GST Terms You Need to Know

1. What is Goods and Services Tax (GST)?

GST is a single uniform indirect tax which was introduced to replace Central and State indirect taxes such as VAT, CENVAT, and others. GST applies on all types of businesses, small or large. This makes it one of the greatest tax reforms in the country. The entire nation will follow a unified tax structure. As the name suggests, GST will be applicable on both goods and services and India will follow a dual system of GST to keep both the Centre and State independent of each other. The GST council will be headed by the Union Finance Minister and it will consist of various State Finance Ministers. GST will be devised as a four-tiered tax structure with tax slabs of 5%, 12%, 18%, and 28% for various different categories of products and services. 0% rate is kept for most essential goods such as rice, wheat.

2. What are the indirect taxes that GST has replace?

Designed as a uniformed tax for the entire nation, it will replace the following indirect taxes earlier levied by the Centre and the State- (i) Taxes levied and collected by the Centre: a. Central Excise duty b. Additional Duties of Customs (commonly known as CVD) c. Special Additional Duty of Customs (SAD) d. Service Tax AND (ii) Taxes levied and collected by the State: a. State VAT b. Central Sales Tax c. Entertainment and Amusement Tax (except when levied by the local bodies) d. Taxes on lotteries, betting and gambling

3. What is the framework that the GST  follows?

Like other countries such as Canada and Brazil, India will follow the dual form of GST. At the intra-state level, where goods and services are sold within the state, CGST (Central Goods and Services Tax) and SGST (State Goods and Services Tax) will be levied. When selling goods and services into other states (inter-state sales), IGST (Integrated Goods and Services Tax) will be levied. Importing goods will come under IGST as it will be considered as inter-state supply. Imported goods will also attract basic customs duty. Exports and supplies to SEZ, however, will be zero-rated.

4. Benefits of GST

As mentioned earlier, GST will unify taxation system in the entire nation. This will help in removal of the cascading tax effect. Cascading effect refers to tax to be paid on a tax. Under GST, this will no longer happen as the unified tax will bring the entire indirect tax system under one umbrella. Another important benefit is that under GST, the input tax credit can be availed on both goods and services, which eliminates the cascading effect. GST will also unify the returns and compliances as there will no separate VAT and service tax. Read our article to know all the benefits of GST.

5. Who are the taxable persons under GST?

Short answer is a person who carries out any business at any place in India and who is registered or required to be registered under the GST Act.  Amongst others, GST registration is mandatory for: a. Any business whose turnover in a financial year exceeds Rs 20 lakhs (Rs 10 lakhs for North Eastern and hill states) b. An input service distributor  c. An E-commerce operator or aggregator d. A person who supplies via e-commerce aggregator Here is a complete list of taxable persons under GST.

6. What is a GSTIN?

GSTIN refers to the unique GST identification number that every business will be allotted. Every taxpayer will be allotted a state-wise, PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). Also, note that having PAN is mandatory for register under GST. Registering under GST is quite simple and is explained in simple steps in our article.

7. What is Reverse Charge?

Usually, when the supplier supplies goods, the tax is levied upon the supplier. In certain cases, the tax is levied upon the buyer of the goods. This is called reverse charge as the chargeability of tax gets reversed. This is not new under GST, as under the previous VAT regime, the reverse charge existed, but only on services. Now, under GST, it will be applicable on goods as well. 

8. What happens to mixed supply and composite supply under GST?

Under GST, this new concept of mixed supply and composite supply has been introduced. This will cover all supplies made together, whether the supplies are not related or not. This concept is some what similar to the bundled services which were there earlier. Only the concept of mixed supply is entirely new. Let us look at these in detail. Composite supply refers to a supply that comprises of 2 or more goods or services which are bundled and supplied together. Out of these, only one item can be of principal supply, however, these items cannot be supplied separately. Here is where the concept of composite supply comes in. For example, when goods are packed, and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply. Insurance, transport cannot be done separately if there are no goods to supply. Thus, the supply of goods is the principal supply. A mixed supply is when 2 or more individual supplies of goods or services are made together with each other by a taxable person, for a single price. Each of these items can be supplied separately and is not dependent on any other. For example, a supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drink and fruit juices, supplied for a single price is a mixed supply. All can be sold separately. Since aerated drinks have the highest GST rate of 28%, aerated drinks will be treated as principal supply. Read our article on mixed and composite supply to understand better.

9. What is continuous supply?

When goods and services are offered or supplied periodically (that is every fortnight or every month, etc.), and payments are also made periodically, it is called a continuous supply. For example, a telecom and internet provider will provide continuous supply as it is provided for a long time and also the payments are done every month or quarterly.

10. What is a compliance rating?

The GST compliance rating is a performance rating that is given to all registered taxpayers. This rating tells you how complaint the supplier will be with respect to GST provisions. This gives an option for the buyer to choose the seller based on the GST compliance rating. The rating system can be devised on a scale of 1 to 10, based on the type of business, with 10 being the highest complaint and 1 being the least complaint.

All about eWay Bill

What is an eWay Bill?

EWay bill is an digital manner bill for movement of goods to be generated at the eWay bill Portal. A GST registered character cannot transport goods in a vehicle whose price exceeds Rs. 50,000 (single invoice/bill/transport challan) with out an e-manner bill that is generated on ewaybillgst.gov.in instead, Eway bill also can be generated or cancelled via SMS, Android App and with the aid of website-to-site integration thru API. when an eway bill is generated, a completely unique Eway Bill Number (EBN) is allotted and is available to the supplier, recipient, and the transporter.

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)# )  –

1. In relation to a ‘supply’
2. For reasons other than a ‘supply’ ( say a return)
3. Due to inward ‘supply’ from an unregistered person
4. For this purpose, a supply may be either of the following:

1. A supply made for a consideration (payment) in the course of business
2. 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:

1. Sale – sale of goods and payment made
2. Transfer – branch transfers for instance
3. 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:

1. Inter-State movement of Goods by the Principal to the Job-worker by Principal/ registered Job-worker,
2. Inter-State Transport of Handicraft goods by a dealer exempted from GST registration

Who need to Generate an eWay Bill?

Registered person – Eway invoice need to be generated while there may be a movement of goods of extra than Rs 50,000 in cost to or from a Registered man or woman. A Registered person or the transporter may also pick to generate and bring eway bill even if the fee of goods is much less than Rs 50,000.

Unregistered Persons – Unregistered persons also are required to generate e-way invoice. however, where a supply is made by way of an unregistered character to a registered person, the receiver will ought to make certain all the compliances are met as though they were the dealer.

Transporter – Transporters carrying goods by road, air, rail, etc. also need to generate e-Way Bill if the supplier has not generated an e-Way Bill.

Cases when eWay bill is Not Required

In the following cases it is not necessary to generate e-Way Bil:

1. The mode of transport is non-motor vehicle
2. 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.
3. Goods transported under Customs supervision or under customs seal
4. Goods transported under Customs Bond from ICD to Customs port or from one custom station to another.
5. Transit cargo transported to or from Nepal or Bhutan
6. Movement of goods caused by defence formation under Ministry of defence as a consignor or consignee
7. Empty Cargo containers are being transported
8. 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.
9. Goods being transported by rail where the Consignor of goods is the Central Government, State Governments or a local authority.
10. Goods specifed as exempt from E-Way bill requirements in the respective State/Union territory GST Rules.
11. 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.

 Note: Part B of e-Way Bill is not required to be filled where the distance between the consigner or consignee and the transporter is less than 50 Kms and transport is within the same state.

Documents or Details required to generate eWay Bill

1. Invoice/ Bill of Supply/ Challan related to the consignment of goods
2. Transport by road – Transporter ID or Vehicle number
3. Transport by rail, air, or ship – Transporter ID, Transport document number, and date on the document

GST Registration Online

What is GST Registration

In the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person. This process of registration is called GST registration.

For certain businesses, registration under GST is mandatory. If the organization carries on business without registering under GST, it will be an offence under GST and heavy penalties will apply.GST registration usually takes between 2-6 working days.

CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs. The notification will come into effect from 1st April 2019.

Who Should Register for GST?

1. Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.)
2. Businesses with turnover above the threshold limit of Rs. 40 Lakhs* (Rs. 10 Lakhs for North-Eastern States, J&K, Himachal Pradesh and Uttarakhand)
3. Casual taxable person / Non-Resident taxable person
4. Agents of a supplier & Input service distributor
5. Those paying tax under the reverse charge mechanism
6. Person who supplies via e-commerce aggregator
7. Every e-commerce aggregator
8. Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person

CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs. The notification will come into effect from 1st April 2019.

Documents Required for GST Registration

1. PAN of the Applicant
2. Aadhaar card
3. Proof of business registration or Incorporation certificate
4. Identity and Address proof of Promoters/Director with Photographs
5. Address proof of the place of business
6. Bank Account statement/Cancelled cheque
7. Digital Signature
8. Letter of Authorization/Board Resolution for Authorized Signatory

GST Registration Fees

GST Registration is a tedious 11 step process which involves submission of many business details and scanned documents. You can opt for Goods And Services Tax (GST) Registration services where a GST Expert will assist you, end to end with GST Registration.

Penalty for not registering under GST

An offender not paying tax or making short payments (genuine errors) has to pay a penalty of 10% of the tax amount due subject to a minimum of Rs.10,000.

The penalty will at 100% of the tax amount due when the offender has deliberately evaded paying taxes

What is GSTIN?

All businesses that successfully register under GST are assigned a unique Goods and Services Tax Identification Number also know as GSTIN.

What is Composition scheme and when should a business opt for it?

Small businesses having an annual turnover less than Rs. 1.5 crore ( Rs. 75 Lakhs for NE States) can opt for Composition scheme.

CBIC has notified the increased in the threshold turnover for opting into the Composition Scheme from Rs 1 crore to Rs 1.5 crores. The notification will be effective from 1st April 2019.

Composition dealers will pay nominal tax rates based on the type of business:

1. Composition dealers are required to file only one quarterly return (instead of three monthly returns filed by normal taxpayers).
2. They cannot issue taxable invoices, i.e., collect tax from customers and are required to pay the tax out of their own pocket.
3. Businesses that have opted for Composition Scheme cannot claim any Input Tax Credit.

Composition scheme is not applicable to :

1. Service providers
2. Inter-state sellers
3. E-commerce sellers
4. Supplier of non-taxable goods
5. Manufacturer of Notified Goods

Who can Register for Composition scheme under GST?

This scheme is a lucrative option for all SMEs who want lower compliance and lower rates of taxes under GST.

A GST taxpayer whose turnover is below Rs 1.5 crore can opt for Composition Scheme. In case of North-Eastern states and Himachal Pradesh, the present limit is Rs 75 lakh.

Turnover of all businesses registered with the same PAN should be taken into consideration to calculate turnover.

CBIC has notified the increased in the threshold turnover for opting into the Composition Scheme from Rs 1 crore to Rs 1.5 crores. The notification will be effective from 1st April 2019. Learn the Rules about Composition scheme & Know the pros & cons of being a composition dealer.

Obtain GST registration and file CMP-02 to opt-in for the scheme.

What are the benefits of registering under GST?

A. For normal registered businesses:

1. Take input tax credit
2. Make interstate sales without restrictions
3. To know more about the Benefits of GST

B. For Composition dealers:

1. Limited compliance
2. Less tax liability
3. High working capital
4. To know more about composition scheme

C. For businesses that voluntarily opt-in for GST registration (Below Rs. 40 lakhs)

1. Take input tax credit
2. Make interstate sales without restrictions
3. Register on e-commerce websites
4. Have a competitive advantage compared to other businesses
5. To know more about voluntary registrations

CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs. The notification will come into effect from 1st April 2019.

How to fill income from other sources in ITR-1 for FY 2018-19

The income tax department   has made some changes to  the income tax return (ITR) bureaucracy for this 12 months. This   means that there may be changes within the records you will must key in.

As an example, this year filling details under the head 'Income from other sources' in ITR-1 form could be distinct from closing year. final 12 months's ITR-1 had asked for simplest the aggregate quantity of 'earnings from other assets', but this 12 months you'll have provide an in depth smash-up of incomes at the same time as filing your return.

A drop down menu has been given inside the ITR shape to choose and choose the type(s) of income obtained by using you.

The drop down menu has five options:

1. Interest from Savings Account
2. Interest from Deposit (Bank/Post office/Co-operative society)
3. Interest from Income Tax Refund
4. Family Pension
5. Any other

Let's see the information that you are required to fill in and wherein.

1. Interest from savings Account

The primary choice from the drop down menu is 'interest from savings Account'. below this, you're required to enter the entire quantity of interest acquired from all the bank savings bills and put up workplace savings account held by way of you for the duration of the yr.

To get this information, you may both take a look at the financial savings account hobby entries inside the passbooks of all the financial institution money owed and publish office accounts held through you for the duration of the year or visit the financial institution or publish office branch to accumulate the hobby certificates.

Nowadays, one also can download interest certificates via the internet banking facility.

2. Interest from Deposit (Bank/Post office/Co-operative society)

If you have invested in fixed deposits (FDs), recurring deposits (RD) or any scheme of the post office like the Post office Time Deposit (POTD), Post office Monthly Income Account (POMIS), Senior Citizen Savings Account (SCSS) and so on, then you will have to select the second option from the drop down menu.

In this row you are required to enter the total amount of interest received by you from various deposits in FY 2018-19. You can visit your bank branch or post office branch to collect the interest certificates for the same. If the TDS is deducted from your interest payment, then bank is required to issue you Form-16A providing the details of interest paid and tax deducted during FY 2018-19.

3. Interest from Income Tax Refund

As per the Income Tax Act, tax refund received by you is not taxable in your hands but the interest received on it is taxable. The interest on income tax refund is paid by the department if the refund amount is more than 10 per cent of the tax paid.

You can check the interest amount received by you from Form 26AS. It shows the amount of refund and interest paid on it separately.

4. Family Pension

Pension received by the survivor of a government employee is called family pension. Usually, it is paid to the spouse of the government employee. Unlike pension which is directly received by the government employee and is taxable under the head, 'Income from Salaries', family pension is taxable under the head 'Income from other sources'.

If you have received family pension, don't forget to claim standard deduction under section 57. The deduction amount is equal to the lower of one-third of the pension received or Rs 15,000, as per current income tax laws.

5. Any other

Apart from the incomes mentioned above, if you have received any other income which is taxable in your hands, then you are required to enter the details related to the same.

There are many other incomes that are taxable under the head 'Income from other sources'. These include interest income from company FDs, sovereign gold bonds and so on. One can update his/her bank passbooks and check for interest received from any other sources except from the sources mentioned above.

Remember gifts received by you can also be taxable depending on the value of the gift, occasion for which it is received and from whom you have received it. Gifts received on the occasion of marriage are fully exempt from tax. Click here to know more about the taxability of gifts received by you.

A way to fill Salary information in ITR-1 for FY 2018-19

ITR-1 is one of the maximum broadly used bureaucracy by the salaried people to report their income tax return  (ITR). The form is now to be had on the income tax branch's e-submitting website. therefore, you could easily report your ITR as soon as your organization gives you Form-16 for FY 2018-19.
Not only is ITR-1 exclusive from final yr, even Form-16 has passed through changes this year. As in line with a notification issued with the aid of the Central Board of Direct Taxes  (CBDT), the brand new format of form-16 may have specific data. This consists of targeted smash-up of tax-exempt allowances paid to you via your organisation and deductions from profits earnings claimed by way of you and declared on your agency.
However, unlike last year, you don't have to collect salary slips as ITR-1 and Form-16 are now synchronised, making it easier to fill in your details.

Here's everything you need to know about filling your salary details in ITR-1 for FY 2018-19.
This year, ITR1 requires details of salary income to be provided under four sub-heads as follows:
a) Gross salary
b) Allowances to the extent exempt under section 10
c) Net salary (a-b)
d) Deductions under section 16
Once all the data is entered by you under the four sub-heads as mentioned above, the fifth sub-head, i.e., 'Income chargeable under the head Salaries', will be automatically calculated. Here is a look at each head in detail.

A) Gross salary
This head is further divided into three components:
(i) Salary as per section 17(1)
(ii) Value of perquisites as per section 17(2)
(iii) Profits in lieu of salary as per section 17(3)
The information required in ITR-1 can be found in Part-B of Form-16.
Part-B of Form-16 starts with the head 'Gross Salary'. The break-up given under this head, 'Gross Salary', is the same as what is asked in ITR-1. You are just required to copy and enter the information in ITR-1.

B) Allowances to the extent exempt under section 10
This head contains information about the partially or fully tax-exempt allowances received from your employer such as house rent allowance (HRA) and leave travel allowance (LTA). In the ITR-1 form, in this section you have to fill information of only those allowances that are fully or partially tax-exempt. This information will be available in Part-B of Form-16 under the head 'Allowances to the extent exempt under section 10'
To understand which of the allowances you receive will reflect under 'Allowances to the extent exempt under section 10', you need to know if the allowances received by you as per your salary structure are either partially or fully taxable. For example, the dearness allowance (usually received by government employees) is fully taxable. If an allowance is fully taxable, then it will be added to the salary as per section 17(1).
On the other hand, HRA can be fully taxable if you are not living on rent or have not paid any rent. However, if you have paid rent for living in a rented accommodation, then a portion of HRA received by you can be tax-exempt if you meet the conditions specified. Click here to know about the tax-exempt limits of allowances.
This can be explained with an example. Suppose, in FY 2018-19, your employer has paid you Rs 1.2 lakh as HRA. However, out of this you have paid only Rs 96,000 as annual rent to your landlord. Rules governing HRA will determine the tax exempt portion of the total HRA you have received during the year. Let us assume that as per the rules, Rs 72,000 of HRA is tax exempt and Rs 48,000 is the taxable portion.
The sub-head 'Allowances to the extent exempt under section 10' in Part B of your Form 16 will show the tax exempt portion of HRA, i.e., Rs 72,000. This figure of Rs 72,000 is required to be copied and entered in the row with the same name in ITR-1 by selecting it from the drop down menu.
The drop down menu has 14 options and an individual is required to select and mention every tax-exempt allowance received as mentioned in Form-16.

C) Net Salary
Once you have entered the details in the above mentioned heads, then the ITR software will automatically calculate your net salary. This amount should match with the net salary mentioned in your Form-16.

D) Deductions under section 16
After net revenue is calculated, you have to claim the deductions. not like the commonly recognized deductions including those under section 80C, sec 80D and so on, deductions under phase 16 can simplest be claimed when you have salary income or pension. these deductions are:
a) Standard deduction
b) Entertainment Allowance
c) Tax on employment/professional tax
These deductions may be noted in part-B of your form-16. standard deduction of Rs 40,000 could be available to you for FY 2018-19. Deduction on entertainment  allowance obtained is to be had to government employees best. if you have paid any professional tax to the country authorities, then the tax quantity paid can be claimed as deduction.

E) Income chargeable under the head 'Salaries'
Once all the details are entered in the above mentioned rows, then the figure should match with the amount mentioned in your Form-16. 

Form 16 – Basics, Part A & Part B of Form 16

Form 16 is a certificate issued by an employer and it contains the information you need to prepare and file your income tax return.

Employers must issue it every year on or before 15 June of the next year, immediately after the financial year in which the tax is deducted. Form 16 has two components – Part A and Part B. In case you lose your Form 16, you can request for a duplicate from your employer.

Part A of Form 16

An employer can generate and download this part of Form 16 through the TRACES (https://www.tdscpc.gov.in/app/login.xhtml) portal. Prior to issuing the certificate, the employer should authenticate its contents. It is important to note that if you change your job in one financial year, every employer will issue a separate Part A of Form 16, for the period of employment.

Some of the components of Part A are:

a. Name and address of the employer

b.TAN & PAN of employer

c. PAN of the employee

d. Summary of tax deducted & deposited quarterly, which is certified by the employer

Part B of Form 16

Part B of Form 16 is an annexure to Part A. If you change your job in one financial year, then it is for you to decide if you would want Part B of the Form from both the employers or from the last employer. Some of the components of Part B notified newly for the FY 2019-20 are:

a. Detailed breakup of salary

b. Detailed breakup of exempted allowances under section 10

c. Deductions allowed under the income tax act (under chapter VIA):

Specific fields are notified for deductions mentioned below:

1. Deduction for life insurance premium paid, contribution to PPF etc., under section 80C

2. Deduction for contribution to pension funds under section 80CCC

3. Deduction for employee’s contribution to pension scheme under section 80CCD(1)

4. Deduction for taxpayer’s self contribution to notified pension scheme under section 80CCD(1B)

5. Deduction for employer’s contribution to pension scheme under section 80CCD(2)

6. Deduction for health insurance premium paid under section 80D

7. Deduction for interest paid on loan taken for higher education under section 80E

8. Deduction for donations made under section 80G

9. Deduction for interest income on savings account under section 80TTA

d. Relief under section 89

Details required from Form 16 while filing your return

With reference to the image below, here is where you will be able to locate certain information for filing your income tax return for FY 2018-19(AY 2019-20).

1. Allowances exempt under section 10

2. Breakup of deductions under Section 16

3. Taxable Salary

4. Income (or admissible loss) from house property reported by employee offered for TDS

5. Income under the head Other Sources offered for TDS

6. Breakup of Section 80C Deductions

7. Aggregate of Section 80C Deductions(Gross & Deductible Amount)

8. Tax Payable or Refund Due

Additional information, which you will require from your Form 16 while filing your annual return are:

a. TDS Deducted by Employer

b. TAN of Employer

c. PAN of Employer

d. Name and Address of Employer

e. Current Assessment Year

f. Your (Taxpayer’s) Name and Address

g. Your PAN

5 things to know about Form 16

1. Form 16 is a certificate issued by an employer, certifying that the TDS is deducted from the salary of the employee and deposited with the government.

2. The form’s Part A contains employer’s TAN, PAN of employer and employee, address, assessment year, employment period and summary of TDS deposited with government.

3. The Part B of Form 16 consists of salary break-up, details of deductions claimed, total taxable income and tax deducted from the salary.

4. The employer is required to issue Form 16 on or before 31 May of the assessment year. Besides, the employer issues Form 16 if there is a mid-year change of job.

5. Form 16 helps in filing IT returns, is used as proof of income, for loan assessment and sanctioning, attached along with visa application, etc.

GSTR 9 – Annual GST Returns Riddle

Every registered entity is required to file annual return for goods and services tax (GST) by December of the next year. Since the form was not ready in time, the original due date of December 2018 is now extended up to 30 June 2019.

Registered persons, with more than Rs2 crore turnover, have to file GST reconciliation statement and certification (GSTR 9C) as well as annual returns or GSTR9 and audited financial statements. GSTR 9C is required to be certified by a chartered accountant (CA).

GST annual returns or (GSTR9) is a summary of details already reported in GSTR1 (sales returns) and GSTR3B (monthly/ quarterly), i.e., summary of sales and purchases along with tax payments. This, in theory, looks very simple as one-nation-one-tax GST; but when we try to actually fill the returns, there are multiple issues for which no clarifications are available or there are different interpretations by professionals. A few examples are given below:

1. In GSTR9, adjustments or amendments up to September 2018 are asked to be reported. However, the Central Board of Indirect Taxes and Customs (CBIC) has already extended this date up to March 2019. Consequent changes in the form are yet to be made.

2. Table 4 of GSTR9 asks for details of advances, inward and outward supplies made during the financial year on which tax is payable. This data is auto-populated as per GSTR1 filed. However, if some sales are not reported in GSTR1 but tax is already paid through GSTR3B then where to report it is not clarified.

3. The FAQs on this matter issued by CBIC read as under:“In Form GSTR-9, can additional liability not reported earlier in Form GSTR-3B be declared? Yes, additional liability not reported earlier at the time of filing Form GSTR-3B can be declared in Form GSTR-9. The additional liability so declared in Form GSTR-3B is required to be paid through Form GST DRC-03.” First of all, it should be GSTR9 and not GSTR3B in line 3. Further, it just information NOT info known but does not say which table and where to declare this liability.

4. Input reversals done in GSTR3B are shown as utilisation of input tax credit (ITC) in auto-populated table 9. Further, this field in not editable.

5. Headings of table 11 and 12 say that “Details of the previous financial year's transactions reported in next financial year” are to be shown there. However, there is difference in language used in the help file and line item. The help file says, “Particulars for the previous FY transactions declared in returns of April to September of next FY or up to date of filing of annual returns for 2017-18, whichever is earlier.” Whereas individual line item for table 11 and 12 talks only about GSTR1. Now there is confusion as to whether changes made in GSTR3B in the next financial year can be reported here. There is no other table to report these changes either.

6. For those who are not supposed to file audit report in 9C, there is confusion about whether GSTR9 should be based only on returns filed or books of accounts. There is no mention of books of accounts anywhere in GSTR9 frequently asked questions (FAQs).

7. On tax paid on reverse-charge basis, in subsequent financial year through GSTR3B, where does one report in GSTR9? There are no final answers to this. If reported along with normal turnover, it will not match with books of accounts.

8. Table 7 of GSTR9 says, ITC reversed for the financial year is to be disclosed. However, it does not specify in which returns. If reversed during 2018-19 for 2017-18 then it may lead to double reduction while filing next year’s GSTR9.

9. Table 8 of GSTR9 about ITC related information has no column for IGST on import paid but goods still in bonded warehouse, hence credit not taken. Many persons have not taken this credit till goods are cleared. If we follow as per GSTR9 schema, this credit will lapse.

10. The harmonised system of nomenclature (HSN) wise summary of inward supplies where 10% or more of total inward supply is to be given. However, if the supplier has not provided the exact HSN code, it would be very difficult for the taxpayer to now search for it.

These are some of the issues that taxpayers are facing while filing GSTR9 annual return. There are many such issues in GSTR9C audit report form as well. The main issue is that the government has been very slow in giving clarifications and, since returns filed cannot be revised, people are waiting till the last date to file. We all know what happens to GSTN in the last few days of any due date. 

Before you file your tax return, note the key changes in Form 16

Form 16 is the annual salary TDS certificate issued by an employer to an employee. The Central Board of Direct Taxes (CBDT) has notified amendments in Form 16. The new Form 16 is made effective from 12 May 2019. Employers issuing Form 16 for the financial year 2018-19 will have to issue them in the new format.
Part B of Form 16 has been amended seeking more details about the allowances exempt under section 10 such as HRA, LTA, gratuity etc and deductions allowed under Chapter VI-A of the Income Tax Act, 1961 i.e. section 80 deductions. The important changes are discussed below:
Exemptions under section 10:
Presently, an employer has the option to mention the nature of the allowances exempt under section 10 with the respective amounts. While some employers provided complete disclosure, others aggregated the allowances and disclosed the net amount exempt under section 10.
A summary of the allowances for which information is required against ear-marked fields is provided below:

Exempt Allowances required to be disclosed	Exempt under section
Leave travel concession	10(5)
Death cum retirement gratuity	10(10)
Commuted value of pension	10(10A)
Leave encashment	10(10AA)
House rent allowance	10(13A)
Any other amount exempt under section 10

Deductions under Chapter VI-A:
Presently, employers have the option to present the details of deductions under section 80C to section 80U of the Act. Similar to the disclosure of exempt allowances, some employers provided complete disclosure of the deductions, and others aggregated the allowances and disclosed the total amount of deductions allowed as a single line item in Form 16.
A summary of the deductions for which information is required against ear-marked fields is provided below:

Deductions required to be disclosed	Section
Life insurance premium paid, contribution to PPF etc.	80C
Contribution to pension funds	80CCC
Employee’s contribution to pension scheme	80CCD(1)
Taxpayer’s self contribution to notified pension scheme	80CCD(1B)
Employer’s contribution to pension scheme	80CCD(2)
Health insurance premium paid	80D
Interest paid on loan taken for higher education	80E
Donations	80G
Interest income on savings account	80TTA
Amount deductible under any other provision of Chapter VI-A

Other changes:

1. Disclosure of income (or admissible loss) from house property as reported by an employee to the employer
2. Disclosure of income under the head ‘Other Sources’ reported by an employee to the employer
3. Reporting the total amount of salary received from other employers
4. Standard deduction allowed under section 16 of the Act

The changes mentioned above to Form 16 will ensure that employers follow a uniform format for reporting of salary including the exemptions and deductions. Also, the amendment is in line with changes introduced in the income tax returns notified for AY 2019-20. This would facilitate employees in the filing of their tax returns for AY 2019-20.
In addition to the above, the move would facilitate the Income Tax Department to cross verify income reported by an employee with the TDS certificate/Form 16 issued by the employer.