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Govt blocks GST e-way bill generation; move may impact 300,000 firms

Govt blocks GST e-way bill generation; move may impact 300,000 firms

Businesses of roughly 300,000 firms paying goods and services tax (GST) were likely impacted on Monday, as the government had blocked e-way bill generation for non-compliant assessees.

These businesses had not filed their monthly GST Return (GSTR)-3B for two consecutive months. The government had notified the rule last month as an enforcement measure amid subdued revenue collection.

The GST system has been grappling with low levels of compliance. Only 65-68 per cent of eligible GST filers file the GSTR-3B within the due date, the GST Network (GSTN) data shows.

“This month, the taxpayer will be alerted with a cautionary message while generating e-way bills, in case GSTR-3B for the past two successive months of the consignor/consignee GST identification number (GSTIN) has not been filed. From next month onwards, such GSTINs will be blocked,” the note had said.

The same has become operational from December 3.

According to the data by the GSTN, the information technology backbone of the two-year-old indirect tax regime, there are 2 million GSTINs that have not filed GSTR-3B for September and October. Of these 2 million GSTINs, 347,000 GSTINs (or 16.7 per cent) had transactions in the e-way bill system for September and October, which are learnt to have been impacted immediately.

“These firms were given enough warning last month that their e-way bill system would be blocked over non-compliance. Businesses not filing returns should not be allowed to move goods,” said a government official.

Firms in Odisha and West Bengal are learnt to have been severely affected with this move. Experts said this has put these businesses in peril.

“Due to slowdown and cash crunch, taxpayers are already struggling to survive. This measure will effectively mean halting business and will have negative consequences for taxpayers and the economy,” said Pritam Mahure, leader at Pune-based accountancy firm Pritam Mahure and Associates.

“Suppose, the supplier of goods has filed GST returns in time, but the person to whom he is selling goods i.e., purchaser of goods has failed to file GST returns, in that case, the supplier who is compliant will not be able to generate e-way bill as his recipient is non-compliant,” said Vishal Raheja, deputy general manager, Taxmann.

The e-way bill facility will get unblocked within three hours of payment of dues and filing returns.

GST Network to release new version of return filing interface on 22 October

GST Network to release new version of return filing interface on 22 October

GST Network (GSTN) will release improved version of GST return filing interface on 22 October with an aim to further simplify the process.

“Many of the suggestions were incorporated in version 2 which is in place right now. Version 3 is going to come on October 22 of this month,” GST Network CEO Prakash Kumar said at a seminar organised by IIT Delhi Alumni Association here.

GST Network provides IT infrastructure and services to central and state governments, taxpayers and other stakeholders for implementation of the GST.

Goods and Services Tax (GST) has reduced complexity in indirect taxation as its implementation has lowered the number of forms to be filed by businesses to just 12, from 495 under as many as 17 central and state laws in the pre-GST era, Kumar said. The indirect tax administration now shares data with the income tax department, a move that has helped in unearthing instances of tax evasion, he added.

Kumar said that income tax department confirms the range of turnover, not the exact data of tax payer, which has helped in detecting mismatches. At present, there are 12.3 million registered GST tax payers.

Speaking at the occasion, GST Council Special Secretary Rajeev Ranjan said that GST has also aided in cutting the logistics cost for businesses, while successive rounds of rate cuts in the new tax indirect tax regime reduced prices and helped keeping inflation under check.

GST has reduced the average tax incidence as well as prices, and was an important determinant in ensuring that inflation remained under control, he said.

“Prior to GST, about 14% of the total cost of goods accounted for logistics (in India), a large cost and friction in doing business, while it was 10-11% for Brazil, Russia, India, China and South Africa (BRICS nations) and 9-10% for developed countries,” Ranjan said quoting a 2014 study.

Now, logistics cost in India is about 10-12% of the value of goods, Ranjan said in his presentation.

“In pre-GST era, trucks used to cover about 225 kilometers a day and now it is 300-325 kilometers,” said Ranjan, adding that GST has ensured that there is no need to have a fragmented market.

Source: Live-Mint

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Important dates to remember for GST return filings

Important dates to remember for GST return filings

Filing of returns with the Government within stipulated dates is important for a taxpayer in order to avoid incurring any Interest and Penalty.

Forms GSTR-1 AND 3B are to be filled by a person registered under GST for each month other than the people who are registered under the composition scheme.

The important dates that should be remembered for filing GST returns are:

GSTR-3B is to be filed by all taxpayers and the last -date to file is 20th July 2019.

GSTR-1 is to be paid by taxpayers whose turnover is below Rs. 1.5 Crore and also not opted for Monthly Return. The last date to file is 31st July 2019.

GSTR-1 is to be paid by taxpayer s with turnover above Rs. 1.5 Crore or opted for Monthly returns. The last date to file is 11th July 2019.

GSTR-9 is an annual return and the last date to file is 31st August 2019.

For GSTR-9A, the annual return is to be filled by Composition Dealers and the last date of filing is 31st August.

GSTR-9C is a reconciliation statement to be filled by taxpayers with aggregate turnover exceeding Rs. 2 crore from July 2017 to March 2018. The last date to file it is 31st August 2019.

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Source: KNN-India
Traders’ body urges Centre to lower GST rate on auto parts, aluminium utensils

Traders’ body urges Centre to lower GST rate on auto parts, aluminium utensils

A traders’ body has urged the Finance Ministry to lower Goods & Services Tax (GST) on various items, including auto parts and aluminium utensils. These are among the 28 items that attract GST at the rate of 28 per cent, the highest slab rate.

This was part of a white paper, prepared and submitted by the Confederation of All India Traders (CAIT) to Finance Minister Nirmala Sitharaman. The paper presented views for simplification and rationalisation of the GST tax structure.

Praveen Khandelwal, Secretary General of CAIT, told reporters that he urged the Finance Minister to review items placed under different tax slabs under GST as many of the items are overlapping. “As a matter of policy, the tax rate of raw material should not be more than the tax rate of finished goods,” he said.

The white paper talked about simplifying Form GSTR 9 and 9C (Return Forms) as it demands information which was not prescribed earlier and hence traders are unable to comply with the same.

It also raised many issues such as Advance Ruling, Reverse Charge Mechanism, Rectification of GST Returns, clarification of jurisdiction of CGST & SGST, HSN code issues, Abolition of Form ITC-04, return of expired drugs to be treated as supply, etc. The CAIT also urged to reduce the tax rate for items like hardware, mobile covers, food items, dry fruits, ice cream, food grains, malt/cereal based health food drinks, paints, marble, used vehicles, two-wheelers, agricultural equipments, roasted chana, etc.

Simplify tax procedure

According to a statement issued by CAIT, Sitharaman assured its delegation that she will look into the issues raised by the traders’ body. The intention of the government is certainly to simplify the tax procedure so that more and more people can easily comply with the same.

The trading community being the last mile contact with consumers plays an important role in collection of the revenue and it will be ensured that no undue hardship is faced by traders. The Minister urged the traders to streamline their existing business formats and ensure timely compliance with the law. There is also demand for appointing GST Lokpal in each State and the Centre.

Digital payments

Talking about other issues related to traders in their day-to-day affairs, Khandelwal suggested that in order to encourage adoption & acceptance of digital payments, the bank charges levied on card payments should be subsidised by the government directly to banks and neither the traders nor the consumers should be charged any bank charges on card payment transactions.

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Source: The-Hindu-Business-Line
GST Council to implement changes in phased manner

GST Council to implement changes in phased manner

Big businesses will have to start filing goods and services tax (GST) returns in the new form before others, with the authorities planning a gradual approach for all future changes to the indirect tax system to avoid disruption when economic growth has slowed down.

The authorities were expected to adopt tough enforcement measures to shore up revenue receipts, especially with the two-year transition period for GST ending in June. However, the GST Council has decided that changes in the tax system and steps to enforce compliance have to be gradual to avoid a backlash. The priority for the Bharatiya Janata Party, which has been returned to power at the centre, is to stimulate the economy and avoid turbulence on account of taxation. The Union and state governments share voting rights in the council and cannot get decisions approved without each other’s support.

The council had in December recommended that the new returns should be adopted on a pilot basis from April and compulsorily by 1 July. It will soon finalize the details of the roll out of the new returns.

“A gradual and nuanced approach will be taken as far as changes to GST is concerned. The priority before the council is to roll out the new tax returns. The approach to improving compliance will be to utilize data to identify individuals and businesses with risk of revenue leakage in a non-intrusive manner,” a person familiar with the discussions in the council said on condition of anonymity.

The move is being made against the backdrop of the problems that businesses had faced initially in the GST regime that forced authorities to suspend or modify some of the self-policing features of GST and defer return filing deadlines several times. The focus on hand-holding businesses rather than enforcement in the transition phase, combined with tax rate cuts, led to the Union and state governments collecting ₹22,000 crore less than the targeted ₹12 trillion for FY19.

The authorities do not believe the answer to the shortfall is an aggressive enforcement. Stimulating economic growth, which has decelerated from 8.3% in the last quarter of FY18 to 6.6% in the third quarter of FY19 is a priority for the National Democratic Alliance government. “Some tightening of tax administration is already taking place in a non-disruptive way,” said the person cited above.

The centre recently authorized the income tax department to share details, including sales and profits, that businesses reported in income tax returns with GSTN, the company that processes GST returns, to scale up scrutiny, Mint had reported on 1 May.

The gradual approach also implies that future structural changes to GST, such as inclusion of jet fuel, petrol and diesel in GST, as well as convergence of the two standard rates of 12% and 18%, will be a slow process keeping in mind economic realities. There is unlikely to be any major GST rate reduction soon, considering the centre’s revenue requirements for welfare schemes at a time it has had to deviate from its fiscal consolidation road map.

Source: Live-Mint.

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Government to press the pedal for easier, simpler GST

Government to press the pedal for easier, simpler GST

With the launch of the Goods and Services Tax (GST) in July 1 2017, the government promised to create a common national market by dismantling fiscal barriers among states.

Two years later, it is still looking to reach a steady state with multiple rate changes, procedural irritants, complex tax filing systems and a five-tier rate structure.

With a massive mandate by its side, BJP’s new federal finance minister will have to move on not only hastening the process of simplifying GST but also building a consensus among states. GST collections largely remained below the monthly average of Rs 1 lakh crore. A major reason for this were several rate changes and the procedural complications that the GST Council has tried to address over the last one-and-a-half year.

In its manifesto, the BJP promised to ease GST-related processes if voted back to power. “To continue with the simplification of GST process by engaging in dialogue with all stakeholders; when compared to base year of 2015-16, GST revenue for all states have increased by 50% in three years,” the BJP said in its poll manifesto ahead of the elections.

Following the law, decisions about changes in GST are taken by the GST Council that is headed by the federal finance minister and state finances ministers as its members.

The Cement Manufacturers Association had been pitching for a cut in the GST to 18 per cent as it would boost infrastructure spending and create jobs, while reducing the costs of buying a house. However, a rate cut in cement to 18 per cent will lead to a loss of Rs 13,000 crore annually to the government.

Now it needs to be seen what the government takes up in its agenda for the first post-election GST Council meeting.

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Source: Money-Control.
GSTN releases prototype of a new simplified return filing system

GSTN releases prototype of a new simplified return filing system

GST Network on Wednesday released a demo tool for the new and simplified return filing form which will be launched sometime later in the year.

The prototype available on webportal gives stakeholders a feel of what the new return filing system will look like. GSTN also sought stakeholder feedback on the proposed offline tool.

It will allow users to use functionality such as drop down menus, invoice upload, upload of purchase register for matching with system created inward supplies.

In the proposed system of new GST return filing, a normal taxpayer would have to file form GST RET-1 (Normal) or Form GST RET-2 (Sahaj) or Form GST RET-3 (Sugam) on either monthly or quarterly basis.

Annexure of supplies (GST ANX-1) and Annexure of Inward Supplies (GST ANX-2) will be filed as part of these returns. All the outward supplies will be detailed in GST ANX-1 while GST ANX-2 will contain details of inward supplies auto-populated mainly from the suppliers’ GST ANX-1.

Suppliers will have to file a detailed return in form GST RET-1.

Businesses which make supplies to only consumers (B2C) have to file return form ‘Sahaj’. It includes details of outward supplies and inward supplies attracting reverse charge as well as summary of inward supplies for claiming input tax credit (ITC).

Besides, businesses making supplies to both businesses (B2B) and consumers (B2C) have to file returns form ‘Sugam’. It includes summary of supplies made and tax liability, summary of inward supplies for claiming ITC, along with details of interest due and tax payment.

Stakeholders can share their comments on ‘’, said GSTN, the company which handles the technology backbone of Goods and Services Tax (GST) regime.

The new return filing format would replace the current requirement of filing final sales return GSTR-1; and summary sales return GSTR-3B.

The GST Council in July last year decided that the simplified GST return forms — Sahaj and Sugam — would be rolled out on a pilot basis from April 1, 2019, while mandatory filing across the country would kick in from July.

However, the pilot project was deferred as the systems were not finalised.

EY India Tax Partner Abhishek Jain said, “with this prototype being released, implementation of the new simplified returns is expected to be a reality soon.

“The companies would now need to ensure appropriate modifications are executed to their ERPs, business processes, etc. for culling out information to be disclosed and eligibility of input tax credits.”

AMRG & Associates Partner Rajat Mohan said “users and developers are expected to use the interactive tool and give feedback on the prototype, allowing users to use various functionalities including uploading of invoices and purchase registers”.

XaTTaX: Cloud and On-Premises Based GST Filing Software For India

Source: Live-Mint

High Court issues notice to Centre and Delhi govt on ‘blocked credits’ under GST

High Court issues notice to Centre and Delhi govt on ‘blocked credits’ under GST

The Delhi High Court on Monday issued a notice to the Centre and the Delhi government on the issue of ‘blocked credits’ under the Goods & Services Tax (GST) regime. Such a mechanism is affecting hotels and malls.

The GST Act has a provision, under Section 16, for input tax credit (ITC), which helps businesses deduct the tax paid on inputs at the time of paying tax on output, thus lowering the tax paid in cash. However, this Section is subject to certain restrictions as laid down under Section 17 of the Act. These restrictions are also referred to as ‘blocked credits’.

The related Section says: “Where the goods or services or both are used by the registered person partly for the purpose of any business and partly for other purposes, the amount of credit shall be restricted to so much of the input tax as is attributable to the purposes of his business.”

The petition was moved by a firm building a five-star hotel in the Capital. It has been procuring multiple goods and services, including works contract services, for use in the construction of the property.

Denial of credit

The petition mentioned that by virtue of provisions under the Act, the input tax credit available on the procurement of goods and services or both, including works contract services used for the construction of the immovable property, is denied to the petitioner.

The denial of credit disregards that the property so constructed by the petitioner would be used by it for furtherance of business, it said.

The petition specifically talks about two provisions related with ‘blocked credits’. Section 17(5)(c) ITC shall not be available in respect of the “works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service”.

Similarly, Section 17(5)(d) says ITC will not be available for “…goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account, including when such goods or services or both are used in the course or furtherance of business.”

It was prayed before the court to quash and declare both the provisions as violating the fundamental right of the petitioner and, therefore, violation of Article 14 of the Constitution (equality before law).

According to Abhishek A Rastogi, partner at Khaitan & Co, who is arguing the matter in the Delhi High Court, the arbitrariness with respect to Section 17(5) of the CGST Act and the respective State Acts arises as these provisions intend to deny credit for construction projects while the objectives of the GST are completely different and provide for credits to the receiver when the output is in the course or furtherance of business. The impugned provisions have been challenged on the grounds of arbitrariness and vagueness of the phrase ‘on his own account’.

“The distinction between B2B (business to business) and B2C (business to consumer) transactions, especially for cases when the output activity is charged to GST, needs to be looked into to avoid tax cascading effect,” he said.

Source: The-Hindu-Business-Line.

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

E-Way Bill Solution: Comparison between Govt Portal vs XaTTaX

E-Way Bill Solution: Comparison between Govt Portal vs XaTTaX

Indians are blown away by GST implementation, with the complexities it brings along. Even though the government is providing the universally accessible E-WAY BILL portal for suppliers and transporters, it is not specific to one particular organization/company and needs customizations.

E-Way Bill Solution: Comparison between Govt Portal vs XaTTaX

Sailotech provides a simple and systematic one-stop solution software XaTTaX, accessible to specific organizational requirements. We enable faster data transfer but securing the same with requested/restricted access.

Sailotech presents you with a multi-layered GST filing & E-Way Bill – XaTTaX software that eases GST, which not only provides the most advanced features but is also much faster and user-friendly.

Difference Between Govt. E-Way Bill Portal & XaTTaX GST Software

Govt Portal XaTTaX GST Software
Duplicate Records Detailed Check Over Records and avoid duplication
Multiple Logins Integration of multiple logins
Data Loss Probability Security and Data Privacy
No Validation of JSON file JSON file Validation
 Reports Unavailable Reports of E way bills Generated
Time is taken to generate E Way Bill Generate E way bill while generating an invoice directly
Single bill printing and uploading of E-way bills Bulk printing, upload & fetch data of E-way bills
More – More Info –

List of all States Where Intrastate E-way Bill is Applicable:

Andhra Pradesh Arunachal Pradesh Assam
Bihar Chhattisgarh Gujarat
Haryana Himachal Pradesh Jharkhand
Karnataka Kerala Madhya Pradesh
Maharashtra Meghalaya Nagaland
Puducherry Rajasthan Telangana
Tripura Uttar Pradesh Uttarakhand

List of Union Territories Where Intrastate E-way Bill is Applicable:

  • Andaman & Nicobar
  • Chandigarh
  • Dadar & Nagar Haveli
  • Daman & Diu
  • Lakshadweep

Read More: All you need to know about EWay Bill System