GST Alliance

Step by step guide on how to file GST Retrurn-3B
1. After login, select Return Dashboard
2. Select Financial Year 2017-18 and Month July. Click Search
3. Select GSTR-3B
4. Declare your liabilities and ITC claims in Section 3.1 and 4 respectively.
5. Enter details of interest and late fee, if payable, in Section 5.1
6. Click on Save GSTR-3B button. After you save the data, Submit button will get enabled. Please note that after submit, no modification is possible. Hence ensure that details are filled correctly before clicking on Submit button.
7. Submit GSTR-3B. System will create the liabilities and credit ITC into the ledgers.
8. To pay the taxes and offset the liability, please click the Payment of Tax tile.
9. Click CHECK BALANCE button to view the balance available for credit under Integrated Tax, Central Tax, State Tax and Cess. This will enable you to check the balance before making the payment for the respective minor heads.
10. Please fill out the section that specifies how you wants to set-off your liabilities using a combination of Cash and ITC.
a. System checks if you have sufficient Cash/ITC balance.
b. It also checks if the Reverse charge liabilities are set-off only through CASH.
c. System also checks if all liabilities are set-off. Part payment is not allowed in GSTR-3B. Hence, ensure sufficient balance in Cash and ITC Ledger to Offset liability
11. Click the OFFSET LIABILITY button to pay off the liabilities
12. Click on declaration statement
13. Select Authorized Signatory filing the Form
14. Click on File GSTR-3B button with DSC or EVC
15. Message for successful filing will appear and Acknowledgement will get generated

1. Pls get your GST registration certificate *framed / laminated* and display it on your shop/ office/ godown and every place of business which you have mentioned in the GST registration certificate.

2. Pls also get the GST registration number printed on the *SIGN BOARD* of your shop/ office/ godown and every place of business which you have mentioned in GST Registration.

3. Composition Dealers under GST are required to display wordings *"Composition Taxable Person"* in their shop/office/godown and every additional place and also on their SIGN BOARD.

4. Composition dealers under GST are required to print wordings *"Composition Taxable Person, not eligible to collect tax on supplies"* on the sales invoices to be issued under GST.

These are mandatory requirements as given in *CGST Rules No. 5 and 18*.

This is to update you on the following (in sequence of action to be taken):

1st July - GST Regime Starts
15th July onwards - Uploading of Sales / Outward Invoices
20th August - Pay tax and Upload GSTR-3B for July (Self declaration form)
1st – 5th September - File GSTR-1 for the month of July
6th – 10th September - Download and Reconcile GSTR-2 for the month of July (auto populated from GSTR-1)
16th – 20thSeptember - - File GSTR-1 for the month of August
20th September - Pay tax and Upload GSTR-3B for July (Self declaration form)
21st – 25th September - Download and Reconcile GSTR-2 for the month of August (auto populated from GSTR-1)
10th October - File GSTR-1 for the month of September
15th October - File GSTR-2 for the month of September
20th October - File GSTR-3 for the month of September.

these points on ....

Please follow the necessary steps for maintaining the healthy accounts hereafter:-

1. Make Rubber stamp of GSTIN.

2. Affix GSTIN stamp for all your invoices.

3. Take new bill book and start the beginning number from 1, 01 or 001.

4. If you have no printed bill book then you will print it to NEW GST MODEL BILL.

5. Give your GSTIN to all your suppliers.

6. Receive GSTIN from all your customers.

7. We will take ITC (Input Tax Credit) from business oriented expenses i.e., Telephone bill, Courier Bill, Stationery Bill, etc. Thus, hereafter you must receive the bills for all your business oriented expenses after mentioning your GSTIN.

8. You will place tax in bills for Local (Intra-State) as SGST – 9% and CGST – 9%. For outside state (Inter-State) as IGST-18%

9. Mostly online cash transactions are advisable and issue the DEBIT CARD for all your small expenses.

10. Tax must be paid for ADVANCE RECEIVED AMOUNT. Hence, don’t receive or paid any amount either without raising bills or collect bills.

11. No expenses have being written for more than Rs.10000/- in cash. If you receive more than 2 Lakhs from one person or company then that whole amount taken as PENALTY (Income Tax rule)

12. Please make bill wise closing stock as on 30.06.2017 for receiving ITC from our Sales Tax Department (Not for Service unit)

13. You have to pay tax for receiving bills from unregistered dealer. (Not for Service unit)

14. Please be ready of all Purchase, Sale, Expense Bills and Bank Statement on second day of each calendar month.

15. We must to file Sales transaction bills on or before 10th, and Purchase transaction bills on or before 15th and Final transaction ( Sales and Purchases) return on or before 20th of every month.

16. In GST portal, they have compliance rating method for GENUINE BUSSINESS MAN. Please follow the rules and get GENUINE BUSINESS MAN

State Codes in GST
01 – Jammu & Kashmir
02 – Himachal Pradesh
03 – Punjab
04 – Chandigarh
05 – Uttranchal
06 – Haryana
07 – Delhi
08 – Rajasthan
09 – Uttar Pradesh
10 – Bihar
11 – Sikkim
12 – Arunachal Pradesh
13 – Nagaland
14 – Manipur
15 – Mizoram
16 – Tripura
17 – Meghalaya
18 – Assam
19 – West Bengal
20 – Jharkhand
21 – Orissa
22 – Chhattisgarh
23 – Madhya Pradesh
24 – Gujarat
25 – Daman & Diu
26 – Dadra & Nagar Haveli
27 – Maharashtra
28 – Andhra Pradesh
29 – Karnataka
30 – Goa
31 – Lakshdweep
32 – Kerala
33 – Tamil Nadu
34 – Pondicherry
35 – Andaman & Nicobar Islands
36 - Telengana

How can I avail ITC on closing stock in gst?
Let's take example and see...
calculate the excise duty on closing stock, which can be availed as Input Tax credit.

{Closing Stock as on 30-6-2017
=30 Nos

Duty Per Unit ( Total Excise Duty 9,375 / Quantity 50 Nos )=187.5 / UnitBalance

Duty on closing Stock (Duty per unit 187.5 * Closing Stock 30 Nos )
=5,625}



Now, Ravindra Automobiles knows that they can avail the excise duty of Rs 5,625 on the closing stock held, but are they eligible to avail it?

To be eligible, Ravindra Automobiles has to meet the following conditions:

The closing stock held must be used or intended to be used for taxable supplies.
Yes, the closing stock of 30 nos will be used for taxable supplies.The benefit of such credit must be passed on, by way of reduced prices, to the recipient.
Since Input Tax credit is available, Ravindra Automobiles will no longer add this to the product cost. As a result the base cost will reduce, and subsequently result in reduction of price.They are eligible for Input Tax credit under GST.They should have invoices or any other prescribed duty/tax paying documents in respect of closing stock of inputs (including semi-finished goods and finished goods).
Ravindra Automobiles has the Rule 11 invoice issued by their supplier (Manufacturer) in respect the closing stock of 30 nos.The date of invoices or any other prescribed duty/tax paying documents must be within 12 months from the date of transitioning to GST.
The closing stock of 30 nos held is against the purchase dated 1-6-2017, which is within 12 months, from the date of implementation of GST on 1-7-2017

Ravindra Automobiles meets all the above conditions and is eligible to avail the excise duty of Rs 5,625 as CGST Input Tax credit.
..

For doubts plz feel to contact

Reverse Charge – A draconian provision under GST?

1. Sections 9(3) and Section 9(4) of the CGST Act and 5(3) and Section 5(4) of the IGST Act, deal with reverse charge mechanism

2. As per Section 2(98) of the CGST Act, “reverse charge” means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4) of section 9, or under sub-section (3) or sub- section (4) of section 5 of the Integrated Goods and Services Tax Act;

3. Under the definition u/s.2(98) of the term ‘reverse charge’ it would be the liability of the recipient to pay tax on the supply of such notified service

4. As per Section 9(4) of the CGST Act, the central tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.

5. We have a similar provision under Section 5(4) of the IGST Act.

6. The syndrome that we have to face is that both the CGST and the IGST Acts do not define the term ‘unregistered supplier’. Therefore perforce one has to assume that this term would mean any supplier who is not registered under GST and would include suppliers who are not required to be registered owing to their aggregate turnover being less than Rs. 20 lakhs under Section 22 of the Act. What does this mean in the real world? We have to look at an ocean of such unregistered suppliers of goods or services or both who are bound to be treated as unregistered suppliers and then go through the legal provisions to be GST compliant.

7. Imagine this RCM will cover purchase of coffee or tea from local vendors, purchase of stationery, procurement of services from small scale service providers, etc. Your profit and loss account will show it all and if the expenses you debit in P&L account are not supported by tax invoices from the registered dealers, then on such supplies you are statutorily required to pay tax on RCM notwithstanding the fact that you are or are not entitled to ITC under Section 16 to Section 18 of CGST Act or SGST Act.

8. Since RCM under the GST regime also covers inter-state inward supplies of goods, the very concept of RCM would assume draconian and very serious proportions. Thus, when an employee of a Delhi based company submits his travel claim related to his official trip to Chandigarh and claims a reimbursement towards his breakfast from a roadside joint in Karnal, his Delhi based employer would be required to discharge tax liability under the IGST Act in respect of this inward supply (of idli and dosa), of the value of say, Rs. 200/-. Imaging such bills are 200 per month amounting to Rs. 500,000/- then reverse charge has to be paid by Delhi based employer as per applicable rates for all such invoices – notwithstanding the fact that ITC may not be available for such expenses. Imagine the enormous task for computing tax liabilities under such provisions.

Further on Import of goods too RCM is applicable. And if you do not charge RCM and deposit, you violate the law and your return becomes invalid under Section 39 – you have not paid full tax.

9. Every business has to ensure that its suppliers, of both goods and services, are paying the right amount of taxes on time. This is accomplished through the reverse charge mechanism.

10. Further the Central government has the power to notify categories of supplies against which service recipient has to discharge the tax liability. Hence, all the provisions of the Act will now be applicable to the recipient of such goods or services as if he is the supplier of such goods or services.

11. The serious implication of such a mechanism is that when a person becomes liable to pay tax on the reverse charge, certain provisions like threshold exemption, time of supply, availing of input credit changes. There is a threshold limit for turnover aggregating to Rs.20 Lakhs for registration for normal tax payers under section 22 of the CGST Act but under reverse charge, there is no such limit under Section 24 of the CGST Act. The person has to be registered under GST irrespective of the aggregate limit. Therefore, it will not be unwise to say that through this mechanism the gimmick of Rs. 20 lakhs threshold limit withers away and virtually the Government is forcing all and sundry to come for registration or face penalties under the GST Law. Even services supplied by an Electronic Commerce Operator will attract reverse charge.

12. My worry is that time of supply and point of sale under reverse charge will also be different and too technical to appreciate. Thus majority of the taxable persons will violate this provision.

13. The service recipient can avail Input Tax credit on the Tax amount that is paid under reverse charge on goods and services. The only condition is that the goods and services are used or will be used for business or furtherance of business. Unfortunately, ITC cannot be used to pay output tax, which means that payment mode is only through cash under reverse charge.

14. The supplier has to mention in his tax invoice that the tax is payable on reverse charge.

15. Image GTA services; Directors; individual advocates or firm of advocates, taxi drivers or rent a cab operators( through e commerce operations), insurance agents, sponsorship services; author or music composer, photographers, artists, importers – the services provided by such persons to the service recipients will invoke reverse charge. What a voluminous work really?

16. If you run a business, you need to hurry and ensure that all the entities who supply you goods and services are registered for GST. If they aren’t, you will have to pay the GST on their behalf. This will increase your paper-work and can cause cash-flow issues as well.

17. To pay tax on reverse charge basis, first master the classification of goods art when you procure goods or services from unregistered persons ( not defined in law),
decide whetehr you would be entitled to ITC as per law ( that is decide whether the procurement is in the course of or furtherance of business)
and then decide the tax rates based on which you pay RCM.

And further through Section 31(3) requires you to issue an invoice in respect of goods/services procured from unregistered vendor and issue of a payment voucher in such cases at the time of making payment to such unregistered supplier.

18.Now imagine the scope of such a draconian provision ; cooperative housing societies; higher educational institutions, consultants working full time in the corporate sector; infra sector projects; builders – all facing huge compliance work.

19.My Take is that small traders or service providers will lose money – the big registered tax payers will charge a hidden tax component from such unregistered persons and then pay the same tax to the Government ( not from their pocket) and claim back ITC.

20.Lastly remember RCM must be paid and paid in cash through Electronic Cash Register notwithstanding the fact you may or may not claim ITC and as per strict time or supply and point of sale rules.

Get ready for a huge litigation on this issue.

A new form GSTR-3B will be introduced by the government. Every taxpayer needs to file his return on self-assessment basis for the first two months i.e July and August.

These return forms have to be filed by 20th of next month. Simultaneously, the taxpayer has to file the GSTR-1 for the month of July on or before September 5; an extension of 25 days has been extended for the month of July. For the month of August, this extension is limited to a period of 10 days. Once GSTR-1 is filed, GSTR-2 and GSTR-3 will auto-populate with information furnished under GSTR-1.

Eventually, this GSTR-3 will be matched against GSTR-3B and any difference will be refunded or needs to be paid as the case may be. However, no penalty or late fees will be charged on the difference.

How is GST applied?

GST is a consumption based tax/levy. It is based on the “Destination principle.” GST is applied on goods and services at the place where final/actual consumption happens.

GST is collected on value-added goods and services at each stage of sale or purchase in the supply chain. GST paid on the procurement of goods and services can be set off against that payable on the supply of goods or services.The manufacturer or wholesaler or retailer will pay the applicable GST rate but will claim back through tax credit mechanism.

But being the last person in the supply chain, the end consumer has to bear this tax and so, in many respects, GST is like a last-point retail tax. GST is going to be collected at point of Sale.