CBIC to weed out a million assessees from GST tax net

Move to weed out the assessees from GST net will ensure effective tax base

The Central Board of Indirect Taxes and Customs (CBIC) has initiated a process to weed out approximately 12 lakh Goods and Services Tax (GST) assessees who have fallen off the tax map.

“The CBIC has communicated to field officers to take the process further. Now, field officers will issue show-cause notices, which is just a formality but a requirement under the law, and then complete the process for deregistration,” a Finance Ministry official told BusinessLine.

Currently, there are over 1 crore registered assessees on the GST Nework (GSTN), but the number of those who file returns is much less.

Under GST rules, any entity registered under the previous Sales Tax–VAT (Value-Added Tax), Central Excise Duty of Service Tax regulations was required to be enrolled under the GST and get provisional certificates.

However, if the turnover of the entity is less than the GST threshold and he/she is not willing to go for voluntary registrations, such assessees had the option to get the provisional registration cancelled and move out of the GST net. However, many assessees fail to complete the process, and so they continued to be a part of the GST-assessee base.

GST was implemented from July 1 last year. In the very first year, the number of registered assessees increased by 72.5 per cent to 1.14 crore. Of these, 66.17 lakh were existing taxpayers, that is, those registered under previous VAT/Sales Tax, Central Excise or Service Tax regime; the remaining were new ones. The Government believes that the new assessees came into the net as a result of demonetisation, which resulted in the formalisation of the economy, prompting more and more people to get registered.

During the pre-GST regime, States had different slabs for registration under VAT/ST, which was as low as 1 lakh and could go up to 10 lakh: the thresholds for Service Tax and Central Excise were 10 lakh and 1.5 crore, respectively. Now the universal threshold is 20 lakh (or 10 lakh in some States), which means there will be fewer people paying tax and filing returns.

Another Finance Ministry official said that while a wider tax base is good, there is also a need to ensure an ‘effective’ tax base; the latest initiative will help achieve that. This kind of a tax base will serve two purposes: it will lighten the burden on the GSTN, and it will give a real picture of the indirect tax regime.

Source: Business Line

GSTR 3B required to be filed by 20th of Next Month from July 2018 to March 2019

The Central Government has notified that the Form GSTR 3B for each month from July 2018 to March 2019 required to be filed by 20th of next month.

 

A Notification issued by the Central Board of Indirect Taxes and Customs (CBIC) has said that “the return in FORM GSTR-3B of the said rules for each of the months from July, 2018 to March, 2019 shall be furnished electronically through the common portal, on or before the twentieth day of the month succeeding such month.

 

“Every registered person furnishing the return in FORM GSTR-3B of the said rules shall, subject to the provisions of section 49 of the said Act, discharge his liability towards tax, interest, penalty, fees or any other amount payable under the said Act by debiting the electronic cash ledger or electronic credit ledger, as the case may be, not later than the last date, as specified in the first paragraph, on which he is required to furnish the said return,” the Notification said.

 

GSTR-3B is a monthly return. All regular taxpayers need to file this return till June 2018. Taxpayers can file their return on GST Portal. Taxpayers have to file this return by 20th of the subsequent month.

 

 

To read the full text of the Notification, click here: GSTR 3B

 

GST payers can move jurisdictional tax officer to change username, password

 

Taxpayer would be required to approach the concerned jurisdictional tax officer to get the password for the GST Identification Number (GSTIN) allotted to the business

The Finance Ministry on Thursday said that GST registrants can approach jurisdictional tax officer with valid documents to change the e-mail and mobile number recorded against their GST identification number (GSTIN).

 

The revenue department had received complaints from taxpayers that the intermediaries who were authorised by them to apply for registration on their behalf had used their own e-mail and mobile number during the process.

 

These intermediaries are not sharing the user details with the taxpayers.

 

“With a view to address this difficulty of the taxpayer, a functionality to update e-mail and mobile number of the authorised signatory is available in the GST system.

 

“The e-mail and mobile number can be updated by the concerned jurisdictional tax authority of the taxpayer,” the ministry said in a statement.

 

Taxpayer would be required to approach the concerned jurisdictional tax officer to get the password for the GSTIN allotted to the business. Taxpayers can check jurisdiction through ‘Search Taxpayer’ option available on GST portal.

 

Taxpayer would be required to provide valid documents to the tax officer as proof of his/her identity and to validate the business details related to his GSTIN. Following this, the officer would authenticate the activity and enter the new e-mail address and mobile number provided by the taxpayer.

 

After uploading of the documents, tax officer will reset the password for GSTIN in the system and username and temporary password reset will be communicated to the e-mail address as entered by the officer.

 

Taxpayer would then have to login on GST portal using the username and temporary password e-mailed to him. The username and password can now be changed by the taxpayer.

 

Source: Business Standard

GST refund drive extended till June 16

Relief for exporters as govt extends special GST refund drive till June 16

The Central Board of Indirect Taxes and Customs (CBIC) has extended the refund fortnight for fast track clearance of pending dues to exporters by two days till June 16.

The central and state tax officials have already cleared refunds worth over Rs 7,500 crore since May 31, when the special drive to clear exporters refund was launched.

“In view of overwhelming response from exporters and pending claims, the period of refund fortnight is being extended by two more days i.e up to June 16, 2018,” a finance ministry statement said.

With about Rs 14,000 crore of exporters refunds stuck due to various mismatches, the CBIC had organised the second phase of the special fortnight to fast track clearances.During the first phase, between March 15 and 29, an amount of Rs 5,350 crore was sanctioned.

The ministry further said, in case of short payment of integrated GST (IGST), small exporters whose aggregate IGST refund amount for the period July 2017 to March 2018 is up to Rs 10 lakhs are required to submit self-certified copies of proof of payment of IGST to the concerned customs office at the port of export.

Others are required to submit a certificate from a Chartered Accountant including the proof of payment.

All GST refund claimants, whose claims are still pending, are being encouraged to approach their jurisdictional tax authority for disposal of their refund claims submitted on or before April 30, the statement said.

“In case of any problem, exporters are advised to approach the Commissioner of Customs /Jurisdictional Tax Authorities. The government is committed to clear all the remaining refund claims filed up to 30.04.2018 are still pending,” it added.

How new single monthly GST return system will be implemented

The GST Council on Friday finally approved single monthly return with an aim to boost collections and compliance. The new system is scheduled to be implemented in next six months.

The Goods and Services Tax (GST) Council on Friday finally approved single monthly return with an aim to boost collections and compliance. The new system is scheduled to be implemented in next six months — but could take more time. “The Council has approved the new system of GST return but the software will take six months to get fully operationalised,” Finance Minister Arun Jaitley said.

However, from the preliminary information provided by the GST Council, the new system will be implemented in three phases. “While the initiative of GST return simplification appears to have crossed another milestone – the 3 Phase implementation plan of the revised returns format or procedures do not bring out the exact comfort that industry has sought so far,” Indirect tax expert Jigar Doshi of SKP Business Consulting told FE Online. He explained how the new single return filing system is planned for implementation.

The new return filing process would be introduced in three phases:

Phase 1: First six months

  • The current process of filing GSTR-3B and GSTR-1 will continue for the first six months.
  • Software for the new system will be developed during this phase.

Phase 2: Next six months

  • A single-monthly system of filing returns will be introduced for all taxpayers, except persons with nil liability and composition dealers. They will be filing quarterly returns.
  • A uni-directional system of uploading details of invoices by the supplier will be implemented. Recipients will get credit on the basis of these invoices.
  • For the first six months of the new system, a facility to avail provisional credit by the recipient will be available.
  • Suppliers will be uploading details of invoices and recipients will follow up with the supplier in case of any gap in the uploaded details.
  • Recipients will try and reduce mismatch through follow up only. No mechanism will be in place for the recipients to upload any invoice.

Phase 3: After 1 year

  • The new system of return filing will be fully implemented with no facility of provisional credit. Credit will be available on the basis of details of invoices uploaded by the supplier only.
  • If tax liability on uploaded invoices is not discharged by the supplier but the credit is availed by the recipient, the government would first recover the same from the supplier. However, the government would retain the power to recover the tax from the recipient also.

 

Source: Financial Express

GST monthly revenue touches Rs 1 lakh crore for first time; govt credits better compliance

The government announced today that the GST revenue for the month of April has crossed Rs 1 lakh crore – a first since GST was rolled out in July last year. As mentioned by the Ministry of Finance, the total gross GST revenue collected in April is Rs 1,03,458 crore.

Out of that CGST (Central GST) amounted to Rs 18,652 crore, while SGST (State GST) amounted to Rs 25,704 crore. IGST (Integrated GST) stood at Rs 50,548 crore, including Rs 21,246 crore that was collected on imports, and cess at Rs 8,554 crore, including Rs 702 crore collected on imports.

As mentioned in ANI, the finance ministry also noted that the central and state governments earned a total revenue of Rs 32,493 crore in CGST and Rs 40,257 in SGST, after settlement in April.

Moreover, the ministry noted that out of 87.12 lakh, 60.47 lakh GSTR 3B returns were filed for March till April 30. That makes 69.5% of the eligible proportion. The ministry also said that 11.47 lakh out of 19.31 lakh composition dealers filed their quarterly return (GSTR 4), amounting to 59.40%. In total Rs 579 crore in taxes were paid, which is included in the aforementioned GST revenue figure.

The ministry said, “The buoyancy in the tax revenue of GST reflects the upswing in the economy and better compliance. However, it is usually noticed that in the last month of the financial year, people also try to pay arrears of some of the previous months. Therefore, this month’s revenue cannot be taken as a trend for the future.”

The recently introduced e-way bill might be the reason behind the sudden spike in GST revenues. E-way bill, which is generated for consignments moving inter-state or intra-state was rolled out in April. The inter-state e-way bill was introduced in April 1, while the intra-state one was pushed to April 15.

The GST Council is scheduled to meet on May 4 next.

Source: Business Today

CBEC to verify GST transitional credit claims of 50,000 taxpayers

In order to check “frivolous and fraudulent” tax credit claims by businesses, the CBEC has decided to verify demands of top 50,000 tax payers claiming maximum GST transitional credit, starting with those where the quantum exceeds Rs 25 lakh.

The verification of “unreasonable” transitional credit claims would be conducted in four phases, a source said, adding that credit verification will remain one of the focus areas in 2018-19.

As part of transition to GST last July, taxpayers were allowed to file Form TRAN-1 and avail tax credit on the basis of closing balance of the credit declared in the last return under the pre-Goods and Services Tax regime.

In order to check “frivolous and fraudulent” transitional credit claims, the CBEC has shared with field offices the list of 50,000 taxpayers whose claims would be further scrutinised.

It is suspected that some of these businesses might have obtained a registration under the GST only to claim transitional credit benefits, the source added.

In the first phase, the tax officers will verify transitional credit claims where the growth is more than 25 per cent or the credit availed is in excess of Rs 25 lakh. This verification is to be completed by June and a status report has to be given to the Central Board of Excise and Customs (CBEC) by July 10.

One-third of the remaining claims of 50,000 taxpayers will be verified in three phases — July-September, October-December and January-March (2019).

Taxpayers who have claimed transitional tax credit of more than Rs 25 lakh and have reported 25 per cent increase in such claims are also likely to be asked to submit a detailed statement of purchases during October 1, 2016, to June 30, 2017, the source said.

According to revenue department data, as much as Rs 65,000 crore of transitional input tax credit was claimed by businesses as on September 2017.

Concerned over large claims for which there was no “bona-fide explanation”, the revenue department had asked taxpayers to revise their claim forms by December 27, 2017, or face enforcement action.

Worried over huge claims, the CBEC conducted a “preliminary scrutiny” following which it has now decided to further verify the “correctness of the transitional credit in a more focused and concerted manner”, the source said.

However, in a communication to the field formation, the CBEC said that efforts should be made on the basis of data already available with the department without contacting the taxpayer.

It further said wherever contact with taxpayers is absolutely essential, it should be done with due caution.

“Summon should be issued only where the taxpayer is not sharing information even after repeated requests and lapse of an unreasonable period of time,” it said.

AMRG & Associated Partner Rajat Mohan said the move comes amid disappointing tax collections.

“A detailed verification of transitional credit for pre-decided 50,000 GSTIN on all India basis comes as a no surprise. Credit verification would be a focus area in the new financial year, and big data analytics would be of great aid,” Mohan said.

As per a finance ministry reply to the Lok Sabha, GST mop up was Rs 93,590 crore in July, Rs 93,029 crore in August, Rs 95,132 crore in September and Rs 85,931 crore in October.

The collections in November stood at Rs 83,716 crore, December (Rs 88,929 crore) and January (Rs 88,047 crore).

Source:  Times of India