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GST Update – Alert on the GST portal

Latest GST Updates, Alert on the GST Portal –

⦁ Where the liability declared in GSTR-3B varies significantly with Form GSTR-1.

or

⦁ Where ITC taken in GSTR-3B varies significantly in comparison with auto-populated GSTR-2B.

GST update – Indicating a contravention to the provisions in rules, registration shall be suspended in terms of Rule 21(2A) of CGST Rules 2017.

⦁ If one could remember, as per Notification 94/2020 dated 22nd December 2020, a new sub-rule 2A has been inserted in Rule 21A of the Central Goods and Services Tax (CGST) Rules, which states.

⦁ Any significant differences or anomalies observed between the GSTR-3B and the GSTR-1/2B could lead to the suspension of GST registration.

⦁ Further, if these differences remain unexplained, the GSTIN could get canceled.

⦁ The tolerance limit has been kept at 10% in both cases by GSTN as per the alert message.

The taxpayer can check the comparison / variances post-login by navigating through Services–>Returns–> Tax liabilities–>and ITC Comparison–> Select year (period).

Note – This alert will definitely be helpful for the taxpayers to keep a tag on the variance/ anomalies and take corrective measures in time.

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Key Highlights: Budget 2022

Key Highlights, Budget 2022 –

  • ⦁ GDP growth for FY 22 is expected to be 9.2%, the highest for any large economy.
  • ⦁ PLI (Production Linked Incentive scheme) in 14 sectors for Aatmanirbhar Bharat to create 6 million jobs, an additional allocation of Rs 19,500 crore for PLI in solar PV module manufacturing.
  • ⦁ Promoting Fintech and the digital economy is a focus area for this budget.
  • ⦁ 75 digital banking systems in 75 districts by scheduled commercial banks.
  • ⦁ IBC to be amended to improve the efficiency of the resolution process, including cross border.
  • ⦁ Core Banking Services to start in Post offices.
  • ⦁ PM Gati-shakti master-plan Has scope to enhance multimodal communication through 7 engines, 2000 km of the rail network to be brought under KAVACH & Highway network to grow by 25,000 km in FY23.
  • ⦁ Contracts for implementation of multimodal logistics parks at 4 locations to be awarded in 2022-23, in PPP Mode.
  • ⦁ ECLGS (Emergency Credit Line Guarantee Scheme) to be extended up to March 2023, guaranteed cover extended by another Rs 50,000 crore.
  • ⦁ 8 million new dwellings in rural, urban areas to be completed under PM Awas Yojana.
  • ⦁ Rs 2.37 trillion worth of MSP direct payments to wheat and paddy farmers.
  • ⦁ Rs 2 trillion outlay for MSMEs. Additional loans for 13 mn MSMEs.
  • ⦁ Rs 48,000 crore allocated to housing projects under *PM Housing Scheme* for FY23, Rs 1,500 crore allocated for the development of the Northeast in FY23 & Desh stack e-portal to be launched to promote Digital infra.
  • ⦁ New provision to file the updated return within 2 years of the relevant assessment year.
  • ⦁ The alternate minimum tax for cooperative societies down from 18.5% to 15%.
  • ⦁ The tax deduction limit for state Govt employees* to NPS was raised from 10% to 14%**.
  • ⦁ Surcharge on Corporate tax pruned from 12% to 7% Surcharge on the transfer of long-term capital gains tax capped at 15%.
  • ⦁ Tax exemption to start-ups extended to March 2023.
  • ⦁ Gross GST collection for January 2022 at a record Rs 1.41 trillion.
  • ⦁ No change in income tax slab.
  • ⦁ Electric Vehicles battery-swapping policy is to be brought out with interoperability standards.
  • ⦁ Concessional duty on import of capital goods to be phased out.
  • ⦁ Duty on unpolished diamonds to be reduced to 5%.
  • ⦁ Customs duty on steel scrap extended by a year.
  • ⦁ RBI led digital rupee using blockchain to be launched in FY23, *1% TDS* on the transfer of virtual digital assets & income to be taxed at 30%.
  • ⦁ 68% of capital outlay for the Domestic defense industry.
  • ⦁ Revised Fiscal Deficit 6.9% of GDP in FY22 as against 6.8% in Budget estimates, Fiscal deficit at 6.4% in FY23.
  • ⦁ Total expenditure in FY23 estimated at Rs 39.45 trillion; total resources mobilization to be Rs 22.84 trillion other than borrowing.
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Zero Tax on Salary of Rs. 10,00,000? Is it possible?

Zero Tax on Salary of Rs. 10,00,000? Is it possible?

Yes, even if your salary is up to Rs. 10,50,000, you will not be required to pay the taxes after reading this article.

1. Standard Deduction

⦁ Assumption – Salary Considered – Rs. 10,50,000. If even if it is less, you can still save the taxes to zero and yes, you heard it right – Legally, without having the sleepless nights of getting notices from the Income Tax Department.

⦁ the government provides the Standard Deduction of Rs. 50,000. So your taxable salary is Rs. 10,50,000 – 50,000 = Rs. 10,00,000.

2. Deduction under Section 80C. Confused about what comes under 80C – Read Below –

⦁ PPF, EPF, LIC premium, Equity-linked saving scheme, principal amount payment towards home loan, stamp duty and registration charges for the purchase of property, Sukanya Samriddhi Yojana (SSY), National saving certificate (NSC), Senior citizen savings scheme (SCSS), ULIP, tax saving FD for 5 years, Infrastructure bonds, etc.

⦁ The maximum deduction which can be claimed here is Rs. 1,50,000. Hence, considering you invest Rs. 1,50,000, your taxable salary becomes – Rs. 10,00,000 – Rs. 1,50,000 = Rs. 8,50,000 (taxable salary).

3. Deduction under Section 80CCD (1b) – National Pension Scheme –

⦁ You can claim a deduction of Rs. 50,000 by investing under NPS. Yes, it has restrictions for the withdrawal, but this will help you in building a retirement corpus.

⦁ The taxable salary after investing here will become – Rs. 8,50,000 – Rs. 50,000 = Rs. 8,00,000.

4. Deduction Under Section 80D – Medical Insurance –

⦁ Indians, yes you heard it right we Indians have started giving importance to Insurance policies and yes now we don’t ask ” Wapas Kitna Milega Kuch Nahi Hua To” – With this change in mindset and living in a pollutive environment we require medical insurance. “Sone pe Suhaga” is it will even save your taxes.

  • ⦁ For self, spouse & children – There is a cap of Rs. 25,000 or 50,000 (in case of senior citizen)
  • ⦁ For Parents – There is a cap of Rs. 25,000 or 50,000 (in case of senior citizen)
  • ⦁ Even body checkups are allowed and a deduction up to Rs. 5,000 can be claimed. But the upper limit is mentioned above.
  • ⦁ If your parents are senior citizens, and they don’t have medical insurance and they aren’t filing their Income Tax Return and if you paid for their medical treatment, you can claim up to Rs. 50,000.
  • ⦁ Hence, after section 80D, the taxable salary shall become – Rs. 8,00,000 – Rs. 25,000 = Rs. 7,75,000.

5. Interest on Housing Loan – Section 24b of Income Tax Act –

⦁ We Indians grow up hearing “Apna Ghar Apna Hi Hota Hai” and our minds start thinking about it as soon as we start family planning.

⦁ Interest on housing loans is allowed till Rs. 2,00,000 every financial year. Hence, your taxable salary becomes – Rs. 7,75,000 – Rs. 2,00,000 = Rs. 5,75,000.

6. Interest on Education Loan / Purchase of Electric Vehicle / Donation Under Section 80G —

⦁ Education has become very costly and middle-class parent cannot afford to pay from their pocket, hence education loan is taken by the number of students. The interest component of the loan is deductible under section 80E.

⦁ The world is shifting from Petrol/ Diesel to EVs and yes, you can even claim a deduction of up to Rs. 1,50,000 on interest paid for the purchase of EVs. The deduction is available u/s 80EEB. (Vehicle should be financed, notional interest cannot be claimed).

⦁ If none of the above is applicable, then donations are also allowed as deductions. Provided you are donating to charitable trust or NGOs which has got the certificate from Income Tax.

⦁ Now the overall objective is to reduce the taxable income from Rs. 5,75,000 to Rs. 5,00,000. Considering Rs. 75,000 deductions are claimed by using the above section. Then you need to pay zero taxes. Confused? Happy? How How? Let us see –

⦁ Now the Taxable salary is Rs. 5,00,000. The tax on income up to Rs. 2,50,000 is exempt from tax. Thus the tax payable would be Rs. 12,500 (5% slab from Rs. 2,50,000 to Rs. 5,00,000. Hence 5% of Rs. 2,50,000 is Rs. 12,500).

7. Rebate under section 87A –

⦁ If your income is Rs. 5,00,000 or lesser, you can claim a rebate under section 87A for a maximum of Rs. 12,500. Hurrah the tax payable is Rs. 12,500 (tax calculated above) – Rs. 12,500 (rebate u/s 87A) = 0 (Zero).

“Start Planning, you can thank us later 🙂“

⦁ Upcoming article – How to pay zero taxes on Rs. 20,00,000 salary. Stay tuned.

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“GePP-On” new functionality for generating E-invoicing (GST, Helping Business –

With the intent of – helping businesses – to generate e-invoices (GST), NIC has released an application known as ‘GePP-On’. (GST e-Invoice Preparing and Printing (GePP) Tool)

To generate e-invoices using GePP-on application, one needs to enter the invoice details in the form designed in the application.

Following are the features of GePP-On:

1. Browser-desktop based application that works on mobile devices as well
2. Generation of IRN
3. Cancellation of IRN
4. Generation of e-way bill number along with IRN
5. Printing of e-invoice with QR Code
6. You can create customer and HSN master
7. Designed to work in offline mode
8. Backup and restoration of data and many such related features.

Currently, the beta version of “GePP-On” is released for businesses that are enabled for e-invoice generation.

These businesses can use the existing login credentials to access the application. Shortly, the final version of GePP-On will be made available.

Download link to GePP:https://einv-apisandbox.nic.in/gepp/#/

The efforts to release of GePP-On application for e-invoice generation is a welcome move, not only for businesses that are already enabled for e-invoicing but also would benefit many small businesses in the coming days, when more businesses are brought under the ambit of e-invoicing.

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E-way bill-Every transaction to be looked into independently for a ceiling limit of Rs. 50,000

In a very important decision the Hon’ble Allahabad High Court, in the case of Shri Surya Traders v. Union of India Writ Tax No. 1146 of 2021, Allahabad HC (SB) has passed a detailed ruling on detention, seizure, and release of goods and conveyances in transit.
It has been held that every transaction has to be looked into independently for the purpose of determining ceiling of Rs. 50,000 for the requirement of generation of e-way bill.

The Petitioner assessee is engaged in the business of selling Sweet Supari and Betel Nut products. The Petitioner, in its normal course of business sold 90 bags of betel nut product in the following manner, i.e. 87 bags to one registered dealer and 3 bags to another registered dealer using common transport, in such manner that the value of the second transaction/ consignment was less than Rs. 50,000 and accordingly in the opinion of the Petitioner, did not require an e-way bill. Regarding the supply of 87 bags of betel product, however, the documentation was complete and an e-way bill was also generated.

The vehicle was intercepted, and on examination, it was found that while 87 bags of goods were accompanied with a valid invoice, e-way bill, and all supporting documents, the 3 bags of betel nut product were not accompanied by a tax invoice. As a result, the Department formed a view that complete 90 bags are liable to be detained and subsequently were seized.

The Hon’ble Court quashed the impugned detention/ seizure orders and allowed the writ petition of the Petitioner and concluded that every transaction has to be looked into independently for determining ceiling of Rs. 50,000 when being transported under different Tax Invoices, though under the same conveyance.

Added to that, the Hon’ble Court imposed costs of Rs. 20,000 on the Respondents, granting them the liberty to recover the said cost from the erring officer.

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𝗠𝘂𝗺𝗯𝗮𝗶 𝗜𝗧𝗔𝗧: 𝗦𝗾𝘂𝗮𝗿𝗶𝗻𝗴 𝗼𝗳𝗳 𝗹𝗼𝗮𝗻 𝘁𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻 𝗱𝗼𝗲𝘀 𝗻𝗼𝘁 𝗶𝗻𝘃𝗶𝘁𝗲 𝗽𝗲𝗻𝗮𝗹𝘁𝘆 𝘂𝗻𝗱𝗲𝗿 𝗦.𝟮𝟳𝟭𝗗 / 𝟮𝟳𝟭𝗘

S.269SS and S.269T mandate that transactions in the nature of acceptance/repayment of loan/ deposit etc should be done through account payee cheque or account payee bank draft or use of electronic clearing system through a bank account. Non-adherence of provisions of S.269SS or S.269T invites penalty u/s 271D & E, respectively. However, S.273B provides a safe harbor if such default is because of a reasonable cause.

In its recent judgment Mumbai ITAT has observed, 𝘄𝗵𝗲𝗿𝗲𝗶𝗻 𝗹𝗼𝗮𝗻 𝘁𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻𝘀 𝗮𝗿𝗲 𝘀𝗾𝘂𝗮𝗿𝗲𝗱 𝗼𝗳𝗳 𝗯𝘆 𝗷𝗼𝘂𝗿𝗻𝗮𝗹 𝗲𝗻𝘁𝗿𝗶𝗲𝘀 𝗶𝗻 𝗮 𝗯𝗮𝗰𝗸𝗱𝗿𝗼𝗽 𝗼𝗳 𝗴𝗲𝗻𝘂𝗶𝗻𝗲 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝘁𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻𝘀, 𝗶𝘁 𝘄𝗼𝘂𝗹𝗱 𝗯𝗲 𝘀𝗮𝗳𝗲 𝘁𝗼 𝗰𝗼𝗻𝗰𝗹𝘂𝗱𝗲 𝘁𝗵𝗮𝘁 𝘁𝗵𝗲𝘀𝗲 𝗲𝗻𝘁𝗿𝗶𝗲𝘀 𝘄𝗲𝗿𝗲 𝗽𝗮𝘀𝘀𝗲𝗱 𝗼𝘂𝘁 𝗼𝗳 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗰𝗼𝗻𝘀𝘁𝗿𝗮𝗶𝗻𝘁𝘀, 𝗲𝘅𝗶𝗴𝗲𝗻𝗰𝗶𝗲𝘀 𝗮𝗻𝗱 𝗮𝗱𝗺𝗶𝗻𝗶𝘀𝘁𝗿𝗮𝘁𝗶𝘃𝗲 𝗰𝗼𝗻𝘃𝗲𝗻𝗶𝗲𝗻𝗰𝗲. Such business constraints, exigencies, and administrative convenience 𝘄𝗼𝘂𝗹𝗱 𝗰𝗼𝗻𝘀𝘁𝗶𝘁𝘂𝘁𝗲 𝗿𝗲𝗮𝘀𝗼𝗻𝗮𝗯𝗹𝗲 𝗰𝗮𝘂𝘀𝗲 𝘄𝗶𝘁𝗵𝗶𝗻 𝘁𝗵𝗲 𝗺𝗲𝗮𝗻𝗶𝗻𝗴 𝗼𝗳 𝗦.𝟮𝟳𝟯𝗕 𝗼𝗳 𝘁𝗵𝗲 𝗔𝗰𝘁 𝗮𝗻𝗱 𝗽𝗲𝗻𝗮𝗹𝘁𝘆 𝘄𝗼𝘂𝗹𝗱 𝗻𝗼𝘁 𝗯𝗲 𝗮𝗽𝗽𝗹𝗶𝗰𝗮𝗯𝗹𝗲 𝗶𝗻 𝘀𝗾𝘂𝗮𝗿𝗶𝗻𝗴 𝗼𝗳 𝘁𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻𝘀.

[ 𝗠/𝘀. 𝗠𝗮𝗰𝗿𝗼𝘁𝗲𝗰𝗵 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗲𝗿𝘀 𝗟𝘁𝗱., 𝗜𝗧𝗔 𝗡𝗼.𝟯𝟬𝟰𝟵 & 𝟰𝟬𝟱𝟰 /𝗠𝘂𝗺/𝟮𝟬𝟭𝟵]

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GST for restaurants selling online

E-Commerce Operators liable to pay GST on Restaurant Services W.E.F. 01-01-2022:-

The GST Council, in its 45th meeting held on 17th September 2021, recommended notifying *Restaurant Service* under section 9(5) of the CGST Act, 2017. Accordingly, to effectuate this recommendation, *Notification No. 17/2021 (CTR)* dated 18.11.2021 has been issued, and now a separate clarification vide *Circular No. 167 / 23 /2021–GST*, dated: 17-12-2021, also has been issued to the extent that the e-commerce operators (ECO) are liable to pay GST on restaurant services.

So, the scenario is as ‘restaurant service’ has been notified under section 9(5) of the CGST Act, 2017, *the ECO shall be liable to pay GST* on restaurant services provided, with effect from the *1 January 2022*, through ECO. The ECOs will *no longer be required to collect TCS* and file GSTR 8 in respect of restaurant services on which it pays tax in terms of section 9(5). On other goods or services supplied through ECO, which are *not notified u/s 9(5)*, ECOs *will continue to pay TCS* in terms of section 52 of CGST Act, 2017 in the same manner at present. As ECOs are already registered under rule 8(in Form GST-REG 01) of the CGST Rules, 2017 (as a supplier of their own goods or services), there would be *no mandatory requirement of taking separate registration* by ECOs for payment of tax on restaurant service under section 9 (5) of the CGST Act, 2017.

The aggregate turnover of a person supplying restaurant service through ECOs shall be computed as defined in section 2(6) of the CGST Act, 2017, and shall include the aggregate value of supplies made by the restaurant through ECOs. Accordingly, for threshold consideration or any other purpose in the Act, *the person providing restaurant service through ECO shall account for such services in his aggregate turnover*.

It may also be noted that on restaurant service, ECO *shall pay the entire GST liability in cash*. No ITC could be utilized for payment of GST on restaurant service supplied through ECO. ECOs provide their *own services as an electronic platform and an intermediary* for which it would acquire inputs/input service on which ECOs avail input tax credit (ITC).

The ECO charges commission/fee etc. for the services it provides. The ITC is utilized by ECO for payment of GST on services provided by ECO on its own account (say, to a restaurant). The situation in this regard remains unchanged even after ECO is made liable to pay tax on restaurant service. ECO would be eligible to ITC as before. Accordingly, ECO *shall not be required to reverse ITC on account of restaurant services* on which it pays GST in terms of section 9(5) of the Act. Well!!! These clarifications issued well ahead of the date of implementation will go a long way in a correct understanding of the legislative requirements and compliance of the same.

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Indian Stock Market Performance in 2021 – Investment Planning, Retirement Planning, Estate Planning & Tax Planning

Investment Planning, Retirement Planning, Estate Planning & Tax Planning – Indian Stock Market Performance in 2021 – Throwback

Contact us for Investment Planning, Retirement Planning, Estate Planning & Tax Planning. We have designed a 22 steps model to suggest to you the best possible funds to invest. Also, we review your funds periodically to determine if any alteration is required. Contact Us.

  • ⦁ Performance of Indices in 2020.
  • ⦁ Top Stocks in Nifty 50 – Top Gainers & Losers in 2020.
  • ⦁ Top Gainer and Loser in Nifty Mid Cap and Small Cap.

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Only ITC Reflecting in GSTR-2B (GST Returns) can be claimed from 01-01-2022.

First: – Section 16(2)(aa) notified from 1 Jan 2022

(aa) the details of the invoice or debit note referred to in clause (a) have been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37.

It means from 1 Jan 2022 Input available only as when as come in GSTR-2B

Effects of New Sub-clause 16(2)(aa)
• ITC cannot be availed beyond GSTR-2B.
• No concept of Provisional Credit.
• If GSTR-1 is filled by the supplier beyond the cutoff date, then ITC will not be available in the same month.

In simple language, we can claim only that amount of ITC in GST Returns, which is reflected in GSTR-2B.

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Attention: File GSTR-9 & 9C before 31/12/2021 to avoid Late fees.

Applicability of GSTR 9 & 9C –

⦁ GSTR-9 is optional for taxpayers with a turnover of up to Rs.2 crore.

⦁ GSTR-9 is required to be compulsorily filled by the taxpayers with a turnover of more than Rs.2 crore but less than or equal to Rs.5 crore for the FY 2020-21.

⦁ Taxpayers with a turnover exceeding Rs. 5 crores in the previous financial year are required to file Form GSTR-9 & 9C on a self-certification basis compulsorily by 31st Dec 2021.

Note – Verification table by CA/CMA in Part B of Form GSTR-9C has been deleted. Now, only verification by the registered person is required in GSTR-9C for applicable registered taxpayers. This change applies from FY-2020-21 onwards.

Consequences of not filing GSTR 9 and 9C before 31st December 2021 –

A registered person failing to furnish the GSTR-9 by the due date shall be liable to pay a late fee of INR 200 (INR 100 for CGST and SGST each) every day during which such failure continues subject to a maximum of an amount calculated at a half percent of his turnover in the State or Union territory. Further, while calculating maximum late fee, ‘turnover in State’ or ‘turnover in Union territory’ should be taken into consideration.

What are the things which need to be kept in mind GSTR-9 & 9C return before 31st December 2021?

⦁ The taxpayer would have the “option” to report taxable outward supplies net of debit and credit notes and amendments made under table 4A to 4G in GSTR-9 instead of reporting separately under table 4I to 4L.

⦁ The taxpayer is mandatorily required to report values of Export (5A) and SEZ (5B) supplies without payment of tax, supplies on which tax is to be paid by the recipient on a reverse charge basis (5C) separately.

⦁ The taxpayer would have the “option” to report exempt (5D), Nil rated (5E), Non-GST (5F) supplies cumulatively under table 5D if bifurcation of such supplies is not available.

⦁ The taxpayer would have the “option” to report taxable outward supplies net of debit and credit notes and amendments made under table 5A to 5F in GSTR-9 instead of reporting separately under table 5H to 5K.

⦁ The taxpayer is mandatorily required to report the details of ITC on capital goods separately. However, details of ITC on inputs and input services can be reported on a merged basis under the head ‘Inputs’ under Tables 6B & 6E.

⦁ The taxpayer would have the “option” to report the details of ITC on capital goods separately. However, details of ITC on inputs and input services can be reported on a merged basis under the head ‘Inputs’ under table 6C. Further, the details of Table 6C can be reported on a merged basis in Table 6D.

⦁ The taxpayer would have the “option” to report the accumulated amount of reversal from 7A to 7E can be filled in 7H, i.e., in ‘Other reversal’, but the reversal of transitional credit fields is mandatory.

⦁ Ideally, the value of Table 8D should be positive & if it is positive, then the total of 8E and 8F shall be equal to 8D.

⦁ Further other details of refund claimed during the year including sanctioned, rejected, or the pending amount & HSN Wise Summary of outward supplies and HSN Wise Summary of Inward supplies are optional.

Disclaimer – The above information is just a view of the author and should not be taken as legal advice. For Information and Education Purpose.

Contact us in case you need any services related to GST Consultation, GST Advisory, GST Registration Services, GST Returns or compliances, GST Notices and Assessments, GST Demand, GST Annual Return.

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