Tag Archives: GST return filing

GST Returns

Key outcomes of the 28th GST Council meet held on 21st July 2018

GST return filing process

  • Small taxpayers with less than INR 5 crores of turnover can opt to file GST return quarterly against earlier limit of INR 1.5 crores. Quarterly return filing will be similar to the monthly return. However, tax payment would still be monthly, through a challan. Only small taxpayers making B2C supply or making B2B and B2C supply can enroll for quarterly GST return filing. Small taxpayers involved in only B2B supply cannot file quarterly returns under this scheme.
  • Two simplified returns have been designed- “Sugam” and “Sahaj”, where in the first one, report only B2C supplies and the other report both B2B & B2C supplies, respectively.
  • The returns that have to be filed monthly, has also been simplified. The new return is simple with two main tables. One for reporting outward supplies and one for reporting inward supplies for availing input tax credit. The process would be based on Invoice “UPLOAD – LOCK – PAY TAX” for most tax payers.
  • A new facility is proposed by the GSTN wherein NIL return filers (no purchase and no sale) can file Return by just sending an SMS.

Composite dealers

  • Limit not exceeding 10% of the turnover of services rendered in the preceding financial year, or INR 5 lakhs, whichever is higher shall be fixed for opting into the composite scheme. Restaurant services are not be considered for this measure.
  • Threshold limit for opting for composition scheme to be raised to INR 1 crore from existing INR 1.5 crore.

GST registration

  • Taxpayers may opt for multiple registrations within a State / Union territory in respect of multiple places of business located within the same State / Union territory. Earlier it was restricted to multiple businesses in the separate States.
  • Now it becomes mandatory to register under GST for those E-commerce operators who are required to collect tax at source.
  • The threshold exemption limit for GST registration increased to INR 20 lakhs from INR 10 lakhs for 6 States -Taxpayers operating in Sikkim, Arunachal Pradesh, Himachal Pradesh, Uttarakhand, Assam & Meghalaya.
  • Registration to remain temporarily suspended for the time cancellation of registration is under process, so that the taxpayer is relieved of continued compliance burden under the law.

 Reverse charge mechanism

  • An amendment is proposed to levy GST on reverse charge mechanism on receipt of supplies from unregistered suppliers, to be applicable to only specified goods in case of certain notified classes of registered persons.

E-way bills compliance

  • As the RFID readers or tags will be introduced with Goods and Services Tax Network (GSTN) for transporters in the next 6 months, this is supposed to relieve the transporters from wait at check posts.
  • Standard operating procedure to be adopted to reduce harassment of transporters avoid unnecessary hardship at checkpoints and to give effect to a uniform.

GST migration re-opened

  • Those businesses that had VAT or Service Tax or Central Excise registration were required to migrate and obtain GSTIN by registering under GST. This migration was later closed.
  • The 28th GST Council has now approved the proposal to open the migration window for taxpayers, who received provisional IDs but could not complete the migration process.
  • Taxpayers who filed Part- A of form GST REG-26, but not Part- B need to approach the jurisdictional Central Tax / State Tax nodal officers with the necessary details on or before 31st August, 2018 to complete the procedure.
  • All such taxpayers who are now migrating will also be not levied a penalty for late filing GST return. However, such taxpayers will have to file GST return first along with the payment of late fee. On filing the GST return, the GSTN would provide credit by way of a reversal of the amount paid as late fees in the cash ledger under the tax head.

*To encourage the same the late fee payable for delayed filing of return in such cases is decided to be waived.

For exporters

  • Exemption on outward transportation of all goods by air and sea is extended by another year till 30th September, 2019.
  • Services provided in sectors like banking, IT have been provided relief by exempting services supplied by an establishment of a person in India to any establishment of that person outside India (related party).

Other key points

  • Currently, the fiber material is charged at a higher GST rate of 12% as compared to the final apparel that was made out of it attracted only 5%. Due to this, ITC on fiber material was not being able to be utilized. On account of the inverted duty structure that currently prevails in this industry, GST council has proposed for the provision of allowing refund of the accumulated ITC by giving prospective effect to its applicability from 27th July 2018.
  • Registered persons may issue consolidated credit / debit notes in respect of multiple invoices issued in a Financial Year.
  • Hotels to be taxed on actual tariff basis not on declared tariff.

Rate rationalized

  • Common-use foot wares having retail price up to INR 1,000 to be taxed at 5 % for those with price exceeding INR 1000, 18% GST rate will be applicable.
  • Ethanol oil for oil companies to be taxed at 5 per cent in place of 18 % earlier.
  • GST rates for all leather items reduced to 18 per cent from 28 %.
  • GST rates cut to 18% for special purpose vehicles, work truck, trailers.
  • Rates on scents, toilet spray now under 18 % slab.
  • GST on bamboo flooring put under 12 % category.
  • Handicraft items to now be taxed at 12 %.
  • GST on handbags, jewellery box, wooden box for paintings, artware of glass, stone endeavour, ornamental framed mirrors, handmade lamps etc. reduced to 12%.
  • GST on imported urea reduced to 5%.
  • Rates for 17 white goods including — Washing machine, Refrigerators, TV, Video games, Vacuum cleaners, Trailers, Juicer mixer, Grinders, Shavers & Hair driers, water cooler, water heaters, Lithium ion batteries, electric iron – reduced by 10 % from 28 % to 18 %.

Exempted items

  • Sanitary napkins that were earlier taxed at 12 % has been put under exempted category.
  • Marbles, stone and wood deities get exemption.
  • Rakhi and fortified milk are also exempted.

New GST rates

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Next Council meet is going to be held on 4th August 2018.For further updates stay tuned here!
For any query on this, reach our GST advisors.

Goods and Services Tax

Key Changes in GST (22nd Meeting of GST Council)

  1. In order to ease the compliance burden of SME Sectors, following amendments has been recommended:
    •  Composition Scheme will be available up to the turnover of Rs. 1 Crore. Tax Rate for Composition Scheme will remain same at present level.
    •  Person with a turnover up to 1.5 Crore will be required to furnish the quarterly return instead of monthly return. Tax will also be required to be paid on Quarterly basis. Switchover will take place from 1st October.
    •  Returns from July to September’ 2017 will still be required to be filed on monthly basis.
    •  Big Tax Payers filing monthly basis who are purchasing goods from small tax payers will require to avail credit through their GSTR 2 by filing manual feeding.
  2. E-way bill will be tried to notify upto 1st April, 2018 nation wide.
  3. Applicability of Reverse Charge on Inward Supply from unregistered person is deferred will 31st March 2018.
  4.  TDS & TCS Provisions will be effective from 1st April 2018.
  5.  Service Provider with a turnover of upto 20 Lakh will be exempted with applicability of GST on their Inter-State supply.
  6.  Refund to exporters will be granted with effect from 10th October for the month of July and with effect from 18th October for the month of August.
  7.  Future exports can be made by the merchant exporter at nominal rate of 0.1% IGST up to 31st March. Preferably by 1st April, 2018, E-wallets system will be developed for exporters.
  8.  Issues with respect to allowing composition taxpayers to make inter-state outward supply, to pay composition tax only on taxable items will be studied by group of ministers (GOM) on urgent basis.
  9.  Now suppliers having upto  20 lacs interstate supplies shall not be require to have mandatory registration .
  10.  Tax Rates of around 27 items has been revisited by fit-ment committee. Changes rates for some items are as follows:
  •  From 12 to 5: Unbranded namkeen, Unbranded ayurvedic medicines, Paper Waste,
  •  From 18 to 5: Plastic Waste, Rubber Waste,
  •  From 28 to 18: Parts of Diesel Engine, Stationary items, Stones used for flouring except marble and stone
  • From 18 to 12: Man-made Yarn
  •  Many Items of Job Work for example printing items are reduced to 5% from 12%.
  •  Rates for government construction contracts in several case where labour component is more such as irrigation projects are reduced to 5% from 12%.

If you have any query regarding this Click Here

GST Advisor in Delhi

Interest on Late Payment of GST

Goods and Service Tax is an ambitious tax regime applicable from 1st of July 2017 made a number of indirect taxes subsumed into it. The government has now revealed the due dates for the payment of GST. The GST payment due date for general taxpayers is 20th of October.

All the registered taxpayers are required to make the payment of their taxes on GST Portal latest by the 20th of this october for a particular tax period. Taxpayers registered under composition scheme will have to pay GST only once every quarter.

GST Payment Due Date

  • GST Payment due date (normal taxpayer): 20 days from the end of the tax period month.
  • GST Payment due date (composition scheme taxpayer): 18 days from the end of a tax quarter.

Interest Applicable on GST Late Payment
Interest at the rate of 18% per annum will be applicable for GST late payment. In case it is determined that the taxpayer misstated output tax liability in the GST return, then interest at the rate of 24% would be applicable. In addition to the interest, penalty could also be levied on the taxpayer under GST for erroneous return filing, wilful misstatement or fraud.

Rules and Regulations of GST Payment for Taxpayers

  • The electronic cash ledger will be credited if payment for tax, interest, penalty and fee has been made by internet banking, credit card, NEFT, RTGS. While the amount can be used for the payment of interest, tax, penalty which is remaining in the electronic cash ledger of the taxpayer.
  • A payment for GST PMT-06 form is done through challan while the challan is only valid for the time period of 15 days. When the payment is done successfully, a Challan Identification Number (CIN) is generated. If in any case the CIN is not generated than the taxpayer can file Form GST PMT-07.
  • Online payments even made after 8 pm will be credited on the same day to the taxpayer’s account. While there will be no physical challan accepted for the GST payment while the challans will be generated from the gst.gov.in only for all the payments of taxes, fees, penalty, interest.
  • For the payment of challan under the 10000 rupees limit, it can be done over the counter with cash, cheques, demand draft through authorised banks while for the payments exceeding the amount of 10000 will be collected through digital mode only

Interest and Penalty on late payment of GST

A person is liable to pay interest/penalty as per following conditions and rules.

  • Any payment after the due date will attract an interest at the rate of 18%.
  • If a person makes excess or undue claims of input credits or excess/undue reduction in tax liability, they will have to pay an interest at the rate of 24% on the excess claim or reduction amount.
  • The penalty of 10% of the unpaid or short paid tax or Rs. 10,000, whichever is higher, is to be levied in case of non-payment of GST even after 3 months from the originally scheduled date.
  • In case of a fraud or misstatement to escape tax, the penalty of Rs. 10,000 or 100% of the tax will be applicable.

Hence, it is imperative for you as a tax payer, to avoid instances of interest payment. Default in payment of tax will also have an impact on your compliance rating. Timely and accurate compliance will help you to avoid unnecessary cash outflow and achieve a good compliance score.

For assistance with GST return filing or Making GST payments, get in touch with an GST Advisor