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

Directorate set up under CBEC for data analytics and nabbing evaders

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The data analytics and processing coupled with intelligence inputs would inter-alia provide CBEC national and sub-national perspective for policy formulation

The government has set up a new wing under the indirect taxes body to provide intelligence inputs and carry out big data analytics for taxmen for better policy formulation and nabbing evaders.

The Directorate General of Analytics and Risk Management (DGARM) will be under the Central Board of Excise and Customs (CBEC), mainly to use internal and external sources for detailed data mining to generate actionable inputs, the revenue department said in an office memorandum. The DGARM, set up on July 1, coinciding with the roll-out of the GST regime, has four verticals headed by an official of rank of additional director general or principal ADG. It will function as an apex body of CBEC for data analytics and risk management, and report to the CBEC chairman.

Incidentally, the CBEC is to be renamed as the Central Board of Indirect Taxes and Customs (CBIC) after excise duty along with service tax and a dozen other central and state levies were subsumed into GST.

“The data analytics and processing coupled with intelligence inputs would inter-alia provide CBEC national and sub-national perspective for policy formulation. The field formations of CBEC are expected to gainfully and effectively utilise the data and other inputs shared by the DGARM,” the memorandum said.

As part of the DGARM, a National Targeting Centre has been set up, which is responsible for application of a nationally coordinated approach to risk analysis and targeting of risky goods and passengers crossing the borders of the country. “It shall provide 24×7 operational risk interdiction supports to field formations of the CBIC,” it said.

The centre in question will institutionalise coordination with other government departments and other stakeholders for sharing databases, information, intelligence and reports to build risk profile of entities. A Centre for Business Intelligence and Analytics has also been set up and will be responsible for identification of information requirements of the CBEC. It will utilise data feeds from internal sources.

It shall be responsible for providing analytical inputs to support identification, targeting and risk management functions of the National Targeting Centre, the Risk Management Centre for Goods and Services Tax, and the Risk Management Centre for Customs.

The third vertical of the DGARM is the Risk Management Centre for Goods and Services Tax, which will institutionalise mechanism to collect necessary inputs, adopt coordinated approach and share the outcome for risk-based identification for the purpose of scrutiny, audit and enforcement functions.

Besides, the Risk Management Centre for Customs will be responsible for assessment and targeting of risky cargo crossing the borders through sea, air and land. The DGARM will do detailed data mining and analysis to generate outputs for focused and targeted action by field formations and investigation wings of the CBEC.

Source: http://economictimes.indiatimes.com/articleshow/59577530.cms

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

GSTIN display on sign boards must for businesses

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The Goods and Services Taxpayer Identification Number (GSTIN) is a 15-digit number which taxpayers get after registering with the GST Network portal.

Traders and businesses will have to display the GST registration number on their business sign boards and the registration certificate in premises.

Also, composition dealers will have to mention that they are availing the composite scheme and are not entitled to collect taxes from people.

“Every taxable person is required to display his GSTIN number on name board or sign board of business and is also required to display his registration certificate in business premises so that a citizen can easily find out whether a person is registered or not,” a tax official said.

The composition dealer is required to mention in the business premises along with registration certificate that he is not entitled to collect tax from taxpayers.

“That is the legal requirement. So that the citizen can find out whether the person from whom he is buying is entitled to collect tax from him or not,” the official added.

The Goods and Services Taxpayer Identification Number (GSTIN) is a 15-digit number which taxpayers get after registering with the GST Network portal.

Initially, a business is given a provisional ID on logging into the portal and within 3 months the business has to complete the registration process by giving details of business. This provisional ID is then converted to GSTIN.

Revenue Secretary Hasmukh Adhia said that if a business entity does not generate certificate of registration within 90 days then the provisional ID will stand cancelled.

The GST, which subsumes service tax, excise and VAT, have been implemented from July 1.

Source : http://economictimes.indiatimes.com/articleshow/59531590.cms

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/

GST impact: Dismantling of check posts save 24-36 hours of trucking time

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The Goods and Services Tax (GST) is saving fleet owners between 24-36 trucking hours, besides around Rs 7,500 per trip at the tax check posts which have since been dismantled.

The Goods and Services Tax (GST) is saving fleet owners between 24-36 trucking hours, besides around Rs 7,500 per trip at the tax check posts which have since been dismantled, an industry association said on Monday.

“Our quick check has shown that on an average a lorry or truck runs for 10-12 hours a day and should cover a distance of about 2,200 km between, say, Delhi-Chennai in three days.” “However, traversing through different states and braving the stoppages at several check posts of VAT, Octroi, other local taxes it was taking five to six days,” Associated Chambers of Commerce and Industry of India (Assocham) said here in a statement. At least 24-36 hours would easily be saved for these trunk routes after dismantling of the check posts, it said after interacting with the fleet owners and transport intermediaries.

“Besides, the bigger nuisance of corruption at each of the check posts and through various states would have meant an additional expenditure of Rs 5,000-7,500 per trip. That has also been done away with.” “For now, it has come as a big relief for the transporters who say, the ultimate advantage is accruing to the customers and to the trade and manufacturing value supply chain,” Assocham said.

The interaction with the fleet owners revealed that before start of a trip, the crew, comprising driver(s) and helpers was given “out of pocket” or “petty cash” of at least Rs 10,000 for the trunk routes of Delhi-Mumbai, Delhi-Kolkata, Mumbai-Jaipur, Ahmedabad-Delhi, Bengaluru- Delhi routes and so on. On completion of the trip, the driver would give his account that would include the expenses at each of the forced halt points.

Assocham hoped that further improvement would be done in this direction in terms of improving other infrastructure. “For instance, the ‘no entry’ traffic restrictions can be done away if high class dedicated bye-passes are constructed around the major cities so that the truckers can ply seamlessly,” Assocham Secretary General D.S. Rawat said.

Improvement in freight movement through road and rail would not only result in a huge cost saving for the trade and industry but would also take India quite high on the global index of Ease of Doing Business, the chamber said.

Source: http://www.financialexpress.com/economy/gst-impact-dismantling-of-check-posts-save-24-36-hours-of-trucking-time/757083/