2019-20 BE
• Government confident of achieving the disinvestment target of 80,000 crore
• Focus now on debt consolidation along with fiscal deficit consolidation programme

Poor and Backward Classes

• 'First right on the resources of country is that of the poor': FM
• 25% additional seats in educational institutions to meet the 10% reservation for the poor
• Targeted expenditure to bridge urban-rural divide & to improve quality of life in villages
• All willing households to be provided electricity connections by March 2019

North East

• Allocation to be increased by 21% to Rs. 58,166 crore in 2019-20 BE over 2018-19 BE
• Arunachal Pradesh came on the air map recently
• Meghalaya, Tripura and Mizoram came on India's rail map for the first time
• Container cargo movement through improved navigation capacity of the Brahmaputra

Vulnerable sections

• A new committee under NITI Ayog to identify all the remaining De-notified nomadic and semi-Nomadic tribes.
• New Welfare development Board under Ministry of social justice and empowerment for development and welfare of De-notified nomadic and semi nomadic tribes

Defence

Defence budget to cross Rs 3,00,000 crore for the first time ever

Railways

• Capital support of Rs.64,587 crore proposed in 2019-20 (BE) from the budget
• Overall capital expenditure programme to be of Rs. 1,58,658 crore
• Operating Ratio expected to improve from 98.4% in 2017-18

to 96.2% in 2018-19 (RE) and
to 95% in 2019- 20 (BE)

Entertainment Industry

• Indian filmmakers to get access to Single window clearance as well for ease of shooting films
• Regulatory provisions to rely more on self-declaration
• To introduce anti-camcording provisions in the Cinematograph Act to control piracy

MSME and Traders

• 2% interest subvention on an incremental loan of Rs 1 crore for GST registered SMEs
• Atleast 3% of the 25% sourcing for the Government undertakings will be from women owned SMEs
• Renewed Focus on Internal trade ; DIPP renamed to Department for Promotion of Industries and Internal trade

Digital Villages

The Government to make 1 lakh villages into Digital Villages over next five years

Other Announcement(s)

• New National Artificial Intelligence portal to support National Program on Artificial Intelligence
• Achievements during 2014-19

State of the Economy

• India universally recognized as a bright spot of the global economy during last five years
• 'Country witnessed its best phase of macro-economic stability during 2014-19', says FM
• India is now the 6th largest economy in the world from being the 11thlargest in 2013-14
• Annual average GDP growth during 2014-19 higher than any government since 1991
• Government has broken inflation's back from backbreaking inflation during 2009-14: FM
• Average inflation down to 4.6%, lower than during any other Government
• Inflation in December 2018 down to 2.19% only
• Fiscal deficit down to 3.4% in 2018-19 RE from the high of almost 6% seven years ago
• CAD likely to be only 2.5% of GDP this year against a high of 5.6% six years ago
• India attracted massive amount of FDI, worth $239 billion, during the last 5 years
• 'India is solidly back on track and marching towards growth and prosperity', says FM
• India becomes the fastest growing major economy in the world
• Double-digit inflation contained and fiscal balance restored
• Liberalization of FDI policy, allowing most FDI to come through the automatic route

Farmers

• Assured MSP of minimum 50% to all 22 crops
• Interest subvention doubled in last 5 years
• Soil Health card, Neem coated Urea game changer in farm sector

Labor

• Employment opportunities expanded ; EPFO membership increased by 2 crore
• Minimum income for every category of workers increased by 42% in last 5 years

Poor and Backward Classes

• 10% reservation for the poor in educational institutions and government jobs
• Free electricity connection to every household under Saubhagya Yojana
• World's largest healthcare programme, Ayushman Bharat, for nearly 50 crore people
• Aspirational Districts Programme for development in 115 most backward districts
• Rs. 1,70,000 crore spent during 2018-19 for cheaper food grains to poor and middle class
• 143 crore LED bulbs provided in mission mode with the cooperation of private sector
• Poor & middle class are saving Rs. 50, 000 crore p.a. in electricity bills due to LED bulbs
• 10 lakh patients benefited from free treatment under Ayushman Bharat
• Jan Aushadhi Kendras providing medicines at affordable prices to poor and middle class
• 14 out of 21 AIIIMS operating presently have been announced since 2014
• Government tripled rural roads' construction under the PMGSY
• 15.80 lakh habitations out of 17.84 lakh connected with pucca roads
• Rs. 19,000 crore for PMGSY in BE 2019-20 against Rs. 15,500 crore in RE 2018-19
• 1.53 crore houses built under PM Awas Yojana during the 2014-18

Women development to women leddevelopment

• 6 crore free LPG gas connections provided under Ujjwala Yojna ; All 8 crore by next year
• 70% of MUDRA Loan availed by Women
• Maternity leave extended to 26 weeks
• Financial support for pregnant women under Pradhan Mantri Matru Vandana

Youth

• Over one crore youth trained under Pradhan Mantri Kaushal Vikash Yojana
• Self-employment boost through MUDRA, STAND-UP and START-UP India

MSME and Traders

• Up-to Rs 1 crore loans can be availed in less than an hour
• 25%-28% is the average savings due to GeM (Government e-Market place)

Income Tax

• Tax collections nearly doubled in five years- from Rs. 6.38 Lakh crore in 2013-14 to almost Rs. 12 lakh crore this year
• 80% growth in tax base- from 3.79 crore to 6.85 crore in five years
• Tax administration streamlined- Last year, 99.54% of the income-tax returns accepted as were filed
• Technology intensive project approved to improve assessee friendliness –In two years, returns to be processed in 24 hours and refunds issued simultaneously
• Earlier benefits given to middle class-
• - Basic exemption limit increased from Rs. 2 lakh to Rs. 2.5 lakh
  - Tax rate reduced from 10% to 5% for the tax slab of Rs. 2.5 lakh to Rs. 5 lakh
  - Standard deduction of Rs. 40,000 introduced for the salaried class
  - Deduction of savings under section 80C increased from Rs. 1 lakh to Rs. 1.5 lakh
  - Deduction of interest for self-occupied house property raised from Rs. 1.5 lakh to Rs. 2 lakh

• Special benefits and incentives already given to small businesses and startups-
• - Overall compliance processes simplified.
  - Threshold for presumptive taxation of business raised from Rs. 1 crore to Rs. 2 crore
  - Benefit of presumptive taxation extended for the first time to small professionals fixing threshold limit at Rs. 50 lakh
  - Presumptive profit rate reduced from 8% to 6% to promote a less cash economy
  - Tax rate for about 99% companies reduced to 25%

GST

• GST made India a common market
• GST led to increased tax base, higher collections and ease of trade
• Inter-state movements now faster, more efficient, and hassle free
• Responsive and sensitive reduction of tax rates - Most items of daily use now in the 0% or 5% tax slab
• Relieving the businesses and service providers-
• - Exemptions from GST for small businesses doubled from Rs. 20 lakh to Rs. 40 lakh
  - Small businesses having turnover up to Rs. 1.5 crore pay only 1% flat rate and file one annual return only
  - Small service providers with turnover upto Rs.50 lakhs can opt for composition scheme and pay GST at 6% instead of 18%
  - Soon, businesses comprising over 90% of GST payers to be allowed to file quarterly return
• Encouraging GST revenue trends - The average monthly tax collection in the current year is Rs. 97,100 crore per month as compared to Rs. 89,700 crore per month in the first year

Infrastructure

Civil Aviation - UDAN Scheme

• Number of Operational Airports crossed 100
• Latest: Pakyong airport in Sikkim
• Domestic Passenger traffic doubled in last 5 years

Roads

• India is the fastest highway developer in the world
• 27 kms of highways built each day
• Stuck projects completed - Eastern Peripheral Highway around Delhi

- Bogibeel rail-cum-road bridge in Assam and Arunachal Pradesh

Waterways

• Flagship programme of Sagarmala along the coastal areas
• For first time, container freight movement started on Kolkata to Varanasi inland waterways

Railways

• 'Safest year' for railways in its history
• All Unmanned Level Crossings on broad gauge network eliminated.
• Semi high-speed "Vande Bharat Express" introduced - first indigenously developed and manufactured

Climate Change

International Solar Alliance

• To promote renewable energy
• First treaty based international inter-governmental organization headquartered in India
• Installed solar generation capacity grown over ten times in last five years
• Now creating lakhs of new age jobs

Digital India Revolution

• More than 3 lakh Common Service Centres (CSCs) exist to deliver services to the citizens
• India now leading the world in the consumption of mobile data
• Monthly consumption of mobile data increased by over 50 times in the last five years
• Under Make in India, mobile and parts manufacturing companies increased from 2 to more than 268 providing huge job opportunities

Jan Dhan-Aadhaar-Mobile (JAM) and Direct Benefit Transfer

• In the last five years, nearly 34 crore Jan Dhan bank accounts opened
• Aadhaar now near universally implemented
• Ensure the poor and middle class receive the benefits of Government schemes directly in their bank accounts by eliminating middlemen

Customs and trading across borders

• Customs duties on 36 capital goods abolished
• Digitization of import and export transactions
• RFID technology to improve logistics

Steps against corruption

• Government walked the talk on corruption and ushered in a new era of transparency: FM
• RERA and Benami Transaction (Prohibition) Act have brought transparency in real estate
• The Fugitive Economic Offenders Act, 2018 to help confiscate economic offenders
• Government conducted transparent auction of natural resources such as coal & spectrum

Drive against Black money

• Undisclosed income of about Rs 1,30,000 crore brought under tax through initiatives like Black money Law, Fugitive Criminal offenders Act, Demonetisation etc.
• Benami assets worth Rs 6,900 crore have been attached
• 18% growth in Direct tax

Banking Reforms and Insolvency and Bankruptcy Code (IBC)

• The IBC has institutionalized a resolution-friendly mechanism
• Government has stopped the culture of “phone banking': FM
• Government adopted 4Rs approach of recognition, resolution, re-capitalization & reforms
• Government has implemented measures to ensure ' Clean Banking'
• Government has already recovered Rs. 3 lakh crore in favor of banks and creditors
• Government has invested Rs. 2.6 lakh crore for recapitalization of public sector banks

Cleanliness

• Government launched Swachh Bharat Mission as a tribute to 150 years of Gandhi Ji
• FM thanks 130 crore Indians for translating Swachh Bharat into a national revolution
• India has achieved 98% rural sanitation coverage
• 5.45 lakh villages have been declared "Open Defecation Free"

Defence

• OROP under implementation in full spirit with Rs 35,000 crore already disbursed
• Military pay service hiked

Other achievements

• Government put a stop to questionable practices of hiding high NPAs
• Swachh Bharat Mission as the world's largest behavioral change movement

Key message in the Interim Budget 2019-20

Moving towards realizing a ' New India' by 2022 -

• Clean and healthy India with universal access to toilets, water and electricity to all
• An India where Farmers' income would have doubled
• Ample opportunities to youth and women to fulfill their dreams
• An India free from terrorism, communalism, casteism, corruption and nepotism

Vision for the next Decade

• Foundation for India's growth and development laid in the past 5 years
• Poised to become a Five Trillion Dollar Economy in the next five years
• Aspire to become a Ten Trillion Dollar Economy in the next 8 years thereafter

Ten dimensions of Vision for India of 2030

India would be a modern, technology driven, high growth, equitable and transparent society

• To build physical as well as social infrastructure and to provide ease of living
• To create a Digital India, digitize government processes with leaders from youth
• Making India pollution free by leading transport revolution with Electric Vehicles and focus on Renewables
• Expanding rural industrialisation using modern digital technologies to generate massive employment
• Clean Rivers, safe drinking water to all Indians and efficient use of water through micro-irrigation
• Besides scaling up of Sagarmala, Coastline and Ocean waters powering India's development and growth
• Aim at our space programme - Gaganyaan, India becoming the launch-pad of satellites for the World and placing an Indian astronaut into space by 2022
• Making India self-sufficient in food, exporting to the world to meet their food needs and producing food in the most organic way
• A healthy India via Ayushman Bharat with women having equal rights and concern for their safety and empowerment
• Transforming India into a Minimum Government Maximum Governance nation with pro-active and responsible bureaucracy

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