SKR Compliances In GST · FORM GST RET - 1 SIMPLIFIED NEW RETURN SYSTEM 1 • Auto – Populated...

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Ø Present System of Filing – GSTR 1 & GSTR 3B

Ø Simplified New Return System

ü Key Features of Monthly Returnü Key Features of Quarterly Returnü Brief Overview

Ø Transition to New Return System

CENTRAL BOARD OF INDIRECT TAXES & CUSTOMS (CBIC)

SCHEME OF PRESENTATION

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GSTR – 1 & GSTR 3B

PRESENT SYSTEM OF FILING

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SIMPLIFIED NEW RETURN SYSTEM

BRIEF OVERVIEW

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The original concept of four Tax returns in a month (GSTR-3B, 1, 2

& 3) was gradually curtailed to two tax

returns viz: GSTR-3B & 1.

01Proposed New Return

put up in Public Domain to seek

comments from the stakeholders. The

comments provided for incorporated while

designing of the New Returns.

03

New GST Returns – Simplified FORMS – NORMAL, SAHAJ &

SUGAM

04

The Govt. extended due dates for filing tax

returns as and when felt necessary.

Quarterly Returns were also prescribed for small taxpayers. Late Fee was also

reduced from time to time.

02


TRANSITION TO NEW RETURN SYSTEM

New Simplified

Returns

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01 02 03

NORMAL RETURN

Monthly / Quarterly (Normal) Return – FORM GST RET – 1

(Including amendments – RET-1A)

With 2 annexures (FORM GST ANX -1 & FORM GST ANX – 2)

SAHAJ RETURN

SUGAM RETURN


SIMPLIFIED NEW RETURN SYSTEM – AN OVERVIEW

Three key features of the Simplified New Return System

Quarterly Return -FORM GST RET – 2

(Including Amendments)


Quarterly Return -FORM GST RET – 3

(Including Amendments)


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APPLICABILITY CHART

QUATERLY

File Normal MONTHLY Return

Is Your Turnover below ₹ 5.0 Crores ??Yes No

Opt for Filing Period

MONTHLY

B2C Supplies + Inward Supplies under RCM

B2B + B2C Supplies + Inward Supplies under RCM

All Outward Supplies Note: - “Turnover” means “Aggregate Turnover” defined under section 2(6) of CGST Act, 2017 ‘


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Aggregate Turnover

New Return Type / Options

available

FORM Name & Filing Frequency

Determination of Turnover

More than ₹ 5.0 Crore FORM GST RET – 1 NORMAL – Monthly

Ø Newly Registered Dealer: For newly registered taxpayer turnover will be decided on the basis of Self Declaration made by them on estimated turnover.

Ø Other than above : For already registered Taxpayer it will be decided on the basis of Last year’s Turnover

Less than ₹ 5.0 Crore

(1). FORM GST RET – 1 NORMAL – Monthly

(2). FORM GST RET – 1 NORMAL – Quarterly

(3). FORM GST RET – 2 SAHAJ – Quarterly

(4). FORM GST RET – 3 SUGAM – Quarterly

A look at the options available for the taxpayers


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A Taxpayer can make following Outward / Inward supplies based on the Return Type selection


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BRIEF OVERVIEW OF NEW RETURNS SOME OTHER KEY ASPECTS

Particulars NORMAL SAHAJ SUGAM

Type of Returns available

Type of returns available :-Option 1 : MonthlyOption 2 : Quarterly

Only QUARTERLYreturn option is available.

Only QUARTERLYreturn option is available.

Switching from One type of return to another

NORMAL (Monthly) can switch over to:Option 1: SAHAJ orOption 2: Quarterly (Normal) returnFrequency Allowed: ONLY once in a financial year at the beginning of any quarter.

SAHAJ can switch over to:Option 1: SUGAM orOption 2: Quarterly (Normal) returnFrequency Allowed: more than once in a financial year at the beginning of any quarter.

SUGAM can switch over to:Option 1: Quarterly (Normal) returnFrequency Allowed: more than once in a financial year at the beginning of any quarter.

Whether ITC related to Invoices which are not uploaded by supplier (Missing Invoice) will be allowed or not

ITC Allowed , on self-declaration basis

ITC Not Allowed ITC Not Allowed

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BRIEF OVERVIEW

• Annexure of Outward Supplies, Import & inward supplies attracting RCMFORM GST ANX - 1

• Annexure of Auto-drafted inward suppliesFORM GST ANX - 2

• Monthly / Quarterly (Normal) ReturnFORM GST RET - 1

• Sahaj ReturnFORM GST RET – 2

• Sugam ReturnFORM GST RET – 3

• Payment of Self Assessed TaxFORM GST PMT – 8


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ANNEXURE - GST ANX - 1


1• ANX – 1 – Details of outward supplies (including Exports, SEZ supplies, deemed exports), Imports &

Inward supplies attracting RCM

2• Invoices flow to be unidirectional. Invoices can be uploaded and amended by Supplier only

3• Real time uploading of invoices up to 10th of subsequent month

4• Recipient GSTIN required in certain cases like B2B supplies (Table 3B), supplies to SEZ with / without

payment of tax (Table 3E & 3F), Deemed Exports

5• Six Digits HSN / SAC to be reported by large taxpayers for goods as well as services

6• Tax amount to be computed by system and will not be editable except by the way of issue of credit /

debit notes.

7• Place of Supply to be reported mandatorily for all supplies

8• ANX – 1 provides for all editing or amendments from the supplier’s side only

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ANNEXURE - GST ANX - 2


1• Invoices cannot be amended by the Recipient

2• Action up to 10th of the Following Month – Accept, Reject or Keep Pending

3• Deemed Acceptance is no action taken by the Recipient

4• ITC to be credited only on Filing ANX - 2

5• Status of Supplies Return – Filed or Not Filed

6• Functionality to Reject an accepted Invoice

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FORM GST RET - 1


1• Auto – Populated from ANX – 1 and ANX - 2

2• Excess Tax Collected can be declared in RET - 1

3• Rejection & Pendency to be auto-populated in Table 4 – RET - 1

4• Interest & Late Fees for late filing, late payment to be computed by system

5• Challan making facility if balance in e-cash ledger is insufficient to discharge liability

6• Facility to file NIL Return through SMS.

7• Place of Supply to be reported mandatorily for all supplies

8• TDS / TCS details - Amount to be credited in E – Cash Ledger based on returns filed in FORM GSTR – 7

& 8

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KEY FEATURES OF MONTHLY RETURN


JULY 2017- JUNE 2019i.Total GST Registrations has doubled up to 1.22 Cr.ii.Total number of GST Returns filed – 28 Cr.

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(1). All Taxpayers, with a few EXCEPTIONS, will file ONE Monthly Return.



KEY FEATURES OF MONTHLY RETURN (1/11)

( 2 ) . E xc e p t i o n s a r e s m a l l taxpayers who have opted for quarterly filing, composition dealers, ISDs, Non-resident registered person, person liable to deduct TDS u/s 51

(3). Return Filing dates to be s t a g g e r e d d e p e n d i n g o n turnover of taxpayer. To be calculated based on reported turnover in 2017-18, annualized for full year

(4). Due date for filing of return by large taxpayer shall be 20th of the next month

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(1). Continuous Uploading o f i n v o i c e s b y t h e Supplier anytime during the mont h ( ANX – 1) which will be visible to the recipient (ANX -2)

(2). Such Uploaded Invoice only will be the valid document for ava i l i n g I n p u t Tax C r e d i t . U p l o ad ed I nvo i c e s ca n b e viewed by the recipient on real time basis

(3). Recipient shall be able to view the status of filing of return by the supplier after its due date.

(4). This would enable the rec ip ient to be aware whether the tax liability on purchases made by him has been discharged by the supplier


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( 1 ) . Ta x e s p a y a b l e o n invoices uploaded by the suppl ier by 10th of next month can be availed as ITC and shall be posted in the ITC table of the recipient’s return by 11th of the said month.

(2). Invoices uploaded after 10th of next month by the supplier would be included in supplier’s return for the relevant month and the tax l i a b i l i t y s h a l l b e d i s c h a r g e d accordingly.

(3). Tax paid on inward supplies received after 1st but before 20th become eligible for availing ITC, provided that the invoice for the same is issued in the relevant month and uploaded by the supplier by 10th of next month.

(4). Currently a recipient i s e l i g i b l e fo r I TC o n goods/services received only during the relevant month.

(5). During the transition phase of six months, the recipient would be able to avail ITC on self-declaration basis even in respect of invoices not uploaded by the supplier within the prescribed time, using the facility of availing ITC on missing invoices.


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If the return is not filed by the supplier after uploading the invoices, it shall be treated as self-admitted liability by the supplier and recovery proceedings shall be initiated against the said supplier after allowing a reasonable time to file the return and pay tax.


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(1). If ITC is availed on missing invoices by the recipient and the missing invoices are not uploaded by the supplier within the prescribed time period, then such ITC avai led shall be recovered from the recipient.

(2). Missing invoices shall be reported by the supplier in the main return for any tax period with interest or penalty as applicable.

(3). Information about missing invoice uploaded by the recipient shall be made available to the supplier.

(4). Reporting of missing invoices by recipient can be deferred up to two tax pe r i o d s to a l l o w recipient to follow up a n d g e t t h e m i s s i n g invoice uploaded from the supplier.


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There shall not be any automatic reversal of input tax credit in the hands of recipient where tax has not been paid by the supplier.

In case of default in payment of tax by the supplier, recovery shall be first made from the supplier subject to exceptional circumstances such as missing taxpayer, connivance between recipient and the supplier etc. where the recovery of ITC from the recipient shall be made through a due process of service of notice and issue of order.


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(1). Locking of invoices can be said to resemble a handshake between t h e r e c i p i e n t a n d s u p p l i e r i n d i c a t i n g a c c e p t a n c e o f t h e transaction reported in the invoice.



(2 ) . Fac i l i t y fo r lo c k i ng o f invoices by the recipient shall be available before fil ing of return.

(3). In cases of large number of invoices, deemed locking of invoices shall be presumed on the uploaded invoices other than for invoices rejected or kept pending by the recipient

(4). A wrongly locked invoice shall be unlocked online by the recipient h i m s e l f s u b j e c t t o r e v e r s a l o f I T C a n d o n l i n e c o nf i r m at i o n thereof.


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If the supplier files an incorrect GSTIN of a recipient, such invoice would appear on the viewing facility of another taxpayer who is not the recipient of such supplies and therefore ITC will not be admissible to him. The recipient shall report such invoices as rejected invoices.


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23

4

1



(1). There would be a facility to file two amendment returns for each tax period within the time period specified in Section 39(9) of the CGST Act, 2017.

(2). The time period as per Section 39(9) will be the due date for furnishing of return for the month of September or second quarter following the end of the financial year, or the actual date of furnishing of relevant annual return, whichever is earlier

(3). Liability will be allowed to be pa i d a l o n g w i t h f i l i n g o f t he amendment return. ITC can also be used for payment of the liability in the amendment return.

(4). If there is a change in liability of more than 10% through the amendment return, a higher late fee may be prescribed to ensure that reporting is appropriate in the regular return.


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For a newly registered taxpayer and a taxpayer who has defaulted in payment of tax beyond a time period and/or above a threshold, uploading of invoices shall be allowed only up to a threshold amount or only after the default in payment of tax is made good, respectively.

If the conditions are not satisfied due to default in payment of tax by the supplier, the invoice of such supplier shall not be populated in the viewing facility of the recipient and consequently, the recipient would not be able to avail ITC on such invoices till such default for the past period is made good by the supplier


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Ø Tax amount shall be computed by system based on taxable value and tax rate. The tax amount so computed will not be editable except in case of credit/ debit notes issued.

Ø Reverse charge supplies will be reported only by recipient and not by supplier. Such supplies shall be reported GSTIN wise (wherever applicable) and net of credit and debit notes.

Ø All supplies specified in Schedule III of CGST Act shall be reported under ‘No supply’ in the main return. It will include high sea sale and bonded warehouse sale also.

Ø Place of supply shall have to be reported mandatorily for all supplies.

Ø Supplies made through e-commerce portal maintained by other operators shall be reported at consolidated level.


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KEY FEATURES OF QUARTERLY RETURN


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03 04

05

0601

02

KEY FEATURES OF QUATERLY RETURN

(1). Small taxpayers having a turnover up to ₹ 5 Crore in the last financial year shall have an option to file quarterly return with m o n t h l y p ay m e n t o f ta xe s o n s e l f -declaration basis. The small taxpayer can also file monthly return like a large taxpayer.

(2). Two simplified quarterly returns ‘Sahaj’ (only B2C outward supplies) and ‘Sugam’ (both B2B and B2C outward supplies) are proposed for smal l taxpayers having purchases and sales in the domestic market.

(3). Small taxpayers would continue to pay taxes on monthly basis using a payment declaration form, where tax liability and ITC will be self-declared, to make the payment.

(4). The payment declaration form shall only allow full payment of the liability arising out of uploaded invoices. Late payment of tax liability including that in first and second month of the quarter shall attract interest liability.

(5). The payment declaration form shall only allow full payment of the liability arising out of uploaded invoices. Late payment of tax liability including that in first and second month of the quarter shall attract interest liability.

(6). Taxpayers who do not have any purchases, any ITC and any output tax liability in any quarter of the financial year shall file one NIL return for the entire quarter. HSN wise details are also required to be provided at 4 digit level or more in the quarterly return.


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TRANSITION

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Offline Tools Annexure Trials New Return

Upload Invoices GSTR ANX – 1

A prototype of the offline tool has a l r e a d y b e e n s h a r e d o n t h e common portal to give the look and feel of the tool to the users. The look and feel of the offline tool would be same as that of the online portal

U s e rs w o u l d b e a b l e t o u p l o a d invoices using the FORM GST ANX-1 o ff l i n e t o o l o n t r i a l b a s i s fo r familiarisation. Further, users would also be able to view and download, the inward supply of invoices using the FORM GST ANX-2 offline tool under the trial program.

A l l t a x p a y e r s s h a l l b e f i l i n g F O R M G S T R E T -01 and FORM GSTR-3B shall be completely phased outM

ay, 2

01

9


TRANSITION TO THE NEW RETURN

July

, 20

19

July

to

Se

p 1

9

New return system (ANX-1 & ANX-2 only) would be available for trial for taxpayers to make themselves familiar. This trial would have no impact at the back end. In this period, taxpayers shall continue to fulfil their compliances by filing FORM GSTR-1 and FORM GSTR-3B

Oct

19

on

war

d F O R M G S T A N X - 1 s h a l l b e m a d e compulsory and FORM GSTR-1 would be replaced by FORM GST ANX-1. The large taxpayers (i.e. those taxpayers whose aggregate annual turnover in the previous financial year was more than Rs. 5 Crore) would upload their monthly FORM GST ANX-1 from October, 2019 onwards

Jan

, 20

On

war

d

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DIRECTORATE GENERAL OF GOODS & SERVICES TAX, NEW DELHI

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CBIC Mitra Helpdesk

Toll Free No. 1800-1200-232

[email protected]

Cbec-gst.gov.in>HELP>SELF SERVICE

CBIC Mitra Helpdesk

S.K. Rahman Commissioner – IT & CV

[email protected]

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LATEST GSTC DECISIONS – KEY HIGHLIGHTS


RATE RATIONALIZATION

On the way to Standardize GST Rates b t w. 1 2 % t o 1 8 % . O f t h e 1 , 2 1 6 commodities, which are used at present, broadly 183 are taxed at zero rate, 308 at 5 %, 178 at 12% and 517 at 18 %.06 01

02

0304

05

SINGLE CASH LEDGER

Rationalization of Cash Ledger in such a manner that there is only one Cash Ledger from which all components of each respective tax are allowed to be paid.

EASIER REFUND DISBURSAL

All refund orders on FORM GST RFD-04 / 0 6 s h o u l d b e i s s u ed o n G ST N w i t h o u t a n y e x c e p t i o n b y b o t h authorities.

DUE DATE - ANNUAL RETURN

Due date for filing Annual Returns in G S T R – 9 a n d G S T R – 9 A a n d reconciliation statement in GSTR – 9C extended till 30th June, 2019.

NEW RETURN SYSTEM

Introduction of New Return System on trial basis from 01.10.2019 and on mandatory basis from 1-1-20. SAHAJ & SUGAM Returns for small taxpayers.

REDUCTION IN LATE FEE & SECTION 50 AMENDMENT

Reduction in late fees if the requisite returns in FORM GSTR-1, GSTR-3B and GSTR-4 for July, 2017 to September, 2018 are filed by 31st March, 2019. Amendment in Section 50 – CGST Act, 2017 – to allow payment of interest on net cash liability.

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LAW AMENDMENTS APPROVED – IN PRINCIPLE


ISSUES REFERRED TO VARIOUS COMMITTEES

31ST GSTC – KEY HIGHLIGHTS

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32nd GSTC – KEY HIGHLIGHTS


COMP. SCHEME FOR SMALL SERVICE PROVIDERS

Composition Scheme for small service providers up to annual turnover of 50 lacs with a tax rate of 6%

06 01

02

0304

05

ACCOUNTING / BILLING SOFTWARE

Provision of free accounting and billing software to small taxpayers by GSTN.

THRESHOLD LIMIT

Two Threshold Limits, 20 Lacs and 40 Lac s a s p er t h e c ho i c e o f S tates . Operational Details to be worked out.

SCOPE OF IT-GRC

Expansion in scope of IT-GRC to deal cases having non – technical nature on merit basis.

GST AMEND. ACT 2018Amendment to CGST, IGST, UTGST, GST (Compensation to States Act) to be notified with effect from 01.02.2019 and consequential amendments in Circulars & notifications to be issued.

COMPOSITION SCHEME FOR GOODS

GoM recommended to increase the limit of annual turnover for compos it ion scheme to 1.50 crore w.e.f. 1st April, 2019. Simplification under Composition Scheme by way of quarterly payment with annual return.

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E – Invoicing

Ø The Council also decided to introduce electronic invoicing system in a phase-wise manner for B2B transactions.

Ø E-invoicing is a rapidly expanding technology which would help taxpayers in backward integration and automation of tax relevant processes.

Ø It would also help tax authorities in combating the menace of tax evasion.

Ø The Phase 1 is proposed to be voluntary and it shall be rolled out from Jan 2020

E – Invoicing :

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TRADE FACILITATION MEASURES


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DIRECTORATE GENERAL OF GOODS AND SERVICES TAX, NEW DELHI

Trade facilitation …..

Threshold LimitTo extend threshold limit for inter State supply of goods as well and further to extend threshold limit to E – Commerce operators as well.

Quarterly Tax Payments:Up to certain limits quarterly tax payments may also be provided to SMEs

Distinction b/w B2B & B2C Invoices:Provide for distinction between B2B & B2C Invoices.

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GRIEVANCE REDRESSAL PORTAL FOR GST

Grievance Redressal portal for lodging complaints by taxpayers and other stakeholders. Complaints with respect to portal can be lodged here. Facility to uploads screenshots of pages –

Self Help Grievance Portal.

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GST PORTAL – A COMPREHENSIVE PORTAL

Grievance / Complaints can be lodged under User Services head in GST

Portal.

Various Offline Tools available for downloads for quicker / easier filing

of Returns

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ALL ABOUT E – WAY BILL !!

New enhancements in E – way Bill System / GST E – way Bill website

regularly updated.

Complete details provided on the portal with respect to Generation of

E- way Bills / Uses of e – way bill/ Contents / Validity of E – way Bill

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CONTACT DETAILS OF NODAL OFFICERS!!

Complete details of nodal officers for IT – Grievance Committee / Nodal Officers for MSME Outreach programmes / Nodal officers of State / UT for e-way bill system / Contact details for various “Seva kendra” pan India are available to all taxpayers for ready reference.

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SABKA VISHWAS (LEGACY DISPUTE RESOLUTION) SCHEME, 2019

THE FINANCE (NO.2) ACT, 2019

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Tax dues of

Rs. 50 lakhs or

less

Tax dues of

more than Rs.

50 lakhs

Where a Show Cause Notice has

been issued and which is pending as

on 30.06.2019

Duty or tax amount

stated in the notice

Where one or more Appeals arising

out of an Notice has been files and

the same is/are pending as on

30.06.2019

Duty or tax amount

disputed in the

appeal

Where both, the assessee and the

department have preferred appeal

against an

order and which are pending as on

30.06.2019

Aggregate of duty or

tax amount disputed

in the appeals of the

assessee and the

department

Tax relief

Status of the matter Nature of Tax dues

70% of the tax

dues

50% of the tax

dues

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Tax dues of

Rs. 50 lakhs or

less

Tax dues of

more than Rs.

50 lakhs

Where an enquiry, Investigation or

audit is undertaken and the amount

is quantified on or before

30.06.2019

Duty or tax amount

quantified during

such proceedings

70% of the tax

dues

50% of the tax

dues

In case of amount in arrearsDuty or tax amount

in arrears

In case of amount indicated as

payable in Return but not paid by

the assessee

Duty or tax amount

indicated in the

Return


Tax relief

60% of the tax

dues

40% of the tax

dues

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Tax dues of

Rs. 50 lakhs or

less

Tax dues of

more than Rs.

50 lakhs

Where a Show Cause Notice has

been issued for late fee or penalty

only in the amount of duty or tax

has been paid in full or is nil

Not applicable

In case of duty or tax are payable on

account of a voluntary disclosureDuty or tax amount disclosed

100% of the penalty or late

fee

No Relief of any kind

whatsoever


Tax relief

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Scheme Open from 01.09.2019 to 31.12.2019

https://youtu.be/SUhsaHsi8Rw

https://youtu.be/_4_H67Ft3HI

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S.K. RahmanCOMMISSIONER (IT & COMPLIANCE VERIFICATION)

Directorate General of Systems,Central Board of Indirect Taxes and Customs

011-26113619, [email protected]

CBEC Help DeskToll Free : 1800 1200 232

Email : [email protected]

GSTN Help DeskToll Free : 0124-4688999

Email : [email protected]

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SKR Compliances In GST · FORM GST RET - 1 SIMPLIFIED NEW RETURN SYSTEM 1 • Auto – Populated...

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