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IGST
GST: CBIC extends Sanction for pending IGST Refund Claims on GSTR-1 and GSTR-3B mismatch error

GST: CBIC extends Sanction for pending IGST Refund Claims on GSTR-1 and GSTR-3B mismatch error

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The Central Board of Indirect Taxes and Customs (CBIC) notified the extension of Sanction for pending IGST refund claims where the records have not been transmitted to ICEGATE due to GSTR-1 and GSTR-3B mismatch error.

The Board has received several representations in respect of IGST refunds which are pending due to mis-match of data between GSTR-1 and GSTR-3B.
The resolution to the problem was provided by the Board, as an interim measure, vide Circular No. 12/2018-Cus dated May 29, 2018 read with Circular No. 25/2019-Cus dated August 27, 2019 in respect of Shipping Bills filed upto March 31, 2019.

The CBIC said that the IGST refunds relatable to the Shipping Bills filed after 31.03.2019 having mismatch error between GSTR-1 and GSTR-3B could not be processed.

It was noted that a substantial number of IGST refunds are stuck due to above error as functionality to amend GSTR-3B return is not available so far, there is a need to extend the facility as provided vide above Circular No. 12/2018-Cus dated May 29, 2018 and 25/20199-Cus dated August 27, 2019 in respect of the Shipping Bills filed after March 31, 2019 as well.

The CBIC has decided that the solution provided in the Circular 12/2018-Customs read with Circular No. 25/2019-Customs would be applicable mutatis mutandis for the Shipping Bills filed during the financial year 2019-20 and 2020-21 i.e. in respect of all Shipping Bills filed/ to be filed upto March 31, 2021.

The CBIC stated that the corresponding CA certificate evidencing that there is no discrepancy between the IGST amount refunded on exports in terms of this Circular and the actual IGST amount paid on exports of goods for the period April 2019 to March 2020 and April 2020 to March 2021 shall be furnished by 31st March, 2021 and 30th October 2021, respectively.

“The concerned Customs Zones shall provide the list of GSTINs, who have availed benefit under Para 3A & 3B of said circular and yet have not submitted the CA certificate to the Board by the 15th April 2021 for the IGST refunds relatable to financial year 2019-20 and by 15th November, 2021 for financial year 2020-21,” the CBIC said.

Source: Taxscan.

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GST collection
GST collections for Jan 2021 touch all-time high of Rs 1.2 lakh crore

GST collections for Jan 2021 touch all-time high of Rs 1.2 lakh crore

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Goods and service tax (GST) collections for January 2021 touched an all-time high of Rs 1.19 lakh crore since introduction of GST regime, the finance ministry said Sunday.

“The GST revenues during January 2021 are the highest since the introduction of GST and have almost touched the ₹ 1.2 lakh crore mark, exceeding last month’s record collection of ₹1.15 lakh crore,” the ministry said.

The consistent collections of over Rs 1 lakh crore for the last four months and a steep increasing trend over January were ‘clear indicators of rapid economic recovery’ post pandemic, the ministry added.

It attributed the continued rise in collections to closer monitoring against fake-billing, deep data analytics using data from multiple sources including GST, income-tax and customs IT systems and effective tax administration.

The average year-on-year growth in GST revenue over the first four months in the second half of the financial year has been 8% as compared to (-) 24% during the first half of the year, the ministry added.

GST collections for January 2021 – touching the Rs 1.2 lakh crore mark – were 8% higher than last year collections of over Rs 1.1 lakh crore. During the month, revenues from import of goods was 16% higher and the revenues from domestic transactions including import of services, was 6% higher in the same period.

The gross GST revenue collected in the month of January 2021 till 6pm on January 31, 2021 stood at Rs 1,19,847 crore of which central GST was Rs 21,923 crore, state GST was Rs 29,014 crore, integrated GST was Rs 60,288 crore, which included Rs 27,424 crore collected on import of goods. Of the total collections, cess was Rs 8,622 crore which included Rs 883 crore collected on imports.

About 90 lakh GSTR-3B returns were filed for the month of December up to January 31, 2021.

The government has settled Rs 24,531 crore to CGST and Rs 19,371 crore to SGST from IGST as regular settlement.

The total revenue earned by Central Government and the State Governments after regular settlement in the month of January is Rs 46,454 crore for CGST and Rs 48,385 crore for the SGST.

Source: Economic-Times

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revenue collection from Goods and Services Tax (GST)
GST collection to be record Rs 1.20 lakh crore in January: SBI report

GST collection to be record Rs 1.20 lakh crore in January: SBI report

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After clocking record collections in December, the Goods and Service Tax (GST) revenue is expected to cross Rs 1.20 lakh crore in January 2021, indicating that government’s ongoing efforts are bearing fruit.

GST collections will be in the range of Rs 1.21-1.23 lakh crore and may still have an upside, says Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India.

Monthly GST collections have been showing higher year-on-year numbers since September 2020, indicating revival in the economy. It touched a record high of Rs 1.15 lakh crore, which was the highest ever collections since the implementation of the countrywide tax in July 2017. The previously record high of Rs 1,13,866 crore was reported in the month of April 2019.

“The Government’s ongoing efforts are bearing fruit in the form of GST collections. After clocking record collections in December 2020 month (Rs 1.15 lakh crore), our internal simulation model indicates that January 2021 GST collections will be in the range of Rs 1.21-1.23 lakh crore and may still have an upside. The positive trend which started from September 2020 has sustained and gained momentum,” according to SBI research report ‘Ecowrap’.

Considering the highest ever January numbers, if 50 per cent of the Integrated GST (IGST) collection is disbursed to states by March 21, then state GST shortfall can narrow down to only a minimal Rs 11,000 crore after taking into account the full compensation cess, the report noted.

If the central government keeps 60 per cent of the IGST revenue, then the states could be staring at a shortfall of around Rs 67,000 crore, it added.
The SGST (state GST) collection for states was 12 per cent lower at Rs 1.87 lakh crore in April-December 2020, as compared to the same period previous year, while the allocated IGST was 13 per cent lower at Rs 1.26 lakh crore.

Meanwhile the cess collection stood at Rs 60,312 crore, which was 17 per cent lower than last year. The combined amount of SGST, allocated IGST and cess stands at Rs 3.73 lakh crore, which was 13 per cent lower than last year’s collection in the same period and it was equal to 58 per cent of the states’ budgeted SGST which stood at Rs 6.49 lakh crore.

As per the report, the government has already borrowed Rs 11.46 lakh crore (as on January 22, 2021) this fiscal and the remaining gross borrowing of Rs 1.6 lakh crore is expected as per the calendar, thereby taking the total gross borrowing to Rs 13.03 lakh crore, lower than Rs 13.10 lakh crore earlier.

Meanwhile, the government surplus cash balances have increased significantly recently. The number has increased to Rs 3.34 lakh crore as on January 28, 2021 compared to Rs 1.08 lakh crore in September 2020, which indicates that the government is collecting huge amount of tax revenues which it is not able to spend.

“This in turn means that the government will have to borrow less next year than our earlier anticipated gross borrowing of Rs 11.5 lakh crore. Thus, the market perception of upward pressure on bond yield due to increased borrowing next fiscal or even this fiscal is not correct,” it said.

The SBI report suggested that the surplus cash balances can well be used to finance a sizeable portion of fiscal deficit in FY22 to keep interest rate increase in check and fasten the pace of recovery further.

As per the report, the other option is to also use a portion of cash balances to spend and pay back all outstanding dues of FY21, like outstanding SME payments from government departments, pending GST bills which in itself will usher in a big fiscal push in FY22. “Clearly, we could be in for a goldilocks period. The question is can we go for the jugular?” it said.

Source: businesstoday

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gstr-9
GST: CBIC enables GSTR-9 of FY 2019-20 on GST Portal

GST: CBIC enables GSTR-9 of FY 2019-20 on GST Portal

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The Central Board of Indirect Taxes ( CBIC ) has enabled the GST Annual Return ( GSTR-9 ) of Financial Year 2019-20 on the GST Portal.

A statement issued by CBIC said that, Facility to file an annual return in Form GSTR-9 for FY 2019-20 is now available. The Form is enabled for taxpayers whose table 8A computation has been completed. Computation of table 8A of the said return for auto-population from returns is in progress which is likely to be completed soon. Please ensure that all applicable returns of the said year have been filed before attempting to file the said return.

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. Basically, 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 & 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.

It may be noted that filing of Annual Return (FORM GSTR-9/ GSTR-9A) for 2018-19 is optional for taxpayers who had aggregate turnover below Rs. 2 Crore. The filing of reconciliation Statement in FORM 9C for 2018-19 is also optional for the taxpayers having aggregate turnover upto Rs. 5 Crore.

Source: TaxScan.

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GST collection
GST collection drops for second month in Aug to Rs 86,449 crore

GST collection drops for second month in Aug to Rs 86,449 crore

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The GST collection declined for the second consecutive month in August to Rs 86,449 crore, the finance ministry said on Tuesday.

On year-on-year basis, the August collection was 12 per cent lower compared to Rs 98,202 crore mopped up in the same month last year.

Of the gross collection, Central Goods and Services Tax (CGST) stood at Rs 15,906 crore, State Goods and Services Tax (SGST) Rs 21,064 crore, Integrated Goods and Services Tax (IGST) Rs 42,264 crore (including Rs 19,179 crore collected on import of goods) and Cess Rs 7,215 crore (including Rs 673 crore collected on import of goods).

Tax experts said the revenue numbers indicate that domestic economic activity is picking up and the drop in the collection is mainly due to reduced imports.

In a statement, the finance ministry said the government has settled Rs 18,216 crore to Central GST and Rs 14,650 crore to State GST from Integrated GST as regular settlement.

“The total revenue earned by Central Government and the State Governments after regular settlement in the month of August, 2020 is Rs 34,122 crore for CGST and Rs 35,714 crore for the SGST,” it added.

The revenues for August are 88 per cent of the GST collected in the same month last year. During the month, the revenues from import of goods were 77 per cent and the revenues from domestic transaction (including import of services) were 92 per cent of the revenues from these sources during the same month last year, the ministry said.

It further said that taxpayers with turnover less than Rs 5 crore have been permitted to file GST returns till September.

The GST collections have faltered since the beginning of the current fiscal as COVID-19-induced lockdown hampered economic activity.

The revenue in April was Rs 32,172 crore, May (Rs 62,151 crore), June (Rs 90,917 crore) and July (Rs 87,422 crore).

Leader (Indirect Tax) Pratik Jain said the trend in the last couple of months show collections seem to have stabilised at around 10 per cent lower than corresponding month last year.

“As things are opening up gradually, the collection is likely to be progressively better in coming months,” Jain said.

India Partner M S Mani said the collections are on the recovery path and GST collections on domestic transactions just 8 per cent lower than the same month last year indicate revival of economic activities.

“The state-wise data of GST collections indicates that the revival process has resulted in marginal collection increases in some states like Rajasthan and UP, marginal reductions in states like Haryana and Gujarat with significant dips in Maharashtra, Karnataka and Tamil Nadu,” Mani said.

Tax Partner Abhishek Jain said a significant part of the dip is attributable to imports, which has witnessed a decline as a result of reduced international trade.

“Also, domestic collections having attained 92 per cent year-on-year for operations in July is a sign of economic recovery post upliftment of lockdown,” he added.

Chairman and Founder Kapil Rana said: “The GST collection data demonstrates two things – domestic consumption is strongly overcoming the effect of the pandemic, secondly, people are showing more reliance on domestic products, which is pushing the domestic consumption hence the revenue collection”.

Source: Times-Of-India.

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GST collection
GST mop-up in July at Rs 87,422 crore, slips from June collections

GST mop-up in July at Rs 87,422 crore, slips from June collections

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The government collected goods and services tax (GST) of Rs 87,422 crore for July, lower than that collected in June, indicating a stability in collections, analysts said.

“During the previous month, a large number of taxpayers also paid taxes pertaining to February, March and April 2020 on account of the relief provided due to COVID-19,” the finance ministry said in a statement Saturday.

“Taxpayers with turnover less than Rs 5 core continue to enjoy relaxation in filing of returns till September 2020,” the ministry added.

The revenues for July 2020 are 86% of the GST revenues in the same month last year. During the month, the revenues from import of goods were 84% and the revenues from domestic transaction (including import of services) were 96% of the revenues from these sources during the same month last year.

“A collection approximate to 86% of last year does showcase quite a significant economic recovery from the pandemic though a bit of it could be on account of pent up demand. With economic activities increasing, the collections should hopefully witness aligning with estimates soon,” said Abhishek Jain, Tax Partner.

Of the total collections in July, Central Good & Services Tax CGST is Rs 16,147crore, State GST is Rs 21,418 crore, Integrated GST is Rs 42,592 crore (including Rs 20,324 crore collected on import of goods) and Cess is Rs 7,265 crore (including Rs 807 crore collected on import of goods).

Source: Economic-Times.

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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

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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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GST Refund
Govt blocks fraudulent GST refund claims worth Rs 1,875 crore

Govt blocks fraudulent GST refund claims worth Rs 1,875 crore

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The government has blocked fraudulent Goods and Services Tax (GST) refund claims worth Rs 1,875 crore involving 1,377 exporters after their addresses could not be traced, a Union finance ministry official said.

“This number of risky exporters, also, includes seven exporters accredited as star exporters,” the official said requesting anonymity.

The government rates export houses on the basis of their performance and accord them one to five stars.

The Central Board of Indirect Taxes and Customs (CBIC) has instructed its officials to verify the correct refund of input tax credit (ITC) by such risky exporters on the basis of pre-defined risk parameters, he added.

According to the official, while CBIC is focusing on quick disbursal of pending refunds to exporters, it also uses data analytics to identify “risky” exporter entities that take input tax credit fraudulently and monetise it by paying Integrated Goods and Services Tax (IGST) and claiming a refund on that.

Imports of goods and services are treated as inter-state supplies and attract IGST.

“The verification exercise is aimed at preventing unscrupulous exporters from defrauding the state exchequer and bringing a bad name to the exporting community at large,” he said.

CBIC has, however, assured all genuine exporters that they would continue to get their refunds in a timely manner in a fully automated environment, he said.

The official said a total of 7,516 exporters figure in the risky exporters’ list to date. “IGST refund worth Rs 1,363 crore is suspended in respect of 2,830 risky exporters. Adverse reports have been received in respect of 2,197 risky exporters,” he added.

Source: Hindustan-Times.

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GST Analytics wing to identify risky suppliers to exporters

GST Analytics wing to identify risky suppliers to exporters

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The CBIC has asked GST risk management wing to conduct supply chain analysis to identify risky major suppliers to exporters and share it with jurisdictional field officers. The Central Board of Indirect Taxes (CBIC) had received representations from exporters saying in some cases the Integrated GST (IGST) refunds are getting delayed by over 6 months.

Last year, the CBIC had detected several cases of firms availing credit fraudulently through refund of Integrated Goods and Services Tax on exports of goods.

To mitigate the risk, the CBIC has taken measures to apply stringent risk parameters based checks, and the consignment of such exporters in risky category are subject to 100 per cent Customs examinations and their refunds were kept in abeyance.

The CBIC, which had in January issued a standard operating procedure (SoP) to be followed by such exporters, has now asked GST and Customs Zonal principal chief commissioners to forward all pending verification report to Directorate General of Analytics and Risk Management (DGARM) by June 5.

“The zonal Peincipal Chief Commissioners/chief commissioners of CGST and CX zones are advised to put a process in place to ensure that in future all such verifications are completed and reports sent to DGARM within maximum 3 weeks of receipt of request of verification from DGARM,” the CBIC said.

While partially modifying the SoP issued in January, the CBIC said in order to cut down the time taken in grant of NOC (no objection certificate), the DGARM will “conduct supply chain analysis without waiting for verification report from field and share risky first and second level major suppliers with the jurisdictional CGST (Central GST) formations at the same time when the risky exporter details are shared with the CGST formations”.

The verification report in respect of identified suppliers will be sent by GST and customs Commissionerates directly to DGARM, which will take decision on grant of NOC or otherwise based on such verification reports in respect of exporters and its suppliers.

“DGARM would grant final NOC to the exporter once the verification of the identified first and second stage risky supplier is found in order,” CBIC said.

In case of availment of in admissible credit by the suppliers, the GST officers will ensure due process of recovery. If the taxpayer is under the administrative control of states/UTs, the issue of recovery would be flagged to them, the CBIC said.

Associates Senior Partner Rajat Mohan said exporters have a vested right of tax refunds unless they are proven guilty.

“With an internal memo from GST policy wing looping in the senior-most tax officers in a state is expected to ease the plight of exporters,” he said.

Source: Economic-Times.

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GST Refund
CBIC clears Rs 10,700 cr GST, customs duty refund in 16 days

CBIC clears Rs 10,700 cr GST, customs duty refund in 16 days

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The Central Board of Indirect Taxes (CBIC) has cleared over Rs 10,700 crore worth refunds in GST and customs duty between April 8-23.

In the ‘Special Refund and Drawback Disposal Drive’, the CBIC officers have cleared over 1.07 lakh Goods and Services Tax and IGST refund claims worth Rs 9,818.12 crore.

Over 1.86 lakh customs and duty drawback refund was processed totalling Rs 915.56 crore, the CBIC said in a tweet.

“CBIC is committed to help GST Taxpayers/Exim Trade during #COVID19. Expeditious sanction of refunds during Special Refund Drive provide relief to trade, especially MSMEs,” it said.

The Finance Ministry had on April 8 said that to provide relief during COVID-19, it has been decided to issue all pending GST and custom refunds which would benefit around 1 lakh business entities, including MSME.

The total refund granted will be approximately Rs 18,000 crore, it had said.

The CBIC had earlier asked its field officers to avoid asking for physical submission of documents from entities who are claiming GST and customs refunds and instead use official email for all communication.

The CBIC had said that the decision to process pending refund claims has been taken with a view to provide immediate relief to taxpayers in these difficult times even though the GST Law provides 15 days for issuing acknowledgement or deficiency memo and total 60 days for disposing off refund claims without any liability to pay interest.

Source: Economic-Times

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