Key updates on GST- Compliance Before 31st August 2020

Key updates on GST- Compliance Before 31st August 2020

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www.carajput.com; GST

Background

Adhering to tax-related compliance introduced by the Indian government is obligatory for taxpayers in India. Failure to comply with the due dates for filing GST returns as well as the GST rules which result in the government imposing severe penalties on taxpayers in India. The tax compliances have experienced a complete improvement in the last 6 months. Given the prevailing Coron-19 pandemics, the entire compliance schedule has been changed.

It is not only about income tax but also about GST. We’ve been reviewing income tax compliances over the past week and now we’re going to cover compliances that need to be completed by August 31 to escape fines and late fees. Tax compliance was difficult, especially during the COVID period, when human health and safety were of primary importance. All the GST compliance requirements, the deadlines for which are August 31, 2020, are given below.

GST Milestones expiring 31 August 2020

Many deadlines for GST implementation expired on August 31, 2020. To prevent late payments and fines, it is important to recall those due dates and to file the returns. Let’s see which time-limit expires on August 31, 2020.

After taking into account the notifications the final deadlines will be as follows: 
 2 Yr  from the prescribed date falls between Final due date to submit a refund application
1st January 2020 to 19th March 2020 The respective day between 1st January 2020 to 19th March 2020
20th March 2020 to 31st March 2020 31st August 2020

Due to COVID 19 Situation and after Hon’ble FM Ms. Nirmala Sitharaman Ji “Corona is an act of God” and business loss now is the time to avoid late Fee, Interest, and Penalties.

Deadlines are as under:

·Refund Application FY 2017-18: Online thru Form GST RFD-01

·GSTR-4 (FY 2019-20): Filed by Composition Taxable Person (Notification No. 59/2020).

·GSTR-5: Filed by Non- Resident taxable person.

·ITC 04: ITC-04 is related to job worker and submitted by the principal every quarter. The last date of ITC 04 of the 4th quarter of 2019-20 and the first quarter of 2020-21 is 31st August 2020. (Notification No. 55/2020 dated 27.06.2020).

·As per Notification No. 55/2020 dated 27.06.2020, the due date for the month of March 2020 to July 2020 is extended to 31st August 2020 (Point No. 5 to 9).

·GSTR-5A: Filed by OIDAR service providers.

·GSTR-6: Filed by Input Service Distributors (ISD).

·GSTR-7: Filed by TDS deductor.

·GSTR-8: Filed by E-commerce Operator.

·Letter of Undertaking (LUT) FY 2020-21: Notification No. 55/2020 Letter of Undertaking (LUT) is a document that exporters can file to export goods or services without having to pay taxes. Any registered individual will be able to supply LUT in GST RFD 11 type and export products without paying the integrated fee.

·Other related GST compliances (except few provisions covered in the exclusion clause of N.N 55/2020-CT dated 27.06.2020) which falls during the period 20.03.2020 to 30.08.2020 and which has not been made.

E-Invoicing: E-Invoicing is soon for becoming necessary, We built a knowledge pool for fast integration. Details are an attached post : 

Details about the E- Invoices 

Applicability of E-invoice Framework for GST

Basic details of Invoice registration Portalirp on GST

Moving to the September GST compliance timeline, here is a detailed description of our September compliance calendar:

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www.carajput.com; GST Planner

GST Returns Application late fee

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www.carajput.com; GSTR-4 Late Fees

The late fee according to the GST Act is Rs. 100 a day per statute. So it’s under CGST 100 and under SGST 100. Max is Rs. 200 / day. The maximum amount is Rs 5,000/-. No late fees are paid on IGST.

Submission of return is mandatory under GST. And if there is no trade, you will have to file a refund from Zero. You can not file a return until you register the return of the previous month/quarter. Late filing of GST return would also have a cascading impact and will lead to heavy fines and penalties. The GSTR-1’s late filing fee is deposited in GSTR-3B ‘s liability ledger directly after such a delay.

Interest / Late Fee to be paid

The interest per annual is 18 percent. It must be based on the amount of outstanding tax owed by the taxpayer. It is to be calculated at the time of payment on the Net tax liability identified in the ledger. The time span is from the next day after filing due date to the final payment date.

Prosecution in GST 

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www.carajput.com; GST Prosecution

So here is the expectation that the compliances will be completed before all these extended due dates.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

GST EVASION: DGGI took action against 3 Firm for tax evasion of Rs 600 Crore

GST-EVASION: DGGI took action against 3 companies for tax evasion of more than Rs 600 Crore

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www.carajput.com; GST Evasion

Three persons arrested on charges of tax evasion of Rs 600 Crore, i.e. for the issuance of fraudulent invoices without the actual supply of Rs 4,198 crores, and illegally transferred as ITC credit to different entities under the GST Act.

There was an argument against M/s. Reema Polychem Pvt. Ltd., M/s. Fortune Graphics Limited, & M/s. Ganpati Enterprises, which were found to be engaged in the issuance of invoices without any real supply of goods.

The case was identified and established by the officers on further data analytics from the case filed against one of the exporters, M / s Anannya Exim, which was protected by the entire India Joint Operation launched by DGGI-DRI in September 2019, against various exporters for fraudulently demanding IGST refunds on the basis of ineligible ITC.

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www.carajput.com; GST Evasion

In the course of the investigations conducted by DGGI Hqrs, it emerged that the three companies referred to above, namely M/s. Reema Polychem Pvt. Ltd. respectively. Ganpati Enterprises released invoices worth more than Rs. 4,100 Crore, with a tax sum of more than Rs. 600 Crore being transferred fraudulently as ITC credit to various entities.

The foregoing companies/firms shall be interested in the issuing of bills without any real supply of products. This case was found and established by officers on further review of the case filed against one of the exporters, namely M / s Anannya Exim, which was protected by DGGI-DRI’s entire operation in India on 11.09.2019, against different exporters for fraudulently demanded IGST refund on the basis of invalid ITC.

In this regard, three parties have been detained for committing offenses under the GST Act. The directors/owners of M/s. Reema Polychem Pvt. Ltd. is two of them who have been on the run and have constantly avoided presence at DGGI Offices.

The third man is the director of M/s AB Players Exports Pvt Ltd and the manager of various other export firms/companies which have received IGST refunds on the basis of counterfeit invoices provided by these companies.

All three were detained by DGGI (Hqrs.) for committing offenses, pursuant to Sections 132(1)(b) and 132(1)(c) of the CGST Act, 2017, and ordered to be held under judicial custody by the Magistrate.

www.carajput.com; Prosecution in GST

www.carajput.com; Prosecution in GST

Even more inquiries on the subject are in the process

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Basis Concept on Applicability of E-Way Bill

Basis Concept on Applicability of E-Way Bill

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www.carajput.com; GST E-way bill

E-Way Bill is a digitally produced paper that must be produced for the transportation of more than Rs. 50,000 products from one place to another anywhere in India, except Delhi. For the transport of products inside Delhi, an e-way bill is needed if the value of goods exceeds Rs . 1 Lakhs.

This documentation must be produced electronically for the transport of goods, regardless of whether the transport is inter-state or intra-state. The e-way bill created in any State shall be valid in any State or Union territory of India.

Who is responsible for generating the e-way bill?

The e-way bill under the GST regime is expected to be produced

  1. Any licensed individual responsible for the movement of products of shipment
  2. In the case of supply ( e.g. sales); or
  3. For reasons other than supply ( e.g. return of sales, transfer of branches, etc.); or
  4. Due to the inward supply of the unregistered individual
  5. Any unregistered individual who triggers the movement of products.

Some of the important points to be noted for goods transported by road are as follows:

  1. E-Way Bill is not required for all transactions carried out by a taxable individual.
  2. the E-Way Bill is necessary For all transactions involving the transportation of goods, whether by way of supply or not,.
  3. E-Way Bill is required in transactions involving products but viewed as a supply of services such as the leasing of products or the distribution of food drinks.
  4. E-Way Bill is not needed, where products purchased in the supply of services do not involve the movement of goods.
  5. E-Way Bill is necessary, where the movement of the value of the goods is more than Rs. 50,000/-as an interstate supply.
  6. E-Way Bill is necessary, where the movement of the value of the products is more than Rs. 1.00000/-as intrastate supply.
  7. The automobile number and transporter ID in part B should be given
  8. Where the goods are transported by the supplier, the supplier must provide the carrier with the details required for the generation of the e-way bill in Part-A.
  9. On the basis of the information received by the manufacturer, the carrier creates an e-way bill by performing Part B.
  10. If the goods are transferred by the supplier in a vehicle of their own or by a hired vehicle, the supplier may fill out the data in Part B.
  11. If the carrier has received information on the transport or vehicle number, etc., a unique e-way billing number or EBN may be issued.
  12. Unless the vehicle is modified during transit, the carrier may have to correct the transport information in the e-way bill on the GST portal.
  13. Goods can only be carried with the description of Part-A:
    1. When goods are transferred within less than 50 km of the State from the place of the manufacturer to the carrier for delivery;
    2. b) If goods are shipped from the source to the receiver for a distance of fewer than 50 km.
  14. The E-way bill created on the GST portal is valid for all States and Union Territories.
  15. For distances of up to 100 km, the created E-way bill is valid for one day. The e-way bill will be valid for an additional day for every 100 km.
  16. If the transport can not be completed within the period of validity due to certain unforeseen situations, the carrier may generate a new e-way bill by updating the transport details.
  17. Cause for transport may be any kind of supply, return on sales, own use, jobs, etc.
  18. When there are several vehicles involved in the transport of products, the manufacturer will issue the invoice until the first shipment is completed and, with each subsequent shipment, copies of the accompanying distribution vouchers and a copy of the invoice should be given. Nevertheless, the initial invoice will be submitted with the last shipment.

The circumstances where E-Way is not needed : 

In the following cases, the generation of e-Way Bill is not necessary:

  1. The mode of carriage is a non-motor vehicle
  2. Goods transported from the customs terminal, airport, air cargo complex, or land customs station to the Inland Container Depot (ICD) or Container Freight Station (CFS) for customs clearance.
  3. Goods held under customs control or under customs seal
  4. Goods transported under the Customs Bond from ICD to the customs port or from one customs station to another.
  5. Transit cargo transported from or to Nepal or Bhutan
  6. Movement of products triggered by the establishment of the defense under the Ministry of Defense as consignee or consignee
  7. Vacuum Cargo /containers are being shipped
  8. In the case Consignor transporting goods to or from the place of business and a weighbridge at a distance of 20 km, accompanied by a Delivery Challenge.
  9. In the case Goods to be shipped by rail where the Consignor of goods is a federal government, a state government, or a local authority.
  10. In the case of Goods specified as exempt from E-Way bill requirements in the respective State / Union Territory of the GST Regulations.
  11. In case Transportation of certain defined goods-includes the list of exempt supplies of goods, annexed to Rule 138(14), goods classified as non-delivery as set out in Schedule III, other schedules of notifications of the Central Tax Rate. (PDF of the Products List).

Note: Part B of the e-Way Bill is not necessary to be filled if the gap between the consignee or consignee and the carrier is less than 50 km and the transport is in the same state.

What to do to make an eWay Bill

E-Way Bill can be created from the e-Way Bill Portal. The only thing you need is a Portal username. For a comprehensive step-by-step e-Way Bill Generation guide, check out our online e-Way Bill Generation Guide.

 

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Records/ document or information needed for the creation of eWay Bill

  • Invoice / Bill of Supply / Challenge relating to the shipment of goods
  • Road transport – ID of the driver or vehicle number
  • Transport by rail, air or ship – ID of the carrier, the number of the transport document and the date of the document

For more information about the case, please feel free to contact Rajput Jain &       Associates by phone (+91 11 9555 555 480 ), or e-mail (info@carajput.com).

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

GST: Late fee capped at Rs. 500/- for each GSTR-3B Return

GST: Late fee capped at Rs. 500/- for each GSTR-3B Return and waives off late fee on late GST return filing

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www.carajput.com; GST No late Fees

For each GSTR-3B return, a late fee of Rs. 500/- is capped.

In the perspective of the GST taxpayers’ massive relief the government has chosen to limit, on the basis of the condition that such GSTR-3B reports are filed prior to 30 September 2020, a late maximum fee of Form GSTR-3B to Rs 50/- (only 500) by tax return for the tax period July 2017 to July 2020.

Notice was provided to include zero late fees if no tax liability exists; and if there is any tax liability, the GSTR-3B returns filed by 30 September 2020 will be subject to a maximum late fee of Rs. 500 for such returns.

Thanks to further flexibility in the deferred fee paid for tax periods between May 2020 and July 2020, numerous representations have been issued. In order to clean up past pendency of returns between July 2017 and January 2020, relief has been issued for February 2020 of April 2020 in addition to previously granted. In addition, the design and implementation of a standard late payment are easier on an automated common portal.

The late fee for the return is only limited to Rs. 500/- if it is filed before 30 September 2020.

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www.carajput.com; GSTR-4 Late Fees

Summary of Important Due date of July and Aug 2020

 

www.carajput.com; Prosecution in GST

www.carajput.com; Prosecution in GST

Thanks

Rajput Jain & Associates

www.carajput.com

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

GST newest Notifications: summary of CBIC GST Extension Notifications dated 24 June 2020

GST latest Notifications: Analysis of CBIC Notifications on GST extensions dated 24 June 2020

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www.carajput.com; GST 40th Council meeting

Today, CBIC issued various notifications to implement the recommendations of the 40th GST Council meeting as follows: CBIC Notifications signed on 24.06.2020 regarding interest waiver and late fees. On 24 June 2020, the CBIC released multiple notifications of GST. The synopsis of those updates is here.

Notice No. 49/2020 – Central Tax: Implementing some aspects of the Finance Act, 2020

Notification No. 50/2020 – Central Tax: Notification of GST rates for individuals taxable in composition under Rule 7 of the CGST Rules

GSTR-3B-Interest rate waiver: Notification No.51/2020-Central Tax 24.06.2020: To put certain provisions of the Finance Act into force, 2020.

Notification No. 52/2020 – Central Tax: GST waiver for taxpayers who’ve not filed GSTR-3B for tax dates between July 2017 and January 2020 shall be informed as stated earlier at the 40th meeting of the GST Council. In CGST Notification No. 52/2020 dated 24 June 2020, the CBIC notified that between 1 July 2020 and 30 September 2020, Zero GSTR-3B could be filed without a late fee for the above duration. Furthermore, it shall be limited to a maximum of Rs 250 per return per month per act for the remaining taxpayers.

A late fee exemption also moved the last GSTR-1 deadlines from March to June 2020 as of June 30th, 2020. The latest timelines for monthly filing without even a late fee charge will be from March to June 2020, 10th, 24th, 28th July 2020, and 5th August 2020 respectively. The last date for the GSTR-1 quarterly is 17th July and 3rd August 2020 for the quarters January-March 2020 and April-June 2020.

Big taxpayers have not been informed of further extensions for filing GSTR-3B from February to May 2020, with an annual turnover of more than Rs 5 Crore in the previous financial year. Furthermore, no interest should have been paid from the respective due dates of February to April 2020, i.e. 20th of the following month, for the first 15 days respectively. After that, interest at a 9 percent p.a. reduced rate. Any further delay in GST payments would have been imposed till 24 June 2020.

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www.carajput.com; GST 40th Council meeting

Initially, taxpayers with an aggregate annual turnover of up to Rs 5 crore in the last financial year have their due date staggered as 22nd # or 24th # of their next month, depending on the state / UT from which they run their main place of business. For the exception of May 2020, its due date staggered as July 12th # or 14th # # 2020. Furthermore, in the exception, August 2020 also comes with yesterday’s due date extended to 1st # or 3rd # # October 2020.

The CBIC has abolished the taxpayer bifurcation based on the annual sales up to Rs 1.5 crore or between Rs 1.5 crore and Rs 5 crore. Correctly, as per yesterday’s 40th meeting of the GST Council, the late fee and the interest waiver will continue until September 2020

GSTR-1-Late Fees / Penalty Waiver: Notification No.53/2020-Central Tax 24.06.2020: Conditional waiver of late fees for all GSTR 1 registered persons for months/quarters ending March to June 2020, if submitted by the time set.

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www.carajput.com; GST 40th Council meeting

GSTR-3B-Extension of the deadline for Aug 2020: Notification No.54/2020-Central Tax 24.06.2020: extension of the deadline for submission of GSTR 3B to 1/3 October 2020

 

www.carajput.com;GST Relief to small business

www.carajput.com; GST Relief to small business

Summary of Important Due date of July and Aug 2020

Thanks

Rajput Jain & Associates

www.carajput.com

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Whirlpool convicted & imposed a penalty of Rs 4.07 lakh by NAA for denying customers the benefit of the GST rate reduction.

Whirlpool convicted in accordance with Rs. 4,07,451/- of profiteering by the National Anti Profiteering Authority on its fridges

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www.carajput.com; GST

NAA discovered the long-term consumer corporation Whirlpool of India convicted of not having to pass on a GST rate reduction advantage of more than Rs 4.07 lakh to its refrigerator purchasers. Kerala State Screening Committee Anti-Profiteering (NAA) vs. Whirlpool India Ltd.

The concise details of the matter are that the petitioner had made reference a case against Whirlpool to the Standing Committee on Anti-Profit-making alleging profiteering on the supply of fridge Whirlpool (HSN code 84182100), by not passing on the benefit of reducing tax rate w. e. f. 1 July 2017 Pursuant to Section 171 of the CGST Act, 2017, by way of a substantial price decrease.

Few justifications by the defendant and the authority to reply

The plaintiff contended that the rise in prices could not be created because of other commercial factors, which had the impact of placing unlawful restraint on his fundamental right and was consequently in accordance with Article 19(1)(g) of the Indian Constitution.

In this relation, it would also be important to state that section 171(1) requires only the participant to pass on the advantage of the reduction in taxes to the purchasers and does not require him to set his prices in accordance with any authority direction. The above profit was provided by the government to ordinary buyers by sacrificing their valuable tax revenue which the respondent can not be permitted to misappropriate and enrich themselves at the detriment of unorganized, voiceless, and vulnerable common buyers. The respondent is free to exercise his right to trade and set prices, but under the pretext that it infringes his right to trade, he can not deny the above benefit.

The defendant also argued that the product’s manufacturing cost (BOM) had experienced a rise since August 2016 due to a rise in the cost of raw materials which had been computerized to come at the MAP at the end of each and every month.

In this relation, it would also be necessary to note that on the very date from which the tax rate was reduced, there was no reason for the respondent to increase its basic price. There is also no justification for ascertaining why the respondent had not raised its price every month during the period from August 2016 to June 2017 when he computed the MAP every month.

The representative also claimed that there had been an increase in the total freight cost in 2017 compared to Rs. 29 per unit in 2016, which was expected to be added to the price.

As mentioned above, the defendant had no reason to raise its price on the occasion of the reduction in taxes, and thus the respondent’s argument is frivolous and not bonafide, which was made with an ulterior purpose for the betterment of the tax cut.

Held by Authority: on the grounds of the details of the matter, the amount profited by Whirlpool shall be determined as Rs. 4,07,451/-. The Respondent is instructed to lower the price with the above-mentioned product and also to deposit the benefited amount together with interest at 18 percent. A notice of cause shall be issued to him to illustrate why the punishment under the GST Act should not be enforced on him.

Prosecution under GST are as under 

 

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www.carajput.com; GST Prosecution

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

All you Know about documents required under the  GST Refund System

All you Know about documents required under the  GST Refund SystemDetails on GST Refund Process: GST Refund Claim Process Simplified ...

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GST Refund System

As the Goods and Services Tax or GST emerged, various refund schemes and processes were also set in place. Subsequently, several requests for compensation were made by taxpayers and a generic form was adopted.

The conditions for cash flow and working capital of suppliers and exporters may be negatively affected if the refund were postponed. As a consequence, one of the goals of introducing the GST is to ensure that the refund process is simpler so that producers and exporters do not face difficulties due to delays. Through ensuring that the refund process is completed easily, tax administration can become more efficient.

The GST law includes rules on refunds and seeks to streamline and standardize the processes for refunds under the GST law. A uniform method has now been developed to make requests for refunds. The appeals process can be performed electronically in a timely manner.

Eligibility Criteria

Any registered taxable person, other than an input service distributor / component taxpayer / TDS deductor / TCS Collector, may claim the refund of taxes paid on exports under the following conditions:

  • The taxpayer who filed the form GSTR-1, providing the export details in Table 6A of GSTR-1, together with the Integrated Tax details of the shipment, may claim the refund.
  • The taxpayer who filed the form GSTR-3B shall be the return of the relevant tax period for which the refund may be claimed.

GST REFUND IN EXPORTS CASE WITHOUT PAYMENT OF IGST

The refund of the input tax credit is granted as follows:-

Refund Amount = (Turnover of zero rated supply of goods + Turnover of zero rated supply of services) x Net ITC Amount = Adjusted Total turnover

Where,

  1. “Refund amount” means the maximum refund which is admissible;
  2. “Net ITC means an input tax credit applied to inputs and input services during the relevant period;
  3. “Turnover of zero rated service delivery” means the value of zero rated service delivery made without payment of duty under bond or LUT
  4. “Turnover of zero rated service delivery” means the value of zero rated service delivery.
  5. “Adjusted total turnover” means the turnover excluding the value of exempt supplies, other than zero, during the relevant period
  6. The relevant period shall be the period for which the request for refund has been filed.

What is the deadline to claim the refund?

The time limit to claim the refund shall be 2 years from the date of the refund.

In each case, the relevant date is different.

Reason for GST Refund-                                         Relevant Date

  1. Overpayment of GST- Date of payment
  2. Export or deemed export of goods or services – Date of dispatch / loading / passing the border
  3. ITC accumulates as output is tax-exempt or zero-rated- The last date of the financial year to which the credit belongs
  4. Finalization of the provisional assessment- The date on which the tax is adjusted

Also, if the refund is paid with delay, the interest shall be 24 per cent p.a. It’s due to the government.

List of Documentary evidence required for GST Refund Processing

Exports of goods without payment of IGST

The application shall be accompanied by any of the following documentary evidence in the form of GST RFD-01, as applicable:

  1. Copy of the form RFD 01 A filed on the common portal & RNA (Application Reference Number).
  2. GSTR-3B / GSTR-3/GSTR 1 of the specific month
  3. Copy of the undertaking as referred to in Circular 24/2017
  4. Copy of the undertaking of no prosecution pursuant to Rule 91(1) of the CGST Rules of 2017.
  5. Statement 3 (Rule 89(2)(b) and (c)) 6. Statement 3A Rule 89(4) (Calculation of refunds).
  6. Invoices for export & invoices for input service 8. Bank Certificate / Foreign Inward Remittance Certificate Details.
  7. Copy Statement 1: Application for refund has not been filed with any other authority.
  8. 10. Copy Statement 2: No refund has been claimed against the respective invoices (ITC)
  9. Copy Declaration 3: Applicant did not contravene Rule 91(1) of the CGST Rules 2017 Requirement of no prosecution for the last 5 years
  10. Copy of Declaration 4:as per GST RFD-01
  11. Copy of Declaration 5: Drawback not used
  12. Copy of Declaration 6: Declaration on unfair enrichment

Export of services with or without payment of IGST

The application shall be usually accompanied, as generally applicable, by any of the following documentary evidence in the form GST RFD-01:

  1. Copy of the form GSTRFD-01 A filed on the common portal A&ARN print out.
  2. GSTR-3B / GSTR-3 print out of a given month.
  3. Statement-2 as provided for in Rule 89(2)(c) of the CGST Rules 2017
  4. Copy of the undertaking by the applicant pursuant to Circular 24/2017
  5. Copy of the Export & Input Services Invoice.
  6. Copy of the BRC / FIRC to export services
  7. Proceedings of no prosecution Rule 91(1) of CGST Rules 2017
  8. Filing of the declaration in accordance with GST RFD-01 of
  9. Filling the Declaration No Drawback was made available to
  10. Filling the declaration No export duty shall apply to exports
  11. Filling the declaration of unjust enrichment along with the CA certificate if the amount is more than 2 lakes.

Zero Rated Supplies to Special economic zone Unit / Special economic zone Developers

The request shall be accompanied by any of the following documentary evidence in the form GST RFD-01, as applicable:

  1. Copy of the form RFD 01 A filed on the common port & ARN.
  2. GSTR-3B / GSTR-3 Print of a special month.
  3. Copy of Statement-4 in accordance with Rule 89(2)(d) and (e)
  4. Copy of the undertaking by the applicant pursuant to paragraph 2.0 of Circular 24/2017
  5. Property officer’s endorsement of receipt of goods in SEZ (Provision Rule 89 of CGST Rules 2017).
  6. Copy of the undertaking of no prosecution pursuant to Rule 91(1) of the CGST Rules 2017.
  7. Tax invoices as laid down in Rule 46 of the CGST Rules 2017 8. Copy of the undertaking by SEZ developer / Unit as not claimed by ITC.

 Deemed exports

  1. Declaration of GST RFD-01 – (Claimed not to exceed ITC)
  2. Copy of the undertaking as referred to in Notice No. 49/2017 by receipt of the Supply stating no claims by Refund & ITC
  3. Statement-5B Rule 89(2)(g) of the CGST 2017 Rules 4. Printout GSTR-3B / GSTR-3
  4. Copy of GSTR RFD-01 & /ARN
  5. Copy of undertaking no prosecution Rule 91(i)
  6. Copy of the undertaking by the applicant as provided for in 24/2017

ITC accumulated as a result of the inverted tax structure

  1. Copy of the form RFD 01 A filed on the common port & ARN
  2. GST-3B / GST-3 of the month
  3. Copy of the undertaking as indicated in Circular 24/2017
  4. Copy of the undertaking of no prosecution pursuant to Rule 91(1) of the CGST Rules 2017.
  5. Refund Amount as provided for in Rule 89(5) of the CGST Rules 2017:
  6. Copy of the Statement 1 Rule 89(2)(h) of the CGST Rules 2017 and Article 54(3)(ii) of the CGST Act 2017
  7. Self-declaration of unwarranted enrichment along with the CA certificate if the amount is more than 2 lakes

Excess cash available in the cash ledger

  1. Copy of the form RFD 01 A filed on the common port & AMN
  2. Copy GSTR-3B/3 of the month
  3. Statement 7 pursuant to Rule 89(2)(k)
  4. Copy of Cash & Credit Ledger

 Post by Rajput Jain & Associates

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Corporate and Professional Updates on 17th June 2019

Direct Tax Updates:

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  • CBDT has tightened framework for compounding of offences almost shutting the window for money laundering, non-disclosure of foreign assets or possession of a benami asset. The latest guidelines which come into effect from June 17, clearly state offences in this category cannot normally be compounded. However, finance minister can relax restrictions on consideration of a report from CBDT.
  • CBDT has issued notification no 10/2019 for further changes in rule 31A(5) and 31AA(5) for e-filing of TDS returns. The procedure is same as issued as earlier, now the tds return can be validated either through DSC or EVC. The EVC generation is same as ITR EVC.

Indirect Tax Updates:

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  • Goods and Services Tax Council, the federal indirect tax body, is set to take several decisions to curb tax evasion in its first meeting to be chaired by new finance minister Nirmala Sitharaman on 21 June. The government plans to increase scrutiny on businesses amid lower-than-expected GST collections after handholding them through the first two years of the tax reform. The 35th meeting of the GST Council will seek to introduce compliance requirements, initially on big businesses and eventually on all merchants to curb tax leakage.  
  • GST compliance will take enforcement activities under the indirect tax system to the next level. At present, the ministry of corporate affairs (MCA) is implementing a geotagging scheme for companies aimed at identifying every active company and the people behind them. Pooling the geo-tagging information available from the MCA database with the data generated by indirect tax authorities will help in verifying the credentials of different parties to a transaction. However, all measures to improve compliance will be implemented only in a gradual way, starting with the largest businesses. The slow recalibration of the tax system is meant to avoid a backlash that the tax reform had witnessed immediately after its rollout two years ago, forcing the council to defer tax return filing deadlines several times and temporarily suspend some of the safety features of the new system. 
  • With revenue receipts below targets, the central government, which has the Constitutional obligation to compensate states for their revenue shortfall in the first five years of GST implementation, and states that worry about loss of revenue in the subsequent years are keen to gradually increase enforcement measures. Experts said grievances that some businesses and traders, especially the smaller ones, have about GST are not about the indirect tax per se, but on account of the light the technology-driven tax sheds on sales, that makes it harder to avoid paying tax on income. No big tax rate cut is likely in the forthcoming meeting of the council.

NBFC Updates:

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  • Fixed income investors perceive non-banking finance companies (NBFCs) as less of a problem than housing finance companies (HFCs), corporate bond data shows. The cost of borrowing for AAArated NBFCs declined by 13 basis points in May versus April in the debt market, while it increased by 19 basis points for AAA-rated HFCs, according to a report by CARE Ratings.
  • NBFCs have been witnessing higher cost of borrowings compared with all other categories, including Alternative Investment Funds and HFCs, since April 2018. The yields on corporate bonds and commercial paper have been on the rise following the stress in the NBFC sector from September 2018 and defaults by IL&FS. Corporate bond yields have since moved down to 8.49% in May, from 9.8% in September. Similarly, commercial paper yields have moved lower to 7.48% in May from 7.72% in September.

Other Updates:

  • BHEL bags 200 MW solar energy orders worth Rs 800 cr
  • NBFC crisis to pull down home loan growth: Report
  • Trai to determine the unique mobile subscribers base
  • UCO Bank declares Yashovardhan Birla wilful defaulter
  • FinMin assessing capital needs of PSU banks
  • Lakshmi Mittal’s South African subsidiary facing charges
  • Sebi likely to rejig mutual fund categorisation norms to curb credit risk
  • Cross-border insolvency: Cabinet likely to take up new provisions soon
  • RBI joins peers to buy gold insurance as US-China trade war escalates
  • Hindustan Copper plans to increase ore production five times by 2025
  • Lupin recalls more than 18,000 bottles of antibiotic drug in US market
  • India draws up plan to gain from US-China trade war
  • India imposes higher customs duty on 28 US products
  • Suspect DeMo cash deposits again come under scanner
  • GST Council may give 1-year extension to anti-profiteering authority
  • Vedanta lost $200 m on Sterlite plant shutdown: Anil Agarwal
  • Noose tightens on Swiss account holders; Details of at least 50 Indians shared
  • India has wage problem, not job problem: Mohandas Pai
  • Niti asked to follow due process for suggesting CPSE assets for monetisation
  • Agrochemicals exporters widen their valuation gap vis-à-vis domestic plays
  • ONGC to auction over 60 fields to private operators
  • Rainfall deficiency hits 43 per cent; monsoon progress likely in the next 2-3 days: IMD
  • FPIs remain net buyers in June, invest Rs 11,132 crore
  • India can boost exports of 300 products to US, China amid trade war, says report
  • Jaypee Infratech lenders moot fresh plan to complete housing projects
  • CREDAI seeks bank funding for developers to buy land for affordable housing projects
  • Round-tripping still rampant in gold exports
  • Steel industry seeks safeguard duty to counter rise in imports
  • Start-ups entering listed space via reverse merger

Key Due Dates:

  • The Due Date of GSTR-3b For the Month Of May is 20th June 2019.
  • The Due Dates for the Deposit of TDS/TCS for the Purchase of Property 30th June 2019.\
  • Annual Return For Registered Tax Payers is 30th June 2019.

 

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Corporate and Professional Updates on 14th May 2019

Indirect Tax Updates:

Image result for hd pics on Indirect tax
  • The Goods and Services Tax (GST) Council has added flexibility into the way a company can utilize the available input tax credit. Any company would now be eligible to use credit available against paid integrated GST (IGST) to set off tax liabilities of state GST (SGST) and central GST (CGST) in any proportion and in any order, the GST Council said in a circular sent to field formations on Tuesday. Previously, the order of using the IGST credit was kept flexible — it was the company’s choice to set off CGST or SGST first — in a notification dated March 29. However, it was not clear whether a company would be able to use IGST credit to set off SGST liability and CGST liability partially at the same time. It was construed that if a company chooses to set off SGST liability first, it would have to exhaust the entire SGST liability before using the IGST credit to set off CGST liability.

RBI Updates:

Image result for Hd pics on Rbi
  • The beginning of the financial year 2019-20 saw a bit of rising inflationary pressures, but the rate of price rise was still below the average of the Reserve Bank of India’s (RBI’s) mandate of 2-6 per cent.
  • Experts are divided whether the monetary policy committee (MPC) of the RBI will cut the policy rate in June. The retail price inflation rose to a six-month high of 2.92 per cent in April, pushed up by costlier food items. However, food inflation was still 1.1 per cent in the month against 0.3 per cent in the previous month. It was in March that food inflation broke the five-month trend of deflation. This may augur well for farmers who faced rural distress.
  • Inflation in urban areas rose to 4.64 per cent in April from 3.47 per cent in the previous month, which may not go down well with the middle class, if the trend persists. Much of the inflation in food items is generally attributed to the government’s recent move to give higher minimum support price (MSP) to farmers.

Other Updates:

  • Disclose exposure to IL&FS, RBI tells banks
  • Customer plaints against banks surge 25% in FY18
  • RBI sells entire stake in NHB, Nabard to govt
  • FinMin may raise cap on 59-minute loans to Rs 3-5 cr
  • CBI’s Look Out Circulars against Bhushan steel boss
  • SFIO quizzes Deloitte ex-CEO over alleged audit lapses in books of IL&FS
  • No change in Bharti Infratel’s Q4 net amid merger with Indus Towers
  • ONGC arm delays plan to invest in Iran gas field after US sanctions
  • Jalan panel on RBI’s capital size to submit report by June
  • Approach SBI, Jet tells UK entrepreneur who evinced interest in buying the airline
  • Data on jobs, GDP being analysed with a new set of proxies: CEA
  • Govt procures 55.17 lakh tons of wheat so far this year
  • Forensic auditors indicate IGIDR used data shared by MCX to develop an ‘algo-trading strategy’
  • VRS package may save Rs 1,080 cr in annual salary tab: MTNL chief
  • Voda Idea rights issue receives bids for 1109 crore shares: NSE data
  • Nasdaq hits record, S&P nears all-time high on upbeat earnings
  • Delhi HC allows Alembic, Natco to export Bayer drug for specific purposes
  • SBI gets board approval to raise up to $2.5 billion in bonds.
  • RBI deputy governor B P Kanungo bats for capital account liberalization.
  • Maruti signals tough road, gives weakest growth forecast in the past 5 yrs.
  • Major lapses in Deloitte audit of IL&FS Financial Services, says SFIO.
  • Insolvency process: NCLT asks bank officials to appear in Sterling SEZ.
  • Ruchi Soya case: Lenders to meet on Friday to consider Patanjali’s offer.
  • US official insists on zero oil imports from Iran.
  • ‘High fuel prices may have led to a slowdown in auto sales’.
  • India sets a record foodgrains target of 291 million tonnes.
  • Wendt India’s PAT up 10% in FY19.
  • Hind Copper approves raising up to Rs 1,400 cr through QIP.
  • Glenmark gets nod to market nasal spray as OTC product in Russia.
  •  Microsoft edges toward $1 trillion valuation on results beat.

Key Due Dates:

  • GSTR-3B for the month of April 2019 is 20th May 2019.

 

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Corporate and Professional Updates on 9th May 2019

Indirect Tax Updates:

Image result for hd pics on Indirect tax
  • CBIC has issued 41 Clarifications on FAQs/ Issues relating to new GST rate structure notified for Real Estate sector applicable from 1 April 2019.
  • Goods and Services Tax regime in India is not likely to reduce the deficits of state governments significantly, amid large and growing expenditure mandates for the social sector as well as capital spending.

RBI Updates:

Image result for hd pics on RBI
  • RBI is likely to cut interest rates one more time in June before rising inflation pressures and elevated fiscal deficits leave little room for further accommodation in rest of the year. RBI had cut interest rate by 25 basis points each in February and April to boost economic growth.
  • The Reserve Bank of India is working on its disclosure policy under the Right to Information Act and will release an updated version in a few weeks, possibly after the election results. The central bank had, on April 30, updated its disclosure policy on its website to reflect the omission of certain clauses. 

Other Updates:

  • Oil imports from Iran down 57% y/y in April: Trade
  • US commerce secy warns India against retaliatory tariffs
  • Airtel to merge VSAT ops with Hughes India unit
  • NCLT begins bankruptcy process for RCom
  • Essar shareholder seeks ban on Mittal’s bid
  • BSE Q4 net profit drops 16.46 pc to Rs 51.86 crore
  • RBI’s holding company model for banks will help contain NPAs, says Charan Singh
  • IMF chief Christine Lagarde says US-China tensions ‘threat’ to world
  • Rupee slips to 69.43 against US dollar
  • Multifold increase in investments in B2B startups
  • NBCC offers just Rs 20 crore to operational creditors.
  • HDFC Bank board may go for splitting stock into two later this month
  • Wockhardt Q4 net loss narrows to Rs 14.47 cr
  • Industry bodies list key issues for GST Council meet next month
  • Gujarat Gas net jumps 77% in March quarter
  • PFS reports Q4 net profits at Rs 36.76 crore
  • Liquidation process for ABG Shipyard commences
  • Medlife acquires Bengaluru-based Myra Medicines
  • NRIs can remit up to $1 mn from sale of property in India
  • Investor wealth erodes by ₹1.24 lakh cr as markets plunge
  • Finance Commission to meet RBI governor, bank officials during Mumbai visit
  • Asset quality improves but trend in slippages, provisions key of ICICI Bank.
  • UK entrepreneur says SBI allows him to bid for Jet Airways
  • Mastercard commits $1 bn investment in India in next 5 yrs; to develop India as global tech node.

Key Due Dates:

  • Payment of TDS Deducted in April is 7th May 2019.
  • GSTR-1 Due Date for the month of April 2019 is 11th May 2019.
  • GSTR-3B for the month of April 2019 is 20th May 2019.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)