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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

GST: What is an e-way bill and why is it important?

GST: What is an e-way bill and why is it important?

e-way bill xattax

What is an e-way bill ?

An e-way bill is a document that a person in charge of a conveyance carrying any consignment of goods of value exceeding Rs 50,000 is required to carry. It is a mandatory document that is generated from the GST Common Portal by registered persons or transporters who undertake movement of goods. A transporter needs to generate the e-way bill before the movement of goods commences.

Is there any scheme under GST for payment of taxes by small traders?

Composition levy is an alternative method of levying tax that is designed for small taxpayers whose turnover is up to Rs 10 million. This scheme is optional and is meant mainly for small traders, manufacturers and restaurant owners. However, it is not available to a trader engaged in inter-state supplies. Further, a trader opting to discharge GST liability under the composition scheme will not be eligible to claim input tax credit of GST paid on inward supplies.

In the pre-GST regime, a special economic zone (SEZ) customer was required to provide Form A-2 to claim exemption from payment of service tax. Will a service provider be required to obtain a similar form from his customers for not charging GST?

Under the pre-GST regime, a service provider was not required to charge service tax on his invoice for services rendered to an SEZ customer if the latter provided Form A-2 wherein he was authorised to receive specified services from such service providers.However, under GST law, there has been a change of procedure.

Under this law, supplies to SEZs have been treated as zero rated subject to execution of Letter of Undertaking/Bond by the service provider. GST law doesn’t require the SEZ customer to provide any specific form (such as Form A-2 under the service tax law).

If the GST rate on outward supply is less than the GST rate on inputs, what will be the treatment of input tax credit that gets accumulated? If refund is available, then at what time can one apply and within what time will one get it?

GST law contains a specific provision wherein the supplier of goods or services can apply for refund of input tax credit accumulated on account of inverted duty structure, except for a few categories.The refund can be applied for before the expiry of two years from the date on which the claim for refund arises. Further, the supplier would be granted provisional refund within seven days from the receipt of acknowledgment from the tax department.A person runs a grocery shop wherein he supplies goods worth Rs 50, Rs 200 and Rs 250 to three customers. Under the GST regime, can he issue a consolidated tax invoice for all the supplies made at the end of each day?Under GST law, a separate tax invoice is not required to be issued in case the value of goods or services is less than Rs 200, subject to the condition that the recipient is not a registered person and he does not require such an invoice. In such cases, the registered person can issue a consolidated tax invoice for such supplies at the close of each day for all such supplies. But for supplies of Rs 200 or Rs 250, A will have to issue separate invoices.

Also read: GST: E-way bill must for interstate goods movement from 1 February.

At the time of filing GSTR-1, does one have to file invoice-wise details or can one file consolidated details if the supplies are made to unregistered persons?

GST law allows a registered person to file the details of outward supplies in a consolidated manner in cases of intra-state supplies made to an unregistered person or inter-state supplies to unregistered person where the invoice value is up to Rs 250,000.


Impact of Goods and Services Tax (GST) on Union Budget 2018-19

Impact of Goods and Services Tax (GST) on Union Budget 2018-19

Impact of Goods and Services Tax (GST) on Union Budget 2018-19

Budget 2018-19 is the first Union Budget after the implementation of GST in July 2017. After the implementation most provisions of the Goods and Services Tax (GST) were tweaked and tax rates of numerous products were reduced in subsequent GST council meets which resulted in a sharp decline in government’s tax collection figures.GST replaced more than a dozen indirect taxes; these indirect taxes together formed a bulk of the government’s earnings. Service tax alone accounted for more than 14% of the government’s revenue in the last Budget in 2017. Thus fall is GST collection is a major cause for concern for the FM.Finance Minister Arun Jaitley who is also the GST Council Chief has stated that Budget 2018 will provide further opportunity for him to address issues related to GST and also to further tweak the GST rates. Almost every sector desires a rate cut in the GST rates but probably only a few of these expectations will be met on the budget day given the precarious fiscal situation that the FM has to deal with.

Effect of GST on Union Budget of India
One of effects of the GST on the union budget of India is that, now that the various indirect taxes are gone the manoeuvring space for the FM has reduced substantially. Before GST implementation in the Budget all the changes in the indirect taxes were contained in the Part B of the Budget that dealt with tax proposals. But now any decision regarding changes in GST rates is taken by the GST Council. Thus other than changes in the basic custom duties which are outside the purview of GST no big bang changes in the GST tax regime is expected. The FM is his Budget 2018 may state about foreseen changes but won’t be able to implement concrete changes through the Budget itself. Another effect of the GST on the Union Budget would be because after the implementation of GST the government’s revenue has been steadily declining which puts further pressure on an already strained fiscal deficit target of the government. Along with need for enhance public spending in various sector, the fall in GST collection throws up a difficult situation for the FM to tackle in the Budget 2018.

Challenges related to GST in Budget 2018
The most significant GST related challenge for the FM is to tackle falling GST revenues. The GST collections have been consistently going South since September. This is majorly due to cut in GST rates on many products and because of small businesses opting to file returns on a quarterly basis instead of initially proposed monthly returns. If the current trend continues the GST collection of the government would be below collection of indirect taxes in the pre-GST era, this will be a big jolt to the fiscal consolidation agenda of the Government. Thus the biggest GST related challenge before the FM is to improve GST collection through better compliance, technology and other means. Another challenge for the FM is to expand the GST base thus we could see some movement on this front too in the Budget 2018. Government may incentivise and offer concessions and rebates to honest tax payers and make evading GST more difficult. GST when introduced was supposed to be a user friendly tax regime hence further steps to simplify the GST system is also expected. The Budget 2018 may also be used to iron out some issues that are plaguing the GST regime such as export refunds that are stuck with GST department, technological bottlenecks and more.
Also read: 25th GST Council Meet:Rates revised for 29 goods, 53 services, says Arun Jaitley

GST related decisions expected in the Budget 2018
The major GST related decisions that may be unveiled in the Budget 2018 are bringing of the real estate sector under the purview of GST along with diesel, natural gas and gasoline. Although the FM cannot reduce the GST rates of the products in the Budget but he can announce the intention of reducing GST rates on products such as electric vehicles, agriculture related products used by farmers and others.  One of the GST related expectation from the Budget is that the limit of the composition scheme of GST which is currently 15 Lakhs can be increased to 30 Lakhs. Other GST related decisions on clarity of taxation on e-wallets, centralised registration for banks, insurance companies and financial institutions and also ending of certain restrictions on input tax credit is expected. A decision on single stage return filing by consolidating the three key return forms GSTR1, GSTR2 and GSTR3 to minimize compliance burden on small and medium businesses may also find mention in the FM’s speech on the that day.

Ease Your GST Filing & Invoice with XaTTaX GST Software


Source: Business Standard
‘GST changes game for tax evaders’: Finance secretary

‘GST changes game for tax evaders’: Finance secretary

‘GST changes game for tax evaders’: Finance secretary

Finance secretary Hasmukh Adhia said on Tuesday that goods and services tax (GST) will “change the game” for those who avoid to paying taxes. “When GST was introduced it was hailed as a gamechanging tax reform. Do you know what is game changing? It is an innovation which can spoil the games people were playing to avoid paying taxes,” Adhia told a gathering of exporters, while delivering his speech in Hindi. The rollout of GST has been seen as a measure to plug loopholes and ensure that businesses across the country start paying taxes. Using high-end return filing and matching system, the new tax regime makes it tough for tax evaders. Introduction of GST is also seen as the government’s overall strategy to nab evaders.

Adhia, who has played a key role in the implementation of the new tax reform measure, explained in detail to exporters how it will benefit them. “Leave aside the transition problems. I want to assure you that in the long term it (GST) will benefit exports.”

The finance secretary explained the reason behind delay of refund for exporters and how the government had responded swiftly to address the problem. He said wrong filing of returns along with technological problems had delayed the process.

Adhia also elaborated the benefit of GST for exporters. “Earlier some states would give VAT refunds after two-to-three years, some would never give. Plus there was no credit for 5% octroi if you were in Mumbai. Under the GST system being put in place to file one application, get one refund order and get one refund. This will ease life and will boost exports.”

He said once the system stabilises, exporters will get refund for Integrated GST (IGST) as soon as they file for it. Adhia said the government has devised a manual cum automatic way of filing refund. “This is an online system. Printout has to be submitted to jurisdictional officer.”

Commerce and industry minister Suresh Prabhu said introduction of the new tax regime “would be the catalyst for spurring growth in the export sector. Lower duty on most of the items and reduction of cascading effect of various duties would lower the cost and make exports competitive”.

Source :  The Times of India
PMI: Restocking bounce short-lived, GST clouds over manufacturing sector darken

PMI: Restocking bounce short-lived, GST clouds over manufacturing sector darken

GST will further boost India’s ranking in ease of doing business, say bankers

Concerns of Indian manufacturers over the negative impact of the goods and services tax (GST) are far from over. The bounce seen in manufacturing output and new orders, aided by restocking ahead of the festive season in September, has waned.

The Nikkei Purchasing Managers’ Index (PMI), a seasonally adjusted monthly survey of private sector activity, showed that manufacturing PMI fell to 50.3 last month from September’s 51.2. A reading above 50 indicates economic expansion from the previous month, while one below 50 points to contraction.

PMI: Restocking bounce short-lived, GST clouds over manufacturing sector darken
After expanding for the previous two months, the New Business Orders Index slipped into the contraction zone at 49.9 in October.

Even though the manufacturing PMI remained above the expansion threshold for the third consecutive month in October, it was only marginally in positive territory. The deceleration suggests that manufacturing activity has not recovered from disruption caused by goods and services tax.

Also Read: GST will further boost India’s ranking in ease of doing business, say, bankers

Ambiguity over the new tax regime weighed on demand conditions, consequently hampering new business orders. After expanding for the previous two months, the New Business Orders Index slipped into the contraction zone at 49.9 in October.

Commenting on the Indian Manufacturing PMI survey data, Aashna Dodhia, economist at IHS Markit and author of the report, said, “India’s manufacturing companies struggled somewhat as the recent recovery enjoyed by the sector lost impetus in October. Disappointingly, manufacturing production rose at the weakest pace in the current sequence of growth. Inflows of new orders stagnated as the negative effects arising from the implementation of GST continued to dampen demand levels.”

As a result, business confidence among manufacturers, which had recovered in September, faded. The Future Output Index eased to 57.5— the weakest since February. “Optimism was rooted in projected benefits of GST materializing over the next 12 months. However, some firms expressed concerns over negative GST effects,” added Dodhia.

Also Read: GST extension- July deadline to file GSTR-2, GSTR-3 moved to Nov 30, Dec 11

Meanwhile, the deadline to file GST returns for July was extended since many could not upload information given the technical glitches with the GST Network. Businesses will be able to claim timely credit depending on the accuracy and completeness of data. Failing that, the pressure on their working capital is likely to remain.

GST Ready Invoicing Software – Generate GST Compliant Invoice


Source :  Livemint
Tax professionals defer protest against GST filing

Tax professionals defer protest against GST filing


GST India

Tax professionals from across Gujarat who had been protesting against the system of filing GST returns since a week, have postponed their plans for a mega rally and subsequent protest programmes till the next GST council meeting which will be held on November 9.

The decision was taken on Sunday after a delegation of representatives of Gujarat Sales Tax Bar Association (GSTBA), met CM Vijay Rupani. In fact, GSTBA officials also met commercial tax commissioner, P D Vaghela, on Monday.

“CM Rupani has assured that all our issues will be submitted before the Union government and in the upcoming GST Council meeting, necessary decisions to address these problems will be taken,” said Harnish Modh, secretary, GSTBA.

Last week, in a major announcement, GSTBA had announced mega protest rally on Thursday – November 2 apart from other protest programmes on November 6 and 7. On Friday, tax professionals had staged a major protest outside SGST/ CGST centres across more than 25 cities of Gujarat, urging the tax authorities to file returns on their behalf.

In fact, GSTBA officials have also submitted the memorandum to the concerned authorities enlisting a number of issues faced by them for filing GST returns including arbitrary errors and penalties along with non-submission of correctly filled forms, among others.

Deadline for filing GSTR-2, GSTR-3 forms extended

Ahmedabad: Top level members of Gujarat Chamber of Commerce and Industries (GCCI) including President Shailesh Patwari and honourary secretaries – Anil Sanghvi and Saurin Parikh – met Union finance minister, Arun Jaitley on Monday, urging to extend deadline for submitting GSTR-2 and GSTR-3 as traders and businesses are facing tremendous difficulties. Union government soon after made an announcement deferring the deadline to file GSTR-2 and GSTR-3 for the month of July 2017 to November 30 and December 11, respectively. The move comes as a major relief to a host of traders and businesses. That apart, other issues such as expedition of GST refund to exporters, reducing tax rate of certain commodities attracting 28% rate and difficulties of small traders in filing returns, were also represented before the finance minister.

GST Ready Invoicing Software – Generate GST Compliant Invoice


Source :  The Times of India
GST: Key questions and concerns

GST: Key questions and concerns

GST- Key questions and concerns

Four months since the launch of the goods and services tax (GST) a number of concerns and questions remain:

States’ rights

The GST Bill has not infringed on the rights of the state legislatures. In fact, the amendments to the Constitution have been made by consensus and all states have agreed to the GST scheme. It is also gratifying that all decisions of the GST Council have been unanimous so far. The state legislatures have obviously agreed to the GST scheme because the levy of value-added tax (VAT) on alcohol and petroleum products has been left out of it, whereby a substantial part of the revenue accruing to the states continues to be protected as state subjects. At the same time, accommodating the demands of the states has weakened the GST regime by making it complicated. It has also resulted in very high rates of taxation including GST rates of 28 percent and above.

Exemption limit

The announced exemption for firms with a turnover below Rs 20 lakh is very low and will not ensure the protection of the informal sector. Further, the reverse charge mechanism (RCM) is a serious blow to the informal sector and it has reportedly resulted in very small units being affected since larger units are reluctant to buy from them because of the RCM. Fortunately, this mechanism has been postponed until March 2018.

GST and GDP growth

The GST scheme was expected to increase GDP growth. But the complicated structure and the initial infrastructural problems have resulted in several units of all sizes facing difficulties in compliance. There are also reports that the manufacturing sector has experienced a slowdown and exports have been affected because of goods and service tax issues. The need for payment of the GST at the outset and for claiming the refund at a later point in time has also impacted cash flow. For the present, the GST scheme will not give any boost to GDP growth.

Gold bullion, real estate, and alcohol

Traditionally, the bullion and jewellery sector has been subjected to very low rates of tax because of difficulties in compliance and the largely unorganised nature of business in this area. The tax rate of 3 percent is a continuation of a similar rate that prevailed at an earlier point in time.

As far as the real estate sector is concerned, there is no justification for keeping it outside the ambit of the GST. Indeed, housing is an extremely important segment of the economy and including housing in the GST would have benefited housing projects for weaker sections. By excluding housing from the GST, the cost of individual apartments is bound to go up and this will particularly hit the lower middle class. When all inputs like cement and steel are subject to the GST and when renting of immovable property is also subject to the GST, there is no justification in disallowing GST on the ground that the houses which are constructed are immovable property.

At the same time, alcohol was kept out of the GST because of political compulsions and because it is a substantial source of revenue for most states. They would not have parted with the right to levy taxes on potable alcohol and without this concession the GST would not have been possible.

Gainers and losers

At present, it is still uncertain as to who will gain or lose in the long run from this major tax reform. It is likely that large sectors may benefit because of input credit on both goods and services and elimination of interstate trade barriers. This is a theoretical advantage but may get partly affected because of complex legal structures. For example, the e-way bill may create problems in transportation which will offset any benefit that has arisen because of abolishing octroi/entry tax or check posts. At present, the informal sector units are affected by the GST scheme as they do not have the capability of electronically complying with complex procedural requirements. Further, serial classification disputes are also likely to arise because of multiple tax rates.

Simplifying the tax system

The tax system will have to be simplified; the present complex system cannot continue. There is already an indication that multiple tax rates will have to be reduced and the maximum rate has to be brought down. Unless there is the procedural simplification, the compliance costs will become quite heavy. There is a need to eliminate several provisions which do not serve any purpose. For example, the need to file three monthly returns is a provision which does not exist anywhere in the world and there is no reason why Indian businesses should be burdened with this onerous requirement.

Are we ready for GST?

India was not ready for GST on 1 July 2017. It would have been better if the GST had been introduced on a trial basis or like a pilot project and then suitably amended to ensure a relatively painless transition to the new regime. Unfortunately, the entire nation was required to shift to a completely new regime which was procedurally complex. There was inadequate electronic infrastructure both with the assessees as well as the government. Further, frequent changes in the rules and rates of duty added to the difficulty in having a workable software system. It is hoped that these technical problems are sorted out in the next few months.


Originally Written By Mr Arvind Datar (senior advocate and legal scholar)
Source: Idea For India
Could the Government’s initiatives make GST a simple affair?

Could the Government’s initiatives make GST a simple affair?

Make GST Simple

It’s been barely three months since the introduction of the Goods and Services Tax (GST), the good and simple tax law has been further simplified. The Hon’ble Prime Minister Narendra Modi also stated that the decisions taken by the GST Council in its twenty-second meeting have evoked the mood of Diwali festival for taxpayers.

The government was flooded with several representations primarily from the exporters as well as Small and Medium Enterprises (SME) on the varied challenges faced by them in the first quarter of GST implementation. The trader community especially merchant traders/exporters were facing serious concerns on account of blockage of working capital and delayed refund of the taxes paid on export of goods or services. The taxpayers were finding it difficult to undertake compliances correctly due to system issues and they were puzzled by the complications in the return filing process, reverse charge on procurement from registered suppliers, etc.

Taking a note of the increasing dissent in the exporter and trading community, the GST Council has taken several decisions which are expected to benefit the exporters and SMEs and is intended to ease the compliance burden. Some of the key decisions taken by the GST Council especially for exporters include the extension of the upfront exemption from IGST on procurements available under various schemes such as advance authorisation, Export Promotion Capital Goods Scheme and 100% Export Oriented Units (EOUs). The exemption will apply to the procurement of goods whether imported or sourced indigenously. However, the said benefit is not extended to the procurement of services. As the contribution of services sector increases in the economy, the exporters would have rejoiced had the scheme extended to cover the procurement of services as well. Further, in the absence of any specific notification, it is not clear whether the service export units (such as Software Technology Parks of India /Service EOU) can avail the said exemption.

Another attempt made to alleviate the burden of working capital for merchant exporter was to reduce the GST rate on the procurements made by such exporters to a marginal rate of 0.1%. The GST Council has also announced that the refunds of the IGST paid on exports in the month of July 2017 will be paid/cleared from 10 October 2017 and that for the month of August 2017 will be cleared from 18 October 2017. The authorities also issued a Circular on 9 October 2017 clarifying the procedural aspects for grant of refund to exporters. Trade and industry will celebrate the festival of lights if the burden of working capital is made lighter by actual grant of refund within the timelines announced.

Also Read: GST composition scheme: GoM consensus on providing relief to small restaurants

Further, the decision to defer the compliance under the reverse charge mechanism applicable for procurements from unregistered suppliers till 31 March 2018 is a welcome relief. However, the trade expects that such reverse charge mechanism should be withdrawn completely and not deferred only for a few months.

Contrary to the industry demand for the abolition of the e-way bill system, the GST Council has decided to implement the same in a staggered manner from 1 January 2018 and on an all India basis from till 31 March 2018. The industry believes that given the stringent control and penal provisions for issuance of invoice/delivery challan for every movement of goods, the requirement for e-way bills could unnecessarily lead to additional compliance burden and not contribute to the ease of doing business in India.

Small enterprises can rejoice as the limit for composition scheme has been enhanced to INR1 crore in a move to provide relief to a large base of small taxpayers. Also, the SME sector has been granted the facility to furnish tax returns and tax payments on a quarterly basis instead of a monthly return/payment. However, all the taxpayers will have to file the monthly returns for the first quarter and the benefit of quarterly returns can be availed only from the quarter of October-December 2017. Thus, all taxpayers will have to experience the online matching concept and monthly return for the first quarter ending in September 2017.

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

Unlike the erstwhile regime, the time of supply of goods also includes the receipt of advance and this has affected small dealers and manufacturers as they had to prepay the GST. Therefore, the GST Council has granted a waiver from payment of GST on receipt of advances. Now, small dealers and manufacturers having an annual aggregate turnover upto INR1.5 crore shall be liable to pay GST only on actual supplies of goods and not on advances received. This can also help eliminate the issue of non-availability of input tax credit albeit only for a small section of the taxpayers. Even the Tax Deducted at Source (TDS) and the Tax Collected at source (TCS) provisions are deferred till 31 March 2018.

Besides the above key measures, the GST Council has also rationalised the applicable GST rates for many products in line with the industry representation. The noteworthy items primarily include food items, unbranded ayurvedic/homoeopathy medicines, man-made and synthetic/artificial filament yarn, e-waste, etc.

Another crucial matter for the manufacturing sector is the uncertainty on the quantum of area-based incentives including incentives offered by states under the state industrial policy. Though recently a notification to the effect was issued in the public domain by the central government, the stand of state governments is not clear.

Read: Tracking the GST that you pay is now at your fingertips!

While some relaxations announced by the GST Council are a step in the right direction, however, the job is not yet done. These measures are primarily aimed at the SME sector and all other taxpayers who have an annual turnover of more than INR1.5 crore will still be required to comply with stringent compliance under GST. Besides this, there are several other challenges which the industry is facing especially with regard to a stabilisation of GSTN/technical glitches and it is expected that the GST Council will accord due importance to these issues to help ensure that the real intended benefit of GST is enjoyed equally by the trade and the consumer. These steps in a continuous dialogue between the government and trade can really make GST, in a true sense, a Good and Simple Tax.

Ease Your GST Filing & Invoice with XaTTaX GST Software

Source: Forbes India
GST composition scheme: GoM consensus on providing relief to small restaurants

GST composition scheme: GoM consensus on providing relief to small restaurants

GST compostion Scheem

In an extension of the relief measures taken by the Goods and Services Tax (GST) Council in its October 6 meeting, the Group of Ministers (GoM), constituted to make the composition scheme more attractive, broadly agreed to provide more relief for small and medium businesses in its first meeting held in Delhi on Sunday. The five-member committee is learnt to have agreed upon the need to reduce the GST composition rate for dhabas/roadside eateries/small restaurants, from the existing 5 per cent and also, have a differential GST rate for non-AC restaurants, a state finance minister who attended the meeting said.

Also, the GoM, convened by Assam’s finance minister Himanta Biswa Sarma, has agreed to invite representatives from the micro, small and medium enterprises (MSMEs) in the next GST Council meeting to incorporate their views while deciding on some more relief measures for the MSME sector.

“The broad consensus of the meeting was that there is a need to provide more relief to the smaller businesses. Tax rate for restaurants should be differential, such as the GST rate for restaurants, other than those in luxury hotels, should be lower than the existing 12 per cent (for non-AC restaurants). It was also discussed that the GST rate for restaurants under the composition scheme should be lower than (the current rate of) 5 per cent so that the dhabas/roadside eateries/small restaurants benefit from it,” the state finance minister cited above said.

The recommendations of the GoM regarding the composition scheme will be taken up in the next meeting of GST Council that is scheduled to be held early next month, the state finance minister said.

In its last meeting held on October 6, the GST Council had taken a slew of measures to significantly reduce the compliance burden of small companies and traders by allowing them to file quarterly returns instead of monthly submissions, expanding the scope of the Composition Scheme and making it easier for exporters to claim tax refund.

Also, finance minister Arun Jaitley had announced that the Council had decided to set up a Group of Ministers to “make the composition scheme more attractive”. The terms of reference for the GoM include examining whether turnover of exempted goods can be excluded from the total turnover threshold for levying tax under the Composition Scheme along with looking into the tax structure of different categories of restaurants, with “a view to their possible rationalisation/reduction”. The GoM will also examine if inter-state outward supplies of goods can be a part of composition scheme and if input tax credit can be allowed to registered taxpayers receiving inward supplies from composition dealers.

The measures taken for the MSME sector by the GST Council earlier this month included increase in the turnover threshold for Composition Scheme to Rs 1 crore as compared to the earlier turnover threshold of Rs 75 lakh. Composition scheme dealers have to pay GST at the rate of 1 per cent of the turnover, manufacturers at the rate of 2 per cent and restaurants at the rate of 5 per cent.

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

The GST Council had also allowed assesses with turnover less than Rs 1.5 crore to pay taxes and file returns on a quarterly basis instead of monthly basis, starting from October-December quarter. The Council had also allowed small service providers to operate across multiple states without registering with the GST Network and had exempted exempt service providers with annual aggregate turnover less than Rs 20 lakh from obtaining registration even if they are making inter-state taxable supplies of services.

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

Source: The Indian Express
Tracking the GST that you pay is now at your fingertips!

Tracking the GST that you pay is now at your fingertips!

GST Track Mobile

A mobile app to help consumers verify the rate of GST levied on the product they purchase, or the service they access, and to assist the tax authorities in the crackdown on enterprises retaining the tax they collect, is to be launched soon by the Telangana government.

The Commercial Taxes Department and IIT-Hyderabad have developed the TGST app and its beta version is available, Principal Secretary-Commercial Tax and Excise Somesh Kumar said here on Thursday.

Keep track of the GST you payExplaining the benefits, Mr. Somesh Kumar said a consumer needs to merely upload a photo of the bill issued to them by an enterprise on the app. The photo gets “automatically uploaded to the server and then (the bill) is processed by us. The consumer gets a feedback on whether the enterprise was enrolled under goods and service tax and was charging the correct rate.”

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

It would bring in more transparency and act like a feedback mechanism. The app would also provide information on whether the enterprise had opted for the composition scheme under GST, he said. Firms that have opted for the scheme are not supposed to levy tax, including a hotel, Mr. Kumar said in an interaction with presspersons on the sidelines of the conference on ‘GST – Post Implementation Issues’. Earlier, addressing the conference organised by industry body Assocham, the senior official said it has been 100 days since the roll-out of goods & service tax and revenue income was improving. The GST Council, he added, was addressing issues concerning the exporters as well as small and medium enterprises. In two months, Rs 2,800 crore had been collected in the State, he said.

Additional Commissioner-GST (Rangareddy) Manjula D. Hosmani said at the conference that the government was aware and reacting proactively to the concerns related to GST. As of October 5, of the 2.21 lakh registered assessees under Goods & Service Tax, around 1.37 lakh had filed their GSTR-3B, she said, advising them to avoid last minute rush in filing returns. Former Chairman of CBEC S. Dutt Majumder said GST is a work in progress and the glitches were being addressed.

Ease Your GST Filing & Invoice with XaTTaX GST Software

Source: The Hindu