GOODS AND SERVICE TAX

  • INDIA
  • GOODS AND SERVICE TAX

What is a Provident Fund Return?

The Goods and Services Tax (GST) is a levy on goods and services utilized in India. This indirect tax has superseded various other indirect taxes within the country, including excise duty, VAT, and services tax. The implementation of GST commenced on July 1, 2017, following the enactment of the Goods and Service Tax Act by the Indian Parliament on March 29, 2017.

Taxable person under GST

A 'taxable person' as defined by the GST Act refers to an entity engaged in business operations in India, necessitating registration under the GST Act. This encompasses a diverse range of entities, including individuals, Hindu Undivided Families (HUFs), companies, partnerships, Limited Liability Partnerships (LLPs), Associations of Persons (AOPs) or Bodies of Individuals (BOIs), corporations, government companies, foreign entities incorporated under foreign laws, co-operative societies, local authorities, governments, trusts, and artificial juridical persons.

GST REGISTRATION TURNOVER LIMIT

Securing GST registration is a discretionary choice open to any individual or entity, irrespective of their turnover. Nevertheless, it becomes compulsory once the volume of goods or services sold surpasses a designated turnover threshold.

For service providers, GST registration is mandatory if their aggregate turnover in a year exceeds Rs. 20 lakhs. In special category states, this threshold is reduced to Rs. 10 lakhs.

Regarding goods suppliers, as outlined in notification No.10/2019, those exclusively engaged in the supply of goods must secure GST registration if their aggregate turnover exceeds Rs. 40 lakhs annually. To meet the Rs. 40 lakhs turnover limit, specific conditions must be fulfilled:

The supplier should refrain from providing any services.

The supplier should not be involved in intra-state supplies within certain states.

The supplier should not be engaged in the supply of specific items such as ice cream, pan masala, or tobacco.

Failure to comply with these conditions mandates GST registration when turnover reaches Rs. 20 lakhs and Rs. 10 lakhs in special category states.

Special category states, including Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand, have distinct turnover thresholds.

The crucial determinant, aggregate turnover, is computed as follows: (Taxable supplies + Exempt Supplies + Exports + Inter-State Supplies) – (Taxes + Value of Inward Supplies + Value of Supplies Taxable under Reverse Charge + Value of Non-Taxable Supplies). This computation, anchored in the PAN, necessitates the amalgamation of turnover from various business locations.

Types of GST Registration

Various types of GST registration exist, such as regular, casual taxable persons, non-resident taxable persons, and eCommerce operators. Irrespective of turnover, those falling under the categories of casual taxable persons, non-resident taxable persons, and eCommerce operators are mandated to secure GST registration.

Casual Taxable Persons

As per the GST Act, a casual taxable person refers to someone who irregularly provides goods or services in a State or Union territory without a fixed place of business. This includes individuals engaged in temporary businesses at events like fairs, exhibitions, or seasonal ventures.

Non-resident Taxable Persons

Under GST, a non-resident taxable person (NRI) encompasses any person, business, or not-for-profit entity supplying goods or services without a fixed place of business or residence in India. Consequently, foreign individuals, businesses, or organizations supplying goods or services to India fall within the non-resident taxable person category, necessitating compliance with all GST regulations in India.

E-Commerce Operators

An electronic commerce operator is defined as any person managing a digital or electronic facility or platform for electronic commerce. Therefore, anyone selling through the internet is considered an eCommerce Operator, requiring GST registration irrespective of their business turnover.

What is GSTIN?

GSTIN, which stands for Goods and Services Tax Identification Number, is assigned to entities with a GST registration. It comprises 15 characters and is generated based on the PAN (Permanent Account Number) and the State of the applicant. Specifically, the initial two digits of the GSTIN denote the State Code, while the subsequent 10 digits signify the PAN of the applicant.

REGISTERED OFFICE ADDRESS CHANGE

(Within state)

Download GST Registration Certificate

The GST Certificate is issued to individuals who have successfully registered under GST. It is mandatory for those holding a GST registration certificate to prominently display it at their place of business. Obtaining the GST certificate is a straightforward process through the GST Portal. By logging in to the GST Account and navigating to User Services, users can click on View / Download Certificate to access and download their GST registration certificate.

Voluntary GST Registration

Individuals or entities aspiring to supply goods or services have the option to obtain GST registration voluntarily, regardless of their business turnover. Opting for voluntary GST registration not only enables businesses to avail Input Tax Credit but also facilitates the issuance of GST bills to customers.

Penalty for NOT Obtaining GST Registration.

Penalty for Non-Compliance with GST Registration:

Individuals or entities aspiring to supply goods or services have the option to obtain GST registration voluntarily, regardless of their business turnover. Opting for voluntary GST registration not only enables businesses to avail Input Tax Credit but also facilitates the issuance of GST bills to customers.

Documents Required for GST Registration

  • ✓ PAN of applicant
  • ✓ Aadhar Card
  • ✓ Address Proof of business
  • ✓ Proof of business or registration
  • ✓ Identity and Address Proof of Directors with photographs
  • ✓ Bank Account Statement or cancelled Cheque
  • ✓ Authority Letter
  • ✓ Digital Signature (not required in proprietorship firm)

Need and Advantages of GST Registration

Acquiring GST registration offers various advantages to businesses, which include:

01

Formal Recognition

GST registration establishes a business as a legitimate supplier of goods or services, bolstering its credibility and standing in the market.

02

Tax Collection Authority

Registered businesses gain the legal authority to collect taxes from customers, ensuring compliance with tax regulations and minimizing the risk of penalties.

03

Input Tax Credit Utilization

Registered businesses can claim input tax credit for taxes paid on purchases, effectively reducing their overall tax liability and enhancing financial efficiency.

04

Streamlined Input Tax Credit Flow

GST registration facilitates a smooth flow of input tax credit from suppliers to recipients nationwide, contributing to the establishment of a unified and efficient tax system.

These benefits underscore the importance of GST registration for businesses, enabling them to operate legally, expand their market presence, and optimize their tax responsibilities.

GST RETURN FILING

What is GST return filing?

Businesses enrolled under the GST framework are obligated to submit returns periodically—monthly, quarterly, or annually—depending on their business structure. This procedural obligation involves furnishing comprehensive details concerning sales, purchases, and associated tax transactions. The advent of a comprehensive income tax system, such as GST in India, has seamlessly integrated taxpayer services, aligning the processes of registration, return filing, and compliance.

Individual taxpayers participating in the GST return filing process must complete four essential forms: returns for supplies, returns for purchases, monthly returns, and annual returns. Each form serves a distinct purpose, ensuring a thorough and accurate representation of financial activities.

Regardless of the nature of business activity, sales volume, or profitability, entities possessing valid GST registration are compelled to fulfill GST return obligations. This mandate extends even to dormant businesses with valid GST registration, underscoring the all-encompassing nature of the return filing process.

A GST return functions as a pivotal document, encapsulating all income and expenditure that a taxpayer must openly disclose to the tax administrative authorities. This commitment to regular and precise GST return filing not only ensures compliance but also contributes significantly to enhancing the overall transparency and efficiency of the taxation system in India.

ELIGIBILITY CRITERIA

Who is liable to file the GST returns?

Any individual or entity possessing a valid Goods and Services Tax Identification Number (GSTIN) is obligated to file GST returns.

Individuals or entities whose annual turnover surpasses Rs. 20 lakh are required to obtain GST registration and file GST returns compulsorily.

In specific states classified as Special States, the mandatory annual turnover limit for obtaining GST registration and filing returns is reduced to Rs. 10 lakh.

What are the different types of GST registration in India?

01

GSTR 1

  • ✓ Records details of taxable goods and/or services supplied outward.
  • ✓ Filing Frequency: Monthly or Quarterly (if opted under the QRMP scheme).

02

GSTR 3B

  • ✓ Presents a summarized report, including outward supplies, input tax credit, and taxpayer's tax payments.
  • ✓ Filing Frequency: Monthly or Quarterly.

03

CMP 08

  • ✓ Serves as a combined statement and challan for tax payment by composition scheme taxpayers (under Section 10 of the CGST Act).
  • ✓ Filing Frequency: Quarterly.

04

GSTR 4

  • ✓ Tailored for taxpayers registered under the composition scheme (Section 10 of the CGST Act).
  • ✓ Filing Frequency: Annually.

05

GSTR 5

  • ✓ Geared towards returns from Non-resident taxable persons.
  • ✓ Filing Frequency: Monthly.

06

GSTR 6

  • ✓ Utilized by input service distributors to distribute eligible input tax credit.
  • ✓ Filing Frequency: Monthly.

07

GSTR 7

  • ✓ Intended for filing by government authorities.
  • ✓ Filing Frequency: Monthly.

08

GSTR 8

  • ✓ Focuses on detailing supplies facilitated through e-commerce operators, including tax collected at the source.
  • ✓ Filing Frequency: Monthly.

09

GSTR 9

  • ✓ Annual return catering to normal taxpayers.
  • ✓ Filing Frequency: Annually.

10

GSTR 9

  • ✓ Involves a certified reconciliation statement.
  • ✓ Filing Frequency: Annually.

11

GSTR 10

  • ✓ Reserved for taxpayers post-GST registration cancellation or surrender.

12

GSTR 11

  • ✓ Captures details of inward supplies for entities with a Unique Identification Number (UIN) claiming a refund.
  • ✓ Filing Frequency: Monthly.

Each form corresponds to specific transactions and entities, featuring diverse filing frequencies, ensuring a systematic and thorough approach to GST return filing.

What are the due dates for filing GST returns?

01

GSTR 1

  • ✓ Deadline: The 11th of the subsequent month.

02

GSTR 3B

  • ✓ Deadline: The 20th of the subsequent month.

03

CMP 08

  • ✓ Deadline: 18th of the month succeeding the quarter of the specific fiscal year.

04

GSTR 4

  • ✓ Deadline: 18th of the month succeeding the quarter.

05

GSTR 5

  • ✓ Deadline: 20th of the subsequent month.

06

GSTR 6

  • ✓ Deadline: 13th of the subsequent month.

07

GSTR 7

  • ✓ Deadline: 10th of the subsequent month.

08

GSTR 8

  • ✓ Deadline: 10th of the subsequent month.

09

GSTR 9

  • ✓ Deadline: 31st December of the Fiscal year.

10

GSTR 10

  • ✓ Deadline: Within 3 months of the date of cancellation or the date of cancellation order, whichever is earlier.

11

GSTR 11

  • ✓ Deadline: 28th of the month following the month for which the statement was filed.

These due dates ensure a timely and organized submission of GST returns, facilitating compliance with the regulatory framework

What are the due dates for filing GST returns?

Late filing of GST returns incurs a penalty of Rs. 100 per day per Act, resulting in a total of Rs. 200 per day. This penalty is applicable under both CGST (Central Goods and Services Tax) and SGST (State Goods and Services Tax).

In addition to the late fee, interest is charged at the rate of 18% per annum on the outstanding tax amount. This interest is calculated from the day after the due date of the return until the date of payment.

Failure to file GST returns can lead to the blocking of subsequent returns. This means that taxpayers will be unable to file their future returns until they have cleared their pending returns and paid the applicable penalties and interest.

For offenses related to non-payment or short payment of taxes without the intention of fraud or tax evasion, a penalty of 10% of the tax amount due is levied. This penalty is subject to a minimum of Rs. 10,000.

In cases where there is a clear intention of fraud or tax evasion, offenders are liable to a penalty equivalent to the amount of tax evaded or short-deducted.

Even if a taxpayer has no business activity during a particular period, they are still required to file Nil GST returns. This ensures compliance with the regulatory framework and avoids any penalties for non-filing.

Timely filing of GST returns is crucial to avoid penalties, late fees, and interest charges. It also ensures compliance with tax regulations and prevents the blocking of subsequent returns. Therefore, taxpayers should make every effort to file their GST returns on time and avoid any potential consequences.

FILING OF GST LUT FORM

Are you an exporter seeking to streamline your business processes? The GST LUT Form is a crucial document that allows you to smoothly execute your export transactions without having to pay Integrated Goods and Services Tax (IGST) at the point of supply. We are ready to support you in efficiently completing the GST LUT Form filing, ensuring a more streamlined and hassle-free experience for your export endeavors.

Understanding LUT IN GST

LUT, abbreviated for Letter of Undertaking, is a crucial element within the Goods and Services Tax (GST) framework. This document holds substantial significance for exporters, providing them with the flexibility to participate in the export of goods or services without the requirement of immediate tax payment.

Filing of GST LUT Form for Exporters

Are you an exporter seeking to simplify your business operations? The GST LUT Form is an essential document that enables you to seamlessly conduct your export transactions without paying Integrated Goods and Services Tax (IGST) at the time of supply.

Understanding LUT in GST

LUT, an acronym for Letter of Undertaking, holds significant relevance within the context of the Goods and Services Tax (GST) framework. This document serves as a powerful tool for exporters, allowing them to engage in the export of goods or services without the obligation of immediate tax payment.

GST LUT Form for Exporters

For all registered taxpayers engaged in the export of goods or services, it is mandatory to provide a Letter of Undertaking (LUT) using the Form GST RFD-11 form on the GST portal. This obligation is essential to facilitate exports without paying Integrated Goods and Services Tax (IGST).

Eligibility criteria

The Eligibility criteria for applying for an LUT include the following:

  • ✓ The Letter of Undertaking (LUT) is open for utilization by any registered taxpayer engaged in exporting goods and services. However, individuals facing prosecution for tax evasion exceeding Rs. 250 lakh or more are ineligible to benefit from this option.
  • ✓ Intent to Supply : The applicant should intend to supply goods or services within India, to foreign countries, or to Special Economic Zones (SEZs).
  • ✓ GST Registration : The entity seeking to avail the benefits of an LUT should be registered under the GST framework.
  • ✓ Tax-Free Supply : The desire to supply goods without the imposition of integrated tax is an essential requirement for LUT application.

Exploring the LUT Bond

LUTs hold a validity of one year, necessitating the submission of a fresh LUT for each subsequent financial year. Should the terms outlined in the LUT fail to be met within the designated timeframe; the privileges associated with it will be withdrawn, prompting the need for the exporter to provide bonds. For other assessments, bonds are required when conducting exports without Integrated Goods and Services Tax (IGST) payment. LUTs and bonds are applicable in the following cases:

  • ✓ Zero-rated supply to SEZ: Exporting to Special Economic Zones (SEZs) without IGST payment.
  • ✓ Goods Export: Exporting goods to a country beyond India without IGST payment.
  • ✓ Service Export: Providing services to clients in foreign countries without IGST payment.

Documents Required for LUT under GST

To apply for a Letter of Undertaking (LUT) under GST, you'll need the following documents:

  • ✓ LUT Cover Letter: A request letter signed by an authorized person.
  • ✓ Eligibility: Ensure you meet eligibility criteria (no serious tax evasion cases).
  • ✓ Copy of GST Registration: Proof of your GST registration.
  • ✓ PAN Card of Entity: Identification using PAN card.
  • ✓ KYC of Authorized Person: ID and address proof of authorized person.
  • ✓ GST RFD 11 Form: Application form for LUT.
  • ✓ Copy of IEC Code: If involved in exports.
  • ✓ Canceled Cheque: From your associated bank account.
  • ✓ Authorized Letter: Granting power to the authorized signatory.

Advantages of Filing LUT for Exporters

Choosing to file a Letter of Undertaking (LUT) brings a host of benefits to exporters, streamlining their export activities and optimizing their financial operations:

✓Tax-Free Export: Opting for the LUT enables exporters to carry out their export transactions without the burden of immediate tax payment. This contrasts the alternative, where taxes are paid and later claimed as refunds for zero-rated exports.

✓Simplified Process: By utilizing the LUT, exporters avoid the complexities of claiming tax refunds or engaging in follow-ups with the tax authorities. This translates to substantial time savings and operational ease.

✓Unblocked Working Capital: Funds that would have otherwise been locked as tax payments remain accessible for exporters. This is especially vital for small and medium-sized enterprises (SMEs) grappling with financing and working capital constraints.

✓Liberated Resources: Regular exporters find a consistent advantage with the LUT. Once filed, the LUT remains valid for the entire financial year. This longevity minimizes the need for repetitive filings, allowing exporters to focus on their core activities.

By leveraging the benefits of the LUT, exporters can navigate the realm of international trade with greater efficiency and flexibility.

Key Reminders about LUT Bond in GST

Here are some crucial points to keep in mind regarding LUTs (Letter of Undertaking) in GST:

✓Validity Period: An LUT remains valid for a year, starting from the submission date.

✓Conditional Acceptance: The acceptance of an LUT comes with specific terms. Failing to meet these conditions might lead to privilege revocation. In such cases, an entity may need to provide a bond.

✓Alternative Bonding: Entities ineligible for LUT can still furnish a bond. This bond, usually on non-judicial stamp paper, requires a bank guarantee. The adhesive should cover the anticipated tax liability based on exporter assessment.

✓Official Letterhead: LUT submissions must be on the registered entity's letterhead. This letterhead is from the entity planning to supply goods/services without integrated tax payment.

✓Prescribed Form: An LUT must be applied through the official GST RFD-11 form. This form can be submitted by authorized personnel like the MD, company

GST CANCELLATION

GST registration can be voluntarily canceled if the business is dormant or does not meet the necessary business turnover requirements. Additionally, a GST officer can cancel the registration if the business is found to be non-compliant under GST regulations. Once the GST registration is canceled, the individual or entity is relieved from the obligation to file GST returns and is no longer required to pay or collect GST.

Procedure for GST Registration Cancellation

Assistance with GST Registration Cancellation

Our services are designed to assist taxpayers in the online cancellation of their GST registration. Before initiating the process, it is imperative that the taxpayer ensures the filing of all overdue GST returns. Non-compliance with GSTR-3B, GSTR-1, or the GST annual return requires the filing of late returns before the commencement of the GST cancellation procedure.

Step 1: Submission of GST Cancellation Application

The GST cancellation application is submitted using Form GST REG-16 on the common GST portal. The application must include the following information:

1.Contact address, including mobile number and email address.

2.Reason for cancellation.

3.Desired date of cancellation.

4. Particulars of the value and tax payable on the stock of inputs, semi-finished goods, finished goods, and the stock of capital goods/plant and machinery.

5. Details of the latest GST return filed by the taxpayer, along with the ARN of the particular return.

Step 2: Application Review and Officer's Response

The GST Officer reviews the application and issues a cancellation order in Form GST REG-19 within 30 days from the date of application. The cancellation becomes effective from a date determined by the Officer, and the taxable individual is notified accordingly.

If you have a GST registration that you wish to cancel, consult with our experts. We will assess your GST return filing status, assist in completing any outstanding GST returns, and guide you through the GST cancellation filing process. Our team will also monitor your GST registration cancellation application, address any queries, and facilitate the completion of the process once it has been submitted.

FINAL RETURN

Following the cancellation of GST registration, the individual or entity is obligated to file a conclusive GST return using Form GSTR-10. This filing must be done within three months of either the cancellation date or the issuance date of the cancellation order, depending on whichever occurs earlier.

The purpose of this final return is to ensure that the taxpayer has no outstanding GST dues. It's important to note that this requirement excludes input service distributors or non-resident taxpayers subject to tax payment under Sections 10, 51, or 52.

Preparing to Cancel GST Registration

Prior to initiating the GST cancellation process, it is imperative for the applicant to clear any outstanding GST liabilities. This encompasses the settlement of input tax in the stock of inputs, semi-finished goods, finished goods, and capital goods, or the output tax liability related to these goods—whichever amount is greater.

It's crucial to note that the input tax credit on the existing stock must be reimbursed. Following the cancellation of GST registration, the taxpayer loses eligibility to claim Input Tax Credit (ITC).

The settlement of GST liabilities can be executed using either the GST electronic credit or cash ledger. This final payment should align with the filing of the conclusive GSTR-10 return. By ensuring the prompt and accurate settlement of liabilities, the applicant can facilitate a smooth and compliant GST cancellation process.

Declining a GST Cancellation Application

In certain scenarios, the designated Officer may opt to decline the application for GST cancellation due to the following reasons:

  • ✓ Incomplete Application: If the submitted application lacks essential information or is deemed incomplete, the Officer has grounds to reject it.
  • ✓ New Entity Registration Delay: In cases involving business transfer, merger, or amalgamation, the rejection may occur if the new entity hasn't registered with the tax authority before initiating the application.

Upon identifying such discrepancies, the Officer issues a written intimation to the applicant, specifying the nature of the shortfall. The applicant is then required to respond within seven days of receiving the communication. Failure to address the concerns within this timeframe may result in the rejection of the application, with the applicant being granted an opportunity for a hearing before the decision is finalized. This procedural approach ensures fairness and adherence to regulatory requirements in the GST cancellation process.

GST Annual Return Filing - GSTR-9 Filing

GSTR-9 is a crucial annual filing requirement applicable to all individuals registered under the Goods and Services Tax (GST) system. It compiles extensive details about both outward and inward supplies, covering transactions conducted or received throughout the applicable financial year. These supplies are subject to the regulations of Central GST (CGST), State GST (SGST), and Integrated GST (IGST). The GSTR-9 serves as a consolidated summary of all monthly or quarterly returns filed during the respective year.

Introduction to Form GSTR-9

GSTR-9 is an annual declaration that must be filed by registered taxpayers. This document encompasses all their transactions, both purchases and sales, throughout the year, specifying various taxes such as CGST, SGST, and IGST. Additionally, it provides a comprehensive overview of total sales and purchases, along with audit details for the entire year. In essence, GSTR-9 serves as a concise summary of the business transactions and tax particulars for the entire year.

GST Annual Return Filing - Applicability

The obligation to file Form GSTR-9 applies to various taxpayer categories, determined by their registration status and activities during the fiscal year. The subsequent entities are required to complete this annual return:

Normal Taxpayers

Individuals or entities registered as regular taxpayers are encompassed by the requirement to fill Form GSTR-9. This pertains to businesses operating under standard tax provisions.

SEZ Units and SEZ Developers

Special Economic Zone (SEZ) units and SEZ developers are also obligated to submit Form GSTR-9. This ensures comprehensive reporting of their financial activities throughout the fiscal year.

Transition from Composition Scheme

Taxpayers who transition from the composition scheme to normal taxpayer status during the fiscal year are mandated to file Form GSTR-9. This documentation captures their shift from a simplified tax regime to a regular tax framework.

Exclusions from Form GSTR-9 Filing

Composition Taxpayers

Taxpayers operating under the composition scheme have a dedicated annual return form, namely Form GSTR-9A, tailored to address their specific needs. Consequently, they are exempt from the necessity to submit Form GSTR-9.

Casual Taxpayers

Individuals engaging in sporadic or occasional business activities, commonly known as casual taxpayers, are not obligated to file the Annual Return in Form GSTR-9.

Non-Resident Taxpayers

Taxpayers who are not residents of the country but participate in taxable transactions within India, commonly referred to as non-resident taxpayers, are not mandated to file Form GSTR-9.

Input Service Distributors (ISD) and OIDAR Service Providers

Entities functioning as Input Service Distributors or providing Online Information and Database Access or Retrieval services are also exempt from the requirement to file Form GSTR-9.

Types of GST Annual Returns

Entities surpassing a turnover of 2 crores are obligated to submit the GST annual return through Form GSTR-9. This filing encapsulates detailed financial information.

GSTR-9A

For registered taxpayers who have opted for the GST Composition scheme, the submission of GSTR-9A is mandatory. This specific return is designed to cater to the unique requirements of participants in the composition scheme.

GSTR-9C

Form GSTR-9C serves the purpose of reconciling the taxpayer's annual returns in GSTR-9 with the figures presented in their audited financial statements for the respective financial year. This reconciliation statement is crucial for entities that are subject to an annual audit of their accounts.

GST Audit Requirement.

The necessity for GSTR-9C arises for taxpayers with an annual aggregate turnover surpassing two crores, mandating an annual audit of their accounts. Chartered Accountants or Cost Accountants are entrusted with the preparation and certification of GSTR-9C.

Filing GSTR-9A: Composition Scheme Participants

Applicability of GSTR-9A

GST-registered taxpayers who have opted for the composition scheme as outlined in the GST Act are required to submit GSTR-9A. This return consolidates all the information previously provided by the taxpayer in their quarterly returns over the specified fiscal year.

Eligibility Criteria

Every taxpayer registered under the composition levy scheme in GST is obligated to fulfill the GSTR-9A filing requirement. However, the following individuals are exempt from filing GSTR-9A:

  • ✓ Input Service Distributors
  • ✓ Non-resident taxable individuals
  • ✓ Individuals subject to Tax Deducted at Source under Section 51 of the Income Tax Act
  • ✓ E-commerce operators subject to Tax Collected at Source under Section 52 of the Income Tax Act
  • ✓ Casual Taxable Individuals

Filing GSTR-9C: Reconciliation Statement

Form GSTR-9C plays a crucial role in facilitating the filing of a reconciliation statement by taxpayers for a designated financial year. This form entails a comprehensive reconciliation between the Annual Returns submitted in GSTR-9 and the figures detailed in the taxpayer's Audited Financial Statements. The submission of this form, certified by a Chartered Accountant, is essential in synchronizing the filing of both the Annual Returns in GSTR-9 and the Audited Financial Statements. Taxpayers have the option to fulfill this obligation either through the GST portal or at a designated Facilitation Centre.

Eligibility Criteria

GSTR-9C is applicable to taxpayers who are required to undergo an annual GST audit of their accounts. This form necessitates careful preparation and certification by a qualified professional, either a Chartered Accountant or a Cost Accountant.

Due date for filing Form GSTR-9

The deadline for submitting Form GSTR-9 for a specific financial year is the 31st of December of the following financial year, or any extension granted by the Government through official notifications.

Penalties for Late Filing of GSTR-9 Form

All taxpayers are required to submit the GSTR-9 form within the specified timeframe. Failure to meet this deadline incurs a notable penalty. The late fee is set at 200 INR per day, comprising 100 INR for CGST and 100 INR for SGST, with no late fee applicable for IGST. Importantly, the penalty amount is capped at the taxpayer's quarterly turnover.

Prerequisite Actions for GSTR-9 Filing.

Before starting the GSTR-9 submission, taxpayers should complete other GST-related filings, such as GSTR-1, GSTR-3B, or GSTR-4 returns, based on their classification. It's essential to settle any outstanding dues because failing to do so can hinder the GSTR registration holder's ability to file their annual GST return.

GST Einvoicing

In simpler terms, the introduction of GST eInvoice in India signifies a shift from traditional paper-based systems to a digital approach. This transition not only leads to cost savings but also boosts efficiency in business operations. By implementing eInvoicing, businesses can reduce the burden of compliance, as it eliminates the need to duplicate or transfer the same information across different systems.With eInvoicing, the data provided to GSTN to generate the Invoice Reference Number (IRN) acts as the basis for automatically populating various other systems. This includes GST returns, input tax credit reconciliation, eWay bill generation, and GST refunds. In essence, GST eInvoicing aims to make business operations smoother, offering a significant improvement in the ease of doing business while simultaneously lessening the overall compliance burden for businesses.

Einvoicing Implementation Date

The suggestion to implement eInvoicing was presented during the 35th GST Council Meeting in June 2019. Following this, the GST Council approved the initiation of a pilot project on a voluntary basis for the online generation of B2B e-invoices starting from January 2020.

Timeline Turnover Supply Type Implementation

  • ✓ January, 2021 GST registered entities with an aggregate turnover exceeding INR 100 crores. B2B Voluntary
  • ✓ April, 2021 GST registered entities with an aggregate turnover exceeding INR 50 crores. B2B Voluntary
  • ✓ April, 2021 onwards GST registered entities with an aggregate turnover exceeding INR 20 crores. B2B Mandatory

Certain entities, such as insurers, banking companies, financial institutions (including NBFCs), goods transport agencies, passenger transport services, and admission to the exhibition of cinematograph films in multiplex screens, are exempted from the eInvoicing implementation according to Notification No.13/2020-Central Tax dated 21st March 2020.

Benefits of GST eInvoice

The introduction of GST eInvoicing is set to revolutionize business processes by establishing standardized formats for invoices. This uniformity will extend across the entire GST eco-system, enabling seamless communication between different software platforms. Consequently, an eInvoice generated by one software can be effortlessly interpreted by another, eliminating the necessity for data transfer or re-entry.

The adoption of eInvoicing will also eradicate the month-end compilation process of invoices, streamlining the flow of input tax credit. In essence, GST eInvoicing promises to bring about greater efficiency, consistency, and ease of invoice management within the GST framework.