e-invoice threshold limit changes from 1st April 2022

The threshold limit for the issue of e-invoices has been reduced from ₹ 50 crores to ₹ 20 crores. Taxpayers who are having turnover above ₹ 20 crores have to issue e-invoices from 1st April 2022 and the recipient can take input tax credit only if the supplier has issued an e-invoice if required else they cannot avail input tax credit.

The taxpayers can verify from here for the eligibility for the issue of e-invoice.

The changes are notified wide Notification No 1/2022 – Central Tax dated 24th Feb 2022

Annual Aggregate Turnover Computation Methodology

For Normal Taxpayers who have filed all GSTR-3Bs:

Turnover reported in GSTR-3B Column 2 of Table 3.1 { (a),(b),(c) & (e)} during the Financial Year 2020-21 have been taken into consideration (in case all the returns have been filed for the same).

1. Outwardtaxable supplies(other than zerorated, nil rated and exempted).
2. Outwardtaxable supplies(zero rated).
3. Other outward supplies (nil rated, exempted).
4. Non-GST outward supplies.

For Normal Taxpayers who have not filed all GSTR-3Bs:

The following formula is used for extrapolation of turnover:

(Sum of taxable value) X (*No.of GSTR-3B liable to be filed)/(No. of GSTR-3B filed)

*Categorisation of taxpayers to derive the number of GSTR-3B liable to be filed

I. GSTINs who are active as on date and were NOT IN composition during FY 2020-21,number of GSTR-3B liable to be filed have been arrived at as follows:

1. If the taxpayer is migrated, then No.of GSTR-3B liable to be filed is 12
2. If the taxpayer is new and registered on or before 31^st March,2021, the No.of GSTR-3Bs liable to be filed shall be derived on the basis of GSTIN approval/grant date i.e. if approval/grant date is on or before April, 2020, then 12, else based on month of approval/grant of GSTIN (e.g. If the month of grant of GSTIN is May 2020, then number of GSTR-3B liable to be filed is 11,if it is June 2020, then it is 10 and so on).

II. GSTINs who are cancelled as on date and were NOT IN composition during 2020-21, number of GSTR-3B liable to be filed have been arrived at as follows:

1. GSTINs registered on or before 31^st March 2021.
2. Months between cancellation date and approval/grant date of GSTIN decides the number of GSTR-3B liable to be filed.
3. If cancellation date is beyond March 2021, then month between March 2021 and approval/grant Month of GSTIN is derived.
4. If approval/Grant of GSTIN month is before April 2020, then month between cancellation date and April 2020 is derived.

III. GSTINs who are active as on date and were in composition BUT WITHDRAWN during 2020-21,number of GSTR-3B liable to be filed have been arrived at as follows:

1. GSTINs registered on or before 31^st March 2021.
2. Months between Withdrawal date and 31^st March 2021 is defined as number of GSTR-3B liable to file.

IV. GSTINs who are cancelled as on date and were in composition BUT WITHDRAWN during 2020-21, number of GSTR-3B liable to be filed have been arrived at as follows:

1. GSTINs registered on or before 31^st March 2021.
2. Months between Withdrawal date and 31^st March 2021 and cancellation date decides the number of GSTR-3B liable to be filed.
3. If cancellation date is beyond March 2021, then month between March 2021 and Withdrawal Month of GSTIN is derived.

For Composition Taxpayers opted-in throughout the FY: Since the Annual Aggregate Turnover limit for opting in as Composition Taxpayer is up to Rs. 1.5 crore, and will use the following extrapolation formula:

(Sum of taxable value) X (*No. of CMP-08 liable to be filed)/ (No. of CMP-08 filed)

Advisory on Annual Aggregate Turnover Functionality

Aggerate Annual Turnover for the Financial Year is being displayed on the GST portal when the user clicks on Navigate to Returns Dashboard at the time of login.

The values for AATO displayed is based on return filing data filed by taxpayers and computation done as on 26/06/2021. Turnover value is updated dynamically as per filing of Returns. Aggregate Turnover is updated dynamically based upon the filings done by all GSTINs under the PAN. Final Turnover & Aggregate Turnover will be made available post tax-officer’s verification 11/10/2021.

On the page user can see the values based on the returns filed and if there not filled up to date, the AATO  is estimated and shown. In case if the returns are filed, then the actual AATO based on the returns is displayed.

If the value for AATO is wrong, the taxpayers can file a ticket  https://selfservice.gstsystem.in. and get the same rectified.

An Advisory has been issued in this context and it is highly recommended for all the professional to go through the same.

• This facility shows to the taxpayer AATO (Annual Aggregate Turnover) based on the returns filed by him/her in the last financial year.
• The facility of turnover update has also been provided to the taxpayer in this functionality, if the said taxpayer feels that the system calculated turnover varies from the turnover as per his/her records.
• As stated, the calculation is based on the returns filed in the last financial year. For details of the calculation see Turnover calculation logic.
• This facility of turnover update shall be provided to all the GSTINs registered on a common PAN. All the changes by any of the GSTINs in his turnover shall be summed up for computation of Annual Aggregate Turnover for each of the GSTINs.
• The taxpayer can amend the turnover twice within a period of one month from the date of roll out of this functionality.
• Thereafter, the updated value shall be frozen with no further attempts provided to the taxpayers to amend their turnover(s) and this turnover figure will be sent to the Jurisdictional Tax Officer for review.
• In case the jurisdictional Officer finds any discrepancy in the updated/amended values furnished by the taxpayer, the said officer can amend the turnover.
• Tax officers are expected to consult and/or communicate with the taxpayer before amending the turnover declared by the taxpayer.
• The turnover finalized by the tax officer after such consultation shall be considered final.
• In case no action is taken by the officer within 30 days on the turnover reported by the taxpayer, the same shall then be considered final (which will be displayed to the taxpayer accordingly) and will be considered as such for the entire previous financial year.
• In case of any grievances pertaining to the said functionality, the aggrieved taxpayer can raise a ticket at https://selfservice.gstsystem.in.
• All such tickets shall be investigated by the technical team and shall be resolved on a case by case basis and when needed they shall be forwarded to the jurisdictional officer.

Note: Taxpayers are expected to use this functionality only if there is a discrepancy observed by them in the system calculated turnover as per the calculation logic mentioned above.

FAQ – 6

What is Form GSTR – 9C?

Form GSTR – 9C is a reconciliation certificate to be filed by the taxpayers whose aggregate turnover in a financial year crosses two crores have to get their books audited by a Certified Cost Accountant or Charted Accountant.

GST TIP – 436

As per Circular No. 33/07/2018-GST dated 23rd Feb 2018, in case if the taxpayers utilizes the same and the adjudication is not in favor of the taxpayer, the taxpayer has to pay the amount of the utilized CENVAT Credit in the Electronic Credit Ledger with interest and penalty as per the provisions of the CGST Act.

GST Tip – 425

As per Notification No 3 – Central Tax, Refund of input tax credit, availed in respect of other inputs or input services used in making the zero-rated supply of goods or services or both, shall be granted. This is available to Taxpayer’s who have availed the benefit of the Notification Number 48/2017-Central Tax dated the 18th October 2017

GST Tip – 372

As per Notification No. 50/2017 – Central Tax dated 24th Oct 2017, the late for the month of August and September has been waived off for all the taxpayers who have not filed GSTR – 3B by the due date.

GST Tip – 263

Notification No.8/2017-Central Tax (Rate), provides relief to lot taxpayers as it gives exemption up to Rs 5,000 per day for paying tax under reverse charge for inward supplies from unregistered taxpayers.

GST Tip – 151

In the case of refund filed by the taxpayer for export of goods and services, the provisional refund will be issued within 7 days for 90% of the amount will be issued on accepting the application of the refund within 15 days from the filing of the refund application.  #GST #GST_Tips

GST Tip – 148

As per November 2016 Model GST Law, the taxpayer has to file for refund within 2 years in all cases except by United Nations Organization or any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), Consulate or Embassy of foreign countries where the time limit is 6 months if they want to claim refund of tax paid by them on their inward supplies.