IRIS GST TIMES
August,2019
Issue 1
Chief Editor
Vaishali Dedhia
May the lord of good fortune, take away all your sorrows and obstacles, showering you with peace and prosperity for all the years to come.
We wish you a very Happy Ganesh Chaturthi!!!
In this issue, read about Sabka Vishwas – a legacy dispute resolution scheme by introduced by the finance ministry of India, the extension of GSTR 9 due date and the upcoming updates in our premium GST compliance tools.
The feature of the issue is IRIS Sapphire – Enhanced 3B Auto-Population
Regards,
Team IRIS GST
GST Annual Returns gets a 3 month Extension!!!
Taxpayers can now file their annual return form GSTR 9, 9A and 9C till November 20 2019.
Acknowledging the technical difficulties being face by the taxpayers while furnishing their annual return forms GSTR 9, GSTR 9A and GSTR 9C, the finance ministry has extended the last date for filing annual GST returns by three months i.e. from August 31, 2019 to November 30, 2019.
GSTR 9 is an annual return to be filed yearly by taxpayers registered under the Goods and Services Tax (GST). It consists of details regarding the outward and inward supplies made or received under different tax heads.
On the other hand, GSTR-9C is filed by those whose annual turnover exceeds ₹2 crore. It is a statement of reconciliation between GSTR-9 and the audited annual financial statement, while GSTR-9A is the annual return to be filed those who have opted for the Composition Scheme under GST.
70 crore GST Scam in Chandigarh
The UT excise and taxation department has decided to scan transactions made by 20 bogus firms in neighboring states including Punjab, Haryana, Himachal Pradesh and Delhi.
The department in its ongoing investigation into the Rs 70 crore tax credit scam, will also seek the help of excise department to unearth the large spread scam.
The department has already identified 305 companies, who claimed the maximum input tax credit (ITC) under the goods and services tax (GST) in recent years. The department will soon issue notices to these firms, asking them to explain their stand. The five bogus dealers, who were primarily involved in the scam, had claimed ITC in huge numbers.
Besides, the department has already detected 132 bogus dealers who used fake addresses for registration under GST in the city.
The investigation has so far revealed 20 dealers, including five who were penalized, were not doing any sale and purchase in Chandigarh but dealing only in Haryana and other states. These dealers issued invoices to numerous firms/companies without actual supply of goods mentioned and facilitated illicit ITC entitlement.
Upcoming Due Dates
GSTR 7 – 10th Sept
GSTR 8 – 10th Sept
GSTR 1 – 11th Sept
GSTR 6 – 13th Sept
GSTR 5/5A – 20th Sept
GSTR 3B – 20th Sept
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Sabka Vishwas (LDRS) Scheme, 2019
The Union Finance Ministry, Nirmala Sitaraman introduced ‘Sabka Vishwas-Legacy Dispute Resolution Scheme’ in Union Budget 2019. A 4-month program, Sabka Vishwas aims to reduce the cases stuck under previous indirect tax enactments (service tax and central excise) by resolving disputes and granting amnesty to the taxpayers.
Sabka Vishwas – Legacy Dispute Resolution Scheme, 2019 shall stay operational from 1st of September, 2019 to December 31, 2019.
Objectives:
With an objective to free small and large taxpayers from their previous Indirect tax Enactments, the Sabkwa Vishwas scheme is tailored with the following 2 major components:
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- Liquidation of Past Disputes: Aimed at Resolving the legacy cases of central excise and service tax that are subsumed in GST and are pending in litigation at various forums.
- Voluntary disclosure: an opportunity for the taxpayers to pay the outstanding tax and be free of any other consequence under the law.
Eligibility Criteria:
The scheme is available for a person who has
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- show-cause notice for duty or one or more appeals arising out of such notice pending and where the final hearing has not taken place as on 30.06.2019.
- issued a show-cause notice for penalty and late fee-only and where the final hearing has not taken place as on 30.06.2019.
- recoverable arrears pending.
- cases under investigation and audit where the duty involved has been quantified and communicated to the party or admitted by him in a statement on or before 30th June, 2019.
- wants to make a voluntary disclosure.
Cases Excluded from the Scheme:
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- Cases in respect of excisable goods set forth in the Fourth Schedule to the Central Excise Act, 1944 (this includes tobacco and specified petroleum products)
- Cases for which the taxpayer has been convicted under the Central Excise Act, 1944 or the Finance Act, 1944
- Cases involving erroneous refunds
- Cases pending before the Settlement Commission.
LDR SCHEME
Procedural Aspects of Sabka Vishwas Scheme
How to benefit from the Legacy Dispute Resolution scheme?
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- Declaration for seeking relief shall be made electronically in a prescribed manner.
- All declarations will be examined by a designated committee, to be constituted, for the purpose of finalising the amounts payable by the declarant.
- Where the designated committee’s estimates of the amount payable exceed the estimates made by the declarant, then the declarant would be given an opportunity of being heard before the amount payable is finalised.
- The designated committee, upon finalising the amounts payable, would issue a statement in this regard.
- Adjudication/appellate proceedings concerning the matters covered by the declaration up to the Tribunal stage would be deemed withdrawn; while proceedings pending before the High Court and Supreme Court will have to be withdrawn through a written application.
- The relief under the Scheme would be confirmed by way issuance of a discharge certificate once the declarant evidences the payment of the amount as per designated committee’s statement and the withdrawal of proceedings before the High Court and the Supreme Court.
- Any amount paid under the Scheme will neither be refunded nor be recovered in the form of input tax credit or in any form for that matter.
- Timelines for all actionable items by the designated committee and the declarant are also prescribed
- The tax dues cannot be paid through the utilisation of input tax credit.
- Any amount paid under the Scheme will neither be refunded nor be recovered in the form of input tax credit or in any form for that matter.
- Other administrative and procedural contours of the would be prescribed in due course of time.
What is a Discharge Certificate?
Upon the resolution of the dispute, the declarant shall be issued a Discharge Certificate, effective with the follows
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- No further payments of any amount by way of tax/duty, interest and penalty will be applicable.
- No further proceedings and prosecutions will take place.
- No re-opening of the matter under any circumstances.
- However, the above consequences would be limited cumulatively to the matters and the time-period covered by the declaration under the Scheme.
Available Benefits under the Scheme
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- Total waiver of interest, penalty and fine
- Immunity from prosecution
- Cases pending in adjudication or appeal, a relief of 70% from the duty demand if it is Rs 50 Lakh or less and 50% if it is more than Rs 50 Lakh
- The same relief for cases under investigation and audit where the duty involved is quantified on or before 30th June, 2019
- In case of an amount in arrears, the relief offered is 60% of the confirmed duty amount if the same is Rs 50 Lakh or less and it is 40% in other cases.
- In cases of voluntary disclosure, the declarant will have to pay the full amount of disclosed duty.
FEATURE HIGHLIGHT
IRIS Sapphire: Enhanced GSTR 3B Auto-Computation
GSTR 3B is a monthly return prepared by taxpayers, consisting of summary level data on outward supplies, and select information on purchases, tax liability, ITC claimed and settlement of taxes. For a seamless filing experience, IRIS Sapphire auto-populates the following tables in from GSTR 3B, computing the data collected from user’s GSTR 1 and GSTR 2 uploaded data.
Auto-Computed from GSTR 1 Data
- 3.1 (a) – Outward taxable
- 3.1 (b) – Outward taxable supplies
- 3.1 (c) – Other outward supplies
- 3.1 (d) Inward supplies (liable to reverse charge)
- 3.1 (e) – Non-GST outward supplies
- 3.2 (a) – Interstate supplies made to unregistered person (Out of 3.1a)
Auto-Computed from GSTR 2 data
- 4.1 (a) – Import of goods
- 4.2 (a) – Import of services
- 4.3 (a) – Inward supplies liable to RC other than above mentioned
- 4.4 (a) – All other ITC – ISD
- 4.5 (a) – All other ITC – Other
For the further enhancement of the Auto-Compute utility, the below given updates have been added to the IRIS Sapphire rooster:
- 3.1 – Details of Outward Supplies and inward supplies liable to reverse charge:
Data is now updated to include the impact of amendments in all sections. Also impact of advances, its adjustments and any related amendment impact is included in “3.1(a) Outward taxable supplies (other than zero rated, nil rated and exempted)”. - 3.2 : POS wise interstate supplies:
POS wise inter-state supplies to unregistered customers will now include impact of amendment. Additionally, POS wise interstate supplies to composition and UIN customers has also been added, for which the data shall be collected from form GSTR1 (uploaded and filed through IRIS portal). - 4(D) Ineligible ITC:
Amount of ineligible credit(others) will be auto-computed based on invoice level data with required details uploaded in GSTR2 through IRIS portal. - 5 Values of Exempt, Nil-rated and Non-GST inward supplies:
These amounts will also be auto-computed based on invoice level data with required details uploaded in GSTR2 through IRIS portal.
IRIS Sapphire is an application built with a highly scalable, available and secure architecture that will help you to file with GST. With built-in analytics and dashboards, IRIS Sapphire will ensure that you stay compliant, while always having a pulse on the process. Book your free demo today!!!
UPCOMING UPDATES
Upcoming Product Updates
Team IRIS GST is working on the following features/updates to provide you with better, efficient and seamless GST experience.
- Bulk Download (Download Manager):
The option is available under Bulk Operations. User will be now be able to download his uploaded GSTR1 and GSTR2 data for multiple months and multiple GSTINs, using various filters available. - GSTR 9 Table 6 Auto-population:
IRIS Sapphire will now be able auto-populate table 6 of annual return form GSTR 9. The user can access this feature under the GSTR 9 tab on the IRIS Sapphire portal. The calculated data shall be computed from user’s GSTR 1 and 2 data. - GSTR1 Division-wise Summary:
If a user has uploaded GSTR1 invoices along with their division codes his IRIS Sapphire portal, he can now download a division wise summary of GSTR1 for each division code. This given summary shall be useful in verifying the data. The option can be found on GSTR1> GSTR1> Division-wise Summary. - GST Data (Get GSTR2A Counterparty-wise):
The option to fetch GSTR 2A data has been added to IRIS Sapphire portal, wherein the user can select Return Type as GSTR2A (Counterparty-wise) and provide GSTIN of the counterparty to fetch the required data. However, the system only allows fetching data for a single counterparty.
IRIS Peridot against Tax Evasion
How to stop tax frauds from stealing away your hard-earned money?
- Download the Peridot app
- Scan the GSTIN provided on the Invoice
- Check the Compliance status and Filing History.
- Report any Non-Compliance
- Make India a scam-free nation.
You can download IRIS Peridot from Google Playstore and Apple Store.
GST Basics by IRIS GST
Disclaimer: IRIS Business Services has taken due care and caution in compilation of data. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided.
