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Rule 88D for GST discrepancies between GSTR-2B and GSTR-3B

In this article we will discuss about new Rule 88D, To ensure accurate input tax credit claims, the Central Board of Indirect Taxes and Customs (CBIC) has taken a significant step by introducing Rule 88D through Notification No. 38/2023-Central tax dated 04.08.2022. This new rule aims to streamline the process of claiming input tax credit and rectify any discrepancies between GSTR-2B and GSTR-3B, enhancing compliance and transparency for taxpayers.

Understanding Rule 88D:

Under Rule 88D, the GST portal will now compare the Input Tax Credit (ITC) available in GSTR-2B with the ITC availed in GSTR-3B. If the ITC availed in GSTR-3B exceeds the ITC available in GSTR-2B by the prescribed amount and percentage recommended by the council, the taxpayer will receive an electronic intimation of the difference through Part A of Form DRC-01C. The taxpayer will also receive a copy of the intimation via email.

Compliance Options under Rule 88D:

Upon receiving the intimation, the taxpayer has two options to comply:

  1. Pay the Excess Credit: The taxpayer can pay the amount equal to the excess input tax credit availed in GSTR-3B along with interest under section 50 through FORM GST DRC-03.
  2. Provide Explanation: Alternatively, the taxpayer can respond within 7 days by providing reasons for the difference in Part B of FORM GST DRC-01C on the common portal.

If the taxpayer decides to settle the excess input tax credit, they should provide the relevant information in Part B of Form DRC-01C through the common portal. Alternatively, if the taxpayer chooses to explain the discrepancy, they must do so within the designated 7-day timeframe, also in Part B of Form DRC-01C.

Significance and Implications of Rule 88D:

The implementation of Rule 88D by CBIC carries great importance for both taxpayers and the GST system. The rule focuses on comparing ITC data from GSTR-2B and GSTR-3B to detect and correct any inconsistencies, ensuring that rightful input tax credit claims are made accurately. This initiative enhances transparency and streamlines the tax credit process, effectively reducing the possibility of erroneous claims.

With prompt intimation and two compliance choices, taxpayers gain the ability to swiftly rectify any discrepancies. This timely approach promotes responsible tax reporting and upholds the credibility of the GST system.

Conclusion:

The implementation of Rule 88D by CBIC marks a crucial milestone in the journey towards a more transparent and efficient GST regime. By addressing discrepancies in input tax credit claims, this new rule promotes compliance and instills confidence in the taxation system.

It is crucial for taxpayers to reconcile their Input Tax Credit (ITC) claims in GSTR-3B with the ITC available in GSTR-2B. Any discrepancies should be promptly addressed to avoid penalties and adverse actions from tax authorities. Staying informed and compliant with GST regulations is essential for smooth tax operations.

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How to File Appeal Against Rejection of GST Registration

In this article, we will discuss the main requirement for filing for appeal against the Rejection of GST Registration, GST Amendment, Cancellation of Registration, etc., Any GST taxpayer may file an appeal if he is not satisfied with the order passed by the designated officer. Appeal for an order against registration application is required to be filed in Form GST APL-01

Appeal Against Rejection of GST Registration

Which type of Registration Rejection orders for which appeal can be filed

  • Order of Rejection of Application for Registration for all Taxpayers
  • Order of Rejection of Application for Amendment for all Taxpayers
  • Order of Rejection of Application for Cancellation for all Taxpayers
  • Order of Rejection of Application for Revocation of Cancellation
  • Order for rejection of reply to show cause notice issued in Form GST CMP-05
  • Order for Cancellation of Registration
  • Order of Cancellation of Registration as Tax Deductor at source or Tax Collector at source
  • Order for cancellation of provisional registration
  • Order of rejection of enrolment as GST Practitioner

Form in which appeal is required to be filed for GST Registration Rejection

Form GST APL -01 is required to be filed online and The appellant is required to submit a physical copy of supporting documents along with the appeal application, duly signed and verified to the office of the appellate authority within 7 days of filing an appeal on the GST Portal. Upon receipt of complete documents, the final acknowledgment will be issued to him.

Time Period in which Appeal Against Rejection of GST Registration Can be filed with Appealte Authority

Any taxpayer or an unregistered person aggrieved by any decision or order passed against him (with respect to Registration, amendment or cancellation etc.) by an adjudicating authority, may appeal to the Appellate Authority, within three months from the date on which the said decision or order is communicated to such person.

The appellate authority may condone delay for a period of a maximum of 1 month if he is satisfied that the taxpayer was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months and allow it to be presented within a further period of one month.

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HSN Code In GSTR-1 Return

In accordance with Notification No. 78/2020 – Central Tax, dated October 15, 2020, taxpayers need to declare Harmonised System of Nomenclature (HSN) Code of Goods and Services supplied by them on raising of tax invoices, with effect from 1st April, 2021 on the below mentioned lines in GSTR-1 return (HSN Code In GSTR-1 Return)

S.NoAggregate Turnover in the preceding Financial YearNumber of Digits of HSN Code to be reported in GSTR-1
1Upto Rs. 5 crores4
2Above Rs. 5 crores6
HSN Code In GSTR-1 Return

3. To view the detailed advisory on the action to be taken by the taxpayers to resolve above issues, click on: https://tutorial.gst.gov.in/downloads/news/advisoryonhsnandgstr1.pdf

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GST Return Late Fee Amnesty Scheme

Amnesty Scheme to provide relief to taxpayers regarding late fee for
pending returns:

Reduced GST Late fee for earlier periods


To provide relief to the taxpayers, late fee for non-furnishing FORM GSTR-
3B for the tax periods from July, 2017 to April, 2021 has been reduced / waived
as under: –
i. late fee capped to a maximum of Rs 500/- (Rs. 250/- each for CGST &
SGST) per return for taxpayers, who did not have any tax liability for
the said tax periods;
ii. late fee capped to a maximum of Rs 1000/- (Rs. 500/- each for CGST &
SGST) per return for other taxpayers;
The reduced rate of late fee would apply if GSTR-3B returns for these tax
periods are furnished between 01.06.2021 to 31.08.2021.

Reduced Late Fee for Future Periods

Rationalization of late fee imposed under section 47 of the CGST Act:
To reduce burden of late fee on smaller taxpayers, the upper cap of late fee is
being rationalized to align late fee with tax liability/ turnover of the taxpayers,
as follows:
A. The late fee for delay in furnishing of FORM GSTR-3B and FORM GSTR-
1 to be capped, per return, as below:
(i) For taxpayers having nil tax liability in GSTR-3B or nil outward
supplies in GSTR-1, the late fee to be capped at Rs 500 (Rs 250 CGST +
Rs 250 SGST)
(ii) For other taxpayers:

For taxpayers having Annual Aggregate Turnover (AATO) in
preceding year upto Rs 1.5 crore, late fee to be capped to a
maximum of Rs 2000 (1000 CGST+1000 SGST);
b. For taxpayers having AATO in preceding year between Rs 1.5
crore to Rs 5 crore, late fee to be capped to a maximum of Rs 5000
(2500 CGST+2500 SGST);
c. For taxpayers having AATO in preceding year above Rs 5 crores,
late fee to be capped to a maximum of Rs 10000 (5000 CGST+5000
SGST).
B. The late fee for delay in furnishing of FORM GSTR-4 by composition
taxpayers to be capped to Rs 500 (Rs 250 CGST + Rs 250 SGST) per return,
if tax liability is nil in the return, and Rs 2000 (Rs 1000 CGST + Rs 1000 SGST)
per return for others.
C. Late fee payable for delayed furnishing of FORM GSTR-7 to be reduced to
Rs.50/- per day (Rs. 25 CGST + Rs 25 SGST) and to be capped to a maximum
of Rs 2000/- (Rs. 1,000 CGST + Rs 1,000 SGST) per return.
All the above proposals to be made applicable for prospective tax periods.

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TDS by Govt. Department & PSUs under GST- Registration, Return filing & Issuance of Certificate to deductee

Entities that required to get themselves registered as TDS Deductor:

  • A department or establishment of the Central Government or State Government
  • Local Authority
  • Governmental Agencies

When TDS is to be deducted & Rate of TDS:

A department or establishment of the Central Government or State Government, Local Authority & Governmental Agencies are required to deduct TDS at the rate of one percent (1%) for CGST and one percent (1%) for SGST from the payment made or credited to the supplier of Goods & Services or both, where total value of such supply under a contract, exceeds two lakh and fifty thousand rupees.

Value of the Supply for the purpose of deduction of TDS:

The value of supply shall be taken as the amount excluding the central tax, State tax, Union territory tax, integrated tax and cess indicated in the invoice.

Payment of Amount Deducted as Tax & Filling of Return:

1.Due Date for Payment of Tax Deducted & Filling of Return:10th day of Succeeding Month. 
2.Form in which Certificate is to be issuedForm GSTR-7A
3.Time Limit for issuing the CertificateCertificate is required to be issued within 5 days of crediting the amount so deducted to the Government

Issuance of Certificate by the TDS Deductor:

The deductor shall furnish to the deductee a certificate mentioning therein the contract value, rate of deduction, amount deducted, amount paid to the Government in Form GSTR-7A within 5 days of crediting the amount so deducted to the Government.

Check List for Registration of Govt. Department, Local Authorities & PSUs as TDS deductor under GST:

Documents:

  • Copy of TAN Allotment Letter or Copy of PAN Card of Govt. Department, Local Authority & PSUs.
  • Copy of DDO’s PAN Card.
  • Copy of DDO’s Aadhar Card/Voter ID/DL/Passport etc.

Information:

  • DDO’s Mobile Number (Will be verified through OTP)
  • DDO’s Email Address (Will be verified through OTP)
  • Landline No. of Govt. Department, Local Authority & PSUs.

FAQ’s on Registration of Govt. Department, Local Authorities & PSUs as TDS deductor under GST

Is  Govt. department, Local Authorities & PSUs supplying goods or services and already registered as a taxpayer under GST, need separate registration as tax Deductor?

Yes, a Govt. department, Local Authorities & PSUs requires separate registration as TDS deductor

Is Govt. department, Local Authorities & PSUs only registered as a TDS deductor requires to charge any GST on its supplies?

No, the department is only liable to deduct TDS and deposit it with the Govt.

Where a department is registered as both as Tax-payer and as Tax deductor is he need to file separate returns for both the registrations ?

Yes, separate returns for both the registrations are required to be filed.

When any department does not hold any PAN than how can it apply for registration as TDS deductor?

The department may apply with TAN number also.

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How to Check if vendor has filed GST Return or Not ?

As we all are filing GSTR3B and GSTR1 every month and quarterly and showing Input Credit Figures , Now it is very important that the vendor form where you are purchasing goods or availing services are filing GSTR return timely and showing proper GST Invoice details in GSTR 1 Filing.

How to Check Return Filing Status on GST website : 

  1. Go to https://www.gst.gov.in and Click on Search Taxpayer 
  2.  Select search by GSTN or UIN
Search GSTN
Search Taxpayer

3. Enter GSTN number of Vendor 

4. Enter Captcha Code and Click on Search button , Here you will get all the details of Returns Filied by the vendor.

How to Register Sole Proprietorship Firm

How to Check if vendor has filed your own invoice details or not ?

In this case you are required to login to your GSTN Account 

  1. Select the return dashboard 
  2. Select the return period for which you need to check the Invoice 
  3. Click on 2A Return form and View the data Filed by Vendors 
  4. In case your Invoice is missing , please contact to your vendor, as you may face problem in claiming Input Credit on Invoices shown by you.

If your vendor files GST Return on Quarterly basis, Data will be showed only after Quarterly GST Return been Filed by the Other Party.

Thank you

Need GST Filing Services ? Call 9782280098 or Place your request at this website

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GST Registration in Rajasthan

GST Registration in Rajasthan is required for Person where he makes a taxable supply of goods or services or both if his aggregate turnover in a financial year exceeds twenty lakh rupees: you may also opt for voluntary Registration if your turnover does not exceed Rs. 20 Lakhs. Most of the cases if you need GST Registration as you would not like to miss any great business opportunity because of the fact that your business does not have GST Number.

How to Get GST Registration in Rajasthan:

To get GST Registration we need to have some basic set of documents of Individual or Company/Firm/LLP along with Name of the firm and business objects of the firm.

Information required for GST Registration in Rajasthan:

  1. Name of Firm
  2. Address of Firm
  3. Commodities Intend to Sell/Buy or Services to be Provided
  4. Email id
  5. Mobile No
  6. Additional Place of Business Like Branch Address/Factory Address/ Warehouse etc
  7. List of Director/Partners, in case of Private Limited Company/LLP/Firm

Documents Required for GST Registration for Proprietorship Firm in Rajasthan :

  1. PAN Card Copy of Proprietor
  2. Aadhar Card Copy of Proprietor
  3. Photo of Proprietor
  4. Bank Statement with IFSC Code or Cancelled Cheque Copy of Proprietor Bank Account ( Saving Account, if you do not have current Account of firm)
  5. Electricity Bill and Rent Agreement copy, if the property is on Rent for Firm Office Address.

Documents Required for GST Registration for Partnership Firm in Rajasthan:

  1. PAN Card Copy of Partnership Firm
  2. Registration Certificate/Partnership Deed of Partnership Firm
  3. PAN Card Copy of Partners
  4. Aadhar Card Copy of Partners
  5. Photo of Partners
  6. Bank Statement with IFSC Code or Cancelled Cheque Copy of Partnership firm Bank Account
  7. Electricity Bill and Rent Agreement copy, if the property is on Rent for Firm Office Address.
  8. Resolution for Authorisation Person in case of Firm (We will Provide you for signing )

Documents Required for GST Registration for LLP in Rajasthan:

  1. PAN Card Copy of Limited Liability Partnership (LLP)
  2. Registration Certificate and LLP Agreement of Limited Liability Partnership (LLP)
  3. PAN Card Copy of partners of  Limited Liability Partnership (LLP)
  4. Aadhar Card Copy of Partners of  Limited Liability Partnership (LLP)
  5. Photo of Partners of  Limited Liability Partnership (LLP)
  6. Bank Statement with IFSC Code or Cancelled Cheque Copy of Limited Liability Partnership (LLP) Bank Account
  7. Electricity Bill and Rent Agreement copy, if the property is on Rent for Firm Office Address.
  8. Resolution for Authorisation Person in case of Company/LLP/Firm (We will Provide you for signing )
  9. Digital Signature for Directors/Partner in case of Private Limited and LLP  (If you do not have we will Provide )

Documents Required for GST Registration for Private Limited Company in Rajasthan

  1. PAN Card Copy of Private Limited Company
  2. Registration Certificate of Private Limited Company
  3. PAN Card Copy of Directors of Private Limited Company
  4. Aadhar Card Copy of Directors of Private Limited Company
  5. Photo of Directors of Private Limited company
  6. Cancelled Cheque Copy of Private Limited Company Bank Account
  7. Electricity Bill and Rent Agreement copy, if the property is on Rent for Firm Office Address.
  8. Resolution for Authorisation Person in case of Company/LLP/Firm (We will Provide you for signing )
  9. Digital Signature for Directors/Partner in case of Private Limited and LLP  (If you do not have we will Provide)

 

Fastlegal Provides GST Registration and Return Filing Services Online – To Connect with Fastlegal Team Members Place your Request here or Call/Whatsapp 9782280098

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E-way Bill Requirements in India

What is an e-way bill ?

e-way bill is a document required to be carried by a person in charge of the conveyance carrying any consignment of goods of value exceeding fifty thousand rupees as mandated by the Government in terms of section 68 of the Goods and Services Tax Act read with rule 138 of the rules framed thereunder. It is generated from the GST Common Portal by the registered persons or transporters who causes movement of goods of consignment before commencement of such movement.

Portal to Get E-way Bill? 

The common portal for generation of e-way bill is , presently in Rajasthan it is http://164.100.80.180/ewbnat8

Why is E-way bill required? 

Section 68 of the Goods and Services Tax Act mandates that the Government may require the person in charge of a conveyance carrying any consignment of goods of value exceeding such amount as may be specified to carry with him such documents and such devices as may be prescribed. Rule 138 of Karnataka Goods and Services Tax Rules, 2017 prescribes e-way bill as the document to be carried for the consignment of goods of value more than rupees fifty thousand . Government has issued a notification under rule 138 of Goods and Services Tax Rules, 2017 mandating to carry e-way bill for transportation of goods of consignment of value more than rupees fifty thousand. Hence e-way bill generated from the common portal is required to be carried.

Who all can generate E-way bill? 

Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees in relation to supply; or reasons other than supply; or inward supply from unregistered person shall generate e-way bill. It means, the consignor or consignee, as a registered person or a transporter of the goods can generate the e-way bill. The unregistered transporter can enroll on the common portal and generate the e-way bill for movement of goods for his clients. Any person can also enroll and generate the e-way bill for movement of goods for his/her own use.

Who can update the vehicle number in  E-way ?

The e-way bill is not valid without the vehicle number updated on the common portal, if on the mode of transport is the road. The Vehicle number can be updated by the generator of the e-way bill or the transporter assigned for that e-way bill by the generator.

What is a pre-requisite to generate the e-Way Bill?

To generate the e-way bill, it is essential that the person shall be registered person and if the transporter is not registered person it is mandatory to get enrolled on the common portal of e-waybill(http://gst.kar.nic.in/ewaybill) before generation of the e-way bill. The documents such as tax invoice or bill of sale or delivery challan and Transporter’s Id, who is transporting the goods with transporter document number or the vehicle number in which the goods are transported.

If there is a mistake or wrong entry in the e-Way Bill, what has to be done?



If there is mistake, incorrect or wrong entry in the e-way bill, then it cannot be edited or corrected.

Whether the e-way bill can be cancelled? if yes, under what circumstances ?

Yes. e-way bill can be cancelled if either goods are not transported or are not transported as per the details furnished in the e-way bill. e-way bill can be cancelled within 24 hours from the time of generation.

If the vehicle in which goods are being transported having e-way bill is changed, then what has to be done?

The e-way bill for transportation of goods always should have the vehicle number that is actually carrying the goods. There may be requirement to change the vehicle number after generating the e-way bill or after commencement of movement of goods due to transshipment or due to breakdown of vehicle. In such cases, the transporter or generator of the e-way bill can update the changed vehicle number.

Why the transporter needs to enroll on the e-Way Bill system?

There may be some transporters, who are not registered under the Goods and Services Tax Act and if such transporters cause the movement of goods for their clients, they are required to generate the e-way bill on behalf of their clientsf or update the vehicle number for e-way bill. Hence, they need to enroll on the e-way bill portal and generate the 15 digits Unique Transporter Id.

Can I transport the goods with the e-way bill without vehicle details in it?

No. One needs to transport the goods with a e-way bill specifying the vehicle number, which is a carrying the goods. However, where the goods are transported for a distance of less than ten kilometers within the State from the place of business of consignor to the place of transporter for further transportation, then the vehicle number is a not mandatory.

Whether e-Way Bill is required for all the goods that are being transported?

The e-way bill is required to transport all the taxable goods with the value exceeding fifty thousand rupees except 154 goods specified in Annexure to the notification.

What is consolidated e-Way Bill?

Consolidated e-way bill is a document containing the multiple e-way bills for multiple consignments being carried in one conveyance (goods vehicle). That is, the transporter, carrying the multiple consignments of various consignors and consignees in one vehicle is required to carry one consolidated e-way bill instead of carrying multiple e-way bills for those consignments.

Who can generate the consolidated e-Way Bill?

A transporter can generate the consolidated e-way bills for movement of multiple consignments in one vehicle.

Can the e-way bill be deleted or cancelled?

The e-way bill once generated cannot be deleted. However, it can be cancelled by the generator within 24 hours of generation. If it has been verified by any empowered officer, then it cannot be cancelled. e-way bill can be cancelled if either goods are not transported or are not transported as per the details furnished in the e-way bill.

Who can reject the e-Way Bill and Why?

The person who causes transport of goods shall generate the e-way bill specifying the details of other person as a recipient of goods. There is a provision in the common portal for the other party to see the e-way bill generated against his/her GSTIN. As the other party, one can communicate the acceptance or rejection of such consignment specified in the e-way bill. If the acceptance or rejection is not communicated within 72 hours from the time of generation of e-way Bill, it is deemed that he has accepted the details.

If the goods having e-way bill has to pass through transshipment and through different vehicles, how it has to be handled?

Some of the consignments are transported by the transporter through transshipment before it is delivered to the recipient at the place of destination. Hence for each movement from one place to another, the transporter needs to update the vehicle number in which he is transporting that consignment.

Is there any validity period for e-way bill?

Yes. Validity of the e-way bill or consolidated e-way bill depends upon the distance the goods have to be transported. The validity is one day upto 100 km and for every 100 km or part thereafter it is one additional day.

Which types of transactions that need the e-way bill?

For transportation of goods in relation to all types of transactions such as outward supply whether within the State or interstate, inward supply whether from within the State or from interstate including from an unregistered persons or for reasons other than supply also e-way bill is mandatory.

Who is required to generate the e-way bill?

Every registered person, who causes movement of goods, needs to generate the e-way bill. If the registered person is unable to generate the e-way bill, the transporter who transports the goods can generate the e-way bill on behalf of his/her client. If the movement is caused by an unregistered person, he may at his option generate the e-way bill.

Can I use the different modes of transportation to carry the goods having the e-Way Bill? If so, how to update the details?

Yes. One can transport the goods through different modes of transportation – Road, Rail, Air, Ship. However, always e-way bill needs to be updated with the latest mode of transportation or conveyance number accordingly. That is, at any point of time, the details of conveyance specified in the e-way bill on the portal should match with the details of conveyance through which goods are actually being transported.

What are the documents that need to be carried along with the goods being transported?

The person in charge of a conveyance shall carry the tax invoice or bill of supply or delivery challan, as the case may be; and a copy of the e-way bill or the e-way bill number generated from the common portal.

How to generate the e-Way Bill from different registered business places?

The registered person can generate the e-way bill from his account from any registered business place. However, he/she needs to enter the address accordingly in the e-way bill. He/she can also create multiple sub-users and assigned to these places and generate the e-way bills accordingly.

How can the taxpayer under GST register for the e-way bill system?

All the registered persons under GST shall also register on the portal of e-way bill namely: using his GSTIN. Once GSTIN is entered, the system sends the OTP to his registered mobile number and after authenticating the same, the system enables him to generate his/her username and password for the e-way bill system. After generation of username and password of his choice, he/she may proceed to make entries to generate e-way bill.

What has to be entered in GSTIN column, if consignor or consignee is not having GSTIN?

If the consigner or consignee is unregistered tax payer and not having GSTIN, then user has to enter ‘URP’ [Unregistered Person] in corresponding GSTIN column.

What are the modes of e-way bill generation, the taxpayer can use?

The e-way bill can be generated by the registered person in any of the following methods;-

o Using Web based system

o Using bulk upload facility

o Using SMS based facility

o Using Android App

o Using Site-to-Site integration

o Using GSP ( Goods and Services Tax Suvidha Provider)

How does the unregistered transporter get his unique id or transporter id?

The transporter is required to provide the essential information on the EWB portal. The transporter id is created by the EWB system after furnishing the information and submitting. It is a 15 digits number on similar lines with GSTIN and it is based on state code, PAN and Check digit. This can be shared by transporter to his clients to enter this number while generating e-waybills.

How to generate e-way bill, if the goods of one invoice is being moved in multiple vehicles simultaneously?

Where the goods are being transported in a semi knocked down or completely knocked down condition the EWB shall be generated for each of such vehicles based on the delivery challans issued for that portion of the consignment and;

(a) the supplier shall issue the complete invoice before dispatch of the first consignment;

(b) the supplier shall issue a delivery challan for each of the subsequent consignments, giving reference of the invoice;

(c) each consignment shall be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice; and

(d) the original copy of the invoice shall be sent along with the last consignment

Please note that multiple EWBs have to generate under this circumstance. That is, the EWB has to be generated for each consignment based on the delivery challan details along with the corresponding vehicle number.

How does the tax payer or recipient come to know about the e-way bills generated on his GSTIN by other person/party?

As per rules, the tax payer or recipient can reject the e-way bill generated on his GSTIN by other parties. The following options are available for him to see the list of e-way bills.

• He can see on the dashboard, once he logs into the system.

• He will get one SMS everyday indicating the total e-way bill activities on his GSTIN.

• He can go to reject option and select date and see the e-way bills. Here, system shows the list of e-way bills generated on his GSTIN by others.

• He can go to report and see the ‘EWBs by other parties’.

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GST Council meeting – Key Takeaways

1. New rates to be applicable from 15.11.2017 prospectively after notification.
2. 178 items shifted from 28% slab to lower slabs leaving apart sin goods and cess applicable goods.
3. Restaurants to have no ITC. Rate of tax shall be 5%. Restaurants in star hotels-18% with ITC. Other hotels -5% without ITC.
4. Outdoor catering -18% with ITC.
5. Gstr-3b to continue till 31.03.2018.
6. Nil returns to become very easy.
7. Only filing of GSTR-1 in current year for all taxpayers. Below 1.5 crore- 31st dec for July to sept, Qtr3- 15.02.2018, Qtr4- 30.04.18
8. Other taxpayers file GSTR 1 for July-oct by 31st dec 2017 then from November by 10th of next month – only GSTR 1.
9. Gstr-1 to be matched with GSTR-3B.
10. Penalty on late filing, nil return- Rs. 20 per day. Others- Rs. 50 per day.
11. Composition: July-sept- ITC-05 by 31.12.2017 and GSTR-04 by 24.12.2017
12. *TRAN-01 to be filed by 31.12.2017.*
13. Composition rate of 1% for manufacturers.
14. Composition scheme for services up to Rs. 5 Lakhs in addition to supply of goods.
15. Composition limit to be increased to Rs. 1.5 crores only upon amendment of law.
16. 1% composition only on taxable and not exempt goods. Dealer dealing in exempted goods allowed to opt for composition.

Forwarded
[10/11, 20:59] ‪+91 75970 00090‬: Summary of the #GSTCouncil meeting of November 10, 2017

*Composition scheme expanded*
Threshold for Composition scheme to be increased to Rs. 1.5 Crores. Uniform tax rate of 1% applicable for both traders and manufacturers. Composition suppliers allowed services upto Rs. 5 lakh per annum for eligibility. Exempted supply not to be taxed at 1%.

*Returns*

Filing of Form GSTR 2 and GSTR 3 has been suspended for the current financial year. Only GSTR 1 is to be filed as per the below schedule.

For suppliers having turnvover below 1.5 crores,
For the period of July to Sept – 31st Dec 2017
For the period of Oct to Dec – 15th Feb 2018
For the period of Jan – Mar – 30th Apr 2018

For suppliers having turnvover more than 1.5 crores,
For the period of Jul to Oct – 31st Dec 2017
For the month of Nov – 10th Jan 2018
For the month of Dec – 10th Feb 2018
For the month of Jan – 10th Mar 2018
For the month of Feb – 10th Apr 2018
For the month of Mar – 10th May 2018

Filing of return in Form 3B to be continued till March. For small taxpayers, return to be simplified. It is not clear whether small suppliers will have to file monthly or quarterly (as proposed in the last meeting).

A committee to simplify details of GSTR 2 and GSTR 3 will be setup.

*TRAN-1 date extended *
The due date of TRAN-1 has been extended to December 31, 2017.

*Penalties reduced*
Rate of penalty for delay in filing of returns will be reduced from Rs. 200 per day to Rs. 20 per day for suppliers with nil returns. For others, penalty to be reduced to Rs. 50 per day.

*GSTR-4 extended*

Due date for return of suppliers covered in composition scheme in Form GSTR-4 has been extended to 24th December 2017.

*Changes in Rates*

1. 5% Tax on all Restaurants other than 5-Star *without ITC*

2. Rates reduced for 178 items from 28% to 18% effective Nov 15, 2017.
– Washing Machines
– Air Conditioners
– Make up
– Sanitary Items
– Marble/flooring
– Toiletries

3. Rates reduced from 28% to 12%
– Wet grinders
– Armoured fighting vehicles

4. Rates reduced from 18% to 12% for 13 items, from 5% to 0% for 6 items, from 12% to 5% – 8 items.

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How to file GST Returns in India

Every registered taxable person has to furnish outward supply details in Form GSTR-1 (GST Returns-1) by the 10th of the subsequent month. On the 11th, the visibility of inward supplies is made available to the recipient in the auto-populated GSTR-2A. The period from 11th to 15th will allow for any corrections (additions, modifications and deletion) in Form GSTR-2A and submission in Form GSTR-2 by 15th of the subsequent month.The corrections (addition, modification and deletion) by the recipient in Form GSTR-2 will be made available to supplier in Form GSTR-1A. The supplier has to accept or reject the adjustments made by the recipient. The Form GSTR-1 will be amended according to the extent of correction accepted by supplier.

On 20th, the auto-populated return GSTR-3 will be available for submission along with the payment. After the due date of filing the monthly return Form GSTR-3, the inward supplies will be matched with the outward supplies furnished by supplier, and then the final acceptance of input tax credit will be communicated in Form GST MIS-1.

Also, the mismatch input tax credit on account of excess claims or duplication claims will be communicated in Form GST MIS-1. Discrepancies not ratified will be added as output tax liability along with interest. However, within the prescribed time, if it is ratified, the recipient will be eligible to reduce this output tax liability.

Format Of Various GST Forms:-

Types of GST Returns to be filed by normal taxpayers

GSTR-1

The taxpayer records all his outward supplies of goods and services in details in this form. This has to be mandatorily done by the 10th of the next month. This will form the basis of all future flow and match for credit reconciliations. GSTR-1 is a detailed form containing 13 different heads. The critical headings are:

  • GSTIN of the Taxable Person – Auto populated result
  • Name – Auto populated result
  • Gross Turnover in Last Financial Year – This has to be filed only once. From next year onwards, this field will be auto populated
  • The Period for which the return is being filed – Month & Year shall be available as a drop down for selection
  • Taxable outward supplies – Here, IGST shall be filled only in the case of inter-state movement whereas CGST and SGST shall be filled in case of intra-state movement. Moreover, details of any exempted sales or sale at nil rate of tax shall also be mentioned here
  • Outward Supplies to end customer, where the value exceeds Rs. 2.5 lakhs – Other than mentioned, all such supplies are optional in nature
  • Any other supplies not covered in above 2 sections
  • Debit Notes or Credit Notes Details
  • Amendments to the details of any outward supplies of previous periods – This does not covers any changes by way of debit/credit notes
  • Exempted, Nil-Rated and Non-GST Supplies – This is a Non-GST section. When the details of exempted sales or nil-rated sales have already been mentioned anywhere above, then only Non-GST shall be filled up here
  • Export Sales
  • Tax Liability arising out of advance receipts
  • Tax Paid.

GSTR-2A

It is available on the 11th of the next month for the recipients to see and validate the information therein. Recipients have time between 11th – 15th of the next month to change any information, delete or add, based on their books of accounts.

GSTR-2

This form is the culmination of all inward supplies of goods and services as approved by the recipient of the services. The due date is 15th of the next month. It is auto-populated with the details of GSTR-2A. GSTR-2 shall include the following heads:

  • GSTIN of the Taxable Person – Auto populated result
  • Name – Auto populated result
  • The Period for which the return is being filed – Month & Year shall be available as a drop down for selection
  • Details of all inward supplies – Auto populated with the details of GSTR-1. The taxable person can make any further addition or changes to the invoice here
  • Changes to the inward supplies made for any previous period
  • Import of Goods – Imports are treated as Inter-state supply and IGST shall be applicable on the same
  • Import of Goods in earlier periods
  • Services received from a person outside India (Import of Services)
  • Import of Services in earlier periods
  • Debit notes or Credit notes Details
  • Amendments made to Debit or Credit notes of previous periods
  • Inward supplies emanating from Unregistered persons
  • Credits received from an Input Service Distributor – Auto populated from details of GSTR-6
  • TDS credit from specified persons – Auto populated from details of GSTR-7
  • TCS credit from E-Commerce operators – Auto populated from details of GSTR-8
  • Input Tax Credit remaining to be taken against an invoice, from which initially a partial invoice was taken
  • Reverse Charge tax liability
  • Amendment to such reverse charge tax liability
  • Tax Paid
  • Input Tax Credit Reversals – A dropdown containing reasons for such reversals shall be made available
  • Amendments to such Input Tax Credit Reversals

GSTR-1A

The form shall be auto-populated after filing of GSTR-2 on the 15th of the next month, having all the correct or changed information. The supplier shall have the choice to accept or reject the changes made by the recipient. Following such acceptance, the GSTR-1 shall be revised to such extent.

GSTR-3

This form is auto prepared by 20th of the next month. It will have the details of all outward as well as inward supplies of goods and services as furnished in GSTR-1 and GSTR-2. After considering both the details, GSTN will determine your input tax credit availability or the amount of tax payable.

It will have the following details:

  • GSTIN of the Taxable Person – Auto populated result
  • Name – Auto populated result
  • Address of the person – Auto populated result
  • The Period for which the return is being filed – Month & Year shall be available as a drop down for selection
  • Total turnover
  1. Export Turnover
  2. Taxable Turnover
  3. Non-GST Turnover
  4. Nil Rated or Exempted Turnover
  5. Total Turnover (Sum of 1-4)
  • Details of outward supplies
  1. Inter-state supply to end customers
  2. Intra-state supply to end customers
  3. Inter-state supply to registered persons
  4. Intra-state supply to registered persons
  5. Exports
  6. Amendments to Sales Invoices, Debit Notes and Credit Notes
  7. Tax liability on such outward supplies
  • Details of inward supplies
  1. Inter-State received
  2. Intra-State received
  3. Imports
  4. Amendments to Purchase invoices, Debit Notes and Credit Notes
  5. Tax liability on such inward supplies
  6. Reversals of Input Tax Credit
  • Total tax liability for the period
  • TDS received for the period
  • TCS received for the period
  • ITC for the period

Apart from the above details, a Part B has to be filed containing the details of,

  • Any taxes, interests, penalties or fees paid during the period
  • Any refunds claimed during the period w.r.t. cash ledger

GSTR-9

This is the annual return, which the taxpayer has to file by 31st December of the coming financial year. It is nothing but the accumulation of all 12 monthly GSTR-3 of the taxpayer. It would also include the amount of tax paid during the year, including details of exports or imports.

Apart from the above forms, the Government shall serve those taxpayers who fail to furnish the returns on time, notice in Form GSTR-3A.

After the GSTR-3 is fully accepted for the month, then final input tax credit shall be communicated through form GST ITC-1. The details of ITC-1 has to be confirmed in due time to get the credit for that month. If the same is not done in due time, then it will disallow the credit for the month and will be computed as a tax liability for the month instead.

Returns to be filed by Composition Tax Payers

GSTR-4A

Similar to the GSTR-2A above, GSTR-4A is generated quarterly for composition scheme taxpayers. It has the details of the inward supplies as reported by suppliers in GSTR-1.

GSTR-4

With the auto-populated details of GSTR-4A, the taxpayer can furnish all his outward supplies here. The due date is 18th of the following month and has to be filed quarterly. It also contains the details of tax payable and payment of tax.

GSTR-9A

This is the annual return for all composition tax payers. It has to filed by 31st December of the coming financial year and includes all the quarterly returns filed by the composition tax payer.

Returns to be filed by Foreign Non-Resident Taxpayer

GSTR-5

This is a detailed form containing the particulars of outward supplies, imports, tax paid, input tax availed and remaining stock. This has to be filed monthly within 20th of the next month or if the registration is given up, then within 7 days of such surrender or expiry of registration.

Returns to be filed by an Input Service Distributor

GSTR-6A

This form will be generated by 11th of next month after the suppliers have filed their GSTR-1 on 10th of the next month. It will be auto-populated with the details of inward supplier made to them. It has to be filed on a monthly basis by the ISD.

GSTR-6

Once the details are confirmed or corrected by the ISD, then GSTR-6 will be generated. It has to be filed by the ISD by 13th of the next month. This is also a monthly filing.

Returns to be filed by a Tax Deductor

GSTR-7

Details of the tax deductions made during the month has to be furnished here. The due date is 10th of the next month.

GSTR-7A

This is a TDS certificate, which is auto-generated upon filing the GSTR-7 by the tax Deductor. It will be available for the assessees to download and keep record of. It will contain details of the tax deducted and the total amount of payment made.

Return to be filed by an E-Commerce Portal

GSTR-8

This return shall contain all the supplies made by the E-Commerce seller and the amount of tax collected as well. It has to be filed by 10th of the next month.

For those assessees whose annual turnover exceeds INR 1 Crore, then a reconciliation statement in Form GSTR-9B has to be filed by 31st December of the next fiscal year. It has to be filed annually and is basically an audited annual accounts, duly certified by competent authority.

Where the assessee is a Government body or a United Nations Body, then a monthly Form GSTR-11 has to be filed by 28thof the next month. These bodies have a UIN (Unique Identification Number) and hence will be required to furnish the details of inward supplies.

Where a taxable person’s registration has been surrendered or cancelled, then a final return in Form GSTR-10 has to be filed within 3 months of such cancellation or registration. It will declare the input tax credit and capital goods held by the taxpayer, tax payable and paid at such time.

The Government has automated all the forms together by bringing the same details on a real time basis in front of the taxpayers. The step, which is of paramount importance, is Step No. 1, i.e. FORM GSTR-1. It will form the basis of all further activities.

Any shortcomings or short filings of information in the details provided by the suppliers can be rectified, changed or deleted by the recipients in ample period of time. It is a seamless process that matches all information together to get the final credit figures and tax payable, if any.

The payment challans are also a very crucial part of all the filing process. Without them, it is not possible to clear tax payments and dues in due course of time and also claim credit.

  1. PMT-1: An online tax liability register arising out of return or non-return related liabilities of the taxpayer.
  2. PMT-2: Credit balance online as in GSTN
  3. PMT-2A: Re-credit addition to the GSTN balance of a taxpayer
  4. PMT-3: Online cash ledger

Note: The above forms are maintained free of cost by the GSTN for each taxpayer. It can be accessed anytime through a User ID and Password, 24X7.

  1. PMT-4: Challan for payment of GST
  2. PMT-5: Payment register for unregistered taxpayers
  3. PMT-6: Application for claiming missing credit

Where it is found that there is an excess credit available in the account of a taxpayer, then the taxpayer has an option to claim refund of such excess credit within prescribed time. The refund application forms are different for the State and Central Governments.

There are 10 forms prescribed for the Central Government, out of which only 5 are applicable for the State application. The main form is RFD-01 where the application for refund is made.

GSTR 3B Return

In order to ease the burden on tax payers, tax authorities have introduced a simple return form called as GSTR 3B. This has to be used only for the december . Every registered tax payer (Except for composition scheme) needs to file a separate GSTR 3B for each GSTIN they have.

This is more like a self-declaration return and the tax payer is not required to provide invoice level information in this form. Only total values for each field have to be provided.

Due date for filing GSTR 3B return for July was 20th of the relavent month.