The following of the newest GST notifications in accordance with proper laws, rules and rates may be a must for each trading and business unit and can keep the tradition in a proper managerial way. Goods and services tax has been unravelled and nearly every business company must be acting by the latest notifications being issued by the official government departments and according to the central board of excise and customs.
According to the notifications over the Central tax, follow and
have a glance at the link and be updated through the newest update over central
tax issues. Also, the notifications regarding the central tax (rate) will keep
you updated through the ups and downs within the rates of central taxes.
Central taxes are going to be levied on the idea of Central GST and can be
collected by the central government from every transaction of both interstate
and intrastate in nature.
“Notification issued to prescribe due dates for filing of
return in FORM GSTR-3B during a staggered manner.”
Corrigendum “Seeks to extend the last date for furnishing of
annual return/reconciliation statement in FORM GSTR-9/FORM GSTR-9C for the
period from 01.07.2017 to 31.03.2018.”
“Seeks to appoint the Revisional Authority under CGST Act,
“Seeks to increase the one-time amnesty scheme to file all FORM
GSTR-1 from July 2017 to November 2019 till 17th January 2020.”
“Seeks to amend the notification No. 62/2019-CT dt. 26.11.2019
to amend the transition plan for the UTs of J&K and Ladakh”
“Seeks to make amendment (2020) to CGST Rules.”
“Seeks to bring into force certain provisions of the Finance
(No. 2) Act, 2019 to amend the CGST Act, 2017.”
Currently introduced by FM Nirmala Sitharaman, Union Budget 2020-21 seems to be a set of challenging income tax provisions. There have been no provisions like the provisions of Union Budget 2020. In the said budget, FM has introduced the new tax slabs with reduced slab rate which taxpayers may adopt on a voluntary basis. This means taxpayers have a choice of selecting either of the two options (old or new slabs rate). It is witnessed that the new slabs are not much in favor of the employed individuals and adopting the new income tax slab 2020 might lead them to a huge tax outgo from their accounts.
According to CA Vinod Jain, the administration is now looking forward to having a simplified version of the tax rate structure and also the normal taxpayers who have no investments should get some incentives. Earlier when the corporate sector enjoyed a considerable benefit in tax rates there was an echo seeking incentives for the common taxpayers.
According to him, the new tax rates FY 2020 are not beneficial for the employed individuals who have their investments in the form of PF, insurance, home loans, etc. LTA, house rent, standard deduction, medical such as 80 C, investment of Rs 2 lakh, etc. are non-exempt as per the protocols of the new Union Budget.
Read Also: Current Income Tax Rates for FY 2019-20 (AY 2020-21)
Example: Here if a taxpayer is not having enough investments then it is beneficial for him to go with the new slab and later on if he invests in multiple instruments then he can switch back to the old tax slab.
As declared by Manish Khemka (chairman of Global Taxpayers Association and co-chairman of the PHD Chamber of Commerce and Industry-UP), the amendments in the tax slabs are actually a step towards the future direction. The government is aiming towards an entire simplified new GST system and so the complexities related to various concessions are over.
Next, there will be a system where the tax rates will be less and there will be more incentives on the investments. The step will allure the new professionals with high packages to invest. Such professionals are heavily taxed and therefore FM Nirmala Sitharaman has given them the relief in Budget 2020.
Several employed individuals have already invested in LTA, PF, home loan, life insurance, etc. and every single year a considerable amount from their bank balance goes in such instruments. So clearly such salaried individuals will want to stick to the old tax slabs fy 2019-20 rather than shifting to the new slabs fy 2020-21.
As per Tax Expert Balwant Jain, many incentives in terms of tax payment have been abolished which makes it a less attractive choice of the taxpayers. According to him, a regular taxpayer will have to hire a tax expert to know the profit and loss arising after the deductions and exemptions as per the new policies.
Nobody is ever going to sacrifice the handsome amount earned under the exemption in the old system. There is no one who is not availing the benefits of exemptions under 80C. The old system had the standard deduction up to Rs. 50,000, LTA, interest on a home loan, Rs 50,000 on interest income to senior citizens, which no taxpayer would want to give up for the sake of adopting the new policies.
Below is the study revealing the advantages and disadvantages of both the system under different salaries:
Salary Rs. 10 Lakh Per Annum
Old Tax Slab FY 2019-20
If a professional with an annual package of Rs. 10 Lakhs has no investments, then such a person is compelled to pay the total tax of Rs. 1,12,500 as per the old slabs.
Deduction – From the above-mentioned amount Rs. 50,000 is reduced as the standard deduction, now he is obliged of paying Rs. 1.5 lakhs under 80C, 25,000 under mediclaim and 2 Lakh interest a year for a home loan. So clearly his payable tax is just Rs. 27,500.
New Tax Slabs for FY 2020-21
As per the new tax slab, the overall taxability of the person with an income of Rs. 10 Lakh per annum is Rs. 75,000. If an individual adopts the new tax slab then he/she is in a loss of Rs. 47,500 in a year.
Salary Rs. 12.5 Lakhs Per Annum
Old Tax Slab FY 2019-20
As per the old tax slab if the standard deduction is excluded (that means he/she has not done any investment) his total payable tax is Rs. 1,87,500. If the standard deduction is included then Rs. 50,000 is reduced from the tax-ability of the person. And if he has paid Rs. 1.5 lakh under 80C, Rs. 25,000 under Mediclaim and an interest of Rs. 2 lakh on a home loan in that year. Then his total taxability remains Rs. 77,500 only.
New Tax Slabs for FY 2020-21
As per the new tax slabs rate 2020, an individual with a gross income of Rs. 12.5 lakhs per year is liable to pay Rs. 1,25,000 as tax. So the individual adopting the new tax slab is clearly in the loss of Rs. 47,500.
Important: Section-Based Income Tax-Saving Tips For Salaried Person
Salary Rs. 15 Lakhs Per Annum
Old Tax Slab FY 2019-20
If a salaried individual with an annual income of Rs. 15 Lakhs is not having any investment and the standard deduction is also excluded then his/her total tax liability is Rs. 2,62,500. On the other hand if the standard deduction of Rs. 50,000 is excluded and if he has paid Rs. 1.5 lakh under 80C, Rs. 25,000 under Mediclaim and an interest of Rs. 2 lakh on a home loan in that year then his/her total tax liability falls down to be only Rs. 1,35,000.
New Tax Slabs for FY 2020-21
As per the new income tax slabs 2020, an individual with a gross income of Rs. 15 lakhs per year is liable to pay Rs. 1,87,500 as tax. So the individual adopting the new tax slab is clearly in the loss of Rs. 52,500.
The government has listened to the pleas of the taxpayers and extended the due dates of Form GSTR 9 (annual return) and Form GSTR-9C (reconciliation statement) for Financial Year 2017-18 in a staggered manner for different groups of States to 3rd February, 5th February and 7th February 2020.
Along with the extension of the due dates, the government also said that these forms will now be easy to file as there are multiple columns and files which have now been made as an optional.
As per the Central Board of Indirect Taxes & Customs (CBIC) notification, the amendments concerning the simplification of both the annual forms i.e. GSTR 9 and GSTR 9C allowing the taxpayers to not provide the input tax credit availed on inputs, input services and capital goods details.
Also, there is now no need to give the HSN level details of outputs or inputs, etc. for the FY 2017-18 and 2018-19.
This due date extension has given another chance to the taxpayers to file their annual returns on time with clarity and accuracy which is also observed by the government.
Previously, the taxpayers were required to file the GSTR-9 and GSTR-9C for Financial Year 2017-18 by 31st January which is now again asked for to be extended till 31st March 2020, and for the financial year 2018-19, it was 31st March 2020.
In response to the demand of the trade industry and ongoing issues on the portal, the Finance Ministry has decided to extend the last date for filing GST annual returns (FY 2017-18) to 3rd February, 5th February and 7th February 2020. While the general date for annual GST return filing was December 31, 2018.
Now in a further order released by the Central Board of Indirect Taxes and Custom (CBIC) said, “The competent authority has decided to extend the due date for filing FORM GSTR-9, FORM GSTR-9A and FORM GSTR-9C till to 3rd February, 5th February and 7th February 2020.”
Group 1: Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Puducherry, Telangana, Andhra Pradesh, Other Territory – 3rd February 2020
Group 2: Jammu and Kashmir, Himachal Pradesh, Punjab, Chandigarh, Uttarakhand, Haryana, Delhi, Rajasthan, Gujarat- 5th February 2020
Group 3: Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Andaman & Nicobar Islands, Jharkhand, Odisha, Chhattisgarh, Dadra and Nagar Haveli and Daman and Diu, Lakshadweep, Madhya Pradesh, Uttar Pradesh- 7th February 2020
The deadline for annual GST return has been extended owing to the continuous demands of various trade bodies. According to them, the format for annual GST Return along with the filing option is not yet available on the GST portal which makes it difficult to speculate things. GST annual return is kind of important deal as it gives a once-in-a-year opportunity to taxpayers to review and rectify their mistakes in any of the returns filed in that particular year. Therefore, businesses must be given sufficient time and resources to analyze, understand and fill the form.
More than one petition was filed to the Finance Ministry, all of which put the focus on the complexity of the GST returns filing process. According to a petition, more time is spent on correcting the returns rather than filing them. In addition, annual returns require the mention of HSN code for inward supplies as well, which was not a mandate for GSTR-3B returns. This further adds to the hassle of the taxpayers.
Taxpayers need time as they will have to review all their past returns and transactions to fill up details in the annual return form. It is going to be even more arduous and demanding for small businesses and traders who have no expertise in such tasks. Since the the due dates for GSTR-3B filing have been extended multiple times for different months during the year, the calculation of penalty, interest and the late fee is now more time-consuming.
Associations Come Forward to Extend GSTR 9 & 9C Due Date
In the wake of difficulties while filing the GSTR 9 and GSTR 9C on the GSTN portal have requested the extension of the due dates for both the GSTR 9 and 9C. The associations have asked the due dates to be extended to 31st March 2020 for the filing related to the FY 2017-18.
Goods and Services Tax Practitioners’ Association of Maharashtra
Tax Bar Association, Guwahati
Sales Tax Bar Association, New Delhi
Association Of Tax Practitioners, Ernakulam
Haryana Chamber Of Commerce & Industry
Ahilya Chamber of Commerce and Industry
Kerala Tax Practitioners’ Association (KTPA), Kochi
District Tax Bar Association Sonipat.
Central Gujarat Chamber of Commerce and Baroda Tax Bar Association
Jamnagar Chamber Of Commerce & Industry
The Southern Gujarat Commercial Tax Bar Association, Surat
Tax Bar Association, Jammu
The concerned association have also written a formal letter to the union finance minister Nirmala Sitharaman in this regard and therefore the decision is waiting for the approval.
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is a declaration of reconciliation among the Annual Returns in GSTR 9
documented for a Fiscal Year and the charts based on audited annual Financial
Summaries of the taxpayer.
Every registered person whose aggregate turnover during a fiscal year is more than INR 2 crore must get his reports audited as specified under sub-section 5 of section 35 of the CGST Act. Also, he must mandatory to provide a copy of the audited annual statements and a duly certified reconciliation summary in Form GSTR 9C.
up with into account the problems faced by the tax filers while filing of GSTR
9C form, we have abstracted some common issues that were primarily faced along
with suggestions that will hold up the related complications. Let us maintain a
look at them for the steady & comfortable filing of GSTR 9C.
of the value of ITC in Table 8A of Form GSTR-9 as per Form GSTR-2A
the incentives responsible for the mismatch between the ITC that is
pre-populated can be:
of table 8A of Form GSTR 9 brings Auto occupied entirely for GSTR 1 that is
filed by the supplier taxpayer by the last date of this return filing. Input
Tax Credit on allowances of the fiscal year, if reported after the period
allowed, it won’t be auto-populated in Table 8A of Form GSTR-9 but will
evaluate in Form GSTR-2A.
Initiate Filing- Noteworthy Point to File GSTR 9C
Table received from GSTR 9, which is in the pdf extension file that can be
downloaded by using the ‘INITIATE FILING’ tab, pursued by the distribution of
the PDF file to the Auditor by the taxpayer for form GSTR 9C practice for a
quotation. For the preparation of GSTR 9C by the Auditor, the taxpayer does not
require to download the pre-filed JSON file from the portal. Do not attempt to
download the JSON file if any such file instructed by your Auditor has not been
uploaded by you.
issue associated with Signature
the problem is Error “Auditors sign is invalid” appears for users. The
treatment for the invalid Signature is to ensure the following DSC related
Signature Certificate (DSC)
Digital Signature Certification must be as per PAN, and it should have a PKCS7
must be incorrupted.
must be valid/ not be expired.
with JSON File- Post receipt of JSON file
File,’ i.e., the Reconciliation declaration created & affirmed by Auditor,
is uploaded on the GST Portal using the ‘PREPARE OFFLINE’ tab on GST Portal.
The button is to utilize for downloading erroneous JSON files.
Economic declarations like Balance Sheet, P&L Account, etc. can be uploaded in PDF/JPEG format using the ‘INITIATE FILING’ tab. The same cost is used to file Form GSTR 9C instructed by the Auditor. Once the signed JSON file/ Reconciliation statement and Audited Financial Statement are successfully uploaded, the ‘PROCEED TO FILE’ tab gets enabled.
Soft Solutions Online is one of the best GST Software providers to help to fill your all types of taxes online without any error.
It’s been a few days left for the Union Budget 2020 presentation to take place in Parliament and the trade body Federation of Indian Chambers of Commerce & Industry (FICCI) has put forth another proposal.
FICCI is sighing for excise duty benefits for the producers in the petroleum sector on their output against GST payments they made on inputs.
In the pre-budget proposals, the industry body expressed that the producers of petroleum and natural gas should be permitted to negate the ITC for Goods and Services Tax (GST) that these producers pay on inputs against the excise duty impossible on their output.
Under the current scenario, petroleum crude, petrol, natural gas, high-speed diesel and aviation turbine fuel are out of GST ambit. When the GST was implemented in July 2017 with an objective of “one-nation-one-tax”, these five petrol-products – petrol, crude oil, diesel, natural gas and aviation turbine fuel (ATF) were kept out of GST purview.
So, accordingly, the input tax credit of GST liability executed on procurement is not permitted against the output tax liability to the supplier of the respective products and so it becomes an additional cost for the oil and gas companies.
According to the industry body, till the time GST gets implemented on petrol-products, appropriate amendments in the CENVAT (Central Value Added Tax) rules will bring down the production costs for oil and gas corporations.
At present, the government is of the view that petrol and diesel should be brought under the purview of GST. The first Union Budget for the whole year under the governance of Prime Minister Narendra Modi will be presented on 1 February 2020 by the Finance Minister Nirmala Sitharaman in Parliament.
FICCI, in its pre-budget memorandum 2020-21, also urged for clear interpretation and changes in the Taxation Laws (Amendment) Bill, 2019, for the best utilisation of cuts in corporate tax rates by the current as well as upcoming domestic companies and the clearance of higher surcharge by non-corporates on some selected capital market transactions issued via the Bill.