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.

www.carajput.com;GST Evasion

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.

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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)

Latest Indirect Tax Update by the Council on Goods and Services Tax India

Current Indirect Tax Update by the Indian Goods and Services Tax Council

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www.carajput.com; GST

# CBIC has explained that an application for a refund may be submitted before 30.06.2020 as the duration of two years is between 20.03.2020 and 29.06.2020.

# CBIC has clarified that an application for a letter of undertaking (LUT) for export without payment of tax may be filed for F.Y. until 30.06.2020. 2020–21.

# CBIC has explained that where taxes have been paid in respect of any supply which has been returned / canceled subsequently, the taxpayer may demand the refund in Form GST RFD-01 if there is no corresponding production liability for the adjustment of the Credit Note.

# Form GST PMT-09 is now available on the GST Site, and can be used to transfer cash balances from one tax head to another tax head.

# CBIC instructed FORM GST PMT-09 of the move of balances in Cash Ledger from one head (Tax / Interest / Fee, CGST / SGST / IGST) to another head (Tax / Interest / Fee, CGST / SGST / IGST). The form has been enabled on the GST Portal and can be filed as required.

# 30.06.2020 is the latest due date of GSTR-1 for the months of March, April and May, 20 and Q4 (2019-20) for all taxpayers irrespective of turnover.

# CBIC has instructed that a registered person will be able to file NIL returns in the form GSTR-3B via a sms service using a registered mobile number and must be checked by an OTP obtained on a registered mobile number.

# Established composition Taxable person to file CMP-08 for Q4 (2019-20) by 07.07.2020 instead of 18.04.2020 and file GSTR-4 for FY 2019-20 by 15.07.2020 instead of 30.04.2020.

# 05.05.2020 is the due date for filing GSTR-3B for taxpayers with a cumulative turnover of more than INR 5 crores for the month of March, 20. Note-filing GSTR-3B by the latter date will not grant you an extra expense burden on interest and late fees. However, you will file 9 percent interest and zero late fees over GSTR-3B before 24.06.2020.

# CBIC has notified that GSTR 3B has been verified by the Electronic Verification Code (EVC) during the period from 21.04.2020 to 30.06.2020.

# Budget 2020 revised Section 51 of the GST Act to eliminate the requirement that the tax deductor grants the “GST TDS Certificate.”

Note-To collects the deducted TDS, you need to sign in to the “GST Server” and go to the “Returns-TDS and TCS Credit Earned” page. The moment you submit such a return, the amount of TDS deducted will come in “Electronic Cash Ledger” and, interestingly, the same amount may also be deducted from RCM’s liability.

# Condition of ITC @ 110 percent of eligible ITC in 2A (if available) to be checked “cumulatively” for the months of Feb to Sep, 20 as per CBIC Notification.

THE DUE DATE TO FILE GSTR-3B: # Cautiously respond to the due dates of GSTR-3B relevant in your case for the coming months (as shown in the Master Updates above). When you are considering selecting a due date with a decreased interest (* *) above, choose the same option in these situations:

  • If your net tax obligation is “Nil,” no interest can be paid in that situation.
  • If you have to pay tax by some Interest Rate loan, more than 9 percent p.a.
  • February, 2020:
    • Nominated 04.04.2020 is the due date for filing GSTR-3B for taxpayers with Turnover > INR 5 crores. * *
    • Nominated 29.06.2020 is the due date for filing GSTR-3B for taxpayers with Turnover < = INR 5 crores but > INR 1.50 crores in the previous year.
    • Nominated 30.06.2020 is the due date of the GSTR-3B file for taxpayers with Turnover < = INR 1.50 crores in the previous year.
  • March, 2020:
    • Nominated 05.05.2020 is the due date to file GSTR-3B for taxpayers with Turnover > INR 5 crores.
    • Nominated 29.06.2020 is the due date to file GSTR-3B for taxpayers with Turnover < = INR 5 crores yet > INR 1.50 crores in the previous year.
    • Nominated 03.07.2020 is the due date of the GSTR-3B file for taxpayers with Turnover < = INR 1.50 crores in the previous year.
  • April, 2020:
    • nominated 04.06.2020 is the due date for filing GSTR-3B for taxpayers with Turnover > INR 5 crores.
    • Nominated 30.06.2020 is the due date for filing GSTR-3B for taxpayers with Turnover < = INR 5 crores yet > INR 1.50 crores in the previous year.
    • Nominated 06.07.2020 is the due date of the GSTR-3B file for taxpayers with Turnover < = INR 1.50 crores in the previous year.

Note : If not filed before the due date but filed before 24.06.2020, then decreased interest @ 9 per cent p.a. It would be available without any LATE FEES.

  • May, 2020:
    • The due date for filing GSTR-3B by taxpayers with Turnover > INR 5 crores is 27.06.2020.
    • 07.2020 is the due date for the filing of GSTR-3B by taxpayers with Turnover < = INR 5 Crores AND Notes with the “22nd day of next month” as the earlier due date.
    • Nominated 14.07.2020 is the due date for the filing of GSTR-3B by taxpayers with Turnover < = INR 5 Crores AND Notes with the “24th day of next month” as the earlier due date.

Applicable Annual Report and GST Audit

# GSTR-9 (Annual Report) is expected to be submitted only by taxpayers with gross turnover in excess of INR 2 crores in the financial year 2018-19.

# GSTR-9C (Audited Reco. Statement) is expected to be submitted by taxpayers with an annual turnover of more than INR 5 crores in the financial year 2018-19.

# GSTR-9A (Annual Return by Arrangement Taxable Person) is not necessary to be filed for F.Y in any case. Financial Year 2018-19, since “Optional” is the same thing.

# CBIC has issued a Notification to exempt foreign airline companies w.r.t. from filing GSTR-9C (Reconciliation Statement) where the company complies with the provisions of the Foreign Company Compliance Act and is only required to file ‘Receipt and Payment Account’ for each GSTIN by 30 September of each year.

# The due date of GSTR-9 (Annual Return) and GSTR-9C (Audited Reco Statement) for FY 2018-19 has been extended to 30.09.2020. Note: GSTR-9 is required to be filed only by taxpayers with an aggregate turnover of more than INR 2 crores in the 2018-19 fiscal year. However, GSTR-9C is expected to be submitted only by taxpayers with an annual turnover of more than INR 5 crores in the 2018-19 fiscal year.

# Technical Words of caution for GSTR-9/9C:

  • Appreciable Estimates for GSTR-9 are self-populated for GSTR-1 and GSTR-3B for REFERENCE purposes only.
  • Appropriate In the event that the supplies indicated in GSTR-1 and/or GSTR-3B vary from the real supplies for some reason, the estimates are to be revised “manually” in Part II (B2B, B2C etc) and the “price due” number is to be revised “manually” in Table 9 of GSTR-9.
  • After changing Section II and Table 9, you can see a “payable discrepancy” in Table 9 after modifying the sums “Paying by Cash + Charged by ITC.” This balance will be compensated by the taxpayer via DRC-03. In case of excess already paying, the refund may be requested via RFD-01.
  • If paid as above, there is no provision to include the same differential number in GSTR-9C in the table “Auditor Recommendation”.

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)

SITUATIONS THAT WHICH MAY LEAD TO A GST REFUND OF CLAIMS

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www.carajput.com; GST ACT

What’s the GST refund?

Usually, when the GST paid is more than the GST liability, the GST refund situation arises. In the context of GST, the process of claiming a refund is standardized to avoid confusion. The mechanism is online and deadlines have also been set for the same thing.

What is the GST ARN number?

The ARN is a 15-digit application reference number that is recognized by the GST portal while submitting the GST Registration application. The ARN number helps to track the status of the GST portal application for registration. If the applicant already knows the number of his application for registration, it is much better, but if the applicant does not know his ARN, then this is the process to know the number of the application.

Situations that may lead to a refund of claims

A proper refund process is necessary for successful tax administration, as trade is encouraged by the release of restricted funds for the modernisation, growth and capital needs of a company. There are many cases in which refunds can be claimed. Here are some of them.  There are many cases in which refunds can be claimed. Here are some of them the circumstances which could lead to claims for refund include:

  1. The excess tax payment is due to error or omission.
  2. Exports of Product/Services
  3. Dealer Exports (including deemed export) goods / services on the basis of a refund or refund
  4. GST Refund if the embassies buy.
  5. Supplies to developers and units in special economic zones
  6. Refund of accrued input tax credit on account of inverted duty structure
  7. Refund of pre-deposit if any
  8. Refund will arising from court order/judgment/direction and decree of the Appellate Tribunal, Appellate Authority or any court of law
  9. Refund of taxes when embassies make purchases
  10. Finalisation of provisional assessment
  11. Excess payment because of an error
  12. Refund due to issuance of refund vouchers for taxes paid on advances against which commodities or services haven’t been supplied
  13. Finalization of the provisional assessment
  14. Tax refund for international tourists who paid GST on commodities within the country and carried to an international location when they depart India
  15. Refund of SGST and CGST paid by considering the supply in the course of inter-state commerce or trade
  16. ITC accumulation on the basis that the output is tax-exempt or zero-rated

Requirement of list of Documents for GST refund application

Applicants who wish to make a claim will have to submit detailed documents in addition to a refund claim. The documents prescribed for the same are standard documents. Therefore, for each claim, the primary document to be submitted is a statement of the relevant invoices relating to the claim. If the refund is made on account of the export of services, not including the invoice declaration, the relevant bank accounting certificates verifying receipt of payment in foreign currency should also be provided. In the event that a claim is made by the Supplier to the Special Economic Zones (SEZ) unit, the Authorized Officer will have to confirm receipt of such goods or services in the SEZ and submit the same along with the other documents. In addition, the SEZ unit will also have to make a declaration stating that the ITC tax paid by the supplier has not been used.

List of documents required for GST Refund Processing-

  1. Copy of Form RFD 01 A filed on the common portal-
  2. Copy of Statement 3 A of Form RFD 01 A generated on the common portal-
  3. Copy of Statement 3 of Form RFD 01 A
  4. Invoices relating to input and output services-
  5. BRC / FIRC for export of services-Company / Declaration in Form RFD 01 A

Refund Process under GST

In order to process a refund claim, the following procedure must be followed:
• Visit the GSTN portal and fill in the application form to claim the refund.

  • You will receive an email or an SMS containing an acknowledgement number after the application has been filed electronically.
  • The Cash and Return Ledger will be adjusted and the “Input Tax Credit Carry Forward” will be reduced automatically.
  • The request for refund, together with the documents you have submitted, will be examined by the authorities for a period of 30 days after the request for refund has been filed.
  • “Unjust enrichment” (explained below) is a concept that will be thoroughly scrutinized by the authorities. In the event that the application is not eligible, the refund will be transferred to the Consumer Welfare Fund (CWF).
  • In the event that the refund claimed by the individual exceeds the predetermined amount of the refund, a pre-audit procedure will be carried out before the refund is punished.
  • The payment of the refund shall be made electronically to the applicant’s account through NEFT, RTGS or ECS.
  • Individuals are allowed to submit their applications for refund at the end of each quarter.
  • If the amount of the refund is less than Rs.1000, no refund will be granted to the individual.

Process of refunding the GST for exports pursuant to the present return file

Unjust Enrichment

Due to the fact that GST is an indirect tax structure and that the consumer has to bear its incidence, it is usually assumed that the owner of the business will transfer the incidence of tax to the final consumer. For the same reason, any refund claim (excluding specified exceptions) is required to pass the “unjust enrichment” test. If such claims are punished, they shall first be transferred to the Consumer Welfare Fund. The test shall not apply to refund of accumulated ITC, refund of payment of incorrect tax, refund on account of exports, refund of tax paid on supplies, etc. In addition to the above-mentioned incidents, the “unjust enrichment” test must be carried out if the claim amount is to be received by the applicant.

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)

New GST refund procedure under the GST regime  

New GST refund procedure under the GST regime  

For GST REFUND: we have two scenario

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www.carajput.com; GST Refund

  1. a) Export with payment of IGST:

Form GST RFD-01/RFD-01A: GST export refund process will require the submission of the form RFD-01 (completely online) or RFD-01A (manual) in specific cases only.

(1) Export of goods: in the case of export of goods subject to payment of tax, no separate refund application is required, as the shipment bill itself will be treated as a refund application. The details entered in the form GSTR-1 will be matched to the details indicated in the shipping bill as filed with ICEGATE. The ICEGATE will then process the refund and credit on the same bank account as the taxpayer has indicated on its portal.

(2) Export of Services: a request for a separate refund in RFD-01A is required. Such a taxpayer must login to the GST portal and select Services > Refunds > Application for Refund > Export Services with Tax Payment > RFD-01A. Details on the export of services will need to be uploaded using the offline utility. It will also be necessary to provide the amount of refund and the bank account number in which the refund is to be credited. Upon successful filing, an Application Reference Number (ARN) will be generated which can be used to track the status of the refund application.

(b) Export without payment of IGST:

The process of refunding the GST for exports involves a different document in this case. The option to export goods without payment of tax may be used either in the context of a letter of undertaking (LUT) or a bond. In such cases, any ITC accumulated on unused input/input services will be available for refund. The LUT option is only available for a select number of exporters that meet the prescribed criteria. The procedure is similar to that for the export of services.

Form GST RFD-11: The LUT can be filed on the common portal in Form GST RFD-11 by accessing Services > User Services > Furnish Letter of Business (LUT). The required details are filled in and uploaded along with the digital signature as per the LUT filing procedure. The GST export refund process will not be complete without this submission.

In the case of a bond, it must be executed manually on a stamp paper, signed and submitted to the Deputy Assistant Commissioner, along with the relevant documents, such as Form RFD-11 on the taxpayer’s letterhead, bank guarantee, letter of authority, etc.

Form GST RFD-01/RFD-01A: Similar to the process of GST refund for exports in the event of a tax payment, this form should be used by taxpayers. Details relating to ITC attributable to zero-rated supplies must be entered and submitted on RFD-01 (completely online) or RFD-01A (manual). The taxpayer should confirm that RFD-11 has been filed. Upload the relevant documents and affix the digital signature to submit the form and the ARN will be generated for tracking.

The invoice declaration procedure in Form GSTR-1 is the same, except that ‘Without payment of tax’ must be selected in the GST Payment field.

GST export refund process under the new GST export refund process

The GST export refund process and the RFD-01A and RFD-11 refund application will remain the same under the new GST return system. In the return, there is a change in the reporting of export details. The following are the forms used to report the export refund details.

Form ANX-1: GST refund mechanism for exports under new GST returns will start with ANX-1. In this form, the export invoice details are to be uploaded in Table ‘3C – Exports with Tax Payment’ and Table ‘3D – Exports without Tax Payment’ depending on whether or not the IGST is paid for the supply.

For the tax period, all such export invoices on which the shipping bills / bill of export are available until the date of filing of the GST returns, i.e. on the 20th of the next month for monthly filers, or on the 25th of the month following the quarter for quarterly filers, must be reported. The remainder will be reported in the next tax year.

The details required in this field would be as follows:

  • Document details (invoice, credit or debit note, serial number, date, value)
  • HSN code (six-digit level)
  • Tax rate and taxable value
  • Relevant tax amounts (in the case of export with payment of tax)
  • Shipping bill/bill of export (no and date)

As soon as implementation begins, separate functionality will soon be b) It will then automate the process of refunding the GST for exports to a massive extent.

FORM RET-1: GST refund process for exports under the new GST return system will continue with the RET-1 declaration. The value and the amount of tax in relation to exports declared in ANX-1 will be auto-populated for outward supplies in Table 3A (rows 3 and 4). Therefore, the taxpayer simply has to verify the same and not re-enter the details.

New amendment return introduced: an amendment to the export details, whether or not with payment of IGST, may be made in ANX-1A to amend the original annex ANX-1 submitted for the tax period, either monthly or quarterly. This can be done by referring to the original details. These are going to be auto-populated to RET-1A. Note that an amendment to the export documents on which the refund has already been successfully claimed is not allowed. On the other hand, those export invoice details which have not been declared in previous periods may be reported in the current ANX-1 period itself.

Has the process of GST refunded for exports become easier?

The major change that can be seen is that there is an auto-population of details entered in ANX-1 to RET-1. It is different from the current/old system where GSTR-1 reporting is independent of GSTR-3B.

There will be an integrated facility for the importation of shipping bill details as well as an entry fee from ICEGATE to the GST portal for exports and imports. This manual document reporting process is temporary since the new GST system will have the portal auto-populating data directly from the ICEGATE database in the respective tables in the ANX-1 and 2 forms.

No changes were observed in the process of applying for a refund in RFD-01/01A. When it comes to the export of goods, the filing of the shipping bill is considered to be an application for refund and continues under the new return filing system. In this case, quarterly return filers may have to wait longer for their refund to be processed.

Thus, the overall impact of the export reporting and refund claims under the new return filing system appears to be minor but definitely easier.

Effect of GST on Advertisement and Cinema Industry

GST Impact on Import and Export 

GSt Impact on Real Estate 

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)

Taxpayers to watch out for common GST websites and bogus GST refund messages: GSTN Alert

GSTN alerts taxpayers to beware of looking similar websites and fake messages on GST Refund

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www.carajput.com; GST Refund

Kindly Pay attention to taxpayers!

Goods and Service Tax Network issued an alert dated May 03, 2020 to taxpayers on fake messages on GST Refund and to protect taxpayers from fake messages on GST Refunds.

BEWARE of FRAUD https:/onlinefilingindia.in website. BAIT is trying to reveal personal and bank details to taxpayers. Don’t respond to messages, mails and look-alike websites that ask for your personal details.

Pay attention to tax payers! – Safeguard yourself from fake messages on GST refunds. It has been noted that some fraudulent messages are being circulated on WhatsApp, Email and SMS, claiming to process GST refunds. It clearly shows that some miscreants have begun to take undue advantage of the Covid-19 crisis by sending out fake messages with phishing links. One such link is to the portal claimed to have been developed by Goods and Service Tax Network ,. The same is false and only www.gst.gov.in has been notified by the Government as a common portal under the GST legislation.

Through such links, taxpayers are asked to fill in important information such as personal details, Address, Refund Details and KYC Verification, which may not only cause financial losses to taxpayers but also enable such unscrupulous elements to steal their personal data for unfaithful purposes.

Please be advised that GST refunds can only be claimed through the GST portal www.gst.gov.in. for any other source, a portal with a similar interface, a message falsely claiming to process GST refunds is completely fraudulent. Please also note that GST Network does not ask for sensitive personal information, refund details and identity verification of KYC via email, WhatsApp or SMS or any other website.

Rajput Jain & associates advice:  Do’s and Don’ts regarding Refund Applications

What’s to be Do’s about GST Refund Applications

  1. Remember that GST Network will never call detailed personal information and refund details via email, WhatsApp or SMS
  2. Make sure that: Use only the GST portal www.gst.gov.in to claim refunds
  3. For any information on GST refund claims, please read https:/www.gst.gov.in/help/refund
  4. take into consideration that: Stay up-to-date with the News & Update section of www.gst.gov.in for any official and authorized information
  5. In case of confusion, please call GST Helpdesk 1800-103-4786.

What’s Need not to Do with GST Refund Applications

  1. Kindly Do not open a link or attachment in the message
  2. Make sure that Don’t call the number mentioned in the message
  3. Remember that Do does not reply to any message calling for the processing of GST refunds
  4. Make sure -Never fill in any personal details or other information on any platform other than the GST portal to claim refunds
  5. take into consideration that Does not trust information from any source other than the GST portal that uses similar portal names and interfaces.

    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)

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 ...

www.carajput.com; GST REFUND CLAIM

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)

GST ROLL-OUT – COMPLETE TRANSFORMATION OF THE INDIRECT TAXATION LANDSCAPE

GST ROLL-OUT – COMPLETE TRANSFORMATION OF THE INDIRECT TAXATION LANDSCAPE:

www.carajput.com; GST

www.carajput.com; GST

Goods and Services Tax (GST), a historic tax reform, will come into effect from tomorrow i.e.1st July, 2017. GST will completely transform the Indirect Taxation landscape in the country involving both the Central and State levies. In a departure from the normal practice, GST will be administered together by the Centre and States.

To commemorate the historic occasion, a function will be held in the Central Hall of Parliament on the mid-night of 30th June – 1st July, 2017. The occasion will be graced by the Hon’ble President, Hon’ble Vice President,  Hon’ble Prime Minister, Hon’ble Speaker of Lok Sabha and Hon’ble Union Finance Minister among other dignitaries.

GST SO IMPORTANT: –

The biggest tax reform since independence – GST – will pave the way for realization of the goal of One Nation – One Tax – One Market. GST will benefit all the stakeholders namely industry, government and consumer. It will lower the cost of goods and services, give a boost to the economy and make the products and services globally competitive, giving a major boost to ‘Make in India’ initiative. Under the GST regime, exports will be zero-rated in entirety unlike the present system where refund of some of the taxes does not take place due to fragmented nature of indirect taxes between the Centre and the States. GST will make India a common market with common tax rates & procedures and remove economic barriers. GST is largely technology driven and will reduce the human interface to a great extent. GST is expected to improve ease of doing business in India.

In the majority of supplies of goods, the tax incidence approved by the GST Council is much lower than the present combined indirect tax rates levied [on account of central excise duty rates / embedded central excise duty rates / service tax post-clearance embedding, VAT rates or weighted average VAT rates, cascading of VAT over excise duty and tax incidence on account of CST, Octroi, Entry Tax, etc.] by the Centre and State(s).

The journey of GST after the Constitutional Amendment Act, 2016

After the assent of the Hon’ble President on 8th September, 2016, the 101th Constitutional Amendment Act, 2016 came into existence. The GST Council was constituted on 15.9.2016.

Since its formation in September 2016 the GST Council has held 18 meetings. The Finance Ministers of all the States or their representative along with State and Central govt officials have participated in these extensive meetings and formulated the law and procedure to implement this historic tax reform. It was a mammoth task involving 27000+ man hours of intensive work. More than 200 meetings of the officers of the Centre and States took place in different parts of the country to expedite the implementation of GST.

While framing GST Acts and Rules, enhanced ‘Ease of doing business’ for the taxpayers was a key consideration and accordingly the roles and responsibilities of the States and Central govt have been defined. In a short span of time, the GST council has cleared GST laws, GST Rules, Tax rate structure including Compensation Cess, Classification of goods and services into different rate slabs, exemptions, thresholds, structure for tax administration, etc. All the decisions of the Council were taken with consensus. While formulating the Acts and Rules, extensive participatory consultations with trade and industry including other significant stakeholders were undertaken. Feedback was also obtained by posting draft Acts and Rules on the websites and inviting comments from the public.

On 29th March, 2017, the Hon’ble Finance Minister of India tabled four Goods and Services Tax (GST) Bills for consideration and passage in the Lok Sabha namely The Central Goods and Services Tax (CGST) Bill, 2017, The Integrated Goods and Services Tax (IGST) Bill, 2017, The Union Territories Goods and Services Tax (UTGST) Bill, 2017 and the GST (Compensation to States) Bill, 2017. They were passed by the Lok Sabha on 29th March, 2017 and by the Rajya Sabha on 6th April, 2017.

The GST Council has decided the final structure of GST as follows:

  • The threshold limit for exemption from levy of GST is Rs. 20 lakhfor the States except for the Special Category, where it is Rs 10 Lakh.
  • A four slab tax rate structure of 5%12%18%and 28% has been adopted for GST.
  • A cess would be levied on certain goods such as luxury cars, aerated drinks, pan masala and tobacco products, over and above the GST rate of 28%for payment of compensation to the states.
  • The threshold for availing the Composition scheme is Rs. 75 lakhexcept for special category States where it is Rs. 50 lakh and they are required to file quarterly returns only. Certain categories of manufacturers, service providers (except restaurants) are out of the Composition Scheme.

Other Important Features of GST : Few things to know before GST rollout. GST will be rolled out from July 1, 2017 and just before its implementation the Govt. had issued various notifications on GST:

  • There is a requirement to mention HSN code of items in tax invoice under GST. Now the Govt. has given some relief to small assessees with annual turnover uptoRs 1.5 crores. They are not required to mention HSN code in their tax invoice. Taxpayers having turnover in the range of Rs 1.5-5 crore will be required to mention only two digits of HSN code and taxpayers with turnover more than Rs 5 crore will be required to mention four digits of HSN code.
  • Now the Govt. has given exemption from reverse charge in those cases wherein the value of goods or services does not exceed Rs 5000 and such goods or services are received by registered person from the unregistered person.
  • Earlier Military canteens (‘Canteen Stores Department’)were not required to pay any indirect tax on purchase of goods. Now Military canteens will be required to pay GST at the time of purchase of goods and they would be entitled to refund of 50 percent of inputtax under GST.
  • Now e-commerce operators (like Ola, Uber) are required to pay GST on radio taxi services.
  • Now e-commerce operators (like MMT, Oyo rooms) are required to pay GST on services of hotel accommodation only when such hotels are not registered under GST.
  • Exemption from reverse charge has been given to registered person on purchase of second hand goods from unregistered person subject to the condition that buyer will pay GST on its subsequent sales.
  • Now builders would not be able to claim credit of unutilized input tax on supply of construction services.
  • Earlier UN and Foreign diplomatic missions were not required to pay any indirect taxes. Now they are required to pay GST and they will be entitled to claim a refund of GST subsequently.
  • GST will be be levied at rate of 5% on various goods used for petroleum operations subject to some conditions.
  • Any services provided by Panchayat will not be liable to GST.
  • GST envisages all transactions and processes to be done only through electronic mode, to achieve non-intrusive administration.  This will minimise tax payers physical interaction with the tax officials.
  • GST provides for the facility of auto-populated monthly returns and annual return.
  • It also facilitates the taxpayers by prescribing grant of refund within 60 days, and provisional release of 90% refund to exporters within 7 days. Further facilitation measures include interest payment if refund is not sanctioned in time, and refund to be directly credited to bank accounts.
  • Comprehensive transitional provisions for ensuring smooth transition of existing taxpayers to GST regime, credit for available stocks, etc.
  • Anti-profiteering provisions for protection of consumer rights.
  • Income tax department has said PAN that are not linked to Aadhaar by July 1 will not be cancelled, stepping in to calm the panic caused by a notification issued on wednesday. CBDT
  • The Centre is planning to integrate the direct and indirect taxation systems for all indirect taxpayers by linking the GST number with the permanent account number (PAN) issued by the income tax department, reports Shrimi Choudhary.
  • With the advent of GST today the Centre is now planning to integrate the direct and indirect taxation systems for all indirect taxpayers by linking the GST number with PAN.
  • No GST on Local supplies of second hand goods by unregistered person to registered who charges GST on further sale. Notification 10(CT) (Rate) dated 28.6.2017.
  • Other provisions include system of GST Compliance Rating, etc.

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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)