GST impact on taxpayers: GSTN chief Navin Kumar says 35,000 registering every day

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Over two weeks into the goods and services tax (GST) regime, Navin Kumar, chairman of GSTN — the IT backbone of the system — speaks to Sumit Jha on how taxpayers have adopted the new system.

Over two weeks into the goods and services tax (GST) regime, Navin Kumar, chairman of GSTN — the IT backbone of the system — speaks to Sumit Jha on how taxpayers have adopted the new system.

What are the latest numbers on migration and new registrations on GSTN platform?

Till June 16, over 70 lakh have migrated to the portal while 7.4 lakh new taxpayers have registered so far. The number of migration has dwindled from 30,000 daily to about 12,000 since we reopened the window on June 25. However, the rate of new registration is still going as strong as it was on June 25 with nearly 35,000 taxpayers registering every day. Our system will remain open for migration till September 25 (3 months).

What explains the large number of new registrations?

A better analysis of why so many new taxpayers have registered can be provided by the tax department, but we are thinking on the lines that businesses realise that it would be harder to do business if they remain outside GST. According to our study, we were expecting a 4-5% growth in new taxpayers yearly. On an 80-lakh existing taxpayer base, this translates into around 4 lakh new registrations. Since June 25, we have had 7.40 lakh new registrations, which is nearly double our expectations. It shows businesses have welcomed GST.

What has been the response for composition scheme?

Till June 16, only 90,000 businesses had opted for composition scheme. I believe many more would want to but the problem is, if you don’t opt for it now, the next opportunity will arise only next year. Though we had collected information on composition scheme from VAT we can’t say off-hand how the registration under GST so far compares with the the figures in the VAT. One of the possible explanation for a subdued number could be that any inter-state supply made by a business makes it ineligible for the scheme.

Has the GSTN been able to deliver the application programming interfaces (APIs) on time?

There are two kinds of APIs: One is government-to-government meant for connecting the tax department with the GSTN, which is already functional. As far as APIs for GST suvidha providers (GSPs) are concerned, we had a meeting with them in June, where we shared a time schedule for releasing APIs. So far, we have stuck to that schedule.

Is there any pilot testing for uploading invoices being carried by GSTN?

The next big thing happening is we are opening the facility for uploading invoices for a closed group of businesses from June 24. Business-to-business people are required to record transactions at the invoice level for filing return. If you are generating 50,000 invoices every day, don’t wait until the last moment. If you have 5,000 invoices in a month, you can upload weekly but it must be done regularly.

A month ago you had questioned the GSPs’ preparedness. What is the status now?

We have asked all GSPs to be prepared, and they have assured us that they are working towards that. The invoice uploading pilot will tell us where they stand.

What is the expected format of filing interim return in August?

This is to be filed in the GSTR3B form where the taxpayer has to indicate his tax liability and input tax credit. So, it would be on self-declaration basis. When they submit the first full return in September for July, we will match their input tax credit submitted through GSTR3B as a form of cross-verification. The final position will be told to them then.

When is the e-way bill likely to come for approval?

The National Informatics Centre (NIC) is working on the e-way bill, and they are supposed to bring it for consideration by October 1. Currently, the removal of check posts at state borders is due to the nature of GST. Earlier you had tax arbitrage between VAT and CST which is gone now. However, state governments are concerned about movement of goods without paying taxes, which would be resolved once e-way bill is introduced.

Can businesses make amends in their information now?

We started the facility to amend registration data from June 18. Many people are coming and saying they need to change some data, including bank account number or phone number. Registration of non-residents and casual taxpayers will also open on June 18. This is for the people who come over in the country for a fair or exhibition for a few days or a month.

Source: http://www.financialexpress.com/economy/gst-impact-on-taxpayers-gstn-chief-navin-kumar-says-35000-registering-every-day/769121/

GSTN portal to be ready for invoice uploading from July 24

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Businesses can start uploading their sale and purchase invoices generated post-July 1 on the GSTN portal from July 24, a top company official said today.

The Goods and Services Tax has kicked in from July 1 and so far, the GST Network, the company handling the IT backbone for the new tax regime, has been facilitating registration of businesses.

“We plan to launch the invoice upload utility on the portal on July 24 so that businesses can come forward and start uploading the invoices on a daily or weekly basis to avoid a month-end rush,” GSTN Chairman Navin Kumar told PTI.

Generating invoices for dealings above Rs. 200 and keeping invoice records in serial number even if maintained manually, are pre-requisites for claiming input tax credit under the GST regime.

The GSTN had last month launched an offline Excel format for businesses to keep their invoice records and from July 24 this Excel sheet can be uploaded on the portal.

Kumar said GSTN would put up a video on its portal to assist businesses in uploading invoices.

Besides, a call centre help desk has been set up to assist taxpayers regarding any query they might have about the new tax regime.

“We have been reaching out to trade and industry associations telling them that those who have about 10,000 invoices a day, they should upload it on GSTN portal on a daily/ weekly basis to avoid last moment rush,” Kumar said.

So far, over 69 lakh excise, VAT and Service Tax assessees have migrated to the GSTN portal and nearly five lakh new registrations have happened under GST.

Under GST, which is a single tax in place of multiple central and state levies such as excise, service tax and VAT, businesses are required to upload on GSTN portal invoices of their trade every month.

Kumar had earlier said the offline Excel tool can upload 19,000 invoices data on the GSTN portal at one go and the process takes just half-a-minute.

So, if businesses which generate about 10,000 invoices a day upload the data on a daily or weekly basis, it would be less cumbersome for them.

While uploading invoices on the GSTN portal, a business would need to mention the invoice number and date, customer name, shipping and billing address, customer and taxpayer’s GSTIN, place of supply and HSN code.

Also, the taxable value and discounts and rates of CGST, SGST and IGST would have to be filled, along with item wise details including description, quantity and price.

Source: http://www.thehindubusinessline.com/economy/gstn-portal-to-be-ready-for-invoice-uploading-from-july-24/article9770819.ece

Taxpayers have to opt for GST composition scheme by July 21

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Small businesses with turnover of up to Rs. 75 lakh have time till July 21 to opt for composition scheme under the Goods and Services Tax regime, GST Network said.

To opt for composition scheme, the taxpayer needs to log into his account at the GST Portal www.gst.gov.in and select ’Application to opt for the Composition Scheme’ under ’Services’ menu, a GSTN statement said.

“Any person who has been granted registration on a provisional basis and has turnover not exceeding Rs. 75 lakh, and who wishes to opt for the composition levy, is required to electronically file an intimation, duly signed or verified through EVC, at the GST portal on or before July 21, 2017,” GSTN Chairman Navin Kumar said.

Under composition scheme, traders, manufacturers and restaurants can pay tax at one per cent, two per cent and five per cent, respectively in the new indirect tax regime.

Businesses opting for composition scheme will see a lesser compliance burden as they will have to file returns only once in a quarter as against monthly returns to be filed by other businesses.

There are over 69 lakh excise, VAT and service taxpayers who have migrated to the GSTN portal for filing returns in the GST regime which ushered in on July 1.

Besides, there are over 4.5 lakh new taxpayers who have registered in the portal. These new registered taxpayers can opt for the composition scheme at the time of registration.

GSTN also clarified that taxpayers who have been given provisional IDs must complete all parts of the enrolment at the GST portal and submit the same along with the required documents with digital signature or EVC.

Once the form is completed and submitted, the enrolled taxpayer will be issued the final Certificate of Registration which would mark completion of migration under GST.

In case an enrolled taxpayer fails to submit the duly filled form with the requisite documents, his provisional registration is liable to be cancelled.

“A period of three months is allowed to complete the enrolment procedure by September 22, 2017. In the interim, they can issue tax invoice using the provisional ID already allotted to them,” Kumar said.

Source: http://www.thehindubusinessline.com/economy/policy/taxpayers-have-to-opt-for-gst-composition-scheme-by-july-21/article9767610.ece

Gujarat’s foray into B2B ecommerce gives big push to small units

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Gujarat government has entered into B2B ecommerce space as it allowed UK-based cloudbuy.com to develop B2B marketplace for accelerating its growth in state business by supporting SMEs and larger organisations via digitalisation.

According to a top official from the industry department, the state plans to give a digital push to the SMEs and large organisations from Gujarat via Business to Business (B2B) ecommerce.

However, Dhananjay Dwivedi, secretary, department of science and technology, Government of Gujarat, said the company had entered into a MoU with the state government.

“Any other ecommerce company that can support business in Gujarat can also come” he added.”With B2B trading opportunities being much bigger and faster now, the businesses of Gujarat will immensely benefit both in terms of revenue growth and reaching out to a far wider audience here in India and globally,” said Nilesh Gopali, cloudBuy, Country Head – India.

He also confirmed that cloudBuy.com has not received any exclusivity from the state government for developing state-focused B2B ecommerce platform.

According to the company, the creation of this new emarketplace will create many jobs within Gujarat through the creation of technical centres to help businesses upload and optimise their content.

Each company that registers for the marketplace will be given the opportunity to list their company details along with products and services online, promoting their business to a much wider audience. cloudBuy.com would also provide full access to support system and reporting to maximise their growth through ecommerce sales.

It would also provide fulfillment services like logistics providers and financial institutions through partners on the platform making it easier for businesses to transact. Accessibility for all users through cell phones on a secure platform will enhance the user experience ensuring trades online.

Source: http://economictimes.indiatimes.com/articleshow/57611242.cms

India knocking at rare club of fast, steady growth economies says Edelweiss

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There are only 28 episodes ever when countries grew at over 6 per cent for 8 years or longer, Edelweiss Securities said in a research note, adding India is entering this rare club.

Indian economy is becoming more efficient through five broad themes — fast and steady rate of growth, market reforms, expanding digital footprint, revival in rural growth and creation of modern infrastructure, says a report.

 

Indian economy is becoming more efficient through five broad themes — fast and steady rate of growth, market reforms, expanding digital footprint, revival in rural growth and creation of modern infrastructure, says a report. “India is growing at a fast pace, largely driven by efficiency gains in doing business, tax collections, infrastructure and rural economy,” it added. There are only 28 episodes ever when countries grew at over 6 per cent for 8 years or longer, Edelweiss Securities said in a research note, adding India is entering this rare club. On landmark reforms, the report said while GST can increase highly productive formal organised employment, bankruptcy code can enhance liquidation and better utilisation of assets. Moreover, there has been a marked improvement in global competitiveness among major emerging markets and 90 per cent of FDI is now coming through the automatic route, replacing hot money, it added.

Regarding digital India, it said that apart from gains from extinguished liability, the real effect of demonetisation has been a repair of banks’ balance sheets and an increase in digital transactions.

An efficient rural India means higher rural income, which in turn would lead to large increase in discretionary spend hence stronger growth in India.

Edelweiss Securities further noted that equities are cheap relative to bonds.

“A comparison of Nifty’s earning yield vs the 10-year government bond yield shows that equities are currently very cheaply priced as compared to debt instruments and we should expect a shift in the allocation of funds from debt to equity,” it said.

The broader market is also showing bullish prospects.

“The number of stocks hitting 52-week highs are rising steadily and the total market cap of all NSE listed stocks (above 200 cr MCAP) is also at a new all-time high; suggesting strong momentum in broader market,” it said.

Source: http://www.financialexpress.com/economy/india-knocking-at-rare-club-of-fast-steady-growth-economies-says-edelweiss/552425/

India’s share of global economy to increase: Lars Heikensten, Executive Director, Nobel Foundation

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“Digitisation is part of our lives and necessary but it does have consequences”.

India’s share of global economy to increase: Lars Heikensten, Executive Director, Nobel Foundation

Lars Heikensten, executive director of the Nobel Foundation, said he expects India’s share of the global economy to increase while commenting on the role of the country in the emerging world order, ahead of the biennial Vibrant Gujarat Global Summit.

“For decades, the western world has been standing up for democracy, science and facts. Now these values are being questioned. Democratic countries like India, which also have a growing role in the world, need to step up. I think the policies of India are important,” he said. “The world needs more of values that India has been building since the 40s.”

The investor summit will for the first time see the participation of a galaxy of Nobel Laureates apart from various heads of state and global corporate leaders. The Nobel Foundation is the institution that manages the Nobel prizes for physics, chemistry, medicine, literature and peace.

Heikensten emphasised the need for adequate infrastructure to connect people to the digital economy. “In my country Sweden, everyone is connected today. With more people being connected in India, you will see people shifting to digital transactions,” he added.

He also addressed the digital divide and the need to bridge this chasm. “Digitisation is part of our lives and necessary but it does have consequences,” he said.

Heikensten has been governor of the Swedish Central Bank and held various positions in the Swedish ministry of finance, including that of director general and head of the economic affairs department.

“There are risks (with digitisation) and IT policies need to address these issues,” he told ET. “This is not something that will solve itself. People have been left behind in the process and I expect we shall see more and more academic debate on how to keep fairly equal, at the same time we have good economic development… The populist movements in the western countries reflect that people are left behind.”

He said that Sweden, for instance, has become less equal over the years.

“This is not the whole story part but an important part of the story,” Heikensten said. “But it is still very equal compared to the United States where there are wider income differentials between people.”

The link between digitisation of the economy and inequality is not a straightforward one. However, he pointed out that this marks the way forward and said that “we will see more and more countries moving towards digitisation as lot less cash is being used now than before.”

He said that India was one of the countries buying notes from Sweden.

Source: http://economictimes.indiatimes.com/articleshow/56533782.cms

Income Tax E-Filing Process – At a glance

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Steps for Income Tax E-Filing:

 

 

  1. Select appropriate type of Return Form – ITR and download appropriate Return Form from https://incometaxindiaefiling.gov.in/
  2. Fill your particulars of name, address. PAN Number, date of incorporation (date of birth, in case of individuals), sources of income and the amounts and other details in the ITR return offline and generate a XML file
  3. Register and create a user id/password. User id is always your PAN number.
  4. Login and click on relevant form on left panel and select “Submit Return”
  5. Browse to select XML file and click on “Upload” button
  6. On successful upload, acknowledgement details would be displayed. Click on “Print” to generate printout of acknowledgement/ITR-V Form.
  7. In case the return is digitally signed, on generation of “Acknowledgement” the Return Filing process gets completed. You may take a printout of the Acknowledgement for your records.
  8. Incase the return is not digitally signed, on successful uploading of e-Return, the ITR-V Form would be generated which needs to be printed by the tax payers. This is an acknowledgement cum verification form. The tax payer has to fill-up the verification part and verify the same.
  9. The e-verification can be done using Aadhar number or through online banking. A duly verified ITR-V form should be submitted with the local Income Tax Office within 15 days of filing electronically. This completes the Return filing process for non-digitally signed Returns.
  10. For any assistance in filing the paper copy of the return please contact the Public Relations Officer of the local Income Tax Office.