Press Note
CBIC
31.12.2019
73% taxpayers availed Sabka Vishwas, commit Rs 30627 Cr, date extended upto 15 Jan
New Delhi: Sabka Vishwas (Legacy Dispute Resolution) Scheme has received a huge response with almost 73% of the total eligible taxpayers availed the Scheme and have committed to pay tax dues of Rs. 30,627 Crores. Keeping in view the response of the taxpayers to the Scheme, the Central Government today extended it for a period of fifteen days, till 15th January, 2020. This is one-time and final extension in view of taxpayers’ response.
CBIC said today that out of the total 1.84 lakh taxpayers who are eligible to avail the Scheme, as many as 1,33,661 taxpayers have so far submitted their applications by the morning of 31.12.2019. Their applications involve tax dues of Rs. 69,550 Crores and after availing various reliefs, the payable amount is Rs. 30,627 Crores. Sabka Vishwas is received by the taxpayers as the most beneficial dispute resolution scheme ever announced by the Government.
CBIC said that there has been a spurt in the number of taxpayers opting for the Scheme during the last fortnight. The Government has noted the huge interest amongst the taxpayers for this Scheme and would like to ensure that eligible taxpayers who have yet not applied to avail amnesty or relief under this Scheme do not miss out due to the last-minute rush. Therefore, the Government has extended the SVLDRS as a one-time measure for a fortnight up to 15.01.2020. There will be no further extension to this Scheme, CBIC reiterated.
The SVLDRS was introduced in last Budget with the twin objectives of liquidating the legacy disputes in Central Excise and Service Tax that are pending at various fora as well as encouraging non-compliant tax payer/tax evaders to declare the tax not paid so far and come under the tax net voluntarily.
CBIC
31.12.2019
73% taxpayers availed Sabka Vishwas, commit Rs 30627 Cr, date extended upto 15 Jan
New Delhi: Sabka Vishwas (Legacy Dispute Resolution) Scheme has received a huge response with almost 73% of the total eligible taxpayers availed the Scheme and have committed to pay tax dues of Rs. 30,627 Crores. Keeping in view the response of the taxpayers to the Scheme, the Central Government today extended it for a period of fifteen days, till 15th January, 2020. This is one-time and final extension in view of taxpayers’ response.
CBIC said today that out of the total 1.84 lakh taxpayers who are eligible to avail the Scheme, as many as 1,33,661 taxpayers have so far submitted their applications by the morning of 31.12.2019. Their applications involve tax dues of Rs. 69,550 Crores and after availing various reliefs, the payable amount is Rs. 30,627 Crores. Sabka Vishwas is received by the taxpayers as the most beneficial dispute resolution scheme ever announced by the Government.
CBIC said that there has been a spurt in the number of taxpayers opting for the Scheme during the last fortnight. The Government has noted the huge interest amongst the taxpayers for this Scheme and would like to ensure that eligible taxpayers who have yet not applied to avail amnesty or relief under this Scheme do not miss out due to the last-minute rush. Therefore, the Government has extended the SVLDRS as a one-time measure for a fortnight up to 15.01.2020. There will be no further extension to this Scheme, CBIC reiterated.
The SVLDRS was introduced in last Budget with the twin objectives of liquidating the legacy disputes in Central Excise and Service Tax that are pending at various fora as well as encouraging non-compliant tax payer/tax evaders to declare the tax not paid so far and come under the tax net voluntarily.
GST was launched and termed as biggest tax reform after indepdendence. Being a new law and new platform of compliance, some teething troubles were expected initially.
However now nearly three years will be complete still the #GSTN portal is throwing glitches without any solution, it is not updated to cater to increasing number of taxpayers and runs on a very slow/ Zero speed during the peak days of compliance due dates because of which still after 2.5 years the compliance rate is less than 60 % on due dates and less than 80 % overall.
The customer care team and self service portal are having standard replies to tweets as well as grievances which hampered the taxpayers and tax professional very dearly by wastage of time, energy and peace of mind.
This mayhem has costed the taxpayers very dearly and as per a RTI reply to me, the govt has collected nearly Rs 8000 Crores as LATE FEES towards GST 3 B filing. To update stakeholders about the problems created because of faulty and under capacity GSTN and non responsiveness of governemnt, starting this post which will be updated continuosly for the glitches on GSTN.
There are hundreds of tweets about the glitches and problems, fhe hashgtag #GSTNFAILED and #GSTR3B were top trends in India on 20th Janaury 2020, however only few tweets are reproduced below for the sake of information.
However now nearly three years will be complete still the #GSTN portal is throwing glitches without any solution, it is not updated to cater to increasing number of taxpayers and runs on a very slow/ Zero speed during the peak days of compliance due dates because of which still after 2.5 years the compliance rate is less than 60 % on due dates and less than 80 % overall.
The customer care team and self service portal are having standard replies to tweets as well as grievances which hampered the taxpayers and tax professional very dearly by wastage of time, energy and peace of mind.
This mayhem has costed the taxpayers very dearly and as per a RTI reply to me, the govt has collected nearly Rs 8000 Crores as LATE FEES towards GST 3 B filing. To update stakeholders about the problems created because of faulty and under capacity GSTN and non responsiveness of governemnt, starting this post which will be updated continuosly for the glitches on GSTN.
There are hundreds of tweets about the glitches and problems, fhe hashgtag #GSTNFAILED and #GSTR3B were top trends in India on 20th Janaury 2020, however only few tweets are reproduced below for the sake of information.
Starting this thread for the benefit of GST stakeholders
#GSTNFailed
*COMPILATION OF GSTN GLITCHES*
https://t.co/k6r6swu59c
#GSTNFailed
*COMPILATION OF GSTN GLITCHES*
https://t.co/k6r6swu59c
Tax Updates by CA Atul Modani
COMPILATION OF GSTN GLITCHES
COMPILATION OF GSTN GLITCHES GST was launched and termed as biggest tax reform after indepdendence. Being a new law and new platform of compliance, some teething troubles were expected initially. H…
Agitation against Technical glitches of GSTN portal which has costed the taxpayers and tax professionals very dearly in last 2.5 years by Tax practitioners association, Tirupati and Chittoor District
#GSTNFailed
@nsitharaman @cbic_india @PMOIndia @Anurag_Office @sureshpprabhu https://t.co/6Bq0kon8by
#GSTNFailed
@nsitharaman @cbic_india @PMOIndia @Anurag_Office @sureshpprabhu https://t.co/6Bq0kon8by
*4 days to go, only 24% taxpayers filed GSTR 9 C and 46% filed GSTR 9 for FY 2017-18*
#GST
https://t.co/FrUqanTq2R
#GST
https://t.co/FrUqanTq2R
Tax Updates by CA Atul Modani
4 days to go, only 24% taxpayers filed GSTR 9 C and 46% filed GSTR 9 for FY 2017-18
4 days to go, only 24% taxpayers filed GSTR 9 C and 46% filed GSTR 9 for FY 2017-18 GSTN today have tweeted the statistics for the number of taxpayers who have filed the Annual Return and Reconcili…
GSTN starts levying late fees on GSTR 9 for FY 17-18 even though due date is extended
https://t.co/HTQmr7cmJD
https://t.co/HTQmr7cmJD
Tax Updates by CA Atul Modani
GSTN starts levying late fees on GSTR 9 for FY 17-18 even though due date is extended
GSTN starts levying late fees on GSTR 9 for FY 17-18 even though due date is extended GSTN has started levying late fees on Form GSTR9 for FY 2017-18 of Rs 200/- per day since today morning eventho…
*Increase in Tax Audit Limit will not have much impact:*
1) Theincrease in Tax Audit threshold to Rs 5 Crores from Rs 1 Crores u/s 44 AB will not have much of impact as the GST audit limit is Still Rs. 2 Crores.
2) There is no amendment in Section 44 AD that means those assessees who have declared Turnover less than Rs 2 Crores can declare 6 / 8 % profit or else declare less profit by doing audit. Continuing the provision, thus no impact on tax audits.
3) There is no amendment in Section 44 ADA that means those Professionals who have annual gross receipts under Rs 50 lakhs can declare 50 % as profit or else declare less profit by doing audit. Continuing the provision, no impact on tax audits
4) GST registered assessees falling in 2 Crores to 5 Crores Turnover bracket will still need to carry the audit of books of account as the limit of GST Audit as on date is only 2 Crores becuase the GST auditor can not give his opinion as to true and fair view on part B "certification " of GSTR9 C on the basis of unaudited books of account. Further as per instructions from CBIC to GSTR 9C, in Table 5 A The turnover as per the "audited Annual Financial Statement shall be declared".
Thus as per my view ONLY the assesses who r not registered under GST and whose turnover is in between 2 to 5 Crores as per Section 44 AB will not require to do the audit of books of account under Income Tax as proposed in Budget 2020.
1) Theincrease in Tax Audit threshold to Rs 5 Crores from Rs 1 Crores u/s 44 AB will not have much of impact as the GST audit limit is Still Rs. 2 Crores.
2) There is no amendment in Section 44 AD that means those assessees who have declared Turnover less than Rs 2 Crores can declare 6 / 8 % profit or else declare less profit by doing audit. Continuing the provision, thus no impact on tax audits.
3) There is no amendment in Section 44 ADA that means those Professionals who have annual gross receipts under Rs 50 lakhs can declare 50 % as profit or else declare less profit by doing audit. Continuing the provision, no impact on tax audits
4) GST registered assessees falling in 2 Crores to 5 Crores Turnover bracket will still need to carry the audit of books of account as the limit of GST Audit as on date is only 2 Crores becuase the GST auditor can not give his opinion as to true and fair view on part B "certification " of GSTR9 C on the basis of unaudited books of account. Further as per instructions from CBIC to GSTR 9C, in Table 5 A The turnover as per the "audited Annual Financial Statement shall be declared".
Thus as per my view ONLY the assesses who r not registered under GST and whose turnover is in between 2 to 5 Crores as per Section 44 AB will not require to do the audit of books of account under Income Tax as proposed in Budget 2020.
*From the FB wall of CA Madhukar Hiregange*
Draft Reply - Rule 36(4) CGST Rules.
Date: 09.02.2020
To
The Assistant/ Deputy Commissioner (State Tax),
ABC Circle,
1st Floor,
XYZ Block,
Domlur,
Bangalore -530 003
Dear Sir,
Sub: Reply to the advisory e-mail received for reversal of ITC in excess of the credit admissible under rule 36(4) - Reg.
Ref: 1. E-mail dated 24.01.2020 with no reference number.
2. GST Registration No. 89abcdg….
1. We M/s. HA Ltd. having GSTN referred above are engaged in the business of processing and job work in auto industry.
2. We have received an e-mail communication from “My GST <no-reply@sampark.gov.in>” stating that we have availed excess ITC of Rs. 19,16,0,629/- which is more than credit admissible under Rule 36(4) of the CGST Rules, 2017 for the month of November 2019.
3. One of our consultants is exclusively allocated for this purpose for doing this reconciliation of ITC between books of accounts & GSTR-2A in GSTN Portal. His job is to follow up with vendors for continuous filing of GSTR-1 Returns. We are behind our vendors for filing the GSTR-1 returns from their end. However, we cannot write up their accounts and comply for them. This is an additional cost of doing business under GST.
4. As per your e-mail, there is an excess credit availed. However, we are not having the detailed bifurcation for this amount. In spite of this we have also made a special effort ( with special cost) and attempted to reconcile the differences between input tax credit as per books and GSTR-2A but could not arrive at the above figure.
5. We need the detailed breakup or bifurcation for the above differential amount to explain the differences, in the absence of which it could be difficult for us to verify and provide reply to your e-mail.
6. As per Section 37 of the CGST Act, 2017 a registered supplier can upload/ modify the invoices relating to a particular financial year till the due date of filing the return of September of the subsequent financial year or furnishing of annual return whichever is earlier.
7. Therefore, the suppliers are having ample time to file their GSTR-1s for the financial year 2019-20. We are constantly making our honest efforts, we are behind our vendors & demanding them for filing the GSTR-1.
8. The Rule 36(4) of CGST, Rules 2017 per se does not provide for a specific date on which the status of eligible ITC uploaded by the suppliers in GSTR-1 are to be seen to derive the permissible ITC. It only provides that the availment of ITC would be conditional upon the reflection of the concerned transactions in due course with 20% tolerance.
9. Hence if the concerned transactions on which ITC has been availed are eventually reflected by the last date for reporting or correcting any transactions in GSTR-1(i.e. 20th October of the subsequent financial year), ITC cannot be restricted. So by the time of filing GSTR-9 & GSTR-9C we can try to ensure that all our vendors file their GSTR-1 so that all entries could be there in GSTR-2A.
10. We wish to bring your attention to Delhi High Court judgment in the case of Arise India Limited and Ors. v. Commissioner of Trade and Taxes (MANU/DE/3361/2017) in the context of restrictions on availment of VAT credit on failure of the seller to pay the tax held that the said restrictions violate Article 14 of the Constitution of India which grants equality before the law. Moreover, Departmental Special Leave Petition No. 36750/2017 against the above order was also dismissed by the Hon’ble Supreme court upholding the order of Delhi High Court.
11. We wish to bring to your notice the circular No.128/27/2019 dated 23.12.2019 which states that every communication including e-mails from the CBIC should have a Document Identification Number (DIN), in the absence of which it would be considered as invalid communication/notice. Thereby since there is no DIN assigned to this E-Mail communication, it can be considered as invalid and not requiring us to respond. This is what we understood in the TV shows where Honourable FM has clarified. Kin
Draft Reply - Rule 36(4) CGST Rules.
Date: 09.02.2020
To
The Assistant/ Deputy Commissioner (State Tax),
ABC Circle,
1st Floor,
XYZ Block,
Domlur,
Bangalore -530 003
Dear Sir,
Sub: Reply to the advisory e-mail received for reversal of ITC in excess of the credit admissible under rule 36(4) - Reg.
Ref: 1. E-mail dated 24.01.2020 with no reference number.
2. GST Registration No. 89abcdg….
1. We M/s. HA Ltd. having GSTN referred above are engaged in the business of processing and job work in auto industry.
2. We have received an e-mail communication from “My GST <no-reply@sampark.gov.in>” stating that we have availed excess ITC of Rs. 19,16,0,629/- which is more than credit admissible under Rule 36(4) of the CGST Rules, 2017 for the month of November 2019.
3. One of our consultants is exclusively allocated for this purpose for doing this reconciliation of ITC between books of accounts & GSTR-2A in GSTN Portal. His job is to follow up with vendors for continuous filing of GSTR-1 Returns. We are behind our vendors for filing the GSTR-1 returns from their end. However, we cannot write up their accounts and comply for them. This is an additional cost of doing business under GST.
4. As per your e-mail, there is an excess credit availed. However, we are not having the detailed bifurcation for this amount. In spite of this we have also made a special effort ( with special cost) and attempted to reconcile the differences between input tax credit as per books and GSTR-2A but could not arrive at the above figure.
5. We need the detailed breakup or bifurcation for the above differential amount to explain the differences, in the absence of which it could be difficult for us to verify and provide reply to your e-mail.
6. As per Section 37 of the CGST Act, 2017 a registered supplier can upload/ modify the invoices relating to a particular financial year till the due date of filing the return of September of the subsequent financial year or furnishing of annual return whichever is earlier.
7. Therefore, the suppliers are having ample time to file their GSTR-1s for the financial year 2019-20. We are constantly making our honest efforts, we are behind our vendors & demanding them for filing the GSTR-1.
8. The Rule 36(4) of CGST, Rules 2017 per se does not provide for a specific date on which the status of eligible ITC uploaded by the suppliers in GSTR-1 are to be seen to derive the permissible ITC. It only provides that the availment of ITC would be conditional upon the reflection of the concerned transactions in due course with 20% tolerance.
9. Hence if the concerned transactions on which ITC has been availed are eventually reflected by the last date for reporting or correcting any transactions in GSTR-1(i.e. 20th October of the subsequent financial year), ITC cannot be restricted. So by the time of filing GSTR-9 & GSTR-9C we can try to ensure that all our vendors file their GSTR-1 so that all entries could be there in GSTR-2A.
10. We wish to bring your attention to Delhi High Court judgment in the case of Arise India Limited and Ors. v. Commissioner of Trade and Taxes (MANU/DE/3361/2017) in the context of restrictions on availment of VAT credit on failure of the seller to pay the tax held that the said restrictions violate Article 14 of the Constitution of India which grants equality before the law. Moreover, Departmental Special Leave Petition No. 36750/2017 against the above order was also dismissed by the Hon’ble Supreme court upholding the order of Delhi High Court.
11. We wish to bring to your notice the circular No.128/27/2019 dated 23.12.2019 which states that every communication including e-mails from the CBIC should have a Document Identification Number (DIN), in the absence of which it would be considered as invalid communication/notice. Thereby since there is no DIN assigned to this E-Mail communication, it can be considered as invalid and not requiring us to respond. This is what we understood in the TV shows where Honourable FM has clarified. Kin
dly let us know if what we are saying is incorrect. We will stand corrected.
12. Further we wish to communicate that many of our vendors are filing the quarterly GSTR-1. To that extent transactions will be reflected in GSTR-2A after end of quarter, so entries in GSTR-2A with credit in GSTR-3B will not be tallied.
13. Lastly it maybe impossible to ensure all our vendors comply as then we need to stop all processing activities and allocate resources from production and marketing to get the vendors who number 500+ to comply. It is unfair to ask us to do the impossible.
However, as tax compliant processors , we shall be glad to furnish any reasonable further information/clarification required in this regard within our control.
Kindly consider the above information and either do not initiate any further proceedings till October 2020 or drop further proceedings in this regard.
Kindly acknowledge the receipt of this letter.
Thanking you,
Yours truly,
For M/s. HA Ltd.
Authorized Signatory
Copy To:
The Superintendent of Central Tax,
The Chairman, CBIC ( optional)
The Members, CBIC ( optional)
PM/ FM ( Optional)
12. Further we wish to communicate that many of our vendors are filing the quarterly GSTR-1. To that extent transactions will be reflected in GSTR-2A after end of quarter, so entries in GSTR-2A with credit in GSTR-3B will not be tallied.
13. Lastly it maybe impossible to ensure all our vendors comply as then we need to stop all processing activities and allocate resources from production and marketing to get the vendors who number 500+ to comply. It is unfair to ask us to do the impossible.
However, as tax compliant processors , we shall be glad to furnish any reasonable further information/clarification required in this regard within our control.
Kindly consider the above information and either do not initiate any further proceedings till October 2020 or drop further proceedings in this regard.
Kindly acknowledge the receipt of this letter.
Thanking you,
Yours truly,
For M/s. HA Ltd.
Authorized Signatory
Copy To:
The Superintendent of Central Tax,
The Chairman, CBIC ( optional)
The Members, CBIC ( optional)
PM/ FM ( Optional)