Tag: Indirect Tax BMS Notes Mumbai University

(1) Every deposit made towards tax, interest, penalty, fee or any other amount by a person by internet banking or by using credit or debit cards or National Electronic Fund Transfer or Real Time Gross Settlement or by such other mode and subject to such conditions and restrictions as may be prescribed, shall be credited to the electronic cash ledger of such person to be maintained in such manner as may be prescribed.

(2) The input tax credit as self-assessed in the return of a registered person shall be credited to his electronic credit ledger, in accordance with “section 41 or section 43A“, to be maintained in such manner as may be prescribed.

(3) The amount available in the electronic cash ledger may be used for making any payment towards tax, interest, penalty, fees or any other amount payable under the provisions of this Act or the rules made thereunder in such manner and subject to such conditions and within such time as may be prescribed.

(4) The amount available in the electronic credit ledger may be used for making any payment towards output tax under this Act or under the Integrated Goods and Services Tax Act in such manner and subject to such conditions and within such time as may be prescribed.

(5) The amount of input tax credit available in the electronic credit ledger of the registered person on account of:

(a) Integrated tax shall first be utilised towards payment of integrated tax and the amount remaining, if any, may be utilised towards the payment of central tax and State tax, or as the case may be, Union territory tax, in that order;

(b) The central tax shall first be utilised towards payment of central tax and the amount remaining, if any, may be utilised towards the payment of integrated tax;

(c) The State tax shall first be utilised towards payment of State tax and the amount remaining, if any, may be utilised towards payment of integrated tax;

“Provided that the input tax credit on account of State tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;”

(d) The Union territory tax shall first be utilised towards payment of Union territory tax and the amount remaining, if any, may be utilised towards payment of integrated tax;

“Provided that the input tax credit on account of Union territory tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;”

(e) The central tax shall not be utilised towards payment of State tax or Union territory tax; and

(f) The State tax or Union territory tax shall not be utilised towards payment of central tax.

(6) The balance in the electronic cash ledger or electronic credit ledger after payment of tax, interest, penalty, fee or any other amount payable under this Act or the rules made thereunder may be refunded in accordance with the provisions of section 54.

(7) All liabilities of a taxable person under this Act shall be recorded and maintained in an electronic liability register in such manner as may be prescribed.

(8) Every taxable person shall discharge his tax and other dues under this Act or the rules made thereunder in the following order, namely:

(a) Self-assessed tax, and other dues related to returns of previous tax periods;

(b) Self-assessed tax, and other dues related to the return of the current tax period;

(c) Any other amount payable under this Act or the rules made there under including the demand determined under section 73 or section 74.

(9) Every person who has paid the tax on goods or services or both under this Act shall, unless the contrary is proved by him, be deemed to have passed on the full incidence of such tax to the recipient of such goods or services or both.

(a) The date of credit to the account of the Government in the authorised bank shall be deemed to be the date of deposit in the electronic cash ledger;

(b) The expression,

(i) “Tax dues” means the tax payable under this Act and does not include interest, fee and penalty; and

(ii) “Other dues” means interest, penalty, fee or any other amount payable under this Act or the rules made thereunder.

“(10) A registered person may, on the common portal, transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under this Act, to the electronic cash ledger for integrated tax, central tax, State tax, Union territory tax or cess, in such form and manner and subject to such conditions and restrictions as may be prescribed and such transfer shall be deemed to be a refund from the electronic cash ledger under this Act.”

(11) Where any amount has been transferred to the electronic cash ledger under this Act, the same shall be deemed to be deposited in the said ledger as provided in sub-section (1).

Section 49A: Utilisation of input tax credit subject to certain conditions:

Notwithstanding anything contained in section 49, the input tax credit on account of central tax, State tax or Union territory tax shall be utilized towards payment of integrated tax, central tax, State tax or Union territory tax, as the case may be, only after the input tax credit available on account of integrated tax has first been utilized fully towards such payment.

Section 49B: Order of utilisation of input tax credit

Notwithstanding anything contained in this Chapter and subject to the provisions of clause (e) and clause (f) of sub-section (5) of section 49, the Government may, on the recommendations of the Council, prescribe the order and manner of utilisation of the input tax credit on account of integrated tax, central tax, State tax or Union territory tax, as the case may be, towards payment of any such tax

Provisions of section 49 stated above very important: Manner of utilisation of credit so I have tried to explain in very simplified manner.

• Every person who is liable to be registered under section 22 or section 24 shall apply for registration in every such State or Union territory in which he is so liable within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed:

Provided that a casual taxable person or a non-resident taxable person shall apply for registration at least five days prior to the commencement of business.

• A person seeking registration under this Act shall be granted a single registration in a State or Union territory:

Provided that a person having multiple business verticals in a State or Union territory may be granted a separate registration for each business vertical, subject to such conditions as may be prescribed.

• A person, though not liable to be registered under section 22 or section 24 may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered person, shall apply to such person.
• A person who has obtained or is required to obtain more than one registration, whether in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act.
• Where a person who has obtained or is required to obtain registration in a State or Union territory in respect of an establishment, has an establishment in another State or Union territory, then such establishments shall be treated as establishments of distinct persons for the purposes of this Act.
• Every person shall have a Permanent Account Number issued under the Income tax Act, 1961 in order to be eligible for grant of registration:

Provided that a person required to deduct tax under section 51 may have, in lieu of a Permanent Account Number, a Tax Deduction and Collection Account Number issued under the said Act in order to be eligible for grant of registration.

• Notwithstanding anything contained in sub-section (6), a non-resident taxable person may be granted registration under sub-section (1) on the basis of such other documents as may be prescribed.
• Where a person who is liable to be registered under this Act fails to obtain registration, the proper officer may, without prejudice to any action which may be taken under this Act or under any other law for the time being in force, proceed to register such person in such manner as may be prescribed.
• Notwithstanding anything contained in sub-section (1),

(a) Any specialised agency of the United Nations Organisation or any Multilateral Financial Institution and Organisation notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries; and

(b) Any other person or class of persons, as may be notified by the Commissioner, shall be granted a Unique Identity Number in such manner and for such purposes, including refund of taxes on the notified supplies of goods or services or both received by them, as may be prescribed.

• The registration or the Unique Identity Number shall be granted or rejected after due verification in such manner and within such period as may be prescribed.
• A certificate of registration shall be issued in such form and with effect from such date as may be prescribed.
• A registration or a Unique Identity Number shall be deemed to have been granted after the expiry of the period prescribed under sub-section (10), if no deficiency has been communicated to the applicant within that period.

GST or Goods or Services Tax is a consumption-based tax, it is an indirect tax which levied on sale, manufacturing, consumption, import and export of Goods or Services. The Act made effective with the view to remove cascading of taxes which were there in India. There were number of taxes which were imposed on the goods or services and the input of different taxes paid by the taxpayer were not available to him in different stages due to which the price of the goods as well service increased when ultimately consumed by the consumer. In order to provide the benefit of the input at various stages and in order to cascade the effect of tax GST Act, was introduced. After implementation of GST Act, all the taxes like VAT, CST, Entry tax, entertainment tax and different other tax as well as duties were subsumed and only one tax ie,., GST was introduced. One nation One Tax was the mantra.

(1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:

Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees.

Provided further that the Government may, at the request of a special category State and on the recommendations of the Council, enhance the aggregate turnover referred to in the first proviso from ten lakh rupees to such amount, not exceeding twenty lakh rupees and subject to such conditions and limitations, as may be so notified.

Provided also that the Government may, at the request of a State and on the recommendations of the Council, enhance the aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupees in case of supplier who is engaged exclusively in the supply of goods, subject to such conditions and limitations, as may be notified.

(2) Every person who, on the day immediately preceding the appointed day, is registered or holds a licence under an existing law, shall be liable to be registered under this Act with effect from the appointed day.

(3) Where a business carried on by a taxable person registered under this Act is transferred, whether on account of succession or otherwise, to another person as a going concern, the transferee or the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession.

(4) Notwithstanding anything contained in sub-sections (1) and (3), in a case of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may be, demerger of two or more companies pursuant to an order of a High Court, Tribunal or otherwise, the transferee shall be liable to be registered, with effect from the date on which the Registrar of Companies issues a certificate of incorporation giving effect to such order of the High Court or Tribunal.

SECTION 23 OF GST ACT: Person Not Liable for Registration

A person shall not be liable to take registration under the Act if he is

• Engaged in any business of supplying goods or services which are not liable to tax or wholly exempt from tax under Act or under the IGST Act.
• An agriculturist, to the extent of supply of produce out of cultivation of land.

Further, the government can also exempt any person from taking registration through a notification in the official gazette.

SECTION 24 OF GST ACT: Compulsory registration in certain cases

Here is the list of people who are compulsory required to get themselves registered under the Act

(i) Persons making any inter-State taxable supply;

(ii) Casual taxable persons making taxable supply;

(iii) Persons who are required to pay tax under reverse charge;

(iv) Person who are required to pay tax under sub-section (5) of section 9;

(v) Non-resident taxable persons making taxable supply;

(vi) Persons who are required to deduct tax under section 51, whether or not separately registered under this Act;

(vii) Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;

(viii) Input Service Distributor, whether or not separately registered under this Act;

(ix) Persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52;

(x) Every electronic commerce operator;

(xi) Every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person; and

(xii) Such other person or class of persons as may be notified by the Government on the recommendations of the Council.

Documents for GST Registration

1. PAN card
2. Valid Phone no. and Email id for OTP.
3. Passport size photograph of the Applicant.
4. Proof of principle place of business (any one)

• Legal ownership document
• Electricity bill
• Municipal khata copy
• Property tax receipt

5. Proof of details of Bank Account

• Bank statement
• Cancelled cheque
• The first page of the passbook

6. Other details

• Proof of appointment of Authorized Signatory (Letter of Authorization or copy of board resolution)
• Authorized Signatories photo
• Incorporation certificate (for Company and LLP)
• List of Goods and Services
• DSC

Section 51 of the CGST Act provides for deduction of tax at source under certain circumstances. This section also lists out the deductor’s who are mandated by the central Govt to deduct tax at source, the rate of tax deduction and the procedure for remittance of tax deducted.

Liable to deduct TDS under GST law:

• A department or an establishment of the Central Government or State Government; or
• Local authority; or
• Governmental agencies; or
• Such persons or category of persons as may be notified by the Government.

When TDS to be deducted under GST:

TDS is required to be deducted where Deductees are the Suppliers whose total value of supply of Taxable goods and/or Services under a Contract exceeds Rs.250000/- exclusive of tax & cess as per the invoice.

Categories of Persons Not liable to deduct TDS under GST:

Tax is not liable to be deducted at source in the following cases:

• When Goods/Services are supplied from a public sector undertaking to another public sector undertaking, whether or not a distinct person.
• When supply of goods and/or services takes place between one person to another person specified in clauses a, b, c & d of Sec.51 (1) of CGST Act.

Registration of deductor of tax in GST:

• Section 24(vi) of the CGST Act, 2017 provides for compulsory liability for registration for the deductor’s of TDS.
• A deductor in GST will be required to get registered and obtain a GSTIN [Goods & Services Tax Identification Number] as a TDS deductor even if he is separately registered as a supplier.
• A deductor has to get himself registered through the portal www.gst.gov.in by using their PAN/TAN.

Deposit of TDS under GST with the Government:

The amount of tax deducted at source should be deposited to the Government account by the deductor by 10th of the succeeding month.

TDS Return under GST:

Every registered TDS deductor is required to file a Return in FORM GSTR 7 electronically within 10th of the month succeeding the month in which deductions have been made to avoid payment of any late fee, interest. [Section 39(3) of the CGST Act, 2017 read with Rule 66 of the CGST Rules, 2017.

Late fee, interest and penalty under GST in respect of TDS:

The provision of late Fees in respect of TDS in the GST is a layered provision:

• If the deductor has not remitted the amount deducted as TDS to the Govt within the prescribed time limit, he is liable to pay penal interest u/s.50 in addition to the amount of tax deducted.
• If the deductor fails to furnish the return in FORM GSTR-7 (under Section 39(3)) by the due date (i.e. within 10 days of the month succeeding the month in which deduction was made) he shall pay a late fee of Rs. 100/- per day under CGST Act &SGST/UTGST Act separately during which such failure continues subject to a maximum amount of Rs. 5000/- each under CGST Act & SGST/UTGST Act.
• If any deductor fails to furnish the certificate of TDS deduction to the deductee [i.e. the supplier] within 5 days of crediting the amount so deducted to the Government (i.e. furnishing return in FORM GSTR7), the deductor shall pay a late fee of Rs. 100/- per day under CGST Act & SGST/UTGST Act separately from the day after the expiry of 5-day period until the failure is rectified, subject to a maximum amount of Rs.5000/- each under CGST Act & SGST/UTGST Act.

Refund on excess/erroneous TDS deduction under GST:

The deductor or the deductee can claim refund of excess deduction or erroneous deduction. The provisions of section 54 relating to refunds would apply in such cases. However, if the deducted amount is already credited to the electronic cash ledger of the supplier, the same shall not be refunded.

Tax Collected at Source (TCS) under GST means the tax collected by an e-commerce operator from the consideration received by it on behalf of the supplier of goods, or services who makes supplies through the operator’s online platform. TCS will be charged as a percentage on the net taxable supplies. The provision of TCS under GST is dealt under Section 52 of the CGST Act.

Liable to collect TCS under GST

Certain operators who own, operate and manage e-commerce platforms are liable to collect TCS. TCS applies only if the operators collect the consideration from the customers on behalf of vendors or suppliers. In other words, when the e-commerce operators pay the consideration collected to the vendors, they have to deduct an amount as TCS and pay the net amount.

Here are few exceptions to the TCS provisions for the services provided by an e-commerce platform:

• Hotel accommodation/clubs (unregistered suppliers)
• Transportation of passengers: Radio taxi, motor cab or motorcycle
• Housekeeping services like plumbing, carpentry etc. (unregistered suppliers)

Rate of TCS under GST:

Every electronic commerce operator, not being an agent, shall collect an amount calculated @ 0.5% of the net value of intra-State taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the said operator.

Deposit of TCS under GST by ECO to Government:

The TCS amount collected by the ECO has to be remitted to the Government Treasury within 10 days after the end of the month in which the collection was made.

Filing of Monthly & Annual Statements by ECO:

An electronic statement has to be filed by the ECO containing details of the outward supplies of goods and/ or services effected through it, including the supplies returned through it and the amount collected by it as TCS during the month within 10 days after the end of each month in which supplies are made. [Sub-section (4)]

Additionally, the ECO is also mandated to file an Annual Statement on or before 31st day of December following the end of the financial year. [Subsection (5)]

Rectification in Monthly Statement by ECO:

If the ECO discovers any discrepancy on his own not being the result of any scrutiny, inspection or enforcement proceedings, he has to rectify the statement. However, the limit for rectification is earlier of the two:

(i) Due date for filing statement for the month of September following the end of the financial year.

OR

(ii) Actual date of furnishing of relevant annual statement. Interest provisions are [Sub-section (6)]

Claim of Credit by Supplier:

Supplier can claim credit of the TCS amount in his electronic cash ledger. This amount should reflect in the monthly statement filed by the e-commerce operator. [Sub-section (7)].

Matching of details of supplies:

The details of the supplies, including the value of supplies, submitted by every operator in the statements will be matched with the details of supplies submitted by all such suppliers in their returns. [Sub-section (8)]

If there is any discrepancy in the value of supplies, the same would be communicated to both of them. If such discrepancy in value is not rectified within the given time, then such amount would be added to the output tax liability of such supplier succeeding the calendar month in which the discrepancy is communicated, where outward supplies furnished by operator is more than the value as shown by supplier.

The supplier will have to pay the differential amount of output tax along with interest from the date such tax was due till the date of its payment. [Subsections 9 To 11].

Notice to the Operator:

An officer not below the rank of Deputy Commissioner can issue notice to an operator, asking him to furnish details relating to volume of the goods/services supplied, stock of goods lying in warehouses/godowns etc. [Sub-section (12)]

The operator is required to furnish such details within 15 working days. [Subsection (13)]

In case an operator fails to furnish the information, besides being liable for penal action under section 122, it shall also be liable for penalty up to ` 25,000. [Sub-section (14)]

Concepts relating to TCS Registration under GST:

Section 24(x) of the CGST Act, 2017 makes it mandatory for every e-commerce operator to get registered under GST.

Similarly, section 24(ix) of the CGST Act, 2017 makes it mandatory for every person who supplies goods/services through an operator to get registered under GST.

TCS Statement under GST:

The amount of tax collected by the operator is required to be deposited by the 10th of the following month, during which such collection is made.

The operator is also required to furnish a monthly statement in Form GSTR-8 by the 10th of the following month.

The operator is also required to file an annual statement in prescribed form by the 31st of December following the end of every financial year.

The operator can rectify errors in the statements filed, if any, latest by the return to be filed for the month of September, following the end of every financial year.

The details furnished by the operator in GSTR-8 shall be made available electronically to each of the suppliers in Part C of FORM GSTR-2A on the common portal after the due date of filing of FORM GSTR-8.

The tax invoice is a standard format required under the GST system. Sec 31 of the CGST Act 2017 mandates the issuance of an invoice or a bill of supply for every supply of Goods or Services.

Section 31; Tax Invoice:

(1) A registered person supplying taxable goods shall, before or at the time, of:

(a) Removal of goods for supply to the recipient, where the supply involves movement of goods; or

(b) Delivery of goods or making available thereof to the recipient, in any other case.

Issue a tax invoice showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed:

Provided that the Government may, on the recommendations of the Council, by notification, specify the categories of goods or supplies in respect of which a tax invoice shall be issued, within such time and in such manner as may be prescribed

(2) A registered person supplying taxable services shall, before or after the provision of service but within a prescribed period; issue a tax invoice, showing the description, value, tax charged thereon and such other particulars as may be prescribed:

Provided that the Government may, on the recommendations of the Council, by notification and subject to such conditions as may be mentioned therein, specify the categories of services in respect of which:

(a) Any other document issued in relation to the supply shall be deemed to be a tax invoice; or

(b) Tax invoice may not be issued.

(3) Notwithstanding anything contained in sub-sections (1) and (2):

(a) A registered person may, within one month from the date of issuance of certificate of registration and in such manner as may be prescribed, issue a revised invoice against the invoice already issued during the period beginning with the effective date of registration till the date of issuance of certificate of registration to him;

(b) A registered person may not issue a tax invoice if the value of the goods or services or both supplied is less than two hundred rupees subject to such conditions and in such manner as may be prescribed;

(c) A registered person supplying exempted goods or services or both or paying tax under the provisions of section 10 shall issue, instead of a tax invoice, a bill of supply containing such particulars and, in such manner, as may be prescribed:

Provided that the registered person may not issue a bill of supply if the value of the goods or services or both supplied is less than two hundred rupees subject to such conditions and in such manner as may be prescribed;

(d) A registered person shall, on receipt of advance payment with respect to any supply of goods or services or both, issue a receipt voucher or any other document, containing such particulars as may be prescribed, evidencing receipt of such payment;

(e) Where, on receipt of advance payment with respect to any supply of goods or services or both the registered person issues a receipt voucher, but subsequently no supply is made and no tax invoice is issued in pursuance thereof, the said registered person may issue to the person who had made the payment, a refund voucher against such payment

(f) A registered person who is liable to pay tax under sub-section (3) or sub-section (4) of section 9 shall issue an invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both;

(g) A registered person who is liable to pay tax under sub-section (3) or sub-section (4) of section 9 shall issue a payment voucher at the time of making payment to the supplier.

Bill of supply: A bill of supply as per section 31(3)(c) is required to be issued in the following two cases:

(a) Where the supplier is a registered person who has opted for composition tax under section 10 of the Act (and shall not charge tax on the bill of supply); or

(b) Where the goods / Services being supplied by any registered person are wholly exempted.

Documents required to be issued in respect of supplies liable to tax under reverse charge mechanism [Section 31(3)(f) & (g)]

(a) Where tax is payable on reverse charge basis in terms of Section 9(3) or 9(4), or the corresponding provisions of the IGST Act, 2017, the recipient of supply is required to pay tax on reverse charge basis. In this regard, the following may be noted:

There are two cases:

Supplier is registered: Tax Invoice not required and payment voucher required.

Supplier is not registered: Tax Invoice required and payment voucher required.

Tax Invoice in respect of Goods:

Tax Invoice in respect of Services:

Rule 46 Contents of Tax invoice:Tax invoice issued by the registered person in respect of goods and services shall be containing the following particulars:

Invoices for Exports or Supplies to SEZ

Section 32: Prohibition of unauthorised collection of tax

(1) A person who is not a registered person shall not collect in respect of any supply of goods or services or both any amount by way of tax under this Act.

(2) No registered person shall collect tax except in accordance with the provisions of this Act or the rules made there under.

Section 33: Amount of tax to be indicated in tax invoice and other documents

Notwithstanding anything contained in this Act or any other law for the time being in force, where any supply is made for a consideration, every person who is liable to pay tax for such supply shall prominently indicate in all documents relating to assessment, tax invoice and other like documents, the amount of tax which shall form part of the price at which such supply is made.

EWay Bill is an Electronic Way bill for movement of goods to be generated on the eWay Bill Portal. A GST registered person cannot transport goods in a vehicle whose value exceeds Rs. 50,000 (Single Invoice/bill/delivery challan) without an e-way bill that is generated on ewaybillgst.gov.in.

Alternatively, Eway bill can also be generated or cancelled through SMS, Android App and by site-to-site integration through API.

When an eway bill is generated, a unique Eway Bill Number (EBN) is allocated and is available to the supplier, recipient, and the transporter.

E-Way Bill under GST

E-way bill is an electronic document generated on the GST portal evidencing movement of goods. It has two Components

Part A comprising of details of GSTIN of recipient, place of delivery (PIN Code), invoice or challan number and date, value of goods, HSN code, transport document number (Goods Receipt Number or Railway Receipt Number or Airway Bill Number or Bill of Lading Number) and reasons for transportation; and

Part B comprising of transporter details (Vehicle number). As per Rule 138 of the CGST Rules, 2017, every registered person who causes movement of goods (which may not necessarily be on account of supply) of consignment value more than Rs. 50000/- is required to furnish above mentioned information in part A of e-way bill. The part B containing transport details helps in generation of e-way bill.

Bill Generators:

Registered Person: Eway bill must be generated when there is a movement of goods of more than Rs 50,000 in value to or from a registered person. A Registered person or the transporter may choose to generate and carry eway bill even if the value of goods is less than Rs 50,000.

Unregistered Persons: Unregistered persons are also required to generate e-Way Bill. However, where a supply is made by an unregistered person to a registered person, the receiver will have to ensure all the compliances are met as if they were the supplier.

Transporter: Transporters carrying goods by road, air, rail, etc. also need to generate e-Way Bill if the supplier has not generated an e-Way Bill.

Modes of e-way bill generation

Using Web based system:

Using SMS based facility: The taxpayer has to register the mobile numbers through which he intends to generate the e-way bill on the e-way bill system. For further details, please see the user manual for SMS based e-way bill generation.

Using Android App: The mobile app is available only for the taxpayers and enrolled transporters. It is not available in Play Store. The main user has to login and select the ‘for mobile app’ under registration menu. The system asks to select the user/sub-user and enter the IMEI number of the user. Once it is entered, the concerned user gets the link in his registered mobile to download the app through SMS. Now, the user has to download the app by clicking that link and enable it to get installed on the mobile.

Bulk generation facility: Through this facility, user can upload multiple invoices and generate multiple e-Way bill at one go. This facility can be used by the taxpayers or transporters who have automated their invoice generation system. In one go, they can prepare bulk requests for e-way bills in a file from their automated system, and upload it on the common portal and generate e-way bill in one go. This avoids duplicate data entry into e-way bill system and avoids data entry mistakes also. Any taxpayer or transporter can use the bulk generation facility.

Using Site-to-Site integration: The integration between e-way bill system and registered persons’ system can be done through APIs. For availing this facility, the registered person should register the server details of his/her systems (through which he wants to generate the e-way bill using the APIs of e-way bill system) with e-way bill system. For further details, please go through the user manual.

Using GSP ( Goods and Services Tax Suvidha Provider)

Exceptions to e-way bill requirement

• Goods being transported by a non-motorised conveyance.
• Goods being transported from the port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs.
• Transport of goods as specified in Annexure to Rule 138 of the CGST Rules, 2017.
• In respect of movement of goods within such areas as are notified under rule 138(14) (d) of the SGST Rules, 2017 of the concerned State.
• Consignment value less than Rs. 50,000/-

Latest News and Updates

Updated as on 29th August 2021

From 1st May 2021 to 18th August 2021, the taxpayers will not face blocking of e-way bills for non-filing of GSTR-1 or GSTR-3B (two months or more for monthly filer and one quarter or more for QRMP taxpayers) for March 2021 to May 2021.

Update as on 4th August 2021

Blocking of e-way bills due to non-filing of GSTR-3B resumes from 15th August 2021.

Update as on 22nd December 2020

1. The CBIC increased the distance per day in case of goods transported through vehicles, other than the over-dimensional cargo, for determining the validity, as follows:
2. It is one day: For a distance of up to 200 km as against earlier 100 km
3. An additional day is taken- For every additional 200 km or part thereof, as against previously notified additional 100 km or part thereof
4. Regarding blocking of the e-way bill where a taxpayer fails to file GSTR-3B, the provision has been amended to replace two or more months with two or more tax periods. The same has been changed to include the quarterly return filers.

Statement of outward Supply [ Section-37]

1. A registered taxable person shall furnish electronic statement of the details of outward supplies of goods and services for the tax period on or before the 10thof succeeding tax period other than the following:

• Input service distributor
• Non resident taxable person
• Taxable person u/s 10 [ Composition Scheme]
• Person who is deducting at source
• Person collecting tax at source

Statement of Inward Supplies [ Section-38]

• A registered person shall furnish the detail of inward supplies of goods and services other than the following person including the goods and services under reverse charge basis and goods and services received under IGST. RP can rectify, modify, add or delete the detail of outward supply furnished under point 1 of Section 37.
• Input service distributor
• Non resident taxable person
• Taxable person u/s 10 [ Composition Scheme]
• Person who is deducting at source
• Person collecting tax at source

Returns [ Section- 39]

• A registered person shall furnish the return electronically of inward and outward supplies of goods and / or services, input tax credit, tax payable , tax paid and other particular as may be prescribed other than the following person:
• Input service distributor
• Non-resident taxable person
• Taxable person u/s 10 [Composition Scheme]
• Person who is deducting at source
• Person collecting tax at source

First Return [ Section 40 ]

Every RTP who has made outward supply in the period between the date of liability to date of registration shall file the first return after grant of registration.

Claim of input tax credit and provisional acceptance [ Section 41]

Every RP shall claim input tax credit as per the condition and restriction thereof on self-assessed basis and take credit in his electronic credit ledger.

The above credit can be utilized against self-assessed outward tax liability.

Matching, reversal and reclaim of input tax credit [Section 42]

• Every RTP who has furnished inward supply [recipient] return shall be matched with return of supplier.
• The credit of input tax shall be matched with the return of outward supply of supplier.
• Where ITC is in excess of the tax declare by the supplier in his return, the same shall be communicated to both supplier and recipient. If the discrepancy is not rectified by supplier, the same shall be added to outward tax liability of the recipient in the next return.
• If there is duplication of ITC, same shall be added to outward tax liability of recipient in the month of communication.
• If the supplier rectifies the mistake in due time in his return, the recipient can reduce his outward tax liability.
• If any amount is added to outward tax liability shall also attract interest u/s 50. Interest shall be computed from the date taking credit to date of adding to outward liability.
• If there is reduction in outward tax liability and interest is also paid on the same, both shall be refunded to his electronic cash ledger.

Matching, reversal and reclaim of reduction in output tax liability [ Section 43]

• Credit note issued by supplier of goods and/ or services shall be matched.

with

1. The corresponding reduction in input tax credit by recipient
2. For duplication of claim for reduction in tax liability

• Above claim will be matched and accepted shall be communicated to supplier and recipient. If outward tax liability reduction is found to be in excess of reduction in input tax credit shall be informed to both.
• Duplication of claim for reduction in output tax liability shall be communicated to supplier.
• If the discrepancy has not been rectified by recipient in his return of month in which it is communicated, the amount shall be added to the outward tax liability of supplier. This addition shall be along with interest u/s 50.
• If the credit note is accepted and corresponding reduction is done by recipient in his inward return. Interest shall be refunded to supplier.

Annual Return [ Section 44]

1. Every RP except the following shall furnish annual return on or before 31stDecember in GSTR –9 following the end of financial year.

• Input service distributor
• Non-resident taxable person
• Casual Taxable Person
• Person who is deducting at source under section 51
• Person collecting tax at source under section 52

2. Every RP who has to get his account audited under Section 35[5] (whose aggregate turnover in the financial year exceed Rs. 2 Crore shall furnish the annual return GSTR-9C under point no.1 electronically for every financial year along with audited financial statement and reconciliation thereof.
3. Casual Tax person will file the annual return on GSTR-9A.
4. Electronic commerce operator shall file GSTR-9B.

Final Return [ Section 45]

Every RP who applied for the cancellation of registration shall file return in GSTR-10 within three months from the date of cancellation or cancellation order whichever is later.

Late Fees [ Section 47]

1. Any person who fails to furnish the detail u/s 37 and 38 or return u/s 39 and 45 by due date shall pay late fees of Rs. 100 per day subject to maximum of Rs. 5000.
2. Any person who fails to furnish the return u/s 44 shall pay late fees of Rs. 100 per day subject to maximum of 0.25% of turnover of state or union territory.

Section 48: Goods and Services tax practitioners. CGST ACT 2017

(1) The manner of approval of goods and services tax practitioners, their eligibility conditions, duties and obligations, manner of removal and other conditions relevant for their functioning shall be such as may be prescribed.

(2) A registered person may authorize an approved goods and services tax practitioner to furnish the details of outward supplies under section 37, the details of inward supplies under section 38 and the return under section 39 or section 44 or section 45 1 “and to perform such other functions” in such manner as may be prescribed.

(3) Notwithstanding anything contained in sub-section (2), the responsibility for correctness of any particulars furnished in the return or other details filed by the goods and services tax practitioners shall continue to rest with the registered person on whose behalf such return and details are furnished.

Input Tax Credit (ITC) means the amount of tax paid on purchase of Input Goods, Input Services and Capital Goods and includes tax paid under Reverse charge. Then at the time of paying tax on output, you can reduce the tax you have already paid on inputs and pay the balance amount. This mechanism is called utilization of input tax credit. Due to this mechanism Input Tax Credit is the backbone of GST regime because these provisions of ITC makes GST a value added tax i.e. collection of tax at all points after allowing credit for inputs.

(1) Every registered person shall, subject to such conditions and restrictions as may be prescribed and, in the manner, specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person.

(2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless:

(a) He is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed;

(b) He has received the goods or services or both. Explanation. For the purposes of this clause, it shall be deemed that the registered person has received the goods where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise;

(c) Subject to the provisions of section 41, the tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilisation of input tax credit admissible in respect of the said supply; and

(d) He has furnished the return under section 39: Provided that where the goods against an invoice are received in lots or instalments, the registered person shall be entitled to take credit upon receipt of the last lot or instalment:

Provided further that where a recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon, in such manner as may be prescribed: Provided also that the recipient shall be entitled to avail of the credit of input tax on payment made by him of the amount towards the value of supply of goods or services or both along with tax payable thereon.

(3) Where the registered person has claimed depreciation on the tax component of the cost of capital goods and plant and machinery under the provisions of the Income-tax Act, 1961, the input tax credit on the said tax component shall not be allowed.

(4) A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier.

No ITC if Depreciation is claimed on Tax component of Capital Goods: When the registered person claims the Depreciation on tax component of cost of Capital Goods and Plant & Machinery, then the Input Tax Credit on said component shall not be allowed.

Time limit for availing ITC: A registered person shall not be entitled to take Input tax Credit in respect of Invoice or Debit Note for supply of goods or services or both

• After the “Due Date of furnishing of Return u/s 39 for the month of September following the end of Financial Year to which such Invoice pertains” or
• “Date of furnishing of relevant Annual Return”, whichever is earlier.

Section 2(59): “Input” means any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business.

Section 2(60): “Input Service” means any service used or intended to be used by a supplier in the course or furtherance of business.