Millions of firms not ready to file returns under GST: Kumar

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0
Millions of companies are still not ready to file their first returns under the new GST ahead of an 20 August deadline, says Navin Kumar. Photo: Bloomberg

Millions of companies in India are still not ready to file their first returns under the new goods and services tax (GST) ahead of an 20 August deadline, a top official told Reuters, urging them not to leave things to the eleventh hour.

Navin Kumar, chairman of the GST Network, also said barely half of the 34 service providers accredited to help firms bulk-file invoices online had received approval to go live.

Yet he gave an assurance that the huge IT back end that is designed to crunch up to 3 billion invoices a month and calculate companies’ taxes would be stable, even if there is a last-minute rush to file.

“It will not crash,” he told Reuters in an interview. “We are working on the assumption that 50% of the people will come on the last day.”

Billed as India’s biggest-ever tax reform, the GST has replaced a slew of federal and state levies. It has also cleared barriers between India’s 29 states, uniting its 1.3 billion people into a common market for the first time.

Yet the complexity of the tax — which has main rates of 5, 12, 18 and 28% and multiple exceptions — has raised concerns that companies will struggle to comply and file their monthly returns on time.

Even before the GST filings kick in, business surveys showed both the services and manufacturing sectors contracting at their fastest rate in years, heralding a likely dip in indirect tax revenues.

The government has allowed firms to file simplified, self-assessed GST returns by 20 August for the month of July, when the tax was launched.

They will have to file complete returns in early September that itemise and reconcile every single sales invoice under a regime that, by comparison with other countries, is labour- and data-intensive.

More than 7 million existing taxpayers have activated accounts on the GST’s portal — although around a third have yet to complete the form-filling required to file a full tax return, Kumar said.

Another 1.3 million new firms have registered to pay GST.

He waved away concerns that companies would not be able to cope, saying that those used to paying value-added tax —now abolished — were used to online filing.

Although companies can upload invoices directly into the GST portal, big businesses will rely on a new breed of service provider whose applications can format, reconcile and upload invoices in bulk.

Of a first batch of 34 services providers that have been accredited, only 18 have received permission to go live. “I have been urging them to speed up their work,” Kumar said.

Source: http://www.livemint.com

Income Tax Return Filings Grew 25%, Says Government

by | posted in: Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0
Income tax collection showed a surge. The number of returns filed as on August 5, 2017, grew to 2.82 crore as compared to 2.26 crore last year, the government said.

The number of Income Tax Returns (ITRs) filed for 2016-17 year grew by 25 per cent to 2.82 crore, as increased number of individuals filed their tax returns post demonetisation, the tax department said today. The growth in ITRs filed by individuals is 25.3 per cent with over 2.79 crore returns having been received up to August 5 as against over 2.22 crore returns filed in the corresponding period last fiscal.

“As a result of demonetisation and Operation Clean Money, there is a substantial increase in the number of Income Tax Returns (ITRs) filed,” an official statement said. The total number of returns filed as on August 5 stands at over 2.82 crore as against over 2.26 crore filed during the corresponding period of 2016-17. This was an increase of 24.7 per cent compared to growth rate of 9.9 per cent in the previous year.

The last date for filing of income tax returns by individuals and HUFs, who need not get their accounts audited, was August 5.

The finance ministry said that the number of ITRs filed showed that substantial number of new tax payers have been brought into the tax net subsequent to demonetisation. The effect of demonetisation is also clearly visible in the growth in direct tax collections, it said.

Advance tax collections of personal income tax (other than Corporate Tax) as on August 5 showed a growth of about 41.79 per cent over the corresponding period in 2016-17. Personal Income Tax under Self Assessment Tax (SAT) grew at 34.25 per cent over the corresponding period in 2016-17.

“The above figures amply demonstrate the positive results of the government’s commitment to fight the menace of black money,” it added.

The Central Board of Direct Taxes (CBDT), which is the apex policy making body of the I-T department, is committed in its resolve to eradicate tax evasion in a non-intrusive manner and widening of tax base.

To fight the menace of black money, the government had on November 8, 2016, demonetised old 500 and 1000 rupee notes and asked holders of such notes to deposit in bank accounts. The I-T department had then launched operation clean money to clamp down on unaccounted money funnelled into bank accounts post demonetisation.

 

Source: http://www.ndtv.com/business/notes-ban-impact-income-tax-return-filings-grew-25-collections-jump-1734604

5 lakh businesses opt for composition scheme under GST: Hasmukh Adhia

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0
“The figure of dealers opting for composition in GST is 5.12 lakh up to 30th (July). The last date for opting is August 16,” Revenue Secretary Hasmukh Adhia tweeted.

Five lakh businesses have opted for the GST composition scheme, which allows them to pay taxes at a concessional rate and makes compliance easy, the government said today.

Nearly 71 lakh excise, service tax and VAT assessees have migrated to the GST Network (GSTN) till July 25. Besides, another 12 lakh new registrations came about under the Goods and Services Tax (GST) regime.

“The figure of dealers opting for composition in GST is 5.12 lakh up to 30th (July). The last date for opting is August 16,” Revenue Secretary Hasmukh Adhia tweeted.

The composition scheme is an alternative method of levy of tax designed for small taxpayers whose turnover is up to Rs 75 lakh — Rs 50 lakh in the case of eight north-eastern states and the hilly state of Himachal Pradesh. The objective behind it is to bring simplicity and reduce the compliance cost for small taxpayers.

The scheme is optional under which manufacturers other than those of ice cream, pan masala and tobacco products have to pay a 2 per cent tax on their annual turnover. The tax rate is 5 per cent for restaurant services and 1 per cent for traders.

As per the Central GST Act, businesses are eligible to opt for the composition scheme if a person is not engaged in any inter-state outward supplies of goods and not into making any supply of goods through an electronic commerce operator who is required to collect tax at source.

While a regular taxpayer has to pay taxes on a monthly basis, a composition supplier is required to file only one return and pay taxes on a quarterly basis.

Also, a composition taxpayer is not required to keep detailed records that a normal taxpayer is supposed to maintain.

Source: http://economictimes.indiatimes.com/articleshow/59844611.cms

77.5L traders registered under GSTN till July 18

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0

The Government on Friday said as many as 77.5 lakh traders are registered on GSTN and help desks have been set up in every commissionerate to facilitate filing of tax return. “Till July 18, 2017, the total number of GSTIN (Goods and Services Taxpayer Identification Number) registration is 77,55,416,” Minister of State for Finance Santosh Kumar Gangwar said in a written reply to the Lok Sabha.

He further said Internet is not required for doing or conducting business, but it would be required only for the purpose of filing of returns under the GST. “The Government has ensured that the return filling process is made convenient for all taxpayers by setting up help desks in every commissionerate and by appointing GST Suvidha Providers,” he said.

Gangwar in another reply said it is difficult to predict whether corruption will be wiped out, but the implementation of GST will definitely bring about transparency in business operations related to taxation. The implementation of GST in itself is expected to have a positive impact on the overall growth of the economy, he said, adding that it is also expected to have a positive impact on the ease of doing business and making India an even more attractive destination for foreign investments.

Various studies, including that from NCAER, have estimated that growth in GDP to be around 1-2 per cent due to the implementation of GST.Replying to another question, Gangwar said, since GST has been implemented only with effect from July 1, it cannot be stated that it helps to bring out black money at this moment.However, he said, the provision in SGST, CGST, UTGST and IGST have a self policing mechanism.

Source: Daily Pioneer

GSTN portal to be ready for invoice uploading from July 24

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0

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

GST impact on companies: Gloom and doom vanishes, India Inc at ease

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs | 0
Contrary to gloomy predictions, the roll-out of the goods and services tax (GST) has been a much smoother affair and the industry has adapted to it without major hassles.

Contrary to gloomy predictions, the roll-out of the goods and services tax (GST) has been a much smoother affair and the industry has adapted to it without major hassles. As FE spoke to a cross-section of the industry, several government officials and the administrative and field levels, tax experts and analysts, some things came out clearly: The gap between the country’s existing indirect tax assessee base and those registered on the GST Network has almost vanished, indicating that even large sections of small businesses that had the option of composition scheme decided to join the GST bandwagon. Grouses over the compliance burden that the new tax has imposed on small businesses are fast disappearing except for the cavils of those not wanting to report their entire transaction volume for fear of increased income tax liability. There are of course some niggling issues like how to compute the tax liability under the reverse charge mechanism but these too are getting resolved.

FE spoke to Delhi-based companies consisting of electronics dealers, auto parts dealers, small chartered accountant (CA) firms among others. While most of the businesses were VAT assessees in the previous era, the CA firm registered on the GSTN portal as a first-time taxpayer.

“Migrating to GSTN was a simple process that only took ten minutes,” Nitin Gupta of Siyaram Bros, a company sells automobile parts to retailers across the country. Gupta said with over `30 crore in annual turnover, his company has had a smooth ride in the first ten days of the new indirect taxation regime, that marks a giant leap towards a one-nation- one-tax regime. Although, businesses have often stated that filing returns in GST would be complicated, Gupta said that most of the processes are similar to what companies were doing under the VAT system. “We are still a month away from filing the first return but I don’t see a problem,” he said.

Govind Kumar of Baba Computers and Sandeep Mittal of Mittal Sandeep and Associates, a CA firm, concurred.

For them, the GSTN registration did not involve any glitches. Both the companies had been using accounting and tax software from Tally, and have now switched to GST-enabled version of the same. The software solution is expected to cost about `11,000 per year.

Gupta, however, added that those retailers the company deals with have been in state of panic largely due to lack of awareness. The company expects smooth flow of input tax credits as it buys from big businesses who are expected to be GST-compliant. “Some of the retailers who we sell to may not be ready, which could impact our sale volume,” Gupta said.

Mittal, who runs the CA firm, said that most of his clients were assessees before and have migrated to GSTN without a hiccup. Among other issues, his firm has advised small businesses on whether to opt for general GSTN registration or become a taxpayer under composition scheme.

The scheme allows easier compliance for certain businesses with annual turnover of less than Rs 75 lakh. However, according to the law, firms under the scheme can neither avail input tax credit nor supply to other states.

“Most of my client deal with inter-state supplies and hence they aren’t eligible for the composition scheme so far,” Mittal said. He added that he has advised a few firm to opt for the scheme based on a cost-benefit analysis but even these businesses are keen to avail input tax credits.

Speaking about the the issues faced by his business, Gupta admitted that he wasn’t quite clear about the reverse charge mechanism and how to deposit tax collected under it with the government at the time of filing returns.

According to GST law, a recipient is required to collect and deposit taxes under reverse charge mechanism for certain services including transportation. Of the 81 lakh existing taxpayers, 68 lakh have migrated to GSTN while nearly 2 lakh new taxpayers have also registered on the portal at the end of June. The GST tax base appearing smaller than in the previous regime is a misnomer. Earlier, a large section of the taxpayers needed to register seperately with the Centre (for excise, countervailing duty on imports and service tax) and states (for VAT). The GST has removed these duplications.

Source: http://www.financialexpress.com/economy/gst-impact-on-companies-gloom-and-doom-vanishes-india-inc-at-ease/758103/