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Fake bill racket: GST consultant behind the scam

Fake bill racket: GST consultant behind the scam

As officials make new inroads into the massive fake invoice scam, said to be one of the largest in the country, it is now learnt that a tax consultant, Suhail, was behind the racket. Suhail,  a BCom graduate who was a tax consultant for about a decade, allegedly had knowledge on the intricacies of the new taxation system.

Another major player in the case of generating fake invoices to the tune of Rs 1,200 cr is said to be Basha, a scrap dealer. He was among the channels through which the fake bill racket was executed. Officials investigating the case suspect that many other firms might have used this channel to defraud the government by not paying GST, according to investigating officials.

Another accused in the case, identified as Hafizur, was working with Suhail at his tax consultancy.
While the accused have allegedly been running the scam for more than ten months, sources in Bengaluru South GST Commissionerate told The New Indian Express that the first red flag was raised around two months ago. An officer of the department had found some discrepancies in the GST returns filed by one of the fake firms floated

“After it was detected, it was a case of identifying other companies which were involved in this racket. During the ten months, fake invoices were generated using multiple fake companies to generate bills without the actual movement of goods.

The level of routing the invoices and the complexity involved to execute it is staggering,” said sources.
By running the racket, both Suhail and Basha have allegedly made crores in commission for the fake bills.  The extent of the loot by the culprits is currently being assessed.

The accused in the scam reportedly made use of a window set by the Centre for registering new companies under the new GST regime.

Since hundreds of companies had to be registered during the same period, Suhail and others used it to register multiple fake companies and get GST numbers for the same. These companies, formed using fake addresses in various localities of the city, were then used to generate fake invoices for other firms and defraud the government.

The Department is currently tracking other firms which might be part of the racket, sources added.


XaTTaX – World Class Automated eSolution for Return filing and e-Waybill

Source: Indian Express

Over 2 lakh assessees who migrated from VAT regime opt out of GST net

Over 2 lakh assessees who migrated from VAT regime opt out of GST net

The turnover of these assessees is below the prescribed threshold of 20 lakh: official

Over 2 lakh assessees have opted out of the Goods and Services Tax (GST) registration as their turnover is below the prescribed threshold. This will benefit both the taxpayers and the GST Network, the IT backbone of the new indirect tax regime.

These are assessees who migrated from the VAT (Value-Added Tax) regime to the GST regime. A senior Finance Ministry official told BusinessLine: “Turnover of these assessees are below the threshold of 20 lakh (10 lakh in some States), which means they are not required to continue under the new regime, though they think otherwise.” During the pre-GST regime, States had different slabs for registration under VAT/ST, which was as low as 1 lakh and could go up to 10 lakh: the thresholds for Service Tax and Central Excise were 10 lakh and 1.5 crore respectively.

With the universal threshold, it was obvious that some old assessees will opt out. This meant if the turnover of the entity is less than the GST threshold and the assessees were not willing to go for voluntary registration they had the option to get the provisional registration cancelled and move out of the GST net.

However, many assessees failed to complete the process, and so they continued to be a part of the GST-assessee base.

Originally, 88.61 lakh applied for migration and got the provisional certificate. Once all the formalities were completed, the provisional certificate was confirmed. The official said over 24.5 lakh did not complete the formalities and out of these 2.34 have opted for de-registration.

This meant there are over 64 lakh migrated taxpayers now. At present, GST has over 1.16 crore assessees which are a combination of migrated and new assessees.

Tax base

Another Finance Ministry official felt that with de-registration, the tax base will be effective. This kind of a tax base will serve two purposes — it will lighten the burden on the GSTN and will give a real picture of the indirect tax regime.

Tanushree Roy, Director – GST at Nangia Advisors LLP, said with a high number of assessees opting out of the GST registration it would enable them to focus more on business operations simultaneously reducing the costs and burden of undertaking the GST compliances.

This would also help the GSTN in efficient management of the portal and reduction in cost for maintenance of servers.

R Muralidharan, Senior Director at Deloitte India, said de-registration of over 2 lakh assessees will marginally reduce the traffic on GSTN as this is merely 3 per cent of the total return filers. Most of these assesses are likely to be below the threshold limit for registration.


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Source: The Hindu BusinessLine
GST paid under a Wrong Head by Mistake can be Transferred to the Right Head: Kerala HC

GST paid under a Wrong Head by Mistake can be Transferred to the Right Head: Kerala HC

The Kerala High Court has directed the GST department to transfer the tax amount paid by the petitioner under a wrong head instead of another by mistake.

In the instant case, the goods transported by the petitioner was detained by the department and imposed tax and penalty on the same. To get the goods released, the petitioner agreed to pay the whole amount. However, the amount was paid under the head ‘SGST’ instead of ‘IGST.’

Before the High Court, the petitioners relied on Section 77 of the GST Act and also Rule 4(1) of the GST Refund Rules, 2017.

Section 77 provides for the refund of the tax paid mistakenly under one head instead of another. But Rule 4 speaks of adjustment. Where the amount of refund is completely adjusted against any outstanding demand under the Act, an order giving details of the adjustment is to be issued in Part A of FORM GST RFD-07. The petitioner’s counsel lays stress on this process of adjustment and asserts that the amount remitted under one head can be adjusted under another head, for the demand can be any amount under the Act.

Allowing the petition, Justice Dama Seshadri Naidu held that “Under these circumstances, I find no difficulty for the respondent officials to allow the petitioner’s request and get the amount transferred from the head ‘SGST’ to ‘IGST’. It may, as the Government Pleader has contended, take some time, but it is inequitable for the authorities to let the petitioner suffer on that count.”

“So I hold that the 2nd respondent will release the goods forthwith along with the vehicle and, then, ensure that the tax and penalty already stood remitted under the ‘SGST’ is transferred to the head ‘IGST’,” the Court said.


XaTTaX – World Class Automated eSolution for Return filing and e-Waybill

Source: Tax Scan
Changes in E-way Bill from 16th November 2018

Changes in E-way Bill from 16th November 2018

The National Informatics Centre E-way Bill Project has published a list of improvements in the E-way Bill under the Goods and Services Tax ( GST ) regime. The changes would be applicable with effect from 16th November 2018. As per the document issued by the NIC, the following changes will be made in the e-way bills.

Checking of duplicate generation of e-way bills based on same invoice number:

The e-way bill system is enabled in a way that if the consignor has generated one e-way bill on the particular invoice, then he or consignee or transporter will not be allowed to generate one more e-way bill on the same invoice number. If the transporter or consignee has generated one e-way bill on the consignor’s invoice, then if any other party (consignor, transporter or consignee) tries to generate the e-way bill, the system will alert that there is already one e-way bill for that invoice, and further it allows him to continue, if he wants.

CKD/SKD/Lots for movement of Export/Import consignment:

CKD/SKD/Lots supply type can now be used for movement of the big consignment in batches, during Import & Export also. Delivery challan and tax invoice need to accompany goods as prescribed in Rule 55 (5) of CGST Rules, 2017.

Shipping address in case of export supply type:

For Export supply type, the ‘Bill To’ Party will be URP or GSTIN of SEZ Unit with state as ‘Other Country’ and shipping address and PIN code can be given as the location (airport/shipping yard/border check post/ address of SEZ), from where the consignment is moving out from the country.

Dispatching address in case of import supply type :

For Import supply, the ‘Bill From’ Party will be URP or GSTIN of SEZ Unit with state as ‘Other Country’ and dispatching address and PIN code can be given as the location (airport/shipping yard/border check post/ address of SEZ), from where the consignment is entering the country. Enhancement in ‘Bill To – Ship To’transactions: EWB generation is now categorized to four types now Regular and Bill to Ship to, Bill from Dispatch from & combination of both.

Changes in Bulk Generation Tool:

Facility of EWB generation through the Bulk Generation Tool has been enhanced.


XaTTaX – World Class Automated eSolution for Return filing and e-Waybill

 

Source: Tax Scan
GST-based calculation confusing? Here are the new Casio calculators for India

GST-based calculation confusing? Here are the new Casio calculators for India

The Narendra Modi government had implemented the Goods and Services Tax (GST) in July 2017. Even after a year of implementation of the new tax regime, many are confused on how it works.

Japanese multinational consumer electronics firm Casio has surveyed different Indian markets to understand the nuances of the invoicing process over the past year and come up with an easy solution. It has introduced two new calculators which are billed as the world’s first GST calculator.

 Christened MJ-120 GST and MJ-12GST, the new calculators have been designed for the Indian market and priced at Rs 395 and Rs 475, respectively. Casio claims the new calculators are ideal for anyone dealing with GST-based invoicing. Here are the features.In-built GST tabs – All the five GST slabs (0%, 5%, 12%, 18% and 28%) are in-built in MJ-120GST and MJ-12GST. There are separate buttons for the GST slabs which are expected to reduce the number of clicks, hence reducing the time required to generate an invoice. In addition, the tax slabs are also changeable as per the industry needs.

Gross value (net value + tax) – Net value and tax paid under different GST slabs stay stored in the GST+0, GST+1, GST+2, GST+3 and GST +4 buttons and the overall value in the five slabs stays stored in the GST GT button. This eschews recalculation of the values repeatedly.

Tax-mode application – The taxpayers and traders in the different markets calculate the base value of products by deducting tax from MRP. Hence, a tax feature for all the five tax slabs to calculate the base value from MRP is also added in the new calculators. Tax-mode has its application in calculating the base value and net profit earned.

Multi-industry use – The functionality of the GST+/tax- key makes MJ-120GST transcend industries as it can calculate values in multiple formats that include the gross value from the base value in GST+ mode and base value from the gross value in Tax- mode. In addition, the GST GT key is for calculating the gross value of a GST-based calculation and can it can also be used for calculating the grand total of a calculation.

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

Source: International Business Times
GST compensation paid to states declines to Rs 11,900 cr in Aug-Sept

GST compensation paid to states declines to Rs 11,900 cr in Aug-Sept

 GST compensation paid to states by the Centre has declined to over Rs 11,900 crore during August-September, an official said. The bi-monthly GST compensation paid during the June-July period was Rs 14,930 crore, nearly four-fold jump from Rs 3,899 crore paid in April and May.

“Over Rs, 11,900 crores has been released to the states from GST compensation fund during August-September after the regular and ad-hoc settlement of IGST fund,” an official told PTI. The government collected a record Rs 1,00,710 crore from Goods and Services Tax (GST) in the month of October.

 The returns filed and taxes collected in October reflect purchase and sale activities of September.

The government has settled Rs 15,107 crore to states GST from Integrated GST (IGST) as the regular settlement. Further, Rs 15,000 crore has been settled with the states from the balance IGST available with the Centre on a provisional basis at the end of October.

Total revenue earned by the state governments after the regular and provisional settlement was Rs 52,934 crore in October.

Ten states which are facing maximum revenue shortfall during April-August are Puducherry (42 per cent), Punjab and Himachal Pradesh (36 per cent each), Uttarakhand (35 per cent), Jammu and Kashmir (28 per cent), Chhattisgarh (26 per cent), Goa (25 per cent), Odisha (24 per cent), Karnataka and Bihar (20 per cent).

The states faced an average 16 per cent shortfall in GST mop-up in the first year of implementation (July 2017-March 2018), which has come down to 13 per cent during April-August of the current fiscal.

Finance Secretary Hasmukh Adhia has already held discussions with tax officials in six states — Punjab, Himachal Pradesh, Puducherry, Jammu & Kashmir, Bihar and Uttarakhand– to shore up revenues.

While only six states — Mizoram, Arunachal, Manipur, Nagaland, Sikkim and Andhra Pradesh — are facing revenue surplus in the current fiscal, 25 states are staring at a revenue shortfall and have to be compensated by the Centre.

In 2017-18, the Centre had released Rs 41,147 crore to the states as GST compensation to ensure that the revenue of the states is protected at the level of 14 per cent over the base year tax collection in 2015-16.


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Source: Times ET now news.
GSTN enables facility to upload Refund on account of Export of Services, with Statement

GSTN enables facility to upload Refund on account of Export of Services, with Statement

The Goods and Services Tax Network ( GSTN ) has enabled a new functionality to upload refund on account of Export of Services, with the statement.

With this, the taxpayers can now file an online application to claim the refund on account of assessment/ provisional assessment, appeal or any other order on the GST Portal.

GSTN is a Section 8 (under new companies Act, not for profit companies are governed under section 8), non-Government, private limited company. It was incorporated on March 28, 2013.


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Source:Tax Scan
GST: CBIC to Monitor Grievances of MSMEs on a Daily basis

GST: CBIC to Monitor Grievances of MSMEs on a Daily basis

The GST grievances of the Micro, Small and Medium Enterprises ( MSMEs) will be monitored by the Central Board of Indirect Taxes and Customs (CBIC) as part of efforts to resolve issues being faced by small businesses in the new indirect tax regime.

The move comes at a time when the government has initiated a major support and outreach programme for MSMEs to ensure growth and expansion of the sector.

The Government has already set up GST help desks in all the 80 districts where a 100-day support and outreach programme for the micro, small and medium enterprises have been launched by the government on November 2.

The CBIC has now decided to set up a Feedback and Action Room (FAR) under the Directorate General of GST to record and process all grievances raised by MSMEs.

The GST help desks will have nodal officers for trade facilitation who would guide the small businesses on their queries surrounding the GST.

These nodal officers would report all the grievances on a real-time basis to the FAR, which would then provide the solution.

“The FAR would comprise of officers from Delhi and NCR. They would compile a master record of all grievances at various stages of resolution, and send a summary report to the Board on daily basis,” an official told PTI.

The Prime Minister, on November 2, had launched a slew of measures for the MSME sector, including faster sanction of loans and easier compliance with environmental rules.

Also, GST-registered MSMEs will get a 2 per cent subvention or subsidy on a new loan or incremental loan of up to Rs 1 crore.

The MSME sector constitutes a vast network of over 63 million units and employs 111 million people, contributing around 30 per cent to the GDP. It accounts for about 45 per cent of manufacturing output and around 40 per cent to total exports.

The GST Council, chaired by the Finance Minister Arun Jaitley and comprising state ministers as members, had in July allowed companies with a turnover of up to Rs 5 crore to file GST returns quarterly, up from the Rs 1.5 crore threshold fixed earlier. The move benefited about 93 per cent of the GST registered taxpayers.


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Source:Tax Scan
GST Practitioners National Action Committee appeals for Due Date Extension for Returns

GST Practitioners National Action Committee appeals for Due Date Extension for Returns

The National Action Committee of Goods and Services Tax ( GST ) Practitioners asked the Government to extend the due date to March 31, 2019, for filing GST Returns as it seems difficult to achieve the deadline of 31st December 2018.

The practitioner’s body said that to ensure quality work and proper, correct compliance, the extension is needed.

The committee further said that compliance under GST law should be made simple and transparent which would ease compliances, cut or control the cost of compliance and create a sense of ease of doing business.

There were teething problems which the central and state governments were supposed to be sorted out, the committee pointed out.

It said that after sixteen months of GST rollout, it is necessary that the government and the public at large get an idea of the problems faced by key stakeholders- taxpayers and tax practitioners.

They further complained about the issues on the slow server of the GST Network (GSTN), refunds to be made in 20 days, the filing of returns, deadlines for filing returns should not overlap, annual returns is to be filed within nine months after completion of any financial year.

The committee suggested that there should be clarity in the filing of returns, utilities should be available well in advance, payment through credit and debit cards as well as the real-time gross settlement (RTGS) should be seamless and secrecy of data and privacy of businesses should be ensured.


XaTTaX – World Class Automated eSolution for Return filing and e-Waybill

Source: Tax Scan
GST Made India a Transparent and Integrated Market With Greater Ease Of Doing Business

GST Made India a Transparent and Integrated Market With Greater Ease Of Doing Business

The Vice President of India, M. Venkaiah Naidu has said that India’s stability, consistency, transparency and reform agenda coupled with a safe and structured financial system makes India one of the most attractive FDI destinations. He was addressing the gathering after inaugurating the Global Expo Botswana 2018, in Gaborone, Botswana yesterday.

This year’s Expo holds special significance to India this year as 25 Indian companies are taking part in the event making it the largest participation from a single country. The Vice President said that the annual Business to Business Expo creates an opportunity for the world community to engage with Africa and deepen the feeling of commonality and sense of purpose among participating nations.

Emphasizing that India’s engagement with Africa has gathered an unprecedented pace over the last four years, the Vice President reiterated that India supports the industry to invest in Africa and keeps its markets open for investments. Informing the global business community about India’s economic progress, the Vice President highlighted the transformative changes taking place in India.

The Vice President said that India’s steady growth rate of over 7% presents multiple opportunities for Botswana entrepreneurs in various sectors and invited them to seize current and emerging business opportunities. He further said that transformative taxation reforms such as the Goods and Services Tax (GST) made India a transparent and an integrated market with greater ease of doing business.

India is moving rapidly on the path of economic transformation with an annual growth rate of over 7%. It presents multiple opportunities for Botswana entrepreneurs in various sectors. There is an encouraging swing in stock market indices, foreign exchange reserves, and public investments in infrastructure and welfare measures. As per World Bank’s Ease of Business Index, India has climbed 42 places.

Transformative taxation reforms like the introduction of Goods and Services Tax (GST) has made India a transparent and an integrated market with greater ease of doing business. Aiming to make India the 3rd largest consumer market in the world, we are moving forward to build a five trillion dollar economy by 2025. As you have seen, our multi-party democracy has demonstrated stability coupled with a safe and structured financial system which makes India one of the most attractive FDI destinations, he noted further.


XaTTaX – World Class Automated eSolution for Return filing and e-Waybill

Source: Business-Standard.