GSTR-2 Excel Export and Import Utility from GST

Recently, Govt. has released new GST Offline Tool utility Version 2.1 which is compatible with Excel.   It can export data in excel and have capacity to import from Excel directly.  Overview detail of the same if given below :- 

Overview

The Offline Tool version 2.1 has been designed to enable taxpayers to prepare GSTR-1 and GSTR-2 return by adding invoice and other details and by taking action on the auto-drafted counterparty submitted details in the tool in offline mode(without internet).

The Offline Tool version 2.1 supports

GSTR-1: New Invoice and Other details Addition/Deletion

Registered Business to Registered Business (B2B), Business to Consumer inter-state for amount exceeding Rs 2.5 Lakhs (B2CL), Business to Consumer less than Rs. 2.5 Lakhs (B2CS), Exports, Credit/ Debit Note (CDNR) and Credit/ Debit Note for unregistered Persons (CDNUR), Advances (AT), Advance Adjustments (ATADJ) and HSN Summary. The data for sections Nil Rated/ other Exempted/ Non GST and Documents issued has to be entered on the GST portal directly.

GSTR-2:

Missing Invoice (New and Saved) and Other details addition/Deletion

Registered Business to Registered Business (B2B), Unregistered Person to Registered Business (B2BUR), Import of Services (IMPS), Import of inputs/Capital Goods from Overseas/SEZ (IMPG), Credit/ Debit Note (CDNR) and Credit/ Debit Note for unregistered Persons (CDNUR), Advances (AT), Advance Adjustments (ATADJ), Supplies from composition taxable person and Nil supplies (Exemp), ITC reversal/reclaim (ITCR) and HSN Summary. ISD credit received will be included in GSTR 2 on the portal and will be part of preview.

Take Action (Accept, Reject, Pending and Modify) on submitted counterparty details 

Registered Business to Registered Business (B2B), Credit/ Debit Note (CDNR)

Main features of Offline Tool:

• Direct Data entry of invoice data and other details in the tool as required under various categories for selected return type into the tool.
• The tool has functionality to check duplicate records in file created for the lot.
• Taxpayer can input data of invoices using Excel Workbook (*.xlsx/xls) with separated worksheets for each section of return for inputting invoice data and import the same into the tool. Data of all sections can be imported in the tool in one go.
• Data can also be copied from the excel template in the window provided in the offline tool
• Taxpayer can also use the CSV file (Comma delimited (*.csv)) to import section wise invoice details into the tool.
• Taxpayer can download the invoice and other details from GST portal and take action on submitted counterparty invoices in the tool.
• Taxpayer can export the downloaded details from offline tool to Excel for taking the actions of Accept/Reject/Modify/Pending on auto-populated submitted invoices/debit/credit note and addition of missing invoices and auto-populated saved details.
• One of the above four actions need to be taken mandatorily on all submitted invoices otherwise GSTR 2 submission will throw an error.
• The GST portal will not permit addition of invoices which are available with submitted status in a taxpayers GSTR 2.
• Tool generates a file in JSON format, which needs to be saved for later upload on the GST Portal.
• Uploaded details can be corrected by downloading and editing or deleting the invoices. Invoices can be deleted in through bulk selection. All data of a section can also be deleted in one go.
• The file generated by tool will have to be uploaded on the GST portal. At this time internet connectivity will be required.

E-filing of your return (GSTR-1 and GSTR-2) consist of following steps:

• Generation of JSON file with invoice data and other details as per the selected return type in the offline tool.
• Upload of generated JSON file to GST Portal (www.GST.GOV.IN)
• Creation of your return summary for all data, uploaded in multiple tranches, on GST Portal and this will be an online activity.
• Verifying the summary on the Portal through preview and if correct submitting the return
• Filing the return with applicable electronic signature ( DSC/EVC)
• Important Note: If the JSON file size is more than 5MB the tool creates multiple JSON files in a ZIPPED format. The Zipped file needs to be unzipped and the multiple JSON file need to be uploaded on the portal, one at a time.

Benefit of Excel functions :- 

• Now data can save/accept/reject/pending  partially in Excel and work later.  
• Consultants can handover detailed excel file to their clients for working.
• Easy to select Accept / Reject or Pending in Excel.

Source: TDSTAXINDIA

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Last date for filing GSTR-2 & GSTR-3 for July, 2017 extended to 30th Nov. & 11th Dec., 2017

GSTR-2 and GSTR-3 for July, 17 due date extended to 30th Nov.17 and 11th Dec.17

Recently Government has extend the last date for filing of GSTR-2 and GSTR-3 for July, 2017 to 30th Nov., 2017 and 11th December 2017 respectively in order to give more time to taxpayers and businesses for filing the return

In this regard Government will be issued a notification soon - to facilitate about 30.81 lakh taxpayers for filing GSTR-2 for month of July, 2017.

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Detailed Key Features of FVU Ver. 2.152

Key Features – File Validation Utility (FVU) version 2.152

Addition of new field i.e. “Goods and Service Tax Number (GSTN)” under Batch Header (BH) of TDS/TCS statement

• GSTN no. should be 15 digit alpha-numeric value.
• In case the number is less than 15 digits FVU will populate an error message “Invalid value. Please provide valid 15 digit GSTN”
• Applicable for regular and correction (C1, C2, C3, C4 and C5) statement pertains to all forms and FYs.

State code of employer made mandatory in all correction statements (i.e. all batches of correction statement)

• All the correction statements should have employer/deductors state code under batch header (BH) field no. 26. 

This version of FVU is applicable with effect from October 07, 2017.

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Detailed Key Features of FVU Ver. 5.6

Key Features - File Validation Utility (FVU) version 5.6

Change in validations for all section codes available for Form 27EQ

• Remark “C” (i.e. for higher rate deduction) is made applicable for all sections available for Form 27EQ.
• “C” remark is only allowed when the values ‘PANAPPLIED’, ‘PANINVALID’ or ‘PANNOTAVBL’ are present in the field ‘PAN of Deductee’.
• In such case, total TCS amount has to be 5% or more of the field “Amount of receipt / debited”.
• The above referred validations are applicable for Regular and Correction statements pertaining to FY 2017-18 onwards.

Addition of new field i.e. “Goods and Service Tax Number (GSTN)” under Batch Header (BH) of TDS/TCS statement

• GSTN no. should be 15 digit alpha - numeric value.
• In case the number is less than 15 digits FVU will populate an error message “Invalid value. Please provide valid 15 digit GSTN”
• Applicable for regular and correction (C1, C2, C3, C4 and C5) statement pertains to all forms and FYs.

State code of employer made mandatory in all correction statements (i.e. all batches of correction statement)

• All the correction statements should have employer/deductors state code under batch header (BH) field no. 26.

Change in validation for section code “194J - Fees for Professional or Technical Services” for
Form 26Q:

• Remark ‘B’ is made applicable under this section which represents either no deduction or lower deduction.
• The same is applicable for regular and C3 type of correction Statement pertaining to FY 2017-18 onwards.

This version of FVU is applicable with effect from October 07, 2017.

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Last date for opting composition levy would be July 21, 2017

GST – CLARIFICATION ON MIGRATION, NEW REGISTRATION, OPTING FOR COMPENSATION SCHEME AND ISSUE OF BILLS OF SUPPLY

PRESS RELEASE, DATED 8-7-2017

The Rules related to Registration and Composition Scheme have been notified on 19th June, 2017. These Rules have been brought into effect from 22nd June, 2017. The intent of notifying these rules is to start the process of issue of registration certificate, called Goods and Services Tax Identification Number (GSTIN), to taxpayers who have already been issued provisional ID for registration(PID) as well as to the new taxpayers.

Any person who has been granted PID and who opts for composition scheme, should submit an intimation of option in a prescribed form on GSTN on or before 21st July, 2017.

Any persons who has PID may submit the required documents on GSTN for getting the certificate of registration. It is clarified that a period of three months is allowed to complete this procedure i.e. the formalities can be completed on or before 22nd September, 2017. In the interim, they can issue tax invoice using the PID already allotted to them.

A person seeking fresh registration can apply for registration within thirty days from the date on which he becomes liable for registration. They can also opt for composition scheme at the time of filing of registration form.

The applicant for grant of new registration can issue a bill of supply for supplying goods or services during the period from the date of liability to obtain registration till date of issuance of the registration certificate, if he has applied for registration within thirty days from the date he has become liable for registration. On grant of certificate of registration, he can issue revised tax invoices for the supplies made during this period.

Source: Taxmann

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Budget-2017 : Salient Features of Direct Tax Proposals in Union Budget 2017

Salient Features of Direct Tax Proposals in Union Budget 2017

The Union Budget 2017 was laid before the Parliament today by the Hon’ble Finance Minister of India. The salient features of Direct Tax proposals are summarised below:

I. Affordable Housing: 1. Three concessions in the scheme of Income Tax exemption for affordable housing:
(a) Area of 30 and 60 Sq.mtr. to be counted as carpet area and not built-up area;
(b) 30 Sq.mtr. only in 4 metropolitan city limits and 60 Sq.mtr. for the rest of the country;
(c) Completion period extended from 3 years to 5 years.

2. Tax on Notional rental income for builders to be calculated only after 1 year from the end of the year in which completion certificate is received.

3. Changes in Capital Gain taxation for immovable properties:
(a) Holding period reduce for computation of long term capital gain from three years to two years
(b) Base year for counting the cost of property shifted from 1.4.1981 to 1.4.2001 for all classes of assets including immovable property.

4. Basket of financial instrument in which capital gain can be invested without payment of tax to be expanded.

5. For joint development agreement, the liability to pay capital gain tax will arise in the year in which project is completed.

6. For Andhra Pradesh capital, land belonging to owners as on 2.6.2014 to be exempted from capital gain if the same is offered under land-pooling mechanism.

II. Measures for stimulating growth: 1. Concessional withholding rate of 5 per cent. for interest received by foreign entities on loans given in India to be continued for another 3 years beyond 30.6.2017.
2. Start-ups to get two relaxations under the scheme of Income Tax holiday given last year.
(a) The condition of continuous holding of 51 per cent. voting rights to be relaxed as long as the original investment of promoter is not diluted.
(b) Exemption available for three years out of any 7 years from the date of establishment instead of 3 out of 5 years

3. The period of carry forward of MAT/AMT credit increased from 10 years to 15 years.

4. The corporate income tax to be reduced from 30% to 25% for companies with turnover upto Rs.50 crore in 2015-16. This will benefit 96% of existing 6.67 lakh companies. This will result into tax saving of 16.67% for these companies.

5. Deduction for provision for NPA of Banks to be increased from to 8.5% instead of 7.5% of profit.
6. In case of NPA of non-scheduled cooperative banks, interest to be recognised as income only when received.

III Promoting Digital Economy:
1. In the presumptive income tax for small traders, income to be taken as 6% of turnover which is received by digital or banking means.
2. Cash expenditure allowable to be reduced to Rs.10,000 from the existing Rs.20,000.
3. Cash transaction of above Rs.3 lakh not to be permitted. The penalty of equal amount to be levied in case of breach.

IV Transparency in Electoral Funding:
1. The cash donation to political parties from one person limited to Rs.2,000/-.
2. Electoral Bond to be introduced for facilitating donation to political parties from explained sources.
3. Political parties to file their return in time limit prescribed in the Income Tax Act.

V. Ease of Doing Business:
1. Domestic transfer pricing to be applied only if one of the two companies enjoys specified profit-linked deduction.
2. The audit limit for business entities opting for presumptive scheme to be increased from Rs.1 crore to Rs.2 crore.
3. Individuals and HUFs not required to keep books of accounts if their turnover is up to Rs.25 lakhs or income is upto Rs.2.5 lakhs.
4. Investment in Category 1 and 2 foreign portfolio investors registered with SEBI to be exempted from provisions of indirect transfer.
5. TDS of 5% not to be deducted for individual insurance agents if they certify their income to be below taxable limit.

6. Professionals in presumptive scheme to pay advance tax only in one instalment in March instead of four.

7. The time limit for revising a tax return reduced to 12 months. Also time limit for completion of scrutiny will be brought down to 12 months from Assessment Year 2019-20 onwards.

VI Personal Income Tax:
1. Personal income tax for people with income in the slab of 2.5 lakh to 5 lakh to be reduced to 5% instead of 10%. This will reduce their tax liability to half while all other tax payers above this slab will also be benefited in terms of lesser tax of Rs.12,500 per individual (revenue loss ofRs.15,500 crores).
2. Surcharge of 10% to be levied on individuals with income between Rs.50 lakhs to Rs.1 crore (revenue gain of Rs.2,700 crore).

VII. Miscellaneous:
1. TCS exemption for state transport corporation in respect of purchase of vehicles.
2. Income of Chief Minister’s relief fund exempt from tax.
3. Penalty on accountant, registered valuer and merchant banker for furnishing incorrect information.
4. In order to ensure timely filing of return and expeditious issue of refund, a fee shall be levied for delay in filing of return.

Source: PIB News

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GST Enrollment Guide Excise and Service Tax releases - CBEC

As you are aware, the draft Model GST Laws and Rules have been placed in the public domain and CBEC is making all efforts for smooth implementation of GST by 1st April, 2017.  One of the priority tasks in this regard is the migration of existing CENTRAL EXCISE/SERVICE TAX Assessees to GST.

As per Sec.166 of the draft CGST Act read with relevant rules, every Central Excise/Service Tax assessee having a valid PAN shall be granted registration under GST regime on a provisional basis.  For such  assessees, GSTN shall generate provisional IDs and communicate the same to the assessees through CBEC for migration to the GST regime.  The Directorate General of Systems, CBEC has made necessary arrangement of communicating the provisional IDs along with passwords to the respective assessees in a secured manner through the ACES portal (www.aces.gov.in).  The entire procedure is described in the Guidance note to Departmental Officers at Annexure A to this letter.

Awareness companions/outreach programmes such as seminars and workshops may be arranged for taxpayers to facilitate this exercise.  Details, including photographs, of such seminars/workshops may be uploaded in the CBEC's INTRANET PORTAL-ANTARANG (https://antarang.icegate.gov.in) by the Zonal Chief Commissioners on a daily basis.  A separate TAB (titled: MIGRATION TO GST) is being created in ANTARANG to enable Chief Commissioners to upload the details of Seminars/Workshops.  Nodal Officers may be appointed at the Zonal/Commissionerate/Divisional level to assist the assessees in the migration process.  A communication to taxpayers is also enclosed (Annexure B) which may be shared to them at your level.
 

I would urge that you bestow your personal attention on this very important task and suitably guide the jurisdictional assessees to migrate to GST well in time.  Your personal involvement and monitoring would enable seamless migration of existing Central Excise/Service Tax Assessees to GST by the end of January, 2017.

Click Here for Details

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Latest e-Hand Book on Revised GST Law - CA Pritam Mahure.

The Central Government is targeting to implementation the new indirect tax system w.e.f. April 1st, 2017, its called GST.

"The revised drafts of the Model GST Law, iGST Law, GST Compensation Law have been uploaded on our website (Central Board of Excise and Customs). These laws will be considered by the GST Council on December 2-3 and finalized,"

The revised drafts of three Goods and Service Tax laws have been released after incorporating suggestions from stakeholders, the government said on Saturday. These will now be placed before the Goods and Services Tax Council in its next meeting on December 2 and 3.

Revised GST law containing :

• Revised Model CGST /SGST Law
• Revised IGST Law
• GST Compensation Cess Law
• GST Rules for registration, payment, return, refund and invoices.

To Download Latest Free e-Handbook on Revised GST Law Click Here

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GST Bill, 2016 with Constitutional Amendment cleared in Rajya Sabha

On Aug 3, 2016, Rajya Sabha discussed amendments to Constitution Bill for Goods and Service Tax i.e. Constitutional (One Hundred and First Amendment) Bill, 2016 and finally the most crucial bill passed in Rajya Sabha.GST will be introduced in the country after a long journey of 13 years as it was first discussed in the Kelkar Task Force report on indirect taxes in 2003.

This amendment bill was cleared since Government agreed to drop 1% additional tax and gave assurance that it will compensate States for any revenue loss incurred due to GST rollout. There will be a huge impact of GST on common man. Goods like Small Cars, Two wheeler, Movie Tickets, Electronic Items, etc., will be cheaper. But Air Travel, Insurance, Textile, Jewellery, Mobile Calls, Cigarettes will be costlier.

Click here to read CONSTITUTION (ONE HUNDRED AND FIRST AMENDMENT) BILL, 2016
Click here to read Relevant Amended PROVISIONS OF CONSTITUTION OF INDIA

Source: TAXMANN

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Goods & Service Tax (GST) – Key Features

In continuance of our earlier series titled GST Knowledge Series# 1, Understanding the Mechanics of Goods & Service Tax, we have discussed the basic DNA of Goods & Service Tax popularly known as GST. These features as applicable to India were:

1. DUAL GOODS AND SERVICE TAX

2. APPLICABILITY OF GST TO ALL TRANSACTIONS

3. DESTINATION BASED MULTI POINT LEVY

4. COMPUTATION OF GST ON THE BASIS OF INVOICE CREDIT METHOD

5. PAYMENT OF GST

6. UNIFORM PROCEDURE FOR COLLECTION OF GST

In this Article, we will take the discussion forward and discuss in detail about other Salient Features of GST.

1. THRESHOLD LIMIT

The present threshold limits prescribed in different State VAT Acts below which VAT is not applicable varies from State to State. A uniform State GST threshold across States is desirable and, therefore, it is considered that a threshold of gross annual turnover of Rs.10 lakh both for goods and services for all the States and Union Territories may be adopted with adequate compensation for the States.The issue is still debated and there is no consensus till date.

2. COMPOSITION SCHEME UNDER GST

The States are also of the view that Composition/ Compounding Scheme for the purpose of GST should have an upper ceiling on gross annual turnover and a floor tax rate with respect to gross annual turnover. The first discussion paper suggests that there would be a compounding cut­off at Rs. 50 lakh of gross annual turnover and a floor rate of 0.5% across the States. The scheme would also allow option for GST registration for dealers with turnover below the compounding cut­off. In reference to Composition scheme, the task force has recommended rate of 1% each on account of CGST and SGST for dealers with the turnover between Rs 10 lacs to Rs 40 lacs.

3. REGISTRATION & TAX PAYER IDENTIFICATION NUMBER

All the taxable entities with turnover above the threshold limit will be required to register and obtain GST registration number. The taxable entities with lower turnover will also have the option to register. As per First Discussion paper, each taxpayer would be allotted a PAN­linked taxpayer identification number with a total of 13/15 digits. This would bring the GST PAN­linked system in line with the prevailing PAN­based system for Income tax, facilitating data exchange and taxpayer compliance. There will be single GST registration number for all branches in a State.  Therefore, a dealer having branches across States will have as many GST registration numbers as the number of States in which he operates.

4. INPUT TAX CREDIT (ITC) SET OFF

Since the Central GST and State GST are to be treated separately, taxes paid against the Central GST shall be allowed to be taken as input tax credit (ITC) for the Central GST and could be utilized only against the payment of Central GST. The same principle will be applicable for the State GST. Further, the rules for taking and utilization of credit for the Central GST and the State GST would be aligned.

5. CROSS UTILIZATION OF ITC

Cross utilization of ITC between the Central GST and the State GST would not be allowed except in the case of interState supply of goods and services under the integrated goods and service tax (IGST) model.

6. CREDIT ACCUMULATION ON ACCOUNT OF REFUND

Ideally, the problem related to credit accumulation on account of refund of GST should be avoided by both the Centre and the States except in the cases such as exports, purchase of capital goods, input tax at higher rate than output tax etc. where, again refund/adjustment should be completed in a time bound manner.

7. ZERO RATING OF EXPORTS

The first discussion paper has suggested that the exports would be zero­rated. Similar benefits may be given to Special Economic Zones (SEZs). However, such benefits will only be allowed to the processing zones of the SEZs. No benefit to the sales from an SEZ to Domestic Tariff Area (DTA) will be allowed.

8. GST ON IMPORTS

Imports will be brought under the scope of GST with necessary Constitutional Amendments. They will treated at par with inter­state transactions and Integrated goods and service tax (IGST) will be levied on imports. The incidence of tax will follow the destination principle and the tax revenue will accrue to the State where the imported goods and services are consumed. Full and complete set­off will be available on the IGST paid on import on goods and services.

9. SPECIAL INDUSTRIAL AREA SCHEME

After the introduction of GST, the tax exemptions, remissions etc. related to industrial incentives should be converted, if at all needed, into cash refund schemes after collection of tax, so that the GST scheme on the basis of a continuous chain of set­offs is not disturbed.

10. MAINTENANCE OF RECORDS

A taxpayer or exporter would have to maintain separate details in books of account for availment, utilization or refund of Input Tax credit of CGST, SGST and IGST.

11. PERIODICAL RETURNS

The taxpayer would need to submit periodical returns, in common format as far as possible, to both the Central GST authority and to the concerned State GST authorities.

12. ADMINISTRATION OF GST

The administration of the Central GST to the Centre and for State GST to the States would be given. As per the recommendation of Task force report on GST, The Central Board of Excise and Customs(CBEC) shall be responsible for implementation of CGST and state tax administrations will be separately responsible for implementation for SGST.

13. ASSESSMENT

Keeping in mind the need of tax payer's convenience, functions such as assessment, enforcement, scrutiny and audit would be undertaken by the authority which is collecting the tax, with information sharing between the Centre and the States. The various tax administrative functions such as assessment, enforcement, scrutiny and audit should be undertaken by the CBEC in respect of the CGST and by the State tax administration in respect of the SGST. All procedures under CGST and SGST should be uniform. The Central Government will be responsible for establishing a taxpayers information network (TINXYS) keeping in view the information requirement of CBEC and the State tax administration. The TIN will be shared between the Centre and the States. The information furnished through periodical returns shall be stored in a common database with access to both the CBEC and the State tax administrations.Since the tax base will be common, there should be a common appellate authority. Similarly, the Authority for Advance Ruling will also be common. No authority should have any power to make preventive detention for the purposes of CGST and SGST.

14. GOODS AND SERVICE TAX COUNCIL

As per the Constitution Amendment Bill, 2014 (‘Bill’), there will be a Goods and Service Tax Council who shall make recommendation to the Union and the States. The Bill provides that the administration of GST would be the responsibility of the GST Council which would then become the apex indirect tax policy making body of the country.  This GST Council would be formed by the Central and State level ministers in charge of the finance portfolio.

Source: CA Club India

Read Other post by CA. Chitresh Gupta

B. Com(H), FCA, IFRS (Certified), IDT (Certified)

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