Browsed by
Tag: GST System

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

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

Comments 0 Comment

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.

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
GSTN
GSTN sets up panel to improve IT system

GSTN sets up panel to improve IT system

Comments 0 Comment

The Goods and Services Tax Network (GSTN) has announced setting up of a consultative committee to suggest ways to improve the functioning of its info-tech system.

The Committee will provide feedback and suggestions on new functionalities in the GST system and adoption of new IT tools. Members will include representatives of industry chambers such as CII and Assocham, traders body such as Confederation of All India Traders (CAIT) and professional bodies such as Institute of Chartered Accountants of India, besides others.

CAIT Secretary-General Praveen Khandelwal, who is also a member of the Committee, said that in order to secure the viewpoint of last-mile traders and to encourage easier compliance of the GST and to widen the tax base, it will be most appropriate if similar committees are also formed at State and district levels.

The terms of reference of the Committee include providing feedback on significant changes that have been brought in the system or when such changes in business process are contemplated, suggestions on new functionalities and new tools required, and, procedures and processes from the point of view of tax payers and tax consultants. The recommendation of the Committee will be mainly in two parts, one relating to technology and the other on policy.

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

AI, data analytics to track GST evaders, boost compliance

AI, data analytics to track GST evaders, boost compliance

Comments 0 Comment

The government plans to increase the use of artificial intelligence and data analytics to track down tax evaders, and improve compliance with the Goods and Service Tax in order to augment revenue.

Top tax officials are scheduled to participate in a brainstorming session to be chaired by revenue secretary Ajay Bhushan Pandey next week to firm up this plan.

“The revenue secretary will hold a day-long meeting on January 7 with tax commissioners to discuss ways to streamline the GST system and plug leakages due to fraud,” said a person aware of the development.

The discussions will include assessing the wider use of data analytics and AI in the process of enforcement and red-flagging tax evaders and fake refund claimants without overreach or harassment to genuine taxpayers.

The meeting comes on the heels of the government notifying changes to GST rules to prevent frauds and fake invoicing, besides setting up grievance cells to ensure that genuine taxpayers are not harassed and the overall tax base increases. The government last week reduced input tax credit to 10% from 20% of eligible credit if invoices or debit notes were not reflected in filings.

Last month, the Central Board of Indirect Taxes and Customs instructed field officers to expeditiously create GST grievance redressal committees at zonal and state levels.

Tax officials have been directed to identify cases of suppression of personal income, wilful tax evasion, fake invoicing or inflated or fake e-way bills, and take stern action.

Those attending the session will include state tax commissioners and chief tax commissioners from the Centre, senior officials of various tax bodies along with officers of the enforcement wings. Their goal is to develop a targeted approach to stop tax and duty evasion while making sure that no taxpayer is troubled.

There’s growing concern over revenue shortfall, with slowing consumption demand adversely impacting GST collections. The corporate tax cut amounting to a loss of revenue of Rs 1.45 lakh crore, along with recent GST compensation of over Rs 35,000 crore to states, have increased the stress on the Centre’s fiscal position.

Source: Economic-Times.

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

GST Input Tax Credit
Tech limitations cannot be ground to deny input tax credit under GST, says Delhi HC

Tech limitations cannot be ground to deny input tax credit under GST, says Delhi HC

Comments 0 Comment

The Delhi High Court has said that the rights of Goods & Services Tax (GST) assessees ‘cannot be subjugated’ to the poor and inefficient software systems adopted by the authorities. The ruling is likely to benefit assessees who suffer due to technical glitches.

“The software systems adopted by the respondents have to be in tune with the law, and not vice-versa. The system limitations cannot be a justification to deny the relief, to which the petitioner is legally entitled,” the court ruled in a matter related to denial of use of unutilised input tax credit (ITC).

Commenting on the ruling, Harpreet Singh, said the order is likely to have far reaching positive domino effect under GST. With increasing dependence on technology, it is a common occurrence that technical glitches impact the statutory filings or reflection of the right balances at the portal. “Post this order, dealers should be able to claim their rightful benefits/ dues without worrying about technological handicaps, so long as other statutory conditions are satisfied,” he said.

After the introduction of Goods & Services Tax, a special provision was made for credit accumulated under VAT, excise duty or service tax to be transited to GST. Barring registered dealer opting for composition scheme, all other assessees were given opportunity to avail themselves of the transitional credit. However, there were some conditions. First, the credit will be available only if the returns for the last six months, that is, from January 2017 to June 2017 were filed in the previous regime (VAT, excise and service tax returns had been filed). Second, Form TRAN 1 (to be filed by registered persons under GST, may be registered or unregistered under old regime) has to be filed by December 27, 2017, to carry forward the input tax credit. Third, Form TRAN 1 can be rectified only once.

Inaction of respondents

In a petition filed with the HC, the grievance of the petitioner was that due to the inaction of the respondents (State GST authority) and their failure to allow smooth migration of the credit standing in the account of unutilised input tax, the petitioner could not use and exploit the ITC while making exports in the months of July and August, 2017. Accordingly it was forced to shell out over ₹1.37 crore which would not have been the case, had it been able to utilise its ITC which had accumulated even prior to the enforcement of the GST regime.

The court heard both the sides and observed that the petitioner cannot be made to suffer on account of failure on the part of the respondents in devising smooth transition to GST regime w.e.f. July 1, 2017 from the erstwhile indirect taxation structure. “The business activity in the country cannot be expected to come to a standstill, only to await the respondents making the Good Services Tax system workable,” it said.

According to the court, the failure of the respondents in first putting a workable system in place, before implementing the GST regime, reflects poorly on the concern that they have shown to the difficulties that the trade faced throughout the length and breadth of the country. “Unfortunately, even after passage of over two years, the respondents have not remedied their omissions and failures by taking corrective steps. They continue to take shelter in the limitations in, and the inability of their software systems to grant refund, despite the same being justified,” the court said.

Source: The-hindu-business-line

Get Your GST Returns Filed Easily and
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.

GST return
New GST return forms to help authorities check tax evasion

New GST return forms to help authorities check tax evasion

Comments 0 Comment

Return forms proposed for the goods and services tax (GST) are set to put an end to one of the widely used methods for tax evasion—claiming a rebate for a tax that was not paid in the first place.

The new forms, set to roll out shortly starting with large businesses, will prevent companies from claiming any more tax rebate than what they are eligible for, going by invoices issued by the vendors. Under GST, which is a value-added tax system, only the amount of value addition, or margins claimed by businesses at any given point in the supply chain, is taxed. This is done by granting credit to businesses for taxes paid previously on raw material and services. The tax credit system under GST is an improvement over what existed in the pre-GST era, but it was not watertight, said, experts. The proposed new forms seek to close this gap.

The original date for businesses to compulsorily start filing the new form was 1 July, but it will be revised for a gradual rollout to avoid any disruption and to give small businesses more time to get on board. The final roll out schedule is likely to be decided when the GST Council meets next.

In the pre-GST era, when businesses paid excise duty, service tax and value-added tax (VAT), buyers could seek credits for taxes paid on raw material and services based on the hard copy of the invoice issued by the seller. Now, the seller has to upload details of the transaction, which gets reflected in what is called the buyer’s electronic credit ledger. However, utilizing this credit is based on self- declaration, which the authorities can verify subsequently. Once the new returns are introduced, the need for self-declaration and the mismatches between credits available as per transaction sales that the seller has uploaded in the tax portal, and what the buyer has claimed gets eliminated.

“Prior to GST roll out, there was no electronic way of checking whether the credit taken buy a business is correct. The current GST system is a much-improved version, wherein tax authorities can check electronically whether it is correct or not. In the revised return form, credit can be taken only to the extent the transaction details uploaded by vendors allow,” said Abhishek Jain, tax partner, EY.

Claiming false credit is one of the commonest ways to evade tax. The other ways include merchants collecting taxes from the end consumer, but not remitting it to the exchequer, as well as selling without invoices. Claiming credit wrongly on the basis of fake invoices has also been a major issue, given that by the time the fraud is detected, those involved would have shut shop and fled. The new form, however, does not mean that businesses will have to submit less information. “The (proposed) regular simplified return requires a whole lot of information, sort of a collation of what was asked in GSTR-1 (relating to sales), GSTR-3B (a summary of transactions) and some additional fields, too. But with the launch of this new mechanism, sellers will upload invoices continuously and buyers will accept/reject and pay tax accordingly,” said Archit Gupta, founder, and CEO, of an online tax platform.

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

Source: Live-Mint.
How to change or update e-mail, phone number in GST system

How to change or update e-mail, phone number in GST system

Comments 0 Comment

The government has introduced a new system to allow taxpayers to update email and mobile number in the GST GST PortalSystem. This was introduced as many have complained that “the intermediaries who were authorized by them to apply for registration on their behalf had used their own email and mobile number during the process”, the Finance Ministry said in a press release today.

The email and mobile number can be updated by the concerned Jurisdictional tax authority of the taxpayer as per the following procedure:

  • The taxpayer is required to approach the concerned jurisdictional Tax Officer to get the password for the GSTIN allotted to the business.
  • Jurisdiction can be checked through Search Taxpayer option available on https://www.gst.gov.in,. Allotted jurisdiction is displayed in red text
  • The taxpayer would be required to provide valid documents to the tax officer as proof of his/her identity and to validate the business details related to his GSTIN.
  • Tax officer will check if the said person is added as a Stakeholder or Authorized Signatory for that GSTIN in the system.
  • Tax officer will upload necessary proof on the GST Portal in support to authenticate the activity.
  • Tax officer will enter the new email address and mobile phone number provided by the Taxpayer.
  • After upload of the document, Tax officer will reset the password for the GSTIN in the system.
  • Username and Temporary password reset will be communicated to the email address as entered by the Tax Officer.
  • The taxpayer needs to login on GST Portal https://www.gst.gov.in/ using the First time login link.
  • After first time login with the Username and Temporary password that was emailed to him, system would prompt the taxpayer to change username and password. The said username and password can now be used by the taxpayer.
Source: The Economic Times