STEPS TO USE OFFLINE UTILITY TO COMPARE AUTO DRAFTED ITC IN GSTR 2B WITH PURCHASE REGISTER

The Central Board of Indirect Taxes and Customs ( CBIC ) has enabled the Matching Offline Tool to compare ITC auto-drafted in Form GSTR-2B with Purchase Register. An offline tool has been made available to the taxpayers to match Input Tax Credit (ITC), as auto-populated in their Form GSTR-2B, with their purchase register. This tool will help the taxpayer to compare their ITC as per their Purchase Register, with the ITC as shown available in their auto-drafted Form GSTR-2B, and thus help them to claim correct ITC while filing Form GSTR-3B. To use the Matching Offline Tool, taxpayer need to : 1) Download and install the Offline tool on their system. 2) Download the Form GSTR-2B JSON file from the GST portal. 3) Prepare purchase register in the template provided with offline tool 4) The total number of documents to match should preferably be less than 3000 in number 5) Steps to use the utility: Download the utility from GST common portal by navigating to Downloads>Offline Tools> Matching Offline Tool Open the tool. The following boxes are displayed on the Offline tool dashboard page: a) GSTR-2B b) Import Purchase Register (PR) c) Matching Result 6) Import the GSTR-2B JSON file, downloaded from the GST portal into the tool, by tab ‘Open downloaded JSON file’ and use it to view the same. 7) Import the purchase register data, maintained in the template provided with offline tool, using Excel or CSV format, from Import Purchase Register (PR) tile. 8) Click on the ‘Match’ button to match the above two details (c & d). The utility will match the table-wise details based on the criteria for matching selected. Note: 9) The ‘Match’ button will be enabled only if the purchase register has been successfully imported into the tool 10) The matching is done on the basis of GSTIN, Document type, Document number, Document date, taxable value, total tax amount and tax amounts head wise 11) Post matching, the user will be navigated to the ‘Matching Result’ page and the matching result will be summarized as Exact match, Partial match, Probable match, or Unmatched. 12) Once matching is complete, the taxpayer can: a) Refine matching result b) View summary of the matching result c) Export the matching details to CSV file d) Download the matching result details in excel format from offline utility. CA ROHIT KAPOOR
Contact: +91 9899218725
Email: connectwithcarohitkapoor@gmail.com

NO EXTENSION OF DUE DATES OF ITRs AND TAX AUDIT DUE DATES

The amended taxation bill passed by loksabha. The ambiguity of language created an impression that dates for filing ITRs etc has been extended. However that is not true. 

The bill starts from third proviso of section 3 which is as under:

“Provided also that where the specified Act is the Income-tax Act, 1961 and the compliance relates to—

(i) furnishing of return under section 139 thereof, for the assessment year commencing on the—

(a) 1st day of April, 2019, the provision of this sub-section shall have the effect as if for the figures, letters and words “31st day of March, 2021”, the figures, letters and words “30th day of September, 2020” had been substituted;

(b) 1st day of April, 2020, the provision of this sub-section shall have the effect as if for the figures, letters and words “31st day of March, 2021”, the figures, letters and words “30th day of November, 2020” had been substituted;

(vii) furnishing of report of audit under any provision thereof for the assessment year commencing on the 1st day of April, 2020, the provision of this sub-section shall have the effect as if for the figures, letters and words “31st day of March, 2021”, the figures, letters and words “31st day of October, 2020” had been substituted:“

 

Now after reading the above amendments many believed for once that due date have been extended to 31 March 2021 for all income tax returns and tax audit reports.

However, that’s not true. If one reads the above bill carefully the first sub section extends all the due date between 20 March 2020 to 31 December 2020 to 31 March 2021 whereas the next proviso clarifies that for various due dates shall not extend to 31 March 2021 where it will extend to some specific date. For eg:

1. Due date for return of A.Y. 2019-20 will be 30 September 2020 instead of 31 March 2021.

2. Due date for return of A.Y. 2020-21 u/s 139(1) will be 30 November 2020 instead of 31 March 2021.

3. Due date for tax audit report for A.Y. 2020-21 will be 31 October 2020 instead of 31 March 2021.

Thus there is no extension as on 19 September 2020 for ITR filing or Tax Audit Due date.



CA ROHIT KAPOOR
Contact: +91 9899218725
Email: connectwithcarohitkapoor@gmail.com

BILL 116 OF 2020- THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) BILL, 2020             


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New Guidelines issued for conducting exams by the Health Ministry

1.Generic preventive measures 

The generic measures include simple public health measures that are to be followed to reduce the risk of COVID-19. These measures need to be observed by all (staff, students and parents) in these places at all times.

These include:

i. Physical distancing of at least 6 feet to be followed as far as feasible.

ii. Use of face covers/masks to be made mandatory.

iii. Practice frequent hand washing with soap (for at least 40 -60 seconds) even when hands are not visibly dirty. Use of alcohol-based hand sanitizers (for at least 20 seconds) can be made wherever feasible.

iv. Respiratory etiquette to be strictly followed. This involves strict practice of covering one's mouth and nose while coughing/sneezing with a tissue/handkerchief/flexed elbow and disposing off used tissues properly.

v. Self-monitoring of health by all and reporting any illness at the earliest. vi. Spitting shall be strictly prohibited.

vii. Installation & use of Aarogya Setu App shall be advised to all, as far as feasible.

 2. All Universities / Educational Institutions / Examination Conducting Authorities / Examination centers shall specifically ensure the following arrangements:



i. Only those examination centers which are outside the containment zone shall be allowed to function. Staff/examinees from containment zones shall not be permitted. Such examinees shall be given an opportunity to undertake the examination through other means or the Universities/Educational Institution/ Agency may consider appropriate measures in this regard.

ii. Universities/ Educational Institutions/ Examination Conducting Authorities/ Examination centers may plan out the examination schedule in a staggered manner so as to avoid overcrowding at any examination center on any day.

iii. Keeping in view the physical distancing norms, institutions should have adequate room capacity to ensure proper seating arrangement for examination.

iv. Appropriate arrangements for personal protection gears like face covers/masks, and other logistic like hand sanitizers, soap, sodium hypochlorite solution etc. shall be made available by Universities/ Educational Institutions/Examination Conducting Authorities/Examination centers to the staff as well as students as per requirements.

v. Exam functionary and examinees may also submit self-declaration about health status at the time of entrance to the examination center. Such self-declaration form may be circulated at the time of issue of admit tickets. A simple do's and dont's/ Advisory may also be circulated at the time of issue of admit tickets.

vi. Students should also be given prior information on what they should carry,which includes exam related documents (Admit card, ID card etc) , face mask, water bottle, hand sanitizer etc.

vii. Adequate manpower shall be deployed by the Institution for maintaining discipline (to ensure observance to distancing norms and other preventive measures at all times) during conduct of the examination.

viii. Adequate number of registration rooms and manpower for document verification and recording of attendance shall be planned duly ensuring social distancing norms.

ix. Invigilators and supervisory staff need to be briefed on the code of conduct in the context of COVID.

x. Provisions must be made for display of Posters/standees/AV media on preventive measures about COVID-19 prominently at the examination center (outside and inside).

xi. The examination center should have a designated isolation room for isolating any person who is found symptomatic at the time of screening or during examination, till such time medical advice may be sought. A clear policy on allowing/disallowing symptomatic candidates to undertake examinations shall be delineated by the Examination Conducting Authorities in advance. 

System Computed GSTR 3B

System computed values of GSTR-1 Statement (Monthly filers), made available in Form GSTR-3B, as PDF statement on GST Portal

1. A pdf statement has been made available to taxpayers, filing monthly GSTR-1 statement, with system computed values of Table 3 of Form GSTR-3B. This PDF will be prepared on the basis of the values reported by them, in their GSTR-1 statement, for the said tax period.

Note: This facility will also be provided to quarterly GSTR-1 filers in due course of time.

2. This PDF will be available on their GSTR-3B dashboard, from tax period of August 2020 onwards, containing the information of GSTR-1 filed by them on or after 4th September 2020. This will make filing of their Form GSTR-3B easier for them.

3. This facility is provided to all taxpayers registered as a Normal taxpayer, SEZ Developer, SEZ unit and casual taxpayer.

4. Tables of Form GSTR 3B will be Auto-Drafted in pdf statement: Following Tables of Form GSTR-3B will be auto drafted, on basis of values reported in GSTR-1 statement, for the said period:

3.1(a) - Outward taxable supplies (other than zero rated, nil rated and exempted)

3.1(b) - Outward taxable supplies (zero rated)

3.1(c) - Other outward supplies (Nil rated, exempted)

3.1(e) - Non-GST outward supplies

3.2 - Supplies made to un-registered persons

3.2 - Supplies made to composition taxable persons

3.2 – Supplies made to UIN holders

5. In this, following points may be noted:

a) In case, any of the above values is negative as per GSTR-1 statement, those figures would be mentioned as Zero in the auto-drafted PDF and will not be carried forward to next period.

b)  Turnover & tax are computed after taking into account credit notes, debit notes, amendments and advances, if any.

c) Only filed GSTR-1 statements are considered for auto-population of the values in Form GSTR-3B.

6. This PDF is only for assistance of taxpayers to get the auto drafted values of Table 3 of their Form GSTR 3B (as per their filed GSTR 1 statement). Taxpayers, however, are required to verify & file their Form GSTR-3B, with correct values.

GST Due Dates falling in September 2020

 

1)  GSTR-1

GSTR-1 is a monthly or quarterly return that should be filed by every registered dealer. It contains details of all outward supplies i.e sales. The return has a total of 13 sections.

The due dates for GSTR-1 are based on your turnover. Businesses with sales of upto Rs. 1.5 crore have an option to file quarterly returns. Other taxpayers with sales above Rs. 1.5 crore have to file monthly return.

Periodicity	Period	Due Date
Monthly filings	August 2020	11-09- 2020
Quarterly filings	July 2020 to September, 2020	31-10- 2020

 

2) GSTR- 3B

GSTR-3B is a monthly self-declaration to be filed by a registered GST dealer along with GSTR 1 and GSTR 2 return forms. It is a simplified return to declare summary GST liabilities for a tax period. IMPORTANT: You have to file GSTR-3B even when there has been no business activity (nil return)

Turnover (in the preceding Financial Year)	Tax Period	Due Date	Date up to Which relaxation Provided	Interest*
Upto Rs. 5 Crore (Specified States-I)	May 2020	22-06- 2020	12-09- 2020	NIL up to  12-09- 2020, thereafter 9% till  3-09- 2020
Upto Rs. 5 Crore (Specified States-I)	June 2020	22-07- 2020	23-09-2020	NIL up to 23-09-2020, thereafter 9% till September 30, 2020
Upto Rs. 5 Crore (Specified States-I)	July 2020	22-08 2020	27-09- 2020	NIL up to 27-09-2020, thereafter 9% till 30-09-2020
Upto Rs. 5 Crore (Specified States-I)	August 2020	22-09- 2020	01-10-2020.	NIL upto 1-10- 2020
Upto Rs. 5 Crore (Specified Sates-II)	May 2020	24-06- 2020	15-09- 2020	NIL upto 15-09- 2020, thereafter 9% till 30-09-2020
Upto Rs. 5 Crore (Specified Sates-II)	June 2020	24-07- 2020	25-09-2020	NIL upto 25-09- 2020, thereafter 9% till 30-09-2020
Upto Rs. 5 Crore (Specified Sates-II)	July 2020	24-08- 2020	29-09-2020	NIL upto 29-09- 2020, thereafter 9% till 30-09-2020
Upto Rs. 5 Crore (Specified Sates-II)	August 20020	24-09- 2020	03-10-2020	NIL upto 03-10-2020
More than Rs. 5 Crore	August 2020	20-09- 2020	Not extended	-

Specified States-I 

Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana or Andhra Pradesh or the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep

Specified Sates-II

Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha or the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi.

3) GSTR 5 and 5A

Every  registered non-resident taxable person is required to furnish a return in GSTR-5 in GST Portal. Non-Resident foreign taxpayers are those suppliers who do not have a business establishment in India and have come for a short period to make supplies in India. Such a person is required to furnish details of all taxable supplies in GSTR-5

 A Return in Form GSTR-5A has been prescribed which is to be furnished by the OIDAR service providers providing services to unregistered service recipients in India

Period	Due Date
August, 2020	20-09-2020

4) GSTR 6

Every Input Services Distributor is required to file a monthly return furnishing details of invoices on which credit has been received. The due date for filing of GSTR 6 as per GST Act is 13th of next month.

Period	Due Date
August, 2020	13-09-2020

 

 

5)  GSTR-7

GSTR-7 is a monthly return to be filed by the persons required to deduct TDS under the GST. Filing of GSTR 7 for a month is due on 10th of the following month.

Period	Due Date
August, 2020	10-09-2020

6) GSTR-8

GSTR-8 is a return to be filed by the e-commerce operators who are required to deduct TCS (Tax collected at source) under GST. GSTR-8 contains the details of supplies effected through e-commerce platform and amount of TCS collected on such supplies. GSTR-8 filing for a month is due on 10th of the following month.

Period	Due Date
August, 2020	10-09-2020

 

7) GSTR-9, 9A

GSTR 9 is an annual return to be filed yearly by taxpayers registered under GST. All taxpayers/taxable persons registered under GST must file their GSTR 9. However, the following are NOT required to file GSTR 9:

• Taxpayers opting composition scheme (They must file GSTR-9A)
• Casual Taxable Person
• Input service distributors
• Non-resident taxable persons
• Persons paying TDS under section 51 of CGST Act.
  
  GSTR-9 filing for businesses with turnover up to Rs 2 crore made optional for FY 17-18 and FY 18-19*

The GSTR-9A is the annual return to be filed once in a year by taxpayers who have opted for the Composition Scheme under GST for a particular financial year.

Period	Due Date
F.Y 2018-19	30-09-2020

8) GSTR- 9C

Every registered person whose aggregate turnover during a financial year exceeds two crore rupees shall get his accounts audited as specified under sub-section (5) of section 35 of the CGST Act, and shall furnish a copy of the audited annual accounts and a reconciliation statement, duly certified, in FORM GSTR-9C.

For businesses with an annual turnover of less than Rs 5 crore, filing of GSTR-9C for FY 2018-19 is waived off

Period	Due Date
F.Y 2018-19	30-09-2020

 

 

II Indian Economy's GDP Tested (-VE) II GDP and Methods of Calculation II

What is Gross Domestic Product??

Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced in a specific time period, often annually. The Gross Domestic Product measures the value of economic activity within a country.The growth rate of real GDP is often used as an indicator of the general health of the economy. In broad terms, an increase in real GDP is interpreted as a sign that the economy is doing well

How is GDP Calculated???

There are 3 methods or formulae by which GDP can be determined. All the 3 methods have been shown by way of a tabular presentation as shown below:

Expenditure Approach	Income Approach	Production or Value-Added Approach
This is the most commonly used GDP formula, which is based on the money spent by various groups that participate in the economy Components of GDP by expenditure Approach GDP (Y) is the sum of consumption (C), investment (I), government spending (G) and net exports (X – M).   Y = C + I + G + (X − M) C is normally the largest GDP component in the economy, consisting of private expenditures in the economy (household final consumption expenditure)   I: Capital Investment spending G is the sum of government expenditures on final goods and services. It includes salaries of public servants, purchases of weapons for the military and any investment expenditure by a government. It does not include any transfer payments, such as social security or unemployment benefits. X: Exports of Goods and Services M: Imports of Goods and Services	GDP is the sum of the incomes earned through the production of goods and services.   Components of GDP by Income Approach Total factor income = employee compensation + corporate profits + proprietor's income + rental income + net interest Only those incomes that are come from the production of goods and services are included in the calculation of GDP by the income approach. We Exclude the following while calculating GDP by Income Approach 1) Transfer payments e.g. the state pension; income support for families on low incomes; the Jobseekers’ Allowance for the unemployed and other welfare assistance. 2) Private transfers of money from one individual to another   3) Income not declared to the tax Authorities i.e. Shadow Economy	Value added is the increase in the value of goods or services as a result of the production process   Components of GDP by Production or Value Added Approach   Value added = value of production - value of intermediate goods The sum of the gross value added in the various economic activities is known as "GDP at factor cost". For measuring output of domestic product, economic activities (i.e. industries) are classified into various sectors. After classifying economic activities, the output of each sector is calculated by any of the following two methods: 1) By multiplying the output of each sector by their respective market price and adding them together   2) By collecting data on gross sales and inventories from the records of companies and adding them together The value of output of all sectors is then added to get the gross value of output at factor cost. Subtracting each sector's intermediate consumption from gross output value gives the GVA (=GDP) at factor cost.

 

 

In India, contributions to GDP are mainly divided into 3 broad sectors – agriculture and allied services, industry and service sector. In India, GDP is measured as market prices and the base year for computation is 2011-12. GDP at market prices = GDP at factor cost + Indirect Taxes – Subsidies

India’s economy contracted by 23.9 per cent in April-June -- the worst performance since quarterly measurement began in 1996 and probably the first contraction since 1980.

The lockdown and the consequent suspension in economic activities due to the pandemic were so massive that among a mix of advanced and emerging economies, India’s GDP contraction in Q1 FY21 was the worst.

According to the latest release, the GDP at Constant (2011-12) Prices in Q1 of 2020-21 is estimated at Rs 26.90 lakh crore. This value was Rs 35.35 lakh crore in Q1 of 2019-20. Hence, the Indian economy has experienced a contraction of 23.9% as compared to 5.2% growth in Q1 2019-20.

While the GDP at Current Prices in the year Q1 2020-21 is estimated at Rs 38.08 lakh crore. This value was Rs 49.18 lakh crore in Q1 2019-20. Hence, it showed a contraction of 22.6% as compared to 8.1% growth in Q1 2019-20.


Key highlights from the Q1 FY21 GDP numbers:

1) The 'real' or inflation-adjusted gross domestic product (GDP) contracted 22.6 percent in the April-June quarter this fiscal.

2) Barring the agriculture sector that grew 3.4 percent, all others were in the red.

3)  Manufacturing, mining and construction contracted 39.3 percent, 23.3 percent and 50.3 percent respectively.

4) Trade, hotels, transport, communication and services related to broadcasting contracted 47 percent in the first quarter of 2020-21

5) The real estate sector, along with financial and professional services, shrank 5.3 percent in April-June 2020.

Reasons to Worry

If GDP growth falls again in the current quarter (July-September), India would technically be in a recession, an economic state characterised by at least two successive quarters of contraction.India was in a recession last in 1979 when the real GDP fell 5.2 percent.

According to my understanding the contraction is not alone due to COVID. Even before the pandemic struck, the Indian economy was experiencing a slowdown as it grew at 4.2 percent in FY20.Most of the announcements made so far, attempt at restarting the economy with reforms on the supply side. Former NITI Aayog Vice-Chairman Arvind Panagariya stated on August 8 that the nation is going to possibly require 'a little bit of stimulus' on the demand side as the country's economic activity begins to expand.

Pronab Sen, former chief statistician of India said the Q1 GDP data doesn't capture the whole extent of the damage that the lockdown did to the economy. He said that this data sample includes data from only the larger companies that were affected due to the lockdown and not the unlisted and smaller companies.

According to State Bank of India's research report - Ecowrap it has been estimated  Q2 real GDP decline in the range of (-) 12 percent to (-) 15 percent, while Q3 GDP is seen between (-) 5 percent and (-) 10 percent. Q4 is expected to be in (-) 2 percent to (-) 5 percent range.