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Suspension of GST RCM till 30th Sep 2019

Suspension of GST RCM till 30th Sep 2019

Upon the recommendations of the GST council in its 28th Meeting held on 21st July 2018, GST Reverse Charge mechanism CBIC (Central Board of Indirect Taxes and Customs) has issued notification no. 22/2018-Central Tax (Rate) and 23/2018-Integrated Tax (Rate) on 06th August 2018.

The said notification has been issued on being satisfied that it is necessary in the public interest.

This notification is said to amend the Notification No 32/2017 dated 13th October 2017 and last amended vide Notification No. 13/2018 dated 29th June 2018. In the said notification, for the figures, letters and words “30th day of September, 2018”, the figures, letters and words “30th September, 2019 shall be substituted.


Through the said notification, CBIC notifies that the reverse charge mechanism applicability have been postponed till 30th September 2019. Earlier, CBIC had notified the applicability from 01st April 2018, later the same was postponed till 30th June 2018 and once again to 30th September 2018. This time the applicability has been cancelled for another one year i.e 30th September 2019.

Download Reverse Charge Mechanism (RCM) Notification No. 22/2018 – Central Tax (Rate)

29th GST Council Meeting Highlights and Key Recommendations

29th GST Council Meeting Highlights and Key Recommendations

29th Meeting of GST Council has been conducted at New Delhi (dt. 4 August 2018) 29th GST Council Meeting Highlightsat a very short interval, especially to deliberate and discuss upon the issues relating to Simplification and Rationalization of GST Laws from the perspective of MSMEs and Small Taxpayers.

Updates are coming from News Reports that the 29th GST Council Meeting has concluded with key recommendations/ decisions about incentivising digital payments thru Bhima App, RuPay Card, etc. and to constitute a new panel/ sub-committee for reviewing issues of MSMEs and Small traders relating to GST law/ rates/ refunds.

Below are the Key Highlights of 29th GST Council Meeting:
i) 20% of GST as Cash Back on Digital Transactions: To promote digital transaction, increase compliance and collection in taxes, GST Council has recommended cash back of 20% of GST paid via Bhima App, RuPay Debit and UPI-based transaction, capped at Rs 100. The GST Council has recommended developing such software and any State willing to do so can implement the same on a pilot basis.

ii) Sub-committee/ Panel for MSME Issues: To address the issues of MSMEs and Small Taxpayers, the GST Council has decided to constitute a new Panel/ Sub-Committee to review the concerns of stakeholders on various law-related and GST rates related issues, including issues relating to refunds, followed with the submission of a report thereon.

Also Read: 28th Council Meeting- Key Highlights & Rate Changes

Total 157 issues were submitted before the Council. While addressing the media after the meeting, the Finance Minister Piyush Goyal said that several issues related to small businessmen and retailers were discussed in the meeting.

Consumption behaviour, populism behind GST rate cuts

Consumption behaviour, populism behind GST rate cuts

Over the last 13 months, the goods and services tax (GST) Council has effected tax cuts on 384 goods and 68 services under the indirect tax system. The total estimated revenue loss to the exchequer from the rate cuts was pegged at ₹ 70,000 crores, according to the government. Consumption behaviour, populism behind GST rate cuts

Consumption patterns

The rate cuts reflect the changing consumer behavior. Items that were earlier considered a luxury, such as refrigerators and washing machines, are now a necessity for middle-class households.

Fearing a huge revenue gap under GST, the Council had initially included most consumer durable and personal use items in the highest tax slab. So refrigerators, washing machines, television sets, and shampoos were taxed at 28%. In comparison, these items attracted over 30% tax in the earlier tax regime, which comprised excise duty and value-added tax.

However, as revenues stabilized, the Council looked to evolve tax categories that would reflect contemporary consumption trends and increase consumption demand.

After the recent round of tax cuts, the majority of items in the 28% category are luxury items such as big cars or sin goods such as tobacco, pan masala, and aerated drinks. The other items in the highest tax slab include cement, air-conditioners and big screen television sets. The government is considering lowering the tax rates on these items as well.

Also Read: GST regime brings in nearly 50 lakh new taxpayers


The first big step to reduce tax rates was in November 2017, just before the assembly elections in Gujarat and Himachal Pradesh. Tax rates were cut on 177 items, including food, personal grooming, construction material, wood, and rubber. The recent reduction comes months before three Bharatiya Janata Party (BJP)-ruled states, Rajasthan, Chhattisgarh and Madhya Pradesh, go to polls. States ruled by opposition parties have been complaining that the frequent rate cuts under the GST are just a populist measure and are hurting revenues.

Revenue buoyancy

GST has helped in improving collections with tax buoyancy pegged at 1.2, giving policy makers more room to cut rates. The Union and state governments collected ₹ 94,016 crores by way of GST in May (for April sales), which was better than the ₹89,885 crore monthly average in the previous fiscal.

According to a government analysis of the past five-year revenue trend, May receipts for April sales represented just 7.1% of annual tax collection receipts, which indicated a promising start for the year. In June, the collection improved to ₹95,610 crore. E-way bills enforced nationwide for shipment of goods is expected to aid the growth in revenue collections. GST is also helping to curb evasion of income tax, as the technology-driven system makes it difficult to understate sales.


While political and revenue compulsions forced the government to go in for a five-slab tax structure under GST, the eventual goal was to have fewer tax slabs to make the system simpler. This is possible by converging the 12% and 18% slabs, besides keeping the highest slab lean or doing away with it entirely.

Source: Live Mint
One year of GST: The successes, failures and what’s next on the agenda

One year of GST: The successes, failures and what’s next on the agenda

One Year of GST

One year into the goods and services tax (GST) regime, early-day jitters have given way to general acceptance that this may not be the most perfect single tax system, but it’s working. There are many issues that remain to be addressed, but the fact that some of the knotty ones have been resolved gives rise to confidence that even these will be sorted out. Here’s how the past year panned out.

Inflation rate didn’t rise: GST, it was widely feared, would cause inflation to rise, as with many countries that launched a single tax regime. That hasn’t happened in India. The recent spike in consumer inflation has been due to high food and fuel prices, unrelated to GST. What helped? The much-criticised multi-slab structure. It ensured the levy was as close as possible to the existing rate, which meant the incidence of tax didn’t rise. The second factor was the anti-profiteering authority. Though the body was set up after the GST rollout, the prospect of its establishment was enough to ensure businesses did not abuse the transition.

Single national market: Long queues of trucks at state borders disappeared as checkposts were dismantled, creating a seamless national market. These barriers had restricted movement of goods across the country, leading to huge delays and increasing transaction costs for the logistics sector, eventually translating into higher costs for consumers.

One tax nationally: A consumer in Kanyakumari now pays the same tax on an item as one in Jammu & Kashmir. GST has also allowed businesses to streamline distribution systems—production, supply chain, storage—to make them more efficient, having previously been forced to design them keeping state taxes in mind.

Formalisation kicks off, tax base begins to widen: One of the expected benefits was that GST would encourage formalisation of the economy. Evasion would stop making sense, thanks to transparent digital processes and incentive of input credit and invoice matching. With number of registrations crossing 10 million, it seems more businesses are signing up for GST. Rise in the Employees’ Provident Fund Organisation subscriber base provides further evidence of the same. More people filing income tax returns could also have something to do with GST.

Everyone wins: As many as 17 taxes and multiple cesses were subsumed into GST, aligning India with global regimes. Central taxes such as excise duty, services tax, countervailing duty and state taxes — including value added tax, Oct roi and purchase tax — were all rolled into one. The new regime provided for free flow of tax credits and did away with cascading due to tax on tax, boosting company financials and resulting in reduced prices for consumers. It also ensured a single law for the whole country with uniform procedures and rules, which reduces compliance burden and business complexity. The government sacrificed revenues, but improved compliance should cover any gap.

GST One Year


Compliance has miles to go: The biggest dampener was the compliance process, as information technology glitches took more than the anticipated time to be resolved. The filing system that was put in place in the beginning was quickly abandoned as businesses struggled with compliance. A new return form is being crafted to help make the process much less painful for businesses and is likely to be available soon.

Compliance has miles to go: The biggest dampener was the compliance process, as information technology glitches took more than the anticipated time to be resolved. The filing system that was put in place in the beginning was quickly abandoned as businesses struggled with compliance. A new return form is being crafted to help make the process much less painful for businesses and is likely to be available soon.


Cumbersome registration system: Multiple registration requirements have complicated things for industry, which was expecting simplicity. In many cases, registration is required in all states. Companies fear that multiple audits and assessments due to multiple registrations could make life more difficult for them going forward.

New cesses crop up: While GST scrapped a multiplicity of taxes and cesses, a new levy in the form of compensation cess was introduced for luxury and sin goods. This was later expanded to include automobiles. A new cess on sugar is also being examined.

Refunds problem for exports: The refund mechanism for exporters, including data matching law, besides procedures governing them, have irked the sector, particularly smaller entities that saw their working capital requirements rise. Though several efforts have been made to address the issue, it may require more intervention.



War room saved the day: A GST Feedback and Action Room was set up to take care of initial launch issues. The government remained open to addressing issues as they cropped up, with feedback flowing in fast via phones, messages and even Twitter. Return filing dates were deferred, tax slabs were rejigged to address industry and consumer concerns and procedures and rules were amended to ensure hardships were alleviated. The officers’ committee — comprising state and central officials — still meets regularly to draw up options for the GST Council to act upon.

GST Council delivered: The GST Council, comprising central and state representatives, was the kind of federal arrangement that could have easily been bogged down by ego and politics. The Centre has a 33% vote while the states account for 66%, with any dispute needing 75% support to be resolved. It has never had to vote on any issues, with just one dissent recorded so far. There may have been bickering and differences of opinion, but matters were always thrashed out and a painstaking consensus achieved. The council has found solutions to most issues and these have not been shoddy compromises but sound decisions that have only improved the single tax. The council has provided a template for more such structures where the Centre and states could work together.

Next on the Agenda

There is consensus among experts and industry that GST has made vast progress from its early days of teething troubles. It has settled in as far as the consumer is concerned, but businesses want to see improvement. A simpler tax fi ling regime, fewer slabs and a broader tax base are some things the government needs to address in the year ahead

Expansion of tax base

There are many goods that are still outside the GST net, which comes in the way of seamless fl ow of input tax credit. Key items outside its ambit are electricity, alcohol, petroleum goods and real estate. Among fuels, it may be possible to bring natural gas and aviation fuel within GST. But it may not be easy to do that with diesel, petrol and kerosene as most states are opposed to such a move. Getting real estate under GST may also be diffi cult as it will require a constitutional amendment.

Tax slab rationalisation

There are as many as six slabs, excluding exempt goods. Though most goods fall in the 12%, 18% and 28% brackets, there is a case for merging slabs to reduce complexity and classification disputes. The 12% and 18% bracket could be merged into one single slab in the 14-16% range.

Lower tax rate

There has been a substantial reduction in the number of products in the 28% bracket with goods moved to the 18% one. There is further scope for cutting the peak rate on all products other than ‘sin’ goods. Products such as cement, paint, air conditioners, washing machines, refrigerators etc should also see a reduction in the tax rate to 18% from 28%.

GST returns simplification

This is the biggest item on the agenda as far as businesses and compliance are concerned. The government has already taken an initiative in this direction with the proposed consolidation of all periodic returns into one. The committee set up for this task has been working on the new format and the IT-related changes required. A new and simplifi ed return fi ling process may become effective in the next six months.

Legislative changes

Over the past year, several issues that need to be fi xed through legislative changes have accumulated. Some of these relate to input tax credit, and the requirement of paying tax up front on various transactions such as deemed exports and subsequently claiming a refund. The government could introduce changes in the monsoon session to fix these niggles.

More data analytics

The government has already started detailed analysis of a number of data sets to plug leakage. The format of the e-way bill has been designed to capture invoicerelated information so that the government can use data analytics to identify concern areas and plug revenue leakages. Businesses have already started receiving notices about discrepancies between amounts mentioned in different GST returns and those reported on the e-way bill portal. Income tax return forms released for this year have also sought specifi c information in relation to GST. The government can use the granular data to check tax evasion.

Anti-profiteering agency

The agency, which was constituted for a period of two years, has been functional for about six months and issued a few orders following investigations. The GST Council needs to decide whether to wind it up after two years or keep it going until the tax regime matures.



Goal Scored in Time: MS Mani, Partner, Deloitte India

The goods and services tax has been one of the key enablers to improve the ease of doing business in India and has consolidated a plethora of taxes levied by the Centre and states into a common, fungible tax. Despite some initial hiccups caused by post-implementation changes in rates and compliance requirements accompanied by an inadequately prepared portal, the tax is entering the growth phase as is evidenced by the stabilisation of GST collections over the past two months.

The expansion of the tax base being a necessary concomitant for the success of GST, it is expected that, in addition to the e-way bill, a few more anti-evasion measures will gradually be put in place. It is also necessary that it becomes the only indirect tax over a period of time by including products outside its purview such as petroleum products and levies outside its ambit such as stamp duty.

It is essential that all future changes are introduced keeping in mind their impact on all businesses, especially small and medium enterprises (SMEs) to enable them to be prepared as the success of a nationwide consumption tax depends on its acceptability across all sections of business. While the goal has been scored, it essential to carry the entire team along in all the forthcoming matches.

perception of the consumer: GST Survey

GST 2.0 Needed: Pratik Jain, Indirect taxes leader, PwC

If you examine the impact of GST from the standpoint of various stakeholders — government, industry and consumers — it is certainly directionally positive. For consumers, prices of commodities have either gone down or been stable and accessibility has improved, given supply chain efficiencies. A common rate structure across states means decision making for consumers becomes easier.

From the industry standpoint, except the initial technological challenges in filings and blockage of funds for exporters, GST has not caused any disruption. In many cases, there has been a saving of 3-5% due to incremental credits and vendor price renegotiation.

From the government’s standpoint, there is definite expansion in the tax base with some revenue buoyancy over last few months as well. With the wealth of data available with the government and measures such as e-way bills, tax leakage is likely to be further plugged in the next year or so. Does it mean everything is perfect?

Certainly not! Tax rates need to be further rationalised, compliance is to be simplified, dispute resolution and administrative aspects have to be looked into and GST system aligned with global best practices. That said, it’s a moment to feel proud of the country’s achievement, with a hope that GST 2.0, which is now in the works, will be a much better version than what we have now.

Much Achieved, More Needed: Bipin Sapra, Partner, indirect tax, EY

The triumph of GST lies in the fact that while it has successfully subsumed several state and central indirect taxes, reduced cascading and credit blockages, created a common market and brought uniformity of indirect tax law and rates across the country, its biggest achievement has been obtaining a broad consensus among all the states and the Centre, which has strengthened the federal character of the Indian fiscal system.

During the year, multiple rates on goods and services have been evaluated and rationalised, given the possible leakage of revenue. The e-way bill system has been successfully implemented, difficult procedures of TCS and TDS (tax collected/deducted at source) have been kept in abeyance, and the anti-profiteering law has acted as a deterrent for most companies increasing their prices on account of GST.

While the government has worked to solve many issues, considerable intervention is still required to bring GST to its full efficiency. The proposal to have a single return will simplify compliance and do away with matching requirements.

Registrations need to be centralised for big service providers and, if that is not possible, assessments/ audits need to be centralised to avoid multiple interpretations of issues for the same entity. A lot has been achieved in this year of GST implementation and yet GST will continue to evolve as the law, procedures and rates are modified to suit the complex Indian market.

Toddling Through: Suresh Nandlal Rohira, Partner, leader, GST and customs, Grant Thornton India LLP

The first year’s journey was one of ups and downs–registrations and revenues went up and multiple compliances for taxpayers went down, with ease in movement of goods eliminating naka barriers. However, in spite of significant success in its first year of implementation, there still seems to be a long way to go for both the government as well as taxpayers in attaining a simplified GST regime.

Simplification and standardisation of compliance—a single return instead of two or three–to ease taxpayers’ burden should continue to be of prime importance for the government, especially with repeated deferment of compliance dates due to systems challenges and also the formats, which are too complicated for many micro, small and medium enterprises (MSMEs) considering small, medium businesses have a large share of registrations.

The government should bring down the slabs from four to three as collections have been above the mark and accordingly rate moderation should be warranted, encouraging certain sectors boosting the economy.

Undoubtedly, GST has received positive as well as negative responses as befits its characterisation as a toddler. However, further steps will bring out the true sense of One Nation One Tax.

Source : The Economic Times
A step-by step Guide for filing GST TRAN 2 Form

A step-by step Guide for filing GST TRAN 2 Form

GST TRAN 2 can be filed only if TRAN-1 and GSTR 3B of the relevant tax period is filed.

GST Tran 2 Form

Step1 – Navigate to the TRAN 2 page of the desired tax period after logging in, Select the < Financial Year> and < Month>

Step2 – Table 4 of GST TRAN 2 would be enabled if records were declared in Table-7(a) (7B) of TRAN 1 and Table 5 would be enabled if records were declared in Table-7(d) of TRAN 1.

Step3 – Enter details of opening stock in Table 4 and Table 5 as declared in GST TRAN 1. Please ensure that all the HSN/goods are declared in GST TRAN 2, in the opening balance in the month of July, 2017, irrespective of the fact that these have been sold or not in the first i.e. July, 2017 tax period.

Step4 – Declare the details of sold goods from such stock in the first tax period and the Central/State and integrated tax paid on those goods and compute the ITC allowed and state this value in the applicable tables. ITC allowed should be less than or equal to (=) 60% of Central Tax or 30% of Integrated Tax.

Step5 – While filing Tran 2 of subsequent tax periods, the tax payer has to only declare the details of goods supplied/sold and the tax paid and ITC allowed. The opening stock gets auto-populated from the earlier tax period closing stock. And the closing sock is auto computed from the opening stock and the supplied quantity in the tax period.

Step6 – Save after entering each record in tables of GST TRAN 2.

Step7 – After entering all the records click “Preview” to download the pdf with draft summary values of GST TRAN 2. Verify the correctness of the entered data. If satisfied click “Submit” to freeze your declaration. Please verify thoroughly before submitting.

Step8 – Download the summary of your submitted TRAN 2 for your record by clicking on “Preview” again.

Step9 – Click on file with DSC or EVC and select the authorized signatory to file TRAN 2 for the tax period.

Step10 – After successful filing the message and email with the ARN number will be sent to the taxpayer.

Step11- The claimed ITC of central and state tax would be reflected in the ITC ledger of the taxpayer after filing of TRAN 2. It has to be noted that the ledger entries get posted after filing of TRAN 2 and not “Submit” (as is/was the case in TRAN 1).


XaTTaX: Your automated Eway bill compliance is just a click away!

How to calculate delivery distance and validity of E-way Bill

How to calculate delivery distance and validity of E-way Bill

E-Way Bill is an electronically generated document which is required to be generated for the movement of goods of more Rs. 50000 from one place to another.

Validity of E-way Bill

E-Way Bill is one of the most important offshoots of the GST regime that has been introduced in India last year. It is an electronically generated ( E- generated) document that is mandatory to be carried in its physical form or electronically by a transporter when he/she is ferrying goods or items from one place to another. The consignor or the consignee can generate e-way bill and it is compulsory for transporting goods whose value is above fifty thousand. It has to be kept in mind that this document is valid for a specific period of time and depends on both the distance to be covered and what is being transported.

How to calculate the approximate distance

The provisions of the e-Way Bill state that its validity is calculated on the basis of the distance between the location of the supplier and the location of the recipient instead of the distance between the location of the transporter and the location of the recipient.

The MAP feature is used to find out the approximate distance to be traveled between the point of dispatch and the point of delivery.

However, there is a rider. The e-Way Bill portal, till now, allows someone who is trying to generate the document to put in a maximum distance of 3000 kms in the distance field. So, it is a problem for people who want to generate a Bill for transporting goods for a distance exceeding 3000 kms. However, the goods are allowed to be transported for the distance of more than 3000 kms provided it is done within the stipulated validity period.

The computation of the validity period requires furnishing the distance between the place of the supplier and the place of the recipient. However, after entering this detail, the field cannot be modified unless it becomes necessary to extend the validity period of the electronic Way bill.

Determining the validity of the E-way Bill

Before we delve into the particulars of the validity of the Bill and how to compute it, it is important to understand a phrase: over dimensional cargo. Over-dimensional cargo is that cargo that exceeds the standard or ordinary legal size and/or weight limits for a specified portion of road, highway or other transport infrastructure such as air freight or water freight.

The validity of the e-Way bill depends on whether the cargo is over-dimensional or not. For over-dimensional cargo, the validity is 1 day for any distance up to 20 kms and after that, one extra day for every 20 kms or part thereof. For other than over-dimensional cargo, the validity is 1 day for a distance of 100 kms and thereafter, additional 1 day for every 100 kms or part thereof.

Some other details 
It has to be kept in mind that the validity of the e-Way Bill for the first day ends by the midnight of the next day. For e.g.: An e-Way bill is generated at 6 p.m. on the 15th of May for transporting goods for 80 kms. It will be valid till the midnight of 16th of May i.e. for 1 day.

Similarly, a Bill may be generated at 6 p.m. on the 15th of May for transporting goods for a distance of 190 kms. In this case, it will be valid for two days I.e. till midnight of 17th May.

Another important point that has to be kept in mind with regard to validity of e-Way Bill is that the validity starts when the vehicle number is updated for the first time by the consigner/consignee or by the transporter in Part B of the e Way Bill.

For example, the supplier of goods handed the goods over to the transporter on the 15th of May and Part A of the Bill was submitted after updating the GSTIN of the transporter. However, the transporter loaded the goods on the 17th of May and filled Part B of the electronic way bill by updating the vehicle number. Then, its validity starts from May 17th only.

GSTR-11 Guide : Filing GSTR 11 Return for Input Tax Refund by UIN Holders

GSTR-11 Guide : Filing GSTR 11 Return for Input Tax Refund by UIN Holders

What is Form GSTR-11?

GSTR-11 is a return to be filed by person having UIN (Unique Identification Number). This return reflects details of inward supplies. As per section (67), ‘Inward Supply’ in relation to a person, shall mean acceptance of goods or services or both whether by purchase, acquisition or any other means with or without consideration

Note: UIN stands for Unique Identity Number which is required for claiming refunds of taxes paid by persons for any purpose as described under GST rules. The format for UIN remains uniform across states.


Who can File Form GSTR-11?

Every person who has been issued UIN and is claiming refund need to file GSTR-11. The following organizations/entities can apply for a UIN:

  • A specialized agency of the United Nations Organization
  • A multilateral financial institution and organization notified under the United Nations (Privileges and Immunities) Act, 1947
  • A consulate or embassy of foreign countries
  • Any other person or class of persons as notified by the commissioner.

Prerequisites:   In-order to file this return:

  • You must be a foreign embassy or a diplomatic body that possesses UIN.
  • This return must be filed only during those months when you purchase goods and/or services for your own consumption. Otherwise, you are free from filing tax returns.

When to file Form GSTR-11?

The GSTR-11 needs to be filed monthly on 28th of the month following the month in  which Inward supply received .

What Details are Included in GSTR-11?

GSTR-11 contains the details pertaining to inward supplies.

Proforma of Form GSTR-11

Here you can see the complete format of the Form GSTR-11.

Headings that Appear under GSTR-11 and their Significance 

Initial headings under this return are auto-populated from the details of the concerned taxable person furnished in monthly/quarterly GSTR forms

# Headings Details to be furnished
1 Unique Identification Number UIN assigned by GST will be auto populated at the time of login to GST portal
2 Name of the person having UIN From GSTN records, the name of the entity will be auto-populated under this head
3 Tax period Period / month or year of tax to which the Return pertains (for which GSTR-11 is being filed); to be selected from drop-down menu
4 Details of supplies (purchases made from consumption or use – other than the purpose of making outward supplies) This filed shall contain GSTIN of supplier and invoice wise details (including Debit and Credit Notes) Taxable value, Rate of Tax and Head wise Tax amounts are also included in this table.

Interest/Penalty on Late Filing or Late Payment of GST

According to the rules and regulations formed by GST council, if a taxpayer fails to file his return on time, then he would be responsible for paying interest at the rate of 18% p.a. on the payable GST tax from the date specified till the date he/she made payment for the same.  If a taxpayer fails to file GST returns on the last day, then interest calculations from the due dates will be calculated based on:
For interest on tax payment per day basis:
Let’s consider tax due by an individual is RS. 10,000
With interest rate of 18% will be:
10000 * 18/100 * 1/365 = Rs. 4.93 per day approx.

As per the deadlines mentioned by the GST Council, if a taxpayer misses the deadlines, then he/she would be liable to pay a penalty of Rs.100 for CGST and Rs.100 for SGST per day, commencing from the due dates till the returns are filed.

How to download GSTR-11 offline tool?

  1. Login to the GST Portal
  2. Then, Go to Downloads Tab -> Offline Tools
  3. Select Gstr-11 tools button;
  4. File be downloaded -> Unzip the file GSTR_1
  5. Open the GSTR_1 1_Offline_Utility.xls excel sheet
  6. Read the instructions under the heading “Read me”.

Have you Filed your GST Returns Yet?

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Be Ready! Only Two Days Left For Filing Three GSTR Forms

Be Ready! Only Two Days Left For Filing Three GSTR Forms

There are only 2 days left for the taxpayers who have to file Three different return filings GSTRGSTR Forms forms before the upcoming due date i.e. 20th May 2018. The business units have to file GSTR 3B while the NRIs have to file GSTR-5 and GSTR- 5A and for this, they have only 2 days left at the time of writing this piece of information.

It is warned that if in case taxpayers have not filed the return of GSTR 3B of the may month they are suggested to file it as soon as possible. In the recent 27th GST council meeting, it was decided that the GSTR 3B will be continued till a single return form is not finalized for the taxpayers.

Due Date of GSTR 3B April 2018

All the traders and business units are required to file GSTR 3B for the month of April till 20th May 2018 in which they have to include all the details of sale and purchase. Also, the transactions done with the traders having a turnover less than 20 lakhs is to be included in the reverse charge for.

Also, the taxpayers will have to include details of input tax credit, interstate dealings and transactions with unregistered dealers. Also, they have to include the details of business done with the composition scheme dealers and the sales of tax-free products.

20th May – Due Date of GSTR 5 For NRI

All the non-resident Indian (NRI) dealers are required to file the GSTR 5. All the NRIs who comes to India for trade purpose and earns by trading and business dealing in India have to file GSTR 5. The NRI dealers have to provide all the details of sale and purchase in the GSTR 5 form.

20th May – Due Date of GSTR 5A For NRI Service Provider

Apart from NRI dealers, all the NRI service providers will have to file GSTR 5A in which they have to include all the details of sale and purchase.

31st May – Due Date of GSTR 1

All those traders having turnover more than 1.5 crores are required to file April month GSTR 1 by 31st May. GSTR 1 is a monthly return filed by taxpayers having turnover more than 1.5 crores in which they have to give all the details of sale and purchase.

Simple Guide of GSTR 9 with Easy Online Return Filing Process, Eligibility & Rules

Simple Guide of GSTR 9 with Easy Online Return Filing Process, Eligibility & Rules

The GSTR 9 is an annual return form to be filed by the taxpayer once a year with all the consolidated details of SGST, CGST and IGST paid during the year. Here, XaTTaX briefs all the details, rules and regulations for GSTR 9 online filing along with step-by-step compliance procedure.

Get to know all the related information of GSTR 9 annual filing procedure, format, eligibility, and rules along with proper images (screenshots) and filing guidance at each and every step.

For any query and question relevant to GST, ask our experts and professional CAs which will resolve all your doubts as soon as possible. Here we are going to discuss the complete GSTR 9 form under the goods and services tax.

What is the Meaning of Filing GSTR-9?

GSTR 9 is meant for a return form which is required to be filed once in a year by the regular taxpayers concerning GST regime. It is further categorized in IGST, SGST, and CGST. Under the heads, the taxpayers fill information about supplies made and received in a year separately. It is a consolidated form which comprises the details mentioned in the monthly/quarterly returns in a year.

Who is Required to File GSTR-9?

All the registered taxpayers are required to file GSTR 9 under GST regime. However, following persons are not required to file GSTR 9

  • Casual Taxable Person
  • Input service distributors
  • Non-resident taxable persons
  • Persons paying TDS under section 51 of GST Act.

What are Different Sorts of Annual GST Returns under GSTR 9?

Different kinds of annual return under GST:

  • GSTR 9: The regular taxpayer who files GSTR 1, GSTR 2, and GSTR 3 are required to file the GSTR-9.
  • GSTR 9A: The composition scheme holder under GST is required to furnish GSTR 9A.
  • GSTR 9B: All the e-commerce operators who have filed GSTR 8 are required to file GSTR 9B in a financial year.
  • GSTR 9C: The taxpayers whose annual turnover cross Rs. 2 crores are required to file GSTR 9C in a financial year. All those taxpayers are needed to obtain the accounts to be audited and furnish a copy of reconciliation statement of tax already paid, audited annual accounts and tax payable according to the audited accounts with GSTR 9C.

What is the Due Date for Filing GSTR 9?

GSTR-9 is required to be furnished on or before 31st December in respective financial year bracket. For example, if you want to file GSTR 9 in the this FY 2017-18, then the last date to file the return form will be 31st December 2018.

Penalty Norms When you Miss the Due Date of GSTR 9 Filing

The late fee of one hundred rupees for every day during which such failure continues will be levied subject to a maximum of an amount deliberated at a quarter percent of taxpayer turnover in the respective Union territory or state.

XaTTaX: Free GST Filing Software

Which Kind of Detail is Required to Mention in GSTR-9?

GSTR 9 is divided into 9 sections:

  1. GSTIN: A state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number(GSTIN) is provided to each registered taxpayer. GSTIN is auto-populated when furnishing the return form.
  2. Legal Name: When the registered taxpayer log-in to the common portal, the legal name of the person is auto-populated.
    •  2C. Taxpayer Liable To Statutory Audit: Every registered taxpayer whose composite turnover during a financial year surpasses Rs. 2 crore is required to get his accounts audited as mentioned under sub-section (5) of section 35 and he/she shall file a copy of audited annual accounts and a reconciliation statement, duly validated, in FORM GSTR-9C, electronically using the common portal either through a Facilitation Centre informed by the Commissioner or directly.
  1. Date of statutory Audit: This head takes the date of the statutory audit.
  2. Auditors: The taxpayer is required to mention auditors’ names who have audited the accounts of the entity.
  3. Details of Expenditure: Information about goods and services bought in a financial year is required to mention here mandatorily. These details are required to be mentioned along with the appropriate HSN/ SAC codes and taxable worth of such goods and services. This information is provided in GSTR-2. Further, the relevant information is categorized in following sections:
    • The total value of purchases on which ITC availed (inter-State)
    • The total value of purchases on which ITC availed (intra-State)
    • The total value of purchases on which ITC availed (Imports)
    • Other Purchases on which no ITC availed
    • Sales Return
    • Other Expenditure (Expenditure other than purchases)

Total value of purchases on which ITC availed (inter-State)

  1. Details of income: Details of income accommodates all the information of supplies and sales made in a relevant financial year. This information is also mentioned by the taxpayer in GSTR-1. It is categorized as follow:
    • The total value of supplies on which GST paid (inter-State Supplies): Composite worth of supplies on which IGST is applicable in respect of inter-State Supplies
    • The total value of supplies on which GST Paid (intraState Supplies): Composite worth of supplies on which CGST and SGST are applicable in respect of inter-State supplies.
    • The total value of supplies on which GST Paid (Exports): Composite worth of supplies made under goods and services tax on which IGST is paid in respect of exports.
    • The total value of supplies on which no GST Paid (Exports): It comprises the worth of goods on which no GST is applicable in respect of exports.
    • Value of Other Supplies on which no GST paid: It takes the information of the supplies made under GST on which no GST is paid.
    • Purchase Returns: It includes the information of purchase return done in a financial year.
    • Other Income (Income other than from supplies): Other income made in a financial year which is not mentioned in above points are required to be mentioned here.

Details of all supplies and sales made during the year needs to be provided here. Such details are also mentioned in GSTR 1

  1. Return reconciliation Statement: After filing the details, the system will match with the transactions automatically and will calculate tax liability applicable in respect of the tax paid. The details such as interest, amount of tax difference and penalty are auto-populated by the system. It categorizes the relevant details in following fields:

Return reconciliation Statement

  1. Other amounts

GSTR 9: Other amounts

  1. Profit as Per the Profit and Loss Statement

Profit as Per the Profit and Loss StatementAs soon as particulars are furnished appropriately, the assessee is required to sign digitally either via a digital signature certificate (DSC) or Aadhaar based signature verification to authenticate the return details.

Aadhaar based signature

E-Way Bills, GSTR1 data to be matched to curb tax evasion

E-Way Bills, GSTR1 data to be matched to curb tax evasion

To curb tax evasion, authorities will start matching details given in the Goods and Services Tax Return (GSTR1) Form Number 1 with those given in the e-way bill.GSTR1, e-way bills data to be matched to curb tax evasion

The matching will begin with returns to be filed for April as it is the first month when the tax authorities will have both GSTR1 and e-way bill data.

In the meantime, tax authorities have issued notices to over 8,000 assessees for differences in sales figures of more than 50 lakh in their GSTR1 and GSTR3B forms. Notices have been served on the basis of returns filed during August and December 2017. Based on their response, a decision will be taken on how much tax and penalty they need to pay.

“Matching process will ensure supply of goods have been done properly,” Prakash Kumar, CEO of GSTN, the IT backbone of the unified indirect tax system, told BusinessLine.

The logic behind matching is to plug any possible loophole in the filing of returns. All the GST assessees are required to file GSTR 1 either on monthly or on a quarterly basis while an e-way bill is required for movement of goods of value exceeding 50,000.

Commenting on the development, Rakesh Nangia, Managing Partner, Nangia & Co LLP, said the matching of details mentioned in GSTR-1 with the e-way bills will help in curbing tax evading practices as the invoice matching mechanism will be a significant tool in ascertaining the transaction details while matching it with the details furnished by the taxpayer.

“However, the said mechanism will be partly effective/beneficial since the only supply of goods can be traced by the matching concept. Further, the e-way bill is required on the movement of goods where consignment value exceeds 50,000,” he explained while adding that in cases where the value of goods does not exceed 50,000, matching would not be possible.

Also Read: GST – Eway bill: All you need to know and experiences

Action for mismatch

An option has been given on the e-way bill portal to take reports for particular tax period from e-way bill portal and match with tax invoices for outward supply and inward supply/delivery challan. Information about e-way bills, along with the transactions captured in GSTR1, will make it easy to spot mismatches in certain cases where an invoice has not been reported in GST return by the taxpayer or where the taxpayer fails to file his returns or furnishes wrong details.

“In such cases, notice may be served by the authorities demanding clarifications for a difference in tax amounts along with penalties. The said measures were adopted by the VAT authorities in the erstwhile regime also. Further in extreme cases, confiscation of goods, along with penalties may be imposed by the authorities,” Nangia said.

e-way bill was introduced from April 1. It is applicable for both inter-State and intra-States movement of goods, though the latter is being introduced on phases. So far, 18 States have adopted the e-way system. Maharashtra and 7 Union Territories will start the new system for the intra state/UT movement of goods from May 25 while the others will do so by June 3.

Also Read: Digital copy of Eway bill enough to give transporters right of way

E-way bill capacity

GSTN claims that there is the capacity to generate e-way bill up to 70 lakh every day. At present, on an average 11-13 lakh e-way bills are being generated every day. Nearly three-fourths of the e-way bills are related to inter-State trade while the remaining are for intra-State. However, once all the States start using e-way bill for internal movement, the ratio is expected to change to 50:50.

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Source: BusinessLine