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Documents & compliances that every exporter needs to keep in mind

Documents & compliances that every exporter needs to keep in mind

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Exports have been granted a beneficial treatment even under the Goods and Services Tax (GST) legislation. In terms of the GST legislation, exports are ‘zero rated supplies’ i.e. supplies on which the GST rate is fixed as ‘zero’. While exporting goods/ services, an exporter has the following options:

  • Export goods/ services or both under a bond or letter of undertaking (LUT) without payment of tax
  • Export goods/ services or both with payment of GST.

For Export of Goods

In terms of the GST legislation, export of ‘goods’ means taking goods out of India to a place outside India. An exporter of goods is required to undertake export of goods in terms of export procedure as prescribed under the Customs law and is required to ensure that following documentation and compliances are undertaken :

  • Obtain an Import Export Code (IEC);
  • Obtain an Import Export Code (IEC);
  • Furnish a LUT or Bond in case exports are intended to be made without payment of taxes;
  • Ensure that a robust Agreement/ Purchase Order is entered into with the recipient of goods for export of goods;
  • Issue a tax invoice, typically containing the following details:
  • Endorsement stating “supply meant for export on payment of integrated tax” or “supply meant for export without payment of integrated tax”;
  • Name, address and GSTIN of the supplier;
  • Invoice No. and date;
  • Name and address of the recipient, address of delivery and country destination;
  • HSN code of the goods along with description;
  • Quantity of goods and unit;
  • The total value of goods; and
  • Signature of the supplier of the authorised signatory. File the shipping bill. It should be ensured that accurate details of the tax invoice are mentioned in the shipping bill;
  • Details of export invoices are also required to be accurately furnished in the GST returns.

Further, exporters of notified goods to notified markets are also entitled for Duty Credit Scrip under the Merchandise Exports from India Scheme at notified rates (2% to 7%) on realized Free on Board (‘FOB’) value of exports in free foreign exchange or on FOB value of exports as given in the Shipping Bills in freely convertible foreign currencies, whichever is less. In addition, the benefit of refund under GST may also be explored.

For Export of Services

  1. In terms of the GST law services qualify as ‘export’ where:
  2. Supplier of service is located in India;
  3. Recipient of service is located outside India;
  4. Place of Supply (‘POS’) of service is outside India;
    Payment for such service has been received by the supplier of service in convertible foreign exchange; and
  5. Supplier of service and the recipient of service are not merely establishments of a distinct person

For cross-border transactions, unless specifically mentioned the default POS for services is the location of the recipient of service i.e. outside India. For specified services, POS is as follows:

  • For services in relation to immovable property (eg. renting, construction, designing etc.) – POS is the location of such immovable property;
  • For performance based services (eg. training programs, repair maintenance of goods or tour and travel) – POS is the place where such services are performed;
  • For events – POS is where the event is conducted
    It is relevant to note that in case of points a, b and c above in case the POS is in India, GST would be attracted even if the recipient of service is located outside India.

Another specified service is that where the supplier acts as an ‘intermediary’/ agent. POS in such cases is the location of the ‘intermediary’/ agent i.e. in India, accordingly same would also be eligible to GST. The concept of intermediary has opened a Pandoras box where most of the captive units exporting services have to face the wrath of litigations.

Accordingly, a service exporter should ensure documentation and compliance with respect to the following:

  1. Furnish a LUT or Bond in case exports are intended to be made without payment of taxes
  2. Ensure that a robust Agreement/ Purchase Order is entered into with the recipient of services for export of services;
  3. Issue a tax invoice typically containing the following details:
  4. Endorsement stating “supply meant for export on payment of integrated tax ” or “supply meant for export without payment of integrated tax”;
  5. Name, address and GSTIN of the supplier
  6. Invoice No. and date;
  7. Name and address of the recipient;
  8. HSN code of the services along with description
  9. The total value of services
  10. Signature of the supplier of the authorised signatory.
    It must be ensured that the payments are received in convertible foreign exchange within the prescribed time period (typically one year from the date of export), else GST would be payable on the transaction. Further, robust documentation to prove the receipt of such payment (such as Foreign Inward Remittance Certificate, Bank Realisation Certificate etc.) should be maintained.

Further, exporters of notified services are also entitled for Duty Credit Scrip under the Services Exports from India Scheme (‘SEIS’) at a prescribed percentage (3%/5%/7%) of Net Foreign Exchange [i.e. Gross Earnings of Foreign Exchange minus Total expenses / payment / remittances of Foreign Exchange]. In addition, the benefit of refund under GST may also be explored. Further, although IEC is not a pre-condition for service exporters, however IEC is a pre-condition in case the exporter intends to claim benefit under SEIS.

It is therefore recommended that an exporter of goods/ services should ensure that complete and robust trail of documentation should be maintained to ensure that benefit of tax incentives granted by the Government for exports from India can be claimed.


XaTTaX – World Class Automated eSolution for Return filing and e-Waybill

Source: Economic Times.
(The writer, is Director, Nangia Advisors (Andersen Global). With inputs from Arjun Sobti.)
Need to make additional GST payment? Here’s how to go about it

Need to make additional GST payment? Here’s how to go about it

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During the course of filing GST Return, a taxpayer may discover additional tax liabilities that he or she may need to pay. GST tax portal has a provision that allows you to do so.

“There is a section in the GST portal that talks about user services. There you need to choose DRC 03 and then opt for annual returns. You can use this to make any additional tax deposits, but need to ensure you have sufficient funds in your electronic cash ledger while using this form to make any additional tax payments,” says Deloitte India, Senior Director, Saloni Roy.

GSTR

GSTR

the shortfall can be on account of tax not being paid or short paid. It can also be on account of tax erroneously refunded or input tax credit wrongly availed or utilized. Payment using DRC 03 can either be voluntarily by the taxpayer when he or she discovers the shortfall, or it can be when the taxman issues a show cause notice (SCN).

In the case of an SCN, a taxpayer who has been issued a notice in form DRC-01 or DRC-02 can make payment and intimate it to the proper officer inform DRC-03 within 30 days from the date of issuance of such notice. However, in the case of voluntary payments, such time limits do not apply.

Is there any interest on these payments? “On any delayed payment, there is an interest liability. This interest can be deposited at the time of making the additional tax payment,” says Roy.

The following details are required in DRC 03:
GSTIN and name;
Cause of payment (Voluntary, SCN, etc.);
Section under which payment is made (73 or 74.Not applicable for voluntary payment);
Reference number, if SCN issued in DRC-01 or DRC-02;
Financial year, tax period and ACT; and
Payment details including interest, penalty, and others.

Where a person has made a voluntary payment of taxes, interest or other dues in form DRC03 before issuance of show cause notice and if tax officials are satisfied with the intimation of an acknowledgment in form DRC-04 will be made available to the taxpayer. In the case of payments against SCN, form DRC-05 specifying about the conclusion of proceedings in respect of the notice will be issued to a taxpayer.

Ease Your GST Filing & Invoice with XaTTaX GST Software

Source: Economic Times

GST Changes
GST Authority clarifies on change/transfer in ownership of sole proprietorship

GST Authority clarifies on change/transfer in ownership of sole proprietorship

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The GST (Goods & Services Tax) Authority on Thursday made it clear that transfer or change in the ownership of business will include transfer or change in the ownership of business due to death of the sole proprietor. Accordingly, a mechanism has been specified for transferring unutilized input tax credit.

A circular issued by the Central Board of Indirect Taxes and Customs (CBIC) mentioned that the transferee or the successor will be liable to be registered with effect from the date of such transfer or succession, where a business is transferred to another person for any reasons, including the death of the proprietor. Here the applicant will be required to mention the reason to obtain registration as ‘death of the proprietor,’ in the registration form (GST REG-01) to be filed electronically in the common portal.

The legal hire (of the dead sole proprietor) will be required to give application for cancellation of the existing registration. The GST Identification Number (GSTIN) of a transferee to whom the business has been transferred is also required to be mentioned to link the GSTIN of the transferor with the GSTIN of a transferee. In case of death of a sole proprietor, if the business is continued by any person being a transferee or successor of business, it shall be construed as a transfer of business. This means a transfer of unutilized input tax credit and liability to pay tax along with penalty, if any, will also be possible.

In case of transfer of business on account of the death of a sole proprietor, the transferee/successor will file ‘FORM GST ITC-02’ in respect of the registration to be canceled. Also, such an action is required to be completed before applying for the cancellation. This should be filed before filing the application for cancellation of such registration. Upon acceptance by the transferee/ successor, the unutilized input tax credit specified in ‘FORM GST ITC-02’ will be credited to his electronic credit ledger.

New registration

In another circular related to verification of applications for grant of new registration, the CBIC said there have been instances when registration gets canceled due to one reason or any other reason, such businesses prefer to apply for new registration rather than applying for revocation of cancellation of registration. There is a possibility that such a person might not have furnished requisite returns and not paid tax for the tax periods covered under the old/canceled registration.

Further, such persons would be required to pay all liabilities due from them for the relevant period in case they apply for revocation of cancellation of registration. Hence, to avoid payment of the tax liabilities, such persons may be using the route of applying for fresh registration. One can take separate registration on the same PAN in the same State.

Now, CBIC has instructed its officials to exercise due caution while processing such applications. It is clarified that not applying for revocation or cancellation of registration will be deemed to be a ‘deficiency’ and could be a reason for rejection of the application for new registration.

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

Source: The Hindu Business Line.
GSTR
How to file GSTR-9: Preparing the first-ever annual return for financial year 2017-18

How to file GSTR-9: Preparing the first-ever annual return for financial year 2017-18

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The filing of the first annual return for FY 2017-18 is due in roughly three months. It covers a period of nine months from July 2017 to March 2018, as against twelve months in a financial year. But many taxpayers still dread the preparation of annual return forms because the declaration of information in the annual returns has multiple implications.

The last date has been extended to June 30, 2019, but it is important to know that GST Annual returns in GSTR-9, GSTR-9C or GSTR-9A cannot be revised once filed. Moreover, any incorrect information can attract tax demands and interest or even penalties; leave alone the long-term litigations that can follow years later.

GSTR-9 is an annual summary of the sales, tax paid thereon, purchases, input tax credit (ITC) claimed, ineligible credits, demands and refunds. If the form was just a replica of the monthly GSTR-3B summarised at a yearly level, it would have been an easy task. Using monthly GSTR-3Bs already filed by a taxpayer, the annual form could be auto-populated for the twelve months of the financial year. However, being the first and perhaps the last GSTR-9 format under the present set up of GSTR-1 andGSTR-3B, every taxpayer must gear up to make an accurate declaration of transactions.GSTR-9 auto-populates two fields. An option to auto-fill from table 4A of GSTR-3B is available to report the ITC declared as per GSTR-3B in the Table 6A of the GSTR-9. Further, the annual summary ITC reflected in GSTR-2A is auto-filled in Table 8A of the GSTR-9. Rest of the fields must be taken care of by the businesses. Due to the decisions taken in the 31st GST council meeting, a taxpayer may have a GSTR-9 that is not exactly the sum of details reported in GSTR-1 or GSTR-3B. So, the taxpayer can now declare values as accounted in books for a particular transaction(s). Taxpayers must weigh the pros and cons of declaring a different figure that does not total up to the values as per GSTR-3B or GSTR-1 already filed for the specified period. These differences must have an explanation and any short payment of taxes at the end of the year must first be paid in cash in form DRC-03 after which the GSTR-9 must be filed.

The same council meeting had also addressed that irrespective of the month of filing, the table 8A (field that auto-populates GSTR-2A information) in GSTR-9 will reflect ITC as reported by all the suppliers of a tax filer. For invoices raised in FY 2017-18. Amid these developments, CBIC issued orders by the end of December 2018. These hold significance for filers of FY 2017-18 who have not finished compliance and those who desire to make corrections or claim ITC to already-filed returns. These are:

  • Any GST returns for July 2017 to September 2018 if not filed earlier, can now be filed up to 31st March 2019 without late fees.
  • The input tax credit against purchase invoices of FY 2017-18 can be claimed before filing the GSTR-3B for the return period of March 2019
  • Portal has allowed amendments for B2B outward supplies which happened between July 2017-March 2018 in any GSTR-1 filed after September 2018, but up to March 2019.

With the extended time limit, taxpayers who are yet to submit GSTR-9 must proceed only after ensuring that all the GST Returns applicable to their business (GSTIN) during FY 2017-18 are filed. In addition to this, businesses can make necessary amendments related to FY 2017-18 in GSTR-1 or GSTR-3B being filed for present months till March 2019 return period and claim any missed but eligible ITC. Further, they can nudge their suppliers to upload invoice details in GSTR-1 for those genuine ITC of FY 2017-18 which were not appearing in GSTR-2A between period July 2017 to September 2018.

Taxpayers must reconcile data of FY 2017-18 throughout the year from July 2017 to September 2018 to identify differences if any between returns and between the book of accounts and returns. Advances paid or received must accordingly be adjusted at the year-end against invoices issued and balance must only be reflected. ITC reversals must be done at the end of the year as per CGST rules.

One may find it difficult to report the HSN wise summary for purchases in GSTR-9, where it is not maintained in the books of accounts while raising an invoice. Reporting of a particular HSN is required if the value under one HSN is more than 10% of the total value of all HSNs put together. This was never a requirement in GSTR-3B. Use of a tool along with the sorting and filter feature can help identify HSN and summarise for GSTR-9 details. Technology can thus come to the rescue of taxpayers, who want to do this efficiently.

All this can be easy with the help of a sturdy reconciliation tool that can easily identify mismatches, duplication of entries, match credit/ debit notes against respective invoices, correct the reporting into wrong tax heads, non-reporting and so on. Hence, taxpayers especially those subject to audit under GST must ensure that a certified reconciliation statement in GSTR-9C is obtained from the auditor who is a chartered accountant or the cost accountant as soon as possible and is filed along with GSTR-9.


XaTTaX – World Class Automated eSolution for Return filing and e-Waybill

Source: Economic Times
eway bill
Changes in E-way Bill from 16th November 2018

Changes in E-way Bill from 16th November 2018

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The National Informatics Centre E-way Bill Project has published a list of improvements in the E-way Bill under the Goods and Services Tax ( GST ) regime. The changes would be applicable with effect from 16th November 2018. As per the document issued by the NIC, the following changes will be made in the e-way bills.

Checking of duplicate generation of e-way bills based on same invoice number:

The e-way bill system is enabled in a way that if the consignor has generated one e-way bill on the particular invoice, then he or consignee or transporter will not be allowed to generate one more e-way bill on the same invoice number. If the transporter or consignee has generated one e-way bill on the consignor’s invoice, then if any other party (consignor, transporter or consignee) tries to generate the e-way bill, the system will alert that there is already one e-way bill for that invoice, and further it allows him to continue, if he wants.

CKD/SKD/Lots for movement of Export/Import consignment:

CKD/SKD/Lots supply type can now be used for movement of the big consignment in batches, during Import & Export also. Delivery challan and tax invoice need to accompany goods as prescribed in Rule 55 (5) of CGST Rules, 2017.

Shipping address in case of export supply type:

For Export supply type, the ‘Bill To’ Party will be URP or GSTIN of SEZ Unit with state as ‘Other Country’ and shipping address and PIN code can be given as the location (airport/shipping yard/border check post/ address of SEZ), from where the consignment is moving out from the country.

Dispatching address in case of import supply type :

For Import supply, the ‘Bill From’ Party will be URP or GSTIN of SEZ Unit with state as ‘Other Country’ and dispatching address and PIN code can be given as the location (airport/shipping yard/border check post/ address of SEZ), from where the consignment is entering the country. Enhancement in ‘Bill To – Ship To’transactions: EWB generation is now categorized to four types now Regular and Bill to Ship to, Bill from Dispatch from & combination of both.

Changes in Bulk Generation Tool:

Facility of EWB generation through the Bulk Generation Tool has been enhanced.

Source: Tax Scan
GST
Last date to file IT returns is Oct 15: Know what all documents you need

Last date to file IT returns is Oct 15: Know what all documents you need

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It is now essential for every business or professional, to provide GST details in their income tax returns. While the compliances are relatively less for proprietors and individual businessmen, companies have been asked to give a split of their expenses, between payments made to GST registered and not registered entities for the FY 2017-18.

This makes the financial statements and GST filings inter-connected. There is substantial cross-reporting between the two, let’s understand this further.

The GSTIN and turnover/gross receipt as per GST must be reported while filing ITR-4. This, of course, applies only if you are registered under GST. Details of CGST and SGST or IGST paid on Sales/ Purchases/ Expenses must be given in the profit and loss account, by all those who are filing ITR-3, ITR-5 and ITR-6. Additionally, the amount of input tax credit remaining unclaimed as of 31st March 2018 should be disclosed in ‘Schedule OI'( Other Information ) of the ITRs listed above.

As per the Income Tax Act, 1961, companies are required to furnish their returns in the ITR – 6 form, except for those earning income from property held for the charitable purpose, who must file ITR-7. These companies while filing the ITR-6, have to disclose the break-up of their total expenditure including purchases from entities which may or may be not registered under GST.

This requirement is applicable to all companies whether or not required to get their books of accounts audited under section 44AB. Earlier, GST related reporting in Form 3CD was relaxed until 31st March 2019. But this relaxation has not been extended to ITR-6. Being the first filing season post the GST implementation, an interim relief was expected until the GST system settles in.

The assessees under the GST schedule of ITR-6 must declare the following:

  • Total summary expenditure: The assessee must state the total amount of expenses made during the year after GST was implemented; the break-up of the aggregate of the expenditure as reported in the schedule Part A – Profit & Loss/ Profit & Loss as per Indian Accounting Standards between July 2017 up to March 2018.
  • Purchases from or expenditure made to entities registered under GST must be reported. This is done by giving break up of expenses into 3 buckets – for goods and services exempt from GST, purchases from composition dealers and balancing figure will be reported purchases/expenses under ‘other registered entities’.
  • Expenditures relating to entities not registered under GST.
  • Companies need to report the breakup of the total purchase and expenses booked in the Profit and Loss Account (P&L) in the GST schedule. There should be a clear bifurcation of expenditure that attracts GST and those that do not attract GST. Such expenditure may include the purchase of inputs, consumables, freight, repairs, rents, audit fees, etc.
    These assessees are required only to give a summary of the expense details, and not report on the GSTIN level. The objective behind this is to gauge in total the transactions taking place under registered GST and unregistered GST entities.

With regards to the ITR to be filed by businesses opting for presumptive tax scheme, declaring GSTIN-4 will have significant relevance. An assessee opting to presumptive taxation scheme must have turnover below 2 crores if doing a business (Section 44AD) and under Rs 50 lakh if pursuing specified professions (under Section 44ADA). The GSTIN disclosure gives IT Department a source to verify the turnover with that declared under GST system.

In conclusion, company assessees are inconvenienced with little clarity on how this data may be used and what to expect in the coming months on compliance. The data so reported by assessees may be subject to changes later and this may need a revision too; this means that the data being reported in the income-tax returns and the GST returns must be aligned to avoid potential disputes in the future.

There is still time for GST return filing for the month of September 2018, which is due on 20th October 2018. But reconciliation for FY 2017-18 by businesses between GST returns and books of accounts is of utmost importance even before filing of Income tax returns for AY 2018-19 (now due on 15th October 2018). Since the management and the auditor will sign off on the financial statements which include GST numbers. Timely reconciliation will save assessees from pain and revisions later.


Ease Your GST Retrun Filing & Invoice with XaTTaX- GST Software

Source: Economic Times
GST Council to discuss annual return forms on Jul 21; experts expect reconciliation with ITR

GST Council to discuss annual return forms on Jul 21; experts expect reconciliation with ITR

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The format for annual returns and audit is likely to be approved by the GST Council in its meeting on July 21 and industry expects that there could be some reconciliation with annual IT returns as the government aims to check tax evasion.

Goods and Services Tax (GST) was rolled out on July 1, 2017, GST Council to discuss annual return form on 21 Julyand this is the first year when businesses will have to file annual returns (GSTR-9) for 2017-18 fiscal by December 31, 2018. Also, those businesses with the turnover of more than Rs 2 crore will have to file audit reports along with the annual returns.

The revenue officers have prepared a draft of the annual returns form, which will be deliberated by the all-powerful GST Council chaired by Union Finance Minister and comprising state finance ministers as members, in its meeting on July 21. The GST Network, which manages the IT backbone for the new indirect tax regime will thereafter finalize the software to enable businesses to file the returns.

Also Read: Simple Guide of GSTR 9 with Easy Online Return Filing Process, Eligibility & Rules

Tax experts said they expect the annual returns form to be in line with that in the erstwhile Value Added Tax (VAT) regime, with some columns for reconciliation with Income Tax returns and audit report. They expect the forms to be made available online by October so that the returns could be filed within the December due date.

Deloitte India Partner M S Mani said: “Considering the fact that the key objective of GST is to expand the tax base, it is expected that the GST annual return would require some information related to annual accounts and income tax returns, in addition to the details which were required to be submitted in the erstwhile VAT annual returns”.

They expect that in the VAT era, assessments were made on the basis of annual returns and the same process should be followed in the GST regime as well.

Experts said the businesses might commit some error in the monthly returns filed and those could get corrected in the annual returns and hence assessment should be on the basis of annual returns.

EY India Tax Partner Abhishek Jain said: “Given the first year of GST, the industry would expect the Annual Return format to be simple and if possible only require PAN-based data reconciliation with the financials and not state wise or GSTIN wise data reconciliation with financials. The said demand essentially being on account of most company IT systems not being configured to extract state wise financials”.

Under the VAT regime, businesses were required to file returns in every state where they are registered and hence linking their annual returns with that of the same filed under IT returns was not feasible.

AMRG & Associates Partner Rajat Mohan said: “Some of the Industry expectations are online forms with least manual intervention seeking selected information, clarity on the need for annual state-wise financial statements and finally, deferment of GST audits in the first year”.

But, with GST being PAN based registration, it would be easier to reconcile the sales and purchases with that reported in IT returns.

As per the IT return forms notified by the income tax department, businesses filing ITR-4 (Presumptive Income From Business & Profession) will have to give information regarding turnover/gross receipt reported for GST as well as GST Identification Number (GSTIN). Besides, in ITR-6 which is to be filed by companies, businesses have to specify GST paid or refunded or credit outstanding.

Over 1.14 crore businesses are registered under the GST regime. Of these, about 18 lakh businesses have opted for composition scheme.

Source: Auto Economic times
How to calculate delivery distance and validity of E-way Bill

How to calculate delivery distance and validity of E-way Bill

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E-Way Bill is an electronically generated document which is required to be generated for the movement of goods of more Rs. 50000 from one place to another.

Validity of E-way Bill

E-Way Bill is one of the most important offshoots of the GST regime that has been introduced in India last year. It is an electronically generated ( E- generated) document that is mandatory to be carried in its physical form or electronically by a transporter when he/she is ferrying goods or items from one place to another. The consignor or the consignee can generate e-way bill and it is compulsory for transporting goods whose value is above fifty thousand. It has to be kept in mind that this document is valid for a specific period of time and depends on both the distance to be covered and what is being transported.

How to calculate the approximate distance

The provisions of the e-Way Bill state that its validity is calculated on the basis of the distance between the location of the supplier and the location of the recipient instead of the distance between the location of the transporter and the location of the recipient.

The MAP feature is used to find out the approximate distance to be traveled between the point of dispatch and the point of delivery.

However, there is a rider. The e-Way Bill portal, till now, allows someone who is trying to generate the document to put in a maximum distance of 3000 kms in the distance field. So, it is a problem for people who want to generate a Bill for transporting goods for a distance exceeding 3000 kms. However, the goods are allowed to be transported for the distance of more than 3000 kms provided it is done within the stipulated validity period.

The computation of the validity period requires furnishing the distance between the place of the supplier and the place of the recipient. However, after entering this detail, the field cannot be modified unless it becomes necessary to extend the validity period of the electronic Way bill.

Determining the validity of the E-way Bill

Before we delve into the particulars of the validity of the Bill and how to compute it, it is important to understand a phrase: over dimensional cargo. Over-dimensional cargo is that cargo that exceeds the standard or ordinary legal size and/or weight limits for a specified portion of road, highway or other transport infrastructure such as air freight or water freight.

The validity of the e-Way bill depends on whether the cargo is over-dimensional or not. For over-dimensional cargo, the validity is 1 day for any distance up to 20 kms and after that, one extra day for every 20 kms or part thereof. For other than over-dimensional cargo, the validity is 1 day for a distance of 100 kms and thereafter, additional 1 day for every 100 kms or part thereof.

Some other details 
It has to be kept in mind that the validity of the e-Way Bill for the first day ends by the midnight of the next day. For e.g.: An e-Way bill is generated at 6 p.m. on the 15th of May for transporting goods for 80 kms. It will be valid till the midnight of 16th of May i.e. for 1 day.

Similarly, a Bill may be generated at 6 p.m. on the 15th of May for transporting goods for a distance of 190 kms. In this case, it will be valid for two days I.e. till midnight of 17th May.

Another important point that has to be kept in mind with regard to validity of e-Way Bill is that the validity starts when the vehicle number is updated for the first time by the consigner/consignee or by the transporter in Part B of the e Way Bill.

For example, the supplier of goods handed the goods over to the transporter on the 15th of May and Part A of the Bill was submitted after updating the GSTIN of the transporter. However, the transporter loaded the goods on the 17th of May and filled Part B of the electronic way bill by updating the vehicle number. Then, its validity starts from May 17th only.

Simple Guide of GSTR 9 with Easy Online Return Filing Process, Eligibility & Rules

Simple Guide of GSTR 9 with Easy Online Return Filing Process, Eligibility & Rules

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The GSTR 9 is an annual return form to be filed by the taxpayer once a year with all the consolidated details of SGST, CGST and IGST paid during the year. Here, XaTTaX briefs all the details, rules and regulations for GSTR 9 online filing along with step-by-step compliance procedure.

Get to know all the related information of GSTR 9 annual filing procedure, format, eligibility, and rules along with proper images (screenshots) and filing guidance at each and every step.

For any query and question relevant to GST, ask our experts and professional CAs which will resolve all your doubts as soon as possible. Here we are going to discuss the complete GSTR 9 form under the goods and services tax.

What is the Meaning of Filing GSTR-9?

GSTR 9 is meant for a return form which is required to be filed once in a year by the regular taxpayers concerning GST regime. It is further categorized in IGST, SGST, and CGST. Under the heads, the taxpayers fill information about supplies made and received in a year separately. It is a consolidated form which comprises the details mentioned in the monthly/quarterly returns in a year.

Who is Required to File GSTR-9?

All the registered taxpayers are required to file GSTR 9 under GST regime. However, following persons are not required to file GSTR 9

  • Casual Taxable Person
  • Input service distributors
  • Non-resident taxable persons
  • Persons paying TDS under section 51 of GST Act.

What are Different Sorts of Annual GST Returns under GSTR 9?

Different kinds of annual return under GST:

  • GSTR 9: The regular taxpayer who files GSTR 1, GSTR 2, and GSTR 3 are required to file the GSTR-9.
  • GSTR 9A: The composition scheme holder under GST is required to furnish GSTR 9A.
  • GSTR 9B: All the e-commerce operators who have filed GSTR 8 are required to file GSTR 9B in a financial year.
  • GSTR 9C: The taxpayers whose annual turnover cross Rs. 2 crores are required to file GSTR 9C in a financial year. All those taxpayers are needed to obtain the accounts to be audited and furnish a copy of reconciliation statement of tax already paid, audited annual accounts and tax payable according to the audited accounts with GSTR 9C.

What is the Due Date for Filing GSTR 9?

GSTR-9 is required to be furnished on or before 31st December in respective financial year bracket. For example, if you want to file GSTR 9 in the this FY 2017-18, then the last date to file the return form will be 31st December 2018.

Penalty Norms When you Miss the Due Date of GSTR 9 Filing

The late fee of one hundred rupees for every day during which such failure continues will be levied subject to a maximum of an amount deliberated at a quarter percent of taxpayer turnover in the respective Union territory or state.

XaTTaX: Free GST Filing Software

Which Kind of Detail is Required to Mention in GSTR-9?

GSTR 9 is divided into 9 sections:

  1. GSTIN: A state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number(GSTIN) is provided to each registered taxpayer. GSTIN is auto-populated when furnishing the return form.
  2. Legal Name: When the registered taxpayer log-in to the common portal, the legal name of the person is auto-populated.
    •  2C. Taxpayer Liable To Statutory Audit: Every registered taxpayer whose composite turnover during a financial year surpasses Rs. 2 crore is required to get his accounts audited as mentioned under sub-section (5) of section 35 and he/she shall file a copy of audited annual accounts and a reconciliation statement, duly validated, in FORM GSTR-9C, electronically using the common portal either through a Facilitation Centre informed by the Commissioner or directly.
  1. Date of statutory Audit: This head takes the date of the statutory audit.
  2. Auditors: The taxpayer is required to mention auditors’ names who have audited the accounts of the entity.
  3. Details of Expenditure: Information about goods and services bought in a financial year is required to mention here mandatorily. These details are required to be mentioned along with the appropriate HSN/ SAC codes and taxable worth of such goods and services. This information is provided in GSTR-2. Further, the relevant information is categorized in following sections:
    • The total value of purchases on which ITC availed (inter-State)
    • The total value of purchases on which ITC availed (intra-State)
    • The total value of purchases on which ITC availed (Imports)
    • Other Purchases on which no ITC availed
    • Sales Return
    • Other Expenditure (Expenditure other than purchases)

Total value of purchases on which ITC availed (inter-State)

  1. Details of income: Details of income accommodates all the information of supplies and sales made in a relevant financial year. This information is also mentioned by the taxpayer in GSTR-1. It is categorized as follow:
    • The total value of supplies on which GST paid (inter-State Supplies): Composite worth of supplies on which IGST is applicable in respect of inter-State Supplies
    • The total value of supplies on which GST Paid (intraState Supplies): Composite worth of supplies on which CGST and SGST are applicable in respect of inter-State supplies.
    • The total value of supplies on which GST Paid (Exports): Composite worth of supplies made under goods and services tax on which IGST is paid in respect of exports.
    • The total value of supplies on which no GST Paid (Exports): It comprises the worth of goods on which no GST is applicable in respect of exports.
    • Value of Other Supplies on which no GST paid: It takes the information of the supplies made under GST on which no GST is paid.
    • Purchase Returns: It includes the information of purchase return done in a financial year.
    • Other Income (Income other than from supplies): Other income made in a financial year which is not mentioned in above points are required to be mentioned here.

Details of all supplies and sales made during the year needs to be provided here. Such details are also mentioned in GSTR 1

  1. Return reconciliation Statement: After filing the details, the system will match with the transactions automatically and will calculate tax liability applicable in respect of the tax paid. The details such as interest, amount of tax difference and penalty are auto-populated by the system. It categorizes the relevant details in following fields:

Return reconciliation Statement

  1. Other amounts

GSTR 9: Other amounts

  1. Profit as Per the Profit and Loss Statement

Profit as Per the Profit and Loss StatementAs soon as particulars are furnished appropriately, the assessee is required to sign digitally either via a digital signature certificate (DSC) or Aadhaar based signature verification to authenticate the return details.

Aadhaar based signature

GST could help banks enhance credit monitoring

GST could help banks enhance credit monitoring

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GST could help banks enhance credit monitoring

The new goods and services tax regime is bringing some unintended benefits for banks.

Many lenders, including DCB Bank, ICICI Bank and Axis Bank, are now offering companies the option of filing their monthly GST returns through their website.

This will help banks enhance their credit appraisal systems, keep track of corporate invoices and cash flows, and also get access to new clients by tapping their suppliers.

This service offered by banks is particularly useful for small and medium enterprises (SMEs) that are intimidated by the new GST regime but are comfortable with internet banking.

“Our site helps customers create an invoice and reconcile their accounts,” said Praveen Kutty, president for retail and SME banking at DCB Bank. “Our expectation is that customers using our site to fill their monthly returns will eventually make ours their primary bank account. It also enhances our ability to give loans, monitor cash flows and also will help us get access to their suppliers.” He said.

DCB has 5 lakh customers, 90% of which are self-employed. Axis Bank has also allowed its customers to file their returns through its website.

“This is an additional service, customers still need help to file returns,” said Jairam Sridharan, chief financial officer at Axis Bank. “This service will gain traction only when they are comfortable with filing returns. It remains to be seen as to how much it enhances credit appraisals,” he said.

“But there are no free lunches nowadays, so banks may either charge their customers or ensure some kind of a minimum balance to offer this service,” Sridharan said, adding that Axis Bank plans to open up this facility for noncustomers in a few months’ time.

DCB Bank charges Rs 250 per month per GST identification number (GSTIN) to fill their monthly returns for firms with average current account balance of up to Rs 50,000. Each state has a different GSTIN. Firms with higher balance can use GSTIN more frequently and at a lower cost according to DCB.

Analysts said banks will look to package this new GST service along with other corporate services to get the maximum benefit.

“Banks are under constant pressure to weed out non-KYC compliant accounts,” said MS Mani partner at Deloitte. “This (service) will help them to detect these because clients that are regular in filing returns are likely to be KYC compliant,” he said.


XaTTaX GST e-filing software – Simple, Secure, Reliable

Source :  The Economic Times