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GSTR-9A – Everything that you should know about before availing the Composition Scheme

The GSTR-9A is a simplified annual return for the business owners who are looking to avail the Composition Scheme under the GST regime. The return would consist of all the quarterly returns filed by the compounding dealers/vendors in that financial year. Simply, the form consists of all the information provided in the quarterly returns by the composition taxpayers during that financial year. You would need to file the GSTR-9A form annually by 31st December following the financial year which is being reported. For instance, an Individual who is filing the GSTR-9A for 2018 must file it before 31st December, 2019.

Who needs to file GSTR-9A?

The GST rules require anyone who is being registered under composition levy scheme would need to file GSTR-9A. However, the requirement does come with certain exceptions and those are as follows:

  • Non-resident taxable persons
  • E-commerce operator paying TCS under section 52 of the Act
  • Casual Taxable Person
  • Persons paying TDS under section 51 of the Act
  • Input service distributor

Prerequisites

In order to be eligible to file the GSTR 9A form, one should full fill some prerequisites. These prerequisites are:

  • If you are looking to apply for the Composition Scheme under GST, it is required that you should be registered as a business owner and a composition vendor under GST.
  • The aggregate turnover of the business should be less than Rs 75 lakh per annum. For the North Easter States, the aggregate business turnover should be less than the Rs 50 lakh per annum.
  • As an Individual who is registered under GST, you can have the record of all the transactions made during each year of the financial year.

Penalty for late filing of GSTR 9-A

Under CGST, you would be required to pay Rs 100 per day of default and under SGST/UGST also there would be fine of Rs 100 per day of default. So in total you would need to pay Rs 200 per day of default.

What details one should provide?

GSTIN – This would include the PAN based 15 digit Goods and Services Taxpayer Identification Number

Name of the Taxpayer – Here the name of the registered taxpayer should come

Period of Return – Taxpayer should mention the period for which he is filing the return

Turnover Details – Turnover details should be mentioned as following:

a. Gross Turnover (GSTIN)

b. Gross Turnover (Entity)

Details of Expenditure – In here, you would need to provide a comprehensive detail of the purchases made during the financial year in addition to the HSN and the SAC codes of the goods and services involved.

Details of Income – You would be required to provide the details of income from any source other than the supplies.

Return Reconciliation Statement – After providing the details on the sales and purchase transactions, the GSTN portal would reconcile the transactions automatically and tax would be displayed under the different tax categories in addition to the interests, penalties or liabilities.

Other Amounts – Whatever payments have to be made excluding the tax liabilities such as arrears, Refunds and so on.

Profit as per the Profit and Loss Statement – All the details on gross profit, profit after tax and net profit for the tax period.

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Here is How You Can identify Between Real And A Spam IT Notice

Individual tax payers often receive tax notices through E-mail relating to outstanding tax payment and it becomes difficult for them to segregate between the real and spam. This spam IT Notice looks like legitimate letters from the Income Tax department. Cyber criminals are finding alternative ways to steal client data from tax professionals that may be used to file fraudulent tax returns or other things that we cannot imagine.
Earlier, fraudsters used to send an E-mail that contains signs and symbols allowing easy recognition of a fake notice. But now they have refined it by sending the mail through official looking email IDs and contents that look very similar to the original communication from the tax authorities. It looks real to the extent that it is almost impossible to differentiate between a genuine notice and a fake one. Hence, it is important for everyone to stay updated on how to protect themselves from such spam tax notices.


How to identify it is a fake tax notice?
 A spam tax notice may contain words that relate to threatening or crime while a genuine notice from the IT department never contains such words.
 A real tax notice will never demand payment without giving an opportunity to question or appeal the amount they mention a taxpayer owes.
 A real tax notice will never ask for credit or debit card number and any other personal or financial information over the phone, texts, email or social media.
 A fake notice may demand immediate payment and require a taxpayer to use only a specific payment method like a gift card or wire transfer.
 The spam IT Notice greets you as Dear Taxpayer without mentioning your name, while the Income Tax Department refers the taxpayer by their full name.
 The IT department never uses words like Notice of Outstanding Income Tax Demand to be paid in the email but the Spam IT Notice would.
 The fake notice may contain an attachment or file that may install some malware on a person’s system.
 A real tax notice is digitally signed and shares a link to know the process of validation of digital signatures. However, the fake notice contains a link that is not from the IT department website.
 The same spam tax notice may sometimes be sent to several persons while the real notice is never sent to many persons at a time as it contains the PAN number of the taxpayer.


What to do if you receive spam IT notice
If you receive any spam IT notice , you should keep these little yet important things in your mind to protect your information and money.
 Never make hasty decisions and do not reply to the suspicious message or mail directly.
 Never provide your personal information via phone, email or text message.
 Never send money just by seeing the mention of word ‘Urgent’.
 Do not click on any link in the email or download any attachment as they may contain malware.
 Install an anti-virus software on your device.
 If you receive an E-mail that pretends to be of income tax department, forward the E-mail to the official mail id of IT department and contact them directly via the numbers or addresses listed on their website.

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Consequences if an individual missed the belated ITR filing return date

Income Tax related rules are put in place to ensure that everyone fills their obligation in time. It acts as a kind of deterrent for all the taxpayers so that they do not delay. Income tax rules have undergone few changes over the last few years and therefore it become important for an individual to go through all those new rules including belated ITR

belated ITR

belated ITR

in order to avoid any form of penalty.

Only recently, government came up with a big change when it squeezed the timeline to file the return for financial year 2016-17 till March 31st 2018 which was previously allows till 31st March 2019 according to the previous rules. This was primarily done in order to stop tax evasion.

Under the new rule, last date to file the tax for financial year 2015-16 and financial year 2016-17 was March 31st 2018. In case an individual could not comply with the final deadline, there are very few options. However, you should be relived that there are few options ahead.

What is belated return?

If an individual is filing the income tax return after the due date, it is called filing belated return. As per the previous law, a belated return can be filed anytime before the assessment year ends. However, in case the taxpayer could not even respect the belated return date, there are few options left.

Alternatives you have

The Income tax department allows an individual to file the return even after the deadline of 31st March 2018. However, it is required that an individual should offer the sincere reason behind the delay if the authorities must grant permission to file the return. In order to convince the taxpayer, one should file an application of consonance up to six years from the from the FY 2015-16 to the last date that would be 31st March 2023. In case you did not pay the taxes for the relevant year, under U/s 234A, u/s234B and u/s 234C, the tax amount should be paid.

In case, you have paid the tax but could not file the ITR, it is not possible to apply for the condonation of delay. Additionally, the Income tax department might send the notice of penalty, maximum Rs 5000. If the individual is able to furnish the valid reason and income tax payer agrees that is a genuine reason, the penalty can be waived off.

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Voluntary payment option is now available on GST portal

Individuals can now find the Form GST DRC-03 on the GST Portal for making voluntary payments for the taxpayer. Through the form, a taxpayer can make the voluntary payments before getting the show cause notice under section 73 or 74 of the CGST Act, 2017. The Voluntary payment can also be made within the 30 days of the issue of show cause notice. Both the facilities are not available on the GST Portal.

Pre-requisites for making voluntary payment

There are certain conditions mentioned for the taxpayers who want to make the voluntary payment. These are:

  • If the payment has to be made before the issue of SCN then the show cause notice under determination of the tax should not be issued.
  • If the payment has been made after the issue of SCN or statement, then the voluntary payment should be made within the 30 days.

Partial Payment

For now, GST Portal does not offer any service regarding the partial payments in the respect of the liability that has been declared voluntarily. The payment should be made in line with the amount demanded or already demanded in Show cause notice.

How to Apply?

Step 1

Login to the GST portal and go to Services -> User Services -> My Applications

Voluntary Payment Home page

Voluntary Payment Home page

Step 2 – In the application part, select “Intimation of Voluntary payment -DRC 03” from the drop down and click the tab “new Application”

Voluntary Payment Application

Voluntary Payment Application

Step 3- From the page select “Cause of payment” from the options available as follows:

  • Voluntary
  • SCN
  • Others

If you select “Voluntary” -> Appropriate section and financial year

Voluntary Payment Option

Voluntary Payments Option

If you select “SCN” -> select appropriate section and financial year; provide SCN reference No. and date (either system generated or manual)

Voluntary Payment SCN

Voluntary Payments SCN

If you select Others -> fill in the appropriate section and financial year

Voluntary Page others

Voluntary Payments others

Step 4 – Once the details have been filled, select the period from the bottom of the screen along with Act and then proceed to pay

Voluntary Payment Final

Voluntary Payment Final

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GST notice from the authorities – How to respond?

A registered dealer needs to file the GST return in time but sometimes he could receive the notice even after filing the returns. The authorities can send the GST notice to the taxpayer for various reasons. Some of these reasons are:

  • Mismatch in filing the return
  • Late filing of GST return
  • Verification of Pre-GST claims

A typical  GST notice from the authorities to the tax payers would look like this:-

To:

REG_NAME:  —–   

GSTIN:  —–

TRADE_NAME: —–

Address :  —-

Contact No: —-

Tax period : Oct-17 to Dec-17

Notice for intimating discrepancies in the return after scrutiny

This is to inform that during scrutiny of the return for the tax period referred to above, the following discrepancies have been noticed:

SGSTCGSTIGSTCESSTOTAL
ITC Claimed in GSTR3B in Rupee39195239195210709400891000
ITC Available from GST  R2A in Rupee3213803213801175170760278
Excess ITC claimed130721

You are hereby directed to explain the reasons for the aforesaid discrepancies 30 Days from the date of Notice. If no explanation is received by the aforesaid date, it will be presumed that you have nothing to say in the matter and proceedings in accordance with law may be initiated against you without making any further reference to you in this regard.

Regards,

—–

How to respond to GST notice?

Rule 99(2) states that the reply in response to the notice should be furnished in FORM GST ASMT -11.

GST ASMT-11

 GST notice FORM GST ASMT -11

GST notice FORM GST ASMT -11

Time Limit to furnish respond to GST notice

After getting the notice the taxpayer should furnish the information within  30 days after which the officer can initiate the actions such as audit by tax authorities, special audit, inspection, search or seizure or or proceed to determine the tax and other dues under section 73 or section 74 (i.e. issuance of SCN and order). The 30 days time limit would start from the date of being communicated rather than from the date of issuance of notice.

Will the taxpayer get any GST notice on reply being accepted?

Yes, according to  Rule 99(3) states that the officer needs to inform the registered person that the reply is acceptable in FORM GST ASMT – 12. The form looks as such:

FORM GST ASMT – 12

GST notice FORM GST ASMT – 12

GST notice FORM GST ASMT – 12

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