Chief Editor CA Manoj Jain
For the canvas called life, we wish you colours of happiness, joy, love and success. Team IRIS wishes you a very happy Holi!
In this issue, we’ll be covering the highlights of implementation of new simplified forms effective 1april, the penal provisions on non-generation of EWB, new feature released in IRIS Sapphire and, GST updates effective April1, 2019. In addition to these, the newsletter also covers Nil returns in GSTR 9, Tax Scams around the nation and upcoming due dates for the month of March.
Team IRIS GST
Nil GSTR9 Return Filing: Do You Need to Do That?
A registered person under GST is required to file his/her return, irrespective of business turnover or profitability
Hence, even if there were no invoices issued by or to the given business throughout the year, the taxpayer will have to log in to the GSTN portal and submit a NIL return
A registered taxpayer can file NIL return if the following conditions are met for the given fiscal year:
- The business made no Inward (Purchase) or Outward supplies (Sale);
- The taxpayer has no Liability (of any kind);
- No Credit was claimed by the taxpayer;
- No Demand to create order was received;
- The taxpayer claimed no Refund
Failure to file Nil returns before the given due date is liable to be penalized with Rs 100/day until the filing is complete
Before filing nil GSTR 9 return, it is mandatory to file nil GSTR1 and GSTR 3B of all the months of the FY.
Tax Scams Around the Nation
- Mumbai: 40-year-old accused allegedly issued fake invoice of more than ?650 crore and availed input tax credit of ?110 crore, without the actual supply of goods
- CHENNAI: The GST commissionerate in Chennai has arrested the accused for claiming input tax to the tune of Rs 265 crore using fake invoices.
- Chattisgarh: (DGGSTI) has unearthed a fraud worth a whopping Rs 1,000 crore in the state.
- Hyderabad: Officials have unearthed an alleged tax fraud of Rs 224 crore by a group of eight companies, which generated fake invoices worth Rs 1,289 crore
Here is what you can do.
- Download IRIS Peridot
- Scan Invoices (GSTINs)
- Report Non-Compliance
- Make India a tax free nation
Click on the icon below to download IRIS Peridot today
Upcoming Due Dates
GSTR 3B – 20th March
GSTR 5 – 20th March
GSTR 5A – 20th March
Extended Due Dates
GSTR 1 – before 31th march (for period from July 2017 to March 2018)
GSTR 3B – before 31th march (for period from July 2017 to March 2018)
GSTR 4 – before 31th march (for period from July 2017 to March 2018)
ITC-04 -31th March (Quarterly returns for July 2017 to December 2018)
TRAN-1 – 31th March (extended for certain taxpayers who could not complete filing due to tech glitch)
New Simplified Tax Forms Under GST
The GST council announced the implementation of new simplified forms on a pilot basis from April 1, 2019. The same shall be made mandatory from July 1, 2019. Businesses with an annual turnover up to Rs.5 crores shall be able to choose between 3 types of simplified returns,
- Sahaj ( for B2B outward supplies)
- Sugam ( for both B2B and B2C outward supplies)
- Quarterly return
- Periodicity of filing return will be deemed to be monthly for all taxpayers unless quarterly filing of the return is opted for.
- For newly registered taxpayers, turnover will be considered as zero and hence they will have the option to file monthly – Sahaj/Sugam or Quarterly (Normal) return.
- Change in periodicity of the return filing (from quarterly to monthly and vice versa) would be allowed only once at the time of filing the first return by a taxpayer.
- The taxpayers may make nil rated, exempted or Non-GST supplies, which need not be declared in the said return.
What are the advantages of these Simplified return forms?
- The taxpayer shall be able to upload invoices to the GST Portal 24×7.
- Recipient would be able to accept or reject invoice on a real-time basis.
- Filing of Nil returns can be done via SMS
- Recipient will get credit during a tax period on the basis of the details of documents uploaded by the supplier up to the 10th of the month following the month for which the return is being filed for. There may be following two scenarios:
- For returns filed on monthly basis, say, for the month of January 2019 on 20 February 2019, recipient shall be eligible to take credit in his return based on the documents uploaded by the supplier up to the 10th of February, 2019.
- For returns filed on quarterly basis (Normal, Sahaj or Sugam), say for the quarter January – March, 2019 on 25th April, 2019, recipient shall be eligible to take credit in his return based on the documents uploaded by the supplier up to the 10th of April, 2019.
Penalties and Confiscation for Non Generation of EWB
The basic premise of generating EWay Bill for inter-state and intra-state transportation of Goods is to eliminate the chances of tax evasion. The Eway bill lowers the chances of bribery and corruption and ensures smoother and efficient transition of goods across the nation.
However, many a times, businesses either fail to generate EWB or do it in a wrongful manner which attracts penal action as given below:
The authorized personnel can penalize a registered person or the consigner with a fine of Rs. 10,000 or the amount of the tax being evaded, (whichever is greater) if the person was caught
- Transporting any taxable goods without the cover of prescribed documents;
- Tampering or destroying any material evidence or document;
- Disposing off or tampering with any goods that have been detained, seized, or attached.
Detention and Seizure
The authorized officer, upon the observance of any discrepancy in the E-way bill or the absence of a valid E-way bill, has the rights to detain the vehicle and seize the goods.
The goods can be released upon the payment of appropriate taxes and penalties, which can be accomplished in the below given ways:
- Owner Accepts Ownership and pays the applicable tax and penalty equal to 100% of the tax payable or an amount equal to 2% of the value of exempted goods or Rs 25000, whichever is less.
- If the Owner is unidentified, the consignor has to pay the applicable tax and penalty equal to the 50% of the value of the goods reduced by the tax amount paid thereon. While an amount equal to 5% of the value of exempted goods or Rs 25000, whichever is less
If the registered person or the transporter fails to pay the implied penalty within 7 days, the authorised personnel can seize goods and/or the vehicle, and begin legal proceedings for the same. Upon confiscation of the goods, the ownership of the seized goods will be transferred to the central government, which on 3 months of confiscation can be auctioned by the authorised personnel and give the proceeds to the central government.
What you can do?
In the event of confiscation, the officer adjudging the confiscation shall give an option to the owner of the goods to pay in lieu of confiscation, such fine as the said officer thinks fit. However, the fine levied shall not exceed the market value of the goods confiscated nor below the penalty levied. Under the provisions of Detention and Seizure.
But as they say, “Prevention is better than cure”, we recommend timely generation of EWay bills to avoid future penalties and fines.
IRIS Sapphire: Auto Drafted GSTR 9
IRIS Sapphire has been incorporated with an Auto Drafting feature for the annual return Form GSTR 9. The Auto-draft feature autopopulates form GSTR 9 from the details filed by the user in his/her form GSTR 1 and GSTR 3B and account ledgers. With the Auto-Draft feature, IRIS Sapphire will be able to calculate the following columns in form GSTR 9:
Table 4 – From GSTR 1 and GSTR 3B;
Table 5 – From GSTR 1;
Table 9 – From GSTR 3B;
Table 6 (Partially) – 6A and 6G from GSTR 3B, 6K, 6L, 6M from ledgers
To get auto-drafted data,
- Access the dashboard at GSTIN level;
- Choose GSTR 9 from Returns tab;
- Bulk get GSTR 1 and GSTR 3B data
- Get auto-drafted data (from IRIS or GSTN as preferred by the user)
Points to remember
- The user is required to fetch GSTR 1 and 3B data before auto drafting.
- The user can auto-draft data from both IRIS portal and GSTN portal.
- The auto-draft facility is available at GSTN level only.
ITC -04 Enhancements
- Form ITC – 04 support in IRIS Sapphire has been optimized for better efficiency.
- Resolved- minor bugs while managing/saving invoices.
- Utilities – HSN Search by code and description.
- Faster Dashboard loading for complex company hierarchy
- Advance reconciliation rule related filter
IRIS Sapphire is an application built with a highly scalable, available and secure architecture that will help you to file with GST. With built-in analytics and dashboards, IRIS Sapphire will ensure that you stay compliant, while always having a pulse on the process. Book your free demo
GST Update Effective April 1, 2019
CBIC has recently announced many updates to the existing GST rules in various meetings and through notifications. These are going to be in effect within 15 days (from April 1, 2019). We have brought a compilation of all the updates for our users:
GST Registration Exemption: W.e.f. April 1, 2019, any person who is engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed forty lakh rupees is exempt from obtaining the registration under GST Act
Due Date of filing GSTR-1: The due date for filing GSTR 1 has been notified as follows:
- Quarterly returns (April 19’ to June 19’) – July 31, 2019.
- Monthly returns – 11th day of the succeeding month.
Due date of filing GSTR-3B: The due date to file GSTR 3B for all the registered person is notified as 20th day of the succeeding month.
Threshold limit of composition scheme: The threshold limit of composition scheme has been increased as follows:
- 75 lacs – For a taxable person located in Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand.
1.50 crores – for a taxable person located in states other than above state.
New composition scheme for SME and MSME: First supplies of goods or services or both up to an aggregate turnover of fifty lakh rupees made on or after the 1st day of April in any financial year, by a registered person.
Sales Promotions Schemes: Following clarification has been issued w.r.t. doubts related to treatment of sales promotion scheme under GST:
Nature of supply of Priority Sector Lending Certificates (PSLC): GST on PSLCs for the period 1.7.2017 to 27.05.2018 will be paid by the seller bank on forward charge basis and GST rate of 12% will be applicable on the supply
TCS Exclusion to compute GST liability: TCS amount would be excluded from the value of goods for computing GST liability.
|Free Samples and Gifts given to other than distinct entity and related person: TCS amount would be excluded from the value of goods for computing GST liability.||No Supply||No ITC to be availed and reversal 42, 43 needs to be made|
|Free Samples and Gifts given to distinct entity and related person||Supply||ITC to be availed on all the inputs, input services and capital goods|
|Buy one get one free offer when goods or services are different or same||One Supply /Mixed Supply /Composite Supply as the case may be||ITC to be availed on all the inputs, input services and capital goods|
|Discounts including ‘Buy more, save more’ offers ((if shown on invoice itself)||Supply||ITC to be availed on all the inputs, input services and capital goods|
|Staggered Discount Determined established before or at the time of supply||Supply||ITC to be availed on all the inputs, input services and capital goods|
|Discount offered by way of Credit note after time of supply||Original Supply|
|Secondary Discounts offered subsequently even if not known prior to supply||Original Supplies||No impact on availability or otherwise of ITC in the hands of supplier in this case.|
Disclaimer: IRIS Business Services has taken due care and caution in compilation of data. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided.