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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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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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Nil Late Fee on GSTR-3B: System not Updated, Excess Amount would be re-credited soon

Nil Late Fee on GSTR-3B: System not Updated, Excess Amount would be re-credited soon

The Goods and Services Tax portal has today said that the system has not been updated according to the change in the late fee for the delay in GSTR-3B. The Central Board of Indirect Taxes and Customs ( CBIC ) has notified that late fees on GSTR-3B would be waived off with Nill Liabilities. In a Notification issued by CBIC said that, For the period from July 2017 to Jan 2020, which is prior to the COVID period, a lot of Return Filing has been pending. For all those who have no tax liabilities but who have not filed their returns between July 2017-Jan 2020, there will be zero late fees.

Responding to the new change, the portal today tweeted “the change in late fee amount made vide notification no. 57/2020 dated 30-06-2020 has been incorporated on the GST portal. Late fee paid in excess than prescribed in the notification shall be re-credited in due course.”

As per the notification, for the taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year, who fail to furnish the return in FORM GSTR-3B for the months of May 2020 to July 2020, by the due date but furnish the said return till the 30th day of September 2020, the total amount of late fee under section 47 of the said Act, shall stand waived which is in excess of two hundred and fifty rupees and shall stand fully waived for those taxpayers where the total amount of central tax payable in the said return is nil”. Small taxpayers whose aggregate turnover is up to ₹ 5 crores will be provided a waiver of late fees and interest if they file the form GSTR-3B for the supplies affected in months of May, June, and July 2020, by September 2020, no late fee or interest.

Source: TaxScan.

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CBIC waives off late fee on late GST return filing

CBIC waives off late fee on late GST return filing

The Central Board of Indirect Taxes and Customs (CBIC) has notified waiver of late fee, capping of late fee at Rs 500 in some cases, interest payable on late payments and extension of due dates for businesses to file goods and service tax (GST) returns for the Covid-19 impacted period, till October.

The decisions were taken by the GST Council on June 12.

Taxpayers who do not have any tax liability but were yet to file returns for the period from July 2017 to January 2020 – prior to the Covid period – no late fee will be charged, the notification issued Wednesday said.

For taxpayers having liability but not having filed their returns, they can do so with a late fee of maximum Rs 500, if returns are submitted by July 1, 2020.

Small taxpayers whose aggregate turnover is up to Rs 5 crore will be provided a waiver of late fees and interest if they file the form GSTR-3B for the supplies affected in months of May, June, and July 2020, by September 30, 2020, the notification added.

During Covid period of February, March and April 2020, interest rate on late return filings by small taxpayers with turnover up to Rs 5 crore, will be reduced to 9% from 18%, if returns of inward supplies are filed till September 30.

Taxpayers having aggregate turnover of up to Rs 5 crore in the previous financial year, whose principal place of business is in the states of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman, and the Nicobar Islands or Lakshadweep, the returns for August has to be filed by October 1, 2020.

For taxpayers with turnover more than Rs 5 crore, in Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh or Delhi, the return for August has to be filed by October 3, 2020.

Source: Economic-Times.


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GSTN releases FAQs on filing Form GSTR-3B as NIL

GSTN releases FAQs on filing Form GSTR-3B as NIL

The Goods and Service Tax Network (GSTN) releases FAQs on filing Form GSTR-3B as NIL.

Firstly, “Form GSTR-3B can be filed as a nil return if there are no outward supplies as well as a liability (including reverse charge liability) in the month, for which the return is being filed. This form can be filed nil, in both online mode and in offline mode (by SMS),” the GSTN clarified.

Secondly, the GSTN further stated that Nil Form GSTR-3B for a tax period can be filed, if the person Has not made any Outward Supply and do not have any reverse charge liability; do not intend to take any Input tax credit and do not have any Liability for that particular or earlier Tax Periods.

Thirdly, it was clarified that the Filing of Form GSTR-3B is mandatory for all normal and casual taxpayers, even if there is no business activity in any particular tax period. So, for such tax period(s), the return can be filed as NIL (if all conditions for filing Nil return are satisfied).

Fourthly while answering the question as to when can Nil Form GSTR-3B be filed, the GSTN clarified that a taxpayer may file Nil Form GSTR-3B, anytime on or after the 1st of the subsequent month for which the return is being filed for.
Instead of filing Nil Form GSTR-3B through online mode on GST Portal, it can be filed through SMS also.

However, for filing Nil Form GSTR-3B through SMS certain conditions needs to be fulfilled which includes taxpayer must be registered as Normal taxpayer/ Casual taxpayer/ SEZ Unit / SEZ Developer and must have a valid GSTIN; authorized signatory and his/ her phone number must be registered on the GST Portal; there is no pending liability of previous period tax, interest or late fee while filing Nil Form GSTR-3B; all GSTR-3B return of previous tax periods must be filed; and there must not be any data in saved stage, in the online version of Form GSTR-3B, on the GST Portal.

https://www.taxscan.in/preview/?previews=1nOM2yzPDgkNEW9Yo-T5xOMbJbC0G573s/

Source: TaxScan.
Government rolls out facility of filing of Nil GST return through SMS

Government rolls out facility of filing of Nil GST return through SMS

In a bid to make compliance easier for taxpayers, the Government on Monday allowed filing of Nil GST monthly return in FORM GSTR-3B through SMS.

This would substantially improve ease of GST compliance for over 22 lakh registered taxpayers who had to otherwise log into their account on the common portal and then file their returns every month.

Now, these taxpayers with NIL liability need not log on to the GST Portal and may file their NIL returns through a SMS. According to a statement, the functionality of filing Nil FORM GSTR-3B through SMS has been made available on the GSTN portal with immediate effect.

The status of the returns so filed can be tracked on the GST Portal by logging in to GSTIN account and navigating to Services>Returns>Track Return Status. The procedure to file Nil returns by SMS is as follows: –

“This is a good move by the Government to ease the compliance burden for taxpayers with nil liability. India ranks a lowly 115 out of around 190 countries in ease of paying taxes, and such initiatives are definitely needed to make the compliances easy, less time consuming and in line with global best practices,” said Harpreet Singh, Partner, KPMG India.

Similarly, MS Mani, Partner, Deloitte India says, “Filing Nil returns through an SMS would significantly help smaller businesses as they can now focus on businesses revival.”

Source: Economic-Times.

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GST collections down 70% in April

GST collections down 70% in April

Centre may have held over the monthly GST collection figures for April, but data released by the Comptroller General of Accounts (CGA) suggests that GST collections have seen a precipitous drop of up to 70 per cent in April.

Data released by the Comptroller General of Accounts (CGA) for April 2020 shows that the Centre’s share of GST collection during the month was a paltry Rs 16,707 crore compared to Rs Rs 55,329 crore in the previous year, a drop of 70 per cent. Usually, the GST numbers announced by the government comprise collection by both the Centre and states. However, CGA’s data only shows the Centre’s share of the GST collection.

In April 2019, total GST collection – state and Centre included – was Rs 113,865 crore. Extrapolating from the Centre’s GST numbers (Rs 16,707 crore) for April, 2020 the total GST collection – Centre and State – could be around Rs 34,300 crore.

The sharp drop in the GST collection in April 2020 could partly be because of lockdown due to coronavirus outbreak. However, it is to be noted that April GST collections are for March transactions, and the lockdown started only from 25 March.

Therefore, the poor collection in April could be mostly due to extension of return filing dates. On March 24, the government announced several measures to ease the compliance burden on taxpayers given the outbreak of Coronavirus.

As per the announcements, for registered GST taxpayers with aggregate annual turnover less than Rs 5 crore, the last date for filing GSTR-3B due in March, April and May 2020 by the last week of June 2020. For such taxpayers, no interest, late fee, and penalty were to be charged.

For those whose turnover is Rs 5 crore or more, could file returns due in March, April and May 2020 by last week of June 2020 but the same would attract reduced rate of interest at 9 per cent per annum from due date (current interest rate is 18 per cent per annum). No late fee and penalty to be charged, if complied before till June 30, 2020.

Source: Business-Today.

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Govt enables Facility to File GSTR-3B via EVC and SMS

Govt enables Facility to File GSTR-3B via EVC and SMS

Amid the pandemic situation in India, the Central Board of Indirect Taxes and Customs (CBIC) has enabled the facility to file GSTR-3B through Electronic Verification Code (EVC) and Short Message Service (SMS). The move aims at easing the compliance procedure under the Goods and Services Tax (GST) regime.

The notification issued by the Board today said that a registered person registered under the provisions of the Companies Act, 2013 (18 of 2013) shall, during the period from the 21st day of April, 2020 to the 30th day of June, 2020, also be allowed to furnish the return under section 39 in FORM GSTR-3B verified through electronic verification code (EVC).

Further, the CGST Rule 67 was also amended and inserted a new clause 67A where the Board provided the manner of furnishing of return by short messaging service facility. As per the said provision, a registered person who is required to furnish a Nil return under section 39 in FORM GSTR-3B for a tax period, any reference to electronic furnishing shall include the furnishing of the said return through a short messaging service using the registered mobile number and the said return shall be verified by a registered mobile number based One Time Password facility.

Read Notification here: https://www.taxscan.in/preview/?previews=1TCL368VXb3nsDC-Hb1Ak1d1EfR0oYGG4

Source: TaxScan.

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