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GST e-invoicing to start from Oct 1, as planned: GSTN CEO

GST e-invoicing to start from Oct 1, as planned: GSTN CEO

The plan to introduce the e-invoicing regime from October 1 will not be postponed. This was revealed by GST Network (GSTN) CEO Prakash Kumar at Friday’s BusinessLine Knowledge Series webinar on ‘GST: Is it Really Good and Simple?’

While large companies are ready for this change, small and medium enterprises are not. This had raised hope that the new regime would be postponed.
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Kumar also said the GSTN, the IT backbone of the indirect tax system, will, from November, auto-populate the GSTR-3B returns of taxpayers. “The aim is, from November month returns filed in December, GSTR-3B will be auto-populated. First, we are doing this for monthly tax filers. The entire tax-paying community will be covered after that,” he explained.

Over one crore assesses are eligible to file GSTR 3B returns every month, which shows how much tax has been paid actually after deducting the Input Tax Credit (ITC). GSTR-1 is a monthly return (it can also be filed quarterly) on the outward supply statement and shows the quantum of liability. It is alleged that some assesses over-report ITC, which in turn results in lower tax payment.

GSTN recently started to generate GSTR-3B based on the GSTR-1 filed, Kumar said, adding that for two months PDF documents would be given to taxpayers so that people can check and inform the authorities of any error in the process or computation of tax or the ITC.

Source:thehindubusinessline

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CBIC waives off Late Fee on failure to furnish the return in FORM GSTR-10

CBIC waives off Late Fee on failure to furnish the return in FORM GSTR-10

The Central Board of Indirect Taxes and Customs (CBIC) waived off the late fee payable for failure to furnish the return in FORM GSTR-10.

As per section 47(1) of the CGST Act, any registered person who fails to furnish the requisite returns by the prescribed due date shall pay a late fee of Rs 100 for every day during which such failure continues. Such a fee is subject to a maximum amount of Rs 5,000.

A taxable person whose GST registration is cancelled or surrendered has to file a return in Form GSTR-10 called as Final Return. This is a statement of stocks held by such taxpayers on the day immediately preceding the date from which cancellation is made effective.

The Board waived the amount of late fee payable under section 47 of the CGST Act which is in excess of Rs.250 for the registered persons who fail to furnish the return in FORM GSTR-10 by the due date but furnishes the said return between the period from 22 September, 2020 to 31 December, 2020. The waiver comes in wake of COVID-19 pandemic to provide relief to the persons registered under Goods and Service Tax.

Source: TaxScan

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CBIC waive off Late Fee payable for failure to furnish the return in FORM GSTR-4

CBIC waive off Late Fee payable for failure to furnish the return in FORM GSTR-4

The Central Board of Indirect Taxes and Customs (CBIC) waived off the late fee payable for failure to furnish the return in FORM GSTR-4.

The board seeks to amend notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 73/2017– Central Tax, dated the 29th December, 2017, which says that failure to furnish GSTR 4 (Composition dealer’s return) on due date late fee revised to Rs. 25 per day and for nil return it is Rs.10 per day.

In the said notification, after the second proviso, the proviso, “provided also that late fee payable under section 47 of the said Act, shall stand waived which is in excess of two hundred and fifty rupees and shall stand fully waived where the total amount of central tax payable in the said return is nil, for the registered persons who failed to furnish the return in FORM GSTR-4 for the quarters from July, 2017 to March, 2020 by the due date but furnishes the said return between the period from 22th day of September, 2020 to 31st day of October, 2020,” shall be inserted.

In other words, the person who failed to furnish the return in FORM GSTR-4 for the quarters from July, 2017 to March, 2020 by the due date but furnishes the return between the period from 22th day of September, 2020 to 31st day of October, 2020 the payment is waived off.

Source: TaxScan

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CBIC extends due date of GST compliance of E-Way Bill in respect of goods sent/taken on approval for Sale/Return are removed before the Supply takes place

CBIC extends due date of GST compliance of E-Way Bill in respect of goods sent/taken on approval for Sale/Return are removed before the Supply takes place

The Central Board of Indirect Taxes and Customs (CBIC) extended the due date of GST compliance and validity of the e-way bill till October 31, 2020 in respect of goods sent/taken on approval for sale/return are removed before the supply takes place.

The Board seeks to amend notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 35/2020-Central Tax, dated the 3rd April, 2020.

The board seeks to amend clause (i) of the said notification to extend the due date of compliance which falls during the period from the 20th day of March, 2020 to the 29th day of June, to 30th day of June, 2020.

In the said notification, in the first paragraph, in clause (i), after the first proviso, “provided further that where, any time limit for completion or compliance of any action, by any person, has been specified in, or prescribed or notified under sub-section (7) of section 31 of the said Act in respect of goods being sent or taken out of India on approval for sale or return, which falls during the period from the 20th day of March, 2020 to the 30th day of October, 2020, and where completion or compliance of such action has not been made within such time, then, the time limit for completion or compliance of such action, shall stand extended up to the 31st day of October, 2020,” shall be inserted.

The Section 31(7) of the Union Territory Goods and Service Tax Act says, “where the goods being sent or taken on approval for sale or return are removed before the supply takes place, the invoice shall be issued before or at the time of supply or six months from the date of removal, whichever is earlier.”

Source: TaxScan.

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Pre-filled GST return form soon: GSTN CEO Prakash Kumar

Pre-filled GST return form soon: GSTN CEO Prakash Kumar

GST-registered businesses will soon get pre-filled Return form, GSTR-3B, GST Network Chief Executive Officer Prakash Kumar said on Monday.

“We are moving towards providing taxpayers with a pre-filled GSTR-3B form so that they can pay their taxes at ease. To start with, an option to edit the form would be provided to allow businesses to make past adjustments etc,” Kumar told PTI.

GSTN, which handles the IT backbone for Goods and Services Tax (GST) has already started providing tax liability data based on sales return GSTR-1 of the taxpayer to be used in his tax payment form GSTR-3B in pdf form.

It is also providing taxpayers auto-generated invoice-wise input tax credit (ITC) statements based on information furnished by the suppliers of the taxpayer.

Kumar said this essentially means that the taxpayer can know how much ITC is available for the month.

Currently, the liability and ITC are being provided as separate pdf documents.
After two months, these two sets of data will automatically start flowing in GSTR-3B return, Kumar added.

This is the first step towards connecting GSTR-1 which has business-to-business (B2B) invoice data along with data on exports, business-to-consumer (B2C) supplies etc and GSTR-3B, he said.

The move is expected to ease taxpayer hassle of copy-pasting various numbers from sales return form GSTR-1 to GSTR-3B.

“These functionalities have been done for monthly filers of GSTR-1 and functionality for quarterly filers will be introduced in due course,” Kumar said.

GSTN has over 1.26 crore registered taxpayers, out of which 1.07 crore are required to file GSTR-1 and GSTR-3B. Of the, 1.07 crore taxpayers, around 58 lakh file GSTR-1 on monthly basis, whereas remaining file at quarterly frequency.

However, all 1.07 crore taxpayers has to file a monthly tax return, GSTR-3B.

Source: Money-Control.

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

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GSTN enables Reconciliation Tool for matching GSTR-2B with Purchase Register

GSTN enables Reconciliation Tool for matching GSTR-2B with Purchase Register

The Goods and Services Tax Network ( GSTN ) has enabled the Reconciliation Tool for matching GSTR-2B (Auto-Drafted ITC Statement) with Purchase Register.

The GSTN has issued detailed advisory on using Matching Offline Tool
Matching Offline Tool v1.0

The Matching Offline Tool can be used to:
• View GSTR-2B (Auto-drafted Input tax credit (ITC) statement)
• Match GSTR-2B with Purchase register

To install the tool, please download, extract the zip file and run the Download

Your downloaded (Matching_Offline_Tool) zip file contains:
• GSTR2B_Matching_Tool_v1.0.exe (Application)
• Purchase Register Excel Template
• Readme
• User Manual
• Change History

Important!
• Before you extract and run the downloaded file, ensure that the file is not corrupted. How do I know that my file is not corrupt? Click here to know more.
• Go through the Readme document before you begin installation.
• Double-click on GSTR2B_Matching_Tool_v1.0.exe to install the offline tool.

What’s new v1.0(Released on 13/09/2020)
• Downloading the auto-drafted input tax credit (ITC) statement – GSTR-2B from the dashboard at GST Portal and opening the same in the Offline Tool for viewing.
• Importing the purchase register in the Offline Tool for matching with GSTR-2B downloaded from the GST Portal. Taxpayers will have to use Excel/csv template provided with the tool to prepare their purchase register and import the same in this Offline Tool.
• Comparing the auto-drafted ITC statement – GSTR-2B, downloaded from the portal and the purchase register using the ‘Matching’ tab provided in the tool to identify documents which are fully matched, partially matched or not matched.
System Requirement

To use the tool efficiently, ensure that you have the following installed on your system:

• Operating system Windows 7 or above. The tool does not work on Linux and Mac.
• Browser: You need one of these browsers installed on your system:
• Internet Explorer 10+
• Google Chrome 7+
• Firefox 45+
• Microsoft Excel 2007 & above
• Alternatively, for any below versions, the tool will open in a default browser.
• Before installation of Offline tool, ensure that you have 200 MB of free disk space in your local machine

Source: TaxScan.

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Good news for Taxpayers: Delinking of Credit Note/Debit Note with Original Invoice has been implemented on the GSTN portal

Good news for Taxpayers: Delinking of Credit Note/Debit Note with Original Invoice has been implemented on the GSTN portal

The De-linking of original invoices and credit and debit notes are incorporated on the GSTN portal. The same was amended vide CGST amendment Act, 2018 with the effect of February 1, 2019. However, the same is incorporated on September 14, 2020, on the portal.

After more than one and a half years of the amendment in Section 34 of the Central Goods and Services Act, 2017, Goods and Service Tax Network (GSTN) has finally enabled the facility to report consolidated credit or debit notes under GST in GSTR-1.

Section 34 of the Central Goods and Services Act, 2017, which deals with Credit/Debit notes under GST law, wherein a registered person has to issue two or more different credit or debit notes in respect of the multiple tax invoices raised in a financial year under GST.

For instance, Mr. X has issued five tax invoices in the month of September 2020, there are sale returns against these invoices for which he has to issue a credit note under GST.

The issue is whether Mr. X has to issue five different credit notes or he can issue a consolidated credit note for these 5 tax invoices.
Before the amendment under Section 34 Mr. X has to issue 5 credit notes, however, after the amendment, he may issue one consolidated credit note for 5 tax invoices in that particular financial year.

Before the coming up of this facility on the GSTN portal, a registered person needs to furnish the “Original date and number of the tax invoice” in order to report credit or debit note issued under GST in his GSTR-1.

The taxpayers especially selling through online platforms such as Amazon, Flipkart, Paytm, etc. claim this task to issue different credit or debit notes for different tax invoices under GST law a cumbersome compliance as they need to spend more time, money, and effort to maintain the records of credit or debit notes with meagre amounts.

After the facility to issue a consolidated/single credit note, against one or more tax invoices raised in a financial year, implemented on the GST portal, one can easily interpret that the GST portal does not ask for “original date and number of the tax invoice” as credit or debit note is delinked from original invoice on the common portal which in turn helps the taxpayers to report single credit or debit note in respect of the multiple tax invoices raised in one financial year in their GSTR-1.

However, despite the above amendment in the CGST Act, 2017, the GSTN portal did not have a functionality to link multiple invoices with a single credit note/debit note.

In this regard, the much-awaited de-linking of original invoices and credit/debit notes has now been allowed on the GSTN portal.

Source: TaxScan.

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GST Network issues FAQs on einvoicing scheme ahead of Oct 1 launch

GST Network issues FAQs on einvoicing scheme ahead of Oct 1 launch

E-invoicing will not be applicable for business-to-consumer supplies or import bills of entries, while special economic zone units, banking companies, insurers, goods transport agencies and passenger transport companies will be exempt from issuing them.

The GST Network issued clarifications through frequently asked questions on Monday, ahead of the October 1 launch of the scheme for businesses with more than Rs 500 crore turnover. The scheme will introduce a standard invoicing standard for all companies.

“Businesses will continue to issue invoices as they are doing now. Necessary changes on account of e-invoicing requirement to enable reporting of invoices to Invoice Registration Portals (IRP) and obtain Invoice Reference Number (IRN), will be made by ERP or accounting and billing software providers in their respective software,” the IT backbone provider of GST said.

Businesses will need to get the updated version having this facility, GTSN clarified. A dedicated mobile app to scan and verify validity of e-invoice quick response (QR) code will be provided by the government.

“These FAQs not only clarify the key doubts of the industry on the subject matter, but also throw light on the modus-operandi of e-invoicing system,” said Abhishek Jain, tax partner .

E-invoices will be needed for business to business transactions, for exports, credit and debit notes. Suppliers of services by way of admission to exhibition of cinematograph films in multiplex screens will also need e-invoicing.

E-invoicing will enable auto-reporting of invoices into GST return, auto-generation of e-way bills, facilitate standardisation and inter-operability leading to reduction of disputes among transacting parties, improve payment cycles, reduction of processing costs and thereby greatly improving overall business efficiency.

Source: Economic-Times.

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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 Council meeting postponed to October 5

GST Council meeting postponed to October 5

The GST Council meeting slated for September 19 has been postponed to October 5, sources said on Friday.

The 42nd meeting of the Council has been postponed since Parliament would be in session, they added.

The Centre had last month decided that the 41st and  42nd meeting of the Council would be held on August 27 and September 19. However, then the dates for the monsoon session of Parliament was not decided.

The October 5 meeting assumes significance as the Centre and states are at loggerheads over the issue of funding Rs 2.35 lakh crore GST collection shortfall.

Of this, as per Centre’s calculation, about Rs 97,000 crore is on account of GST implementation and rest Rs 1.38 lakh crore is the impact of COVID-19 on states’ revenues.

The Centre late last month gave two options to the states to borrow either Rs 97,000 crore from a special window facilitated by the Reserve Bank of India (RBI) or Rs 2.35 lakh crore from market and has also proposed extending the compensation cess levied on luxury, demerit and sin goods beyond 2022 to repay the borrowing.

Chief ministers of 6 non-BJP ruled states — West Bengal, Kerala, Delhi, Telangana, Chhattisgarh and Tamil Nadu — have written to the Centre opposing the options which require states to borrow to meet the shortfall.

Sources said till September 8, as many as 7 states have conveyed to the Centre about their choice of the options.

While Gujarat, Bihar, Madhya Pradesh, Karnataka and Tripura opted for borrowing Rs 97,000 crore, Sikkim and Manipur opted for the second option to borrow Rs 2.35 lakh crore.

The Centre on its part argued that the revenue accruing from GST compensation cess goes to the states and hence the Centre cannot borrow on the security of a tax it does not own.

For April-July, the GST compensation due to states stands at Rs 1.50 lakh crore.

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.

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  • Manage your GST and E-WayBill Software anytime anywhere using multiple devices

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Entire GST shortfall will be compensated, says Centre

Entire GST shortfall will be compensated, says Centre

States and Union Territories will get full compensation for the shortfall in GST collection this year, the Centre reiterated on Monday. It made it clear that it will be irrespective of the fact whether the shortfall is on account of GST implementation or on account of the Covid pandemic. “It has never been the stand of the Union Finance Minister that the loss of revenue due to Covid would not be compensated. The Central government has, time and again, committed that the entitlement of the States would always be for full compensation. The entire compensation on account of the shortfall in collection of GST will be paid and honoured,” a senior Finance Ministry official said.

Total GST revenue shortfall during FY 2020-21 is estimated at ₹3-lakh crore. Since collection through the compensation cess is likely to be ₹65,000 crore, the net shortfall could be ₹2.35-lakh crore. Out of this, based on 10 per cent nominal growth and other assumptions, the shortfall on account of GST implementation and pandemic are ₹97,000 crore and ₹1.38-lakh crore, respectively. The Centre has proposed two options for States – borrow ₹97,000 crore through a special window or borrow the entire ₹2.35-lakh crore from the open market.

According to sources, working out revenue shortfall on account of GST implementation is just a mechanism to assess how much of the shortfall should be met by borrowing and how much could be deferred. Borrowing for meeting the entire shortfall when the private sector is struggling to stand back on its feet could hurt them badly. If States go for option 1 and borrow ₹97,000 crore, it does not mean they will have to forego the remaining compensation. The remaining compensation will be paid to states after the above borrowing has been fully repaid. Therefore, “where is the doubt about the Centre not meeting its commitment,” asked the official.

Under the GST law, the compensation cess is a tax owned by the states and under Article 292 of the Constitution of India, the Centre can borrow on the security of its own taxes and resources which is Consolidated Fund of India. It cannot borrow in the security of the tax which it does not own, the official explained.

Source: thehindubusinessline.

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