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Lack of clarity in GST forms, traders worried

Lack of clarity in GST forms, traders worried

Lack of clarity and difficulties in furnishing series of new details asked in the annual return form under Goods and Services Tax (GST) are seen resulting in mismatches and record notices to taxpayers, chartered accountants and tax experts said.

Plethora of information demanded in GST annual return form that has about 19 tables raised worries of dealers apprehending to be slapped with notices in case of mismatches.

Many dealers are delaying filing the annual return forms due to ambiguity on data demanded in annual return that does not allow any rectification ones it is filed. The last date for filing the annual return is June 30.

CA and GST expert Sunil Jain said, “Annual return form needs a reconsideration else the whole system will be jammed in just resolving mistakes and reconciliations.”

“There are a lot of chances of mismatches that will lead to notices to dealers because of lack of clarity on the data and certain details asked for the first time from dealers.”

CA Kirti Joshi said, “There are high chances of mismatches in the annual return turnover and book of accounts turnover. Dealers should be prepared for reconciliations.”

Tax payers will be filing the first annual return for the financial year 2017/2018.

The state GST department has received many suggestions from different bodies of tax consultants and chartered accountants to be incorporated in annual return form.

State commercial tax department joint commissioner Sudip Gupta said, “Any matters which are not clear must be raised and brought in to notice of the law committee either directly or through me and we will look into it at the earliest.”

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Source: Times of India.
Circular trading & GST evasion charges: Taxman may have to review arrest strategy

Circular trading & GST evasion charges: Taxman may have to review arrest strategy

The indirect tax department that had arrested many promoters for circular trading and escaping goods and services tax may have to rethink its strategy after the Mumbai High Court granted bail to many of them.

The arrests came after the indirect tax department issued notices in February this year and raided premises of several companies for allegedly inflating turnover through fake invoices to shell companies.

People close to the development said that several promoters then approached the criminal bench of the Bombay High Court which granted them bail and sought an explanation from the department. Bail was granted to different people in the past few weeks.

Some industry observers suspect that circular trading may be used to inflate turnover or for bringing in black money to system. Tax experts, however, pointed out that this doesn’t necessarily mean tax evasion and that some genuine businesses are facing trouble on this count.

“We have argued that the entire issue is based on the department’s assumption that the supply of goods should result in movement of goods,” said Abhishek A Rastogi, partner at law firm Khaitan & Co, who represented some promoters in their bail pleas. “The legal principle of revenue neutrality comes into play. In case there is no loss of revenue, the proceedings cannot be non-bailable and cognisable.”

Legal experts said the taxman had upped the ante by arresting promoters in the last few months.

“The GST officers have suo moto converted enquiries into criminal cases by arresting the promoters, which was seldom done under the earlier tax framework,” said Sujay N Kantawala, a high court advocate.


“This is clearly premature as determination of actual tax liability exercise is not carried out prior to arrest. This amounts to clear contempt of binding judgements,” he said.

ET had first reported on March 6 that indirect tax officials had started arresting promoters
following raids and suspecting circular trade.

People close to the development said some sectors tend to get involved in circular trading but it doesn’t necessarily mean there is tax evasion.

A person familiar with the development cited the example of a Mumbai company that is into trading of plastic goods. The said company sold goods to a company based in Pune, which sold the same goods to another company based in Bengaluru. Now, the third company sold the goods to the first, the Mumbai-based firm. All this while, the goods were kept safe at a godown in Mumbai and GST credits were paid on every lap of transaction. The series of sales helped the firms inflate turnover and avail larger valuations and loans, the person said.


Meanwhile, a battery of lawyers are looking at challenging a particular section of the GST law that gives arresting powers to the taxman, people in the know said. A separate petition in this regard could be filed in the coming weeks, they said.

The indirect tax department started issuing notices to several companies in the past few weeks, seeking evidence of all the purchase and sale transactions including the invoices. The department suspects that several companies are merely buying fake bills that help them claim input tax credit and actual buying and selling of goods is not taking place.

Input tax credit is a mechanism whereby a company can set off the GST paid by them on purchases against future tax liabilities. Industry trackers said that in many cases the promoters of such companies had landed in jail.

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Source: Economic Times.
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

GSTN develops system to fetch e-way bill data into monthly sales returns to curb evasion

GSTN develops system to fetch e-way bill data into monthly sales returns to curb evasion

Now, businesses supplying goods worth more than Rs 50,000 will have the option to include details of e-way bills generated while filing the final monthly sales return under GSTR-1, a move aimed at curbing tax evasion by reporting different sets of supplies data.

Matching of invoices of e-way bills with the sales shown in GSTR-1 will help taxmen in assessing whether the supplies have been accurately shown in sales return and GST paid on the same, tax experts said.

“To avoid double data entry, GSTN has provided a facility to taxpayers, where month’s e-way bill data is shown in format, which is required by a taxpayer to fill up the Form GSTR-1. The taxpayer can import data in his GSTR-1 form or import the same and use it with GSTR-1 offline tool to create his GSTR-1 Return Form,” GST Network said.

Touted as an anti-evasion measure, e-way bill system was rolled out on April 1, 2018, for moving goods worth over Rs 50,000 from one state to another. The same for intra or within the state movement was rolled out in a phased manner from April 15, 2018.

Following this, it has come to investigative officers’ notice that some transporters are doing multiple trips by generating only a single e-way bill or not reflecting e-way bill invoices while filing GSTR-1. It has also come to the notice that certain e-way bill is not being generated even as supplies are being made.

While generating e-way bill, details of supplier, receiver and other invoice details like number, date, goods, quantity, HSN code etc are provided by the taxpayer on e-way Bill Portal. This data is now transferred to GST portal, GSTN, which has developed the technology backbone for Goods and Services Tax (GST), said.

“With this facility, taxpayer will not be required to enter data in his Form GSTR-1 for all invoices for which he has generated e-way bill. This will avoid double data entry by taxpayers. This facility will help taxpayer to fill up their Form GSTR-1 in less time. This will also avoid any data entry mistakes made while filling details,” GSTN Chief Executive Prakash Kumar said.

GSTN said it has divided the taxpayers into three categories to download /import the data into GSTR-1. In last 18 months, around 90 per cent of taxpayers have reported up to 50 B2B and B2C large invoices in a month.

“Since these invoices can be easily seen on the screen, facility to import the data directly into GSTR-1 has been provided for such taxpayers. These taxpayers can edit the details imported in GSTR-1, if required, and then file their Form GSTR 1 online after adding other details like B2C supplies,” GSTN said.

For those having more than 50 invoices but up to 500, have been provided facility to download the data in a prescribed ‘csv’ file format, which can then be imported into GSTR 1 offline tool.

In case the number of invoices is more than 500, the invoice details can be imported from return Dashboard on GST portal as a ‘zip’ file. Tax payer can add more invoices (like those below Rs 50,000 in value) and upload in offline tool to prepare his/her return.

Linking of e-way bill data with GSTR-1 would help taxmen keep a tab on whether the supplies shown in e-way bill matches the sales shown in the returns form and thereby check evasion.

AMRG & Associates Partner Rajat Mohan said: “This facility would add to the immediate convenience of taxpayers, however, it would also prove to be a swift method of checking tax collections and any probable evasion.

“Once the system is stabilized, GSTN would have automated and regular reports of e-way bills transaction, which were not captured while filing outward supplies in GSTR-1”.

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Source: Economic Time
Centre sets up IT Grievance Redressal Committee to deal technical glitches on GST portal

Centre sets up IT Grievance Redressal Committee to deal technical glitches on GST portal

The government on Wednesday said it had set up a grievance redressal mechanism to address difficulties faced by taxpayers due to technical glitches on the GST portal.

Under the new mechanism, if any taxpayer was unable to file any form or return due to a technical glitch by the due date, he/she would be allowed to do so within a stipulated time period.

In case any taxpayers could not complete the process of GST filing TRAN-1 (transitional credit form) in time due to the IT glitch, he/she would be allowed to complete the process by 30 April.

Also read- Demonetisation, GST led to the formalization of the economy: FM Arun Jaitley

The filing of GSTR-3B return for such TRAN-1 will have to be completed by 31 May, the Finance Ministry said.

GST Representational image. Reuters
It added that the GST Council has delegated powers to an IT Grievance Redressal Committee to approve and recommend steps to be taken to redress the grievances and provide relief to the taxpayers.

The taxpayers would have to approach field officers/nodal officers where there was a demonstrable glitch on the common portal due to which the due process could not be completed.

 “The IT Grievance Redressal Committee shall examine and approve the solutions as may be necessary for an identified issue,” an official statement said.

The relief could be in the nature of allowing the filing of any form or return, or amending any form or return already filed, it said.

“The decision relating to filing of TRAN-1 will benefit 17,573 taxpayers who will consequently be able to avail of Rs 2,582.98 crore as Central GST credit and Rs 1,112.77 crore as State GST credit,” the statement said.

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Approximately eighty lakh taxpayers registered for GST: CEO, GST Network

Approximately eighty lakh taxpayers registered for GST: CEO, GST Network

GST Network CEO

The goods and services tax (GST) council is set to meet for the third time since the rollout of the new tax regime at this meeting which will take place in Hyderabad. The centre is expected to apprise the Council of the GST collections for the month of July. Sources say the council will also take stock of GST related concerns and demands of various sectors.

Ahead of the GST review meeting tomorrow, CNBC-TV18’s Timsy Jaipuria caught up with the CEO of GST Network, Prakash Kumar and asked him about the recent criticism that the system is facing.

Kumar said that it is easy to criticise but I have the figures to give you. There are no challenges from the system side, he added.

Major challenge is the last minute rush to file returns, he mentioned.

He further said that as of today, 25 percent of tax payers have filed for GSTR-1.

“In the month of July we had roughly 10 lakh new tax payers approved and in August another 10 lakh. It is 10 lakh per month in two months,” said Kumar.

Approximately 80 lakh taxpayers have registered for GST, he further mentioned.

Source :  Money Control
GST relief: Govt extends GST return filing deadline for cos who want to claim credit for past taxes

GST relief: Govt extends GST return filing deadline for cos who want to claim credit for past taxes

GST: GSTR3B return

The government on Thursday gave some relief to taxpayers availing of transitional input tax credit under the GST (Goods and Services Tax) regime by giving them an extra week till 28 August 28 to file tax returns.

Businesses under the Goods and Services Tax (GST) set up have to file their first return, GSTR 3B, for July on the portal of GST Network — the IT infrastructure provider for the new indirect tax regime — by 20 August. The return filing had commenced on 5 August.

The finance ministry offered some relaxation to those businesses that claim transitional input tax credit. These entities will have to deposit taxes on the basis of self-assessment by 20 August, but they will have one more week till 28 August to file their returns. Those taxpayers that do not claim any transitional input tax credit will have to necessarily pay tax and file return in Form 3B before the due date of 20 August, the ministry said.

It added that concerns have been raised about the form to claim transitional input tax credit not being available on the GSTN website. This form will be available on the GSTN website from 21 August. “A small window of opportunity is being given to all the taxpayers… The taxpayers who want to avail of the transitional input tax credit … (will) have to make full settlement of the liability after adjusting the transitional input tax credit before August 20, 2017,” it said.

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They will get time up to 28 August, 2017, to submit Form TRANS I after estimating transitional credit and Form 3B. “In case of shortfall in the amount already paid vis-a-vis the amount payable on submission of Form 3B, the same will have to be paid with interest of 18 percent for the period between August 21, 2017, till the payment of such differential amount,” the ministry said.

To make compliance easy for businesses, the GST Council has allowed businesses to initially file their returns on self-assessment basis in the first two months of the GST rollout. So, the GST returns for July and August will be filed on the Goods and Services Tax Network (GSTN) portal by filling the GSTR 3B form.

Over 71.30 lakh excise, service tax and VAT payers have migrated to the GSTN portal. Also 15 lakh fresh registrations have happened on the portal. The final GST returns for July will have to be filed by these businesses by 5 September instead of 10 August. Companies will have to file sale invoice for August with GST Network by 20 September instead of 10 September earlier.

GST Relief

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