Goods & Service Tax

Implementation of GST has seen as a great tax reform that will unify the entire nation, as far as taxation is concerned. This has been beneficial for various sectors, at the same time, implementation of GST will have social consequences on charities and the non-profit organizations.   What is GST? A person who carries any business at any place all over India and who is have registered or falls under the categories of registration of GST is a ‘Taxable Person’. The term ‘person’ also includes Company, Firm, LLP, Trust, Artificial juristic person, Government corporations, Local authorities and many more. Charitable and Religious Trust falls under the public trust which is one kind of trust. As per section 12AA of the Income Tax Act, 1961 if a public trust gets registration under this section it will get an exemption from paying tax. But with the implementation of GST things are different for these trusts also.  The taxability of anything is foundbased on various laws related to taxation. The tax put on goods and services sold for domestic consumption is GST (Good and Services Tax). Under GST the definitions of terms, like business, taxable person, supply and consideration are relevant for determining taxation. Trust under Indian Law A trust is a kind of legal relationship in which the person holding a certain right gives that right to another person or entity who must keep and use it solely for the benefit of others. As per section 3 of the Indian Trust Act, 1882, trust is definedas, ‘a duty annexed to the ownership of the property which is arising out of a confidence reposed in, accepted by him for the benefits of another or of both another and the owner’. Trust can be of two types: Public Trust: The trust which works for the benefit of the public at large or where the beneficiary of the trust is not capable of ascertainment. Charitable and Religious Trust falls under this kind of trust. Charitable and Religious Trust Act, 1920, the Religious Endowment Act, 1963, etc., governs these trusts, but the Indian Trust Act, 1882, does not governthe public trust.  Private Trust: The trust which works for the benefit of one or more people is a private trust. Indian Trust Act, 1882, governs private trusts. Impact of GST on Public Trusts (Charitable and Religious Trust) Implementation of GST has replaced the multiple tax system of both central and state governments. It has been beneficial to many sectors, at the same time it had a social consequence on charities and non-profit organizations. Under GST charitable and religious trusts have to pay tax on some of the services and goods supplied by them. Section 2(17) of CGST Act, 2017 (The Central Goods and Services Act, 2017) clearly states that profit-making is not an essential condition for an activity to become a business. So, activities without the aim of profit-makingare also a business. If the supply is made without any kind of consideration for purpose of business is liable to pay GST.  Section 7 of the Act in which a new clause under the definition of supply was added after amendment, says that ‘the activities or transactions involving the supply of goods and services by a person, other than an individual, to its members or constituents or vice-versa, for cash, deferred payment or other valuable’.  In simple, if any goods and services are sold or provided for consideration in return by any public trusts, then it becomes taxable although their aim is non-profit making. Exemption to charitable and religious trust is available only if it comes under these conditions: Charitable and Religious trusts which get registration under section 12AA of the Income Tax Act, 1961. Services provided by trusts which fall under the meaning of Charitable activities. Activities that are charitable under GST  These are certain goods and services which are charitable activities as per GST: Public health services like counselling of terminally ill person, disabled person, HIV or AIDS-affected people. Moreover, people depended on drugs or alcohol. Advancement of Religion, spirituality or yoga. Advancement of educational programs or skill development related to, abandoned, orphaned or homeless children; prisoners; physically as well as mentally abused and traumatized persons; persons above the age of 65 residing in the rural area. Preservation of the environment which includes, forests, wildlife and watershed. Impact of GST on Public Trusts, while conducting any events and training program, etc.  If the events, training programs, yoga camps and other programs conducted by the charitable and religious trust are free of cost then they are exempted from GST. When the participant is charged it becomes a commercial activity and will be liable to pay GST for those events.   If charitable or religious trusts do any of the things mentioned below then they will have to pay GST:  When any of the trust rent out rooms are charging more than Rs. 1,000 a day If open area charged more than Rs. 10,000 a day. Rent out shops at more than Rs. 10,000 a month. The goods sold by these trust is taxable and will have to pay the GST rate applicable while purchasing the supply. FAQs Are the events organized by charitable trusts exempt from GST? If trusts are running schools, colleges or any other educational institutions specifically for abandoned, orphans, homeless children, physically or mentally abused persons, prisoners or persons over age of 65 years or above residing in a rural area, such activities will be considered as charitable activities and income from such supplies will be wholly exempt from GST. What happens when a charitable trust rents out a religious place? Is there any GST on that? GST law has chalked out GST exemptions, when a charitable trust rents out religious meant for general public (owned and managed by a registered charitable trust under 12AA of the Income Tax Act, 1961). GST will be exempted when: Rent out rooms are charged lesser than Rs.1,000 a day Kalyanamandapam or an open area is charged lesser than Rs.10,000 a day Rent out shops and

Input tax credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs and pay the balance amount. Here’s how:When you buy a product/service from a registered dealer you pay taxes on the purchase. On selling, you collect the tax. You adjust the taxes paid at the time of purchase with the amount of output tax (tax on sales) and balance liability of tax (tax on sales minus tax on purchase) has to be paid to the government. This mechanism is called utilization of input tax credit. For example- you are a manufacturer:  Tax payable on output (final product) is Rs 450 Tax paid on input (purchases) is Rs 300 You can claim input credit of Rs 300 and deposit only Rs 150 in taxes What is Input Tax Credit? Input tax credit (ITC) is the tax paid by the buyer on purchase of goods or services. Such tax which is paid at the purchase when reduced from liability payable on outward supplies is known as input tax credit. In other words, input tax credit is tax reduced from output tax payable on account of sales. GST Reconciliation ITC Reconciliation is a process undertaken to ensure that a registered taxpayer is granted the correct amount of credit for their purchases. This involves comparing the information submitted by suppliers in their GSTR-1 forms with the purchase records maintained by the taxpayer. The supplier’s details from GSTR-1 are automatically reflected in the taxpayer’s GSTR-2A form, facilitating this comparison. To validate the accuracy of the data provided by the supplier in GSTR-1, all entries must be backed by legitimate documents such as invoices, debit notes, credit notes, and any necessary amendments. This step is crucial for confirming the authenticity of the transactions and the corresponding tax credit claims Who can claim ITC? ITC can be claimed by a person registered under GST only if he fulfils ALL the conditions as prescribed. The dealer should be in possession of tax invoice The said goods/services have been received Returns have been filed. The tax charged has been paid to the government by the supplier. When goods are received in installments ITC can be claimed only when the last lot is received. No ITC will be allowed if depreciation has been claimed on tax component of a capital good What can be claimed as ITC? Personal us Exempt supplies Supplies for which ITC is specifically not available Reversal of Input Tax Credit ITC can be availed only on goods and services for business purposes. If they are used for non-business (personal) purposes, or for making exempt supplies ITC cannot be claimed . Apart from these, there are certain other situations where ITC will be reversed. ITC will be reversed in the following cases- 1) Non-payment of invoices in 180 days– ITC will be reversed for invoices which were not paid within 180 days of issue. 2) Credit note issued to ISD by seller– This is for ISD. If a credit note was issued by the seller to the HO then the ITC subsequently reduced will be reversed. 3) Inputs partly for business purpose and partly for exempted supplies or for personal use – This is for businesses which use inputs for both business and non-business (personal) purpose. ITC used in the portion of input goods/services used for the personal purpose must be reversed proportionately. 4) Capital goods partly for business and partly for exempted supplies or for personal use – This is similar to above except that it concerns capital goods. 5) ITC reversed is less than required- This is calculated after the annual return is furnished. If total ITC on inputs of exempted/non-business purpose is more than the ITC actually reversed during the year then the difference amount will be added to output liability. Interest will be applicable. Eligibility of ITC GST Registration: The individual or entity must be registered under GST. Business Use: The goods or services acquired should be used for business purposes, as per Section 16(1) of the GST Act. Possession of Invoice: Following Section 16 (2) (a), the taxpayer must possess a valid invoice or tax-paying document that contains all necessary details. Receipt of Goods/Services: The goods or services for which input tax credit is claimed must have been received, aligning with Section 16(2)(b). Tax Payment by Vendor: The vendor who charged the tax must have paid this tax to the government. Vendor Compliance: To ensure compliance, the vendor from whom the tax was collected must have filed the necessary returns, particularly GSTR-2B. Documents Required for Claiming ITC Invoice issued by the supplier of goods/services  The debit note issued by the supplier to the recipient (if any)  Bill of entry  An invoice issued under certain circumstances like the bill of supply issued instead of tax invoice if the amount is less than Rs 200 or in situations where the reverse charge is applicable as per GST law.  An invoice or credit note issued by the Input Service Distributor(ISD) as per the invoice rules under GST.  A bill of supply issued by the supplier of goods and services or both. Key Data to Reconcile for GST Compliance Data to be Reconciled Purpose Purchase Register and GSTR-2A Verify the accuracy of inward supplies as declared by suppliers Sales Register and GSTR-1 Confirm the accuracy of outward supplies reported by your business GSTR-3B and GSTR-1 Match tax liability and ITC details for accurate tax reporting GSTR-2B and GSTR-3B Ensure correct utilisation of ITC based on auto-drafted data Input Tax Credit (ITC) Match claimed ITC in GSTR-3B with available ITC in GSTR-2A or GSTR-2B E-way Bills and Invoices Cross-verify data to reconcile taxable amounts and identify discrepancies Annual Returns and Monthly/Quarterly Returns Confirm consistency in data reported throughout the financial year Supplier-wise GST Reconciliation Reconcile data for each supplier separately to ensure accurate ITC claims What are the Consequences of not Conducting the ITC Reconciliation? Lost ITC Claims: The government might not approve the tax credit you’re supposed to get. Risk of Notices: You might get notices for claiming more tax credits

GST council is a governing body to regulates and directs every step for the implementation of goods and service tax in the nation with decisions over tax rates and further implementation measures. GST council assimilates suggestions and regulations into one form and improvises the changes formally through notifications and circulars with its departments and finance ministry. A single common “Goods and Services Tax (GST)” was proposed and given a go-ahead in 1999 during a meeting between the Prime Minister Mr. Atal Bihari Vajpayee and his economic advisory panel. Mr. Vajpayee set up a committee headed by the then finance minister of West Bengal, Asim Dasgupta to design a GST model. Establishment of the GST Council The notification regarding the establishment of the GST Council was issued on Saturday the 10th day of September 2016 and the provisions came into force on Monday the 12th day of September 2016. Article 279A having provisions regarding the establishment of the GST Council was inserted after Article 279 of THE CONSTITUTION (ONE HUNDRED AND FIRST AMENDMENT) ACT, 2016. The Union Finance Minister is the head of the GST Council while the First Meeting of the council was held on 22nd and 23rd September 2016 in New Delhi GST Council Constitution According to Article 279A, it is on the part of the president to give the order to constitute the council of GST within 60 days from the 12th of September 2016 which is already notified by the Government. Following are the designated personnel, who will form the GST Council together:- The Union Finance Minister who will be the Chairman of the council; The Union Minister of State in charge of Revenue or Finance who will be a member of the council; One member from each state who is Minister in charge of Finance or Taxation or any other Minister and any one of them will be vice chairman of the GST Council who will be mutually elected by them. GST Council recommendations Article 279A (4) specifies that the Council will make recommendations to the Union and the states on the important issues related to GST, such as, the goods and services will be subject or exempted from the GST. Further, they lay down GST laws, principles that govern the following: Place of supply Threshold limits GST rates on goods and services Special rates for raising additional resources during a natural calamity or disaster Special GST rates for certain states Quorum and Decision-Making For a valid meeting of the members of the GST Council, at least 50 per cent of the total number of members should be present at the meeting. Every Decision made during the meeting should be supported by at least 75 per cent majority of the weighted votes of the members who are present and voting at the meeting. In “article 279A” a principle is there which divides the total weighted vote cast between the Central Government and State Government:- The vote of the Central Government shall have the weight of one-third of the total votes The votes of the State Government shall have the weight of two-thirds of the total votes, cast in the meeting Any act, decision or proceedings shall not be declared invalid based on any remaining deficiency at the time of the establishment of the GST Council i.e. if there is any vacancy remaining in the Council if there is any defect in the constitution of the Council if there is any defect in the appointment of a person as a member of the Council if there is any procedural non-compliance. Features of GST Council GST Council office is set up in New Delhi Revenue Secretary is appointed as the Ex-officio Secretary to the GST Council Central Board of Indirect Taxes and Customs (CBIC) is included as the chairperson as a permanent invitee (non-voting) to all GST Council proceedings Create a post for Additional Secretary to the GST Council Create four posts of commissioner in the GST Council Secretariat (This is at the level of Joint Secretary) GST Council Secretariat will have officers taken on deputation from both the Central and State Governments Main Functions of the GST Council Principles of levy, model Goods and Services Tax Laws, the appointment of Goods and Services Tax levied on supplies in the course of Inter-State trade or commerce under article 269A, and the principles that govern the place of supply; For raising resources during any natural calamity or disaster, or any special rate or rates for a specified period, to raise additional. On subsuming various taxes, cess, and surcharges in GST. Details of services and goods that will be subjected to GST or which will be exempted from GST. On the Threshold limit below which, services and goods will be exempted from GST. On GST rates including floor rate with bands of GST and any special rate for the time being to arrange resources to face any natural calamity. Making special provisions for the following states: Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand. On model law on GST, the Principal of levy of GST and the principles which will govern the Place of Supply. FAQs What is the GST Council? The GST Council is a constitutional body established under Article 279A of the Indian Constitution. It is responsible for making recommendations to the Union and State governments on issues related to Goods and Services Tax (GST). Who are the members of the GST Council? The GST Council comprises the following members: The Union Finance Minister (Chairperson) The Union Minister of State in charge of Revenue or Finance The Finance Ministers of all the States

GST registration is mandatory for companies with an annual turnover of Rs. 20 lakhs or more who engage in the buying and selling of goods and services. Upon registration, every taxpayer is assigned a unique identification number called GSTIN (Goods and Services Tax Identification Number). The GST portal offers a convenient feature to search for GSTIN data using the PAN (Permanent Account Number). What is GSTIN? GSTIN is the GST identification number or GST number. A GSTIN is a 15-digit PAN-based unique identification number allotted to every registered person under GST. As a GST-registered dealer, you might want to do a GST verification before entering it into your GST Returns. You can use the GST number check tool to do GST number (GSTIN) verification. There can be multiple GSTINs for a single person with a PAN, being an assessee under the Income Tax Act. A GSTIN is obtained for every state or Union Territory from which such a person operates. It becomes compulsory to obtain GSTIN when the person crosses the threshold limit for GST registration by registering himself under GST. Unlike the previous indirect tax regime where multiple registration numbers were present for different laws such as Excise, Service Tax and VAT, GSTIN is a single registration number under GST. Mandatory for Eligible Entities: Businesses and individuals whose aggregate turnover exceeds the prescribed threshold limit (Rs. 20 lakhs for regular taxpayers, Rs. 10 lakhs for special category states) must register for GST. Voluntary Registration: Even if their turnover is below the threshold, entities can opt for voluntary GST registration to avail of benefits such as claiming Input Tax Credit (ITC) and expanding their business presence. GSTIN: Upon successful registration, the taxpayer is assigned a unique 15-digit GSTIN. This number is used for all GST-related transactions and compliance. Online Application: The GST registration is primarily conducted online through the GST portal. Applicants must provide the necessary documents and details to complete the application. Composition Scheme: Small taxpayers with a turnover of up to Rs. 1.5 crores can opt for the Composition Scheme, simplifying compliance and tax payment. Regular Filing: Registered taxpayers must regularly file GST returns, which include details of their sales, purchases, and tax liability. These returns are filed monthly, quarterly, or annually, depending on the taxpayer’s category. Input Tax Credit: One of the key benefits of GST registration is the ability to claim Input Tax Credit (ITC). Registered taxpayers can offset the GST they have paid on purchases against the GST they collect on sales. Compliance Requirements: GST registration comes with compliance obligations, including maintaining proper records, issuing tax invoices, and adhering to GST rates and rules. Penalties for Non-compliance: Failure to register for GST when required or non-compliance with GST rules can result in penalties and legal consequences. Why is it necessary to verify the GST Number? A GSTIN or GST number is public information. GST search by name is an important task that every business dealing with GST-registered taxpayers must carry out to ensure the authenticity of the vendor and the GSTIN or GST number being used in the invoice. You can partly verify the GSTIN or GST number on the first look by checking if the vendor’s PAN number matches with the digits between 3 and 10 in the GSTIN. It is also necessary to carry out a thorough check of the GSTIN authenticity to avoid generating incorrect invoices and e-invoices, to claim a genuine input tax credit, and to pass on the tax credits to rightful buyers, to mention a few Format of a GSTIN (Goods and Services Tax Identification Number) The first two digits represent the state code where the business is registered. The next ten digits correspond to the business entity’s Permanent Account Number (PAN). The 13th digit is used to identify the total number of registrations a business has within a specific state and is known as the Entity Identification Number (EIN). The 14th digit is always “Z.” The 15th and final digit can be either an alphabet or a number. Methods for Verifying GSTIN Information GSTIN Search by Name: Users can visit the official GST portal of their respective country or region and use the “GST Search by Name” option. By entering the name of the business or entity, along with any additional details like the state or region, users can access a list of GSTINs associated with the provided name and their status. GSTIN Search by PAN: Another method is to use the “GST Search by PAN” option on the official GST portal. By entering the PAN (Permanent Account Number) of the business or entity, users can retrieve a list of GSTINs associated with the PAN and their status. GST Search by PAN Searching for a GST number (GSTIN) using the PAN (Permanent Account Number) is a useful method, especially when dealing with registered businesspersons who may have multiple GSTINs across different states in India. Using the PAN of a registered taxpayer, you can efficiently search for and access all associated GSTINs, streamlining the process of tracking and verifying their tax registrations. This approach simplifies the task of managing GST compliance for businesses operating in multiple states. Benefits of searching GSTIN by PAN Searching for GSTIN by PAN offers several benefits, including: Verification of Legitimacy: Consumers and businesses can easily verify the legitimacy of a business entity by using the GSTIN search by PAN tool. This helps ensure that they are dealing with a registered and genuine business. Locating the State: GSTIN search by PAN allows users to determine where a vendor’s business is active. This information can be useful for businesses when dealing with vendors across different states. Error Avoidance: Dealers and businesses can prevent errors in GST-related transactions by verifying the GST number using the PAN. This ensures that they are accurately recording and reporting GST information. What information is available in a GST search by PAN A GST search by PAN provides the following information: List of GSTINs: Users will receive a list of GSTINs (Goods and Services Tax Identification Numbers) associated with the provided PAN. Status: For each GSTIN, the search will display the status, indicating whether the GSTIN is active

The Goods and Service Tax puts forth several types of forms for taxpayers to file returns. These forms are classified based on the returns filing frequency and type of transaction undertaken. GSTR 1 return must be filed by all persons registered under GST. GSTR 1 return is due on the 10th of each month for taxpayers who have a turnover of more than Rs.1.5 crores. GSTR 1 is due every quarter for taxpayers having less than Rs.1.5 crores turnover. From the month of October 2017, the normal schedule for filing GSTR 1 return will continue. What is GSTR-1? GSTR-1 is a monthly or quarterly return that should be filed by every registered GST taxpayer, except a few as given in further sections. It contains details of all outward supplies i.e sales. The return has a total of 13 sections, listed down as follows: Tables 1, 2 & 3: GSTIN, legal and trade names, and aggregate turnover in the previous year Table 4: Taxable outward supplies to registered persons (including UIN-holders) excluding zero-rated supplies and deemed exports Table 5: Taxable outward inter-state supplies to unregistered persons where the invoice value is more than Rs.2.5 lakh Table 6: Zero-rated supplies as well as deemed exports Table 7: Taxable supplies to unregistered persons other than the supplies covered in table 5 (net of debit notes and credit notes) Table 8: Outward supplies that are nil rated, exempted and non-GST in nature Table 9: Amendments to outward supplies that are taxable and reported in table 4,5 & 6 of the earlier tax periods’ GSTR-1 return (including debit notes, credit notes, refund vouchers issued during the current period) Table 10: Debit note and credit note issued to unregistered person Table 11: Details of advances received or adjusted in the current tax period or amendments of the information reported in the earlier tax period. Table 12: Outward supplies summary based on HSN codes Table 13: Documents issued during the period. Table 14: For suppliers – Reporting ECO operators’ GSTIN-wise sales through e-commerce operators on which e-commerce operators are liable to collect TCS u/s 52 or liable to pay tax u/s 9(5) of the CGST Act Table 14A: For suppliers – Amendments to Table 14 Table 15: For e-commerce operators – Reporting both B2B and B2C, suppliers’ GSTIN-wise sales through e-commerce operators on which e-commerce operator must deposit TCS u/s 9(5) of the CGST Act Table 15A: For e-commerce operators –Table 15A I – Amendments to Table 15 for sales to GST registered persons (B2B)Table 15A II – Amendments to Table 15 for sales to unregistered persons (B2C) Who Should File GSTR 1? Taxpayers liable to collect TDS. Those liable to collect TCS. Suppliers of Online Information Database Access and Retrieval (OIDAR) services (as per Section 14 of the IGST Act). Non-resident taxable persons. Taxpayers registered under the GST composition scheme. Input Service Distributors (ISDs). What is the Last Date for Filing GSTR 1? For businesses with turnover Month/Quarter Due Date More than Rs.5 crore                             Jan 2024 11th Feb 2024 Feb 2024 11th Mar 2024 Mar 2024 12th Apr 2024 (earlier 11th Apr 2024) Apr 2024 11th May 2024 May 2024 11th Jun 2024 Jun 2024 11th Jul 2024 Jul 2024 11th Aug 2024 Aug 2024 11th Sept 2024 Sept 2024 11th Oct 2024 Oct 2024 11th Nov 2024 Nov 2024 11th Dec 2024 Dec 2024 11th Jan 2025 Jan 2025 11th Feb 2025 Feb 2025 11th Mar 2025 Mar 2025 11th Apr 2025 Turnover up to Rs.5 crore  (QRMP Scheme)             Oct-Dec 2023 13th Jan 2024 Jan-Mar 2024 13th Apr 2024 Apr-Jun 2024 13th Jul 2024 Jul-Sept 2024 13th Oct 2024 Oct-Dec 2024 13th Jan 2025 Jan-Mar 2025 13th Apr 2025 GSTR-1 late fees and penalty Name of the Act Late fees for every day of delay Maximum late fee (if the annual turnover in the previous financial year is up to Rs.1.5 crore) Maximum late fee(If the annual turnover ranges between Rs.1.5 crore and Rs.5 crore)  Maximum late fee(If the turnover is more than Rs.5 crore)  CGST Act, 2017 Rs 25 Rs 1,000 Rs 2,500 Rs 5,000 Respective SCGT Act, 2017 / UTGST Act, 2017 Rs 25 Rs 1,000 Rs 2,500 Rs 5,000 Total late fees to be paid Rs 50 Rs 2,000 Rs 5,000 Rs 10,000 The following table explains the late fee to be charged in case of nil GSTR-1 filing: Name of the Act Late fees for every day of delay Maximum late fee CGST Act, 2017 Rs 10 Rs 250 Respective SCGT Act, 2017 / UTGST Act, 2017 Rs 10 Rs 250 Total late fees to be paid Rs 20 Rs 500 FAQs Can I upload an invoice only while filing the return? You can upload invoices anytime. It is highly advised that you upload invoices at regular intervals during the month to avoid bulk upload at the time of filing a return. This is because bulk upload takes a lot of time. Can I file GSTR-1 after the due date? Yes, you can file the GSTR-1 even after the due date. However, you have to pay a late fee based on the delayed number of days.

E-invoicing has become an important aspect of the compliance requirements for GST in India. There have been various amendments to the compliance requirements related to the applicability of e-invoicing. As per the latest amendment in August 2023, all the businesses registered under the GST Act, with a total turnover exceeding Rs.5 crores, are required to generate an e-invoice. Earlier, this threshold was Rs.10 crores. However, in line with the government’s initiative to promote digital India, the government brought about this amendment.  e-Invoicing under GST denotes electronic invoicing defined by the GST law. Just like how a GST-registered business uses an e-way bill while transporting goods from one place to another. Similarly, certain notified GST-registered businesses must generate e invoice for Business-to-Business (B2B) transactions. What is e-invoicing Under GST? Electronic invoicing or e-invoicing is a system in which the B2B invoices and other important documents are verified and authenticated electronically with the help of GSTN for use on the GST portal. In the 35th Council of GST, a system of e-invoicing was implemented, which covers all types of enterprises. Under this electronic invoicing system, an identification number is issued for every invoice generated by the Invoice Registration Portal (IRP) and managed by the GST Network (GSTN). All the information on the invoice is transferred from this portal to the e-way bill portal or the GST portal in real time. This way eliminates manual data entry requirements at the time of generating the invoice. e-Invoicing’ or ‘electronic invoicing’ is a system in which B2B invoices and a few other documents are authenticated electronically by GSTN for further use on the common GST portal. In its 35th meeting, the GST Council decided to implement a system of e-Invoicing, covering specific categories of persons, mostly large enterprises. Later on, it has been expanded to cover mid-sized businesses and small businesses as well. e-Invoicing does not imply the generation of invoices on the GST portal but it means submitting an already generated standard invoice on a common e invoice portal. Thus, it automates multi-purpose reporting with a one-time input of invoice details. The CBIC notified a set of common portals to prepare e invoice via Notification No.69/2019 – Central Tax. Under the electronic invoicing system, an identification number will be issued against every invoice by the Invoice Registration Portal (IRP), managed by the GST Network (GSTN). The National Informatics Centre launched the first IRP at einvoice1.gst.gov.in. All invoice information gets transferred from this portal to both the GST portal and the e-way bill portal in real-time. Therefore, it eliminates the need for manual data entry while filing GSTR-1 returns and generation of part-A of the e-way bills, as the information is passed directly by the IRP to the GST portal. Who is Required to Generate e-invoice, and What is its Applicability? As per the new rules of GST on e-invoicing, all businesses having a turnover exceeding Rs.5 crore have to generate e-invoice. This threshold was Rs.10 crore before the latest amendment. Ever since the introduction of the e-invoicing system, there have been significant changes in the threshold from time to time. Below is a table that shows the journey of e-invoice implementation in India. S. No. Threshold Limit Date of Applicability 1 500Cr 1st October 2020 2 100 Cr 1st January 2021 3 50 Cr 1st April 2021 4 20 Cr 1st April 2022 5 10 Cr 1st October 2022 6 5 Cr 1st August 2023 If the turnover in the last FY was below the threshold limit but it increased beyond the threshold limit in the current year, then e-Invoicing would apply from the beginning of the next financial year i.e. FY 2023-24. Suppose, ABC ltd aggregate turnover was as follows-  FY 2017-18: Rs 15 crore  FY 2018-19: Rs 17 crore  FY 2019-20: Rs 24 crore  FY 2020-21: Rs 19 crore  FY 2021-22: Rs 18 crore Suppose, QPR ltd started business in FY 2019-20 and earned aggregate turnover as follows-  FY 2019-20: Rs 4 crore  FY 2020-21: Rs 7 crore  FY 2021-22: Rs 11 crore    The ABC Ltd shall mandatorily generate e invoices from 01.04.2022 irrespective of the current year’s aggregate turnover as it has crossed the Rs 20 crore turnover limit in FY 2019-20. On the other hand, QPR ltd should comply with e-Invoicing from 1st October 2022 since its previous year’s annual turnover exceeds Rs.10 crore. Who need not comply with e-Invoicing? Notified Businesses Documents Transactions 1)An insurer or a banking company or a financial institution, including an NBFC  2) A Goods Transport Agency (GTA)  3) A registered person supplying passenger transportation services  4) A registered person supplying services by way of admission to the exhibition of cinematographic films in multiplex services  5) An SEZ unit (excluded via CBIC Notification No. 61/2020 – Central Tax)  6) A government department and Local authority (excluded via CBIC Notification No. 23/2021 – Central Tax)   7) Persons registered in terms of Rule 14 of CGST Rules (OIDAR) Delivery challans, Bill of supply, financial or commercial credit note or debit note, bill of entry, and ISD invoices. Any Business-to-Consumers (B2C) sales, Nil-rated or non-taxable or exempt B2B sale of goods or services, nil-rated or non-taxable or exempt B2G sale of goods or services, imports, high sea sales and bonded warehouse sales, Free Trade & Warehousing Zones (FTWZ), and supplies under reverse charge covered by Section 9(4) of the CGST Act. What are the Documents Required for e-invoicing? Documents Transactions Tax invoices, credit notes, and debit notes under Section 34 of the CGST Act Taxable Business-to-Business sale of goods or services, Business-to-government sale of goods or services, exports, deemed exports, supplies to SEZ (with or without tax payment), stock transfers or supply of services to distinct persons, SEZ developers, and supplies under reverse charge covered by Section 9(3) of the CGST Act. What is Aggregate Turnover as per GST? As per section 2(6) of the GST Act, ‘Aggregate Turnover’ can be understood as the aggregate value of – All the taxable supplies Exported goods/services All exempted supplies All inter-state supplies of a person with the same PAN. Therefore, a registered individual with multiple GSTINs under the

Implementation of a comprehensive Income Tax system like GST in India will ensure that taxpayer services such as registration, returns, and compliance are transparent and straightforward. Individual taxpayers will be using 4 forms for filing their GST returns such as the return for supplies, return for purchases, monthly returns, and annual return. Small taxpayers who have opted for a composition scheme will have to file quarterly returns. All filing of returns will be done online. What is a GST Return? A GST return is a document containing details of all income/sales and/or expenses/purchases that a GST-registered taxpayer (every GSTIN) is required to file with the tax administrative authorities. This is used by tax authorities to calculate net tax liability. Under GST, a registered dealer has to file GST returns that broadly include: Purchases Sales Output GST (On sales) Input tax credit (GST paid on purchases) Who should file GST Returns? Under the GST regime, regular businesses having more than Rs.5 crore as annual aggregate turnover (and taxpayers who have not opted for the QRMP scheme) have to file two monthly returns and one annual return. This amounts to 25 returns each year.  Taxpayers with a turnover of up to Rs.5 crore have the option to file returns under the QRMP scheme. The number of GSTR filings for QRMP filers is 9 each year, which include 4 GSTR-1 and GSTR-3B returns each and an annual return. Note that QRMP filers have to pay tax on a monthly basis even though they are filing returns quarterly. There are also separate statements/returns required to be filed in special cases such as composition dealers where the number of GSTR filings is 5 each year (4 statement-cum-challans in CMP-08 and 1 annual return GSTR-4). How many returns are there under GST? There are 13 returns under GST. They are the GSTR-1, GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR-7, GSTR-8, GSTR-9, GSTR-10, GSTR-11, CMP-08, and ITC-04. However, all returns do not apply to all taxpayers. Taxpayers file returns based on the type of taxpayer/type of registration obtained.  Eligible taxpayers, i.e. with a turnover exceeding Rs.5 crore are also required to also file a self-certified reconciliation statement in Form GSTR-9C. Besides the GST returns that are required to be filed, there are statements of input tax credit  available to taxpayers, namely GSTR-2A (dynamic) and GSTR-2B (static). There is also an Invoice Furnishing Facility (IFF) available to small taxpayers who are registered under the QRMP scheme to furnish their Business to Business (B2B) sales for the first two months of the quarter. These small taxpayers will still need to pay taxes on a monthly basis using Form PMT-06. Return Form Description Frequency Due Date GSTR-1 Details of outward supplies of taxable goods and/or services affected. Monthly 11th of the next month. Quarterly (If opted under the QRMP scheme) 13th of the month succeeding the quarter. IFF (Optional by taxpayers under the QRMP scheme) Details of B2B supplies of taxable goods and/or services affected. Monthly (for the first two months of the quarter) 13th of the next month. GSTR-3B Summary return of outward supplies and input tax credit claimed, along with payment of tax by the taxpayer. Monthly 20th of the next month. Quarterly (For taxpayers under the QRMP scheme) 22nd or 24th of the month succeeding the quarter*** CMP-08 Statement-cum-challan to make a tax payment by a taxpayer registered under the composition scheme under Section 10 of the CGST Act. Quarterly 18th of the month succeeding the quarter. GSTR-4 Return for a taxpayer registered under the composition scheme under Section 10 of the CGST Act. Annually 30th of the month succeeding a financial year upto FY 23-24.30th of June suceeding a financial year upto FY 24-25. GSTR-5 Return to be filed by a non-resident taxable person. Monthly 20th of the next month. (Amended to 13th by Budget 2022; yet to be notified by CBIC.) GSTR-5A Return to be filed by non-resident OIDAR service providers. Monthly 20th of the next month. GSTR-6 Return for an input service distributor to distribute the eligible input tax credit to its branches. Monthly 13th of the next month. GSTR-7 Return to be filed by registered persons deducting tax at source (TDS). Monthly 10th of the next month. GSTR-8 Return to be filed by e-commerce operators containing details of supplies effected and the amount of tax collected at source by them. Monthly 10th of the next month. GSTR-9 Annual return by a regular taxpayer. Annually 31st December of the next financial year. GSTR-9C Self-certified reconciliation statement. Annually 31st December of the next financial year. GSTR-10 Final return to be filed by a taxpayer whose GST registration is cancelled. Once, when the GST registration is cancelled or surrendered. Within three months of the date of cancellation or date of cancellation order, whichever is later. GSTR-11 Details of inward supplies to be furnished by a person having UIN and claiming a refund Monthly 28th of the month following the month for which statement is filed. ITC-04 Statement to be filed by a principal/job-worker about details of goods sent to/received from a job-worker Annually  (for AATO up to Rs.5 crore)  Half-yearly (for AATO > Rs.5 crore) 25th April where AATO is up to Rs.5 crore.  25th October and 25th April where AATO exceeds Rs.5 crore.  (AATO = Annual aggregate turnover) Late filing of GST returns Late filing of GST returns can have serious consequences, including financial penalties and interest charges. It is essential for businesses to adhere to the prescribed due dates to avoid these adverse effects. Here are some key points to understand about late filing of GST returns: Mandatory Return Filing Under the Goods and Services Tax (GST) regime, return filing is mandatory, even if there are no transactions to report. This means that all registered taxpayers must file GST returns regularly, as specified by the government. Cascading Effect of Late Filing Late filing of GST returns can have a cascading effect. You cannot file the return for the current period if the return for the previous month or quarter has not been filed. This can result

The full form of eWay bill is electronic way bill. The GST eWay Bill is the key document used to track goods being transported as part of the Goods and Services Tax system. Currently an eWay bill can be easily generated online on the GST Portal and the process is governed by the e-Way Bill rules. An e-Way Bill has to be generated by any GST-registered entity supplying, receiving or transporting goods under the Goods and Services Tax regime. What is an eWay Bill? EWay Bill is an Electronic Way bill for movement of goods to be generated on the eWay Bill Portal. A GST registered person cannot transport goods in a vehicle whose value exceeds Rs. 50,000 (Single Invoice/bill/delivery challan) without an e-way bill that is generated on ewaybillgst.gov.in.  Alternatively, Eway bill can also be generated or cancelled through SMS, Android App and by site-to-site integration through API entering the correct GSTIN of parties. Validate the GSTIN with the help of the GST search tool before using it.  When an eway bill is generated, a unique Eway Bill Number (EBN) is allocated and is available to the supplier, recipient, and the transporter. When Should an e-Way Bill be Generated? Generating e-Way bill is mandatory if the value of goods being transported exceeds Rs. 50,000. If the value of goods being transported is less than Rs. 50,000, creation of eWay bill is optional. E-way bill is also mandatory if the supplier is not GST-registered but the receiver is GST-registered. The GST registered person is required to ensure compliance in such cases. If the supplier has not generated the eWay bill, the transporter is required to generate the same irrespective of whether the mode of transport is road, air or water. When Should eWay Bill be issued? eWay bill will be generated when there is a movement of goods in a vehicle/ conveyance of value more than Rs. 50,000 (either each Invoice or in aggregate of all invoices in a vehicle/conveyance)  – In relation to a ‘supply’ For reasons other than a ‘supply’ ( say a return) Due to inward ‘supply’ from an unregistered person For this purpose, a supply may be either of the following: A supply made for a consideration (payment) in the course of business A supply made for a consideration (payment) which may not be in the course of business A supply without consideration (without payment)In simpler terms,  the term ‘supply’ usually means a: Sale – sale of goods and payment made Transfer – branch transfers for instance Barter/Exchange – where the payment is by goods instead of in money Therefore, eWay Bills must be generated on the common portal for all these types of movements. For certain specified Goods, the eway bill needs to be generated mandatorily even if the value of the consignment of Goods is less than Rs. 50,000: Inter-State movement of Goods by the Principal to the Job-worker by Principal/ registered Job-worker Inter-State Transport of Handicraft goods by a dealer exempted from GST registration The transporters need not generate the Eway bill (as Form EWB-01 or EWB-02) where all the consignments in the conveyance Individually(single Document**) is less than or equal to Rs 50,000 BUT In Aggregate (all documents** put together) exceeds Rs 50,000 **Document means Tax Invoice/Delivery challan/Bill of supply Unregistered Transporters will be issued Transporter ID on enrolling on the e-way bill portal after which Eway bills can be generated. Who When Part Form Every Registered person under GST Before movement of goods Fill Part A Form GST EWB-01 Registered person is consignor or consignee (mode of transport may be owned or hired) OR is recipient of goods Before movement of goods Fill Part B Form GST EWB-01 Registered person is consignor or consignee  and goods are handed over to transporter of goods Before movement of goods Fill Part B  The registered person shall furnish the information relating to the transporter in Part B of FORM GST EWB-01 Transporter of goods Before movement of goods    Generate e-way bill on basis of information shared by the registered person in Part A of FORM GST EWB-01 An unregistered person under GST and recipient is registered Compliance to be done by Recipient as if he is the Supplier.    1. If the goods are transported for a distance of fifty kilometers or less, within the same State/Union territory from the place of business of the consignor to the place of business of the transporter for further transportation, the supplier or the transporter may not furnish the details of conveyance in Part B of FORM GST EWB-01. 2. If supply is made by air, ship or railways, then the information in Part A of FORM GST EWB-01 has to be filled in by the consignor or the recipient Cases when eWay bill is Not Required The mode of transport is non-motor vehicle Goods transported from Customs port, airport, air cargo complex or land customs station to Inland Container Depot (ICD) or Container Freight Station (CFS) for clearance by Customs. Goods transported under Customs supervision or under customs seal Goods transported under Customs Bond from ICD to Customs port or from one custom station to another. Transit cargo transported to or from Nepal or Bhutan Movement of goods caused by defence formation under Ministry of defence as a consignor or consignee Empty Cargo containers are being transported Consignor transporting goods to or from between place of business and a weighbridge for weighment at a distance of 20 kms, accompanied by a Delivery challan. Goods being transported by rail where the Consignor of goods is the Central Government, State Governments or a local authority. Goods specifed as exempt from E-Way bill requirements in the respective State/Union territory GST Rules. Transport of certain specified goods- Includes the list of exempt supply of goods, Annexure to Rule 138(14), goods treated as no supply as per Schedule III, Certain schedule to Central tax Rate notifications How to generate eWay Bill on portal E-Way Bill and the e-way bill number can be generated on the e-Way Bill Portal.  SMS e-way bill generation on mobile You

GSTN stands for Goods and Service Tax Network, is a non-profit non-government company. It provides shared IT infrastructure and service to both central and state governments including taxpayers and other stakeholders. The registration Front end services, Returns, and payments to all taxpayers will be provided by GSTN. In a nutshell, it will act as the interface between the government and the taxpayers The Goods and Service Tax Network (or GSTN) is a non-profit, non-government organization. It will manage the entire IT system of the GST portal, which is the mother database for everything GST. The government will use this portal to track every financial transaction and provide taxpayers with all services – from registration to filing taxes and maintaining all tax details. Structure of GSTN The GST System Project is one of a kind and complex IT initiative. What makes it unique is the way it seeks, for the first time to establish a uniform interface for the taxpayer and a common and shared IT infrastructure between the Centre and States. Talking about the structure of it, private players have a 51% share in the GSTN, and the remaining is owned by the government. The authorized capital of the GSTN is Rs. 10 crores (US$1.6 million), out of which the percentage divided equally between the Central and State governments is 49%, and the remaining is with private banks. Furthermore, the GSTN has also been approved for a non-recurring grant of Rs. 315 crores. This vast and complex technological backend development was taken by Infosys in September 2015. The GSTN is headed by Dr. Ajay Bhushan Pandey (Chairman), an Indian Administrative Service servant (1984 batch IAS), along with the CEO of GSTN, Shri Prakash Kumar. Salient Features of the GSTN Trusted National Information Utility The GSTN is a trusted National Information Utility (NIU) providing a reliable, efficient and robust IT backbone for the smooth functioning of GST in India. Handles complex transactions GST is a destination-based tax. The adjustment of IGST (for inter-state trade) at the government level (Centre & various states) will be extremely complex, considering the sheer volume of transactions all over India. A rapid settlement mechanism amongst the States and the Centre will be possible only when there is a strong IT infrastructure and service backbone which captures, processes and exchanges information.  All information will be secure The government will have strategic control over the GSTN, as it is necessary to keep the information of all taxpayers confidential and secure. The Central Government will have control over the composition of the Board, mechanisms of special resolution and shareholders agreement, and agreements between the GSTN and other state governments. Also, the shareholding pattern is such that the government shareholding of 49% is far more than that of any single private institution. Expenses will be shared The user charges will be paid entirely by the Central Government and the State Governments in equal proportion (i.e. 50:50) on behalf of all users. The state share will be then apportioned to individual states in proportion to the number of taxpayers in the state. Volume of expenses Type of expenses Maximum expenses IT system designed by Infosys 2nd part Fraud Analytics Tools, security audit and other security functions(will be outsourced based on tender) 3rd part Operating expenses such as salary, rent, office expenses, internal IT facilities Functions of GSTN Registration As mentioned earlier, the GST network is an online portal that forms the interface between the taxpayer looking to register GST under the new taxation laws and the government. GSTN issues the GST Identification Number to the respective taxpayer and files the information with the respective Tax authorities once the registration has been verified.  Invoice Matching Delving deeper, the Goods and Services Tax Network basically tallies the purchase invoices with the sale invoices to check for mismatches and fixes them so that the taxpayers can avail of the benefits of Input Tax Credit.  Return Filing The services of GSTN includes processing and forwarding the returns to both the central and state tax authorities. The best and the unique thing about GSTN is, there is a unified common return filing for all types of GST i.e. SGST (State GST), CGST (Central GST), IGST (Integrated GST). This, in turn, has eliminated the need for filing multiple returns. Taxpayer Profile Analysis When a taxpayer wants to register for GST, all the particular details of the taxpayer are verified, and then it is put forth to the Central as well as the state government tax authorities for approval. Latest News – GST System is Integrated with Bank Validation As per the latest news, the GST Network advisory stated on April 24, 2023, the bank account validation will be required to be synced with the GST System. It would help to ensure the accuracy of the bank details of GST taxpayers. According to the advisory, a taxpayer is supposed to check the status of the bank account verification on the official portal. Some Additional Duties of GSTN Further to managing the basic tax filing and tax returns, there are a few more responsibilities of GSTN that come along with managing taxation, these are as follows- Calculation and settlement of IGST (Integrated GST) Integrating Banking Network (Agency banks) with tax payment details Managing Computation Engine of Input Tax Credit Submitting the MIS reports to the Government FAQs What does GSTN mean in PAN? GSTIN is the unique identifying number assigned to a dealer or supplier under the GST regime. GSTIN is written in the following format: GSTIN’s first two digits will be the state code. The next ten numbers reflect the corporate entity’s PAN (Permanent Account Number). Where can I find my GSTN number? Step 1: Navigate to the GST portal. Step 2: Navigate to the “Search Taxpayer” tab. Step 3: Choose the “Search by PAN” option. Step 4: To utilize the GST number search tool, input the dealer’s PAN number and the captcha code that appears on the screen.

Consumers can verify the legitimacy of a business simply by using the GSTIN search by PAN tool. They can also use the GSTIN by PAN to locate the state in which your vendor’s business is active. Dealers can avoid any potential errors by verifying the GST number via the PAN. What is GSTIN? GST numbers, or GSTIN (Goods and Services Tax Identification Number), play a crucial role in the Indian taxation system. This unique 15-digit code is given to every business registered under the GST regime. It helps in identifying businesses for tax purposes and ensures that they are compliant with the tax laws in India. The GSTIN is vital for any business as it needs to be mentioned in invoices, bills, and every tax-related document. This system makes the process of tax collection and regulation smoother and more transparent for both the government and the businesses. The GSTIN assigned to a registered entity adheres to a defined structure. For instance, In the GST Number [29ABCDE1234F6G7], “29” represents the State code, “ABCDE1234F” denotes the PAN Number, and “6”, “G”, and “7” correspond to the registration number, default “G” digit, and Check code, respectively. GST Identification Number Format Before you do a GST number check, check out if the 15-digit GSTIN alphanumerical code is in the format below. If a GSTIN is not in this format, then it is not a valid GST number First 2 number: The state code of the registered person or business entity Next 10 characters: PAN of the registered proprietor Next number: Number of registrations in a state for the same PAN Next character: Alphabet Z by default Last number: Check code which may be alpha or digit, used for detection of errors The Need for GST Number Search There are several reasons why businesses and individuals may find themselves needing to search for GST numbers by name. One of the main reasons is business verification. Before engaging in any business transactions, it’s essential to verify that the company you are dealing with is registered and compliant with tax laws. This is where a GST number search becomes handy. Another reason is tax compliance. For filing returns or claiming input tax credits, businesses need to ensure that their suppliers are GST compliant. By searching for a GST number, businesses can confirm the authenticity and compliance status of their suppliers, making the whole process of tax filing smoother and ensuring that they are on the right side of tax laws. Why is it necessary to verify the GST number? Authenticity: Verify the authenticity of the business or taxpayer under GST Validity: Check GSTIN number validity in real time, along with up-to-date details of the business Invoice Verification: Avoid generating incorrect invoices or e-invoices or verify GSTIN on a hand-written invoice Tax Credit: Claim input tax credit and pass tax credits to the right buyers Transparency: Business information transparency which eases filing of correct GST returns Fraud Detection: Avoid a GST number fraud at the origin of the transaction Errors: Check for errors in the GSTIN, if any   Benefits of Using a GST Number Search Tool Common Challenges and Solutions When businesses and tax professionals use a GST number search tool, they enjoy many benefits. This tool makes it easier to find accurate GST numbers, saving a lot of time and reducing errors. For tax professionals, this means they can offer better services to their clients by quickly verifying the GST details, which is crucial for filing taxes correctly. Plus, having access to a reliable GST tool means less time spent on manual searches, allowing businesses to focus more on their core activities. However, using a GST number search tool can sometimes present challenges. One common issue is not finding the correct GST number when searching by name. This could be due to spelling errors or incomplete business information. Another challenge might be outdated information that leads to confusion. What are some troubleshooting tips for these challenges? First, always double-check the spelling and details you’re entering into the search tool. If the first search doesn’t work, try variations of the business name. It’s also a good idea to update your search criteria if you know any additional details about the business, like its location. For outdated information, try using a different GST search tool or check the official GST portal for the most current data. These simple steps can help overcome most search challenges, making the GST number search process smoother for everyone involved. FAQs How can I search for a GST number using a business name? To search for a GST number using a business name, you can use the official GST portal or other GST number search tools available online. You just need to enter the business name as registered under GST, and the tool will provide you with the GSTIN. This method is handy for verifying the authenticity of a business or for invoice-related purposes. What is a GST number, and why is it important? A GST number, also known as a Goods and Services Tax Identification Number (GSTIN), is a unique 15-digit code given to businesses in India. It’s crucial because it helps in identifying businesses registered under GST, making tax filing and compliance easier. This number is vital for any business since it allows for the legal selling of goods and services across India. It also enables businesses to avail benefits like input tax credit.