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3 Years of GST: How GST transformed compliance in India?

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The Goods and Services Tax (GST), implemented on July 1st, 2017, completed its three years of operation. Considered to be the biggest reform in indirect taxes, GST combined (subsumed) almost 17 prevalent taxes into a single umbrella. Although introduced under the “One Nation, One Tax” slogan, the transition period was stressful for both the taxpayers and the government. But, the government has taken various measures overtime to stabilize the compliance process and resolve ongoing issues. GST is still an ongoing process, as evident from the 40th GST Council meeting, which has made various amendments to the system. In India, the dual GST model has been adopted wherein the tax is levied concurrently by both the Central and State/UT governments on the supply of goods and/or service...

3 Years of GST in India: The Journey So Far

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On July 1, 2020, India completed 3 years since the launch of GST. We’ve created an infographic to show you the major events in the journey of GST over the last 3 years.

Changes under the new GST returns system

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The New Return System under the Goods and Services Tax is due to be rolled out in October 2020, and it promises to make the filing of GST returns (that have been extremely cumbersome so far) a breeze. What are the changes that make this new system simple, convenient and efficient? Let’s find out. HSN Code to replace HSN summary HSN code stands for Harmonized System of Nomenclature and has been a globally accepted system for over 30 years. It is a 6 digit uniform code that classifies over 5000 products. Under the current returns system, taxpayers are required to use an HSN summary viz. a summary of all the products and services that they have sold under that filing period. Under the New Returns System, this summary will be replaced by the HSN code. This HSN code will help classify the...

Features of the new GST returns system

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Unlike the Government’s previous attempt, where the Goods and Services Tax was introduced in 2017 and didn’t allow taxpayers any time for transition or understanding the filing of returns, the New Return System under GST has been designed to address taxpayer concerns while filing their GST returns and help them file their returns conveniently. Here are some of the features of the New Return System under the Goods and Services Tax. Monthly and Quarterly filing of GST returns The return filing dates and frequency will be based on the turnover of the taxpayer and shall be calculated based on the reported turnover in the preceding financial year. So if a taxpayer has a turnover below Rs. 5 crore in the previous financial year, they will be required to file their returns every quarter, while ot...

What to file under new GST returns system?

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The introduction of the New Returns System under the Goods and Services Tax is less than a month away and taxpayers will be happy to know that the new returns system does away with a majority of the N number of forms that taxpayers are currently required to submit while filing their GST returns. Under the current GST filing system, taxpayers are required to file a number of forms that can be cumbersome and has proven to lead to erroneous filing. Depending on the taxpayer category, taxpayers are expected to file GSTR-1, GSTR-4, GSTR-5, GSTR-6, GSTR-7 etc. But this will not be the case under the GST New Returns System. Under the simplified new system, taxpayers will be required to file a simplified main return form viz.GST RET-1 containing 2 annexures GST ANX-1 and GST ANX-2. Let us deep div...

Taxpayers denied pre-GST tax credits

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The Centre has imposed a restriction on the time limit to claim transitional credit. On May 5, in a landmark judgement that brought much relief to taxpayers, the Delhi High Court allowed all taxpayers to claim transitional credit accumulated before the implementation of GST by June 30, 2020. This judgement extended the period for claiming input credit from 90 days to 3 years and also allowed all taxpayers to take benefits of the order. The HC verdict, if also upheld by the Supreme Court, could have meant a huge revenue loss to the Central government. But the Centre will be amending Section 140 of the CGST Act and nullify the order issued by the Delhi High Court. Under this amendment, taxpayers will be required to litigate separately to avail any credit disallowed due to technical glitches ...

Highlights of 40th GST Council Meeting

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Recommendations of GST council related to Law & Procedure The 40th Goods and Services Tax Council meeting was held on June 12, 2020, and was chaired by the Union Finance & Corporate Affairs Minister, Nirmala Sitharaman. The Council made recommendations regarding relief measures for MSMEs, extensions to revoke GST registration cancellation and reduction in late fees for late filing of GSTR3B among other announcements. These decisions were aimed at easing the burden of businesses facing challenges because of the Covid-19 crisis. Here are the highlights from the 40th GST Council Meet. Reduction in late fee for past returns The Council announced a reduction in the late fee for delayed filing and payment of GSTR3B for the tax period of July 2017 to January 2020. This measure has been an...

E-invoicing in 3 Minutes

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In her second Budget presentation, Finance Minister, Nirmala Sitharaman stressed on introducing a robust infrastructure system to facilitate the easier and efficient filing of GST returns. One of the most significant moves under GST 2.0 is the introduction of e-invoicing for business to business transactions. Here’s everything you need to know about e-invoicing in under 3 minutes. What is e-invoicing? E-invoicing as a system will be the process of validating your invoice from a Government empanelled e-invoice portal. E-invoicing does not mean the generation of invoices from a central portal of the tax department. Is e-invoicing applicable to everyone? E-invoicing needs to be undertaken by registered taxpayers whose aggregate turnover in a financial year exceeds Rs.100 crore in respec...

Why is e-invoicing a game-changer?

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E-invoicing has officially been rolled out by the Government of India, and this new system promises to change the way we deal with the country’s largest tax reform, the Goods and Services Tax. We are already familiar with the concept of e-invoicing, but why is the significance of introducing this new system and how will it help taxpayers as well as the Government? To understand why e-invoicing is a game-changer, let’s walk you through the steps involved in e-invoicing and why they are beneficial to both, the taxpayer and the Government. One of the most common myths around e-invoicing is that it is a central portal for generating invoices. That is not true as it will be extremely inconvenient for both the taxpayers as well as the Government to have a single portal just to genera...

India will see these reforms in the new financial year

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Another financial year is on the brink of closure and a brand new year approaches. 2020-21 is one to look out for, especially in India, because the Government is all set to introduce a plethora of reforms for its citizens. From a new GST return system and mandatory e-invoicing to new income tax slab rates  – there’s a lot going down in 2020. Here’s everything you need to look forward to this year. New Returns System under the Goods and Services Tax In its 37th Council meet, the Goods and Services Tax (GST) Network announced the introduction of a simplified return filing system, christened GST 2.0. Unlike the current return filing system, this new return system will be user-friendly, will have a reduced number of forms and is expected to help reduce the turnaround time to ...