TAX GRIP

 

  Earlier finding the corresponding HSN codes vis a vis a common description was a bit challenging for the taxpayer. To ameliorate this challenge and to make the functionality user friendly, ‘Search HSN’ functionality has been revamped by linking it with e-invoice database and Artificial Intelligence tools in the following ways:   1. The Search HSN Code functionality has been enhanced, where the taxpayers can search the HSN code and the applicable Technical description through common parlance / trade description of the goods/ services as they are known in the Trade. It helps the taxpayers to search HSN Code by providing description/ part of a description. 2. The facility is available at both pre-login and post login. Taxpayers/users can access the same by the following navigation: Home>Services>User services>Search HSN Code 3. Taxpayer can search HSN/ Description using either of the two options which are provided as radio buttons: (i) HSN and (ii) Descri...

  Changes in GSTR 1 Format A revamped & enhanced version of GSTR-1/IFF is being made available on the GST Portal.  1 . GSTR 1 Dashboard is Reorganized: GSTR-1/IFF has been grouped in two sections namely ADD RECORD DETAILS (For adding new details) and AMEND RECORD DETAILS (amending previously filed details)  2. Table/Tile Document Counts : The document count for each tile (table) has been made more informative with color coding. The status of uploaded (Saved, Pending, Errored) documents with their count will also be made available. 3. Enhancement in B2B and CDNR table/tile: Taxpayers will now be able to view a new record details table with the details of the recipient -wise count of records. 4. Records per page feature: Taxpayers can customized number of records to be viewed on per page. By default, the Records per page will be set at 10 records per page and can be increased to view 100 records per page. 5. Changes in Steps to file GSTR-1/IFF: In case new records have ...

  The technical aspects of the scheme of Input Tax Credit (ITC) A.   Who can avail ITC? Any registered person can avail credit of tax paid on the inward supply of goods or services or both, which is used or intended to be used in the course or furtherance of business. B. What are the pre-requisites for availing credit by registered person? a. He is in possession of tax invoice or any other specified tax paying document. b. He has received the goods or services. “Bill to ship” scenarios also included. c. Tax is actually paid by the supplier. d. He has furnished the return. e. If the inputs are received in lots, he will be eligible to avail the credit only when the last lot of the inputs is received. f. He should pay the supplier, the value of the goods or services along with the tax within 180 days from the date of issue of invoice, failing which the amount of credit availed by the recipient would be added to his output tax liability, with interest [rule 2(1)...

Input Tax Credit   What is Input Tax Credit (ITC)? Input Tax Credit refers to the tax already paid by a person at time of purchase of goods or services and which reduce the tax on outputs. Amount Amount Tax on Output 500 Less: Tax paid on Purchase of A 150 Tax paid on Purchase of B 200 Tax paid on Purchase of C 100 450 Tax Payable 50   SGST,  UTGST,  CGST and IGST – How ITC Can be set off Amount of Input Tax Credit on IGST shall first be utilized for the payment of IGST then for payment of CGST and the balance, if any for the payment of SGST or UTGST. Amount of Input Tax Credit on account of CGST shall first be utilized for the payment of CGST then for payment of IGST. Such amount cannot be used for payment of SGST or UTGST. Amount of Input Tax Credit on account of SGST or UTG...

The date for filing September 2021 GST Returns are nearing - here is a to-do list you must check off before filing-

  Implementation of the Rule-59(6) on GST Portal from 1st September 2021. 1. Rule-59(6) of CGST Rules, 2017; inserted vide Notification No. 1/2021 dated 1st January 2021, provides for restriction in filing of GSTR-1 in certain cases : a) a registered person shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for preceding two months; b) a registered person, required to furnish return for every quarter under the proviso to sub-section (1) of section 39, shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in FORM GSTR-3Bfor preceding tax period; 2. This Rule will be implemented on GST Portal from 1st September, 2021. On implementation of the said Rule, the system will check that whether before the filing of GSTR-1...

 

  4 NEW UPDATES ON GST PORTAL (i) Taxpayers have now been provided the facility to view/download Electronic cash or Credit ledgers for a period of 12 months. Earlier, the ledgers were allowed to be  downloaded for a period of 6 months only. The ledgers can be downloaded in both Excel and Pdf formats. (ii) Upto 6 preferred banks will be shown to a taxpayer while making e-Payment on GST Portal. When a taxpayer makes the first payment, the  GST portal will automatically  add the selected bank and it will get updated in the Preferred Banks list. Taxpayer can delete any of the preferred banks at any point of time.   (iii) Taxpayers can now easily Import the E-way Bill data using the “Import EWB Data” tab available on GST Portal on the Form GSTR-1 page – 4A, 4B, 4C, 6B, 6C – B2B invoices 5A, 5B – B2C (Large) invoices 12 – HSN wise summary of outward supplies.   (iv) Now QRMP taxpayers can file NIL Returns through SMS.  The format of the message is < NIL ...

  Annual Return (GSTR-9) has been enabled in Goods and Service Tax Network (GSTN) The GSTN has enabled Annual Return GSTR-9 for the F.Y 2020-21 on GST Portal for filing. Points to be noted: 1. Annual Return GSTR-9 once filed cannot be revised. 2. Computation of ITC made based on the GSTR-1/IFF/GSTR-5 filed by the tax payer up to July 15, 2021. 3. GSTR-1/IFF/GSTR-5 which has been filed afterwards will be covered in the next update. 4. Return GSTR-1/IFF/GSTR-3B of the financial year should have been filed before the filing of GSTR-9. 5. GSTR-9C will be enables post filing of GSTR-9C 6. If number of records in Table 17 or 18 are more than 500 then offline tool has to be used for filing of GSTR-9 7. For Financial Year 2020-21 the due date of filing GSTR-9 and 9C is December 31, 2021.

Mandatory to furnish bank details within a specified time limit As per Rule 10A of (Goods and Service Tax Network) GSTN, it is mandatory to furnish the bank statement within 45 days from the date of registration or else it may get cancelled if the details are not updated within the time limit. The steps to check and update the bank account details has been furnished. The GST Update ran as follows: Functionality to check and update bank account details. 29/07/2021 How to add bank account in GST registration details. A functionality to check status of bank account details update for the taxpayers who have taken new registration at GST Portal but have not yet furnished the same, has been introduced, in view of Rule 10A of the CGST Rules 2017. Such taxpayers are required to update their Bank Account Details within 45 days of the first login henceforth. The taxpayers may login and update Bank Account details through Non-core amendment in the manner as specified in the below table. In case...

  Filing of Annual returns by composition tax payers – Negative Liability in GSTR-4   Composition taxpayers are reporting negative liability appearing in their GSTR-4  since FY 2019-20, taxpayers has to pay the liability through Form GST CMP-08 on quarterly basis while GSTR-4 Return is required to be filed on annual basis after end of a financial year. Why is  there  Negative Liability in GSTR-4? Taxpayers should fill up table 6 of GSTR-4 mandatorily. In case, there is no liability, the said table may be filled up with ‘0’ value. If no liability is declared in table 6, it is presumed that no liability is required to be paid, even though, taxpayer may have paid the liability through Form GST CMP-08. In such cases, liability paid through GST CMP-08 becomes excess tax paid and moves to Negative Liability Statement for utilization of same for subsequent tax period’s liability. Where did the tax payer go wrong? Liability paid through Form GST CMP-08 is au...

New functionality on GST Portal regarding Annual Aggregate Turnover (AATO) GSTN has implemented a new functionality on taxpayers'  dashboards with the following features: •The taxpayers can now see the exact Annual Aggregate  Turnover (AATO) for the previous FY, instead of just the two  slabs of Above or Upto Rs. 5 Cr. •The taxpayers can also see the Aggregate Turnover of the  current FY based on the returns filed till date. •The taxpayers have also now been provided with the facility  of turnover update in case taxpayers feel that the system  calculated turnover displayed on their dashboard varies from  the turnover as per their records. •This facility of turnover update shall be provided to all the  GSTINS registered on a common PAN. All the changes by  any of the GSTINS in their turnover shall be summed up for  computation of Annual Aggregate Turnover for each of the  GSTINS •The taxpayer can amend the turnover twice within a per...

Types Of GST - SGST, CGST, IGST and UGST There are four types of GST Ø SGST (State Goods and Service Tax) Ø CGST (Central Goods and Service Tax) Ø IGST (Integrated Goods and Service Tax) Ø UTGST (United Territory Goods and Service Tax)   SGST (State Goods and Service Tax) SGST or State Goods and Service Tax is a tax under GST regime that is applicable on intrastate (within the state) sale of goods or services. In case of an Intrastate transaction both CGST and SGST are levied equally. It is governed by the SGST Act. The revenue earned on SGST is solely claimed by the respective state government. E.g. If a manufacturer or trader from Gujrat sells goods to a customer in Gujrat (i.e. within the state) for Rs. 4,000 and the GST charged is 18 %. In such case the GST will be divided equally as -   9% CGST and 9% SGST.The total amount to be charged by the trader or manufacturer will be Rs. 4,720. Out of the revenue earned from GST under the head of SGST, i.e. Rs...

Under Notification No. 78/2020 dated 15.10.2020 HSN (Harmonised System of Nomenclature Code) /SAC ( Services Accounting Code) is mandatory in the invoices from 01.04.2021. What is HSN/ SAC Code: Currently in India we have an  8-digit  structure of an  HSN / SAC Code , wherein the  first 2 digits  define the Chapter where the good or service is listed in the Code list, at  4-digit level  are the headings, at 6  digits  are the subheadings and finally at  8 digits  are the tariff items for more precise classification. Turnover Requirement:   Turnover INR (previous Financial Year)            HSN /SAC Code < 5 Crores    4          Digits >5 Crores                 6 ...