“After a certificate of registration in FORM GST REG-06 has been made available on the common portal and a Goods and Services Tax Identification Number has been assigned, the registered person, except those who have been granted registration under rule 12 or, as the case may be rule 16, shall within a period of thirty days from the date of grant of registration, or before furnishing the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using invoice furnishing facility, whichever is earlier, furnish information with respect to details of bank account on the common portal.”

In this regard, the GST Department has issued an advisory requesting all taxpayers who have not yet furnished their bank account details on the GST portal, to furnish the same, in order to avoid disruption in their business activities as non-declaration of the same may lead to subsequent suspension and cancellation of the GSTIN.

For the same, the Government is planning to deploy a new functionality with the following features:

1. Failure to furnish the bank account in the stipulated time would result into following:

a) Taxpayer registration would get suspended after 30 days and intimation in FORM REG-31 will be issued to the Taxpayer

b) Taxpayer would be debarred from filing any further GSTR-1/IFF

2. Revocation of Suspension: If the taxpayer updates their bank account details in response to the intimation in FORM REG-31, the suspension will be automatically revoked.

3. Cancellation of Registration: If the bank account details are not updated even after 30 days of issuance of FORM REG-31, the registration after suspension may also be taken up for cancellation process by the Officer.

It is therefore advised that if your bank account details are yet to be updated on the GST portal, the same should be updated at the earliest to avoid suspension of the GST registration.

The post Furnishing of Bank Account details mandatory to avoid GST cancellation appeared first on GST Platform.

Taxpayers would need to provide one-time password (OTP) post entering user id and password, the OTP will be delivered to their Primary Authorized Signatory “Mobile number and E-mail id”.

Tax-payers are requested to keep their email and mobile number of authorized signatory updated on the GST Portal for receiving the OTP communication. This OTP would only be asked, in case the tax-payer changes the system (desktop or laptop or browser) and location.

We can now expect the 2^nd phase to start soon where it will be mandatory for all taxpayers to provide the OTP during login into the GST portal.

Also read our other related articles:

https://gstplatform.com/4-digit-hsn-code-mandatory-w-e-f-1-february-2024/ https://gstplatform.com/new-feature-on-gst-portal-form-gst-drc-01c/

The post OTP authentication for logging-in to GST portal appeared first on GST Platform.

Notification No. 78/2020 –Central Tax, dated 15th October, 2020 made it mandatory for taxpayers whose Annual Aggregate Turnover (AATO) is more than Rs. 5 Crores to provide at least 6 digit HSN code for all the B2B and Export transactions.

As per the latest update, taxpayers with AATO less than Rs. 5 Crores, need to provide at least 4 digit HSN code. This validation will be implemented in E-Way bill System from 1st February 2024.

Hence, the taxpayers are advised to make necessary changes in their systems and enter four or six digit HSN codes while generating the e-way bills through web and API systems from 1st February 2024.

Also read our other related articles:

https://gstplatform.com/new-feature-on-gst-portal-form-gst-drc-01c/ https://gstplatform.com/introduction-of-table-14-table-15-in-gstr-1

The post 4-digit HSN code mandatory w.e.f. 1 February 2024 appeared first on GST Platform.

Table 14(a) —->> Details of the supplies made through e-commerce operators on which ecommerce operators are liable to collect tax under section 52 of the Act [Supplier to report]

The GSTIN wise summary of the supplies made through ECO on which ECO is liable to collect tax at sources (TCS) and liability on which has already been reported in any table 4 to 10 of GSTR-1, shall be reported by the supplier in this section. No taxable value or tax liabilities will be auto-populated from this table to GSTR-3B. Amendments to this section shall be reported in Table 14A(a).

Table 14(b) —->> Details of the supplies made through e-commerce operators on which ecommerce operators are liable to pay tax u/s 9(5) [Supplier to report]

The summary details of the supplies made through ECO on which ECO is liable to pay tax u/s 9(5) is to be reported by the supplier. Tax on such supplies shall be paid by the ECO and not by the supplier. This is to be reported net of credit / debit note (if any). Such values will be auto-populated to Table 3.1.1(ii) of GSTR-3B. Amendments to this section shall be reported in Table 14A(b).

Table 15 —->> Details of the supplies made through e-commerce operators on which e-commerce operator is liable to pay tax u/s 9(5) [E-Commerce operator to report]

Eco shall report the supplies on which they are liable to pay tax u/s 9(5) in Table 15. Such supplies shall not be reported anywhere else in GSTR-1/IFF. There are four categories in which supplies will be reported.

> Registered Supplier and Registered Recipient (B2B) – In this section the details of such supplies where both the supplier and receiver of supplies are registered person, is to be reported by ECOs at invoice level. This will be available in IFF also. Debit Note / credit note (if any) is to be reported in Table 9B.

> Registered Supplier and Unregistered Recipient (B2C) – In this section the supplier level details along with POS and rate wise detail of the supplies related to the transaction where the supply is being made from a registered supplier to unregistered recipient need to be reported by e-commerce operator. This will not be available in IFF. This is to be reported net of credit / debit note (if any).

> Unregistered Supplier and Registered Recipient (URP2B) – In this section the document level details of the supplies made from unregistered supplier to registered recipient through ECO needs to be reported by the e-commerce operator. The detail to furnish will include the document detail and GSTIN of recipient. This will be available in IFF also. Debit Note / credit note (if any) is to be reported in Table 9B.

> Unregistered Supplier and Unregistered Recipient (URP2C) – In this section the POS and rate wise detail of the supplies from an unregistered supplier to unregistered recipient through ECO is to be reported by the e-commerce operator. This will be not be available in IFF. This is to be reported net of credit / debit note (if any).

The values reported under table 15 shall be auto-populated in Table 3.1.1(i) of corresponding GSTR-3B and such liabilities is to be paid by the ECOs in GSTR-3B in cash. Amendments are to be reported in Table 15A(I) (for registered recipient) & 15A(II) (for unregistered recipient) respectively.

These tables have now been made live on the GST common portal and will be available in GSTR-1/IFF from the tax period January’24 onwards.

Also read our other related articles:

https://gstplatform.com/new-feature-on-gst-portal-form-gst-drc-01c/

https://gstplatform.com/e-invoice-applicability-whether-penalty-is-rightfully-levied/

The post Introduction of Table 14 & Table 15 in GSTR-1 appeared first on GST Platform.

As per the said advisory, it is to be noted that GSTN has developed a functionality to generate automated intimation in Form GST DRC-01C which enables the taxpayer to explain the difference in Input tax credit available in GSTR-2B statement & ITC claimed in GSTR-3B. This feature is now live on the GST portal.

This functionality compares the ITC declared in GSTR-3B with the ITC available in GSTR-2B for each return period. If the claimed ITC in GSTR 3B exceeds the available ITC in GSTR-2B by a predefined limit or the percentage difference exceeds the configurable threshold, the taxpayer will receive an intimation in the form of GST DRC-01C.

Upon receiving the intimation, the taxpayer must file a response using Form DRC-01C – Part B. The taxpayer has the option to either provide details of the payment made to settle the difference using Form DRC-03, or provide an explanation for the difference, or even choose a combination of both options. In case, no response is filed by the impacted taxpayers in Form DRC-01C Part B, such taxpayers will not be able to file their subsequent period GSTR-1/IFF.

Also read our other related articles:

https://gstplatform.com/no-itc-reversal-for-gstr2a-mismatch-says-supreme-court/ https://gstplatform.com/return-filing-cannot-be-denied-at-any-cost-says-high-court/

The post New feature on GST portal – Form GST DRC-01C appeared first on GST Platform.

First of all, it is important to understand that e-invoice is not applicable for all registered persons under GST. The categories of person on whom e-invoice is not applicable are as follows:

• Banks, Insurance Companies, and Financial Institutions including but not limited to NBFCs
• Goods Transport Agency
• Passenger Transport Services
• Supplier of Services by way of admission to the exhibition of films.
• Special Economic Zones (SEZ) Units (E-invoicing is applicable to Economic Zone Developers)
• A government department and Local authority
• OIDAR i.e. person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient

Therefore, all persons either issue B2C invoices or they fall in the above-mentioned categories, are exempted from e-invoice.

E-invoice has been implemented phase-wise for reporting B2B invoices. Only the large businesses were targeted initially to start with the e-invoice system, and gradually, in a phased manner, smaller businesses have been brought into its scope by reducing the turnover limit.

The applicability of e-invoice based on the turnover has been given below:

Therefore, w.e.f. 1^st August 2023, all businesses with annual turnover exceeding five crore rupees shall mandatorily issue e-invoice. Further, it should be noted that turnover for the purpose of determining the eligibility of e-invoice means turnover of all GSTINs under a single PAN for any of the financial years from 2017-18 onwards.

If the applicable provisions for e-invoice are violated, two types of penalties may be levied:

• Penalty for failure to create an e-invoice: If a person to whom e-invoice applies, fails to generate an e-invoice, the penalty would be equal to either 100% of the tax owed on the supply or Rs. 10,000, whichever is greater.
• Penalty for incorrect e-invoice: If an e-invoice is created improperly, penalty equal to Rs. 25,000 per invoice shall be levied.

With the increasing litigation under GST, various notices are being issued levying penalty for non-compliance of e-invoice provisions. Hence, it is important to check the eligibility criteria and turnover threshold to determine whether e-invoice is eligible to a person or not for the period under dispute.

Also read our other articles:

https://gstplatform.com/gst-return-revision/

https://gstplatform.com/no-itc-reversal-for-gstr2a-mismatch-says-supreme-court/

https://gstplatform.com/return-filing-cannot-be-denied-at-any-cost-says-high-court/

The post E-Invoice Applicability – Whether Penalty is rightfully levied? appeared first on GST Platform.

GST department in an official letter , said that all the registration application filed on or before 30.06.2020 which remained pending for processing as on 15.07.20 , is deemed approved.

All other pending applications will be approved till 31.07.2020 in a special drive.

Normal process of deemed approval of registration will be started from 01.08.20.

Read Also : GSTN Advisory on rejected revocation Application

Full details given below :

The post Approval of pending GST registration appeared first on GST Platform.

Section 128 of Finance Act 2020 is as follows :

Read Also : New TDS rates from 14.05.2020

In section 140 of the Central Goods and Services Tax Act, with effect from the 1st
day of July, 2017,—
(a) in sub-section (1), after the words “existing law”, the words “within such time and” shall be inserted and shall be deemed to have been inserted;

(b) in sub-section (2), after the words “appointed day”, the words “within such time and” shall be inserted and shall be deemed to have been inserted;

(c) in sub-section (3), for the words “goods held in stock on the appointed day subject to”, the words “goods held in stock on the appointed day, within such time and in such manner as may be prescribed, subject to” shall be substituted and shall be deemed to have been substituted;

(d) in sub-section (5), for the words “existing law”, the words “existing law, within such time and in such manner as may be prescribed” shall be substituted and shall be deemed to have been substituted;

(e) in sub-section (6), for the words “goods held in stock on the appointed day subject to”, the words “goods held in stock on the appointed day, within such time and in such manner as may be prescribed, subject to” shall be substituted and shall be deemed to have been substituted;

(f) in sub-section (7), for the words “credit under this Act even if”, the words “credit under this Act, within such time and in such manner as may be prescribed, even if” shall be substituted and shall be deemed to have been substituted;

(g) in sub-section (8), for the words “in such manner”, the words “within such time and in such manner” shall be substituted and shall be deemed to have been substituted;

(h) in sub-section (9), for the words “credit can be reclaimed subject to”, the words “credit can be reclaimed within such time and in such manner as may be prescribed, subject to” shall be substituted and shall be deemed to have been substituted.

The post Big change in GST from 18.05.20 appeared first on GST Platform.

The 39th GST Council Meeting was held on 14th March 2020 in New Delhi where in key decisions were taken.

Key Outcomes of 39th GST Council Meeting are as follows 

• Interest for delay in payment of GST to be charged on the net cash tax liability w.e.f. 01.07.2017 (Law to be amended retrospectively).

• Where registrations have been cancelled till 14.03.2020, application for revocation of cancellation of registration can be filled up to 30.06.2020 (extension of period of application as one-time measure to facilitate those who want to conduct business).

• Relaxation to MSMEs from furnishing of Reconciliation Statement in FORM GSTR-9C, for the financial year 2018-19, for taxpayers having aggregate turnover below Rs. 5 crores;

• Due date for filing the Annual return and the Reconciliation Statement for financial year 2018-19 to be extended to 30.06.2020; and

         Read Also : 38th GST Council meeting decisions

• Late fees not to be levied for delayed filing of the Annual return and the Reconciliation Statement for financial year 2017-18 and 2018-19 for taxpayers with aggregate turnover less than Rs. 2 crores.

• A new facility called ‘Know Your Supplier’ to be introduced so as to enable every registered person to have some basic information about the suppliers with whom the conduct or propose to conduct business.

• The requirement of furnishing FORM GSTR-1 for 2019-20 to be waived for taxpayers who could not opt for availing the option of special composition scheme under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019 by filing FORM CMP-02.

• A special procedure is being prescribed for registered persons who are corporate debtors under the provisions of the Insolvency and Bankruptcy Code, 2016 and are undergoing the corporate insolvency resolution process, so as to enable them to comply with the provisions of GST Laws during the CIRP period.

• Extension of due dates for FORM GSTR-3B for the month of July, 2019 to January, 2020 till 24 March, 2020 for registered persons having principal place of business in the Union territory of Ladakh. Similar extension is also recommended for FORM GSTR-1 & FORM GSTR-7.

• Bunching of refund claims allowed across financial years to facilitate exporters

• Certain class of registered persons (insurance company, banking company, financial institution, non-banking financial institution, GTA, passenger transportation service etc.) to be exempted from issuing e-invoices or capturing dynamic QR code;

• The dates for implementation of e-invoicing and QR Code to be extended to 01.10.2020

• Continuation of existing system of furnishing FORM GSTR-1 & FORM GSTR-3B till September, 2020

• Seeking information return from Banks;

• To curb fake invoicing and fraudulent passing of ITC, restrictions to be imposed on passing of the ITC in case of new GST registrations, before physical verification of premises and Financial KYC of the registered person.

The post Outcome of 39th GST Council Meeting appeared first on GST Platform.

Changes in Rule 36(4) 

The limit for taking input tax credit on eligible invoices the details of which has not been uploaded by supplier has been reduced from 20% to 10% . Now only 10% ITC of uploaded invoices will be allowed for not uploaded invoices.

This provision will be applicable from 01.01.2020.Invoices on or after 01.01.2020 would be covered under this new rule.

New Rule 86A- Conditions for utilizing Input Tax Credit

The proper officer may restrict the facility of utilizing your credit available in Electronic Credit Ledger if

1. The credit has been taken without actual receipt of goods or services.

2. The supplier is found to be non existent from any place of business for which GST registration is taken by him.

3. The recipient is found to be non existent from any place of business for which registration is taken.

4. The tax in respect of such invoices has not been paid to the government .

5. The invoices on the basis of which Credit has been claimed is not in possession of the person claiming such credit.

Read Also : CBIC Notifications for Changes

Upon hearing if you satisfy the officer that conditions as specified above are no longer valid, he may allow the use of such amount in credit ledger.

The facility to utilize the credit will be initiated after the expiry of one year from the date of such restriction

Read Also : ITC FORMS IN GST

Changes in GST Waybill Rules

In rule 138(E) , earlier only GSTR3B is required to be filed by the taxpayers for generating waybill. Now this condition has been extended. Now If GSTR3B or GSTR1 are not filed for two consecutive tax periods waybill shall be blocked.

In short, GSTR3B and GSTR1 must be filed for the generation of waybill from the GST portal.

Late fees waiver and levy on GSTR1

As a one time measure, if your GSTR1 has not been filed for any tax period from July 17 to November 2019, you can file GSTR1 from 19.12.2019 to  10.01.2020 without any late fees.

After 10.01.2020 , late fees shall be applicable for filing late GSTR1 . Amount of late fees will be Rs 50 or 20 per day subject to maximum of 10000 as the case may be.

Quoting of DIN mandatory

CBIC has made it mandatory for quoting DIN on every communication, notices, summons etc issued to you the tax officers including emails communication .

This is done to maintain record and audit trail of the communications and validate authenticity of such notices, summons etc.

GST E Invoice

GST E invoices will be mandatory for you from April 2020 if your turnover exceeds 100 Crores for B2B transactions.

If turnover exceeds 500 Crores printing of QR Code will also be required on invoices.

Read Also : GST NEW RETURN 

GSTR9 and GSTR9C date extension

The due date to file GSTR-9 , GSTR-9C , GSTR-9A for FY 21017-18 has been extended till 31.01.2020 and for FY 2018-19 till 31.03.2020.

CHANGE IN POLICY FOR NON FILERS

To improve the compliance , CBIC has issued SOP for filing of GSTR-3B. As per the procedure :

• A system generated SMS will be sent to the you for reminding to file GSTR-3B  3 days before the due date.

• Immediately after the due date is passed if you failed to file GSTR-3B , SMS will be sent again to remind you of non filing.

• After 5 days of passing of due date , GSTR-3A notice will be issued requiring to file GSTR-3B within 15 days of GSTR-3A notice.

• If you failed to file return within 15 days , proper officer will assess your tax on Best Judgement basis taking into account the details in GSTR1 , Waybill , etc.

• The order will be issued in GST ASMT 13 and summary will be uploaded in DRC07

• If you file the valid return within 30 days of such order the proceedings will be deemed to be concluded.

• If you failed to file the returns even after 30 days , recovery proceedings will be initiated against you as per the provisions of Act.

The post GST RECENT UPDATES appeared first on GST Platform.