Page 11 - Banking Finance May 2019 N

GST UPDATE

GST bring windfall for Chartered Accountants Builder can't charge

With increasing regulatory scrutiny and governance standards, the demand for
chartered accountants (CAs) to help navigate busi- higher GST for location,
ness is at an all-time high, data from placement parking
records of the Institute of Chartered Accountants of Authority on Advance Ruling (AAR) in
India (ICAI) showed. West Bengal
Pay packages, too, have improved as the highest sal- has con-
ary in case of international job postings has now cluded that
doubled to Rs 36 lakh per annum compared to last year. A total of 3,815 job services such
offers were made to the 6,646 qualified CAs who opted to take part in the as preferen-
placement cycle of ICAI in February-March 2019, up from 1,473 offers received tial location
by CAs during 2018. and facilities like car parking in
apartments should be treated as
Accenture, Alstom, Barclays Global Services, Flipkart, Amazon, ITC and ANI
Technologies (Ola) are some of the companies that hired CAs from ICAI campus "composite construction service"
placements this time. ICAI said there was high demand for CAs from the bank- and attracts the same levy as con-
ing sector too. "This placement programme has attracted the highest ever struction. After the ruling, builders
participation from recruiters, offering most positions since the inception of the will now have to charge 5% GST on
institute," ICAI president Prafulla P Chhajed told. services bundled with affordable
homes and 8% on others.
The introduction of reforms like GST and the overall increase in economic activity
have increased the demand for CAs in the business world from companies. "New Several builders, including some of
reforms in taxation and continuous changes in the Companies Act and rules have the top players, were charging 18%
prompted enterprises to take a systematic approach to compliance, resulting in GST on these services, while the gov-
increased demand for CAs," CIEL HR Services director & CEO Aditya Narayan ernment had lowered the rate for
Mishra said. under construction apartments. The
government allows one-third abate-
Small B2C entities, restaurants under scanner for GST ment or rebate on the value of land,
that results in the actual levy com-
evasion ing to 8% for non-affordable cat-
GST officers are working out a mechanism to deal with non-payment of taxes egory residential units when the GST
by a large number of small restaurants and B2C en- rate is 12%. "Taxability of ancillary
tities which are collecting taxes from customers but charges recovered by builders like
not depositing the levy with the government. Several preferential location charges (PLC),
consumers have filed complaints through a mobile parking charges, transfer fees, exter-
app -Iris Peridot - that GST was charged by small res- nal development charges, internal
taurants but the eatery neither deposited taxes with development charges (IDC), docu-
the government nor filed GST returns. ment charges etc has been a matter
Many customers have downloaded the Iris Peridot app, developed by a GST of dispute even under the erstwhile
Suvidha Provider, allowing them to scan the unique GST Identification Number service tax regime.
(GSTIN) of a business and find out whether the returns have been filed by the With this ruling, it is likely that di-
entity. Complaints of consumers about non-filing of returns by the entities which verse practices adopted by builders
are charging Goods and Services Tax (GST) are being forwarded on a real-time on taxability of PLC and parking
basis to the tax department for further action. charges end, and such services
Small businesses with an annual turnover of up to Rs 1.50 crore can opt for the henceforth are made liable to tax at
composition scheme and file returns quarterly. However, such businesses are the lower rate as applicable to con-
not allowed to charge GST from consumers and are required to print on their struction services." said Harpreet
invoice that they are under the composition scheme and hence not supposed Singh, partner at consulting firm
to charge GST on supplies. KPMG.

BANKING FINANCE | MAY | 2019 | 11