GST: Aadhaar Authentication Now A Prime Requirement To Qualify As Dealer

GST Registration from Aadhaar Card

Paying heed to the current scenario where GST evasion is plaguing the society, GST governance is doing anything possible to eradicate the plague. Putting one step forward towards the mission, the government brought an all-new provision according to which Aadhaar authentication or physical verification is mandatory for all the new dealers registering in 2020.

Earlier Aadhaar authentication was optional but now it has become the prime requirement for anyone to qualify as a registered dealer in India.

Bihar deputy CM and one of the ministers of GST Council Sushil Kumar Modi said “In the last two years, we have encountered a good number of deceitful dealers making fake invoices and misleading tax governance. As a measure to avoid such a situation, Aadhaar authentication will now become mandatory for registering as a dealer, which was earlier optional”

Dealers for whom Aadhaar authentication is not done will have to go through a physical verification which will be a three days course monitored by a government official.

Making GST refunds to the taxpayers is another big deal for tax governance, therefore GSTN landed on the decision of issuing all refund payments online from a single source, either by the Central GST or State GST. Applicable from September 24

GSTN proposed to enclose much simpler rules in the system that may be launched from 1 January 2020, said Bihar deputy CM Sushil Kumar Modi.

Know the Benefits of Registered Taxpayers Due to New GST Laws

Benefits of GST After New GST Law

Several changes have been made to the CGST Act, which will benefit the taxpayers in terms of ensuring compliance. The recent update in the different sections of the CSGT Act is related to the tax payments and interest, which will ease out the process of GST return filing for taxpayers. It will also reduce the interest burden from taxpayers.

Here are some of the major amendments that have been made under the CGST Act and how it will benefit the registered taxpayers:

For suppliers of goods, the threshold limit for GST registration has been increased to INR 40 lakh from INR 20 lakh. This change in threshold limit has been suggested by the GST Council during its 32nd meeting, which has now been approved by the Parliament and amended in the CGST act under section 22. Due to this new amendment, the small and medium scale suppliers will be benefited the most. Now, such small suppliers will be able to avoid paying high taxes thanks to the higher tax exemption limit.

Although this higher tax exemption will only be applicable to the supplier of goods. For suppliers in other sections or those selling goods as an e-commerce operation, registration under GST would still be mandatory for inter-state supplies.

For matters related to GST registration, a new subsection has also been added under section 25, that describes the entire registration process. Aadhar authentication for all GST-registered taxpayers, including the first-timers, has also been made mandatory by the government. The registration allocated to a particular person will stand invalid if he/she has not done Aadhaar authentication. This government decision also shows its intention to make Aadhar as a common proof of authentication across all the legal departments.

The best news for taxpayers is that now they will also be able to move their wrongly paid taxes to the correct head as per the latest rectification to section 49 of the CGST Act. In the past, the inability to move wrong paid taxes has made taxpayers hassled a lot, as they were required to pay those taxes again. Now, with this new update, any amount, i.e., taxes, interest, penalties or fee update in electronic cash ledger can be transferred to correct head under IGST, CGST or SGST/UTGST

Another decision that will particularly benefit the registered taxpayers a lot include a reduction in the interest amount levied on taxpayers due to late payment of taxes. Now, with the amendments in section 50 related to interest provisions, taxpayers will only have to pay interest only on that amount of tax which has been paid by debiting the electronic cash ledger. In simple words, the tax amount which has been paid using cash.

Earlier, the taxpayers were bound to pay interest on the entire portion of the tax that was unpaid beyond the due date. This was also inclusive of the input tax credit, which has been critiqued to be unfair or against the established practices by tax experts. Now, the rectification will help taxpayers avoid higher interest burden on them, and even nil interest burden in case of GST payment done utilizing input tax credit.

A new subsection under section 10, which governs the composition scheme has also been added to include the Service Providers under the ploy of this scheme. All Service Providers, having an annual turnover of up to INR 50 lakh and mixed suppliers (supplier of both goods & services) are now also allowed to be a part of the GST composition scheme. This amendment also makes compliance easier for small businesses in terms of filing their returns and maintenance of books of accounts.

Under the revision of CGST Act, a new option for return filing has also been introduced for the specified taxpayers. This return filing option now allows the specified taxpayers to file quarterly returns, unlike the monthly ones applicable earlier. The people option for quarterly returns would still require to make monthly tax payments. Similarly, for composition taxpayers, they need to make tax payments on a quarterly basis while return filing needs to be done annually. This will benefit the small taxpayers in terms of reducing the filing burden and reducing the GST cost associated with it.

The recent changes in the CGST Act also give an indication of the Indian government initiative of moving towards a cashless economy. A new section, namely 31A added in the CSGT Act is a clear reflection of this initiative. This new section added in the CGST Act mandates certain specified suppliers to give the prescribed mode of electronic payments to their recipients. This has been done to curb the usage of cash and to prevent tax evasion, a major problem faced by taxmen today.

In order to stop suppliers from claiming the undeserved benefits under input tax credit and not transferring this benefit to end customers in the form of reduced goods or service prices, the National Anti-profiteering Authority – constituted under section 171 has been formed, which can now force penalty up to 10 per cent on suppliers engaged in such malpractices. This amendment has also been made keeping the end customers in mind, and to pull chains around suppliers engaged in such unethical behaviour.

In conclusion, it can be easily said that the recent amendments made under GST have several welcome moves for the registered taxpayers. It is also anticipated that the journey of GST 2.0 will be easier for everyone, including taxpayers and taxmen, with a more simplified tax approach.

Electronic Assessment of ITR Goes into Effect Across the Nation

Electronic Assessment of ITR

IT Department’s scheme of electronically assessing tax returns is made effective with the government’s announcement for e-assessment 2019 on Friday. This scheme of merging tax assessment with technology will make tasks easier for taxpayers at the same time eroding the chances of various tax frauds. Though there are no interactions between tax officials and taxpayers, personal representation is allowed under certain circumstances like appeals against assessments.

The scheme is initiated especially to reduce the human involvement in tax assessment and other tax-related scrutiny which in return will erase the chances of fraud or corruption.

The finance ministry had introduced an enabling provision for the scheme in the law through the Finance Act of 2018.

The department is accountable for the aftermath of the decision it takes, therefore, to ascertain the practicality of the new system, the government is running a pilot in every city since last few years.

Read Also: Step by Step Guide To File Income Tax Return FY 2018-19

Experts believe that the new system will considerably reduce the taxpayer’s visits to income tax offices which will lead to ensuring privacy in tax-related proceedings.

Rakesh Nangia, managing partner Nangia Advisors says that tools like artificial intelligence, machine learning, video conferencing, and mobile applications are some measures that developed economies have already embraced in their e-assessment processes. The idea of e-assessment is applaudable but the goals can only be achieved when the administrative system is rigid and accountable to the needs of the taxpayer.

In case of an appeal, after completing the electronic scrutiny of assessment, appeals would be taken forward by the personal representatives or an appointed council.

Archit Gupta, Founder and CEO of ClearTax says that the scheme is going to establish transparency and polish the image of the income tax department. “As it is said that no kind of personal approach is accepted until it is requested by the taxpayer, which will also be conducted through video conferencing, this is a major step towards confidence building. All these provisions collectively will impact tax compliance positively,” said Gupta.

37th GST Council Meet to Held in Goa on Sept 20, Less Possibility of Rate Reduction

The Goods and Services Tax (GST) Council is all set to hold its 37th meeting in Goa on September 20. There are fewer chances that the council will consider a reduction in rates of GST.

However, some industries, including automobile, biscuits and FMCG, are looking forward to getting some relaxation in the current GST rates, owing to the recent drop in the growth. And if the latest updates are to be believed, the GST Council might actually consider lowering the tax rates for these industries. The automobile sector has requested to cut GST on passenger vehicles from the current 28% rate to a lower 18% rate. However, the Council will have to properly consider the possible impacts on the revenue, if and when it decided to reduce the GST rate on these items.

Major Biscuit companies, including Parle and Britannia, has raised the issue of higher GST on their products, requesting a cut in tax rate from current 18% to 12%. In addition, the GST Council, in its upcoming meeting, is also likely to discuss the matter of raising the 5% tax slab to up to 8%. “These proposals will be placed before the council,” said a senior government official.

During last week, when Finance Minister Nirmala Sitharaman questioned about the demand for GST rates reduction on biscuits, she said if State Finance Ministers have understood GST as a reason behind closing down of branded companies, she would like to hear from them.

“After all, the GST Council is not just the Union government. I would want many of the GST related issues discussed as issues that affect the States too and GST related decisions are not unilaterally taken by the Central government. So, I like to hear States Ministers much before all of us together take a call on it,” she had said.

According to a senior official of the Finance Ministry, as of now, no proposal concerning rate reduction on any item put forward for discussion. In terms of revenue, the Finance Ministry is going through a tough phase. The average revenue collection for the current fiscal year is aimed over INR 1 lakh crore which would be sufficient to fulfil the reduced target of revenue collection proposed in the recent budget.

The revised GST collection target which the Finance Minister proposed stands at INR 6.63 lakh crore which was earlier INR 7.61 lakh crore. If it is combined with State GST (SGST), the average monthly collection will calculate around INR 1lakh crore which was suggested INR 1.14 lakh crore (in interim budget data). Reduction in revenue collection target does not mean that the government needs less revenue. Contrastly, there is a need for more funds so that the government can meet the rising expenditure needs and could cover the fiscal deficit.

Review GST Return Filings

According to the prescribed rules, the GST Council meeting has to be organised at least once every three months. For the upcoming Goa meeting, the state government has already been requested, which has been accepted. The topics which are expected to be discussed during the meeting could include review return filings and phased introduction of new return forms. Also, the council could focus on action should be taken against the non-fillers as well, like debarring them from the issuance of e-way bill. Till now, on an average 20 per cent of taxpayers did not file the return by the last date which affects overall revenue collection.

Read Also: GST Council 1st Meeting to 36th Meeting: All You Need to Know

The council meeting has been conducted 36 times and no such situation arouse till now that required voting to conclude any matter. The GST Council has taken 1,064 decisions till its 34th meeting which include 219 decisions from the GST Implementation Council (GIC). As on May 14, around 1,006 decision taken by the GST council has been implemented successfully while only 58 decisions (of which 39 were unique issues) are pending to implement across the country. Percentage-wise, the GST Council has implemented 94.5 per cent of its decision taken, which is in itself a big achievement and all the decisions taken by the regulatory body were unanimous.

GST Council 1st Meeting to 36th Meeting: All You Need to Know

GST Council Meeting Updates

Find all the latest updates on GST council meetings held after the implementation of goods and services tax. In the 36th GST council meeting, the govt and the group of minister took significant decisions for the GST rate on electric vehicles, due date extended for CMP 02 & CMP 08, etc.

Here is the latest GST council meeting decision below, order wise:

36th GST Council Meeting Updates

  • GST rates on all the electric vehicles are now 5 per cent down from 12 per cent applicable from 1st August 2019
  • Electric vehicle chargers also reduced to 5 per cent from the earlier 18 per cent rate
  • Electric buses having occupancy capacity of more than 12 people exempted from GST The rates are applicable from 1st August 2019
  • GST form CMP 02 filing due date has been extended from 31.07.2019 to 30.09.2019
  • GST Form CMP 08 self-assessed tax filing due dates for the time period of April 2019 to June 2019 now extended to 31st August

35th GST Council Meeting Updates

  • New GST return system got approval by the GST Council.
  • Fitment Committee will look forward to the curtailment of GST rate on electric vehicles in the next council meeting.
  • The effective date to disallow e-way bill generation if GST Returns are Not Filed for more than 2 months, has been extended till 21st August 2019.
  • The proposal regarding the introduction of e-invoicing got approval by the GST Council.
  • GST Council green signals the setting of state & area based GST Appellate Tribunal (GSTAT)
    • Now some states may have more than one GSTAT.
  • The last date for filing GSTR 9, 9A & 9C has been extended to 31st August 2019 by the GST Council.
  • Penalty on the non-payment of Profiteering charges
    • 20% penalty is leviable if the profiteered amount is not paid within 30 days of order.
    • Use of Aadhaar card for the authentication of registration.
  • The extension of National Anti-profiteering Authority by 2 years has been approved by the GST Council. | Read More

34th GST Council Meeting Updates

  • The council decides reduced down rate as 5 per cent on non-affordable and 1 per cent on affordable housing scheme applicable on under construction properties
  • The old rate of 12 per cent on non-affordable and 8 per cent on affordable housing scheme can be chosen till 10th May 2019 in case the builder wants to claim ITC
  • If the builder opts for the newer rate i.e. 5 per cent on non-affordable and 1 per cent on affordable housing scheme, then there will be no ITC provided | Read More

33rd GST Council Meeting Updates

  • GST rate is cute from 12 per cent to 5 per cent on under construction properties. However, there will no input credit available on such transaction fro the builders.
  • GST rate cut on an affordable housing scheme from 8 per cent to 1 per cent. Affordable housing is termed as property valuing less than 45 lakhs or carpet area of a house in the metro city up to 60 square metres (around 650 square feet) and in the non-metro i.e. 90 square metres (970 square feet).
  • Properties valuing more than 45 lakhs will be levied with a 5 per cent GST rate at par with the under-construction properties tax rate.

Note: The said amendments will be applicable from 1 April 2019 (FY 2019-2020). Read More

32nd GST Council Meeting Highlights

  • The recently held GST council meeting made some amendments in the GST rules:
  • Kerala is permitted to levy calamity cess for 2 years to be used for rehabilitation of states.
    Revised GST rate of 6 per cent applicable to the composition scheme service provider having turnover up to 50 lakh per annum.
  • Threshold limit increased from INR 20 lakh to INR 40 lakh leaving Kerala & Chhattisgarh on their own.
    Free billing & cost accounting software in development. Get More Details

All Decisions Taken in 31st GST Council Meeting Updates

In the latest 31st GST council meeting which was held on 22nd December, took some major decisions on rate reduction on multiple items coming under higher 28% slab rate. Some of the items like TVs and Monitor screen of up to 32 inches screen size, Pulleys, transmission shafts, and cranks, gearboxes etc., falling under HS Code 8483, Re-treaded or used pneumatic tires of rubber, Power banks having lithium ion batteries, Digital cameras and video camera recorders were reduced down to 18% GST rate from higher 28% GST.

Also, there were multiple items and services which were reduced from the higher GST rate to a lower rate. For a complete review of the latest 31st GST council meeting, go to our page.

30th GST Council Meeting Updates

In the last 30th GST council meeting, there were no GST rate changes applied to any of the items and also no decision was taken on the inclusion of petrol and diesel. However, a panel was formed to analyze and research over the GST collection for across the states. Also, there was a discussion on the 1% tax on commodities Pan India.

29th GST Council Meeting Updates

  • 20 per cent cashback on online B2C transactions via BHIM, RuPay and UPI
  • A ministerial panel consisting of 6 members for MSME issues

28th GST Council Meeting Final Decisions

28th GST council meeting was scheduled for 21st of July, 2018 from 11:00 AM at Vigyan Bhavan, New Delhi by Union Min Minister of Railways, Coal, Finance and Corporate Affairs Minister Shri Piyush Goyal Ji. The meeting has decided on some changes in the tax rate slab and rate deductions on some items.

Exempt from GSTFrom 12 Percent to 5 PercentFrom 18 Percent to 5 PercentFrom 28 Percent to 18 Percent
Fortified milkFertiliser grade phosphoric acidFootwear Below Rs. 1000Mirrors, Lithium-ion batteries, Bamboo Flooring, Varnishes, Putty, Paint, wooden frames for painting, photographs,
Sanitary padsHandloom DariVacuum cleaners, Food grinders, juicer, mixers
The raw material used in broomsCosmetics, Perfumes, Scents
Commemorative coins circulated by the RBI or government.Hand Dryers, Hair Curlers, Shavers, Hair Clippers, Toilet Spray
Saal leavesTrailers, Concrete Mixer, Special Purpose Vehicle, Work Truck
Deities made of stone, marbles or woodWashing Machines, Storage water heaters, Ice cream freezer, Electric smoothing irons, Watercooler, Refrigerators, TV (up to 68 cm i.e. 27 inches)

Recommended: Revised GST Slab Rates in India Finalized by the GST Council

Other Major Changes:

  • Imported urea GST reduced to 5 per cent
  • E-books GST reduced to 5 per cent
  • Discussion based on the MSME sector and its hurdles in 29th GST council meeting
  • Penalty waived off for taxpayer registration and date extended till 31st August
  • GST rate for petrol and diesel Ethanol reduced to 5 per cent
  • Option for composition scheme for those having a 10 per cent share in annual turnover offered as services
  • Composition Scheme threshold limit increased (1 Crore to 1.5 Crore)
  • Regular taxpayer turnover limit increased up to 5 crores for quarterly filing and 5 crores for monthly filing
  • RCM provision nullified for 1 year
  • The GST registration threshold limit is increased up to 20 lacs (earlier it was 10 lacs) for northeastern states.
  • Textile industry to get refunds back from ITC paid

27th GST Council Meeting Updates

  • B2B dealers get to see entire turnover and invoice details
  • Only one return per month provision excluding composition scheme dealers and NIL transactions
  • GSTR 3B and GSTR 1 filing to be continued
  • GSTN entity to be divided in 50-50 percent ration between the centre and state government

26th GST Council Meeting Updates

  • Reverse charge mechanism extended for 3 months
  • 6 months extended for exporters in tax exemption. Exporters who are enjoying the benefits from export promotion scheme will continue to get exemptions on imports by October 1. By then an e-wallet scheme is expected to be launched to make the process easier
  • Interstate movement of goods e-way bill generation from April 1
  • And the implementation of the e-way bill in the Intrastate is scheduled to be from April 15 and to be divided into 4 states per rollout
  • Filing returns date extended for 3 months and GoM to look for IT issues
  • GST Council meeting is set to be commenced at Vigyan Bhawan, New Delhi on March 10, 2018
  • The main agenda of discussion: E Way Bill, Simple Return Filing, GSTR 3B Deadline Extension, Composition Scheme

25th Meeting of GST Council at Vigyan Bhawan, New Delhi

  • Finance Minister India Arun Jaitley says “necessary to build some anti-evasion measures” He considered GST e-way bill one of them
  • GSTR 3B return filing to be continued till further announcement
  • Petrol under GST will be decided at the next GST Council meeting
  • 40 handicrafts tax slab will be decided in the coming few days by the council
  • The tax rate reduction on all the items and services will be applicable from 25th January 2018
  • Composition dealers deposited lesser tax than expected as stated by Finance minister
  • Arun Jaitley mentioned that 15 states to apply intrastate GST e-way bill on the same date i.e. on 1st February 2018
  • Items re-considered under 18% slab rate from 28% tax rate
  • Next meeting through video conferencing in 10 days
  • No decisions on return filing simplifications today
  • Uttarakhand FM cleared that 29 handicrafts items reduced to 0% GST
  • Nandan Nilekani presents suggestions on GST return filings
  • GST Council holds 35,000 crores for distribution among centre and states as an IGST collection dividend (Source: CNBC)

24th GST Council Meeting Updates

In the recent 24th GST council meeting, it was finally decided that the electronic waybill commonly known as e-way bill is now introduced and will be applicable from 1st February 2018 across the nation. However, the states can introduce any individual pattern of e-way bill in there own but it is mandatory to introduce the e-way bill in respective states by the given deadline.

23rd GST Council Meeting Updates

The 23rd GST council meeting has done a lot of changes in compliance and procedure related to composition scheme with tax rate change in slab rates under GST along with return filing procedure. View More

GST council decides to increase the threshold limit of composition scheme taxpayers which was earlier 1 crore to now 2 crores, means the composition scheme taxpayers are now under 1.5 crore threshold. Also, the service supply exemption is now 5 lakhs per annum. The tax rates for traders and manufactures is now 1 percent on taxable goods leaving restaurant under composition to normal. View More

The GST council meeting also slashed tax rates on 178 items coming under 28% slab rate which leaves on 50 items under the highest tax rate of 28%. It is speculated that the lowering of taxes may result in revenue loss of around 20,000 crores to the government. The taxpayers whose threshold limit comes at 1.5 or less would file GSTR 1 quarterly as decided by the council. View More

22nd Meeting Of GST Council

The latest 22nd GST council meeting decided that AC restaurant tax rate revised to 12% from 18%, and yarns, clips, pins would be in 5% slab. Also, it is revealed that the threshold limit for the composition scheme dealers has been increased from 75 lakh to 1 crore. SMEs earning up to Rs 1.5 crore annually will have to file quarterly returns. GST council next meeting will be held on 9th and 10th November 2017 in Guwahati.

On 6th October, 22nd GST council meeting held to revise compliance provisions for businesses by GST council, which is made up of state finance ministers, officials from both states and the Centre and is headed by the FM, Arun Jaitley. The discussion has taken place regarding structural changes in new Indirect tax regime on the basis of complaints and feedback from businesses. Two days ago, the PM also held a meeting with the FM and BJP chief Amit Shah and promised the taxpayers that technical glitches and GST issues would be fixed effectively.

So many key aspects have been discussed on GST related issues and the GST Council has promised to amend important points. Here are the Prominent Highlights Of The Meeting:

  • The businesses with turnover up to Rs. 1.5 Crore are allowed to file quarterly returns
  • The threshold limit for the composition scheme to Rs. 1 crore from Rs. 75 lakh in turnover has been done
  • The reverse charge mechanism system has been suspended as the liability to pay tax resides with the buyer instead of the seller
  • E-way bill has been postponed until 1st April 2018
  • TCS and TDS applicability postponed until 31st March 2018
  • GSTR 4 return filing for composition dealers have been extended until 15th November 2017 for July to September period
  • The due date to register under composition scheme has been extended till 31st March 2018
  • No need of GST number for Goods transporting agencies for extending transporting services
  • No GST on advances received by SMEs
  • No GST registration for interstate service providers up to 20 Lakh

21st Meeting Of GST Council

The 21st meeting was inaugurated in Hyderabad on 9th September 2017. The key changes in GST rates had come into effect for services provided by a local authority and the government authority, the rate reduced from 18% to 12%. For mid-sized cars, big cars and SUVs, the cess increased to 2%, 5%, and 7% respectively. The due dates for filing GSTR-1, GSTR-2, GSTR-3 had been extended to 10th October (for the businesses, turnover crossing Rs. 100 Crore the due date would be 3rd October 2017), 31st October, 10th October respectively. The extension of GSTR-3B placed to December 2017 and registration under composition scheme extended to 30th September.

17th, 18th, 19th And 20th Meeting Of GST Council

The seventeenth GST council meeting held on 18th June. In the meeting, officials extended the deadlines for return filing until September and ease the terrific anti-profiteering clause. The e-waybill rules were discussed and postponed for further. The council also modified rates of luxury hotels and lottery tickets run by state authority to be charged at 12% whereas the ticket by a private authority to be charged at 28% GST.

The 18th meeting held on 30th June 2017, just a day before the GST roll out. The GST rate on fertilizers was reduced from pre-decided 12% to 5% and the tax rate on exclusive parts of tractors was reduced to 18% from 28%.

The 19th meeting took place on 17th July 2017, the first meeting to be held after GST implementation and the council decided to raise the cess on cigarettes to 31% in a certain category.

The 20th meeting of GST Council took place on 5th August 2017. The meeting headed by the finance minister decided to kick start Anti profiteering mechanism, the final draft of E way bill presentation, job work decided to tax under 5% GST rate, government given work contract taxed at 12 % GST rate and GST rates for certain services were revised.

13th To 16th GST Council Meeting

In the thirteenth meeting held on 31st March, the rules on registration, return, payment, refund, debit, credit, and invoices got approval. Furthermore, the four rules were discussed on the topic of input tax credit rules, valuation rules, transitional provisions, and composition rules. In the 14th meeting held on 18th May, the GST rates on goods and GST compensation cess rate got approval.

The 15th meeting was held on 3rd June 2017. The major decision of GST roll out on 1 July was unanimously accepted and pending rules including returns and transition provisions approved by the GST Council. On 11th June 2017, the sixteenth meeting took place with a rate revision of 66 items out of 133 and ended with the finalization of accounting rules.

11th And 12th Meeting Of GST Council

At the meeting held on 4th March 2017, the council had finalized the important CGST and SGST bills. It was declared that hotels with a turnover below 50 lakh would pay the lowest tax of 5%.

In the twelfth meeting on 16th March 2017, many key decisions and approval had been taken place. The council had approved the state GST bill & union territory bill and the council fixed 15% cess rate for certain demerit items. In this meeting, the council had given the approval to form a committee to look into the meta permit issues and the five draft laws were sent to cabinet and parliament for acceptance.

6th To 10th Meeting Of GST Council

In the sixth meeting of GST Council which was held on 11 December, the council had discussed the model GST laws regarding CGST and SGST in detail. The council had pronounced till 99 sections out of 197 sections.

The seven meeting of GST Council was held on 22-23 December 2016. The draft model bills on State and centre GST legislation passed and dual control issue was discussed but remained inconclusive.

The eighth meeting was scheduled on 3-4 January 2017. States demanded to increase cess on more items to compensate for the revenue loss of 900 billion. Accordingly, GST council had decided that the cess would be levied on a list of items mentioned by GST council and at the end of five years of GST the cess would be added to GST rates to divide it between the Centre and the states.

In the ninth meeting held on 16th January 2017. The dual control issues had been resolved and the council decided that 90% of the assessees with turnover below or equal to 1.5 crores would be investigated by the state government and 10% by the central government. In case of assesses with the turnover of more than 1.5 Crore the Centre and the State would scrutinize in 50:50 ratio. Any IGST disputes would be in consideration of the Centre.

The tenth meeting took place on 18th February 2017. In which the compensation law was finally approved.

3rd, 4th And 5th Meeting Of GST Council

The third meeting was held on 17-18-19 October 2016. GST rates and slabs discussion were taken place but the decision could not be made. The fourth meeting of GST council was held on 3-4 November 2016. The four slab rates were decided; which includes 5%, 12%, 18% and 28%. Apart from this, the additional cess above 28% would also be discussed to levy on sin goods and luxury items. The fifth meeting was held on 2-3 December 2016 with no deferred conclusion.

1st & 2nd Meeting Of GST Council

The very first meeting of GST Council was placed on 22-23 September 2016 with the determination to roll out GST on 1 April 2017. The two-day meeting was accessed by 29 states and 2 union territories and headed by Finance Minister Arun Jaitley. The main focus of the meeting was to decide regulation under composition scheme and charge 1-2% tax which would be less than the GST rates from traders with a gross turnover of up to Rs. 50 lakh. Some of the issues were also discussed regarding the GST rates and threshold limit to pay taxes.

The second meeting of GST council is held on 30 September 2016. GST draft rules for registration, rules for payment, returns, invoice, refunds and total six issues had been finalized so far. The states were compensated for loss and a fixed growth rate 14% was decided and all the exempted entities under indirect tax were considered to pay tax in the new GST regime.

Bajaj MD Says GST is Not the Sole Reason for Auto Sector Slowdown

GST Auto Sector Slowdown

While colonizers from every sector (automobile, steel, real estate, etc.) are blaming high GST rates for their sector’s descending sales ratio. Amazingly, Bajaj Auto’s Managing director Rajiv Bajaj says that calamity in the automobile sector is the crop of its own culture and tax reduction is not required. Though the automobile is a $ 119 billion industry and contributes to 7% of the country’s GDP, the sector is in the influence of unfavorable slowdown.

The sector witnessed a 23.5% downfall in August, which is the steepest downfall in the past two decades.

On this Rajiv Bajaj instead of blaming high GST rates said that the crises are due to “overproduction and stocking” done by the automobile firms based on future predictions. He further added that they don’t spend time and money on forecasts, they just stuff in when the quantity is near to zero. Automobile sales went in reverse during July and August (30% downfall) out of which 5% to 7% is due to external economic reasons.

Rajiv Bajaj further said that the industry is now putting checks on their stock levels for Bharat Stage VI (BS-VI) norms arrival and he is certain that the current situation will get restored by November this year.

In fact, his own company which is India’s third-largest automobile manufacturer confronted the slight sales drop. As per the reports, Bajaj saw an 11% fall in total sales in August, while domestic sales decreased by 19%. To this, he added, no industry keeps growing without corrections, so there is no point in chasing the fantasy. He suggests the business being global so that the company doesn’t suffer if one of many markets goes down.

The sector is definitely going through an uneven path, which may take 1 to 2 years to flatten, but according to Bajaj, the sector doesn’t deserve a GST cut. Violating his point other influentials in the automobile sector demanded relief from 28% GST (highest GST slab) to boost sales in the sector. He criticized saying that such a move will cause blockage of dealer’s money as they have already paid GST on higher rates while purchasing for their existing orders from manufacturers and now GST cut will lead to customers not willing to pay the same amount.

Read Alos: GST Rates Applicable to Cars and Its Accessories

To escape such a situation, he has proposed a limited GST cut and only for vehicles restricted to a much cleaner BS-VI emission norms. According to Bajaj, the step will partially control the increasing prices of vehicles as they become compliant with new norms. Following the implementation of the BS-VI norms, the cost of petrol-driven cars will rise up by Rs. 20,000 and diesel-driven cars will go up to Rs. 1 Lakh.

Penalties for Late Income Tax Return Filing in India

Penalties for Late Income Tax Return Filing in India

Individuals with income exceeding more than the basic exemption limit are required to file Income Tax return within the due date and if the person fails or misses the due date then there are the certain provisions of penalty under the Income Tax Act, 1961. The assessing officer may contact the individual through a notice to furnish reasons for not filing the return within due date.

Not filing the return within due date may lead to levy of penalty upto INR 10,000.

Due Date For Income Tax Return Filing u/s 139(1)

  • (a) Where the Assessee is :
    • 1) A Company
    • 2) A Person (Other Than a Company) whose accounts are required to be audited under this Act or under any other law for the time being in force, or
    • 3) A working partner of a firm whose account is required to be audited under this act or under any law for the time being in force
    • Note: The due date is the 30th day of September of the assessment year
  • (b) In case of Assessee who is required to furnish a report referred to in section 92E, the 30th day of November of the assessment year
  • (c) In the case of any other assessee the 31st day of July of the assessment year

If the assessee has not submitted his ITR within prescribed time u/s 139 (1) then return will be considered as a belated return. Belated return can be filed u/s 139 (4).

Assessee can file their income tax return (before receiving any notice from the department) the end of the relevant assessment year. For Example- Return for the AY 2018-19 can be filed upto 31.03.2019.

If the assessee has missed the deadline following consequences will be there which are as follows:

  • In the case where there are some taxes are yet to be paid, and return is belated then it will attract interest u/s 234 (A) @ 1% per month and part thereof up to the date of filing of the return, on such unpaid tax amount. This interest will be charged only if there is any tax payable by you.
  • The assessee will not be allowed to carry forward losses in case of belated return.
  • Assessee may lose interest on refund u/s 244A as delay in filing is attributable to you for the period by which you have filed a late return.
  • Penalty u/s 234F is levied from AY 2018-19 for filing returns after the expiry of relevant assessment year. The penalty amount is 5000/-. It will be increased to 10000/- if the return is filed after 31 st day of December of the assessment year. However where the gross total income of the assessee is more than 250000/- but upto 500000/- the maximum amount of penalty can be 1000/-.

8 Mistakes To Avoid Before Filing ITR Forms:

  • Do not claim fake deductions in ITR in order to reduce income tax liability.
  • If the income is more than the basic exemption limit, filing of return is mandatory.
  • Mention your accumulated income earned from all the employers, if you have changed the job.
  • When you select the wrong ITR form, you may get income tax department notice mentioning under-reporting income as in different form you will miss some information to file.
  • A taxpayer is also required to make sure that data feed into ITR is in accordance with the Form 26AS. In any discrepancy, the department can ask for an explanation.
  • It is required to either e-verify the ITR form or sent it to CPC, Bengaluru for verification. if the assessee fails to e verify his return then the return will be considered as an invalid form.
  • It is required to mention every single detail regarding the income in the ITR.
  • When you are filing ITR form late, pay the late filing fees as well in order to keep away the notice from the income tax department.

Gen Income Tax E-Filing Software

Debt Laden Companies Worried From GST & IBC Rules

Debt Laden Companies GST & IBC Rules

It seems that the Insolvency and Bankruptcy Code (IBC) and GST are having some troubles with the norms as well as software working procedure for the resolutions.

Therefore, it seems that they may visit the court for the further resolution of the matter. The major issues that conflict is that the GST software does not allow the taxes that of current or of a future state to be paid until unless the previous taxes have been paid.

Also, the IBC will have to wait until the creditors get the dues, to begin with, the recovery. As per the tax expert, “Under the IBC framework, there is a moratorium. The company doesn’t have to pay past taxes, including GST, after a defined trigger point, Due to the way the GST software functions, companies can’t pay taxes till they have cleared dues. This leads to genuine hardship.”

The dues of goods and service tax are in thousands of crores which has to be cleared of further operations. The tax expert further added, “We are challenging this in the court as the tax department should either allow companies to pay GST without clearing dues or refund the money paid for the previous period within the statutory time prescribed.”

Right now there are 1300 companies which are under the resolution process while 12 companies which have as much debt as 3.5 lakh crores have said that there is an issue within the tax system itself.

The companies are asked to pay the previous year taxes which are due but are into the financial debt already, therefore, breaking the IBC regulations also.

In some situations, the tax department is unable to collect the taxes from the debt-laden companies which are under the resolution process. Also, there are thousands of crores which are due including the income tax or transfer pricing.

The tax department is also taking some action in a loose manner when the lenders itself come and tries to solve the tax issues. While the IBS become major even in front of the tax department for the collections.

Easy Guide to GSTR 1 with Complete Online Return Filing Procedure

The GSTR 1 form is a return form for the regular taxpayers who have to file details of outward supplies on every 11th of next month (July 2018 to June 2019) for those who cross the turnover more than 1.5 crores annually. The taxpayers who are under the threshold limit to 1.5 crores will have to file quarterly return. The taxpayer can download the GSTR 1 form in PDF format here.

Here, we are going to study the procedure of filing GSTR 1 form, as according to the rules and regulations, every registered taxpayer will have to submit the complete details of sales i.e. outwards supplies in the GSTR-1 form. The time limit for filing up GSTR-1 form is within 11 days from the end of succeeding month for regular taxpayers. The Indian government also released a filing guide of GSTR 1 return form in a PDF format to help taxpayers & small businesses.

In the 28th GST council meeting, the FM has revised the eligibility for regular taxpayers i.e. up to 5 crores for quarterly return filing and more than 5 crores for monthly return filing. The government will provide the notification before updating new provision for eligibility.

  • Features of GSTR 1 Form
  • Who Should File GSTR 1
  • GSTR 1 Due Date
  • Interest on Late Payment and Charges
  • GSTR 1 Common Errors
  • GSTR 1 Important Terms
  • GST Council Meeting Update
  • The Procedure for Filing GSTR 1
  • GSTR 1 Filing By Gen GST Software
  • General Queries on GSTR 1 Form

According to the latest updates, the GST will include both the Sahaj and Sugam forms, with the regular taxpayer having a turnover up to 5 crores filing every quarter in either ‘SAHAJ’ or ‘SUGAM’ proportionally according to the supplies based on ‘B2C’ or ‘B2B & B2C’ respectively.

While for the regular taxpayers whom turnover is above 5 crores will have to file monthly returns under the new GST return filing procedure of ‘UPLOAD->LOCK->PAY’ which must be paid through challan every month. However, the claims for ITC is still required for the business on a monthly basis for smooth compliance.

Making Amendments in Invoices reported in Form GSTR 1, related to financial year 2017-18

1. Some taxpayers are facing the issue of amendment and have reported that they are unable to make amendments in the invoices reported in their Form GSTR 1, related to financial year 2017-18.

2. To sort this issue out, attention of taxpayers has been pulled to the point number 3 of the Removal of Difficulty Order No. 02/2018-Central Tax, dated 31st December, 2018, issued by Government of India, Ministry of Finance.

Point no. 3 says: “In sub-section (3) of section 37 of the said Act, after the existing proviso, the following proviso shall be inserted, namely :- “Provided further that the rectification of error or omission in respect of the details furnished under sub-section (1) shall be allowed after furnishing of the return under section 39 for the month of September, 2018 till the due date for furnishing the details under subsection (1) for the month of March, 2019 or for the quarter January, 2019 to March, 2019.”

3. The sub-section (3) of section 37 of the Act is clearly stating that the taxpayers can make amendments in their invoices which are reported in Form GSTR 1, related to the financial year 2017-18, till the last/due date of filing Form GSTR 1 for March, 2019. As the due/last date of filing Form GSTR 1, for the month of March, 2019 has already gone, now taxpayers can not amend invoices reported in Form GSTR 1 related to the financial year 2017-18.

Salient Features of GSTR-1 Return Form

  • The Form GSTR-1 is filed by all the registered taxpayers to fill outward supply details of business irrespective of whether the transaction was done or not in a month
  • It should be filled by 11th of the next month of which the return has to be filed
  • The invoices details need to be filled in prescribed fields
  • The outward supplies include supplies to an unregistered person, registered person, exempted and exports, received advances and non-GST supplies

Who Should File GSTR-1

All the registered taxpayers need to file the return except:

  • Input Service Distributors
  • Composition Dealers
  • Non-resident Taxable Person
  • Taxpayers liable to collect TCS
  • Taxpayers liable to deduct TDS
  • Suppliers of OIDAR (Online Information and Database Access or Retrieval)

Deadlines for Return Filing of GSTR 1

  • Turnover Up To 1.5 Crore (Quarterly)
PeriodLast Date of Filing
October 2018 – December 201831st January 2019
January – March 201930th April 2019
April – June 201931st July 2019 | Read Notification
July 2019 – September 201931st October 2019
  • Turnover More Than 1.5 Crore (Monthly)
PeriodLast Date of Filing
January 201911th February 2019
February 201911th March 2019
March 2019Revised – 13th April 2019, Read Notification
April 201910th June 2019 for Odisha,  Read Notification
May 201911th June 2019
June 201911th July 2019
July 201911th August 2019 | Note: “The due date extended till 20th September 2019 for notified districts of Bihar, Gujarat, Karnataka, Kerala, Maharashtra, Odisha, Uttarakhand and also for registered persons whose principal place of business is in J&K.” Notification Here
August 201911th September 2019


  • The return filing due dates for the form GSTR 1 more than 1.5 crore has been extended for a cumulative 3 months for the month of July 2019 to September 2019. Read Notification
  • The return filing due dates for the form GSTR 1 up to 1.5 crore has been shifted to 31st October for a cumulative 3 months for the month of July 2019 to September 2019. Read Notification
  • “Prescribed due dates for the furnishing of FORM GSTR-1 for taxpayers having an aggregate turnover of more than Rs. 1.5 crores for the months of April, May and June 2019.” Read Notification

Interest on Late Payment of GST Tax & Missing GST Return Due Date Penalty

As the GST council rules and regulations stated that on every continuous late payment of taxes, it will attract 18 percent per annum interest on the GST tax applicable just after the commencement of due date till the taxes are to be payable to the government. One can also have a look at the detailed interest guides in chapter 10, point 50 here:
According to the provision, If certain taxpayer drops in any of the deadline for the GST tax payment then there will be interest calculations from the due date i.e. 1000*18/100*1/365= Rs. 0.49 per day approximately.

(Rs. 1000 is the assumed tax payment) (18% per annum is the interest rate) (1-day delay from the taxpayer)

In various situations, where a taxpayer does not file their return within specified due dates mentioned by the government authorities, he is obliged to pay a late fee of Rs. 50/day i.e. Rs. 25 per day in each CGST and SGST (in case of any tax liability) and Rs. 20/day i.e. Rs. 10/- day in each CGST and SGST (in case of Nil tax liability) subject to a maximum of Rs. 5000/-, from the due date to the date when the returns are actually filed.

Avoid Common Errors While Filing GSTR-1

  • JSON Errors
  • Expected errors regarding composition scheme:
    • Registered under Composition Scheme in August month? You are not subject to file the GSTR-1 form for July Month
    • Registering under Composition scheme in an account of 1st October? You require not to furnish the GSTR-1 form for July month
  • Have you stuck with invoice related data?
    • Date format: Date should be in correct format- dd-mm-yyyy (i.e. 01-06-2017)
    • Invoice Number: Invoice number accepts only two special characters- hyphen and forward slash (/)
    • Invoice Data: This field should be furnished to the maximum of 2-decimal digits

The Window for GSTR 1 Again Open For Return Filing

The government has given great relief to those taxpayers who are filing GSTR-1 returns. Those taxpayers who missed the July 2017 GSTR-1 returns can now file GSTR-1 returns. To file GSTR-1 returns on GST portal, the government has once again opened the window which was earlier closed on October 10th.

Tax expert MK Gandhi said that the government has given great relief to the traders. The deadline to file July’s GSTR-1 was October 10 which the government didn’t extend. And now, the government has reopened the window to file the GSTR-1 returns of July which is not fixed by any deadline right now.

Businessmen and Traders can download the GSTR-1 return form and offline tool by clicking on the link given:

Taxpayers will have to download the GST offline tool by double-clicking on their computer system. On the destination link, the taxpayer will find zip file all from the return format to the invoice sheet. The GST portal has GST software tools that businessmen can download on their computers. These software tools are in Excel Format and Java-script and one can make bills in this Excel format. Save the bill information in the Excel sheet and upload it to GST portal with returns. On software tools, businesses can also file their returns online through mobile.

Details of Zip file:

  • GST Offline Tool
  • Section wise CSV files
  • GST-1 Excel workbook template –
  • User Manual

Important Terms to Know in GSTR-1

  • GSTIN: Goods and Services Taxpayer Identification Number
  • UIN: Unique Identification Number
  • UQC: Unit Quantity Code
  • B2B: One registered Taxpayer to another registered taxpayer
  • B2C: One registered to another unregistered person
  • POS: Place of Supply of Goods and Services
  • SAC: Services accounting code (Services Accounting code is filled in case of the supply of services)

HSN: Harmonised System of Nomenclature (HSN code is filled in case of the supply of Goods)

  • A taxpayer has to mention aggregate turnover of the previous year in the first return filed by the assessee. This data will be auto-populated from the next returns
  • A person with less than 1.5 crores aggregate turnover need not provide HSN and SAC
  • For B2B supplies, all details of invoices have to be uploaded and for B2CL supplies, only invoices more than 2.5 lakhs in inter-state have to be uploaded

GSTR 1 Major Updates By 31st GST Council Meeting

  • FORM GSTR-1 & FORM GSTR-3B returns are required to be filed before the filing of FORM GSTR-9 & FORM GSTR-9C
  • The information would be auto-populated in Table 8A of FORM GSTR-9 for all invoices pertaining to previous FY (irrespective of the month in which such invoice is reported in FORM GSTR-1)
  • An additional time window for completion of the migration process is being given. The due date shall be extended till 31.01.2019 for the taxpayers who had not filed the complete FORM GST REG-26 but have received the Provisional ID (PID) only till 31.12.2017 for furnishing the requisite details to the jurisdictional nodal officer. Also, the due date shall be extended till 31.03.2019 for furnishing FORM GSTR-3B and FORM GSTR-1 for the period July 2017 to February, 2019/quarters July 2017 to December 2018 for such taxpayers
  • Taxpayers who file FORM GSTR-1, FORM GSTR-3B & FORM GSTR-4 for the months/quarters July 2017 to September 2018 after 22.12.2018 but on or before 31.03.2019 will not have to pay any Late Fee

Let’s understand the Procedure of Filing GSTR 1 in Detailed Format

The return form GSTR-1 includes a total of 13 sections but all these sections are not necessary to be filled and will be prefilled. Some of the details of sections in GSTR 1 form are:

Part 1 to Part 3 – Outward Supplies Table Details

  • GSTIN – As allotted by the government, the GST Identification Number is based on PAN and is 15 digit long goods and services taxpayer identification number. It is to be noted that the GSTIN is auto-filled in every return filing of the taxpayer
  • Name of the taxpayer – The taxpayer’s name will also be auto-filled while the time of return filing at the common GST portal
  • The gross turnover of the taxpayer in the earlier Financial year: – The details will have to fill up for the first time of filing, after that the details will be auto-populated in the financial statement next year
GSTR 1 Form Table 1, 2 & 3

Part 4 – Taxable Outward Supplies Made to Registered Persons Other than Supplies

The details of all the taxable supplies done by the organization to the registered taxable person. The details will be included regarding normal taxable supplies, all the supplies under reverse charge mechanism and supplies done by e-commerce operators

  • 4(A) regarding normal taxable supplies except included in 4(B) & 4(C)
  • 4(B) all the supplies under reverse charge mechanism should be included rate-wise here
  • 4(C) supplies done by e-commerce operators regarding the collection of tax at source should be furnished operator-wise and rate-wise
GSTR 1 Form Table 4

Part 5 – All the Details Regarding Outward Inter-state Supplies to the Unregistered Individuals in which the Invoice Value Exceeds INR 2.5 lakh

The section will cover all the taxable supplies done with an unregistered individual in the other state, while the details need to be furnished when the value exceeds INR 2.5 lakh.

  • 5A, all the interstate supplies attracting more than Rs. 2.5 lakh should be included invoice-wise and rate-wise here
  • 5B, all the supplies by the e-commerce operator to an unregistered person attracting the collection of tax at source should be uploaded rate-wise and invoice-wise
GSTR 1 Form Table 5

Part 6 – All the Zero-Rated Supplies and All Deemed Exports:

The section will assume all the zero-rated supplies, deemed exports (supply has done to the SEZ, EOUs), exports. The table will be furnished with all the details of supplies invoice-wise and rate-wise to corresponding out of India exports in 6A, outward supplies to SEZ developer, and supplies attracting deemed exports in 6C

The important points to be noticed down before furnishing the details in this table:

The details of shipping bill number and date should be furnished and in case of unavailability of the receipt and details, the same can be updated in next month return filing details in table 9 for the same and claim the refund in that return form

  • The supplies made by SEZ to domestic tariff area without the bill entry should be furnished in GSTR-1 by SEZ
  • The supplies made by SEZ to DTA with the bill cover should be mentioned in imports in GSTR-2 by DTA unit
  • GSTIN number should be left blank under ‘Exports’ heading
  • The tax amount will be ‘0’ in 6A & 6B heads, in case of IGST(under the bond/ letter of undertaking) is not paid

Table-6A details need to be furnished by the exporters for claiming the GST refunds concerning export data for a particular time-period. According to GSTN, after filing the export-related data in table-6A, the exporters can upload and save the form.

What is table 6A of Form GSTR 1?

Table 6A of Form GSTR 1 is a table of GSTR 1 – outwards supplies a statement of the supplier, which an exporter desiring refund of taxes paid on exports or ITC related to exports is required to furnish on the GST portal. The taxpayer has to declare the details of export invoices in this table.

Who needs to file table 6A of Form GSTR 1?

Every registered taxable person, other than an input service distributor/compounding taxpayer/TDS deductor/TCS collector, who wants to claim the refund on taxes paid on exports can file Table 6A of Form GSTR 1 electronically on GST portal.

Where can I file Table 6A of Form GSTR 1?

Table 6A of GSTR can be filed from the returns section of the GST portal. In the post-login mode, you can access it by going to services > Returns > Returns dashboard. After selecting the financial year and tax period, Table 6A of Form GSTR 1 in the given period of time which will be displayed.

When the exporters will sign it digitally, it will reach to the customs department and customs department will do matching with GSTR-3B form and shipping bill and will be approved by the department.

At the end of the procedure, the exporter will get the refund in the respective bank account or will get a check.

GSTR 1 Form Table 6

Part 7 – Taxable Supplies to Unregistered Person (Net of Debit and Credit Note)

All the items in taxable supply accountability sold to an unregistered dealer will be coming into this section.

The section will be covering:

  • 7A, the taxable intra-state supplies to the unregistered dealer
  • 7A(1), the rate-wise details of intra-state supplies made to the unregistered person and through e-commerce operator
  • 7A(2), the operator-wise and rate-wise details of supplies made in 7A (1) through e-commerce operator attracting the collection of tax at source
  • 7B supplies below INR 2.5 lakh as inter-state sales to the unregistered person
  • 7B(1), the state-wise and rate-wise details of inter-state supplies below Rs. 2.5 lakh
  • 7B(2), the operator-wise and rate-wise details of supplies mentioned in 7B(1) through e-commerce operator for collection of tax at source
GSTR 1 Form Table 7

Part 8 – All the NIL Rated, Exempted and Non-GST Outward Supplies

  • Supplies whether exempted, nil rated or non-GST items which are not included in the sections above will be detailed here in this section. This includes the separate details of inter-state supplies/intra-state supplies to a registered/unregistered person.
GSTR 1 Form Table 8

Part 9 – All the Amendments to the Taxable Outward Supplies to an Unregistered Individual (For Current Tax Period)

All the amendments to outward taxable supplies details and the returns furnished for the previous tax intervals. Details of every other amendment in outward supply from earlier tax period have to be reported under this section while any amendment in debit or credit note also requires being included in this section. Any changes in table 3, table 4, and table 6 from previous returns should be included here. The table should be furnished as:

  • 9A, if the earlier filled details in table 6 were incorrect or non-available at the time of filing the returns, it should be added here with corresponding shipping number and date
  • 9B, the details of debit notes, credit notes, and refund voucher should be furnished here
  • 9C, the amendments during the previous tax period to the debit notes/credit notes/refund vouchers should be furnished here
GSTR 1 Form Table 9

Part 10 – All the Amendments to the Taxable Outward Supplies to an Unregistered Individual Furnished (Previous Tax Period):

The details of amendment of any taxable outward supplies done to an unregistered individual from an earlier tax period need to be included in this section.

This is how to fill the details:

  • 10A, here you need to fill the rate-wise details of debit notes/credit notes issued to an unregistered person for intra-state supplies
  • 10A(1), the separate details of supplies from 10A made through e-commerce operator
  • 10B, the rate-wise details of interstate supplies made to an unregistered person with amount value more than 2.5 lakh Rs.
  • 10B(1), the details of interstate supplies from 10B made through the e-commerce portal
GSTR 1 Form Table 10

Part 11 – Consolidated Statement of Advance Received:

Under this section, all the details of advance received and adjusted in the current time period will be included. The result will increase/decrease of GST liability while any kind of amendment in advance payment from the previous tax period is recorded here.  The table includes the following information to be included:

  • 11A, the details of the advance amount received without the invoice issued. This kind of amount must be added to output tax liability
  • 11A(1), rate-wise intra-state supplies regarding 11A
  • 11A(2), rate -wise inter-state supplies regarding 11A
  • 11B, the details of the advanced amount received earlier and adjusted this time in table no. 4,5,6 and 7
  • 11B(1), rate-wise intra-state supplies regarding 11B
  • 11B(2), rate-wise inter-state supplies regarding 11B
  • Part 2 of table 11, amendments to the previous tax period in table 11A and 11B
GSTR 1 Form Table 11

Part 12 – Outwards Supplies HSN Wise Summary:

  •  The taxpaying individual will have to consolidate all the taxable supplies through the HSN codes. A significant amount of information is added in this section on the supplies of IGST, CGST and SGST collected. The person making an annual turnover of more than 2.5 crores has an option to fill or not the HSN code here although the description of those goods is necessary for this head. UQC is the unit quantity code and only accepts a unit of measure which is prescribed by the portal.
GSTR 1 Form Table 12

Part 13 – Documents Released in the Tax Period:

  •  The sections require all the details of the invoice and its relevant issues in the tax period, revised invoices, credit notes and debit notes.
GSTR 1 Form Table 13

General Queries on GSTR 1 Form

Q.1 Is there any possibility to correct any errors in GSTR- 1?

  • It is not possible to correct GSTR- 1, once filed. If any mistakes occurred while filing returns, it will be corrected in the next month returns. For example, if a mistake occurs in August GSTR- 1, the correction for the same will be modified in September GSTR- 1

Q.2 What is B2C in GSTR 1?

  • B2C Small Invoices (5A,5B) abruptly means Business to Small Customer Invoice. Sales refer to Unregistered person amounting up to INR 250000

Q.3 What is GSTR 3B and GSTR 1?

  • The GSTR-3B is a summarised return form whereas, the GSTR-1 is a report for all output invoices and taxes on them. Originally it has been foreseen that the GSTR-3B and the information and taxes furnished as per Forms GSTR-1,2,3 would be reconciled with the help of a system based reconciliation

Q.4 Can GSTR 1 be revised?

  • It has been known that there is no provision till now following which, a return once filed cannot be revised. In case of any mistake done while return filing, rectification could be done in the next periods (month/quarter) return. Explaining through an example, If a mistake is made in September GSTR-1, then rectification for the same could be made in October’s GSTR-1

Q.5 Should the GSTR-1 be filed in the case of zero sales in a month?

  • Yes, The GSTR 1 form is mandatory to be filed. On the other side, If the total sales for a year are less than Rs 1.5 crore, then the return should be filed on a quarterly basis

Q.6 Can the invoice be uploaded only once while filing the return?

  • The invoice could be upload anytime. It is better to upload invoices at regular intervals during the month so as to avoid bulk uploading at the time of return filing. The bulk upload is time-consuming

Q.7 Can an uploaded bill on the GST portal be altered?

  • After the bills are uploaded, changes could be made in them multiple times. No restriction has been attached on changing invoices’ details after uploading them. But, the invoices could be changed only before submitting a return. But once submitted, the numbers are frozen

Q.8 Should a GSTR-1 form be filed even after filing GSTR-3B?

  • The GSTR-3B is a simple return form aided to be filed by traders on a monthly basis only till March 2018. Still, we need to file the return through the GSTR-1 form on a monthly or a quarterly basis

Q.9 Does a person opting a composition scheme should file the GSTR-1 form?

  • A person opting composition scheme should not file the GSTR-1 form. For this, there is a GSTR-4 form which is required to be filed and submitted on a quarterly basis by the taxpayer opting for composition scheme

Q.10 Can the GST payment be made after filing GSTR-1?

  • In the GSTR-1 return, details of sales are filed with the government. After filing of this return, no tax has to be paid. The tax is supposed to be paid at the time of filing GSTR-3B (notified for months until March 2019)

Q.11 If a Businessman files the GSTR-1 form for July 2017 and his annual sales are below Rs. 1.5 lakh, should he file a quarterly or monthly return?

  • In such a case the businessman needs to file a quarterly return. Also, as the return for July is already filed he should omit July sales from his return

Q.12 Is there any provision for amendment in the details already filed in GSTR-1? If yes, then what will be the filing period to make such amendments?

  • Yes, the amendment could be done to an already filed GSTR-1 for a particular tax period, by the declaration of the amended details in the return
    • For example: If Mr X of Kerala sold some goods to Mr Y of Karnataka for INR 1,00,000 on 30th August 2017 and declared the details on GSTR-1 of August 2017.
    • Later he realized that he made a mistake on the date of the invoice. Now, this could be rectified by filing an amended invoice with correct invoice date i.e. 16th August 2017
    • But the amended details would reflect in the GSTR 1 of September 2017

Q.13 What should be the ‘Revised date’ in the amended invoice in this case?

  • The ‘Revised date’ reflecting in the amended invoice must not be later than the last date of the original invoice tax period
    • For example, If an original invoice dated 12/07/2017 undergoes amendment in August then the revised invoice date should not be later than 31/07/2017

Q.14 What all details amendments are not admissible or not allowed?

The below-mentioned details cannot be amended at Invoice level:

  • The Customer GSTIN
  • Changing a tax invoice into the bill of supply
  • The following details with respect to Export Invoices cannot be amended:
    • a) Shipping Bill Date/Bill of Export Date
    • b) Type of Export- With/Without payment
  • The below mentioned, with respect to Credit Debit Notes cannot be amended:
    • a) Receiver/Customer GSTIN | Note: However, you may amend & link any other invoice for the same GSTIN
    • b) Place of Supply
  • Reverse charge mechanism applicability
    • Reason: All the above-jotted details are based on the original Invoice hence, these details must match with the details of the linked Invoice.
  • If the person receiving goods has taken action on the invoices i.e. accepted it or modified it and relatively, the supplier accepts such modifications in GSTR-1A, then he is not supposed to make any amendment in those invoices as those amended invoices would automatically get reflected in the GSTR-1 of the supplier in the month of such acceptance under the relevant amendments tabled. Following details cannot be amended at the summary level.
    • Nil Rated
    • HSN summary of Outward supplies
    • Cannot add a new place of supply

Note: The existing place of supply could be replaced with another place of supply following some limitations. Refer to the examples given below:

Q.15 What are the acceptable amendments in context to the Place of supply?

With respect to Place of Supply, note the following:

  • The original place of supply could be amended for a transaction
  • One is not allowed to add any new place of supply to a transaction

Let us understand the above with the following scenarios:

NaturePlace of supplyRate of TaxTaxable ValueAmendment
OriginalKerala18%INR 10000Allowed
Amended ToKarnataka18%INR 10000
OriginalKerala28%INR 50000Allowed
Amended ToKarnataka18%INR 50000
OriginalKarnataka5%INR 10000Allowed
12%INR 20000
Amended ToKarnataka18%INR 30000
OriginalKerala18%INR 60000Allowed
Amended ToKarnataka28%INR 20000
Amended ToKarnataka12%INR 40000
OriginalKerala18%INR 60000Not Allowed
12%INR 40000
Amended ToKarnataka28%INR 50000
Amended ToKerala12%INR 50000

In all the cases above, where the original place of supply was amended from Kerala to Karnataka (whether or not there was a change in tax rates or invoicing), the amendment is allowed.

But in the last case, in addition to Kerala, Karnataka has also been added as a place of supply (irrespective of change in tax rates or invoicing). Hence, the amendment does not hold good.

Q.16 Where would the amended invoices reflect in GSTR-1?

  • The amended invoices or details are declared in the tax period in which the amendment takes place as follows:
S. no.Type of AmendmentExplanation
1B2B Amendments (9A)Any amendment made in the invoices which have been already issued must be reported here. These are the invoices for taxable supplies made to registered taxpayers. This includes supplies made to SEZ/ SEZ Developers with or without payment of taxes and deemed exports.
2B2C Large Amendments (9A)Any Amendment done in the original invoices already issued must be mentioned here. They reflect the original invoices issued for taxable outward supplies made to unregistered taxpayers where: Supply is made interstateThe total invoice value is more than Rs 2,50,000/-
3Credit/Debit Notes (Registered) Amendments (9C)In case of any Credit or debit note amendment against already issued Credit or debit note reported under B2B (i.e where supply is made to the registered taxpayer), will be reported here.
4Credit Debit Note (Unregistered) Amendments (9C)Amended Credit or debit note issued against original Credit or debit note is reported under B2C Large and Export Invoices section
5Export Invoices Amendments (9A)Amended invoices issued against already issued original invoices must be reported here. Export invoices include Export under bond/LUT: If a businessman conducts exports under bond or letter of undertaking and not paying IGST.Export with IGST: If a businessman is exporting without furnishing a bond/letter of supply and paying IGST on such supply. (It excludes deemed exports & supply to SEZ)
6B2C Others Amendments (10)Amendments made in such invoices which have been already issued earlier must be reported here. These are all those invoices not covered under:B2BB2C LargeExports
7Advances Received (Tax Liability) Amendments (11(2))In case of any amendment made to the advances received in previous tax, periods need to be declared here.
8Adjustment of Advances Amendments (11(2))Any amendment made to the advances and adjusted in previous tax periods has to be declared here.

Govt May Increase Tax Rebates Within GST for Exports Industry

EPCG Scheme Benefits Under GST

Recently the commerce ministry has proposed that the industries offering most of the jobs in the market will be having tax rebates to increase the employment opportunities in the country.

Also, the ministry will be giving tax rebates on various products to boost the exports of the country. Some of the products like gems, jewellery and agriculture pharma will be the priority in tax rebates.

Also, there may IGST redemption in the silver and platinum exports to 3 per cent as this redemption is only for gold for the exporters currently.

The government is focusing on those major areas where there are more opportunities for employment. The taxes will be deducted and would be brought to 2.5 per cent.

Authorities will be analyzing the overall scenario of the pharma industry and bring a viable solution to extend its revenues and exports capabilities for them.

Read Also: GST Impact on Indian Pharmaceutical Industry

The government is focusing the domestic manufactured products and by selling those products there are chances that the gross domestic product of the country will get a significant increase.

Also, the authorities will be trying to give tax rebates on the dry fruits as well as spices. Therefore there is a target of additional revenues by increasing the agriculture exports by 2022, this will give the advantage to the country also.

There is also a suggestion on which the exports insurance may be increased from 60 per cent to 90 per cent for the extra assurance to the exporters. Overall, there will multiple benefits on the verge for the exporters to increase the profitability.