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GSTN now enables the option to download GSTR-2B summary and 2B in detail

GSTN now enables the option to download GSTR-2B summary and 2B in detail

The Goods and Service Tax Network (GSTN) has enabled the option to download GSTR-2B summary and GSTR-2B in detail on the GST Portal.

The GSTR-2B is a new static month-wise auto-drafted statement for regular taxpayers introduced on the GST portal.

It provides eligible and ineligible Input Tax Credit (ITC) for each month, similar to GSTR-2A but remains constant for a period.

It is available to all the regular taxpayers. Every recipient can generate it on the basis of the GSTR-1, GSTR-5 and GSTR-6 furnished by their suppliers. The statement will clearly show document-wise details of ITC eligibility.

Source: TaxScan. 

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Invoice Furnishing Facility (IFF) functionality now available on GST Portal

Invoice Furnishing Facility (IFF) functionality now available on GST Portal

The Goods and Service Tax Network (GSTN) has made available the new Invoice Furnishing Facility (IFF) functionality on the Goods and Service Tax (GST) Portal.

The Invoice Furnishing Facility (IFF) is a facility where quarterly GSTR-1 filers can choose to upload their invoices every month. A quarterly GSTR-1 filer is a small taxpayer with a turnover of up to Rs.1.5 crore.

The registered persons opting for the Scheme would be required to furnish the details of an outward supply in FORM GSTR-1 quarterly as per rule 59 of the CGST Rule. For each of the first and second months of a quarter, such a registered person will have the optional facility Invoice Furnishing Facility (IFF) to furnish the details of such outward supplies to a registered person, as he may consider necessary, between the 1st day of the succeeding month till the 13th day of the succeeding month.

The said details of outward supplies shall, however, not exceed the value of Rs. 50 lakh each month. The facility of furnishing details of invoices in IFF has been provided so as to allow details of such supplies to be duly reflected in the FORM GSTR-2A and FORM GSTR-2B of the concerned recipient.

There are various advantages attached to IFF namely buyers of goods from small taxpayers can claim ITC every month; the facility allows the monthly reconciliation of data and makes return filing easier; small taxpayers can increase their business by providing faster ITC claims and eases the compliance burden by reducing the volume of invoices to be uploaded at the end of the quarter.

The IFF is a facility similar to Form GSTR-1, and it allows filing of details of B2B invoices in following tables only.

The option to upload details in IFF can be availed till 13th of the subsequent month. Any invoices remaining to be furnished, can be filed using the IFF in the subsequent month IFF or in the quarterly Form GSTR-1. For e.g. for Apr-June qtr., B2B invoices for the month of April (M1) can be filed in IFF by a taxpayer till 13th May. Any IFF which is not filed till the due date of 13th of the subsequent month will expire.

Overall, this is a good move to help both small taxpayers and buyers from small taxpayers. This facility will indirectly help small taxpayers to enhance their business by providing faster ITC claims to their buyers.

However, this will increase compliance costs for them. Hence, one has to make a comparison between the benefit of opting for IFF and the cost involved. It is good to opt-in for this facility if a small taxpayer raises large volumes of B2B invoices when compared to B2C invoices in a quarter.
The end date for furnishing details of supplies of Goods or Services is February 13, 2021.

Source: TaxScan.


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GST Council allows Quarterly filing of GSTR-3B for less than 5cr Turnover

GST Council allows Quarterly filing of GSTR-3B for less than 5cr Turnover

The 42nd GST Council Meeting held today has decided to allow the quarterly filing GSTR-3B returns having less than five crores turnover.

This facility will be available from January 1st, 2021. From Jan 2021, the number of returns for small taxpayers will be reduced from 24 to 8. However, since states require money every month, payments can be made through challan every month, even though returns can be filed every quarter.

GSTR-2B has been provided to help Taxpayers calculate input tax credit; it will give taxpayers a complete idea of the ITC they are entitled to, said Finance Secretary.

Filing GSTR-3B is mandatory even for Nil returns. GSTR-3B is a monthly return. All regular taxpayers need to file this return till June 2018. Taxpayers can file their return on GST Portal. Taxpayers have to file this return by 20th of the subsequent month.

As a further step towards reducing the compliance burden particularly on the small taxpayers having aggregate annual turnover < Rs. 5 cr., the Council’s earlier recommendation of allowing filing of returns on a quarterly basis with monthly payments by such taxpayers to be implemented w.e.f. 01.01.2021. Such quarterly taxpayers would, for the first two months of the quarter, have an option to pay 35% of the net cash tax liability of the last quarter using an auto generated challan.

Source: TaxScan.

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

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

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

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

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

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

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

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

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

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

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

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

Source: Economic-Times.

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Exporters facing GST refund issues as govt makes invoice matching compulsory for input tax credit

Exporters facing GST refund issues as govt makes invoice matching compulsory for input tax credit

Many exporters are facing a working capital crunch as they have run into refund problems after a recent government circular said exporters would not be eligible for input tax credit refunds in cases where they are unable to match invoices from the vendors.

This situation is a result of the government waiving off late fees for companies and suppliers to upload certain forms under the goods and service tax, tax experts said.

That led to several cases where these forms were not uploaded, and exporters were unable to take input tax credit running into crores.

As per the GST framework, tax credit cannot be availed until and unless a corresponding invoice is reflected on the government portal.

Now, exporters are having to deal with queries from tax officials while seeking refunds.

“This has been a matter of concern for exporters, especially given their experience of field officers insisting on compliance of all circulars before issuance of any refunds,” said Abhishek Jain, tax partner .

“For speedy processing of these refunds, the government should consider extending a relaxation on the matching of credits or an option of provisional refunds for the interim period to mitigate working capital concerns for the exporters,” he said.

The government circular specifically mentioned that input tax credit refunds should not be granted on invoices that are not reflected in GSTR-2A—a form that reflects outward supply invoices uploaded by suppliers.

Now, GSTR 2A is auto-created information based on GSTR 1—a monthly statement of outward supplies of goods or services filed by a company.

The government has waived late fee for filing forms such as GSTR-1 due to Covid-19 situation. While this was a step in the right direction, due to this the corresponding invoices—which exporters submit to claim refunds—are not reflected in GSTR-2A, experts said.

Hence, exporters are unable to avail tax credits, they said.

Source: Economic-Times.

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e-Way bills curb tax evasion, but glitches remain

e-Way bills curb tax evasion, but glitches remain

There are numerous concerns on the functioning of the GST regime, launched two years ago. But the e-Way bill’s system is displaying good traction. While there are a few glitches, users mostly agree that e-Way bills have brought down under-reporting and increased transparency.

The system was rolled out for inter-State consignments in April 2018, and for intra-State consignments two months later, in a phased manner. e-Way bills generation for the period April-June 2019 was almost 40 per cent higher at about 15.65 crore, compared to 11.19 crore in the same period last year.

For transport companies, the system has saved considerable time, removing check-posts and facilitating the shift from a ‘departmental policing model’ to a ‘self-declaration model’. It has also helped in curbing tax evasion.

According to chartered accountant Chirag Chauhan, e-Way bills have reduced tax evasion by almost 80 per cent. He also points out that the drop in GST collections of just 2-5 per cent in the first quarter of FY20, against a sales decrease of 15-20 per cent, is proof that tax malpractices have come down.

Under the norms, every consignment worth above ₹50,000 (raised to ₹1 lakh in a few States as a temporary relief) should begin with the generation of an e-Way bill. The bill must be raised before the goods are shipped and should include details of the products, their consignor, recipient and transporter. Though check-posts have been abolished under GST, a consignment can be intercepted at any point for the verification of its e-Way bill. If found without one, or with invoice discrepancies, a penalty of ₹10,000, or tax sought to be evaded, or, in some cases, 200 per cent of the GST amount, can be levied. These provisions are helping in reducing the disparities between the actual value of the sale and that reported in e-Way bills. Every e-Way bill generated has to be matched at the invoice level with the entries uploaded by the manufacturers or traders in their monthly GSTR-1 returns for outward supplies. Also, the GSTR-1 of the manufacturer or trader gets auto- populated in the GSTR-2A of the purchaser, based on which the latter claims the input tax credit (ITC).

Due to such matching of invoices at multiple levels, there’s hardly any scope for the supplier to under-report sales.

Once the e-Way bill portal is linked to the centralised VAHAN portal, which contains vehicles details, generation of fake e-Way bills gets checked. Further, the system helps in increasing the overall GST compliance, as a recent notification bars a supplier or a recipient from generating an e-Way bill if the GST returns are not filed for two consecutive months.

Some challenges do remain. Complaints have been raised that the time limits prescribed for the validity of an e-Way bill are not in consonance with ground realities.

Time limit

“Genuine reasons for delays should be taken into account while fixing the time limits,” Bal Malkit Singh, former President of the All India Motor Transport Congress, told BusinessLine.

On consignment verification issues, he said: “State borders have paved the way for flying squads and, the vehicles are being stopped randomly on the pretext of checking for collateral extortion.” Another issue, he said, is the lack of flexibility in rectifying errors and changing the destination address.

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Source: The-Hindu-Business-Line
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

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.

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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 extension: July deadline to file GSTR-2, GSTR-3 moved to Nov 30, Dec 11

GST extension: July deadline to file GSTR-2, GSTR-3 moved to Nov 30, Dec 11

In a move to give relief to GST taxpayers, the government today extended the deadline to file returns GSTR-2 and GSTR-3 for July to November 30 and December 11 respectively.

Form GSTR-2 reflects purchases made by a business whereas GSTR-3 is a combination of sales and purchases.
The deadline to file GSTR-2 was Tuesday whereas the last date for filing GSTR-3 was November 10.

“To facilitate trade, the last date for filing GSTR-2 and GSTR-3 for July 2017 has been extended to November 30 and December 11 respectively,” a government tweet said.

GST Extended: GSTR 2

“A notification in this regard will be issued to facilitate about 30.81 lakh taxpayers for filing GSTR-2 for July,” the Finance Ministry tweeted.

The decision comes after the Group of Ministers headed by Bihar Deputy Chief Minister Sushil Kumar Modi met on October 28 in Bengaluru to review the issues faced under the Goods and Services Tax filings.

GST expert Pritam Mahure told IANS, “This extension was necessitated as many technical glitches were cropping up during GSTR-2 filing. In days to come, the government should have well thought out strategy to address GST compliance issues.”


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Source: India Today

Government extends deadline for filing GST returns

Government extends deadline for filing GST returns

gstr-1-gst-returns

Amid reports of a sudden surge in the filing of returns that put a huge load on the GST  Network (GSTN), the IT backbone for GST, the government on Monday extended the last date for filing of returns for three categories.”GIC (GST Implementation Committee) decides to extend date of GSTR 1, GSTR 2 and GSTR 3 for the month of July to 10th, 25th and 30th September 2017 respectively,” according to an announcement on micro blogging site Twitter. “GIC decides to extend date of GSTR 1, GSTR 2 and GSTR 3 for the month of August to 5th, 10th and 15th October 2017 respectively,” it said.

The network has been facing a heavy rush of returns and several traders and businesses said they were unable to access the system. Tax experts said the GSTN portal had been facing various issues for the past few days. “The GSTR1 filing of invoice level data by assessees on the GSTN portal is facing various issues and error reports, some of which are due to the huge surge in traffic on the site and the others due to errors in the software. The GST council should push the compliance calendar by a couple of months for the GSTN site to stabilize,” said Bipin Sapra, partner at EY.


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GSTN Portal

This is the second time that the portal has faced glitches and the government has been forced to extend the date for filing of returns. Earlier, the government had extended the deadline for filing of returns of another category to August 25.

While GSTN officials have said that there are no major glitches and the difficulties faced by businesses in filing returns could be as a result of the massive surge. “People were facing difficulty since the afternoon, probably because everyone was trying to file at the same time,” said MS Mani, senior director at consulting firm Deloitte. So far, the GST Network had coped well with the surge in registrations of both new and old tax payers. GSTN was incorporated in 2013 and the Union government holds 24.5% equity in GSTN and all states, including the NCT of Delhi and Puducherry, and the empowered committee of state finance ministers (EC), together hold another 24.5%. Balance 51% equity is with non-government financial institutions. The company has been set up to provide IT infrastructure and services to the Central and state governments, tax payers and other stakeholders for implementing GST.


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Source:  The Times of India
Payment patterns might also change after GST,lead to higher working capital requirement

Payment patterns might also change after GST,lead to higher working capital requirement

GST

With GST one of the biggest change in habit would be that accounts need to be maintained regularly on a daily basis and the pressure on compliance would then become much lesser because then it becomes a normal activity. If the accounts are not being maintained regularly then it could end up being a high stress activity.

If you look at the number of compliances, the number of reports that a company needs to regularly file- there are primarily three reports GSTR- 1, GSTR- 2 and GSTR-3. The first return is due on 10th of every month after which you will need to reconcile what everyone else has filed about you by the 15th of every month. Then there is an interim date of 17th when whatever you have not reported till now comes back to you. This you do every month. After that your GSTR- 3, your tax liability liability and return will be generated which you need to pay.


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However, it is absolutely important to note that you pay the amount due as tax every month. The payment is necessary before the return is considered a valid return. So you cannot file the return and say, “I will pay later.”

I think one of the thing which every business needs to do is recognize the compliance needs of their business, ensure how much input is available to them, what they need to do to ensure that input is available and not fully rely on their accountant to keep their books. Every business would definitely need to maintain accounting software because the construct of GST is such that you cannot do your filings manually. You will need to have software, even if it is Excel, but a technology solution is needed.

What I recommend is small businesses above the threshold of Rs 20 lakh should get family members and friends to help out with the accounting. Any educated, non-working family member can be trained to help out with the compliances. This would mean the management has more time to spend on actual business and the time on compliance goes down.

Dealing with change 

When it comes to change, it is not merely limited to your books of accounts. With GST, I would like to point out one potential behavioral change that we see arising out of this compliance need. Let us say I am a trader I am buying certain goods from A. What I would need A to do is that he pays his taxes and communicates with the government that, “Yes, this is my liability.”

At this stage there are two check points that we can use. If I know A is sufficiently solvent and he would pay his taxes then I would wait for him to file his GSTR-1 and when I see my transaction appearing correctly in my GSTR-2A ,that is when I will want to pay him.

If I am not sure that he is sufficiently solvent, then I will wait for his GSTR-3 to be filed, ensure that he has paid the taxes on what he has sold to me and then want to pay him. We are likely to see a situation like this cascading across the ecosystem, which would basically increase the working capital cycles and increase the bargaining power of relatively compliant suppliers.

I would always want buy from a compliant supplier, and if there is a smaller supplier whose credentials I am not very sure about, I will extend my payment terms such that till I am sure my credit is available. I can also pay A partially and not pay him the tax component of my invoice. However, these fixes will mean credit availability for a business will increase and add another layer of operations.


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Source: ET