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

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

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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/

EPFO’s new enrolment scheme works, 10 million members added in three months

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The government’s idea of including the number of Employees Provident Fund Organisation (EPFO) subscribers to calculate formal jobs is likely to swell the latter’s formal number.

 

For, the PF body has added a little more than 10 million members in the past three months, taking its membership to around 48 mn, from 37 mn on March 31.

 

This has been due to EPFO’s new enrolment scheme. Under it, employers got the opportunity to file declarations for unregistered employees with a nominal fine of Rs 1 per annum. According to data reviewed by Business Standard, the body has added 10,131,453 subscribers under the new scheme, higher than its expectation of 10 mn new ones. Most of the rise has come from urban areas such as Mumbai, Delhi and Bengaluru — Mumbai has added the highest number of subscribers, at 1,287,500.

 

NITI Aayog vice-chairman Arvind Panagariya had earlier said a task force for calculation of employment would use other data sources such as EPFO, National Pension System and other private pension schemes for formalisation of the workforce, beside existing sources like the National Sample Survey Office and labour bureau.

 

The panel is headed by Panagariya himself. It was set up to suggest a revamp of employment data surveys, to ensure timely and reliable data for policy making. There was a view within the government that the current surveys did not provide a real picture on job creation.

 

However, the EPFO subscriber base might only be showing a formalisation of the workforce, not an addition to the job numbers. “As a result of this (our move), workers who earlier were out of the social protection coverage will now get these benefits,” V P Joy, the central PF commissioner, told Business Standard.

 

Source: http://www.business-standard.com/article/economy-policy/epfo-s-new-enrolment-scheme-works-10-million-members-added-in-three-months-117071000045_1.html

GST spawns Rs 20,000 crore business for tax, tech consultants

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

For decades, Sugal & Damani Group focused on lotteries before it entered the online bill payment business with Payworld.

Now, it has become a GST service provider (GSP), an entity that will help businesses register, upload electronic invoices and file on the technology platform, and plans to leverage its network.

Pune-based Vayana Network has been working with small and medium enterprises (SMEs) to arrange funds and has no experience of taxation, but it too has become a GSP and is eyeing business from companies, their vendors as well as standalone SMEs.

Besides GSPs, GST has given birth to another set of entities called ‘application service providers’ or ASPs that will use sales and purchase data from taxpayers and convert it into GST returns for filing online.GST is spawning a $2 billion-3 billion (Rs 13,000 crore-20,000 crore) industry comprising software service providers, ASPs and GSPs, chartered accountants and consulting firms as the entire industry is undergoing business process re-engineering.

SAP and Oracle, the big daddies of the ERP business, may mop up revenues of at least $1 billion (Rs 6,500 crore) over the next two years, industry players say.

Homegrown Tally Solutions, which has close to 11 lakh users of its accounting software, has already got around six lakh subscriptions from businesses, which entitles them to free upgrades and access to all information.

While the cost of software varies between Rs 18,000 and Rs 54,000, each annual subscription fetches the company Rs 3,600 (for a single user) to Rs 10,800 (multiple users).

With 10,000 melas planned in the next one month, the company is out to garner as much business as possible while helping businesses tackle GST, said Tally Systems executive director Tejas Goenka.

Even a smaller player like the newly set up Ginesys is eyeing a turnover of around Rs 100 crore in three years, said co-founder Ashish Mittal. Then, there are the likes of ClearTax, which was set up to file income tax returns. Sensing a huge business opportunity it has expanded into the GST arena with its software and tie-ups with around 10,000 chartered accountants, said ClearTax founder CEO Archit Gupta.

Not surprisingly, companies have hired big time to meet the required demand. SAP and its partners have around 500-600 people working on implementing ERP solutions, business filing, supply chain and the app for filing returns, said Neeraj Athalye, who leads the firm’s GST adoption drive. Cleartax has hired around 400 in the last one year or so.The big four accounting firms too have ramped up. Deloitte’s indirect tax team has around 250 new recruits, while PwC has expanded its pool of CAs and systems executives by 200-250. While the billing for large companies runs into crores, including consulting services, the smaller companies are banking on volumes with some charging a fee of as low as Rs 100-200 a month for filing returns.

GST Council meet clears 5 set of rules, defers e-way bill rule, relaxes deadline for filing returns

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The GST Council on Sunday made the dreaded anti-profiteering clause more palatable specifying a sunset clause of two years even as it relaxed the deadline for filing returns under the goods and services tax (GST) till September

The GST Council on Sunday made the dreaded anti-profiteering clause more palatable specifying a sunset clause of two years even as it relaxed the deadline for filing returns under the goods and services tax (GST) till September. The Council also approved five sets of rules but deferred a decision on the E-Way Bill rule. The GST — a uniform levy across the country — will be rolled out at midnight on June 30, ahead of which the council will meet again. Jammu and Kashmir and Kerala are yet to approve the State GST law.

The GST Council tweaked rates for luxury hotels giving relief to states relying on tourism. State-run lottery tickets will attract a levy of 12% while those run by private players will attract a higher GST of 28%. Rates for hybrid vehicles were not discussed at the meeting, the 17th Council meeting.

The anti-profiteering clause seeks to penalise businesses that do not pass on the benefit of a reduced incidence to customers. Any firm found to be profiteering, will pay a penalty equivalent to the amount of benefits gained under GST but not passed on to customers.

At a press conference, finance minister Arun Jaitley said he hoped the anti-profiteering rule would not be used.

Explaining how the anti-profiteering clause would work, revenue secretary Hasmukh Adhia said the GST implementation committee, a body comprising officers from states and central government, would pass on any complaints that it receives to the Director General of Safegaurd. “The DG of Safeguard will then take about three months to investigate the complaint and send its findings to the anti-profiteering authority,” Adhia explained.

“We may be able to refund the penalty to consumers in the case of commodities that can be tracked. However, for other commodities, the penalty amount will be deposited in the consumer welfare fund as provided under the GST Act,” Adhia added.

The simplified rules for filing returns require a taxpayer to file only a simple, self-certified return —by August 20 for July and September 20 for August. This would summarise inward and outward supplies rather than specify invoice-wise detailed returns as per GST rules. However, assesses must file the return with invoice details in September for both months. These will be matched with the simpler returns filed earlier, and any discrepancy would be liable to a fine, Adhia said.

The FM observed the IT platform—GSTN– was ready. “So far, 65.6 lakh of the 80.91 lakh existing assessees have migrated to the GSTN. This is a reasonably good number given many current taxpayers would be out of GST ambit due to the annual turnover ceiling of Rs 20 lakh,” Jaitley said. The FM added that there was a window of more than 30 days for new businesses to register.

The GST council approved five sets of rules including those relating to advance ruling, appeal and revision, assessment, anti-profiteering and fund settlement.

The anti-profiteering authority will be a five-member body; the chairman will be a secretary- level officer with four joint secretary level officers as members.

With the GST Council divided on the E-way rule—the manner in which consignments moving across states will be tracked–Jaitley said the transient rule would prevail pending a final decision.

Meanwhile, the Council raised the ceiling for hotel rooms attracting the highest tax rate of 28%– rooms costing more than Rs 7,500 per night will now be taxed at 28% compared to Rs 5,000 and above earlier. Similarly, services provided by restaurants in five-star hotels will now also charge 18%, down from 28% earlier. This has brought these restaurants at par with other air-conditioned restaurants.

The Council lowered the annual turnover limit for the composition scheme to Rs 50 lakh for the north-eastern and some other hilly states, at their request. Earlier, the composition limit for all states was increased from Rs 50 lakh to Rs 75 lakh. The composition scheme is applicable only to traders, manufacturers and restaurants.

Source: http://www.financialexpress.com/india-news/gst-council-meet-clears-5-set-of-rules-defers-e-way-bill-rule-relaxes-deadline-for-filing-returns/725238/