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GST Analytics wing to identify risky suppliers to exporters

GST Analytics wing to identify risky suppliers to exporters

The CBIC has asked GST risk management wing to conduct supply chain analysis to identify risky major suppliers to exporters and share it with jurisdictional field officers. The Central Board of Indirect Taxes (CBIC) had received representations from exporters saying in some cases the Integrated GST (IGST) refunds are getting delayed by over 6 months.

Last year, the CBIC had detected several cases of firms availing credit fraudulently through refund of Integrated Goods and Services Tax on exports of goods.

To mitigate the risk, the CBIC has taken measures to apply stringent risk parameters based checks, and the consignment of such exporters in risky category are subject to 100 per cent Customs examinations and their refunds were kept in abeyance.

The CBIC, which had in January issued a standard operating procedure (SoP) to be followed by such exporters, has now asked GST and Customs Zonal principal chief commissioners to forward all pending verification report to Directorate General of Analytics and Risk Management (DGARM) by June 5.

“The zonal Peincipal Chief Commissioners/chief commissioners of CGST and CX zones are advised to put a process in place to ensure that in future all such verifications are completed and reports sent to DGARM within maximum 3 weeks of receipt of request of verification from DGARM,” the CBIC said.

While partially modifying the SoP issued in January, the CBIC said in order to cut down the time taken in grant of NOC (no objection certificate), the DGARM will “conduct supply chain analysis without waiting for verification report from field and share risky first and second level major suppliers with the jurisdictional CGST (Central GST) formations at the same time when the risky exporter details are shared with the CGST formations”.

The verification report in respect of identified suppliers will be sent by GST and customs Commissionerates directly to DGARM, which will take decision on grant of NOC or otherwise based on such verification reports in respect of exporters and its suppliers.

“DGARM would grant final NOC to the exporter once the verification of the identified first and second stage risky supplier is found in order,” CBIC said.

In case of availment of in admissible credit by the suppliers, the GST officers will ensure due process of recovery. If the taxpayer is under the administrative control of states/UTs, the issue of recovery would be flagged to them, the CBIC said.

Associates Senior Partner Rajat Mohan said exporters have a vested right of tax refunds unless they are proven guilty.

“With an internal memo from GST policy wing looping in the senior-most tax officers in a state is expected to ease the plight of exporters,” he said.

Source: Economic-Times.

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Clear picture of GST mop up in April to come by June-end: Finance Secretary

Clear picture of GST mop up in April to come by June-end: Finance Secretary

Finance Secretary Ajay Bhushan Pandey on Wednesday said the clear picture regarding GST collections for April would emerge only by June 30 — the deadline by which businesses with up to Rs 5 crore turnover can file returns without any late fee and interest. The government had in March extended the deadline to file GST returns for taxpayers with turnover of over Rs 5 crore by 15 days till May 5 from the due date of April 20 without payment of any late fee and interest. However, a reduced rate of 9 per cent interest will be levied if the return is filed after May 5 till June 30.

For taxpayers with turnover up to Rs 5 crore, there would be no interest and late fee would be waived if filed within the stipulated deadline set in June.

Conventionally, the government releases GST revenue mop up numbers on the basis of collections in a particular month. Hence, the collection in April was due to be released on May 1.

To a query on why the April GST number has not been released, Pandey said, “You know that the GST filing dates has been extended. If it will be extended, we have said that returns can be filed till June, people who have turnover of more than Rs 5 crore they also got more time.”

“So after giving these extensions, a clear picture about the revenue collection we will get only by June 30. That’s why we have not yet released the figure. People who are able to file returns have paid GST and rest have time till June 30. It is only after June 30 that we will have a clear idea of the revenue collected,” he said.

In the 2019-20 fiscal, the Goods and Services Tax (GST) collection remained above the key Rs 1 lakh crore-mark for seven months out of 12. The collection stood at Rs 97,597 crore in March.

The real impact of the coronavirus lockdown on GST revenue will be reflected in the revenue collections of May (for business activity in April) as the country was in complete lockdown last month with only essential services permitted.

Experts said the GST mop up in May would mainly come from sectors like telecom, FMCG, food processing and pharma.

Pandey, who is also the revenue secretary, further said about Rs 11,000 crore GST refunds have been issued during April.

The Central Board of Indirect Taxes and Customs (CBIC) had launched a Special Refund Drive in April to clear pending GST and drawback refunds to help businesses tide over the liquidity crunch amid the COVID-19 crisis.

Source: Economic-Times

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CBIC issues clarification on GST Compliance Requirements

CBIC issues clarification on GST Compliance Requirements

The Central Board of Indirect Taxes and Customs (CBIC), on Wednesday, issued the clarification in respect of certain challenges faced by the registered persons in the implementation of provisions of Goods and Service Tax (GST) Laws.

The circular was issued addressing the Principal Chief Commissioners of Central Tax and the Principal Director Generals / Director Generals while issuing clarification on various challenges.

As per the circular, Interim Resolution Professional (IRP) or Resolution Professional (RP) is now required to obtain registration within thirty days of the appointment of the IRP/RP or by June 30, 2020, whichever is later.

“IRP/RP would not be required to take a fresh registration in those cases where statements in FORM GSTR-1 under section 37 and returns in FORM GSTR-3B under section 39 of the CGST Act, for all the tax periods prior to the appointment of IRP/RP, have been furnished under the registration of Corporate Debtor (earlier GSTIN),” the circular further clarified.

The clarification pertaining to an amendment in the registration form provides that such a change would need and only change of authorized signatory which can be done by the authorized signatory of the Company who can add IRP /RP as a new authorized signatory or failing that it can be added by the concerned jurisdictional officer on request by IRP/RP.

“The requirement of exporting the goods by the merchant exporter within 90 days from the date of issue of tax invoice by the registered supplier gets extended to 30th June, 2020, provided the completion of such 90 days period falls within 20.03.2020 to 29.06.2020,” the circular stated while addressing other COVID-19 related representations.

Source: TaxScan.

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CBIC extends due date for Filing GST Annual Return

CBIC extends due date for Filing GST Annual Return

The Central Board of Indirect Taxes and Customs ( CBIC ) has extended the due date for filing GSTR-9 (Annual Return) for the Financial Year 2018 – 19 to be extended till the 30th of September, 2020.

The GST Council, in its 39th meeting, had extended the due date for filing GSTR-9 (Annual Return) and GSTR-9C (Reconciliation Statement) for the Financial Year 2018 – 19 to 30th June 2020.

GSTR 9 is an annual return to be filed yearly by taxpayers registered under GST. It consists of details regarding the outward and inward supplies made/received during the relevant previous year under different tax heads i.e. CGST, SGST & IGST, and HSN codes. It is a consolidation of all the monthly/quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) filed in that year. Though complex, this return helps in extensive reconciliation of data for 100% transparent disclosures.

The late fees for not filing the GSTR 9 within the due date is Rs 100 per day, per act. That means late fees of Rs 100 under CGST and Rs 100 under SGST will be applicable in case of delay. Thus, the total liability is Rs 200 per day of default. This is subject to a maximum of 0.25% of the taxpayer’s turnover in the relevant state or union territory. However, there is no late fee on IGST yet.

Read Notification here: https://www.taxscan.in/preview/?previews=15ax53cDwCpa7kwoRqfcTGX6Lai_q4Go_

Source: TaxScan.

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I-T dept, GSTN, CBIC caution people against phishing emails promising refunds

I-T dept, GSTN, CBIC caution people against phishing emails promising refunds

The two apex tax bodies – income tax department and CBIC – on Sunday asked taxpayers to beware of phishing emails promising refund.

Separately GST Network, the company handling the technology backbone for Goods and Services Tax, cautioned against a fraud website onlinefilingindia.in asking taxpayers not to reveal personal and bank details.

“BEWARE of FRAUD website onlinefilingindia.in. It is trying to BAIT taxpayers to reveal personal and bank details. DO NOT respond to messages, mails and lookalike websites which ask for your personal details,” GSTN tweeted.

It further said that some fraudulent messages are being circulated on WhatsApp, Email and SMS claiming to process refund.

“Miscreants are attempting to take undue advantage of COVID-19 crisis by sending out fake messages with phishing links. One such link takes to a portal claimed to have been developed by GSTN. the same is fake,” GSTN tweeted.

Fraudsters may also pose as tax officials or GSTN personnel and send fake email asking to urgently verify or update account. Taxpayers are advised to remain cautious against such messages, it added.

GSTN also issued a list of Do’s and Don’ts and asked taxpayers to call GST help desk 1800-103-4786 in case of any query.

Earlier in the day, the tax department had tweeted: “Taxpayers Beware! Please do not click on any fake link which promises to give refund. These are phishing messages and are not sent by the Income Tax Department”.

Similarly, the Central Board of Indirect Taxes and Customs (CBIC) in a late evening tweet asked taxpayers not to click on any fake link which promises to give refund.

“These are phishing messages and are not sent by CBIC or @Infosys_GSTN. Visit gst.gov.in for online filings related to GST,” the CBIC tweeted.

The Finance Ministry had on April 8 said it will fast track issuance of pending income tax refunds up to Rs 5 lakh which will benefit around 14 lakh taxpayers, to provide relief to individuals and businesses hit by COVID-19 outbreak.

As per latest data, between April 8-20, the department had issued nearly 14 lakh refunds involving an amount of over Rs 9,000 crore to various taxpayers — including individuals, HUFs, proprietors, firms, corporate, start-ups, MSMEs.

The CBIC too had cleared over Rs 10,700 crore worth refunds in GST and Customs duty between April 8-23.

The ministry has decided to issue all pending GST and Custom refunds which would benefit around 1 lakh business entities, including MSME. The total refund granted will be approximately Rs 18,000 crore, it had said. JD BAL BAL

Source: Economic-Times

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CBIC clears Rs 10,700 cr GST, customs duty refund in 16 days

CBIC clears Rs 10,700 cr GST, customs duty refund in 16 days

The Central Board of Indirect Taxes (CBIC) has cleared over Rs 10,700 crore worth refunds in GST and customs duty between April 8-23.

In the ‘Special Refund and Drawback Disposal Drive’, the CBIC officers have cleared over 1.07 lakh Goods and Services Tax and IGST refund claims worth Rs 9,818.12 crore.

Over 1.86 lakh customs and duty drawback refund was processed totalling Rs 915.56 crore, the CBIC said in a tweet.

“CBIC is committed to help GST Taxpayers/Exim Trade during #COVID19. Expeditious sanction of refunds during Special Refund Drive provide relief to trade, especially MSMEs,” it said.

The Finance Ministry had on April 8 said that to provide relief during COVID-19, it has been decided to issue all pending GST and custom refunds which would benefit around 1 lakh business entities, including MSME.

The total refund granted will be approximately Rs 18,000 crore, it had said.

The CBIC had earlier asked its field officers to avoid asking for physical submission of documents from entities who are claiming GST and customs refunds and instead use official email for all communication.

The CBIC had said that the decision to process pending refund claims has been taken with a view to provide immediate relief to taxpayers in these difficult times even though the GST Law provides 15 days for issuing acknowledgement or deficiency memo and total 60 days for disposing off refund claims without any liability to pay interest.

Source: Economic-Times

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CBDT again defers GST, GAAR reporting in I-T audit report till Mar 2021

CBDT again defers GST, GAAR reporting in I-T audit report till Mar 2021

The Income Tax Department on Monday deferred for the third time the requirement for companies to include in their I-T audit report the details of the Goods and Services Tax (GST) and GAAR.

The reporting requirement of these details in income tax audit form has been kept in abeyance till March 31, 2021 — meaning that all income tax audit reports need not include details on the GST and the General Anti-Avoidance Rules (GAAR) till March 2021.

Business entities having a turnover of more than Rs 1 crore (or Rs 2 crore if they have opted for presumptive taxation) and professionals with gross receipts of more than Rs 50 lakh have to comply with the tax audit requirements.

The due date for its filing is September 30 and if the taxpayer is covered by transfer pricing provisions, the due date is November 30.

The Central Board of Direct Taxes (CBDT) in an order issued on Monday said the board has received representations with regard to difficulty in implementation of reporting requirements under clause 30C (pertaining to GAAR) and clause 44 (pertaining to GST compliance) of the Form No 3CD in view of the global pandemic due to COVID-19 and requested for deferring it’s applicability.

“The matter has been examined and in view of the prevailing situation due to COVID-19 pandemic across the country, it has been decided by the board that the reporting under clause 30C and clause 44 of the tax audit report shall be kept in abeyance till March 31, 2021,” the CBDT said.

In July 2018, the I-T department had changed the tax audit form – 3CD, seeking details under the GST as well as the GAAR, which seeks to prevent companies from routing transactions through other countries to avoid taxes.

The changes were to come into effect from August 20, 2018.

With stakeholders complaining that the change is onerous and a burden on companies, the CBDT had then deferred the implementation of the change in I-T audit form till March 31, 2019. Further in May 2019, the CBDT had deferred its implementation till March 31, 2020, and with April 24 order it has now been deferred till March 31,2021.

Consulting firm AKM Global Tax Partner Amit Maheshwari said, “We don’t have a detailed guidance on certain aspects related to reporting on GAAR.

This certification poses a challenge to auditors as it is very subjective in nature. Though this deferment comes as a relief to the auditors, it is better to do away with this requirement as it is not fair to expect the auditors to comment on such subjective piece of legislation.”

Nangia Andersen LLP Director Sandeep Jhunjhunwala said, “The decision to defer the onerous reporting requirements is a clear indicator that the CBDT is ensuring that there aren’t any slips between the cup and the lip, leading to taxpayers’ anguishes. In the midst of COVID-19 pandemic, tax authorities have been proactively announcing the relaxation in compliance and reporting obligations for businesses.”

Source: Economic-Times

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CBIC enables Form PMT-09 for Shifting Wrongly Paid Input Tax Credit

CBIC enables Form PMT-09 for Shifting Wrongly Paid Input Tax Credit

The Central Board of Indirect Taxes and Customs ( CBIC ) has enabled the Form PMT-09 for shifting the wrongly paid the Input Tax Credit ( ITC ).

The CBIC has recently introduced Form PMT-09 (i.e. a challan) for shifting wrongly paid Input Tax Credit. This enables a registered taxpayer to transfer any amount of tax, interest, penalty, etc. that is available in the electronic cash ledger, to the appropriate tax or cess head under IGST, CGST and SGST in the electronic cash ledger.

Hence, if a taxpayer has wrongly paid CGST instead of SGST, he can now rectify the same using Form PMT-09 by reallocating the amount from the CGST head to the SGST head.

All taxpayers registered under GST are eligible to shift any balances available in the electronic cash ledger using Form GST PMT-09. The option is available after the taxpayer logs in, under the electronic cash ledger tab. Thus, a taxpayer can now easily rectify wrongly paid taxes or other amounts.

Source: TaxScan

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CBIC processes 12923 GST Refund applications involving claims worth Rs 5575 Cr amid Lockdown

CBIC processes 12923 GST Refund applications involving claims worth Rs 5575 Cr amid Lockdown

CBIC said that it is fully committed to helping the GST taxpayers in the present COVID-19 situation. Since 30th March 2020, CBIC has processed 12923 refund applications involving claims worth Rs. 5575 Cr. While in the last week itself, CBIC has processed 7873 claims worth.. 3854 Cr. CBIC said that a trade and business-friendly measure taken by CBIC .de its Circular No. 133 da.d 31.03.2020. help GST returns filers to facilitate early ITC refunds and to ensure that the wrong ITC claims are not processed in the absence of relevant information, is misconstrued in certain sections of social media and other media as troubling the taxpayers in COVID -19 like situation.

CBIC said that this measure was taken into effect with GST Council’s approval in its 39th Meeting held on 14.03.2020. mitigate delays in I’M refunds faced by the taxpayers besides ensuring that wrong ITC claims are not processed. It had been brought to the notice of GSTC by various stakeholders including the taxpayers. It was noticed that lot of time is spent in the verification of whether the credit was availed on services and Capital Goods in certain categories for the refund claims.

CBIC said that in order. address the difficulty faced by trade in providing this data at the time of processing of claim leading to delays and an increase in compliance cost, it was decided in the GST Council. make declaration of classification codes a part of the application itself. The GST Council in the same meeting has also decided. allow bunching of periods across financial years. facilitate claim of refund by exporters. This would apply to applications filed after 31.03.2020. It may also be noted that the due date of all such applications which were due during 20th March 2020 and 29th June 2020 has been extended to 30.06.2020.

CBIC explained that the Circular No. 133 (da.d 31.03.2020) is with regard to the requirement to give HSN/SAC code along Rith the refund application. The GST Law doesn’t allow refund of credit availed on service,s and/or Capital Goods in certain categories. For example, Capital Goods ITC refund is not permissible for re.. of ITC on account of exports and other zero-rated supplies. Further, ITC availed on services and capital goods are not allowed to be refunded in the Inverted Structure Refimd category.

Source: Taxscan

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CBIC issues clarification on GST Refund Issues

CBIC issues clarification on GST Refund Issues

The Board pointed out that certain challenges are being faced by taxpayers in adhering to the compliance requirements under various other provisions of the Central Goods and Service Tax (CGST) Act which also need to be clarified.

The board to ensure uniformity in the implementation of the provisions of the law across the field formations, addressed all the issues raised by the people.

The board empowered under Section 168(1) of the Central Goods and Service Tax (CGST) Act clarified that in case of GST is paid by the supplier on advances received for a future event which got cancelled subsequently and for which invoice is issued before the supply of service, the supplier is required to issue a “credit note” in terms of section 34 of the CGST Act. He shall declare the details of such credit notes in the return for the month during which such credit note has been issued. The tax liability shall be adjusted in the return subject to conditions of section 34 of the CGST Act. There is no need to file a separate refund claim.

However, in cases where there is no output liability against which a credit note can be adjusted, registered persons may proceed to file a claim under “Excess payment of tax, if any” through FORM GST RFD-01.

In case GST is paid by the supplier on advances received for an event which got cancelled subsequently and for which no invoice has been issued in terms of section 31 (2) of the CGST Act, he is required to issue a “refund voucher” in terms of section 31 (3) (e) of the CGST Act read with rule 51 of the CGST Rules.

The taxpayer can apply for a refund of GST paid on such advances by filing FORM GST RFD-01 under the category “Refund of excess payment of tax”.

In such a case where the goods supplied by a supplier are returned by the recipient and where the tax invoice had been issued, the supplier is required to issue a “credit note” in terms of section 34 of the CGST Act. He shall declare the details of such credit notes in the return for the month during which such credit note has been issued. The tax liability shall be adjusted in the return subject to conditions of section 34 of the CGST Act. There is no need to file a separate refund claim in such a case.

However, in cases where there is no output liability against which a credit note can be adjusted, registered persons may proceed to file a claim under “Excess payment of tax, if any” through FORM GST RFD-01.

Notification No. 37/2017-Central Tax, dated 04.10.2017, requires LUT to be furnished for a financial year. However, in terms of notification No. 35/2020 Central Tax dated 03.04.2020, where the requirement under the GST Law for furnishing of any report, document, return, statement or such other record falls during between the period from 20.03.2020 to 29.06.2020, has been extended till 30.06.2020.

Therefore, in terms of Notification No. 35/2020-Central Tax, the time limit for filing of LUT for the year 2020-21 shall stand extended to 30.06.2020 and the taxpayer can continue to make the supply without payment of tax under LUT provided that the FORM GST RFD-11 for 2020-21 is furnished on or before 30.06.2020. Taxpayers may quote the reference no of the LUT for the year 2019-20 in the relevant documents.

As per notification No. 35/2020-Central Tax dated 03.04.2020, where the timeline for any compliance required as per sub-section (3) of section 39 and section 51 of the Central Goods and Services Tax Act, 2017 falls during the period from 20.03.2020 to 29.06.2020, the same has been extended till 30.06.2020. Accordingly, the due date for furnishing of return in FORM GSTR-7 along with deposit of tax deducted for the said period has also been extended till 30.06.2020 and no interest under section 50 shall be leviable if tax deducted is deposited by 30.06.2020.

“Difficulty, if any, in the implementation of the above instructions may please be brought to the notice of the Board,” the circular said.

Read More, Here: http://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular_Refund_137_7_2020.pdf

Source: TaxScan.

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