CBIC extends deadline for filing GST Annual Returns

 CBIC extends deadline for filing GST Annual Returns

The Central Board of Indirect Taxes and Customs ( CBIC ) has extended the filing of GST Annual Returns ( GSTR-9 ) for the Financial Year 2019-2020 till February 28th, 2021.

Earlier, the due date was December 31. There have been demands to extend the date for two reasons: first, the pandemic, and second, the due date for annual returns for FY19-20 is December 31.

GSTR-9 is an annual return to be filed yearly by taxpayers registered under GST. It consists of details regarding the outward and inward supplies made/received during the relevant previous year under different tax heads i.e. CGST, SGST & IGST and HSN codes. Basically, it is a consolidation of all the monthly/quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) filed in that year. Though complex, this return helps in extensive reconciliation of data for 100% transparent disclosures. The late fees for not filing the GSTR 9 within the due date is Rs 100 per day, per act. That means late fees of Rs 100 under CGST & Rs 100 under SGST will be applicable in case of delay. Thus, the total liability is Rs 200 per day of default. This is subject to a maximum of 0.25% of the taxpayer’s turnover in the relevant state or union territory. However, there is no late fee on IGST yet.

Budget 2020: Key Takeaways of Indirect Tax Proposals

In a Union Budget 2020 presented today, the Union Finance Minister Smt. Nirmala Sitharaman has proposed the various Indirect Tax Proposals.
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GST:

1. Cash reward system envisaged incentivizing customers to seek invoices.
2. Simplified return with features like SMS based filing for nil return and improved input tax credit (ITC) flow to be implemented from 1st April 2020 as a pilot run.
3. Dynamic QR-code capturing GST parameters proposed for consumer invoices.
4. Electronic invoices to capture critical information in a centralized system to be implemented in a phased manner.
5. Aadhaar based verification of taxpayers being introduced to weed out a dummy or non-existent units.
6. GST rate structure being deliberated to address inverted duty structure.

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Customs Duties:

1. Customs duty raised on footwear to 35% from 25% and on furniture goods to 25% from 20%.
2. Basic customs duty on imports of newsprint and light-weight coated paper reduced from 10% to 5%.
3. Customs duty rates revised on electric vehicles and parts of mobiles.
4. 5% health cess to be imposed on the imports of medical devices, except those exempt from BCD.
5. Lower customs duty on certain inputs and raw materials like a fuse, chemicals, and plastics.
6. Higher customs duty on certain goods like auto-parts, chemicals, etc. which are also being made domestically.
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Trade Policy Measures

1. Customs Act is amended to enable proper checks of imports under FTAs.
2. Rules of Origin requirements to be reviewed for certain sensitive items.
3. Provisions relating to safeguarding duties to be strengthened to enable regulating such a surge in imports in a systematic way of indirect tax proposals.
4. Provisions for checking to dump of goods and imports of subsidized goods being strengthened.
5. Suggestions for reviews of exemptions from customs duty to be crowd-sourced.
6. Excise duty proposed to be raised on Cigarettes and other tobacco products, no change made in the duty rates of bidis.
7. Anti-dumping duty on PTA abolished to benefit the textile sector.

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Unprecedented Milestones and Achievements of Indian Economy

1. India now the fifth largest economy in the world.
2. 4% average growth clocked during 2014-19 with inflation averaging around 4.5%.
3. 271 million people raised out of poverty during the 2006-16.
4. India‟s Foreign Direct Investment (FDI) elevated to US$ 284 billion during 2014-19 from US$ 190 billion during 2009-14.
5. Central Government debt reduced to 48.7% of GDP (March 2019) from 52.2% (March 2014).
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   Two cross-cutting developments: Proliferation of technologies (Analytics, Machine Learning, robotics, Bioinformatics, and Artificial Intelligence).

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DOWNLOAD 👇👇

1. 1. BUDGET SPEECH
   2. FINANCE BILL 2020
   3. MEMORANDUM
   4. PPT ON BUDGET
   5. HIGHLIGHTS-BUDGET 2020
   6. PPT ON BUDGET 2020

GST Invoices: Govt. proposes Dynamic QR-Code

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In a Union Budget 2020 presented today has proposed the Dynamic QR Code for Consumer GST Invoices.
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A simplified GST return will be implemented from the 1st April, 2020. While presenting the Union Budget 2020-21 in Parliament today, the Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman said that this is under pilot run.
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It will make return filing simple with features like SMS based filing for nil return, return pre-filling, improved input tax credit flow and overall simplification. The Finance Minister said that the refund process has been simplified and has been made fully automated with no human interface.
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Smt Sitharaman said that several measures have been taken for improving compliance and Aadhaar based verification of taxpayers is being introduced. This will help in weeding out a dummy or non-existent units, she added. The Union Budget has proposed Dynamic QR-code for consumer invoices. The GST parameters will be captured when payment for purchases is made through the QR-code in GST Invoices. A system of cash reward is envisaged to incentivise customers to seek invoice, the Finance Minister said. Invoice and input tax credit matching is being done wherein returns having a mismatch of more than 10% or above a threshold are identified and pursued.
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The electronic invoice is another innovation wherein critical information shall be captured electronically in a centralized system. It will be implemented in a phased manner starting from this month itself on an optional basis. It will facilitate compliance and return filing, the Finance Minister said.
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To Read the full text of the THE FINANCE BILL, 2020

CLICK HERE

Budget 2020 proposes MSMEs Turnover Threshold for Audit Increased to Rs 5 Crore from 1Cr

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In order to reduce the compliance burden on small retailers, traders, shop keepers who comprise the Medium, Small and Micro Enterprise (MSMEs) sector, the Union Budget proposed to raise by five times the turnover threshold for audit from the existing Rs. 1 crore to Rs. 5 crores. While presenting the Union Budget 2020-21 in Parliament today, the Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman said that in order to boost less cash economy, the increased limit shall apply only to those businesses which carry out less than 5% of their business transactions in cash. Currently, businesses having a turnover of more than Rs 1 crore are required to get their books of accounts audited by an accountant.
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In order to give a boost to the start-up ecosystem, the Union Budget has proposed to ease the burden of taxation on the employees by deferring the tax payment on ESOPs by five years or till they leave the company or when they sell their shares, whichever is earlier.
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The Finance Minister said that Start-ups, MSMEs have emerged as engines of growth for the Indian economy. Over the past year, the Government has taken several measures to handhold them and support their growth. During their formative years, Start-ups generally use Employee Stock Option Plan (ESOP) to attract and retain highly talented employees. ESOP is a significant component of compensation for these employees. Currently, ESOPs are taxable as perquisites at the time of exercise. This leads to a cash-flow problem for the employees who do not sell the shares immediately and continue to hold the same for the long-term.
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Further, an eligible Start-up having turnover up to Rs 25 crores is allowed the deduction of 100% of its profits for three consecutive assessment years out of seven years if the total turnover does not exceed Rs 25 crores. In order to extend this benefit to larger start-ups, the Budget 2020 has proposed to extend the turnover limit from the existing Rs 25 crores to Rs 100 crores. Moreover considering the fact that in the initial years, a start-up may not have adequate profit to avail of this deduction, the Budget 2020 proposes to extend the period of eligibility for the claim of deduction from the existing 7 years to 10 years.

Income Tax Slabs Changed, Rates Cut for earnings till Rs 15 Lakh in Optional Scheme

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In a Union Budget 2020 presented today, the Finance Minister Nirmala Sitharaman has announced the new changes in Income Tax Slabs.
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In order to provide significant relief to the individual taxpayers and to simplify the Income-Tax law, the Union Budget proposes to bring a new and simplified personal income tax regime wherein income tax rates will be significantly reduced for the individual taxpayers who forgo certain deductions and exemptions.
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While presenting the Union Budget 2020-21 in Parliament today, the Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman said, “The new tax regime shall be optional for the taxpayers.” She further said that an individual who is currently availing more deductions and exemptions under the Income Tax Act may choose to avail them and continue to pay tax in the old regime. The New personal Income tax regime proposes the following Income Tax Slabs:
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In the new tax regime, the substantial tax benefit will accrue to a taxpayer depending upon exemptions and deductions claimed by him. For example, a person earning Rs 15 lakh in a year and not availing any deductions etc. will pay only Rs, 1,95,000 as compared to Rs, 2,73,000 in the old regime. Thus his tax burden shall be reduced by 78,000 in the new regime. He would still be a gainer in the new regime even if he was taking a deduction of Rs 1.5 lakh under various sections of Chapter VI –A of the Income Tax Act under the old regime. The new tax regime will be optional for the taxpayers.
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As per the Memorandum explaining the provision in the Finance Bill, the option shall be exercised for every previous year where the individual or the HUF has no business income and in other cases, the option once exercised for a previous year shall be valid for that previous year and all subsequent years. The option shall become invalid for a previous year or previous years as the case may be if the individual or HUF fails to satisfy the conditions and other provisions of the Act shall apply.
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The new personal income tax rates will entail estimated revenue forgone of Rs 40,000 crore per year. Smt Sitharaman said, “We have also initiated measures to prefill the income tax return so that an individual who opts for the new regime would need no assistance from an expert to file his return and pay income tax.”
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The Finance Minister said that in order to simplify the income tax system, she has reviewed all the exemptions and deductions incorporated over the past several decades.” In the Budget, around 70 of the existing exemptions and deductions of different nature (more than 100) have been proposed to be removed. Remaining exemptions and deductions will be reviewed and rationalised in the coming years with a view to further simplifying the tax system and lowering the tax rate.

Key Highlights of Budget 2020

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In a two-hours  forty Minutes Budget 2020 speech highlights, the Union Finance Minister Nirmala Seetharaman has made some significant proposals for tax matters.
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Some of the Budget Highlights are below.

1. Income Tax Slab: 10 per cent for 5 to 7.5 lakh, 15 per cent for 7.5 lakh to 10 lakh, 20 per cent for 10 lakh to 12.5 lakh, 25 per cent for 12.5 lakh to 15 lakh and 30 per cent for above 15 Lakh.
2. Dividend Distribution Tax is removed and dividends are taxable.
3. 100% Tax Exemption for Foreign Sovereign wealth Fund Investments in India.
4. Tax on Cooperative societies proposed to be reduced to 22 per cent plus surcharge and cess, as against 30 per cent at present
5. 15% concessional rate of corporate tax extended to Power Sector
6. Exempts co-operative societies from Alternate Minimum tax
7. New proposed tax slabs that will be voluntarily for taxpayers but subject to not claiming any deductions.
8. Tax Audit threshold limit increased Rs. 5 cr from 1cr.
9. Section 50C and 45CA limit extended to 10% from 5%.
10. Income Tax Act to be amended to facilitate e-appeal
11. Section 80G -Donations allowed as a deduction will be pre-filled in ITR forms now onwards.
12. Additional Rs 1.5 lakh tax benefit on interest paid on affordable housing loans to March 2021.
13. ‘Vivad se Vishwas’ scheme for direct taxpayers whose appeals are pending at various forums.-
    • No Dispute but Trust Scheme
    • Direct Tax Dispute Resolution
    • payment of all taxes will lead to waiver of penalty and interest
    • applicable for all pending appeals at all levels
14. E-Invoice will be implemented in a phased manner
15. Income Tax Faceless Appeals to be introduced
16. Import duty hiked on inputs used by footwear and furniture MSMEs
17. 60 lakh more taxpayers joined the GST tax base in the last two years.
18. 40 Crores Income Tax Returns has been filed.
19. Proceeds on Taxes from Medical devices will be used in funding hospital development.
20. Tax Holiday to developers of affordable housing extended by 1 year.
21. Govt to set up investment clearance cell to entrepreneurs.
22. Scheme for reversion of duties & taxes on exported products to be launched this year
23. A Taxpayer’s charter will be institutionalized.
24. Changes in Companies Act – Criminal liabilities to be substituted by Civil liabilities.
25. Insurance cover for a depositor will be raised from 1 lakh to 5 lakh per depositor.
26. The robust mechanism in place to monitor the health of banks, depositors’ money is absolutely safe.
27. Turnover limit for exemption for Start Ups now 100 Cr.
28. Strengthen the role of PFRDAI; an amendment to be carried out in Pension Fund in PFRDAI.
29. Faceless Appeals on lines of Faceless Assessments

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DOWNLOAD 👇👇

1. BUDGET SPEECH
2. FINANCE BILL 2020
3. MEMORANDUM
4. PPT ON BUDGET

CBIC extends due date of filing GSTR-9 and GSTR-9C

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The Central Board of Indirect Taxes and Customs ( CBIC ) has extended the Due Date for furnishing GST Annual Return and Reconciliation Statement (GSTR-9 / 9A and GSTR-9C) for FY 2017-18.
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The CBIC said that, Considering the difficulties being faced by taxpayers in filing GSTR-9 and GSTR-9C for FY 2017-18 it has been decided to extend the due dates in a staggered manner for different groups of States to 3rd, 5th and 7th February 2020 as under.
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Group 1: Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Puducherry, Telangana, Andhra Pradesh, Other Territory – 3rd February 2020
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Group 2: Jammu and Kashmir, Himachal Pradesh, Punjab, Chandigarh, Uttarakhand, Haryana, Delhi, Rajasthan, Gujarat- 5th February 2020.
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Group 3: Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Andaman & Nicobar Islands, Jharkhand, Odisha, Chhattisgarh, Dadra and Nagar Haveli and Daman and Diu, Lakshadweep, Madhya Pradesh, Uttar Pradesh- 7th February 2020.
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GSTR-9 is an annual return to be filed yearly by taxpayers registered under GST. It consists of details regarding the outward and inward supplies made/received during the relevant previous year under different tax heads i.e. CGST, SGST & IGST and HSN codes. Basically, it is a consolidation of all the monthly/quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) filed in that year. Though complex, this return helps in extensive reconciliation of data for 100% transparent disclosures.
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The late fees for not filing the GSTR 9 within the due date is Rs 100 per day, per act. That means late fees of Rs 100 under CGST & Rs 100 under SGST will be applicable in case of delay. Thus, the total liability is Rs 200 per day of default. This is subject to a maximum of 0.25% of the taxpayer’s turnover in the relevant state or union territory. However, there is no late fee on IGST yet.