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GST: CBIC notifies Schema for E-Invoice, SEZ units are excluded from E-Invoicing

GST: CBIC notifies Schema for E-Invoice, SEZ units are excluded from E-Invoicing

The Central Board of Indirect Taxes and Customs ( CBIC ) on Thursday notified the Schema for E-Invoice for implementing e-invoicing, a form of electronically-authenticated invoices, from October 1 only for businesses with a turnover of Rs 500 crore or more under GST.

The Government empowered under Rule 48(4) of the Central Goods and Services Tax Rules, 2017, on the recommendations of the Council, amended the Notification No.13/2020-Central Tax, dated the 21st March, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 196(E), dated the 21st March, 2020.

In the said notification, in the first paragraph, before the words “those referred to in sub-rules”, the words “a Special Economic Zone unit and” shall be inserted.

Further, for the words “one hundred crore rupees”, the words “five hundred crore rupees” shall be substituted.

As per the earlier notification, a certain class of registered persons (insurance company, banking company, financial institution, non-banking financial institution, GTA, passenger transportation service etc.) to be exempted from issuing e-invoices or capturing dynamic QR code. The Notification said that “an invoice issued by a registered person, whose aggregate turnover in a financial year exceeds five hundred crore rupees, other than those referred to in sub-rules (2), (3), (4) and (4A) of rule 54 of said rules, and registered person referred to in section 14 of the Integrated Goods and Services Tax Act, 2017, to an unregistered person (hereinafter referred to as B2C invoice), shall have Dynamic Quick Response (QR) code: Provided that where such registered person makes a Dynamic Quick Response (QR) code available to the recipient through a digital display, such B2C invoice issued by such registered person containing cross-reference of the payment using a Dynamic Quick Response (QR) code, shall be deemed to be having Quick Response (QR) code.”

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https://www.taxscan.in/preview/?previews=1gArKZxhrGvwLMSqbvth-I1Hi9SDPtsWS

Source: TaxScan.


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GST e-invoicing for businesses with Rs 500-cr turnover from Oct 1

GST e-invoicing for businesses with Rs 500-cr turnover from Oct 1

The government will notify a new GST e-invoice scheme under which businesses with turnover of Rs 500 crore and above will generate all invoices on a centralised government portal starting October 1, an official said on Thursday. Earlier, the turnover threshold for businesses was set at Rs 100 crore.

CBIC Principal Commissioner (GST) Yogendra Garg said the existing Goods and Services Tax (GST) return filing system would be improved further by incorporating the features proposed in the new system.

“Yesterday, the GST Implementation Committee has recommended that we will go ahead with October 1 deadline (for e-invoice)… To begin with we will not do it for Rs 100 crore and above, as we had notified. We will soon come out with a notification to make it Rs 500 crore from October 1 and as they stabilise, we will bring a date for Rs 100 crore turnover people,” Garg said at an Assocham event here.

The new turnover threshold would be notified by next week, he added.

The e-invoice was aimed at curbing GST evasion through issue of fake invoices. Besides, it would make the returns filing process simpler for businesses as invoice data would already be captured by a centralised portal.

In November last year, the government had said that from April 1 electronic invoice (e-invoice) would be mandatory for businesses with turnover of Rs 100 crore. Later in March 2020, the GST Council extended the implementation date to October 1.

The Council also exempted insurance, banking, financial instituions, NBFCs and passenger transport service from issuing e-invoice.

It had also decided to introduce the new GST returns filing system in phases between October 2020 and January 2021.

Garg said in the last 3 years of GST, there has not been a single month which saw returns being filed by all the businesses registered under GST.

About 70-80 per cent of GST registered businesses file returns within the due date.

“2019-20 has been a year of consolidation of compliance requirement…. We took a call that instead of introducing the new return system which we had promised, we will carry out improvement in the existing return system and take it closer to what we had promised in the new return system to make the certainty of credit,” he said.

Garg said the GST administration is working on a proposal to make a system available to businesses about how much input tax credit (ITC) is available with a taxpayer.

“The endeavour is to make life simpler for taxpayer. The vision for 4th year of GST is compliance burden gets reduced and e-invoice would help in this,” he said.

With regard to GST audits, Garg said central tax officers have been training state officers on the audit experience, some of the states had some good strategies which we are working on.

“To the extent possible these arre not going to be physical audits, these are more going to be desk audits,” he added.

Source: Economic-Times.

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CBIC gives nod to clear pending GST registrations under ‘special drive’ by July 30

CBIC gives nod to clear pending GST registrations under ‘special drive’ by July 30

In a move that will help in processing of a swathe of pending applications for goods and services tax (GST) registration, the Central Board of Indirect Taxes (CBIC) has issued directions to all field offices to clear all the pending applications by July 30 under a ‘special drive’. Applications which were pending till June 30, and have not been processed till July 15, will be granted deemed approval, while applications received from July 1, 2020 onwards and that remain pending till July 28, will be deemed as approved on July 31.

“The three days deemed approval of application of registration would be resumed from August 1, 2020,” the Board said in a communication to all principal commissioners and commissioners across various jurisdictions. ET has seen a copy of the communication issued on July 17 by the GST policy wing. “Accordingly, it is requested that all pending applications of registration be disposed of, on or before July 30 as a special drive,” the letter added. ET had written about the issue last month.

The move to fast track registrations follows that of complete stoppage as the government had decided against granting any deemed approvals for GST registrations since March 25 – the beginning of the lockdown to counter the spread of Covid 19 pandemic – for fear of possible misuse during the period where central or state tax offices were either closed or operating with skeletal staff.

Applications that would otherwise take only three working days to be processed were held up for months, as the government extended the lockdown for over two months till June 1, after which offices started to reopen. The Board has asked GST Network to provide a list of registration applications that got deemed approval during the lockdown period – because of technical glitches – to jurisdictional officers so as to conduct physical verification of business premises ‘wherever required.’

Source: Economic-Times.

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Govt blocks fraudulent GST refund claims worth Rs 1,875 crore

Govt blocks fraudulent GST refund claims worth Rs 1,875 crore

The government has blocked fraudulent Goods and Services Tax (GST) refund claims worth Rs 1,875 crore involving 1,377 exporters after their addresses could not be traced, a Union finance ministry official said.

“This number of risky exporters, also, includes seven exporters accredited as star exporters,” the official said requesting anonymity.

The government rates export houses on the basis of their performance and accord them one to five stars.

The Central Board of Indirect Taxes and Customs (CBIC) has instructed its officials to verify the correct refund of input tax credit (ITC) by such risky exporters on the basis of pre-defined risk parameters, he added.

According to the official, while CBIC is focusing on quick disbursal of pending refunds to exporters, it also uses data analytics to identify “risky” exporter entities that take input tax credit fraudulently and monetise it by paying Integrated Goods and Services Tax (IGST) and claiming a refund on that.

Imports of goods and services are treated as inter-state supplies and attract IGST.

“The verification exercise is aimed at preventing unscrupulous exporters from defrauding the state exchequer and bringing a bad name to the exporting community at large,” he said.

CBIC has, however, assured all genuine exporters that they would continue to get their refunds in a timely manner in a fully automated environment, he said.

The official said a total of 7,516 exporters figure in the risky exporters’ list to date. “IGST refund worth Rs 1,363 crore is suspended in respect of 2,830 risky exporters. Adverse reports have been received in respect of 2,197 risky exporters,” he added.

Source: Hindustan-Times.

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Govt extends FY20 GST return filing date for composition dealers till Aug 31

Govt extends FY20 GST return filing date for composition dealers till Aug 31

The government has extended the due date for filing annual return by composition dealers for 2019-20 till August 31.

The Central Board of Indirect Taxes and Customs (CBIC) issued a notification, extending the deadline for filing GSTR-4 annual returns for 2019-20 by composition dealers from July 15 to August 31.

GST composition scheme can be opted by any taxpayer whose turnover is less than Rs 1.5 crore. Under the scheme, manufacturers and traders are required to pay GST at 1 per cent, while it is 5 per cent for restaurants (which do not serve alcohol).

Source: Economic-Times.

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FM asks GST officers to proactively address issues faced by biz in tax compliance

FM asks GST officers to proactively address issues faced by biz in tax compliance

Finance Minister Nirmala Sitharaman on Wednesday asked GST officers to foresee the issues faced by domestic businesses and address them proactively so that they can compete on a global scale and build a self-reliant India.

In a message to tax officers on the third anniversary of Goods and Services Tax (GST), Sitharaman also said there is scope for easing compliance further for taxpayers, especially MSMEs.

Asking taxmen to focus on the clarion call by Prime Minister Narendra Modi for an ‘Atmanirbhar Bharat’, she said for this motto of self reliance tax, especially GST, administration will have a large role to play.

“We must foresee the issues faced by our business community and proactively address the same to enable them to compete on a global scale. Only by this proactivity can we ensure much needed economic growth in near future,” she said in the message on the occasion of GST Day, 2020.

GST, which subsumed over a dozen local taxes, was introduced on July 1, 2017. Since then the GST process has been simplified and return filing made easy especially for small businesses.

The GST administration has also introduced SMS-based return filing system for ‘NIL’ filers.

Sitharaman said more efforts are required to ease tax compliance further for taxpayers and made an assurance that the government is committed to continuing these reforms in future as well to facilitate taxpayers.

“We must strive to make the tax administration so simple that taxpayers find it easy to comply with all their tax obligations. This is the true essence of ‘ease of doing business’ as far as tax administration is concerned,” she said.

The Minister also said the COVID-19 pandemic has led to some disruptions in the economic activities in the country.

She also congratulated Central Board of Indirect Taxes and Customs (CBIC) and its officers for handholding taxpayers during this crucial time and disbursing record amount of refunds to ease their cash flow.

Source: Economic-Times.

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Nil Late Fee on GSTR-3B: System not Updated, Excess Amount would be re-credited soon

Nil Late Fee on GSTR-3B: System not Updated, Excess Amount would be re-credited soon

The Goods and Services Tax portal has today said that the system has not been updated according to the change in the late fee for the delay in GSTR-3B. The Central Board of Indirect Taxes and Customs ( CBIC ) has notified that late fees on GSTR-3B would be waived off with Nill Liabilities. In a Notification issued by CBIC said that, For the period from July 2017 to Jan 2020, which is prior to the COVID period, a lot of Return Filing has been pending. For all those who have no tax liabilities but who have not filed their returns between July 2017-Jan 2020, there will be zero late fees.

Responding to the new change, the portal today tweeted “the change in late fee amount made vide notification no. 57/2020 dated 30-06-2020 has been incorporated on the GST portal. Late fee paid in excess than prescribed in the notification shall be re-credited in due course.”

As per the notification, for the taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year, who fail to furnish the return in FORM GSTR-3B for the months of May 2020 to July 2020, by the due date but furnish the said return till the 30th day of September 2020, the total amount of late fee 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 for those taxpayers where the total amount of central tax payable in the said return is nil”. Small taxpayers whose aggregate turnover is up to ₹ 5 crores will be provided a waiver of late fees and interest if they file the form GSTR-3B for the supplies affected in months of May, June, and July 2020, by September 2020, no late fee or interest.

Source: TaxScan.

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CBIC waives off late fee on late GST return filing

CBIC waives off late fee on late GST return filing

The Central Board of Indirect Taxes and Customs (CBIC) has notified waiver of late fee, capping of late fee at Rs 500 in some cases, interest payable on late payments and extension of due dates for businesses to file goods and service tax (GST) returns for the Covid-19 impacted period, till October.

The decisions were taken by the GST Council on June 12.

Taxpayers who do not have any tax liability but were yet to file returns for the period from July 2017 to January 2020 – prior to the Covid period – no late fee will be charged, the notification issued Wednesday said.

For taxpayers having liability but not having filed their returns, they can do so with a late fee of maximum Rs 500, if returns are submitted by July 1, 2020.

Small taxpayers whose aggregate turnover is up to Rs 5 crore will be provided a waiver of late fees and interest if they file the form GSTR-3B for the supplies affected in months of May, June, and July 2020, by September 30, 2020, the notification added.

During Covid period of February, March and April 2020, interest rate on late return filings by small taxpayers with turnover up to Rs 5 crore, will be reduced to 9% from 18%, if returns of inward supplies are filed till September 30.

Taxpayers having aggregate turnover of up to Rs 5 crore in the previous financial year, whose principal place of business is in the states of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman, and the Nicobar Islands or Lakshadweep, the returns for August has to be filed by October 1, 2020.

For taxpayers with turnover more than Rs 5 crore, in Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh or Delhi, the return for August has to be filed by October 3, 2020.

Source: Economic-Times.


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New GST registrations hit by lockdown: Industry Insider

New GST registrations hit by lockdown: Industry Insider

New registrations under goods and service tax (GST) have been getting delayed to as much as 60 days or more during the lockdown period, compared to the regular turn-around time of about a week, said industry insiders.

While several applicants have faced delays going up to a few weeks, some of the applications filed before the lockdown began on March 25 are yet to be issued registration numbers. The issue, which is being faced by taxpayers across different states, has been raised by many businesses with the Central Board of Indirect Taxes and Customs (CBIC).

Besides new businesses starting up, interim resolution professionals (IRPs) or resolution professionals managing companies undergoing corporate insolvency resolution have been grappling with getting new registrations. Rules mandate IRPs to file for fresh registrations in all states where the company was earlier registered.

“Delay in grant of registration is acting as an active restraint for IRP/RP’s appointed under IBC laws, slowing the revival process for debt laden companies,” said Rajat Mohan, senior partner at AMRG Associates.

Last week, CBIC enabled a separate registration facility for IRPs on the GST portal.

According to officials, the delay in issuing new registration numbers has been due to far fewer number of tax officers across various jurisdictions having remote or virtual private network (VPN) access to process the applications.

“In many places the jurisdictional officers of the area where a business is situated are working from home, and may not have VPN access or digital signature certificates,” said an official, asking not to be named.

GST Network had said in April that it had provided secured access to over 1700 tax officers in 18 states and union territories to work remotely. Over 10,000 new registrations were issued between March 25 and April 3, it had said. GSTN did not respond to ET’s queries on new registrations post this period.

Source: Economic-Times.

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CBIC settles controversy over imposition of GST on directors’ income

CBIC settles controversy over imposition of GST on directors’ income

The Central Board of Indirect Taxes and Customs (CBIC) on Wednesday clarified that remuneration to directors — whatever name they are referred to as (independent directors or whole time directors) — would attract goods and services tax (GST) in case they are not employees of the concerned companies. GST will be imposed on them on a reverse charge mechanism (RCM). This way, CBIC has settled an ongoing controversy related to the matter due to conflicting rulings by the authority for advance rulings (AARs).

Normally, a person or entity providing services pays tax to the exchequer, and recovers it from the receiver of the service.

But under RCM, the receiver of the service pays the tax by deducting it from the service provider’s compensation. In case they are employees of companies, part of their remuneration would draw GST, while the other part will not attract it. The CBIC relied on the Income Tax Act for the purpose of GST.

While independent directors have to be from outside the company concerned, the whole-time directors could be company employees or those rendering services from outside.

It said part of the employee directors’ income, which is declared as salary in the books of companies concerned and tax is deducted at source (TDS) under Section 192 of the I-T Act, would not draw GST. However, that part which is declared as “other than salaries” and TDS is imposed under Section 194 (j) would draw GST. This remuneration would be treated as fees for professional or technical services.

The clarification came amid contradictory rulings of the authorities for advance rulings (AARs).

Amit Maheshwari, managing partner , said, “We were seeing contradictory AAR rulings on this matter and there was confusion in the minds of taxpayers on how to treat director remuneration. Linking it with the treatment under the I-T Act would result in consistency across both the laws, providing more certainty to tax payers.”

Abhishek Jain, partner,  said this clarification was sought for most businesses, especially on account of the contrary advance rulings and potential impact for businesses.

Earlier, the Karantaka AAR had ruled that remuneration of executive directors are not liable to GST since he is an employee of the company. It said non-executive directors will pay GST through RCM.

The order has stirred a controversy as other state AARs held that all directors are liable to pay GST.

In the case related to Craft, the Rajasthan AAR had ruled that the services rendered by a director to a company for which consideration is paid to him under any head is liable for GST under RCM. The situation would remain the same even when the director is a part-time director in another company. The AAR did not distinguish between executive director and non-executive director as was done by its Karnataka counterpart.

In a case relating to Consulting Engineers (India), the Karnataka AAR, in 2017, had also ruled that the consideration paid to a director in the form of remuneration is in relation to services provided by him or her to the company. Thus, the company is required to pay GST under RCM on remuneration paid to the director, it had held.

Source: Economic-Times.

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