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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...

GST 2.0 – Introduction to New GST Returns

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India’s most significant indirect tax reform, the Goods and Services Tax is on the path to a total revamp with the New GST Returns System. For those who aren’t familiar with the New Returns, these 101 series will help you understand everything you need to know about this new phase of the GST revamp that is scheduled for October 2020. Let us start at the beginning. The Goods and Services Tax was implemented in India in 2017, and it did not really have the smooth sailing reception that most people hoped it would. Other countries who have levied GST as a tax reform seemed to have faced issues of inflation, initial confusion over tax slabs, etc. and the situation was no different for India. But two years into the introduction of GST and the uncertainty around forms and filing of re...

Emotional Intelligence and its relevance at Workplace

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“What really matters for success, character, happiness and life long achievements is a definite set of emotional skills – your EQ not just purely cognitive abilities that are measured by conventional IQ tests.” by Daniel Goleman. I will be starting this article differently. Let’s have a look. Problems  Many people in the workplace are not emotionally intelligent because neither they are stable in Emotional Quotient (EQ) nor Intelligence Quotient (IQ). 95% of the HR think that EQ is important, but only 1 in 5 people said EQ is more important than IQ. 3 in 10 HR feels that most employees put too little emphasis on Emotional Intelligence (EI). We should have a balance between emotions and intelligence. The person having fewer emotions tends to be aggressive whereas a person having low intelli...

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...

Lights-Out Warehouse – Sooner or Gradual?

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Traditional warehouses or distribution centres are undergoing a massive transformation. The warehouse is a significant ecosystem. Its interconnected technologies help to drive automation and an unperturbed distribution. However, this is the time we are entering the Industry 4.0, embracing automation and adoption of advanced technologies; So why the warehouse system should be out of the adoption value chain! The warehouse is evolving to meet the growing pressures applied to it further up the chain. This will be achieved by integrating the digital and the physical – improving productivity in the process. The use of advanced, connected technologies in distribution centres is not new, previously these technologies were mainly limited to automated systems used to increase material-handling prod...

Why are GST taxation reforms critical this year?

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Experts believe that the economy tends to take a back seat when political and religious issues take precedence over everything else. Amidst all the protests and rallies around the CAA bill, India seems to be forgetting that the new financial year is just around the corner and we, as an economy, can’t afford to continue with our rather slow and painful pace of growth. India seems to be struggling to meet its Goods and Services Tax Revenue Targets, and with collections wilting every month, it is important to focus on improving the GST system starting FY 2020-21. This article outlines some of the measures that will be undertaken by the Government explicitly around the Goods and Services Tax. Electronic invoicing rolled out Electronic invoice (e-Invoice) is a system under which Business ...

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...