Yearly returns filing under GST to be a tall task

Filling of yearly returns under Goods and Services Tax (GST) will be a tall assignment, feel tax practitioners. The figures of returns filed by the central government show that only 17% of returns for the financial year 2017-18 have been filed in more than five months, with just three weeks left, they wonder how the remaining 83% returns will be filed. They state expanding the date isn’t a choice. Just improvement of filing of returns can resolve the issue.

Businessmen under standard GST need to file annual return GSTR-9, while sellers who have opted Composition Scheme by paying lump-sum tax need to file GSTR-9A. Those filing GSTR-9 need to file audit return in form of GSTR-9C.

Central Board of Indirect Taxes (CBIC), in its ongoing note, conceded that only 14,85,863 have recorded GSTR-9, 4,33,144 sellers have filed GSTR-9A and 11,334 vendors ready to file GSTR-9C. Axat Vyas, member from the center committee of National Action Committee (NAC) of GST Practitioners said that there are an expected 89,11,797 vendors expected to file GSTR-9, 15,82,127 sellers expected to file GSTR-9A and 3,14,818 vendors expected to file GSTR-9C. This adds up to 16.67% compliance for GSTR-9, 27.38% compliance for GSTR-9A and just 3.6% compliance of GSTR-9C. Overall compliance is about 17.85%. CBIC has additionally asked its field staff to direct an outreach exercise to guarantee all returns are filed. But, tax practitioners see things in a different way.

“This information has been announced by CBIC. Over 17% of returns have been filed in more than five months. In what manner will remaining 83% returns be filed in the remaining three weeks,” asked a disturbed Lalit Ganatra, a tax practitioner. He accuses the issues in filing returns to complicated arrangements thus expanding the due dates won’t work. “We have time and again suggested that the government should make forms for returns simpler,” he said.

Ganatra disclosed to DNA that it isn’t simply complicated for tax practitioners to comprehend these forms and strategies, even the staff of Central GST and State GST fail to get things. “When they themselves, in what way will they eliminate the confusion for us?” he inquired.

GST was rolled out in the nation on July 1, 2017 and the due date for filing of yearly returns for the financial year 2017-18 has been reached out in past as a result of a host of issues. The due date for filing of Income Tax Returns has additionally been extended to August 31, overlapping with GSTR yearly returns, which has made things progressively troublesome, feel tax payers.

THE ISSUES:

  • Tax practitioners state expanding the date isn’t an alternative. Just simplification of filing of returns can solve the issue
  • Just 17% of returns for the financial year 2017-18 have been filed in more than five months

 

Enquire with Certicom Consulting in case of any queries.

5 Key Changes made in New Simplified Returns System

The Simplified returns are to be introduced under GST for simplifying the complexities in the present return system. While the new GST system would be relevant for all taxpayers in India from October 2019 onwards, the pilot for the same has just been presented on the basic portal on a preliminary premise (Voluntary applicability for taxpayers). While the Indian taxpayers set themselves up for GST 2.0, we should view the key changes, a taxpayer will have to adhere to under simplified GST Returns.

Key changes in Simplified GST Returns

Under the Simplified Returns system, a taxpayers may see the given below 5 key changes in the return filing system:

Characterizing Taxpayer’s Profile:

Since the simplified return system gives the taxpayer with different choices to browse, another module, in particular the Taxpayer’s Profile will be presented under a simplified return system. The Taxpayer’s profile will assist the taxpayer with setting their preferences they wish to pick in for, for example, the kind of returns, frequency, and so on.

The decision shown by the taxpayer on their profile will help GSTN gateway to decide/show the returns applicable to the taxpayer and the game-plan that should be followed.

Uploading Invoice details alongside HSN:

According to the current GST situation, the GSTR 1 information would include invoice level data, wherein the information used to be accumulated at rate level. In any case, under the simplified returns, taxpayers will likewise be required to file HSN related information alongside the invoice level information in their ANX 1.

Chopping down of disclosure necessities:

The simplified GST returns will likewise require information on the state or total level rather than detailed or line level information, in this way reducing the measure of information a taxpayer was required to reveal for their transactions, for example, B2CL, Advances, ITC, and so forth.

Formalizing Channel for ITC Claim:

As of now, in order to claim ITC, the taxpayer was required to self-figure his/her input tax credit and furnish the claim. Therefore, for any error found between the ITC claim and GSTR 2A, the government would send a notice for the same. However, the simplified GST returns will regularize the entire ITC claiming procedure, for example rather than self-declaration of ITC, taxpayers should route it through their GST returns and annexures.

Auto-Computed Main returns:

Differentiating to the current GST system, where the taxpayer is required to file their monthly returns on a self-declaration premise, the main returns under new GST return system will be determined by the government dependent on the data put together by the taxpayer and the provider in the annexures, alongside the taxpayer’s tax liability.

For more details or queries, please contact Certicom Consulting.

 

GST Returns Due Date announced for FY 19-20

GSTR 1

Enrolled citizens under GST will outfit the subtleties of outward supply of products or administrations or both in FORM GSTR-1 inside a stipulated time period relying on the yearly total turnover. Citizens whose yearly total turnover is upto Rs. 1.5 crores should document a quarterly return for outwards supplies and the citizens whose yearly total turnover is more than Rs. 1.5 crores should document month to month returns for outwards supplies.

GSTR 3B

Each enrolled individual under the GST routine is required to document a month to month return in Form GSTR 3B for installment of assessments, for releasing the expense obligation, intrigue, punishment, charges or some other sum payable inside a stipulated time. All the expenses due will be paid by charging the electronic money record or electronic credit record not later than the due date of documenting the arrival.

 

Return Who has to file? Period Due date Notification
GSTR 1 Taxpayers having aggregate turnover <= 1.5 Cr. April-June’19 31st July ‘19 CGST Notification no. 11/19 dated 07.03.19
Taxpayers having aggregate turnover >1.5 Cr. April 19 11th May’19 CGST Notification no. 12/19 dated 07.03.19
May 19 11th June’19
June 19 11th July’19
GSTR 3B Registered Taxpayer April 19 20th May’19 CGST Notification no. 13/19 dated 07.03.19
May 19 20th June’19
June 19 20th July’19

 

 

 

 

 

Annual Returns

The due date for furnishing the annual returns in the Form GSTR 9, Form GSTR 9A and a reconciliation statement in Form GSTR 9C for the financial year 2017-18 is 30th June 2019.