Advisory for Taxpayers regarding Generation of EWB where the principal supply is Supply of services.

Advisory for Taxpayers regarding Generation of EWB where the principal supply is Supply of services.

One of the common issued faced by taxpayers who are dealing with composite supply where there is requirement to ship goods also when executing a service contract. To address this GSTN has issued an advisory on the same.

1. Representations have been received from various trade bodies stating that they are not able to generate EWB bill for movement of those goods where their principle supply is classifiable as a service, since there is no provision for generating E-way Bill by entering SAC (Service Accounting Code-Chapter 99) alone on the E- way bill portal.

2. To overcome this issue, the taxpayers are advised as below:

a) Rule 138 of CGST Rules, 2017, inter alia, states “Information to be furnished prior to commencement of movement of goods and generation of e-way bill.-(1) Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees….” Thus, E way bill is required to be generated for the movement of Goods.

b) Therefore, in cases where the principal supply is purely a supply of service and involving no movement of goods, the e-way bill is not required to be generated.

c) However, in cases where along with the principal supply of service, movement of some goods is also involved, e-way bill may be generated. Such situations may arise in cases of supply of services like printing services, works contract services, catering services, pandal or shamiana services, etc. In such cases, e-way bill may be generated by entering the details of HSN code of the goods, along with SAC (Service Accounting Code) of services involved.

Major Changes in GST Portal

For providing better user experience and new features are being added on the GST portal from time to time by the GSTN. Some of the important feature added on the GSTN portal are listed below

1. Same Jurisdictional Authority in case of an applicant files a new application where it is canceled previously.

Applicants who are applying for registration again, in the previous cases where their registration is canceled by the applicant himself or suo-moto, the new GST registration application filed will be assigned to the same jurisdictional officer who has canceled it.

2. Aadhar Authentication enabled on SPICe -AGILE Form on MCA Portal.

As part of ease of doing business, SPICe -AGILE Form is introduced where multiple registrations can be obtained in a single form by the MCA for the newly established companies. Now Aadhar Authentication is also enabled on the SPICe -AGILE Form.

3. RESET button enabled on GST Portal for Form GSTR-1/ IFF (Invoice Furnishing Facility.

Normal taxpayers, irrespective of their filing profile (quarterly or monthly), have now been provided with a RESET button on the GST Portal, in Form GSTR-1/IFF. This will enable them to delete the entire saved data for the specific return period but not yet submitted or filed their Form GSTR-1/IFF.

4. Reporting and payment of taxes in GSTR-5A

Now taxpayers registered under OIDAR Category can declare and pay interest and other amounts in GSTR-5A.

5. Filing of the refund application by the exporter of services for exports with payment of taxes on account of foreign exchange fluctuations.

The system earlier validated the refund amount claimed by the exporter of services (with payment of tax) against the proceeds realized (against exports, as submitted by the claimant in the Form of FIRC). If the value realized in the BRC/FIRC column was less than the refund amount claimed, such taxpayers could not file their refund application on GST Portal. This validation has now been removed, and the taxpayer will be able to file a refund application now in such cases (As the value realized in BRC/FIRC may fluctuate due to foreign exchange fluctuations, and net realization may be less than the refund amount).

6. Enabling Audit Functionalities on GST portal

Now taxpayers can view and see the department’s notices and reports related to audit under the tab “Additional Notices and Orders.”

Taxpayers can reply to the notices

Taxpayers can apply for an adjournment of or for extension of the audit date to the jurisdictional officer or Audit officer.

The taxpayer can accept/reject/pay the liabilities, discrepancy-wise, as outlined in the Notice for Discrepancies or Addl. Notice for Discrepancies (if any) or in Audit Report (Form GST ADT-02).

7. Changes in Search Tax Payer functionality

In the search taxpayer functionality, now the users can see the status of the Aadhar Authentication or e-KYC status of the searched GSTIN

39th GST Council Meeting – Recommendations of GST Council related on IT Roadmap

Posted On: 14 MAR 2020 7:40PM by PIB Delhi
The 39 GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt Nirmala Sitharaman here today. The meeting was also attended by Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Finance Ministers of States & UTs and seniors officers of the Ministry of Finance.
In the GST Council meeting, Shri Nandan Nilekani, on behalf of Infosys, made a presentation addressing the system related issues that are being faced by the taxpayers in the GST system. He first gave the summary of the recently observed IT issues and the way forward to resolve them.
He suggested that in order to smoothen the rollout of the new return system, and to ensure a better uptake of the new return, the transition to the new return system may be made in an incremental manner. He suggested that the process may be initiated by addressing the compliance related issues first so that the problem of tax evasion and gaming of the system due to non-linking of FORM
GSTR-1 and FORM GSTR-3B is addressed immediately. The journey could start with linking of the details of the statement of outward supplies in FORM GSTR-1 to the liability in FORM GSTR-3B. This would be followed by the linking of the input tax credit in FORM GSTR-3B to the details of the supplies reflected in the FORM GSTR-2A. In order to tackle evasion and preventing the gaming of the system, implementation of Aadhaar authentication and spike rules would also be initiated.
He informed the Council that to augment the capacity of the IT system to concurrently handle 3 lakh taxpayers from the present level of 1.5 lakh taxpayers, hardware procurement process has been initiated which is slightly impacted by the Covid-19 pandemic.
The GST Council further made the following suggestions after due discussionsa.
Shri Nandan Nilekani would attend the next 3 meetings of the GST Council and update the council of the status of implementation of the decisions taken by the Council and assist the Council in taking appropriate decisions on technology related issues,
b. To support the timely implementation of various initiatives, the Council gave a go ahead for deployment of additional manpower (60 in number) on T&M basis and assured that both on procurement of additional hardware and hiring of manpower, expeditious approvals would be given however the return filing experience of the taxpayers and removal of technical glitches needs to be carried out urgently.
Shri Nandan Nilekani assured that he would personally monitor the progress of the GSTN project and also agreed to attend the IT-GoM for the next 6 months or till such time the initiatives are implemented. The GST Council expects these initiatives to be implemented by the 31 of July, 2020.
RM/KMN

38th GST Council’s decisions regarding Law and Procedure related changes

The 38^th meeting of the GST Council met under the Chairmanship of the Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman here today. The meeting was also attended by the Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur  besides Finance Ministers of States & UTs and senior officers of Ministry of Finance.  The GSTCouncil recommended the following:

1. Grievance Redressal Committees (GRC) will be constituted at Zonal/State level with both CGST and SGST officers and including representatives of trade and industry and other GST stakeholders (GST practitioners and GSTN etc.). These committees will address grievances of specific/ general nature of taxpayers at the Zonal/ State level.
2. Due date for annual return in FORM GSTR-9 and reconciliation statement in FORM GSTR-9C for FY 2017-18 to be extended to 31.01.2020.
3. Following measures would be taken to improve filing of FORM GSTR-1:
   1. waiver of late fee to be given to all taxpayers in respect of all pending FORM GSTR-1from July 2017 to November 2019, if the same are filed by 10.01.2020.
   2. E-way Bill for taxpayers who have not filed their FORM GSTR-1 for two tax periods shall be blocked.
4. Input tax credit to the recipient in respect of invoices or debit notes that are not reflected in his FORM GSTR-2A shall be restricted to 10 per cent of the eligible credit available in respect of invoices or debit notes reflected in his FORM GSTR-2A.
5. To check the menace of fake invoices, suitable action to be taken for blocking of fraudulently availed input tax credit in certain situations.
6. A Standard Operating Procedure for tax officers would be issued in respect of action to be taken in cases of non-filing of FORM GSTR 3B returns.
7. Due date of filing GST returns for the month of November, 2019 to be extended in respect of a few North Eastern States.
8. The Council also approved various law amendments which will be introduced in Budget 2020.

[This note presents the decision of the GST Council in simple language for easy understanding which would be given effect through Gazette notifications/ circulars which alone shall have force of law. The same will be made effective from the date as specified in such notifications / circulars.]

 

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RM/KMN

Unit of measure as per GSTN

UQC or unit of measure is required to be shown in the HSN Summary of GSTR – 1 in table 12 and in table 13 of the GSTR – 2. The unit of measure in case of items/goods should be based on the UQC issued by the GSTN. If they do not match it will show error message and the return cannot be filed

http://india-gst.in/unit-of-measure-as-per-gstn/

GST Tip – 105

Advances paid for supplies falling under Reverse Charge are to be shown in Table 12 of GSTR – 2. For each and every advance being uploaded here, a unique identification number will be generated by the GSTN for the advances paid for supplies falling under reverse charge where invoice is not received.