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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”.

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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.

Ease Your GST Return Filing & Invoice with XaTTaX GST Software

Source: BusinessLine
27th GST Council Meet: Filing Process Gets Simpler, File Only One Return In A Month.

27th GST Council Meet: Filing Process Gets Simpler, File Only One Return In A Month.

27th GST Council Meet Outcome: Five Things To Know

gst council meeting
1. Monthly Return: GST Taxpayers excluding a few exceptions like composition dealer shall file one monthly return. Return filing dates shall be staggered based on the turnover of the registered person to manage load on the IT system. Composition dealers and dealers having nil transaction shall have facility to file quarterly return.

2. Unidirectional Flow of invoices: There shall be unidirectional flow of invoices uploaded on GST Network by the seller on anytime basis during the month which would be the valid document to avail input tax credit by the buyer. Buyer would also be able to continuously see the uploaded invoices during the month.

3. Simple Return design and easy IT interface: The B2B dealers will have to fill invoice-wise details of the outward supply made by them, based on which the system will automatically calculate his tax liability. The input tax credit will be calculated automatically by the system based on invoices uploaded by his sellers. Taxpayer shall be also given user friendly IT interface and offline IT tool to upload the invoices.

4: Proposal of concession on digital transactions: Keeping in view the need to move towards a less cash economy, the Council has discussed in detail the proposal of a concession of 2% in GST rate (where the GST rate is 3% or more, 1% each from applicable CGST and SGST rates) on B2C supplies, for which payment is made through cheque or digital mode, subject to a ceiling of Rs. 100 per transaction, so as to incentivise promotion of digital payment.

The council has recommended for setting up of a Group of Ministers from State Governments to look into the proposal and make recommendations, before the next Council meeting, keeping in mind the views expressed in GST Council.

5. Cess on Sugar above 5% GST rate: The council deliberated over the imposition of cess on sugar over and above 5% GST and also over the reduction in GST rate on ethanol. Keeping in view the record production of sugar in the current sugar season, and consequent depressed sugar prices and build-up of sugarcane arrears, the Council discussed the issue of imposition of sugar cess and reduction in GST rate on ethanol in great detail. The council has recommended for setting up of a Group of Ministers from State Governments to look into the proposal and make recommendations, within two weeks, keeping in mind the views expressed in GST Council in this regard.

Indian economy has recovered from the impact of demonetisation, GST: World Bank

Indian economy has recovered from the impact of demonetisation, GST: World Bank

As per the World Bank South Asia Economic Focus Spring 2018 report, World Bankthe Indian economy has recovered from the impact of demonetisation and the introduction of the Goods and Services Tax (GST)  regime and is projected to grow by 7.3 percent in 2018 and 7.5 percent in 2019.

India’s growth is expected to drive South Asia’s growth rate to 6.9 percent in 2018 and 7.1 percent in 2019.

The South Asia Region in this World Bank report includes Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.

Key Highlights of World Bank Report:

• Yet again, South Asia is the fastest growing region in the world and the rebound was led by India, whose growth rate accelerated in the second half of 2017.

• The region experienced the increase in inflation, however, this rise in inflation aligned with other regions. Besides, the inflation rates of most countries in the region remain near or below inflation targets.

• The trade deficits of the three biggest South Asian countries have widened.

• Around 80 percent of the South Asia region’s Gross Domestic Product (GDP) is generated in India.

• The manufacturing sector showcased signs of recovery in the last quarter of 2017 with the industrial production growing by 4 percent in the region.

• The increase in inflation in South Asia was majorly driven by accelerating monthly price increases in India in recent months. Inflation in India increased from 1.5 percent in June 2017 to 3.6 percent in October 2017, to 5.1 percent in January 2018 and to 4.4 percent in February 2018.

• Despite firm global recovery, exports remained relatively dull throughout the region, while imports grew rapidly. Export growth has been positive in India, Sri Lanka and Pakistan. However, the overall export growth in the region was lower than overall economic growth.

• Foreign direct investment (FDI), despite being unstable in the short-term, has been on an upward trend across the whole of South Asia. Both India and Sri Lanka saw their FDI increasing very strongly.

• The entire region experiences the job creation challenge. The low employment rates in South Asia are attributed to less female participation in the region in comparison with the other regions. In India and Pakistan, the gap between the actual and predicted employment rate is close to 30 percentage points.

India’s recovery from the impact of demonetization and GST

India’s growth decelerated during the most of 2016. The withdrawal of currency from circulation (demonetisation) in November 2016 and the introduction of the Goods and Services Tax regime added to the slowdown in the economy.

Both these economic measures created short-term disruptions in economic activity. Considering the increase in inflation rate and fall in real interest rates, India instilled major changes to boost Indian economy including a recapitalization plan for banks. Subsequently, the growth rate bounced back to 7.3 percent.

Job Creation Challenge in India

Despite economic rebound, job creation remains a matter of concern in India. India has been tasked to create 8.1 million jobs each year to maintain its employment rate; however, the rate has been declining largely due to less women participation in the job market.

Women were dropping out of the job market in areas between rural and urban regions, where farming jobs had vanished, but other job opportunities had not been created yet.

XaTTaX: Your automated E-Way bill compliance is just a click away!

Source :  Jagranjosh
GSTN has prepared system for 75 lakh GST e-way bills daily: Prakash Kumar

GSTN has prepared system for 75 lakh GST e-way bills daily: Prakash Kumar

Prakash-kumar-Eway Bill

Goods and services tax network (GSTN), the information technology backbone of the new indirect tax regime, completes five years on 28 March. In an interview, Prakash Kumar, its chief executive officer, talks about the challenges GSTN faces, the criticism it has encountered for technological glitches, the steps it has taken to protect taxpayer information as well as ensure a successful GST e-way bill rollout from 1 April.

How challenging has the task of creating the tax network for GST been?

It has been quite challenging. The company was incorporated in 2013 and the initial years were spent in staffing and hiring the technology provider. Though we picked Infosys in 2015, the work started in earnest only after the draft GST law was released in June 2016. We prepared all our systems based on this draft law. But in March 2017, the laws were modified in a big way. That was a big setback for us. We had to reorient a lot of things and make a lot of changes. We had initially designed one registration form for all taxpayers irrespective of whether they are composition dealers or inter-state dealers. But now we have separate forms. Similar was the case for return forms where major changes were made quite late. This forced us to release the forms in a phased manner.

The GST Council is again considering changing the return forms. Do you think this time around it will be a smooth process?

We have suggested to the government that we should be given sufficient time to develop, test and then make them available to everyone. This will ensure that when they start using the system, there will be no surprises. I hope this happens. It is the entire ecosystem which has to make the changes including the accountant software companies, GSPs (GST suvidha providers) and the taxpayers. They also have to be given time.

What are the key learnings? 

We knew that for any software development, one has to give sufficient time between the development process and implementation. But unfortunately, we had time pressure. Because the Constitution was amended, the government had to bring in GST before September 2017.

Ideally, the GST laws should have been brought in earlier. But one has to appreciate that the centre and the states were abdicating their taxation rights. So it was bound to take time.

GSTN’s ownership structure—the fact that it is a private sector entity—has also been questioned…

I do not think it is a issue. We have got the flexibility to hire people with technical expertise at market salaries. We bring in neutrality as well as the expertise to handle this kind of a big information technology project.

Are there enough safeguards to protect confidentiality of data?

None of us in GSTN has access to any individual data. The data is seen by only two people—the person who uploads the data and the tax officer who has jurisdiction over the taxpayer. The database is in an encrypted form. All data mining is done at a collective level. The database administrator does not have full access to all data pertaining to a taxpayer. If he has access to registration information, he will not have access to any other data.

Are you prepared for the rollout of the GST e-way bill the second time around?

We have made a lot of changes. NIC (National Informatics Centre) has upgraded the infrastructure. We have tested the system for the number of e-way bills that can be generated. We have prepared the system for 75 lakh e-way bills daily as against 26 lakh before. We have also decided to first start with inter-state e-way bills from 1 April and then move to intra-state later. You cannot estimate intra-state volumes. So that is why we have sought a staggered rollout for intra-state bringing in only 4-5 states in one go.


Finance Ministry to simplify GST profiteering complaint form

Finance Ministry to simplify GST profiteering complaint form

Finance Ministry to simplify GST profiteering complaint form

The Finance Ministry has simplified and reduced the number of columns in the complaint form to make it easier for consumers to report any profiteering activity by businesses post GST rollout.

The number of columns in the simplified single-page form have been slashed to 16, of which 12 fields are mandatory, to make it convenient for people.

The original profiteering complaint form, though a single page document, had about 44 columns seeking a number of details and half of those fields were mandatory.

In the new form the applicant has to give his name and address and contact details along with proof of identity. Besides, the name and address of the supplier too are to be provided.

Besides, the applicant has to state any goods or service for which the application is being filed as well as state the price value per unit and the MRP pre and post GST.

The applicant has to enclose evidence like copies of invoice or price list to prove that the benefit of tax rate reduction or benefit of input tax credit has not been passed on to consumers.

The move to simplify the form followed numerous representations received by the standing committee red flagging the complicated nature of the form.

Till January, as many as 170 complaints have been filed before the standing committee and the screening committee by consumers against businesses for not passing on benefits of tax rate reduction since the implementation of the Goods and Services Tax (GST) from July 1.

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While simplifying the form, it was kept in mind that a common man should be able to apply without the help of an accountant.

In the earlier form, the consumer has to specify the actual price or value charged per unit pre-GST and the same post GST. Also, the total tax per unit and the reduction in tax amount post GST has to be filled up by the complainant.

Details of pre-GST rates of excise duty, VAT, service tax, luxury tax charged by the businesses against whom the profiteering complaint is being lodged was also required to be filled up in the earlier form.

Self-attested copies of all documentary evidences like proof of identity, invoice, price list and detailed working sheet were required to be submitted while filing up the earlier form.

Also read: GST E-Way Bill – key pointers that you need to know

As per the structure of the anti-profiteering mechanism in the GST regime, complaints of local nature are first sent to the state-level screening committee while those of national level are marked for the Standing Committee.

If the complaints have merit, the respective committees refer the cases for further investigation to the Directorate General of Safeguards (DGS).

Once DGS submits its report, it is scrutinised by the Anti-Profiteering Authority for further action, which may include fine and extreme penalty like cancellation of registration.