GST: Is it Really A Tool To Check Black Money or Not?

Black Money


GST was always an ambitious plan when one takes into consideration the diversity that India as a nation subsumes within its territorial boundaries. From conflicted Kashmir in North to Kanyakumari in the south and Kutch in East to hills of Arunachal in the west, Indian Subcontinent witnesses a diversity matched by no other nation on the planet. Hence, a unified tax system was always going to take months of drafts coupled with frequent editions to bring one and all on board.

Hence, the Central Governments successful effort of drawing a consensus within a three month period deserves praise and accolades. However, a common agreement that binds all states of India to the GST is the compensation agreement between the state and the Central Government.

This agreement ensures that the Centre will compensate for the initial losses accrued by states as a result of GST implementation. It has been more than a year since the new tax law was introduced and that states and union territories have been paid Rs 52,077 crore in compensation during the period. Experts believe that this agreement coupled with the center’s recent decision of GST tax relaxation on essential goods and services in the light of increasing GST accrues could be a recipe for disaster.

One key highlight from the current fiscal year is that of the states reporting shortfall in revenue of up to 43%. This was a topic of discussion in the last GST Council meeting as well. Amidst these recurring state losses, the center’s decision to relax GST rates will only burden states further. This could mean more revenue loss and greater compensation cheques for the Central Government. Unless GST accrues increase drastically, the tax black hole will only get bigger and denser by each fiscal quarters,

The Economy Softpoints:

  • Non-buoyant Revenues

The tax base has no doubt increased but tax revenues have remained the same or gained small spikes. This is clearly evident in the monthly accrues for current Fiscal Year with that of previous. Hence GST revenues it seems will make up little for the increased compensation burden post rate relaxations.

  • Tax Evasions

NAA State bodies in 17 of the 29 states have reported zero cases of anti-profiteering may reflect a robust center-state machinery. However, beneath the surface, there are reports of new adaptive methods of tax evasions. This cannot be entirely faulted on the administration alone. GST is a complete technology reliant tax mechanism. Hence, it will not err as long as people and businesses adhere to the rules in a straight line. But human nature is unpredictable. Especially when they have been used to open hand tax evasions in the previous regimes.

The Prime Minister Narendra Modi states GST as a celebration of Honesty. In some way, we can regard that the failure of GST will more due to the will of the people than the administration. And this is absolutely right.

The GSTN Network can no doubt be used to check false practices via sellers and buyers invoices matching. However, in a country like India where 95% of the tax collections come from a meager 5% of the businesses, invoice matching is a partial solution to long-standing issues that till date are used to bypass as well as benefit from GST complexities by businesses of all size and scale.

These practices include:

  • Misclassification of Goods and Services
  • Under and Over invoicing of their sales and purchases
  • Fake invoices for overheads, like transportation, entertainment and so on
  • Muster roll fudging
  • Fake billing to claim input credit (Misuse of GST Exemptions)
  • Manipulation and bypassing complex rules which are hard to scrutinize and detect at a single glance.

The above issues contribute greatly to India’s long flourishing yet unchecked black money assets as well as the branches of the indirect economy. Hence, Demonetisation despite the naysayers was a strong counter administrative move to lay the ground for GST embracement by India as a nation. However, for this to have completely gone as planned, a more simple and easy compliant GST could have better placed both states and the Centre to accelerate adoption.

A golden example is that of the e-Way bill which by far appears to be the most leak-proof and technically efficient Central Scheme to come into effect till date to track the movement of goods and check black income generation has been accused guilty of reinstating the yesteryears Inspector Raj. But this a narrative that the so-called blue-collar media will use every day. A greater question that remains unquestioned is the willingness of the people to abide by the new norms and participate in Nation Growth. However, this would need a complete overhaul of the present pay structure and power centers in the Police Administration. This would indirectly burden the state finance machinery. A ying-yang point of modern Indian Politics-Administration to say the least.

In conclusion, the success of Demonetisation will always be questioned by one and all which includes the modern-day media puppets as well as political foes too. GST is to early to be evaluated and certified. The GST rate relaxation is more a political necessity than an economic one. However, for the greater good of the Nation that even eclipses the outcome of the upcoming elections, it is important that India as a Nation wakes to the call for a more self-policing and honesty adhering nation. And GST even though troubled by complexities and ambiguities offers a faint little yet plausible opening to that reality where India acts a United Nation with one and only goal of ‘development for the people, of the people and by the people’.

Budget 2019: Traders Want Government to Simplify GST & Relax Loans

Union Budget 2019-20

One of the Kirana merchants who is engaged in the business of selling pulses, spices, and dry fruits in the APMC market, in Vashi Mumbai, doesn’t seem to people these days with the current GST system enforced by the central government.

This particular medium scale retailer has been active in APMC, Mumbai, for the last three decades but expressed deep melancholy when discussed about his business sales figures in the past three years.

The APMC trader stated, “There is no demand, the big malls are pulling away our customers. We used to do Rs 2 lakh business on a daily basis; we are not even doing Rs 50,000 these days.”

The APMC merchant business has been performing poorly in the past two years due to steep competition and a general slowdown in consumption by Indian customers. This small merchant is also facing intense competition from both large online & offline retailers.

To be more specific, the introduction of Goods and Service Tax (GST) by the central government alongside the promotion of digital transactions has worsened the situation of mostly every small & medium scale traders in India, who transacts in cash daily and find it difficult to file GST returns
“We are not against GST, but we expect the government to simplify the filing procedure,” said the APMC retailer.

To add more, the increasing usage of digital wallets and electronic swiping machines post demonetization has been made it difficult for the small traders to stay in the market.

The APMC trader, on this issue, said, “I find it difficult or most uncomfortable with using cards and electronic payment systems, for small traders like us, cash is easier and way to go in business.”

Those who don’t know, APMC market in Mumbai is one of the largest wholesale market in Asia, spread across 300 hectares, where traders deal in fruits, pulses, vegetables, food grains, onion and potato, spices, and sugar. It is an evergrowing place where farmers sell their produce whereas wholesalers & retailers sell farmer-sourced items to general customers. Although, the imposition of the GST system, steep competition from large multi-chain retailers, and economic slowdown has put down brakes on the business profits of small traders here.

Read Also: Know All About New GST Return Filing System

Well, it’s not only this particular small trader from APMC market in Mumbai who has found it difficult to deal with the GST burst, but other traders in the country also have similar tales.

A similar situation has been faced by small & medium traders in other retail sectors too. 
For instance, an anonymous trader from fast-moving consumer goods (FMCG) section at Dana Bazar expressed his grief that with the current GST regime, he always needs a tax expert & accountant for the bookkeeping purpose, in an attempt to make consistency while filing his tax returns.

“Tax filing under the new GST system is not at all easy, and we always need a tax expert to fulfil that purpose. It had increased our costs, while our business hasn’t seen any improvement,” said the anonymous FMCG trader at Dana Pani. The business of this particular FMCG trader has dropped 20 per cent as expressed by him.

Similarly, a rice & wheat trader, who wanted to stay unidentified said, “The traders were never ready, when GST was introduced, as most of us have never used computers. Glitches were evident in the GST portal, classification of goods and their tax slabs was unclear, refunds were not easily coming and return forms were complicated too.”

The unnamed rice & wheat trader, further said, “I agree that situation has improved now, but still it would be better if the government work towards a more simpler tax filing system. We all want to see GST consolidation under three slabs of zero percent, five percent, and 16 percent.”

The life of small traders has not been easy at all with the current GST system imposed by the ruling party, i.e., BJP and majority of the ruling NDA government in the country.

There are close to seven crore small and medium scale traders in the country who offers employment to approx 45 crore people in India by generating an overall net business profit of INR 42 lakh crores. Despite this, the community feels that they were sidelined by the governed without putting their interests on the table. They also feel dejected due to the witch-hunt on them by tax authorities.

Keeping the small & medium traders interest in the account, the central government this year has double the exemption limit for traders who have an annual turnover between INR 20 lakh to 40 lakh. To decrease the compliance burden, the eligibility for composition scheme has also been stretched till 1st April 2019 for the small businesses having an annual income of INR 1.5 crores. Traders enrolled under GST composition scheme are now allowed to file their annual returns on a quarterly basis.

Despite such efforts, the traders are still ungratified and want the government to do more. 
The proposal for simplification in the filing of GST returns has been recently put forward by The Confederation of All India Traders (CAIT), who represents the country-wide traders on a big stage.

CAIT is in constant talks with the current ruling government and newly appointed Finance Minister to stretch the tax exemption limit from INR 2.5 lakh to somewhere between INR 5 lakh to 7 lakh for small & medium traders, owing to constantly increasing consumer index price in past many years. Apart from this, CIAT has also forced the central government to fulfil its promise of offering INR 50 lakh loan without any collateral for small & medium traders.

The Indian small & medium traders are also demanding the ruling government to stop permitting the foreign direct investment in the retail & e-commerce sector, eating a vast chunk of their business currently.

More Classes to File ITR: Another Step to Curb Tax Evasion

Tax Evasion New Rules

Government is pressing pedals to curb tax evasion by widening the taxpayer base and by augmenting the class of people for compulsory filing of ITR.
According to the official data, the total number of income tax returns (ITRs) filed in 2017-18 is 6.86 crore which registers an elevation of 23 per cent over the last year. This apparently shows the improvement in tax compliance in the last few years. But in the nation with a population of approx 130 crores, the Government further sees more scope of improvement and so it is eyeing on taking high-value transactions in consideration for ITR filing.

“People evading tax have to be dealt with differently. The 2 per cent TDS (in case of withdrawal of more than ₹1 crore cash from a bank account in a year) is actually for those who are getting away.
You must have seen in the budget that there are several measures such as those whose electricity bill is more than ₹1 lakh would need to file the return. We may notify some other class of people who would be required to file tax returns,” said Ajay Bhushan Pandey, Revenue Secretary.

Read Also: Logic Behind Linking of GST Number With Power Consumption

Under the proposed Union Budget for 2019-20, filing an ITR becomes mandatory for the individuals whose annual deposit in a current account is more than ₹1 crore, whose foreign travel expenses are more than ₹2 lakh or whose annual electricity bill expenses is more than ₹1 lakh. According to the experts, high hotel bills, hefty expenditures incurred on party or buying a car may also require people to file ITR.

“The government has already said that those doing high-value transactions would be covered. The next could be high hotel bills, clubs, expenditure on holding a party, purchase of cars and investment above a certain level,” said Riaz Thingna, Director, Grant Thornton.

“If someone is buying a car for ₹5 lakh, it is unlikely that his income would be less than ₹5 lakh. Today, people are buying ₹75 lakh car and still not paying taxes. So, I think there are enough opportunities to take up so many different areas.” He added.

The Modi government has been continuously working against the generation of black money and it has taken many measures to transform the Indian economy into the cashless economy. Among them, demonetisation was the major step to discard the loopholes of tax evasion and avoidance.
Now the next step adopted by the government is based on the principle of – “higher the earning higher the tax”.

Recommended: GST: Is it Really A Tool To Check Black Money or Not?

As a result, the surcharge of 15 per cent has been elevated to 25 per cent for the individuals with annual income between ₹2 to ₹5 crore. Similarly, for those with the annual earnings of ₹5 crore or more, the surcharge has been raised from 15 per cent to 37 per cent. In this way, the effective tax rate will lift up to 39 and 42.74 per cent for those in the ₹2-5 crore and ₹5 crore & above income slab, respectively.

Fed up to the back teeth, big industrialists discontents the decision to which the Revenue Secretary argued in a defending way by giving an example of many countries like the US, France and China where the higher tax rate is liable on high earnings and proving that India still taxes its super-rich class at lower rates.

“In India, before the (proposed) increase, for the highest tax bracket, the tax rate was 35.8 per cent. In Brazil, it is 27.5 per cent. In Canada, it is 33 per cent plus 21 per cent state taxes. It is more than 45 per cent in China, 66 per cent in France and 50 per cent in the US,” Pandey explained.

He also explained that economic decisions are taken on the basis of overall economic conditions and not on the basis of if someone would take advantage of the provisions in an illegal way, in response to the apprehension that the increment in customs duty on gold would consequence smuggling, while confirming that enforcement agencies would handle the problem of gold smuggling.

“We should not be using our forex for non-essential imports. So, the proposal goes along with this policy. The issues related to smuggling or anything will be dealt with by the enforcement agencies,” the revenue secretary said.

Government Eyeing Direct Taxes to Cover Up the Stumbling GST Collections

Direct Tax Collections

The Modi-led government has recently announced that it will sort out all the major issues or glitches in the new GST system, which was also the key reason for the decline in indirect tax revenue.

At the time when the GST regime was launched, the government has promised that the full benefits of GST reform and revenue will take some time, and the stabilization phase will continue till FY 2019-20.

The GST collections recently show an alarming sign for the government as it has fallen below the INR 1 lakh crore threshold.

As per the data, the tax collection under GST has observed INR 99,936 crores in June 2019, which is way below the revenues of the last three months, i.e., INR 1,06,577 crores, INR 1,13,865, and INR 1,00,289 (from March to May respectively).

Although, the experts believe that GST collections are in line with the current pace of economic growth and are acceptable in terms of signifying the success of the new tax regime.

Recommended: Comparison Report: Existing vs New GST Return Filing System

The disagreements over GST rates and procedural issues between the state and central government is one of the key reasons why the new tax system hasn’t stabilized yet.

Regular Demand for Reduction in GST Tax Rate

The demand for reduction in rates of GST has been seen across almost every industry where the GST is applicable to multiple product or services. As per the statistics, close to 1350 items are covered by GST, and a very high tax rate of 18 per cent is applicable for 632 items (46.8 % of the goods).

The government is working continually to reduce the GST rates as discussed by the new finance minister in her recent budget speech. But, given the shaky flow of indirect tax revenues, the further cut down in GST rate seems highly unlikely.

Complex GST Filing Procedure

The mess over the GST return filing procedure is yet to be solved by the central government.

In the recent budget speech, the finance minister, Nirmala Sitaraman has said that the government is working wholeheartedly to simply the GST process and return filing procedure. Actions like fully automated GST refunds module, tax filing through AADHAR, and simple monthly returns will be taken by the government to simplify the existing GST system. The new return system is scheduled to be rolled in phases from October 2019.

Inconsistent GST revenues

The inconsistent flow of GST revenue flow is forcing the government to look for the durable flow of direct taxes, i.e., personal and corporate taxes to achieve the target revenue for taxes. Given the current shaky scenario of GST revenues, the situation is likely to retain the same for the next two years.

As per the budget document, “Direct taxes are expected to show a growth rate of 13.4 per cent and 14 per cent compared with the previous year in 2020-21 and 2021-22, respectively. On the other side, the growth rate in indirect taxes is expected to be 7.3 per cent and 10.3 per cent in 2020-21 and 2021-22, respectively”.

Therefore, the government is relying heavily on direct tax collections to make up for the stumbling GST revenue. The direct tax-GDP ratio will easily reach 6.6 per cent of GDP in 2021-22.

Detailed Process of Reporting Salary Details in Income Tax Returns

Salary Details in Income Tax Returns

For the filing of income tax returns, salaried individuals can utilize forms ITR-1 and ITR-2. The individual resident taxpayers with an annual income of up to INR 50 lakh are required to file ITR-1 while the others who do not earn from business or profession will go with the ITR-2 for filing income tax returns.

In the ITR-1, one can report details such as income from salary, income from other sources, one house property, and the income of up to INR 5k from agriculture. While the ITR-2 bounds individuals to mention information like income from more than one house property, unlisted equity shares, capital gains and directorship in any company.

Form 16 now keeps an improved salary TDS certificate which allows taxpayers for mentioning of more detailed information of provided several tax-exempt allowances and deductions under the income tax law. While the part B of Form 16 has also been rectified in order to mention particulars in details like the provided several rebates and deductions under the income tax law.

Given below are the snapshots of provided exemptions and deductions under the Income-tax law:

Exemptions Allowed

Deductions Allowed – Chapter VI-A

Deductions Allowned in IT Returns

ITR Filing of Taxpayers:

ITR-1: The exact figures of the comprehensive sections of the salary are mustfill by the taxpayers such as

  • Salary
  • Perquisites
  • Profit instead of salary

In addition to this, all the exempted allowances under section 10 would also be required to be mentioned likewise

  • Gratuity
  • Leave travel allowance
  • House rent allowance

Along with it, there is a need for separate mentioning of allowed deductions under chapter VI-A from section 80c to 80U. For example

  • PPF investment, life insurance premium, tuition fee for children under section 80c.
  • Donations under section 80D
  • Medical insurance premium under section 80D

ITR-2: As like the ITR-1, while filing for the ITR-2, taxpayers required to mention all the exempt allowance and deductions in detail. In addition to this, there is a need for reporting complete break up of several aspects of salary which cumulatively makes a specific amount likewise salary, prerequisites and profits in place of salary. To get this information one can go through the annexure provided with Form 16 from an employer.

If in case, the taxpayers are getting a salary from more than one employers in a financial year, he/she requires to present employer wise details. With improved Form 16, one can easily report details of one or more employers while filing for the ITR-2.

The filling up of details required in ITR-1 and ITR-2 would no longer be a tedious task for employers. Because the revised Form 16 format to file ITR makes easier to get all the required details.

In case of filing for ITR via online mode, these details automatically occupied to your ITR which not only helps in reducing efforts but also guarantee an accurate e-filing.

Real Estate Needs Clarification on GST Rates for Commercial JDA

Refund Excess GST

Any Joint Development Agreement or JDA of commercial project or sale of development rights is not exempted from GST. For now, it is mandatory to clear all sorts of confusion on GST rates for Joint Development Agreement or development right sale, especially for commercial projects.

While certain exemptions are allowed for the transfer of development rights in a residential or housing JDA, commercial developments are denied of any exemptions. Clearly, because of the GST being imposed, the taxes on development in commercial projects is more than taxes on development in residential projects.

Hopefully, the issue will be considered by the Union Government and the transactions related to development rights will not be included under GST rather such transactions will come under the impact of immovable property.

Read Also: GST on Real Estate: Tax Burden Lower or Higher?

If we talk about the transfer of development rights under joint development agreements, GST is imposed on the transfer of development rights by the landowner to the real estate developer. The category is clearly of indirect tax and should not be included under GST. So, this calls for the attention and re-examination on the Government’s part.

According to managing director of an organization; to effectively achieve the target of giving Housing To All by 2022, the Union Government must check the requirements of home loan borrowers. In addition, the government also needs to consider the issue of affordability and stamp-duty. All the issues related to affordability and stamp duty should be included in GST.

The point that needs to be instantly considered by the government is to increase the threshold amount of affordable housing under Pradhan Mantri Jan Awas Yojna (PMAY) scheme to Rs. 75 Lakhs which is presently Rs. 45 Lakhs. In today’s market, the prices of lands are touching skies, making it impossible for the developer to deliver homes at the cost of only Rs. 45 Lakhs.

As per the recent database, approx 85% of the housing projects land under Rs. 45 Lakhs to Rs. 75 Lakhs, therefore it is recommended that the carpet area threshold value of affordable housing should be increased from 60 sqr mtr to 90 sqr mtr in metropolitan cities and in non-metro cities 90 sqr mtr to 120 sqr mtr.

Read Also: Income Tax Benefit on Home Loan Interest & Principle

By redesigning the policies of threshold values under affordable housing, the government can pack the number of projects under ‘affordable housing’, thus ensuring the vast portion of the market to avail income tax benefits.

Input Tax Credit Guide Under GST: Calculation with Examples

input tax credit

Input tax credit in GST, As defined by section 2 (57) of the MGL (Model GST Law) and section 2 (1) (d) of the IGST Act, Input tax is related to a taxable entity which means the (IGST and CGST) in respect of CGST Act and (IGST and SGST) in respect of SGST Act is levied on every supply of goods or any services on the entity which is used by it or which is intended to to be consumed in the course of the business and subsumes the tax payable under sub-section (3) of section 7. In a simple way, input tax credit defines that an entity can reduce the taxes it paid on the inputs at the time of paying the taxes on output.

28th GST Council Meeting Updates on ITC

In the recent discussion it is stated that the ITC inclusion might be applicable soon on the other activities specified in the  Schedule III i.e., services by Courts, sale of land, actionable claims, vessels, aircraft, services by MP or MLAs and ITC on 13-seater vehicles, vehicles for transporting money; on maintenance or general insurance services for vehicles, goods or services provided to employees by employer as required by law. Also, there would be no interest in case of reversal of ITC payment on invoice beyond 180 days from the invoice date.

What is net Input tax credit (ITC)?

  • Net ITC is the input tax credit which is availed by the taxpayer in his ITC ledger or for the month in which the taxpayer has sought. It is the amount of ITC taken by the taxpayer through the table 4 of his GSTR 3B returns of the tax period refund is sought for.

Now lets see, how to calculate input tax credit, for example, if a tax payable on the output is INR 450 and the tax paid on the input was INR 300, then the entity can claim an Input tax credit of INR 300 and the remaining amount of INR 150 will be needed to deposit in taxes.

How can Input Tax Credit be Claimed under GST?

For claiming input tax credit, one must occupy a tax invoice or a debit note which is issued by a registered dealer.

Second thing, which must be kept in mind is that one should have received goods and services, and the taxed purchases have been deposited or paid to the government authority by the supplier in form of cash or by claiming the input tax credit.

Then, it must be ensured that the supplier has filed for the GST returns.

How to Avail the Input Tax Credit via Different Routes?

  • For making payments to IGST: Take input tax credit from the SGST, CGST and IGST which is paid on the purchases.
  • For making payments to CGST: Take input tax credit from the CGST and IGST which is paid on the purchases.
  • For making payments to SGST: Take input tax credit from the SGST and IGST which is paid on the purchases.

Note: As per current notification, the govt has modified some ITC set of rules under which the ITC for IGST is first used completely then the CGST & SGST will be used i.e.

  • For making payments to IGST: Take input tax credit from the IGST and then CGST & SGST.
  • For making payments to CGST: Take input tax credit from the IGST & CGST
  • For making payments to SGST: Take input tax credit from the IGST and SGST.

Here is shown a GST input tax credit example which will clarify in a simple manner:

Assume that there is a seller Mr A and he sold his goods to Mr B. Now here Mr B which is a buyer will be eligible to claim the input tax credit on purchases based on the invoices. So,

Step 1: Accordingly, Mr A will be uploading the details of all the tax invoices issued in GSTR 1.

Step 2. All the details in accordance with the sales to Mr B will auto-populate in GSTR 2A, and the same data will be taken when Mr B will file GSTR 2 (i.e details of inward supply). (Currently, the GSTR 2 is suspended and not available on the portal, therefore, Mr. B can avail credit in the GSTR- 3B)

Step 3: Mr B will then accept the details that the purchase has been made and reported by the seller accurately and subsequently the tax on purchases will be credited to ‘Electronic Credit Ledger’ of Mr B and he can adjust it against future output tax liability and get the refund.

How GSTR Forms Operate & How they Reconciled?

The GST Council has appointed 2 types of forms which are mandatory to be filled in every month, namely GSTR 1 for all the sales done and GSTR 2 for all the purchases done. (Currently, GSTR 2 forms are not available on the portal)

The GSTR 1 form will have to be filled on the 10th of every month includes all the details regarding the sales done by the business unit. There is also GSTR form 1A (Currently, GSTR 1A forms are not available on the portal) included which is majorly for the importance of reconciliation. Basically, Details of outward supplies as added, corrected or deleted by the recipient in Form GSTR-2 (Currently, GSTR 2 forms are not available on the portal) will be made available to the supplier. The due date for the particular form is 20th of succeeding month.

Recommended: GST Forms: Return Filing, Registration, Rule, Refund, Challan, Invoice

Coming to the GSTR 2 form, it is for the details of inward supplies of taxable goods and/or services for claiming input tax credit. Addition (Claims) or modification in Form GSTR-2A should be submitted in Form GSTR-2. The due date to submit the form is 15th of succeeding month.

On the basis of this, a form GSTR 2A is available which emerges with Auto-populated details of inward supplies made available to the recipient on the basis of Form GSTR-1 furnished by the supplier. The due date of this form is On 11th of succeeding Month.

Post GST era, the government allowed business entities file their GST returns on self- assessment basis in the starting two months. GSTR 3B is a return form for filing returns under the Goods and Services Tax Regime, TRAN I is the form in which business entities will be required to furnish all the information details of credit that they are claiming for the payment of taxes they had already paid before the implementation of the new tax regime.

According to the Finance Minister Arun Jaitley, “Transitional forms (TRANS 1) for claiming input tax credit is now available at GSTN portal, under the Goods and Services Tax Regime. A senior official of revenue department said, The transitional form is almost ready and we are working to upload it by 21st August so that businesses can start filing TRAN 1.” All normal taxpayers registered in the new tax regime are required to file July month returns by 25th August which was passed out.

Some Common ITC FAQs After GST Implementation

Q. Does the GST paid for motor vehicles used for office purpose is eligible for ITC?

  • ITC is eligible for all the goods and services which are used within the business operations and course of furtherance, However, there are cases in which the ITC on goods and services has been restricted. And going by the laws the ITC is only permittable when the motor vehicle is acquired for resale or for transportation of passengers/ goods or for imparting training. Only the aforementioned causes make eligible for the ITC else all the causes may be dismissed for the ITC

Q. Ready-made garments attracting 5% and polyester yarn at 18% GST. How much credit will be available?

  • Polyester Yarn will grant whole 18% tax credit

Q. Can a refund be claimed from the duty-free shop?

  • There is no provision for ITC in the exempt free shops

Q. A manufacturing company providing canteen services to the workers. WIll it provide input tax credit?

  • Section 17-5 of ITC does not provide input tax credit for such transactions

Q. Will credit be available for the imported stocks available until 30 June?

  • If all the documents are there of the stocks, then the credit can be claimed

Q. A raw material trader can get ITC for the transportation of goods?

  • The tax paid on transportation services can be availed for Input tax credit

Q. How to avail ITC on old stocks of medicine?

  • If documents are complete than the ITC will be available but if in case, the documents are not there, then the product category with 18-28 percent will provide 60 percent CGST, while 5-12 percent tax items will give a CGST rate of 40 percent

Q. Do business with manufacturing and distribution will have to register again for the input distribution?

  • Yes, there will be a separate registration for the ISD services

Q. Who will pay the GST of loading trucks GST which is capped at % percent?

  • Whoever claims the goods will be paying the GST, and if in case he is unregistered dealer he may have to pay the GST to the transporter and will have to submit the GST to the reverse charge mechanism

Q. If in case, the registrant takes one PAN for two registration with two different verticals. will be there any tax on the transactions in between?

  • Yes, the registration of both will be considered two separate entities so there will be a tax on the transaction on them. While there will be applicable for credit also

Q. What is the limitation for the registered dealer in transactions with the unregistered dealer?

  • A registered dealer can transact with the unregistered dealers with the maximum limit of INR 5000 per day with one or more dealers

Q. If a composition dealer purchases from an unregistered dealer, will it have to pay under RCM?

  • Yes, the reverse charge mechanism is applicable to the composition dealers also

Q. Will there be Cess input tax credit available?

  • The credit of cess will be available but it can only be used in paying the Cess

Consumers Specific ITC FAQs

Q. What if 75 percent of apartment building work was completed before the GST. Is GST still applicable at the paid amount to the builder?

  • The GST will be applicable on the amount paid after 1st July, still, the builder must reduce the further amount as the input credit benefits will be available to him

Q. Is there input tax credit available for the furniture and AC purchased for office purpose?

  • Yes, there will be input tax credit available for all the purchases made for the office purpose

Q. When there is HSN code mismatch but the tax rate is similar, so is there any effect on input tax credit?

  • No, there will be no difference in the input tax credit

Q. What if a hotel doing business under 10 lakh turnover, has contracts with online hotel booking portals which require GSTN number for further business?

  • Yes, the registration is necessary to deal with registered online portals as it will affect their input claims further. It is also necessary to file taxes and necessary return on time

Traders Specific ITC FAQs

Q. What is the time limit for holding old stocks, and is there any GST applicable on it?

  • There is no time limit for keeping old stock but if input tax credit is to availed on that old stock than there is a time limit of six months

Q. What if trader operates in other states even when its turnover is less than 20 lakh limit?

  • The trader has to register under GST, as it is doing operations in other states also. He cannot opt for composition scheme either with all the invoice rules to be properly followed. But one can claim input credit if he pays input tax

Q. What is the case in bearing supply, as sometimes there is no issuance of invoice?

  • There is an issue regarding the B2B supplies, as the invoice is a must for it. While it is also important to the input tax credit claim which requires an invoice. The invoice must also contain GST number and CGST SGST details

Q. Garments industry input is effected as INR 25 input gives only INR 15 output. Will there be any refund of remaining INR 10?

  • No, according to the GST act refund provisions, there is no refund on the input. But the credit can be used elsewhere in the transaction chain

Q. Do single state transportation of goods with turnover less than 20 lakh requires GST number to be given to the transporters?

  • No, there is no requirement of GST number

Q. As a retailer with 50 lakh turnover, Which scheme must be taken under GST?

  • Composition scheme seems to be more feasible for a retailer as it has a very less compliance in front of the general scheme. In a composition scheme where a retailer has to file 1 return in 3 months, the general scheme has 3 tax returns in one month. Also, there is no need to give invoice details, but in the composition scheme you cannot charge taxes and cannot take input credit

Q. What is the final date to apply for composition scheme?

  • The government has extended the application of composition scheme till 16th of August

Q. Can a dealer opt for a composition scheme if he has old stock of inter state purchase?

  • No, a dealer cannot ask for composition scheme if he has an interstate purchased stock

Q. How to obtain input tax credit in GST if GSTN number is not mentioned on the invoice?

  • There must be GSTN number mandatory on all invoices regardless of mistakes

Q. Is there any provision to claim input tax credit and depreciation, if the office furniture and machine are purchased?

  • One can claim input tax credit but cannot claim depreciation

Q. In an imitation jewellery business, is there a concept of claiming input tax credit?

  • Yes, one can take input tax credit after paying all the due taxes

Q. Is there input tax credit available on the office stationery purchase?

  • Yes, there is a provision of input tax credit on all the purchases of office stationery

Q. When a product is purchased on the basis of RCM and the due tax is duly deposited on 10th of August, so when will input credit be claimed?

  • It can be claimed in July Returns But the returns to be filed before 20th of August

Q. What is the GST on cars?

  • GST of 28% is levied on the cars while it also depends on Engine capacity and length of the cars. Less than 4 meters and engine capacity of 1200 cc is levied with 1% cess and an engine capacity of 1500 cc is having a 3% cess. While SUV and luxury cars will be applicable with 15% cess totalling 28% GST + 15% cess

Step by Step Guide to File ITR 6 Online AY 2019-20

ITR 6 Form Filing Online

The ITR-6 Form for Income Tax Return filing with the IT department of India is meant for only those companies that are not claiming exemption u/s 11 (Income from property held for charitable or religious purposes)

Who can file ITR 6 Form?

ITR-6 can be used by companies that are not claiming exemption u/s 11 (Income from property held for charitable or religious purposes).

Who are not eligible to file ITR 6 Form?

Taxpayers who are not liable to file for ITR-6 Form are mentioned below.

  • Individuals, Hindu Undivided Family (HUF), Firm, Association of Person (AOP), Body of Individuals (BOI), Local Authority and Artificial Judiciary Person
  • Companies that claim an exemption under section 11 (Income from property held for charitable or religious purposes)

What is the eligibility criteria for filing ITR-6 Form?

The companies which are registered under Indian Companies Act of 1956 or any other law are eligible to file ITR-6 Form even if they are not claiming exemption u/s 11 (Income from property held for charitable or religious purposes)

Read Also: Complete Guide to File ITR 4 Sugam Form Online

What is the last date for filing ITR-6 Form?

30th September is the last date for filling ITR-6 form for AY 2019-20.

Let’s Go for Online ITR 6 Filing Guide

Part A-GEN General: Personal Information

  • Name
  • PAN
  • Is there any change in the company’s name? If yes, please furnish the old name
  • Corporate Identity Number (CIN) issued by MCA
  • Flat/Door/Block No
  • Name of Premises/Building/Village
  • Date of incorporation
  • Date of commencement of business
  • Road/Street/Post Office
  • Area/Locality
  • Type of company
    • Domestic Company
    • Foreign Company
  • Town/City/District
  • State
  • Pin code/Zip code
  • If a public company write 6, and if private company write 7 (as defined in section 3 of The Companies Act)
  • Office Phone Number with STD code/ Mobile No. 1
  • Mobile No. 2
  • Email Address-1
  • Email Address-2

Filing Status

  • Filed u/s (Tick)[Please see instruction ]
    • 139(1)- On or Before due date
    • 139(4)- After due date
    • 139(5)- Revised Return
    • 92CD-Modified return
  • After condonation of delay Or filed in response to notice u/s
    • 139
    • 142
    • 148
    • 153
    • 153C
  • If filed, in response to notice u/s 139(9)/142(1)/148/153A/153C or order u/s 119(2)(b), enter date of such notice/order, or if filed u/s 92CD enter date of advance pricing agreement
  • Residential Status (Tick)
    • Resident
    • Non-Resident
  • Whether opting for section 115BA? (Yes/No) (applicable on Domestic Company)
  • Whether total turnover/ gross receipts in the previous year 2016-17 exceeds 250 crore rupees? (Yes/No) (applicable for Domestic Company)
  • Whether assessee is a resident of a country or specified territory with which India has an agreement referred to in sec 90 (1) or Central Government has adopted any agreement under sec 90A(1)?
  • In the case of non-resident, is there a Permanent Establishment (PE) in India
  • Whether assesses is required to seek registration under any law for the time being in force relating to companies?
  • Whether the financial statements of the company are drawn up in compliance to the Indian Accounting Standards specified in Annexure to the companies (Indian Accounting Standards) Rules, 2015
  • Whether assesses is located in an International Financial Services Centre and derives income solely in convertible foreign exchange?
  • Whether the assesses company is under liquidation
  • Whether you are an FII / FPI? Yes/No If yes, please provide SEBI Regn. No.
  • Whether the company is a producer company as defined in Sec.581A of Companies Act, 1956?
  • Whether this return is being filed by a representative assesses? If yes, please furnish following information
  • Whether you are recognised as start up by DPIIT

Audit Information

  • Whether liable to maintain accounts as per section 44AA?
  • Whether liable for audit under section 44AB?
  • If (b) is Yes, whether the accounts have been audited by an accountant?
  • Are you liable for Audit u/s 92E?
  • If liable to furnish other audit report under the Income-tax Act, mention the date of furnishing the audit report?
  • Mention the Act, section and date of furnishing the audit report under any Act other than the Income-tax Act

Holding Status

  • Nature of company (select 1 if holding company, select 2 if a subsidiary company, select 3 if both, select 4 if any other)
  • If subsidiary company, mention the details of the Holding Company
  • If holding company, mention the details of the subsidiary companies

Business Organisation

  • In case of amalgamating company, mention the details of amalgamated company
  • In case of amalgamated company, mention the details of amalgamating company
  • In case of demerged company, mention the details of resulting company
  • In case of resulting company, mention the details of demerged company

Key Persons: Particulars of Managing Director, Directors, Secretary and Principal officer(s) who have held the office during the previous year.

  • S.No.
  • Name
  • Designation
  • Residential Address
  • PAN
  • Director Identification Number (DIN) issued by MCA, in case of Director

Shareholders Information: Particulars of persons who were beneficial owners of shares holding not less than 10% of the voting power at any time of the previous year.

  • S.No.
  • Name and Address
  • Percentage of shares held
  • PAN (if allotted)

Ownership Information

  • In case of unlisted company, particulars of natural persons who were the ultimate beneficial owners, directly or indirectly, of shares holding not less than 10% of the voting power at any time of the previous year
    • S.No.
    • Name Address
    • Percentage of shares held
    • PAN (if allotted)
  • In case of foreign company, please furnish the details of ultimate parent company
    • S.No
    • Name
    • Address
    • Country of residence
    • PAN (if allotted)
    • Taxpayer’s registration number or any unique identification number allotted in the country of residence
  • In case of Foreign company, please furnish the details of immediate parent company.
    • S.No
    • Name
    • Address
    • Country of residence
    • PAN (if allotted)
    • Taxpayer’s registration number or any unique identification number allotted in the country of residence

Nature of Company and Its Business

  • Whether a public sector company as defined in section 2(36A) of the Income-tax Act
  • Whether a company owned by the Reserve Bank of India
  • Whether a company in which not less than forty percent of the shares are held (whether singly or taken together) by the Government or the Reserve Bank of India or a corporation owned by that Bank
  • Whether a banking company as defined in clause (c) of section 5 of the Banking Regulation Act,1949
  • Whether a scheduled Bank being a bank included in the Second Schedule to the Reserve Bank of India Act
  • Whether a company registered with Insurance Regulatory and Development Authority (established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999)
  • Whether a company being a non-banking Financial Institution
  • Whether the company is unlisted? If yes, please ensure to fill up the Schedule SH-1 and Schedule AL-1
  • Nature of business or profession, if more than one business or profession indicate the three main activities/ products (Other than those declaring Income under section 44AE)

Part A-BS: Balance Sheet as on 31st Day of March, 2019 or as on the Date of Amalgamation

  • I Equity and Liabilities:
    • Shareholder’s Fund
    • Share Application Money Pending Allotment
    • Non-current Liabilities
    • Current Liabilities
  • II Assets
    • Non-current Assets
    • Current Assets

Part A-BS – Ind AS: Balance Sheet as on 31st Day of March, 2019 or as on the Date of Business Combination [applicable for A Company Whose Financial Statements Are Drawn Up in Compliance to the Indian Accounting Standards Specified in Annexure to the Companies (Indian Accounting Standards) Rules, 2015] (Fill Items Below in a Case Where Regular Books of Accounts Are Maintained, Otherwise Fill Item Iii)

  • I Equity and Liabilities
    • Equity share capital
    • Other Equity
    • Total Equity (Aiv + Biii)
  • II Liabilities
    • Non-current liabilities
    • Current liabilities
    • Current Tax Assets (Net)
    • Other current assets
  • III In a case where regular books of account of business or profession are not maintained – (furnish the following information as on 31st day of March, 2019, in respect of business or profession)

Part A: Manufacturing Account: Manufacturing Account for the financial year 2018-19 (fill items 1 to 3 in a case where regular books of accounts are maintained, otherwise fill items 61 to 64 as applicable)

  • Opening Inventory
  • Closing Stock
  • Cost of Goods Produced – transferred to Trading Account (1F – 2)

Part A-Trading Account: Trading Account for the financial year 2018-19 (fill items 4 to 12 in a case where regular books of accounts are
maintained, otherwise fill items 61 to 64 as applicable)

  • Revenue from operations
  • Closing Stock of Finished Stocks
  • Total of credits to Trading Account (4D + 5iv )
  • Opening Stock of Finished Goods
  • Purchases (net of refunds and duty or tax, if any)
  • Direct Expenses (9i + 9ii + 9iii)
  • Duties and taxes, paid or payable, in respect of goods and services purchased
  • Cost of goods produced – Transferred from Manufacturing Account
  • Gross Profit from Business/Profession – transferred to Profit and Loss account (6-7-8-9-10xii11)
  • Turnover from Intraday Trading
  • Income from Intraday Trading

Part A-P& L: Profit and Loss Account for the financial year 2018-19 (fill items 13 to 60 in a case where regular books of accounts are maintained, otherwise fill items 61 to 64 as applicable)

  • Gross profit transferred from Trading Account
  • Other income
  • Total of credits to profit and loss account (13+14xii)
  • Freight outward
  • Consumption of stores and spare parts
  • Power and fuel
  • Rents
  • Repairs to building
  • Repairs to machinery
  • Compensation to employees
  • Insurance
  • Workmen and staff welfare expenses
  • Entertainment
  • Hospitality
  • Conference
  • Sales promotion including publicity (other than advertisement)
  • Advertisement
  • Commission
  • Royalty
  • Professional / Consultancy fees / Fee for technical services
  • Hotel, boarding and Lodging
  • Traveling expenses other than on foreign traveling
  • Foreign travelling expenses
  • Conveyance expenses
  • Telephone expenses
  • Guest House expenses
  • Club expenses
  • Festival celebration expenses
  • Scholarship
  • Gift
  • Donation
  • Rates and taxes, paid or payable to Government or any local body (excluding taxes on income)
  • Audit fee
  • Other expenses (specify nature and amount)
  • Bad debts (specify PAN of the person, if available, for whom Bad Debt for amount of Rs. 1 lakh or more is claimed and amount)
  • Provision for bad and doubtful debts
  • Other provisions
  • Profit before interest, depreciation and taxes [15 – (16 to 21 + 22xi + 23v + 24 to 29 + 30iii + 31iii + 32iii + 33 to
  • 43 + 44x + 45 + 46iii + 47vii + 48 + 49)]
  • Interest
  • Depreciation and amortisation
  • Net profit before taxes (50 – 51iii – 52)
  • Provision for current tax
  • Provision for Deferred Tax and deferred liability
  • Profit after tax (53 – 54 – 55)
  • Balance brought forward from previous year
  • Amount available for appropriation (56 + 57)
  • Appropriations
  • Balance carried to balance sheet (58 – 59vi)
  • COMPUTATION OF PRESUMPTIVE INCOME FROM GOODS CARRIAGES UNDER SECTION 44AE
  • In case of Foreign Company whose total income comprises solely of profits and gains from business referred to in sections 44B, 44BB, 44BBA or 44BBB, furnish the following information

Part A: Manufacturing Account Ind-AS: Manufacturing Account for the financial year 2018-19 [applicable for a company whose financial statements are drawn up in compliance to the Indian Accounting Standards specified in Annexure to the companies (Indian Accounting Standards) Rules, 2015] (fill items 1 to 3 in a case where regular books of accounts are maintained, otherwise fill items 61 to 64 as applicable)

  • Opening Inventory
  • Closing Stock
  • Cost of Goods Produced – transferred to Trading Account (1F – 2)

Part A-Trading Account Ind-AS: Trading Account for the financial year 2018-19 [applicable for a company whose financial statements are drawn up in compliance to the Indian Accounting Standards specified in Annexure to the companies (Indian Accounting Standards) Rules, 2015] (fill items 4 to 12 in a case where regular books of accounts are maintained, otherwise fill items 61 to 64 as applicable)

  • Revenue from operations
  • Closing Stock of Finished Stocks
  • Total of credits to Trading Account (4D + 5iv )
  • Opening Stock of Finished Goods
  • Purchases (net of refunds and duty or tax, if any)
  • Direct Expenses (9i + 9ii + 9iii)
  • Duties and taxes, paid or payable, in respect of goods and services purchased
  • Cost of goods produced – Transferred from Manufacturing Account
  • Gross Profit from Business/Profession – transferred to Profit and Loss account (6-7-8-9-10xii11)
  • Turnover from Intraday Trading
  • Income from Intraday Trading

Part A-P& L Ind-AS: Profit and Loss Account for the financial year 2018-19 [applicable for a company whose financial statements are drawn
up in compliance to the Indian Accounting Standards specified in Annexure to the companies (Indian Accounting Standards) Rules, 2015]
(fill items 13 to 60 in a case where regular books of accounts are maintained, otherwise fill items 61 to 64 as applicable)

  • Gross profit transferred from Trading Account
  • Other income
  • Total of credits to profit and loss account (13+14xii)
  • Freight outward
  • Consumption of stores and spare parts
  • Power and fuel
  • Rents
  • Repairs to building
  • Repairs to machinery
  • Compensation to employees
  • Insurance
  • Workmen and staff welfare expenses
  • Entertainment
  • Hospitality
  • Conference
  • Sales promotion including publicity (other than advertisement)
  • Advertisement
  • Commission
  • Royalty
  • Professional / Consultancy fees / Fee for technical services
  • Hotel, boarding and Lodging
  • Traveling expenses other than on foreign traveling
  • Foreign travelling expenses
  • Conveyance expenses
  • Telephone expenses
  • Guest House expenses
  • Club expenses
  • Festival celebration expenses
  • Scholarship
  • Gift
  • Donation
  • Rates and taxes, paid or payable to Government or any local body (excluding taxes on income)
  • Audit fee
  • Other expenses (specify nature and amount)
  • Bad debts (specify PAN of the person, if available, for whom Bad Debt for amount of Rs. 1 lakh or more is claimed and amount)
  • Provision for bad and doubtful debts
  • Other provisions
  • Profit before interest, depreciation and taxes [15 – (16 to 21 + 22xi + 23v + 24 to 29 + 30iii + 31iii + 32iii + 33 to 43 + 44x + 45 + 46iii + 47vii + 48 + 49)]
  • Interest
  • Depreciation and amortisation
  • Net profit before taxes (50 – 51iii – 52)
  • Provision for current tax
  • Provision for Deferred Tax and deferred liability
  • Profit after tax (53 – 54 – 55)
  • Balance brought forward from previous year
  • Amount available for appropriation (56 + 57)
  • Appropriations
  • Balance carried to balance sheet (58 – 59vi)
  • A Items that will not be reclassified to P&L
  • Total Comprehensive Income (56 + 61A + 61B)
  • COMPUTATION OF PRESUMPTIVE INCOME FROM GOODS CARRIAGES UNDER SECTION 44AE
  • IF REGULAR BOOKS OF ACCOUNT OF BUSINESS OR PROFESSION ARE NOT MAINTAINED,furnish the following information for previous year 2018-19 in respect of business or profession – (OTHER THAN COVERED U/S 44AE)

Part A- OI Other Information (mandatory, if liable for audit under section 44AB, for other fill, if applicable)

  • Method of accounting employed in the previous year
  • Is there any change in method of accounting
  • Increase in the profit or decrease in loss because of deviation, if any, as per Income Computation Disclosure Standards notified under section 145(2) [column 11a(iii) of Schedule ICDS]
  • Decrease in the profit or increase in loss because of deviation, if any, as per Income Computation Disclosure Standards notified under section 145(2) [column 11b(iii) of Schedule ICDS]
  • Method of valuation of closing stock employed in the previous year
  • Amounts not credited to the profit and loss account, being
  • Amounts debited to the profit and loss account, to the extent disallowable under section 36 due to nonfulfilment of condition specified in relevant clauses
  • Amounts debited to the profit and loss account, to the extent disallowable under section 37
  • Amounts debited to the profit and loss account, to the extent dis-allowable under section 40
  • Any amount disallowed under section 40 in any preceding previous year but allowable during the previous year
  • Amounts debited to the profit and loss account, to the extent disallowable under section 40A
  • Any amount disallowed under section 43B in any preceding previous year but allowable during the previous year
  • Any amount debited to profit and loss account of the previous year but disallowable under section 43B
  • Amount of credit outstanding in the accounts in respect of
  • Amounts deemed to be profits and gains under section 33AB or 33ABA or 33AC
  • Any amount of profit chargeable to tax under section 41
  • Amount of income or expenditure of prior period credited or debited to the profit and loss account (net)
  • Amount of expenditure disallowed u/s 14A

Similar: Common Questions and Answers While Filing Income Tax Return

Part A – QD Quantitative details (mandatory, if liable for audit under section 44AB)

  • In the case of a trading concern
  • In the case of a manufacturing concern

Part A – OL Receipt and payment account of company under liquidation

  • Opening balance
  • Receipts
  • Total of opening balance and receipts 3
  • Payments
  • Closing balance
  • Total of closing balance and payments (4vi + 5iii)

Schedules To The Return Form (Fill As Applicable)

Schedule HP: Details of Income from House Property (Please refer instructions) (Drop down to be provided indicating ownership of property)

  • Address of property 1
  • Address of property 2
  • Pass through income if any
  • Income under the head “Income from house property” (1k + 2k + 3) (if negative take the figure to 2i of schedule CYLA)
  • Note:
    • Furnishing of PAN of tenant is mandatory, if tax is deducted under section 194-IB.
    • Furnishing of TAN of tenant is mandatory, if tax is deducted under section 194-I.

Schedule BP: Computation of income from business or profession

  • From business or profession other than speculative business and specified business
  • Computation of income from speculative business
  • Computation of income from specified business under section 35AD
  • Income chargeable under the head ‘Profits and gains from business or profession'(A38+B44+C50)
  • Intra head set off of business loss of current year

Schedule DPM: Depreciation on Plant and Machinery (Other than assets on which full capital expenditure is allowable as deduction under any other
section)

  • Block of assets Plant and machinery
  • Rate (%) 15 30 40
  • Written down value on the first day of previous year
  • Additions for a period of 180 days or more in the previous year
  • Consideration or other realization during the previous year out of 3 or 4
  • Amount on which depreciation at full rate to be allowed (3 + 4 -5) (enter 0, if result is negative)
  • Additions for a period of less than 180 days in the previous year
  • Consideration or other realizations during the year out of 7
  • Amount on which depreciation at half rate to be allowed (7 – 8) (enter 0, if result is negative)
  • Depreciation on 6 at full rate
  • Depreciation on 9 at half rate
  • Additional depreciation, if any, on 4
  • Additional depreciation, if any, on 7
  • Additional depreciation relating to immediately preceding year on asset put to use for less than 180 days
  • Total depreciation (10+11+12+13+14)
  • Depreciation disallowed under section 38(2) of the I.T. Act (out of column 15)
  • Net aggregate depreciation (15-16)
  • Proportionate aggregate depreciation allowable in the event of succession, amalgamation, demerger etc. (out of column 17)
  • Expenditure incurred in connection with transfer of asset/ assets
  • Capital gains/ loss under section 50 (5 + 8 -3 – 4 -7 -19) (enter negative only, if block ceases to exist)
  • Written down value on the last day of previous year* (6+ 9 -15) (enter 0, if result is negative)

Schedule DOA: Depreciation on other assets (Other than assets on which full capital expenditure is allowable as deduction)

  • Block of assets Land Building (not including land), Furniture and fittings, Intangible assets Ships
  • Rate (%) Nil 5,10,40,10,25,20
  • Written down value on the first day of previous year
  • Additions for a period of 180 days or more in the previous year
  • Consideration or other realization during the previous year out of 3 or 4
  • Amount on which depreciation at full rate to be allowed (3 + 4 -5) (enter 0, if result is negative)
  • Additions for a period of less than 180 days in the previous year
  • Consideration or other realizations during the year out of 7
  • Amount on which depreciation at half rate to be allowed (7-8) (enter 0, if result is negative)
  • Depreciation on 6 at full rate
  • Depreciation on 9 at half rate
  • Total depreciation (10+11)
  • Depreciation disallowed under section 38(2) of the I.T. Act (out of column 12)
  • Net aggregate depreciation (12-13)
  • Proportionate aggregate depreciation allowable in the event of succession, amalgamation, demerger etc. (out of column 14)
  • Expenditure incurred in connection with transfer of asset/ assets
  • Capital gains/ loss under section 50* (5 + 8 -3-4 -7 -16) (enter negative only if block ceases to exist)
  • Written down value on the last day of previous year* (6+ 9 -12) (enter 0 if result is negative)

Schedule DEP: Summary of depreciation on assets (Other than on assets on which full capital expenditure is allowable as deduction under any other
section)

  • Plant and machinery
  • Building (not including land)
  • Furniture and fittings(Schedule DOA- 14v or 15v as applicable)
  • Intangible assets (Schedule DOA- 14vi or 15vi as applicable)
  • Ships (Schedule DOA- 14vii or 15vii as applicable)
  • Total depreciation ( 1d+2d+3+4+5)

Schedule DCG: Deemed Capital Gains on sale of depreciable assets

  • Plant and machinery
  • Building (not including land)
  • Furniture and fittings ( Schedule DOA- 17v)
  • Intangible assets (Schedule DOA- 17vi)
  • Ships (Schedule DOA- 17vii)
  • Total ( 1d+2d+3+4+5)

Schedule ESR: Expenditure on scientific Research etc. (Deduction under section 35 or 35CCC or 35CCD)

  • Sl No
  • Expenditure of the nature referred to in section
  • Amount, if any, debited to profit and loss account
  • Amount of deduction allowable
  • Amount of deduction in excess of the amount debited to profit and loss account (4) = (3) – (2)

Schedule CG: Capital Gains

  • Short-term Capital Gains (STCG) (Sub-items 4 & 5 are not applicable for residents)
  • Long-term capital gain (LTCG) (Sub-items 5, 6, 7, 8 & 9 are not applicable for residents)
  • Income chargeable under the head “CAPITAL GAINS” (A10 + B13) (take B10 as nil, if loss)
  • Information about deduction claimed against Capital Gains
  • Set-off of current year capital losses with current year capital gains (excluding amounts included in A7 & B9 which is chargeable under DTAA)
  • Information about accrual/receipt of capital gain

Schedule OS: Income from other sources

  • Gross income chargeable to tax at normal applicable rates (1a+ 1b+ 1c+ 1d + 1e)
  • Income chargeable at special rates (2a+ 2b+ 2c+ 2d + 2e)
  • Deductions under section 57 (other than those relating to income chargeable at special rates under 2a, 2b & 2d )
  • Amounts not deductible u/s 58
  • Profits chargeable to tax u/s 59
  • Net Income from other sources chargeable at normal applicable rates (1 – 3 + 4 + 5) (If negative take the figure to 4i of schedule CYLA)
  • Income from other sources (other than from owning and maintaining race horses) (2 +6 )) (enter 6 as nil, if negative)
  • Income from the activity of owning race horses
  • Income under the head “Income from other sources” (7 + 8e) (take 8e e as nil if negative)
  • Information about accrual/receipt of income from Other Sources

Schedule CYLA: Details of Income after Set off of current year losses

  • Sl.No
  • Head/ Source of Income
  • Income of current year (Fill this column only if income is zero or positive)
  • House property loss of the current year set off
  • Business Loss (other than speculation or specified business loss) of the current year set off
  • Other sources loss (other than loss from race horses and amount chargeable to special rate of tax) of the current year set off
  • Current year’s Income remaining after set off

Schedule BFLA: Details of Income after Set off of Brought Forward Losses of earlier years

  • Sl.No
  • Head/ Source of Income
  • Income after set off, if any, of current year’s losses as per 5 of Schedule CYLA)
  • Brought forward loss set off
  • Brought forward depreciation set off
  • Brought forward allowance under section 35(4) set off
  • Current year’s income remaining after set off

Schedule CFL: Details of Losses to be carried forward to future years

  • Sl.No
  • Assessment Year
  • Date of Filing (DD/MM/YYYY)
  • House property loss
  • Loss from business other than loss from speculative business and specified business
  • Loss from speculative business
  • Loss from specified business
  • Short-term capital loss
  • Long-term Capital loss
  • Loss from owning and maintaining race horses

Schedule UD: Unabsorbed depreciation and allowance under section 35(4)

  • Sl No
  • Assessment Year
  • Amount of brought forward unabsorbed depreciation
  • Amount of depreciation set-off against the current year income
  • Balance carried forward to the next year
  • Allowance under section 35(4)
  • Amount of brought forward unabsorbed allowance
  • Amount of allowance set-off against the current year income
  • Balance Carried forward to the next year

Schedule ICDS: Effect of Income Computation Disclosure Standards on profit

  • Accounting Policies
  • Valuation of Inventories (other than the effect of change in method of valuation u/s 145A, if the same is separately reported at col. 4d or 4e of Part A-OI)
  • Construction Contracts
  • Revenue Recognition
  • Tangible Fixed Assets
  • Changes in Foreign Exchange Rates
  • Government Grants
  • Securities (other than the effect of change in method of valuation u/s 145A, if the same is separately reported at col. 4d or 4e of Part A-OI)
  • Borrowing Costs
  • Provisions, Contingent Liabilities and Contingent Assets
  • Total effect of ICDS adjustments on profit (I+II+III+IV+V+VI+VII+VIII+IX+X) (if positive)
  • Total effect of ICDS adjustments on profit (I+II+III+IV+V+VI+VII+VIII+IX+X) (if negative)

Schedule 10AA: Deduction under section 10AA

  • Sl
  • Undertaking
  • Assessment year in which unit begins to manufacture/produce/provide services
  • Sl
  • Amount of deduction

Schedule 80G: Details of donations entitled for deduction under section 80G

  • Donations entitled for 100% deduction without qualifying limit
  • Donations entitled for 50% deduction without qualifying limit
  • Donations entitled for 100% deduction subject to qualifying limit
  • Donations entitled for 50% deduction subject to qualifying limit
  • Total donations (Aiv + Biv + Civ + Div)

Schedule 80GGA: Details of donations for scientific research or rural development

  • S.No.
  • Relevant clause under which deduction is claimed (drop down to be provided)
  • Name and address of donee
  • PAN of Donee
  • Amount of donation
  • Eligible Amount of donation

Schedule RA: Details of donations to research associations etc. [deduction under sections 35(1)(ii) or 35(1)(iia) or 35(1)(iii) or 35(2AA)]

  • Name and address of donee
  • PAN of Donee
  • Amount of donation
  • Eligible Amount of donation

Schedule 80-IA: Deductions under section 80-IA

  • Deduction in respect of profits of an enterprise referred to in section 80-IA(4)(i) [Infrastructure facility]
  • Deduction in respect of profits of an undertaking referred to in section 80-IA(4)(ii) [Telecommunication services]
  • Deduction in respect of profits of an undertaking referred to in section 80-IA(4)(iii) [Industrial park and SEZs]
  • Deduction in respect of profits of an undertaking referred to in section 80-IA(4)(iv) [Power]
  • Deduction in respect of profits of an undertaking referred to in section 80-IA(4)(v) [Revival of power generating plant] and deduction in respect of profits of an undertaking referred to in section 80-IA(4)(vi) [Crosscountry natural gas distribution network]
  • Total deductions under section 80-IA (a1 + a2 + b1 + b2 + c1 + c2+ d1 + d2+ e1 + e2)

Schedule 80-IB: Deductions under section 80-IB

  • Deduction in respect of industrial undertaking located in Jammu & Kashmir [Section 80-IB(4)]
  • Deduction in respect of industrial undertaking located in industrially backward states specified in Eighth Schedule [Section 80-IB(4)]
  • Deduction in respect of industrial undertaking located in industrially backward districts [Section 80-IB(5)]
  • Deduction in the case of multiplex theatre [Section 80-IB(7A)]
  • Deduction in the case of convention centre [Section 80-IB(7B)]
  • Deduction in the case of company carrying on scientific research [Section 80-IB(8A)]
  • Deduction in the case of undertaking which begins commercial production or refining of mineral oil [Section 80-IB(9)]
  • Deduction in the case of an undertaking developing and building housing projects [Section 80-IB(10)]
  • Deduction in the case of an undertaking operating a cold chain facility [Section 80-IB(11)]
  • Deduction in the case of an undertaking engaged in processing, preservation and packaging of fruits, vegetables, meat, meat products, poultry, marine or dairy products [Section 80-IB(11A)]
  • Deduction in the case of an undertaking engaged in integrated business of handling, storage and transportation of food grains [Section 80-IB(11A)]
  • Deduction in the case of an undertaking engaged in operating and maintaining a rural hospital [Section 80-IB(11B)]
  • Deduction in the case of an undertaking engaged in operating and maintaining a hospital in any area, other than excluded area [Section 80-IB(11C)
  • Total deduction under section 80-IB (Total of a1 to m2)

Schedule 80-IC or 80-IE: Deductions under section 80-IC or 80-IE

  • Deduction in respect of undertaking located in Sikkim
  • Deduction in respect of undertaking located in Himachal Pradesh
  • Deduction in respect of undertaking located in Uttaranchal
  • Deduction in respect of undertaking located in North-East
  • Total deduction under section 80-IC or 80-IE (a + d + c + dh)

Schedule VI-A Deductions under Chapter VI-A

  • Part B- Deduction in respect of certain payments
  • Part C- Deduction in respect of certain incomes
  • Total deductions under Chapter VI-A (1 + 2)

Schedule SI: Income chargeable to tax at special rates [Please see instruction Number-7(ii) for section and rate of tax] SPECIAL RATE

  • 111A (STCG on shares/equity oriented MF on which STT paid)
  • 115AD (STCG for FIIs on securities where STT not paid)
  • 112 proviso (LTCG on listed securities/ units without indexation)
  • 112(1)(c)(iii) (LTCG for non-resident on unlisted securities)
  • 115AB (LTCG for non-resident on units referred in section115AB)
  • 115AC (LTCG for non-resident on bonds/GDR)
  • 115AD (LTCG for FII on securities)
  • 112 (LTCG on others)
  • 112A (LTCG on sale of shares or units on which STT is paid)
  • STCG chargeable at special rates in India as per DTAA
  • LTCG Chargeable at special rates in India as per DTAA
  • 115B (Profits and gains of life insurance business)
  • 115AC (Income of a non-resident from bonds or GDR purchased in foreign currency)
  • 115BB (Winnings from lotteries, puzzles, races, games etc.)
  • 115BBD (Dividend received from specified foreign company)
  • 115BBE (Income under section 68, 69, 69A, 69B, 69C or 69D)
  • 115A(1)(b) (Income of a foreign company from Royalty)
  • 115BBF (Tax on income from patent)
  • 115BBG (Tax on income from transfer of carbon credits)
  • Income from other sources chargeable at special rates in India as per DTAA
  • Pass Through Income in the nature of Short Term Capital Gain chargeable @ 15%
  • Pass Through Income in the nature of Short Term Capital Gain chargeable @ 30%
  • Pass Through Income in the nature of Long Term Capital Gain chargeable @ 10%
  • Pass Through Income in the nature of Long Term Capital Gain chargeable @ 20%
  • Pass through income in the nature of income from other source chargeable at special rates

Schedule EI: Details of Exempt Income (Income not to be included in Total Income or not chargeable to tax)

  • Interest income
  • Dividend income
  • 3
    • i Gross Agricultural receipts (other than income to be excluded under rule 7A, 7B or 8 of I.T. Rules)
    • ii Expenditure incurred on agriculture
    • iii Unabsorbed agricultural loss of previous eight assessment years
    • iv Agricultural income portion relating to Rule 7, 7A, 7B(1), 7B(1A) and 8 (from Sl. No. 40 of Sch. BP) iv
    • v Net Agricultural income for the year (i – ii – iii + iv) (enter nil if loss)
    • vi In case the net agricultural income for the year exceeds Rs.5 lakh, please furnish the following details (Fill up details separately for each agricultural land)
  • Other exempt income including exempt income of minor child (please specify)
  • Income not chargeable to tax as per DTAA
  • Pass through income not chargeable to tax (Schedule PTI)
  • Total (1+2+3+4+5+6)

Schedule PTI: Pass Through Income details from business trust or investment fund as per section 115UA, 115UB

  • Sl.
  • Name of business trust/investment fund
  • PAN of the business trust/ investment fund
  • Sl.
  • Head of income
  • Amount of income
  • TDS on such amount, if any

Schedule MAT: Computation of Minimum Alternate Tax payable under section 115JB

  • Whether the Profit and Loss Account is prepared in accordance with the provisions of Parts II of Schedule III to the Companies Act, 2013 (If yes, write ‘Y’, if no write ‘N’)
  • If 1 is no, whether profit and loss account is prepared in accordance with the provisions of the Act governing such company (If yes, write ‘Y’, if no write ‘N’)
  • Whether, for the Profit and Loss Account referred to in item 1 above, the same accounting policies, accounting standards and same method and rates for calculating depreciation have been followed as have been adopted for preparing accounts laid before the company at its annual general body meeting? (If yes, write ‘Y’, if no write ‘N’)
  • Profit after tax as shown in the Profit and Loss Account (enter item 56 of Part A-P&L) )/ (enter item 56 of Part A- P&L Ind AS) (as applicable)
  • Additions (if debited in profit and loss account)
  • Deductions
  • Book profit under section 115JB (4+ 5n – 6l)
  • Whether the financial statements of the company are drawn up in compliance to the Indian Accounting Standards (Ind-AS) specified in Annexure to the companies (Indian Accounting Standards) Rules, 2015. If yes, furnish the details below:-
  • A. Additions to book profit under sub-sections (2A) to (2C) of section 115JB
  • B. Deductions from book profit under sub-sections (2A) to (2C) of section 115JB
  • Deemed total income under section 115JB (7 + 8e – 8j)
  • Tax payable under section 115JB

Schedule MATC: Computation of tax credit under section 115JAA

  • Tax under section 115JB in assessment year 2019-20 (1d of Part-B-TTI)
  • Tax under other provisions of the Act in assessment year 2019-20 (2f of Part-B-TTI)
  • Amount of tax against which credit is available [enter (2 – 1) if 2 is greater than 1, otherwise enter 0]
  • Utilisation of MAT credit Available [Sum of MAT credit utilised during the current year is subject to maximum of amount mentioned in 3 above and cannot exceed the sum of MAT Credit Brought Forward ]
  • Amount of tax credit under section 115JAA utilised during the year [enter 4(C)xiii]
  • Amount of MAT liability available for credit in subsequent assessment years [enter 4(D)xiii]

Schedule- DDT: Details of tax on distributed profits of domestic companies and its payment

  • Section Under which dividend is being declared
  • Date of declaration or distribution or payment, whichever is earliest, of dividend by domestic company (DD/MM/YYYY) (DD/MM/YYYY) (DD/MM/YYYY)
  • Rate of dividend, declared, distributed or paid
  • Amount of dividend declared, distributed or paid
  • Amount of reduction as per section 115-O(1A)
  • Tax payable on dividend declared, distributed or paid
  • Interest payable under section 115P
  • Additional income-tax and interest payable (6d+7)
  • Tax and interest paid
  • Net payable/refundable (8-9)
  • Date(s) of deposit of dividend distribution tax
  • Name of Bank and Branch
  • BSR Code
  • Serial number of challan
  • Amount deposited

Schedule- BBS: Details of tax on distributed income of a domestic company on buy back of shares, not listed on stock exchange

  • Date of payments of any consideration to the shareholder on buy back of share
  • Amount of consideration paid by the company on buy-back of shares
  • Amount received by the company for issue of such shares
  • Distributed Income of the company (2 – 3)
  • Tax payable on distributed income
  • Interest payable under section 115QB
  • Additional income-tax and interest payable (5d + 6)
  • Tax and interest paid
  • Net payable/refundable (7-8)
  • Date(s) of deposit of tax on distribution income
  • Name of Bank and Branch
  • BSR Code
  • Serial number of challan
  • Amount deposited

Schedule FSI: Details of Income from outside India and tax relief

  • Sl.
  • Country Code
  • Taxpayer Identification Number
  • Sl.
  • Head of income
  • Income from outside India (included in PART BTI)
  • Tax paid outside India
  • Tax payable on such income under normal provisions in India
  • Tax relief available in India (e)= (c) or (d) whichever is lower
  • Relevant article of DTAA if relief claimed u/s 90 or 90A

Schedule TR: Summary of tax relief claimed for taxes paid outside India

  • Details of Tax relief claimed
  • Total Tax relief available in respect of country where DTAA is applicable (section 90/90A) (Part of total of 1(d))
  • Total Tax relief available in respect of country where DTAA is not applicable (section 91) (Part of total of 1(d))
  • Whether any tax paid outside India, on which tax relief was allowed in India, has been refunded/credited by the foreign tax authority during the year? If yes, provide the details below
  • a Amount of tax refunded
  • b Assessment year in which tax relief allowed in India

Schedule FA: Details of Foreign Assets and Income from any source outside India

  • Details of Foreign Depository Accounts held (including any beneficial interest) at any time during the relevant accounting period)
  • Details of Foreign Custodial Accounts held (including any beneficial interest) at any time during the relevant accounting period
  • Details of Foreign Equity and Debt Interest held (including any beneficial interest) in any entity at any time during the relevant accounting period
  • Details of Foreign Cash Value Insurance Contract or Annuity Contract held (including any beneficial interest) at any time during the relevant accounting period
  • Details of Financial Interest in any Entity held (including any beneficial interest) at any time during the relevant accounting period
  • Details of Immovable Property held (including any beneficial interest) at any time during the relevant accounting period
  • Details of any other Capital Asset held (including any beneficial interest) at any time during the relevant accounting period
  • Details of account(s) in which you have signing authority held (including any beneficial interest) at any time during the relevant accounting period and which has not been included in A to D above.
  • Details of trusts, created under the laws of a country outside India, in which you are a trustee, beneficiary or settlor
  • Details of any other income derived from any source outside India which is not included in,- (i) items A to F above and, (ii) income under the head business or profession

Schedule Sh-1: Shareholding Of Unlisted Company (Other Than A Start-Up For Which Schedule Sh-2 Is To Be Filled Up)

  • If you are an unlisted company, please furnish the following details;-
  • Details of shareholding at the end of the previous year
  • Details of equity share application money pending allotment at the end of the previous year
  • Details of shareholders who is not a shareholder at the end of the previous year but was a shareholder at any time during the previous year

Schedule Sh-2: Shareholding of Start-Ups

  • If you are a start-up which has filed declaration in Form-2 under para 5 of DPIIT notification dated 19.02.2019, please furnish the following details of shareholding;-
  • Details of shareholding as at the end of the previous year
  • Details of share application money pending allotment as at the end of the previous year
  • Details of shareholder who is not a shareholder at the end of the previous year but was a shareholder at any time during the previous year

Schedule AL-1: Assets and liabilities as at the end of the year (mandatorily required to be filled up by an unlisted company) (other than a start-up for which Schedule AL-2 is to be filled up)

  • Details of building or land appurtenant there to, or both, being a residential house
  • Details of land or building or both not being in the nature of residential house
  • Details of listed equity shares
  • Details of unlisted equity shares
  • Details of other securities
  • Details of capital contribution to other entity
  • Details of Loans & Advances to any other concern (If money lending is not assessee’s substantial business)
  • Details of motor vehicle, aircraft, yacht or other mode of transport
  • Details of Jewellery, archaeological collections, drawings, paintings, sculptures, any work of art or bullion
  • Details of liabilities

Schedule AL-2: Assets and liabilities as at the end of the year (applicable for start-ups only)

  • Details of building or land appurtenant there to, or both, being a residential house acquired since incorporation
  • Details of land or building or both not being a residential house acquired since incorporation
  • Details of Loans & Advances made since incorporation (If lending of money is not assessee’s substantial business)
  • Details of capital contribution made to any other entity since incorporation
  • Details of acquisition of shares and securities
  • Details of motor vehicle, aircraft, yacht or other mode of transport, the actual cost of which exceeds ten lakh rupees acquired since incorporation
  • Details of Jewellery acquired since incorporation
  • Details of archaeological collections, drawings, paintings, sculptures, any work of art or bullion acquired since incorporation
  • Details of liabilities

Schedule GST: Information Regarding Turnover/Gross Receipt Reported For GST

  • Sl. No.
  • GSTIN No(s).
  • Annual value of outward supplies as per the GST return(s) filed

Schedule FD: Break-up of payments/receipts in Foreign currency (to be filled up by the assessee who is not liable to get accounts audited u/s
44AB)

  • Payments made during the year on capital account
  • Payments made during the year on revenue account
  • Receipts during the year on capital account
  • Receipts during the year on revenue account

Part B – TI Computation of total income

  • Income from house property ( 4 of Schedule-HP) (enter nil if loss)
  • Profits and gains from business or profession
  • Capital gains
  • Income from other sources
  • Total of head wise income (1 + 2v + 3c + 4d)
  • Losses of current year to be set off against 5 (total of 2xvii, 3xvii and 4xvii of Schedule CYLA)
  • Balance after set off current year losses (5 – 6) (total of column 5 of schedule CYLA + 4b + 2iv)
  • Brought forward losses to be set off against 7 (total of 2xvi, 3xvi and 4xvi of Schedule BFLA)
  • Gross Total income (7 – 8) ( 5xvii of Schedule BFLA + 4b + 2iv)
  • Income chargeable to tax at special rate under section 111A, 112, 112A etc. included in 9
  • Deductions under Chapter VI-A
  • Deduction u/s 10AA (c of Sch. 10AA)
  • Total income (9 – 11c – 12)
  • Income chargeable to tax at special rates (total of (i) of schedule SI)
  • Income chargeable to tax at normal rates (13 – 14)
  • Net agricultural income( 3 of Schedule EI)
  • Losses of current year to be carried forward (total of xi of Schedule CFL)
  • Deemed total income under section 115JB (9 of Schedule MAT)

Part B – TTI Computation of tax liability on total income

Tax Payments

  • 1
    • a Tax Payable on deemed total Income under section 115JB (10 of Schedule MAT)
    • b Surcharge on (a) above (if applicable)
    • c Health and Education Cess @ 4%on (1a+1b)
    • d Total Tax Payable u/s 115JB (1a+1b+1c)
  • Tax payable on total income
  • Gross tax payable (higher of 1d and 2f)
  • Credit under section 115JAA of tax paid in earlier years (if 2f is more than 1d)( 5 of Schedule MATC)
  • Tax payable after credit under section 115JAA [ (3 – 4)]
  • Tax relief
  • Net tax liability (5 – 6c) (enter zero if negative)
  • Interest and fee payable
  • Aggregate liability (7 + 8e)
  • Taxes Paid
  • Amount payable (9 – 10e) (Enter if 9 is greater than 10e, else enter 0)
  • Refund (If 10e is greater than 9) (Refund, if any, will be directly credited into the bank account)
  • Details of all Bank Accounts held in India at any time during the previous year (excluding dormant accounts) (In case of non-residents, details of any one foreign Bank Account may be furnished for the purpose of credit of refund)
  • Do you at any time during the previous year

15 Tax Payments

  • Details of payments of Advance Tax and Self-Assessment Tax
  • Details of Tax Deducted at Source (TDS) on Income [As per Form 16 A issued or Form 16B/16C furnished by Deductor(s)]
  • Details of Tax Collected at Source (TCS) [As per Form 27D issued by the Collector(s)]

Verification

I,__________________ son/ daughter of _____________, solemnly declare that to the best of my knowledge and belief, the information given in the return and the schedules thereto is correct and complete is in accordance with the provisions of the Income-tax Act, 1961. I further declare that I am making this return in my capacity as ________________ (drop down to be provided and I am also competent to make this return and verify it. I am holding permanent account number (if allotted) (Please see instruction). I further declare that the critical assumptions specified in the agreement have been satisfied and all the terms and conditions of the agreement have been complied with. (Applicable, in a case where return is furnished under section 92CD).
Date: __________ Sign here: ________

MSME Industry Under GST: Benefits Provided by GOI


By generating employment for 100 million people, MSME is the biggest job opportunities creator in the nation besides contributing essentially in the National economy with its deep-rooted power and potential to flourish. But MSMEs in India have been addressing numerous issues such as the sub-optimal scope of operations, outmoded technology, disorganised and inept supply chain, fund deficiency, alteration in manufacturing strategies, unstabilised market scenario and rising competition at domestic and global, which got summed up when the GST regime hit the ground running.

The commencement of GST further complicated the survival and competition of MSME with large and global enterprise as the time, cost and energy compliance is much bigger for MSMEs than the bigger companies under GST.

Read also: Brief Procedure of MSME Registration with Key Benefits

In such an arena, to ensure seamless surge & advancement of MSME and to help them deal with sudden changes and compliance challenges the government provides some relaxation benefits to the MSMEs, in the form of Threshold exemptions, Uninterrupted ITC in the supply chain , Composition levy schemes, Quarterly filing of GST returns, Special invoice provisions, Exemption from Compulsory Audit by CA, Special return filing provisions, and take measures like increment from ₹1 Crore to ₹1.5 Crore in the upper limit of turnover for opting for composition scheme, simplified filing of nil returns, and so on.

To know more about MSME and the relaxations provided to them by the GOI, click here

Haryana Adds Over 2 Lakh New Registrations Under GST

GST Benefit for New Business

More than 200,000 new registrations under Goods and Services Tax (GST) were registered in Haryana since its nationwide inception in July 2017.

Haryana is faring forward and performing well under the GST regime since its commencement in 2017 and this can apparently be claimed again when the total count of newly added registration swelled to 2 lakhs.

During the transformation from the VAT tax system to GST mechanism, the base of 2.25 lakh payer was capitulated by VAT to GST. After that over 2 lakh, new individuals also got their feet wet in the GST pond.

According to Haryana Finance Minister Captain Abhimanyu, more than two lakh new registrations have been added since the outset of GST. Watchful eyes were kept on the breakthrough of GST implementation in Haryana right from its starting point in July 2017 along with the organization of extensive training programmes on a regular basis to train the stakeholders.

“Workshop, seminars, conferences and interactive sessions with the taxpayers regularly organised. The State has particularly stressed upon the expansion of the tax base,” an official statement quoted Capt Abhimanyu.

Haryana has contributed remarkably in the GST collection with a total collection of INR 36,815 crore and INR 55,231 crore under State GST, CGST, IGST and cess for the eight months of GST implementation during 2017-18 and for the financial year 2018-19 respectively.
This implies the collection of INR 4,601 crore per month on an average for the initial eight months and an average monthly collection of INR 4,602.56 crore for the financial year 2018-19.

Read Also: No Need for State-wise GST Registration for Importers: AAR

As far as state collections under GST are concerned, it reached to INR 10,178 crore which also includes provisional IGST settlement in the financial year 2017-18.

According to Capt Abhimanyu, the protected revenue of Haryana for the year 2017-18 was INR 13,200 crore and the total deficiency of the state GST revenue after considering the recoveries of former VAT and CST in the financial year 2017-18 was INR 1,933 crore. The state received INR 1,199 crore and INR 667 crore from compensation and provisional IGST settlement respectively during this period.

Haryana’s total collection of INR 55,231 crore under GST against INR 11,77,370 crore collection by all the states of India is a handsome contribution.