A Quick History of Import-Export Code

Import Export Code, usually known as IEC, is the initial registration needed for companies that deal with Importing or exporting products and services from India. IEC can be issued through the Directorate General of Foreign Trade (DGFT). It is a passport that can be used for export and import business.

Critical Points of Import assignation of export code

What is the time that IEC is needed?

1. The import-Export code is mandatory for importing or exporting goods and services to India.
2. ·    Issue Authority: The IE Code was issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industries, and the Government of India.
3. ·  Annual Renewal is required: IE Code is not an annual process. Import Export Codes require yearly renewal.
4. · Returns Filling: No Returns Filling IE Code doesn't require return filling nor further procedure conformances.
5. · Custom & Banks Requirement:--IE Code requires you to provide a statement to banks or customs authorities to import and export goods and accept or make payments to or from international vendors.
6. ·         AD Code: Authorized Dealer Code needed to clear customs when exporting goods to countries other than India. It is available from the bank.

IEC CODE A LICENSE IS ESSENTIAL FOR EXPORT Provider?

The Import Export Code (IEC) license is an important identification number for businesses required for exports or imports from India. Companies cannot conduct any export or import without having the IEC Code Number issued from the DGFT.

Suppose you're dealing with the export or import of technology transfer or services. In that case, The IEC Code shall be required only if the service or technology provider seeks benefit under Foreign Trade Policy or is working on specific technology or services under Section 7 of Foreign Trade (Development & Regulation) Amendment Act 2010.

Import Export Code Exemption

• The following parties are eligible for the Import Export Code Exemption:
• 1.      Ministerial or state-level government ministries or departments.
• 2. Individuals who import or export items for personal use, which do not have any connection to manufacturing, trade, or agriculture
• 3. Individuals who import or export products from or export products from Nepal, Myanmar via Indo-Myanmar border zones or China if they can prove that the CIF amount of one shipment is not more than Rs.25000. The applicable exemption limit to Nathula port amounts to Rs.1 lakh.

REQUIREMENT OF DIGITAL SIGNATURE FOR IMPORT EXPORT CODE

Importers and Exporters can request Import Export Code Online. Therefore, the need to have a Digital Signature of the business owner-director or owner to apply for the Import Export Code arises. Digital Signatures [DSC] is the most popular method to apply online for the IEC Code application. The DGFT also offers a unique Digital Signature Certificate that it issues to companies that possess an IEC code to import and export. With this special DSC, applicants could save 50% on license fees.

E-Startup India can help arrange digital signatures [DSC] for the applicant

IEC REGISTRATION PROCESS

• 1    Upload the required documents and details to our website portal
• 2.      Select Package and Pay Online with a variety of payment methods available.
• 3.      Our expert will create the application as per the prescribed format to be compatible with IE Code.
• 4.      Upload the applicant's digital signature and upload the online application form before DGFT.
• 5.      DGFT officials will check and consider the application within a week.
• 6.      After successful verification, send the Import Export Code certificate over the email.

Documents required to import-export code

1. Passport Size Photograph.

2. PAN Card.

3. Bank Account Details.

4. Pre-Printed Cancel Cheque.

5. Certificate issued by Bank.

6. Address Documentation.

What is the export promotion capital goods (EPCG) scheme?

• The Export Promotion Capital Goods (EPCG) Scheme, as its name suggests, is a government scheme to increase exports.
• The EPCG Scheme allows the import of capital goods. It spares needed for pre-production, post-production, and production at no customs duty. It is subject to export obligations of six times the amount of duty saved on capital goods imported under the EPCG scheme. This obligation must be paid six years from the date of authorization.
• The producers, Exporters, and Merchant Exporters can benefit from the Scheme. The scheme is also available to a service provider recognized or certified by the government as a Common Service Provider (CSP).
• You can avail EPCG Scheme having Import Export Code by submitting an application provided in Appendix 10 A of the Handbook, along with the papers required therein, to the Director-General of Foreign Trade (DGFT) or the regional Licensing authorities, along with the relevant information/documents.
• The conditions and obligations of the EPCG Scheme are as follows EPCG Scheme's terms and obligations are as follows:
• Export obligations should be fulfilled by exporting products made or produced using capital goods imported as part of the scheme.
• Exports must be direct exports with the names of the person the importer. The importer can export through an unrelated third party, so provided that they're registered with the individual responsible for the importer. The license holder's name is listed as a reference on the Shipping Bill. If an exporter of a trader is the importer brand name must be mentioned in the Shipping Bill.
• The export proceeds will be paid back in the freely convertible currency.
• Exports are physical transactions. Deemed exports can also be considered a way to fulfill the obligation to export. However, the licensee isn't legally entitled to the benefits from considered exports.
• Export obligations exist in addition to the other export obligations, which are under the importer undertakes beyond the value of all exports for the same product carried out by him in the past three licensing periods. If an expSupposeter is able to achieve an export amount equal to 75 percent of the value of the production of the products that are exported in this scheme, then the. In that case,igation under this way is considered an element of the export, provided that the amount of the aggravated exports during the specified time frame is not less than the value of the contract.
• If an exporter's manufacturer has been granted permits to manufacture the identical export product under this scheme and an exemption from duty under the Exemption Scheme, the physical exports that are made in compliance with this Duty exemption Scheme shall also count towards fulfilling the obligation to export under this scheme.
• If the software of a computer is sold to another country, the requirement to sell computer programs is determined based on the policy; however, the need for exports to exceed and go over the average number of exports in the preceding three licensing years does not be applicable.

Certificate of origin for IEC code license holder

The Certificate of Origin (CO) is a vital International business document. A Certificate of Origin certifies that the goods part of an export shipment were sourced, manufactured, or manufactured within a particular country.

The Certificate of Origin confirms an item's "nationality" and acts as a declaration by the exporter that they have met the requirements of customs or trade laws.

Banks, customs and private companies, and importers all require COOs for various reasons. In addition, almost every country needs CoO for the clearance of businesses. Consequently, IEC Cod License holders must apply for a Certificate of Origin if they intend to export outside of India.

The Certificate of Origin is issued by the Indian Chamber of Commerce and the Trade Promotion Council of India. In addition, the Import Export Code License holders can obtain two kinds of Certificates of Origin.

"Non-preferential Certificate of Origin specifies means that goods being shipped or imported are not eligible for preference in tariffs, and the applicable costs are imposed on the items being shipped.

"Preferential Certificates of Origin are given to products eligible for special tariff treatment when it comes to settlement of tariffs. These COs assist in confirming the authenticity of products subjected to lower tax rates or allowances when exported to countries that offer these advantages. They are usually connected with Regional Trade Agreements.

What's the difference between start-ups and SMEs

SMEs (Small and Medium Scale Businesses) get bank and NBFC business loans, while a start-up receives funds through investors. This is a fundamental difference between start-ups and SMEs. 

What is a start-up? 

Start-ups are a new concept in India, including all over the world. It is slightly different from the ultimate business and matches to some extent. Yes, it has both qualities. The concept of 'start-up' is based on the foundation of innovation, i.e., innovation, innovation, innovation, innovation. The goal of a start-up is to establish its product in the market and keep a place in the market for a long time.

Understand this in simple and intuitive language that when a business is started with a new idea, it is called a start-up. The new idea means that 'the idea of doing business should be unique so that the consumer gets the best experience.' At the same time, a start-up is expected that no one should copy the idea of the business.

What is SME?

SMEs or full form are Small Medium Enterprises (SMEs). SME includes the business of traditionally run service sector (service sector) and manufacturing sector. The business of the SME sector is started mainly to make a profit. Small Medium Enterprises (SMEs) can be profit-making from the first day of commissioning.

There is no innovation approach behind the SME business, but the business is started based on the need of the market and the number of customers. Small Medium Enterprises (SMEs) are called small businesses, medium class businesses, etc., in common parlance.

What's the difference between start-ups and SMEs?

As mentioned at the beginning of this article, 'Startup' is a new term for business based on innovation. The goal is to meet the needs of the people in a new way. For example, let us tell you that zip loans are a successful start-up in the fintech sector. ZipLoan provides business loans of up to Rs 7.5 lakh to MSME and SME business people in just three days without mortgaging anything.SME is a traditionally run business purely aimed at making a profit. SME Business can be a businessman running a grocery store on your street and may also be the urge to make a steel pot by melting the steel. At the same time, there are a lot of differences between start-ups and SMEs. Let's understand.

Differences in the definition of start-up and SMEs

The Government has made a certain definition of India for all the businesses in India. Based on the definition, businesses are taxed, and a government plan is created. According to the Government of India, the definition that has been prescribed for start-ups and SMEs is as follows:

Definition of Start-up

"A start-up is a business unit; a company will be considered a start-up for ten years from its registration. Any technology or intellectual property-driven start-up working towards innovation, development, processing or commercialization of new products or services, as long as it is a start-up, the turnover of any financial year of that company does not exceed Rs 100 crore."

Definition of Small Medium Enterprises (SMEs)

There are two businesses under SME. 

Small Enterprise (Small Scale Industries) and Medium Enterprises (Medium Industries)

The definition of MSME was changed at the time of the lockdown. The following is the definition of an enterprise that falls under SME:

Definition of Small Enterprise: Industries with investments of up to Rs 10 crore and have an annual turnover of up to Rs 50 crore are considered small unit enterprises (small scale industries). This definition is valid for both the manufacturing and service sectors.

Definition of Medium Enterprise: An industry with an investment of up to Rs 30 crore and an annual turnover of up to Rs 100 crore is considered a medium enterprise( medium industry). This definition is valid for both the manufacturing and service sectors.

The difference in profits between start-ups and SMEs

A major difference between small-medium enterprises (SMEs) and start-ups is 'profits.' A start-up is first established to set up a new business idea, and a new concept for the business is conceived. The business is set up in the market, and then the profit is thought about. At the same time, small-medium enterprises (SMEs) are set up for profit.

As an SME, it comes from setting up a shop to set up a medium-level power plant. The motive behind establishing all these is that profits start coming from the first day itself, and it also happens. Expecting profits from the initial year of a start-up is like turning the tide on one's expectations.

The difference in Main Power between Start-ups and SMEs

a start-up is a job of giving shape to a new business idea. It is very labor and jointly done by many people, and it takes a lot of people at once to run a start-up.

But, that's not the case with Small Medium Enterprises (SMEs) because there can be a shop in SMEs and a medium-level factory. So, here, as per the requirement, the main power is applied. In SME, a person can also work alone and extract profits according to his need. While with start-ups, this is not possible because start-ups are not a store but can have a shop in SMEs.

The Difference between Raising Funds between Start-ups and SMEs

Be it small-medium enterprises (SMEs) or start-ups; both require money to run them Where the money for the start-up is received through investors. At the same time, government-run start-ups are also available for start-ups by India. At the same time, small-medium enterprises (SMEs) are started with their own money.

However, the loan is available through the Mudra Loan Scheme run by the Government, but most of the money has to be invested by you to start a business. Yes, with SMEs, there is this feature that when the business has to be expanded, business loans from many financial institutions are very easily available.

 If you want to get more details the visit our website: https://www.taxacadmy.com/new-business-startup.html

Everything You Need To Know About The Trademark Registration Process In India

Whenever we buy a company's product, before buying that product, we check its trademark for the identity of that product because many companies give us the product. Today we will tell you about this trademark and what a trademark is. Along with this, how does trademark registration occur, and what documents are required for trademark registration.

**What is a trademark?**

A trademark is the "brand" or "logo" that you use to distinguish your product from your competitors. Any word, name, symbol, or device can be a trademark; the trademark is used to identify a business and distinguish between the goods of goods manufactured by a manufacturer or seller or sold by others, and to indicate the source of the goods. In short, a trademark is a brand name.

**What do you need a trademark?**

After the information given above, the question will be raised in your mind what does a company need a trademark after all? So let me tell you that a trademark is also an intellectual property right. The trademark on an item shows that it is being made on behalf of a particular company. A trademark is used by an individual, business organization, or legal entity for its product or service. Usually, a name, sentence, logo, particular sign, design, or picture is trademarked. All the products of a particular company have its trademark on them.

**What is a patent?**

While climbing the stairs of the entrepreneur, never forget that the ideas that have come to your mind can also come to someone else's mind. But the idea is considered to be the one that gets it officially registered. This process of entering the idea itself is given the name of the patent. The patent of an idea will bring its earnings to your pocket. If a person or entity copies you’re patent by patent, it will be considered legally invalid; the person or entity who copied your patent can be processed. The patent holder can also sell his patent to another person or entity. The maximum limit for patenting a product or item is 20 years.

**Differences in copyright, trademark, and patent**

Copyright is simply a form of intellectual property; it is different from trademarks, which protect from other people's use of brand names, mottos, logos, and other source identifiers. Copyright is also different from patent law, and patents protect your inventions.

**How to apply for trademark registration?**

You must have known that now tells you how to register a trademark. Let us tell you that the trademark registration can be done online by visiting the website of the Control General of Patent Design and Trademark website. The entire registration process of trademarks in India takes one and a half to two years.

You can register for trademarks both online and offline. For registration, first of all, do trademark search, or you can also apply through the official website of the Government of India, Ipi.

Fill out the application form and submit it to the Office of the Registrar of Trademarks. After getting approval later, you can use the symbol for ® your company or product. If the Trademark Examiner finds fault with your application, he will raise your Trademark Objection.

**Documents required for trademark registration**

Different documents are required for the trademark registration (Trademark Registration) according to the ownership of different companies.

For personal trademarks -If you are entering your trademark registration as an individual, the following documents are required:

• Trademark questionnaire or PAN, and Aadhaar, DL, Passport

• Power of Attorney (POA)

For the private limited company-

• Trademark Questionnaire

• Divisional resolution

• Power of Attorney (POA)

For Limited Liability Partnerships-

• Trademark Questionnaire

• Divisional resolution

• Power of Attorney (POA)

• For ownership

• Trademark Questionnaire

• Power of Attorney (POA)

For the Partnership Firm-

• Trademark Questionnaire

• Power of Attorney (POA)

For the society-

• Trademark Questionnaire

• Power of Attorney (POA)

For the trust-

• Trademark Questionnaire

• Power of Attorney (POA)

For the Hindu Undivided Family (HUF) –

• Trademark Questionnaire

• Power of Attorney (POA)

**Benefits of Trademark Registration**

**The benefits of trademark registration are as follows:**

After registration, you become the legal owner of that trademark. Because of this, no other person or company can use your trademark without your permission. If a trademark is not registered, it cannot be filed against any other company.

• Through the trademark, the company is able to create a good identity among its customers, so that the customer does not have much problem in searching for the product.

• The biggest advantage of the trademark is that the brand and name of the company are protected in it, if the trademark has been registered by a company, then you can take action against it if it is used by any other traders.

• Through the trademark, the company is able to create a good identity among its customers, so that the customer does not have much problem in searching for the product.

**What is a trademark called?**

Trade means trade and mark mean specific mark. Combining the two with this process creates a specific mark of trade. In official language, a trademark is the "unique identity" or "logo" that businessmen use to distinguish their product from their competitors. The trademark itself is called the brand name.

**What do you understand by brand and trademark?**

A trademark is a unique identification mark that traders use in business to make their product look different from other products or companies. The actual product or company is identified from the trademark itself. The registration of trademarks (Trademark Registration) is done at the District Trade Office. For which the legal process has to be followed. The brand is a sequel to the trademark. When the identity of a product or company becomes unique, that unique identity becomes the brand of that product or company. The brand creates an impact on the product which increases its value in the market.

**How to register your brand?**

The Copy Rights Act has been enacted with the objective of obtaining copyright on infusible property. The Trade Marks Act, 1999 is applicable for all rights and distinctions relating to trade. Under this, the brand is registered. To register the brand, you must first log in to the website of the Department for Promotion of Industry and Internal Trade. After this, you can register your company's trademark and brand name. The process of registering the brand is online. To register the brand, https://ipindia.gov.in/index.htm (https://ipindia.gov.in/index.htm) must log in to this website.

**What is the trademark?**

Trademark is a unique identity. This identity is in relation to a product or service. "Well known trademark" means a mark that has become well known to a substantial section of the public in respect of such goods or services as to which they use such goods or receive such service as to give copyright to the use of such mark in respect of other goods or services.

What is the purpose of the brand?

The purpose of the brand is to uniquely provide uniqueness to its product or service. This helps to distinguish the product or service from those competitors. According to an internationally agreed legal definition, a brand is a sign or indication to certify the origin of a product or service and distinguish it from the competition.

Eligibility, Process, and Requirements for MSME registration

Eligibility, Process, and Requirements for MSME registration

If you also have confusion about whether you can register for MSME or not then you're in the right place. In this blog, we will tell you who should do MSME registration and who is eligible for MSME registration.

MSME means micro, small, and medium enterprises. This industry sector is crucial for India's economy and plays a vital role in the country's growth rate. A Ministry has been created by the Central Government, keeping in view the contribution of this sector; the name of the Ministry is the Ministry of Micro, Small, and Medium Enterprises. In lesser terms, we know it by the name of MSME. The Ministry of Micro, Small, and Medium Enterprises was set up in 2006 under the MSMED Act, 2006. The functions of this Ministry include:

• Providing business loans to small enterprises is effortless and at cheaper rates.
• Providing tax benefits.
• Helping them avail of various schemes and subsidies. 

It is not that the benefits of the schemes being run for the enterprises can be availed by the same industries which have undergone MSME registration. Whenever the Government runs a scheme, it benefits all the enterprises equally. But, it is a different matter that priority is given to providing the scheme's benefits to the MSME registered enterprises. If you want to get the help of the scheme on a priority basis, you should contact the MSME registration.

Who can register the MSME?

The industry aadhaar registration, i.e., registration for micro, small and medium enterprises, can be done by the following institutions:

·         Proprietorship Firm

·         Government and private companies

·         LLP

·         Hindu Undivided Family (HUF)

·         Partnership firm

·         One Person Company

·         Co-operative Societies

·         Association of Persons (society created by people)

In addition, all those institutions can get MSME registration done, which acts under the guidelines of the Government. The primary documents required for MSMEs are Aadhaar cards.

Category of MSMEs

As per the new definition made under the MSMED Act, 2006, an industry with an annual turnover of up to Rs 5 crore is called a micro-enterprise. Whereas an enterprise with an annual turnover of 5 crores to 75 crores is called a small enterprise, an industry with a yearly turnover of 75 crores to 250 crores is called a medium enterprise.

Documents required for MSME registration

The important thing about MSME registration is that registration can be done online and offline. Registration is free, i.e., not a single penny has to be paid for registration. The required documents for MSME registration should be as follows:

·         Business Address Certificate (Business Address Proof)

·         Copies of sales bill and purchase bill (purchase and sale receipt)

·         Documents of legal incorporation (legal certificate of starting an industry)

·         Other necessary documents

Business Address Certificate (Business Address Proof)

For the address certificate of the industry, i.e., business address proof, business people have to give a certificate of the place where the business is located. It has to be told whose name the place is. The rent contract letter has to be shown if the place is for rent. If the place of business is on rent, no objection certificate of the place owner will also have to be given. No objection letter means that the landlord will write that he has no problem with running the industry in a letter.

Copies of sales bill and purchase bill (purchase and sale receipt)

 

When the industry is set up, and there is production, the product's sale occurs. Raw materials are purchased to make the product. Copies of sales and purchase bills (purchase and sale receipts) have to be given to these slips.

Documents of Legal Incorporation (Legal Certificate)

 If the enterprise runs in partnership with more than one person, then a legal certificate is required to register that industry. For the industry running in an alliance, it is necessary to submit a copy of the Memorandum of Association (MoA), an association of association (AoA), and a certificate of incorporation. Along with this, a copy of the board approving the company's registration as AN MSME is also required.

Other necessary documents 

In some cases of MSME registration, the applicant has to submit a copy of the industrial (industry) license. If this copy is not with the entrepreneur, it can be obtained from the office granting the industry license. Another important thing here is that you may also have to pay the bill to purchase machinery required in your industry.

Process of MSME Registration

The process of MSME registration is available both online and offline. To register online, you have to go to the official website of MSME and fill out the form and submit it. The following information has to be provided in the form to be filled for registration:

•         Aadhaar number of the applicant

•         Name, gender, PAN number, email ID, and mobile number of the applicant

•         Industry name, address, and PAN number

•         The number of employees working in the industry, the name and date of the work since

•         Bank account number and IFSC code

•         Major functions of the industry

•         Two-digit NIC code

•         Details of expenditure/investment incurred in the purchase of machinery/equipment

After filling out the form and attaching the relevant papers, it must be submitted. After submitting, you will get an application number. After a few days of verification, you will get the MSME certificate. You will have to go to the MSME website and download it online.

Benefits of MSME Registration

Talking about the benefits of MSME registration, there are many benefits from it. MSME registration has the following benefits:

•         Gets priority in the benefits of government schemes

•         Get a business loan at a low-interest rate

•         It is easy to get government grants

Many such facilities start getting after MSME registration. It can also be seen in such a way that if there is no profit from MSME registration, then there is no loss.

Everything You Need to Know about Reverse GST

In collecting and depositing taxes in GST, the government had also included the process of a reverse GST. To save traders from more hassles in the initial phase of GST implementation, the reverse charge was first kept in abeyance in July 2018 and then postponed to September 2018. Despite this, there is a lot of curiosity about the reverse charge among the businessmen, and it is also being searched a lot. Today we will tell you the reverse charge in GST and when it is levied. 

What is the reverse GST charge? 

You can understand the meaning of reverse charge by its name. The process of GST recovery, which is inverted rather than the normal process, is called reverse charge. You should consider it as such that in GST, usually the supplier, i.e., the person selling the goods or services, charges GST from the customer and deposits it to the government. But in some circumstances, the responsibility of GST is not on the supplier but on the receiver, i.e., the person who buys the goods or services; this is called the Reverse Charge Mechanism (RCM). In reverse charge, the buyer does not pay the GST to the seller and deposits the deposit directly to the government. In some circumstances, there is also a partial reverse charge, i.e., the responsibility of some part of GST is on the buyer, and the responsibility of the rest is on the seller. In a line to put in the reverse charge system, the responsibility of charging and depositing GST lies with the buyer, not the seller. 

Where does the reverse charge apply? 

1.     If you are a GST registered person and receive goods or services or both from an unregistered person, then the reverse charge will be applicable in this case, and you will make the payment of GST. But if the total supply does not exceed 5000 in a day, you will not be paying GST.

2.      Services provided to the Company by the Director of the Company.

3.      Supply goods by road to the specified person by Goods Transport Agency (GTA)

4.      To provide services to a business entity by an advocate or an advocate firm

5.      Providing services to business entities by Arbitral Tribunal

6.      Services provided by a recovery agent to the banking company, financial institution, NBFC

7.      Providing sponsorship services by any person to the body corporate or partnership firm

8.      The reverse charge will apply to importing services from outside India. Importing services is considered an interstate sale so IGST will be payable on 

9.      Principal benefits to the insurance company by the insurance agent

What is the need for the reverse charge?

The concept of reverse charge has been created to prevent tax evasion and widen the scope of taxes. It is impossible to recover GST from the shopkeeper or person not registered with the GST network. A reverse charge system has been developed to keep such deals within the tax ambit and charge GST. 

When is the reverse charge applied? 

Sections 9(3), 9(4), and 9(5) of the Central GST and State GST Acts govern the reverse charge scenarios for interstate transactions. Also, Sections 5(3), 5(4), and 5(5) of the Unified GST Act govern reverse charge scenarios for inter-state transactions. 

Let's understand in detail these scenarios: 

A.    Supply of specific goods and services specified by CBICAs per the powers conferred in Section 9(3) of the CGST Acts, the CBIC has issued a list of goods and services on which reverse charge is applicable.

B.     Supply to the registered dealer from the unregistered dealer section 9(4) of the CGST Act states that if a seller supplies goods to a person registered under GST if he is not registered under GST, the reverse charge will be applicable. 

This means that GST has to be paid directly to the receiver instead of the supplier. The registered buyer who has to pay GST under the reverse charge will have to invoice himself for the purchase made. In intra-state purchases, CGST and SGST are to be paid by the buyer under the reverse charge mechanism (RCM). Also, in inter-state purchases, the buyer will have to pay IGST. The government notifies the list of goods or services to which this provision is attracted from time to time. In case of supplies made by unregistered persons to the registered persons, the RCM was postponed till September 30, 2019. Earlier, this provision was in force from October 1, 2018. In the real estate sector, the government notified that the promoter should buy inward supplies only from registered suppliers to 80%. 

Suppose there is an 80% reduction in purchases from registered dealers, so the promoter should levy 18% GST on the reverse charge to the extent of less than 80% of the inward supply. However, if the promoter buys cement from an unregistered supplier, he will pay 28% tax. This calculation has to be done despite 80% of the calculation. The promoter is liable to pay GST based on reverse charge on TDR or floor space index supplied on or after April 1, 2019. Even if a landlord does not engage in a regular business of land-related activities, such a person's transfer of development rights is liable for promoter GST as it is treated as a service supply under Section 7 of the CGST Act.

Moreover, in case of outward supply of TDR by one developer to another, GST is applicable at 18% on reverse charge.

C.     Supply of services through e-commerce operators types of businesses can use e-commerce operators as an aggregator to sell products or provide services. Section 9(5) of the CGST Act states that if a service provider uses an e-commerce operator to provide specified services, the reverse charge will apply to the e-commerce operator. He will be liable to pay GST. This section covers services such as Transport services to passengers by radio-taxi, motor cab, maxi cab, and motorcycle. For example, Ola, Uber provides accommodation services in hotels, inns, guest houses, clubs, campsites, or other commercial places for residential or stay purposes. Except that the person supplying such service through an electronic commerce operator is liable for registration because turnover exceeds the threshold limit for registration. For example – Oyo and MakeMyTrip. Housekeeping services, such as plumbing and carpentry, except where the person supplying such services through electronic commerce operators is liable for registration due to turnover exceeding the threshold limit. For example, Urban Clap provides the benefits of plumbers, electricians, teachers, beauticians, etc. In this case, Urban Clap is liable to pay GST from customers and collect it from customers instead of registered service providers. Also, suppose that the e-commerce operator does not have a physical presence in the taxable area. In that case, the person representing such an electronic commerce operator shall be liable to pay tax for any purpose whatsoever. If there is no representative, the operator will appoint a representative who will be liable to pay GST.

Time of supply under RCAM

Time of supply in case of goods case of reverse charge, the time of supply of goods will be the earliest of the following dates:

•         Date of receipt of goods

•         Date of payment

•         Date immediately after 30 days from the date of issue of invoice by the supplier.

 It is impossible to determine the time of supply; the time of supply will be the date of entry into the recipient's books of account. 

Who should pay GST under RCM? 

As per the provisions of the GST law, the person supplying the goods will have to mention in the tax invoice whether the tax is payable under the RCM. The following things should be kept in mind while making GST payments under RCM:

•         The recipient of goods or services can avail itc on the tax amount paid under RCM only when such goods or services are used to further the business or business.

•         A composition dealer should pay tax at regular rates and not structure rates while discharging liability under RCM. Also, they are ineligible to claim any input tax credit of the tax paid.

•         GST compensation cess may apply to tax payable or paid under RCM. 

Input Tax Credit (ITC) under RCMA 

The supplier cannot take GST paid under RCM as ITC. The recipient can avail itc on the GST amount paid under the RCM on receipt of goods or services only if such goods or services are used or used for commercial purposes. The recipient cannot use ITC to pay output GST on goods or services under reverse charge and should be paid only in cash. 

What is self-invoice?

 To be invoiced when purchased from an unregistered supplier, and such purchase of goods or services falls under a reverse charge. This is because your supplier cannot issue you a GST-compliant invoice, and thus you become liable to pay taxes on their behalf. Therefore, in this case, it becomes necessary to create an invoice. Also, Section 31(3)(g) states that a recipient who is liable to pay tax under section 9(3) or 9(4) shall issue a payment voucher at the time of payment to the supplier.

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