10 days to go; GSTN set for last minute rush on slow pace of returns filing

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With barely 10 days left for goods and services tax (GST) assessees to file summarised interim returns, the GST Network (GSTN), the IT back end for the indirect tax regime, hasn’t yet started witnessing high-frequency traffic, indicating a possible last-minute rush. Till August 5, nearly 87 lakh taxpayers had registered on the GSTN portal as taxpayers under GST.

With barely 10 days left for goods and services tax (GST) assessees to file summarised interim returns, the GST Network (GSTN), the IT back end for the indirect tax regime, hasn’t yet started witnessing high-frequency traffic, indicating a possible last-minute rush. “We have just 16,000 returns till August 8 while there are 87 lakh businesses registered with us,” GSTN chairman Navin Kumar told FE on Wednesday. However, he added that the back end was equipped to handle even a last-minute rush. “Half of the people might come on the last day,” he said, attributing the low traffic on the portal so far to assessees’ behaviour pattern.

Only a little over half of the registrants on GSTN have so far completed the process by filling up part B of the registration form.

The interim return, GSTR 3B, requires taxpayers to provide a summary of outward sales, purchases, input tax credit demand and tax liability. The window for filing these returns commenced on August 5 and it will remain open till August 20. The GST Council had earlier postponed the requirement for filing full-fledged returns to September, and allowed the taxpayers to file interim return for July and August, in a bid to reduce their initial hassles.

Kumar, however, told FE that not all of the 16,000 taxpayers had completed the return filing process as many are yet to pay the tax. “The taxpayers have come to the site and saved the relevant data on the portal but not submitted it as they need to first pay the tax before submission, which hasn’t happened,” Kumar said .

He admitted that the the traffic on the portal had been slow thus far, and urged the assessees to not wait for the last day to file returns. However, he assured that the GSTN system was robust enough to handle the heavy traffic it might experience closer to the last date.

“We have designed the system keeping the possible deluge of taxpayers in the final hours as our study suggests that a very large number of taxpayers sign up on the last two days of the deadline,” Kumar said.

Additionally, businesses have the option of filing return with the help of GST suvidha providers (GSPs). GSTN has authorised 34 such firms to upload data onto the portal on behalf of taxpayers. However, only 18 such GSPs have been able to connect to the GSTN servers for filing the interim returns.

“I have been urging them to speed up their work,” Kumar said about GSPs that are yet to go live.

Till August 5, nearly 87 lakh taxpayers had registered on the GSTN portal as taxpayers under GST. Of this, nearly 71 lakh businesses have migrated from earlier VAT or central excise or service tax regime while 16 lakh new taxpayers too have registered with the portal. What could further compound the problem is the incomplete registrations submitted by the registrants. GSTN had earlier said that over 30% of the firm registered on the portal had not completed the second form. This would prevent these businesses from filing returns.

Source: Financial Express

Biz can file returns, pay taxes for July on GSTN portal

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Businesses can start filing their first tax return under the new Goods and Services Tax (GST) regime as the GST Network has started the facility for return filing and paying taxes on the portal.

“The window for filing GSTR–3B has opened on August 5 and is fully functional now. Taxpayers can log into their account at the GST Portal and file their GSTR–3B return any time. They can also make tax payment using internet banking at the portal,” Navin Kumar, GSTN Chairman, said.

The GST returns for July and August will be filed on the Goods and Services Tax Network (GSTN) portal by filling up GSTR 3B form in which the taxpayer needs to provide consolidated details of outward supplies and input credit.

The taxpayer has to file a summary of self-assessed liabilities, input tax credit (ITC) and details of tax payment.

The last date of the filing the GSTR–3B for July 2017 is August 20, 2017 and the same for the month of August 2017 is September 20.

While filing their tax retuns in the GSTR–3B, a taxpayer has to provide details in three sections . In the first section, the summary details of liabilities on outward supplies and inward supplies subject to reverse charge including tax paid on zero-rated supplies are to be provided. Also, the taxpayer has to give details of interstate supplies and the integrated goods and services tax (IGST) paid.

In the second section, the taxpayer has to declare self-assessed ITC available, ITC reversals and ineligible ITC. In the third section, the taxpayer has to declare the details of payment of tax with accumulated ITC and/or cash available in cash ledger.

“The taxpayer is required to file his return by electronically signing either using DSC (compulsory for companies) or through Electronic Verification Code (EVC) sent on taxpayer’s registered mobile,” GSTN said in a statement.

Later, when the taxpayer files GSTR 1 and GSTR 2, the details furnished in GSTR–3B would be compared with the details generated from the declarations in GSTR 1 and GSTR 2 and in case of short payment of tax, the taxpayer will have to pay any additional amount along with interest through GSTR 3, it added.

Over 71.30 lakh excise, service tax and VAT payers have migrated to the GSTN portal and over 15 lakh new assessees have registered on the portal.

The final GST returns for July will have to be filed by these businesses by September 5 instead of August 10. Companies will have to file sale invoice for August with GST Network by September 20 instead of September 10 earlier.

The sales returns for September will have to be filed by October 10.

Source: http://www.thehindubusinessline.com/economy/biz-can-file-returns-pay-taxes-for-july-on-gstn-portal/article9807490.ece

Income Tax Return Filings Grew 25%, Says Government

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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

Direct tax collection rises fastest since 2013-14

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The Income Tax Department’s time series data of direct taxes for 2016-17 estimates the government has collected ₹8,49,818 crore as income tax on individuals and businesses, recording a 14.5 per cent growth, the highest rise since 2013-14.

Personal income taxes rose 21.4 per cent, but taxes on corporate incomes grew more slowly at 7 per cent.

The biggest rise was reported under the head of ‘other direct taxes’, which includes collections on account of Income Declaration Scheme 2016 and Pradhan Mantri Garib Kalyan Yojana 2016, schemes for declaring previously undisclosed income. Collections under this head is estimated to have risen 1,348 per cent to ₹15,624 crore.

The sharper rise in personal income taxes has also meant its share in the direct tax collection has increased to over 40 per cent for the first time since 2002-03 and the share of taxes on corporate incomes have fallen below 60 per cent. These estimates are based on provisional data, which the department has extracted from Online Tax Accounting System (OLTAS) and Principal Chief Controller of Accounts under the Central Board of Direct Taxes, and are bound to be revised after the returns for the last fiscal year is reconciled.

Saturday August 5 was the last day for filing of returns by those who are not required to get their accounts audited. Others can file their returns before March 31, 2018, for incomes earned in 2016-17.

Total tax collection

The growth in direct tax collections notwithstanding, its share in total tax collection has fallen below 50 per cent for the first time in 10 years. The share of direct taxes in the total taxes was estimated at 49.7 per cent for 2016-17, after staying well above 50 per cent between 2007-08 and 2015-16. This reversal in trend may be attributed to increase in collection under service tax.

The time series data also estimates that the gross tax receipts before reducing refunds made through the year rose 17 per cent to ₹10,12,506 crore, the highest jump seen since 2010-11. This included a 24 per cent jump in self-assessment tax (a bulk of which is taxes paid by unincorporated businesses), 14 per cent rise in tax deducted at source (TDS) and 15 per cent increase in advance tax payments.

Incidentally, TDS growth has slowed from 22 per cent reported for 2015-16, while advance tax payments growth has risen from 9 per cent reported then. TDS accounted for 36 per cent of the taxes collected in the last fiscal year and advances taxes accounted for 41 per cent. Income tax laws require a bulk of the taxes on incomes of individuals and businesses to be paid in advance on a quarterly basis.

The Income Tax Department has estimated the number of assesses for 2016-17 at 6.27 crore, of which about 95 per cent or 5.93 crore were individual assessees. The number of assessees grew just about 2 per cent from 2015-16.

On State-wise basis, Maharashtra continued to contribute a bulk of the direct taxes, accounting for about 37 per cent of the collection. Delhi accounted for 12.8 per cent of the taxes collected and Karnataka about 10.1 per cent.

Source: http://www.thehindubusinessline.com/economy/direct-tax-collection-rises-fastest-since-201314/article9805948.ece

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

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“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

Businesses can start filing July returns on GSTN from August 5

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To make compliance easy for businesses, the GST Council has allowed businesses to initially file their returns on self-assessment basis in the first two months of the GST rollout.

The first tax returns under the new Goods and Services Tax (GST) regime can be filed from Saturday and the facility will remain open till August 20, GST Network CEO Navin Kumar said today.

Businesses can start filing their first GST returns and pay taxes for July on the portal of GST Network — the IT infrastructure provider for the new indirect tax regime, beginning August 5, he told PTI here.

To make compliance easy for businesses, the GST Council has allowed businesses to initially file their returns on self-assessment basis in the first two months of the GST rollout.

So, the GST returns for July and August will be filed on the Goods and Services Tax Network (GSTN) portal by filling up GSTR 3B form.”We will start the facility of filing interim return form GSTR 3B by August 5 and any registered entity who has transacted business in July will have to file the return by August 20,” Kumar told PTI.

GSTN has tied up with 25 agency banks authorised by the RBI to collect taxes, he said.

“We have tied up with all major banks, both private and public. The facility for tax payment is already on and Integrated GST is being collected. Along with filing of returns by August 20, payments for central and state GST will also come in,” said Kumar, in-charge of the biggest technology backbone created for the new indirect tax regime.

Over 71.30 lakh excise, service tax and VAT payers have migrated to the GSTN portal with 13 lakh fresh registrations.

The final GST returns for July will have to be filed by these businesses by September 5 instead of August 10.

Companies will have to file sale invoice for August with GST Network by September 20 instead of September 10 earlier. The sales returns for September will have to be filed by October 10.

GST Impact: Undue profit of over Rs 1 crore to come under authority’s lens

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It will take two-three months time to gauge whether the benefits of GST are being passed on to consumers. By then, the authority would be put in place

The proposed anti-profiteering authority under the new GST regime will take up for scrutiny only those cases that have mass impact and those where undue profit of more than Rs 1 crore has been earned, a senior government official said. A five member National Anti-Profiteering Authority, headed by a secretary-level officer, will be set up soon to keep a tab on businesses that have not passed on to consumers the benefit of lower tax rates under the Goods and Services Tax (GST) regime. “It will take two-three months time to gauge whether the benefits of GST are being passed on to consumers. By then, the authority would be put in place,” the official told PTI. As per the three tier structure — the GST Implementation Committee (GIC) will receive complaints and those which are state specific and involving smaller amounts will be transferred to the state screening committee.

Other cases will be referred to the Directorate General of Safeguards who will finish investigation within 3 months and send the findings to the anti-profiteering authority, which will pass an order in another 3-months time. “The issues which have a national or mass impact will be taken up by the authority. There may be many small cases which would be coming to the GIC, but only those cases where the financial implication is more than Rs 1 crore would be taken up by the authority. Rest would be transferred to the state screening committee,” the official said. ADG Safeguards will act as Secretary to the National Anti-Profiteering Authority and will coordinate between the authority and the DG Safeguards office, the official added.
The Central Board of Excise and Customs (CBEC) last week appointed Samanjasa Das as the Additional Director General (ADG) Safeguards in the Directorate General of Safeguards.

Das was ADG in the Directorate General of Central Excise Intelligence (DGCEI). In the three-tier structure for monitoring anti- profiteering, the GST implementation committee, including four officers each from the Centre and states and one officer from the GST Council, will first receive the complaints. Thereafter, DGS, which has the power to issue summons, will conduct investigation and give its findings to the authority. The anti-profiteering authority, if it finds that a company has not passed on the GST benefits, will either direct it to pass on the benefits to consumers or if the beneficiary cannot be identified will ask the company to transfer the amount to the ‘consumer welfare fund’ within a specified timeline. The authority will have the power to cancel registration of any entity or business if it fails to pass on to consumers the benefit of lower taxes under the GST regime, but it would probably be the last step against any violator.

According to the anti-profiteering rules, the authority will suggest return of the undue profit earned from not passing on the reduction in incidence of tax to consumers along with an 18 per cent interest, as also impose penalty. A five member committee, headed by Cabinet Secretary P K Sinha, comprising Revenue Secretary Hasmukh Adhia, CBEC Chairman Vanaja Sarna and chief secretaries from two states, will soon finalise the Chairman and members of the authority. It will be in existence for just two years unless the GST Council extends the tenure. The chairman will be paid a monthly salary of Rs 2.25 lakh plus other allowances and benefits, as are admissible to a central government officer holding posts carrying the same pay. Technical members will be paid a monthly salary of Rs 2,05,400. The chairman and members will hold office for a term of two years or until the age of 65-years, whichever is earlier.

Source: http://www.financialexpress.com/economy/undue-profit-of-over-rs-1-crore-to-come-under-gst-authoritys-lens/775391/