Reference: Central Board of Indirect Taxes and Customs
Update:
Additional amount charged on delayed payment by customers for securities acquired by stock broker is liable to GST
Indo Thai Securities Ltd., In re-[2019] 111 taxmann.com 104 (AAR – MADHYA PRADESH)
The applicant is a registered stock broker, dealing in purchase/sale of securities on behalf of its clients for which it charges brokerage. It charges interest, late fee or penalty from customers for delayed payment. It has sought an advance ruling to determine taxability of such additional amount charged from customers under GST.
The Authority for Advance Rulings, Madhya Pradesh observed that the applicant recovers from its customers both brokerage and securities amount purchased by it. The additional amount on delayed payment which is termed as interest, late fee or penalty is charged on the entire amount including amount of securities and, hence, cannot be bifurcated. Therefore, additional amount does not have its own classification and is to be treated as a part of stock broking services.
The services of extending deposits, loans or advances where consideration is by way of interest or discount has been exempted from GST. Interest is charged on specific percentage basis either daily, monthly or some periodic basis. However, in the given case, the additional amount charged on delayed payment is in the nature of penalty for those payments which the customer fails to make within the stipulated time frame. Thus, such additional amount charged cannot be qualified as interest and is leviable to GST.
The Authority for Advance Rulings, Madhya Pradesh held that additional amount charged on delayed payment for securities purchased by the applicant is classified under stock broking services, liable to GST.
Update:
GSTN Workshop on New Return (Trial) for Stakeholders:
GSTN has released trial version of the New Returns (Trial) Offline Tool of Form GST ANX-1, Form GST ANX-2 (with Matching Tool built in it) and a template for Purchase Register to be used to import data from purchase register for matching. The purpose behind release of GST New Return Offline Tool on trial basis is to enable familiarization of stakeholders with tool’s functionalities and to get their feedback/suggestions to improve the tool further, before its actual deployment. GSTN has also provided online version of GST ANX-1 and GST ANX-2 on its portal, for the taxpayers to try it out.
Reference: Reserve Bank of India
Update:
Nesargi Urban Co-operative Bank Limited, Karnataka – Penalised:
RBI has imposed a monetary penalty of Rs. 20,000 on Nesargi Urban Co-operative Bank Limited, Nesargi, for non-submission of the returns under Section 27(2) of the Banking Regulation Act, 1949 (AACS).
Implication:
The banks will comply requirement of filing returns under Banking Regulation Act 1949 to avoid further penalties.
Update:
Krishna Pattana Sahakar Bank Niyamitha, Karnataka – Penalised:
RBI has imposed a monetary penalty of Rs. 40,000 on Nesargi Urban Co-operative Bank Limited, Nesargi, for non-submission of the returns under Section 27(2) of the Banking Regulation Act, 1949 (AACS).
Implication:
The banks will comply requirement of filing returns under Banking Regulation Act 1949 to avoid further penalties.
Update:
Ron Taluka Primary Teachers\’ Co-operative Credit Bank Limited, Ron, Karnataka– Penalised:
RBI has imposed a monetary penalty of Rs. 20,000 on Ron Taluka Primary Teachers\’ Co-operative Credit Bank Limited, Ron, Karnataka, for non-submission of the returns under Section 27(2) of the Banking Regulation Act, 1949 (AACS).
Implication:
The banks will comply requirement of filing returns under Banking Regulation Act 1949 to avoid further penalties.
Reference: Securities and Exchange board of India
Update:
Monetary Penalty on Pityush Steels Ltd:
SEBI has imposed monetary penalty on Pityush Steels Ltd of total Rs. 3 Lakhs for not redressing investor grievances pending on SCORES and also not filing the Action Taken Report within the time line till date. Thus attracting penalty under Section 15HB & 15C of the SEBI Act.
Implication:
The Comapny shall pay the amount mentioned in order within a period of 45 days from the date of service of this order.
Reference: General
Update:
Shareholding of GSTN:
The GST Council in its 27th meeting held on 4th May, 2018 resolved that GSTN will be converted into a 100% Government-owned entity by transferring 51% equity shares held by the Non-Government Institutions to the Centre and States equally.
The Union Cabinet in its meeting held on 26th September, 2018 decided to convert GSTN into a fully-owned Government company with 50% equity of the company to be held by the Central Government and the balance 50% to be held by various States and Union Territories.
Implication:
The said bank will follow the directions issued by RBI for further period till 31st January 2020.
Update:
Several measures taken to ensure timely payments to Micro, Small & Medium Enterprises:
In order to ensure timely payments and to prevent their accounts from being treated as Non-Performing Assets (NPAs), Government has taken following steps:
Under the provisions of the Micro, Small and Medium Enterprise Development (MSMED) Act, 2006, 60 Micro & Small Enterprises Facilitation Councils (MSEFCs) have been set up in the States/Union Territories for resolution of delayed payment cases by way of conciliation and/ or arbitration.
The Ministry of Micro, Small & Medium Enterprises (MSME) has launched the SAMADHAAN portal on the 30.10.2017 to enable Micro & Small Enterprises (MSEs) across the country to directly register their cases online on the portal relating to delayed payments by Central Ministries / Departments/ Central Public Sector Enterprises (CPSEs)/ State Governments etc.
