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GST, a game-changer reform for logistics sector

GST, a game-changer reform for logistics sector

It has been 15 months since the rollout of what is considered one of India’s biggest tax reforms — the Goods and Services Tax (GST). But, we are already witnessing a major positive transition in the logistics sector.

Outsourcing and the value addition in the logistics sector is set to take off post-GST. Considering the double-digit growth, the logistics market would exceed $250 billion in the next two years. As per a recent survey, the Indian logistics sector provides livelihood to 22 million-plus people, which is expected to be over 40 million by 2020. The high rate of growth in the next couple of years is expected largely due to the implementation of GST.

GST has replaced at least 7 indirect tax heads and has eliminated the need for warehouse hubs across States. Further, GST has eliminated check posts across the nation and thereby waiting time, leading to at least 12-15% reduction in the turnaround time of trucks.

Better utilization of assets like vehicles and warehouses will lead to efficiency and increased productivity thus lowering overall cost. This would considerably benefit the supply chain directly and India’s growth indirectly.

The manufacturing and other services sectors have now started planning their supply chains, bearing in mind fleet cost and fast delivery, rather than tax structure and compliance.

Competitive edge

Pre-GST, the Indian logistics sector was struggling to add value to customers, compared to global peers. Indian firms were seen as labor contractors or mere transporters, which denied them the benefits of being a part of the supply chain. But the equation has changed now.

Manufacturers are looking to optimize supply chains and are willing to outsource value-added planning to logistics players, who have invested in technology and operate with a focus on quality and compliance. These logistics players are seeing a positive shift in the mindset of their clients and are gaining momentum. Further, small transporters can also now work with third-party logistics (3PL) providers and expand their fleet. GST has aided this move at a faster clip.

Post GST, there is a marked improvement in the use of technology and digitization by logistics players. 3PL players can become real ‘differentiators’ as they embrace technology to enhance the visibility of load carried, turn-around time, vehicle utilization, improvement in loading/unloading time by removing congestion at the docks, and the like.

Equipped with technology and software for load design solutions, vehicle geo-tracking, inventory (order/part level) tracking and route optimization, 3PL players add more value to their customers’ supply chain.

Logistics costs have been one of the biggest stumbling blocks for Indian manufacturers eyeing exports. At about 13-14% of GDP, India’s logistics cost is high and compares with about 8% in advanced nations that have efficient systems. This despite the percentage of outsourcing being higher in developed markets.

The Centre has made clear its intention to bring down this cost to less than 10%, which would make Indian manufacturers globally relevant.

The Centre created a new division in the Commerce Ministry to deal with the integrated development of logistics and urged all stakeholders to bring to India relevant best practices to enhance efficiency in logistics.

This is a good move as logistics firms used to deal with six different ministries separately and each would require separate paperwork and formalities. It is a big sense of relief to note there will soon be a system where a single document would be accepted for multi-modal logistics within India.

India has moved from the 54th position in 2014 to 44th in 2018 in the World Bank’s Logistics Performance Index.

Infrastructure status

The much-awaited ‘infrastructure’ status to the sector was conferred in November 2017, which is helping the sector avail cheaper finance (2% lower) for its warehousing and cold storage needs.

This will bring in a lot more players with an integrated service approach that would again help Indian manufacturers. New investments in this sector is good news as it could create a lot more jobs in the near future.

Together, the implementation of GST and other reforms have already started bringing efficiencies into the supply chain of various firms. Digitization, asset utilization, and visibility enhancement are facilitating better value-added outsourcing to logistics firms.

The government, too, has realized that aspirations for economic growth, employment generation, manufacturing, and exports are all inextricably linked to the efficient management of logistics.


Ease Your GST Filing & Invoice with XaTTaX GST Software

Source: The Hindu
Author: T V Sundram Iyengar 
GST paid under a Wrong Head by Mistake can be Transferred to the Right Head: Kerala HC

GST paid under a Wrong Head by Mistake can be Transferred to the Right Head: Kerala HC

The Kerala High Court has directed the GST department to transfer the tax amount paid by the petitioner under a wrong head instead of another by mistake.

In the instant case, the goods transported by the petitioner was detained by the department and imposed tax and penalty on the same. To get the goods released, the petitioner agreed to pay the whole amount. However, the amount was paid under the head ‘SGST’ instead of ‘IGST.’

Before the High Court, the petitioners relied on Section 77 of the GST Act and also Rule 4(1) of the GST Refund Rules, 2017.

Section 77 provides for the refund of the tax paid mistakenly under one head instead of another. But Rule 4 speaks of adjustment. Where the amount of refund is completely adjusted against any outstanding demand under the Act, an order giving details of the adjustment is to be issued in Part A of FORM GST RFD-07. The petitioner’s counsel lays stress on this process of adjustment and asserts that the amount remitted under one head can be adjusted under another head, for the demand can be any amount under the Act.

Allowing the petition, Justice Dama Seshadri Naidu held that “Under these circumstances, I find no difficulty for the respondent officials to allow the petitioner’s request and get the amount transferred from the head ‘SGST’ to ‘IGST’. It may, as the Government Pleader has contended, take some time, but it is inequitable for the authorities to let the petitioner suffer on that count.”

“So I hold that the 2nd respondent will release the goods forthwith along with the vehicle and, then, ensure that the tax and penalty already stood remitted under the ‘SGST’ is transferred to the head ‘IGST’,” the Court said.


XaTTaX – World Class Automated eSolution for Return filing and e-Waybill

Source: Tax Scan
Download Free – HSN Classification under GST E-Book

Download Free – HSN Classification under GST E-Book

Under Indirect Tax Laws, classification is the categorization of goods or services crucial to ascertain whether a subject matter is exigible to tax, exemption, the rate of tax etc. In GST regime, classification of goods has to be in accordance with Customs Tariff Act which is based on the Harmonized System of Nomenclature (HSN). The classification of services is based on the service code (tariff). Classification of goods or services is a complex procedure of ascertaining whether goods or services are composite, non-composite or mixed, and how to resolve competitive entries etc.

Also Read: Understanding HSN Codes and SAC Under GST

To provide some solution to these issues, the Indirect Taxes Committee of the ICAI has come out with “E-Handbook on classification under GST’. This e-publication inter alia covers meaning, need, principles/rules to be considered, steps to be followed etc. for aptly classifying goods/services. This e-handbook provides a deeper knowledge of provisions pertaining to Classification of goods and services under GST in a simplified manner along with relevant notifications issued and few judicial pronouncements.

Book Cover Following topics-

1. Introduction

2. Identification of Supply of Goods or Services

3. Classification of activities which are neither Supply of Goods nor Supply of Services

4. Identification of Composite Supplies or Mixed Supplies

5. Classification of goods as per Notification

6. General Rules of Interpretation

7. Classification Principles Evolved By Courts

8. Classification of Services as per Notification

Download Free e-book by ICAI on HSN Classification under GST

Filing GSTR-1 return using XaTTaX GST Software

Filing GSTR-1 return using XaTTaX GST Software

GSTR-1 Filing through XaTTaX GST Software

With GST filing around the corner, it becomes necessary for you to understand how to file your GSTR-1 return with simple steps using our state-of-the-art GST filing and reconciliation solution – XaTTaX.

  What is GSTR-1 return?

 GSTR-1 return needs to be filed by all individuals, who are registered under GST. The taxpayer needs to provide details of the outward returns (sales), upload and file the invoices with GSTN. The due date to file this return is 10th October 2017.

What do you need to report in your GSTR-1 return?

 As outlined earlier, GSTR-1 is a sales return and every tax payer has to mandatorily report the following set of information in this return:

  • Invoice summary that includes invoice types, credit notes and advance receipts
  • Summary of documents issued
  • Summary of HSN/SAC
  • Details of the turnover, which should be provided only once.

Now, let’s understand the procedure for filing the GSTR-1 return using XaTTaX:

  1. Login to XaTTaX as an accountant.

XaTTaX GST Software Login Page

Figure 1

  1. From the Home page, select the GSTIN that you want to access to direct you to the Dashboard.

Note: You can switch between different GSTINs from a single legal entity.

  1. In the Dashboard, you can view the analytics pertaining to various returns such as GSTR-1, GSTR-2, apart from other useful information such as list of activities, returns dates and XaTTaX updates.

XaTTaX GST Software Dashboard

Figure 2

  1. In the GSTR 1 – DATA IMPORT screen (appears when you click GSTR 1 -> Import in the left section), click Browse to choose the desired file and then click Import to import the GSTR-1 data in Tally or XaTTaX format (excel).

XaTTaX GST Software Dashboard GSTR 1

Figure 3

  1. Click Classify to classify the invoices into various categories such as B2B, B2C, etc and then click Submit for Approval.

 The invoices get routed to the manager for approval.

XaTTaX GST Software GSTR 1 Outward Transaction

Figure 4

  1. Once the manager approves the invoices, you can proceed to save, submit and file the GSTR-1 returns with GSTN.

This ends the process of filing the GSTR-1 return using XaTTaX, which is quite simple and ensures 100% security.

Also read: How to File GSTR 3B in Details and download GSTR 3B- Format.


XaTTaX: Cloud and On-Premises Based GST Filing Software For India

As Official Deadline Passes, Only 46 lakh File Final GST Returns for July

As Official Deadline Passes, Only 46 lakh File Final GST Returns for July

GST returnAbout 70% (46 lakh) of the assessees under the Goods and Services Tax (GST) had filed detailed sales returns for July as on Tuesday (October 10), the official deadline. Low compliance, said officials.

No further extension was given; the deadline had been extended twice earlier. About 4.59 million entities of the eligible 6.5 million filed the GSTR-1 return, for the first month of GST.

“We will assess why many people have not filed. We have already sent reminders to those who filed GSTR-3B, the summarised return form, but not GSTR-1,” said a GST Network (GSTN) official.

The deadline to file GSTR-1 was extended by a month from September 10 at the GST Council meeting last month in Hyderabad. Earlier, the deadline was extended from September 5 on account of technical issues with GSTN.

If a taxpayer fails to file GSTR-1 by the deadline, the buyer of his products would face difficulty in availing of input tax credit. Which is why, noted Pratik Jain, partner at consultancy PwC, the number of GSTR-1 returns are much lower than what one would have expected.

It is possible many dealers with GST registration have nil turnover and, hence, did not file the return. “The government will have to investigate the reasons and take corrective steps,” he added.

Three million returns had been filed as of September 10, the day after the announcement of the extension. About 1.5 million more returns were filed after that.

GSTR-1 has 13 sections containing details of sales transactions of a registered dealer for a month. A little more than 330 million invoices were filed and processed by the GST system along with the GSTR-1 of July. Of this, 73% were uploaded using the offline tool developed by GSTN; 16% of the invoices came through GST Suvidha Providers.

The inward supplies return or GSTR-2 for July has to be filed by October 31. And, GSTR-3 for the month by November 10. Once a taxpayer files GSTR-1, the government utilises the information to verify GSTR-3 for the dealer and GSTR-2A for dealers to whom supplies have been made.

Read: GST Council to discuss bringing real estate under its ambit: Arun jaitely

For the transition period, the government has allowed assessees to file self-summary returns for input-output, called GSTR-3B.

The lower-than-expected GSTR-3B returns filed in the first two months of GST implementation had prompted revenue secretary Hasmukh Adhia to ask central and state commissioners to urgently conduct a survey to know why. Only about 6% of those eligible filed GSTR-3B, for August; 84.2% did so for July. Of the 7.3 million eligible ones, 4.7 million filed the summarised return for August.

The questions suggested in the survey on why GSTR-3B was not filed are: The site was not functioning, filing process was too complicated, system didn’t allow me to file nil return and ‘could not’ preview return details before filing returns. In addition, tax officers will take suggestions for improving the returns filing process.

Last week, the GST Council, chaired by Union finance minister Arun Jaitley, eased compliance rules for small and medium enterprises. Those with annual turnover up to Rs 1.5 crore will from October onward need to file returns and pay taxes only quarterly, not monthly. It also raised the eligibility limit in terms of annual turnover to Rs 1 crore from the current Rs 75 lakh for the composition scheme, which allows a flat rate and easy compliance. The window will be open until March 31 next year.

Assessees are required to file and pay taxes only quarterly under the composition scheme. A trader pays at 1%, a manufacturer at 2% and a restaurant owner at 5% but they are not allowed input tax credit. About 90% of taxpayers under GST have annual turnover up to Rs 1.5 crore.


XatTaX: India’s most trusted GST compliance software – 100% accurate GST filing

Source: The Wire

Are businesses really facing problems or is it just another political stunt with GST?

Are businesses really facing problems or is it just another political stunt with GST?

Are businesses really facing problems or is it just another political stunt with GST?

Lately, we hear a lot of criticism from all sections of the society, particularly the traders, who are clamouring about the tax burden, compliance difficulties, obstacles in doing business and so on. However, the Government has a different take on this (GST) , which does not support any of these claims.

As per the latest (July) statistics from the Government, you will be surprised to note that 40% of the assessees pay nil tax, while the remaining 60% did not have cash liability of over Rs. 33,000. Now, let’s get into details.

In the July month, almost 54 lakh businesses filed their returns out of which 40% have claimed ‘nil’ tax liability, without paying a single penny. That implies, around 22 lakh businesses did not even pay a single rupee of GST. Among the remaining 60% of the population or roughly around 32 lakh businesses, many did not have the cash liability and accordingly they have opted to avail the credits available for service tax or excise that they had paid, before GST was introduced on July 1. Within this figure, close to 70% had a tax liability between Rs. 0 – 33,000. However, a small figure comprising of just 10,000 companies or 3% accounted for a major GST share, i.e., 2/3rd of the GST that the Government has collected in the month of July.

Also read: Why a service provider needs to register for GST across several states

Current status of the registered buyers

According to Finance Minister, Arun Jaitley, at present, close to one crore businesses and service providers have been registered, wherein 72 lakhs have migrated from the previous tax era, while 25 to 26 lakh new taxpayers have been added. He further added that over 94-95% of the collections were mopped from large assessees (with the turnover of over Rs. 1.5 crores), who make up roughly 10% of the overall registered taxpayers.

Then, why this criticism?

One of the senior officials has quoted that everyone is simply seeking exemptions, but most are not paying taxes. Political parties, on the other hand, are blaming the government for its poor implementation for the problems being faced by several quarters of taxpayers. However, the government on its part has its own version of why criticism has been mounted from various quarters. One reason is that earlier several entity were out of the tax purview or simply evading taxes, but are now coughed up to pay taxes. The government also admitted that as of now there were low tax collections, but in near future, the government is planning to widen the base and create space in the future, thereby reducing the tax rates.

Concept paper to help in tailoring the GST rates

In the recently concluded meeting on GST, Jaitley said that the GST council has decided on how rates would be determined in the future. He added that as revenue increases and based on the revenue neutrality situation in the future, rates will be tailored, as per the Concept paper, which has been approved.

Need to know about the latest development in GST? Subscribe to our newsletter. Or need any help in filing tax returns? Talk to our experts at 8099512513 or email us at gst@xattax.in.


XaTTaX: Cloud and On-Premises Based GST Filing Software For India

Mixed Supply and Composite Supply under GST

Mixed Supply and Composite Supply under GST

MIXED SUPPLY AND COMPOSITE SUPPLY UNDER GST

Mixed Supply Under GST

In Mixed supply two or more individual supplies combination of goods or services with each other for a single price. Each of these items can be supplied separately and is not dependent on each other. In other words, the combination of goods or services are not bundled due to natural necessities, and they can be supplied individually in the ordinary course of business.

For tax liability purpose, mixed supply consisting of two or more supplies shall be treated as a supply of that item which has the highest tax rate.

Example:

Many shops offer combo packs of Tie, watch wallet, pen and they are bundled as a kit and this kit is supplied for a single price and the supply of one item does not naturally necessitate the supply of other elements. Hence the supply is a mixed supply. Now let us assume that tax rate for a tie, watch, wallet, pen are 12%, 18%, 5%, 4% respectively. In this case, watch attracts the highest rate of tax in the mixed supply i.e., 18%. Hence, the mixed supply will be taxed at 18%.

 

Composite Supply Under GST

Composite supply consists of two or more goods/services, which is naturally supplied with each other in the ordinary course of business and one of them is a principal supply. The items cannot be supplied separately. In other words, goods and services are bundled owing to natural necessities. The elements in a composite supply of goods and services are dependent on the ‘principal supply’ of goods or services.

Principal supply means the supply of goods or services which constitute the predominant element of a composite supply and to which another supply is ancillary/secondary.

The following conditions are necessary for composite supply under GST:

  • Supply of two or more goods or services together, AND
  • It should be a natural bundle and they cannot be separated

Note:- If the second condition is not fulfilled then it becomes a mixed supply. For tax liability purposes, the tax rate applicable to the principal supply will be effected on the composite supply.

Example:

A Five-star hotel provides four days and three-night package, with breakfast. This is a composite supply as the package of accommodation facilities and breakfast is a natural combination in the ordinary course of business for a hotel. In this case, the hotel accommodation is the principal supply, and breakfast is ancillary to the hotel accommodation. Now, Let us assume, the hotel accommodation attracts 18% tax and the restaurant service attracts 12% tax. As per the example, hotel accommodation is the principal supply, and the entire supply will be taxed at 18%.


XaTTaX: Cloud and On-Premises Based GST Filing Software For India

How to File GSTR 3B in Details and download GSTR 3B- Format

How to File GSTR 3B in Details and download GSTR 3B- Format

GSTR 3B return

GSTR 3B  is a simplified summary return and the purpose of the return is for taxpayers to declare their summary GST liabilities for the tax period and the discharge of these liabilities in a timely manner.

A normal taxpayer is required to file Form GSTR-1 & 2, GSTR-3 return for every tax period. In case of extension of due dates for filing of GSTR-1 and GSTR-2, GSTR 3B needs to be filed by them (in addition to the GSTR-3 return), as and when notified by the government.

Note:

  • Taxpayer has to submit GSTR 3B even if there is no business activity. (Nil Return).
  • Mismatch report will not be generated based on GSTR 3B rather the same will be generated only after filing of GSTR-1, 2 and 3 for the applicable tax period.
  • Amendment of GSTR 3B is not allowed.

 

Due Date For Filling Form GSTR 3B Return For August is 20th September

Sl. No. Month Last Date for filing of return in FORM GSTR-3B
(1) (2) (3)
1. August, 2017 20thSeptember, 2017
2. September, 2017 20thOctober, 2017.
3. October, 2017 20th November, 2017
4. November, 2017 20th December, 2017.
5. December, 2017 20th January, 2018

Download Excel Format – Donwload 3B Format

 

To create, submit, pay taxes and file GSTR 3B return, perform the following steps:

  1. Login and Navigate to GSTR 3B – Monthly Return page
  2. Enter Details in Section – 3.1 Tax on outward and reverse charge inward supplies
  3. Enter Details in Section – 3.2 Inter-state supplies
  4. Enter ITC Details in Section – 4. Eligible ITC
  5. Enter Details in Section – 5. Exempt, nil and Non GST inward supplies
  6. Enter Details in Section – 5.1 Interest and Late Fee
  7. Submit and Save GSTR 3B
  8. Enter Payment Details in Section – 6. Payment of Tax
  9. File GSTR 3B

Login and Navigate to GSTR 3B – Monthly Return page

1. Access the www.gst.gov.in URL. The GST Home page is displayed.

2. Login to the GST Portal with valid credentials.

3. Click the Services > Returns > Returns Dashboard command.

 

 

4. The File Returns page is displayed. Select the Financial Year & Return Filing Period (Month) for which you want to file the return from the drop-down list.

5. Click the SEARCH button.

 

 

6. The File Returns page is displayed. This page displays the due date of filing the returns, which the taxpayer is required to file using separate tiles.

In the GSTR 3B tile, click the PREPARE ONLINE button.

 

Note: The due date for filing GSTR 3B is displayed on this page.

 

 

The GSTR-3B – Monthly Return page is displayed.

 

 

There will be several tiles representing Tables to enter relevant details. Click on the tile names to provide requisite details, for the relevant tax period:

 

3.1 Tax on outward and reverse charge inward supplies: To provide summary details of outward supplies and inward supplies liable to reverse charge and tax liability thereon.

3.2 Inter-state supplies: To provide details of inter-state supplies made to unregistered persons, composition taxable persons and UIN holders and tax thereon.

4. Eligible ITC : To provide summary details of Eligible ITC claimed, ITC Reversals and Ineligible ITC.

5. Exempt, nil and Non GST inward supplies: To provide summary details of exempt, nil and Non GST inward supplies.

5.1 Interest and Late Fee: To provide summary details of Interest and Late fee payable.

6. Payment of Tax: To provide details of payment of taxes, interest and late fee.

Enter Details in Section – 3.1 Tax on outward and reverse charge inward supplies

To provide details of outward supplies and inward supplies liable to reverse charge, perform the following steps:

1. Click the 3.1 Tax on outward and reverse charge inward supplies tile.

 

 

2. Enter the Total Taxable value, Integrated Tax, Central Tax, State/UT Tax and Cess under respective nature of supplies column. In case of other outward supplies (Nil Rated, exempted ) and Non-GST outward supplies, the total taxable value imply the total values of such supplies, excluding taxes.

3. Click the CONFIRM button.

 

 

You will be directed to the GSTR-3B landing page and the 3.1 Tax on outward and reverse charge inward supplies tile in GSTR-3B will reflect the added data in a summary form. The taxpayer is advised to click on SAVE GSTR-3B  button at the bottom to save the data in the GST system, if he wants to exit at this stage and come back later to complete the filing.

 

Enter Details in Section – 3.2 Inter-state supplies

To provide details of inter-state supplies made to unregistered persons, composition taxable persons and UIN holders and taxes thereon, perform the following steps:

1. Click the 3.2 Inter-State supplies tile.

 

 

Supplies made to Unregistered Persons

2. In the section Supplies made to Unregistered Persons, from the Place of Supply (State/UT) drop-down list, select the place of supply.

3. In the Total Taxable Value field, enter the total taxable value for each State/UT.

4. In the Amount of Integrated Tax field, enter the amount of integrated tax. Please ensure that the integrated tax amount provided here do not exceed the integrated tax liability declared at (a) row in Table-3.1. Only integrated tax amount has to be declared, cess amount is not required to be mentioned.

5. Click the ADD button to provide details of such supplies for another state.

Note: Select the checkbox and click the REMOVE button to remove the data added. The system will accept only one entry for each place of supply. The details of tax paid on exports may not be entered here.

 

 

Supplies made to Composition Taxable Persons

2. In the section Supplies made to Composition Taxable Persons , from the Place of Supply (State/UT) drop-down list, select the place of supply.

3. In the Total Taxable Value field, enter the total taxable value for each State/UT.

4. In the Amount of Integrated Tax field, enter the amount of integrated tax. Please ensure that the integrated tax amount provided here do not exceed the integrated tax liability declared at (a) row in Table-3.1. Only integrated tax amount has to be declared, cess amount is not required to be mentioned.

5. Click the ADD button to provide details of such supplies for another state.

Note: Select the checkbox and click the REMOVE button if you want to remove the data added. The system will accept only one entry for each place of supply. The details of tax paid on exports may not be entered here. The information regarding supplies to composition taxable persons has to be based on the information available with the taxpayer.

 

 

Supplies made to UIN holders

2. In the section Supplies made to UIN holders, from the Place of Supply (State/UT) drop-down list, select the place of supply.

3. In the Total Taxable Value field, enter the total taxable value for each State/UT.

4. In the Amount of Integrated Tax field, enter the amount of integrated tax. Please ensure that the integrated tax amount provided here do not exceed the integrated tax liability declared at (a) row in Table-3.1. Only integrated tax amount has to be declared, cess amount is not required to be mentioned.

5. Click the ADD button to provide details of such supplies for another state.

Note: Select the checkbox and click the REMOVE button to remove the data added. The system will accept only one entry for each place of supply. The details of tax paid on exports may not be entered here. The information regarding supplies to UIN  holders has to be based on the information available with the taxpayer.

 

 

6. Once all details are added, click the CONFIRM button.

 

 

You will be directed to the GSTR-3B landing page and the 3.2 Inter-State supplies tile in GSTR-3B will reflect the total of taxable value and integrated tax as declared in the details table. The taxpayer is advised to click on SAVE GSTR-3B button at the bottom to save the data in the GST system, if he wants to exit at this stage and come back later to complete the Return filing process.

 

 

Enter ITC Details in Section – 4. Eligible ITC

To provide details of eligible ITC claimed, perform the following steps:

1. Click the 4. Eligible ITC tile.

 

 

2. Enter the Integrated Tax, Central Tax, State/UT Tax and Cess vales under respective ITC claimed/ ITC reversed/ Ineligible ITC heads.

3. Click the CONFIRM button.

 

 

You will be directed to the GSTR-3B landing page and the 4. Eligible ITC tile in GSTR-3B will reflect the total value of Integrated Tax, Central Tax, State/UT Tax and Cess net ITCs. The taxpayer is advised to click on SAVE GSTR-3B button at the bottom to save the data in the GST system, if he wants to exit at this stage and come back later to complete the filing.

 

 

Enter Details in Section – 5. Exempt, nil and Non GST inward supplies

To add values of exempt, Nil and Non GST inward supplies, perform the following steps:

1. Click the 5. Exempt, nil and Non GST inward supplies tile.

 

 

2. Enter the Inter-state and Intra-state supplies under respective Nature of Supplies head.

3. Click the CONFIRM button.

 

 

You will be directed to the GSTR-3B landing page and the 5. Exempt, nil and Non GST inward supplies tile in GSTR-3B will reflect the total value of Inter-state and Intra-state supplies. The taxpayer is advised to click on SAVE GSTR-3B button at the bottom to save the data in the GST system, if he wants to exit at this stage and come back later to complete the filing.

 

 

Enter Details in Section – 5.1 Interest and Late Fee

To add details of the Interest and Late fee payable, perform the following steps:

1. Click the 5.1 Interest and Late Fee tile.

 

 

2. Enter the Integrated Tax, Central Tax, State/UT Tax and Cess under Interest and Late fee heads. The late fee would be system computed based on the number of days elapsed after the due date of filing.

3. Click the CONFIRM button.

 

 

You will be directed to the GSTR-3B landing page and the 5.1 Interest and Late Fee tile in GSTR-3B total value of Integrated Tax, Central Tax, State/UT Tax and Cess. The taxpayer is advised to click on SAVE GSTR-3B button at the bottom to save the data in the GST system, if he wants to exit at this stage and come back later to complete the filing.

 

 

7. Once all details are added, click the SAVE GSTR-3B button at the bottom of the page to save the GSTR-3B details.

 

 

A success message is displayed on the top of the page that the data has been added successfully. The taxpayer is advised to save if he wants to exit after partially entering the data. Once all the details are saved, SUBMIT button at the bottom of the page is enabled.

Submit and Save GSTR-3B

8. Scroll down the page and click the SUBMIT button to submit the GSTR-3B.

 

 

9. A success message is displayed at the top of the page that the GSTR-3B is submitted successfully. Once you submit the data, data is frozen and you cannot change any fields in this return. The ITC and Liability ledger will get updated on submission.

Status of the GSRT3B is changed to Submitted.

Note: Scroll down the page. The “Payment of Tax” tile is enabled only after successful submission of the return.

 

 

Enter Payment Details in Section – 6. Payment of Tax

To pay the taxes and offset the liability, perform the following steps:

1. Click the 6. Payment of Tax tile.

Note: Tax liabilities as declared in the return along with the credits gets updated in the ledgers and reflected in the “Tax payable” column of the payment section. Credits get updated in the credit ledger and the updated balance is available and can be seen while hovering on the said headings of credit in the payment section.

 

 

2. Click the CHECK BALANCE button to view the balance available for credit under Integrated Tax, Central Tax, State Tax and Cess. The functionality enables the taxpayers to check the balance before making the payment for the respective minor heads.

 

 

The Check Balance page is displayed. The page lists the minor head wise balance available as ITC and Cash Balance. Click the OK button to go back to previous page.

 

 

3. Please provide the amount of credit to be utilized from the respective available credit heads to pay off the liabilities, so as the cash.

 

Note: If there is no/ less balance in Electronic Cash Ledger, create Challan make payment to update the balance in Electronic Cash Ledger. Click here to refer the FAQs and User Manual on Making Payment.

 

While providing the inputs please ensure the utilization principles for credit are well adhered otherwise system won’t allow for offset of liability.

4. Click the OFFSET LIABILITY button to pay off the liabilities.

 

A confirmation message is displayed. Click the OK button.

 

 

File GSTR-3B

11. Select the checkbox for declaration.

12.  From the Authorised Signatory drop-down list, select the authorized signatory.

13. Click the FILE GSTR-3B WITH DSC or FILE GSTR-3B WITH EVC button.

 

 

FILE GSTR-3B WITH DSC:

a. Click the PROCEED button.

 

 

b. Select the certificate and click the SIGN button.

 

FILE GSTR-3B WITH EVC:

a.  Enter the OTP sent on email and mobile number of the Authorized Signatory registered at the GST Portal and click the VALIDATE OTP button.

 

13. The success message is displayed. Click the OK button.

 

 

14. Scroll down the page and click the Back button.

 

 

15. The File Returns page is displayed. Select the Financial Year & Return Filing Period (Month) for which you want to view the return from the drop-down list.

16. Click the SEARCH button.

 

 

Status of the GSTR 3B return changes to “Filed”. You can click the VIEW GSTR 3B button to view the GSTR 3B return.

 

 


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Source: https://www.gst.gov.in/
Value of Supply Under GST

Value of Supply Under GST

Value of Supply Under GST

Valuation primarily revolves around determination of the value of supply of goods and/or services on which tax is to be levied. In general, the transaction value is taken as the value of supply.

The value of supply for a transaction is the price or consideration paid by the customer to the supplier. It includes extra charges like shipping and handling, but it does not include GST.

Some actions that aren’t sales, such as stock transfers between two states, are still considered taxable transactions. In these cases, the value of supply is the open market value or the amount the goods are expected to sell for.

 Why is the value of supply important?

The GST to be applied to a transaction will depend on the value of these goods and services sold or transferred.

Buyers can pay for transactions with a monetary consideration by giving the seller cash or electronically transferring money. They can also pay for transactions with non-monetary considerations by giving the seller other goods or services in exchange.

Finally, there are cases where they can pay for transactions partly in cash and partly in kind (by bartering goods or services). Hence it is really important to accurately calculate the value of supply.

 How is the value of supply determined?

As a general rule, the value of supply is the amount that was paid for the goods or services, minus GST. Because some transactions are paid in cash while others are in trade or barter, there are two sets of rules for calculating the value of supply.

  • The General Valuation Rules apply to transactions where the buyer pays the whole price of the products or services in cash.
  • In this case, the value of supply is the total price or consideration paid, minus the GST on that amount.
  • Value of Supply = Consideration – GST on Consideration
  • The Special Valuation Rules apply to transactions where some or all of the payment is in trade instead of cash.
  • Completely non-cash payment: If the buyer pays entirely in trade and no cash, the value of supply is the open market value of the products or services, minus the GST on that amount.
  • Value of Supply = OMV – GST on OMV
  • Partially non-cash payment: If the buyer pays partially in cash and partially in trade, the value of supply is the cash price paid plus the open market value of the traded products or services, minus the GST on that total amount.
  • Value of Supply = (Monetary Consideration + In-kind Consideration) – GST on Total Consideration 
    Note:
     The value of supply includes cess, billable expenses, subsidies, penalties, and all taxes except GST (and any other charges that may or may not be included in the price of the goods and services supplied).


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Time of Supply Under GST

Time of Supply Under GST

Time of supply under GST

Time of supply manner the point in time when goods/services are deemed to be supplied/rendered. It allows us to examine the cost of tax, worth, and due dates for fee of taxes.

The liability to pay CGST / SGST will arise at the time to give as determined for items and offerings. There are separate provisions for time of providing for goods and time of supply for offerings.

To investigate time of giving of goods & services, four categories are provided as beneath:

  1. Time of delivery of items & offerings beneath forwarding charge.
  2. Time of supply of goods & services below Reverse charge.
  3. Time of giving in case of supply of Vouchers.
  4. Residuary Clause.

1.Time of Supply of Goods & Services under Forwarding Charge:

Time of Supply of Goods & Services under Forwarding Charge

Some Important Points:

(a) Time of Issue of Invoice for Goods:

  1. If the movement of goods involved in supply than before or at the time of removal of goods.
  2. If no movement of goods involved in supply than before or at the time of delivery of goods or making available to the recipient.
  3. If the continuous supply of goods For Exa. Supply of Oil etc. than earliest of the following:
    ♦ The time when each statement is issued.
    ♦ The time when each payment is received.
  4. If goods sent for approval than earliest of the following:
    ♦ The time when it becomes known that supply is taken place.
    ♦ Six months from the date of removal.


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(b) Time of Issue of Invoice for Services:

  1. Before or after the provision of service but within a period prescribed:
  •  30 days in all cases except for banking and financial institutions from the date of supply of services.
  • 45 days in case of banking and financial institutions from the date of supply of services
  1. In case of continuous supply of services:
  • Due date of payment can be identified from the contract : The invoice will be issued before or after the payment is to be made by the recipient but within 30 or 45 days of due date of payment.
  • Due date of payment is cannot be identified from the contract : The invoice shall be issued before or after each time when the supplier of service receives the payment but within 30 or 45 days of receipt of payment.
  • 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 30 or 45 days of completion of the event.
  • Supply of services ceases under a contract before the completion of the supply: The invoice shall be issued at the time when the supply ceases and such invoice shall be issued to the extent of the service provider before stopping.
  1. The supply shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment.
  1. Date of Receipt of the payment by supplier: Payment is entered into the books of the account or credited in his bank account whichever is earlier.
  1. Optional Time of supply: If amount up to Rs. 1,000 in excess of invoice amount is received then the supplier may take the time of supply is the date of invoice issued for such excess or advance received.
  1. If the invoice is not issued and date of payment or date of completion of provision of service are also not ascertainable than the time of supply shall be the date on which the recipient shows the receipt of services in his books of accounts.

Examples:

Q.1 

Mr. A, a manufacturer, sold goods to Mr. B, wholesaler, and issued an invoice for the sale on 01st August 2017. Now, determine the time of supply of goods for the following cases:

  1. Mr. A removes the goods for delivery to Mr. B on 16th August 2017.
  1. Mr. B collects the goods from premises of Mr. A on 10th August 2017.
  1. Mr. B made full payment on 26th July 2017.
  1. Mr. B credited the payment in bank account of Mr. A on 28th July 2017 for 3/4thof goods, Mr. A recorded the same as receipts in his books on 3rd August 2017. The goods were dispatched on 5th August 2017 from the warehouse.

A.1

 1. 1st August 2017 is the time of supply of goods

i.e. Earlier of the following:

– Date of Invoice – 1st August 2017 or

– Date on which invoice is required to be issued – 16th August 2017.

2. 1st August 2017 is the time of supply of goods

i.e. Earlier of the following:

– Date of Invoice – 1st August 2017 or

– Date on which goods is delivered – 10th August 2017.

3. 26th July 2017 is the time of supply of goods

i.e. Earlier of the following:

– Date of Invoice – 1st August 2017 or

– Date of Payment – 26th July 2017.

4. The time of supply of goods for 3/4th of the goods will be 28th July 2017 as the payment has been made prior to the date of invoice and the time of supply of goods will be 1st August 2017 for remaining 1/4th The late recording of receipt in the books by Mr. A will have no impact.

 

2.Time of Supply of Goods & Services under Reverse Charge:

Time of Supply of Goods & Services under Reverse ChargeIf the time of supply cannot be determined with the help of above provisions then the time of supply shall be the date on which entry in the books of the recipient of goods & services is made.

 

Examples:

Q.1 

Mr. A, a registered dealer received goods from Mr. B, an unregistered dealer. Mr. B issues invoice on 1st July 2017. Now, determine the time of supply of goods in following cases:

(a) A received goods on 15th July 2017, payment of which is not made yet.

(b) Mr. A received goods on 3rd August 2017 & made payment for the same on 4th August 2017.Mr. A made payment on 8th July and received goods on the same date.

(c) Mr. A made payment on 8th July and received goods on the same date.

(d) Mr. A received goods on 10th July 2017 & made payment for the same on 9th July 2017.

 

A.1

(a) 15th July 2017 will be the time of supply of goods.

Earliest of the following:

Receipt of Goods = 15th July 2017

Date of Payment = NA

30 days from the date of invoice = 30th July 2017

(b) 30th July 2017 will be the time of supply of goods.

Earliest of the following:

Receipt of Goods = 3rd August 2017

Date of Payment = 4th August 2017

30 days from the date of invoice = 30th July 2017

(c) 8th July 2017 will be the time of supply of goods.

Earliest of the following:

Receipt of Goods = 8th July 2017

Date of Payment = 8th July 2017

30 days from the date of invoice = 30th July 2017

(d) 9th July 2017 will be the time of supply of goods.

Earliest of the following:

Receipt of Goods = 10th July 2017

Date of Payment = 9th July 2017

30 days from the date of invoice = 30th July 2017

 

3.Time of Supply of Vouchers for Goods & Services:

Time of Supply of Vouchers for Goods & Services

4.Residuary Clause:

 

Residuary Clause


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