In response to the devastation caused by the MICHAUNG cyclone in early December 2023, the deadline for monthly GST returns has been extended, in respect of the taxpayers whose principal place of business is located in the four cyclone-affected districts of Chennai, Tiruvallur, Chengalpattu and Kancheepuram, as per release from Commercial Taxes Department.
The CBIC vide Notification No. 55/2023 – Central Tax dated December 20, 2023, extends the deadline for filing FORM GSTR-3B for November 2023 until December 27, 2023.
This extension applies to registered individuals with their principal place of business in specific districts of Tamil Nadu (Chennai, Tiruvallur, Chengalpattu, Kancheepuram), as recommended by the Council under section 39(1) and rule 61(1)(i) of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”).
The gross GST revenue collected in the month of October 2021 exceeded ₹1.3 lakh crore. The GST revenues for October is the second highest ever since introduction of GST, second only to that in April 2021, which related to year-end revenues. The revenues for the month of October 2021 are 24% higher than the GST revenues in the same month last year.
The gross GST revenue collected in the month of October 2021 exceeded ₹1.3 lakh crore. The GST revenues for October is the second highest ever since introduction of GST, second only to that in April 2021, which related to year-end revenues. The revenues for the month of October 2021 are 24% higher than the GST revenues in the same month last year.
“This is very much in line with the trend in economic recovery. This is also evident from the trend in the e-way bills generated every month since the second wave. The revenues would have still been higher if the sales of cars and other products had not been affected on account of disruption in supply of semi-conductors,” the government said in a statement.
The government settled ₹27,310 crore to CGST and ₹22,394 crore to SGST from IGST as regular settlement. The total revenue of Centre and the States after regular settlements in the month of October 2021 is ₹51,171 crore for CGST and ₹52,815 crore for the SGST.
During the month, revenues from import of goods was 39% higher and the revenues from domestic transaction (including import of services) are 19% higher than the revenues from these sources during the same month last year.
Indian stock market benchmark Sensex was up over 600 points in noon trade. A private survey released earlier in the day showed India’s manufacturing sector activities gained further strength in October as companies scaled up production and stepped up input purchasing in anticipation of further improvements in demand.
The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) rose from 53.7 in September to 55.9 in October, pointing to the strongest improvement in overall operating conditions since February.
Robust gains in new work aided production growth in October as output and new orders expanded at fastest rates in seven months, while business optimism hit a six-month high, the survey said.
The Goods and Service Tax network on 4th August 2021 has decided to resume the blocking of e-way bill generation facility on the EWB portal, for all the taxpayers in terms of Rule 138 E (a) and (b) of the CGST Rules, 2017, from 15th August onwards.
1. As you might be aware that the facility of blocking E way bill generation had been temporarily suspended due to pandemic, in terms of Rule 138 E (a) and (b) of the CGST Rules, 2017, the E Way Bill generation facility of a person is liable to be restricted, in case the person fails to file their return in Form GSTR-3B / statement in CMP-08, for a consecutive period of two months / Quarters or more.
2. The government has now decided to resume the blocking of EWB generation facility on the EWB portal, for all the taxpayers in terms of Rule 138 E (a) and (b) of the CGST Rules, 2017, from 15th August onwards.
3. Thus, after 15th August 2021, the System will check the status of returns filed in Form GSTR-3B or the statements filed in Form GST CMP-08, and restrict the generation of EWB in case of: Non filing of two or more returns in Form GSTR-3B for the months up to June, 2021 and Non filing of 02 or more statements in Form GST CMP-08 for the quarters up to April to June, 2021
4. To avail continuous EWB generation facility on EWB Portal, you are therefore advised to file your pending GSTR 3B returns/ CMP-08 Statement immediately.
5. For details of blocking and unblocking EWB click on below links :
The gross GST revenue collected in the month of April is at a record high of Rs. 1,41,384 crore of which CGST is Rs. 27,837 crore, SGST is Rs. 35,621, IGST is ₹68,481 crore (including Rs. 29,599 crore collected on import of goods) and Cess is Rs. 9,445 crore (including Rs. 981 crore collected on import of goods).
“Despite the second wave of COVID-19 pandemic affecting several parts of the country, Indian businesses have once again shown remarkable resilience by not only complying with the return filing requirements but also paying their GST dues in a timely manner during the month,” according to a statement by Ministry of Finance.
The GST revenues during April 2021 are the highest since the introduction of GST even surpassing collections in the last month (March’2021). In line with the trend of recovery in the GST revenues over past six months, the revenues for the month of April 2021 are 14% higher than the GST revenues in the last month of March’2021.
During the month, the revenues from domestic transaction (including import of services) are 21% higher than the revenues from these sources during the last month.
GST revenues have not only crossed the Rs. 1 lakh crore mark during successively for the last seven months but have also shown a steady increase. These are clear indicators of sustained economic recovery during this period.
Closer monitoring against fake-billing, deep data analytics using data from multiple sources including GST, Income-tax and Customs IT systems and effective tax administration have also contributed to the steady increase in tax revenue. Quarterly return and monthly payment scheme has been successfully implemented bringing relief to the small taxpayers as they now file only one return every three months.
Providing IT support to taxpayers in the form of pre-filled GSTR 2A and 3B returns and ramped up System capacity have also eased the return filing process.
During this month the government has settled Rs. 29,185 crore to CGST and Rs. 22,756 crore to SGST from IGST as regular settlement.
The total revenue of Centre and the States after regular and ad-hoc settlements in the month of April’ 2021 is Rs. 57,022 crore for CGST and Rs. 58,377 crore for the SGST.
CBIC had extended, vide Press Note regarding extension of due date for furnishing of Annual Returns GSTR-9 and GSTR-9C for financial year 2019-20 to March 31, 2021.
This is the second extension given by the government. The deadline was earlier extended from December 31,2020 to February 28.
The government has launched the Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme in a bid to ease the return filing experience of the Goods and Services Tax (GST) taxpayers. The scheme will come into effect from January 1, 2021, it will impact 9.4 million taxpayers, who constitute 92% of the total tax base of GST and have an annual aggregate turnover (AATO) of up to Rs 5 crore.
With the introduction of the QRMP scheme, sources say, small taxpayers would need to file only eight returns – four each GSTR-3B and GSTR-1 – instead of the existing requirement of 16 returns in a financial year, of which 12 are GSTR-3B. The new scheme would also significantly reduce taxpayers’ professional expenses on return filing as they would have to file just half the number of returns as against the current requirement of 16. Also, the QRMP scheme would be available on the common GST portal with the facility to opt-in and opt-out, and opt-in again, as per a taxpayer’s wishes.
The scheme would bring in the concept of providing input tax credit (ITC) only on the reported invoices, thus putting a curb on the menace of fake invoice frauds. Additionally, the QRMP scheme is also likely to have the optional feature of Invoice Filing Facility (IFF) to mitigate the business-related hardships of the small and medium taxpayers. Under the IFF, taxpayers who opt to file their returns quarterly would be able to upload and file such invoices even in the first and second month of the quarter for which there is a demand from the recipients.
The taxpayers won’t need to upload and file all the invoices of the month. Only those invoices, which are required to be filed in IFF as per the recipients’ demands, are to be uploaded. The remaining invoices of the first and second months can be uploaded in the quarterly GSTR-1 return.
The QRMP scheme is based on the existing return system with suitable modifications in a bid to give much-needed flexibility to the small and medium enterprises with regards to GST compliance. It was approved in principle by the GST Council in its 42nd meeting on October 5, 2020.
Prime Minister Narendra Modi launched GST into operation on the 1 st of July, 2017. GST was publicised as ‘one nation, one tax’ by the government, aimed to provide a simplified, single tax regime. GST is a dual levy where the Central Government levies and collects Central GST (CGST) and the State levies and collects State GST (SGST) on intra-state supply of goods or services. Centre also levies and collects Integrated GST (IGST) on inter-state supply of goods or services. The GST Portal is a website where all the compliance activities of GST can be done before and after GST login. Activities such as the GST registration return filing, payment of taxes, application for refund, etc. can be done on the GST Portal.
GSTN, recently launched many new features on GSTN portal. One of its features is that GSTN portal is now showing aggregate annual turnover for previous financial year after logging in to the portal.
The GST turnover is being shown in 26AS just for the information of the taxpayer. DoR acknowledged that there may be some differences in GSTR-3Bs filed and the GST shown in the Form 26AS but it can’t happen that a person shows turnover of crores of rupees in GST and doesn’t pay a single rupee of income tax.
The DoR said that the notified Income Tax Return for the current AY 2020-21 already requires reporting of GST outward supplies in the Schedule GST.
Therefore, the information displayed in Form 26AS would provide ease of compliance to the taxpayers in filling Schedule GST.
The revenue department has noticed that many unscrupulous persons are trying to avail or pass on input tax credit fraudulently by generating fake invoices and has already formulated a strategy for identifying these fake invoice generators which inter alia takes into account the income tax profiles of the suspected fake invoice generators.
These persons in most of the cases never file their income tax returns or disclose very meagre taxable income in the income tax return.
The suspected fake invoice generators are being identified for serious action under GST and other laws including suspension of their GST registration based on the fact that whether their income tax payment commensurate with the expected profit margin on turnover reported by them in the GST returns, the DoR said.
What “aggregate turnover” means?
“Aggregate turnover” is the aggregate value of all taxable supplies, exports of goods or/and services or both, exempt supplies and interstate supplies of persons having the same PAN, to be computed on all India basis. However, such taxable supplies do not include the value of inward supplies on which GST is being paid under reverse charge basis. The aggregate turnover also excludes Central tax, State tax, Union territory tax, Integrated tax and cess.
Basically, sum of the following shall be considered as an aggregate turnover:
Value of all taxable supplies of goods and services
Value of all Inter-state supplies
Value of all exempt supplies of goods and services
Value of all export of goods or services or both
However, the following items would be excluded from Turnover:
Inward supplies on which taxes are paid under reverse charge
Taxes and cesses under GST
Interstate supply of services
Transactions which are neither supply of goods or service.
Supplies provided outside India or received outside India
Extrapolation of Turnover at GSTIN level (for those who have not filed all the returns as per their eligibility or liability)
GSTIN-wise GSTR-3B turnover for FY 2019-2020 has been extrapolated by the formula: >> Total turnover declared as per all GSTR-3B filed / No. of GSTR-3B filed) X No. of GSTR-3B eligible or liable to be filed
GSTIN-wise CMP-08 outward supply has been extrapolated by the formula: >> Total outward supply declared as per all CMP-08 filed / No. of CMP-08 filed) X No. of CMP- 08 eligible or liable to be filed
Added both the values of S. No. (a) and S. No. (b).
For those taxpayers who have filed all the returns as per their respective eligibilities, value of S. No. (c) will be the actual turnover)
Aggregation of extrapolated turnover at PAN level or Annual Aggregate Turnover Resultant values as per S.No. (c) above are aggregated or rolled up at PAN level to arrive at the Annual Aggregate Turnover.
What is the relevance of knowing aggregate turnover?
The aggregate turnover is a crucial parameter for determining the following aspects:
Determining whether registration is required or not-
Aggregate Turnover is relevant for a person to determine threshold limit to obtain registration under GST.
Threshold turnover limit for exclusively supply of goods = Rs 40 lakh (Rs 20 lakh in case of supplies effected from special category states)
Threshold turnover limit for supply of Services or (goods and services both): Rs 20 lakh (Rs 10 lakh in case of supplies effected from special category states)
Determine the limit of composition levy – Threshold limit to opt for composition scheme: Rs 1.5 crore in a financial year (Rs 75 lakh in case of supplies effected from special category states).
To determine a “Taxable person” – Section 2 of CGST Act defines the “taxable person” as a person who has obtained registration or is liable to register as per section 22 and 24 of CGST Act. Here the Section 22 provides a liability to register when the tax payer’s turnover exceeds the limit as determined in certain cases. This is again based on aggregate turnover.
Calculation of Late fee –
Under section 33 any registered taxable person person who fails to file the return u/s 30 i.e Annual return shall be liable to pay late fees of Rs. 100 for every day when such failure continues subject to a maximum of an amount of 0.25% of his aggregate turnover.
This can escalate the amount of late fee because aggregate turnover will include all supplies except reverse charge.
To determine whether Audit is required –
Registered persons with an aggregate turnover exceeding the prescribed GST audit limit of Rs 2 Crore during a financial year are liable for GST Audit. The turnover limit of Rs 2 Crore is same for the registered tax persons across all States and UTs. Thus, no separate turnover limit is defined for Special Category States for GST Audit.
Therefore, it is advised to carry on the computation of aggregate turnover accurately as the same will be used at a number of places which will in turn determine the tax liability of a person.