Archives November 2020

FAQ – To Opt Composition Scheme (Explained under GST)

FAQ – To Opt Composition Scheme (Explained under GST)

1. How to opt for the Composition Scheme in GST?

You can opt for the Composition Levy under GST if you are a regular taxpayer with an aggregate annual domestic PAN-based turnover as specified from time to time.

However, you cannot opt for the Composition Levy if you are/you make:

– any supply of goods which are not liable to be taxed under this Act

– inter-state outward supplies of goods

– supplies through electronic commerce operators who are required to collect tax under section 52.

– a manufacturer of notified goods

– a casual dealer

– a Non-Resident Foreign Taxpayer

– a person registered as Input Service Distributor (ISD)

– a person registered as TDS Deductor/Tax Collector

2. How do I apply for Composition Scheme if I am already registered as a regular taxpayer?

To opt for the Composition Levy, perform the following steps on the GST portal:

  1. Log in to the Taxpayers’ Interface
  2. Go to Services > Registration > Application to Opt for Composition Levy
  3. Fill the form as per the form specification rules and submit

3. How do I convert from regular to composition scheme in GST?

Any taxpayer who is registered as normal tax payer under GST needs to file an application to opt for Composition Levy in Form GST-CMP-02 at GST Portal prior to the commencement of financial year for which the option to pay tax under the aforesaid section is exercised.

4. When can I opt for the Composition Levy?

In order to avail this scheme, you need to file an online application to Opt for Composition Levy with the tax authorities. Taxpayers who can opt for this scheme can be categorized as below:

 

  1. New Taxpayers: Any person who becomes liable to register under GST Act, after the appointed day, needs to file his option to pay composition amount in the Application for New Registration in Form GST REG-01.

 

  1. Existing Taxpayers: Any taxpayer who is registered as normal tax payer under GST needs to file an application to opt for Composition Levy in Form GST-CMP-02 at GST Portal prior to the commencement of financial year for which the option to pay tax under the aforesaid section is exercised.

5. I am a registered taxpayer availing the composition scheme under GST Portal. Do I need to file fresh application to opt for composition scheme?

For those taxpayers, who are already availing the composition scheme, there is no requirement to file fresh application opting for composition scheme, subject to compliance of relevant conditions/restrictions in this regard.

6. Is it mandatory to file a Stock Intimation? How do I file a Stock Intimation?

Yes, it is mandatory to file a Stock Intimation.

 

In addition to filing the application to opt for Composition Levy, you would also require to file a Stock Intimation to furnish the details of stock including inward supply of goods from unregistered persons, held by you on the day preceding the date from which you opt to pay the composition amount. You are required to file Stock Intimation details within 30 days of the date from which Composition Levy is sought.

 

The application to opt for Composition Levy is not subject to approval by the tax authorities. On filing of the application, you are marked as a composition taxpayer in the system and consequential changes are made in the system. However, in case it is found that you were not eligible for the Composition Levy or have not filed Stock Intimation, you would be compulsorily pushed out of the Composition Levy by initiating appropriate proceedings.

 

Stock Intimation filed by you is not subject to processing by State & Centre Tax Authorities. However, in case it is found out by the tax authorities that the particulars of stock and ITC reversal furnished in the Stock Intimation are incorrect, the tax authorities can initiate appropriate demand proceedings from back office against you.

7. Can I save the Application to Opt for Composition Levy?

Yes, the application can be saved for up to 15 days from the date of initiation after which it will be purged by the system.

Saved applications can be accessed using the My Saved Applications functionality available in the Taxpayers’ Interface.

8. Can I opt for Composition Levy, if I have dealt in services?

Yes, you can opt for Composition Levy, even if you have dealt in services, from FY 2019-20 onwards.

9. I have dealt in services from 1st April 2019 to 31st July 2019 and have filed application to Opt for Composition Levy. My application has been rejected. Why?

If you have filed Form GSTR-1 or Form GSTR-3B for April/ May/ June 2019 against any GSTIN registered on your PAN across India for FY 2019-20, your application to Opt for Composition Levy will be rejected.

10. What are the returns to be filed by a Composition taxpayer?

Composition taxpayer needs to pay tax and furnish a statement, every quarter or part thereof, as the case may be, in FORM GST CMP-08.

And further he has to furnish a return for every financial year or part thereof, as the case may be, in FORM GSTR-4.

NOTE: For current applicable timelines, refer to Important Dates section on https://www.gst.gov.in/

Online filing of application (Form GST EWB 05) by the taxpayer for un-blocking of E-Way Bill (EWB) generation facility

Online filing of application (Form GST EWB 05) by the taxpayer for un-blocking of E-Way Bill (EWB) generation facility

28/11/2020

    1. In terms of Rule 138E (a) and (b) of the CGST Rules, 2017, the E-Way Bill (EWB) generation facility of a taxpayer is to be blocked, in case the taxpayer fails to file their returns in Form GSTR-3B or Statement in Form CMP-08, for two or more consecutive tax periods. For unblocking of this facility, taxpayer need to apply to jurisdictional Tax Official in Form GST EWB 05.
    1. A facility has now been provided to the taxpayers on the GST Portal, from 28th November, 2020 onwards, to file an application online for unblocking of their EWB generation facility (in Form EWB-05), in case their EWB generation facility has been blocked on the EWB Portal.

      Note: So far taxpayers were applying to tax officials vide manual application, for unblocking of their EWB generation facility and tax officials were issuing orders online on GST Portal, in Form GST EWB 06. Now this facility is being discontinued.

    1. To file an online application for unblocking EWB generation facility on GST Portal, a taxpayer need to:
      1. Login to the portal and navigate to Services> User services> My Applications
      2. Select application type as “Application for unblocking of E-way bill” and click New Application
      3. Submit application in Form EWB-05, with upload of up to 04 documents
    2. The application so filed is populated to dashboard of jurisdictional tax official. The tax official can issue a Notice for personal hearing to the taxpayer. Then the taxpayer can file their reply to the notice online, along with supporting documents.
    1. At conclusion of the proceedings, the Tax Officer can issue an order (in Form EWB-06) approving the taxpayer application for unblocking the EWB generation facility. After which their EWB generation facility will be restored for the duration specified in the order.
    1. If the Tax Officer rejects the taxpayer’s application vide order in Form EWB-06, the EWB generation facility will remain blocked and the taxpayer shall be required to file their pending returns (in Form GSTR-3B / Statement in FORM CMP-08, so as to reduce the pendency to less than two tax periods), for restoration of the EWB generation facility.
    1. Notice(s)/ Order issued by Tax Officer will be sent via SMS and mail to taxpayer and will be made available on the taxpayer dashboard (Services > User Services > View Additional Notices/Orders option).
    1. Click here for details – https://tutorial.gst.gov.in/userguide/returns/index.htm#t=Manual_ewaybill.htm

Thanking you,

Session for taxpayers on e-invoicing and IRN generation

Session for taxpayers on e-invoicing and IRN generation

24/11/2020

From 1-1-2021, Government has mandated e-invoicing for the taxpayers with aggregate turnover exceeding Rs. 100 Cr. (in any preceding financial year from 2017-18 onwards). For more details, please CLICK HERE.

In this regard, GSTN is holding a webinar as below. The taxpayers are requested to join the session and get benefit out of the same.

Webinar on e-invoicing for Taxpayers
Day/ Date of Webinar: Friday, 27th November, 2020
Time of Training: 1130 Hrs to 1330 Hrs
Topic of Training: Session for taxpayers on e-invoicing and IRN generation
Speakers: Resource Persons from GSTN & NIC
Language: English
Link for joining the training: https://gstnw.webex.com/meet/it.support
If unable to join on above link, please watch the session on YouTube at: https://youtu.be/oCdckD7ePbA

Thanking You,

Register / Update Digital Signature Certificate Failed Problem Solution

Register / Update Digital Signature Certificate Failed Problem Solution

DSC Usage Steps:

  • Run the emsigner as Administrator.
  • open the portal,fill the appropriate Details go to till Update Register DSC
  • Open a separate tab in same browser and type https://127.0.0.1:1585
  • Click on Advanced
  • Click proceed to 127.0.0.1(unsafe)
  • Come back to GST portal, refresh the page
  • Click on register DSC
INCOME TAX UPDATE Instruction sheets for filling of ITR-2,3,5,6 & 7 revised for better clarity

INCOME TAX UPDATE

Instruction sheets for filling of ITR-2,3,5,6 & 7 revised for better clarity Click here to download

Salient features of Quarterly Return filing & Monthly Payment of Taxes (QRMP) Scheme

Salient features of Quarterly Return filing & Monthly Payment of Taxes (QRMP) Scheme

20/11/2020

    1. Who can opt for the scheme: Following registered person (hereinafter RP) can file quarterly returns and pay tax on monthly basis w.e.f. 01.01.2021 :
      • An RP who is required to file Form GSTR 3B with AATO of up to Rs 5 Cr. in the previous financial year is eligible. If AATO crosses Rs 5 Cr. during a qtr., RP will become in-eligible for the Scheme from next quarter.
      • Any person obtaining a new registration or opting out of Composition Scheme can also opt for this Scheme.
      • The option to avail this Scheme can be availed GSTIN wise. Therefore, few GSTINs for that PAN can opt for the Scheme and remaining GSTINs can remain out of the Scheme.
    1. Changes on the GST Portal: For qtr. Jan., 2021 to March, 2021, all RPs whose AATO for the FY 2019-20 is up to Rs 5 Cr. and have furnished the return in Form GSTR-3B for the month of October, 2020 by 30th 2020, will be migrated by default in the GST system as follows:
Sl. No. Class of RPs with AATO of Default Return Option
1 Up to Rs 1.5 Cr., who have furnished Form GSTR-1 on quarterly basis in current FY Qtrly
2 Up to Rs 1.5 Cr., who have furnished Form GSTR-1 on monthly basis in current FY Monthly
3 More than Rs 1.5 Cr. and up to Rs 5 Cr. in preceding FY Qtrly
    1. When can a person opt for the scheme:
      • Facility can be availed throughout the year, in any quarter.
      • Option for QRMP Scheme, once exercised, will continue till RP revises the option or his AATO exceeds Rs 5 Cr.
      • RPs migrated by default can choose to remain out of the scheme by exercising their option from 5th, 2020 till 31st Jan., 2021.
    1. The RPs opting for the scheme can avail the facility of Invoice Furnishing Facility (IFF), so that the outward supplies to registered person is reflected in their Form GSTR 2A & 2B.
    1. Payment of tax under the scheme:
      • RPs need to pay tax due in each of first two months (by 25th of next month) in the Qtr, by selecting “Monthly payment for quarterly taxpayer” as reason for generating Challan.
      • RPs can either use Fixed Sum Method (pre-filled challan) or Self-Assessment Method (actual tax due), for monthly payment of tax for first two months, after adjusting ITC.
      • No deposit is required for the month, if there is nil tax liability.
      • Tax deposited for first 02 months can be used for adjusting liability for the qtr. in Form GSTR-3B and can’t be used for any other purpose till the filing of return for the qtr.
  1. Click here for details of Notification and CBIC Circular.

 

Thanking you

GST Updates on e-invoicing

GST Updates on e-invoicing

17/11/2020

From 1-1-2021, Government has mandated e-invoicing for the taxpayers with aggregate turnover exceeding Rs. 100 Cr. (in any preceding financial year from 2017-18 onwards).
To view the updates on e-invoice – enablement, testing, help options & resources, please CLICK HERE.

Update on Blocking of E-Way Bill (EWB) generation facility, after 1st December, 2020

Update on Blocking of E-Way Bill (EWB) generation facility, after 1st December, 2020

16/11/2020

  1. In terms of Rule 138E (a) and (b) of the CGST Rules, 2017, the E-Way Bill (EWB) generation facility of a taxpayer is liable to be restricted, in case the taxpayer fails to file their FORM GSTR-3B returns / Statement in FORM GST CMP-08, for tax periods of two or more.
  2. From 1st December, 2020, onwards, the blocking of EWB generation facility would be made applicable to all the taxpayers (irrespective of their Aggregate Annual Turnover (AATO)) In terms of Rule 138 E (a) and (b) of the CGST Rules, 2017, on the EWB Portal.
  3. Thus, on 1st December 2020, the System will check the status of returns filed in Form GSTR-3B or the statements filed in Form GST CMP-08, for the class of taxpayers to whom it applies, and restrict the generation of EWB in case of:
    • Non filing of two or more returns in Form GSTR-3B for the months up to October, 2020; and
    • Non filing of 02 or more statements in Form GST CMP-08 for the quarters up to July to September, 2020
  1. This blocking will take place periodically from 1st December’ 2020 onwards.
  2. To avail continuous EWB generation facility on EWB Portal, you are therefore advised to file your pending GSTR 3B returns/GST CMP-08 statements immediately.
  3. For details of blocking and unblocking EWB Click on below links

 

Note: Please ignore this update if you are not registered on the EWB portal.

Thanking you,

Auto-population of e-invoice details into GSTR-1

13/11/2020

    1. Certain notified taxpayers have to prepare and issue their invoices by obtaining Invoice Reference Number (IRN) from Invoice Registration Portal (IRP) (commonly referred as ‘e-invoices’).
    1. Upon successful generation of IRN, details of such e-invoices will be auto-populated in respective tables of GSTR-1. The details of e-invoices available for auto-population along with status of auto-population can also be downloaded as excel file.
    1. To effect this, certain tabs/labels are being added on GSTR-1 dashboard and screens. (Those taxpayers for whom e-invoicing is not applicable may ignore these changes.)
    1. For the period of October, 2020, the e-invoice details would be processed incrementally from 13th November, 2020. The processing of details of e-invoices/IRNs generated till 31st October, 2020 is expected to take upto 10 days.
    1. The processing of documents, dated in October, 2020, has no effect on filing of GSTR-1 for October. The taxpayers are advised not to wait for auto-population but file GSTR-1 for October, on their own (if not filed already). However, there is an option to download the details of October-dated documents through excel file:‘Download details from e-invoice (Excel)’ button (available at the bottom portion of GSTR-1 dashboard).
    1. Taxpayers are requested to verify the documents present in the excel and may share feedback on GST Self Service Portal , on below aspects:
      1. All documents reported to IRP are present in excel
      2. Status of each e-invoice/IRN is correct
      3. All the details of document are populated correctly
    2. For the period of November, 2020, the e-invoices generated (i.e. the documents dated in the Month of November) will be auto-populated into GSTR-1 in incremental manner and the process for whole month will be completed by 2nd Dec, 20 (i.e. on T+2 basis).
  1. The detailed advisory with methodology of auto-population etc. is made available on the GSTR-1 dashboard (‘e-invoice advisory’) and also e-mailed to relevant taxpayers.
Due dates for filing of Form GSTR-3B for the Tax Periods from October, 2020 till March, 202

Due dates for filing of Form GSTR-3B for the Tax Periods from October, 2020 till March, 2021

12/11/2020

    1. Government of India, Ministry of Finance (Department of Revenue), CBIC, vide Notification No. 82/2020 – Central Tax, dated 11th Nov., 2020, has added sub rule (6) to Rule 61 of the Central Goods and Services Tax Rules, 2017, to provide for staggered filing of Form GSTR-3B, for the tax periods from October, 2020 till March, 2021. The details are as under:
Sl. No Taxpayers with aggregate turnover (PAN based) in the previous financial year And Taxpayers having principal place of business in the State/ UT of Due date of filing of Form GSTR 3B, from October, 2020 till March, 2021
1 More than Rs. 5 Crore All States and UTs 20th day of the following month
2 Up to Rs. 5 Crore States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana and Andhra Pradesh , the Union territories of Daman and Diu, Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep 22nd day of the following month
3 Up to Rs. 5 Crore States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand and Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi 24th day of the following month
  1. This is for information and necessary action please.

Thanking you,