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Government extends due date for GSTR-9 and GSTR 9C till October 31

Government extends due date for GSTR-9 and GSTR 9C till October 31

The Government on Wednesday extended the due date to file GSTR9 and 9C for 2018-19 by a month.

“After obtaining due clearances from the Election Commission in view of the Model Code of Conduct, Government has extended due date for furnishing Annual Return in GSTR-9 and GSTR 9C for 2018-19 from 30.09.2020 to 31.10.2020,” said a tweet from Central Board of Indirect Taxes and Customs (CBIC).


“With the GST annual compliance date coinciding with implementation of e-invoicing, the industry had given up hope on meeting both the statutory deadlines. Though announced at the last moment, still the deferment is likely to bring some respite to the industry,” said Harpreet Singh, Partner,  in India.

Earlier the Institute of Chartered Accountants of India (ICAI) has written to the GST Council seeking deferment of 2018-19 GST annual return filing deadline by three months till December 31. The government had in May extended the last date for filing annual GST return for financial year 2018-19 by three months till September 2020.

Source: Economic-Times


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Pre-filled GST return form soon: GSTN CEO Prakash Kumar

Pre-filled GST return form soon: GSTN CEO Prakash Kumar

GST-registered businesses will soon get pre-filled Return form, GSTR-3B, GST Network Chief Executive Officer Prakash Kumar said on Monday.

“We are moving towards providing taxpayers with a pre-filled GSTR-3B form so that they can pay their taxes at ease. To start with, an option to edit the form would be provided to allow businesses to make past adjustments etc,” Kumar told PTI.

GSTN, which handles the IT backbone for Goods and Services Tax (GST) has already started providing tax liability data based on sales return GSTR-1 of the taxpayer to be used in his tax payment form GSTR-3B in pdf form.

It is also providing taxpayers auto-generated invoice-wise input tax credit (ITC) statements based on information furnished by the suppliers of the taxpayer.

Kumar said this essentially means that the taxpayer can know how much ITC is available for the month.

Currently, the liability and ITC are being provided as separate pdf documents.
After two months, these two sets of data will automatically start flowing in GSTR-3B return, Kumar added.

This is the first step towards connecting GSTR-1 which has business-to-business (B2B) invoice data along with data on exports, business-to-consumer (B2C) supplies etc and GSTR-3B, he said.

The move is expected to ease taxpayer hassle of copy-pasting various numbers from sales return form GSTR-1 to GSTR-3B.

“These functionalities have been done for monthly filers of GSTR-1 and functionality for quarterly filers will be introduced in due course,” Kumar said.

GSTN has over 1.26 crore registered taxpayers, out of which 1.07 crore are required to file GSTR-1 and GSTR-3B. Of the, 1.07 crore taxpayers, around 58 lakh file GSTR-1 on monthly basis, whereas remaining file at quarterly frequency.

However, all 1.07 crore taxpayers has to file a monthly tax return, GSTR-3B.

Source: Money-Control.

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Good news for Taxpayers: Delinking of Credit Note/Debit Note with Original Invoice has been implemented on the GSTN portal

Good news for Taxpayers: Delinking of Credit Note/Debit Note with Original Invoice has been implemented on the GSTN portal

The De-linking of original invoices and credit and debit notes are incorporated on the GSTN portal. The same was amended vide CGST amendment Act, 2018 with the effect of February 1, 2019. However, the same is incorporated on September 14, 2020, on the portal.

After more than one and a half years of the amendment in Section 34 of the Central Goods and Services Act, 2017, Goods and Service Tax Network (GSTN) has finally enabled the facility to report consolidated credit or debit notes under GST in GSTR-1.

Section 34 of the Central Goods and Services Act, 2017, which deals with Credit/Debit notes under GST law, wherein a registered person has to issue two or more different credit or debit notes in respect of the multiple tax invoices raised in a financial year under GST.

For instance, Mr. X has issued five tax invoices in the month of September 2020, there are sale returns against these invoices for which he has to issue a credit note under GST.

The issue is whether Mr. X has to issue five different credit notes or he can issue a consolidated credit note for these 5 tax invoices.
Before the amendment under Section 34 Mr. X has to issue 5 credit notes, however, after the amendment, he may issue one consolidated credit note for 5 tax invoices in that particular financial year.

Before the coming up of this facility on the GSTN portal, a registered person needs to furnish the “Original date and number of the tax invoice” in order to report credit or debit note issued under GST in his GSTR-1.

The taxpayers especially selling through online platforms such as Amazon, Flipkart, Paytm, etc. claim this task to issue different credit or debit notes for different tax invoices under GST law a cumbersome compliance as they need to spend more time, money, and effort to maintain the records of credit or debit notes with meagre amounts.

After the facility to issue a consolidated/single credit note, against one or more tax invoices raised in a financial year, implemented on the GST portal, one can easily interpret that the GST portal does not ask for “original date and number of the tax invoice” as credit or debit note is delinked from original invoice on the common portal which in turn helps the taxpayers to report single credit or debit note in respect of the multiple tax invoices raised in one financial year in their GSTR-1.

However, despite the above amendment in the CGST Act, 2017, the GSTN portal did not have a functionality to link multiple invoices with a single credit note/debit note.

In this regard, the much-awaited de-linking of original invoices and credit/debit notes has now been allowed on the GSTN portal.

Source: TaxScan.

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Delayed GST payment: Interest to be charged on net tax liability from September 1

Delayed GST payment: Interest to be charged on net tax liability from September 1

The government has said that interest on delayed payment of goods and services tax (GST) will be charged on net tax liability with effect from September 1.

The industry had earlier this year raised concern over the directive of recovery of about Rs 46,000 crore of unpaid interest on delayed GST payment. The interest was charged on gross tax liability.

The GST Council, comprising centre and state finance ministers, in its 39th meeting in March had decided that interest for delay in payment of GST to be charged on net tax liability with effect from July 1, 2017, and law would be amended retrospectively.

However, the Central Board of Indirect Taxes and Customs (CBIC) on August 25, notified September 1, 2020, as the date from which interest would be charged on net tax liability.

Associates Senior Partner Rajat Mohan said this notification seems to be in disconnect with decisions of GST Council wherein it was assured to the taxpayers that the said benefit would be available retrospectively from July 1, 2017.

“Prospective availability of this benefit would mean that millions of taxpayers may be looking at demand of interest for over 3 years from the date of GST implementation. Businesses are expected to approach the High Courts again on this unjustified and illegal demand of interest basis the ‘principle of estoppel’,” Mohan said.

The CBIC had earlier said that GST law permits interest calculation on delayed GST payment on the basis of gross tax liability. This position has been upheld in the Telangana High Court’s decision dated April 18, 2019.

Net GST liability is arrived at after deducting input tax credit from gross GST liability.

Hence, calculating interest on gross GST liability increases the payout burden on businesses.

Tax Partner Abhishek Jain said with the GST Council having approved a retrospective amendment to interest being applicable on net liability, businesses would now await retrospective prescription for this.

“The retrospective notification becomes all the more imperative to subside multiple notices which were issued by the revenue authorities demanding GST on gross liability,” Jain added.

Businesses, other than those under the composition scheme and quarterly return filers, registered under goods and services tax (GST) have to file returns (GSTR-1) showing tax liability by 11th of following month and pay taxes by filing GSTR-3B between 20th-24th (due date varies according to the state in which businesses are registered).

There have been cases where GST assessees have paid taxes after due date but did not pay the interest due on account of delayed payment.

There were doubts on whether the interest was to be paid on gross tax liability or net tax liability. Interest at the rate of 18 per cent is levied on delayed tax payment.

Source: Economic-Times.

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GSTR 1 and 3B to be linked to determine input tax credit and liability

GSTR 1 and 3B to be linked to determine input tax credit and liability

In an effort to plug goods and services tax (GST) evasion and frauds and ease compliance, the existing GST return filing system is being enhanced to have an in-built invoice matching system to determine input tax credit and liability. The returns will be auto-populated to minimize errors, ease reconciliation and simplify compliance.

The group of ministers (GoM) on Information Technology (IT) led by Bihar deputy chief minister Sushil Kumar Modi took stock of the preparedness and the timelines in a meeting held on Friday.

The load handling capacity of GST Network (GSTN) has also been enhanced to 300,000 taxpayers at one point of time as against 150,000 taxpayers earlier to avoid glitches during peak hours.

A dedicated team of 60 tech persons has been set up to expeditiously deliver functional changes to the GST System under ‘Returns Enhancement and Advancement Project’ (REAP), which started in April.

Being developed as an alternative to the earlier proposed simplified return system that was put in abeyance in March, the new approach revolves around advancing and enhancing the existing return filing system to ensure ease of taxpayers. It is divided in five teams and various components are being developed.

“The new features in the existing return system will not only bring ease to taxpayers by way of auto-population of returns, but will also fix the drawback in the current system with respect to invoicing matching and determination of input tax credit and liability. The functionality will be ready by September and will be rolled out after approval from the GST Council,” Modi told Business Standard.

Taxpayers with a turnover of less that Rs 5 crore will also be allowed to file summary returns (GSTR 3B) on a quarterly basis, likely from November. Around 70 per cent taxpayers are likely to get covered under the quarterly return filing system.

In the current system, taxpayers are required to file GSTR-1 for outward supplies and GSTR-3B, which is summary return for sales and input tax credit and GSTR 2A, which is a purchase-related tax return. GSTR 2A is automatically generated for each business by the GST portal. When a seller files his GSTR-1, the information is captured in GSTR 2A.

But GSTR 1 and 3B are not linked, hence different values can be filed. The two returns will now be linked to get a system generated liability and a functionality is being developed for auto-populating valued from GSTR 1 and 3B.

Also, return form GSTR 2B will be introduced for availing input tax credit, which will plug leakages and frauds. In the current system, the input tax credit claimed on self-declaration basis, resulting in a mismatch many a times. Under the new system, GSTR 2B will be generated on the basis of GSTR 1 filed between two due dates by counter-party suppliers, for availing credit in GSTR 3B in a month. “GSTR 2A will suggest exact credit to be claimed to taxpayers in GSTR 3B,” said Modi.

The earlier proposed new return system requiring fewer details, was earlier expected to be introduced from October last year, but was postponed to April 1, 2020, but was eventually put on hold in March in view of lack of IT preparedness.

“Infosys chairman Nandan Nilekani was of the view in March that instead of giving a new instrument, we can enhance the capability of the existing system. It will not cause pain to the taxpayers in terms of adaptability,” said Modi.

Source: Business-Standard.

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

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

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

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

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

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

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

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

Source: Business-Today.

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Public limited companies just 0.6% of GST taxpayer base but pay 35% of revenue

Public limited companies just 0.6% of GST taxpayer base but pay 35% of revenue

Public limited companies, which account for only 0.6% (72,151) of total GST-registered taxpayers, contribute about 35% to the GST revenue collection, data released by the GST Network showed. About 1.2 crore taxpayers are currently under the GST ambit.

Similarly, only 0.2% taxpayers are public sector undertakings but contribute above 9% of revenue under GST. Other top revenue contributors are firms constituted as private limited companies — about 6.75 lakh or 5.9% of total taxpayers have paid 27.5% of the revenue

The largest chunk of taxpayers — 80.2% — identify as proprietorship, and they pay about 13.4% of the total revenue collection. In terms of turnover, about 7% taxpayers fall under the Rs 5 crore and above category but pay nearly 81% of total taxes. (see chart)

taxpayers

Similarly, large taxpayers above the Rs 5-crore turnover threshold upload nearly 6,500 invoices per taxpayer per month compared with just 30 invoices if all taxpayers are taken into account. Invoices are required to be uploaded by GST assessees with the GSTR-1 Return which has details of outwards sales by the businesses.

Source: Financial-Express.


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CBIC extends due date for Filing GST Annual Return

CBIC extends due date for Filing GST Annual Return

The Central Board of Indirect Taxes and Customs ( CBIC ) has extended the due date for filing GSTR-9 (Annual Return) for the Financial Year 2018 – 19 to be extended till the 30th of September, 2020.

The GST Council, in its 39th meeting, had extended the due date for filing GSTR-9 (Annual Return) and GSTR-9C (Reconciliation Statement) for the Financial Year 2018 – 19 to 30th June 2020.

GSTR 9 is an annual return to be filed yearly by taxpayers registered under GST. It consists of details regarding the outward and inward supplies made/received during the relevant previous year under different tax heads i.e. CGST, SGST & IGST, and HSN codes. It is a consolidation of all the monthly/quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) filed in that year. Though complex, this return helps in extensive reconciliation of data for 100% transparent disclosures.

The late fees for not filing the GSTR 9 within the due date is Rs 100 per day, per act. That means late fees of Rs 100 under CGST and Rs 100 under SGST will be applicable in case of delay. Thus, the total liability is Rs 200 per day of default. This is subject to a maximum of 0.25% of the taxpayer’s turnover in the relevant state or union territory. However, there is no late fee on IGST yet.

Read Notification here: https://www.taxscan.in/preview/?previews=15ax53cDwCpa7kwoRqfcTGX6Lai_q4Go_

Source: TaxScan.

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CBIC clarifies on issues under GST Law for Companies under IBC

CBIC clarifies on issues under GST Law for Companies under IBC

The Central Board of Indirect Taxes and Customs ( CBIC ) has issued clarifications in respect of issues under GST law for companies under the Insolvency and Bankruptcy Code, 2016 (IBC) in connection with the notification issued on  Saturday.

As per the Code, no coercive action can be taken against the corporate debtor for dues of the period prior to insolvency commencement date and such dues shall be treated as ‘operational debt’ for which claims may be filed by the PO before the NCLT in accordance with the provisions of IBC.

“The tax officers shall seek the details of supplies made/received and total tax dues pending from the corporate debtor to file the claim before the NCLT. Moreover, section 14 of the IBC mandates the imposition of a moratorium period, wherein the institution of suits or continuation of pending suits or proceedings against the corporate debtor is prohibited,” the CBIC Circular said.

Regarding the cancellation of GST registration of corporate debtor, the circular clarified that registration of an entity for which CIRP has been initiated should not be cancelled. However, the Proper Officer may suspend the registration. In case of cancellation of registration of an entity undergoing CIRP within the permitted time, the Circular advises that appropriate steps should be taken.

According to the circular, IRP/RP are not bound to file returns for the pre-CIRP period as the Code does not impose an obligation on them to comply with all legal requirements for period after the Insolvency Commencement Date.

For the purpose of the notification issued on Saturday, the corporate debtor who is undergoing CIRP is to be treated as a distinct person of the corporate debtor and shall be liable to take a new registration in the appropriate State/UT, the circular said.

“Further, IRP/RP appointed prior to the said notification shall take GST registration within thirty days of issuance of the said notification, with effect from date of his appointment as IRP/RP,” it added.

As specified in the Notification, it is mandatory for the IRP/RP to file returns under section 40 of the GST Act for the period it takes registration till the date on which registration has been granted.

With regard to the procedure for availing input tax credit for invoices issued to registered persons where IRP/RP has been appointed before issuance of NN 11/2020, the circular further clarified that the exception to the procedure stated under R. 36(4) as has been provided under Notification No. 11/2020 C.T. dated 21.03.2020 shall apply only for filing the first return. 

It was further clarified that the claim of refund of deposit in the cash ledger deposited by IRP/RP of erstwhile registration of the corporate debtor from the date of notification specifying the special procedure for corporate debtors undergoing CIRP, shall be available for refund to the erstwhile registration under the head refund of cash ledger, even though the relevant FORM GSTR-3B/GSTR-1 is not filed for the said period.

Source: TaxScan.

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CBIC waives GSTR-1 for Persons who couldn’t Opt for Composition Scheme

CBIC waives GSTR-1 for Persons who couldn’t Opt for Composition Scheme

The Central Board of Indirect Taxes and Customs (CBIC) has issued a notification waiving GSTR-1 for Persons who could not opt for Composition Scheme till 7th March 2019.

As per the 39th GST Council meeting, it was decided that the requirement of furnishing FORM GSTR-1 for 2019-20 should be waived for taxpayers who could not opt for availing the option of special composition scheme under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019 by filing FORM CMP-02.

“The said persons who have, instead of furnishing the statement containing the details of payment of self-assessed tax in FORM GST CMP-08 have furnished a return in FORM GSTR-3B under the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules) for the tax periods in the financial year 2019-20, such taxpayers shall not be required to furnish the statement in the outward supply of goods or services or both in FORM GSTR-1 of the said rules or the statement containing the details of payment of self-assessed tax in FORM GST CMP-08 for all the tax periods in the financial year 2019-20,” the notification said.

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.