Browsed by
Tag: GSTN

SBI explains how turnover-based MSME definition will help GST mechanism, transparency and more

SBI explains how turnover-based MSME definition will help GST mechanism, transparency and more

Finance Minister Nirmala Sitharaman yesterday announced the change in the definition of the Micro Small and Medium Enterprise (MSME). For an MSME to be defined as a Small unit, FM Sitharaman raised its investment limit from Rs 5 crore to Rs 10 crore with a turnover of less than 50 crore. The State Bank of India (SBI) has hailed this decision to define the MSMEs from their annual turnover. SBI is of the opinion that under the new tax regime, turnover declared by GST registered MSME units can be easily verified through GSTN (Goods and Service Tax Network).

On how GST will become transparent in turnover-based MSME definition; Dr Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India (SBI) said, “The proposed definitional change for MSME is considered progressive and suitable because of the introduction of Goods and Services Tax (GST). Under the new tax regime, turnover details of enterprises are being captured by Goods and Services Tax Network (GSTN) and turnover declared by GST registered MSME units can be easily verified through GSTN. Hence, the turnover based definition would be transparent, progressive and easier to implement.”

Dr. Ghosh went on to add that as the lender will get 100 per cent credit guarantee on principal and interest which will save the capital of around Rs 25,000 – Rs 30,000 crore for banks (zero risk weights) and increase in credit disbursal which will translate into a direct credit growth of 20 per cent to the eligible accounts. As on March’20 around Rs 14 lakh crore is outstanding to the MSME sector, which translates into Rs 2.80 lakh crore immediate credit boost

Source: Zee-Business

XaTTaX is Best GST Software, Simplify your Financial matters with GST eFiling Software for Return Filing & GST Billing Software in India.

  • Automate Invoicing and get Paid Faster
  • Integration with all popular accounting software
  • Manage your GST and E-WayBill Software anytime anywhere using multiple devices

Get Our GST Software DEMO and E-WAY BILL DEMO for FREE

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

Get Your GST Returns Filed Easily and
Effortlessly!!!

Our GST software enables you to file your GST returns free of any hassle. Get more details by writing to us at gst@xattax.in.

GST collections for April and May set to decline drastically

GST collections for April and May set to decline drastically

Goods and services tax (GST) collections are set to fall drastically in April and May with the number of electronic permits or e-way bills generated for transporting goods decreasing by close to 30% in March and by more than 80% in April sequentially, reflecting a general contraction in economic activities, according to official data.

E-way bills are required for transporting goods worth more than ₹50,000 within and across states. These enable officials to keep a tab on transactions without physically interfering with goods movement.

Businesses had generated only 6.7 million e-way bills from 1 to 27 April, against the 40.6 million generated in March, according to data available from GST Network (GSTN), the company that processes tax returns.

The estimated more than 83% fall in e-way bills generated in April is set to have a telling effect on the GST revenue to be collected in May, which is slated to be repo-rted on 1 June.

Businesses have time till the 20th of a month to pay taxes for transactions in the previous month. As such, May revenue is set to reflect the full impact of the drop in economic activities because of the lockdown.

Signs of the impact the lockdown had on March sales are also expected to be visible in the GST collections being made in April. This will get reported on 1 May.

The 40 million e-way bills generated in March reflect a 28.9% drop from the over 57 million e-way bills generated in February. One major reason is that the World Health Organization declared covid-19 a pandemic on 11 March.
In the April-March period of FY20, GST revenue collection grew by 3.8% to ₹12.2 trillion from the year-ago period.

Source: Money-Control

Get Your GST Returns Filed Easily and
Effortlessly!!!

Our GST software enables you to file your GST returns free of any hassle. Get more details by writing to us at gst@xattax.in.

Recovery of interest for late GST payment needs to be adjudicated in case of dispute, says HC

Recovery of interest for late GST payment needs to be adjudicated in case of dispute, says HC

Goods & Services Tax (GST) authority cannot raise demand or initiate recovery of interest on late payment of tax without adjudication in case of a dispute, a High Court has ruled.

Amid lockdown, a division Bench of Jharkhand High Court, using video conference, delivered judgment to interpret certain Sections on the GST Act. These Sections deal with interest on delayed payment of tax (Section 50), determination of tax not paid or short-paid or erroneously refunded or input tax credit wrongly availed of or utilised for any reason other than fraud or any wilful misstatement or suppression of facts (Section 73 & 74) and recovery of tax (Section 79).

“Liability of interest is automatic, but the same is required to be adjudicated in the event an assessee disputes the computation or very leviability of interest, by initiation of adjudication proceedings under Section 73 or 74 of the CGST Act. In our opinion, till such adjudication is completed by the Proper Officer, the amount of interest cannot be termed as an amount payable under the Act or the Rules,” the Bench said. Further, it ordered that without initiation of any adjudication proceedings, no recovery proceeding under Section 79 of the Act can be initiated for recovery of the interest amount.

Every GST assessee is required to file the return GSTR 3B (actual tax paid) after depositing the tax. Due date for completion of the process is 20 days from the end of month for businesses with turnover of more than ₹5 crore; for those with less than ₹5-crore turnover, the due date in some States/UTs is 22nd day and, in the remaining States/UTs, it is 24nd day from the end of month. Delay will result in interest being levied.

In the matter under consideration, the Jharkhand-based company Mahadeo Construction was saddled with interest of over ₹19.5 lakh for delayed filing of GSTR-3B returns for February and March 2018. The petitioner submitted that, according to GSTN portal, the due date for filing of the return for February 2017-18 and March 2017-18, was March 31, 2019. The returns for both months were filed within the stipulated date.

Bank account attached

However, as the petitioner submitted, the tax authority sent a demand for payment of interest amounting to over ₹19.5 lakh for filing the delayed GSTR-3B. Later, the bank account of the petitioner was attached for non-payment of interest. The petitioner further submitted that not only the respondent (authorities without initiating adjudication process) straight away demanded interest from the petitioner in a most arbitrary and illegal manner, by adopting extra legal steps, initiating garnishee proceedings under Section 79 of the CGST Act for recovery of interest.

A garnishee proceeding refers to a legal action where the creditor is allowed to collect due amount from the debtor’s bank account or any other means.

Responding to the petitioner’s submission, the respondent (tax authority) said that the present dispute pertains to recovery of interest not on the grounds of delay in filing GSTR-3B return, but for delayed payment of tax. Further, for the tax authority, once there is a delay in payment of tax, the liability to pay interest on the same becomes automatic, for which no separate proceedings are required to be initiated for determining such interest liability.

Source: The-Hindu-Business-Line.

XaTTaX is Best GST Software, Simplify your Financial matters with GST eFiling Software for Return Filing & GST Billing Software in India.

  • Automate Invoicing and get Paid Faster
  • Integration with all popular accounting software
  • Manage your GST and E-WayBill Software anytime anywhere using multiple devices

Get Our GST Software DEMO and E-WAY BILL DEMO for FREE

Extremely mobilised on GSTN project, working closely with GST Council: Infosys

Extremely mobilised on GSTN project, working closely with GST Council: Infosys

Infosys is “extremely mobilised” on the GST Network enhancement project and work is progressing at “full speed” even as a large segment of its employees are working remotely amid the nationwide lockdown, its CEO Salil Parekh said. Taxpayers were facing issues due to glitches on the GSTN portal. The portal of GST Network (GSTN), which provides the technology backbone for the goods and services tax (GST), is managed by Infosys.

“I think we’re extremely mobilised, working very closely with the GST Council. In fact, our Chairman Nandan (Nilekani) had met them. There’s a detailed plan that is also internally being developed, we are working towards it. There are some constraints obviously on procurement of some hardware and but as we come closer to July, we’ll have a sense on that basis in terms of the manpower deployment,” Parekh told .

He added that work is progressing at full speed, even amid lockdown situation that has forced majority of Infosys staff to work remotely.

“It’s at full speed, even in this remote working situation. And we’re making every attempt to make sure all of those discussions that we were part of, we are executing upon…As of now, we have everything fully mobilised,” Parekh said.

He added that there will be discussions around July to “make sure all the hardware pieces which need to be procured are fully available, given the supply chain constraints in the hardware”.

Last month, the finance ministry wrote to Infosys saying some of the problems highlighted as early as 2018 are still unresolved and failures month after month lead to genuine taxpayers “getting frustrated” and asked the Bengaluru-based company to provide a plan for quick resolution of glitches on the GSTN portal.

Infosys Chairman Nandan Nilekani had then made a detailed presentation to the GST Council for the transition into a better GST Network system and the requirement of hardware to enhance capacity for addressing the system-related issues that are being faced by taxpayers in the IT system. The Council had agreed to the demand for more skilled manpower and better hardware to enhance capacity and given time till July to improve the GSTN design.

Parekh said about 93 per cent of Infosys staff is now working remotely amid the lockdowns on account of the coronavirus pandemic.

Talking about getting staff back on premises, Parekh said that as lockdowns start to ease off, the company will have between 5 to 10 per cent of its employees on premises.

“…(When) things start to ease off, our first phase will be between 5 and 10 per cent, so it’s a very gradual moving back. Even with that, there will be a lot of attention on social distancing, in transport, even in the seating within the campus, some level of partitions between seating, different usage in terms of hygiene and safety within the campus. We putting in temperature checks,” he said.

He further noted that in some of the centres outside India, the company is undertaking a similar strategy.

“It will be in the range of 5-10 per cent in the first phase, and then we’ll see how that plays out what the situation with the lockdowns is. And then the next phase will kick in,” he said adding that currently many of its locations in India (like Pune and Bengaluru) are in the red zone classification.

IT companies like HCL Technologies and Tech Mahindra are continuing to allow staff to work from home (WFH) to ensure safety of employees amid the nationwide lockdown.

While home ministry guidelines had allowed IT-ITeS companies to operate with up to 50 per cent strength from April 20, many states including Karnataka and Uttar Pradesh have continued imposition of full lockdown.

Industry body Nasscom had also advised members to adopt a staggered approach and start with 15-20 per cent workforce in the first phase, and subsequently scale it up depending on the situation on ground.

About 90 per cent of IT employees and 70-80 per cent of BPO and small and medium businesses in the sector are estimated to be working from home to ensure business continuity.

Source: Economic-Times

XaTTaX is Best GST Software, Simplify your Financial matters with GST eFiling Software for Return Filing & GST Billing Software in India.

  • Automate Invoicing and get Paid Faster
  • Integration with all popular accounting software
  • Manage your GST and E-WayBill Software anytime anywhere using multiple devices

Get Our GST Software DEMO and E-WAY BILL DEMO for FREE

GST officers process 10,077 new registrations, 7,876 refund applications in 10 days of lockdown

GST officers process 10,077 new registrations, 7,876 refund applications in 10 days of lockdown

GST Network on Sunday said tax officers have processed over 10,000 new registrations and about 8,000 refund applications in the first 10 days of lockdown till April 3, working through Virtual Private Network (VPN).

In a statement, the Goods and Services Tax Network (GSTN) said it has enabled tax officers of different states and union territories (UTs) to access their office during the lockdown period, and is providing secured access to the office network on request.

Till March 31, 2020, GSTN had enabled 1,748 tax officers from 18 states/UTs to access office through VPN, a secure way to access office network.
This is in addition to the three hill states which already connect to the GST System using VPN.

“A total number of 20,273 registration-related cases were processed during the first 10 days of lockdown, i.e. from March 25 to April 3, 2020. This includes 10,077 cases of new registration, 3,377 cases of core amendment, 3,784 cases of cancellation by application, 1,966 cases of cancellation by suo moto and 1,069 cases of revocation,” GSTN said.

“Similarly, 7,876 cases of refund were also processed during the period,” it added.
The government announced a 21-day nationwide lockdown, beginning March 25, to contain the spread of coronavirus.

Apart from 1.23 crore taxpayers, GSTN provides technology services to 29 states/UTs for implementation of GST.

For these states and UTs, GSTN provides back-office applications like processing of registration application, processing of refund applications, audit, assessment, appeal, among others, for all their tax officers, which is different from the front-end interface used by the taxpayer — GST portal.

Soon after the lockdown was announced, GSTN offered secured access to all these states to enable their officers to work remotely.

“VPN is helping officers to avoid the backlog which could have happened if the cases were not processed during the lockdown. With the provision of auto-approval of applications, if not processed by the tax officer in a time-bound manner, the officers want them to do it manually to avoid any future complication,” GSTN said.

Source: Times-of-India

XaTTaX is Best GST Software, Simplify your Financial matters with GST eFiling Software for Return Filing & GST Billing Software in India.

  • Automate Invoicing and get Paid Faster
  • Integration with all popular accounting software
  • Manage your GST and E-WayBill Software anytime anywhere using multiple devices

Get Our GST Software DEMO and E-WAY BILL DEMO for FREE

GSTN issues Advisory on Tracking GST Refund Application Status on GST Portal and PFMS portal

GSTN issues Advisory on Tracking GST Refund Application Status on GST Portal and PFMS portal

The functionality of tracking the status of the refund application has been available on the GST portal. By utilizing this functionality, the taxpayers can know the stage at which the refund application is pending with the tax-officer/ taxpayer.

A tax officer can issue payment orders only after the Public Financial Management System (PFMS) has validated the bank account mentioned in the refund application (RFD-01). Similarly, the final disbursement of the refund amount sanctioned by the tax officer happens only after (PFMS) has validated the bank account mentioned in the payment order (RFD-05). Thus, validation of the bank account takes place at two stages. However, the exact detailed status of bank account validation is not available on the GST Portal.

The Public Financial Management System (PFMS) of the Controller General of Accounts (CGA) has made available a central portal to track the status of bank account validation and disbursal of refund amount. By visiting the PFMS portal the taxpayer can track the status of bank account validation.

This advisory is being issued for the benefit of the taxpayers in order to make them aware of the ways in which they can track the status of their refund applications on both the Portals.

for the detailed info https://tutorial.gst.gov.in/downloads/news/Advisory%20on%20Refund%20Tracking.pdf

Source: TaxScan.

Get Your GST Returns Filed Easily and
Effortlessly!!!

Our GST software enables you to file your GST returns free of any hassle. Get more details by writing to us at gst@xattax.in.

All you need to know from the 39th GST Council meet

All you need to know from the 39th GST Council meet

The 39th GST Council took an array of decisions, including an increase in the tax rate on mobile phones and specified parts to 18 percent from 12 per cent. GST on handmade, machine-made matchsticks has been rationalised to 12% while GST on MRO (maintenance repair overhaul) services of aircraft has been slashed to 5% from 18%.

The GST rate on mobile phones was increased from 12% to 18% allowing a full claim of input tax credit; Relief given to domestic service providers of maintenance, repair and operations.

Addressing the media after the meeting, Finance Minister Nirmala Sitharaman also said that a better GSTN system should be ensured by Infosys by July 2020.

Here are the major decisions taken

* GST on mobile phones, specified parts increased to 18% from 12%.

*GST on MRO (maintenance repair overhaul) services of aircraft slashed to 5% from 18%

*GST on handmade, machine-made matchsticks rationalised to 12%.

*Delayed GST payment to attract interest on net tax liability from July 1.

Important change on GSTR-1:

The GST Council decided to stagger the GSTR-1 filing for taxpayers with:

*Turnover more than Rs 1.5 cr -to file before 10th of the following month
* Turnover up to Rs 1.5 cr -to file before 13th of the following month
* The GSTR-2A can be generated on 14th of following month
*GSTR-9 and 9C due date pushed to 30th June 2020 for FY 2018-19 from 31 March 2020; Increases the turnover limit from Rs 2 cr to Rs 5 cr for the mandatory annual return filing
*The GST Council defers the proposal on the taxability of economic surplus of brand owners of alcohol for human consumption.

Mr. MS Mani, Partner, reacted to GST Council meet- “ the approach of the GST Council to proceed with changes in returns, e-invoicing etc on an incremental basis would permit businesses to embrace these changes in a calibrated manner. Introduction of multiple changes from 1st April, as was proposed earlier , would have put added pressure on businesses, who have been grappling with multiple business and regulatory headwinds.”

Souce: Economic-Times

XaTTaX is Best GST Software, Simplify your Financial matters with GST eFiling Software for Return Filing & GST Billing Software in India.

  • Automate Invoicing and get Paid Faster
  • Integration with all popular accounting software
  • Manage your GST and E-WayBill Software anytime anywhere using multiple devices

Get Our GST Software DEMO and E-WAY BILL DEMO for FREE

Nandan Nilekani gets govt summons over persisting GSTN glitches

Nandan Nilekani gets govt summons over persisting GSTN glitches

The government has asked Infosys chairman Nandan Nilekani to explain why the IT major has failed to fix glitches in the GST Network.

According to TNN, Nilekani will have to make a presentation when the GST Council meets next.

The government recently staggerred the deadline for filing returns as Infosys executives were unable to address the concerns. These include a slow platform, log-in errors, as well as delays in getting one-time passwords (OTPs).

Meanwhile, in a strongly worded letter to Infosys on March 5, the ministry said some of the problems highlighted as early as 2018 are still unresolved and failures month after month lead to genuine taxpayers “getting frustrated”.

According to the report, the failure happened despite summons to senior company executives by revenue secretary A B P Pandey, prompting the finance ministry to take up the issue with Nilekani over a month ago. Finance minister Nirmala Sitharaman has also held discussions on the issue, discussing the GST Network, as well as Infosys’s role.

The IT company has developed the software for GST Network (GSTN) — which provides the technology backbone for Goods and Services Tax (GST).

The GST Council, headed by Sitharaman, is scheduled to meet on Saturday.

Officials admitted that the IT platform has not stabilised even two and a half years after GST was rolled out. Even earlier, a ministerial panel had ticked off Infosys as it believed that the IT major had not deputed senior executives across states to tackle glitches that had emerged, prompting the Bengaluru-based company to deploy better quality manpower.

Repeated problems with the platform, which taxpayers claimed often delay filings beyond the deadline and lead to penalties, have also led to the Supreme Court recently asking the government to resolve technical difficulties.

Source: Economic-Times

Get Your GST Returns Filed Easily and
Effortlessly!!!

Our GST software enables you to file your GST returns free of any hassle. Get more details by writing to us at gst@xattax.in.

New GST filing format, e-invoicing to help in ease of doing biz, reporting for taxes: GSTN CEO

New GST filing format, e-invoicing to help in ease of doing biz, reporting for taxes: GSTN CEO

GST Network CEO Prakash Kumar on Friday said e-invoicing and the new format for filing GST will help improve the ease of doing business and reporting for the indirect taxes.

“E-invoicing is a step towards improving ease of doing business and reporting for GST. Manual data entry leads to transcription errors and wrong entries,” Kumar said while addressing an event on ‘E-invoicing and New GST Return Format’ organised by the PHD Chamber of Commerce and Industry.

There is a need for standard to ensure complete interoperability, he said. “The economies in the high-income group OECD are at the forefront of invoice digitisation,” he said. The GSTN CEO said that in India, the aim is to make digitisation part of business process of taxpayers and eliminate all manual reporting.

N K Gupta, chairman (indirect taxes committee) of PHD Chamber, said e-invoicing is the new system through which business-to-business (B2B) transactions are authenticated electronically by GSTN.

This is a major step towards the push for a digital economy, he said and lauded that GSTN is improving every day and GST is digitised to a great extent. Sanjay Aggarwal, senior vice-president of PHD Chamber, said e-invoice is the future means of electronic billing.

It has been adopted by many governments internationally. It has been implemented in a staggering manner over a period of time, initially launched for B2B and B2G (business-to-government), he added.

Source: Economic-Times

XaTTaX is Best GST Software, Simplify your Financial matters with GST eFiling Software for Return Filing & GST Billing Software in India.

  • Automate Invoicing and get Paid Faster
  • Integration with all popular accounting software
  • Manage your GST and E-WayBill Software anytime anywhere using multiple devices

Get Our GST Software DEMO and E-WAY BILL DEMO for FREE

×

Hello!

Click one of our representatives below to chat on WhatsApp or send us an email to amul.patel@sailotech.com

× How can I help you?