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GST portal experiences technical glitch raises worries of taxpayers

GST portal experiences technical glitch raises worries of taxpayers

The Goods and Services Tax (GST) portal experienced technical failure on Thursday, leaving taxpayers worried amid fast approaching due dates for return filing.

The technical failure of the portal, which is maintained by Infosys, caused #gstnfailed to trend on Twitter.

The official Twitter handle of the GST Network (GSTN) responded on the micro-blogging site saying: “Dear Taxpayers, we have received complaints regarding difficulty in accessing the portal. We are working to resolve the same and will keep you updated.”

Hours later, in another tweet, it said: “Dear Taxpayers, we have again received complaints of denial of access to the portal and are working to resolve it. Inconvenience caused is regretted. Team Infosys-GSTN.”

The Infosys-GSTN team has finally confirmed in a tweet that the problem faced by the users has been resolved.

“Dear taxpayers, we observed some activity in cyber space by unscrupulous elements because of which some taxpayers may have experienced difficulties/delays in accessing GST Portal which otherwise is working fine. We have resolved the problem and blocked these activities. Kindly retry to access the portal. Inconvenience caused is regretted. Infosys-GSTN team,” it wrote on Twitter.

The Centre has extended the due date for furnishing annual GST or goods and services tax returns for the financial year 2019-20 by two more months. The new deadline is 28 February, 2021, instead of 31 December, 2020.
GST is an indirect tax that replaced a welter of indirect taxes in India such as the excise duty, services tax, and VAT. The GST Act was approved in Parliament on 29 March, 2017, and became law on 1, 2017.

Form GSTR 9 is used by the registered taxpayers to file a GST return every year.

Source: Live-Mint

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CBIC reminds due dates for filing monthly GSTR-5 Return, GSTR-3B and GSTR-5A

CBIC reminds due dates for filing monthly GSTR-5 Return, GSTR-3B and GSTR-5A

The Central Board of Indirect Taxes and Customs (CBIC) notified January 20, 2021, as a due date for filing monthly GSTR-5 Return, GSTR-3B, and GSTR-5A.

The Ministry of Finance announced for the non-resident GST payers that the due date for filing monthly GSTR-5 Return for the month of December 2020 is January 20, 2021, failing which will attract a late fee and interest.

The Government announced for OIDAR service suppliers that the due date for filing monthly GSTR-5A return for the month of December 2020 is January 20, 2021, failing which will attract a late fee and interest.

Taxpayers with an annual turnover of over Rs.5 Crores during Financial Year 2019-20 to file their monthly GSTR-3B for December 2020 on or before 20 January 2021 failing to attract a late fee and interest.

Source: TaxScan.

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FinMin releases weekly installment of Rs 6,000 cr to states to meet GST compensation shortfall

FinMin releases weekly installment of Rs 6,000 cr to states to meet GST compensation shortfall

The Finance Ministry on Monday released the 12th instalment of Rs 6,000 crore to states to meet the GST compensation shortfall, taking the total amount released so far under this window to Rs 72,000 crore.

The Centre had set up a special borrowing window in October 2020 to meet the estimated shortfall of Rs 1.10 lakh crore in revenue arising on account of implementation of Goods and Services Tax (GST).

The ministry in a statement said it has released the 12th weekly instalment of Rs 6,000 crore to the states to meet the GST compensation shortfall.

Out of this, an amount of Rs 5,516.60 crore has been released to 23 states and Rs 483.40 crore has been released to the 3 Union Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir & Puducherry), who are members of the GST Council.

The amount has been borrowed this week at an interest rate of 4.43 per cent.

“Till now, 65 per cent of the total estimated GST compensation shortfall has been released to the States & UT with Legislative Assembly. Out of this, an amount of Rs 65,582.96 crore has been released to the States and an amount of Rs 6,417.04 crore has been released to the 3 UTs with Legislative Assembly,” the ministry said.

Thus, the total amount released so far in 12 instalments is Rs 72,000 crore at an average interest rate of 4.70 per cent.

The remaining five states — Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim — do not have a gap in revenue on account of GST implementation, the statement said.

In addition to providing funds through the special borrowing window to meet the shortfall in revenue on account of GST implementation, the Centre has also granted additional borrowing permission equivalent to 0.50 per cent of Gross States Domestic Product (GSDP) to the states to help them in mobilising additional financial resources.

Permission for borrowing the entire additional amount of Rs 1,06,830 lakh crore (0.50 per cent of GSDP) has been granted to 28 states under this provision, the statement said.

Source: Financial-Express.

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GSTN issues Advisory on Auto-population of E-Invoice details into GSTR-1

GSTN issues Advisory on Auto-population of E-Invoice details into GSTR-1

The Goods and Services Tax Network (GSTN) has issued an advisory on Auto-population of E-Invoice details into GSTR-1.

From 1-10-2020, certain notified taxpayers have been issuing invoices after obtaining Invoice Reference Number (IRN) from Invoice Registration Portal (IRP) (commonly referred as ‘e-invoices’).

From 1-1-2021, the taxpayers with aggregate turnover above Rs. 100 Cr. had also started reporting invoices to IRP.

Details from the reported e-invoices are being auto-populated in respective tables of GSTR-1. Update on the same was last published on 30/12/2020.

A detailed advisory regarding methodology of auto-population of e-invoice details into GSTR-1 is already published on GSTR-1 dashboard.

It is observed that, while pulling the e-invoice data for the month of December, 2020 into GSTR-1, details of some invoices were not populated into GSTR-1. This inadvertent gap is being rectified on priority and details of those invoices will be pushed to GSTR-1 shortly.

However, taxpayers should not wait for the same and advised to proceed with preparation and filing of GSTR-1 for the month of December, 2020 (before the due date), based on actual data as per their records.

As already noted in the afore-mentioned advisory, the taxpayers may modify/delete only those documents where the details auto-populated from e-invoices are not as per the actual documents issued.

Otherwise, the details of e-invoices auto-populated in GSTR-1 can be edited/deleted by the taxpayer. However, in such cases, the ‘Source’, ‘IRN’ and ‘IRN date’ fields will be reset to blank in respective tables of GSTR-1 and accordingly won’t get reflected in GSTR-2A/2B/4A/6A also. Such edited documents will be treated as if they were not auto-populated but uploaded separately by taxpayer.

Other than the details auto-populated from e-invoices, taxpayers are required to add details of any other supplies made, in respective tables of GSTR-1.

An additional facility of consolidated excel download of all documents auto-populated from e-invoices is available in GSTR-1 dashboard. This file includes details of cancelled documents also.

However, any subsequent modifications made to the auto-populated documents (in GSTR-1 tables) would not be reflected in this excel file.

Source: TaxScan.

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Invoice Furnishing Facility (IFF) functionality now available on GST Portal

Invoice Furnishing Facility (IFF) functionality now available on GST Portal

The Goods and Service Tax Network (GSTN) has made available the new Invoice Furnishing Facility (IFF) functionality on the Goods and Service Tax (GST) Portal.

The Invoice Furnishing Facility (IFF) is a facility where quarterly GSTR-1 filers can choose to upload their invoices every month. A quarterly GSTR-1 filer is a small taxpayer with a turnover of up to Rs.1.5 crore.

The registered persons opting for the Scheme would be required to furnish the details of an outward supply in FORM GSTR-1 quarterly as per rule 59 of the CGST Rule. For each of the first and second months of a quarter, such a registered person will have the optional facility Invoice Furnishing Facility (IFF) to furnish the details of such outward supplies to a registered person, as he may consider necessary, between the 1st day of the succeeding month till the 13th day of the succeeding month.

The said details of outward supplies shall, however, not exceed the value of Rs. 50 lakh each month. The facility of furnishing details of invoices in IFF has been provided so as to allow details of such supplies to be duly reflected in the FORM GSTR-2A and FORM GSTR-2B of the concerned recipient.

There are various advantages attached to IFF namely buyers of goods from small taxpayers can claim ITC every month; the facility allows the monthly reconciliation of data and makes return filing easier; small taxpayers can increase their business by providing faster ITC claims and eases the compliance burden by reducing the volume of invoices to be uploaded at the end of the quarter.

The IFF is a facility similar to Form GSTR-1, and it allows filing of details of B2B invoices in following tables only.

The option to upload details in IFF can be availed till 13th of the subsequent month. Any invoices remaining to be furnished, can be filed using the IFF in the subsequent month IFF or in the quarterly Form GSTR-1. For e.g. for Apr-June qtr., B2B invoices for the month of April (M1) can be filed in IFF by a taxpayer till 13th May. Any IFF which is not filed till the due date of 13th of the subsequent month will expire.

Overall, this is a good move to help both small taxpayers and buyers from small taxpayers. This facility will indirectly help small taxpayers to enhance their business by providing faster ITC claims to their buyers.

However, this will increase compliance costs for them. Hence, one has to make a comparison between the benefit of opting for IFF and the cost involved. It is good to opt-in for this facility if a small taxpayer raises large volumes of B2B invoices when compared to B2C invoices in a quarter.
The end date for furnishing details of supplies of Goods or Services is February 13, 2021.

Source: TaxScan.


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GST E-Invoice System completed 3 months; Enabled more than 37000 Taxpayers to Generate more than 1680 Lakh IRNs

GST E-Invoice System completed 3 months; Enabled more than 37000 Taxpayers to Generate more than 1680 Lakh IRNs

GST e-invoice system, the game-changer in the GST system, has completed a journey of three months and has facilitated the smooth transition of the taxpayers to the new platform. It has enabled more than 37000 taxpayers to generate more than 1680 Lakh Invoice Reference Numbers (IRNs), during the last three months from the NIC developed e-Invoice system.

Starting with 495 lakhs during October 2020, the generation of e-Invoice has increased to 589 lakhs in November 2020 and 603 Lakhs in December 2020. Interestingly the e-way bill generation from the NIC (National Informatics Centre) developed e-way bill system is also highest from September to December 2020 compared to the same months of previous years.

The response of the system is good and the generation of IRNs is hassle-free during this period. However, there have been common errors such as repeated requests on the same document number, simultaneous requests on the same document number, requests with validation or calculation errors, etc.

Proactive measures are taken by the NIC Help desk, including communication with taxpayers about the issues through mails and telephonic calls and suggestion of corrective measures, has facilitated in bringing the errors down. NIC has also started sending daily updates to the generators of IRN about the number and value of the IRN generated by him/her.

The Government has reduced the aggregate turnover cut off to Rs. 100 Crores per annum for the generation of IRN by the taxpayers from 1st January 2021. NIC has already enabled the API and offline tool based sites for these taxpayers. NIC is also geared up with adequate infrastructure to handle the generation of e-invoices from these taxpayers from 1st January 2021. NIC portal facilitates the big taxpayers, whose turnover is more than Rs. 500 Crores, to enable direct API access to their suppliers and clients from their systems.

Keeping the requirements of small taxpayers in view, NIC has developed the offline Excel-based IRN preparation and printing tool, called a NIC-GePP tool for the small taxpayers. This application will allow the taxpayers to enter the invoice details, prepare the file to upload on the NIC IRN portal, download the IRN with QR code, and print the e-invoice with QR code.

Source: TaxScan.


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GST collection in December at all-time high with over Rs 1.15 lakh crore revenue

GST collection in December at all-time high with over Rs 1.15 lakh crore revenue

The Goods and Services Tax (GST) collection in the month of December as the month saw the collection of over Rs 1.15 lakh crore, the finance ministry said on Friday.

December 2020 saw a record high of over Rs 1.15 lakh crore in the GST collection revenue. In fact, the revenues for the month of December 2020 are 12 per cent higher than the GST revenues in the same month in 2019. In November 2020, the GST collection had crossed Rs 1 lakh crore mark.

The highest jump in the GST collection was witnessed in Dadra and Nagar Haveli, with a growth of 68 per cent year on year, the collection during the month of December 2019 was Rs 154 crore and in 2020, it stood at Rs 259 crore.

Tripura saw the second-highest jump at 25 per cent year on year basis. The Central GST stands at Rs 21,365 crore and the state GST is at Rs 27,804 crore.

For the month of December, the integrated GST stood at Rs 57,426 crore (including Rs 27,050 crore collected on import of goods) and cess at Rs 8,579 crore (including Rs 971 crore collected on import of goods).

The total number of GSTR-3B returns filed for the month of November up till December 31, 2020, is 87 lakh.

The government has settled Rs 23,276 crore to CGST and Rs 17,681 crore to SGST from IGST as a regular settlement. The total revenue earned by the central government and the state governments after regular settlement in the month of December 2020 is Rs 44,641 crore for CGST and Rs 45,485 crore for SGST.

The GST revenues during December 2020 have crossed Rs 1.15 lakh crore for the first time. The highest GST collection till now was Rs 1,13,866 crore in the month of April 2019. The December 2020 revenues are significantly higher than last month’s revenues of Rs 1,04.963 crore.

This is the highest growth in monthly revenues in the past 21 months. This has been due to the combined effects of the rapid economic recovery and the nationwide drive against the GST evaders and fake bills along with many systemic changes introduced recently, which have led to improved compliance.

Source: India-Today. 


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CBIC extends deadline for filing GST Annual Returns

CBIC extends deadline for filing GST Annual Returns

The Central Board of Indirect Taxes and Customs ( CBIC ) has extended the filing of GST Annual Returns ( GSTR-9 ) for the Financial Year 2019-2020 till February 28th, 2021.

Earlier, the due date was December 31. There have been demands to extend the date for two reasons: first, the pandemic, and second, the due date for annual returns for FY19-20 is December 31.

GSTR-9 is an annual return to be filed yearly by taxpayers registered under GST. It consists of details regarding the outward and inward supplies made/received during the relevant previous year under different tax heads i.e. CGST, SGST & IGST and HSN codes. Basically, it is a consolidation of all the monthly/quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) filed in that year. Though complex, this return helps in extensive reconciliation of data for 100% transparent disclosures. The late fees for not filing the GSTR 9 within the due date is Rs 100 per day, per act. That means late fees of Rs 100 under CGST & Rs 100 under SGST will be applicable in case of delay. Thus, the total liability is Rs 200 per day of default. This is subject to a maximum of 0.25% of the taxpayer’s turnover in the relevant state or union territory. However, there is no late fee on IGST yet.

Source: TaxScan.

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New GST rule is not applicable for MSMEs

New GST rule is not applicable for MSMEs

Micro, small and medium enterprises (MSMEs) do not require to pay minimum 1% Goods and Services Tax (GST) liabilities in cash as businesses with annual turnover of less than Rs 6 crore are exempted from the new rule, a finance ministry official said.

The Central Board of Indirect Taxes and Customs (CBIC) last week introduced a change in the GST rules that restricted the use of input tax credit (ITC) for discharging GST liability to 99%, the official said requesting anonymity. The move was aimed at curbing the misappropriation of ITC through fake invoicing, he said.

“In order to protect small businesses and genuine taxpayers there are some exemptions to this rule,” he said. The new rule is not applicable in such cases where registered entities have already deposited more than Rs 1 lakh as income-tax in last two years.

It is also not applicable to registered entities who have received a refund of more than Rs 1 lakh in the preceding financial year on account of export, he said adding that government departments and local authorities are also exempted from the rule.

“A legitimate business runs for profit and a minimum value addition is expected from them. It is only where a lot of fake credit is used that no tax payment in cash is made,” he said giving the reason behind implementing the new rule.

This rule will help to control fake invoices fraudsters who avail and pass on ITC by dummy, fake and dormant entities which show high turnovers, but have no financial credibility and flee after issuing fake invoices and misusing ITC, he added.

The new rule is the outcome of a through deliberation by the GST Law Committee to check the menace of fake invoices and misappropriation of ITC, he said. The government in November launched a nationwide drive to nab such fraudsters. “So far, 175 people have been arrested under the ongoing drive and more than 1,800 cases have been booked against over 8,000 fake entities,” he said.

Source: Hindustan-Times

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Businesses with monthly turnover of over Rs 50 lakh to pay at least 1% GST liability in cash

Businesses with monthly turnover of over Rs 50 lakh to pay at least 1% GST liability in cash

Businesses with monthly turnover of over Rs 50 lakh will have to mandatorily pay at least 1 per cent of their GST liability in cash, the Finance Ministry said as it moved to curb evasion by fake invoicing.

The Central Board of Indirect Taxes and Customs (CBIC) has introduced Rule 86B in Goods and Services Tax (GST) rules which restricts use of input tax credit (ITC) for discharging GST liability to 99 per cent.

“… The registered person shall not use the amount available in electronic credit ledger to discharge his liability towards output tax in excess of 99 per cent of tax liability, in cases where the value of taxable supply … in a month exceeds Rs 50 lakh,” the CBIC said.

While calculating the turnover threshold, sales from GST exempt goods and zero rates supply would not be included.

However, this restriction will not apply where the managing director or any partner have paid more than Rs 1 lakh as income tax or the registered person has received a refund amount of more than Rs 1 lakh in the preceding financial year on account of unutilised input tax credit.

Tax Partner Abhishek Jain said the government has put restrictions on seamless input credit utilisation with introduction of Rule 89B, which blocks utilisation of ITC beyond 99 per cent of the output liability, for businesses having taxable turnover of more than Rs 50 lakh per month.

“With the government providing reasonable exceptions to this rule, the idea remains to prevent misutilisation of credit by businesses taking fake credits,” Jain added.

Further, the CBIC has amended GST rules restricting filing of outward supply details in GSTR-1 for business that have not paid tax for the past periods by filing GSTR 3B.

So far, until now, non-filing of GSTR 3B resulted in blockage of e-way bill but will now result in GSTR 1 blockage as well.

Abhishek Jain, Tax Partner, said, “The government has now restricted filing of outward supply details in GSTR 1 return for businesses who have not paid tax for the past periods by filing GSTR 3B.

“The government’s idea here seems to be to curb input tax credit passing by businesses which have otherwise not paid their GST liability,” Jain added.
AMRG & Associates Senior Partner Rajat Mohan said, “These changes indicate that government is grappling with lower tax collections and high tax evasions, burden of which will again be on honest taxpayers”.

The CBIC has also notified authentication of Aadhaar number or physical verification of business premises for the purposes of obtaining GST registration.

“This amendment has likely been introduced to prevent fraudulent registrations,” Jain added.

Also, the validity of electronic way bill provisions has been amended by the CBIC according to which the e-way bill will be valid for 1 day for every 200 km of travel, as against 100 km earlier.

Source: Times-Of-India.


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