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GST

GSTR-1A 2024: Complete Guide to Filing and Updates

The Central Board of Indirect Taxes and Customs (CBIC) in India introduced the GSTR-1A form to allow registered taxpayers to modify their previously filed GSTR-1 filings. After being abolished in 2017, this form was revived in July 2024. 

Key Points about GSTR-1A:

  • Objectives: To update or modify the sales information included in the first GSTR-1 return for the same tax period.
  • Timing: For the same tax period, it can be filed before submitting GSTR-3B and after filing GSTR-1.
  •  Scope: It allows the sales data listed in GSTR-1 to be amended, added, or withdrawn.
  • Impact: The GSTR-3B return will be updated right away to reflect any modifications made to GSTR-1A.

Who Needs to File GSTR-1A?

GSTR-1A can be filed by any registered taxpayer who needs to update information or make modifications to their GSTR-1 return. This is especially helpful when:

  • The first GSTR-1 file contained mistakes or omissions.
  •  Other sales that weren’t listed on the first GSTR-1 need to be reported.
  •  Particulars of the current sales records need to be modified.

How to File GSTR-1A:

  1. Log in to the GST Portal: To access the official GST portal, enter your GST credentials.
  2. Navigate to Services: On the portal’s home page, select the “Services” option.
  3. Choose Returns: Click the “Returns” menu item.
  4. Pick GSTR-1A: From the list of available returns, pick the “GSTR-1A” form.
  5. Complete the Information: Give the required details, such as the invoice details, the tax period, and any additions or changes.

Conclusion

Businesses can correct errors or missing information in their GSTR-1 forms with the help of GSTR-1A. Taxpayers may ensure timely and accurate GST compliance by being aware of its purpose and the procedures involved in filing. Penalties, interest, and needless audits can be avoided with timely and proper GSTR-1A reporting.

It’s important to remember that even though GSTR-1A provides a practical means of making changes, it’s still very important to be careful and thorough when filing GSTR-1. Businesses can reduce the requirement for GSTR-1A filings and expedite their GST compliance processes by putting strong internal controls in place and using cutting-edge GST software.

 

For more detailed information, you can refer to the official GST portal or consult with us.

Write us on infinityservices2018@gmail.com or visit our site

GST AUDIT

GST data retention policy 

Categories
GST

Data Retention Policy and Archiving GST Returns

Understanding the GST Portal’s Data Retention Policy

The GST Network site has an exclusive data retention policy in place. According to this guidelines, the site has to maintain taxpayer data for seven years. This includes return data, invoices, payments, and other necessary information.
The Implication of the 7-Year Retention Period
The seven-year retention period has important ramifications for taxpayers. It means that after seven years, the data for a specific time would no longer be available on the GST system. This includes the opportunity to view, download, and utilize this information for many kinds of purposes.
Monthly Data Archiving
To assure compliance with the data preservation regulation, the GST site uses a monthly data archiving process. This means that on the first of each month, data from the same month seven years ago is removed from the portal.
Importance of Downloading Data before Archiving
Given the monthly data archiving procedure, taxpayers should download and save their return data before it is withdrawn from the portal. This is especially crucial for data from September 2017 that is set to be archived on October 1, 2024.

 

Steps to Download Return Data

1. Log in to the GST Portal. You can access the GST portal by entering your GSTIN and password.

2. Navigate to the “Returns” area of the site.

3. Select the return type: Select the precise return type you want to download (for example, GSTR-1 or GSTR-3B).

4. Choose the Return Period: Select the financial year and period (quarter or month) to download the return.

5. Download Return Data: Click the “Download” button next to the desired return. The system will create a ZIP file with the return data and accompanying documents.

6. Save the downloaded ZIP file securely on your computer or external storage.

 

Tips for Data Archiving

• Frequent Downloads: It is advised to download returns on a regular basis to prevent missing any crucial information, particularly as the 7-year expiration period draws near.
• Organize Storage: Use folders based on return type or financial year to systematically store and arrange your downloaded files.
• Data Verification: After downloading, check the files’ integrity to make sure they are exact and complete.

• External Backup: For long-term storage and backup of your GST data, think about utilizing external hard drives or cloud storage services.

Conclusion

Taxpayers are encouraged to proactively maintain their records through the GST returns data archival process, as outlined in the GST portal’s data retention policy. Before any return data is deleted from the portal, taxpayers should ensure they download archived GST returns. This practice not only aids in audits and future reference but also aligns with the GST returns 7-year rule. By doing so, taxpayers can create a secure GST returns archive for their records.

Categories
GST

Detailed Overview of GST Audit: Audit in accordance with the Central Goods and Services Tax Act of 2017

A Goods and Services Tax (GST) audit is a comprehensive review of a taxpayer’s financial records, returns, and compliance with the provisions of the Central Goods and Services Tax Act, 2017 (CGST Act) and its corresponding state GST acts. The primary objective of a GST audit is to ensure that taxpayers are accurately reporting their GST liabilities, claiming eligible input tax credits (ITC), and complying with the various provisions of the GST laws.

Here is a detailed overview of the GST audit process in accordance with the CGST Act of 2017:

 

  1. Applicability:

– GST audits are applicable to certain categories of taxpayers, including those with a specified annual turnover threshold, as prescribed by the government.

– Taxpayers whose annual turnover exceeds the threshold limit are required to get their accounts audited by a qualified chartered accountant or a cost accountant.

  1. Audit Period:

– The audit covers a specific financial year or multiple financial years, as determined by the tax authorities.

  1. Appointment of Auditor:

– Taxpayers subject to GST audit must appoint a qualified auditor, such as a Chartered Accountant (CA) or Cost Accountant, to conduct the audit.

  1. Audit Process:

– The auditor examines the taxpayer’s books of accounts, records, invoices, and other relevant documents to verify the correctness of the reported GST transactions.

– They assess the accuracy of GST returns filed, including GSTR-1 (outward supplies), GSTR-3B (monthly summary return), and GSTR-2A (auto-populated purchase details).

– The auditor checks the reconciliation of ITC claimed in GSTR-3B with eligible invoices and relevant provisions.

  1. Verification of Compliance:

– The auditor ensures that the taxpayer has complied with various GST provisions, such as:

– Timely filing of returns

– Correct classification of goods and services

– Proper valuation of supplies

– Correct calculation of GST liability

– Timely payment of GST

– Adherence to reverse charge mechanism (if applicable)

– Applicability of GST on exempt and non-GST supplies

– Compliance with anti-profiteering provisions

  1. Audit Report:

– The auditor prepares an audit report, which includes findings, observations, discrepancies, and recommendations.

– The audit report must be submitted to the taxpayer within the prescribed timeframe.

  1. Response and Rectification:

– After receiving the audit report, the taxpayer has the opportunity to respond to the findings and rectify any discrepancies or errors.

– If necessary, the taxpayer may need to make additional tax payments or file revised returns to correct any mistakes.

  1. Submission to Tax Authorities:

– The taxpayer submits the audit report along with their response to the tax authorities within the stipulated timeframe.

  1. Action by Tax Authorities:

– The tax authorities review the audit report and the taxpayer’s response.

– If discrepancies are found and the taxpayer’s response is unsatisfactory, the authorities may initiate further investigations and take appropriate action, including the imposition of penalties.

  1. Conclusion:

– The GST audit process concludes once the tax authorities have reviewed the audit report and taken any necessary actions.

 

It’s important for businesses to maintain accurate records and comply with GST provisions to avoid penalties and legal consequences. The GST audit process is a crucial mechanism for ensuring tax compliance and preventing tax evasion in the GST regime.

Categories
GST Uncategorized

April GST collections at new high despite rate rationalisation in December

GST(Goods and Services Tax)

For the third time in four months, GST (goods and services tax) collection surpassed Rs 1 trillion in April, setting a new record high. The mop-up increased by 10% from the previous year.The finance ministry reported a gross collection of Rs 1.13 trillion for the month. A surge in collection was noted notwithstanding the most recent rate rationalization in December.The CGST (central GST) made up Rs 21,163 crore of the total collected, followed by the SGST (state GST), Rs 28,801 crore, the IGST (integrated GST), which made up Rs 54,733 crore (including Rs 23,289 crore on import), and the cess, which made up Rs 9,168 crore (including Rs 1,053 crore on import).

CGST

The CGST was Rs. 47,533 crore and the SGST was Rs. 50,776 crore after the IGST and the remaining IGST were provisionally settled in a 50:50 ratio between the Center and states. The Union Budget’s CGST objective for 2019–20 is Rs 6.1 trillion.”The April collection shows that the tax base is gradually expanding, and that effective data mining and e-way bills are helping to stabilize the GST. The last date for claiming credit for 2017–18 sales overlaps with GST filings for March, therefore businesses may have pushed their vendors to declare sales of that year as well, according to Pratik Jain, partner at consultant PwC India. He believed that going forward, the monthly collection might be expected to routinely exceed Rs 1 trillion.

GSTN

Tax evasion could get tougher with the GST Network (GSTN, the levy’s information technology backbone) and the income-tax department getting into a formal understanding to facilitate the exchange of data.The total number of GSTR-3B or summary returns filed for March up to April 30 was 7.2 million. April GST collections at new high despite rate rationalisation in December M S Mani, partner at consultants Deloitte India, said if the collection trend continued, the target for 2019-20 would be achieved without resorting to other measures. “An increase of over 16 per cent on the annual average does indicate GST revenues have now stabilised,” he said.

In its December 2018 meeting, the GST Council cut rates on 23 goods and services, including movie tickets, TV and monitor screens and power banks, and exempted frozen and preserved vegetables from the levy. Last July, the tax on small screen TVs, refrigerators and washing machines was cut to 18 per cent from 28 per cent. In November 2017, the rates for 178 items, including detergents, shampoos and beauty products, were reduced from 28 per cent to 18 per cent. “The increase in GST collection, despite rate rationalisation, is a welcome upshot for Indian economy. The major reason could be reconciliation of returns  and ledgers at the end of financial year 2018-19,” said Vishal Raheja, deputy general manager, Taxmann. Another reason could be computation of tax liability  due to filing of annual returns for financial year 2017-18, where the due date is end-June 2019, he added.

The Business Standard, 2nd May 2019

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