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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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GST Network starts providing auto-drafted input tax credit statement to taxpayers

GST Network starts providing auto-drafted input tax credit statement to taxpayers

Goods and Service Tax Network (GSTN), the information technology backbone provider for GST introduced new return filing form which has auto-populated input tax credit.

The new form – GSTR 2B – has been activated for July 2020, and will be available for each month on the 12th day of the succeeding month.

“It is expected that GSTR-2B will help in reduction in time taken for preparing return, minimising errors, assist reconciliation & simplify compliance relating to filing of returns,” GSTN said in a statement Saturday.

The GSTR-2B will contain information on import of goods from the ICEGATE system, will have summary statement on all the ITC available and non-available under each section and have document level details of all invoices, credit notes, debit notes etc.

GSTR-2B will be generated for every registered person on the basis of information furnished by his suppliers in their respective GSTR-1, GSTR-5 (non resident taxable person) and GSTR-6 (input service distributor).

However, GSTN has clarified that GSTR-2B for the month of July has been made available on the common portal on trial basis, and feedback has been sought from taxpayers.

Abhishek Jain, Tax Partner, EY said, “There were discussions on these linkages from a long time and were awaited by both industry and Government. These linkages would definitely aid the Government in checking tax evasion and also help industry in verifying the credits proposed to be availed by them”.

“Auto-population of ITC based on new report GSTR-2B may impact the working capital of businesses to a great extent. Businesses would appreciate it if instead of making numerous changes on a piecemeal basis, tax authorities come with a list of comprehensive changes in one go finalized after suitable trade participation,” said Rajat Mohan, senior partner at AMRG Associates.

Meanwhile, two new tables have been inserted in GSTR-2A for displaying details of import of goods from overseas and inward supplies made from special economic zones (SEZ) units or developers.

The insertion will enable taxpayers to self-reconcile the taxes paid and the taxes reflected in the system online. taxpayers can view their bill of entries data which is received by the GST System (GSTN) from ICEGATE System (Customs). This has been enabled on trial basis for feedback.

Source: Economic-Times.

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Govt dumps new GST return system; to continue with modified version of existing one

Govt dumps new GST return system; to continue with modified version of existing one

The government plans to improve existing GST return filing system instead of rolling out a new model. The new system was supposed to be launched on 1 October this year. Yogendra Garg, Principal Commissioner, GST Policy at CBIC, while speaking at a webinar hosted by Assocham, said that the move is aimed at making compliance much easier.

The GST Network, the IT support of the GST regime, is working on modifying and improving the current returns and will soon announce an advanced version of the existing system.

They are going to introduce a new form GSTR 2B, which like the GSTR 2A will have details of purchases of the company or business with added information on input tax credits. The existing GSTR 1 form, which captures sales-related information, will be more detailed. The Form GSTR 3B, which gives the tax computation, will be auto-populated.

New features likely to be added in the new improved version of the existing return system include matching tool for comparison of GSTR 2A with purchase register, communication channel between buyer and seller, and an improved comparison table of tax liability and input tax credit (ITC) after incorporating ITC on IGST paid on imports.

The GSTN is also looking to reduce error on part of taxpayers by improving the process of linking GSTR1 with GSTR3B and GSTR2A data with GSTR3B for flow of ITC.

Meanwhile, Garg also said that the e-invoicing, a form of electronically-authenticated invoices, will be implemented from 1 October only for businesses with turnover of Rs 500 crore or more. Earlier, it was planned to implement e-invoicing for businesses with turnover of Rs 100 crore or more in a year.

Source: Business-Today.

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GST Network makes annual returns available online for composition dealers

GST Network makes annual returns available online for composition dealers

The GST Network (GSTN) has made the annual returns for composition tax payers available on the GST portal. Composition dealers are those with the annual turnover of Rs 1.5 crore and who opt for a flat tax rate in GST, but without input tax credit.

This will enable 1.7 million composition dealers to file their returns on an annual basis with effect from 2019-20. Prior to this period, the composition tax payers were required to file their returns every quarter. From 2019-20, only a statement is required to be filed in the relevant form.

The deadline for filing annual returns for the composition dealers for 2019-20 has been extended to August 31 this year.

Source: Business-Standard.

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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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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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SBI explains how turnover-based MSME definition will help GST mechanism, transparency and more

SBI explains how turnover-based MSME definition will help GST mechanism, transparency and more

Finance Minister Nirmala Sitharaman yesterday announced the change in the definition of the Micro Small and Medium Enterprise (MSME). For an MSME to be defined as a Small unit, FM Sitharaman raised its investment limit from Rs 5 crore to Rs 10 crore with a turnover of less than 50 crore. The State Bank of India (SBI) has hailed this decision to define the MSMEs from their annual turnover. SBI is of the opinion that under the new tax regime, turnover declared by GST registered MSME units can be easily verified through GSTN (Goods and Service Tax Network).

On how GST will become transparent in turnover-based MSME definition; Dr Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India (SBI) said, “The proposed definitional change for MSME is considered progressive and suitable because of the introduction of Goods and Services Tax (GST). Under the new tax regime, turnover details of enterprises are being captured by Goods and Services Tax Network (GSTN) and turnover declared by GST registered MSME units can be easily verified through GSTN. Hence, the turnover based definition would be transparent, progressive and easier to implement.”

Dr. Ghosh went on to add that as the lender will get 100 per cent credit guarantee on principal and interest which will save the capital of around Rs 25,000 – Rs 30,000 crore for banks (zero risk weights) and increase in credit disbursal which will translate into a direct credit growth of 20 per cent to the eligible accounts. As on March’20 around Rs 14 lakh crore is outstanding to the MSME sector, which translates into Rs 2.80 lakh crore immediate credit boost

Source: Zee-Business

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From 5.72 crore in Feb, e-way bills issued falls to 86 lakh in April

From 5.72 crore in Feb, e-way bills issued falls to 86 lakh in April

Even after the government repeated multiple times that all goods trucks are exempt from movement restrictions, their movement in April fell drastically to 15 per cent of what it was in February. The number in March fell by nearly 30 per cent compared to that in February.

Data of e-way bills issued — which is mandatory for transporting goods worth over Rs 50,000 — shows that even after the Centre allowed movement of all trucks and goods carriers on March 29, goods movement on the road has barely been able to bounce back since the nationwide lockdown was imposed on March 25.

GST Network data shows that against 5.72 crore e-way bills issued in February, only 86.09 lakh such bills were issued in April. These numbers include both inter as well as intra-state e-way bills. In March, when truck movement had nearly come to a halt, the total e-way bills issued were nearly 4.07 crore. In the first five days of May, 10.46 lakh bills have been issued. This means that from an average of 19.7 lakh e-way bills issued daily in February, the number slipped to 13.1 lakh daily e-way bills in March, then drastically to 2.87 lakh in April and 2.09 lakh for May so far.

However, it is important to note that the Centre had, in March, extended the validity of all e-way bills issued before March 24, due to the disruption caused by the lockdown. Usually, each e-way bill is valid for a day for a 100-km stretch of the truck’s journey.

The government, in a notification issued on May 5, extended all the e-way bills issued before March 24 till May 31. It had also extended the deadline to file Goods and Services Tax (GST) returns for entities with turnover of over Rs 5 crore by 15 days from the due date without payment of any late fee, interest and penalty. GST returns for transactions in March were to be filed by April 20, which was extended till May 5.

Even as almost all goods movement froze after the lockdown was announced, the government first clarified that movement of essential goods is allowed. Through another order on March 29, it allowed movement of all essential as well as non-essential goods.

In a letter to the chief secretaries of states, Union Home Secretary Ajay Kumar Bhalla clarified that “transportation of all goods, without distinction of essential and non-essential, have been allowed”, giving permission for trucks and goods carrier to move within the states and across states as well.

However, the GST Network data shows that not only has intra-state movement of trucks and goods carriers been severely hit, their movement between states has been affected even more.

While the inter-state e-way bills issued for February and March were about 40 per cent of the total e-way bills for these months, in April, the share of inter-state e-way bills in the total was just 28.3 per cent. Of the 86.09 lakh bills, inter-state e-way bills in April were only 24.43 lakh. For the first six days of May, inter-state e-way bills account for only 30.8 per cent of the total e-way bills.

Interestingly, the Centre is yet to disclose the GST collection figures for April. GST numbers for each month are usually released on the first day of the next month, but the government has deferred the release of the April GST figures. GST mop-up in March 2020 had slid below Rs 1 lakh crore to Rs 97,597 crore, an 8 per cent fall from the March 2019 collection of Rs 1.06 lakh crore.

Source: Indian-Express

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Extremely mobilised on GSTN project, working closely with GST Council: Infosys

Extremely mobilised on GSTN project, working closely with GST Council: Infosys

Infosys is “extremely mobilised” on the GST Network enhancement project and work is progressing at “full speed” even as a large segment of its employees are working remotely amid the nationwide lockdown, its CEO Salil Parekh said. Taxpayers were facing issues due to glitches on the GSTN portal. The portal of GST Network (GSTN), which provides the technology backbone for the goods and services tax (GST), is managed by Infosys.

“I think we’re extremely mobilised, working very closely with the GST Council. In fact, our Chairman Nandan (Nilekani) had met them. There’s a detailed plan that is also internally being developed, we are working towards it. There are some constraints obviously on procurement of some hardware and but as we come closer to July, we’ll have a sense on that basis in terms of the manpower deployment,” Parekh told .

He added that work is progressing at full speed, even amid lockdown situation that has forced majority of Infosys staff to work remotely.

“It’s at full speed, even in this remote working situation. And we’re making every attempt to make sure all of those discussions that we were part of, we are executing upon…As of now, we have everything fully mobilised,” Parekh said.

He added that there will be discussions around July to “make sure all the hardware pieces which need to be procured are fully available, given the supply chain constraints in the hardware”.

Last month, the finance ministry wrote to Infosys saying some of the problems highlighted as early as 2018 are still unresolved and failures month after month lead to genuine taxpayers “getting frustrated” and asked the Bengaluru-based company to provide a plan for quick resolution of glitches on the GSTN portal.

Infosys Chairman Nandan Nilekani had then made a detailed presentation to the GST Council for the transition into a better GST Network system and the requirement of hardware to enhance capacity for addressing the system-related issues that are being faced by taxpayers in the IT system. The Council had agreed to the demand for more skilled manpower and better hardware to enhance capacity and given time till July to improve the GSTN design.

Parekh said about 93 per cent of Infosys staff is now working remotely amid the lockdowns on account of the coronavirus pandemic.

Talking about getting staff back on premises, Parekh said that as lockdowns start to ease off, the company will have between 5 to 10 per cent of its employees on premises.

“…(When) things start to ease off, our first phase will be between 5 and 10 per cent, so it’s a very gradual moving back. Even with that, there will be a lot of attention on social distancing, in transport, even in the seating within the campus, some level of partitions between seating, different usage in terms of hygiene and safety within the campus. We putting in temperature checks,” he said.

He further noted that in some of the centres outside India, the company is undertaking a similar strategy.

“It will be in the range of 5-10 per cent in the first phase, and then we’ll see how that plays out what the situation with the lockdowns is. And then the next phase will kick in,” he said adding that currently many of its locations in India (like Pune and Bengaluru) are in the red zone classification.

IT companies like HCL Technologies and Tech Mahindra are continuing to allow staff to work from home (WFH) to ensure safety of employees amid the nationwide lockdown.

While home ministry guidelines had allowed IT-ITeS companies to operate with up to 50 per cent strength from April 20, many states including Karnataka and Uttar Pradesh have continued imposition of full lockdown.

Industry body Nasscom had also advised members to adopt a staggered approach and start with 15-20 per cent workforce in the first phase, and subsequently scale it up depending on the situation on ground.

About 90 per cent of IT employees and 70-80 per cent of BPO and small and medium businesses in the sector are estimated to be working from home to ensure business continuity.

Source: Economic-Times

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With 9% interest on delayed payment, taxpayers avoid deferring GST filings

With 9% interest on delayed payment, taxpayers avoid deferring GST filings

Many large taxpayers, those with annual turnover of Rs 5 crore or more, are not availing the extension for paying GST and filing returns as many of them find the 9 per cent per annum interest from the due date too exorbitant.

The government has, in order to lessen the compliance burden on businesses given the outbreak of coronavirus, extended the dates of filing GSTR 3B returns due in March, April and May 2020 to last week of June 2020. Usually, the date for filing returns for a particular month is 20th of the next month. So, for March, the date of filing returns in 20 April, and that for April is 20 May.

Those having aggregate annual turnover less than Rs 5 crore, no interest but late fee and penalty will be charged. But for those with turnover of Rs 5 crore or more, an interest at the reduced rate of 9 per annum from due date (against the current rate of 18 per cent) will be charged.

For businesses with large tax liabilities, delaying the tax payment by three months would mean a large interest outgo, and hence those taxpayers, who have sufficient cash-in-hand are planning to pay the taxes and file returns on time.

“The industry has taken a mixed approach on the delayed return filing, depending upon the cash flow situation. The comparison which is done is the 9 per cent interest (on late payment of GST) and the interest on bank loan. However, filings have slowed down on an overall basis,” says Ritesh Kanodia, partner.

But not all businesses are weighing options between paying interest on late payment of GST and interest on bank loan. For many SMEs with turnover of Rs 5 crore or more, the question is whether to pay the salaries or file GST returns.

Nidhi Goyal, managing partner, says: “Those SMEs which have enough cash flow to pay salaries would like to pay GST liabilities on time and save on the 9 per cent interest cost that they otherwise would incur.

Some businesses are also taking advantage of the fact that the load on GST Network, the IT backbone of the GST regime, will be somewhat less, and are finishing some of the compliances despite the extension of dates.

Rajat Mohan, partner in chartered accountancy, says unlike in normal times around the due dates, one invariably face problems in filing returns, right now the GST Network is working smoothly.

Rajesh Gupta, Co-Founder & Director, says: “Due to lockdown, business transactions have been reduced and left with only 10-20 per cent in total, so accordingly, the load on the network is less as compared to normal. So the network is working smoothly and helping taxpayers to work at home. It has enabled almost more than 20,000 registrations with 10-13 days of the first phase of lockdown.”

Source: Business-Today

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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.