Chief Editor Vaishali Dedhia
The last day to file your annual return forms GSTR 9 and GSTR 9A is June 30, 2019. Happy Compliance to you!
In this issue, we’ll be covering the clarification on annual return form- GSTR 9, shared forth by the CBIC, along with the transition plan for the new and simplified return forms under GST. The edition also covers articles on Kerala Cess, how to use multi-vehicle option while generating Eway Bill and upcoming updates for the month of June.
The feature of the issue is IRIS Garnet –Invoice Value Calculation.
Team IRIS GST
Kerala Flood Cess
Rebuilding Gods Own Country
With a view to reconstruct, rehabilitate and compensate the needs so arisen due to the flood, the Kerala State Government has decided to levy a Kerala Flood Cess (KFC) on the value of supply of goods or services or both for a consecutive period of 2 years, effective from 1st July 2019.
The amount collected from this Cess will be distributed to Kerala State Government only. Hence the payment need not be made through GSTR-3B instead a new form KFC-A has been introduced. The taxpayer will have to file this form on the Kerala tax Department Portal (keralataxes.gov.in) instead of the GST Portal. Although the due date of filing KFC-A is the 20th day of the subsequent month, it needs to be filed before the filing of GSTR-3B
KFC need not be charged in the following cases: If the sale of goods or services or both are inter-state supplies.
- If the goods or services are sold at Nil rated or they are of exempted category.
- If goods or services are sold to composite taxpayers.
- Supplies of goods or services or both by a registered person to another registered person.
- Goods which attracts 0.125% SGST, i.e. diamonds and precious stones etc.
In case of delayed payment, then 18% interest will be applicable from the due date of payment to the actual date of payment.
Multi-Vehicle Option in EWay Bill Generation
How to use the Multi vehicle option while generating EWB?
In order to use Multi-vehicle option while generating EWB, the user can follow below-given steps:
- First generate the e-way bill with source and destination as per the document/invoice.
- Carry out the first leg of movement of the consignment up to the transhipment.
- Choose the ‘Change to Multi-vehicle’ option and update the e-way bill for multi-vehicle movement. Here, the total quantity of the consignment and movement from and to place, unit code (this should match with any of the Unit Code from eway bill Item List at the time of e-way bill generation) for the multiple vehicles requirement has to be entered.
- Now, when the consignment has been loaded to the smaller vehicle, update the ‘Part-B’ of the e-way bill with the vehicle number, along with the quantity loaded, and move the consignment.
- Step No 4 may be repeated till total quantity is loaded and moved. The system will not allow the quantity to be shipped in multiple vehicles more than what has been declared while marking the e-way bill for multi-vehicle.
- Any change in the vehicle details may be updated using the Change Vehicle details for Multi Vehicle Movement.
Upcoming Due Dates
GSTR 3B – 20th June
GSTR 5 – 20th June
GSTR 5A – 20th June
GSTR 9 – 20th June
GSTR 9A – 20th June
IRIS Topaz offers you a 360° solution for all your E-way Bill Needs. A cloud-based tool, IRIS Topaz, provides you with the ability to manage all your tasks related to E-way Bill in an easy and automated way, on the go.
Clarifications Regarding Filing of GSTR 9
In order to clear the fog about annual return forms under GST, CBIC has released the following clarification:
- Information contained in FORM GSTR-2A as on 01.05.2019 shall be auto-populated in Table 8A of FORM GSTR-9.
- ITC on inward supplies shall be declared from April’18 to March’19 in Table 8C of FORM GSTR-9.
- Particulars of the transactions for FY 2017-18 declared in returns between April 2018 to March 2019 shall be declared in Pt. V of FORM GSTR-9. Such particulars may contain details of amendments furnished in Table 10 and Table 11 of FORM GSTR-1.
- It may be noted that irrespective of when the supply was declared in FORM GSTR-1, the principle of declaring a supply in Pt. II or Pt. V is essentially driven by when was tax paid through FORM GSTR-3B.
- Payments made through FORM DRC-03 for any supplies relating to the period between July 2017 to March 2018 will not be accounted for in FORM GSTR-9 but shall be reported during reconciliation in FORM GSTR-9C.
- Many taxpayers have reported a mismatch between auto-populated data and the actual entry in their books of accounts or returns. It may be noted that auto-population is a functionality provided to taxpayers for facilitation purposes, taxpayers shall report the data as per their books of account or returns filed during the FY.
- Many taxpayers have represented that Table 8 has no row to fill in credit of IGST paid at the time of import of goods but availed in the return of April 2018 to March 2019. Due to this, there are apprehensions that credit which was availed between April 2018 to March 2019 but not reported in the annual return may lapse. For this particular entry, taxpayers are advised to fill in their entire credit availed on import of goods from July 2017 to March 2019 in Table 6(E) of FORM GSTR-9 itself.
- Any additional outward supply which was not declared by the registered person in FORM GSTR-1 and FORM GSTR-3B shall be declared in Pt.II of the FORM GSTR-9. Such additional liability shall be computed in Pt.IV and the gap between the “tax payable” and “Paid through cash” column of FORM GSTR-9 shall be paid through FORM DRC-03.
Transition plan for Simplified Forms
The CBIC has finally released the road map for Simplified GST returns implementation to ease the transition process.
The prototype of the offline tool is released on the common portal, to provide the taxpayer with the look and feel of the new online portal. The new GST taxation system shall have the following main components:
- Main Return form:- GST RET-1
- Annexure Forms:-
- GST ANX-1
- GST ANX-2
On a trial basis, the user will be able to access the 2-annexure forms,
- GST ANX-1: to upload invoices on the common portal
- GST ANX-2: to view and download the summary for the inward supply
P.S: This trial would have no impact at the back end on the tax liability or ITC of the taxpayer.
The Taxpayers will be able to import their purchase register in the offline tool and match it with the downloaded internal supply of invoices to discover the mismatches in their records.
The month of October will play a crucial role in the transition as GST Annexure form, GST ANX 1 will replace form GSTR 1 and will be made mandatory for every taxpayer. Although, the Large taxpayers (Annual Turnover exceeding Rs. 5crore) will be able to file their monthly returns in GST ANX 1 from October onwards, while, the small taxpayer will have to wait until January 2020 to be able to file their returns for the Oct’19 to Dec’19 quarter. The following key points have to be noted
- October onwards, the large and small taxpayers, both will be able to continuously upload the invoice data in form GST ANX 1.
- Form GST ANX 2 may be viewed simultaneously during this period but no action shall be allowed.
- Large taxpayers would still have to continue filing form GSTR-3B on a monthly basis, until November’19.
- For small taxpayers, FORM GSTR-3B will be replaced by form GST PMT-08 from October 2019 onwards.
January 2020 marks the beginning of the new GST return system as form GSTR 3B is completely phased out and businesses are required to file their first ever form GST RET 01. Points to be noted
Separate instructions shall be issued for filing and processing of refund applications between October to December 2019.
Failure to file Form GSTR 1 and GSTR 3B, until they have been discontinued or completely phased out, can attract penal provision, applicable as per GST law.
IRIS Garnet – Invoice Value Calculation
IRIS Garnet, the File-Format Conversion tool from IRIS GST, has been updated to provide the user with the ability to derive the value of a cell (invoice value) by calculating the values given in multiple rows and columns together (as per the algorithm).
Need for Invoice Value Calculation
Under GST, invoice value is a mandatory field that a taxpayer has to provide on GSTN portal for the completion of the filing process. However, many ERP systems either do not generate invoice value or generate it at ‘Line-item level’ instead of “Invoice level’ which cannot be used at the GSTN portal. This is where IRIS Garnet’s Invoice Calculation can come in handy.
Calculation of invoice value with IRIS Garnet:
- Go to ‘Create Rule File’ tab.
- Upload the data, and enter the respective sheet no.
- Enter the Dimensions and Parameters
- Click Calculate Invoice Value’ and IRIS Garnet will derive the values in a fraction of seconds.
Pointes to be noted
- In order to calculate the invoice value, it is essential that the user selects at least one column for dimensions and parameters each. On the other hand, there are no restrictions on the number of invoices that can be selected.
- Dimensions: Unique columns such as GSTIN of Counterparty, Invoice Number, Document type etc.
- Parameters: Columns with values that are required for the calculation of invoice value.
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Upcoming Product Updates
Team IRIS GST is working on the below-given updates, to be deployed in the month of June.
PO SO Movement
The user will be able to manually move ‘Purchaser Only’ and ‘Supplier Only’ invoice data to match/mismatch. The status of the same will be indicated as ‘Manually Moved’ in advanced reconciliation rule column
Reconciliation: Select all Invoice data
As of now, the user can select multiple invoice data that are currently visible on the page. However, with this feature, the user will be able to select all the invoice data and take actions/ send mail for the same in one go.
Vendor Summary (Net of CDN)
With this update, the user will be able to generate a post-reconciliation vendor wise summary and also get detailed vendorwise breakup for the regular invoice, debit notes and credit notes based on which net amounts are derived
PAN level report for 2A B2BA
A new PAN level report will be added in IRIS Sapphire, wherein the user will be able to get insights on all the amended invoices from form GSTR 2A and the original invoice details corresponding to it.
PAN level report 1 update
New fields have been added in Report 1 at PAN level. These fields include IP, CP, IS, ITC eligibility and ITC value.
A new update will be added for Multi-Vehicle Movement, wherein the user will be able to update Part B of the E-way Bill multiple times. However, to be able to access this feature, it is quite essential that the user has opted in for multi-vehicle option during the EWB generation.
Topaz for Transporters
Topaz is being remoulded to meet the requirements of the transporters, under which the transporter will be able to fetch data on the basis of EWB generation date and state code. Topaz will also have smart filter option, designed to match transporter’s needs.
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.