GST e-invoicing welcome step for midsize firms but might be a challenge for micro, small units: FISME

GST e-invoicing welcome step for midsize firms but might be a challenge for micro, small units: FISME

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Mandating businesses with over Rs 50 crore turnover (midsize firms) to generate e-invoices is a welcome move but it might be a problem for micro, and small businesses who don’t invest much in technology and lack digital literacy, according to Animesh Saxena, President, Federation of Indian Micro and Small & Medium Enterprises (FISME). E-invoicing was earlier made mandatory under Goods and Services Tax (GST) law for business-to-business (B2B) transactions by businesses with a turnover of more than Rs 500 crore…

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E-invoice
Small firms face a daunting task as e-invoicing kicks in from April 1

Small firms face a daunting task as e-invoicing kicks in from April 1

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Come April 1 and e-invoicing will be mandatory for business-to-business (B2B) transactions for taxpayers having a turnover of over Rs 50 crore from April 1, 2021. At present, issuing electronic invoices is mandatory for businesses with a turnover of Rs 100 crore and more. E-invoicing replaces the physical invoice and will soon replace the existing eway bill system, and taxpayers will not have to generate separate e-way bills. The challenges However, small firms may find it challenging to comply with…

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GST Composition scheme GST
GST: Govt. issues Advisory on Opting-in for Composition Scheme for Financial year 2021-22

GST: Govt. issues Advisory on Opting-in for Composition Scheme for Financial year 2021-22

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The Goods and Services Tax Network (GSTN) has issued Advisory on Opting-in for Composition Scheme for Financial year 2021-22. How to opt-in for Composition Scheme: 1. The eligible registered taxpayers, who want to opt-in for composition scheme for the FY 2021-22, need to file FORM GST CMP-02 application, on or before 31st March, 2021, post login on GST portal. The taxpayers may navigate as follows: Log-in>Services > Registration > Application to opt for Composition Levy>Filing form GST CMP-02>File application under…

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GST ITC
GST technical glitches behind input tax credit frauds: CAG report

GST technical glitches behind input tax credit frauds: CAG report

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The Comptroller and Auditor General (CAG) of India has found that the goods and services tax (GST) system is prone to input tax credit (ITC) frauds due to complexity in the compliance system. “The originally envisaged system-validated ITC through ‘invoice matching’ had not been implemented. The complexity of return mechanism and technical glitches had resulted in roll-back of key GST returns, rendering the system prone to ITC frauds,” CAG said in its report submitted in Parliament on Wednesday. The GST…

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GST Input Tax Credit
Taxpayers can use ITC to discharge GST dues for March

Taxpayers can use ITC to discharge GST dues for March

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The Finance Ministry on Saturday said GST taxpayers can utilise the Input Tax Credit available in their credit ledger to discharge their GST dues for the month of March. “Taxpayers are free to utilise the Input Tax Credit available in their credit ledger, as permissible in law, to discharge their GST dues for the month of March, 2021 – the last month of this financial year,” the Central Board of Indirect Taxes and Customs (CBIC) said in a statement. Goods…

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GST Return
GST: ITC to be availed based on details available in FORM GSTR-2B, clarifies CBIC

GST: ITC to be availed based on details available in FORM GSTR-2B, clarifies CBIC

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The Central Board of Indirect Taxes and Customs (CBIC), via its Twitter, handle clarified that Input Tax Credit ( ITC ) can be availed based on details available in FORM GSTR-2B. The department was responding to an inquiry from one Mr. Rahul Modi, who asked whether the Goods and Service Tax Network (GSTN), whether ITC needs to be claimed as per 2A or 2B. “Many clients are filing their GSTR 1 after 12th of the months which gets reflected in…

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E-invoice
GST e-invoices spell end to sales under-reporting

GST e-invoices spell end to sales under-reporting

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The practice among small businesses of issuing ‘kacha bills’ or informal sales invoices to under-report turnover is likely to become a thing of the past with the government quietly extending the scope of e-invoicing to ever more businesses. The requirement of e-invoicing —live reporting of business-to-business transactions to a government portal—which is being applied to ever more small businesses is set to make it harder to keep their final retail sales under wraps as the wholesale purchases have already been…

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GST
Government plans to include GST in UPI QR code

Government plans to include GST in UPI QR code

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The government is looking at upgrading the QR code for UPI in such a way that it can incorporate the GST component and show the same separately. This will enable the government to come out with fiscal incentives for payments that are made digitally. The National Payments Corporation of India (NPCI) is working on UPI to enable this feature, CEO Dilip Asbe revealed. According to Asbe, when both ends of the payment are driven by software with information going to…

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GST
Mandatory to mention 4/6-digit HSN/SAC Code w.e.f. April 1, 2021

Mandatory to mention 4/6-digit HSN/SAC Code w.e.f. April 1, 2021

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The Central Board of Indirect Taxes (CBIC) issued Notification No. 12/2017-Central Tax dated June 28, 2017, to show specified digits of Harmonised System of Nomenclature (HSN)/ Service Accounting Code (SAC) Code on raising of tax invoices for supply of goods or services as under: Subsequently, the above notification was amended vide Notification No. 78/2020 – Central Tax, dated October 15, 2020 to mandate 4/6- digit HSN/SAC Code on supply of goods or services on the tax invoices w.e.f. April 1,…

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GSTN
Know 15 New Functionalities made available for Taxpayers on GST Portal from February 2021: GSTN

Know 15 New Functionalities made available for Taxpayers on GST Portal from February 2021: GSTN

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The Goods and Service Tax Network (GSTN) has enabled the new functionality for Taxpayers on GST Portal from February 2021. 1. Post TRN Login, Tracking of Registration Application Status: The Search ARN Functionality for Registration, post TRN Login (i.e. after TRN is generated by taxpayer/ applicant but has not completed the filing of registration application), has been enhanced for the taxpayers. They will now be displayed at various stages of Registration, with the current status of their application in green…

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