21 Important Points in GST as it stands today in this changing scenario

1)  The following classes of taxpayers shall be exempted from obtaining registration:

a. Suppliers of services, having turnover uptoRs. 20 lakh, making inter State supplies;

b. Suppliers of services, having turnover uptoRs. 20 lakh, making supplies through e-commerce platforms.

2) The reverse charge mechanism under sub-section (4) of section 9 of the  CGST Act, 2017 and under sub-section (4) of section 5 of the IGST Act, 2017 has been suspended till 30.09.2019.

3) There shall be no requirement on payment of tax on advance received for supply of goods by all taxpayers.

4) Supply from GTA to unregistered persons has been exempted from tax.

5)  There would be a single cash ledger for each tax head. The modalities for implementation would be finalized in consultation with GSTN and the Accounting authorities.

6)   A scheme of single authority for disbursement of the refund amount sanctioned by either the Centre or the State tax authorities would be implemented on pilot basis. The modalities for the same shall be finalized shortly.

7)   The new return filing system shall be introduced on a trial basis from 01.04.2019 and on mandatory basis from 01.07.2019.

8)   The due date for furnishing the annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the Financial Year 2017 – 2018 shall be extended till 30.06.2019.

9)   ITC in relation to invoices issued by the supplier during FY 2017-18 may be availed by the recipient till the due date for furnishing of FORM GSTR-3B for the month of March, 2019, subject to specified conditions.

10) TDS/TCS provisions to be implemented from 01.10.2018. Further, to provide some more time to TDS deductor to familiarize themselves with the new system, last date for furnishing return in FORM GSTR-7 for the months of October, November & December has been extended upto 31.01.2019. Further, exemption from TDS for been made for supply made by PSU to PSU.

11) The due date for furnishing FORM GSTR-8 by e-commerce operators for the months of October, November and December, 2018 shall be extended till 31.01.2019.

12) The due date for submitting FORM GST ITC-04 for the period July 2017 to December 2018 shall be extended till 31.03.2019.

13) E-Wallet Scheme shall be introduced for exporters from 01.04.2019 and till then relief for exporters shall be given in form of broadly existing practice.

14) All taxpayers are required to file return FORM GSTR-3B & pay tax on monthly basis.

15) Taxpayers with turnover uptoRs. 1.5 Cr are required to file information in FORM GSTR-1 on a quarterly basis. Other taxpayers would have to file FORM GSTR-1 on a monthly basis.

16) One more window for completion of migration process is being allowed. The due date for the taxpayers who did not file the complete FORM GST REG-26 but received only a Provisional ID (PID) till 31.12.2017 for furnishing the requisite details to the jurisdictional nodal officer shall be extended till 31.01.2019. Also, the due date for furnishing FORM GSTR- 3B and FORM GSTR-1 for the period July, 2017 to February, 2019/quarters July, 2017 to December, 2018 by such taxpayers shall be extended till 31.03.2019.

17) Late fee shall be completely waived for all taxpayers in case FORM GSTR-1, FORM GSTR-3B & FORM GSTR-4 for the months / quarters July, 2017 to September, 2018, are furnished after 22.12.2018 but on or before 31.03.2019.

18) From October 2017 onwards, the amount of late fee for late filing of GSTR-3B payable by a registered person is as follows:

• whose tax liability for that month was ‘NIL’ will be Rs. 20/- per day instead of Rs. 200/- per day;
• whose tax liability for that month was not ‘NIL’ will be Rs. 50/- per day instead of Rs. 200/- per day.

19) All the  supporting documents/invoices in relation to a claim for refund in FORM GST RFD-01A shall be uploaded electronically on the common portal at the time of filing of the refund application itself, thereby obviating the need for a taxpayer to physically visit a tax office for submission of a refund application.

20) The following types of refunds shall also be made available through FORM GST RFD-01A: (a) Refund on account of assessment/Provisional Assessment/Appeal/Any Other Order; (b) Tax paid on an intra-State supply which is subsequently held to be inter-State supply and vice-versa; (c) Excess payment of Tax; and (d) Any other refund.

21) Supply of services to Nepal and Bhutan shall be exempted from GST even if payment has not been received in foreign convertible currency – such suppliers shall be eligible for input tax credit.

GST Council in its 31st meeting

The GST Council in its 31st meeting held today at New Delhi made the following MAJOR recommendations:

1.The due date for furnishing the annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the Financial Year 2017 – 2018 shall be further extended till 30.06.2019.

2.The due date for submitting FORM GST ITC-04 (JOB WORK RETURN) for the period July 2017 to December 2018 shall be extended till 31.03.2019.

3.ITC in relation to invoices issued by the supplier during FY 2017-18 may be availed by the recipient till the due date for furnishing of FORM GSTR-3B for the month of March, 2019, subject to specified conditions.

4.There would be a single cash ledger for each tax head. The modalities for implementation would be finalised in consultation with GSTN and the Accounting authorities.

5.The new return filing system shall be introduced on a trial basis from 01.04.2019 and on mandatory basis from 01.07.2019.

6.All the supporting documents/invoices in relation to a claim for refund in FORM GST RFD-01A shall be uploaded electronically on the common portal at the time of filing of the refund application itself, thereby obviating the need for a taxpayer to physically visit a tax office for submission of a refund application. GSTN will enable this functionality on the common portal shortly.

7.A scheme of single authority for disbursement of the refund amount sanctioned by either the Centre or the State tax authorities would be implemented on pilot basis. The modalities for the same shall be finalized shortly.

8.Late fee shall be completely waived for all taxpayers in case FORM GSTR-1, FORM GSTR-3B & FORM GSTR-4 for the months / quarters July, 2017 to September, 2018, are furnished after 22.12.2018 but on or before 31.03.2019.

Regarding GSTR 9, GSTR9A, GSTR9B, GSTR9C

What is GSTR-9 annual return?

GSTR 9 form is an annual return to be filed once in a year by the registered taxpayers under GST including those registered under composition levy scheme. It consists of details regarding the supplies made and received during the year under different tax heads i.e. CGST, SGSTand IGST. It consolidates the information furnished in the monthly/quarterly returns during the year.

= Who should file GSTR 9 annual return?

All the registered taxable persons under GST must file GSTR 9 form. However, the following persons are not required to file GSTR 9

• Casual Taxable Person
• Input service distributors
• Non-resident taxable persons
• Persons paying TDS under section 51 of GST Act.

= What are different types o³f return under GSTR-9 form?

There are 4 types of return under GSTR 9 :

1. GSTR 9: GSTR 9 should be filed by the regular taxpayers filing GSTR 1, GSTR 2, GSTR 3.
2. GSTR 9A: GSTR 9A should be filed by the persons registered under composition scheme under GST.
3. GSTR 9B: GSTR 9B should be filed by the e-commerce operators who have filed GSTR 8 during the financial year.
4. GSTR 9C: GSTR 9C should be filed by the taxpayers whose annual turnover exceeds Rs  2 crores during the financial year. All such taxpayers are also required to get their accounts audited and file a copy of audited annual accounts and reconciliation statement of tax already paid and tax payable as per audited accounts along with GSTR 9C.

= What is the due date of GSTR-9?

GSTR-9 due date is on or before 31st December of the subsequent financial year.

For instance, for FY 2017-18, the due date for filing GSTR 9 is 31st December 2018*.

=  What is the Penalty for the late filing of GSTR-9 form?

Late fees for not filing the GSTR 9 within the due date is Rs. 100 per day per act up to a maximum of an amount calculated at a quarter percent of the taxpayer turnover in the state or union territory. Thus it is Rs 100 under CGST & 100 under SGST, the total penalty is Rs 200 per day of default. There is no late fee on IGST.

= What are the details required in the GSTR-9 form?

:

Sl no	Parts of the GSTR-9	Information required
1	Part-I	Basic details of the taxpayer. This detail will be auto-populated.
2	Part-II	Details of Outward and Inward supplies declared during the financial year(FY). This detail must be picked up by consolidating summary from all GST returns filed in previous FY.
3	Part-III	Details of ITC declared in returns filed during the FY. This will be summarised values picked up from all the GST returns filed in previous FY.
4	Part-IV	Details of tax paid as declared in returns filed during the FY.
5	Part-V	Particulars of the transactions for the previous FY declared in returns of April to September of current FY or up to the date of filing of annual returns of previous FY whichever is earlier. Usually, the summary of amendment or omission entries belonging to previous FY but reported in Current FY would be segregated and declared here.
6	Part-VI	Other Information comprising details of:
		-GST Demands and refunds,
		-HSN wise summary information of the quantity of goods supplied and received with its corresponding Tax details against each HSN code,
		-Late fees payable and paid details and
		-Segregation of inward supplies received from different categories of taxpayers like Composition dealers, deemed supply and goods supplied on approval basis.

7. GSTR 9 PDF Format

= How to prepare GSTR-9 & a detailed discussion of form

The declaration of the information in the Annual returns has multiple implications. Any incorrect information can attract tax demands, interest and penalties on the same, leave alone the long-term litigations that follow years later.

The principal source for preparing GSTR-9 will be GSTR-1 and GSTR-3B returns. All information must be cross-checked with the books of accounts before declaring in the annual returns.

Broadly, the form entails the declaration of annual sales, bifurcating it between the cases subject to tax and cases not subject to tax. On the purchase side, the annual value of inward supplies and ITC availed thereon, classified as inputs, input services and capital goods and the ITC to be reversed due to ineligibility.

While at it, GSTR-9 is divided into six parts. Here is a comprehensive list of what needs to be declared and from where one can fetch the information.

= Drawbacks/ Issues with GSTR 9 form and possible suggestions

Formats of GSTR 9 released early this September had a lot of ambiguities. The issues were mostly based on the fact that the annual return form would not auto-populate the information which was already filed in the periodic returns. In order to make the filing of annual return simple for taxpayers, the GSTN updated the form and resolved most of the issues. These are some of the issues still persisting in the annual return form.

Issues	Suggestions/Solutions
1. HSN of inward supplies is required in the annual return GSTR 9 which was not needed while filing monthly GSTR 3B.	This requirement of reporting HSN wise inward supplies should be done away with. However, ClearTax GST will fill in table 18 i.e. HSN codes of the inward supplies in the GSTR 9 automatically from the purchase register.
2. The difference in the annual return as per the books of accounts and GST data filed during the financial year.	GSTR 9 should provide the means to verify whether the figures from GST data filed for annual return are in line with the books of accounts. ClearTax GST will prepare annual returns in 2 formats; one as per books of accounts and other as per GST data filed. In case of any differences, a reconciliation report will be generated and accordingly, the discrepancies will be sorted.
3. Segregated details of ITC availed are required as Inputs/Input services/ Capital Goods	This bifurcation in the ITC availed will lead to reworking on the accounting entries by the assessee, as the same details were not required in the periodic returns. ClearTax GST will help the assessee file GST annual return to report the bifurcation with ease in the annual return.
4. Reporting of the amended transactions relevant to the FY 2017-18 filed in the returns of April to September of current FY or up to the filing of annual return of FY 2017-18 i.e. 31 Dec 2018, whichever is earlier.	This reporting will be supported in GSTR 9 on  ClearTax GST. The feature will reconcile the amended transactions of FY 2017-18 filed in current FY and report them accordingly in the annual return.

Composition scheme biz need not file purchase details while filing GST quarterly returns

Businesses opting for composition scheme under GST need not file details of purchases made from their vendors at the time of filing quarterly return GSTR-4, the Finance Ministry said Wednesday. 

In a clarification, the ministry said there have been doubts regarding the manner of filing the quarterly return by composition dealers in Form GSTR-4 in the absence of auto-population of the details of inward supplies received from registered suppliers. 

"In this regard, it is to clarify .. 

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EXTEND INCOME TAX AUDIT ITR FILLING DATE

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CBDT vide order u/s 119 dated 28/08/2018 has extended the 'due date' for submission of Returns of Income from 31/08/2018 to 15/09/2018 in the case of income tax assessees in the State of Kerala ,who are liable to file their Income tax returns by 31/08/2018 [For de

List of Usful code for Income tax Return

List of Useful Codes Status of Taxpayer I Individual H Hindu Undivided Family (HUF) 1 Firm 2 Local Authority 3 Cooperative Bank 4 Cooperative Society 5 Any other AOP or BOI 6 Public Company 7 Private Company 8 Others Activity Code for Part A Nature of Business 0101 Manufacturing Industry [Agro-based industries] 0102 Manufacturing Industry [Automobile and Auto parts] 0103 Manufacturing Industry [Cement] 0104 Manufacturing Industry [Diamond cutting] 0105 Manufacturing Industry [Drugs and Pharmaceuticals] 0106 Manufacturing Industry [Electronics including Computer Hardware] 0107 Manufacturing Industry [Engineering goods] 0108 Manufacturing Industry [Fertilizers, Chemicals, Paints] 0109 Manufacturing Industry [Flour & Rice Mills] 0110 Manufacturing Industry [Food Processing Units] 0111 Manufacturing Industry [Marble & Granite] 0112 Manufacturing Industry [Paper] 0113 Manufacturing Industry [Petroleum and Petrochemicals] 0114 Manufacturing Industry [Power and energy] 0115 Manufacturing Industry [Printing & Publishing] 0116 Manufacturing Industry [Rubber] 0117 Manufacturing Industry [Steel] 0118 Manufacturing Industry [Sugar] 0119 Manufacturing Industry [Tea, Coffee] 0120 Manufacturing Industry [Textiles, Handloom, Powerlooms] 0121 Manufacturing Industry [Tobacco] 0122 Manufacturing Industry [Tyre] 0123 Manufacturing Industry [Vanaspati & Edible Oils] 0124 Manufacturing Industry [Others] 0201 Trading [Chain stores] 0202 Trading [Retailers] 0203 Trading [Wholesalers] 0204 Trading [Others] 0301 Commission Agents [General Commission Agents] 0401 Builders [Builders] 0402 Builders [Estate agents] 0403 Builders [Property Developers] 0404 Builders [Others] 0501 Contractors [Civil Contractors] 0502 Contractors [Excise Contractors] 0503 Contractors [Forest Contractors] 0504 Contractors [Mining Contractors] 0505 Contractors [Others] 0601 Professionals [Chartered Accountants, Auditors, etc.] 0602 Professionals [Fashion designers] 0603 Professionals [Legal professionals] 0604 Professionals [Medical professionals] 0605 Professionals [Nursing Homes] 0606 Professionals [Specialty hospitals] 0607 Professionals [Others] 0701 Service Sector [Advertisement agencies] 0702 Service Sector [Beauty Parlours] 0703 Service Sector [Consultancy services] 0704 Service Sector [Courier Agencies] 0705 Service Sector [Computer training/educational and coaching institutes] 0706 Service Sector [Forex Dealers] 0707 Service Sector [Hospitality services] 0708 Service Sector [Hotels] 0709 Service Sector [IT. enabled services, BPO service providers] 0710 Service Sector [Security agencies] 0711 Service Sector [Software development agencies] 0712 Service Sector [Transporters] 0713 Service Sector [Travel agents, tour operators] 0714 Service Sector [Others] 0801 Financial Service Sector [Banking Companies] 0802 Financial Service Sector [Chit Funds] 0803 Financial Service Sector [Financial Institutions] 0804 Financial Service Sector [Financial service providers] 0805 Financial Service Sector [Leasing Companies] 0806 Financial Service Sector [Money Lenders] 0807 Financial Service Sector [Non-Banking Financial Companies] 0808 Financial Service Sector [Share Brokers, Sub-brokers, etc.] 0809 Financial Service Sector [Others] 0901 Entertainment Industry [Cable T.V. productions] 0902 Entertainment Industry [Film distribution] 0903 Entertainment Industry [Film laboratories] 0904 Entertainment Industry [Motion Picture Producers] 0905 Entertainment Industry [Television Channels] 0906 Entertainment Industry [Others ] States 01 ANDAMAN AND NICOBAR ISLANDS 02 ANDHRA PRADESH 03 ARUNACHAL PRADESH 04 ASSAM 05 BIHAR 06 - CHANDIGARH 07 DADRA & NAGAR HAVELI 08 DAMAN & DIU 09 DELHI 10 GOA 11 GUJARAT 12 HARYANA 13 HIMACHAL PRADESH 14 JAMMU & KASHMIR 15 KARNATAKA 16 KERALA 17 LAKHSWADEEP 18 MADHYA PRADESH 19 MAHARASHTRA 20 MANIPUR 21 MEGHALAYA 22 MIZORAM 23 NAGALAND 24 ORISSA 25 PONDICHERRY 26 PUNJAB 27 RAJASTHAN 28 SIKKIM 29 TAMILNADU 30 TRIPURA 31 UTTAR PRADESH 32 WEST BENGAL 33 CHHATISHGARH 34 UTTARANCHAL 35 JHARKHAND 99 State outside India