GSTN announces upcoming GSTR-1/IFF improvements on GST Portal

  • 24 Feb 2022
  • GST
  • Comments Off on GSTN announces upcoming GSTR-1/IFF improvements on GST Portal

GSTN announces upcoming GSTR-1/IFF improvements on GST Portal

On the GST Portal, the Goods and Services Tax Network (GSTN) has announced the upcoming GSTR-1/IFF upgrades.

The statement of outward supplies in FORM GSTR-1 is to be given by all normal taxpayers on a monthly or quarterly basis, as applicable, according to a statement issued by GSTN. Quarterly GSTR-1 filers now have the option of using the Invoice Furnishing Facility (IFF) to report outward supplies to registered individuals (B2B supplies) in the first two months of the quarter.

GSTR-1/IFF has undergone continuous updates and technology changes to improve its performance and user experience, resulting in improvements in the Summary Generation process, faster response times, and a better user experience for taxpayers.

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In November 2021, the prior phase of GSTR-1/IFF improvement was released on the GST Portal. During that time, new features such as a redesigned dashboard, better B2B tables, and information on the number of table/tile documents were made available. In addition, the next phase of the GSTR-1/IFF upgrades will be introduced on the Portal in the near future.

GSTR-1/IFF can be seen in the usual way by navigating as follows:

Return to the Dashboard > Choose a Period > Details of outbound goods and services GSTR-1 > Online Preparation

In this phase of the GSTR-1/IFF upgrades, the following adjustments are being made:

Before filing, the ‘Submit’ button should be removed.

The current two-step GSTR-1/IFF filing method, which includes the ‘Submit’ and ‘File’ buttons, will be replaced by a single-step filing process. The new ‘File Statement’ button will replace the current two-step filing method, allowing taxpayers to add or change records until the filing is complete simply hitting the ‘File Statement’ button.

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Summary of the Data

Before submitting GSTR-1/IFF, taxpayers will now be presented a table-by-table consolidated summary. This aggregated summary will include a complete and table-by-table summary of the taxpayers’ records. Before filing, this will provide a thorough picture of the records added in GSTR-1/IFF.

Summary by recipient

The aggregated summary page will also include a recipient-by-receiver summary, which will provide the overall value of the supplies as well as the total tax for each recipient. The recipient-by-recipient summary will be made available for the following GSTR-1/IFF tables that have counter-party recipients:

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In a new PDF format, taxpayers can now examine and download a complete summary of the GSTR-1/IFF. The GSTR-1 summary used to be formatted differently than the notified format, with a few tables from the notified format grouped together and made available to users. GSTR-1’s notified format has been harmonised with the new summary format. It will also include the taxpayer’s total external supplies liability (excluding reverse charge), which will be auto-populated in GSTR-3B.

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The feature will be made available on the GST Portal shortly, according to the CBIC, and taxpayers will be notified.

The government is expected to propose a formula to bring ATF under GST.

  • 23 Feb 2022
  • GST
  • Comments Off on The government is expected to propose a formula to bring ATF under GST.

The government is expected to propose a formula to bring ATF under GST.

According to CNBC TV18 on February 21, the government is set to propose a formula to bring aviation turbine fuel (ATF) under the Goods and Services Tax (GST).

According to insiders, the government’s likely proposal will be to enable 18 percent GST in addition to VAT or excise rate, with the formula being implemented only if it is agreeable to all states.

According to the research, the VAT or excise rate could differ from state to state under the algorithm.

“ATF has been calculated using a formula of GST rate + VAT/excise in various nations,” a senior government official told CNBC TV18.

According to the news station, the idea will be presented to the states and union territories at the next GST Council meeting.

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According to the government official, the Central Board of Indirect Taxes and Customs (CBIC) has “examined” the concept for ATF inclusion under GST, and “the GST Council would be appraised with this worldwide best practise model for them to take a final call.”

The news came just days after ATF prices hit new highs across the country. On February 16, the rates were raised by 5.2 percent in response to a surge in international oil costs.

Following an increase in global oil prices, this is the fourth raise in jet fuel or ATF prices in less than two months, although petrol and diesel prices have remained steady for a record 103rd day, coinciding with electioneering in areas such as Uttar Pradesh and Punjab.

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According to a price statement from state-owned gasoline dealers, the price of ATF was raised by Rs 4,481.63 per kilolitre, or 5.2 percent, to Rs 90,519.79 per kilolitre in the national capital. This is the highest price at which ATF has ever traded.

The tariff is higher than the previous peak of Rs 71,028.26 per kilo in August 2008, when international crude oil prices hit USD 147 per barrel. Brent crude oil was selling at USD 93.87 per barrel on Tuesday.

This is the highest price at which ATF has ever traded. The price hike will put additional burden on airline financial sheets that have yet to restart full operations owing to pandemic-related constraints.

Union Budget 2022 and GST

Union Budget 2022 and GST

For taxpayers, it’s been a mixed bag.

The Budget’s GST provisions should be dissected in two parts: the Finance Minister’s speech and the proposed revisions to GST laws.

The contrast between the two is striking: the Budget speech waxes poetic about how GST has been a success, yet the amendments continue to place new constraints on taking use of input tax credits and filing returns. In an unusual event, the Finance Minister strayed from the script and revealed extempore that GST returns for January 2022 totaled $140,000 crore, a new high.

When you consider that a large percentage of taxpayers were either sick or recovering from Omicron in January 2022, the figure appears to be excessive. Artificial limits on input tax credit (requiring taxpayers to claim credit only for input invoices that appear in GSTR 2B) and aggressive tax collection by the Department (pay now, pay later) have undoubtedly contributed to the Department’s record revenue collections.

These figures are likely to have encouraged the Finance Minister to predict a nearly 16 percent increase in GST in the Budget Estimates for 2022-23, bringing the total to $660,000 crore. Budget projections for 2022-23 should be confronted with an even heavier dose of the same medicine: limits and severe assessments. Many taxpayers and their advisers who contact the Department on a regular basis would disagree with the fact that GST regulations have now become progressive and totally IT-driven, as stated in the Budget address.

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The Modifications

The proposed GST modifications are a mixed bag of good and unfavourable measures. If taxpayers do not file their returns for three months, they risk losing their registration (Section 29).

The expansion of the time limit for issuing credit notes from September to November of the financial year is one of the advantageous clauses. While taxpayers would have applauded this provision, their sole query would have been, “Why not December?” Similarly, the deadlines for correcting errors in return filing have been extended until November.

When GST was first established, the “matching concept” was offered, but it never really took off. By altering the parts that required a two-way dialogue procedure, Budget 2023 nips this in the bud. In other words, taxpayers can only claim input tax credit on invoices that are both in their books of account and automatically populate GSTR 2B. Budgets have virtually become accustomed to include measures that have retroactive effect.

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The Tax Department has been displaying and attempting to explain Section 50(3) of the CGST Act, which imposes a 24 percent interest penalty for any unreasonable or excessive claim of input tax credit. The Section has also generated some substantial revenue. The Budget, hoping for a windfall, makes the Section effective on July 1, 2017. They also ensured that the SGST and UTGST Acts were amended in the same way. Late fees will be charged if returns are not filed on time.

In terms of GST modifications, annual budgets are not intended to make substantial announcements – that is the work of the GST Council. With Council sessions becoming increasingly rare, annual budgets might be utilised to introduce urgent revisions.

Budget 2023 lost a trick by not taking a page from the Direct Taxes provisions in the same Budget in terms of decreasing litigation and applying it to GST. Different jurisdictional authorities for Advance Rulings (AARs) on the same GST query have offered opposing opinions. Budget 2023 may have included a mechanism to address this problem. Taking more and giving less could become a common theme in annual budgets.