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What is GST Reconciliation? A Detailed Guide for 2023 (8/7/2023) - Accurately filing GST returns is not only crucial for small businesses to avoid legal trouble, penalties, and fines but also plays an important role in maintaining their financial reputation and credibility. Here, in this blog we will explain to you in detail how using a GST reconciliation software simplifies GST filing. What Is GST Reconciliation? GST reconciliation is a process of comparing two sets of data entries, mainly details to be submitted on GST portal with acutal sale and purchases… Read More...
Reverse Charge Mechanism (RCM) in GST with Journal Entry [2023] (6/26/2023) - Under normal GST norms, the supplier of Goods and Services is liable to collect GST from the buyer and then deposit the amount to the government. However, in Reverse Charge Mechanism under GST Act 2016, the liability of collecting and depositing GST to government falls on the buyer/ receiver of the goods and services. In certain cases, business entities are required to charge GST under RCM (Reverse Charge Mechanism). You must be wondering why and are you required to reverser… Read More...
GSTR 3B Late Fees: Penalty, Due Date, and Interest (6/23/2023) - Late Fees for GSTR 3B The late fees applicable on late filing of GSTR 3B depend on whether you are filing normal GSTR 3B returns or nil returns. Late fee In case of Nil Return ₹ 20/day Late fee for Normal GSTR 3B Returns ₹ 50/day Every month (quarterly for the QRMP scheme), taxpayers are required to file GSTR-3B, which is a summary GST return that is self-declared. This return mandates that taxpayers report the summarized figures of their sales,… Read More...
Why Does Your Business Need Proper GST Billing Software? (4/27/2023) - Since the Goods and Services Act was passed in 2017, businesses throughout the nation have been making sure that they remain compliant with the requirements of the GST Act. The GST Invoicing Software allows enterprises to properly file their GST invoicing software so that they do not fall behind on their taxes and run into legal trouble. However, manually preparing invoices on paper or excel is extremely inefficient and prone to error. Therefore, businesses need the assistance of GST billing… Read More...
Reconciliation & Comparison between GSTR 3B and GSTR 1 (4/7/2023) - For any business, the filing of GST forms is the key requirement that needs to be fulfilled to maintain its business. These forms are important for any business to continue its operations legally and are important for gathering necessary information from enterprises and passing all of them to the Income Tax Department. There are various types of GST returns filed throughout the year by taxpayers. What is a GST Return? The GST return is a form that states the various… Read More...
GST Impact on Businesses (1/13/2023) - The Goods and Services Tax (GST) is a comprehensive value-added tax system implemented in India in 2017, replacing the previous system of multiple taxes levied by the central and state governments. The GST has had a significant impact on businesses in India, affecting pricing, compliance, and supply chain management. One of the major impacts of GST on businesses is the change in pricing. GST has different tax rates for different goods and services, and businesses have had to adjust their… Read More...
What are the roles of GST Software in your business? (12/27/2022) - What are the roles of GST Software in your business? Read More...
Top 6 reasons to choose automated GST software (11/7/2022) - The introduction of the Goods and Services Tax (GST) on July 1, 2017, sparked a new era of thorough tax reporting procedures in the Indian business ecosystem. MSMEs and small businesses have had difficulties in completing GST returns because of a lack of technological awareness. However, strong GST software filled the gap and enabled business entities to fully implement GST. With the variety of GST software available in the market, none of them is as efficient as HostBooks GST software… Read More...
GST E-Invoicing to Be Mandated Soon for the Business Having Rs. 10-Cr or More and Then 5-Cr Turnover (7/8/2022) - Businesses having turnover more than Rs. 5-Cr will soon come under the GST invoice. To this day, the threshold limit of e-invoicing is Rs. 20 Cr. Businesses that exceed the 20-crore turnover need to generate e-invoices either with the Government GST portal or using the Best GST Billing Software in the format mandated by the GSTN council. Each e-invoice has a unique identification code that is provided by the Invoice registration portal (IRP). A unique identification code enables machines to… Read More...
GST Tax Rates Revised: Check Out the Complete List of Updated GST Rates (7/1/2022) - GST council has revised GST rates for many items that may affect the pockets of common men. The revised GST rates will be applicable from July 18, 2022. The changes have been made at the 47th GST council meeting chaired by finance minister Nirmala Sitharaman. She made a statement stating that the government recommendations on exemptions and corrections of GST rates have been accepted by the GST Council. What Gets Costlier with Revised GST Rates? Packaged Food The GST council… Read More...
What Are the GST Laws In India, GST Features and Its Benefits for Business/Industries? (6/30/2022) - GST (Goods and service tax) is an indirect sales or transaction tax that is levied when goods are bought and sold. As the name suggests it is applied to everything that is traded including services. It was the biggest tax reform since it was introduced on 29th March 2017 and brought into effect on 1st July 2017. Indeed, it is one nation, one tax that has replaced many indirect taxes and brought a uniform taxation system across the country. India… Read More...
CBIC Releases the Guidelines for Sanction, Post-Audit, and Review of GST Refund Claims (6/20/2022) - The Central Board of Indirect Taxes and Customs (CBIC) has released the detailed notifications; stating the instructions for sanction, post-audit, and review of refund claims. Releasing the notifications, CBIC has brought the instructions in a view of noticing the different practices being performed by the field officers. The board has reviewed the current status and found discrepancies in refund claims cases. Elaborating further, CBIC has said that in some cases speaking orders are being issued while in others, they are… Read More...
Big News for Businessmen: Late Fee Will be Exempted on GST Return Till June, Central Government Confirms (6/16/2022) - The Central Board of Indirect Taxes and Customs has issued a notification dated 26th of May, 2022 stating that businesses registered under composition scheme that couldn't file their annual return (GSTR-4) for the previous financial year will be exempted from the late fees for two months. The due date of filing GSTR-4 for financial year 2021-22 was 30th of April, 2022. As per the notification, businesses registered under the composition scheme will not have to pay the late fee till… Read More...
GST Billing Software FAQs |Most Frequently Asked Question for GST Billing Software (5/23/2022) - Read More...
The Second Highest GST Collection Reported In November, the Collection Reached 1, 31,526 Crores (12/24/2021) - November month brings some good news for the economy. As per the report released by the Finance Ministry on Wednesday, the record GST collection was reported in November 2021, which is 25 percent higher than November 2019 and is the second-highest figure ever since the GST tax was imposed in July 2017. GST collection in November exceeded Rs 1.31 lakh crore. It is the fifth consecutive month where GST collection touched one lakh crore rupees figure. The total GST collected… Read More...
Big Relief for Taxpayers amid Pandemic! CBDT Has Extended the Deadline to File ITR, Check Out the New Dates Here! (5/21/2021) - The Central Board of Direct Taxes (CBDT) has extended the deadline to file Income Tax Return in view of the current coronavirus pandemic. This is a huge relief for the taxpayers whose income is affected due to the pandemic. The CBDT has announced the extension of ITR filing deadlines for the PY 2020-21 (FY21) i.e. Assessment Year 2021-22 (AY22), stating that the deadline of ITR filing is being extended so as people can get some relief during the Coronavirus crisis.… Read More...
New Changes in GST Rules! Applicable From April 2021 (5/11/2021) - GST is a dynamic law. It has gone through many additions, changes and alternations ever since its inception. We as business owners, taxpayers, and tax consultants are required to stay updated with all these changes because this will help us to make the right decision for our business and ourselves. By acknowledging this fact, here we are providing a list of changes in the GST rule that has come into effect from 1st April 2021: Change No 1: Generating e-Invoices… Read More...
Government Amends the Companies Rules, Makes It Mandatory to Record Audit Trail of Each and Every Transaction (3/25/2021) - Under section 469 of the company act, the central government has made it mandatory for every company/business to use only such accounting software that has the feature of recording the audit trail of each and every transaction, on or after 1st April 2021. Also, companies are mandated to create an edit log of each change made in account books with the proper dates. As per the amendments, companies must ensure that the audit trail feature in the software they use… Read More...
What If Petrol and Diesel Come Under GST Regime in India? (3/19/2021) - There is no denying the fact that today petrol and diesel prices have broken all past records and breached the ₹100 marks in several parts of the country. These sharp hikes in the prices are pinching the pocket of the common man. Everyone mulls why the prices are getting higher day by day. Even our Finance Minister Nirmala Sitharaman also shows concern on this and attributes the rapid rise in fuel prices to ‘Dharm Sankat’, or ‘Divine Predicament’. According to some… Read More...
Union Budget 2021 Highlights: Important Points & Key Takeaways (2/2/2021) - The Union Budget 2021-22 has been passed out at the time when India’s economy is reeling under the aftereffects of the coronavirus lockdown, the budget was presented by our Finance Minister Nirmala Sitharaman on Monday. There is a total spend of around Rs 2 lakh crore on healthcare, RS. 35000 crore for the coronavirus vaccine, and Rs. 1.10 lakh for railways. The government has aimed to complete 11,000 km of national highway infrastructure this year. The budget for 2021-22, meanwhile,… Read More...
GSTR-9A: Eligibility, Due Date, Filing Details, and Late Fees (11/9/2020) - The Goods and Services Tax regime came up with a variety of returns to be filed by the registered person. One of the important returns that the registered person should not miss out on is the Annual Return: GSTR-9A. The majority of the traders or businesses registered under GST are alleged to file these returns. Here during this blog post, we'll discuss what GSTR-9A is all about alongside the eligibility, due date, the format prescribed, and therefore the penalty that's… Read More...
Recommendations of the 42nd GST Council Meeting (10/6/2020) - The 42nd GST Council meeting held under the Chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman through video conferencing held on 05-Oct-2020. The meeting was also attended by Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Finance Ministers of States & UTs and senior officers of the Ministry of Finance& States/ UTs. All Recommendations of the 42nd GST Council Meeting: GSTR-1 and GSTR-3B which is to be filed quarterly and payment of… Read More...
Annual GST Audit- A Complete & Comprehensive Guide for Taxpayers (9/18/2020) - Audit under GST is simply related to the inspection of returns, records, and other documents furnished by the taxpayer. GST Audit is carried out to test whether the turnover (Supply), taxes paid, ITC refund claimed and ITC availed mentioned in the taxpayer’s annual report are true and fair or not. Moreover, a GST audit also provides a great help in evaluating whether the taxpayer is compliant with the GST provisions or not. This is an important exercise because the GST… Read More...
41st GST Council Meeting: Key takeaways (8/28/2020) - 41st GST Council Meeting: Finance Minister Nirmala Sitharaman said that centre can facilitate borrowings from RBI but the loans will be in the name of states. Two options were placed before states, including the option that centre will facilitate talking with RBI and help to get G-security linked interest rates so that each state does not have to struggle for loans. She added that the states have requested the government to lay down both options in detail, and give them 7 full working… Read More...
Goods and Services Tax – Transforming the Indirect Taxation System! (8/10/2020) - What is GST (Goods and Service Tax) and how is it beneficial for all? Table of contents: Through this article, we will get detailed view of GST-its calculation and how it is befitting manufacturer, Trader (businesses) and consumers: What is GST? Tax Rates under GST GST Returns Tax Structure Tax Calculation Benefits of GST Components of GST Compliance under GST What is GST? GST (Goods & Service Tax) is a single tax applicable to the supply of goods and/or services… Read More...
40th GST Council Meeting Highlights (6/15/2020) - The 40th GST Council met under the Chairmanship of Union Finance &Corporate Affairs Minister Smt. Nirmala Sitharaman through video conferencing here today. The meeting was also attended by Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Finance Ministers of States & UTs and senior officers of the Ministry of Finance States/UTs. The GST Council has made the following recommendations on Law & Procedures changes Reduction in Late Fee for Past Returns (GSTR-3B) For such taxpayers… Read More...
GSTR-7 Return: Meaning, Eligibility, Due Date, Late Fees, and Penalties (6/3/2020) - GSTR-7 is a monthly return form filed by the taxpayers who are required to deduct TDS under the GST regulations. The return form GSTR-7 comprises details of tax deducted at source, TDS liability paid/payable, TDS refund claimed (As per Section 54 of CGST Act, 2017) if any, incurred interest, late fees, etc. paid or payable. What is GSTR-7? GSTR-7 contains details regarding the TDS deducted, TDS payable, etc. by the deductor in any particular tax period. The deductees can access… Read More...
Everything you need to know about GSTR-9C: Meaning, Due Date, Penalties (5/5/2020) - What is GSTR-9C Form? Every registered taxpayer whose aggregate turnover exceeds two crore rupees during a financial year shall be audited in accordance with subsection (5) of section 35 of the CGST Act, 2017 and shall include a copy of the annual accounts audited and a duly certified reconciliation statement in FORM GSTR-9C. However, the limit for GSTR-9C of FY 2018-19 has been increased to Rs 5 crore as set out in the CBIC notification dated 23 March 2020. GSTR-9C… Read More...
What is the GST Compliance Rating & its Importance (5/2/2020) - All taxpayers registered under Goods and Services Tax (GST) must comply with its rules and regulations. To monitor how compliant businesses are with the GST regulations, the government has introduced the GST compliance rating wherein taxpayers are given a compliance rating score. The compliance rating can have a wider impact, affecting everything from your tax refunds to partnering with suppliers. The primary motive behind introducing the GST compliance rating is to encourage taxpayers to be compliant and file GST returns… Read More...
Everything you need to know about E-Way Bill Generation, Regulations and Compliance (4/22/2020) - The e-way bill is an electronically produced document that must be generated by businesses in India, while moving goods worth more than ₹ 50,000 from one location to another. Every e-way bill must include detailed information about the goods being transported. Along with that, the e-way bill can be created or cancelled through SMS, android app, and via site-to-site API integration. After generating an e-way bill a unique E-Way Bill Number (EBN) is allocated and is available to the manufacturer,… Read More...
Major Updates and Highlights on 39th GST Council Meet (3/16/2020) - The 39th GST Council meeting held on Saturday 14 March under the chairmanship of Union Finance & Corporate Affairs Minister Mrs. Nirmala Sithraman. Along with the finance minister, Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur also attended this meeting with Finance Ministers of States & UTs and seniors officers of the Ministry of Finance. The finance minister Mrs. Nirmala Sithraraman chairs this meeting to take decisions on some of the crucial issues. Here are the highlights:… Read More...
Is GST paid on insurance premium eligible for tax benefit? (2/20/2020) - Source: livemint As the season for submitting proof of investments in tax-saving products nears, your employer might soon ask to furnish them. Tax benefit on premiums paid for life and health insurance plans encourages taxpayers to invest in an insurance policy. While most people are aware that the premiums paid for life as well as health insurance offer tax benefits under Section 80C and 80D, respectively, many are unknown about claiming the deduction on the GST paid on these premiums.… Read More...
Taxpayers required to quote GSTIN on EXIM declarations: CBIC (2/19/2020) - Source: Economic Times The Central Board of Indirect Taxes and Customs (CBIC) issued a circular clarifying that registered taxpayers are required to declare GST Identification Number (GSTIN) on their EXIM declarations. It is intended to improve the all-round coverage of GST supplies. In spite of being registered with the GST Network (GSTN), some cases have been detected where an importer or exporter did not declare their GSTIN in the Bill of Entry/Shipping Bill. The declaration of GSTIN will also be… Read More...
Document Identification Number – Everything you need to know (2/18/2020) - What is Document Identification Number (DIN?) The CBIC body has mandated the generation of a Document Identification Number (DIN) for all means of communications sent by the tax officials to taxpayers. The Government’s main objective of issuing DIN is bringing more transparency and accountability in the indirect tax administration system with the use of information technology. After the generation of DIN, the department would print the page bearing the DIN along with quoting and filing it in the concerned file… Read More...
Vivad se Vishwas scheme introduced to settle income tax disputes (2/18/2020) - Source: Business Standard To provide a procedure for taxpayers to settle pending income tax disputes, Vivad se Vishwas scheme was announced in the Union Budget 2020. Under the scheme, taxpayers will be able to pay half of the disputed amount in cases where the appeal has been filed by the Income Tax Department. The Direct Tax Vivad Se Vishwas Bill was later introduced in the Lok Sabha. The Union Cabinet recently approved some amendments to the Bill, which are expected… Read More...
GST Council to discuss states compensation, review tax structure (2/17/2020) - Source: India Today The Goods and Services Tax (GST) Council is likely to meet soon to discuss the compensation paid to states for the loss of revenue after the implementation of GST. The Council might also take up the issue of tax structure for a limited review. The apex indirect tax body may meet either by the end of February or early March before the Parliament re-convenes after a recess. A person familiar with the discussions between the central and… Read More...
Officials to recover ₹46,000 crores as late GST payment interest (2/13/2020) - Source: The Economic Times The Central Board of Indirect Taxes and Customs (CBIC) has asked tax officials to collect almost ₹46,000 crores as interest on account of delayed GST payment. However, experts feel this action could lead to widespread tax litigations and inconvenience for taxpayers. All taxpayers registered under Goods and Services Tax (GST), except those with a turnover of up to ₹1.5 crores and who have opted for the composition scheme, are required to file two monthly returns –… Read More...
GST compensation of ₹81,043 crore given to states for April-Sept (2/12/2020) - Source: The Hindu In a written reply to Rajya Sabha, Minister of State for Finance Anurag Singh Thakur said that the Centre has released ₹81,043 crore as GST compensation to states for April-September 2019. He added that since October 2019 the GST compensation cess mop-up had shown an upward trend. GST compensation cess of ₹7,607 crore was collected in October, ₹7,727 crore in November, ₹8,331 crore in December and ₹8,637 crore in January 2020. The targeted amount to be collected… Read More...
Amnesty scheme for taxpayers to settle dues of the pre-GST era (2/11/2020) - Source: telegraphindia.com To collect disputed taxes of pre-GST era such as VAT, central sales tax and entry tax, the Bengal government has introduced an amnesty scheme. According to the industry and tax experts, the scheme will provide multiple benefits to the taxpayers. The central government had announced a similar amnesty scheme – Vivad Se Vishwas – in the Union Budget 2020 on 1st February. In the state budget presented on Monday, Bengal finance minister Amit Mitra said that more than 25,000… Read More...
Finance Minister: GST Council to revise GST rates once in a year (2/10/2020) - Source: Times of India The Finance Minister Nirmala Sitharaman on Sunday said that the Goods and Services Tax (GST) Council is set to revise tax rates of goods and services once a year instead of every three months as was the trend so far. She added that such yearly revisions will remove 'uncertainty' both for the businesses and the government. According to the finance minister, the frequent changes in GST rates have led to an inverted duty structure, wherein the… Read More...
New GST return filing system – Guide to ANX-1 & ANX-2 (2/8/2020) - In its 31st meeting held on December 22nd, 2018, GST Council introduced a lot of changes to the existing GST return filing process. A new return filing system was introduced under GST, containing simplified return forms, to ease the compliance burden of taxpayers. Under this new return system, there will be one main return GST RET-1, which will be filed on a monthly or quarterly basis, and two main annexures: GST ANX-1 and GST ANX-2. The new GST return will have… Read More...
Government to introduce a lottery system to boost GST compliance (2/5/2020) - Source: Economic Times In order to encourage customers to ask for bills while making purchases, the government is planning to introduce a lottery system under the Goods and Services Tax (GST) having reward between ₹10 Lakh and ₹1 Crore. Central Board of Indirect Taxes and Customs (CBIC) member John Joseph said that every bill under the GST regime will offer a chance to the customers to win a lottery and would act as an incentive for them to pay tax.… Read More...
CBIC has extended the due date for filing annual returns (2/4/2020) - Source: Economic Times The Central Board of Indirect Taxes and Customs (CBIC) has extended the deadline for filing the annual GST return forms – GSTR-9 and GSTR-9C for the financial year 2017-18. The due dates have been extended further in a staggered manner for different groups of states. The CBIC, in a tweet, announced that the decision to extend the due dates has been taken "considering the difficulties being faced by taxpayers in filing GSTR-9 and GSTR-9C for FY 2017-18".… Read More...
GST revenue mop-up in January crosses ₹1 trillion-mark (2/3/2020) - Source: Business Standard Goods and Services Tax (GST) revenue mop-up in January has crossed the ₹1 trillion-mark for the third month in a row thanks to the anti-evasion measures taken by tax officers. Since the implementation of the new indirect tax regime in 2017, this is the second time that the monthly revenues have crossed ₹1.1 trillion. According to a statement released by the government, the gross GST revenue collection in January 2020, is ₹1,10,828 Crore of which CGST is ₹20,944… Read More...
What are the common expectations from the budget 2020? (1/31/2020) - Source: The Hindu The finance minister Nirmala Sitharaman is going to present the Union Budget 2020 at a time when the economy is struggling with the worst period of slowdown. Can Modi's Budget next month revive our spirits and win the reluctant consumer back? Budget 2020 highlights Tweak income tax rates slabs Reform agriculture with financial and modern support Up to 5 crore turnover business can file their return quarterly Domestic revenue mobilization Reduction in GST rates Boost savings for… Read More...
Assessees yet to submit audit conciliation statement for the FY18 (1/29/2020) - Source: The Hindu BusinessLine As the submission date for filing FY annual return is around the corner - January 31, still 3 out of 4 assesses still need to submit the GST audit conciliation report for the fiscal year 2027-18 (FY 18). As per the GST norms, taxpayers must file an annual return. There are three sorts of annual return forms - GSTR 9, GSTR 9A and GSTR 9C for different taxpayers. Every GST assessees has to file monthly as… Read More...
CBIC blocks input tax credit due to mismatch of returns (1/28/2020) - Source: Times of India The Central Board of Indirect Taxes and Customs (CBIC) has blocked tax credits of about ₹40,000 Crore due to the mismatch of returns, uncovering more than 2,000 entities, not including the cases where the returns were not filed. CBIC Chairman John Joseph said at an event on Monday that the indirect tax wing of the revenue department blocked the credits within four hours. To prevent the cascading effect of taxes, entities are entitled to credits on… Read More...
E-invoicing under GST will have a positive impact on businesses (1/27/2020) - Source: Economic Times Following the decision by the GST Council in its 37th GST Council Meeting, taxpayers registered under Goods and Services Tax (GST) having an annual turnover of above ₹500 Crore has been notified to issue e-invoices. From 1st Jan 2020, it has been made optional to issue and will be made mandatory from 1st April 2020. Electronic invoicing or e-invoicing is the future means of electronic billing and has been adopted by multiple governments internationally. It has been implemented in a… Read More...
Modest revenue target expected in Budget 2020 due to low GST mop-up (1/24/2020) - Source: The New Indian Express Due to the ongoing economic slowdown, lower than expected mop-up in GST and direct taxes, a cut in corporate tax, the government is likely to keep the revenue targets modest in the upcoming Union Budget 2020. The plan could instead be to focus on raising more resources through non-tax revenues. In December 2019, the GST mop-up stood at ₹1.031 Lakh Crore, falling short of the target of ₹1.1 trillion set by the finance ministry for… Read More...
Finance Ministry staggers filing of GSTR-3B to ease system load (1/23/2020) - Source: pib.gov.in After constant complaining from taxpayers of technical glitches in filing the monthly summary GST returns (GSTR-3B), the Finance Ministry on Wednesday said that it would allow the filing of GSTR-3B returns in a staggered manner. In order to ease the system load, witnessed especially closer to the filing due date on 20th of every month, the deadline of filing of returns will now be on the basis of turnover and location. Currently, for all taxpayers, the due date… Read More...
Over 65 lakh GST returns filed till January 20: GST Network (1/22/2020) - Source: Economic Times On Tuesday, the Central Board of Indirect Taxes and Customs (CBIC) said that a total of 65.65 lakh GSTR-3B returns have been filed for the month of December 2019 till January 20, 2020. CBIC issued a press release saying, "A total of 65.65 lakh GSTR-3B for the tax month of December were filed till 20th January 2020 out of which 13.30 lakh GSTR-3B returns were filed on the last day itself, i.e. on 20th January 2020." The… Read More...
Anti-profiteering body to start GST compliance drive (1/15/2020) - Source: Livemint In the next three months, the National Anti-profiteering Authority (NAA) is expected to issue a wave of orders, in line with the Centre's drive to boost Goods and Services Tax (GST) compliance. A person with direct knowledge of the matter, requesting anonymity, said that about 40 orders are expected to be issued soon on complaints against entities in the real estate, cinema industries, and consumer goods. The firms that will be facing investigations include some of the leading… Read More...
How the integration of FASTags with E-way would impact the nation? (1/11/2020) - The story so far: From 1st December 2019, a deadline fell by the government of India for the compulsion of electronic toll collection with FASTags on all the national highways. FASTags is a sort of rechargeable tag which can be used for toll payments. As per the announcement, all the lanes on toll station would be converted into fast lanes from December 2019. Tamil Nadu, U.P. Haryana, and some other states have made this conversion successfully. What is FASTag? FASTag is… Read More...
FinTech industry wants relief in GST and KYC compliance for small loans (1/10/2020) - Source: Financial Express Financial Technology (FinTech) industry plays a crucial role in improving access to financial services products across the country. Some of the factors responsible for the surge in the relatively new filed of FinTech include a rapid increase in the number of smartphone users, increased penetration of internet connectivity across the country, and government initiatives like 'Digital India'. According to a KPMG report, highlighting the rapid rate of adoption of digital transactions and payments, digital payments in India… Read More...
Government to begin GST audit for FY18; first set of notices sent (1/9/2020) - Source: Economic Times For the first time, after almost three years of implementation of Goods and Services Tax (GST), authorities have started issuing notices for the audit of assessees to ensure the correctness of tax paid and claimed tax credit. This is being initiated in line with the government's plan to improve compliance and augment revenue collections despite the slowdown in the economy. The show-cause notices are being issued to businesses seeking an audit of accounts and records for the… Read More...
2nd National GST Conference held for curbing evasion and augment revenue (1/8/2020) - Source: pib.gov.in Under the chairmanship of Revenue Secretary Ajay Bhushan Pandey, 2nd National GST Conference was held on Tuesday of the Chief Commissioners of Central Tax and Commissioners of State Tax. The state and central tax officials have decided to take action on streamlining Goods and Services Tax (GST) system and plugging revenue leakages. During the conference, several measures were discussed in this regard such as curbing false refund claims, investigating false Input Tax Credit (ITC) cases by the Income Tax… Read More...
FIEO says the delay in e-wallet scheme is unfortunate (1/7/2020) - Source: smetimes.in On Monday, the industry body Federation of Indian Export Organizations (FIEO) termed the delay in e-wallet scheme as unfortunate. The scheme has not been in operation yet, which was aimed at easing liquidity problem in the wake of GST implementation in 2017. FIEO President Sharad Kumar Saraf said in a statement, "Unfortunately, the scheme of e-wallet, which was recommended by the GST Council as early as October 6, 2017, which was expected to be put into operation in… Read More...
States to face revenue gap of over ₹1 trillion post GST compensation withdrawal (1/6/2020) - Source: Livemint A report published by the economic think tank NIPFP says that the states might be facing a shortage of up to ₹1.23 Lakh Crore in consolidated revenue on account of the withdrawal of compensation by the central government after the five-year Goods and Services Tax (GST) transition period which ends on June 30, 2022. At the time of the implementation of GST on July 1, 2017, the Centre had promised states of compensation for loss of revenue for… Read More...
Tax officers to discuss ways to boost compliance and plug leakages (1/3/2020) - Source: Economic Times Revenue Secretary Ajay Bhusan Pandey is to chair a day-long meeting on January 7 with top tax officials to discuss ways to streamline the Goods and Services Tax (GST) and plug revenue leakages. The government is planning the increase the use of artificial intelligence (AI) and data analytics to keep track of tax evasion and boost compliance in the indirect tax regime in order to augment revenue. The second national-level meeting of GST officers including Commissioners of… Read More...
GST revenue mop-up crosses ₹1 Lakh Crore mark in December (1/2/2020) - Source: Business Today After contracting for two consecutive months in September and October, Goods and Services Tax (GST) revenue mop-up in December crossed the ₹1 Lakh Crore mark, growing 8.9% on a year-on-year basis. The GST revenue in November too had topped ₹1 Lakh Crore, but revenue figures of December were keenly watched since the November collections were largely attributed to higher festive sales. The GST collection in December still fell short of the target set by the finance ministry… Read More...
The center to discuss GST overhaul after presenting budget 2020-21 (12/31/2019) - Source: Livemint The center along with state governments will conduct fresh negotiations on GST (Goods and Services Tax) structure after presenting the Union Budget on 1 February, said one of the government officials familiar with the development. The Finance minister of central as well as states are also likely to discuss restructuring GST rates and slabs. The officials will talk about restructuring flaws, the shortfall in revenue collection and also the tax compensation is being paid to states. The exemptions… Read More...
Around 250 established export houses denied GST refunds (12/30/2019) - Source: Financial Express Amidst the dismal performance of country's export sector – merchandise exports dipped 0.34% year-on-year in November, contracting fifth time in the past eight months – as many as 245 Star Export Houses and over 5,000 other exporters are unable to utilize their Goods and Services Tax (GST) refunds due to alleged overreach by the tax authorities. A new system introduced to identify 'risky exporters' – those who are suspected to claim excessive input tax credits – comprises… Read More...
Not filing GST returns could cost you your property, bank accounts (12/27/2019) - Source: Economic Times In a move aimed at improving compliance, the government has issued a set of instructions to field officers that could cost businesses their assets, as well as their tax registrations if they fail to file their Goods and Services Tax (GST) returns on time. According to the standard operating procedure (SOP) issued by the Union finance ministry, field officers are instructed to provisionally attach assets of registered GST taxpayers, including bank accounts, if in case they think… Read More...
GST Council to form grievance redressal committee for taxpayers (12/26/2019) - Source: The Hindu BusinessLine The Central Board of Indirect Taxes and Customs (CBIC) has directed the Goods and Services Tax (GST) Council to set up a grievance redressal committee for taxpayers at zonal and state levels. The Council at its 38th meeting held on December 18 decided to put a structured mechanism in place under GST for taxpayers to tackle grievances of specific and general nature. The Grievance Redressal Committee (GRC) will consist of both central tax and state tax officials,… Read More...
6 Reasons to Use Cloud-Based & Automated GST Software (12/26/2019) - GST, one of the greatest tax reforms, subsumed all the indirect taxes and has been implemented as a single and unified indirect tax to bring efficiency in the administration of taxes. Although it has completed two years of tenure, the filing GST returns, reconciliation has created a lot of hurdles for taxpayers. The implementation of GST has not been less than a topsy-turvy ride for taxpayers and has been tough for small businesses too. Even the process of filling and managing… Read More...
GST compensation cess may see a shortfall of ₹63,000 Crore (12/24/2019) - Source: Economic Times Amidst the decline in revenue, the government is staring at a shortfall of ₹63,000 Crore in Goods and Services Tax (GST) compensation payout to states for FY20. The delay in the release of compensation to states could severely affect the flow of funds across the country and has also been a bone of contention between the Centre and states government. The issue of delayed compensation payment to states was discussed in detail at the 38th GST Council Meeting… Read More...
Government may give GST relief to companies under IBC process (12/23/2019) - Source: Economic Times The companies that are undergoing resolution under the Insolvency and Bankruptcy Code (IBC) are likely to pay current levies of Goods and Services Tax (GST), without the mandatory requirement to pay past dues. The government is going to allow this to remove a hurdle in the bankruptcy resolution process. According to senior government officials, the Ministry of Corporate Affairs (MCA) and Department of Revenue (DoR) officials have begun talks on the matter and are likely to unveil… Read More...
Cash flow to be hit further as GST Council lowers eligible credit (12/20/2019) - Source: Economic Times An analysis done by the Goods and Services Tax (GST) department revealed as much as 39% or ₹2.5 lakh crore of input tax credit (ITC) availed by taxpayers in FY2018 remained unmatched with the invoices uploaded by their suppliers. Although the gap had come down to 13% or ₹1.7 lakh crore in FY19, it was still very significant and unacceptable to the department and highlighted the need for ways to curb tax evasion. The GST Council, at… Read More...
38th GST Council Meeting: Single tax rate on lotteries, Filing deadline extended (12/19/2019) - Source: Economic Times The Goods and Services Tax (GST) Council, in its 38th meeting chaired by the Union Finance Minister Nirmala Sitharaman, decided to have a single tax rate on state-run and state-authorized lotteries and extend the deadline for filing of GSTR-9 and GSTR-9C returns. The last date for filing of GSTR-9 (Annual Return) and GSTR-9C (Reconciliation Statement) for FY2017-18 has been extended to 31st January 2020, from 31st December 2019. The Council for the first time, since it was… Read More...
Govt sets ₹1.1 Lakh Cr as monthly GST mop-up target for tax officials (12/18/2019) - Source: Economic Times The Finance Ministry has urged tax officials to step up their efforts to meet the revenue mop-up target of an average ₹1.15 Lakh Crore monthly GST collection in the remaining four months of this fiscal. In a video conference meeting with officials from Central Board of Indirect Taxes and Customs (CBIC and Central Board of Direct Taxes (CBDT), Principal Chief Commissioners, Chief Commissioners and other senior officers, Revenue Secretary Ajay Bhushan Pandey is learned to have asked… Read More...
Government releases ₹35,298 Crore in GST compensation to states (12/17/2019) - Source: The Hindu The central government released GST compensation of ₹35,298 Crore to states and union territories for the loss of revenue they have incurred due to the implementation of the Goods and Services Tax (GST). Some states had been complaining about the month-long delay in the release of GST compensation. The matter was likely to be taken up in the upcoming 38th GST Council meeting which is expected to take place on the 18th of December 2019. With the roll-out of… Read More...
Businesses seek continuation of four-digit HSN code (12/16/2019) - Source: business-standard Businesses have sought staggered implementation of new returns under the Goods and Services Tax (GST), which are to be introduced from the start of the next fiscal. They have submitted their feedback to the government seeking the continuation of the use of a four-digit level harmonized system of nomenclature (HSN) code. The GST Council had decided to delay the implementation of the new tax returns from the planned gradual implementation from October this year. These new returns are… Read More...
GST revenue decline increasing Centre’s payout to states (12/12/2019) - Source: Economic Times The decline in Goods and Services Tax (GST) mop-up has significantly increased the compensation that the central government pays to states for revenue loss on account of the nation-wide implementation of the indirect tax. According to a report issued by the Parliamentary Standing Committee on Finance, the Centre paid ₹45,745 Crore in compensation to states in April-July this year, a 143% increase over the ₹18,829 Crore paid in the same period last year. Compensation to states for… Read More...
GST authorities detected under-reporting of e-commerce sales (12/11/2019) - Source: Livemint The Goods and Services Tax (GST) authorities have unearthed instances of under-reporting of online sales by several companies that sell goods on e-commerce platforms such as Amazon and Flipkart. Their online sales were found to be much lower when compared to the tax collected at source (TCS) data furnished by the marketplaces on these transactions. Given the organized nature of the marketplaces, online sales are much more traceable meaning evasion even in this industry confirms fears expressed by… Read More...
CGST falls short by 40% of budgeted estimate in April-November (12/10/2019) - Source: hindustantimes The Central GST mop-up fell short of the budget estimate by nearly 40% during the April-November period of 2019-20. The data presented by Minister of State for Finance Anurag Singh Thakur to the Parliament on Monday showed that the actual CGST collection during Apr-Nov stood at ₹3,28,365 Crore while the budget estimate is ₹5,26,000 Crore for these months. The minister added that the data was, however, provisional meaning that the actual CGST collection in 2018-19 stood at ₹4,57,534… Read More...
Government to restructure GST rates and cess to boost revenue (12/9/2019) - Source: Times of India In the midst of a slowing economy, with the lowest growth of 4.5% in the second quarter in over six years, the government is working on multiple measures to boost demand and revive economic growth. Finance Minister Nirmala Sitharaman said on Saturday that some of the steps to be taken to revive the ailing economy include another major reform in GST and personal income tax rationalization. Speaking on the matter, the finance minister said that the… Read More...
CBIC withdraws GST circular on taxing IT-enabled services (12/6/2019) - Source: Business Standard In a major relief to companies, especially multinational ones, the Central Board of Indirect and Custom (CBIC) has decided to withdraw a circular on the scope of information technology-enabled services (ITeS) and coverage under intermediary services. This circular, issued back in July, had created ambiguity in the back-office/IT services industry as they were to be treated as 'intermediaries' under the Goods and Services Tax (GST). The circular has been withdrawn in view of numerous representations being received… Read More...
What to do if your e-way bill generation facility is blocked? (12/5/2019) - Source: Economic Times To curb tax evasion and non-filing of GST returns, the government has implemented the blocking of the e-way bill generation facility, with effect from December 2, 2019. Taxpayers who have not filed their returns for the previous two or more consecutive tax periods are barred from generating the e-way bill. What is the reason for the blocking of e-way bill generation? According to the GSTN data, there are around 20.75 Lakh GSTINs that have not filed GSTR-3B… Read More...
GST Council to review revenue concerns on the next meeting (12/4/2019) - Source: Economic Times On its next meeting on December 18, the GST Council is expected to discuss various revenue-raising measures including review of the tax structure, and an alternative mechanism for compensation cess. Amidst the declining revenue concern, the indirect tax body will deliberate on GST and compensation cess rates levied on select goods, exempted items, and revenue augmentation measures. The secretariat of the GST Council has sought inputs from the state governments on these issues. The council meeting, expected… Read More...
GST revenue mop-up in November crosses ₹1 Lakh Crore mark (12/2/2019) - Source: The Hindu BusineLine After two months of decline, Goods and Services Tax (GST) collection crossed the ₹1 Lakh Crore mark in November with the revenue growing by 6% to ₹1.03 trillion in the month. An official statement released by Ministry of Finance said out of gross GST revenue collection of ₹1,03,492 Crore in the month of November 2019, CGST is ₹19,592 Crore, SGST is ₹27,144 Crore, IGST is ₹49,028 Crore₹20,948 Crore collected on imports), and Cess is ₹7,727 Crore… Read More...
Government planning a new lottery scheme for GST payers (11/28/2019) - Source: bloombergquint.com The Ministry of Finance is planning to introduce a lottery scheme to lure taxpayers to pay Goods and Services Tax (GST). According to a senior government official, this will be a step to improve compliance and check on tax leakages. The plan for the lottery scheme, which is still at an initial stage, is to hold daily and monthly lotteries for customers who make a business to consumer purchase and also take a copy of the bill after… Read More...
Purchase without bill identified as a major source of GST leakage (11/26/2019) - At the first national GST conference on Monday, the issue of consumers often paying in cash without taking a bill was identified as a key source of leakage of Goods and Services Tax (GST). At the meeting, which was attended by senior tax officers from across the country, it was discussed how incentivizing digital payments in B2C sales might plug revenue leakages. Tax officials also suggested that a check on this channel of leakage could bolster the revenue by 15-20%.… Read More...
System generated red flags in GST returns worries taxpayers (11/25/2019) - Many taxpayers registered under Goods and Services Tax (GST), especially small firms, are worried these days of system-generated red flags being shown in their online return forms. Little time is given by authorities to the taxpayers to respond to the red flags which are creating an environment of panic among the assessees. Normally, the taxpayers are worried about any communication coming from the tax authorities. In the case of these red-flag reports, any person would panic because of it being… Read More...
States concerned over delay in GST compensation (11/21/2019) - Five states – Delhi, Punjab, Kerala, West Bengal, and Rajasthan – released a joint statement urging the central government to immediately clear the pending GST compensation for the August-September period. Finance ministers from these states said that the delay in compensation payment has put acute pressure on fiscals and led to short term borrowing from the RBI. The states also demanded a dispute resolution mechanism that could be of use in such cases. The joint statement said, "The GST compensation… Read More...
CBIC issues circular easing input tax refunds for exporters (11/20/2019) - The Central Board of Indirect Taxes and Customs (CBIC) has directed tax officials to not insist on proof of realization of export proceeds while processing the input tax refunds. Since the implementation of Goods and Services Tax (GST) in July 2017, delay in issuance of refunds has been a major issue for exporters. The new directive from the customs authority is in line with the assurance from Finance Minister Nirmala Sitharaman to the industry that the compliance process will be… Read More...
Finance Minister holds meeting to simplify GST (11/18/2019) - With a view to simplifying GST and making the filing process more user-friendly, Finance Minister Nirmala Sitharaman held a meeting with chartered accountants, traders and other stakeholders on Saturday. In the meeting, the stakeholders tried filing specific returns in real-time to highlight the challenges they are facing during the filing process. The finance minister assured that the suggestions on GST return filing simplification offered by them will be taken into consideration. She also suggested to carry out similar exercises in… Read More...
Best GST Software for Chartered Accountants (CA) in India (11/15/2019) - After being implemented on 1st July 2017, Goods and Services Tax (GST) has played a significant role in shaping up the country. Almost every business sector noticed impacts of GST, in addition, many professions are also affected by the new indirect tax regime. One of such professions affected by the introduction of GST is Chartered Accountant. The introduction of GST has created a surge in the demand for skilled and informed CAs who can help businesses to manage their GST… Read More...
Centre to block e-way bill generation for GST return non-filers (11/13/2019) - Source: businesstoday.in In an attempt to curtail tax leakage and concerned with the continuous decline in monthly revenue of Goods and Services Tax (GST), the government and indirect tax department are planning to impose stricter measures against non-compliant taxpayers. The tax department is considering to block the facility of e-way bill generation from 17th November 2019 onwards for taxpayers who have not filed two consecutive GSTR-3B returns. After the filing of one of the pending returns, the ability to generate… Read More...
CBIC issues circular on new GST input tax credit rules (11/12/2019) - Source: financialexpress.com As a huge relief for taxpayers, the Central Board of Indirect Taxes and Customs (CBIC) on Monday issued a circular to clarify the new rules related to claiming the tax credit. Last month, the government had announced restrictions on input tax credit (ITC) to 20% of the total eligible credit with respect to vendors who have not done invoicing matching and uploaded invoice details at the GST portal. The circular said that the rules would not be applicable… Read More...
Govt to discuss measures to curb GST evasion on Monday (11/8/2019) - Source: Indian Express In a first-of-its-kind interaction, delinked from the agenda of the Goods and Services Tax (GST) Council meeting, tax officers from the states and the Centre are set to discuss administrative, legal, revenue, and implementation-related issues under the indirect tax regime. Officer-level meetings have usually taken place a day before the GST Council meetings, mainly to discuss measures outlined in the Council's meeting agenda. As declining revenues under the GST have become a concern, central and state tax… Read More...
CBIC to use Document Identification Number from November 8 (11/7/2019) - In order to protect honest GST taxpayers from any harassment at the hands of tax officials, the Central Board of Indirect Taxes and Customs (CBIC) will start using a unique number in all its communications with taxpayers from Friday. Every communication such as search authorization, inspection notices, arrest memos, and letters issued by the department will have a computer-generated Document Identification Number (DIN). CBIC is the apex policy-making body for indirect taxes in the Central government. After being implemented by… Read More...
GST rate cut stimulates hotel sector revenue in Q3 2019 (11/6/2019) - Source: hospitalitybizindia.com In its 37th Meeting, the Goods and Services Tax (GST) Council had announced a reduction in GST rates for hotel room tariffs. This has started showing positive results in the hospitality sector, with nine out of the top 11 markets seeing better performance in terms of revenue per available rooms (RevPAR) and average daily rates (ADR). According to the JLL's report titled Third Quarter Hotel Momentum India (HMI), nine out of the top 11 cities witnessed a rise… Read More...
Credit of education, farm-related cesses can be availed under GST (11/5/2019) - Source: thehindubusinessline.com As a relief for many companies, the Madras High Court has permitted the transition of credit of Education Cess, Secondary/Higher Education Cess, and Krishi Kalyan Cess into the Goods and Services Tax (GST) regime. Since the High Court's orders have precedent value, this particular order can be beneficial for taxpayers who cases are pending in various judicial forums. The Education Cess (EC), Secondary and Higher Education Cess (SHEC), and Krishi Kalyan Cess (KKC) were levied during the pre-GST… Read More...
GST Collection in October remains below ₹1 Lakh Crore mark (11/4/2019) - Source: pib.gov.in According to the data released by the Ministry of Finance on Friday, the GST collection in October 2019 stood at ₹95,380, a 5.29% decline compared to the same month last year. However, the GST revenue grew marginally by 3.76% in comparison to September as businesses stocked up for the festive season. The total revenue from GST in September 2019 stood at ₹91,916 Crore and the collection in October 2018 stood at ₹1,00,710 Crore. This is the third consecutive… Read More...
Finance Ministry pays 97% of GST refunds due to MSMEs (11/1/2019) - Source: The Hindu According to the Finance Ministry, as much as 97% of GST refunds due to MSMEs (Micro, Small and Medium Enterprises) as of August 23 has been paid by the government. In a status report released by the Finance Ministry on the implementation of measures announced by Finance Minister Nirmala Sitharaman in August and September, it said that of the ₹10,841 Crore pending refunds as of August 23, ₹10,490 Crore has been paid till October 24. The report… Read More...
Centre may limit the number of invoices for new GST registrants (10/31/2019) - Source: India Express To put an end to the creation of fake invoices under the Goods and Services Tax (GST) regime, the Centre is planning to limit the number of invoices generated by new registrants. The cap on the number of invoices will be set in keeping with the annual turnover of the businesses, which could then be increased on the basis of credit history. The restrictions on the number of invoices are likely to come into effect with the… Read More...
New GST rules governing ITC refund creates confusion (10/30/2019) - Source: Financial Express Earlier this month, the government had notified new rules restricting the refund of input tax credit (ITC) to 20% of the total claimed amount. Many GST registered payers and businesses will begin filing their returns from next week under the new rules governing the refund of the input tax credit. On October 9, the GST Council notified of new rules under section 43 of the GST law that restricts the refund amount to 20% of the total… Read More...
Nodal officers appointed to exclusively handle GST complaints (10/29/2019) - Source: business-standard In line with the government's assurance that wealth creators would be respected and honest taxpayers would not be harassed, the Central Board of Indirect Taxes and Customs (CBIC) has decided to appoint a nodal officer in each CGST and Customs Commissionerate. The indirect tax body is appointing the tax officers to sort out grievances of the taxpayer. Industry and tax experts have welcomed the decision saying, if in case the grievances are not resolved at the designated level,… Read More...
Finance Minister promises further GST simplification (10/25/2019) - Source: Times of India On Thursday, Union Finance Minister Nirmala Sitharaman assured efforts will be made to further simplify the Goods and Services Tax (GST) and expressed hope that it will lead to further improvement in India's ranking in the World Bank's ease of doing business index. India has jumped 14 places to be 63rd among 190 nations in the World Bank's ease of doing business ranking index as a result of a significant improvement in resolving insolvency and obtaining construction… Read More...
TN urges Centre: Reduce GST rate on machined job works (10/24/2019) - On Wednesday, Tamil Nadu Municipal Administration and Rural Development Minister S.P. Velumani urged Finance Minister Nirmala Sitharaman to reduce Goods and Services Tax (GST) on machined job order items from the existing 12% to 5%. In a memorandum submitted to the Union Finance Minister, Velumani said the rate cut would greatly benefit the majority of micro and small scale industries (MSSI). He also thanked the minister for taking efforts to reduce GST on such job works from 18% to 12%… Read More...
States ahead of Centre in meeting GST returns compliance (10/23/2019) - Source: indiatvnews.com In a review conducted by the Finance Ministry this month, a significant gap was found in the filing of returns among Centre-administered assessees in comparison to the states. The conclusion has been made on the basis of the analysis of returns filed in respect of GSTR-1 and Form GSTR-3B. GSTR-1 is a monthly return statement summarizing all outward supplies furnished by all normal and casual registered taxpayers. Likewise, GSTR-3B is a monthly return filed by every taxable person… Read More...
Hotels, travel agencies refunding GST after the rate cut (10/22/2019) - Source: thehindubusinessline.com If you had made a hotel booking in September or earlier for a stay in October and onward, you might have received a message regarding a refund of some amount. Keeping in view with the Goods and Services Tax (GST) reduction, the amount of tax applicable on your hotel booking has been reduced which means you are entitled to a refund. After lowering of GST rate for the hotel sector, this is probably the first time when a… Read More...
New GST returns may require firms to change their ERP system (10/21/2019) - Source: Livemint Companies may have to change their enterprise resource planning (ERP) systems because of the new Goods and Services Tax (GST) returns which will be implemented from April 2020 onward. The new return forms would require a lot of details such as purchases from unregistered dealers. Additionally, the bill of entry-wise import details and bill of entry-wise purchases from special economic zones (SEZs) would also be required. Enterprise Resource Planning (ERP) is a software that helps companies manage and… Read More...
Hopeful of meeting GST collection targets: Revenue Secretary (10/16/2019) - Source: thehindubusinessline.com Revenue Secretary Ajay Bhushan Pandey has said that the government is in the right direction to meet its tax targets, in spite of the significant corporate tax cut. He also added that the measures taken on revenue and the budget can have an impact on the collection of personal income tax. Pandey strongly refuted the claim that the Goods and Services Tax (GST) was the cause behind the current economic slowdown, adding it has bought down the taxes… Read More...
Changes to the rules for claiming the input tax credit (ITC) (10/15/2019) - Source: economictimes The government has introduced limitations on the availability of input tax credit (ITC) by GST assesses, if the details have not been provided by the supplier. This is aimed to curb the peril of bogus invoices and improve cash flow, while this could lead to an increased workload for assesses. As per the existing system, assesses are required to file two return forms – GSTR-1 which is for outward sales with tax liability and GSTR-3B which consists of… Read More...
Committee formed to boost GST collections to hold first meeting on Tuesday (10/14/2019) - Source: indiatoday.in A high-level committee set up by the GST Council to suggest measures to boost GST revenue collection will hold its first meeting on Tuesday. The 12-member committee which constitutes of Central and State tax officials is also tasked to find ways to check evasion and expand tax base amidst the falling revenue collections under Goods and Services Tax (GST). Mirroring the slowdown in the economy, the GST revenue collections dropped sharply to a 19-month low in September to… Read More...
GST Council sets up a committee to boost revenue (10/11/2019) - Source: businesstoday.in On Thursday, amidst the failing Goods and Services Tax (GST) revenues, the GST Council Secretariat set up a panel of Central and State tax officers to suggest "a wide range of reforms" to boost GST collection. The main focus for the 12-member committee will be improving compliance under the indirect tax regime, suggesting steps to check evasion, and clamping down on misuse. The move to look for measures to boost GST revenue comes as gross monthly collections dipped… Read More...
Centre’s GST revenue goes up, state’s collection dip (10/10/2019) - Source: business-standard In the current financial year, the overall monthly collections under the Goods and Services Tax (GST) are showing a weak trend due to the slowdown. In the first half of this fiscal, the national collections grew by 5%. GST is a federal tax which is collected by both the Centre and the States and then distributed among both. This means, in theory, the Centre's (CGST) and States' (SGST) should grow equally. However, so far, that is clearly not… Read More...
E-Assessment scheme launched by I-T Department (10/9/2019) - Source: Economic Times On Monday, the income tax department launched a faceless e-assessment scheme that eliminates the physical interface between an assessing officer and a taxpayer. Considered as a major initiative in the direction of tax reform, it will help taxpayers to avoid interaction with the quintessential assessment officer in person. "This is aimed at moving to faceless scrutiny and elimination of human interface," said Revenue Secretary Ajay Bhushan Pandey during the inauguration of the National e-Assessment Centre (NeAC). The… Read More...
Sahaj and Sugam – GST Council Approves Simpler Returns (10/4/2019) - In its 31st meeting, the Goods and Services Tax (GST) Council decided to introduce a new GST return system to facilitate taxpayers. A prototype of the offline tool has been shared on the GST portal in May 2019 to allow the users to familiarize with the look and feel of the tool. The offline tool would be similar to that of the online portal. The Council has announced that simplified GST returns (Sahaj and Sugam) filing system would be introduced… Read More...
File GST NIL Return just by sending SMS from April (10/4/2019) - Source: Times of India Starting from 1st April 2020, one in five Goods and Services Tax (GST) payers will simply need to send an SMS (short message service) to file monthly or quarterly returns. Instead of filing their returns online, assessees with 'NIL' returns can send an SMS to a specified number and confirm it using a one-time password (OTP). Prakash Kumar, CEO of GST Network (GSTN) said, "Under the new system, assessees with nil turnover will just need to… Read More...
September GST Collection slips below ₹1 Lakh Crore mark (10/3/2019) - Source: Economic Times The Goods and Services Tax (GST) collection in September has dropped to a 19-month low at ₹91,916 Crore, according to the data released by the government on Tuesday. For the second consecutive month, the collection did not meet the target and also dropped below ₹1 Lakh Crore mark. In the previous month of August, the collection stood at ₹98,202 Crore. Amidst the economic slowdown due to shrinking consumer demand, this month's collection has been the lowest in… Read More...
What is GST Reconciliation and what are its common issues? (10/1/2019) - Under Goods and Services Tax (GST), reconciliation means recording every transaction that took place during a period while also ensuring that the data filed by the supplier matches with those of the recipients. This enables one to make sure that no sales or purchases are missing or wrongly reported in the GST returns. In order to claim the input tax credit (ITC), the taxpayers have to reconcile their data with that of the vendors on a regular basis. Although the… Read More...
GSTN has Started the Online Refund Process (9/27/2019) - Source: Business Standard GST Network, which provides IT infrastructure and services to the indirect tax system, has unveiled the online refund process as directed by the GST Council. In a statement released by GSTN, it said that the deployment of online refund functionality enables taxpayers to file refund application (in RFD 01 Form) and get it processed by tax officers online. All other communications between the taxpayers and tax officers will also be online. Introduction of the new online processing… Read More...
GST Rate Cut on Hotel Tariffs Might Boost Tourism (9/24/2019) - Source: thehindubusinessline.com Goods and Services Tax (GST) Council in its 37th Meeting held in Goa announced a reduction in the tax rate for hotel room tariffs. On Monday, Prahlad Singh Patel, Union Minister of State (Independent Charge) for Tourism and Culture said that the recent announcement to lower the tax rate is a Diwali gift for the tourism sector. Investors too showed interest in the tax cut as hotel stocks zoomed up to 20 percent. In anticipation of a rate… Read More...
Highlights of the 37th GST Council Meeting (9/23/2019) - In midst of the demand for rate cuts by several industries, the GST Council held its meeting in Panaji on 20th September 2019. Headed by the Union Finance Minister Nirmala Sitharaman and comprising of representatives from all the states and union territories (UTs), the 37th GST Council meeting in Goa was held in the backdrop of a slowdown in economic growth which hit a six-year low of 5% for the first quarter of the current financial year. The meeting was… Read More...
GST Collections to Fall Short of ₹ 40,000 Crore from Expectation (9/23/2019) - Source: Times of India The government is expecting to fall short of around ₹ 40,000 Crore in the Goods and Services Tax (GST) collections over what has been a budgetary projection for FY 2019-20. This could force the government to rethink about the compensation provided to states in case the tax growth falls below 14% during the year. The Centre has also informed the GST Council, which met in Goa for 37th GST Council meeting, about the shortfall amid the… Read More...
Low Tax Collection May Restrict Govt From Providing a Stimulus Package (9/20/2019) - Source: financialexpress.com The slow growth in the net direct tax collections so far in this fiscal may limit the government from providing a fiscal stimulus to the failing economy. The ongoing economic slowdown had a negative impact on direct tax collections, which grew by only 5% between April 1 and September 15, in comparison to 17.3% during the same time last year. The overall revenue is expected to be hit harder by lower collections in both direct tax and GST,… Read More...
Govt may Levy Different Interest Rates for Late GST Payment (9/19/2019) - Source: Hindustan Times In an effort to pursue businesses to pay their taxes on time and to boost revenue collection, the government might levy different interest rates on taxpayers for late payment of Goods and Services Tax (GST). The levied interest for the first three months could be 18% and 24% afterward. The tax officials said that the government will begin to charge interest on the net GST amount and not on the gross amount which has been the case… Read More...
Large & Small Taxpayers might have Separate Due Dates: GST Council (9/17/2019) - Source: cnbctv18.com In the upcoming meeting, the GST council is likely to discuss the possibility of separate due dates for large and small taxpayers, under the new simplified return process. It might ease the compliance burden and prevent the overload on the system due to last-minute rush of taxpayers to file their returns. The Council is scheduled to meet this Friday during which they will discuss on relaxing the dates for new simplified returns being implemented from Jan 2020. The… Read More...
Next GST Council Meet Agenda: Check Evasion & Boost Collections (9/16/2019) - Source: Times of India The next GST Council meeting to be held in Goa on Friday will focus on shutting down leaks and prevent evasions by adopting new provisions. Cases close to ₹ 50, 000 crores have been detected by the Centre. Hence, it has decided to tighten the processes that include ITC claim process too. The major agenda of the 37th GST Council meeting this week will be devising ways on how to boost GST collections and improve revenue.… Read More...
Small taxpayers might be waived off of filing annual returns (9/12/2019) - Source: cnbctv18.com In order to ease the compliance burden for small taxpayers, the upcoming Goods and Services Tax (GST) Council meeting is likely to waive off the requirement to file annual returns for taxpayers below the annual turnover of ₹ 2 Crore. It is reported that the GST Council in its meeting on September 20 will consider exempting the small taxpayers from filing annual GST returns such as GSTR-9, GSTR-9A and GSTR-9C for the financial year 2017-18 only or FY2018-19… Read More...
HostBooks is Celebrating 4 Years of Unity, Trust & Deliverability (9/11/2019) - On the special occasion of completing 4 years, we have launched the 4th Anniversary Celebration Sale (5th to 20th September) for all our software solutions. The ability to manage accounting and tax compliance and that too at an affordable price is not easy. Hence, the idea behind launching this program is to make that a reality. We offer cloud-based software solutions which allow you to access and manage your account from any corner of the world. HostBooks 4th Anniversary Sale… Read More...
Possibility of the GST Shortfall Grows (9/11/2019) - Source: telegraphindia.com Considering the lower than expected mop-up so far, the finance ministry fears a shortfall of ₹ 50,000 Crore in GST collections during this financial year. The auto industry is experiencing the worst monthly fall in sales in August and demanding a cut in the tax rate. The 37th GST Council meeting is to be held in Goa next week, during which the auto sector is expecting for some relief. In August, the vehicles sales crashed to a 22-year… Read More...
SGST Collection of Gujarat sees Sluggish Growth (9/10/2019) - Source: dnaindia.com The State Goods and Services Tax (SGST) collection in Gujarat for the first five months of the current fiscal year stood at ₹ 14,642 crore. Compared to last year's SGST collection of ₹ 14,900 crores between April and August, the tax income for the current financial year looked almost stagnant, with a minor drop. Experts believe that if the tax revenue does not increase and meet the projection in the state budget, the state government will have to… Read More...
New GST Return Filing System from Jan 2020 (9/9/2019) - The government announced that a new GST return filing system will be introduced to make it easier for taxpayers. From January 2020 onwards, all taxpayers will be filing Form GST RET-01. In order to ease the transition to the new return system, a plan has been worked out while Form GSTR-3B will be completely phased out. In May 2019, the government shared a prototype of the offline tool on the common portal to familiarize the tool to the users. The… Read More...
GST Cut on Automobiles may incur INR 30,000 Cr Revenue Loss (9/9/2019) - Source: IndianExpress There is a growing expectation that the Goods and Services Tax (GST) Council will decide to cut tax rates for the auto industry in its next meeting in Goa on September 20. However, the major concern for both the central and state-level government is the potential loss in revenue. According to the internal estimates of the tax department, if the industry's demand of rate cut from highest GST slab of 28% to 18% is met, the government's GST… Read More...
How a Business can Prepare for GST Audit? (9/6/2019) - GST audit refers to the examination of records, returns, and other documents maintained by a registered business. Goods and Services Tax (GST) is structured in a way which promotes efficient tax collection, reduction in corruption, and easy inter-state movement of goods. Normally, a taxpayer is required to self-assess his/her tax liability, pay taxes and file returns. However, registered businesses (GSTIN) having a turnover of more than Rs. 2 crores totaling the sale of goods or services in a financial year… Read More...
GST Council Taking Severe Measures to Prevent Tax Evasion (9/5/2019) - Source: Financial Express Goods and Services Tax (GST) Council is speculating over measures to curb tax evasion due to the concerns over the rise in the number of cases. The minister of state for finance, Anurag Thakur, had recently said in a reply to Rajya Sabha that since the implementation of GST on July 1, 2017, the amount of GST evasions is estimated to be ₹ 45, 682 crores. He added that an amount to the tune of ₹ 6,520.40… Read More...
FMCG Companies under the Radar of GST Authorities (9/4/2019) - Source: newindianexpress.com The National Anti-profiteering Authority (NAA) is closely monitoring fast-moving consumer goods (FMCG) and consumer durable companies for price manipulation ahead of the festival season. The authority is especially keeping an eye on evasion of passing on of GST benefits to consumers. Upon receiving the complaints from consumers that the Goods and Services Tax (GST) rate cuts made earlier are not being passed on, the NAA officials are planning to issue notices to companies in the coming days. The… Read More...
Tax Body asks Officers to Meet GST Refund Target (9/3/2019) - Source: thenews21.com Following the promise of Finance Minister Nirmala Sitharaman to clear all pending GST refunds of micro, small and medium enterprises (MSMEs) within 30 days, the Central Board of Indirect Taxes and Customs (CBIC) has encouraged its field officers to make "all possible efforts to successfully realize this target." CBIC Chairman Pranab K. Das wrote to tax officers across the country, "We must endeavor to make this refund drive a grand success." The Chairman has directed the officers to… Read More...
GST Collection Drops Below INR 1 lakh Crore in August (9/2/2019) - Source: businesstoday.in Amid an economic slowdown, the Goods and Services Tax (GST) collection in August 2019 stood at ₹ 98,202 crore from over ₹ 1.02 lakh crore in the previous month. However, the total GST collection for August this year is 4.5 percent higher than the ₹ 93,960 crores collected in the same month last year. During this year, this is the second time that the revenue collection from the GST has slipped below the ₹ 1 lakh crore mark.… Read More...
AP High Court Permits Rectification in GSTR-3B (8/30/2019) - Source: thehindubusinessline.com The Andhra Pradesh High Court has ruled that the GST Return Form – GSTR-3B – is a statement and hence a revision should be allowed. If implemented at the national level, it will be a huge relief for a large number of GST taxpayers not including those under composition scheme. As of June 30, there are more than 1.39 crore GST taxpayers, of which over 17.60 lakh have opted for composition scheme. What is the Composition Scheme Under… Read More...
37th GST Council Meeting to be held on September 20 (8/28/2019) - Source: thehindubusinessline.com The Goods and Services Tax (GST) Council is likely to hold its 37th meeting in Goa on the 20th of September, without considering any rate reduction. The GST Council meeting needs to be held at least once in three months and since the Goa government had offered to host the meeting, it was accepted. The biscuit companies are seeking a GST rate cut from 18 percent as consumers are thinking twice before buying even a ₹5 product. In… Read More...
New Features of GST Portal that You Need to Know (8/27/2019) - Over the last six months, there have been several new updates on the Goods and Services Tax (GST) portal. These new updates are rolled out to make it smooth and effective for taxpayers to file their returns. To avoid missing out on essential compliances, taxpayers need to stay updated and prevent being issued notices to them. Some of the significant new features and updates are listed below that you need to be aware of. Feature#1: Comparison of Declared Liability and Claimed… Read More...
GST Annual Return Filing Deadline Extended to November 30 (8/27/2019) - Source: Economic Times On Monday, the Finance Ministry said that the last date for filing goods and service tax (GST) annual return has been extended by three months to November 30. The last date for filing annual returns for the financial year 2017-18 has been extended by three months as against the previous due date of August 31. This should help those taxpayers who are facing technical problems while furnishing annual returns. The Ministry of Finance said in a statement,… Read More...
Govt Working to Make GST Filing Process Easier (8/26/2019) - Source: Money Control On August 23, Finance Minister Nirmala Sitharaman said that the government is working to make Goods and Services Tax (GST) filing simpler. While announcing several measures to revive the economy, Sitharaman added GST filings would have a fewer number of forms to make the process much easier. After being implemented on July 1, 2017, the government has introduced more than 10 different forms for filing of GST returns. This could make it a complicated process since separate… Read More...
9 Common Mistakes to Avoid While Filing Annual Returns (8/26/2019) - The due date for filing GSTR-9 for the financial year 2018-19 is December 31, 2019. A taxpayer should be extra cautious to avoid making any errors because once filed, GSTR-9 does not allow any correction to be made. It is required to be filed once every year by all registered taxpayers and also the government is going to be vigilant to flag the defaulters. Due to the pressure of filing returns on time, anyone can accidentally commit errors which could… Read More...
How e-Invoicing Works Under GST? (8/21/2019) - Source: BloombergQuint The Goods and Services Tax (GST) is considered as one of the most radical tax reforms in India. Apart from making One Nation, One Tax a reality, it has also ushered in a new era of the indirect tax regime which is both digital and driven by technology. Companies across various industries are looking for technology-enabled solutions to meet GST compliances online on the GST network. In this first two years of technology-driven journey, both industry and the… Read More...
Chief Commissioner Warns of Severe Action for GSTR Non-Filing (8/20/2019) - Source: The Hindu Chief Commissioner of Customs and CGST Visakhapatnam Zone, Naresh Penumaka has said that the taxpayers should file their GST returns for 2017-18 by August 31 and failure to do so will lead to severe consequences, including a heavy penalty. Although there are less than two weeks left, 80% of traders have not filed their returns so far. The commissioner said at a press conference here that the due date for consolidated filing of monthly returns has been… Read More...
North-East States Report over 30 Percent GST Growth (8/16/2019) - Source: The Economic Times During the first four months of the current financial year 2019-20, Northeastern states witnessed over 30 percent growth in GST collection. This is significantly more compared to the increase registered in larger manufacturing states. In fact, the growth reported by most of the seven sister states in GST collection is over three times the national average of 9 percent. According to the data accessed by PTI, the total tax collection during April-July of this fiscal year… Read More...
Frequently Asked Questions (FAQs) on GST Annual Return Filing (GSTR-9) (8/12/2019) - Although GST in India has covered a long distance in India and the Govt. through frequent GST council meetings have made it easier and transparent enough, yet there are some confusing terms and complications. Keeping in view at the ease of taxpayers, some of the Frequently Asked most common Questions are being answered below. This will help them to understand the issues and deal effectively. 1. What is meant by GST Return? A GST Return, in the new Indirect-tax administration, is… Read More...
Only 20% of Taxpayers File GST Returns for FY18 (8/12/2019) - Source: The Times of India Even after a year of the due date, out of an estimated 90 lakh taxpayers, only 19.3 lakh have filed their GSTR-9, GSTR-9A, and GSTR-9C forms. Regardless of extending deadlines on several occasions, by August 3, only around a fifth of the Goods and Services Tax (GST), payers have filed their returns. Although officials said that there has been some increase in recent days. An officer said, "There was a delay in putting in place… Read More...
Maharashtra Tops the GST Collection (8/9/2019) - Source: DNA India The Goods and Services Tax (GST) collection of the state of Maharashtra stands at Rs. 1.70 lakh crore. This amounts to 15% of total GST collection of all India in the financial year 2018-19. The contribution of Maharashtra is found to be the highest GST collection among all states of India. As stated by the Sudhir Mungantiwar, the cabinet minister of finance, the growth of Maharashtra is highest among all states which have positively influenced the high… Read More...
I-T launches a New Way to e-Verify Income Tax Return (8/8/2019) - Source: The Economic Times Until the time you verify your income tax return, the filing process is incomplete. There are multiple options through which you can e-verify your ITR and it should be done within 120 days of filing your return. To make the process of e-verification easier, the Income Tax Department has launched a new feature on its e-filing website. Now, taxpayers can e-verify their income tax return without logging-in to their account. How to e-Verify ITR Without Login?… Read More...
GSTR 9C: Reconciliation Statement & Certification – Filing, Format & Rules (8/8/2019) - Under the GST regime filing an Annual Return by all GST registered taxpayers, except few, is mandatory. As per the classification of taxpayers and with a view to making the entire system more transparent 3 types of Annual returns have been introduced. However, here in this blog, we shall know about Reconciliation Statement and Certification- Filing, Format, and Rules related to Annual Return GSTR-9C. A Short Introduction of GSTR-9C – As per the GST Act, every person registered under GST, whose annual… Read More...
GST Applicable on Discounts Offered to Retailers (8/7/2019) - Source: livemint The government has decided to levy GST on discounts offered by manufacturers and wholesalers to retailers for passing it on consumers. This has put retailers in a tough spot and could possibly become the area of litigation and confusion. In June, the Central Board of Indirect Taxes and Customs (CBIC) issued a circular clarifying the applicability of taxes on secondary or post-sale discounts. It further stated that the discounts, which dealers get from manufacturers and wholesalers, helps in… Read More...
Low GST Collections Due to Economic Slowdown (8/6/2019) - Source: Business Today In midst of the economic slowdown, Goods and Services Tax (GST) collections crossed the Rs. 1-lakh crore mark in July 2019. GST collections stood at Rs. 1.02 lakh crore rising 6 percent and 2 percent, in comparison with the figures in July 2018 and June 2019 respectively. At the same time, the rating agency Crisil adjusted the gross domestic product (GDP) target downwards for 2019-20 to 6.9 percent from 7.1 percent earlier. The monthly collections of GST… Read More...
Firms Can Raise Prices After Passing on GST Cuts (8/5/2019) - Source: livemint Once companies pass on the benefit of GST rate cuts to customers, they are allowed to raise prices for products and services. They might be able to do this depending on their business cycle without worrying about being caught in the anti-profiteering provision of Goods and Services Tax (GST) law. An official, who is aware of how the National Anti-profiteering Authority (NAA) and its investigative arm work, gave the clarification. Due to the doubt regarding the law and… Read More...
GST Collection Revenue Rose by 5.8 Percent in July (8/2/2019) - Source: Pib The gross GST revenue in July reached over Rs. 1.02 lakh crore regardless of the slowdown in industrial activity. The revenue during July 2019 showed the growth of 5.80% over the revenue in the same month last year which was Rs. 96,483 crore. According to the data released by the Ministry of Finance on Thursday, the revenue collection from GST had dropped below Rs. 1 lakh crore mark at Rs. 99,939 crores on June for the first time… Read More...
Kerala to Impose Flood Cess apart from GST (8/1/2019) - Source: The Hindu The Kerala government is all set to levy 1 percent flood cess on the value of supply of goods or services or both. The proceeds from this will be raised to fund the re-construction of projects impacted by devastating flood occurred in the state in August 2018. The GST Council on its 32nd meeting has given a go-ahead for the levy of Kerala Flood Cess. It will be applicable from 1st August 2019 for the next two… Read More...
Return Filing Offline Tool Released by GSTN for a Trial Run (7/31/2019) - Source: CA Club GSTN, the IT system of the GST portal, has proposed to replace the existing return filing system with the New Return format. As per the new proposed system, a taxpayer will have to file FORM GST RET-1 (Normal) or FORM GST RET-2 (Sahaj) or FORM GST RET-3 (Sugam) on either monthly or quarterly basis. On Tuesday, Goods and Services Tax Network (GSTN) released a trial version of New Return Offline Tool. The offline tool can be used… Read More...
Demand to Reduce GST Rate on Catering Services (7/29/2019) - Source: The Times of India Many caterers and hoteliers from across the country are urging the Centre to reduce GST rates levied on outdoor catering service from 18% to 5%. However, people wishing to spend less on weddings, birthday parties and other events will have to wait for some time because the demand for the reduction of Goods and Services Tax (GST) is yet to be realized. The GST Council has not taken up the issue of tax rates on… Read More...
Coaching Centers Demand a Reduction in GST (7/26/2019) - Source: livemint The representatives of some of the major coaching institutes have met the Union Finance Minister Nirmala Sitharaman demanding to either remove 18 percent GST on coaching centers or reduce it to lower tax slab. In the meeting, which took place on Wednesday in New Delhi, the delegation also highlighted the adverse impact of the current higher GST rate on coaching centers. An official of one of the coaching centers said they requested the finance minister to either discard… Read More...
Interest to be applied on net cash for the late payment of GST (7/25/2019) - Source: The Economic Times The Union Budget 2019 has introduced various new updates to provide relief for GST-registered taxpayers. One of such changes is related to the interest applied on late payment of GST liability. Before the implementation of this amendment, taxpayers had to pay interest on the entire amount of tax paid after the due date. Currently, the rate of interest applied on the late payment of GST is 18% per annum on unpaid tax liability. Before, the interest… Read More...
No GST Invoice Required for Goods Brought Back to India in 6 Months of an Exhibition (7/24/2019) - Source: The Economic Times Exporters who transport goods abroad on a consignment basis for exhibitions or other promotional events won’t have to generate tax invoice if it is brought back within six months. This is especially good news for suppliers of various sectors including gems and jewelry industry. The suppliers of these items often face issues to follow the procedure under GST when taking goods out of India and at the time of consequent return to India. On Monday, the… Read More...
Due Date for Filing FORM GST CMP-08 Extended (7/19/2019) - Source: Taxguru The Central Board of Indirect Taxes and Customs (CBIC) has issued a notification for the extension of due date for filing the returns by composition dealers in Form CMP-08. As per the Notification, “Provided that the due date for furnishing the statement containing the details of payment of self-assessed tax in said FORM GST CMP-08, for the quarter April 2019 to June 2019, or part thereof, shall be the 31st day of July 2019.” The composition taxpayers shall… Read More...
Finance Minister Says GST Collection of States has Risen to ₹ 5.18 Trillion in FY19 (7/16/2019) - Source: Business Standard Finance Minister Nirmala Sitharaman on Monday said that GST collection of states and union territories (UTs) has increased to ₹ 5.18 trillion in FY 2018-19, up from ₹ 2.91 trillion collected in nine months of 2017-18. In addition, Centre has released ₹ 81,177 crore compensation to states during 2018-19, as against ₹ 48,178 crores during July-March period of 2017-18 fiscal. In a written reply to a question in the Lok Sabha, Sitharaman said concerted efforts have been… Read More...
Declare your Mismatch in GST Returns, Outward Supplies in Annual Returns (7/12/2019) - Source: The Economic Times The Ministry of Finance has now declared that any mismatch in the GST monthly sales return and outward supply details should be reported in the annual return form and due taxes should be paid. In a clarification on annual returns and statement for reconciliation, the ministry said it has received various queries from businesses asking whether the primary source of data for filing the annual return and the statement for reconciliation should be GSTR-1, GSTR-3B or… Read More...
Good News for Exporters as Centre to Pay ITC Refund for SGST (7/10/2019) - Source: The Economic Times With a broader view of providing a major relief to exporters, the Centre will now pay the Input Tax Credit refunds of state taxes, thereby minimizing transaction time and costs, and manual interface in claim processing. As per reports of various industries across the nation, there is a big difference in the amount claimed, State Goods and Services Tax (SGST) sanction amount received from Central Tax authority and the amount actually disbursed. According to the 2019-20… Read More...
GST on Incentives, Discounts and Schemes Earned by Dealers: HSN/ SAC Code, Taxability, and Rate (7/9/2019) - Incentives, discounts, and schemes are often offered by suppliers to dealers in order to promote sales. However, the taxability of these incentives, discounts, and schemes under GST can be complex. Understanding the GST implications on these benefits received from suppliers is crucial for dealers to ensure compliance and avoid any potential issues. This article will discuss the taxability of incentives, discounts, and schemes under GST, including the HSN code, taxability, and rate. What are Incentives, discounts, and Schemes by Supplier?… Read More...
10 Important Takeaways for Startups and MSMEs (7/8/2019) - Source: The Economic Times The Union Finance Minister, Nirmala Sitharaman, on July 5th, 2019 presented the Annual Budget for the Financial Year 2019-20 in Parliament. This budget is being said to be futuristic and will have a great impact on Indian Economy in the long run. However, after the Economic Survey 2018-19 pointed toward the need to incentivize newly established firms to boost job creation, the Finance Minister announced various measures that will help bolster the startup and MSME ecosystem… Read More...
No Input Tax Credit for Expenses Incurred on Promotional Schemes (7/5/2019) - Source: Business Line According to the order issued by Maharashtra Authority for Advance Ruling (AAR), Input Tax Credit will not be available on GST paid on expenses incurred towards promotional schemes. Although AAR rulings are applicable for the applicant and the jurisdictional tax officer in a particular matter, the same can be used as an influential tool in similar matters. Accordingly, tax experts feel that the ruling can be significant for automobile or FMCG companies which give gifts as a… Read More...
Expecting Broad-Mindedness from Budget 2019 (7/3/2019) - Source: The Economic Times Fresh off winning a clear mandate in the national election in May 2019, Modi 2.0 is almost ready to bring out the first Union Budget of its second term. It is expected that this budget will be decisive in shaping the tone for administration and conveying the seriousness of the Government to revitalize business, which is reeling under the twin shock of a changing global trade scenario, as well as a reducing domestic economy. Interestingly, this… Read More...
5 Basic Rules to Keep in Mind While Filing ITR On Time (7/2/2019) - Source: The Economic Times The July 31st, 2019 deadline is reaching nearer for filing Income Tax Return of Fiscal Year 2018-19. The Income Tax Department has already opened the window for filing various ITR forms, such as ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 and ITR-7. ITR allows a taxpayer to carry-forward of loss and claims a refund from the income tax department. Not only has that but by filing ITR you also reduced the burden of tax payments. Every year,… Read More...
New GST Return Filing System & Refund Mechanism From Today (7/1/2019) - Source: Deccan Herald The Goods and Services Tax has completed 2 years. On this occasion, the finance ministry has come up with some further reforms - the introduction of a new return system, rationalization of cash ledger system and a single refund-disbursing mechanism, among others. Minister of State for Finance and Corporate Affairs Anurag Thakur will preside over the event alongside key secretaries and officials of various departments, the finance ministry said in a release on Sunday. The introduction of… Read More...
Desk-based GST Audit for Small Assessees (6/28/2019) - Source: Business Line According to the Audit Plan for 2019-20, prepared by the Directorate-General of Audit (Indirect Taxes) under the Central Board of Indirect Taxes & Customs (CBIC), small taxpayers mean assessees with turnover below 7.5-10 crore and medium category include taxpayers with turnover between 7.5-10 crore and 30-40 crore. Beyond this, assessees will fall under the category of large taxpayers. The turnover includes total taxable, exempt and zero-rated clearances of goods and services, but excludes supplies during the year.… Read More...
National Anti Profiteering Authority’s Term Extended by 2 Years (6/27/2019) - Source: Business Line Fears that the GST would disturb India’s litigation problem seem to be coming true as far as anti-profiteering is concerned. Recently, the GST Council extended the tenure of the National Anti-Profiteering Authority (NAA) by two years. On considering the number of pending cases and increasing tussle between NAA and numerous companies, this decision was largely anticipated. A slew of firms has been accused of failing to pass on the rate-reduction benefits commensurately to the last consumers. These… Read More...
GST to be Based on Services Provided by the HO to its Branch in Another State (6/26/2019) - Source: The Economic Times The Finance Ministry has framed a draft circular clarifying the taxability of services provided by head office, located in one State, to the branch office/offices located in another state/states. In technical terms, it is known as cross charges and the issue is how tax can be calculated in such cases. According to the draft, which was circulated during the GST Council Meeting on June 21st, the Ministry said that it has received various representations seeking clarification… Read More...
Inter-state Office Services Should Come Under GST Net (6/25/2019) - Source: The Economic Times The government is ready to make it clear that services provided by an office of an organization in one state to another office in another state will face Goods and Services Tax. According to a Govt. official, a circular to this effect, endorsed by the GST Council, will be shortly issued. This is in line with the view taken by Karnataka Authority for Advance Rulings (AAR) that in-house functions such as human resources and payrolls if… Read More...
GST Commissioners are Continuously Watching and Monitoring Your Business (6/24/2019) - Source: Business Standard The National Anti-profiteering Authority (NAA) has proposed a Standard Operating Procedure (SOP) for all Central and State GST officers to keep an eye on top 20 suppliers in their jurisdictions, who are deeply indulged in making mock purchases and taking other measures. As per Rule 128 of the CGST Rules 2017, a complaint can be filed by an interested party or directly by a commissioner or any other person. A commissioner is considered to be the most… Read More...
Highlights of the 35th GST Council Meet (6/22/2019) - Source: The Economic Times After swearing in of the Modi led new Government, the 35th GST Council Meeting was the first meeting of the Council that took place under the chairmanship of the new Finance Minister Nirmala Sitharaman on 21st June 2019 (Friday) in New Delhi. The Council began with passing a resolution acknowledging the crucial role played by the former Chairperson of GST Council Shri Arun Jaitley and expressed its gratitude for the extraordinary contribution made by him in making the GST… Read More...
Know All About ITR: Last Date, Penalties & Other Details (6/21/2019) - Source: India Today Due Date and Eligibility The last to file your ITR for FY 2018-19 is approaching – July 31st 2019. Individuals and the Hindu Undivided Family (HUFs) having income more than Rs 2.5 lakhs, Rs 3 lakh for senior citizens of age 60 years to 80 years and Rs 5 lakh for super senior citizens of age 80 years or above, are required to file Income Tax Returns (ITR). All companies, Limited liability Partnership (LLPs), trusts, association, political… Read More...
No E-Way Bill from 21st June 2019 if the GST Return has not been Filed for the Last 2 Months (6/20/2019) - Government has come up with new provisions pertaining to E-Way Bill to be implemented from 21st June 2019. Vide Notification No. 74/2018 dated 13.12.2018 a new rule 138E was already inserted by the Govt., which contains the following salient features – The original script of the relevant provisions has been incorporated below for your reference. “138E. Restriction on furnishing of information in PART A of FORM GST EWB-01. – Notwithstanding anything contained in sub-rule (1) of rule 138, no person… Read More...
Electric Vehicles May be Brought Under 5% GST Rate Slab (6/20/2019) - Source: India Today India may cut the Goods and Services Tax on electric vehicles to 5% from 12% to boost the sector that’s a high priority for the new government. The GST Council is set to take up the proposal at its June 20 meeting, said a senior government official aware of the development. “There is a proposal to cut tax rates on EVs among other issues”. Lower duties are expected to encourage global manufacturers to invest in India’s planned… Read More...
The 8 Issues Fixed By GSTN To Ease The Burden On The Taxpayers (6/19/2019) - Source: The Economic Times Although the Goods and Services Tax (GST) is all set to complete 2 years of implementation, the issues or defects are still in existence. These issues have become a cause for concern and have been hindering the process of filing returns since long. In every council meeting that takes place, the GST Council comes up with recommendations to make GST easy and hassle-free. Here’s a list of 8 issues that the Goods and Services Tax Network… Read More...
How is the Government Improving GST Compliance? (6/18/2019) - Source: livemint India is now set to complete two years of the GST regime, the biggest tax reform since independence. The authorities are constantly working on improving the compliance structure in order to boost up the tax receipts. Here are some of the proposals that the GST Council is going to discuss in the upcoming GST Council Meet. 1) What’s the course of GST in the near future? The new and simpler tax return filing forms will make tax evasion… Read More...
How Can You Avoid The Credit Mismatches While Filing GSTR-9? (6/17/2019) - Source: Business Today Taxpayers are preparing themselves to file their annual returns in form GSTR-9 this month. The annual return includes the data filled in by the taxpayer in all his monthly and quarterly returns. And, the taxpayer must ensure that this data matches with the annual return that is being filed by him. The data must also match with his books of accounts. If a mismatch exists, the taxpayer with turnover exceeding Rs 2 crores needs to report the… Read More...
GST Rate on Footwear Might be Lowered to Promote Growth & Exports (6/14/2019) - Source: The Economic Times With a view to promoting growth and exports, the leather exporters have urged the finance ministry to lower the rate GST on footwear. P R Aqeel Ahmed, Chairman, Council for Leather Exports (CLE) raised this issue at a pre-Budget meeting chaired by Finance Minister Nirmala Sitharaman on June 11, 2019. He said that the domestic footwear sector holds the massive potential to create jobs and earn foreign exchange. He further stated that "Reduction of GST on… Read More...
More Items are Likely to be Phased out from the Highest GST Slab (6/13/2019) - Source: The Economic Times India could review the GST structure to reduce the number of items in the highest slab of 28% as it attempts to stop the decrease in demand. Some states who favored the idea of tax-rate reduction worried that the slowdown may get entrenched, and have brought their concerns to the Centre. The 35th GST Council is supposed to meet on June 20th, ahead of the budget presentation on July 5th, and all such topics could figure… Read More...
Government Introduces New GST Return System for Taxpayers (6/12/2019) - Source: The Economic Times The Govt. has introduced a transition plan for taxpayers under the Goods and Services Tax to switch to new simpler return forms. With a view to ease the transition process, between July-September the new form would be available on a trial basis just for familiarization. The GST Council in its 31st meeting, on 22nd December 2018, had decided that a new GST return system will be brought for the ease of taxpayers. According to an Official Statement Made… Read More...
GST Turnover Threshold for e-Invoice may be Fixed at ₹ 50 Cr in the Next Meet (6/10/2019) - Source: The Hindu BusinessLine The GST council would next meet on June 20, 2019, and is likely to propose ₹ 50 cr as the t/o threshold for entities to generate e-invoice on a centralized government portal for business-to-business (B2B) sales. The GST Council will take a final decision on the same after consulting with the states. Analysis of return filing shows that as many as 68,041 businesses have reported a turnover of over ₹ 50 cr and accounted for 66.6% of… Read More...
The Last Date to File GST Annual Return will Continue as June 30 (6/7/2019) - Source: The Economic Times The Union Finance Ministry, on Tuesday, issued a detailed clarification on the GST annual return filing. The last date to file returns will remain June 30. The GST assessees must keep in mind the following important points while filing the return: 1. Information contained in FORM GSTR-2A as on May 1, 2019, shall be auto-populated in Table 8A of FORM GSTR-9. 2. Input Tax Credit on inward supplies shall be declared from April 2018 to March 2019 in Table… Read More...
Last Date for Employers to Issue Form 16 Extended by CBDT (6/6/2019) - Source: The Economic Times The Central Board of Direct Taxes has extended the last date for the employers to issue Form 16 to July 10, 2019 (earlier June 15). Consequently, the last for filing an ITR (July 31 of each year) may get extended. Furthermore, it has also extended the last date for filing of Form 24Q (May 31) by the tax deductors till June 30 for FY 2018-19. In the month of May, an important change was made in the… Read More...
Companies Pitch for GST Rate Cut as the New Govt. Takes Charge Second Time (6/3/2019) - Source: Business Standard Companies across sectors like durables, automobiles and real estate have been lobbying hard for a Goods and Services Tax cut as the Narendra Modi-led NDA Govt. prepares for the second term. Modi and his council of ministers were sworn in on Thursday in the presence of over 8,000 people at the Rashtrapati Bhawan. Durable firms said the issue of rationalizing the tax rate of products, like, ACs and larger television sets, which falls currently under the 28%… Read More...
5 Important Dates – From TDS, TCS to Filing ITR (5/31/2019) - Source: The Economic Times An individual or company is required to share their incomes and gains in a statement to the department. The rules and norms of Income Tax are systematic and are needed to be exercised by citizens on scheduled due dates specified by the Income Tax Department. Paying taxes and filing for Income Tax Returns properly are the two most important practices for taxpayers notified by the Income Tax Department. Every salaried individual is liable to pay his/her… Read More...
Five GST Fixes that Modi Government Needs to Implement (5/30/2019) - Source: India Today On July 1st, 2019, the Goods and Services Tax (GST) shall be completing its two years of getting implemented. Inspired by the idea of ‘One Nation – One Tax – One Market’, GST replaced 17 different types of indirect taxes and cesses with just 5 tax rate slabs, starting from 0% to 28%. It was geared towards making the entire nation a common market and two years later, it appears to have succeeded outstandingly. GST collection in… Read More...
GST Council Implements New Return Forms In a Phased Manner (5/29/2019) - Source: The Economic Times Big businesses will have to start filing GST Returns in the new form before others, with the authorities planning a gradual approach for all future changes to the indirect tax system to avoid disruption at the time of low economic growth. GST authorities were expected to adopt strict enforcement measures to boost revenue receipts, especially with the two-year transition period for GST ending in June 2019. However, the GST Council has now fully decided to bring… Read More...
Finance Commission Does Not Intend To Extend GST Compensation (5/28/2019) - Source: Business Standard The 15th Finance Commission does not have any plan to heed the request of state governments to extend the period for the Goods and Services Tax compensation beyond the initial 5 years, holding that tax buoyancy will take adequate care of the current shortfall in revenue in some states. According to the chairman of the 15th Finance Commission, Mr. N.K. Singh “As GST is a consumption-based tax, the real problem with states is that the guaranteed compensation will… Read More...
Phase-wise Implementation of GST New Return Forms (5/27/2019) - Source: The Hindu BusinessLine As per the planning of GST council, in the first phase, only large businesses are required to start filing GST Returns in the new form before others, with the authorities planning a gradual approach for all future developments in the indirect tax system to stop disruption when economic growth has slowed down. The authorities were expected to apply tough enforcement measures to fortify revenue receipts, especially with the two-year transition period for GST going to end… Read More...
The QR Code Would Become Mandatory For All Shops (5/25/2019) - Source: Times of India With a clear view to promoting Digital payments as the most preferred option, the government is planning to mandate a QR code-based payment option using UPI at all shops and establishments with consumers opting for this method of payment eligible for GST benefits along with shopkeepers. The basic intention behind this measure is to bring more transparency in transactions and records. A Govt. official of the concerning Department said, “We are looking at incentives for both,… Read More...
A National Bench of Appellate Authority May Be Considered Next Month by the GST Council (5/24/2019) - Source: The Economic Times The Goods and Service Tax Council is supposed to consider a proposal for the establishment of a national bench of the Appellate Authority for Advance Ruling next month to reconcile the contradictory orders on similar issues passed by Authorities for Advance Ruling in different states, a step aimed at providing certainty to taxpayers. The revenue department is contemplating on the idea of setting up a national bench of Appellate Authority for Advance Ruling. Since it has… Read More...
Draft of the New GST Return Form Goes Live On the GST Common Portal (5/23/2019) - Source: The Hindu BusinessLine GST authority has come out with a draft of a simplified new version of the return form. This new return form is expected to be formally come into effect from July 2019. Through this exercise, brought publically on Wednesday, the authority aims to receive maximum feedbacks on the user interface and its functionalities. Here, taxpayers can fill the template and mail the same. This new GST Return will have Form GST RET-1 (Normal), Form GST RET-2… Read More...
The Ground Running on The Reformation of GST Would Be Hit by The New Government (5/22/2019) - Source: The Economic Times In the current scenario, lots of items, are outside of the GST circumference. And, the new Govt. must improve its coverage. GST will require adequate attention from the next new government. First, GST must improve its ambit. Presently, real estate and electricity are outside of its circle. While the Centre and states have decided to delay bringing petroleum formally under GST, they have agreed to continue levying excise and value-added tax (VAT) duty as levied earlier… Read More...
Penalties Against Late Filing of Income Tax Returns (5/21/2019) - Source: Moneycontrol The last date for filing Income Tax Returns is July 31st, 2019. This time the Income Tax department may not extend the deadline as strict compliance rules are in force. For taxpayers, this is the right time to sit up and start putting all necessary documents in place required in filing ITR. Before starting the tax filing process, a large number of taxpayers waits till they get Form-16 and then start collecting requisite documents that play pivotal role… Read More...
GST Filing Format Becomes Simpler From July 2019 (5/20/2019) - Source: Business Today The new simplified GST Returns filing format, approved by the GST Council last July, is now ready to be introduced after being deferred twice. In this new format, taxpayers shall be required to file just a single return every month, except small taxpayers and a few exceptions. Those with no purchases, no output tax liability and no ITC in any quarter of the Financial Year will have to file only one 'NIL' return for the entire quarter,… Read More...
Rules for Reversal of Input Tax Credit in GSTR – 9 (Annual Return) (5/20/2019) - Reversals explained in Detail are as Follows: (1) Rule 37 (2) – 180 Days Non – Payment (2) Rule 39 (1) – Credit Note issued to ISD (3) Rule 42 (1) – ITC on Input supplies partly used for business and partly for exempt supplies or Personal use (4) Rule 43 (1) – ITC on Capital Goods partly used for business and partly for exempt supplies or Personal use (5) Others 1. Rule 37 (2) – 180 Days – Non-Payment… Read More...
TDS Certificate Format Issued by Employers Revised by The IT Department (5/17/2019) - Source: The Economic Times The format for Form 16 has been revised by the Income Tax department. It added various details, including income from house property and remuneration received from other employers to check tax evasion. The revised format will also include segregated information regarding deductions under various tax saving schemes, investments in tax savings instruments, different allowances received by the employee as well as income from other sources. Form 16 is a certificate issued by employers, giving details of… Read More...
Taxpayers Need Not Mention GST & GAAR Details In Tax Audit Report Till March 2020 (5/16/2019) - Source: Business Standard The inclusion of GST and GAAR (General Anti-Avoidance Rules) details in the tax audit report has been kept in abeyance till March 31, 2020, by the Income Tax department. This has happened for the second time. The move is applicable to business entities having a turnover of more than Rs 1 crore (or Rs 2 crores if they have opted for presumptive taxation) and professionals with gross receipts of more than Rs 50 lakhs. The due date… Read More...
Paying Taxes Outside The Country? Indian Residents Can Now Claim a Credit (5/15/2019) - Source: The Economic Times If you are working in India for foreign companies, then you are allowed to accept compensation or remuneration in India. Those who are resident in India for tax purposes have to report their global income in India. Hence, this compensation must be included in your tax return filed in India. Your employer may deduct some taxes at source or you may have to file a local tax return in that country. If that case, you will… Read More...
GST Refunds Likely to Get Automated for Exporters From June (5/14/2019) - Source: The Hindu BusinessLine GST refunds are likely to be processed automatically for exporters of goods and services and suppliers to SEZ units from the month of June. The revenue department plans to introduce faceless scrutiny of refunds and faster claim settlement, an official said. Every person making a claim of refund on account of 'zero-rated' supplies has two options. He can export without payment of integrated tax under Bond/ LUT and claim a refund of accumulated Input Tax Credit… Read More...
All You Want to Know About GST on an Under Construction House (5/13/2019) - If you are a real estate stakeholder and are confused regarding GST, then this list of FAQs by FinMin will help you. In case you bought an apartment from a real estate developer in June 2018 and paid almost 40 percent of the value by March 31, 2019, what should be the rate of GST applicable on the remaining portion of your flat value? You are a beneficiary of the PMAY-CLSS scheme and the carpet area of your house under… Read More...
Realty Firms Can Opt for The Old GST Rate Till May 20 (5/10/2019) - Source: Business Today The GST Council extended the deadline by 10 days till May 20, allowing realty firms to opt for the old GST rate. This would also include an input tax credit for ongoing projects or shift to new lower tax rates. The GST Council, headed by Finance Minister Arun Jaitley and comprising state counterparts, had earlier allowed real estate players to shift to 5% GST rate for residential units and 1% for affordable housing without the benefit of… Read More...
What is Form 16 and What is Its Role in ITR Filing? (5/9/2019) - Source: The Economic Times The Central Board of Direct Taxes (CBDT) issued a circular on May 6, 2019, in which it has asked employers or ‘deductors’ to download Part B of Form 16 from TDS Reconciliation Analysis and Correction Enabling System (TRACES) portal and issue the same to the ‘deductees’ or their employees. What do you mean by Form 16? Form 16 is a proof of tax deducted at source (TDS) that the employer deducts every month from the employee’s… Read More...
Are You Paying a Higher GST on Annual Maintenance Bills? (5/9/2019) - Source: Times of India Conflicting rulings from tax authorities of advance rulings have resulted in confusion in different states on the applicability of GST on annual maintenance contracts. The various Authorities of Advance Rulings (AARs) have pegged GST on annual maintenance contracts (AMCs) that companies offer to customers of various products and equipment at 12%, or 18%, or even 28%, industry experts said. The appellate authority for Advance Rulings in Rajasthan upheld AAR’s decision that taxability of services provided on… Read More...
AAR: Concessional Rate of 12% GST for ‘Affordable Housing Scheme’, Not Restricted to Developer (5/7/2019) - Source: The Economic Times [TS-294-AAR-2019-NT] Maharashtra AAR held a contractor (applicant) eligible for concessional rate of 12% [CGST+SGST] under ‘Affordable Housing’ project (AHP) as per Sr. No. 3(v)(da) of Notification 01/2018-Central Tax (Rate) dated January 25, 2018, covered under Heading 9954 as ‘Construction services’, for residential units of up to 60 sq. mtrs. and not for commercial units. It noted that the applicant proposed to enter into a housing project with Puranik Builders (Developer) for construction of a residential project… Read More...
What Common Errors Should be Avoided after GST Registration? (5/6/2019) - Since July 2017 GST has successfully covered a long distance in India. It has made starting a business in India so easy that anyone can start and run his/her business smoothly with the help of an Accountant (Bookkeeper). Due to this, the number of new businesses has increased rapidly. However, due to a shortage of adequate knowledge taxpayers become a defaulter under the GST Law. It has been witnessed that some common mistakes are still made by many taxpayers, which… Read More...
Tax Dept to Share ITR Data with GSTN to Check Tax Evasion by Businesses (5/1/2019) - Source: The Economic Times In order to check tax evasion, the Income Tax Department will be sharing ITR data of business persons with the Goods and Services Tax Network (GSTN) officer. The main objective behind this move is spotting income mismatches between their GST returns and Income Tax Return (ITR). It is important for the business persons to ensure that their income tax returns and GST returns correlate. Simply put, a business person whose income as per ITR reflects a… Read More...
Investors Exiting Startups Likely to Get Capital Gains Tax Relief (4/30/2019) - Source: The Economic Times With a view to attracting more funds into the sector, the government might exempt investors from tax on capital gains accrued when they exit a startup. The Department for Promotion of Industry and Internal Trade (DPIIT) is assessing two alternatives to deliver this incentive — (1) A blanket exemption (2) A conditional exemption based on funds redeployed. The latter would be on lines of the benefits offered to nascent firms in the UK. “We want to… Read More...
Govt. Might Introduce E-invoicing Under GST (4/29/2019) - Source: The Economic Times To make the GST regime more transparent, the Govt. is now looking at the possibility of introducing the concept of electronic invoicing. This would enable the taxpayers to issue invoices or bills directly via the GST Network and the data will be available to the authorities immediately. Since the invoices will be issued directly from GSTN, the information is not required to be updated separately. The GST Council has called up a meeting to discuss the… Read More...
More Flexibility on the use of ITC says GST Council (4/26/2019) - Source: Business Standard Goods and Services Tax (GST) Council has added flexibility into the way a company can utilize the available input tax credit. Any company would now be eligible to use the credit available against paid integrated GST (IGST) to set off tax liabilities of state GST (SGST) and central GST (CGST) in any proportion and in any order. Previously, the order of using the IGST credit was kept flexible — it was the company’s choice to set off… Read More...
HC Says Interest is Payable on Total Tax Liability, ITC included (4/25/2019) - Source: TaxGuru Megha Engineering & Infrastructures Ltd. vs. The Commissioner of Central Tax [TS-248-HC-2019(TELandAP)-NT] Telangana HC (Hyderabad) dismissed the assessee’s writ and held that interest u/s 50 of CGST Act, 2017 is payable on total tax liability. This also includes a portion which is liable to be set-off against ITC where the returns were filed belatedly. It rejected the assessee’s reliance upon recommendations of GST Council made during its 31st meeting upon the contention that interest is to be calculated only… Read More...
CBIC Prescribes Special Procedure for Payment & Return Filing under Composition Scheme (4/24/2019) - Source: Taxlok Govt. prescribed special procedure for furnishing return and payment of tax by persons registered under the GST composition scheme in terms of Section 10 of CGST Act, 2017 or Notification No. 02/2019 – Central Tax (Rate). A statement containing details of payment of self-assessed tax shall be submitted for every quarter in FORM GST CMP-08 till the 18th day of the month succeeding such quarter. Furthermore, the annual return in FORM GSTR-4 shall be furnished on or before… Read More...
NAA Upholds Profiteering Against ‘Snacks-Supplier’ for Charging GST Despite Foregoing ‘Brand-Name’ Rights (4/23/2019) - Source: Taxscan Director General Anti Profiteering vs. Dev Snacks [TS-246-NAA-2019-NT] National Anti-Profiteering Authority (NAA) upheld a case of profiteering u/s 171 of CGST Act, 2017 against supplier of snacks (i.e. namkeen, bhujia, mixture, etc.) for the period November 27, 2017 to December 31, 2017 while noting that GST was charged at 5% despite reduction in tax-rate to NIL vide Notification No. 34/2017-Central Tax (Rate) dated October 13, 2017. It noted that Respondent was charging GST at 12% in terms of… Read More...
Delhi HC issues a notice regarding Circular levying GST on Renewable Energy Certificate Scrips (4/22/2019) - Source: GST Sutra Delhi HC issued a notice to Revenue in writ challenging Circular No. 46/20/2018-GST levying 12% GST on Renewable Energy Certificate (REC) scrips. It noted the Petitioner's argument saying that REC scrips are 'securities', excluded from both goods and services while listing for matter in July. The matter was heard by Justice S. Ravindra Bhat and Justice Prateek Jalan. And, the petition was filed by Mr. Abhishek A Rastogi. Writ Petition has been filed by a Power Company… Read More...
List of Major Changes made in the ITR Forms (4/17/2019) - Source: livemint Some major changes in the Income Tax Returns (ITRs) were notified by the Govt. The taxpayer will now have to provide additional details such as days of residency in India, holdings in unlisted shares and details of the buyer(s) of property in case of capital gains earned by a seller on the sale of immovable property. Let’s go through the major changes made in ITR forms. ITR-1 Form ITR-1 form is applicable to resident individuals, except for the… Read More...
What Provisions Should You Follow for Smooth GST compliance? (4/17/2019) - Since the implementation of GST on 1st July 2017, frequent amendments have been going on in the GST law and provisions, which has kept the businesses, professionals, tax practitioners, and even the Government officials on their toes. It is essential for all of us to know the new terms of these changes and understand a few common provisions of GST to manage our businesses effectively. Here is the summary of some of the very crucial pointers which may be used… Read More...
Vidhi Centre report recommends legislative changes to strengthen GST (4/15/2019) - Source: Business Standard The launch of GST evoked an unprecedented range of emotions and eagerness about the legal and political schemes to transition to the GST regime. Given the paradigm shift that GST caused in the indirect tax framework, its implementation was expected to create turbulence. Nevertheless, there was a hope that it would provide a simpler, transparent and user-friendly tax regime. Vidhi Centre for Legal Policy (VCLP), in a series of reports, seeks to analyze how GST has managed… Read More...
GST most likely to undergo a change irrespective of the election result (4/15/2019) - Source: New Indian Express The controversial Goods and Services Tax (GST) is all set for a refit regardless of who comes to power in the forthcoming elections. Top finance ministry officials said that more of goods currently in the 28 percent luxury bracket would be brought down to lower tax slabs. The GST median rate now at 18 percent could eventually be reduced. “There will be a continuation of GST reforms regardless of who forms the government. The aim is… Read More...
What are The Major Changes in GST w.e.f 1st April 2019? (4/12/2019) - Source: TaxGuru With the beginning of the new Financial Year of 2019-20 CBIC (Central Board of Indirect-Taxes and Customs) has issued some important notifications to bring the GST recommendations into effect. These recommendations were made during the 32nd GST Council meeting, held on 10 January 2019. This main objective was to provide a sigh of relief to MSME sector like an increase in threshold limit for GST registration, concessional rate of tax for service providers which have been brought into… Read More...
E-Way Bill Reporting Mechanism to be Improved [Report] (4/11/2019) - Source: Outlook India Owing to the mismatches in e-way bill submissions, the Centre is scrutinizing GSTN data to see if it should consider withdrawing the facility of generating multiple e-way bills on a single invoice, an official source said on Monday. The Goods and Services Tax (GST) authorities are now sifting through GSTN data retrieved through return filings and e-way bills to match these with the summary reconciliation statements of estimated tax liability. Hence, the businesses will have to explain… Read More...
BJP Manifesto to continue with GST simplification ensuring stable tax regime (4/10/2019) - Source: Taxsutra The BJP economic policy aims at lowering the tax rate, improving compliance, and broadening the tax base. The improved compliance and increased tax base have resulted in a rise in the tax to GDP ratio. The same has reached 12%, which is the highest in the recent past (the ratio was 10.1% in 2013-14). BJP promises to continue with their policy in the same manner i.e. lowering of the tax rate, rewarding honest taxpayers, and improving compliance. GST… Read More...
Roll-out of new GST return filing format delayed (4/5/2019) - Source: The Hindu BusinessLine The roll-out of new GST return forms from April 1 has been delayed. The same would be made available once the software is ready. The GST Council had in July last year decided that the simplified GST return forms -- Sahaj and Sugam -- would be rolled out on a pilot basis from April 1, 2019, while mandatory filing across the country would begin from July. Under the new return filing format, taxpayers with no purchases, no… Read More...
Sun-cured tobacco leaves classifiable under HSN 2401 and taxable at 5% (4/4/2019) - Source: TaxGuru Kerala AAR held that sun-cured “Tobacco leaves” known as “Kannipukayila” only used for chewing is classifiable under HSN Code, 2401 liable to 5% GST (2.5% CGST + 2.5% SGST) vide Notification No. 01/2017-Central Tax(Rate). Further referring to Rule 46 of SGST Kerala Rules, it held that tax invoice issued by a registered person shall contain the particulars of the amount of tax charged in respect of taxable goods and services. The AAR clarified that tax shall be collected… Read More...
AAR classifies polypropylene mats under Chapter 46 is taxable at 5% (4/3/2019) - Source: TaxGuru Kerala AAR held that polypropylene mats (plastic mats, commonly known as ‘satranji’) manufactured by plaiting together polypropylene mono-filament strips and the like of plastics fall under Chapter 46 of Customs Tariff Act, 1975. Some important facts: The AAR elucidated the process of manufacture of the plastic mat (satranji) where polypropylene is converted into tube form by applying heat and air on an extruder machine which is then cut into a specific size and used on weaving machines. It… Read More...
No Consensus on ‘Why Consumer Goods Demand Increased After GST?’ (3/29/2019) - Source: BloombergQuint As the supply-chain emerged from the initial commotion caused by Goods and Services Tax, the number of consumer goods makers increased surprisingly. There is no consensus on ‘why did it happen so?’ Manufacturers of soaps to biscuits admit that the lower GST rates drove higher demand. But, distributors and retailers aren’t sure if that was the trigger and attribute it largely to a quick recovery after the twin disruptions of demonetization and GST. When distributors pared inventory ahead of… Read More...
Is GST Affecting India’s Clean Energy Transition? (3/19/2019) - Source: The Economic Times India is undergoing a clean energy transition. This transition must not only advance climate commitments but also development needs and economic priorities. However, as we tread this tightrope, the introduction of new macro-economic policies could add further complications. The emergence of Goods and Services Tax in July 2017, is one such example. GST removed tax exemptions offered previously to solar photovoltaic (PV) and added much uncertainty during the first year of its introduction. How has the… Read More...
Revolutionary Effects of GST in India: Pros V/s Cons (3/18/2019) - Source: The Economic Times There were certain basic objectives behind the introduction of GST. One was to substantially reduce (if not eliminate), the cascading of taxes by providing a seamless flow of Input Tax Credit in the entire supply chain. The second aim was to cut short the compliance costs by clubbing together seventeen indirect taxes of Center and States. These two targets have been achieved substantially, except only five Petroleum products and Alcohol for human consumption could not be… Read More...
How the GST rate reduction will impact property prices? (3/6/2019) - The 33rd Goods and Service Tax (GST) Council meeting was held on 24 February 2019, in which the council recommended rationalization of GST rates on real estate. The cut has been re-structured right in accordance with industry expectation. Once accepted and included in the official gazette, GST would be levied at an effective rate of 5% on the total value of non-affordable under-construction properties (property costing ₹ 45 lakh and above), which would be 7% lesser than the earlier effective rate of… Read More...
Highlights of 33rd GST Council Meet (2/22/2019) - Agenda: Real estate & Lottery issue The 33rd GST Council meeting was concluded on February 21, 2019 (Wednesday). However, Hon. Finance Minister termed the discussion as inconclusive and then the Hon. Chairman agreed to consider the views of state FMs in the next GST Council meet which has been proposed to be conducted on Sunday (24th Feb. 2019) in Delhi. In this GST council meet the Deadline for filing GSTR-3B has been announced to be extended by 2 days. Due to the… Read More...
6 Major changes in GST Portal to Help Small Businesses (2/18/2019) - Source: TaxGuru Some of the most significant updates have been made to the GST Portal in last week which contains various specific features. These advanced updates will bring great relief to taxpayers. The important updates made in the GST portal are as follows: 1. Option to choose a Bank while making Payment: Every time a particular bank option is selected while a taxpayer pays off his/her GST liabilities. But now, keeping in view at taxpayers’ ease it has been updated in… Read More...
What is GSTR-2A and how to download it with HostBooks GST Software? (2/11/2019) - Birth and implementation of Goods and Services Tax in India is known to be the biggest post-independence indirect tax reform. It has played a crucial role in the removal of different socio-economic evils like bribery, tax evasion and cascading effects from the country which were on a rise in the old tax regime. Different sorts of online GST Return forms have been introduced which makes it necessary to go for the GST software that is capable enough to meet all… Read More...
A Quick Guide on GST Audit Procedure, Assessment, Ruling & Recovery (2/5/2019) - Having been known as the most influential and the biggest tax reformation since independence, Goods and Services Tax has completely revolutionized the entire concept of tax and its other significant components too. Here in this blog, we shall go through all about the restructured headings pertaining to Audit Procedure, Assessment, Ruling and Recovery under GST. 1. GST Audit Procedure What is meant by an audit under GST? GST Audit is the thorough examination of taxpayer’s records to see if he complies… Read More...
Key Highlights of 32nd GST Council Meet (1/11/2019) - On 10th January 2019 (Thursday), under the chairmanship of Hon. Finance Minister Mr. Arun Jaitley, the 32nd GST Council Meet took place in New Delhi. Here are the Key Highlights of the 32nd GST Council Meet Increased Annual Turnover Limit for GST Registration Basic exemption limit for suppliers of goods shall be increased from ₹ 20 lakhs to ₹ 40 lakhs. However, the limit for suppliers of services shall remain ₹ 20 lakhs. While in special category states {i.e. North-Eastern… Read More...
A complete Guide on GST Practitioner Examination (1/11/2019) - After the implementation of GST in India, more than 1 crore enterprises have been registered under GST and are required to deal with various GST compliances. To make compliance easier for businesses, the Government has taken various commendable initiatives like introducing registered GST Practitioner Exams along with setting up of GST Facilitation Centers across the country. On 30th October 2018, the CBIC (Central Board of Indirect Taxes & Customs) issued the Notification No. 60/2018 – Central Tax, mentioning the provisions… Read More...
Highlights of the 31st GST Council Meet (12/22/2018) - Source: TaxGuru The 31st GST Council Meet concluded on December 22nd, 2018 at Vigyan Bhawan in New Delhi. It was chaired by Finance Minister, Sh. Arun Jaitley along with other finance ministers of all states. Here are some takeaways from the latest Council Meet. Jan-Dhan Account holders are completely exempted from Goods and Services Tax. Only 8 items (luxury and sin items) have now been left in the 28% slab. Business class Air tickets have been brought into the 12… Read More...
Judgments by Maharashtra Authority for Advance Rulings (AAR) under GST (12/21/2018) - Source: GST Sutra AAR: Rules in applicant’s favor, reimbursement of salary on behalf of a foreign entity, not liable to GST Maharashtra AAR held that the applicant engaged in recruitment of shipping personnel for Foreign Ship Owner (FSO) shall not be liable to pay GST on salary amount received and disbursed as such to the Crew. It further Referred to Rule 33 of CGST Rules and observed that Salary of Crew of FSO will be deposited in the account of… Read More...
The GST Council to Further Rationalize the Highest Tax Slab of 28% (12/17/2018) - Source: The Economic Times As per the announcement made by India’s Finance Minister Mr. Arun Jaitley in the Budget 2017, ‘the Indian Government is highly focused on absolute development of world-class gigantic infrastructure, affordable housing and roads’. Regular GST council meetings have now eradicated a number of issues and the tax slab of various goods have been now decreased. At present, only 35 goods, including cement, automobile parts, tires, automobile equipment, motor vehicles, yachts, aircraft, aerated drinks, betting and demerit items like… Read More...
Extension of GST Annual Return Due Date (12/8/2018) - Source: CBIC Although GST has successfully covered a long walk in India, yet a large number of taxpayers across the nation feel it be difficult. Lack of awareness regarding GST and low literacy ratio with respect to online services, internet issues in remote areas, etc. are some of the factors that have become a roadblock in GST. Many times, the taxpayers miss out on the deadline of filing the GST returns. Thus, keeping in view the ease of the taxpayers… Read More...
How to Avoid GST Return/Invoice Mismatches in 5 Easy Steps? (12/7/2018) - Reconciliation of GST Returns/Invoices is a recurring event and needs to be performed periodically to claim the maximum credit as well as to avoid mismatches on a larger scale. But as a fact, mismatch in GST Returns and/or invoices has always been one of the most tedious tasks in the GST regime. Most of the businesses usually talk about the problems faced in terms of this issue. Reconciliation under GST is all about matching the data filed by the supplier… Read More...
Extension of GST Return Due Dates (11/30/2018) - Source: CBIC The entire social and business life have got badly affected due to the catastrophic cyclone appeared recently in two Indian states i.e. Tamil Nadu and Andhra Pradesh. Thus, keeping in view the ease of taxpayers of both these states the government of India has extended the different due dates for various GST Returns. As per the announcement made by the Dept. of GST (Govt. of India) – The previous due date for GSTR-3B (for the month of September… Read More...
E-Way Bills will now be linked with FASTag and LDB (11/27/2018) - Source: Business Today With a strong view to making the E-way Bill mechanism more efficient and transparent, the Govt. of India is going to introduce new terms to E-Way Bills. This will check tax evasion by tracking the movement of goods and establishing direct linkage between what is declared and what is actually being moved. The Department of Goods and Services Tax (GST) is planning to integrate E –Way Bill with NHAI’s FASTag mechanism and DMICDC’s Logistics Data Bank (LDB)… Read More...
National Anti-Profiteering Authority (NAA) Rulings (11/22/2018) - Source: TaxGuru NAA: Profiteering not established where base price reduction exceeds additional ITC available National Anti-Profiteering Authority (NAA) dismissed application alleging a violation of provisions of Section 171 of CGST Act, 2017 by Respondent, observed that Respondent reduced the base prices of products (“Bathing bar” and “Instant Drink Powder 50Gms”) to maintain the same MRP (Pre-GST MRP) inspite of increase in tax rate. It noted that actual pre-GST tax rate on the products was 14.5% (Nil Central Excise Duty+ 14.5%… Read More...
Maharashtra Authority for Advance Rulings (AAR) under GST (11/20/2018) - Source: GST Sutra Maharashtra AAR: Education/Training provided through co-operative training centres/district co-operative boards, not exempt Maharashtra AAR held that activity of applicant, a state level apex training institute, conducting education and training programs through its 13 co-operative training centres and 33 district co-operative boards as per statutory requirement of Maharashtra Co-operative Societies Act, 1960 is covered within the scope of services, therefore liable to GST. It observed that the applicant is neither providing any services to the Central Govt., State… Read More...
Goods and Services Tax (GST) Judgments by Delhi HC, Allahabad HC & Kerala HC (11/16/2018) - Delhi HC: Directs hand-over of premises sealed for over a month, sealing cannot assume ‘indefinite’ life Delhi HC directed removal of seal where premises of assessee was sealed on behalf of Delhi Goods and Services Tax (DGST), u/s 67 of CGST Act, 2017 for non-possession of books and accounts sought. The hon’ble HC noted assessee’s plea that DGST lacks statutory power and authorization to indefinitely seal the premises and that authorization does not name the ‘assessee’ but only lists the… Read More...
Enhancements Proposed by the Govt. in the Generation of E-Way Bill w.e.f. 16.11.2018 (11/16/2018) - National Informatics Centre (NIC) proposed improvements in e-way bill generation, being released on 16.11.2018. The following improvements have been proposed: 1. Checking of Duplicate Generation of e-Way Bills Based on the Same Invoice Number The e-way bill system is enabled not to allow the consignor/supplier to generate duplicate e-way bills based on one document. Here, the system checks for duplicate e-way bills based on the consignor’s GSTIN, document type, and document number. Simply put, if the consignor has generated one… Read More...
Andhra Pradesh Authority for Advance Ruling (AAR) under Goods and Services Tax (11/15/2018) - Source: GST Sutra AAR: Denies input tax credit on the civil structure for plant & machinery installation Andhra Pradesh AAR denies GST input tax credit (ITC) to applicant engaged in the manufacturing of steel and production of power; This is in respect of the goods and services used for installation of plant and machinery and for protection of plant and machinery by creating shades; On account of photographic evidence AP AAR rejected applicant's contention to treat civil structures as structural… Read More...
CBIC Sets up Help Desks to Resolve GST Queries of the MSMEs (11/15/2018) - Source: Times of India The Central Board of Indirect Taxes and Customs (CBIC) will monitor the grievances of the MSMEs relating to GST on a daily basis. This is being done on account of the GST issues that the MSMEs are coming across. The CBIC is all set to resolve these issues that are being faced by small businesses in the new indirect tax regime. The government has initiated a major support and outreach programme for MSMEs to ensure growth… Read More...
Issues and Challenges Revolving Around GST Audit & Annual Return and Precautions for Compliances (10/29/2018) - GST Audit is mandatory for every registered person whose aggregate turnover in a financial year exceeds ₹ 2 Crores which should be computed for the company on PAN India basis and not individually for each State. GST Audit should be made either by a Chartered Accountant or a Cost Accountant and shall include a reconciliation between Audited Financial Statements and turnover declared in the annual return. However, the entire process for this reconciliation can be a time-consuming activity as there… Read More...
Maharashtra & Rajasthan Authority of Advance Ruling under GST (10/29/2018) - Maharashtra AAR: Electric Overload Travelling Grab Crane classifiable under HSN 84261100 taxable at 5% IGST Maharashtra AAR held that ‘Electric Overload Travelling Grab Crane (EOT Grab Crane)” to be supplied for use in the waste-to-energy project gets covered by Sl. No. 234 of Schedule I of Notification No. 1/ 2017 dated June 28, 2018 – Integrated Tax (Rate) as ‘Renewable energy devices and parts for the manufacture of waste to energy plants/ devices’, liable to 5% IGST. The AAR explained… Read More...
Latest Judgments by GST Authority for Advance Ruling (10/23/2018) - Source: GST Sutra Punjab AAR: Forward contract settled by differential rate payment considering prevailing market rate constitutes ‘securities’, not liable to GST • Punjab AAR held that forward contract in cotton sales and cotton purchases, being settled by applicant with another party to contract by way of payment of differential of forward rate and prevailing market rate on settlement date, falls within purview of ‘securities’ defined u/s 2(101) of CGST Act, 2017, therefore not eligible to GST; • However, where… Read More...
‘Lottery’ an Actionable Claim, Liable to GST, Upholds Levy of Differential Tax: Calcutta HC (10/23/2018) - Source: TaxGuru • HC held that lottery can be taxed under Central CGST Act as well as West Bengal (WB) GST Act, 2017 while rejecting assessee’s plea that lottery is neither ‘goods’ or ‘service’ under said Acts; • Relying upon SC ruling in Sunrise Associates wherein it was held that the distinction drawn in H. Anraj between the chance to win and right to participate in the draw was unwarranted, held that, “lottery is an ‘actionable claim’ and goods or… Read More...
GSTR-3B Filing Due Date Extended till October 25, 2018 (10/23/2018) - Source: The Economic Times The Finance Ministry on Sunday extended the deadline for filing summary sales return GSTR-3B for the month of September by five days i.e. till October 25. The due date extension has benefitted the businesses that wish to claim Input Tax Credit (ITC) for July 2017-March 2018 period. The Central Board of Indirect Taxes and Customs (CBIC), under the Finance Ministry said that trade and industry had expressed apprehension relating to October 20 due date, for claiming… Read More...
GSTR-4: Meaning, Eligibility, Due Date, Format, Process & Penalty (10/22/2018) - Under the broad and crystal clear circumference of GST regime, every taxpayer needs to execute his/her liability seriously and on time. Keeping in view one’s, ease various kinds of GSTR forms have been brought by the Govt. GSTR-4 is like other GSTR Forms, which is subjected to dealers registered under composition scheme of GST and they have to furnish this GSTR-4 electronically by 18th of the month succeeding quarter. This blog post contains abundant information regarding your queries for- What… Read More...
GSTR-4 Update: Composition Dealers not required to furnish ‘inward supply’ details in quarterly returns (10/18/2018) - Source: Pib Finance Ministry issued a clarification on the manner of filing the Quarterly Return by Composition Dealers in FORM GSTR-4; It explained that such taxpayers need not furnish the data in serial number 4A of Table 4 of FORM GSTR-4 i.e. Inward supplies received from a registered supplier (other than supplies attracting reverse charge); A clarification has been issued pursuant to doubts regarding the manner of filing such Quarterly Return in absence of auto-population of details of inward supplies (other than supplies… Read More...
How to Become a Registered GST Practitioner? (10/16/2018) - In accordance with the new GST rules, before one starts helping one’s clients, one mandatorily needs to register oneself as a GST Practitioner. In the present arena, the process of GST migration has been on its full swing. Report says, around 60 to 70 percent (in lakhs) businesses are going to be registered on the GST portal (www.gst.gov.in) before the window closes. There are a number of businesses which are still oblivious regarding the appropriate procedure required for filing GST Returns… Read More...
GST Authority for Advance Ruling (AAR) (10/16/2018) - Maharashtra AAR: Composite contract with Govt. Dept. for water supply from tube-well after excess iron removal, taxable at 12% Maharashtra AAR holds that turnkey contract entered with Public Health Engineering Dept. Govt. of Bihar for the supply of water from tube-well after removal of excess iron and lifting it to overhead tank, shall be taxable under Tariff Sub-Heading 9954 (Construction services). It observed that, in order to perform the contract entered with Public Health Engineering Dept., Bihar, the applicant has… Read More...
Annual Return GSTR-9: Meaning, Eligibility, Due Date, Filing Format & Penalty (10/15/2018) - The Goods and Services Tax regime came up with a number of returns to be filed by the taxpayers. One such important return that the taxpayer cannot miss out on is the Annual Return: GSTR-9. Majority of the traders or businesses registered under GST are supposed to file this return. Here in this blog post, we will discuss what GSTR-9 is all about along with the eligibility, due date, the format prescribed and the penalty that is to be paid… Read More...
GSTR-3B Filing Process, Eligibility, Due Date & Penalty (10/13/2018) - The implementation of GST created a hassle across the country. A lot of returns were introduced and needless to say the return filing process further added to the hassle. However, with GST Council Meets being held every month, the Govt. is on its way to make GST easy and convenient for the taxpayers. Speaking of the GST returns, GSTR-3B is considered to be one of the most important returns to be filed under the GST regime. In this blog post,… Read More...
Know All About GSTR-6 Return Filing, Format, Eligibility & Due Dates (10/13/2018) - With a prime and clear vision of ‘One Nation – One Tax – One Market’, Goods and Services Tax was introduced by the Government. Apart from its various benefits, it has been playing a major role too in removing cases of tax evasion, bribery and other forms of corruption from the country. Keeping in view the ease of different types of tax-payers, different kinds of GST Return Forms have been introduced as well. And presently, everything pertaining to Tax has… Read More...
Govt. Substitutes Rule 96(10) Pertaining to IGST Refund to Exporters w.e.f. October 23, 2017 (10/12/2018) - Source: CBIC Govt. on October 9, 2018 substituted Rule 96(10) w.e.f. October 23, 2017. It said rule pertains to refund of IGST to exporters receiving supplies from persons availing benefit under specified Notifications. The Govt. thus consequently amended CGST Rules, 2017. CBIC notified Central GST (Twelfth Amendment) Rules, 2018 to amend Rule 96(10) and Rule 89(4B) of CGST Rules, 2017. It also substituted Rule 96(10) to provide that persons claiming refund of IGST paid on exports of goods or services… Read More...
Constitution of NFRA (10/11/2018) - Source: TaxGuru MCA Notification dt. 1 Oct. 2018: Section 132(1) & (12) of Companies Act, 2013 to commence from 1 Oct. 2018 S.O. 5098(E).- In exercise of the powers conferred by sub-section (3) of Section 1 of the Companies Act, 2013 (18 of 2013), the Central Government hereby appoints the 1st October, 2018 as the date on which the provisions of sub-sections (1) and (12) of Section 132 of the said Act shall come into force. The Central Government has… Read More...
How HostBooks GST Software can help you become GST Compliant? (10/4/2018) - After the birth of GST, most of the businesses started looking for an appropriate, affordable, secure, and advanced GST Software. Below are some of the features of HostBooks GST Software that will help you know how it can help you become GST compliant in the true sense. 1. Cloud-based software with anytime anywhere access Being associated with Amazon Web Services (AWS), HostBooks GST Software is Cloud-based software that offers you the freedom of accessing your account anywhere and anytime. Moreover,… Read More...
Appellate Authority for Advance Ruling under GST (AAAR) (10/3/2018) - Source: GST Sutra 1. AAAR: Absent natural bundling, EPC contract for solar power plant involving PV module and other supplies, not a ‘composite supply' Based on the review of the case the Karnataka Appellate Authority for Advance Rulings agrees with findings of AAR that supply of Photovoltaic (PV) module is a transaction originated and in distinct nature by itself and not to be construed as naturally bundled with supply of remaining components and parts of ‘solar power plant’; Notes that… Read More...
Highlights of the 30th GST Council Meet (10/1/2018) - Source: Taxscan The 30th GST Council Meet concluded on September 28, 2018. It was chaired by Finance Minister, Sh. Arun Jaitley via video conferencing along with other state finance ministers. Here are some takeaways from the latest Council Meet. 1. Calamity Cess Keeping in view the grave flood situation in Kerala, the state proposed the imposition of cess on SGST for the purpose of rehabilitation and other flood related works. The GST Council decided to constitute a GoM i.e. a… Read More...
How to track GST Registration Application Status through ARN? (9/11/2018) - GST Registration has been made mandatory for the businesses having an aggregate annual turnover of ₹ 20 lacs. The threshold limit is ₹ 10 lacs in North-eastern states (Assam, Arunachal Pradesh, Mizoram, Nagaland, Tripura, Meghalaya, Sikkim & Manipur) and Hilly states (J&K, Himachal Pradesh & Uttarakhand). This blog post will help readers to track their GST Registration Application Status through ARN and to understand the various status of registration. After the successful submission of GST Registration Application online, the unique… Read More...
GST Council brings 15 key suggestions on simplifying GST for SME/MSME sector (9/7/2018) - The 29th GST Council meeting took place at Vigyan Bhawan in New Delhi on 4th August 2018 under the chairmanship of Mr. Piyush Goyal, the current Finance Minister of India. The exclusive focus of this GST Council meet was thoroughly adhered to simplify GST for SME and MSME sector. With a firm determination for making GST Law as Good and Simple Tax for SME/ MSME sector forming the heart of Indian Economy, the present Chairman of Indirect Tax Committee as… Read More...
CGST/IGST Amendment Bill 2018: Key Highlights (8/28/2018) - On 8th of August 2018, the Central Government of India introduced these four GST amendment bills in the Lok Sabha. CGST Amendment Bill – 2018 IGST Amendment Bill – 2018 UGST Amendment Bill – 2018, & GST (Compensation to States) Amendment Bill – 2018 We shall now review only the key highlights of CGST and IGST Amendment Bill 2018. A. Key Highlights of CGST Amendment Bill – 2018 (Section – 7) Scope of Supply - New sub-section is proposed to… Read More...
Highlights of the 29th GST Council Meet (8/7/2018) - Source: CAclubindia Under the chairmanship of the present Finance minister Mr. Piyush Goyal, the 29th GST (Goods and Services Tax) Council Meet was held on 4th August 2018 (Saturday) at Vigyan Bhawan in New Delhi. The discussion was primarily based on various significant issues pertinent to (Micro, Small and Medium Enterprises) MSME sector. Some of the important issues were like the threshold limit for registration, input tax credit claim and reverse charge mechanism existing in the MSME sector. Since the… Read More...
GST Council Introduces Simplified GST Returns (8/6/2018) - GST (Goods and Services Tax) Council in its 28th GST Council meeting held on July 21st, 2018 (Saturday) in New Delhi under the chairmanship of Mr. Piyush Goyal (the union minister for Railways, Coal, Finance and Corporate Affairs) approved an enhanced and more simplified Format for GST Returns while keeping in view at the ease of small taxpayers, the council also introduced an option for filing the GST Returns on Quarterly basis. The following points will help us clearly understand… Read More...
Few Judicial Decisions Taken by High Court Regarding the Form GST TRAN-1 (7/26/2018) - HC: Allows representation before Nodal Officer for revision of GST TRAN-1 Issue: Inability to revise Form TRAN-1 and unable to take ITC of VAT Decision: HC permitted the petitioner to prefer a representation to Nodal Officer with respect to inability to revise Form GST TRAN-1; As per the petitioner, there occurred a mistake while uploading the said Form and as such, it was unable to take ITC of VAT available on migration; Hence, it stated that upon representation by petitioner,… Read More...
What are Debit Notes & Credit Notes Under GST? (7/23/2018) - In the efforts to bring India into the category of advanced nations of the world, the advent of a new tax system had become mandatory. And definitely, the introduction and implementation of GST in place of the old Tax system (Specially Indirect Tax) will play a significant role for the overall development of India in coming few years. An excellent boost in Govt. revenue has been forecasted by the finance experts which will strengthen our country on the Economic front.… Read More...
Major Takeaways from the 28th GST Council Meet (New Delhi) (7/23/2018) - Source: GST Council The 28th GST Council Meeting was held on July 21st, 2018 in New Delhi. The meeting was chaired by Union Minister of Railways, Coal, Finance and Corporate Affairs, Mr. Piyush Goyal. The tax rates have been revised as a number of items have found a place in the lower tax slabs as against the highest tax slab of 28%. This GST meet was indeed a source of respite for the traders who were earlier finding it difficult… Read More...
What is Margin Scheme under GST ? (7/11/2018) - In India, under the slogan “One Nation One Tax” GST came into force on July 1st 2017, the biggest Tax reformation since independence. It is levied on the supply of goods and services across the country. And, the goods and services must fall under the ambit of supply as per section 7 of the CGST Act. However, in case of second hand goods, a concept known as the “Margin Scheme” is followed. Let’s now discuss what this scheme is all… Read More...
How to generate e-way bill through SMS? (7/5/2018) - The implementation of GST e-way bill has paved a way for a smooth system of transportation. Also, it has brought about a transparency which helps the Government to keep a track of the movement of goods across the country. In order to make things more convenient, Government has come up with the SMS mode for the e-way bill. The businesses, as well as the transporters, can now generate their e-way bills via SMS. Furthermore, the SMS mode also enables a… Read More...
What are the various types of Electronic Ledgers under GST? (6/12/2018) - Under the Goods and Services Tax, the taxpayers can maintain electronic ledgers on the GST portal. Whenever a taxpayer undertakes an activity related to these electronic ledgers, the concerned ledger then gets updated in real-time. Also, the details in the electronic ledgers get auto-populated from previous returns that were filed. The various types of electronic ledgers under GST are: Electronic Cash Ledger Any online payment by the taxpayer gets reflected in the electronic ledger. The payment can be made via… Read More...
How to claim the excess amount paid (Refund) under GST? (5/30/2018) - While filling the GST challan, it is possible that a person might pay some extra amount of GST by mistake. This amount then reflects in the Electronic Cash Ledger. However, this amount can be claimed on the GST portal through an application known as the refund application, “RFD-01”. This amount can be claimed as a refund within 2 years from the date of payment. The steps to claim the refund by filing RFD-01 are: The first step is to login… Read More...
What is Input Tax Credit (ITC)? (5/7/2018) - The Goods and Services Tax (GST) subsumed all the types of indirect taxes like VAT, Service Tax, Excise Duty, etc. that existed in the pre-GST regime. And, it has also eliminated the biggest drawback of the pre-GST regime i.e. the cascading effect. Earlier the taxpayers paid taxes on tax which rendered the taxation system ineffective. However, under GST, the taxpayers can claim the Input Tax Credit. What does Input Tax Credit mean? ITC is the credit that a taxpayer can… Read More...
How to file CMP-03 on GST portal? (5/3/2018) - After filing CMP-02, the taxpayer needs to file CMP-03 in order to declare the amount of stock held by him on the day of opting into the scheme. This has to be filed within 90 days from the day of filing CMP-02. The process of filing CMP-03 on the GST Portal is as follows: The first step is login to the GST Portal (www.gst.gov.in). Click on "Services", next click on "Registration", and then click on "Stock intimation for opting Composition… Read More...
What are the steps to file CMP-02 on GST portal? (5/3/2018) - The dealer who opts for the composition scheme has to make a declaration with the government by filing Form GST CMP-01 or Form GST CMP-02. CMP-01 is meant for the migrated taxpayer who wants to opt for composition scheme. The taxpayer has to inform the Government about his decision to opt for the scheme in the beginning of the financial year. And, if he opts for the same in the middle of a financial year, then the rules of the… Read More...
What is GST Composition Scheme? (5/3/2018) - The implementation of the Goods and Services Tax (GST) has posed a massive challenge for the Small and Medium Enterprises (SMEs). These enterprises need to cope up with endless compliances under the GST law. And, while dealing with the compliances, the SMEs lose sight of their core business processes. Hence, the Government came up with GST Composition Scheme that helped in easing out the burden of the SMEs. What is the Composition Scheme all about? Under the composition scheme, the… Read More...
What is TRAN-1 and what are the steps for filing GST TRAN-1? (4/25/2018) - What is TRAN-1? Transition Form or TRAN-1 is filed by those taxpayers who are eligible to claim the credit on the tax already paid in the pre-GST regime. The credit can be by the way of VAT/Service Tax/Excise Duty. In order to claim the complete amount as a credit, TRAN-1 is to be filed along with the particulars of stock carried forward. Who can file GST TRAN-1? All the persons registered under the Goods and Services Tax (GST) who may… Read More...
What is TRAN-2 in GST and what are the steps for filing the TRAN-2 form on GST Portal? (3/27/2018) - What is TRANS-2? Transition Form 2 or TRANS-2 is filed by those registered taxpayers who are eligible to avail the credit in Electronic Cash Ledger with respect to eligible duties and taxes earlier paid on the inputs under the pre-GST regime. If the taxpayer does not have the invoice or any other document as an evidence of the tax paid, then he needs to declare the same in TRANS-1 followed by the filing of GST TRANS-2. What are the steps… Read More...
A Complete Guide on GST e-Way Bill (3/17/2018) - What is an e-way bill? E-way bill or Electronic Way Bill has been rolled out by the Government on February 1, 2018, to facilitate smooth flow of goods within a state and between the states. The e-way bill is generated on the e-way bill portal when the value of goods and exceeds 50,000 INR. In the absence of an e-way bill in case of registered person where the value exceeds 50,000 INR, the movement of goods cannot take place. On… Read More...
How to resolve the issues arising while filing GST Returns? (2/28/2018) - Even though the Goods and Services Tax was introduced in July 2017, it’s been more than a year but the businesses are still coming across endless issues while filing their GST returns. However, the Government is taking the necessary steps to help the taxpayers overcome these issues and is devising solutions to make GST easy. Through this blog post we will discuss the both the problems and the solutions: General Issues faced in filing GST Returns Issues faced in filing… Read More...
A Complete Guide to GST Registration Online – Eligibility, Process, and Fees (2/27/2018) - If you are about to get started on Goods and Services Tax, then it goes without saying that registration is the first step that needs your attention. So, if you are still unclear about the GST registration process, then this article would walk you through the entire registration process, eligibility, and fees. Let’s proceed step by step. GST Registration: Meaning and Importance GST registration is the process of registering goods or service provider as a normal taxpayer if his turnover… Read More...
Resources for HB-GST (1/2/2018) - 1. The various types of Returns under Goods and Services Tax GSTR-1 GSTR-1 is a monthly return of sales or outward supplies. Who is supposed to file GSTR-1? Every business that is registered under Goods and Services Tax must file GSTR-1. By filing this return, every tax payer makes a declaration of all the sales transactions made by him in the given period. The businesses having an aggregate turnover less than 1.5 crore INR need to file a quarterly return… Read More...
JARGONS FOR GST (12/23/2017) - ARN No. : It is a unique number generated after one successfully registers on the GST common portal. B to B: It includes any sale or transaction that takes place between two registered persons. B to C: It includes any sale or transaction that takes place between one registered person and the consumer. Bills of Supply: A bill of supply is a non-formal document issued by a supplier of GST in case of exempted goods/services or by a composition dealer.… Read More...
GST return forms: What are the types of GST returns and their due dates? (6/10/2017) - Goods and Services Tax (GST) is a destination-based indirect tax that brought in simplicity in the taxation system and reduced the previous cascading tax effect. The primary objective behind the implementation of GST was to unify multiple indirect taxes into a single tax, introducing efficiency into the tax administration. It is a technology-driven tax meaning everything from registration, filing returns, and application for refund is to be done online from the GST portal. Every taxpayer must declare transaction details for… Read More...TDS Entry in Tally with GST [Payable and Receivable] 2023 Quick Guide (9/15/2023) - Passing TDS Journal Entry are among the most common yet slightly complex transactions to record in accounting software like Tally. This blog will discuss passing TDS receivable, payable and payment entry in Tally Prime and HostBooks Accounting software. Here are the Two major types of entries to pass while booking TDS. TDS Payment Entry Whenever you are making a payment after deducting TDS, here is the entry you need to… Read More...
A Detailed Guide on TDS Deduction and TDS Online Payment (Challan 281) (7/7/2023) - Tax Deducted at Source (TDS) is a crucial component of the Indian taxation system, aimed at collecting taxes at the source of income. Once you deduct the TDS it is important to deposit the TDS amount to the government on behalf of the taxpayer. Depositing the TDS could be complex, and a single error might cause extra trouble or even penalties. In this comprehensive guide, we will take you through… Read More...
5 Reasons TDS Software is Profitable for Your Business World (10/18/2022) - TDS software provides the most simple and user-friendly interface which is specially designed for filing the TDS/TCS returns online as per the norms & regulations of TRACES and CPC, India. With the aid of a cutting-edge tool, it is possible to accurately predict the amount, produce TDS returns, compute interest and penalties, as well as late filing costs, all in one place. What does TDS mean? Taxes are collected by… Read More...
TDS Return File: Know How to File TDS/TCS Return, the Due Dates of e-Filling TDS/TCS in the FY 2021-22, Late Filing Fee, and More (3/11/2021) - A long time ago taxes were levied on imported goods, later on, it was imposed on real property to raise the funds for the country and it’s been confined for a long time. But as demand increased with requirements, tax collections were extended to other assets like real estate, a variety of obligatory services, charges on goods, industries, market fees, and so on. Since then, with the advancement of civilization,… Read More...
A complete guide on Tax Deducted at Source (TDS) (3/13/2018) - What is TDS? Tax Deducted at Source (TDS) is a mechanism that has been introduced by the Income Tax Department. Under this, the responsible person is supposed to deduct a certain percentage of tax before making the payment to the receiver. The payment includes salary, commission, professional fees, interest, rent, etc. ABC Ltd. makes a payment of 50,000 INR by the way of fees to Mr. X. In this case,… Read More...
A step by step guide to filing e-TDS returns online (1/15/2018) - It’s a well-known fact that filing TDS returns have never been an easy task. The whole process is time-consuming and requires a great deal of cautiousness. But, technology by transcending all boundaries is making our lives better and easy-going. So, if you have been filing tax returns manually, it’s time to adopt the current practice i.e. e-TDS (Electronic Tax Deducted at Source)! With the implementation of e-TDS, the return filing… Read More...
Resources for HB-TDS (1/2/2018) - 1.What is TRACES? TDS Reconciliation Analysis and Correction Enabling System helps the deductors and the deductees by efficient and effective administration of the taxation system. It aims at improving the end-user satisfaction by providing timely and appropriate web services. 2. How should a deductor register and login on TRACES? http://contents.tdscpc.gov.in/en/deductor-registration-login-etutorial.html 3. How to go about in case of Online Correction? A .Online Correction Resolution for Overbooked Challan http://contents.tdscpc.gov.in/en/OC-Resolution-for-OverbookedChallan.html B. Add… Read More... JARGONS FOR TDS (12/23/2017) - Book Entry: This is meant for those maintaining Govt. Accounts in Govt. Departments where no physical movement of cash or cheque is involved. In this case, the voucher number needs to be furnished. BSR Code: Basic Statistical Return (BSR) is a 7 digit code that is allotted by RBI to the banks. The first 3 digits represent the bank and the next 4 digits represent the branch of the bank. It is… Read More...
Tally Prime VS. Busy VS. HostBooks Accounting Software Comparison (3/20/2023) - Choosing the right accounting software has always been a challenge for two obvious reasons - the cost of wrong selection is massive and the are too many options out there. There is often a clash between two main categories of accounting solutions: legacy software and the latest accounting software. Among legacy accounting software, there are two major competitors in the market Tally and Busy. Both has been the pioneer of accounting solution in India. On the other side, HostBooks has… Read More...
Role of Efficient Inventory Management In the HealthCare Industry (3/10/2023) - Role of Efficient Inventory Management In the HealthCare Industry Read More...
Importance of Accounting Software for Businesses (1/18/2023) - Accounting software is a vital tool for businesses of all sizes. It helps companies keep track of their financial transactions, manage their cash flow, and make informed decisions about their finances. In this blog post, we will discuss the importance of accounting software for businesses and how it can benefit your company. First and foremost, accounting software helps businesses keep accurate and up-to-date financial records. This is crucial for compliance with tax laws and regulations, as well as for providing… Read More...
Error Free Reconciliation with AI-based Accounting Software System (9/3/2022) - Bank Reconciliation is an important process of matching bank statements with the transactions that are recorded in the accounting software. The matching of the bank transactions versus entries in the daily journal entries is done automatically by replacing manual work, this is called AI Based Bank Reconciliation. The best Accounting Software should be the one that helps you to provide options to create trial balances, easy journal entries, create ledger accounts, and reconcile all your bank transactions directly with the… Read More...
How Businesses Are Leveraging Cloud Services During Pandemic? (4/30/2021) - Well said by a great man, “the ultimate measure of a business is not where it stands at times of comfort and convenience, but where it stands in moments of challenges and controversies.” The sayings of "dog eat dog," "businesses are war," and "survival of the fittest '' have become failed because now we are all in the same boat together. We have lots of things to say about the pandemic time but one thing is for sure, it puts remarkable… Read More...
New Update – Audit Trial Is Mandatory In Accounting Software Of Companies! Are You Ready? (4/9/2021) - Are you using accounting software to manage your company’s books? If yes, be attentive! A new amendment comes from the Ministry Of Corporate Affairs. They issued a notification on 24th March, 2021 under the Companies (Accounts) Amendment Rules. A new proviso has been added in Rule 3 Sub-rule (1).. According to this provision, there is compulsion of three changes in the features of accounting software, which are: Edit Log of each transaction Log of date when changes were made Audit… Read More...
A Quintessential Guide on Different Types of Accounts in Accounting (3/9/2021) - Probably you have heard about credits and debits. Right? Maybe you also know that they increase or decrease. But, do you know the accounts which they affect and how much they can affect? If your answer is no, you are at the right place. In this blog, we will explain to you different types of accounts with example. Also, we will explain to you how credits and debits affect those accounts in detail. In accounting, an account plays a vital… Read More...
How Cloud Accounting is Helping Small Businesses Grow (8/11/2020) - The “cloud” is like a magical place where data is stored. However, ever since its inception, many businesses have gravitated toward it. Cloud computing has brought a revolutionary surge of recent technological advances that had looked like an overseas dream to several. The shift to cloud computing, a rather crucial step, is rapidly bringing about change within the business world. It has galore of features to boast about, including reduced IT costs, and data access on the go. When it… Read More...
Strategies to Keep Your Business Going During the Pandemic (8/5/2020) - The COVID-19 pandemic is rapidly spreading, with new updates flying in every minute. As the situation evolves, many small businesses are uncertain as to what steps to take to decrease risks, protect employees, and support clients. By mid-March, according to a BDC survey of over 600 Canadian businessmen, 73 percent of businesses already felt the detrimental impact of the crisis. The impact on startups or small businesses can, unfortunately, be much more brutal, as they have scarcer cash reserves and… Read More...
What Can Small Businesses Learn From the Coronavirus Crisis? (7/24/2020) - There has been a fundamental change in the way we work and perform our daily business operations after the coronavirus outbreak. Many small businesses had a severe impact, and their business setting is going to change forever. Also, there's uncertainty about the situation once the threat of coronavirus disappears. There are always lessons to learn in the moment of crisis; it's our choice whether we pay attention or not. We're in this together. Many people are made redundant as a… Read More...
Top Technology Trends Emerging in the Post-COVID-19 World (6/20/2020) - COVID-19 has shown the value of digital preparation, which enables businesses and the lives of individuals to continue as normal during the pandemic too. The government has put lockdowns in place to curb the spread of the deadly virus. For many businesses, work from home is a new reality, as they struggle to operate during these uncertain times. Schools and colleges are conducting online classes to complete their syllabus; social distance is the new norm in grocery stores and e-commerce… Read More...
COVID-19 triggering the adoption of technology in India (5/26/2020) - The COVID-19 pandemic has catalysed the development of many sectors and innovations in India in an unforeseen manner. Encumbered by a prolonged shutdown, people are searching for new approaches to daily activities, whether food distribution, medical appointments, or education. Brands are also seeking ways to reach out to customers who are limited to their homes. The supermarket chain like Big Bazaar and others have partnered with bike aggregator and Scootsy food delivery service to supply essential products. Meanwhile, some businesses… Read More...
How a small business can choose the best accounting software? (4/28/2020) - Nowadays, accounting is no longer just a paper-based process and has evolved into a digital process. Businesses of all sizes are benefiting from various small business accounting software solutions available in the market. Be it tracking revenue, managing inventory, or preparing financial reports, online accounting platforms allow businesses to seamlessly manage their accounting processes. Apart from reducing the chances of human errors that usually occur when you make calculations on paper, it enables you to gain useful insights into your… Read More...
How Can Cloud Accounting Help Your Business? (5/23/2018) - With the advent of cloud computing, the current face of technology has been completely transformed. The cloud technology has facilitated the ease of doing business that has helped the organizations succeed by leaps and bounds. Furthermore, cloud computing enables you to work smarter. The industries are now switching over to the cloud platform. Reason being it’s safer, more secure, and most importantly it is convenient. And, Accounting is one of those industries that is rapidly keeping pace with the cloud… Read More...
Technical Jargons for Accounting (3/19/2018) - Accounts Receivable The amount of money that the customer is liable to pay after the delivery of goods and services. Accounting It is the process of systematic recording, reporting, and analysis of financial statements of a business. Accounts Payable The amount of money that the company owes to its creditors or the suppliers in lieu of the purchase of goods and services. Accrual Basis Accounting This is a widely accepted form of accounting. It records the transactions when income is… Read More...
Technical Jargons for Payroll (5/15/2018) - 1. Allowance The fixed amount paid to all the employees is known as allowance. Allowance is paid in addition to the basic salary to cover up expenses like travelling to the workplace, renting a house, or eating food. These allowances are generally included in CTC of the employees. Allowances can be categorized into: Non-taxable allowances (Allowance paid by UNO, sumptuary allowances, etc.) Partly taxable allowances (House rent allowance, medical allowance, etc.) Taxable allowances (Overtime allowance, dearness allowance, etc.) 2. Basic Salary… Read More...
What is Payroll? Meaning & Components (3/21/2018) - Payroll is an important tool that manages the details like the total amount of money that is paid to the employees. Simply put, it keeps a record of the employees’ salaries, wages, bonuses and also the withheld taxes. Hence, payroll plays a vital role in the smooth functioning of an organization. The primary objective of payroll is to ensure that all employees are paid accurately and on time after taking into account the correct withholdings and deductions. Also, the withholdings… Read More...
File Your ITR Before the Deadline, Keep These 4 Points in Mind to Make Your Filing Easy (7/26/2022) - The last date to file Income Tax Return (ITR) is getting closer, and if you haven’t filed your ITR yet, you should not wait for the last-minute rush. And if you are thinking that the last date will be extended, then you might get disappointed this time as the government has clearly said that this time the date will not be extended. The deadline for filing ITR for taxpayers (those not required to get their accounts audited) is 31 July… Read More...
New Income Tax Rules Effective in Financial Year 2022-23 That You Must Know About (6/23/2022) - With the beginning of the new financial year, many income tax rules related to taxation, deduction, and investment have been changed. Some old rules have been changed and some new rules have been added. These updated tax rules are going to have a direct impact on taxpayers’ pockets. So, if you are one of the taxpaying individuals, you need to know about updated tax rules effective from 1st April 2022. According to the Central Board of Direct Taxes, the new… Read More...
All about the New Form to File an Updated Income Tax Return (ITR-U) Issued By Income Tax Department (6/21/2022) - Income Tax Department has issued a new form to file an updated income tax return (ITR) for the financial years 2019-20 and 2020-21. The taxpayers can now file their updated tax return with the reasons for refiling it and other details like the total taxable amount. They have to furnish the reason for updating their income and not filing their tax return before with correct income details. The income tax department has confirmed that new released ITR form can be… Read More...
Get to Know the Tax Rules If You Are Planning To Invest in FDs (1/10/2022) - Nowadays, everyone makes investments in one form or another to secure their future. Most people find banks the safest way to keep money, many take risks in the stock market. But as the Covid-19 situation is going on, there is a high risk in stock market investment, banks are also going down in the last few years. But irrespective of the scenario, bank deposits are the reliable choice of investment as it is considered the safest even today. So, if… Read More...
10 Perfect Tax Saving Ideas that Salaried Individuals Must Know Before Filing ITR (1/3/2022) - Saving tax is always a challenging task. Every taxpayer thinks about it and considers the best options to save tax before or at the time of filing ITR. But it is more important to apply the tax-saving ideas before filing the income tax return or at the beginning of the financial year. Perfect planning could save a huge part of your tax. Let’s check out the perfect 10 ways that fall under 80C by which salaried individuals can save tax… Read More...
Form 15G and Form 15H to Avoid TDS on Income Tax (5/18/2021) - Tax time is not good for many, especially when it is a large sum one has to pay. At that moment, one thing that pops up in one’s mind is the ways of saving on tax. Though there are various ways of saving on tax, bank FDs is one of the tax-saving instruments you can file a declaration in form 15G/15H to the deductor for non-deduction of tax on interest. Basically, that means if you don’t come under the income… Read More...
All You Need to Know About Tax Saving Fixed Deposits (5/17/2021) - Tax-saving fixed deposits are one of the safest tax-saving instruments where you can invest and save a significant amount of tax. Under section 80C of the Income Tax Act, investors can get a tax deductionof up to Rs 1.5 lakh by investing in various tax-saving fixed deposit schemes. The amount that is invested in FDs in a financial year is deducted from your total taxable income. Therefore, investment in tax-saving FD accounts doesn’t only help you save on tax, but… Read More...
Penalty You Have to Pay For Missing/Late ITR Filing for FY 2020-21 (AY 2021-22) (5/15/2021) - Paying tax on time is a legal obligation for eligible citizens of a country. If the taxpayers fail to pay tax on time, there is the provision of penalties or imprisonment. The purpose of making people comply with the rules of taxation is for their own benefits, i.e. government uses tax revenues to build various public facilities like roads, bridges, water pipes, and a whole lot more. Indeed, tax revenues work as a social bridge between the citizens and government,… Read More...
Understand the Different Component of Salary That Can Be Used to Reduce Your Tax Burden While Filing ITR (5/6/2021) - There are various components available in your salary and summing up all, you get net salary after all deductions. If you are a salaried individual coming under income tax slab, it’s good to understand the different components of salary as each component has its own significance that can be used to reduce your tax burden. So, let’s know about them in brief. Salary to partners is also considered as income from salary under income tax act. House Rent Allowance If… Read More...
Going to File ITR for the First Time? You Must Know What Form 16 Is and Its Benefits (5/1/2021) - Every individual who made an income which exceeds the basic exemption limit (i.e. Rs. 2, 50,000 for an Individual having age less than 60 years and so on..) has to report about their income and tax savings to the government by filing ITR (income tax return) after the end of each FY. In short, an ITR is filed by a taxpayer to furnish the complete information about their income and the tax paid by him or deducted on his behalf… Read More...
New Income Tax Changes in Budget 2021 – Every Taxpayer Must Know (3/17/2021) - The new financial year 2021-22 is starting from April 1, 2021. It's that time when your investment comes again to the forefront. The investment receipts are all out. Your inbox is full of emails pushing you to claim your tax-saving investments and most of us are once again struggling to check if our investments are plentiful or not. If we particularly focus on the income tax, Honourable Finance Minister Nirmala Sitharaman added some tweaks in income tax law in the… Read More...
Income Tax Saving Tips: Key Deductions & Exemptions That a Taxpayer Can Claim and Save Taxes (3/8/2021) - Paying income tax is a civil duty, but saving taxes within the laws is Smart Financial Management. Yeah! You do agree with saving some bucks from your total taxable income with the legitimate ways. And if you are thinking that it is like wheels within wheels that make you feel like a beached whale, you might want to reconsider your perception if you are reading this article. Indeed, it is like choosing the stuff in a shopping mall that has… Read More...
When Does Another’s Income Become Your Tax Liability? (5/17/2019) - According to the Income Tax laws of India, if the taxable income exceeds the basic exemption limit, every taxable person is liable to pay taxes on his/ her income. However, in certain circumstances, a taxpayer may have to bear the tax burden on the income of another person as well. The provisions of Clubbing in the Indian Income-tax Law have been included to report such income as the taxpayer’s income. Let us know it through a few examples where the income of… Read More...
Supreme Court Settles the Provident Fund Dispute (3/7/2019) - Sharing with you all an analysis and key takeaways of a landmark ruling by the Apex Court in the case of The Regional Provident Fund Commissioner & Others V. VIVEKANANDA VIDYAMANDIR & OTHERS dated 28th February 2019. By virtue of this ruling “Contribution towards Employees Provident Fund (‘EPF’) is required to be computed on the amount of Special Allowance or any other allowance as well unless it satisfies certain specified test” as discussed below: Brief Background Section 6 of ‘THE EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952’ (hereinafter referred… Read More...
Income Tax Appellate Tribunal Judgments (11/20/2018) - Mumbai ITAT: Preference shares conversion into equity, not 'transfer'; Deletes LTCG addition Mumbai ITAT rules that conversion of cumulative and compulsory convertible preference shares (CCPS) into equity shares does not amount to ‘transfer’ u/s. 2(47), deletes long-term capital gains (LTCG) addition. During relevant AY 2012-13, upon conversion of CCPS into equity shares, AO had assessed the difference in the market value of equity shares and the cost of CCPS as LTCG on account of the transfer of shares by way… Read More...
How to Check Income Tax Return (ITR) Status (10/5/2018) - Today, it has become very easy to file Income Tax Return online. However, until acceptance and confirmation is ensured, every taxpayer should check the status of his income tax return regularly. And, if the status appears other than ‘ITR processed’, the taxpayer can furnish a suitable reply instant to the income tax department in respect to the status pending in the account so as to avoid any complications in future. Being an honest taxpayer is good but your consciousness is… Read More...
Defective Return Notice U/s 139(9): Reasons and Rectification (8/23/2018) - It is very obvious to make a mistake or two while doing something that is new or is not done on regular basis– the best example is the annual filing of income tax returns. What meant by Defective Return Notice U/s 139(9)? Sometimes when we file our Income Tax Returns, we may miss to furnish certain information, while sometimes there could be an error. Nonetheless, in such circumstances, a Defective Return Notice is issued in the name of the tax… Read More...
A Complete Guide on How to File Income Tax Return Online (8/3/2018) - Before knowing the details regarding how to file Income Tax Return Online, going through the Income Tax basics will help us to understand the process more clearly. Do You Know that- Taxes in India have been categorized as Direct Taxes and Indirect Taxes. Direct tax is a tax you pay against your income directly to the government while an Indirect tax is a tax that somebody else collects on your behalf and pays to the government, e.g. restaurants, theatres and… Read More...
Avoid these Common Mistakes while Filing Income Tax Returns (7/23/2018) - Paying the right tax in the right way at the right moment is the sign of a responsible citizen and this boosts the growth of the country too. If one seeks to file one’s Income Tax Returns perfectly, containing no mistakes then going through this blog would be a wise decision. Do keep in mind the following points that cause common mistakes while filing Income Tax Returns: 1.) Getting the Incorrect Form- It is of great importance to get the… Read More...e-Invoice Limit Reduced to Rs. 5 Crores w.e.f. 01 Aug 2023 (5/31/2023) - e-Invoicing under GST is getting deeper and deeper into the Indian business landscape as Government is expanding its scope. Recently CBIC (Central Board of Indirect Taxes & Customs) Reduced e-Invoice Limit to Rs.5 Crores w.e.f. 01 Aug 2023. All businesses with a turnover exceeding 5 crores are mandated to generate e-invoices for all B2B transactions. e-invoicing is a slightly complex procedure that requires integration with GST portal for bill generation. Let’s understand in detail the e-invoicing limit under GST rules… Read More...
E-Invoicing for Businesses with Aggregate Turnover Exceeding ₹10 Crore Will Be Mandatory from October 1 (8/4/2022) - The finance ministry indicated a month ago and now it’s been officially announced that E-Invoicing will be mandatory for businesses with aggregate turnover exceeding ₹10 crores from October 1, 2022. At present, e-invoice is mandatory for businesses with an annual turnover exceeding ₹20 crores. After the recommendation of the GST Council to minimize the e-invoicing limit, Finance Ministry has issued a detailed notification of reducing the e-invoice threshold to 10 crores. According to the report published in The Hindu BusinessLine,… Read More...
How E-Invoicing Implemented and Made Mandatory for the Businesses Having Turnover More Than 50 Crores (4/30/2021) - The Central Government has mandated the generation of e-invoice for the transactions in business having turnover more than 50 crores, from April 1, 2021. Before that, it was mandatory for businesses having turnover of more than 500 crores and 100 crores to generate e-invoices in B2B transactions under the Goods and Services Tax (GST) Act. The Government has made this move to curb GST tax evasion. In May 2019, the Central Government set up the first committee to discuss the… Read More...
E-Invoicing Mandatory From 1 April, 2021 (Turnover Above 50 Crore) Are You Ready? (4/9/2021) - Having turnover more than 50 Crores? Get ready to generate E-Invoice for your business transactions! A new update comes in E-Invoice generation limit. If your turnover is exceeding 50 crore, be careful! Now you are required to generate e-invoice else you may face many troubles. Central Board of Indirect Taxes and Customs (CBIC) issued a new notification on 8th March, 2021 in which the GST E-Invoicing threshold value is reduced to 50 Crores. This will come into effect from April… Read More...
Understand The Basic Concepts Of E-Invoices In Detail (3/17/2021) - Introduction The Central Board of Indirect Taxes and Customs i.e. CBIC formally notified the system of e-Invoicing under GST vide Notification No. 68/2019 – Central Tax, which inserted sub-rules (4), (5) and (6) under rule 48 of the CGST Rules, 2017 for the implementation of e-Invoicing. E-invoice, as evident by name, stands for an electronic invoice. It is a standardised format of the invoice which is prescribed for the suppliers who are registered under the Goods and Services Tax laws.… Read More...
A Complete Guide On E-Invoicing System in GST (3/15/2021) - What is E-Invoice? As per exiting law, every supplier of Goods or services is required to issue taxable invoice to the recipient/buyer manually or through ERP system. Under E-Invoice, this system of invoicing has been digitalized and routed through the centralized government portal for notified class of registered persons. That does not mean that invoice needs to be generated through government portal. In fact, invoice will be generated through the existing ERP system used by the taxpayer, with the only… Read More...
Know All about E-Invoice Generation System, Process with Applicability (1/20/2021) - A new GST e-invoice scheme was launched by the government in which companies with a revenue of Rs 500 crore and above will produce all invoices as of 1 October 2020 on a single government portal. The turnover threshold for companies had earlier been set at Rs 100 crore. For now, e-invoicing has been launched on a voluntary basis beginning in January 2020, but it will become mandatory from April 2020 and if you want to integrate e-invoicing into your… Read More...
GST e-invoicing must for medium-to-large businesses from April (11/29/2019) - Starting from April 1 next year, electronic invoicing (e-invoicing) will be mandatory for all businesses with a turnover of ₹100 Crore or more. The new system of generating e-invoices in a standard format will make it easier for the tax authorities to access details related to business-to-business transactions, curb tax evasion, and make compliance simpler. The e-invoicing system will be implemented in a phased manner, beginning with businesses having a turnover of ₹500 Crore or more who would take up… Read More...
Everything you need to know about E-invoicing (11/11/2019) - Source: Economic Times Starting from January 2020, the Goods and Services Tax (GST) Council has proposed implementing electronic invoicing (e-invoicing) on a voluntary basis. To date, there are no standards set for e-invoicing in India. In its 37th Council meeting held in September, the GST Council, after discussing with the relevant trade and industry bodies and the Institute of Chartered Accountants of India (ICAI), approved the standard for e-invoicing. Looking at the daily volume of business transactions, as well as… Read More...
What is the Process of Generating e-Invoice Under GST? (10/18/2019) - Source: Economic Times The GST Council approved the implementation of electronic invoicing or E-invoicing for business to business (B2B) transactions from January 1, 2020. After being implemented, it might curb tax evasion by pre-populating GST returns with the e-invoice details. The filing of GST returns will also become simpler with easy reconciliation. Recently, a concept note was made available on the GST Network (GSTN) website explaining what e-invoice is and how it operates. Much to the relief of the taxpayers,… Read More...
E-way bill generation maintains momentum in August | evidence of the growing economy (12/22/2021) - E-way bill generation for goods and shipments across the states is speeding up again after a decline amid the Covid-19 pandemic. According to the report released by GSTN, the rate of e-way bill generation in August remained stable for the first 15 days as compared to the previous month. As per the report, close to 2 million e-way bills have been generated a day on an average in the month of July. In June, the daily average of e-way bill… Read More...
Frequently Asked Questions on Blocking and Unblocking of e-Way Bill Generation (4/28/2021) - Q 1: How does blocking take place in e-Way bill system? A: As per the rule, if a taxpayer unable to file GSTR-3B for 2 or more consecutive months/quarters on the GST portal, the same is reflected on the e-Way bill system and as a result blocks the GSTIN. Now the GSTN of blocked taxpayers cannot be used for generating e-way bills either as Consignor or Consignee. This clearly indicates that taxpayers will not be able to receive goods if… Read More...
Eway Bill Rules, Generation and Compliance: A Comprehensive Detail (9/15/2020) - The concept of e-way bill under GST has been introduced by the Govt. after abolishing the Border Commercial Tax Post to avoid tax evasion in India. Get an in-depth view of the e-way bill system through this article. 1. What is the e-way bill under GST? E-way bill (Electronic-way bill) is a document that has been introduced under the GST regime to be generated before transporting or shipping goods worth over INR 50,000 within state or interstate. The physical copy of… Read More...
What are The 4 Major Upcoming Changes in E-Way Bill System? (3/28/2019) - Still worried about the eWay Bill roadblocks hampering your business? You can now heave a sigh of relief! The Govt. has come up with some major changes in the e-way bill system to make it simpler. These arrangements will help businesses and transporters overcome the eWay Bill issues. Here's a List of the Upcoming eWay Bill Changes: 1. Auto-calculation of Distance based on Pin Code The e way bill system will calculate the distance between the source and destination. This… Read More...
Latest Enhancements in E-Way Bill Form (10/4/2018) - Display of only relevant document types in the “Document Type” dropdown list based on the selected Transaction “Supply Type” and “Sub Type” by the taxpayers. Auto-population of the state name based on the pin code entered in consignor and consignee addresses. Standard rates for the tax are provided in the drop-down list for selection, based on the type (intra-state/inter-state) of transactions. Additional fields for “CESS Non-Advol Amount” & “Other Value” have been introduced to enter CESS Non-Advol amount and any… Read More...
A Quick Guide on E Way Bill Registration Procedure Under GST (9/24/2018) - Under GST, E Way Bill has become mandatory for the transportation of goods with a value of more than ₹ 50,000. On the other hand, it becomes helpful for the purpose of tracking the exact location of transport and goods across India. It is compulsory to get registered on the E Way Bill portal first to generate the GST E-Way Bill. As a quick guide on E-Way Bill Registration procedure under GST, this blog post will be quite helpful. Requisites… Read More...
How Neo Banks is becoming a sensation/witnessing a boom during covid-19 in India (12/23/2021) - Neo Banking is a disruptive innovation in the banking sector. Thanks to advanced information and communications technology which gives birth to a completely digital bank that operates digitally without any physical presence. Now, people no longer need to visit their nearest bank branch and spend hours in the queue in order to transact their banking needs. Instead, they can just turn on their computers or smartphones, log on to their online banking accounts, and manage and control everything they need… Read More...
Why Should You Count on Neo Banking for Businesses and Individual Purposes? (4/28/2021) - Technology is growing fast, so is everything including individuals’ expectations in parallel with simplifications in business processes and financial sectors. With this pace of technology, we can’t just stick in our present, indeed, a foreseeable future is what our interest should lie in. From that perspective, Neo Banks turned out to be such a boon of digital technology that aren’t only befitting today’s banking requirements but also highly adaptable to our futuristic financial goals. Neo Bank is 100% digital, which… Read More...
Neo Banking – A Complete Digital Shift in the New Era of Banking Services (3/22/2021) - Gone are the days when people needed to visit the banks and wait in a long queue even to know their financial transactions. In the present day, the banking sectors are smarter, responsive, and tailored. Needless to say, digital transformation is one of the factors that changed the whole scenario. In this regard, Neo banking is a fine example of digital transformation that is introducing next-generation banking services using cutting-edge technologies. Literally, Neo Banking is a complete digital shift in… Read More...
Role of POS in Transforming Businesses (11/23/2022) - The POS system has developed over time and is now widely utilized in small shops. The development of POS software has given businesses more flexibility, control, and intelligence than ever before. Businesses now use cloud-based POS systems instead of conventional cash registers and stationary credit card readers. This technological change gives organizations new functionality and enables them to centralize all reports and transactions. These technology-enabled experiences are becoming increasingly popular among retailers, restaurants, and hospitality businesses. The effectiveness of POS… Read More...
POS SOFTWARE – Multiple ways of Helping The Retail Sector (9/19/2022) - The retail sector consists of every business entity that directly sells to customers, ranging from departmental stores to convenience stores, clothing stores to pharmacy stores. Operating a retail store through POS Software goes beyond billing the products . With cutthroat competition, retailers now focus more on customer satisfaction and retention. Streamlining of daily operations cannot be achieved manually and need some automated help through a POS System that maximizes efficiency in Payment Process, Order management, Multi-Store management, etc. Hence, both… Read More...- All
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- CHAPTER I - Preliminary
- CHAPTER II - Basis of charge
- CHAPTER III - Incomes which do not form part of total income
- CHAPTER IV - Computation of total income
- CHAPTER IX - Double Taxation Relief
- CHAPTER V - Income of other persons included in assessee’s total income
- CHAPTER VI - Aggregation of income and set off or carry forward of loss
- CHAPTER VIA - Deductions to be made in computing total income
- CHAPTER VII - Incomes forming part of total income on which no income-tax is payable
- CHAPTER VIII - Rebates and reliefs
- CHAPTER X - Special provisions relating to avoidance of tax
- CHAPTER XA - GENERAL ANTI-AVOIDANCE RULE
- CHAPTER XI - Additional income-tax on undistributed profits
- CHAPTER XII - Determination of tax in certain special cases
- CHAPTER XIIA - Special provisions relating to certain incomes of non-residents
- CHAPTER XIIB - Special provisions relating to certain companies
- CHAPTER XIIBA - Special provisions relating to certain limited liability partnerships
- CHAPTER XIIBB - Special provisions relating to conversion of Indian branch of a foreign bank into a subsidiary company
- CHAPTER XIIBC - SPECIAL PROVISIONS RELATING TO FOREIGN COMPANY SAID TO BE RESIDENT IN INDIA
- CHAPTER XIIC - Special provisions relating to retail trade etc.
- CHAPTER XIID - Special provisions relating to tax on distributed profits of domestic companies
- CHAPTER XIIDA - SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED INCOME OF DOMESTIC COMPANY FOR BUY-BACK OF SHARES
- CHAPTER XIIE - Special provisions relating to tax on distributed income
- CHAPTER XIIEA - SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED INCOME BY SECURITISATION TRUSTS
- CHAPTER XIIEB - SPECIAL PROVISIONS RELATING TO TAX ON ACCRETED INCOMEOF CERTAIN TRUSTS AND INSTITUTIONS
- CHAPTER XIIF - Special provisions relating to tax on income received from venture capital companies and venture capital funds
- CHAPTER XIIFA - SPECIAL PROVISIONS RELATING TO BUSINESS TRUSTS
- CHAPTER XIIFB - SPECIAL PROVISIONS RELATING TO TAX ON INCOME OF INVESTMENT FUNDS AND INCOME RECEIVED FROM SUCH FUNDS
- CHAPTER XIIG - Special provisions relating to income of shipping companies
- CHAPTER XIIH - Income-tax on fringe benefits
- CHAPTER XIII - Income-tax Authorities
- CHAPTER XIV - Procedure for assessment
- CHAPTER XIVA - Special provision for avoiding repetitive appeals
- CHAPTER XIVB - Special procedure for assessment of search cases
- CHAPTER XIX - Refunds
- CHAPTER XIXA - Settlement of cases
- CHAPTER XIXB - Advance rulings
- CHAPTER XV - Liability in special cases
- CHAPTER XVI - Special provisions applicable to firms
- CHAPTER XVII - Collection and recovery of tax
- CHAPTER XVIII - Relief respecting tax on dividends in certain cases
- CHAPTER XX - Appeals and revision
- CHAPTER XXA - Acquisition of immovable properties in certain cases of transfer to counteract evasion of tax
- CHAPTER XXB - Requirement as to mode of acceptance payment or repayment in certain cases to counteract evasion of tax
- CHAPTER XXC - Purchase by central government of immovable properties in certain cases of transfer
- CHAPTER XXI - Penalties imposable
- CHAPTER XXII - Offences and prosecutions
- CHAPTER XXIIB - Tax credit certificates
- CHAPTER XXIII - Miscellaneous
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