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GST: Relaxation to assessee whose GSTIN has been cancelled during Mar 15, 2020, to Mar 14, 2021

GST: Relaxation to assessee whose GSTIN has been cancelled during Mar 15, 2020, to Mar 14, 2021

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The Commercial Tax Department Chennai issued the instructions to all the territorial joint commissioners in respect of the exclusion of the period from March 15, 2020, to March 14, 2021, from the limitation period.

The Department has highlighted the Supreme Court’s observation, in view of the Global Pandemic Situation across the Country, took Suo Motu cognizance of the situation arising out of the difficulties faced by the litigants in filing petitions/applications/suits/appeals/all other proceedings within the period of limitation prescribed under the general law of limitation or any under special law and finally by way of an order dated March 8, 2021, has issued various directions.

In computing any period of Limitation, for any suit, appeal, application or proceedings, the period from March 15, 2020 till March 14, 2021 shall stand excluded. Consequently, the balance period of Limitation remaining as on March 15, 2020, if any shall become available with effect from March 15, 2021.

In cases where limitation would have expired during the period between March 15, 2020 till March 14, 2021, notwithstanding the actual period of limitation remaining, all persons shall have a limitation period of 90 days from 15-03-2021. In the event, the actual balance period of limitation remaining, with effect from 15 03-2021, is greater than 90 days, that longer period shall apply.

Under Article 142 of the Indian Constitution, the above Supreme Court order shall be applicable for the Taxpayers under GST Act, 2017 also and therefore, a proper officer defined under this Act is bound to act in accordance with the directions issued in the above Supreme Court order.

“The affected taxpayers, whose registration have been cancelled for non filing of returns during the period from March 15, 2020 to March 14, 2021, when approached the proper officer for Revocation of Cancellation of Registration after the prescribed period of 30 days, the said application was rejected by the proper officer on the ground that the limitation period prescribed by the Act had already expired,” the department said.

Hence, all the taxpayers whose applications have been rejected by the proper officer for the above said reasons approached the DC, GST Appeals and obtained order of Revocation of cancellation.

The Proper officer, being a quasi-judicial authority and Deputy Commissioner, GST Appeals, Joint Commissioner, GST Appeals being judicial authorities are also bound by the order of the Supreme Court and hence, for the purpose of revoking the cancellation of Registration issued under GST Act, 2017, various instructions are issued.

Source: TaxScan.

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Offline version for GSTR-4 launched on GST portal
Few more days to file your GST Annual Return Form GSTR-4: Know Complete details

Few more days to file your GST Annual Return Form GSTR-4: Know Complete details

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The last date of Annual Return Form GSTR-4 is April 30, 2021, so file your annual return without a late fee.

The GSTR-4 is a GST Return that has to be filed by a composition dealer. Unlike a normal taxpayer who needs to furnish 3 monthly returns, a dealer opting for the composition scheme is required to furnish only 1 return which is GSTR 4 once in a year by the 30th of April, following a financial year.

Salient Features of GSTR 4 Return Form

Firstly, GSTR 4 Returns will file on an annual basis for compounding Taxable persons. The last date for filing the GSTR- 4 (CMP-08) payment form is the 18th of the month following the quarter. GSTR 4 (CMP-08) returns can be filed on 18th April, 18th July, 18th October, and 18th January, and so forth.
Secondly, GSTR 4 Form is filed by all the taxpayers who registered under the composition scheme.
Thirdly, business entities registered under the composition scheme will be required to pay taxes at fixed rates quarterly without availing input tax credit facility.
Fourthly, the taxpayer will be required to show the total value of supplies made in a specific period and tax paid at the composition rate.
Fifthly, the taxpayer will be required to insert invoice- level purchase details for the purchases from normal taxpayers, which will be automatically updated GSTR 4A Form from supply invoice uploaded by the opposite party in GSTR 1.

Procedure for filing GSTR 4 Return Form

GSTR 4 return form is divided into 13 sections but it is not necessary to fill all these sections.
1.GSTIN
Every Taxpayer gets a state-wise PAN-based 15 digit Goods and Services Taxpayer Identification Number (GSTIN) from the Government. It must be noted that the identification of the taxpayer will be automatically filled at the time of filing return in the coming future.

2. Legal Name of the Registered Person and Trade name
The taxpayer name will automatically fill time of filing the returns at GSTN portal

3. Annual Turnover in the preceding Financial Year
A taxpayer will be required to fill all the information only for the first time of filing and after then it will be automatically updated in the succeeding years.

4. Inward supplies including supplies on which tax is to be paid on reverse charge
Inward supplies received from a registered supplier (other than supplies attracting reverse charge), the information will be auto-populated from the provided by the supplier in GSTR-1 and GSTR-5. Inward supplies received from a registered supplier (attracting reverse charge- this information will be automatically filled from the information provided by the supplier in GSTR-1, inward supplies received from an unregistered supplier, and Import of service. It must be noted that all inward supplies to composition will auto-filled here.

5. Amendments to details of inward supplies furnished in returns for earlier tax periods in Table 4
It will include amendment information mentioned in earlier tax periods and also original amendments of debit or credit note received, rate-wise. Place of supply to be mentioned in case if the same is different from the location of the recipient. While providing the information of the original debit /credit note, the details of the invoice must be provided in starting three columns, whereas, providing the revision of the details of the original debit /credit note shall be provided in the first three columns of Table.

6. Tax on outward supplies made
Under this section, you will provide the details of a tax rate, total turnover, out of turnover reported, and the composition tax amount including both central tax & State/UT tax.

7. Amendments to Outward Supply details furnished in returns for earlier tax periods in Table No. 6
Under this section, you will be able to rectify the incorrect details you provided in Table 6 in previous returns, without turnover reported details additionally added.

8. Consolidated Statement of Advances paid/Advance adjusted on account of receipt of supply
Under this, details of the advance paid relating to reverse charge supplies and if you paid taxes on them, adjustments against invoices issued to be mentioned in Table 8.

9. TDS Credit received
The Tax Deduct at Source will be auto-filled in Table 9.

10. Tax payable and paid
Under this section, you will be to provide the details of Integrated Tax, Central Tax, State/UT Tax, and cess tax amount payable as well tax amount paid

11. Interest, Late Fee payable and paid
This section for those taxpayers who have not paid the taxes timely.

12. Refund claimed from Electronic cash ledger
If in case the tax liability of the composition dealer is below than the TDS deducted, he can get a refund of balancing amount. The amount which is available for the refund will auto-filled under this section.

What happens after Form GSTR-4 (Annual Return) is filed?
After Form GSTR-4 (Annual Return) is filed:
1. ARN will be generated on successful filing of the Form.
2. An SMS and email will be sent to the mobile number of the authorized signatory on the successful filing of Form GSTR-4 (Annual Return).
3. Electronic Cash Ledger and Electronic Liability Register Part-I will get updated.

Late Fees and Penalty
A late fee of Rs. 200 per day is levied if the GSTR-4 is not filed within the due date. The maximum late fee that can be charged cannot exceed Rs. 5,000.

Source: TaxScan.

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GST
Know 12 New Functionalities made available for Taxpayers on GST Portal

Know 12 New Functionalities made available for Taxpayers on GST Portal

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The Goods and Service Tax Networks (GSTN) has made available new functionalities pertaining to registration, returns, audit, front office, and Webinars Conducted for Taxpayers on GST Portal.
1. Assignment of new applications of registration, in certain cases, with same PAN and in same State/ UT
New registration applications of the applicants, whose previous application for registration were either rejected by Tax Officer or whose GSTIN was cancelled (either suo-moto or if surrendered by the taxpayer), will now be assigned to the respective authority of the State or Centre (who have earlier rejected the same), whenever these applicants/ taxpayers apply for registration under the same PAN and within the same State/ UT.
• Aadhaar Authentication enabled for Persons/ applicants applying for GST registration through MCA portal in SPICe -AGILE Form
The persons/ applicants applying for new registration in GST, through MCA portal in SPICe -AGILE Form, can now opt for Aadhaar Authentication (while applying for registration).
• Disabling entering Aadhaar number by Taxpayers/Applicants in registration application
The field for entering Aadhaar number has been disabled for Taxpayers in two scenarios.
Firstly, while adding Authorised Signatory/Authorised Representative through Non-Core amendment of registration.
Secondly, while adding Promoter/ Partner through Core amendment of registration.
The Applicants/ taxpayers adding details of Authorised Representatives in the New Registration application.
• Selection of Core Business Activity by existing Taxpayers on the GST Portal
The existing taxpayers have been provided with a functionality on the GST portal to select their core business activity. They can select one of the categories as their core business activity, based on their turnover namely Manufacturer, Wholesaler/Distributors/ Retailers, and Service Providers and others
• Reset button enabled on GST Portal for Form GSTR–1/ IFF
Normal taxpayers, irrespective of their filing profile (of quarterly or monthly), have now been provided with a RESET button on the GST Portal, in Form GSTR-1/IFF. This will enable them to delete the entire saved data, for the specific return period, but not yet submitted or filed their Form GSTR-1 or Invoice Furnishing Facility (IFF).
• Reporting and paying interest & other amounts, in Form GSTR-5A by OIDAR registrants
A person registered as OIDAR can now declare interest and any other liabilities in Table 6 i.e. Interest or any other amount of their Form GSTR 5A and discharge it through Electronic Cash Ledger.
• Download of Table 5 data, after filing, enabled for Form GST ITC-04
The registered manufacturers who are required to file quarterly Form GST ITC-04 (to furnish details of inputs or capital goods, sent to a job worker without payment of tax), can now download the data of Table 5 of Form GST ITC-04 (on the GST Portal), after filing the Form, when there is change in the state code, due to merger or creation of a State/ UT. This is to download data, when there is change in State/ UT code, before the goods are received back.
• Filing of refund application in Form GST RFD-01, by exporter of services, in cases of Foreign exchange fluctuations
The system earlier validated the refund amount claimed by the exporter of services (with payment of tax), against the proceeds realised (against exports, as submitted by the claimant in form of FIRC). If the value realised mentioned in BRC/FIRC column, was less than the refund amount claimed, then such taxpayers were not allowed to file their refund application on GST Portal. This validation has now been removed and taxpayers will be able to file refund applications now in such cases (As the value realised in BRC/FIRC may fluctuate due to foreign exchange fluctuations and net realisation may be less than the refund amount).
• Audit related functionalities made available to taxpayers
All notices and reports issued by tax officials will be available to taxpayers under ‘Additional Notices and Orders’. Taxpayers can reply to the audit notices and can upload documents. Taxpayers can accept/reject/pay the liabilities, discrepancy-wise, as outlined in the Notice for Discrepancies or in Addl. Notice for Discrepancies (if any) or in Audit Report (Form GST ADT-02). Taxpayers can apply for Adjournment or for extension of the date of Audit to the tax officer.
1. Status of Aadhaar authentication or E- KYC verification of a GSTIN in search taxpayer functionality
In the Search Taxpayer functionality (both pre-login and post login), the user will now be shown status of Aadhaar authentication or E-KYC verification of the searched GSTIN.
1. Change in label and functionality of HSN / Service Classification Code Tax Rate search
The label for “Search HSN / Service Classification Code Tax Rate” has now been changed to “Search HSN Code”. The functionality also has been enhanced wherein if the user searches for an item or a HSN code, the output is displayed systematically under the associated Chapter head, the description of the keyed- in HSN code and also other associated HSN codes (all hyperlinked) along with it. (Services> User Services > Search HSN Code).
1. Webinar
The Webinar on e-Invoicing for Taxpayers especially for those who are going to start e-invoicing from March 1, 2021 onwards.

Source: TaxScan.

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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.

GST invoice
CBIC clarifies Applicability of Dynamic QR Code on B2C Invoices

CBIC clarifies Applicability of Dynamic QR Code on B2C Invoices

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The Central Board of Indirect Taxes and Customs (CBIC) notified the clarification in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance of notification 14/2020- Central Tax dated 21st March 2020.

The Notification No. 14/2020-Central Tax, dated 21st March 2020 had been issued which requires Dynamic QR Code on B2C invoice issued by taxpayers having aggregate turnover more than 500 crore rupees, w.e.f. December 1, 2020.

Further, vide Notification No. 89/2020- Central Tax, dated 29th November 2020, penalty has been waived for non-compliance of the provisions of Notification No.14/2020 Central Tax for the period from 1st December, 2020 to 31st March, 2021, subject to the condition that the said person complies with the provisions of the said Notification from 01st April, 2021.

The Board has received various references from trade and industry seeking clarification on applicability of Dynamic QR Code on B2C (Registered person to Customer) invoices and compliance of Notification No. 14/2020-Central Tax, dated 21stMarch, 2020 as amended.

The issues have been examined and in order to ensure uniformity in the implementation of the provisions of the law across the field formations the Board, in the exercise of its powers conferred under section 168(1) of the CGST Act, 2017, clarified various issues.

Firstly, notification No 14/2020- Central Tax dated 21st March, 2020 is applicable to a tax invoice issued to an unregistered person by a registered person (B2C invoice) whose annual aggregate turnover exceeds Rs.500 Crores in any of the financial years from 2017-18 onwards.

However, the said notification is not applicable to an invoice issued in cases where the supplier of taxable service is an insurer or a banking company or a financial institution, including a non-banking financial company; a goods transport supplying services in relation to transportation of goods by road in a goods carriage; supplying passenger transportation service; agency supplying services by way of admission to exhibition of cinematography in films in multiplex screens and OIDAR supplies made by any registered person, who has obtained registration under section 14 of the IGST Act 2017, to an unregistered person.

As regards the supplies made for exports, though such supplies are made by a registered person to an unregistered person, however, as e-invoices are required to be issued in respect of supplies for exports, in terms of Notification no. 13/2020-Central Tax, dated 21st March 2020 treating them as Business to Business (B2B) supplies, Notification no. 14/2020- Central Tax, dated 21st March 2020 will not be applicable to them.

Secondly, CBIC clarified that Dynamic QR Code, in terms of Notification No. 14/2020-Central Tax, dated 21st March 2020 is required, inter-alia, to contain the information namely Supplier GSTIN number, Supplier UPI ID, Payee’s Bank A/C number, and IFSC, Invoice number & invoice date, Total Invoice Value and GST amount along with breakup i.e. CGST, SGST, IGST, CESS, etc. Further, a Dynamic QR Code should be such that it can be scanned to make a digital payment.

Thirdly, if the supplier has issued invoice having Dynamic QR Code for payment, the said invoice shall be deemed to have complied with Dynamic QR Code requirements.

In cases where the supplier, has digitally displayed the Dynamic QR Code and the customer pays for the invoice Using any mode like UPI, credit/ debit card or online banking or cash or combination of various modes of payment, with or without using Dynamic QR Code, and the supplier provides a cross reference of the payment (transaction id along with date, time and amount of payment, mode of payment like UPI, Credit card, Debit card, online banking etc.) on the invoice ; or in cash, without using Dynamic QR Code and the supplier provides a cross reference of the amount paid in cash , along with date of such payment on the invoice;

The said invoice shall be deemed to have complied with the requirement of having Dynamic QR Code.

Fourthly, if the cross reference of the payment made using such electronic modes of payment is made on the invoice, the invoice shall be deemed to comply with the requirement of Dynamic QR Code. However, if payment is made after generation / issuance of invoice, the supplier shall provide Dynamic QR Code on the invoice.

Fifthly, if cross reference of the payment received either through electronic mode or through cash or combination thereof is made on the invoice, then the invoice would be deemed to have complied with the requirement of Dynamic QR Code.

In cases other than pre-paid supply i.e. where payment is made after generation / issuance of invoice, the supplier shall provide Dynamic QR Code on the invoice.

Lastly, the provisions of the notification shall apply to each supplier/registered person separately, if such person is liable to issue invoices with Dynamic QR Code for B2C supplies as per the said notification.

In case, the supplier is making supply through the E-commerce portal or application, and the said supplier gives cross-references of the payment received in respect of the said supply on the invoice, then such invoices would be deemed to have complied with the requirements of the Dynamic QR Code. In cases other than pre-paid supply i.e. where payment is made after generation/issuance of the invoice, the supplier shall provide a Dynamic QR Code on the invoice.

Source: Taxscan.

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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.

E-invoice
GST: NIC issues list of GSTINs on whom E-Invoicing is Mandatory

GST: NIC issues list of GSTINs on whom E-Invoicing is Mandatory

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The National Informatics Centre (NIC) has issued a list of GSTINs dated January 27, 2021, for whom e-invoicing shall be mandatory.

There are 73308 GSTNs who are enlisted by the NIC for whom it is mandatory for the taxpayer to upload the invoice details and register supply transaction on the Government Invoice Registration Portal.

‘E-invoicing’ or ‘electronic invoicing’ is a system where the taxpayer will upload his invoice details and register his supply transaction on the Government Invoice Registration Portal (IRP) and get the Invoice Reference Number (IRN) generated by the IRP system.

The taxpayer will first prepare and generate his invoice using his ERP/accounting system or manually and then upload these invoice details to IRP and get the unique reference number, known as IRN.

It is noteworthy that the e-invoice does not mean preparation or generation of taxpayer’s invoice on the government portal. It is only intimating the government portal that invoice has been issued to the buyer, by registering that invoice on the government portal.

Source: TaxScan.

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GST Eway Bill
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

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

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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.

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gst erp
CBIC issues clarification on GST Compliance Requirements

CBIC issues clarification on GST Compliance Requirements

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The Central Board of Indirect Taxes and Customs (CBIC), on Wednesday, issued the clarification in respect of certain challenges faced by the registered persons in the implementation of provisions of Goods and Service Tax (GST) Laws.

The circular was issued addressing the Principal Chief Commissioners of Central Tax and the Principal Director Generals / Director Generals while issuing clarification on various challenges.

As per the circular, Interim Resolution Professional (IRP) or Resolution Professional (RP) is now required to obtain registration within thirty days of the appointment of the IRP/RP or by June 30, 2020, whichever is later.

“IRP/RP would not be required to take a fresh registration in those cases where statements in FORM GSTR-1 under section 37 and returns in FORM GSTR-3B under section 39 of the CGST Act, for all the tax periods prior to the appointment of IRP/RP, have been furnished under the registration of Corporate Debtor (earlier GSTIN),” the circular further clarified.

The clarification pertaining to an amendment in the registration form provides that such a change would need and only change of authorized signatory which can be done by the authorized signatory of the Company who can add IRP /RP as a new authorized signatory or failing that it can be added by the concerned jurisdictional officer on request by IRP/RP.

“The requirement of exporting the goods by the merchant exporter within 90 days from the date of issue of tax invoice by the registered supplier gets extended to 30th June, 2020, provided the completion of such 90 days period falls within 20.03.2020 to 29.06.2020,” the circular stated while addressing other COVID-19 related representations.

Source: TaxScan.

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GST
CBIC mandates Registered Taxpayers to quote GSTIN on EXIM Declarations

CBIC mandates Registered Taxpayers to quote GSTIN on EXIM Declarations

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The Central Board of Indirect Taxes and Customs (CBIC) in a circular clarified that it is mandatory for registered taxpayers to declare GSTIN on EXIM declarations in a bid to strengthen all-round coverage of GST supplies.

Certain cases have been reported where the importer or exporter did not declare their GSTIN in the Bill of Entry /Shipping Bill despite being registered with GSTIN. With the effect from 15.02.2020, the declaration of GSTIN shall also be mandatory in Import/Export documents for the importers and exporters registered as GST taxpayers.

Data analytics by the revenue authorities have detected tax evasion through the black market and under-valuing of imports. It has come in to notice that although importers are paying Goods and Services Tax(GST), they are supplying the goods without a bill. They are typically paying integrated goods and services tax (IGST) on goods they bring into the country. This tax is supposed to be set-off against the actual Goods and Services Tax(GST) paid by the final consumer or claimed as a refund.

GSTIN is a 15-digit PAN-based unique identification number allotted to every registered person under Goods and Services Tax(GST). While importers have to fill the Bill of Entry with Customs department while importing goods, exporters have to file Shipping Bill.
The CBIC said certain cases have come to light where the importer or exporter has not declared their GSTIN in the Bill of Entry/Shipping Bill despite being registered with GSTN.

It was further noticed that the supply of imported goods to domestic channels is done without a bill. Importers typically pay integrated goods and services tax (IGST) on goods they bring into the country. The tax paid is to be set-off against the actual GST paid by the final consumer or claimed as a refund.

Importers are paying Integrated Goods and Services Tax(IGST) on imports but not claiming credit for the same which means the supply of imported goods to domestic channels is done without a bill.

Source: Tax-Scan

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GSTN
Gig economy workers may soon have to register under GSTN

Gig economy workers may soon have to register under GSTN

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The government is looking to get services professionals such as plumbers, electricians and beauticians listed on online platforms onto the Goods and Services Tax Network, in what could be yet another move to bring gig economy workers into the fold of the formal workforce.

The Department for Promotion of Industry and Internal Trade ( DPIIT) is considering making it mandatory for online marketplaces such as UrbanClap, HouseJoy and Bro4u to only engage service professionals who have a GST Number or GSTIN, senior government officials in the know of the matter told ET.

While the majority of plumbers, electricians, individual fitness trainers that make use of such online platforms will have a turnover of less than Rs 40 lakh annually, exempting them from paying GST, the government’s move to mandate GSTIN is more in line with having a database of such professionals. “Today, these professionals go into people’s houses and there’s absolutely no way for us to identify them,” said a senior government official.

“While they may not have to pay GST or make the quarterly filings, if they are registered on the network, we can trace them if there’s any untoward event,” said a government official who did not want to be named.

He added that companies such as UrbanClap may be asked to keep a log of all the jobs done by these services professionals, which were facilitated through their platform.

UrbanClap declined to comment as there was no formal communication from the government on the issue. Calls and messages to executives from Housejoy and Bro4u did not yield a response.

“There are several issues that we are examining like consumer safety and protecting the rights of these workers,” said another senior government official, who added that the DPIIT was currently evaluating the matter.

“Even today, there is voluntary GST registration, so it’s not something very big that we are asking them to do.”

Discussions to get services professionals listed onto the GSTN come ahead of the ecommerce policy, which is expected to come out before the close of the current fiscal.

Sources told ET that while the updated policy may dilute sections on data sharing, it could further define rules for online marketplace, inventory-led models and hybrid models.

The ministry of labour and employment is mulling bringing out regulations around the social security of gig economy workers. In its draft Code on Social Security, 2019, the ministry has proposed that all gig workers should be entitled to life and disability cover, health and maternity benefits, old age protection and other benefits

Source: Economic-Times

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GST Return
‘GST return form too complex to meet filing deadline’

‘GST return form too complex to meet filing deadline’

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Although the government has postponed the deadline for the filing of annual returns under the Goods and Services Tax (GST) for the fourth time, tax analysts say that the problems with the form are so confounding that most filers won’t be able to meet even the new deadline of November 30.

The GST legislation requires the filing of the GST annual returns by specified categories of taxpayers along with a GST audit if the turnover is more than ₹2 crore in a financial year.

As of July 1, 2019, the third year of GST implementation had started and yet, tax filers had not been able to file the returns even for the first year. The government had extended the due date for filing the returns four times, with the latest being the extension from August 31 to November 30.

One of the biggest pain points for tax filers, according to the analysts, is that the annual return form — the GSTR-9 — asks for a lot of information. Such information was not required to be given in the monthly or quarterly return forms — GSTR-1 and GSTR-3B. Tax filers are thus finding it very difficult to provide that information.

“GSTR-9 is nothing but complexity and confusion galore,” said Ritesh Kanodia, partner, Dhruva Advisors.

“The complexity starts with the level of details required, despite the fact that most of these were waived for monthly return filing. For example, the break-up of credit into input, input services and capital goods, or the break-up of reversals type-wise, reporting of ineligible credit, which may not have been captured in the financials.

“The values derived from the system does not always match with the books and a lot of time is wasted in trying to match them, with the only conclusion that it cannot be done,” Mr. Kanodia added.

Apart from the discrepancies between the data in the various GST forms that have to be submitted, another major issue being faced is the complexity of the annual return filing itself, and the fact that it requires information that is often at odds with the GST law itself.

“The manner in which the said information is to be provided is quite complicated,” said Prashanth Agarwal, partner, indirect tax, PwC India. “Although some of the aspects have been clarified by the government on this, still there are open issues which need clarity.

“There is a need to provide HSN classification for services at a six-digit level whereas the GST law allows companies to maintain the same at a four-digit level as well,” Mr. Agarwal added.

“Hence, companies don’t have this six-digit classification available with them. The government should allow companies to report HSN at the four-digit level.”

Onerous requirement
In what is being seen as an extremely onerous requirement, the annual return also requires tax filers to provide details of the transactions on which GST is not payable. Further, in terms of discrepancies, the power lies with the government. Companies cannot claim more input tax credit (ITC) than had already been claimed in the year, but the government can ask for more tax if it feels it is needed.

“The annual return requires the details of all those transactions in respect of which no GST is payable during the relevant period, which make the entire process more complex,” Rahul Dhuparh, deputy general manager, Taxmann said.

“No additional ITC can be claimed in GSTR-9, though additional tax, if found to be payable while reconciling, must be deposited with the government in cash.

“Due to the complex structure of the annual return, taxpayers are afraid to file it as there is no provision in the law to rectify the annual returns,” he added.

“Small taxpayers, who run their business from multiple registrations, but do not maintain separate books of accounts and do not have information split according to GSTIN registrations, are facing a huge challenge in preparing GSTR-9,” said Archit Gupta, founder and CEO, Cleartax.

“Taxpayers with a turnover of less than ₹5 crore must be allowed to report GSTR-9 on an aggregate basis, instead of GSTIN-wise,” said Mr. Gupta.

Source: The-Hindu.

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