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New system of filing returns under GST

New system of filing returns under GST

An ordinance issued to amend SGST Act, The State government has decided to amend the State Goods and Services Tax Act to provide a new system of filing returns and availing input tax credit under the GST.

It has been decided to provide an option for taxpayers to obtain multiple registrations for multiple places of business located within the same State. Separate registration would be provided for units in the special economic zones or developers.

Following the relaxations mooted by the GST Council during its recent meeting, the State government promulgated an Ordinance The Telangana Goods and Services Tax (Amendment) Ordinance 2019 on Wednesday. The Ordinance paves the way to insert a provision for temporary suspension of registration while the cancellation of the registration is under progress. It will allow enhancement of the limit of composition levy from ₹ 1 crore to ₹ 1.5 crores. In addition, composition taxpayers would be allowed to supply services (other than restaurant services) for value exceeding 10 % of the turnover in the preceding financial year or ₹ 5 lakh whichever is higher.

In respect of the reverse charge, the government would be empowered to notify classes of registered persons to pay the tax on reverse charge basis in respect of receipt of supplies of certain specified categories of goods or services or both from unregistered suppliers. The Ordinance also paves the way to increase the period of detention or seizure of goods and conveyance in transit from seven days to fourteen days. Further, it caps the pre-deposit amount payable for the filing of appeal at ₹ 25 crores.

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Source: The Hindu

Companies may soon be able to rectify GST returns for Non-IT errors

Companies may soon be able to rectify GST returns for Non-IT errors

Indian businesses may soon be able to amend goods and services tax (GST) return mandated for carrying forward tax credit from the previous regime for non-IT related errors as well. The GST Council has directed a committee for IT grievance redressal to quickly draw up a solution that will give relief to the industry.

Thousands of crores of tax credit claimed by businesses have been denied because of errors in the filing of returns, prompting many to approach judiciary. The move will be a reprieve for businesses that had lost credit due to minor, non-technical errors.

“The council has approved changes in cases where the error is not IT related,” a government official aware of deliberations told ET. It was felt that in some areas where errors are apparent or high courts have issued directions, those should be settled, he said.

A standard operating procedure will be developed by the grievance committee for all the cases where high courts have given a direction, the amount has been wrongly entered or the concerned jurisdictional commissioner has made a recommendation. The forms TRAN1 and TRAN2, specified for claiming past credits, can now be amended to allow for this.

The GST law does not provide for any appeal on issues related to TRAN1 or TRAN2 and thus many taxpayers filed writs in high court and also secured favorable orders holding the view that bona fide errors should be considered by the government. A number of taxpayers had lobbied the government and the GST Council to allow amendments.

GST

“Lot of companies could not claim the entire eligible opening credit under TRAN1 due to inadvertent errors,” said Pratik Jain, national indirect taxes leader, PwC. “This move will help them to claim the additional amount, without going to courts, which some of them have already opted for.”

Businesses looking to claim tax credit of the pre-GST period under GST could file TRAN1. The government had allowed revision of TRAN1 until December 27, 2017. Many businesses missed doing so and ended up losing large transitional credits, even for typographical errors.

The GST Council had allowed a liberal scheme for claiming credit in lieu of taxes paid under the previous regime against GST liabilities. Businesses could claim credit even if they did not have proof of payment under the deemed benefit provision. However, large transition credit claims, which pulled down overall GST collections, made authorities wary, leading to the increased vigil. Any changes to the TRAN1 were thus not allowed on non-IT related issues.

Reports of fraudulent credit claims also led to inquiries into transitional credit claimed by businesses to ascertain if they were genuine.

“Transition credits have been challenging for all businesses and the IT grievance redressal committee should ideally be considering all issues for the entire period instead of a sunset period and clarify that all genuine errors, whether arising from the GSTN portal issues or committed by the taxpayers would be condoned unless there is mala fide intent,” said MS Mani, partner, at Deloitte India.

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Source: Economic Times
60% may escape GST net if turnover threshold doubled

60% may escape GST net if turnover threshold doubled

The move to double the threshold for goods and services tax (GST) registration to an annual turnover of Rs 40 lakh may result in up to 60% of the registered dealers falling out of the net, but will have only a negligible impact on revenue.

At the end of last March, there were over 87 lakh registered dealers with nearly 45 lakh reporting around Rs 20-lakh turnover. Another 10 lakh had a turnover of up to Rs 40 lakh, data accessed by TOI showed. Officials said that the trend is largely similar although the base of registered GST payers is now close to 1.2 crores.

Officials said that not all the registered dealers would opt out as several of the companies that they sell to would want them to be part of the net to avail of credit paid in various stages of production.

The GST Council is scheduled to discuss a plan to increase the registration threshold, which the law committee had proposed should be Rs 40 lakh, although states such as Bihar had suggested that it should be raised to Rs 50 lakh. The move was discussed at the last meeting as part of a plan to ease the compliance burden on small businesses.

Officials are, however, not fully convinced about the need to increase the threshold, especially for smaller states, where the turnover is lower. In fact, before the launch of GST, the hill states had opted for a lower threshold of Rs 10 lakh to ensure that the tax base does not shrink, impacting their revenue. While Bihar has floated a proposal for presumptive tax for those with a turnover of Rs 50-75 lakh, some of the states are seeking a facility for smaller taxpayers, arguing that they are the ones who need it the most.

Besides, officials said, it will do away with the need to increase the threshold, something that was backed by a ministerial panel headed by junior minister for finance Shiv Prakash Shukla on Sunday. The other worry is regarding allowing The other worry is regarding allowing a composition scheme for service sector — where only quarterly tax payments based on turnover will have to be made. Officials fear that this will result in widespread misuse and yield little revenue.


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Source: The Times of India
Simplified GST Return Forms to be Rolled Out from April 1, Says Revenue Secretary

Simplified GST Return Forms to be Rolled Out from April 1, Says Revenue Secretary

The new simplified GST return forms will be rolled out from April 1, 2019, Revenue Secretary Ajay Bhushan Pandey said Tuesday.

He exuded confidence that the government will achieve the budgeted target for Goods and Services Tax (GST) collection and said the revenue department is getting inputs about entities which are evading taxes.

In the first eight months (April-November) of the current fiscal, the government has mopped up over Rs 7.76 lakh crore from GST. The 2018-19 budget had estimated annual GST collection at Rs 13.48 lakh crore, which means a monthly target of Rs 1.12 lakh crore.

“We are short by Rs 4,000 crore this month (November). To arrive at any conclusion we have to have some more months’ data. But we are confident that we will be able to achieve our target. Our monthly target is around Rs 1 lakh crore. This we want to increase to Rs 1.10 lakh crore,” Pandey said. GST collection in November was Rs 97,637 crore.

Speaking to reporters on the sidelines of the Directorate of Revenue Intelligence (DRI) Foundation Day, the secretary said the refund process is being further streamlined to make it completely online and taxpayer friendly.

When asked about the rollout of the simplified return forms, Pandey said, “we are targeting from April 1”.

In July, the Central Board of Indirect Taxes and Customs (CBIC) had put up in public domain draft GST returns forms ‘Sahaj’ and ‘Sugam’ and sought public comments. These forms would replace GSTR-3B (summary sales return form) and GSTR-1 (final sales returns form).

Pandey further said the next meeting of the GST Council, chaired by Union Finance Minister and comprising state counterparts, will be held this month.

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Source: News18
Government extends deadline for GST returns filing for taxpayers affected by cyclones

Government extends deadline for GST returns filing for taxpayers affected by cyclones

The government has extended the date for filing summary GST sales returns for October by a month to December 20 for taxpayers affected by cyclones in Andhra Pradesh and Tamil Nadu.

For taxpayers whose principal place of business is in the district of Srikakulam in Andhra Pradesh, the due date for filing GSTR-3B for the months of September and October has been extended till November 30, 2018.

Those taxpayers whose principal place of business is in the 11 specified districts of Tamil Nadu, the GSTR-3B for the month of October has to be filed by December 20.

“In view of the disturbances caused to daily life by Cyclone Titli in the district of Srikakulam, Andhra Pradesh, and by Cyclone Gaza in eleven districts of Tamil Nadu viz., Cuddalore, Thiruvarur, Puddukottai, Dindigul, Nagapattinam, Theni, Thanjavur, Sivagangai, Tiruchirappalli, Karur and Ramanathapuram, the competent authority has decided to extend the due dates for filing various GST returns,” a finance ministry statement said.
The last date for filing GSTR-3B for a month is the 20th day of the subsequent month.

Taxpayers having an aggregate turnover of more than Rs 1.5 crore and whose principal place of business is in the district of Srikakulam in Andhra Pradesh, final sales return or GSTR-1 for September and October has to filed by November 30.

The government has extended the date for filing summary GST sales returns for October by a month to December 20 for taxpayers affected by cyclones in Andhra Pradesh and Tamil Nadu.

For taxpayers whose principal place of business is in the district of Srikakulam in Andhra Pradesh, the due date for filing GSTR-3B for the months of September and October has been extended till November 30, 2018.

Those taxpayers whose principal place of business is in the 11 specified districts of Tamil Nadu, the GSTR-3B for the month of October has to be filed by December 20.

“In view of the disturbances caused to daily life by Cyclone Titli in the district of Srikakulam, Andhra Pradesh, and by Cyclone Gaza in eleven districts of Tamil Nadu viz., Cuddalore, Thiruvarur, Puddukottai, Dindigul, Nagapattinam, Theni, Thanjavur, Sivagangai, Tiruchirappalli, Karur and Ramanathapuram, the competent authority has decided to extend the due dates for filing various GST returns,” a finance ministry statement said.
The last date for filing GSTR-3B for a month is the 20th day of the subsequent month.

Taxpayers having an aggregate turnover of more than Rs 1.5 crore and whose principal place of business is in the district of Srikakulam in Andhra Pradesh, final sales return or GSTR-1 for September and October has to filed by November 30.

Taxpayers having an aggregate turnover of more than Rs 1.5 crore and whose principal place of business is in the 11 specified districts of Tamil Nadu, they can file GSTR-1 for October by October 20, 2018.

Taxpayers having aggregate turnover of up to Rs 1.5 crore and whose principal place of business is in the district of Srikakulam in Andhra Pradesh, GSTR-1 has to be filed by November 30.


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Source: Zee Business
Last date for filing GSTR-1 for July 2017 to Sep 2018 extended till Oct 31

Last date for filing GSTR-1 for July 2017 to Sep 2018 extended till Oct 31

The Finance Ministry Monday extended the last date due date extend GSTR-1for filing final sales return GSTR-1 for July 2017 to September 2018 period till October 31and also waived the late fee for the delayed filing of returns.

It said that the number of taxpayers who have filed summary sales return GSTR-3B is substantially higher than the number of taxpayers who furnished GSTR-1.

“In order to encourage taxpayers to furnish Form GSTR-1, a one-time scheme to waive late fee payable for delayed furnishing of GSTR-1 for the period from July 2017 to September 2018 till October 31, 2018, has been launched,” the ministry said.

Under the Goods and Services Tax (GST), businesses with a turnover of over Rs 1.5 crore has to file final sales return or GSTR-1 by the 11th of next month. Accordingly, GSTR-1 for the month of September 2018, was required to be filed by October 11, 2018. This date has now been extended to October 31.

For taxpayers having aggregate turnover up to Rs 1.5 crore, the due date for furnishing GSTR-1 for the quarters from July 2017 to September 2018, too has been extended till October 31, 2018.

Businesses with a turnover of up to Rs 1.5 crore can file returns quarterly with returns for one quarter needed to be filed by the 31st day of next month.

“For registered persons having aggregate turnover up to Rs 1.5 crores in Kerala, or whose principal place of business is in Kodagu (Karnataka) and Mahe (Puducherry), the due date for furnishing GSTR-1 for the quarter July 2018 to September 2018 would continue to remain as November 15, 2018,” the ministry said.

Also Read: FinMin simplifies GST refund claim process for businesses

It further said that those taxpayers who will now be migrating to GST the last date for furnishing the details of outward supplies of goods or services or both in GSTR-1 and for filing the return in GSTR-3B for the months of July 2017 to November 2018 has been extended till December 31, 2018.

“…. the registered person shall not be entitled to take input tax credit in respect of any invoice after the due date of furnishing of the return for the month of September following the end of financial year to which such invoice pertains; or furnishing of the relevant annual return, whichever is earlier. The taxpayers are thus, advised to furnish their returns on time to ensure that input tax credit does not become time barred,” the ministry added.

AMRG & Associates Partner Rajat Mohan said, “This extension would entitle taxpayers to enjoy an additional window to correct their errors in tax filings before the tax credit for the recipients become time-barred for the financial year 2017-2018. Taxpayers should take this additional time to reconcile their books with customers before filing GSTR -1 for the month of September 2018”.

Goods and Services Tax (GST), which subsumes 17 local taxes, was rolled out on July 1, 2017.


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Source: Economictimes
GST Return Filing Process Is Set To Get A Makeover

GST Return Filing Process Is Set To Get A Makeover

In the first year of the implementation of the Goods and Services Tax, one of the key issues that affected taxpayers and had kept the GST Council undecided was the return filing formats and process. Simplified GST ReturnsAfter much deliberation, the Council had approved the return filing framework last month and the formats were released for stakeholder consultation. The government has called the new process ‘sahaj’ and ‘sugam’, meaning easy and simple.

Chirag Mehta, the member of the Bombay Chartered Accountants’ Society, explained the proposed return filing requirements on BloombergQuint’s weekly law and policy show, The Fineprint.

Highlights Of Proposed GST Return Filing Process

  • Taxpayers with a turnover threshold of up to Rs 5 crores can file a quarterly return but the taxes will have to be paid monthly. Forms sugam — for B2B and B2C supplies — and sahaj — for B2B supplies — have been proposed for this category.
  • Taxpayers above this threshold will have to file a monthly return. The due date for the same will be the 20th of the next month.
  • Suppliers can upload invoices anytime during the month and this would be visible to the buyers.
  • Based on the uploaded invoices, buyers will be able to claim input tax credit.
  • Buyers will be able to claim input tax credit for those invoices that are uploaded till the 10th of that month.
  • Taxpayers will be able to file an amendment return twice for any tax period.

Once the new process gets notified, there will be a six-month transition phase during which buyers would be able to avail input tax credit on a self-declaration basis. Even if the supplier hasn’t uploaded all the invoices, buyers will be able to claim credit using ‘ITC for missing invoices’ facility.

The new process will have a unidirectional document flow, Mehta said. This is conceptually different from the earlier process where the seller was supposed to upload all the invoices and the buyer had to upload the purchase details, he said.

“Previously, the supplier would get missing invoices or incorrect invoices as a statement and this ended up being a month-long process,” Mehta said, adding, “Under the proposed scheme, the document flow will be from the supplier to the buyer.”

The buyer’s role is to keep an eye on missing and incorrect invoices and prompting the supplier to rectify them. Effectively, there’s no matching but a continuous monitoring by the buyer.

Chirag Mehta, Member, Bombay Chartered Accountants’ Society

The buyer’s input tax credit statement will be auto-drafted from what the supplier uploads, he said. “Uploading the invoices on a continuous basis and monitoring them to avail credit will throw up operational challenges.”

Source: BloombergQuint
28th GST Council meet on Saturday: Return simplification, law tweaks, setting up of tribunal on table

28th GST Council meet on Saturday: Return simplification, law tweaks, setting up of tribunal on table

The proposed amendments to the goods and services tax (GST)-related laws, simplification of GST returns, the creation of GST appellate tribunal and the revenue position of states will be among the key items slated for discussion in the upcoming 28th GST Council meeting on Saturday. 28th GST Council meet on SaturdayRate cuts and clarification for 40 handicraft items, 32 services and 35 goods including the exemption to marble/stone idols, sanitary napkins, sal leaves will also be discussed, alongside reports of six committees and ministerial panels on issues such as the imposition on cess on sugar and levies on the lottery, officials said.

A rate cut has been recommended from 28 per cent to 18 per cent for lithium-ion batteries, which are used to charge electric vehicles; for water coolers, ice cream machinery along with reduction from 28 per cent to 12 per cent for fuel cell vehicles; for bamboo flooring from 18 per cent to 12 per cent and handloom dari from 12 per cent to 5 per cent, they said.

Though items such as natural gas and aviation turbine fuel (ATF) have not been listed in the meeting agenda, a senior government official said that if time permits, the Council may discuss those items but a decision is unlikely given the revenue implications for states. “There are many listed items for the meeting, so only if time permits, natural gas/ATF could be discussed. The inclusion of natural gas is not contentious, but ATF may be a tricky item given that it contributes majorly to revenues of Delhi and Mumbai,” the official said.

The official further said that since most airlines fuel their planes in Delhi or Mumbai, the inclusion of ATF along with allowing input tax credit will result in less revenue for these two regions. “Smaller states do not earn significantly from ATF, whereas for places like Delhi and Mumbai, it is a major contributor. Allowing credit would result in the revenue stream from ATF getting split among all states instead of the current concentration in these two places. Mumbai may even recover from alternate revenue sources but for Delhi, it could mean a significant loss of revenue,” he said.

Finance Minister Piyush Goyal will chair the meeting of the Goods and Services Tax Council, his first time since taking charge of this portfolio. Officials said that it was considered that Union Minister Arun Jaitley may attend the meeting as a special invitee through video conferencing but it has been decided against since GST Council rules do not specify such exception and it may leave scope for the Council’s decisions getting challenged in courts later.

Apart from the rate considerations, the Council will also discuss reports of six committees and ministerial panels which include those on the lottery, Integrated GST (IGST), on creating an ecosystem for seamless road transport connectivity, digital payments, an imposition of sugar cess and reverse charge mechanism.

Given the high amount of unutilized IGST, the panel for it has recommended a change in cross utilization pattern to allow taxpayers to first use IGST credit for payment of CGST/SGST before using CGST/SGST credit. Unsettled IGST stands at about Rs 1.16 lakh crore, with two provisional settlements of Rs 35,000 crore in February and Rs 50,000 crore in June this year.

The panel on seamless connectivity has suggested doing away with check posts for pollution control certificate, payment of road tax along with the mandated recording of every instance of inspection along with recommending linking the VAHAN database with e-way bill system. The GoM on digital payments has suggested keeping the incentives on hold for now, while the panel on sugar cess has proposed a 1 per cent agricultural cess on certain commodities.

Finer details of the proposed returns simplification is also likely to be discussed. The new model proposes uploading of invoices by the supplier before 10th of next month that shall be subsequently posted in the viewing facility of the buyer by 12th of next month, who will then lock those invoices. The new returns filing model proposes single monthly return for all taxpayers except composition dealers, TDS/TCS and staggered return filing dates based on the turnover of the registered person.

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Source: Indian Express
GST collection in May falls to Rs 94,016 crore

GST collection in May falls to Rs 94,016 crore

The GST collection in the month of May fell from Rs 1.03 lakh crore recorded in April to Rs 94,016 crore. However, the May GST collection was higher than the monthly average of Rs 89,885 crore of the fiscal year 2017-18. GST Collection: Govt collects Rs 65,000 cr GSTAnalysts say that the lower collection for May as compared with previous month was expected as in the last month of the financial year (March), people try to pay arrears, leading to higher revenue collection. Moreover, the trend also suggests that in April, the tax collection is usually lower than other months

“For the month of April, the collection of Rs 94,016 crore is a good collection. But now the collection should really go up to Rs 1 lakh crore for the government to be in a good spot,” Pratik Jain of PwC told CNBC-TV18. The government’s target for FY18-19 puts an average collection of Rs 1.10 lakh crore. Pratik Jain said that the GST collection in May was a 5% jump from monthly average, however, it seemed that the roll-out of E-way bill did not bring quite the result the government was expecting.

Inter-state E-way bill was launched from April 1, while intra-state full launch will be from July 3. E-way bill was launched with the aim to curb tax evasion on the movement of goods in the country. Of the total collection, CGST is Rs 15,866crore, SGST is Rs 21,691 crore, IGST is Rs 49,120 crore, the Finance Ministry said.

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Source: Live Mint
Tax department sends notices to GST non-filers

Tax department sends notices to GST non-filers

After months of large scale non-compliance in filing of the summary return (GSTR-3B) by taxpayers under Goods and Services Tax (GST), the tax department has started sending reminder notices toTax department sends notices to GST non-filers such assessees. Some of the notices issued for the first three months of this year has given taxpayers three days to comply, or else the department would assess the liability based on information available with them.

The notices are in line with government’s stated approach of employing enforcement actions gradually as the system stabilizes. The tax department has also asked assessees to explain the mismatch of details filed in GSTR-3B and GSTR-1 (outward supply). Besides, central board of indirect taxes and customs (CBIC) has launched a year-long exercise to verify transitional credit claims made by top 50,000 assessees.

“You are requested to furnish the said return with three days, failing which the tax liability will be assessed under GST Act, 2017, based on the relevant material available with this office,” one of the electronically generated notices reviewed by FE said. It added that no further communication will be issued for assessing the liability and an assessee will be liable to pay interest and penalty along with the applicable tax. “If returns aren’t filed even after notices, the department can undertake tax liability assessment on the basis of sales made to a particular assessee. We could also use the past tax record and other data points to arrive at the liability,” a tax official said. While the GSTR-3B compliance has steadily improved since July last year, it’s still not satisfactory to the tax department. Only around 55% eligible taxpayers were filing monthly returns by the deadline during July-October.

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Source: Financial Express