GST Registration Trend (Aug – 17 till June – 19) IN INDIA
The number of registered taxpayers at the time when the GST was rolled out was Rs 65 lakh, which today stands at Rs 1.2 crore, a jump of 84% over the last two years. This shows a significant widening of the tax base and formalisation of the economy under the GST.
GST RETURNS TREND
The number of registered taxpayers at the time when the GST was rolled out was Rs 21.30 lakh, which today stands at Rs 29 crore, a jump of 74% over the last two years
The total number of GSTR-3B Returns filed for the month of May up to 30th June 2019 was 74.38 lakh. After a slow start, the number of registered taxpayers who started complying with GST timelines grew. For the first month (July 2017), only 38 lakhs out of 68 lakh registered taxpayers had filed GSTR 3B returns by August 25. This figure has now almost doubled to 72.5 lakh by April 2019. E-way bill, an anti-evasion mechanism, came into existence from April 1, 2018. The number of e-way bills doubled from 2.8 crores in April 2018 to 5.49 crore in March 2019.
When the GST was rolled out, there was a provision for three monthly returns – for sales, for purchases and a composite return – and one annual return. When businesses complained about huge compliance burden due to the requirement of 37 returns being filed in a year, the GST Council did away with the purchase return. Now businesses have to file two returns – GSTR1 for sales and GSTR 3B, a composite return. The GST Council has now given a nod to a new system under which only one return needs to be filed from January 2020.
The GST New Registration fell below the Rs 1-lakh-crore mark in the month of June 2019. The total revenue collection under the indirect tax regime for past month amounted to Rs 99,939 crore.
Out of the GST sops for June, CGST was Rs 18,366 crore, SGST was Rs 25,343 crore, IGST was Rs 47,772 crore (including Rs 21,980 crore collected on imports) and Cess was Rs 8,457 crore (including Rs 876 crore collected on imports).
The GST collection figures have dipped below the Rs 1 lakh-crore mark for the first time in the current fiscal. The indirect tax revenue for the month of March 2019 was Rs 1,06,577 crore, Rs 1,13,865 crore in April 2019, and Rs 100,289 crore in May 2019. The trend had raised hoped that Rs 1 lakh crore in GST collections might become the norm soon.
GST payment is one of the major requisites for a business to stay compliant. As per the guidelines, every registered regular taxpayer has to furnish the GST returns on a monthly basis and pay the requisite tax by the GST payment due date – 20th of every month. The GST payment system is going to be a completely online process – promising a seamless and transparent experience.
GST Payment Rules
As per the GST payment rules, if a person furnishes a GST Monthly Return without paying the tax due, the return furnished will be considered as an invalid return. Without furnishing the return for a month and paying the tax due, the subsequent month’s return cannot be furnished. Also, if the tax due is not paid, interest will be applicable on the same, starting from the GST payment due date on which the tax was supposed to be paid.
GST Payment Process
GST Payment Ledgers
For the purpose of GST tax payment, every registered dealer will need to maintain 3 ledgers in the GST payment portal, which is the starting step of the GST payment process.
The 3 ledgers are:
- Electronic tax liability register – All liabilities of a person towards tax, interest, penalty, late fee or any other amount will be debited here.
- Electronic cash ledger – Every deposit made by a person towards tax, interest, penalty, late fee or any other amount will be credited here.
- Electronic credit ledger – Input tax credit, as self-assessed and claimed in Form GSTR-2 by a person, will be credited here. This can only be used by a person – only for paying tax, and not for settling other amounts such as interest, late fee, and so on.
GST Payment Ledgers Set-off
To pay the liabilities shown in the Electronic tax liability register, a person can use the balance in the Electronic cash ledger and Electronic credit ledger. When a liability is paid,
- The Electronic tax liability register will be credited by the amount paid.
- The Electronic credit ledger will be debited by credit used for making the payment.
- The Electronic cash ledger will be debited by the amount of deposit used for making the payment.
How to pay GST online
Set-off the tax liability by using the credit available in Electronic credit ledger
Deposit money in the Electronic cash ledger to pay the balance tax liability –
Generate challan for making the GST payment – Challan for the payment can be generated from the GST payment portal using Form GST PMT-06. The details of the amount to be deposited towards tax, interest, penalty, fees or any other amount should be entered in the challan. The challan generated will be valid for 15 days.
- Make the GST payment using the given modes –
- Internet banking through authorised banks
- Credit card or debit card through authorised banks
- National Electronic Fund Transfer (NEFT) or Real Time Gross Settlement (RTGS) from any bank
- Over the counter (OTC) payment through authorized banks for deposits up to Rs.10,000 per challan per tax period, by cash, cheque or Demand Draft (DD)
- Note: If the payment is to be made by NEFT or RTGS, a mandate form will be generated along with the challan on the GST portal. The mandate form has to be submitted to the bank from where the payment is made. The mandate form will be valid for 15 days.
- Generation of CIN and credit to Electronic cash ledger – Once the amount paid by a dealer is credited to the concerned government account, a Challan Identification Number (CIN) will be generated and the same will be mentioned in the challan in the GST portal. On receipt of the CIN, the amount paid will be credited to the person’s Electronic cash ledger.
Once you have identified that you have a GST claim for refund then you need to file your claim through GST Refund Form RFD-01. This form preferably should be prepared by a certified Chartered Accountant and this GST claim need to be made within 2 years of “relevant date” of the GST refunds application. The different “relevant date” is defined for different GST Refund scenarios, which one can check on online tax site.
In case you fail to file your GST claim within mentioned timelines then you may never get your GST refunds and your credits may be blocked forever. When the assess submits his GST Refund form he gets an acknowledgement form GST RFD-02 which is auto-generated. This GST Refund form RFD-02 helps the assess for any future reference for his GST claim and is sent to taxpayer’s email or phone number as an SMS.
Once the GST claim by assess is found to have any deficiencies then a Form RFD-03 is generated and sent to the taxpayer asking him to correct his application. The duration of filing for GST refunds by United Nation, consulate or foreign embassy is only 90 days from the quarter end when they have procured the goods or services. Also, they must make their GST claim through a different GST Form – RFD-10. GST refunds are processed normally within a period of 30 days from filing GST refund forms. This period may alter in some cases depending on the amount of GST refunds to be processed.
EWAY BILL India
E-way bill requirement for Intra State movement of goods in Delhi began from 16th June 2018. E-way bill operations are compulsory for intra-state movement of goods for all states except Delhi with effect from 3rd June 2018. E-way bill operations are compulsory for intra-state movement of goods for Andaman & Nicobar, Chandigarh, Dadar & Nagar Haveli, Daman & Diu, Lakshadweep, Maharashtra and Manipur from 25th May 2018
E-way bill operations are enabled on trial basis for the intra-state movement of goods for Odisha from 23rd May 2018 Roll out of E-Way Bill system for intra-State movement of goods in the States / Union Territory of Arunachal Pradesh, Madhya Pradesh, Meghalaya, Sikkim and Puducherry from 25 April 2018.