TAXGyaAan

As per the recent tweet of the Central Board of Indirect Taxes and Customs (‘CBIC’), time limit to furnish annual return (Form GSTR-9/9A) and reconciliation statement (Form GSTR-9C) for the financial year 2018-19 has further been extended from September 30, 2020 to October 31, 2020. The screenshot of the tweet is as under: SOURCE : CBIC NOTIFICATIONS Disclaimer :  TAXGyaAan is meant purely for the educational purpose of Tax Laws and Regulatory Updates. It will not be treated as professional advice. This Blog should not be substituted for professional advice. For specific Queries, please post in the comments section.

The Goods and Services Tax Network (GSTN) has announced that it will provide the system computed values of GSTR-1 in Form GSTR-3B. The system calculated values will be made available in a PDF statement. As of now, this facility is made available for the monthly GSTR-1 filers, and it will be extended to the quarterly GSTR-1 filers in due time. The PDF mentioned above will be prepared based on the values reported by the seller in their GSTR-1 for the respective tax period. This PDF will be available on the GSTR-3B dashboard, from the tax period of August 2020 onwards. It contains the information of GSTR-1 filed by them on or after 4th September 2020.  This facility is available to all taxpayers registered as a regular taxpayer, SEZ unit, SEZ Developer and casual taxpayer. Also, this facility is expected to make the filing of Form GSTR-3B easier for taxpayers. The following Tables of Form GSTR-3B will be auto-drafted, based on values reported in GSTR-1 statement: 3.1(a): ...

Section 31 (7) of CGST Act,2017 provides that Notwithstanding anything contained in sub-section (1), where the goods being sent or taken on approval for sale or return are removed before the supply takes place, the invoice shall be issued before or at the time of supply or six months from the date of removal,whichever is earlier.   Notification no. 66/2020 of Central Tax dated 21st September 2020 provides that where any goods have being  sent or taken out of India on approval for sale or return , which falls during the period from the 20 March, 2020 to the 30 October, 2020, and where completion or compliance of such action has not been made within such time, then, the time limit for completion or compliance of such action, shall stand extended up to the 31 October, 2020. SOURCE : CBIC NOTIFICATIONS Disclaimer :  TAXGyaAan is meant purely for the educational purpose of Tax Laws and Regulatory Updates. It will not be treated as professional advice. This Blog should not be s...

  The Finance Act, 2020 has made an amendment by insertion of sub-section (1H) in section 206C of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) which is effective from 01.10.2020. As a result of the said amendment, a seller who receives any amount as consideration for sale of any goods of the value or aggregate of such value exceeding fifty lakh rupees in any previous year shall at the time of receipt of such amount collect from the buyer, a sum equal to 0.1 percent of the sale consideration exceeding fifty lakhs as income tax. This provision is applicable only on those businesses whose turnover of Last F.Y. is more than Rs. 10Crs If the buyer has not provided PAN or Aadhar, then TCS rate will be 1%. Note : For F.Y. 2020-21 rate of TCS is 0.075%. This provision is not applicable if the buyer is: Ø       Central Government, state government, an embassy, a high commission, legation, commission, consulate and the trade representation of foreign state. ...

Section 16 read with Rule 37 ( 2 ) Non-Payment within 180 Days   The reversal of the ITC is based on the provisions given in Section 16 of the CGST Act,2017. Where a recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days  (180Days) from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon, in such manner as may be prescribed.  As a dealer, you would have availed ITC on inward supplies. But if you fail to pay the invoice amount to the supplier within 180 days the ITC must be reversed. If part of the invoice is paid the ITC will be reversed on a proportionate basis. This means that the business must maintain the creditors aging and basi...

  Earlier GST law has made quoting original Invoice Number mandatory for reporting Debit/Credit Note on GST portal. This system was inconsistent with the GST law which says that a single Debit/Credit note can be issued for multiple invoices. Now, GST portal has provided following facilities to the taxpayers: Ø   Report a single Debit/Credit Note for multiple invoices without giving reference of Original Invoice Number. Ø    Taxpayers  need to select supply type from drop down to identify the table to which Debit/Credit note pertains. Ø    Taxpayers  need to select Place of Supply to identify whether supply is inter state or intra state. Ø   Debit/Credit note can be reported with tax amount but without any taxable value i.e. if debit/credit note is issued for difference in tax rate, then note value can be reported as zero and only tax amount is to be entered in such case. Note: The above changes have been made in GSTR 1 and GSTR 6....

Goods & Services Tax commonly known as GST was formally ushered in at a late-night session of parliament, being dubbed as the flag bearers of Economic Independence. However, even after 3 years, the promise still looks nothing but a far-fetched thought or an illusion. There could be "n" no. of reasons which can convince you How "GST" has failed to make the desired effect or impact and how businesses are still coping with the Law. One Burning Issue pending for 3 years since the advent of GST is the  "Transitioning of tax credits from the erstwhile regime into the GST regime" . Right from the time when GST was launched, there has been a lot of clutter around various aspects of transitional credit provisions. Sad to say, even after 3 years of GST enactment, the issue is still undecided. Whether the Input Tax Credit of earlier Laws is eligible to be carried forward under GST after 27th December 2017 i.e. the due date of filing TRANSITION FORM-1 under GST? o...

CBIC vide  F. No. CBEC-20/01/08/2019-GST dated September 18, 2020  has provided for Administrative instructions for recovery of interest on net cash tax liability w.e.f. July 01, 2017.   Based on the recommendations of the 35th   meeting of the GST Council held on   June 21, 2019 the provision of section 50 was amended vide section 100 of the Finance (No. 2) Act, 2019 to provide for charging interest on the net cash tax liability. The said amendment was to be made effective from a date to be notified by the Government. Accordingly, the said provision was made effective vide notification No. 63/2020 Central Tax dated August 25, 2020, w.e.f. September 01, 2020. The GST Council, in its 39th   meeting, held on March 14, 2020 recommended interest to be charged on the net cash tax liability w.e.f. July 01, 2017 and accordingly, recommended the amendment of section 50 of the CGST Act retrospectively w.e.f. July 01, 2017. The retrospective amendment in the GST...

What is Input Service Distributor (ISD)? As per Section 2(61) of CGST Act, “Input Service Distributor” has following characteristics: Ø       It is an office of the supplier of goods or services or both. Ø       It receives tax invoices issued under section 31 towards the receipt of input services. Ø       It issues a prescribed document for the purposes of distributing the credit of central tax, state tax, integrated tax or union territory tax paid on the said services. Ø       Such document is issued to a supplier of taxable goods or services or both having the same Permanent Account Number as that of the said office. Registration Requirement for Input Service Distributor (ISD) Section 24 of the CGST Act (read with Rule 8 of CGST Rules, 2017), requires an office of the supplier which intends to act as Input Service Distributor (ISD), to separately obtain registration as ISD. Returns for Input Service Distributor (ISD)...