Thursday, October 19, 2017

No more Child Sex, at least legally









As per Indian laws, age of consent for sex is 18 years. That means sexual intercourse with a girl under 18 can put the person behind bar. But there is loop hole to this law provided by section 375 of IPC. Per that, if girl is more than 15 years only then marital sex is permitted.

Now many of us may wonder what is the problem with that any way she is his wife. Well, it is not as simple as it seems.

At the age of 15 one person might not be with in right mental capacity to take big decisions like marriage and sex which is going to affect him/her for rest of the life. In addition to that, there are many reported incidents where rich people especially from middle east marry under aged girls have sex and then divorce them. Another anomaly with this law is if in normal cases girl must be 18 years old to be eligible for sexual intercourse legally then how come in married case it can be lowered to 15.

This is the anomaly SC corrected yesterday. As per the judgement,
The minimum age of marriage now laid down by law (after 1978) is 18 years in the case of females and the relevant clause of Section 375 should reflect this changed attitude. Since marriage with a girl below 18 years is prohibited (though it is not void as a matter of personal law), sexual intercourse with a girl below 18 years should also be prohibited – SCI Judgement

This is indeed a good step (of course if other wings of administration implement it properly) in reducing abuses against girls. Marriage at ages as young as 15 is not only forcing her to have sexual intercourse; but also, depriving her of schooling, education and childhood. Without education, she won’t able to understand her rights and achieving financial freedom is difficult if not impossible.

Sajeev

Monday, October 16, 2017

Bangalore Rains – Water and Potholes Everywhere

Almost every day, especially in the evening, heavy rains are hitting the city. This is supposed to be a moment of happiness after longs years to draughts and dwindling water table. Before rains, huge number of bore wells were running dry. People dug to such an extent that, even magma may start coming out. However, what is supposed to be happy moment turned out to become a disastrous one when low quality roads coupled with bad design crumpled under the pressure of downpour.

Pot holes suddenly became much bigger. In many pleases there were hardly any roads. Thanks to bad design, water clogged at the beginning of flyovers, in underpasses etc. Basements of buildings which are constructed below ground level were flooded with water. Many service roads and other connecting roads lost most of their blacktop and became storm water drainages. Needless to say, this created a nightmare for drivers especially bikers. Even major arteries lost lot of black top and many parts of it became non-navigable.

Major reason for this havoc is not rains, its bad quality of road construction and design of public infrastructure. As rains became a rare phenomenon in previous years, quality of roads went down significantly. To an extent this was compensated by frequent maintenance. Roads doesn’t last long but frequent maintenance kept things under carpet. Commuters were angrier about blocks than quality of road.

This time rain exposed the real strength of public infrastructure in Bangalore. We don’t need any cyclone but a fortnight’s heavy rain is enough to bring this city to a halt.

Problems are not limited to roads and flyovers. Lakes are filled with industrial water and it vomits white forms and foul smell. Water in lakes like Agara, Vurthur etc are untouchable for all practical purposes. It was courts which pulled up the administration to do something with lakes. Now due to rain focus moved towards roads and people are going to forget lakes for a while. I am sure, a massive infrastructure revamp will happen after rains. Lots of roads will be widened, re-tarred etc. I am also sure that, hardly anyone is going to check the quality of those work products. Hardly anyone is going to care about its design. BWSSB and private parties are going to dig up the road wherever they need going to leave a mess behind.

Sajeev 

Sunday, October 15, 2017

An Adult Individual's right to Marry

Hadiya's case is the latest in the series of love jihad-related events. We are not going to check the merits or demerits of other cases, as it is not relevant to this scenario. The question here is, whether Kerala High court went overboard in annulling the marriage of Hadiya (aka Akhila) with Shafin Jahan.

Main points here are, Constitution of India allows willing adults to marry. Second thing is, constitution also allows people to believe in any region they choose. Of course, there are some conditions. But, in this case, Hadiya (aka Akhila) is an adult and also stated that their marriage is not a forced one. As far as the media reports go, she is psychologically sound. In addition to that, as per her own statement, she accepted Islam willingly. Hence, she is within her rights to marry a person of her choice and change religion. Which implies, the high court decision was not correct.

Love jihad may be real or imaginary. Even if it’s real, then also I don’t think courts have the right to annul a marriage unless husband (and)or wife submit a request for the same. Hope that Supreme Court will correct HC judgment.

For background stories and other details please read the links given in references section.

Sajeev.

References

1. Her journey from Akhila to become Hadiya - IE
2. The Jurisprudential Conundrum Of Hadiya Case - LiveLaw
3. Activists Write to Kerala CM, Women’s Commission on Hadiya Case - TheWire
4. Ruckus halts SC hearing on Hadiya case - The Hindu

Better to Stay away from investing in ‘Mattala International’ Airport

Check-in Counters, Photo by Anuradha Dullewe Wijeyeratne
China’s One Belt One Road(OBOR) is one of the biggest infrastructure projects ever initiated by any country. Probably its only rival may be Marshall Plan for post-world war reconstruction of Western Europe. India is not comfortable with it, as OBOR also sets up transportation points (which may be used in future for military purpose as well) across Indian ocean. More importantly the USD 48bn CPEC corridor pass through Pak Occupied part of J & K (PoK).

It’s not that OBOR is a smooth success everywhere. It ran to trouble in Sri Lanka, where Chinese built seaport-airport complexes at Hambantota during the reign of Chinese friendly Rajapaksa regime. Discussions are also on for a refinery and investment zone. The main attraction of Hambantota is its closeness international shipping routes. China is running Hambantota seaport with a 99-year lease and proposing 6000 hectares investment zone. If realized, this will be the largest of such project in Sri Lanka.

Now India is proposing to invest in an international airport at Mattala near Hambantota. On paper, it looks like a good decision. After all, we are going to sit next to Chinese projects; getting a bigger footprint in Sri Lanka, from where India was practically out during the reign of Rajapaksa.

But on the ground, there are bigger problems. This international airport is also dubbed as the emptiest international airport in the world. Built almost nowhere, this project was opposed by a government agency in the beginning itself. Now hardly any flights come to this airport. Major visitors to this airport are wild animals. Approach road is already taken over by cattle. In 2016, 300+ soldiers, police officers were deployed to clear the airport from wild animals.

In addition to that, Rajapaksa wing is protesting against Indian control of Mattala airport. They call it as handing over national assets to India which is nothing but a big white elephant. In such a situation do we really need to invest, which is nothing but a wastage of money and other resources? Our desire to counter rising Chinese influence in the immediate neighborhood should not result in owning a white elephant.

Chinese outlay for OBOR is good. To an extent all Chinese investments are safe. Everything is in the form of loans to countries; not development assistance or grants. Interest rates are also not so low. All those countries at some point in the future will face difficulties in servicing the loan. Sri Lanka is already facing it. We can help Sri Lanka, and we should help; but not by investing in white elephants like Mattala airport.

Sajeev

Thursday, October 5, 2017

Guns and blood red roses – A disaster which could have averted

Everyday when I go out, there is one thing I am sure about. Whatever happens, there is hardly any chance to encounter anyone who empty out bullets on unknown strangers in the street. Even during heated arguments or on trips to other places I am safe. Maximum people may hit me or cause some physical injuries but there is little chance that I may have to face people roaming around with automatic guns. British during Raj (even though it was for their own good) practically made firearms out of the reach of common people. Independent India made it more difficult to for her citizens to get weapons. It is another matter that that even the police are using guns of stone age!!!

What make Las Vegas shooting spree a tragedy is, US administration fails to do what that they should have been done decades back. Why a common citizen, whose rights are backed by one of the most formidable judicial system and police force in the world want to roam around with guns? That too with those sophisticated automatic weapons which most Police forces around the world never used. 
Why it is still a right for a person to carry guns provided the fact that, he/she in a bad rage can take it out and unleash unspeakable horror. Terrorists can easily get their hands-on weapons. Gangsters won’t have any trouble in getting their toys. Why common people are forced to live in under the shadow of fear?

It’s ironic that, even after sacrificing so many precious lives; USA as a country, is yet to learn basics. As David Hemenway of Harvard pointed out, since 1970 more Americans died due to gun violence than all Americans who died due to all wars in American history right from American revolution. Everyday some 92 Americans die due to guns. Remember these people are not victims of some disease which don’t have a cure, not victims of terrorists, not victims of natural calamity… but victims of an item and an idea which don’t have a place in modern society. The earlier US administration and Senate recognize it, the better. If you can’t ban it outright, then at last make it very difficult to buy.

Sajeev

Referencs

Sunday, July 2, 2017

PSLV – Another Milestone

PSLV, Photo Courtesy - ISRO

When it comes to technology we don’t have many things to proud about. When I talk to others, they often boast about India 5000 years back; which of course is more of a story than a verifiable history. There may be lot of things existed 5000 years ago, we may be far ahead of the world at that time; but two problems are associated with these types of claims. 1. It’s not fully verifiable and 2. Its 5000 years ago. No one talks about 30 or 50 years back.


However, there are a couple of institutions which kept Indian flag flying high in technical arena. One such institution is ISRO. Most of the missions of ISRO are successful and economical; fulfilling the dreams of a country (other countries and universities as well) by providing an economical ticket to space.  In addition to this, ISRO is believed to be free from corruption and inefficiency which otherwise eating away the core of government run enterprises.

There are many good stories about ISRO. Especially its resilience and growth even under heavy international embargos especially after India's nuclear test at Pokhran.

Around one week back, ISRO's work horse (PSLV series) completed its 40th launch, out of this 38 are successful and 1 launch is a partial success. This is 2nd launch of this rock in this year. Probably space mission is one area where pioneer’s visions were successfully me by the institutions they formed.

Two more launches are scheduled for this year. August launch will place IRNSS-1H and December launch is for TeamIndus and Team HAKUTO (Google's $30mn Lunar XPRIZE teams).

PSLV Notable numbers
  • First Flight: 1993
  • First Successful Mission: Oct, 1994
  • Launch of first foreign satellite: 1999
  • Total Foreign satellites launched so far: 209 (28 countries)
  • Indian Satellites: 48
  • Heaviest foreign satellite: TeLEOS (Singapore, 400kg)
  • PSLV was used for Chandrayaan-1 (PSLV-XL, 2008) as well as Mars Mission (PSLV-XL, 2013) as well.
  • PSLV C37 broke the record for placing highest number of satellites in orbit
  • Height: 44m
  • Diameter: 2.8m
  • Stages: 4
  • Cost/launch: around 90Cr (USD 15mn) for PSLV-CA
  • Total launches: 50 (48 successful)
Sajeev

PS:

ISRO have other series commercial challenges ahead. One is to enter in to the space of commercial launch of heavy satellites to geo-stationery orbits. Another one is keep the order book busy for launch of small light weight satellites. Advancement in software, hardware and electronics considerably reduced the size of satellites. In future, it will go down further. Companies like Space X, Vector Space Systems are actively venturing in to this area.

Thursday, June 1, 2017

Banning the Sale of Cattle for Slaughter - Government has no role in Kitchen

Raw Beef Slices - Photo Courtesy: Wikipedia

Recently, Central Government through a brand-new notification made it difficult for people to sell cattle for slaughter.

The notification in question is, ‘Prevention of Cruelty to Animals (Regulation of Livestock Markets) Rules, 2017' from Ministry of Environment and Forests. As the name implies this rule have many progressive directions like,
Section 7 states, 'District Animal Market Monitoring Committee' to ensure all basic needs for animals in animal market.
Section 14 Prohibits the practices that are cruel and harmful
Section 15 offers Protection of animals from injury or unnecessary pain or suffering.
There are many more sections in this rule which will make the life of animals easy in animal market.

The controversial sections in this piece of paper is Section 22 on 'Restrictions on sale of cattle'. Subsections states that, 
b. no person shall bring a cattle to an animal market unless upon arrival he has furnished a written declaration signed by the owner of the cattle or his duly authorised agent—
(i) stating the name and address of the owner of the cattle, with a copy of the photo identification proof;
(ii) giving details of the identification of the cattle;
(iii) stating that the cattle has not been brought to market for sale for slaughter. 

In other words, one can't sell his/her cattle for slaughter.

d. where an animal has been sold and before its removal from the animal market, the Animal Market Committee shall—
(ii)take an undertaking that the animals are bought for agriculture purposes and not for slaughter;

e. the purchaser of the cattle shall –
(i) not sell the animal for purpose of slaughter;
(ii) follow the State cattle protection or preservation laws;
(iii) not sacrifice the animal for any religious purpose;
(iv) not sell the cattle to a person outside the State without the permission as per the State cattle protection or preservation laws.

(i) make sure that the purchaser is not allowed to sell the cattle for slaughter and (iv) makes the interstate trade difficult.

This in turn affects beef consumption, leather industry and export market. The question any reasonable Indian should ask is 'why'? What suddenly happened, which made the government to bring such a drastic change. Did they find suddenly that cattle are an endangered species? No. Did they find that eating beef is injurious to health? No. Did they find out that, slaughtering cattle results in ecological imbalance? Again, the answer is no. Alternately, there are a lot of people who eat beef; there is a big industry and lakhs of jobs depends on it. In addition to that, there is a huge export market as well as leather industry depend on that.

This ban raise some serious questions about the intention and extend of government's role in day to day life. Do government have the right to decide what people should eat and what not (if they are not eating endangered species or resorting to cannibalism)? I believe the answer is no.

Do government have the authority to destroy an industry - leather - without providing any reasonable explanation? Leather industry may be polluting but so as many other industries. So, pollution is not a digestible explanation.

Another explanation provided for this ban is to protect the farmers. In which way, it will affect the farmers. Just think about the situation, when the cattle are no longer giving any return for the farmer. It is very old to provide milk or do some work. In this situation, what the farmer should do? Fed the cattle for many more years without having any chance for getting any further return?  or simply let it go to the open streets? I don't think both options will be more beneficial for the farmer than selling it to slaughter house.

Well, there is also an argument that animal husbandry is a state matter and central government’s notification is an encroachment to State Government’s fiefdom. Well, state government also don’t have any role in citizen’s kitchen.

In this way government's argument, doesn't hold any water and hence the notification should be taken back.

Sajeev

PS: As per the wordings, ban in the sale of cattle for slaughter is applicable only in Animal Market (may not be in households). But the notification gave a very expansive definition for Animal Market.

"animal market means a market place or sale-yard or any other premises or place to which animals are brought from other places and exposed for sale or auction and includes any lairage adjoining a market or a slaughterhouse and used in connection with it and any place adjoining a market used as a parking area by visitors to the market for parking vehicles and includes animal fair and cattle pound where animals are offered or displayed for sale or auction"

Tuesday, May 2, 2017

Anyone Left in the system?


"Turkish government expanded its crackdown on dissent and free expression over the weekend, purging nearly 4,000 more public officials, blocking access to Wikipedia and banning television matchmaking shows" - NYT

More than 1,40,000 people already lost their job from public and private sectors; more then 1,500 civil groups became history since the failed coup against Erdogan last year. Looks like there is no end in sight for Great Turkish Purge. It's bad time for civil servants in Turkey. If things are going in this way, there won't be any leftists, rightists, centrists or whatever others "ists" left in Turkey - Only Erdoganists!!!

--Mumbling Mainstreet

PM started thinking and MP did it!!!

"Madhya Pradesh has become the first state in the country to formally switch to a January-December financial year format, with the state Cabinet  on Tuesday approving the proposed move. The next Budget session of the state Assembly will be held in December 2017 or January 2018, while the next financial year will start from January 2018" - Business Standard

Lightening Speed. There is no other words to describe the speed. I which MP could show the same energy in constructing the roads as well.

-- Mumbling Mainstreet

Running towards Christian Europe instead of Islamic Saudi


"During her talks with Gulf leaders, Ms. Merkel is expected to press them (Saudi Arabia) to do more to take in refugees and provide humanitarian relief for those fleeing conflicts in Muslim-majority countries. Her country has provided refuge to hundreds of thousands of people from Syria, Iraq and Afghanistan in recent years." - The Hindu

I don't think, she will be able to anything on refugee problem. However, it is quite interesting to see the pattern. Persecuted Muslims from war-torn countries from Africa and Asia are trying to get in to Christian Europe not to any Middle-East Countries.

-- Mumbling Mainstreet



References
Germany’s Merkel to press Saudi Arabia on refugees, rights - The Hindu

Monday, May 1, 2017

Frequently Asked Questions on GST (Goods and Services Tax) - Part VII


FAQ on GST (Goods and Services Tax) - Part I
FAQ on GST (Goods and Services Tax) - Part II
FAQ on GST (Goods and Services Tax) - Part III
FAQ on GST (Goods and Services Tax) - Part IV
FAQ on GST (Goods and Services Tax) - Part V
FAQ on GST (Goods and Services Tax) - Part VI
FAQ on GST (Goods and Services Tax) - Part VII


This Question and Answers are prepared by Apex Training Institute Under Central Board of Excise and Customs(CBEC) with some inputs from National Academy of Customs, Excise and Narcotics (NACEN).

Below mentioned Q&A are derived from above document with modifications.




89. What is IGST?

“Integrated Goods and Services Tax” (IGST) means tax levied under the IGST Act on the supply of any goods and/ or services in the course of inter-State trade or commerce.

90. What are inter-state supplies?

A supply of goods and/or services in the course of inter-State trade or commerce means any supply where the location of the supplier and the place of supply are in different States, two different union territory or in a state and union territory Further import of goods and services, supplies to SEZ units or developer, or any supply that is not an intrastate supply. (Section 7 of the IGST Act).

91. How will the Inter-State supplies of Goods and Services be taxed under GST?

IGST shall be levied and collected by Centre on inter-state supplies. IGST would be broadly CGST plus SGST and shall be levied on all inter-State taxable supplies of goods and services. The inter-State seller will pay IGST on value addition after adjusting available credit of IGST, CGST, and SGST on his purchases. The Exporting State will transfer to the Centre the credit of SGST used in payment of IGST. The Importing dealer will claim the credit of IGST while discharging his output tax liability in his own State. The Centre will transfer to the importing State the credit of IGST used in payment of SGST. The relevant information is also submitted to the Central Agency which will act as a clearing house mechanism, verify the claims and inform the respective governments to transfer the funds.

92. How will the settlement between Centre, exporting state and importing state be done?

There would be settlement of account between the Centre and the states on two counts,

• Centre and the exporting state: The exporting state shall pay the amount equal to the ITC of SGST used by the supplier in the exporting state to the Centre.
• Centre and the importing state: The Centre shall pay the amount equal to the ITC of IGST used by a dealer for payment of SGST on Intra- state supplies.

The settlement would be on a cumulative basis for a state taking into account the details furnished by all the dealer in the settlement period. Similar settlement of amount would also be undertaken between CGST and IGST account.

93. What treatment is given to supplies made to SEZ units or developer?

Supplies to SEZ units or developer shall be zero-rated in the same manner as done for the physical exports. Supplier shall have the option to make supplies to SEZ without payment of taxes and claim refunds of input taxes on such supplies (section 16 of the IGST Act).

94. The place of supply in relation to immovable property is the location of immovable property. Suppose a road is constructed from Delhi to Mumbai covering multiple states. What will be the place of supply?

Where the immovable property is located in more than one State, the supply of service shall be treated as made in each of the States in proportion to the value for services separately collected or determined, in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other reasonable basis as may be prescribed in this behalf.
(The Explanation clause to section 12(3) of the IGST Act, for domestic supplies)

95. What would be the place of supply of services provided for organising an event, say, IPL cricket series which is held in multiple states?

In the case of an event, if the recipient of service is registered, the place of supply of services for organising the event shall be the location of such person.

However, if the recipient is not registered, the place of supply shall be the place where the event is held. Since the event is being held in multiple states and a consolidated amount is charged for such services, the place of supply shall be taken as being in each state in proportion to the value of services so provided in each state.
(The Explanation clause to section 12(7) of the IGST Act)

96. What will be the place of supply of goods services by way of transportation of goods, including mail or courier?

In the case of domestic supply: If the recipient is registered, the location of such person shall be the place of supply.
However, if the recipient is not registered, the place of supply shall be the place where the goods are handed over for transportation
(section 12 of the IGST Act)

For international supplies: The place of supply of transport services, other than the courier services, shall be the destination of goods. For courier, the place of supply of services is where goods are handed over to the courier. However, if the courier services are performed even partially in India, the place of supply shall be deemed as India
(section 13(3),13(6) and 13(9) of the IGST Act).

97. What will be the place of supply of passenger transportation service, if a person travels from Mumbai to Delhi and back to Mumbai?

If the person is registered, the place of supply shall be the location of the recipient. If the person is not registered, the place of supply for the forward journey from Mumbai to Delhi shall be Mumbai, the place where he embarks.

However, for the return journey, the place of supply shall be Delhi as the return journey has to be treated as a separate journey.
(The Explanation clause to section 12(9) of the IGST Act)

98. What is GSTN?

Goods and Services Tax Network (GSTN) is a not-for-profit, a non-government company promoted jointly by the Central and State Governments, which will provide shared IT infrastructure and services to both central and state governments including taxpayers and other stakeholders. The Frontend services of Registration, Returns, Payments, etc. to all taxpayers will be provided by GSTN. It will be the interface between the government and the taxpayers.

99. What services will be rendered by GSTN?

GSTN will render the following services through the Common GST Portal:

(a) Registration (including existing taxpayer migration, a process which began on 8th Nov 2016);
(b) Payment management including payment Gateways and integration with banking systems;
(c) Return filing and processing;
(d) Taxpayer management, including account management, notifications, information, and status tracking;
(e) Tax authority account and ledger Management;
(f) Computation of settlement (including  IGST Settlement) between the Centre and States; Clearinghouse for IGST;
(g) Processing and reconciliation of GST on import and integration with EDI systems of Customs;
(h) MIS including need-based information and business intelligence;
(i) Maintenance of interfaces between the Common GST Portal and tax administration systems;
(j) Provide training to stakeholders;
(k) Provide Analytics and Business Intelligence to tax authorities; and
(l) Carry out research and study best practices.

Sajeev

For full set please visit
http://pibphoto.nic.in/documents/rlink/2017/apr/p201742502.pdf

Saturday, April 29, 2017

Frequently Asked Questions on GST (Goods and Services Tax) - Part VI


FAQ on GST (Goods and Services Tax) - Part I
FAQ on GST (Goods and Services Tax) - Part II
FAQ on GST (Goods and Services Tax) - Part III
FAQ on GST (Goods and Services Tax) - Part IV
FAQ on GST (Goods and Services Tax) - Part V
FAQ on GST (Goods and Services Tax) - Part VI

FAQ on GST (Goods and Services Tax) - Part VII

This Question and Answers are prepared by Apex Training Institute Under Central Board of Excise and Customs(CBEC) with some inputs from National Academy of Customs, Excise and Narcotics (NACEN).

Below mentioned Q&A are derived from above document with modifications.


75. What is job work? 

Job work means undertaking any treatment or process by a person on goods belonging to another registered taxable person. The person who is treating or processing the goods belonging to other person is called ‘job worker’ and the person to whom the goods belong is called ‘principal’.

76. Can a principal send inputs and capital goods directly to the premises of job worker without bringing it to his premises? 

Yes, the principal is allowed to do so. The input tax credit of tax paid on inputs or capital goods can also be availed by the principal in such a scenario. The inputs or capital goods must be received back within one year or three years respectively failing which the original transaction would be treated as supply and the principal would be liable to pay tax accordingly.

77. Can the principal supply the goods directly from the premises of the job worker without bringing it back to his own premises? 

Yes. But the principal should have declared the premises of an unregistered job worker as his additional place of business. If the job worker is a registered person then goods can be supplied directly from the premises of the job worker.

78. What is input tax? 

Input tax means the central tax (CGST), State tax (SGST), integrated tax (IGST) or Union territory tax (UTGST) charged on the supply of goods or services or both made to a registered person. It also includes tax paid on a reverse charge basis and integrated tax goods and services tax charged on the import of goods. It does not include tax paid under composition levy

79. Can GST paid on reverse charge basis be considered as input tax? 

Yes. The definition of input tax includes the tax payable under the reverse charge.

80. What are the conditions necessary for obtaining ITC? 

Following four conditions are to be satisfied by the registered taxable person for obtaining ITC:
(a) he is in possession of tax invoice or debit note or such other tax paying documents as may be prescribed;
(b) he has received the goods or services or both;
(c) the supplier has actually paid the tax charged in respect of the supply to the government, and
(d) he has furnished the return under section 39.

81. A person becomes liable to pay tax on 1st August 2017 and has obtained registration on 15th August 2017. Such person is eligible for input tax credit on inputs held in stock as on: 
1st August 2017 
31st July 2017 
15th August 2017 

He cannot take credit for the past period 31st July 2017

82. What is the purpose of returns? 

a) Mode for transfer of information to tax administration;
b) Compliance verification program of tax administration;
c) Finalisation of the tax liabilities of the taxpayer within stipulated period of limitation; to declare tax liability for a given period;
d) Providing necessary inputs for taking policy decision;
e) Management of audit and anti-evasion programs of tax administration.

84. Who needs to file Return in GST regime? 

Every person registered under GST will have to file returns in some form or other.  A registered person will have to file returns either monthly (normal supplier) or quarterly basis (Supplier opting for composition scheme).

An ISD will have to file monthly returns showing details of credit distributed during the particular month.  A person required to deduct tax (TDS) and persons required to collect tax (TCS) will also have to file monthly returns showing the amount deducted/collected and other details as may be prescribed.

A non-resident taxable person will also have to file returns for the period of activity undertaken.

85. Whether all invoices will have to be uploaded? 

No.It depends on whether B2B or B2C plus whether Intra-state or Inter-state supplies.

For B2B supplies, all invoices, whether Intra-state or Inter- state supplies, will have to be uploaded. Why So? Because ITC will be taken by the recipients, invoice matching is required to be done.

In B2C supplies, uploading, in general, may not be required as the buyer will not be taking ITC. However still in order to implement the destination based principle, invoices of value more than Rs.2.5 lakhs in inter-state B2C supplies will have to be uploaded. For inter-state invoices below 2.5 lakhs and all intra-state invoices, state wise summary will be sufficient.

86. Whether the description of each item in the invoice will have to be uploaded? 

No. In fact, description will not have to be uploaded. Only HSN code in respect of the supply of goods and Accounting code in respect of the supply of services will have to be fed. The minimum number of digits that the filer will have to upload would depend on his turnover in the last year.

87. Is the scanned copy of invoices to be uploaded along with GSTR-1? 

Only certain prescribed fields of information from invoices need to be uploaded.

88. Who is the person responsible for making an assessment of taxes payable under the Act? 

Every person registered under the Act shall himself assess the tax payable by him for a tax period and after such assessment, he shall file the return required under section 39.

Sajeev

Frequently Asked Questions on GST (Goods and Services Tax) - Part V


FAQ on GST (Goods and Services Tax) - Part I
FAQ on GST (Goods and Services Tax) - Part II
FAQ on GST (Goods and Services Tax) - Part III
FAQ on GST (Goods and Services Tax) - Part IV
FAQ on GST (Goods and Services Tax) - Part V
FAQ on GST (Goods and Services Tax) - Part VI

FAQ on GST (Goods and Services Tax) - Part VII


This Question and Answers are prepared by Apex Training Institute Under Central Board of Excise and Customs(CBEC) with some inputs from National Academy of Customs, Excise and Narcotics (NACEN).

Below mentioned Q& A are derived from above document with modifications.


61. Whether supply of software would be treated as the supply of goods or supply of services under GST law? 

Development, design, programming, customization, adaptation, up-gradation, enhancement, implementation of IT software shall be treated as the supply of services.  [Sl. No. 5 (2)(d) of Schedule –II of the model GST law]

62. What is meant by zero-rated supply under GST? 

Zero rated supply means export of goods and/or services or supply of goods and/or services to a SEZ developer or a SEZ Unit. 

63. What is the time period within which invoice has to be issued for supply of Goods? 

[Section 31 of CGST/SGST Act] A registered taxable person shall issue a tax invoice showing description, quantity and value of goods, tax charged thereon and other prescribed particulars, before or at the time of removal of goods for supply to the recipient, where supply involves movement of goods or delivery of goods or making available thereof to the recipient in other cases. 

64. What is the time period within which invoice has to be issued for supply of Services? 

[Section 31 of CGST/SGST Act] A registered taxable person shall, before or after the provision of service, but within a period prescribed in this behalf, issue a tax invoice showing description, value of goods, tax payable thereon and other prescribed particulars. 

65. What is the time period within which invoice has to be issued in a case involving the continuous supply of goods? 

In the case of continuous supply of goods, where successive statements of accounts or successive payments are involved, the invoice shall be issued before or at the time each such statement is issued or, as the case may be, each such payment is received. 

66. What is the time period within which invoice has to be issued in a case involving the continuous supply of services? 

In case of continuous supply of services,  

Where the due date of payment is ascertainable from the contract, the invoice shall be issued before or after the payment is liable to be made by the recipient but within a period prescribed in this behalf whether or not any payment has been received by the supplier of the service; 

where the due date of payment is not ascertainable from the contract, the invoice shall be issued before or after each such time when the supplier of service receives the payment but within a period prescribed in this behalf; 

where the payment is linked to the completion of an event, the invoice shall be issued before or after the time of completion of that event but within a period prescribed in this behalf. 

67. Is it mandatory for e-commerce operator to obtain registration? 

The benefit of threshold exemption is not available to e-commerce operators and they would be liable to be registered irrespective of the value of supply made by them. 

68. Whether a supplier of goods or services supplying through e-commerce operator would be entitled to threshold exemption? 

No. The threshold exemption is not available to such suppliers and they would be liable to be registered irrespective of the value of supply made by them. This requirement, however, is applicable only if the supply is made through such electronic commerce operator who is required to collect tax at source.   

69. Will an e-commerce operator be liable to pay tax in respect of the supply of goods or services made through it, instead of an actual supplier? 

Yes, but only in case of certain notified services. In such cases tax shall be paid by the electronic commerce operator if such services are supplied through it and all the provisions of the Act shall apply to such electronic commerce operator as if he is the person liable to pay tax in relation to supply of such services. 

70. Will threshold exemption be available to electronic commerce operators liable to pay tax on notified services? 

No. Threshold exemption is not available to e-commerce operator who is required to pay tax on notified services provided through them.  

71. What is Tax Collection at Source(TCS)? 

The e-commerce operator is required to collect an amount calculated at the rate not exceeding 1% of the net value of taxable supplies made through it, where the consideration with respect to such supplies is to be collected by such operator. The amount so collected is called as Tax Collection at Source (TCS). 

72. It is very common that customers of e-commerce companies return goods. How these returns are going to be adjusted?   

An e-commerce company is required to collect tax only on the net value of taxable supplies. In other words, the value of the supplies which are returned is adjusted in the aggregate value of taxable supplies. 

73. Is every e-commerce operator required to collect tax on behalf of an actual supplier? 

Yes, every e-commerce operator is required to collect tax where consideration with respect to the supply is being collected by the e-commerce operator. 

74. At what time should the e-commerce operator make such collection? 

The e-commerce operator should make the collection during the month in which supply was made. 

Sajeev

Frequently Asked Questions on GST (Goods and Services Tax) - Part IV


FAQ on GST (Goods and Services Tax) - Part I
FAQ on GST (Goods and Services Tax) - Part II
FAQ on GST (Goods and Services Tax) - Part III
FAQ on GST (Goods and Services Tax) - Part IV
FAQ on GST (Goods and Services Tax) - Part V
FAQ on GST (Goods and Services Tax) - Part VI
FAQ on GST (Goods and Services Tax) - Part VII


This Question and Answers are prepared by Apex Training Institute Under Central Board of Excise and Customs(CBEC) with some inputs from National Academy of Customs, Excise and Narcotics (NACEN).


Below mentioned Q& A are derived from above document with modifications.

46. Is possession of a Permanent Account Number (PAN) mandatory for obtaining a Registration? 

Yes. 

A person required to deduct tax under Section 51, may have, in lieu of a PAN, a Tax Deduction and Collection Account Number issued under the said Income Tax Act, in order to be eligible for grant of registration.

PAN is not mandatory for a non-resident taxable person who may be granted registration on the basis of any other document as may be prescribed. 

47. Whether the Department through the proper officer, can Suo-moto proceed to register of a Person under this Act? 

Yes. 

48. Whether the Registration granted to any person is permanent? 

Yes, the registration Certificate once granted is permanent unless surrendered, cancelled, suspended or revoked. 

49. Is it necessary for UN bodies to get registration under GST? 

Yes. All notified UN bodies, Consulate or Embassy of foreign countries and any other class of persons so notified would be required to obtain a unique identification number (UIN) from the GST portal. The structure of the said ID would be uniform across the States in conformity with GSTIN structure and the same will be common for the Centre and the States. This UIN will be needed for claiming the refund of taxes paid on notified supplies of goods and services received by them, and for any other purpose as may be notified.  

50. What is the responsibility of the taxable person supplying to UN bodies?

The taxable supplier supplying to these organisations is expected to mention the UIN on the invoices and treat such supplies as supplies to another registered person (B2B) and the invoices of the same will be uploaded by the supplier. 

51. Is it necessary for the Govt Organization to get registration? 

A unique identification number (ID) would be given by the respective state tax authorities through GST portal to Government authorities/PSUs not making outwards supplies of GST goods (and thus not liable to obtain GST registration) but are making inter-state purchases. 

52. Whether the job worker will have to be compulsorily registered? 

No, a Job worker is a supplier of services and will be obliged to take registration only when his turnover crosses the prescribed threshold of 20/10 Lakhs. 

53. Whether the goods will be permitted to be supplied from the place of business of a job worker? 

Yes.  But only in cases where the job worker is registered, or if not, the principal declares the place of business of the job worker as his additional place of business. 

54. At the time of registration will the assessee have to declare all his places of business? 

Yes. The taxpayer will have to declare the principal place of business as well as the details of additional places of business in the registration form. 

55. Is there any system to facilitate smaller dealers or dealers having no IT infrastructure? 

In order to cater to the needs of taxpayers who are not IT savvy, following facilities shall be made available,

Tax Return Preparer(TRP): A taxable person may prepare his registration application /returns himself or can approach the TRP for assistance. TRP will prepare the said registration document/ return in prescribed format on the basis of the information furnished to him by the taxable person. The legal responsibility of the correctness of information contained in the forms prepared by the TRP will rest with the taxable person only and the TRP shall not be liable for any errors or incorrect information. 

Facilitation Centre (FC): shall be responsible for the digitisation and/or uploading of the forms and documents including summary sheet duly signed by the Authorized Signatory and given to it by the taxable person. After uploading the data on common portal using the ID and Password of FC, a print-out of acknowledgement will be taken and signed by the FC and handed over to the taxable person for his records. The FC will scan and upload the summary sheet duly signed by the Authorized Signatory. 

56. Is there any facility for digital signature in the GSTN registration? 

Taxpayers would have the option to sign the submitted application using valid digital signatures. There will be two options for electronically signing the application or other submissions - 
by re-signing through Aadhar number, or through DSC i.e. by registering the tax payer’s digital signature certificate with GST portal. 

However, companies or limited liability partnership entities will have to sign mandatorily through DSC only. 

Only level 2 and level 3 DSC certificates will be acceptable for signature purpose.  

57.  What will be the time limit for the decision on the on line registration application? 

If the information and the uploaded documents are found in order, the State and the Central authorities shall have to respond to the application within 3 common working days. If they communicate any deficiency or discrepancy in the application within such time, then the applicant will have to remove the discrepancy / deficiency within 7 days of such communication. Thereafter, for either approving the application or rejecting it, the State and the Central authorities will have 7 days from the date when the taxable person communicates removal of deficiencies. In case no response is given by the departmental authorities within the said time line, the portal shall automatically generate the registration. 

58. What is the process of refusal of registration? 

In case registration is refused, the applicant will be informed about the reasons for such refusal through a speaking order. The applicant shall have the right to appeal against the decision of the Authority. Any rejection of application for registration by one authority (i.e. under the CGST Act / SGST Act) shall be deemed to be a rejection of application for registration by the other tax authority (i.e. under the SGST/UTGST/CGST Act)

59. What are the necessary elements that constitute supply under CGST/SGST Act? 

In order to constitute a ‘supply’, the following elements are required to be satisfied, i.e.- 
(i)  the activity involves supply of goods or services or both; 
(ii) the supply is for aconsideration unless otherwise specifically provided for; 
(iii) the supply is made in the course or furtherance of business; 
(iv) the supply is made in the taxable territory;  
(v) the supply is a taxable supply; and 
(vi)the supply is made by a taxable person. 

60. Whether Works contracts  and Catering services will be treated as supply of goods or supply of services? Why? 

Works contracts and catering services shall be treated as supply of services. 

Sajeev

Frequently Asked Questions on GST (Goods and Services Tax) - Part III


FAQ on GST (Goods and Services Tax) - Part I
FAQ on GST (Goods and Services Tax) - Part II
FAQ on GST (Goods and Services Tax) - Part III
FAQ on GST (Goods and Services Tax) - Part IV
FAQ on GST (Goods and Services Tax) - Part V
FAQ on GST (Goods and Services Tax) - Part VI

FAQ on GST (Goods and Services Tax) - Part VII


This Question and Answers are prepared by Apex Training Institute Under Central Board of Excise and Customs(CBEC) with some inputs from National Academy of Customs, Excise and Narcotics (NACEN).





31. Is there any provision in GST for the tax treatment of goods returned by the recipient? 

Yes, Section 34 deals with such situations. Where the goods supplied are returned by the recipient, the registered person (supplier of goods) may issue to the recipient a credit note containing the prescribed particulars.  The details of the credit note shall be declared by the supplier in the returns for the month during which such credit note was issued but not later than September following the end of the year in which such supply was made or the date of filing of the relevant annual return, whichever is earlier. 

The details of the credit note shall be matched with the corresponding reduction in claim for input tax credit by the recipient in his valid return for the same tax period or any subsequent tax period and the claim for reduction in output tax liability by the supplier that matches with the corresponding reduction in claim for ITC by the recipient shall be finally accepted and communicated to both parties.   

32. What is Anti-Profiteering measure? 

As per section 171 of the CGST/SGST Act, any reduction in the rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices. An authority may be constituted by the government to examine whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him.  

33. Will giving away essential commodities by a charitable institution be taxable activity? 

In order to be a supply which is taxable under GST, the transaction should be in the course or furtherance of business. As there is no quid pro quo involved in supply for charitable activities, it is not a supply under GST. 

34. Who can notify a transaction to be supply of goods or services? 

Central Government or State Government, on the recommendations of the GST Council

35. What are composite supply and mixed supply? How are these two different from each other? 

Composite supply is a supply consisting of two or more taxable supplies of goods or services or both or any combination thereof, which are bundled in natural course and are supplied in conjunction with each other in the ordinary course of business and where one of which is a principal supply. 

e.g when a consumer buys a television set and he also gets warranty and a maintenance contract with the TV, this supply is a composite supply. TV is the principal supply, warranty and maintenance service are ancillary.  

Mixed supply is combination of more than one individual supplies of goods or services or any combination thereof made in conjunction with each other for a single price, which can ordinarily be supplied separately. 

e.g. shopkeeper selling storage water bottles along with refrigerator. Bottles and the refrigerator can easily be priced and sold separately.  

36. What is the treatment of composite supply and mixed supply under GST?

Composite supply shall be treated as supply of the principal supply. 

Mixed supply would be treated as supply of that particular goods or services which attracts the highest rate of tax.  

37. Are all goods and services taxable under GST?

Supplies of all goods and services are taxable except alcoholic liquor for human consumption. Supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel shall be taxable with effect from a future date. This date would be notified by the Government on the recommendations of the GST Council. 

38. What is meant by Reverse Charge? 

It means the liability to pay tax is on the recipient of supply of goods and services instead of the supplier of such goods or services in respect of notified categories of supply. 

39. Is the reverse charge mechanism applicable only to services? 

No, reverse charge applies to supplies of both goods and services, as notified by the Government on the recommendations of the GST Council. 

40. What will be the implications in case of receipt of supply from unregistered persons? 

In case of receipt of supply from an unregistered person, the registered person who is receiving goods or services shall be liable to pay tax under reverse charge mechanism. 

41. Can any person other than the supplier or recipient be liable to pay tax under GST? 

Yes, the Central/State government can specify categories of services the tax on which shall be paid by the electronic commerce operator, if such services are supplied through it and all the provisions of the Act shall apply to such electronic commerce operator as if he is the person liable to pay tax in relation to supply of such services. 

42. What is the time limit for taking a Registration under GST? 

A person should take a Registration, within thirty days from the date on which he becomes liable to registration.

A Casual Taxable person and a non-resident taxable person should however apply for registration at least 5 days prior to commencement of business. 

43. If a person is operating in different states, with the same PAN number, whether he can operate with a single Registration? 

No. Every person who is liable to take a Registration will have to get registered separately for each of the States where he has a business operation and is liable to pay GST.

44. Whether a person having multiple business verticals in a state can obtain for different registrations? 

A person having multiple business verticals in a State may obtain a separate registration for each business vertical.

45. Is there a provision for a person to get himself voluntarily registered though he may not be liable to pay GST? 

A person, though not liable to be registered under Section 22 may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered taxable person, shall apply to such person. 

Sajeev.

Frequently Asked Questions on GST (Goods and Services Tax) - Part II


FAQ on GST (Goods and Services Tax) - Part I
FAQ on GST (Goods and Services Tax) - Part II
FAQ on GST (Goods and Services Tax) - Part III
FAQ on GST (Goods and Services Tax) - Part IV
FAQ on GST (Goods and Services Tax) - Part V
FAQ on GST (Goods and Services Tax) - Part VI

FAQ on GST (Goods and Services Tax) - Part VII

This Question and Answers are prepared by Apex Training Institute Under Central Board of Excise and Customs(CBEC) with some inputs from National Academy of Customs, Excise and Narcotics (NACEN).

Below mentioned Q&A are derived from above document with modifications.



16. What would be the role of GST Council? 

Constituted comprising the Union Finance Minister (Chairman of the Council), the Minister of State(Revenue) and the State Finance/Taxation Ministers to make  recommendations to the Union and the States on 

(i) Taxes, cesses and surcharges levied by the Centre, the States and the local bodies which may be subsumed under GST; 
(ii) Goods and services that may be subjected to or exempted from the GST; 
(iii) Date on which the GST shall be levied on petroleum crude, high-speed diesel, motor spirit (petrol), natural gas and aviation turbine fuel; 
(iv) Model GST laws, principles of levy, apportionment of IGST and the principles that govern the place of supply; 
(v) Threshold limit of turnover below which the goods and services may be exempted from GST 
(vi) The rates including floor rates with bands of GST; 
(vii) Any special rate or rates for a specified period to raise additional resources during any natural calamity or disaster; 
(viii) Special provision with respect to the North-East States, J&K, Himachal Pradesh and Uttarakhand;
(ix) Any other matter relating to GST, as the Council may decide. 

17. How will decisions be taken by GST Council? 

The Constitution (101th Amendment) Act, 2016 provides that every decision of the GST Council shall be taken at a meeting by a majority of not less than 3/4th of the weighted votes of the Members present and voting. The vote of the Central Government shall have a weightage of 1/3rd of the votes cast and the votes of all the State Governments taken together shall have a weightage of2/3rd of the total votes cast in that meeting. One-half of the total number of members of the GST Council shall constitute the quorum at its meetings. 

18. Who is liable to pay GST under the proposed GST regime? 

Tax is payable by the taxable person on the supply of goods and/or services. Liability to pay tax arises when the taxable person crosses the turnover threshold of 20 lakhs INR (10 lakhs for NE & Special Category States) except in certain specified cases where the taxable person is liable to pay GST even though he has not crossed the threshold limit. 

The CGST / SGST is payable on all intra-State supply of goods and/or services and IGST is payable on all inter-State supply of goods and/or services. The CGST/SGST and IGST are payable at the rates specified in the Schedules to the respective Acts. 

19. What are the benefits available to small taxpayers under GST? 

Taxpayers with an aggregate turnover in a financial year up to [20 lakhs and 10 Lakhs for NE and special category states] would be exempt from tax. Further, a person whose aggregate turnover in the preceding financial year is less than 50 Lakhs can opt for a simplified composition scheme where tax will payable at a concessional rate on the turnover in a state. 

[Aggregate turnover shall include the aggregate value of all taxable supplies, exempt supplies and exports of goods and/or services and exclude taxes viz. GST.] Aggregate turnover shall be computed on all India basis. For the NE States and special category states, the exemption threshold shall be [10 lakhs].

All taxpayers eligible for threshold exemption will have the option of paying tax with input tax credit (ITC) benefits. Tax payers making inter-State supplies or paying tax on reverse charge basis shall not be eligible for threshold exemption. 

20. How will the goods and services be classified under GST regime? 

HSN (Harmonised System of Nomenclature) code shall be used for classifying the goods under the GST regime. Tax payers whose turnover is above Rs 1.5 crores but below 5 crores shall use 2-digitcode and the taxpayers whose turnover is 5 crores and above shall use 4-digitcode. Taxpayers whose turnover is below 1.5 crores are not required to mention HSN Code in their invoices. 

Services will be classified as per the Services Accounting Code(SAC) 

21. How will imports be taxed under GST? 

Imports of Goods and Services will be treated as inter-state supplies and IGST will be levied on import of goods and services into the country. The incidence of tax will follow the destination principle and the tax revenue in case of SGST will accrue to the State where the imported goods and services are consumed. Full and complete set off will be available on the GST paid on import on goods and services. 

22. How will Exports be treated under GST? 

Exports will be treated as zero rated supplies. No tax will be payable on exports of goods or services, however credit of input tax credit will be available and same will be available as refund to the exporters. The Exporter will have an option to either pay tax on the output and claim refund of IGST or export under Bond with out payment of IGST and claim refund of Input Tax Credit (ITC). 

23. What is the scope of composition scheme under GST? 

Small taxpayers with an aggregate turnover in a preceding financial year up to [50 lakhs] shall be eligible for composition levy. Under the scheme, a taxpayer shall pay tax as a percentage of his turnover in a state during the year without the benefit of Input Tax Credit(ITC). The rate of tax for CGST and SGST/UTGST shall not be less than [1% for manufacturer & 0.5% in other cases; 2.5% for specific services as mentioned in para 6(b) of Schedule II viz Serving of food or any other article for human consumption]. 

A taxpayer opting for composition levy shall not collect any tax from his customers. The government may increase the above said limit of 50 lakhs rupees to up to one crore rupees, on the recommendation of GST Council.  Tax payers making inter-state supplies or making supplies through ecommerce operators who are required to collect tax at source shall not be eligible for composition scheme. 

Composition scheme is optional

24. What is GSTN and its role in GST regime? 

Goods and Service Tax Network (GSTN) is a Special Purpose Vehicle called the GSTN has been setup to cater to the needs of GST. The GSTN shall provide a shared IT infrastructure and services to Central and State Governments, taxpayers and other stakeholders for implementation of GST. 

The functions of the GSTN would, include: 
(i) Facilitating registration; 
(ii) Forwarding the returns to Central and State authorities; 
(iii) Computation and settlement of IGST;
(iv) Matching of tax payment details with banking network; 
(v) Providing various MIS reports to Central and State Governments based on the taxpayer return information; 
(vi) Providing analysis of tax payers profile;
(vii) Running the matching engine for matching, reversal and reclaimof input tax credit. 

The GSTN is developing a common GST portal and applications for registration, payment, return and MIS/ reports. The GSTN would also be integrating the common GST portal with the existing tax administration IT systems and would be building interfaces for tax payers. GSTN is also developing back-end modules like assessment, audit, refund, appeal etc. for 19 States and UTs(Model II States). The CBEC and Model I States (15 States) are themselves developing their GST back-end systems. Integration of GST frontend system with back-end systems will have to be completed and tested well in advance for making the transition smooth. 

25. How are the disputes going to be resolved under GST regime? 

Constitution (101th Amendment) Act, 2016 provides that Goods and Services Tax Council shall establish a mechanism to adjudicate any dispute,
(a) Between Centre and one or more States 
(b) Between Centre and State or States on one side and one or more other Sates on the other side; 
(c) Between two or more States, 

arising out of there commendations of the Councilor implementation there of. 

26. What is the purpose of Compliance rating mechanism?  

As per Section 149 of the CGST/SGST Act, every registered person shall be assigned a compliance rating based on the record of compliance in respect of specified parameters. This rating will be in public domain. A prospective client will be able to see the compliance ratings of suppliers and take a decision as to whether to deal with a particular supplier or not.

27. Whether actionable claims liable to GST? 

As per section 2(52) of the CGST/SGST Act actionable claims are to be considered as goods. Schedule III read with Section 7 of the CGST/SGST Act lists the activities or transactions which shall be treated neither as supply of goods nor supply of services. The Schedule lists actionable claims other than lottery, betting and gambling as one of such transactions. Thus only lottery, betting and gambling shall be treated as supplies under the GST regime.  All the other actionable claims shall not be supplies. 

28. Whether transaction in securities be taxable in GST? 

Securities have been specifically excluded from the definition of goods as well as services. 

29. What is the concept of Information Return? 

Information return is based on the idea of verifying the compliance levels of registered persons through information procured from independent third party sources. 

As per section 150 of the CGST/SGST Act, many authorities who are responsible for,
maintaining records of registration or statement of accounts or 
any periodic return or document containing details of payment of tax and other details of transaction of goods or services or both or 
transactions related to a bank account or 
consumption of electricity or 
transaction of purchase, sale or exchange of goods or property or right or interest in a property 
under any law for the time being in force, are mandated to furnish an information return of the same in respect of such periods, within such time, in such form and manner and to such authority or agency as may be prescribed. 

Failure to do so may result in penalty being imposed as per Section 123.  

30. Different companies have different types of accounting software packages and no specific format are mandated for keeping records. How will department be able to read into these complex software?  

As per Section 153 of the CGST/SGST Act, department may take assistance from an expert at any state of scrutiny, inquiry, investigation or any other proceedings.  

Sajeev