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GST Annual Return: Everything you need to know about the format, eligibility & rules around GSTR 9 GST returns comprises of two types of return - periodic and annual returns. Periodic returns are monthly or quarterly returns for reporting transactions during the month or quarter, while annual return is for reporting the summary of the periodic returns filed during a financial year. As the annual return is last return of the year thus, it assumes special significance. Who is required to file an annual return Generally, all taxpayers are required to file the return with certain exceptions such as taxpayers who have obtained registration as: 'Casual Taxable Persons' or 'Non-resident taxable persons' like exhibitors 'Input service distributors' to distribute the input tax credit of services that are invoiced in one location however, are to be used in different States (for instance- distribution of input tax credit. pertaining to advertisement services invoiced in one State, however, is used in other States) Person liable for deduction of tax at source. The Government has not implemented the deduction of tax at source related provisions. What is the format of the return ? As per the GST Rules, various forms have been prescribed for the purpose of return, depending upon the categories of the tax payers, which are as follows: Registered under Composition Scheme GSTR 9A E Com Operator GSTR-9B Others whose turnover exceeds 2 Corers GSTR-9C Others Whose turnover less than 2 Cores GSTR-9 The Government had to suspend filings such as GSTR 2 and GSTR 3 and come up with a simplified summary return GSTR 3B. Efforts are underway to finalize the contents of the annual return with the dual purpose of achieving simplicity and comprehensiveness. The return format was supposed to be taken up during the last Council meeting on 31 July, however, no decision was taken. Once the Council approves the format, it may be placed for the stakeholder consultation. What is the deadline for filing the return? Annual return is required to be filed on or before December 31, 2018. For instance for the financial year 2017-18 (transactions undertaken during July 17 to Mach 18), the last date for filing is December 31, 2018. What is the consequence of non-filing the return? Failure to file annual return shall attract a late fee of INR 200 per day during the period of failure, subject to a maximum of 0.25% of the said Financial Year's turnover. What are immediate deadlines in the run upto the return? While the deadline for filing the annual return is a few months away, even taking into account the possibility of extension of deadline for filing, there are few important compliances that needs to be planned. Input tax credit pertaining to invoices issued by the suppliers during 1 July 2017 to 31 March 2018 needs to be accounted by 20 October 2018 in the GSTR 3B. As per the GST law, after 20 October 2018 credits pertaining to the said financial year cannot be taken. This would also mean that reconciliation exercise should be undertaken, well before finally ascertaining credits, to ensure that the supplier has also correctly uploaded the details and it appears in GSTR 2A. Further, credit notes for sales made during the last financial year should be accounted by 30 September 2018. Before filing the annual return, for taxpayers with more than INR 2 Crore turnover, GST audit would also need to be completed. Along with the audit report, copy of audited annual accounts and reconciliation statement of tax already paid and tax payable as per audited accounts needs to be submitted. Whether the annual return can be revised As there is no specific provision in GST law to revise the annual return hence, based upon the current version of the law, it appears that once filed the same cannot be revised. Last word While the precise details required to be submitted in the annual return is not final yet however, it would require finalization of input tax credit, invoices, credit notes, GST audit, etc. Annual return would be the last return of the year and is likely to referred by multiple external stakeholders such as auditors, tax authorities, etc. for all times to come for the said year. Experiences from periodic return and other filing such as TRAN 1 suggests taxpayers, GSTN and Governments are likely to go through challenges, which at best be anticipated and planned for.


GST3B Filing Due Date Extended to 24th August for July 2018 As expected GST3B Filing Due Date Extended to 24th August for July 2018. Official Notification is yet to Come in this regards. As of now Information has been updated on GST Portal, Last date of filing GSTR-3B for the month of July, 2018 has been extended to 24th Aug, 2018.

Govt. unveils draft GST. returns forms, seeks public comments; industry welcomes move New Delhi: The tax department on Monday put up in public domain draft GST returns forms -- Sahaj and Sugam -- for seeking comments from stakeholders. Besides, taxpayers who have no purchases, no output tax liability and no input tax credit to avail in any quarter of the financial year shall file one 'Nil' return for the entire quarter. "In month one and two of the quarter, such taxpayer shall report NIL transaction by sending an SMS. Facility for filing a quarterly return shall also be available by an SMS, " the Central Board of Indirect Taxes and Customs (CBIC) said while unveiling the draft returns forms. Small taxpayers would be those who have a turnover up to Rs 5 crore in the last financial year and can file quarterly return with monthly payment of taxes on self-declaration basis. The return form 'Sahaj' is for businesses which make supplies to only consumers (B2C). It includes details of outward supplies and inward supplies attracting reverse charge as well as a summary of inward supplies for claiming input tax credit (ITC). Also, such B2C businesses will have to show HSN wise summary of supplies and interest and late fee liability details along with payment of tax and verification. Besides, businesses making supplies to both businesses (B2B) and consumers (B2C) have to file returns form 'Sugam'. It includes a summary of supplies made and tax liability, a summary of inward supplies for claiming ITC, along with details of interest due and tax payment. Such businesses will have to file annexure to the return form giving details of outward supplies made to registered persons, consumers and un-registered persons (B2C and B2B) and inwards supplies attracting a reverse charge. Also HSN wise summary of supplies too has to be filled. The forms, which will replace the current GSTR-3B and GSTR-1, are expected to be launched by 1 January, 2019. AMRG & Associates Partner Rajat Mohan said the "new procedures are expected to disrupt the compliance scenario in GST once again for sure, but this inclusive governance model of inviting public comments would act as a swift shock absorber". EY Tax partner Abhishek Jain said with the edifice of the proposed new return formats being released for public comments, the industry could put forth their concerns so that these could be well addressed before implementation. "The current Government's leitmotif of being open to public views/ comments has always been welcomed by businesses and has in the recent times also addressed various apprehensions of the industry, " Jain added. The returns form was cleared by the Goods and Services Tax Council in its last meeting on 21 July.

GOVERNMENT OF WEST BENGAL DIRECTORATE OF COMMERCIAL TAXES 14, BELIAGHATA ROAD, KOLKATA-700015 NOTIFICATION BY THE COMMISSIONER OF STATE TAX Notification No. 14/2018–C.T./GST Dated: 12.07.2018 Whereas, Notification No. 13/2018-C.T./GST dated 06.06.2018 had been issued by the Commissioner of State Tax after consultation with the Principal Chief Commissioner of Central Tax, Kolkata Zone, under clause (d) of sub-rule (14) of rule 138 of the West Bengal Goods and Services Tax Rules, 2017, notifying that the e-waybill in respect of movement of goods originating and terminating within the State of West Bengal (intra-State movement but without passing through any other State) shall be required where the consignment value exceeds Rs.1, 00, 000/- (rupees one lakh only). 2. Now, in exercise of the powers conferred by clause (d) of sub-rule (14) of rule 138 of the West Bengal Goods and Services Tax Rules, 2017, after consultation with the Chief Commissioner of Central Tax, Kolkata Zone, and in partial modification of theNotification No. 13/2018-C.T./GST dated 06.06.2018, it is hereby notified that:– (i) Generation of e-waybill under the West Bengal Goods and Services Tax Rules, 2017 for an intra-State movement of goods is exempted where such goods are being sent to a job-worker for job work as defined under clause (68) of section 2 of the Central Goods and Services Tax Act, 2017/ the West Bengal Goods and Services Tax Act, 2017 or are being sent from one job-worker to another job-worker or are being returned to the principal after such job work, and where such transportation is not for final delivery of the finished goods; (ii) For all other incidences of intra-State movement of goods, the terms and conditions as laid down in the Notification No. 13/2018-C.T./GST dated 06.06.2018 issued by the Commissioner of State Tax, West Bengal, shall be applicable till any further amendments.

West Bengal exempts e-way bill for job work, but industry may not complain The West Bengal government has exempted job work from the requirement of generating e-way bill for intra-state movement of goods, a move that may raise the burden on the industry to track rules for different states. However, the industry might not complain as this is a beneficial provision, even as there is distortion in one nation-one tax principle of GST, say experts. The state government has already raised the threshold to generate bills from Rs 50, 000 to Rs 100, 000 worth of transported goods. States can tinker with e-way bills under their state goods and services tax (SGST) laws for intra-state movement of goods. They cannot do it for inter-state movement of goods on their own without the permission of the GST Council. "Generation of e-way bill under the West Bengal GST Rules, 2017, for an intra-state movement of goods is exempted where such goods are being sent to a job-worker for job work, " says the notification issued by the state government. Job work is defined under the GST laws as any treatment or processes undertaken by a person on goods belonging to another registered person or entity under the GST. These broadly include carrying out embroidery work or stitching work in the textile industry, processing of leather in shoe industry. Generally, job work is done by small businesses, particularly in West Bengal. However, the exemption is only for business-to-business transaction. It would not apply to final delivery of finished goods. Abhishek Jain, partner, EY, says these variations and different practices by states could entail efforts being required at the industry-end on maintaining a state-wise track of relaxation in e-way bill to avail such benefits. However, this is a beneficial provision and hence the industry might not complain. "Those who do not want this exemption, may continue to generate e-way bills for job workers in West Bengal, " an expert said. M S Mani, partner, Deloitte India, said while the exemptions on every bills on job work movements in West Bengal is intended to simplify compliance for SMEs, state-specific changes on any aspect of GST would lead to a distortion of the one-on-one tax principle. The bills, generated on e-way bill portal, SMS, android app or through API, is compulsory for anyone whose goods worth over Rs 50, 000 are transported for inter-state movement of goods from April one, 2018. This could also be generated by a transporter alternatively. The requirement to do so for intra-statement movement of goods was made compulsory by June 3, 2018 in a phase-wise manner. However, West Bengal and Maharashtra have now raised the threshold for generating intra-state e-way bill to Rs 1, 00, 000 from earlier Rs 50, 000.

LATEST UPDATES IN GST COUNCIL MEETING Key Decisions in GST Council's 28th Meeting 1. Quarterly Returns approved for taxpayers with annual turnover less than Rs 5 Crores which will benefit about 93% of taxpayers. However, tax payments to continue on monthly basis. 2. Reverse charge mechanism under section 9(4) to remain suspended upto 30/09/2019 i.e. further extended for one year. 3. In a big relief to hoteliers, GST on Hotels accommodation would now be on actual tariff charged in Invoice & not declares tariff 4. Registration of the taxpayer will be suspended from the date of applying for cancellation of registration till the date of cancellation to relieve the taxpayers from compliance burden. 5. Refund of unutilised ITC on account of inverted duty structure in textile industry will be available for supplies made from 27/07/2018 6. Taxpayers will be eligible to opt for multiple registrations in a State for operational convenience. Turnover in such cases will be assessed on aggregate level. 7. 5% GST ceiling on footwear raised from Rs 500 to Rs 1000 8. GST Rate on consumer electronics - TV (up to 27"), Washing Machine, Refrigerator, mixer, juicer, grinder cut from 28% to 18% 9. GST Rate on special purpose vehicles, work truck, trailer cut from 28% to 18% 10. GST Rate on Lithium ion batteries, vacuum cleaners, food grinders, mixers, storage water heaters, head dryers, hand dryers, paints, varnishes, Wall Putty, Leather Items, water cooler, milk cooler, ice cream coolers, perfumes, toilet sprays and toilet preparation REDUCED from 28% to 18% 11. All the reduction in GST Rates shall become effective from 27/07/2018 before which necessary Notifications shall be issued. 12. Sanitary Napkins exempted from GST 13. GST on bamboo flooring reduced to 12% 14. Ethanol for Oil Marketing Companies now at 5% vs 18% earlier.

The Council approved quarterly filing of return for the small taxpayers having turnover below Rs. 5 Cr as an optional facility. Quarterly return shall be similar to main return with monthly payment facility but for two kinds of registered persons – small traders making only B2C supply or making B2B + B2C supply. Taxpayers would have facility to create his profile based on nature of supplies made and received. The fields of information which a taxpayer would be shown and would be required to fill in the return would depend on his profile. NIL return filers (no purchase and no sale) shall be given facility to file return Quarterly basis.  

13/07/2018 WEST BENGAL EXEMPT E WAY BILL FOR JOB WORKERS In West Bengal, e-waybill for an intra-state movement of goods is exempted where such goods are being sent to a job worker for job work or are being sent from one job-worker to another job-worker or are being returned to the principal after such job work, and where such transportation is not for final delivery of the finished goods.

GST trouble: Assessees told to explain mismatch of ITC claimed in GSTR-3B, GSTR-2A Taxmen cite mismatch of ITC claimed in GSTR-3B and GSTR-2A, give 10 days to explain. The tax department’s move of using GSTR-2 was expected among assessees and tax practitioners. A large number of assessees under the GST have received notices from the tax department asking them to explain the mismatch of input tax credit (ITC) claimed in the self-declared summary return GSTR-3B and the auto-generated, but currently suspended, GSTR-2A. The notices have granted a period of 10 days to explain discrepancy, failing which proceeding would be initiated against the taxpayers. Although the department has intensified its enforcement effort in the last month which is reflected in the spurt of notices received by taxpayers, it is the first time they have used a return form, which is not being used by taxpayers since it was suspended in November last year. GSTR-2A is generated by the system on the basis on information received from GSTR-3B and GSTR-1 (sales details). When the sellers of assessees file GSTR-1 in any particular month, its details are captured by GSTR-2A thus providing the details of purchases of the assessee concerned. Since ITC claimed in GSTR-3B should ideally match ITC available on all the purchases made by an asseessee, a mismatch can be detected by comparing the details in these two forms. However, experts say that a mismatch doesn’t necessarily implicate a taxpayer and several other factors could be responsible for the same. “Numerous reasons could be attributed to these discrepancies which include, contradicting circulars over a period of time, frequent changes in law, suspension of GSTR-2, technical incompetence at GSTN. Policymakers need to assure that tax officers pursue such notices in a non-coercive manner and appreciate the practical difficulties faced by taxpayers in filing of tax returns, ” Rajat Mohan, partner, AMRG & Associates, said. In the past month, taxpayers have received notices for non-filing of GSTR-3B, and mismatch in details between GSTR-3B and GSTR-1. The latest batch of notices suggest that tax department is using all possible tools at its disposal to detect evasion, a tax official said. The tax department’s move of using GSTR-2 was expected among assessees and tax practitioners as reported by FE earlier. These assessees had also started using GSTR-2 and GSTR-2A to ensure that the ITC claimed in GSTR-3B was being reconciled. GSTR-2 helps them provide evidence of tax contents in the goods and services they consumed, and thereby validate the credits claimed. The GSTR-2 form provides a business details on the status of suppliers’ tax filing and gives the entity greater control over choosing a vendor. This also allows a firm to ensure that its suppliers are paying taxes on time so that it can claim ITC without any hurdle. Taxpayers are now mandated to file only the outward-supply return GSTR-1 and a simple summary interim return GSTR-3B, with which they pay tax and claim input tax credits. Filing of comprehensive returns with attendant invoice-matching facility was suspended following complaints. Taxpayers had complained of huge compliance burden and also the GST Network’s inability to handle the traffic. The widespread use of GSTR-2 is despite the GST Network not providing the facility of filing