CA in Jaipur | CA. Yogesh Jangid |ITR Filing 2023 | Company Registration | NGO Registration | Income Tax Raid Cases | Audit | Inc Incroporation | CPA in India | Subsidy | Project Funding | GST | GST Raid Cases | Income Tax Notice Faceless | DRI Cases |

E-Invoicing Under GST

editor — Fri, 12 Apr 2024 11:41:19 +0000

E-invoicing within the GST framework refers to the electronic authentication of invoices as outlined by GST regulations. It’s akin to how GST-registered businesses utilize e-way bills for transporting goods. Likewise, specific GST-registered entities are required to produce e-invoices for their Business-to-Business (B2B) transactions.

What is e-invoicing under GST?

E-invoicing, or electronic invoicing, refers to a system where B2B invoices and certain other documents are electronically authenticated by GSTN for further use on the common GST portal.
The GST Council decided to implement e-invoicing in its 35th meeting, initially covering specific categories of mostly large enterprises, which later expanded to include mid-sized and small businesses.

Who must generate e-invoice and its Applicability?

E-invoicing applies based on turnover criteria or e-invoice limits set by phases.
Taxpayers exceeding specified turnover limits in any financial year from 2017-18 to 2021-22 must comply with e-invoicing from FY 2022-23 onwards.
Certain notified businesses are exempt from e-invoicing, such as insurers, banking companies, and others as listed by CBIC notifications.

Transactions and documents criteria

Systems before & after e-invoicing

Time limit to generate e-Invoice

Process of getting an e-invoice

Benefits of e-Invoicing to businesses

How can e-invoicing curb tax evasion?

What are the mandatory fields of an e-invoice?

category

Reinstatement of GST Numbers Contingent on Clearing Dues Highlights Tax Adherence and Procedural Flexibility

editor — Tue, 09 Apr 2024 12:22:39 +0000

Introduction:

This case law concerns a judgment from the High Court of Jammu & Kashmir and Ladakh, which offers a lifeline for GST compliance by restoring GST registration upon the settlement of dues.

Facts of the Case:

The petitioner’s GST registration was canceled following their failure to respond to a show cause notice issued by tax authorities on November 16, 2021. Subsequently, the petitioner’s appeal was dismissed due to their absence before the Appellate Authority.

Issue:

The main issue was whether the petitioner’s GST registration, canceled due to non-compliance with the show cause notice and absence during the appeal, could be reinstated upon their commitment to clear outstanding taxes, penalties, and interest as per GST laws.

Petitioner’s Argument:

The petitioner advocated for the restoration of their GST number, pledging to settle all dues, including taxes, penalties, and interest, in accordance with the GST Act, 2017, upon reinstatement.

Respondent’s Argument:

The Respondent, represented by the Advocate General, did not oppose the petitioner’s proposal to settle dues and reinstate the GST number.

Held:

Considering the unique circumstances and lack of objection from the Respondent, the High Court of Jammu & Kashmir and Ladakh disposed of the case by instructing the petitioner to approach the concerned Officer for GST number restoration within seven days. Upon restoration, the petitioner must settle taxes, penalties, and interest within another seven days, as mandated by the GST Act, 2017.

category

Mandatory E-Invoicing for Businesses with Turnover above INR 5 Crores

editor — Thu, 04 Apr 2024 05:17:18 +0000

The GSTN, in its recent Advisory No. 628 dated April 3, 2024, has made e-Invoicing mandatory for businesses with a turnover exceeding INR 5 crores starting from April 1, 2024.

If your turnover surpasses INR 5 crores in the fiscal year 2023-2024, it is imperative to commence e-Invoicing from the subsequent financial year, commencing April 1, 2024.

Businesses meeting the notification criteria yet not enabled on the portal can self-enable for e-Invoicing by accessing https://einvoice.gst.gov.in. They can report through any of the 4 new Invoice Registration Portals (IRPs), ranging from e-Invoice IRP 3 to e-Invoice IRP 6.

For further details, please refer to the Advisory at: Advisory No. 628

category

ITC Transition not to be denied in case of Input Service Distributor (ISD)

editor — Sat, 23 Mar 2024 06:22:00 +0000

In the case of Siemens India Ltd. v. Union of India [Writ Petition No. 986 of 2019 dated February 09, 2024], the Hon’ble Bombay High Court, drawing upon sub-section (7) of Section 140 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”), postponed the proceedings for further examination. The court upheld the temporary halt granted to the Assessee, who is an Input Service Distributor (“ISD”), emphasizing that Input Tax Credit (ITC) legitimately available to the Assessee before the Appointed Day should not be forfeited due to the absence of an effective procedural mechanism for transferring ITC to the Electronic Credit Ledger for utilization. This situation could lead to the permanent loss of such ITC.

Facts of the case:

Siemens India Ltd. (“the Petitioner”), registered as an Input Service Distributor (ISD), initiated a writ petition regarding the transition of Input Tax Credit (ITC) available to them on July 1, 2017 (“the Appointed Day”). The petition contested the Revenue Department’s (“the Respondent”) refusal to allow transition or utilization of ITC in the Electronic Credit Ledger, citing a defective electronic mechanism.

These proceedings stemmed from a Supreme Court order dated March 24, 2023, in Union of India and Ors. v. Siemens Ltd. and Ors [SLP (Civil) Diary No. 7213 of 2023], directing a fresh consideration of the case, taking into account relevant contentions and legal provisions.

Issue:

Is an Input Service Distributor (ISD) entitled to transition ITC available on the Appointed Day?

Held:

The Bombay High Court, in Writ Petition 986 of 2019, made the following determinations:

The primary concern revolves around the legal ramifications of sub-section (1) and sub-section (7) of Section 140 of the CGST Act, outlining transitional arrangements for the carry-forward and utilization of ITC by ISDs.
Citing sub-section (7) of Section 140 of the CGST Act, the Court emphasized that legitimately available ITC with the Petitioner before the Appointed Day cannot be forfeited due to the absence of an effective procedural mechanism for transferring ITC to the Electronic Credit Ledger for utilization, thus preventing permanent loss of such ITC.
The Court suggested that a thorough examination of these issues by the GST Council would aid in the adjudication process.
It was decided that interim relief granted to the Petitioner would remain in force.
The case was adjourned until August 9, 2024.

category

Extension of Peer Review Mandate for CA Firms in Phase II & III

editor — Mon, 18 Mar 2024 10:01:54 +0000

Revised Guidelines on ICAI Peer Review Mandate

The Institute of Chartered Accountants of India (ICAI) has extended the applicability of the Peer Review Mandate for Chartered Accountant (CA) firms covered under Phase II & III. This revision aims to ensure adherence to enhanced quality standards within the profession.

Understanding Peer Review:

Peer review involves the assessment of a professional’s work by another professional of similar standing. It encompasses the examination of systems and procedures implemented by the Practice Unit (PU) to ensure quality assurance, as per technical, ethical, and professional standards. However, it does not focus on identifying isolated engagement failures.

Applicability in India:

Since 2017, peer review has been mandatory for all practicing Chartered Accountants and firms in India. Newly constituted firms, operating for less than one year, can undergo peer review voluntarily if the member (proprietor/partner) possesses a minimum of five years of post-qualification experience with a full-time Certificate of Practice (COP).

Revised Applicability (Phase II & III):

In response to requests from Practice Units, ICAI has outlined the following extensions in the applicability of the Peer Review Mandate:

Phase II:

Practice Units intending to conduct statutory audits for unlisted public companies meeting specific criteria, such as high paid-up capital, turnover, or outstanding loans, now require a Peer Review Certificate.
Similarly, Practice Units offering attestation services and employing five or more partners must possess a Peer Review Certificate before undertaking statutory audits.
This mandate is effective from July 1, 2024, with a grace period until June 30, 2024.

Phase III:

Practice Units engaged in statutory audits for entities that raised substantial funds from public sources or financial institutions during the review period must obtain a Peer Review Certificate.
Additionally, Practice Units with four or more partners providing attestation services are required to hold a Peer Review Certificate before accepting statutory audit engagements.
This requirement has been in place since January 1, 2015.

category

Introduction to Revised GST Returns and Future Implementation

editor — Fri, 15 Mar 2024 09:23:17 +0000

A recent advancement in the taxation system promises to equip taxpayers with a valuable tool known as the ability to file revised Goods and Services Tax (GST) returns. This transformative change, set to take effect from 2025, aims to streamline the tax filing process and empower both entities and individuals. In this article, we will delve into how taxpayers could access the ability to file revised GST returns from 2025, along with a detailed understanding of revised GST returns.

Overview of Revised GST Returns

A revised GST return refers to a corrected or amended version of a previously filed Goods and Services Tax (GST) return. This process allows taxpayers to rectify errors, update details, or make necessary adjustments to the information submitted in the original return.

Common Scenarios Requiring Revised GST Returns

Tax Liability Adjustment: Changes in tax rates or taxable values may impact the overall tax liability, necessitating adjustments in revised GST returns.
Correction of Errors: In case of inaccuracies or mistakes in the original GST return, taxpayers can file a revised return to rectify these errors.
Alteration in Input Tax Credit (ITC): If eligible credits are identified after filing the original return, taxpayers can file a revised return to claim these credits.
Omission of Information: If certain transactions or details were omitted in the original return, taxpayers can include them in a revised return.
Reconciliation with Financial Statements: Entities may need to reconcile GST returns with financial statements, and if discrepancies are found, a revised return can align the GST reporting with accurate financial information.

Future Prospects of Revised GST Returns

The government’s proposal to introduce revised GST returns is expected to have a significant impact on taxpayers and reduce litigation related to GST matters. Under this proposal, taxpayers will have the opportunity to amend various aspects of their returns, including tax computation. Currently, there is no provision for filing revised returns under GST, except for minor changes in invoice information.

Implementation Timeline and Process

The Central Board of Indirect Taxes and Customs is actively working on this proposal, which will subsequently be reviewed by the law committee of the GST council. Initially, the proposal may be introduced for annual returns, with a potential expansion to quarterly returns. However, it is anticipated to take at least 8-9 months post-GST council approval for implementation, due to the need for substantial updates to the GST network.

Implementation Timeline and Process

The GST Network (GSTN) is preparing to transition to a new technology vendor by April 2025, as the existing contract with Infosys ends on September 30, 2024. The implementation of the revised GST returns is contingent upon successful execution of this transition.

Steps to File Revised GST Returns

Check Eligibility: Ensure eligibility criteria for filing revised GST returns.
Visit GST Portal: Log in to the GST Portal for GST-related tasks.
Choose Correct Form: Select the relevant form for filing revised GST returns.
Provide Original Return Information: Fill in the original GST return details.
Make Amendments: Update figures and provide explanations for amendments.
Submit Revised Return: Submit the revised GST return online.
Confirmation and Acknowledgment: Retain a copy of the acknowledgment for records.
Additional Tax Payment: Pay any additional tax liability, if applicable.
Check Status: Monitor the status of the filed revised GST return on the GST Portal.

Conclusion

In conclusion, the introduction of revised GST returns marks a significant step towards simplifying the tax filing process and ensuring compliance with evolving regulatory requirements. This proposed change will offer taxpayers greater flexibility and adaptability in meeting their tax obligations. By exploring the implications and procedures associated with revised GST returns, taxpayers can prepare for the forthcoming changes in the taxation landscape.

category