• The manual updating of bank account information prior to this, without verification, sometimes led to errors, discrepancies, and even fraudulent situations. The goal of this modification is to reduce risks and improve the overall reliability of data given by taxpayers.  

• Additionally, the Oct 2024 GST update improves the GST system’s reliability. For seamless transaction processing, tax authorities can now rely on more precise and validated banking data. Businesses may now feel even more assured that their tax-related financial data is safe, validated, and appropriately documented.  

• New guidelines for maintaining compliance in GST filings have been established by this notification from GSTN, especially for companies that deal with regular expansions or revisions that call for bank account updates.  

How Businesses Benefit from GSTN’s New Validation Process:  

Now, businessmen have relief because this update ensures that once the bank account details are linked to GST, it will protect the business from potential penalties or delays caused by inaccurate details.  

Key Benefits of GST Linking for Businesses:

Improved accuracy:  

GST linkage is another example of automatic details filling. This will help to enter the correct data or details, preventing data errors. So we don’t have to worry about manual data entry errors that result in the rejection of GST filings or income tax deductions.  

Enhance complaints:   

By keeping correct banking records, the validation phase guarantees that companies are always in compliance with GST requirements. By doing this, any discrepancies that can result in legal troubles or problems with tax returns are avoided.  

Reduced fraud:  

Automatic, valid tax filing will help to reduce the fraud deduction. This procedure makes it more difficult for fraudulent data to be submitted by ensuring that only validated banking information is linked to the taxpayer’s GST number.   

Smoother operation:   

Because the validation procedure guarantees that each transaction is founded on correct and validated bank account information, it will expedite tax-related activities. When it comes to saving time and effort on errors, this function is groundbreaking for companies that regularly update their bank information as a result of expansion or reorganization.  

Data security:

Through the automatic cross-checking process, the sensitive data will be more secure. Businesses can be sure that the data they submit is verified through secure routes and is difficult to falsify.  

Businesses may now handle their financial information more easily and securely while adhering to GST regulations thanks to the GSTN’s simplification of the registration amendment procedure. Nowadays, businesses are better able to make sure that their financial information and tax returns are accurate, which increases overall operational efficiency.  

Why Does This Matter for Your Business?

The compliance situation for companies all over India has significantly improved with the October 2024 GSTN update. Businesses can now make sure that their GST changes are done without the typical risks associated with human submissions and errors thanks to the automatic bank account validation process.  

This is the part of GST filling that helps to improve security, boost productivity, and enhance business stability. You are in a small or large business and your GST filings have correct and validated banking information regarding that. The verification of the account details and automatic filling can maintain the complaints, avoid costly mistakes, and ensure smoother operations moving forward. This process helps your business run smoothly by saving you time and effort through their automatic data-filling operation.   

Businesses will now be responsible for paying the GST on behalf of unregistered landlords due to the implementation of the Reverse Charge Mechanism (RCM) for commercial property rentals. Because businesses could have to set aside more money up front for tax payments, this could have an impact on cash flow management. This shift necessitates quick changes to cash management and accounting procedures for companies leasing office space or commercial premises.  

In addition to saving time and money on submitting returns, the modifications intended to streamline GST return filing procedures may lessen the burden of compliance. These changes may help companies that have found it difficult to handle the intricacies of GST filings by streamlining processes and freeing up more time for vital tasks.   

When adding a bank account as a non-core alteration, the details are validated. Kindly note that GSTN has instituted a validation procedure for situations in which a taxpayer tries to change bank account details through a non-core amendment. Taxpayers are asked to add bank account information on the portal by following the steps listed below. (Myself) After entering their bank account information, the taxpayer must click the “VALIDATE ACCOUNT DETAILS” option.  

(II) Prior to clicking the “Validate Account” button, the “Save” button at the bottom of the screen as shown remains disabled.

(III) The “Save” button will become active only after the “Validate Account Details” button is clicked.

How Do I Do This?

These are the processes for your GST filing: 

First register to the GSTIN: 

In order to get the GSTIN number, unregistered taxpayers must register. This 15-digit number is produced using your PAN and state code of business.

Login to the GST protel

After entering your login and password to access the GST site (https://www.gst.gov.in/), you must select the “Services” tab.

Go to Services

• After logging in, go to the ‘Services’ menu.
• Click on ‘Registration’, then select ‘Amendment of Registration Non-Core Fields’.

Select bank account:

In the GST filing form, you have to select the bank account details.

Add or modify the account details

Clicking “Add New” and entering the necessary information, including the account number, IFSC code, and account type, will allow you to add a new bank account.

Click “Edit” next to the account you wish to update if it’s already there.

Validation process: 

The bank data will be automatically verified by the portal against the bank’s records. To prevent validation problems, make sure the details are correct.

Submit the application: 

• To submit the request for modifications for approval, click “Submit” after the bank account details have been verified.
• Depending on your line of work, you might need to use a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC) to confirm the submission.

Approval 

After submission, the GST authorities will review the request. Once approved, the updated bank details will be reflected in your GST registration.

Follow this instruction and procedure for changing your bank account information on the GST portal. It is simple and guarantees that your data is up-to-date for processing refunds and compliance. You may effectively maintain your GST registration by following the instructions, which include logging in, selecting the appropriate section, adding or changing your account details, and submitting the application. To prevent validation problems, it is essential to make sure that all entered information is correct. Following submission, the approval procedure will verify that your revised bank information is formally on file. Maintaining this data current is crucial for efficient financial operations and legal compliance in your business.

Read More:-

• 
  Amendment in GST Registration
  In case there is any change in particulars furnished in the application for registration, the registered taxable person will have to submit an application electronically, duly signed, in FORM GST REG-11, along with documents relating to such change at the Common… Read more: Amendment in GST Registration
• 
  Updates on 16th GST council Meet held on 11th June 2017
  The 16th GST council just a few weeks before the rollout of GST has lowered the tax rates for more than 66 items. This meeting was held on 11th June on a Sunday. The meeting has provided relaxation in many sectors… Read more: Updates on 16th GST council Meet held on 11th June 2017
• 
  Latest update on Return Filing in GST
  The return filing procedure is an important aspect of GST filing. In the case of return filing, every person registered under GST Act has to periodically furnish the details of sales, purchase, tax paid and collected thereon by filing a return… Read more: Latest update on Return Filing in GST
• 
  GST : The Historic Reformation In Taxation History
  We are ushering in a new era with the outcome of GST which promises a stronger economy with a less corruption.The Goods and Services Tax is one of the biggest reforms in the Indian economic set-up and would streamline the taxation… Read more: GST : The Historic Reformation In Taxation History
• 
  18% GST Now On Food take away: Restaurant Owners & Diners
  Post GST the government has issued orders for restaurant industry that a GST rate of 18% will be charged on takeaways from AC or any non-AC hotel or restaurant with any of its parts having a facility of air conditioning. The… Read more: 18% GST Now On Food take away: Restaurant Owners & Diners

What is GST?

One of India’s greatest tax reforms implemented on the 1st of July, 2017, the Goods and Service Tax, is a comprehensive tax levied on the supply of goods and services. The GST model in India entails the enactment of two components of taxation, Central Goods and service tax and State goods & service tax. It worked to replace all the indirect taxes such as central excise duty, single VAT, central state tax, and purchase tax. Here’s a chronological order of the major landmarks in GST Bill implementation. 

The 2000 GST came into force, by then prime minister Atal Bihari Vajpayee, headed by the finance ministry advisor, Vijay L. Kelkar.

2006 The Union Ministry of Finance proposed a GST introduction from the 1st of April 2010.

The 2011 Constitution Amendment Bill was introduced and four supplementary GST bills were passed.

2017 On July 1st, 2017, GST came into force, under Prime Minister, Narendra Modi. 

The arrival of GST cancelled out the following and other taxes:-

• Service Tax.
• Duties of Excise.
• Central Excise duties. 
• Cess and Surcharge.
• Additional Duties of Excise. 
• Additional Duties of Customs. 
• Entry Tax. 
• Purchase Tax.
• Luxury Tax.
• State VAT. 
• Central Sales Tax. 
• Entertainment Tax.
• State Cess and Surcharge.
• Taxes on Gambling and Lottery. 

What are the Advantages of GST Tax Regime?

The GST implementation has brought about numerous advantages for the common man of India. 

• GST has been implemented to bring about a uniform tax structure in India. Working under the motto of One Nation, One Tax. 
• With all the processes being technology-driven, in GST, from return filing to registration, to refund everything can be done online within a few clicks. This eliminates the trouble of going from places to places to file taxes like VAT, service tax and more. 
• Before the coming of GST, VAT was supposed to be paid by businesses whose average annual turnover was more than 5 lakhs. After the implementation of GST, the following is the threshold for businesses. 

This excluded several small trading businesses from the mandate of taxes.

• Suppose an official offering service for, let’s say, Rs 50,000. He charged a service tax of 15%, which is calculated to be Rs 7,500. Then, he would buy office supplies for Rs. 20,000 paying 5% as Value Added Tax, which would be Rs 1,000. Now, he has to pay 7500 service tax and Rs. 1000 VAT, which makes his total outflow Rs. 8500. But under GST, the taxes paid for office supplies will be subtracted from the net tax payable, which will bring the total to only RS. 1000. 

Types of Goods and Service Tax, under the GST Regime

The goods and service tax has been classified into 3 broad categories. They are CGST, SGST, and IGST.

• CGST or Central Goods and Service Tax is the tax that is levied by the central government on the intra-state supply of goods and services within one single state in the country.
• The state government levies GST or State Goods and Services Tax on the intra-state supply of goods and services within one single state in the country. 
• IGST or the Integrated goods and service tax is levied by the central government on the interstate supply of goods and services between two different states in India. 

The CGST and the SGST are collected by the governing body of the state where the supply takes place and the IGST is distributed to the destination state after the central government collects it.

What Offences and Penalties Come Under GST

GST penalty under section 73 of GST

“Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement or suppression of facts” 

• In these cases, the tax that was unpaid, or not paid at all was not due to fraudulent reasons or willful intentions,
• Therefore the penalty that is attracted in such cases is 10% of the tax involved, to a minimum amount of 10,000 INR. 

GST penalty under section 74 of GST

“Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful misstatement or suppression of facts.”

• When the delayed or non-payment of taxes is caused due to fraudulent intentions.
• The penalties attracted are, equal to the tax involved, subjected to a minimum amount of 10,000 INR.  

A few other offences related to GST are, 

1. Offences related to Invoicing and Documentation.
   
   If a taxable person supplies any goods or services, with a fake or fraudulent invoice or no invoice at all, issues an invoice or a bill without providing services or goods, or issues invoices using the unique identification number of another registered taxable person, they are offenders under the GST regime and are liable for penalty.  
   
2. Offences related to Fraudulent Intent.
   
   A person will attract a penalty if they are unsuccessful in supplying the required information, submit false information, submit false financial records or documents, file fake returns to evade tax or provide false information or no information at all during proceedings. 

3. Offences related to tax Evasion. 

If a Taxable person collects the goods and service tax but does not submit it to the government within 3 months, receives a refund of CGST/SGSt under fraudulent conditions, utilises input tax credit without actual receipt of the goods or services, or suppresses their sales to avoid paying the taxes, it will cause them an offence under the GST. 

4. Offences related to Obstruction. 

Obstructing or preventing any officer in the discharge of their duties, creating problems for the officer during the auditing, or tampering with evidence counts under legal offences and is eligible to attract a sum penalty. 

5. Offences related to the Conveyance of Goods. 

A person with a transportation business should mandatorily carry out the conveyance of his goods, along with proper documentation, like E-Way bills, and e-invoices. Failure to do so will attract a penalty under the regime of Goods and Service Tax. Also, carrying goods that are eligible for confiscation can attract a penalty. 

10 Tips to Avoid GST Penalties

• As soon as your business threshold crosses the turnover limit, you need to obtain the GST registration for your business through the GST portal. 
• You should avoid supplying goods and services to your customers without a proper tax invoice.  
• If you obtain GST refunds by giving fraudulent information, you can attract a penalty.
• Taking an ITC (Input Tax Credit) without an actual supply of goods and services can attract a penalty. Therefore you should avoid utilising ICT in any unethical manner. 
• Maintain your accounting records religiously and accurately to avoid attracting a penalty.
•  Avoid issuing incorrect or fraudulent invoices for the sale of any goods or services, and do not issue an invoice without actually supplying goods and services. 
• Do not misuse another bona fide taxable person’s unique registration ID to issue an invoice. 
• Job holders should accurately deduct TDS(Tax Deducted at Source) wherever required, failure to do so or deducting a lower amount can attract a penalty under the GST regime.
• Individuals with a transportation business should avoid the conveyance of their goods without accurate documents, appropriate GST registration
• Supplying goods that can be subjected to confiscation can also attract a penalty. 

How to Calculate GST Penalty?

Follow the following steps in order to calculate your tax liabilities and penalties, from your preferred GST penalty calculator software simply in a few taps. 

1. Select the name of the state where you reside, from the drop-down menu.
2. Select your AATO or your Annual Aggregate Turnover of your business as per the previous financial year. 
3. Select the period for which you are supposed to calculate the interest or penalty. 
4. Then, select the date you are filing the return. 
5. Enter your tax liabilities and input tax credits as per your accounts. 
6. The GST penalty calculator software will calculate the net tax liability, on which the interest and late fee is calculated. 
7. After you receive the amount that is to be paid, click on submit to get your tax liability. 

How to Pay the GST Penalty?

To pay your GST penalty online, you need to follow these steps

1. Access to the official GST portal on .gst.gov.in/URL. 
2. Login to the portal with valid credentials. 
3. To access the generated challan, click on services, the payments, and then the challan history. 
4. Select the CPIN link for which you want to make the payment. 
5. Select your preferred mode of payment. 
6. Then select the check box for accepting the terms and conditions.
7. And then, make the payment.
   

After the success of your payment, you will be redirected to the official GST portal, where you can access and print your receipt.

Conclusion

Navigating the complexities of GST compliance, from registration requirements and invoice management to correct filing of returns and handling of ITC, highlights the critical importance of adherence to statutory mandates to avoid financial penalties and legal complications. Through proactive engagement with the registration process, diligent invoice issuance, accurate return filing, effective ITC management, and compliance with E-way bill regulations, businesses can safeguard their financial and operational stability. Moreover, understanding the implications of timely payment of liabilities and recognizing the benefits of voluntary disclosures further underscores the importance of strategic financial planning and compliance in the GST framework.

The strategies and insights discussed provide a comprehensive roadmap for businesses seeking to mitigate the risks associated with GST non-compliance. By leveraging technology, staying informed about regulatory updates, and possibly consulting with tax professionals, businesses can enhance their compliance efforts, optimise tax benefits, and maintain robust financial health. It is through diligent adherence to GST regulations and embracing a culture of proactive compliance that businesses can successfully navigate the challenges of the GST system, thereby avoiding unnecessary penalties and fostering sustainable growth.

Frequently Asked Question

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In today’s fast-paced business world, time is of the essence, and entrepreneurs are constantly seeking ways to optimize processes and increase productivity. One such critical process that can be streamlined is GST (Goods and Services Tax) return filing. In this blog, we unveil an exciting new development that promises to revolutionize the way businesses handle their GST returns – the one-click GST return filing solution. Say goodbye to lengthy paperwork and tedious calculations, and say hello to efficiency, accuracy, and an attractive bottom line!

The GST Filing Challenge:

GST return filing has been a cumbersome task for businesses since its implementation. The process involves gathering and reconciling vast amounts of data, performing complex calculations, and ensuring compliance with ever-changing regulations. For small businesses and startups with limited resources, this burden can be overwhelming, leading to potential errors, penalties, and wasted time.

Introducing the One-Click GST Return Filing:

Enter the one-click GST return filing solution – a groundbreaking innovation that streamlines the entire GST return process into a seamless, user-friendly experience. With a simple click, businesses can now fulfill their GST obligations accurately and on time, freeing up valuable time and resources for core activities.

How it Works:

The one-click GST return filing platform integrates cutting-edge technologies like Artificial Intelligence and Machine Learning, empowering businesses to automate data extraction, validation, and computation. Here’s how it works:

1. a) Automated Data Extraction: The solution automatically extracts GST-related data from your invoices, purchase receipts, and other financial records. No more manual data entry or sifting through piles of paperwork!
2. b) Real-time Compliance Updates: Stay up-to-date with the latest GST rules and regulations. The platform continuously updates its algorithms, ensuring your return filing remains compliant with the ever-changing tax laws.
3. c) Error-Free Calculations: Eliminate human errors and miscalculations. The advanced algorithms accurately compute your GST liability, input tax credit, and tax payable, giving you peace of mind during filing.
4. d) Seamless Integration: The one-click solution seamlessly integrates with your existing accounting software, ERP systems, or financial tools, making implementation a breeze.

The Benefits:

1. a) Time-Saving: With one-click GST return filing, businesses can complete the entire process within minutes, allowing them to focus on strategic decision-making and growth opportunities.
2. b) Cost-Efficiency: By reducing the need for manual labor and minimizing the risk of errors, businesses can cut down on operational costs and improve their bottom line.
3. c) Improved Accuracy: The precision of the automated system ensures accurate calculations, reducing the likelihood of audits or penalties due to errors.
4. d) Enhanced Compliance: Businesses can confidently comply with GST regulations in real-time, mitigating the risk of non-compliance issues.
5. e) User-Friendly Interface: The intuitive user interface makes the process accessible to all, regardless of their technical expertise.
6. A Transformative Step towards Digitization:

The one-click GST return filing solution represents a significant stride towards digitization and embracing the digital transformation that is shaping the modern business landscape. By leveraging the power of technology, businesses can move away from archaic, paper-based processes and step into a more agile, data-driven era.

Empowering Small and Medium Enterprises (SMEs):

Small and Medium Enterprises (SMEs) often struggle with limited resources, including time and personnel, making GST return filing a daunting task. The one-click solution levels the playing field for these businesses, enabling them to compete with larger corporations on an equal footing. This empowerment opens up new growth opportunities for SMEs, helping them reach their full potential.

Data Security and Confidentiality:

With the advent of technology, concerns about data security have become paramount. The one-click GST return filing solution addresses these concerns by implementing robust security measures. Your financial data remains encrypted, ensuring that sensitive information is safeguarded against unauthorized access.

Seamless Audits and Reporting:

The transparency and accuracy offered by the one-click GST return filing platform simplifies the auditing process. Businesses can now generate detailed reports and access historical data with ease, facilitating a smoother audit experience. This not only saves time during audits but also fosters a positive relationship with tax authorities.

Mobile Accessibility:

The one-click GST return filing solution is designed with mobility in mind. Accessible via mobile apps or web browsers, businesses can file their returns from anywhere, anytime. This mobile accessibility adds a layer of convenience, particularly for entrepreneurs who are always on the move.

Real-Time Insights and Analytics:

Gone are the days of waiting for monthly or quarterly reports to assess your financial standing. The one-click solution provides real-time insights and analytics, offering businesses valuable data-driven intelligence. With access to instant financial information, businesses can make informed decisions promptly, gaining a competitive edge.

Customer Support and Assistance:

Adopting new technology can be intimidating for some businesses, especially those not well-versed in digital processes. However, the one-click GST return filing solution comes with comprehensive customer support and assistance. Expert professionals are available to guide businesses through implementation, troubleshoot issues, and answer any queries that arise.

Future-Proofing your Business:

The one-click GST return filing solution is continuously evolving to adapt to the dynamic tax landscape. Regular updates ensure that businesses remain compliant with changes in tax regulations and benefit from the latest advancements in technology. By future-proofing their tax processes, businesses can stay ahead of the curve and embrace innovation fearlessly.

Environmental Impact:

By transitioning from traditional paper-based filing to a digital platform, businesses contribute to a greener environment. Reduced paper consumption not only saves trees but also reduces the carbon footprint, making the one-click solution an environmentally responsible choice.

Future Advancements and Adaptability:

The world of technology is ever-evolving, and the one-click GST return filing solution is no exception. With advancements in AI and Machine Learning, the platform is continually evolving to offer even more intelligent automation and enhanced accuracy. Additionally, the solution’s adaptability ensures that businesses can seamlessly integrate it with new accounting tools or software, future-proofing their tax processes for years to come.

Embrace the One-Click Revolution Today:

Marg ERP Software: Your Gateway to One-Click GST Return Filing Excellence

In the vast landscape of GST return filing solutions, Marg ERP Software stands out as the epitome of efficiency, accuracy, and user-friendliness. With its cutting-edge technology and innovative features, Marg ERP Software has emerged as the best choice for businesses seeking to file GST returns seamlessly with a single click.

1. Streamlined One-Click Filing:

Marg ERP Software’s one-click GST return filing feature simplifies the entire process, ensuring that businesses can complete their GST returns effortlessly and swiftly. With just a single click, all the data required for filing is extracted, validated, and computed, sparing businesses from the tedious manual entry and calculation work.

2. Intuitive User Interface:

Marg ERP Software boasts an intuitive and user-friendly interface that requires minimal technical expertise. Businesses of all sizes, including SMEs, can quickly adapt to the platform without any hassle. This accessibility eliminates the learning curve, allowing users to file GST returns with ease from day one.

3. Real-time Compliance Updates:

With frequent changes in GST regulations, staying compliant can be a challenge. Marg ERP Software takes care of this by providing real-time updates to ensure that businesses are always aligned with the latest tax laws. This proactive approach minimizes the risk of non-compliance and potential penalties.

4. Advanced Automation and Accuracy:

The software’s advanced algorithms and automation capabilities eliminate the chances of human errors in calculations and data entry. Businesses can confidently rely on Marg ERP Software for accurate GST return filing, reducing the possibility of audits and ensuring smooth tax operations.

5. Seamless Integration:

Marg ERP Software seamlessly integrates with various accounting systems, ERPs, and financial tools, making it a perfect fit for businesses that have existing setups. The platform effortlessly assimilates with your current processes, facilitating a smooth transition to one-click GST return filing.

6. Dedicated Customer Support:

Marg ERP Software offers dedicated customer support to guide users through the implementation process and address any queries or concerns that may arise. This comprehensive support ensures that businesses can optimize the software’s capabilities and make the most out of their investment.

7. Robust Security Measures:

Data security is a top priority for Marg ERP Software. The platform employs robust security measures to safeguard sensitive financial information from unauthorized access, giving businesses the peace of mind they need while handling their financial data.

Conclusion:

When it comes to filing GST returns with a single click, Marg ERP Software leads the way with its advanced technology, user-friendly interface, real-time compliance updates, and automation prowess. Businesses of all sizes can benefit from the platform’s streamlined processes, accurate calculations, and seamless integration, making Marg ERP Software the best choice for optimizing tax operations and staying ahead in the competitive business landscape.

Embrace Marg ERP Software as your gateway to one-click GST return filing excellence and unlock the full potential of your business with this revolutionary solution. Say goodbye to the complexities of GST return filing and welcome a more efficient, productive, and compliant future.

Read more useful content:

• GST Rules and Regulations in India
• GST Software
• GST Billing Software
• Billing Software
• GST on diamonds
• Making GST Payments
• GST E-invoice

Composition Scheme under the Goods and Services Tax (GST) is a scheme that is designed to simplify the tax compliance process for small businesses and reduce their tax burden. This scheme is particularly beneficial for businesses with a low annual turnover, as it allows them to pay taxes at a lower rate and with less complexity. In this article, we will provide an in-depth overview of the Composition Scheme and its key features.

Eligibility Criteria for the Composition Scheme

To be eligible for the Composition Scheme, a business must meet certain criteria:

• The business must have a turnover of up to Rs. 1.5 crore in the previous financial year.
• The business must only engage in the supply of goods, not services.
• The business must not be engaged in the manufacture of goods, with a few exceptions.
• The business must not be engaged in the inter-state supply of goods.

Benefits of Opting for the Composition Scheme

The Composition Scheme offers several benefits to eligible businesses, including:

• Lower tax rates: Under the Composition Scheme, businesses are required to pay taxes at a lower rate, which is significantly lower than the standard GST rate.
• Simplified compliance process: The Composition Scheme simplifies the tax compliance process for small businesses, reducing the administrative burden and enabling them to focus on their core business activities.
• Reduced compliance costs: The simplified compliance process under the Composition Scheme reduces the costs associated with GST compliance, making it more affordable for small businesses.

Requirements for Registration under the Composition Scheme

To register under the Composition Scheme, a business must:

• File an application for registration through the GST portal.
• Provide the required information and documents, such as PAN, GSTIN, and bank details.
• Pay the applicable taxes and fees.

Filing Returns under the Composition Scheme

Under the Composition Scheme, businesses are required to file quarterly returns instead of monthly returns. The returns must be filed through the GST portal and must include details of the sales and purchases made during the quarter, along with the tax paid.

Limitations and Restrictions

The Composition Scheme comes with certain limitations and restrictions, including:

• Limited to supplies of goods: The Composition Scheme is only available for businesses that engage in the supply of goods. Businesses that engage in the supply of services are not eligible for this scheme.
• Limited to certain types of goods: The Composition Scheme is only available for businesses that supply certain types of goods, such as food items, handicrafts, and others.
• No inter-state supplies allowed: Businesses registered under the Composition Scheme are not allowed to make inter-state supplies of goods.

Conclusion

In conclusion, the Composition Scheme under GST provides a simplified and more affordable tax compliance solution for small businesses engaged in the supply of goods. By opting for this scheme, businesses can reduce their tax burden and focus on their core business activities while still fulfilling their tax obligations.

Read more useful content:

• Business Operations with eWay Bill
• Section 80C
• Basics of Income Tax

Frequently Asked Questions (FAQs)

Q1. What is the Composition Scheme under GST?

A: The Composition Scheme under the Goods and Services Tax (GST) is a scheme that is designed to simplify the tax compliance process for small businesses and reduce their tax burden. This scheme allows businesses with a low annual turnover to pay taxes at a lower rate and with less complexity.

Q2. Who is eligible for the Composition Scheme under GST?

A: To be eligible for the Composition Scheme, a business must have a turnover of up to Rs. 1.5 crore in the previous financial year, must only engage in the supply of goods, not services, must not be engaged in the manufacture of goods (with a few exceptions), and must not be engaged in the inter-state supply of goods.

Q3. What are the benefits of opting for the Composition Scheme under GST?

A: The Composition Scheme offers several benefits to eligible businesses, including lower tax rates, a simplified compliance process, and reduced compliance costs.

Q4. What is the process for registering under the Composition Scheme under GST?

A: To register under the Composition Scheme, a business must file an application for registration through the GST portal, provide the required information and documents, such as a PAN, GSTIN, and bank details, and pay the applicable taxes and fees.

Q5. How often are returns required to be filed under the Composition Scheme under GST?

A: Under the Composition Scheme, businesses are required to file quarterly returns instead of monthly returns. The returns must be filed through the GST portal and must include details of the sales and purchases made during the quarter, along with the tax paid.

Q6. What are the limitations and restrictions of the Composition Scheme under GST?

A: The Composition Scheme has certain limitations and restrictions, including being limited to supplies of goods, being limited to certain types of goods, and not allowing inter-state supplies.

Q7. Can businesses engaged in the supply of services opt for the Composition Scheme under GST?

A: No, businesses engaged in the supply of services are not eligible for the Composition Scheme.

Q8. Can businesses registered under the Composition Scheme make inter-state supplies of goods?

A: No, businesses registered under the Composition Scheme are not allowed to make inter-state supplies of goods.

Q9. Can a business change from the Composition Scheme to the regular GST scheme?

A: Yes, a business can change from the Composition Scheme to the regular GST scheme if it exceeds the turnover limit or if it engages in the manufacture of goods, or the supply of services. The change must be made before the end of the financial year.

Goods and Services Tax (GST) is a value-added tax system introduced in India to simplify and streamline the indirect tax regime in the country. GST registration is a mandatory requirement for all businesses whose turnover exceeds a certain limit. In this blog, we will discuss the various GST registration status in India.

1. Active GST Registration: This is the status assigned to a business that has successfully registered for GST and is compliant with all the regulations. Businesses with active GST registration are eligible to avail of input tax credits and issue GST invoices to their customers.
2. Provisional GST Registration: This status is assigned to businesses that are in the process of obtaining a permanent GST registration number. A provisional registration number is valid for a limited period of time and is usually granted to businesses that have applied for GST registration but have not yet received their permanent number.
3. Cancelled GST Registration: This status is assigned to businesses that have had their GST registration cancelled by the government. This can happen due to non-compliance with GST regulations or due to the business ceasing operations.
4. Suspended GST Registration: This status is assigned to businesses whose GST registration has been temporarily suspended. This can happen due to non-compliance with GST regulations or due to the business not filing returns for a certain period of time.
5. Rejected GST Registration: This status is assigned to businesses that have had their GST registration application rejected by the government. This can happen due to incorrect or incomplete information provided during the registration process.
6. Deregistered GST Registration: This status is assigned to businesses that have voluntarily chosen to surrender their GST registration. This can happen when the business decides to close operations or when the turnover of the business falls below the mandatory registration threshold.
7. Amended GST Registration: This status is assigned to businesses that have made changes to their GST registration details. This can include changes to the business name, address, or nature of the business. Businesses with amended GST registration are required to inform the authorities about the changes and update their records accordingly.
8. Transferred GST Registration: This status is assigned to businesses that have transferred their GST registration from one state to another. This can happen when the business moves to a new location or expands operations to a different state. Businesses with transferred GST registration are required to inform the authorities about the change and update their records accordingly.
9. Duplicate GST Registration: This status is assigned to businesses that have obtained multiple GST registrations. This can happen due to errors during the registration process or due to fraudulent activities. Businesses with duplicate GST registration are required to surrender the duplicate registration and maintain only one valid GST registration.
10. Voluntarily Registered GST: In addition to mandatory GST registration, businesses may also choose to register for GST voluntarily. This can happen when the business’s turnover is below the mandatory registration threshold, but they still wish to avail of the benefits of GST, such as input tax credits and the ability to issue GST invoices.
11. Composition Scheme GST Registration: The composition scheme is a simplified compliance procedure for small businesses with a turnover of up to 1.5 crore INR. Under this scheme, businesses are required to pay a fixed rate of tax on their supplies and file returns on a quarterly basis. This scheme is only available for businesses engaged in the supply of goods and not services.
12. Input Service Distributor (ISD) GST Registration: An Input Service Distributor is a registered entity that distributes input tax credit to its branches or divisions. This scheme is applicable to businesses with multiple branches or divisions and helps in reducing the administrative burden of multiple GST registrations.
13. TDS/TCS Registration: TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) are provisions under the GST law for the deduction or collection of tax at the time of payment to suppliers. Businesses that are required to deduct or collect tax under TDS/TCS provisions are required to obtain a separate registration for the same.
14. Migration to GST: When the GST law was introduced in India, businesses were required to migrate their existing indirect tax registrations to the GST regime. This process involved transferring existing VAT, service tax, and other registrations to the GST system. Businesses were required to provide details of their existing registrations along with their GST registration application, to ensure a smooth transition to the GST regime.
15. GST Registration for Non-Resident Taxable Persons: Non-Resident Taxable Persons (NRTPs) are foreign entities that supply goods or services in India but do not have a permanent establishment in the country. NRTPs are required to obtain GST registration in India and are subject to the same GST regulations as resident businesses.
16. GST Registration for Casual Taxable Persons: Casual Taxable Persons (CTPs) are entities that occasionally supply goods or services in India but do not have a permanent establishment in the country. CTPs are required to obtain a temporary GST registration for the duration of their taxable supplies in India and are subject to the same GST regulations as resident businesses.
17. GST Registration for E-Commerce Operators: E-Commerce operators are entities that provide an online platform for the supply of goods or services by other businesses. E-Commerce operators are required to obtain GST registration in India and are responsible for collecting and depositing TCS (Tax Collected at Source) on behalf of the government.

In conclusion, the various GST registration statuses cater to the diverse needs of businesses in India and help simplify the indirect tax regime. It is crucial for businesses to understand the different GST registration statuses and choose the right one that suits their needs. Regular monitoring and updating of GST registration status can help ensure compliance with the laws and avoid any penalties or legal consequences.

Read more useful content:

• Business Operations with eWay Bill
• Section 80C
• Basics of Income Tax

Frequently Asked Questions (FAQs)

1. What is the GST registration status?

The GST registration status refers to the current status of a taxpayer’s GST registration, such as whether it is active, cancelled, or revoked.

2. How do I check my GST registration status?

You can check your GST registration status by visiting the GST portal and accessing your GST account. Alternatively, you can also check the status of your GST registration by providing your GSTIN (GST Identification Number) on the GST Common Portal.

3. What are the different GST registration statuses?

The different GST registration statuses include: Active, Cancelled, Revoked, Provisional, Suspended, and Cancelled (For Non-filing of Returns).

4. What does it mean when my GST registration status is active?

When your GST registration status is active, it means that your GST registration is valid and in force. This means that you are able to conduct taxable business transactions and file GST returns.

5. What does it mean when my GST registration status is cancelled?

When your GST registration status is cancelled, it means that your GST registration is no longer valid. This may be due to various reasons, such as non-compliance with GST regulations or the closure of your business.

6. What does it mean when my GST registration status is revoked?

When your GST registration status is revoked, it means that your GST registration has been cancelled by the tax authorities. This may be due to non-compliance with GST regulations or other reasons as specified by the tax authorities.

7. Can I reapply for GST registration if my registration has been cancelled or revoked?

Yes, you can reapply for GST registration if your registration has been cancelled or revoked. You will need to submit a new application and fulfill all the required conditions for GST registration.

8. What should I do if I find any discrepancy in my GST registration status?

If you find any discrepancy in your GST registration status, you should immediately contact the concerned tax authorities and provide them with the necessary information and documents to rectify the discrepancy.

9. Is it mandatory to update my GST registration status?

Yes, it is mandatory to update your GST registration status as per the requirements of the GST regulations. Failure to do so may result in penalties and legal consequences.

What is HSN Code?

The Harmonized System of Nomenclature (HSN) is an internationally recognized system of names and numbers that classifies products. It was developed by the WCO to provide a common language for trade across borders.

HSN code is a six-digit code that is used to classify goods and services for the purpose of taxation. Each digit of the code represents a different level of classification, from broad to specific. The first two digits represent the chapter, the next two digits represent the heading, and the final two digits represent the sub-heading.

How does HSN Code Works?

HSN code works by assigning a unique code to each product. This code is used to classify goods and services for the purpose of taxation. In India, HSN code is used to implement the Goods and Services Tax (GST). The HSN code for each product is included in the invoice, which helps to determine the rate of tax that is applicable to the product.

The GST system uses HSN codes to ensure that each product is taxed at the correct rate, and to prevent tax evasion.

Importance of HSN Code

HSN code is essential for trade across borders, as it provides a common language for classifying products. It also plays a vital role in the implementation of GST in India. HSN code helps to determine the rate of tax applicable to each product, which helps to prevent tax evasion. It also ensures that the correct rate of tax is applied to each product, which helps to maintain fairness in the taxation system.

Read Other Useful Blogs:

• Direct Taxes in India
• Role of Indirect Taxes
• GST Registration in India

Benefits of HSN Code

The HSN code system provides a number of benefits for trade and taxation. Some of the key benefits of HSN code are as follows:

• Simplifies trade: HSN code simplifies trade by providing a common language for classifying products. This makes it easier for businesses to identify and classify products for import/export, and for customs officials to verify the classification.
• Prevents confusion: HSN code prevents confusion by ensuring that each product is classified accurately and consistently. This reduces the risk of misunderstandings, disputes, and errors in trade.
• Improves transparency: HSN code improves transparency by providing a clear and detailed classification system for products. This helps businesses and governments to understand the nature and characteristics of different products.
• Facilitates tax compliance: HSN code facilitates tax compliance by providing a clear and consistent system for determining the rate of tax applicable to each product. This helps businesses to comply with tax regulations and prevents tax evasion.

HSN Code in India

In India, HSN code plays a significant role in the implementation of GST. GST is a tax system that was introduced in India in 2017 to simplify the tax system and reduce the burden of multiple taxes.

HSN code is used to implement GST by providing a clear and consistent system for determining the rate of tax applicable to each product. Under GST, goods and services are classified into four tax rates: 5%, 12%, 18%, and 28%.

HSN code is used to determine the appropriate tax rate for each product. HSN code is also used for other tax purposes, such as customs duty, excise duty, and service tax.

How to Find HSN Code?

Finding the appropriate HSN code for a product can be a bit challenging, but there are several resources available to help. Here are some ways to find HSN code:

• Check the product packaging: The product packaging may contain the HSN code for the product. Look for a label or a sticker that indicates the code.
• Check the manufacturer’s website: The manufacturer’s website may have information about the HSN code for the product. Look for a product specification or a product data sheet.
• Check the government website: The government website may have a searchable database of HSN codes. In India, the Central Board of Indirect Taxes and Customs (CBIC) has a database of HSN codes on their website.

HSN Code vs. SAC Code

Apart from HSN code, there is another system of classification used in India for services called SAC (Services Accounting Code). SAC code is a similar six-digit code used to classify services for taxation purposes under GST. The first two digits represent the heading, while the remaining four digits represent the sub-heading. The SAC code is used to determine the appropriate rate of tax for services, similar to how HSN code is used for goods.

Importance of Accurate HSN Code

It is crucial to assign the correct HSN code to a product as it plays a vital role in determining the rate of tax applicable to the product. Assigning the wrong code can result in incorrect taxation, which can lead to penalties and legal complications. Moreover, the use of an inaccurate HSN code can also lead to delays in customs clearance, affecting the overall supply chain.

HSN Code Implementation Challenges

While HSN code is an essential system for classifying goods for trade and taxation, there are some challenges in its implementation. One of the key challenges is the lack of awareness and understanding among businesses and individuals involved in trade. This can lead to errors in classification and the use of incorrect codes, leading to incorrect taxation. Moreover, HSN code has a vast and complex structure, making it difficult to classify some products accurately. To overcome these challenges, businesses and individuals need to educate themselves about HSN code and seek expert advice where necessary.

Conclusion

HSN code is a crucial tool for classifying goods and services for the purpose of taxation. It is used globally to provide a common language for trade across borders. In India, HSN code plays a significant role in the implementation of GST.

It helps to determine the rate of tax applicable to each product, which helps to prevent tax evasion and maintain fairness in the taxation system. It is essential to assign the correct HSN code to products to ensure accurate taxation and prevent legal complications.

While there are some challenges in the implementation of HSN code, it remains an essential tool for businesses involved in trade and taxation. Understanding HSN code is essential for anyone involved in trade, taxation, or import-export.

Frequently Asked Questions (FAQs)

Q.1) What is HSN code, and what does it stand for?

HSN code stands for Harmonized System of Nomenclature. It is a six-digit code used to classify goods and products for trade and taxation purposes.

Q.2) Why is HSN code important?

HSN code is important as it provides a common language for classifying goods and products. It helps businesses and governments to identify and classify products accurately and consistently, simplifying trade and preventing confusion.

Q.3) Who uses HSN code?

HSN code is used by businesses involved in import-export, customs officials, and tax authorities. It is also used by individuals involved in the supply chain, such as logistics providers and freight forwarders.

Q.4) What is the structure of HSN code?

HSN code has a six-digit structure, with the first two digits representing the chapter, the next two digits representing the heading, and the last two digits representing the sub-heading.

Q.5) What are the benefits of HSN code?

The benefits of HSN code include simplifying trade, preventing confusion, improving transparency, and facilitating tax compliance.

Q.6) How is HSN code used in India?

In India, HSN code is used to implement GST by providing a clear and consistent system for determining the rate of tax applicable to each product. HSN code is also used for other tax purposes, such as customs duty, excise duty, and service tax.

Q.7) How can I find the appropriate HSN code for my product?

You can find the appropriate HSN code for your product by checking the product packaging, the manufacturer’s website, or the government website. In India, the Central Board of Indirect Taxes and Customs (CBIC) has a database of HSN codes on their website.

Q.8) What are some of the challenges in implementing HSN code?

Some of the challenges in implementing HSN code include a lack of awareness and understanding among businesses and individuals, the vast and complex structure of HSN code, and the difficulty in classifying some products accurately.

Q.9) What is the difference between HSN code and SAC code?

Apart from HSN code, there is another system of classification used in India for services called SAC (Services Accounting Code). SAC code is a similar six-digit code used to classify services for taxation purposes under GST.

Q.10) Can I use HSN code for international trade?

Yes, HSN code is an internationally recognized system of classification, and it can be used for international trade. However, different countries may have different tariff structures, and businesses may need to be aware of these when using HSN code for international trade.

GSTR-2B is an auto-drafted input tax credit (ITC) statement under the Goods and Services Tax (GST) regime in India. It provides taxpayers with a summary of the available ITC available in their electronic credit ledger. The purpose of GSTR-2B is to simplify the process of claiming ITC and to reduce the risk of fraudulent claims.

Importance and benefits of GSTR-2B

GSTR-2B is an important tool for taxpayers to track and manage their ITC. By providing a summary of the available ITC, it helps taxpayers to ensure that they are not missing out on any ITC that they are eligible for. Additionally, GSTR-2B makes it easier for taxpayers to reconcile their ITC with their purchases, reducing the risk of errors and fraud.

When was GSTR-2B made available?

GSTR-2B was made available from April 1, 2019, for taxpayers registered under the GST regime in India.

How to access GSTR-2B on the GST portal?

To access GSTR-2B, taxpayers need to log in to the GST portal using their login credentials. Once logged in, they can access GSTR-2B under the “Returns” section. From there, they can view and download their GSTR-2B statement in PDF format.

Contents and features of GSTR-2B

The GSTR-2B statement provides taxpayers with the following information:

• Total ITC available in the electronic credit ledger
• Breakup of ITC by type (e.g., ITC under CGST, SGST, IGST, and CESS)
• Details of purchases for which ITC has been claimed
• Details of ITC that has been reversed or lapsed
• The detailed format of GSTR-2B

The GSTR-2B statement is divided into several sections, including:

• Part A: Summary of ITC available
• Part B: Details of ITC claimed in GSTR-3B
• Part C: Details of ITC reversed or lapsed
• Part D: Details of ITC lapsed due to non-filing of returns
• In Part A, the summary of ITC available, taxpayers can view the total ITC available in their electronic credit ledger, along with the breakup of ITC by type (e.g., ITC under CGST, SGST, IGST, and CESS).

In Part B, the details of ITC claimed in GSTR-3B, taxpayers can view the details of purchases for which ITC has been claimed, including the GSTIN of the supplier, invoice number, and date.

In Part C, the details of ITC reversed or lapsed, taxpayers can view the details of ITC that has been reversed or lapsed, including the reason for the reversal or lapsing of ITC.

In Part D, the details of ITC lapsed due to non-filing of returns, taxpayers can view the details of ITC that has lapsed due to the non-filing of returns, including the GSTIN of the supplier and the period for which the return was not filed.

In addition to the benefits mentioned above, GSTR-2B also helps to promote transparency and accountability in the GST system. It allows taxpayers to track their ITC claims and monitor the accuracy of the information submitted by their suppliers. This can help to reduce the risk of errors and fraud and promote a more efficient and effective GST system.

Another advantage of GSTR-2B is that it makes it easier for taxpayers to track their ITC claims over time. By having a clear and concise summary of their ITC claims, taxpayers can make more informed decisions about their GST compliance and identify any potential issues early on. This can help to minimize the risk of penalties and other legal repercussions for non-compliance.

It is important for taxpayers to ensure that their GSTR-2B statement is accurate and up-to-date. To do this, they need to regularly reconcile their ITC claims with their purchases and ensure that the information submitted by their suppliers is accurate and complete. This includes checking the details of the invoices, such as the invoice number, date, and GSTIN of the supplier, and verifying that the ITC claimed is in line with the eligible credits.

Taxpayers also need to be aware of the deadlines for filing their GSTR-2B statement. The deadline for filing GSTR-2B is the 20th of each month, and taxpayers need to ensure that their statement is filed on time to avoid any late fees or penalties. In addition, taxpayers need to be aware of the due dates for the different types of returns under the GST regime, including GSTR-1, GSTR-3B, and GSTR-9, and ensure that they are filed on time.

To ensure that they are in compliance with the GST regulations, taxpayers need to be familiar with the different types of returns that are required under the GST regime, as well as the information that needs to be included in each return. This includes understanding the different types of ITC that are eligible, such as ITC under CGST, SGST, IGST, and CESS, and the conditions under which ITC can be claimed.

In addition, taxpayers need to be aware of the different types of ITC reversals and lapses that can occur and the reasons for these reversals and lapses. This includes understanding the consequences of failing to file returns on time, as well as the consequences of claiming ITC fraudulently.

Conclusion

GSTR-2B is a valuable tool for taxpayers in India to effectively manage their ITC and ensure that they are in compliance with the GST regulations. By understanding the contents and features of GSTR-2B, taxpayers can make the most of their eligible credits, minimize the risk of errors and fraud, and promote a more efficient and effective GST system. Taxpayers need to regularly reconcile their ITC claims with their purchases and ensure that their GSTR-2B statement is accurate and up-to-date to ensure that they are in compliance with the GST regulations. GSTR-2B is an important tool for taxpayers to manage and track their ITC under the GST regime in India. By providing a summary of the available ITC, it helps taxpayers to ensure that they are not missing out on any ITC that they are eligible for, while also reducing the risk of fraudulent claims. Taxpayers can access their GSTR-2B statement on the GST portal

Article Content:

• What is GST Payments and Refunds?
• Types of GST payments
• GST calculation and payment
• Who should and when pay GST?
• How to pay GST?
• Events when GST refund arises. 
• Let us understand GST refund with an example
• Deadline to claim GST refund
• Relevant dates for Some Cases
• How to claim GST refund?
• Refund Order
• The form you may receive after the final order
• When can an ITC be claimed?

What is GST Payments and Refunds?

Every GST registered person is required to submit returns every month or on a quarterly or yearly basis. In the GST filing, GSTR-1 is filed to report the sale and GSTR-3B is filed to claim the ITC and make necessary payments related to interest, penalty and tax. For any GST refund required, a GST user can claim a refund by filling the respective GST refund form.

Types of GST payments

Different types of payments are made under GST which can be mainly divided into three.

• SGST: This payment is made when you supply goods and services within the state (paid to the state).
• CGST: This payment is made when you supply goods and services within the state (paid to the centre).
• IGST: This payment is made when you supply goods and services interstate (paid to the centre).

Apart from all these payments, the registered user is also required to make some other payments.

• TDS (Tax Deducted at Source): TDS is an advance tax deduction process that is done after a certain limit at the time the buyer makes the payment to the supplier.

TDS Example- ABC ltd hires a contractor for some work with a contract value of Rs 5 lakh.

At the time of making payment to the contractor company, ABC Ltd. will deduct TDS @1% (TDS amount Rs 5,000) on total amount and pay the rest.

• TCS (Tax Collected at Source): This implies on e-commerce websites when a dealer sells his goods through e-commerce websites, they will receive their payment after deducting TCS. TCS will be charged at the rate of 2%.

• Reverse Charge: A reverse charge is a mechanism where tax payment is done by the recipient, instead of the supplier of the goods or services.

GST Calculation and Payment

When calculating the total GST payment, initially your input tax credit claims will try to settle the outward tax liability and if there is still some liability left then you need to pay the remaining liability through the challan.

The input tax credit cannot offset your interest and late fees, they need to be paid in cash.

Calculation of GST will be done based on GST user type:

• Regular Dealer: A regular GST dealer will pay GST when he makes outward supplies of goods and services and can also claim ITC (Input Tax Credit).

The difference between ITC and outward tax liability will be GST liability for a regular dealer.

• Composition Dealer: The composition is an opt scheme and the dealers who opt for the composition scheme will have to pay a fixed percentage on their total outward supply. The GST percentage of composition schemes will depend on the business category.

Who should and when pay GST?

These are some dealers who are required to pay GST:

• A dealer registered under the GST portal is required to pay GST if there is any liability.
• Those operators who collect TCS are required to pay GST.
• Those dealers who deduct TDS are required to pay GST.

GST users pay GST liability through GSTR-3 return which has to be replenished every month.

How to pay GST?

In GST, you have to pay for many things like interest, penalty, late fees and tax liability which is paid with the help of Electronics Ledgers which includes:

• Cash Ledger: This ledger will reflect deposit from TDS, TCS and Cash.
• Credit Ledger: This ledger will reflect all ITC claims.
• Liability Ledger: This ledger will display all your GST liability after settling all claims.

First, the GST liability will be settled with ITC or Credit Ledger and if the liability persists it will be settled through Cash Ledger.

GST Refund

GST was introduced to make the tax process smooth and hassle-free. To further refine the GST process, the government has introduced several features of which GST refund is one. Sometimes a situation arises to claim GST refund when GST payment exceeds your liabilities. GST provides a clear and effective invoice-based tracking system, which verifies all transactions for the process of GST refunds.

Events When GST Refund Arises. 

Your GST refund can arise due to many reasons, Let’s look at some reasons:

• Where an unintentional mistake leads to excessive payment of tax.
• Provisional assessment may result in a GST refund.
• GST refund arises in adjudicating officer findings.
• International tourists get GST refunds on the taxes paid by them.
• When the purchase is made by foreign embassies or bodies of the United Nations, they can be granted a refund in this case.
• Exports including deemed exports can claim GST refund if any additional credit arises.
• When your output tax liability is zero or exempt and you have accumulated ITC credit.

Let us understand GST refund with an example:

Mr. A has a GST liability of Rs. 10,000 but due to some mistake, Mr. A paid Rs. 1,00,000. Now the additional payment of Rs 90,000 will be considered as GST refund which he can claim as a refund within 2 years from the date of payment.

Deadline to claim GST refund

The deadline for claiming GST refund is two years from the relevant date and the relevant date will be different in each scenario.

Relevant dates for Some Cases

How to claim GST refund?

Form RFD-01 has to be submitted for GST refund after being certified by a Chartered Accountant. In case of GST refund of foreign embassies or bodies of the United Nations, they are required to submit Form RFD-10 within 90 days.

After submitting RFD-01 you will receive form RFD-02 as an acknowledgment via email and SMS. If there is any deficiency in your refund form, you will receive the form RFD-03 to correct your application.

Your refund application takes about 30 or above days to process, but the time can also vary in many conditions. The refund will be subject to an audit if the amount exceeds the prescribed limit.

Refund Order

When the export of goods or services claims a refund, an authorized officer could allow a provisional refund order through Form RFD-04 if they meet certain criteria. When the authorized officer compares all the ledgers maintained by the government and finds that the refund is valid. Within 60 days of the application, the officer authorizes the final order of GST refund by issuing Form RFD-05.

The form you may receive after the final order:

• Form RFD-06 is issued when your refund is to be adjusted against the tax.
• Form RFD-07 is issued when your refund application has been rejected.
• Form RFD-08 is issued for payment advice.
• Form RFD-09 is issued for the delay of payment.

When can an ITC be claimed?

• When your output tax liability is zero or exempt and you have accumulated ITC credit for several months.
• When your ITC claim attracts a higher tax rate, finished products and services attract a lower tax rate. This accumulated ITC will be allowed for a refund.
• When the reverse charge payment did not fully utilize the input tax credit against the outward tax.

This is some important information related to the GST payment and refund system that you need to know.

24th March 2020

As India is facing difficult times due to COVID-19, to provide some relief for businesses Class on 24th March Finance Minister Smt Nirmala Sitharaman has announced some relaxation.

1. GSTR-1 & 3B due date has been extend
2. ded till the last week of June 2020 for the month of February, March, April 2020.
3. There is no late fees or penalty for late filing of GST returns if your annual turnover is less than Rs 5 crore.
4. GST payment is made after 15 days from the original due date, by the remaining taxpayers are liable to pay interest at 9%.
5. Due date of filing GSRT-4, CMP-8 and CMP-2 is extended to 30th June 2020.
6. All compliance-related to GST is extended till 30th June 2020 which is going to expire between 20th March to 29th June 2020. 
7. Now you can avail the scheme till 30th June 2020 for the Sbha Vishwas scheme.

23rd March 2020 

Some of the important notifications are passed:

1. From now, in some cases, certain types of people need to authenticate Aadhaar for getting registered under GST.
2. For the months of April 2020 till September 2020, GSTR-1 and 3B have been notified.
3. Under notification No. 2/2019-Central Tax (Rate) those who are not able to avail the provided option of special composition scheme, FORM GSTR-1 is waived off for Financial Year 2019-20.
4. Special GST compliance procedures notified for the companies during the CIRP period.

14th March 2020

On 14th March 2020 in New Delhi, the GST Council held its 39th meeting. Some of the decisions taken in the meeting are:

Changes in GST Rates, e-invoicing to be extended to 01.10.2020, implementation of the new GST return is extended.

7th February 2020

Those taxpayers who failed to file GST TRAN-1 (for carrying forward the transitional credit) earlier due to technical error in the portal, can now file as the last date was extended up to 31st March 2020.

3rd February 2020

Taxpayers having annual turnover up to Rs 5 crore in the previous financial year, will file the GSTR-3B in a staggered manner for the month January, February and March 2020, as follows:

• 22nd of the next month for taxpayers of: Karnataka, Goa, Chhattisgarh, Madhya Pradesh, Maharashtra, Kerala, Gujarat, Tamil Nadu, Telangana or Andhra Pradesh or the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman, and the Nicobar Islands and Lakshadweep
• 24th of the next month for taxpayers of: Uttarakhand, Jharkhand or Orissa or the Union territories of Jammu and Kashmir, Chandigarh and Delhi, Ladakh, Tripura, Punjab, Nagaland, Himachal Pradesh, Haryana, Rajasthan, Mizoram, Uttar Pradesh, Assam, Bihar, Sikkim, Arunachal Pradesh, Manipur, Meghalaya, West Bengal.

3rd February 2020

The Financial Year 2017-18 form GSTR-9 or GSTR-9C (filing of annual return or reconciliation statement) due date is further extended, in a staggered format 5th February and 7th February 2020, on the basis of the state or union territory as follows:

• 5th February 2020: Jammu and Kashmir, Punjab, Uttarakhand, Gujarat, Haryana, Ladakh, Rajasthan, Delhi, Tamil Nadu and Chandigarh.
• 7th February 2020: Assam, Arunachal Pradesh, Maharashtra, Manipur, Himachal Pradesh, Meghalaya, Mizoram, Nagaland, Odisha, Puducherry, Sikkim, Telangana, Tripura, West Bengal, Uttar Pradesh and Other Territory, Lakshadweep, Chhattisgarh, Dadra and Nagar Haveli and Daman and Diu, Goa,  Andaman and Nicobar Islands, Andhra Pradesh, Bihar, Jharkhand, Karnataka, Kerala, Madhya Pradesh.

10th January 2020

To file all GSTR-1 returns from July 2017 to November 2019 one-time amnesty scheme is further extended up to 17th January 2020.

26th December 2019

The Financial Year 2017-18 form GSTR-9 or GSTR-9C (filing of annual return or reconciliation statement) due date is further extended till 31 January 2020.

18th December 2019

On 18th December 2019 in New Delhi, the GST Council held its 38th meeting. Some of the decisions taken in the meeting are:

1. In GSTR-3B provisional Input Tax Credit claim further restricted to 10% instead of the earlier 20%
2. For filling of GSTR-9 and GSTR-9C for the Financial Year 2017-18 due dates extended till 31st January 2020
3. Under amnesty scheme till 10 January 2020 no late fee for filing GSTR-1 return for the periods July 2017 and November 2019.
4. GST returns due date is extended for certain categories of taxpayers living in North-eastern states.
5. Levy a uniform rate of 28 % tax on the sale of lottery tickets.
6. In case of non-filing of respective returns Standard Operating Procedure (SOP) to be followed.

10th December 2019

The GST Council will conduct the 38th GST Council Meeting on Wednesday, 18 December 2019. The important points to be focused in the meeting are; changes in GST rate, simplification of the upcoming new GST return system and relook into the cases of the inverted tax structure.

14th November 2019

The Financial Year 2017-18 and 18-19 form GSTR-9 or GSTR-9C (filing of annual return or reconciliation statement) due date has been extended till to 31st December 2019 and 31st March 2020.

20th September 2019

On 20th September 2019 in Goa, the GST Council held its 37th meeting. Some of the decisions taken in the meeting are:

1. From April 2020 the new GST return filing system will be applicable.
2. Soon, Unless GSTR-1 was filed, ITC claims might be restricted.
3. GSTR-9 filing optional for the businesses having the turnover up to Rs 2 crores, for the Financial Year 2017-18 and 18-19.
4. GSTR-9A waived for the Financial Year 2017-18 and 18-19.
5. GSTR-9 and GSTR-9C will be reviewed for simplification by A Committee of Officers.
6. In the new GST registration, Aadhaar is compulsory and Aadhaar may also become compulsory for claiming a refund.
7. Single authority to be introduced from 24th September 2019 for the Integrated refund system with refund disbursal.
8. In principle a decision to prescribe reasonable restrictions for passing of ITC by risky taxpayers including risky new taxpayers (likely to be system driven based on their activity).

31st August 2019

1. Taxpayers having a principal place of business in J&K and certain districts of  Kerala, Karnataka, Gujarat, Maharashtra, Bihar, Odisha, and Uttarakhand, GSTR-7 due date for the month of July 2019 is extended till 20th September 2019.
2. Late fees have been waived off for GSTR-6 and July 2019 GSTR-1. For the taxpayers doing business in some flood-affected districts of the States of Uttarakhand, Maharashtra, Kerala, Bihar, Gujarat, Karnataka, Odisha and all districts of J&K.
3. CBIC notified that furnishing the Form ITC 04 has been waived for July 2017 to March 2019. However, the registered individual has to provide the information of all those challans which are related to the goods send to the job worker but not received in the month of July 2017 to March 2019 or not supplied from the place of business of the job worker as on the 31st March 2019, that information needs to provide in serial number 4 for the period of April 2019 to June 2019 of Form GST ITC-04.

26th August 2019

The Financial Year 2017-18 GSTR-9, GSTR-9C and GSTR-9A due date has been further extended till to 30th November 2019.

21st August 2019

Taxpayers having a principal place of business in some of the districts of Karnataka, Bihar, Gujarat, Kerala, Odisha, Uttarakhand Maharashtra July 2019 GSTR-3B due date is extended till 20th September 2019. also in Jammu and Kashmir.

16th August 2019

Information from sources: On Friday (20 September), the GST Council could organise the 37th GST Council meeting. However, an official confirmation from the GST Council is awaited.

27th July 2019

On Saturday (27th July 2019), the GST Council held its 36th meeting via video conference.

25th July 2019

On 25th July 2019, the 36th GST council meeting was postponed. Next date to be announced by the GST Council soon. 

18th July 2019

The CMP-08 filing due date is extended from 18th July 2019 to 31st July 2019 for the period April 2019- to June 2019.

28th June 2019

1. Important notification announced by CBIC:

GSTR-3B for July 2019 to September 2019 and GSTR-1 for monthly and quarterly, the last dates have been communicated.

The due date extended to submit the ITC-04, for July 2017 to June 2019 and provided some more time to the service sector prone to opt into a composition scheme under circular No. 02/2019-CT(R) dated 7th March 2019.

• The GST registered taxpayer can transfer any other amount available in the electronic cash through PMT-09 under the Act to the electronic cash ledger, for all the taxes like; integrated, central, State or cess or Union territory.

1. Bill of supply and Tax Invoice could get compulsory QR Code.
2. Calculation of the value of supply in cases where Kerala Flood Cess is applicable has been defined.
3. Retail outlets can make tax free supply to the outgoing international tourist through the outlets which are established in the departure zone of an international Airport beyond immigration counters. Those retailers need to submit the RFD- 10B on a quarterly or monthly basis.
4. CBIC Provides an exemption to the Suppliers of OIDAR services, from the filing of the GSTR-9 and GSTR-9C.
5. CBIC notified that the GSTR 4 has to be filed annually in the new format. From the FY 2019-2020.

21st June 2019

On 21st June 2019, the GST Council held its 35th meeting. In the presence of the FM Nirmala Sitharaman.

1. For the FY 2017-18, the last date of furnishing GST Annual Return extended till 31st Aug 2019.
2. CBIC introduced the Aadhar-empower, GST Registration.
3. The tenure of NAA has been increased by 2 years.
4. If depositing a profiteered amount delayed more than 30 days, then a 10% penalty levy for payment delay.
5. E-Invoice under GST will be rolled out from Jan 2020.
6. Mandatory for multiplexes to use e-ticketing systems.
7. Regarding the electric vehicles, chargers and leasing thereof deferred will get rate cuts and commission submit its report. The affairs have been referred to the Attorney General so the GST council has put on hold for the rate cut on Lottery.
8. GSTAT to be GST Appellate Tribunal The GST council stated that Goods and Service Tax Appellate Tribunal (GSTAT). The states have been given the option to decide the number of GSTAT required by them.

28th Mar 2019

GST ITC-04 last date extended till 30th June 2019, for the month of July 2017 to March 2019.

19th Mar 2019

On 19th Mar 2019, the GST Council held its 34th meeting through video conference.

In the meeting, they have discussed rate cuts under building affordable and unaffordable housing.

24th February 2019

• On 24th February 2019, the GST Council held its 33rd meeting .
• January month last date of filing GSTR-3B extended till 22nd February 2019, but for the Jammu & Kashmir GSTR-3B filing extended till 28th February 2019.

10th February 2019

On 20 February 2019, the GST Council would organise its 33rd meeting through video conference. After the 2019 Interim Budget, this will be the first meeting.
The Chairperson of this meeting will be Finance Minister Arun Jaitley, and the major topic of this meeting is the Export and Real Estate sectors.

10th January 2019

On 10th January 2019 in New Delhi, the GST Council held its 32nd meeting. Which was chaired by the Finance Minister Arun Jaitley. 

Some of the important notifications of the 32nd meeting:

• The GST Council has doubled the exemption limit from 20 lakhs to 40 lakhs for the suppliers of the goods.
• There is an amendment in the current composition scheme, the limit increased to Rs 1.5 crore from Rs 1 crore which will be applicable from April 1, 2019. One Annual Return and pay taxes made on quarterly basis.
• CBIC introduced a composition scheme for the service providers and those who supply services along with goods with a turnover of up to Rs 50 lakh, Fixed Tax at the rate of 6%.
• For the study of taxation under lotteries and construction properties, GoMs commission will be formed.
• The government will levy a 1% calamity cess on the value of goods and services up to 2 years on intra-state supplies of Kerala.

22nd December 2018

On 22nd December 2018, the GST Council held its 31st meeting. Some of the decisions taken in the meeting are:

1. Amendment in GST Rate
2. Due date to file the return, GSTR-9,9A and 9C has been extended till 30th June 2019
3. Trail of new return filing system will go live on GST portal from 1 April 2019 and many more were announced.

8th December 2018

The last date has been extended for furnishing GSTR-9, GSTR-9A and GSTR-9C for FY 2017-18 from 31st Dec 2018 till 31st Mar 2019.

8th December 2018

On 22nd December 2018 in Delhi, the GST Council will hold its 31st GST Council meeting.

28th November 2018

CBIS has extended the last dates in the particular areas which have been affected by Gaza Titli and cyclones, for furnishing GSTR-3B, GSTR-4 and GSTR-1:

*Tiruchirappalli, Puddukottai,Thiruvarur, Cuddalore, Nagapatinam, Theni, Thanjavur, Sivagangai, Dindigul, Karur and Ramanathapuram.

26th Oct 2018:

1. GST ITC-04 last date extended till 31 Dec 2018, for the month of July 2017 to September 2018.
2. The final return Form GSTR-10 needs to be filed till 31 Dec 2018 by those whose GST number is cancelled by the GST department till 30 Sep 2018.

21st Oct 2018:

Last date is extended to 25 Oct 2018 to reconcile and file the rectified data for FY 2017-18 in GSTR-3b for September 2018 & to claim actual ITC. 

28th Sep 2018:

On Friday (28th September 2018), the GST Council held its 30th meeting via video conference.

13th Sep 2018:

1. TCS (Tax collected at source) and TDS (Tax deducted at source) provision Under GST As Implementation on 1st October 2018.
2. GSTR-9C is live now in the GST portal, but there is no information about the last date of GSTR-9C filing.

10th Sept 2018:

1. Due date for filing GSTR-3B for months July 2017 to Nov 2018 extended till 31st December 2018 for the newly migrated taxpayers.. Remaining taxpayers need to file GST on the due date.
2. The Due date extension for return furnishing of FORM GSTR-1 in case of taxpayers having an aggregate turnover of over Rs 1.5 crores in previous FY or Current FY
   1. Regular taxpayers due date extended till the 31st October 2018 for the months July 2017 to September 2018.
   2. Due date extended for the months July 2017 to November 2018 till 31st December 2018 for the newly migrated taxpayers.
3. The Due date extension for return furnishing of FORM GSTR-1 in case of taxpayers having an aggregate turnover up to Rs 1.5 crores in previous FY or Current FY

1. Regular taxpayers:

1. Due date extended for all quarters from July 2017 to September 2018 till 31st December 2018 for the newly migrated taxpayers.
2. Last date of submitting the return has been extended till 15th Nov 2018 for the month of July 2018 to Sep 2018 for flood-affected areas. Remaining dates are the same as mentioned. Name of the affected areas Kerala, Mahe and Kodagu

1. Those taxpayers who failed to file GST TRAN-1 and TRAN-2 earlier due to technical error in the portal can now file as the last date was extended up to 31st March 2019 and 30th April 2019 respectively.

4th Sep 2018: 

1. Taxpayers who filed GST CMP-04 between 2nd March 2018 to 31st March 2018 for opting out of the composite scheme can declare their ITC claim in Form GST ITC -01 till 3rd of October 2018.
2. The due date for filing Form GST ITC-04 has been extended till 30th September 2018 for the period of July 2017 to June 2018.
3. Format of GSTR -9 and GSTR -9A has been released by CBIC.
4. Late fees waived by the GST council, for the following taxpayers:

1. GSTR -3B submitted but not filed on the GST portal for the month of October 2017 by the Taxpayers.
2. GSTR -4 was submitted and filed within the due date by the Taxpayer, for the period of October to December 2017. But still, late fees were collected.
3. The Input service distributors who have paid late fees for filing or submission of the return in Form GSTR-6 for any tax period between 1st Jan 2018 to 23rd Jan 2018.

21st Aug 2018:

July month GSTR-3B filing last date extended till 24th Aug 2018.

6th Aug 2018:

Reverse Charge Mechanism (in case a GST registered vendor buys certain taxable supplies from an unregistered vendor), TDS and TCS provisions under GST have been further Deferred from 30 Sept. 2018 to 30th Sept 2019.

4th Aug 2018:

The GST Council held the 29th GST Council Meeting at New Delhi.

Some of the important points:

1. The Digital Payments incentive scheme got a green flag. 
2. To form the commission for resolving MSME distress.

30th Jul 2018:

For the period of July 17 to Aug 18, the last date of filing GSTR-6 extended till 30th Sep 2018.