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GST rate cut may make metro rail project cheaper

GST rate cut may make metro rail project cheaper

In a move that may lead to a considerable decline in Mumbai Metro project cost, the state government GST rate cut may make metro rail project cheaperhas asked for a rebate from the contractors handling the project following a change in tax rate under the goods and services tax (GST).

Under the new indirect tax regime, the GST on construction cost has been reduced to 12% from 18% earlier.

Recently, during a meeting held between Mumbai Metropolitan Region Development Authority (MMRDA) — Government of Maharashtra body that is responsible for the infrastructure development of the Mumbai Metropolitan Region — and companies executing metro rail projects, one of the issues being discussed was that the government agency had asked for a rebate in construction cost as the GST applicable has now been reduced from 18% to 12%.

A good 6% fall in tax liability will thereby make the metro rail project cost cheaper.

However, during the meeting the contractors told the officials that they will not be able to extend the entire 6% of the difference, sources from MMRDA said.

In order to find “an amicable” solution or clarification on the subject, a meeting was arranged with GST Commissioner, Maharashtra.

A few weeks back, a meeting was held at GST Bhavan between MMRDA officials, the GST Commissioner and construction firm representatives.

During the meeting, the GST Commissioner explained to the contractors that the difference of rebate has to be extended to the government agency.

“However, the difference has to be arrived at after, either, the internal auditors or independent auditors scrutinise the bills submitted by the private parties on work undertaken for the project. It is only after going through the input tax credit, under what (composite or any other) scheme of GST the construction firm is paying taxes, etc., the actual rebate can be arrived at,” said a source after referring to GST Commissioner’s communication.

Usually the infrastructure project costs tend to rise during the completion stage, but in this case despite a spike in cost, a certain percentage will get absorbed if the rebate is offered.

In August 2016, work was awarded for 18.60 km long Dahisar East-DN Nagar Metro 2A for which the estimated project cost on completion was Rs 6,410 crore.

Similarly, for the 16.50 km long Dahisar East-Andheri East Metro 7 route, the estimated completion cost was Rs 6,208 crore.

Seeking Rebate

In a meeting, the contractors said they will not be able to extend the entire 6% rebate

Under the new indirect tax regime, the goods and services tax on construction cost has been reduced to 12% from 18% earlier

Source :  DNA
Be Ready! Only Two Days Left For Filing Three GSTR Forms

Be Ready! Only Two Days Left For Filing Three GSTR Forms

There are only 2 days left for the taxpayers who have to file Three different return filings GSTRGSTR Forms forms before the upcoming due date i.e. 20th May 2018. The business units have to file GSTR 3B while the NRIs have to file GSTR-5 and GSTR- 5A and for this, they have only 2 days left at the time of writing this piece of information.

It is warned that if in case taxpayers have not filed the return of GSTR 3B of the may month they are suggested to file it as soon as possible. In the recent 27th GST council meeting, it was decided that the GSTR 3B will be continued till a single return form is not finalized for the taxpayers.

Due Date of GSTR 3B April 2018

All the traders and business units are required to file GSTR 3B for the month of April till 20th May 2018 in which they have to include all the details of sale and purchase. Also, the transactions done with the traders having a turnover less than 20 lakhs is to be included in the reverse charge for.

Also, the taxpayers will have to include details of input tax credit, interstate dealings and transactions with unregistered dealers. Also, they have to include the details of business done with the composition scheme dealers and the sales of tax-free products.

20th May – Due Date of GSTR 5 For NRI

All the non-resident Indian (NRI) dealers are required to file the GSTR 5. All the NRIs who comes to India for trade purpose and earns by trading and business dealing in India have to file GSTR 5. The NRI dealers have to provide all the details of sale and purchase in the GSTR 5 form.

20th May – Due Date of GSTR 5A For NRI Service Provider

Apart from NRI dealers, all the NRI service providers will have to file GSTR 5A in which they have to include all the details of sale and purchase.

31st May – Due Date of GSTR 1

All those traders having turnover more than 1.5 crores are required to file April month GSTR 1 by 31st May. GSTR 1 is a monthly return filed by taxpayers having turnover more than 1.5 crores in which they have to give all the details of sale and purchase.

Free banking services out of GST net: FinMin

Free banking services out of GST net: FinMin

Free banking services like chequebook issuance and ATM free banking services out of gst net finmin officialwithdrawals is likely to remain out of the ambit of the GST, a senior finance ministry official said.

The Department of Financial Services had approached its revenue counterpart to clear the confusion over the levy of Goods and Services Tax (GST) on some of the free services offered by banks to their customers.

“The revenue department is likely to tell the financial services department that GST will not be levied on free banking services,” an official told PTI.

Amid banks getting service tax notice for non-payment of the levy on free services, the Department of Financial Services (DFS) had approached the revenue department seeking clarity on whether such services would attract GST.

The DFS was of the opinion that services such as the issuance of chequebooks, account statements and ATM withdrawals are free up to a certain limit and not commercial activities which cannot be brought under the ambit of GST.

Read More: Expedite GST practitioners’ registration: CBIC chief

The Indian Banks Association (IBA) on behalf of the management of banks too had made representation to the tax authorities.

The service tax notice for period 2012-2017 was served as tax officials were of the view that banks were not offering ‘free services’ but actually charging customers by asking them to maintain a minimum account balance.

Every bank offers a different slab of minimum balance to customers, based on which some free services are provided.

GST was rolled out from July 1, 2017, prior to which central excise and service tax was levied on goods and services.

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Simple Guide of GSTR 9 with Easy Online Return Filing Process, Eligibility & Rules

Simple Guide of GSTR 9 with Easy Online Return Filing Process, Eligibility & Rules

The GSTR 9 is an annual return form to be filed by the taxpayer once a year with all the consolidated details of SGST, CGST and IGST paid during the year. Here, XaTTaX briefs all the details, rules and regulations for GSTR 9 online filing along with step-by-step compliance procedure.

Get to know all the related information of GSTR 9 annual filing procedure, format, eligibility, and rules along with proper images (screenshots) and filing guidance at each and every step.

For any query and question relevant to GST, ask our experts and professional CAs which will resolve all your doubts as soon as possible. Here we are going to discuss the complete GSTR 9 form under the goods and services tax.

What is the Meaning of Filing GSTR-9?

GSTR 9 is meant for a return form which is required to be filed once in a year by the regular taxpayers concerning GST regime. It is further categorized in IGST, SGST, and CGST. Under the heads, the taxpayers fill information about supplies made and received in a year separately. It is a consolidated form which comprises the details mentioned in the monthly/quarterly returns in a year.

Who is Required to File GSTR-9?

All the registered taxpayers are required to file GSTR 9 under GST regime. However, following persons are not required to file GSTR 9

  • Casual Taxable Person
  • Input service distributors
  • Non-resident taxable persons
  • Persons paying TDS under section 51 of GST Act.

What are Different Sorts of Annual GST Returns under GSTR 9?

Different kinds of annual return under GST:

  • GSTR 9: The regular taxpayer who files GSTR 1, GSTR 2, and GSTR 3 are required to file the GSTR-9.
  • GSTR 9A: The composition scheme holder under GST is required to furnish GSTR 9A.
  • GSTR 9B: All the e-commerce operators who have filed GSTR 8 are required to file GSTR 9B in a financial year.
  • GSTR 9C: The taxpayers whose annual turnover cross Rs. 2 crores are required to file GSTR 9C in a financial year. All those taxpayers are needed to obtain the accounts to be audited and furnish a copy of reconciliation statement of tax already paid, audited annual accounts and tax payable according to the audited accounts with GSTR 9C.

What is the Due Date for Filing GSTR 9?

GSTR-9 is required to be furnished on or before 31st December in respective financial year bracket. For example, if you want to file GSTR 9 in the this FY 2017-18, then the last date to file the return form will be 31st December 2018.

Penalty Norms When you Miss the Due Date of GSTR 9 Filing

The late fee of one hundred rupees for every day during which such failure continues will be levied subject to a maximum of an amount deliberated at a quarter percent of taxpayer turnover in the respective Union territory or state.

XaTTaX: Free GST Filing Software

Which Kind of Detail is Required to Mention in GSTR-9?

GSTR 9 is divided into 9 sections:

  1. GSTIN: A state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number(GSTIN) is provided to each registered taxpayer. GSTIN is auto-populated when furnishing the return form.
  2. Legal Name: When the registered taxpayer log-in to the common portal, the legal name of the person is auto-populated.
    •  2C. Taxpayer Liable To Statutory Audit: Every registered taxpayer whose composite turnover during a financial year surpasses Rs. 2 crore is required to get his accounts audited as mentioned under sub-section (5) of section 35 and he/she shall file a copy of audited annual accounts and a reconciliation statement, duly validated, in FORM GSTR-9C, electronically using the common portal either through a Facilitation Centre informed by the Commissioner or directly.
  1. Date of statutory Audit: This head takes the date of the statutory audit.
  2. Auditors: The taxpayer is required to mention auditors’ names who have audited the accounts of the entity.
  3. Details of Expenditure: Information about goods and services bought in a financial year is required to mention here mandatorily. These details are required to be mentioned along with the appropriate HSN/ SAC codes and taxable worth of such goods and services. This information is provided in GSTR-2. Further, the relevant information is categorized in following sections:
    • The total value of purchases on which ITC availed (inter-State)
    • The total value of purchases on which ITC availed (intra-State)
    • The total value of purchases on which ITC availed (Imports)
    • Other Purchases on which no ITC availed
    • Sales Return
    • Other Expenditure (Expenditure other than purchases)

Total value of purchases on which ITC availed (inter-State)

  1. Details of income: Details of income accommodates all the information of supplies and sales made in a relevant financial year. This information is also mentioned by the taxpayer in GSTR-1. It is categorized as follow:
    • The total value of supplies on which GST paid (inter-State Supplies): Composite worth of supplies on which IGST is applicable in respect of inter-State Supplies
    • The total value of supplies on which GST Paid (intraState Supplies): Composite worth of supplies on which CGST and SGST are applicable in respect of inter-State supplies.
    • The total value of supplies on which GST Paid (Exports): Composite worth of supplies made under goods and services tax on which IGST is paid in respect of exports.
    • The total value of supplies on which no GST Paid (Exports): It comprises the worth of goods on which no GST is applicable in respect of exports.
    • Value of Other Supplies on which no GST paid: It takes the information of the supplies made under GST on which no GST is paid.
    • Purchase Returns: It includes the information of purchase return done in a financial year.
    • Other Income (Income other than from supplies): Other income made in a financial year which is not mentioned in above points are required to be mentioned here.

Details of all supplies and sales made during the year needs to be provided here. Such details are also mentioned in GSTR 1

  1. Return reconciliation Statement: After filing the details, the system will match with the transactions automatically and will calculate tax liability applicable in respect of the tax paid. The details such as interest, amount of tax difference and penalty are auto-populated by the system. It categorizes the relevant details in following fields:

Return reconciliation Statement

  1. Other amounts

GSTR 9: Other amounts

  1. Profit as Per the Profit and Loss Statement

Profit as Per the Profit and Loss StatementAs soon as particulars are furnished appropriately, the assessee is required to sign digitally either via a digital signature certificate (DSC) or Aadhaar based signature verification to authenticate the return details.

Aadhaar based signature

India pitches GST to make a strong case for the jump in World Bank’s Doing Business rankings

India pitches GST to make a strong case for the jump in World Bank’s Doing Business rankings

The government is pitching the new indirect tax system—Goods and Services Tax (GST)—as one of the vehicles for raising India’s rank in the World Bank’s Doing Business Report, 2019, which is expected to be released by the end of the year.

India leapfrogged into the 100th rank in the World Bank’s Ease of Doing Business rankings for 2016, jumping 30 notches from a year ago, in an endorsement of the string of reforms implemented by the Narendra Modi government.

With the Modi government inching closer to the 2019 Lok Sabha election, all eyes will be on this annual report, which ranks countries on business-friendliness, procedural ease, regulatory architecture and absence of bureaucratic red tape.

India had set a target of leapfrogging to a rank of 90 in 2019 (for the year 2017-18) and 30 in the Doing Business survey by 2030.

GST: World Bank’s Doing Business rankings
A higher rank indicates that India has improved its business regulations in absolute terms—signaling that the country is continuing its steady shift towards best practices in business rules and regulation. A lower rank typically implies that there is a gap between policies and their implementation.

While the report is generally released in October in a typical year, April is a crucial month when contributors (who conduct these surveys) begin their survey for the making of the World Bank’s Doing Business report.

India’s rank in ‘paying taxes’, was 119 last year, a substantial improvement from 172nd rank a year ago. The government expects rankings to jump further this year after factoring in the benefits that poured in with GST, which kicked in from July 1, 2017.

GST, billed as India’s most ambitious reforms move, has consolidated a patchwork of 17 local and central duties into a single levy, stitching together a common national market, and enabling way for a more robust economy.

The rollout of GST was accompanied by teething troubles, pertaining to cumbersome processes and technical glitches in the first few months. The GST Council—a body for making recommendations to the Centre and states on issues related to GST—has ironed out a variety of challenges in the last 10 months.

While moving closer to June 1, 2018, which is the cutoff date for factoring in reforms and policy changes for this year’s rankings, the Council has also finalised the new return filing format that would ease procedures and improve compliance among taxpayers.

The report, which was first launched in 2003, will consider reforms and policy changes taking place during June 2017-2018.

The World Bank every year publishes its Doing Business report that ranks 190 countries on how easy it is for companies in terms of doing business, as well as following certain regulations based on ten parameters such as starting a business, getting electricity, dealing with construction permits, getting credit, paying taxes, protecting minority investors, resolving insolvency and more.

According to the Department of Industrial Policy and Promotion (DIPP), the nodal government section responsible for handling the survey, has pointed out the significant impact of GST that is relevant to the World Bank’s case study.

In a report, DIPP has pointed out that reduction in number of tax payments made has come down to one instead of four after the implementation of the new indirect tax system.

Online payments of Central Value Added Tax (CENVAT), Central Sales Tax, Service Tax and VAT has been subsumed into one payment, DIPP explained.

“Accordingly, the number of payments made for indirect taxes applicable on the company, shall go down by 3,” it said in a report.

Similarly, as per the World Banks’s report published last year, any tax paid by a company (and a cost to company) is considered in effective tax rate computed as a percentage of commercial profits.

With the rollout of GST, total effective tax rate computed as a percentage of profits will reduce, it said.

“Taxes such as central sales tax and sales tax (VAT) have been subsumed in GST which is fully creditable and thus is not borne by the company. Therefore, total effective tax rate computed as a percentage of profits shall reduce,” DIPP said.

Source: Money Control
GST – Eway bill: All you need to know and experiences

GST – Eway bill: All you need to know and experiences

India has just announced the launch of another major reform under the GST regime. E-Way Bill : GSTAfter an aborted attempt in February, the government has finally managed to successfully roll out the E-way bill system for tracking goods movement under the Goods and Services Tax (GST) from April 1, 2018.

Eway bill is not a new phenomenon. It was prevalent in most states under the erstwhile VAT regime in the name of road permit, Eway bill, etc. It was used to monitor the movement of goods to/ from a state in order to check tax evasion. An eway bill is typically required to accompany goods on their movement from consignor to consignee.

Earlier, way bills were subject to state-specific rules and had to be generated through different state-specific portals.

Under GST, E-way bill is governed by a uniform set of rules applicable throughout the country. It is generated electronically on the e-way bill portal.

Under GST, E-way bill is governed by a uniform set of rules applicable throughout the country. It is generated electronically on the e-way bill portal.

The e-way bill system creates a facility for transporters to raise complaints, in case a vehicle is detained for more than 30 minutes.

Read More: All you need to know about E-Way Bill System

However, some features of the new E-way bill vis-à-vis VAT way bill such as mentioning HSN on the E-way bill, limited validity etc. are not welcomed by businesses.

know about eway bill

The government, while proposing the idea of incorporating E-way bill under GST, had the intention of creating an effective tool for tracking movement of goods and ensure various benefits to the industry.

The steps included:

  • Abolition of check-posts
  • Seamless movement of goods within a state and across different state borders
  • Boost to India’s logistics ecosystem resulting in lesser traffic on major transportation routes
  • Reduction in transportation costs and lead time by replacing physical check posts with mobile squads

For every shipment of goods of the value of more than Rs 50,000 whether inter-state or intra-state, an E-way bill must be generated through an online portal, before the goods are shipped, and it should include specified details of goods, their consignors, recipients, and transporters.

The government is looking forward to implementing the E-way bill system across India in a phased manner latest by June 1, 2018, for both inter- and intra-state movement of goods.

E-way bill for inter-state movement of goods was implemented from April 1, 2018. Subsequently, E-way bill for intra-state movement of goods have also been introduced in Andhra Pradesh, Gujarat, Kerala, Telangana, Uttar Pradesh, Bihar, Jharkhand, Haryana, Himachal Pradesh, Tripura, and Uttarakhand.

While relatively smooth, there have been few challenges and concerns in the journey so far. For example, lack of functionality to update the details mentioned and acceptance of E-way bill by the recipient.

Extension of validity of E-way bill results in the generation of multiple Eway bill numbers against a single invoice, which could lead to duplication.

Further, the timeline provided for the extension, i.e. 4 hours before and after the expiry of validity, seems short. There is also no mechanism to track delivery and closure of transportation of goods on the portal.

The government has been working tirelessly to iron out the wrinkles in the process of implementation of the E-way bill system. In order to address these issues, the system should provide forthe modification of details entered in the E-way bill, an extension of validity without generation of new E-way bill number, facility to track the status, closure, and acceptance by the recipient of E-way bill and a reasonable time limit for extension of Eway bill.

For businesses with operations across the country, the system is likely to pose a fresh set of compliance challenges. Businesses having multiple movements of goods on a daily basis would need a software solution to generate the E-way bill in a timely manner and also enable reconciliation of E-way bill with the turnover.

The said solution should also enable tracking the E-way bills generated by suppliers of businesses so as to enable reconciliation of purchases with E-way bill. The same would ensure assistance during department audits and investigations.

E-way bill has already started gaining attention at the high courts in India. Recently, the Allahabad High Court held that seizure of the consignment of goods merely because the details of vehicles or the transport company were provided in handwriting after downloading of the e-way bill from the online portal is not tenable.

Also Read: Digital copy of E-way bill enough to give transporters right of way

The court also contended that since the invoices and the goods receipts issued by the transport company clearly indicate the details of the tax charged, the seizure is liable to be squashed. The importance was laid on the fulfillment of mandatory requirements provided under GST laws, and not on mere procedural lapses.

In another case, goods were moving locally between two offices of the same assessee without the state way-bill and were detained during transportation by the revenue officer. As soon as the assessee was informed of the non-compliance, assessee raised the Eway bill and submitted the same to the revenue officer.

On the filing of a writ petition by the assessee, the Kerala High Court held that detention of goods merely for infraction of the procedural rules in transactions, which do not amount to taxable supply, is without jurisdiction.

Both the aforesaid judgments show the clear intent of the high courts to protect the assessee from procedural non-compliances wherein government revenue is not impacted.

It will be interesting to see whether the state authorities will approach the apex court against the aforesaid orders.

An effective user-friendly E-way bill system has the potential to suppress the black marketing and check tax evasion. With the proposed daily capacity of 75 lakh E-way bills on the portal, businesses are hopeful that as more and more States are being brought under the ambit of intra-state E-way bill, the portal will have minimum downtime.

Ease Your GST Return Filing & Invoice with XaTTaX GST Software

Source: ET
Indian economic growth: IMF pegs India growth at 7.4 % for FY18-19

Indian economic growth: IMF pegs India growth at 7.4 % for FY18-19

The Indian economy is expected to grow at 7.4 per cent in the current fiscal and accelerate further to 7.8 per cent as it recovers from the impact of demonetisation and Goods and Services Tax (GST) rollout, the International Monetary Fund (IMF) said on Wednesday.International Monetary Fund (IMF)

Asia continues to be the main engine of the world’s economy, accounting for more than 60 per cent of global growth – three-quarters of which comes from China and India alone, as per IMF’s Regional Economic Outlook: Asia and Pacific (REO).

“But there are risks and challenges ahead, including from a tightening of global financial conditions, a shift toward inward-looking policies, and – over the longer run – population aging, slowing productivity growth, and the rise of the digital economy,” it said.

Asia is expected to grow at 5.6 per cent this year and next, it said, adding that the outlook was supported by strong global demand, as well as still accommodative policies and financial conditions.

“In India, growth is forecast to rebound to 7.4 per cent in FY 2018/19 as the economy recovers from disruptions related to the currency exchange initiative and the rollout of the new Goods and Services Tax,” it said.

China, IMF said, was projected to grow at 6.6 per cent in the current year that will moderate to 6.4 per cent next year.

GST: Economy Growth

Explaining low inflation

Noting that present rates of inflation in Asia were some of the lowest in decades, it said, it had seen some upward movement since September 2017 on the back of rising oil prices.

“But core inflation – which excludes food and energy – remains low and below target in many economies. In 2017, headline inflation on average was 0.6 percent lower than target in Asian advanced economies, and 0.8 percent under target in Asian emerging market economies,” it said.

The latest report explores why inflation has been so low. And it finds that first that temporary global factors, including commodity prices and imported inflation, have been key drivers of low inflation. But these factors could reverse, and inflation could rise.

According to the report, inflation has become more backward-looking, meaning that past inflation drives current inflation more than future expectations. This suggests that if inflation rises, it may persist.

“Further, there is some evidence that the sensitivity of inflation to economic slack has decreased [i.e., the Phillips curve has flattened], suggesting that if inflation rises, there may be a large hit to output when reducing it,” it said.

All of these mean that central banks should watch out closely for signs of inflation pressure now and stand ready to respond.

Source: The Hindu
GoM on incentivising digital payments under GST to meet on May 11

GoM on incentivising digital payments under GST to meet on May 11

Bihar Deputy Chief Minister Sushil Kumar Modi-led ministerial panel on incentivising digital payments under GST will meet on May 11 to assuage concerns expressed by some states, especially West Bengal. Sushil Modi : GST

To incentivise digital transaction, the GST Council had last week discussed giving a concession of 2 per cent in GST rate (where the tax rate is 3 per cent or more) to consumers making payment through cheque or digital mode. The ceiling for the discount would be capped at Rs 100 per transaction.

While most of the states in the GST Council were agreeable to the proposal, West Bengal had voiced concerns saying that the poor people will suffer because they still find cash as a viable mode for the transaction, an official said.

“While 98 per cent of the states supported the idea, West Bengal opposed to it saying the poor would suffer. We will discuss the concerns and hope to achieve a consensus in the May 11 meeting,” the official added.

The Modi-led Group of Ministers (GoM) has been tasked with submitting its report to the GST Council, chaired by Finance Minister Arun Jaitley and comprising his state counterparts, within 15 days.

The five-member GoM include Gujarat Deputy Chief Minister Nitinbhai Patel, West Bengal Finance Minister Amit Mitra, Haryana Excise & Taxation Minister Capt Abhimanyu and Punjab Finance Minister Manpreet Singh Badal.

Jaitley, after the Goods and Service tax Council meeting last week, had said that while most states were agreeable to the proposal of giving a concession in GST rate, some states wanted a small negative list.

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Source :  The Economic Times
GSTN to rope in private entities for tax payer profiling, fraud analytics

GSTN to rope in private entities for tax payer profiling, fraud analytics

GST Network has invited bids from private entities for “360-degree” profiling of Fraud Analytics : GSTNtaxpayers for early detection of fraud as it seeks to transform into an end-to-end platform for checking GST evasion, from being just a tax collection portal.

The analytics company to be roped in will have the mandate for designing and developing a Fraud Analytics System. GST Network has however barred Infosys from bidding for the project to avoid conflict of interest.

The system will take about a year to be operational and leverage existing data pertaining to GST registration, return filing and e-way bill, along with the information from other external sources such as Financial Intelligence Unit (FIU), Central Board of Direct Taxes (CBDT), banks and state tax departments.

According to the eligibility criteria, the interested bidder will need to have a turnover of Rs 300 crore and should have posted a profit in the past three financial years. Also, it should have experience in implementing Advanced Analytics, the GSTN said in the Request For Proposal (RFP).

The fraud analytics company would be tasked with establishment of taxpayer’s identity. “Based on information available within GSTN as well as third party information, it is expected to reliably establish the identity/360 degree view of the taxpayer and key members of its management,” said the RFP.

It would also establish taxpayer’s risk profile by analysing information on purchasers and sellers as part of returns data, whether the taxpayer deals with sensitive or evasion prone commodities, history of the owner of the company as well as a rapid change of promoters, among others.

The company, to be appointed for 6 years, would also be required to suggest ways to prevent revenue leakages and forecast revenue growth and other econometric analysis for policy formation.

It can also suggest changes in laws, rules/ procedures based on fraud detection to plug loopholes and identify material/evidences which may be shared with tax authorities for prosecution of fraudulent taxpayers.

To ensure that there is no conflict of interest, the GSTN has barred Infosys from bidding for the fraud analytics project.

Infosys had in 2015 won the Rs 1,380-crore deal for developing and running GSTN’s backend software and hardware. The indirect tax reform, GST subsumed over a dozen local taxes and was rolled out from July 1, 2017.

GSTN has in the bid document mandated that the bidder should develop adequate capability for data storage and calculating the complexity of data.

“In the near future, GSTN is likely to experience an ‘explosion’ in the amount of data in its transactional systems,” the GSTN said.

“The figure of data is likely to have quantum jump when the system such as E-way Bill data, external agency data like CBDT, information from banks, Ministry of CorporateAffairs, Shops and Establishments Department, other Government and non-government agencies etc. which will be integrated with the GST fraud analytics system,” it added.

To ensure full confidentiality of data, GSTN has mandated that the eligible bidder would have to ensure a separate section within their office premises for undertaking the fraud analytics project.

GSTN may also place one or two of its employee there for monitoring. “GSTN may, in case required, provide desktops and laptops for day-to-day operations for carrying out fraud analytics,” said the RFP.

Besides, the people involved in the project would not be allowed to “carry any storage device such as USB sticks etc. to GSTN premises”.

The GST Council, chaired by Finance Minister Arun Jaitley and comprising state counterparts, last week approved converting GSTN into a wholly owned government company. Currently, 51% stake in GSTN is held by private entities and 49% by the Government.

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Source: ET
Companies get scrutiny notices for mismatch in GST returns

Companies get scrutiny notices for mismatch in GST returns

GST officers have started sending scrutiny notices to companies whose Pre-GST Noticetax payment did not match the final sales return, after revenue authorities detected underpayment of GST by about 34 per cent, a source said.

Besides, companies whose final sales return GSTR-1 did not match GSTR-2A, which is a purchase return auto-generated by the system from his seller’s return, have also received scrutiny notices.

As per an analysis was done by the revenue department in March, 34 per cent of businesses paid Rs 34,400 crore less tax between July-December while filing an initial summary return (GSTR-3B).

These 34 per cent of the businesses have paid Rs 8.16 lakh crore to the exchequer by filing GSTR-3B, whereas analysis of their GSTR-1 data show that their tax liability should have been Rs 8.50 lakh crore.

In one notice issued by Gujarat GST commissionerate on May 4, taxpayers have been asked to explain the reason for “discrepancies” in return GSTR-3B and GSTR-1 for October-December period by May 14.

“If no explanation is received by the aforesaid date, it will be presumed that you have nothing to say in the matter and proceedings in accordance with law may be initiated against you without making any further reference to you in this regard,” the notice said.

Tax experts said that GST law provides for 30 days time to be given to taxpayers for replying to scrutiny notices, however, in the said case only 10 days time has been granted.

AMRG & Associates Partner Rajat Mohan said: “The government should issue strict guidelines for the officers to be reasonable and rational in disposing of the notice after giving the full opportunity of being heard to the tax payers. In one of such notice tax officer has given 10 days (out of which four days weekly off) against a maximum 30 day period allowed in rules”.

EY Partner Abhishek Jain said that the activity of data analytics at the end of revenue authorities has commenced with various players receiving notices, seeking clarifications on differences between GSTR-1 and GSTR-3B as well as GSTR-2A and GSTR-3B.

While the reconciliation between GSTR-1 and 3B is to essentially verify payment of taxes for all outward supplies made, reconciliation between GSTR-2A and GSTR-3B is to ensure that credits claimed by businesses only pertain to taxes actually paid by the suppliers and there not being any loss to the government exchequer on this account, Jain said.

The government has collected over Rs 7.41 lakh crore as GST in last fiscal. However, there were concerns that due to the absence of anti-evasion measures there might have been leakages in tax revenue.

The GST Council, headed by Finance Minister Arun Jaitley and comprising state counterparts, had in its meeting in March decided to further analyze data gaps between self-declared liability in GSTR-1 and the taxes actually paid while filing GSTR-3B.

The revenue department has analyzed the Goods and Services Tax (GST) returns data filed by over 51.96 lakh businesses during July-December, 2017. The indirect tax reform GST was rolled out from July 1, 2017.

The data analysis showed only 16 per cent of the summary sales returns under GST matched with the final returns till December 2017.

It also showed that there was excess tax payment of Rs 91,072 crore by 49.36 per cent of businesses registered under GST between July-December. While they have paid Rs 6.50 lakh crore as GST, the GSTR-1 filed by them shows that their liability should have been Rs 5.59 lakh crore.

Source: ET