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

January 4, 2021 admin Comments 0 Comment

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.

GST e-invoice system: 495 lakh e-invoices generated on NIC portal

November 4, 2020 admin Comments 0 Comment

Ministry of Electronics & IT has said that over 495 lakh GST e-invoices were generated on the NIC portal by 27,400 tax payers within the first month of introduction.

“Path breaking e-invoice initiative which completed one month on the 31st October, is poised to revolutionize the way businesses interact with each other. According to NIC, within the first month of introduction itself, more than 495 Lakh e-invoices were generated on the NIC portal by 27,400 tax payers. The e-invoice system, the game changer in the GST system, was launched on 1st October, 2020 for the businesses with aggregate turnover of more than Rs. 500 Crores in the financial year,” an official release said.

It will be yet another milestone in India’s journey in enhancing ease of doing business. The data captured by the Invoice Registration Portal will flow seamlessly to GSTR1 return of the tax payer in GST Common Portal (gst.gov.in), thus reducing the compliance burden, the release said.

Starting with 8.4 Lakh e-invoices on 1st October, 2020, the usage has gradually picked up and 31st October, 2020 saw generation of as many as 35 lakh e-invoices in a single day. This coupled with generation of 641 Lakh e-way bills during the month of October, 2020, (by far the highest in a month during two and half years of journey of e-way bill system), establishes the robustness of the system. As per the feedback received from the tax payers, the response of the system is good and generation of IRNs is hassle-free. Proactive communication by NIC Help desk with tax payers has helped them in finetuning their systems to reduce the errors.

Currently, there are three modes of generations of IRN in NIC system. First is the direct API interface of ERP system of tax payer with NIC system. Second is the API interface of ERP system of the tax payer through GSP with NIC system. Third is using the offline tool for bulk uploading of invoices and generating IRNs. Around 15% of the tax payers are using the offline tool for the IRN generations and 85% are integrating through API.

The Government is planning to reduce the aggregate turnover cut off to Rs 100 Crores for generation of IRN by the tax payers in coming days. NIC has already enabled the API and offline tool based trial sites for these tax payers and geared up with the required infrastructure to handle the generation of e-invoices from these tax payers.

Keeping requirements of small tax payers in view, who need to prepare 5-10 B2B invoices in a day, NIC is also developing an offline Excel based IRN preparation and IRN printing tool which will allow them to enter the invoice details, prepare the file to upload on NIC IRN portal, download the IRN with QR code and print the e-invoice with QR code.

Presently, the generation of IRN using API interface is allowed for businesses with aggregate turnover more than Rs 500 crores, GSPs and shortlisted ERPs. Now, direct access will be extended to the tax payers using E-way Bill API interface. Generally, the big businesses will enable their suppliers and clients to use their ERP/SAP systems for generation of invoices. Therefore, it has been decided to facilitate them to enable their suppliers and clients to use their integration channels.

Source: Zee-News

GST: E-Way Bill generation facility to be blocked for Taxpayers who failed to file GSTR-3B for 2 or more Tax period from Oct 15

October 13, 2020 admin Comments 0 Comment

The Central Board of Indirect Taxes and Customs ( CBIC ) has clarified that, E-Way Bill generation facility to be blocked for Taxpayers who failed to file GSTR-3B for 2 or more Tax period from Oct 15, 2020.

In terms of Rule 138 E (b) of the CGST Rules, 2017, the E Way Bill generation facility of a person is liable to be restricted, in case the person fails to file their GSTR-3B returns, for a consecutive period of two months or more.

The GST Council in its last meeting has decided that this provision will be made applicable for the taxpayers whose Aggregate Annual Turn Over (AATO, PAN based) is more than Rs 5 Crores.

Thus, if the GSTIN associated with the respective PAN (with AATO over Rs 5 Cr.) has failed to file their GSTR-3B Return for 02 or more tax periods, up to the month of tax period of August, 2020, their EWB generation facility will be blocked on the EWB Portal. Please note that the EWB generation facility for such GSTINs (whether as consignor or consignee or by transporter) will be blocked on EWB Portal after 15th October, 2020.

The CBIC also said that, To avail continuous EWB generation facility on EWB Portal, you are therefore advised to file your pending GSTR 3B returns immediately.

Source: TaxScan.

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

September 22, 2020 admin Comments 0 Comment

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.

GST reduced tax rates, doubled taxpayer base to 1.24 cr: Finance Ministry

August 24, 2020 admin Comments 0 Comment

The Finance Ministry on Monday said GST has reduced the rate at which people have to pay tax, helped increase compliance and doubled taxpayer base to 1.24 crore.

In a series of tweets, on the first death anniversary of former Finance Minister Arun Jaitley, the ministry said before goods and services tax ( GST), the combination of value-added tax (VAT), excise, sales tax and their cascading effect resulted in high standard rate of tax up to 31 per cent.

“It is now widely acknowledged that GST is both consumer and taxpayer-friendly. While the high tax rates of the pre- GST era acted as a disincentive to paying tax, the lower rates under GST helped to increase tax compliance,” the ministry said.

The number of assessees covered by the GST at the time of its inception were about 65 lakh. Now the assessee base exceeds 1.24 crore.

GST, which subsumed about 17 local levies, was rolled out on July 1, 2017. Jaitley held the finance portfolio in the first term of the Modi government since 2014.

“As we remember Arun Jaitley today, let us acknowledge the key role he played in the implementation of GST, which will go down in history as one of the most fundamental landmark reforms in Indian taxation,” the Ministry tweeted.

The multiple markets across India, with each state charging a different rate of tax, led to huge inefficiencies and costs of compliance.

“ GST has reduced the rate at which people have to pay tax. The revenue neutral rate as per the RNR (Revenue Neutral Rate) Committee was 15.3 per cent. Compared to this, the weighted GST rate at present, according to the RBI, is only 11.6 per cent,” the ministry said.

Businesses with an annual turnover of up to Rs 40 lakh are GST exempt. Initially, this limit was Rs 20 lakh. Additionally, those with a turnover up to Rs 1.5 crore can opt for the Composition Scheme and pay only 1 per cent tax.

“Once GST was implemented, the tax rate on a large number of items was brought down. As of now, the 28 per cent rate is almost solely restricted to sin and luxury items. Out of a total of about 230 items in the 28 per cent slab, about 200 items have been shifted to lower slabs,” the ministry said.

Also, the housing sector has been placed in the 5 per cent slab, while GST on affordable housing has been reduced to 1 per cent.

“All processes in GST have been fully automated. Till now 50 crore returns have been filed online and 131 crore e-way bill generated,” the Ministry added.

Source: Economic-Times.

GST Council To Explore Making E-Way Bills Must For Moving Gold Within States

August 17, 2020 admin Comments 0 Comment

A Group of Ministers has agreed that states can individually decide to make e-way bills mandatory for the movement of gold within their territory to check tax evasion.

The panel decided that if states want to implement the e-way bill mechanism for gold and precious stones, they can do so for intra-state movement of the commodity, Thomas Isaac, Kerala finance minister and head of the panel; and Bihar Deputy Chief Minister Sushil Modi, a member of group, told BloombergQuint.

Currently, inter-state movement of goods over Rs 50,000 requires an e-way bill but gold is exempt. Given tax evasion and smuggling of gold, the GST Council created a group of ministers to examine if implementing the e-way bill mechanism for gold and precious stones is feasible. GST on gold is levied at 3% while precious stones and diamonds are taxed at 0.25%-3% .

The legal changes required to make e-way bill generation compulsory for intra-state movement of gold, and a monetary threshold for gold will be worked out by the officials of Department of Revenue, Modi said. The proposal will then be taken to the GST Council for its final approval.

Isaac told BloombergQuint that a proper tax administration is needed for gold. States like Gujarat, known for gold and diamond industry, had reservations about data of transportation of gold and diamonds being revealed if e-way bill system is implemented as it tracks the transport of goods, he said.

The panel agreed to implement the system within a state and secrecy of movement of goods will be maintained, with only commissioner-level officials dealing with the information, Isaac said.

The panel was not in favour of making e-way bills mandatory for inter-state movement of gold as it’s “not feasible” and will complicate the system, Modi said.
E-way bill generation for inter-state movement of gold and precious stones may lead to security concerns as such consignments would be tracked, according to a government official.

Tax evasion in gold is rampant, and the government needs to come up with some framework to control it, Rajat Mohan, a partner at AMRG & Associates, told BloombergQuint. “Implementation of e-way bill system for intra-state movement of gold will help in restricting tax evasion as trade in the commodity mostly happens within a state.”

Besides, Isaac and Modi, the panel includes Gujarat Deputy Chief Minister Nitin Patel; Karnataka Home Minister Basvaraj Bommai; and Manpreet Singh Badal and Amit Mitra, finance ministers of Punjab and West Bengal.

The ministers have yet to submit their final recommendations to the GST Council, and will also explore if e-invoicing system—that’ll be implemented from Oct. 1—can be extended for gold, Modi said.

There’s a proposal to make e-invoicing and e-billing mandatory for jewellery shops, Isaac said. To check smuggling of gold, a reverse tax will be proposed on sale of the old yellow metal, he said. Currently, smuggled gold is sold as old gold, and a tax under the reverse-charge mechanism tax would mean the buyer will have to pay tax, for which he can claim credit, Isaac said. “This will help in keeping a check on smuggled gold that has doubled to about 2,000 kg in 2019-20.”

Source: Bloomberg-Quint

CBIC extends the validity of E-Way Bill till June 30, 2020

June 10, 2020 admin Comments 0 Comment

The Central Board of Indirect Taxes and Customs (CBIC) on Tuesday extended the validity of Electronic Way (E-way) (E-way) bills till June 30, 2020, for all those e-way bills which were generated on or before March 24, 2020, and had expired between the period from March 20, 2020, to April 15, 2020.

In the notification, in the first paragraph, in clause (ii), for the proviso, the “Provided that where an e-way bill has been generated under rule 138 of the Central Goods and Services Tax Rules, 2017 on or before the 24th day of March, 2020 and whose validity has expired on or after the 20th March, 2020, the validity period of such e-way bill shall be deemed to have been extended till the 30th day of June, 2020.” proviso shall be substituted.

This notification has come as a major relief to transporters and truckers.
Earlier, the government had extended till May 31st the validity of e-way bills, required for inter-state movement of goods worth over Rs. 50,000.
In the E-way bill system businesses and transporters have to produce before a Goods and Services Tax (GST) inspector e-way bill for moving goods worth over Rs 50,000 from one state to another.

Currently, e-way bills have a validity of 1 day for every 100 km. For over-dimensional cargo (ODC), like trucks, the validity is 1 day for every 20 km. The government had announced a country-wide 21-day lockdown beginning March 25 to contain the spread of coronavirus.

This notification shall come into force with effect from the 31st day of May, 2020.

Read More: https://www.taxscan.in/preview/?previews=1Q_wQz05O71N_Th8-yB5PiODfLy-mURpm

Source: TaxScan.

revenue collection from Goods and Services Tax (GST)

GST collections for April and May set to decline drastically

April 30, 2020 admin Comments 0 Comment

Goods and services tax (GST) collections are set to fall drastically in April and May with the number of electronic permits or e-way bills generated for transporting goods decreasing by close to 30% in March and by more than 80% in April sequentially, reflecting a general contraction in economic activities, according to official data.

E-way bills are required for transporting goods worth more than ₹50,000 within and across states. These enable officials to keep a tab on transactions without physically interfering with goods movement.

Businesses had generated only 6.7 million e-way bills from 1 to 27 April, against the 40.6 million generated in March, according to data available from GST Network (GSTN), the company that processes tax returns.

The estimated more than 83% fall in e-way bills generated in April is set to have a telling effect on the GST revenue to be collected in May, which is slated to be repo-rted on 1 June.

Businesses have time till the 20th of a month to pay taxes for transactions in the previous month. As such, May revenue is set to reflect the full impact of the drop in economic activities because of the lockdown.

Signs of the impact the lockdown had on March sales are also expected to be visible in the GST collections being made in April. This will get reported on 1 May.

The 40 million e-way bills generated in March reflect a 28.9% drop from the over 57 million e-way bills generated in February. One major reason is that the World Health Organization declared covid-19 a pandemic on 11 March.
In the April-March period of FY20, GST revenue collection grew by 3.8% to ₹12.2 trillion from the year-ago period.

Source: Money-Control

Covid-19: Govt extends e-way bill validity, defers restricted ITC under GST

April 6, 2020 admin Comments 1 comment

The government on Friday extended the validity of e-way bills and deferred the application of restricted 10 per cent input tax credit under goods and services tax (GST) giving relief to the industry dealing with supply and cash flow issues amid the coronavirus (Covid-19) induced lockdown.

The validity of e-way bills that were set to expire between March 20 and April 15, has been extended till April 30 to help companies facing supply-related issues with orders stuck in transit in most cases.

“Where an e-way bill has been generated and its period of validity expires during the period 20th day of March, 2020 to 15th day of April, 2020, the validity period of such e-way bill shall be deemed to have been extended till the 30th day of April, 2020,” the finance ministry said in a notification issued late evening on Friday.

Under the GST regime, e-way bill has to be generated if goods worth over Rs 50,000 are transported. An e-way bill is valid for up to 24 hours for a distance of 100 km, depending on the size of the vehicle. However, if the vehicle does not cover 100 km within 24 hours, another bill has to be generated. For every 100 km travelled, the bill is valid for one additional day.

The central board of indirect taxes and customs (CBIC) also deferred the application of 10 per cent restriction for availing input tax credit for February, to August, and rolling over the cumulative applicability to the month of September this year. The seven-month window will ease industry’s working capital and cash flow.

In order to plug evasion, the GST Council in had in December restricted input tax credit to 10 per cent of the eligible amount for an entity if its supplier has not uploaded relevant invoices detailing the payments made. It was tightened from 20 per cent introduced in October.

The GST collections fell below the Rs 1-trillion mark in March after a gap of four months, although disruption caused due to coronavirus-induced lockdown will only get captured in the subsequent months.

Source: Business-Standard

GST collection slips below Rs 1 trillion in March after four months

April 2, 2020 admin Comments 0 Comment

Goods and services tax (GST) collection fell below the Rs 1-trillion mark in March after a gap of four months, even as disruptions caused by the coronavirus-induced lockdown will get captured only in the coming months.
The numbers pertain to GST paid in February but collected in March, suggesting that collections might turn grimmer going forward.

The GST mop-up in March stood at Rs 97,597 crore, down 8.4 per cent on a year-on-year basis, the data released by the Ministry of Finance showed on Wednesday. The government had targeted a collection of Rs 1.25 trillion in March. GST collection grew by a meagre 3.7 per cent in the full fiscal year 2019-20.

The dismal collection in March is despite the stringent anti-evasion measures introduced by the government, including the blockage of e-way bill and restricting input tax credit to 10 per cent in the case of failure of invoice uploads by suppliers.

Already hit by an economic slowdown, the country went into a 21-day lockdown from March 24 to prevent the spread of Covid-19. All industries that were struggling have become non-operational, which will reflect in the April GST collection figures.

Kerala Finance Minister Thomas Isaac told Business Standard that the April numbers, which would essentially be transactions in March would only be about 15-20 per cent of the March figures.

Pratik Jain, partner, India, said, “It seems that many businesses may not have been able to pay GST because of liquidity issues being faced after the lockdown. As the second half of March 2020 has been significantly impacted due to the Covid-19 outbreak, collections in April are likely to be substantially lower.”

In a major relief for businesses facing lockdown due to coronavirus, the last date for GST return filing for March, April and May 2020 has been extended to June 30, with no interest, late fee and penalty, for companies with up to Rs 5 crore turnover and subsidised interest of 9 per cent, and no penalty or late fees for bigger companies.

M S Mani, partner, India, said it was necessary for businesses to conserve cash in order to enable resumption of operations once the lockdown ends. Hence, any deferral of the GST payment timelines by a few months would significantly assist them in this process, Mani said.

Central GST collection for FY20 at Rs 4.95 trillion fell Rs 18,188 crore short of revised estimates for the fiscal year. The finance ministry, in Union Budget 2020-21, had lowered the CGST collection target for FY20 to Rs 5.13 trillion from Rs 5.26 trillion estimated in July.

Of the Rs 97,597-crore revenue in March, the central GST collection stood at Rs 19,183 crore, state GST at Rs 25,601 crore and integrated GST at Rs 44,508 crore, which included Rs 18,056 crore collected on imports, the finance ministry said in a statement.

GST collection on domestic transactions witnessed an 8 per cent decline, while GST collection on imports posted a negative growth of (-)23 per cent, indicating the beginning of Covid-related supply and demand disruption.

In order to plug revenue leakages, the Council allowed blocking of input tax credit in the case of fraudulent invoices and blocking of e-way bills in the case of non-filing of returns for three straight months.

The Council in its meeting on March 14 deferred the new simplified returns and e-invoicing till October, which was to be launched from April 1. Meanwhile, in order to improve collections, the government is aiming to correct inverted duty structure. It raised the GST on mobile phones to 18 per cent from 12 per cent, bringing the rate on a par with the inputs.

Lower-than-expected revenues are also putting pressure on the Centre to compensate states for the revenue shortfall. The compensation cess collection stood at Rs 8,306 crore during the month, much smaller than the approximately Rs 14,000-15,000 crore compensation required by states on a monthly basis. States are up in arms with the Centre over a delay in payment of compensation dues and are planning to drag Centre to the Supreme Court.

Source: The-Business-Standard.

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

January 4, 2021 admin Comments 0 Comment

GST e-invoice system: 495 lakh e-invoices generated on NIC portal

November 4, 2020 admin Comments 0 Comment

GST: E-Way Bill generation facility to be blocked for Taxpayers who failed to file GSTR-3B for 2 or more Tax period from Oct 15

October 13, 2020 admin Comments 0 Comment

XaTTaX is Best GST Software, Simplify your Financial matters with GST eFiling Software for Return Filing & GST Billing Software in India.

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

September 22, 2020 admin Comments 0 Comment

XaTTaX is Best GST Software, Simplify your Financial matters with GST eFiling Software for Return Filing & GST Billing Software in India.

GST reduced tax rates, doubled taxpayer base to 1.24 cr: Finance Ministry

August 24, 2020 admin Comments 0 Comment

GST Council To Explore Making E-Way Bills Must For Moving Gold Within States

August 17, 2020 admin Comments 0 Comment

XaTTaX is Best GST Software, Simplify your Financial matters with GST eFiling Software for Return Filing & GST Billing Software in India.

CBIC extends the validity of E-Way Bill till June 30, 2020

June 10, 2020 admin Comments 0 Comment

XaTTaX is Best GST Software, Simplify your Financial matters with GST eFiling Software for Return Filing & GST Billing Software in India.

GST collections for April and May set to decline drastically

April 30, 2020 admin Comments 0 Comment

Covid-19: Govt extends e-way bill validity, defers restricted ITC under GST

April 6, 2020 admin Comments 1 comment

GST collection slips below Rs 1 trillion in March after four months

April 2, 2020 admin Comments 0 Comment