New Compliances under GST
Shambhavi Sharma / 2021-04-09 04:33:49
Along with the online filing of GST returns, the GST regime has implemented a number of new schemes.
E-way Bills under GST-
By introducing "E-way bills," the GST created a centralised system of waybills. This framework was introduced on April 1, 2018 for inter-state goods movement and on April 15, 2018 for phased intra-state goods movement.
Manufacturers, traders, and transporters can easily produce e-way bills for goods transported from their point of origin to their point of destination using the e-way bill system. Tax authorities benefit as well, as this method reduces time spent at checkpoints and aids in the reduction of tax evasion.
E-Invoicing under GST-
For companies with an annual gross turnover of more than Rs.500 crore in any previous financial year, the e-invoicing system became effective on October 1, 2020. (from 2017-18). This scheme was also applied to those with an annual gross turnover of more than Rs.100 crore as of January 1, 2021.
Per business-to-business invoice must be assigned a unique invoice reference number by uploading it to the GSTN's invoice registration portal. The portal verifies the invoice for accuracy and authenticity. It then authorises the use of a digital signature and a QR code.
E-Invoicing enables invoice interoperability and reduces data entry errors. Its aim is to send invoice information directly from the IRP to the GST registration and e-way bill portals. As a result, it will remove the need for manual data entry while filing GSTR-1 and will also aid in the generation of e-way bills.
QR coding under GST-
QR coding: From April 1, 2021, all companies with a turnover of more than INR 5 billion must print QR codes on B2C supply invoices, or face a tax. Until June 30, 2021, the government has waived the penalty for non-implementation.
Changes in Input Tax Credit
Reversal of the ITC: The second proviso to Section 16(2) of the CGST Act states that if a recipient/purchaser of products fails to pay consideration to the supplier within 180 days, a sum equal to the recipient's input tax credit, plus interest, will be added to their production tax liability.
Blocked credit: If a company decides to write off any inventory due to missing, damaged, or destroyed items, the ITC attributable to such inventories will be reversed as well. If the ITC is claimed incorrectly, the blocked credit must be found and reversed, with a 24 percent interest rate.
Job work: Ensure that inputs sent out for job work operation are returned within one year of being sent out, and within three years of being sent out in the case of capital goods sent out for job work. If the form is not returned, it will be considered as a supply for GST purposes, necessitating a 24 percent interest fee. Invoice information for job work transactions must be filed using Form GST ITC-04.
Expense provisioning: In the case of expense provisioning for import / domestic services with related bodies, there are GST ramifications under the reverse charge mechanism. If such a provision is made, RCM tax must be paid in accordance with it.
Check for income that is GST-free or partially GST-free: In the event that payment is not made or is not made in a timely manner, take corrective action.
Letter of Undertaking: To ensure a smooth supply of exports, the Letter of Undertaking must be in effect for the relevant financial year before April 1.