Taxation & Accounting

Author: CMA Bhogavalli Mallikarjuna Gupta (Page 2 of 616)

Advisory on Annual Aggregate Turnover Functionality

Aggerate Annual Turnover for the Financial Year is being displayed on the GST portal when the user clicks on Navigate to Returns Dashboard at the time of login.

The values for AATO displayed is based on return filing data filed by taxpayers and computation done as on 26/06/2021. Turnover value is updated dynamically as per filing of Returns. Aggregate Turnover is updated dynamically based upon the filings done by all GSTINs under the PAN. Final Turnover & Aggregate Turnover will be made available post tax-officer’s verification 11/10/2021.

On the page user can see the values based on the returns filed and if there not filled up to date, the AATO  is estimated and shown. In case if the returns are filed, then the actual AATO based on the returns is displayed.

If the value for AATO is wrong, the taxpayers can file a ticket  https://selfservice.gstsystem.in . and get the same rectified.

An Advisory has been issued in this context and it is highly recommended for all the professional to go through the same.

  • This facility shows to the taxpayer AATO (Annual Aggregate Turnover) based on the returns filed by him/her in the last financial year.
  • The facility of turnover update has also been provided to the taxpayer in this functionality, if the said taxpayer feels that the system calculated turnover varies from the turnover as per his/her records.
  • As stated, the calculation is based on the returns filed in the last financial year. For details of the calculation see Turnover calculation logic .
  • 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 his 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 period of one month from the date of roll out of this functionality.
  • Thereafter, the updated value shall be frozen with no further attempts provided to the taxpayers to amend their turnover(s) and this turnover figure will be sent to the Jurisdictional Tax Officer for review.
  • In case the jurisdictional Officer finds any discrepancy in the updated/amended values furnished by the taxpayer, the said officer can amend the turnover.
  • Tax officers are expected to consult and/or communicate with the taxpayer before amending the turnover declared by the taxpayer.
  • The turnover finalized by the tax officer after such consultation shall be considered final.
  • In case no action is taken by the officer within 30 days on the turnover reported by the taxpayer, the same shall then be considered final (which will be displayed to the taxpayer accordingly) and will be considered as such for the entire previous financial year.
  • In case of any grievances pertaining to the said functionality, the aggrieved taxpayer can raise a ticket at https://selfservice.gstsystem.in .
  • All such tickets shall be investigated by the technical team and shall be resolved on a case by case basis and when needed they shall be forwarded to the jurisdictional officer.

Note: Taxpayers are expected to use this functionality only if there is a discrepancy observed by them in the system calculated turnover as per the calculation logic  mentioned above.

http://www.onlinegst.in/

Annual Aggregate Turnover Computation Methodology

For Normal Taxpayers who have filed all GSTR-3Bs:

Turnover reported in GSTR-3B Column 2 of Table 3.1 { (a),(b),(c) & (e)} during the Financial Year 2020-21 have been taken into consideration (in case all the returns have been filed for the same).

  1. Outwardtaxable supplies(other than zerorated, nil rated and exempted).
  2. Outwardtaxable supplies(zero rated).
  3. Other outward supplies (nil rated, exempted).
  4. Non-GST outward supplies.

For Normal Taxpayers who have not filed all GSTR-3Bs:

The following formula is used for extrapolation of turnover:

(Sum of taxable value) X (*No.of GSTR-3B liable to be filed)/(No. of GSTR-3B filed)

*Categorisation of taxpayers to derive the number of GSTR-3B liable to be filed

I. GSTINs who are active as on date and were NOT IN composition during FY 2020-21,number of GSTR-3B liable to be filed have been arrived at as follows:

  1. If the taxpayer is migrated, then No.of GSTR-3B liable to be filed is 12
  2. If the taxpayer is new and registered on or before 31st March,2021, the No.of GSTR-3Bs liable to be filed shall be derived on the basis of GSTIN approval/grant date i.e. if approval/grant date is on or before April, 2020, then 12, else based on month of approval/grant of GSTIN (e.g. If the month of grant of GSTIN is May 2020, then number of GSTR-3B liable to be filed is 11,if it is June 2020, then it is 10 and so on).

II. GSTINs who are cancelled as on date and were NOT IN composition during 2020-21, number of GSTR-3B liable to be filed have been arrived at as follows:

  1. GSTINs registered on or before 31st March 2021.
  2. Months between cancellation date and approval/grant date of GSTIN decides the number of GSTR-3B liable to be filed.
  3. If cancellation date is beyond March 2021, then month between March 2021 and approval/grant Month of GSTIN is derived.
  4. If approval/Grant of GSTIN month is before April 2020, then month between cancellation date and April 2020 is derived.

III. GSTINs who are active as on date and were in composition BUT WITHDRAWN during 2020-21,number of GSTR-3B liable to be filed have been arrived at as follows:

  1. GSTINs registered on or before 31st March 2021.
  2. Months between Withdrawal date and 31st March 2021 is defined as number of GSTR-3B liable to file.

IV. GSTINs who are cancelled as on date and were in composition BUT WITHDRAWN during 2020-21, number of GSTR-3B liable to be filed have been arrived at as follows:

  1. GSTINs registered on or before 31st March 2021.
  2. Months between Withdrawal date and 31st March 2021 and cancellation date decides the number of GSTR-3B liable to be filed.
  3. If cancellation date is beyond March 2021, then month between March 2021 and Withdrawal Month of GSTIN is derived.

For Composition Taxpayers opted-in throughout the FY: Since the Annual Aggregate Turnover limit for opting in as Composition Taxpayer is up to Rs. 1.5 crore, and will use the following extrapolation formula:

(Sum of taxable value) X (*No. of CMP-08 liable to be filed)/ (No. of CMP-08 filed)

http://www.onlinegst.in/

GST Collections for Aug 2021

GST Collections for August 2021

The gross GST revenue collected in the month of August 2021 is ₹ 1,12,020 crore of which CGST is
₹ 20,522 crore , SGST is ₹ 26,605 crore , IGST is ₹ 56,247 crore (including ₹ 26,884 crore collected on import of goods) and Cess is ₹ 8,646 crore (including ₹ 646 crore collected on import of goods).

The government has settled ₹ 23,043 crore to CGST and ₹ 19,139 crore to SGST from IGST as regular settlement. In addition, Centre has also settled ₹ 24,000 crore as IGST ad-hoc settlement in the ratio of 50:50 between Centre and States/UTs. The total revenue of Centre and the States after regular and ad-hoc settlements in the month of August’ 2021 is ₹ 55,565 crore for CGST and ₹57,744 crore for the SGST.

The revenues for the month of August 2021 are 30% higher than the GST revenues in the same month last year
. During the month, the revenues from domestic transaction (including import of services) are 27% higher than the revenues from these sources during the same month last year. Even as compared to the August revenues in 2019-20 of ₹ 98,202 crore, this is a growth of 14%. GST collection, after posting above Rs. 1 lakh crore mark for nine months in a row, dropped below Rs. 1 lakh crore in June 2021 due to the second wave of covid.

With the easing out of COVID restrictions, GST collection for July and August 2021 have again crossed ₹1 lakh crore, which clearly indicates that the economy is recovering at a fast pace.
Coupled with economic growth, anti-evasion activities, especially action against fake billers have also been contributing to the enhanced GST collections. The robust GST revenues are likely to continue in the coming months too.

http://www.onlinegst.in/

GST Revenue collection for July 2021

GST R₹ 1,16,393 crore gross GST revenue collected in July

The gross GST revenue collected in the month of July 2021 is ₹ 1,16,393 crore of which CGST is ₹ 22,197 croreSGST is ₹ 28,541 croreIGST is ₹ 57,864 crore (including â‚¹ 27,900 crore collected on import of goods) and Cess is â‚¹ 7,790 crore (including â‚¹ 815 crore collected on import of goods).The above figure includes GST collection received from GSTR-3B returns filed between 1st July 2021 to 31st July2021 as well as IGST and cess collected from imports for the same period.

The GST collection for the returns filed between 1st July to 5th July2021 of ₹ 4,937 crore had also been included in the GST collectionin the press note for the month of June2021since taxpayers were given various relief measures in the form of waiver/reduction in interest on delayed return filing for 15 days for the return filing month June21 for the taxpayers with the aggregate turnover uptoRs. 5 crore in the wake of covid pandemic second wave.

The government has settled ₹ 28,087 crore to CGST and ₹ 24100 crore to SGST from IGST as regular settlement. The total revenue of Centre and the States after regular settlement in the month of July’ 2021 is ₹ 50284 crore for CGST and ₹ 52641 crore for the SGST.

The revenues for the month of July 2021 are 33% higher than the GST revenues in the same month last year. During the month, revenues from import of goods was 36% higher and the revenues from domestic transaction (including import of services) are 32% higher than the revenues from these sources during the same month last year.

GST collection, after posting above Rs. 1 lakh crore mark for eight months in a row, dropped below Rs. 1 lakh crore in June 2021 as the collections during the month of June 2021 predominantly related to the month of May 2021 and during May2021, most of the States/UTs were under either complete or partial lock down due to COVID. With the easing out of COVID restrictions, GST collection for July2021 has again crossed₹1 lakh crore, which clearly indicates that the economy is recovering at a fastpace.The robust GST revenues are likely to continue in the coming months too.

http://www.onlinegst.in/

Synopsis of Notifications Issued on 30th July 2021

Synopsis of Notifications Issued on 30th July 2021

Notification No. 29/2021 – Central Tax

As part of ease of doing business, in the Finance Bill 2021, the GST Audit has been scrapped and Annul Returns are being simplified with self-certification of the taxpayer only.

The same has been made effective from 1st August 2021.

Notification No. 30/2021 – Central Tax

As per the Finance Bill 2021, changes have been announced for the formats of GSTR – 9 and 9C.

With this notification GSTR -9C is now self-certified but the format will remain the same except for few changes.

Annul Return i.e., GSTR – 9 has to be filed on or before 31st December, which means the due date for filing of Annual Return for the FY 2020- 2021 is 31st Dec 2021.

Sr. No Form Type Tax Payer Category Due Date
1 Form GSTR – 9 Regular Tax payers 31st Dec 2021
2 Form GSTR – 9A Composition Tax payers  
3 Form GSTR – 9B e-commerce operators 31st Dec 2021
4 Form GSTR – 9C (Reconciliation Statement) (Applicable
to taxpayers whose turnover is above ₹ 5 crores
Regular Tax payers 31st Dec 2021

Following are the changes made to Form GSTR – 9

The return is not made applicable to FY 2020-21.

Following are the changes made to Form GSTR – 9C

Certification will be self-certified by the taxpayer and does not require certification of a practicing Cost or a Charted Accountant.

Others Column has been added to the following tables

Table 9 – Reconciliation of rate wise liability and amount payable thereon

Table 11 – Additional amount payable but not paid (due to re

Part V – Additional Liability due to non-reconciliation

Certification Section – Part B has been dropped

Notification No. 31/2021 – Central Tax

 Taxpayers having aggregate turnover below ₹ 2 crores are not exempted from filing of Annual Return i.e., Form GSTR – 9.

The effective date of the Notification is 1st August 2021.

Disclaimer

Any views or opinions represented above are personal and belong solely to the author and do not represent those of people, institutions, or organizations that the author may or may not be associated with in professional or personal capacity unless explicitly stated. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual.

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Filing of Annual returns by composition taxpayers. – Negative Liability in GSTR-4

Filing of Annual returns by composition taxpayers. – Negative Liability in GSTR-4

Filing of Annual returns by composition taxpayers. – Negative Liability in GSTR-4 Instances have come to notice where taxpayers are reporting negative liability appearing in their GSTR-4
Background: Since FY 2019-20, composition 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.

Reason of Negative Liability in GSTR4: The liability of the complete year is required to be declared in GSTR-4 under applicable tax rates. 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.

What the taxpayer did wrongly: Liability paid through Form GST CMP-08 is auto-populated in table 5 of the GSTR-4 for convenience of the taxpayers. Taxpayers who do not fill up table 6 of GSTR-4 i.e. no liability is declared, even though, taxpayer may have paid the liability through Form GST CMP-08; since the ‘Tax payable’ in GSTR-4 is computed after reducing the liability declared in GST CMP-08 and then auto-populated in table 5. Thus, if nothing is declared in table 6, then the negative liability entry appears in GSTR-4.

How to proceed in case of negative liability: If table 6 of GSTR-4 has not been filled due to oversight, a ticket may be raised to nullify the amount available in negative liability statement. If there is no liability to be paid during the year, the liability paid through Form GST CMP-08 shall move to negative liability statement and the same excess amount can be utilised to pay the liability of future tax periods.

Analysis

It is a welcome move that the GSTN has provided the inputs on a pro active manner. The composition scheme is opted by small taxpayers and for them cash flows are really a challenge especially in time of pandemic. It would have been really great if the law has a provision if excess cash is paid by composition taxpayers and laying in the Liability Register un utilized, the same can be claimed as refund. Similar provision is seen in Malaysian GST where the taxpayer can take refund of the ITC laying in their. though we cannot compare the provisions of other countries, we can take a cue from there and bring necessary amendments in near future. This will really help in improve in the ease of doing business.

http://www.onlinegst.in/

Rs 75,000 crore released to States and UTs with Legislature as GST Compensation shortfall

₹ 75,000 crores released to States and UTs with Legislature as GST Compensation shortfall. Almost 50 % of the total shortfall for the entire year released in a single installment

Ministry of Finance has released today ₹75,000 crores to the States and UTs with Legislature under the back-to-back loan facility in lieu of GST Compensation.  This release is in addition to normal GST compensation being released every 2 months out of actual cess collection.

Subsequent to the 43rd GST Council Meeting held on 28.05.2021, it was decided that the Central Government would borrow ₹1.59 lakh crore and release it to States and UTs with Legislature on a back-to-back basis to meet the resource gap due to the short release of Compensation on account of inadequate amount in the Compensation Fund. This amount is as per the principles adopted for a similar facility in FY 2020-21, where an amount of ₹1.10 lakh crore was released to States under a similar arrangement. This amount of ₹1.59 lakh crore would be over and above the compensation in excess of ₹1 lakh crore(based on cess collection) that is estimated to be released to States/UTs with Legislature during this financial year. The sum total of ₹2.59 lakh crore is expected to exceed the amount of GST compensation accruing in FY 2021-22.

All eligible States and UTs (with Legislature) have agreed to the arrangements of funding of the compensation shortfall under the back-to-back loan facility.  For effective response and management of COVID-19 pandemic and a step-up in capital expenditure all States and UTs have a very important role to play. For assisting the States/UTs in their endeavour, Ministry of Finance has frontloaded the release of assistance under the back-to-back loan facility during FY 2021-22 ₹75, 000 crore (almost 50 % of the total shortfall for the entire year) released today in a single instalment. The balance amount will be released in the second half of 2021-22 in steady instalments.

The release of ₹75,000 crore being made now is funded from borrowings of GoI in 5-year securities, totalling ₹68,500 crore and 2-year securities for ₹6,500 crore issued in the current financial year, at a Weighted Average Yield of 5.60 and 4.25 percent per annum respectively. 

It is expected that this release will help the States/UTs in planning their public expenditure among other things, for improving, health infrastructure and taking up infrastructure projects.

http://www.onlinegst.in/

New Buzz in the World of Compliances: KYC

The world has seen a lot of changes through centuries and business also. Today, we have grown from a localized world to a globalized world; it can be dubbed as e-village. The business can acquire any materials or components, or services from any corner of the globe and sell to any customer across the globe. This has brought in new markets and opportunities but at the same time has brought additional risks in way supply chain disruptions due to the pandemic or increased focus on localization and change in the consumer spending pattern.

The rollout of GST in India has made the whole country as One Market, thereby facilitating trade and commerce across the length and breadth of the country. This has also posed a new challenge as the supplier of goods or services will not have any personal relations as they are distinct places and know about his details completely; before the rollout of GST, the supplier of goods or services used to have personal rapport as they were close by and very few to deal. This has given an additional set of challenges.

In today’s dynamic world, the need of the hour is to have complete knowledge of the customers and suppliers. To have this, many of the companies have already started the Customer/Supplier onboarding process. This process is expected to cover vital information like the Customer/Supplier’s registration details across tax regimes or departments, the key contact person details and the bank details for remittance or funds transfer.

In the competitive, it has become mandatory and necessary to evaluate the supplier or customer before placing orders or making supplies. To date, we are aware of Know Your Customer’s concept is the concept used predominantly in the BFSI sector, and now the same is being implemented in all the sectors. In today’s world, KYC is being termed as Know Your Partner (KYP). If the taxpayers do not do their due diligence properly and start the suppliers, it can adversely impact their top line and bottom line.

Know Your Partner – Supplier

In the normal course of business, when a purchase order or work order or contract or tender is allotted, the following points are considered

  1. Cost
  2. Consistency in Quality
  3. Capacity to Supply or Deliver
  4. Post Supply Service
  5. Financial Strength
  6. Environmental, Social and Governance Score

The above is an exhaustive list and depends from taxpayer to taxpayer.

ESG Score is added off late, and in India, it is still in the infancy stages. Evaluating the ESG score helps to understand the company’s culture, commitment towards the environment, long term strategy to meet the disruptions.

Now, GST is also required to be considered in the vendor evaluation framework. GST compliances need to be verified before having any transactions with supplier for the following reasons

  1. Filing of Returns – need to verify if the supplier is filing the returns on time or not. If not, then there is a potential risk of defaulting the return filing.
  2. Timely filing of Returns – filing of returns is important but what is more important is timely filing. This will indicate that the supplier has potential cash flow constraints. If such is the case, can the taxpayer make supplies as per the schedule? Or is it because of the lack of systems at the vendor’s place? Does this have to be ascertained before taking the contract forward?

The above is quite a few aspects that are critical for the business and this vendor evaluation. There are multiple ways to do the same, like manually going to the GST Portal and verify it vendor-wise else do it bulk using a third-party application. The only challenge in both approaches is the users have to do this job religiously else it will backfire.  The best is integrating the ERP/Accounting with a third-party solution or homegrown solution (not recommend as it is not of core competency and consumes a lot of time and effort for integration).

The major challenge is if the taxpayers do not do the due diligence at the time of issue of PO/Work order or contract, the delay in filing of returns by the suppliers will call for additional cash flows as the GST liability has to be discharged using cash rather than using the input tax credit. This will impact the working capital management as well increase the borrowing costs impacting the bottom line. Apart from this financial implication, the taxpayers have to follow up with the vendors for their filing, which involves intrinsic costs.

Know Your Partner – Customer

Any organization has a process of onboarding customers for the first time, which is a normal process. The parameters normally considered while onboarding the customer or while determining the pricing subsequently are

  1. Price
  2. Payment Terms
  3. Volume
  4. References
  5. Compliance
  6. Financial strength

We used to hear in the olden days “Customer is King†in today’s world of regulations; this is not much relevant. Before onboarding a customer, the taxpayers must take additional verification or due diligence to ensure that cash flows are not adversely impacted.

In the case of the banking industry, it the need of the hour. The lender can verify the GST Data for his purchases and sales of the borrower from the GST Returns and basis on that, compare with the CMA data being submitted from time to time. This will help the lender identify the risks early, take corrective steps, and ensure the account does not slip into the NPA category.

In the recent past, we have seen that the department is first suspending the registration at the first stage, in the second stage, it is canceling the registration, and, in some cases, even the bank accounts are attached.  If such is the case, it will impact cash flows as the customer will not pay on time. This can hurt the organization very badly and can also impact the operations if the exposure is very high with the customer. It is not only for GST; even in MCA, if the returns and other compliances are not met properly, RoC is freezing the bank accounts. The taxpayers have to deal with multiple regulations to see their compliances and status.

To avoid getting into this trap, before the acceptance of the recipient/customer’s purchase order, the return filing status and the timing of the returns have to be checked and verified.

Due to the pandemic, every organization has been impacted, and there is an impact on cash flow; this has resulted in a delay of returns. However, the Government has announced relaxation in the return filing dates,  interest rates and penalties. From a statutory perspective, these measures give legroom for the taxpayers, but as a businessman, we need to evaluate on above lines before taking any future supplies. 

Good Service Tax is one of the biggest tax reforms in India post-independence, but in reality, it is a business process reform. It has brought in One Nation One Tax which resulted in seamless input tax credit across the supply chain, same tax rates, same classification and common return filing. Though these are the major benefits, we had some teething trouble with the portal, and the same has been resolved to a larger extent. We could see improvements from time to time after the rollout of GST on the portal, and to provide better user experiences, new features are being added to the portal from time to time. Apart from these changes, the taxpayers are also required to make changes in their business after the rollout of GST, and for this reason, only it is also dubbed as Business Reform. After the GST rollout, the taxpayers had to revisit their contract terms or change the process of availing input tax credit, issuing various documents in GST from time to time to be tax compliant.

Apart from the above changes, the taxpayers have to be more focused on purchasing and whom to sell. This decision will play a key role in maintaining the bottom line as well as effective cash flow management.  Taxpayer rating is already envisaged in the law under section 149 of the CGST Act, but it is not yet notified. The trade and industry need not wait for the same; the same can be adopted and implemented using various third-party tools (ComQuo or peridot). When you select a third-party site, ensure that they provide multiple services. With the recent changes in income tax, the amount of tax to be deducted is double the actual amount if the vendor has not filed two previous returns. Automation will help to maintain the compliances. The cost of compliance is very much lesser compared to the cost of non-compliance. In case of non-compliance, there is a need to spend money and efforts to reply to notices and visit the department offices from time to time.

Disclaimer

 Any views or opinions represented above are personal and belong solely to the author and do not represent those of people, institutions or organizations that the author may or may not be associated with in professional or personal capacity unless explicitly stated. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual.

http://www.onlinegst.in/

Proposed Levy of GST COIVD Cess in the State of Sikkim

The pandemic has impacted the finances of individuals as well the Governments across the globe. The Governments are resorting to various measures to recover the tax collections. To increase the demand for goods or services across the globe, many countries have reduced their tax rates as it will increase spending power, which means more revenue.

In India, the Government has not reduced the tax rates but has given relief measures to the taxpayers by extending due dates and reducing late fees and interest. The tax rates have been reduced only in the case of goods required for the treatment of COVID. Apart from this, the central bank also increased the Fiscal Responsibility and Budget Management (FRMB) limits so that the State Governments can access more funds and spend.

Pandemic is a natural calamity, and to raise more funds, the Governments are exploring new ways and means. As part of it, the Sikkim state has requested for levy of COVID Cess on the Power Sector and Pharma sector for two years. This Cess is in line with the Kerala Flood Cess levied for two years from 2019. In Kerala, the Cess is applicable on intrastate transactions for B2C supplies, and the taxpayers have to file separate returns. The valuation rules have also been amended to exclude the Kerala Floods cess from the levy of GST wide Notification Number 31/2019 – (Central Tax) dated 28th June 2019.

Basis of the decision taken in the 43rd GST Council Meeting, a Group of Ministers, has been constituted, and they were supposed to submit the recommendations with 15 days. The Group of Ministers constituted are

  1. Sh. Basavaraj Bommai Minister for Home Affairs, Karnataka Convener
  2. Sh. Manish Sisodia Deputy Chief Minister, Delhi Member
  3. Sh. T S Singh Deo Minister for Commercial Taxes, Member
  4. Sh. K. N. Balagopal Minister for Finance, Kerala
  5. Sh. Niranjan Pujari Minister for Finance, Odisha
  6. Sh. B. S. Panth Minister for Tourism & Industries, Member Sikkim
  7. Sh. Suresh Kumar Khanna, Minister for Finance, Uttar Pradesh

The Group of Minsters will examine the following

  1. One percent of the turnover of the pharmaceutical sector (excluding the unorganized sector) is imposed for the current year and subsequent two years, up to 2022 &23; and
  2. Rs. 0.1 per unit of power generated is imposed for the current year and subsequent years, up to 2022-23

If the GoM approves the COVID Cess, we can expect similar measures to be raised by other states. Though the tax rate is very nominal but it requires changes in the following areas

a) IT Systems to capture and collect COVID Cess

b) Accounting Ledgers/Chart of Accounts

c) Return filing systems.

d) various documents being generated like Tax Invoice, Purchase Order, Sales Order etc.,

Moreover, these changes are applicable for a particular state, but there should be flexible to adapt to the localized changes in the era of One Nation One Tax and One Market. Though it is tough not not impossible to adapt to the new requirements in the New Normal.

http://www.onlinegst.in/

New Functionalities made available for Taxpayers on GST Portal in June, 2021

User experience is the key and keeping in this in mind, new features have been added to the GST portal constantly and some of the new Functionalities were made available for Taxpayers on GST Portal in June, 2021. They are

  1. Moving the records saved in IFF, to later months of same Quarter, by taxpayers under QRMP Scheme

There can be cases where the QRMP Taxpayers have entered the data in the IFF but not submitted. In such cases the records which are saved and not submitted/filed can be moved from one period to another period as well as moved from various periods of the Quarter to GSTR – 1 while filing the return.

• Taxpayers can now MOVE the records saved in their IFF of first month of a quarter (if the time for filing it has expired) to IFF of second month of the quarter.
• Taxpayers can also MOVE the records saved in IFF of first month & second month of the quarter (if the time for filing it has expired) to their quarterly Form GSTR-1 (of the same quarter). Please note that the records can be moved only within a quarter.
• While preparing IFF/GSTR-1 (of later months of same quarter) online, in case of saved records, taxpayers will get a pop-up prompting them to either MOVE the records by selecting YES or delete them by selecting NO.

2. Auto population of GSTR-3B liability, for taxpayers under QRMP Scheme, from their IFF and GSTR 1

The tax liability in the case of QRMP taxpayer, it will be auto populated from IFF filed during the months to GSTR – 3B. This will ensure that there are not data entry errors and correct liability gets reported.

3. Filing for refund of accumulated ITC by taxpayers making exempt/ nil-rated supplies, by selecting an option of not having an LUT number in the refund application

Exports are Zero rated supplies under GST and the exporters have an option to invoice with payment of taxes or without payment of taxes. In cases where the invoice is issued without payment of taxes, the taxpayer has to file a refund application separately to claim the accumulated input tax credit in the electronic credit ledger.

To claim refund, in the Form RFD – 01, the taxpayer has to enter the Letter of Under Taking Number currently. From this month onwards the taxpayers now an option to select any one of the following

• I have a valid LUT number.
• I don’t have a valid LUT number, since I am making only exempt/ nil rated supplies

The above mentioned are the new features added for the taxpayers on the GST portal to provide better user experience. Since auto population is machine driven, it is recommended to cross check the values auto populated before filing for the accuracy. In case of any differences, the values can be over written and correct values should be entered.

http://www.onlinegst.in/

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