Hon’ble Union Minister of Finance, Govt. of India &
Chairperson – GST Council
134, North Block, New Delhi – 110 001
The Office of GST Council Secretariat,
5th Floor, Tower II, Jeevan Bharat Building, Janpath Road,
Connaught Place, New Delhi – 110 001
Contact.gstcouncil@gov.in
Sub.: Seeking clarification on reporting of HSN codes in tax invoices as well as in GSTR-1 w.e.f. 1st April, 2021.
Respected Madam/ Sir,
Tax Concept is a well known platform formed for the professionals. The platform has over 500 members across India (such as CAs, CSs, CMAs and tax practitioners.)
Representation Started…
Vide Notification No. 78/2020- Central Tax and 79/2020- Central Tax Dated 15th October, 2020, some changes were made in the reporting of HSN codes in tax invoices as well as in GSTR-1.
In the Notification No. 78/2020- Central Tax, it is specifically mentioned that “in the case where aggregate turnover is up-to rupees 5 crores in the preceding financial year, then reporting of HSN codes shall be optional in case of B2C supplies”.
But two clarifications provided by the Goods and Services Tax Network (GSTN) are creating confusion between reporting requirement on electronic portal and the legal validity of the requirement. Clarifications provided by the GSTN and confusions created after these clarifications are mentioned as under:
(1.) GSTN has tweeted the below picture on its official twitter handle:
In the said picture, GSTN is saying about optional reporting of HSN code for all B2C supplies in the case where aggregate turnover is up-to rupees 5 crores in the preceding financial year.
But at the same time, GSTN is asking about reporting of minimum 4 digits in the case as mentioned above.
(2.) On 12th April, 2021, GSTN has issued a clarification on the GST portal about reporting of HSN codes. In the clarification, GSTN has provided the table as notified vide Notification No. 78/2020- Central Tax, but has not mentioned about the optional reporting of HSN Code.
When we refer relevant notifications, we can consider that above clarifications are not as per law. So, you are requested to please ask the GSTN to make necessary changes in the reporting of HSN Codes in GSTR-1 and not to issue any clarification which is not as per law.
Various professionals have reported on twitter that they are able to view/ file TDS/ TCS Returns for April 2020 only instead of full year. In FY 2021-22, all months are showing instead of April 2021.
GSTN replied that “we regret the inconvenience caused. The technology team is aware of the issue and is working on it.”
GSTN has recently posted an update on its official website http://www.gst.gov.in that “Quarterly taxpayers are able to see the GSTR3B tile for Jan, Feb and Mar 21. They are requested to file GSTR3B for the quarter Jan-Mar, 21 using tile for Mar, 21. The tile for Jan and Feb is being removed.”
A professional has raised a query on twitter which is as under:
Issues in QRMP: 1.) Sales data of Jan and Feb filed through IFF, not getting auto-pupulated in GSTR-1Q.
2.) GSTR-3B table showing in all three months, Jan to March, which is confusing taxpayers as to which 3B to file. @cbic_india @Infosys_GSTN kindly clarify.
GSTN has replied to the query as under:
Invoices reported in IFF for Jan or Feb 2021 will not be reflected in quarterly GSTR-1 from Jan-March 2021. Please refer Rule-59(3) of the CGST Rules.
A new amendment made vide Notification No. 78/2020- Central Tax Dated 15/12/2020 requires mentioning of HSN/ SAC codes on tax invoices as prescribed below:
For taxpayers having turnover up-to Rs. 5 crore:
Particulars
HSN/ SAC Digits
Supplies made to registered persons
4
Supplies made to unregistered persons
NIL
For taxpayers having turnover more than Rs. 5 crore:
Particulars
HSN/ SAC Digits
Supplies made to registered persons
6
Supplies made to unregistered persons
6
For exporters:
Particulars
HSN/ SAC Digits
Supplies made to registered persons
8
Supplies made to unregistered persons
8
All the tax invoices should contain HSN/ SAC digits, description of goods and tax rates specifically for better transparency and avoid any future litigations.
While taking ITC on purchases and other expenses, kindly verify that supplier has mentioned HSN/ SAC code in invoice as required. If HSN/ SAC Code is not mentioned in invoice, then ITC will not be available.
Penalty for non-compliance of the provisions is up-to Rs. 50,000 as per Section 125 of the CGST Act.
49 chemicals as notified vide Notification No. 90/2020- Central Tax Dated 01/12/2020 have to be mandatorily shown under 8 Digits. These are annexed as under:
S. No.
Chemical name
HSN Code
1
Mixture of (5-ethyl-2-methyl-2-oxido-1,3,2- dioxaphosphinan-5-yl) methyl methyl methylphosphonate (CAS RN 41203-81-0) and Bis [(5-Ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl)methyl] methylphosphonate (CAS RN42595-45-9)
38249100
2
Dimethyl propylphosphonate
29313200
3
(5-Ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl) methy lmethy l methy l phosphonate
29313600
4
Bis[(5-Ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl)methyl ] methy l phosphonate
Following images twitted by GSTN is showing all these changes which are attached below:
New E-Invoice Requirements from 1st April, 2021:
Vide Notification No. 05/2021- Central Tax Dated 08/03/2021, the CBIC has reduced turnover eligibility for E-invoicing from Rs. 100 Crore to Rs. 50 Crore. The new provisions will be in force from 1st April, 2021.
The copy of Notification is attached as under:
Thanks for Reading My Article on “Changes in GST from 1st April 2021 You Must Know”
On 16th March, 2021, GSTN said that “IFSC of 8 banks are changed due to merger. Taxpayers may update their Bank Account details through non-core Amendments and update refund application, in case failed due to validation error sent by PFMS.”
Here is the list of PSU Bank Merger in 2021:
S. No.
Acquirer Banks
Banks Merged
1.
Punjab National Bank
Oriental Bank of Commerce and United Bank of India
2.
Indian Bank
Allahabad Bank
3.
Canara Bank
Syndicate Bank
4.
Union Bank of India
Andhra Bank and Corporation Bank
So, taxpayers are requested to change the IFSC codes accordingly.
The Government had earlier mandated e-invoicing for the taxpayers with aggregate turnover exceeding Rs. 500 Cr. from 1st Oct., 2020 and for taxpayers with aggregate turnover exceeding Rs. 100 Cr. from 1st Jan., 2021. From 1st April, 2021, Government has mandated e-invoicing for taxpayers with aggregate turnover exceeding Rs. 50 Cr. (in any preceding financial year from 2017-18 onwards).
In this regard, GSTN is holding a webinar as per details given below.
GSTN Webinar on e-invoicing for Taxpayers
Date of Webinar:
17th March, 2021 (Wednesday)
Time of webinar:
4.00 PM to 6.00 PM
Speakers:
Officers from GSTN & NIC
Target audience:
Taxpayers, especially those going to start e-invoicing from 01.04.2021 onwards
During the session, viewers can post their Queries in LiveChat / Comments section. The queries will be answered by the Panel towards the end of the session.
Recording of the session will also be available on GSTNs dedicated YouTube channel, at https://youtu.be/Tqdpma_xikA, for viewing later on.
The taxpayers are requested to join the session to benefit from the same.
Various new functionalities are implemented on the GST Portal for the benefit stakeholders. These functionalities are related to to different modules such as Registration, Returns, Advance Ruling, Payment, Refund and other miscellaneous topics.
Month/ Quarter wise functionalities deployed on GST Portal are as under.
GSTN Enables the Facility for Core Business Selection on GST Portal
Immediately after logging in to GST portal, a pop-up for core business selection is showing as per attached image. The pop-up is asking for identifying the core business i.e. trader/ manufacturer/ service provider etc. This is mandatory in nature. If you want to change the selection in future, you may navigate to- My Profile >> Core Business Activity Status.
The meaning of Trader, Manufacturer, Service Provider is prescribed as shown in below image:
From a few days, taxpayers are reporting an error while uploading JSON file of GSTR-9 Annual Return on GSTN Portal- “Error! Invalid Summary payload”. So the GSTN has issued an advisory to avoid this error which is as follows :
The taxpayers are advised to ensure that values are reported upto two decimal places in the GSTR-9 offline utility. The error “Error! Invalid Summary payload” after uploading the JSON created from the Offline Utility of GSTR-9 is reported due to reporting values upto three decimal places instead of two decimals.
Generating Challan for First and Second Month of Quarter in QRMP Scheme
There are two methods for generating and paying challan under QRMP Scheme. First is Self Assessment Method (SAM) and Second is Fixed Sum Method (FSM); FSM is also called as 35% Challan Method.
So let’s start how to generate challan under both the methods on GSTN Portal :
General Procedure :
Step-1: Login to GST Portal and navigate to Services > Payments > Create Challan. The following window will open as shown in image
Step-2: Click on “Monthly payment for quarterly return” as shown in below image
Generating Challan under Self Assessment Method (SAM) :
Step-1: Click on “Challan on self-assessment basis” and click on “Proceed” as shown in below picture
Step-2: Fill amounts in appropriate heads and generate challan by choosing payment modes as shown in below image
Generating Challan under Fixed Sum Method (FSM) :
Step-1: Click on “35% Challan” and then click on “Proceed” as shown in below image
Step-2: Auto-populated challan will be displayed as shown in below image. Click on “Generate 35% Challan” to generate challan
I hope, this will help in generating and paying challan for first and second month of quarter in QRMP Scheme
Thanks for Reading My Article on “Generating Challan for First and Second Month of Quarter in QRMP Scheme”
Don’t Forget to Avail the Benefit of QRMP Scheme in GST before 31 January, 2021
Government has launched Quarterly Return Monthly Payment (QRMP) Scheme in GST in order to accomplish the target of Ease of Compliance and Ease of Doing Business. QRMP scheme is for small taxpayers to file their FORM GSTR-1 and FORM GSTR-3B returns on quarterly basis while paying their tax dues monthly through a simple challan.
To avail the benefit of this scheme, government has notified due dates, after which we can not avail the benefit of this scheme for particular quarter and can only avail in next quarter. For the quarter January- March, 2020, the due date to opt QRMP Scheme is 31st January, 2021. So, don’t forget to avail the benefit of QRMP scheme in GST before 31 January, 2021 for the said quarter.
Tax Associations Come Together against Wrong Implementation of Tax Laws in India
As we all know that tax implementation in our country is very poor. When portals are not working, government extend due dates but when taxpayers are not able to do compliance due to any reason/ pandemic, government is not extending due dates and taxpayers are suffering heavy late fees. Even government is disposing thousands of representation by mentioning some illogical reasons in tweets.
Therefore, for the welfare of taxpayers as well as professional community, many tax associations led by The Western Maharashtra Tax Practitioners’ Association have come together against wrong implementation of acts and working system of government departments as well as respective Ministries of the Central Government.
List of all tax associations is as under :
All tax associations have submitted their representations to respective offices as well as to Central Government. let’s hope for the best 🙂
Thanks for reading our post on “Tax Associations Come Together against Wrong Implementation of Tax Laws in India”
Reconciliation Between Books and GST Portal and Adjustments in GSTR-9 Annual Return
As we know that Reconciliation is most important part of GST. Without Reconciliation between Books and Portal, we can not determine how much tax is required to be paid/ how much ITC is required to be claimed in next year’s returns. Reconciliation also enable us to make proper adjustments in relevant tables of GSTR-9.
To ease our Reconciliation process, I have prepared two examples which will guide us about how to reconcile books with GST Portal and also how to make relevant adjustments in GSTR-9. Examples can be downloaded by clicking below hyperlinks :
There is one more point in Example-1 which is mentioned below :
If you have applied for refund of overpaid output tax then write off only in the year in which refund rejected, otherwise this amount will be adjusted from refund received.
Thanks for Reading my write-up on “Reconciliation Between Books and GST Portal and Adjustments in GSTR-9 Annual Return”
On 29th Jan 2021, outside CGST Office in Each District/City of Whole India
To, Respected All Tax Consultant Associations, All Trade Bodies and Professional Associations All Consultants, Professionals – CA, CMA, CS, Advocates
In recent past, All professionals and Trade is suffering a lot, due to – Frequent Changes in Law, Complex Portal, Unstable GST and Forced to work on Sundays as well. Government is neither listening to representations submitted by various associations, nor listening to court direction in true spirit. In Covid 19 pandemic, all professionals and Trade, ignoring life and death risk, ensured that, India will stand again, paid taxes in lakh crores but it seems government doesn’t recognize us. Therefore, there is high time that, we all should come together, stand united and come onto street, to protest against:
Rigid Approach of Government against Professionals and Trade
Unstable GST, Denial of Input Tax Credit, No Revision of GST Return allowed, Mid night rain of notifications, Excessive power to authorities for cancellation of Registration and Blocking of ITC, causing big harassment
Failed GST Portal, having numerous issues
Income Tax Utilities not made available on time and changed frequently, Extention of CFSS
अभी नहीं तो कभी नही। हमें हमारे हक़ के लिए रास्तेपे उतरना होगा।
We request all association and Trade bodies to come forward and join this All India Protest call by WMTPA, against rigid approach of Government. You have to do protest outside your regional CGST Office on 29th Jan 2021, on eve of “महात्मा गाँधी पुण्य स्मृतिदिन”.
Invoice Furnishing Facility (IFF) for Taxpayers under QRMP Scheme is Now Enabled on GSTN Portal
An Invoice Furnishing Facility (IFF) facility has been provided to taxpayers under QRMP Scheme (Quarterly filers of Form GSTR-1 and also of Form GSTR-3B returns), as per sub-rule (2) of Rule-59 of the CGST Rules, 2017. Taxpayers who have opted for quarterly filing frequency under the scheme can file their details of outward supplies (B2B invoices only) for first two months of a quarter (M1 and M2 respectively of a Quarter) in IFF. For e.g. for Apr-June qtr., B2B invoices only for the months of April (M1) and May (M2) can be filed in IFF by a taxpayer.
The IFF is a facility similar to Form GSTR-1, and it allows filing of details of B2B invoices in following tables only:
a.) 4A, 4B, 4C, 6B, 6C – B2B Invoices
b.) 9B – Credit / Debit Notes (Registered) – CDNR
c.) 9A – Amended B2B Invoice – B2BA
d.) 9C – Amended Credit/ Debit Notes (Registered) – CDNRA
The option to upload details in IFF can be availed till 13th of the subsequent month. Any invoices remaining to be furnished, can be filed using the IFF in the subsequent month IFF or in the quarterly Form GSTR-1. For e.g. for Apr-June qtr., B2B invoices for the month of April (M1) can be filed in IFF by a taxpayer till 13th May. Any IFF which is not filed till the due date of 13th of the subsequent month will expire.
To file the IFF form for M1 and M2 of the month, login to GST Portal and navigate to Returns > Services > Returns Dashboard > File Returns and then Select the Financial Year & Return Filing Period (M1/M2 of a quarter) and click on SEARCH button to file the IFF forms for M1 or M2 month.
IFF is an optional facility provided to taxpayers under QRMP scheme to pass on Input Tax Credit (ITC) to their recipients for M1 and M2 months of a quarter. However, filing of Form GSTR-1 for M3 month of a quarter is mandatory.
a.) Records uploaded in IFF by the Supplier will reflect in Form GSTR-2A/2B of the Recipient.
b.) Supplier Taxpayers can also upload details in their IFF, through JSON file, generated using Returns Offline Tool.
c.) Records filed in IFF need not be filed again in Form GSTR-1 of that quarter.
d.) Only the details saved in IFF can be deleted/edited using RESET button. Once submitted or filed, these details can’t be deleted.
How Tax Concept Became an Instrument for Inspiration to Top Winner of GST-n-You Creative Contest Mr. Viraj Rashmikant Raval
GSTN had launched GST-n-You Creative Contest on 14.09.2020, so that professionals/ taxpayers/ other interested persons can participate in the contest by submitting their writeups or videos on some matters provided by the GSTN.
One of the participant Mr. Viraj Rashmikant Raval who won 1st Rank in the contest has shared his inspiring story of participating and winning 1st Rank in the Contest.
I am writing this email to express my thanks to you because I had read details from your website from the link in Google Search Engine AND GOT INSPIRED TO PARTICIPATE IN CONTEST”, Mr. Raval said to Tax Concept.
Co-Founder of Tax Concept Mr. Dhanraj Sharma also contacted and congratulated him for achieving 1st Rank in contest launched by GSTN. “I am pleased to have talk with you and Tax Concept team”, Mr. Raval to Dhanraj Sharma.
Here is his life story :
Ahmedabad based filmmaker Mr. Viraj Rashmikant Raval has won the first place in a video contest organized by GSTN at the national level. By winning the prize of Rs. 1,00,000, the youth of Ahmedabad as well as the pride and talent of the country has increased. The pride of Gujarat has increased.
Young Engineer Mr. Raval is working in the field of filmmaking, marketing video as well as advertising. He has been involved in the video field since his school days to increase his knowledge and experience in video editing, VFX, script writing, shooting, direction etc.
While studying computer engineering at SAL COLLEGE OF ENGINEERING, Ahmedabad, he set up SAL FILM CLUB in which he conducted seminars and workshops on filmmaking for free. Currently Mr. Raval has joined his brother Mr. Jaimin Raval who has good experience of Script Writing, who has teamed up to create branding videos as well as advertisement videos for national as well as international clients.
It has been 3 years since GST was introduced but people still have the whole purpose and misunderstanding of GST so this video shared by Mr. Rawal to GSTN will be very useful for people when there is a special need for awareness about this.
Well known Script Writer Mr. Jaimin Raval & Sanand based Mr. Vimal Trivedi had given support to Mr. Viraj Raval to play suitable role inside the Video as per direction of filmmaker Mr. Raval.
The video which was shared by Mr. Raval to GSTN is attached below :
GSTN Enabled Facility for “Communication between Taxpayers” on GSTN Portal
Now, taxpayers registered on GSTN portal can send and receive notifications related to invoices/ debit notes/ credit notes for (A) file missing document, (B) rejected- amendment required, (C) rejected- wrongly send to me, (D) re-upload document, (E) payment made and (F) others.
This will made communications between taxpayers very easy and will lead to ease of doing business and compliance.
CBIC issues FAQs on Quarterly Return Monthly Payment (QRMP) Scheme in GST
What is “Quarterly Returns with Monthly Payment (QRMP)” Scheme?
Answer: QRMP scheme is for small taxpayers to file their FORM GSTR1 and FORM GSTR-3B returns on quarterly basis while paying their tax dues monthly through a simple challan.
Is this scheme available to everyone?
Answer: No. This scheme is available only to those who are liable to file FORM GSTR-1 and FORM GSTR-3B returns.
Am I eligible for the scheme?
Answer: All taxpayers whose aggregate turnover is up to Rs. 5 Crore in the current and preceding financial year and have filed their last due GSTR-3B return are eligible for this scheme.
How do I avail this scheme?
Answer: Taxpayers can opt in (avail) the scheme and opt out (exit) if they don’t wish to continue quarterly filing by navigating to Login-> Services – Returns -> Opt-in for quarterly return
Can I avail the scheme at any time?
Answer: You can opt in or opt out of the scheme as follows:-
Quarter
Between
Q1 (April –May – June)
1st February to 30th April
Q2 (July – August – September)
1st May to 31stJuly
Q3 (October – November – December)
1st August to 31st October
Q4 (January – February – March)
1st November to 31stJanuary
Do I need to enter the scheme every quarter to avail its benefit?
Answer: No, once opted in, the scheme will continue for you, unless you decide to exit or opt out.
My aggregate turnover is less than Rs. 5 Cr, but still the system does not allow me to opt in for the scheme?
Answer: Please check if you have filed your last FORM GSTR-3B. For more details on the turnover, please visit here. If you want to get your turnover updated, please lodge your grievance at https://selfservice.gstsystem.in/
I have multiple GSTTNs on the same PAN in different States, can I opt in for different frequency in different States?
Answer: Yes, you may opt in for different frequencies (monthly or quarterly) in different States.
From when is the scheme available?
Answer: The scheme will be made available from 1stJanuary 2020 onwards. You may opt in anytime after 5 th December 2020.
B. System defaulting
I have received an email, saying I have been defaulted to the scheme. What should I do?
Answer: If your aggregate turnover for FY 2019-20 is up to Rs. 5 Crore and you have filed your FORM GSTR-3B for the month of October 2020 by 30th November 2020, you may be defaulted to the scheme by the system. If you wish to remain in the scheme, then you may not take any action and file your returns by the due date in April 2021. However, if you wish to exit the scheme you may do so by 31st January 2021.
I am eligible for the scheme but was not defaulted to the scheme. What should I do?
Answer: You may enter the scheme by navigating Login-> Services -> Returns -> Opt-in for quarterly return. For detailed steps, you may click here.
C. Actions required for first two months of the quarter
Do I have to do anything in the first two months of the quarter?
Answer: Yes, you have to generate a payment challan for the first two months of the quarter. You have an option to either self-assess your liability or pay 35% of cash liability paid in the FORM GSTR-3B for the last quarter (in case of where GSTR-3B was filed quarterly) or 100% of the cash liability paid in the FORM GSTR-3B for the last month (in case where FORM GSTR-3B was filed monthly) through a challan. However, you do not have to take any action in the following cases:-
a) Aggregate balance in your electronic cash ledger and electronic credit ledger is greater than liability for that month.
b) You have No or Nil liability for that month.
By when do I have to deposit such amount?
Answer: Generally, Challan is to be generated by the 25th of the next month. For example, for the month of January challan has to be generated by 25th of February. However, there may be instances where such date may be extended by the Government.
What is self-assessment of liability?
Answer: Self-assessment of liability means that you calculate your taxes for a month by ascertaining outward supplies made during the month and your available input tax credit. A challan may be generated for the amount of selfassessed liability. Please note that while generating this challan, please choose -> “Monthly Payment for Quarterly Returns” as the reason for making such payment.
How do I generate a challan?
Answer: To view detailed instruction on generating of challan. Click here.
If I have deposited cash in the first month, can the same be accounted for adequate cash in the cash ledger for the second month?
Answer: It may be noted that cash deposited in the first month against your liability for the first month cannot be considered for balance for your electronic cash ledger for the second month. The action to be taken in the second month should be considered based on the balance in cash ledger after the deposit made for the first month.
What is 35% option?
Answer: If you do not want to pay self-assessed tax, then you may simply deposit 35% of net cash paid by you in your last quarterly GSTR-3B filed or 100% of the net cash paid in your last monthly FORM GSTR-3B (whichever is applicable). Please note that while generating this challan, please choose -> “Monthly Payment for Quarterly Returns (35%)” as the reason for making such payment.
This will be an auto-calculated system generated challan and no calculation /assessment has to be done by you. Taxpayers may note that no interest would be payable in case the tax due is paid in the first two months of the quarter by way of depositing auto-calculated system gener a&g d challan as detailed in by the 25th of the succeeding month.
At some places, I see 100% auto-population instead of 35%, why is that?
Answer: If your last FORM GSTR-3B filed was for a complete quarter, then the system will generate 35% of your last quarter’s net cash paid. However, if your last FORM GSTR-3B filed was for a one complete month, then the system will generate 100% of your last month’s net cash paid. You need not worry for this, as this is a completely system generated process.
Is everyone allowed to file self-assessment and 35% challan?
Answer: Self-assessment can be done by all quarterly taxpayers. However, 35% challan will not be made available for the following persons:
a) New taxpayers, b) Taxpayers who have opted out of the composition scheme, and c) Those who have not filed their last FORM GSTR-3B
Is it mandatory for exercising the same option for both the months?
Answer: No, you may choose self-assessment or 35% as per your own choice for any of the months.
Is there any late fee for delayed payment of tax for any of the first two months?
Answer: No, there is no late fee for delayed payment of tax for any of the first two months.
How do I view my challan history?
Answer: Challan history can be found after logging to GST Portal and navigating to Services -> Payments -> Challan History.
Can I request for a cash ledger refund of any amount deposited in month M1 and M2?
Answer: No, Cash ledger refund under this scheme will only be allowed after the FORM GSTR-3B for that quarter has been filed. For example, if any amount has been deposited for the month of January, it will only be allowed for refund, once FORM GSTR-3B for the quarter ending March has been filed.
Can I utilize amount deposited in month M1 and M2 for any other purpose?
Answer: No, you cannot utilize these amounts for any other purpose, before filing FORM GSTR-3B for the quarter in which such deposits have been made. After filing FORM GSTR-3B, such cash may be used for other purposes also.
D. Details on viewing GSTR-2A and 2B
I am a quarterly taxpayer; will I see my GSTR-2A and 2B also quarterly now?
Answer: GSTR-2A and GSTR-2B will be continued to be made available every month. A GSTR-2B’s quarterly view will also be made available. This will be made available under the return tab for the third month of the quarter. However, there will be no quarterly view of GSTR-2A.
E. Actions required for the last month of the quarter
Do I have to do anything in the last month of the quarter?
Answer: Yes, you have to file your FORM GSTR-1 and FORM GSTR-3B for the quarter. For example, for the quarter Jan-Mar, you have to file your FORM GSTR-1 and FORM GSTR-3B for the month of March.
While filing FORM GSTR-3B, is there a way to view the deposits made by me in month M1 and M2?
Answer: Yes, a separate tab displaying the cash challans generated for this purpose will be displayed on the FORM GSTR-3B payment page.
What will be the last date for filing of FORM GSTR-3B and FORM GSTR-1 for the quarter?
Answer: Generally, the last date of filing of GSTR-1 for the quarter will be 13th of the month succeeding such quarter. For example, for the quarter of Jan-March, the last date of GSTR-1 would be 13th of April.
Generally, the last date of filing of FORM GSTR-3B for the quarter will be as given in table below. For example, for the quarter Jan-March, for a taxpayer whose principal place of business is Gujarat, the last date of GSTR-3B would be 22nd of April.
S.No
Principal Place of Business
Due Date
1.
States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana and Andhra Pradesh , the Union territories of Daman and Diu, Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep
22nd of the month succeeding such quarter
2.
States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand and Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi
24th of the month succeeding such quarter
Taxpayers are advised to check updated notifications etc. for change in dates.
What about late fee on delayed filing of FORM GSTR-3B and GSTR-1 for the quarter?
Answer: Late fee is applicable to delayed filing of such returns.
F. Optional Invoice Furnishing Facility
What is invoice furnishing facility (IFF)?
Answer: An additional facility has been provided to taxpayers to file their invoices in month Mi and M2. The facility will be similar to FORM GSTR1 but will allow filing for only B2B invoices, credit notes, debit notes etc.
Do I need to compulsorily file my invoices in M1 and M2 of every quarter in the IFF?
Answer: No, this is an optional facility.
Will this option be available every month?
Answer: Yes, this option will be available for month Mi and M2 for every quarter. The option to file such invoices will also expire by the 13th of the next month. For example, the facility for the month of January will expire by 13th of February.
Can I late file my invoices after the 13th” of the month?
Answer: No, this option will close after the 13th of the month. Any invoices remaining may be filed using the IFF of the subsequent month or in the quarterly GSTR-1.
Will my recipient view these invoices in his GSTR-2A / 2B?
Answer: Yes, all invoices filed by you via the invoice furnishing facility will be displayed in GSTR-2A and GSTR2B of the recipient.
Do I have to re-enter the details entered through invoice furnishing facility in the GSTR-1 for the quarter?
Answer: No, once details have been filed in IFF, the same need not be filed again in GSTR-1 for the quarter.
G. Miscellaneous
Can quarterly filers file Nil return through SMS?
Answer: Yes, Quarterly taxpayers may send the following SMS to 14409 to file a Nil GSTR-1 or Nil FORM GSTR-3B
a) NIL 3B GSTIN MMYYYY b) NIL R1 GSTIN MMYYYY c) MM should be the last month of the quarter for which the return is being filed. For example, for the month of June 2020, taxpayer shall send NIL 3B XXXXXXXXXXXXXXX 062020 to 14409
Will refund be allowed for quarterly filers?
Answer: Yes, quarterly taxpayers may apply for refunds after filing their FORM GSTR-3B for the quarter.
Thanks for reading “CBIC issues FAQs on Quarterly Return Monthly Payment (QRMP) Scheme in GST“
GSTN Portal Started Showing Annual Aggregate Turnover for Previous Financial Year
Recently, GSTN has launched many new features on GSTN portal. One of its feature is that GSTN portal is now showing aggregate annual turnover for previous F.Y. after logging in to portal. The screenshot of which is attached here :
The methodology to calculate aggregate annual turnover is as under (as prescribed by GSTN Portal) :
1. Calculation of Number of GSTR- 3B eligible or liable to filed
a) Scenario- 1: As on date Active Taxpayer – and was not in composition in 2019-2020
i. All tax payers who got registered on or before 31st March 2020 are being considered.
ii. If Migrated tax payer or registered on or before 30th April 2020; number of GSTR- 3B eligible or liable to be filed is fixed as 12.
iii. If new tax payers registered after 30th April 2020 then number of GSTR- 3B eligible or liable to be filed is months between 31st March 2020 and date of registration.
b) Scenario- 2: As on date Cancelled Taxpayer – and was not in composition in 2019-2020.
i. All tax payers who got registered on or before 31st March 2020 are being considered.
ii. Derived the cancellation w.e.f. date and the tax payers who got cancelled after 01st April 2019 are considered.
iii. If cancellation w.e.f. date is beyond 31st March 2020 then cancellation w.e.f. date is considered as 31st March 2020 for calculation purpose.
iv. If cancellation w.e.f. date is 1st day of the month then cancellation w.e.f. date is fixed as last day of previous months for calculation purpose.
v. If migrated tax payers or registered before 01st April 2019 then number of GSTR- 3B eligible or liable to be filed is months between cancellation w.e.f. date and 01st April 2019.
vi. If new tax payer registered during 2019-2020 then number of GSTR- 3B eligible or liable to be filed is months between cancellation w.e.f. date and date of registration.
c) Scenario- 3: As on date Active Taxpayer and was in Composition scheme for some time in 2019-2020 and opted out (withdrew) from Composition Scheme during 2019-20.
i. All taxpayers who got registered on or before 31st March 2020 are being considered.
ii. Number of GSTR- 3B eligible or liable to be filed is months between 31st March 2020 and date of Opt-out/Withdrawal from Composition scheme.
d) Scenario- 4: As on date Cancelled Taxpayer and was in Composition scheme for some time in 2019-2020 and opted out (withdrew) from Composition Scheme during 2019-2020.
i. All taxpayers who got registered on or before 31st March 2020 are being considered.
ii. Derived the cancellation w.e.f. date and the tax payers who got cancelled after 01st April 2019 are considered.
iii. If cancellation w.e.f. date is beyond 31st March 2020 then cancellation w.e.f. date is considered as 31st March 2020 for calculation purpose.
iv. If cancellation w.e.f. date is 1st day of the month then cancellation w.e.f. date is fixed as last day of previous months for calculation purpose.
v. Number of GSTR- 3B eligible or liable to be filed is months between cancellation w.e.f date and Opt-out/Withdrawal date from Composition Scheme.
NOTE: If month between comes out to be in fraction, we consider next the highest integer. (For e.g. 2020-03-31 and 2019-09-28 comes to 6.09 we consider it as 7).
2. Calculation of Number of CMP-08 eligible or liable to be filed
a) Scenario- 1: As on date Active Taxpayer – and was in composition for full year 2019-2020
i. All taxpayers who got registered on or before 31st March 2020 are being considered.
ii. Number of CMP-08 eligible or liable to be filed is months between 31st March 2020 and composition start date.
b) Scenario- 2: As on date Cancelled Taxpayer – and was in composition for full year 2019-2020
i. All taxpayers who got registered on or before 31st March 2020 are being considered.
ii. Derived the cancellation w.e.f. date and the taxpayers who got cancelled after 01st April 2019 are considered.
iii. If cancellation w.e.f. date is beyond 31st March 2020 then cancellation w.e.f. date is considered as 31st March 2020 for calculation purpose.
iv. If cancellation w.e.f. date is 1st day of the months then cancellation w.e.f. date is fixed as last day of previous months for calculation purpose
iv. Number of CMP-08 eligible or liable to be filed is months between cancellation w.e.f date and composition start date.
c) Scenario- 3: As on date Active Taxpayer and was in Composition scheme for some time in 2019-2020 and opted out (withdrew) from Composition Scheme during 2019-20.
i. All taxpayers who got registered on or before 31st March 2020 are being considered.
ii. Number of CMP-08 eligible or liable to be filed is months between date of Opt-out/Withdrawal from Composition scheme and composition start date.
d) Scenario- 4: As on date Cancelled Taxpayer and was in Composition scheme for some time in 2019-2020 and opted out (withdrew) from Composition Scheme during 2019-20.
i. All tax payers who got registered on or before 31st March 2020 are being considered.
ii. Derived the cancellation w.e.f. date and the tax payers who got cancelled after 01st April 2019 are considered.
iii. If cancellation w.e.f. date is beyond 31st March 2020 then cancellation w.e.f. date is considered as 31st March 2020 for calculation purpose.
iv. If cancellation w.e.f. date is 1st day of the month then cancellation w.e.f. date is fixed as last day of previous months for calculation purpose.
v. If cancellation w.e.f. date is prior to Opt-out/Withdrawal date from Composition then number of CMP-08 eligible or liable to be filed is months between cancellation w.e.f. date and Composition Start date.
vi. If cancellation w.e.f. date is post Opt-out/Withdrawal date from Composition then number of CMP-08 eligible or liable to be filed is months between Opt-out/Withdrawal date and Composition start date.
NOTE: If month between comes out to be in fraction, we consider the next highest integer (For e.g. 2020-03-31 and 2019-09-28 comes to 6.09 we consider as 7). Further, CMP-08 being a quarterly return/statement, the output has been divided by 3.
3. Extracted GSTIN-wise Number of GSTR- 3B filed and Turnover declared in GSTR-3B
a) Number of GSTR-3B filed by the tax payer for the FY 2019-2020 and turnover declared in GSTR- 3B (Table 3.1. a, b, c, e) have been calculated.
4. Extracted GSTIN- wise Number of CMP-08 filed and Outward supply declared in CMP-08
a) Number of CMP-08 filed by the tax payer for the FY 2019-2020 and outward supply declared in CMP-08 (Table 3, Row- 1, Column- 3 of CMP-08) have been calculated.
5. Extrapolation of Turnover at GSTIN level (for those who have not filed all the returns as per their eligibility or liability)
a) GSTIN-wise GSTR-3B turnover for FY 2019-2020 has been extrapolated by the formula:
>> Total turnover declared as per all GSTR-3B filed / No. of GSTR-3B filed) X No. of GSTR-3B eligible or liable to be filed
b) GSTIN-wise CMP-08 outward supply has been extrapolated by the formula:
>> Total outward supply declared as per all CMP-08 filed / No. of CMP-08 filed) X No. of CMP- 08 eligible or liable to be filed
c) Added both the values of S. No. 5(a) and S. No. 5(b).
(Note: For those taxpayers who have filed all the returns as per their respective eligibilities, value of S. No. 5(c) will be the actual turnover)
6. Aggregation of extrapolated turnover at PAN level or Annual Aggregate Turnover
a) Resultant values as per S.No. 5(c) are aggregated or rolled up at PAN level to arrive at the Annual Aggregate Turnover.
Thanks for Reading Our Article on “GSTN Portal Started Showing Annual Aggregate Turnover for Previous Financial Year”
Outcome of 42nd GST Council Meeting Held on 05.10.2020
The GST Council has made the following recommendations:
(1.) Levy of Compensation Cess to be extended beyond the transition period of five years i.e. beyond June, 2022, for such period as may be required to meet the revenue gap. Further details to be worked out.
(2.) Centre is releasing compensation of ₹ 20,000 crore to States today towards loss of revenue during 2020-21 and an amount of about ₹ 25,000 crore towards IGST of 2017-18 by next week.
(3.) Enhancement in features of return filing: In its 39th Meeting held in March 2020, the Council had recommended an incremental approach to incorporate features of the new return system in the present familiar GSTR-1/3B scheme. Various enhancements have since been made available on the GST Common Portal. With a view to further enhance Ease of Doing Business and improve the compliance experience, the Council has approved the future roadmap for return filing under GST. The approved framework aims to simplify return filing and further reduce the taxpayer’s compliance burden in this regard significantly, such that the timely furnishing of details of outward supplies (GSTR-1) by a taxpayer and his suppliers would –(i) allow him to view the ITC available in his electronic credit ledger from all sources i.e. domestic supplies, imports and payments on reverse charge etc. prior to the due date for payment of tax, and (ii) enable the system to auto-populate return (GSTR-3B)through the data filed by the taxpayer and all his suppliers. In other words, the timely filing of GSTR-1 statement alone would be sufficient as the return in FORM GSTR-3B would get auto prepared on the common portal. To this end the Council recommended / decided the following:
(a.) Due date of furnishing quarterly GSTR-1 by quarterly taxpayers to be revised to 13th of the month succeeding the quarter w.e.f. 01.1.2021;
(b.) Roadmap for auto-generation of GSTR-3B from GSTR-1s by:
(i.) Auto-population of liability from own GSTR-1 w.e.f. 01.01.2021; and
(ii.) Auto-population of input tax credit from suppliers’ GSTR-1s through the newly developed facility in FORM GSTR-2B for monthly filers w.e.f. 01.01.2021 and for quarterly filers w.e.f. 01.04.2021;
(c.) In order to ensure auto population of ITC and liability in GSTR 3B as detailed above, FORM GSTR-1 would be mandatorily required to be filed before FORM GSTR-3B w.e.f. 01.04.2021.
(d.) The present GSTR-1/3B return filing system to be extended till 31.03.2021 and the GST laws to be amended to make the GSTR-1/3B return filing system as the default return filing system.
(4.) As a further step towards reducing the compliance burden particularly on the small taxpayers having aggregate annual turnover < Rs. 5 cr., the Council’s earlier recommendation of allowing filing of returns on a quarterly basis with monthly payments by such taxpayers to be implemented w.e.f. 01.01.2021. Such quarterly taxpayers would, for the first two months of the quarter, have an option to pay 35% of the net cash tax liability of the last quarter using an auto generated challan.
(5.) Revised Requirement of declaring HSN for goods and SAC for services in invoices and in FORM GSTR-1 w.e.f. 01.04.2021 as under:
(a.) HSN/SAC at 6 digits for supplies of both goods and services for taxpayers with aggregate annual turnover above Rs. 5 crores;
(b.) HSN/SAC at 4 digits for B2B supplies of both goods and services for taxpayers with aggregate annual turnover up to Rs. 5 crores;
(c.) Government to have power to notify 8 digit HSN on notified class of supplies by all taxpayers.
(6.) Amendment to the CGST Rules: Various amendments in the CGST Rules and FORMS have been recommended which includes provision for furnishing of Nil FORM CMP-08 through SMS.
(7.) Refund to be paid/disbursed in a validated bank account linked with the PAN &Aadhaar of the registrant w.e.f. 01.01.2021.
(8.) To encourage domestic launching of satellites particularly by young start-ups, the satellite launch services supplied by ISRO, Antrix Corporation Ltd. and NSIL would be exempted.
Thanks for Reading Our Article on “Outcome of 42nd GST Council Meeting Held on 05.10.2020”
GSTN Launches a creative contest namely “GST-n-You” today (14.09.2020). The last date to participate in the contest is 15.10.2020
Details of Contest:
(1.) GSTN invites creative entries in form of videos (animation, tutorials, short-films etc.) of 30-120 seconds or static graphics on the various recent initiatives and reforms on GST, like following (list is only indicative):
How GST has benefitted the tax payers, consumers, and the country etc.
(2.) Any Citizen of India can participate in their contest. Each participant can send more than one entry on any of the topics above. One participant (person) will be entitled for one prize only for all the entries sent by them him/her.
(3.) Last date of filing entries is 15th October, 2020.
(4.) Method of filing the entry is : By sending attachments/link to gstnmedia@gstn.org.in
(5.) Selection criteria of the prize winners is as below:
Creativity and accuracy of the content
Usefulness of the videos or static graphics for the GST ecosystem including taxpayers
Impact created on GST tax payers and eco-system by the content, through various platform such as social media, webinar etc. Thus the impact of entries in form its views, likes, sharing etc will also be one of the criteria for selection of the winner.
All videos or static graphics of the participant will be considered for the evaluation
Above materials already placed on the social media channels such as Facebook, twitter, YouTube etc may also be sent
The decision of GSTN in selection of awards will be final.
GSTN will have the right to use the entries for public education and awareness and to that extent Intellectual Property of the videos and static graphics will vest with GSTN.
(6.) Prizes:
1st – Rs. 1,00,000 – one in number,
2nd – Rs. 50,000 – four in number,
3rd – Rs. 10,000 – twenty in number
Total prize would amount to Rs 5,00,000/- (Rs Five Lakhs only).
The Prize money will be sent to the winner’s bank account only.
All cash prizes will be given along with the certificate.
Certificates may also be provided to other participant(s), who have not won prize, but whose entry shown creative thinking and effort in sending their entries. All cash prizes will be given along with the certificate.
