Month: January 2024

Expectations of Budget 2024

Posted on by @nkpal25

According to an ET Online study, just 18.5% of participants expect populist news on the day of the Indian budget; more than 49% hope that the interim budget will provide the foundation for the full budget. Most people anticipate that the Finance Minister will offer broad economic direction. A direct tax change was ranked as the top priority by 38.4% of participants, whilst alcohol and gasoline inclusion under the GST regime was supported by 24.7%. While 15% of respondents advocated for new economy projects like technology and artificial intelligence, 22% backed steps to make business easier. After the new government is formed, the finance minister is anticipated to propose an interim budget in February and a complete budget in July. Let’s go specific:

Current economic indicators and challenges

With a base growth rate of 6.9% to 7.2% from the fiscal years 2023 to 2024, India’s economic prospects are favourable. However, because of the high cost of food and the unstable oil price, significant inflation is predicted to remain until the second part of fiscal 2024. The relationships between enterprises, industries, governments, and individuals will be impacted by the strategic growth of the nation, which will result in the development of intricate goods, services, and solutions.

India has to use its sizable home market to grow its commoditized product business and maintain its competitiveness. To have a beneficial and long-lasting effect on enterprises and the economy, corporate executives and legislators need to take advantage of new knowledge pool connections. Intensifying technological innovation, such as integrating the best accounting software in India, enhancing governance, and accomplishing decarbonisation targets for sustainability, can lead to inclusion and broad-based growth.

Global economic trends affecting the country

Two types of scenarios may be identified: optimistic and pessimistic. Given the containment of regional conflicts and the little disruption to global supply lines and the economy, the optimistic scenario will likely pass. Political stability is maintained after elections in India and other major industrialised nations, and growth in the US and EU is predicted to pick up steam in 2024. Due to mild inflation, the US Federal Reserve pauses raising policy rates. The global energy transition and the slowing Chinese economy also contribute to the low price of crude oil.

The Reserve Bank of India keeps its monetary policy more stringent to keep pressure on the lending industry at bay. The government is still working to combine spending, and the outcomes of state and federal elections do not signal political instability. PLI capacity investment and strong infrastructure capex drive up private investment spending.

In the gloomy scenario, protracted crises, political unrest, skyrocketing inflation, and increased natural disasters will slow growth. The Reserve Bank of India may raise rates again, but when growth slows down, it will back down. For businesses to gear up, they must adopt the best accounting software in India to keep up with the current situation.

Overview Of The Government’s Fiscal Policy

India refrained from making large fiscal position increases during the COVID-19 pandemic but has subsequently resumed its fiscal consolidation route and increased the openness of its fiscal balance sheet. The federal government and the states have decreased their off-balance sheet borrowings, and their expenditure has shifted to more productive capacity-building initiatives. The government has continued to prioritise productive capital expenditures, as seen by the increase in capex’s percentage of overall spending from 12.1% in FY21 to 22.2% in FY24.

Achieving a budget deficit of less than 5% of GDP in the next two to three years is essential for India’s sustained growth. With bond index inclusions bringing Indian debt markets closer to international investors, it will be critical to lower interest rate volatility and maintain, if not improve, India’s sovereign ratings, which are contingent on a reduced budget deficit.

International Trade And Relations

As one of the countries with the quickest growth rate, India is concentrating on boosting exports and encouraging homegrown manufacturing. The government has implemented policies like the Production Linked Incentive Scheme and free trade agreements with Western nations to accomplish these goals. Through import limitations and mandated standards, the government has also emphasised safeguarding the native industry.

Significant advancements in international trade between India and the rest of the globe have resulted from these efforts. Significant legislative and regulatory changes about foreign commerce have occurred in India in 2023; these advancements are mostly intended to shield the native industry against imports. This emphasis on local security could entice multinational businesses to establish operations in India, expanding the nation’s economic prospects. Consequently, to have a deeper understanding of India’s regulatory structure, comprehensive queries from outside exporters and investors are advised.

Union Budget 2024 : Expectations And Key Points

1. India’s Fiscal Deficit and Tax Environment

• Fiscal deficit expected to be 5.3% of GDP in FY25.

• The government may extend a concessional 15% tax for new manufacturing units until March 31, 2025

• Minosha India MD anticipates a stable tax environment.

• Home Credit India CEO anticipates significant impact from government initiatives.

• Modinomics 3.0 prioritises global leadership and $10 trillion GDP.

• Ministries of Power and New and Renewable Energy seek increased funding and incentives for the National Green Hydrogen Mission.

2. Oil and Gas Industry’s Green Energy Strategy

• Expected reallocation of expenditures for green energy.

• The oil public sector aims for net-zero goals and renewable energy investments.

3. Edtech Firms’ Hope for Tax Incentives

• Expressing hope for interim budget tax incentives.

• A potential decrease in GST rates on digital educational content could improve online learning affordability.

4. Budget Cuts and Government Social Spending in India

• RBI balances lower interest rates to combat inflation with economic growth commitment.

• Experts anticipate RBI’s extended pause, with some economists predicting interest rate reductions starting in June 2024.

• Jefferies predicts 7-8% growth in the government’s social spending for FY25, excluding subsidies

• Government plans to augment social expenditure while curbing capital expenditure growth.

• Gahlot suggests reducing double taxation on dividends paid to shareholders.

• Jefferies predicts a deceleration in capex growth.

• Restaurants and hotels are optimistic about government support for the hospitality sector’s growth.

• Power Minister RK Singh seeks more finance and incentives for green hydrogen.

• Standard deduction reintroduced in Budget 2018.

• Healthcare startup COO calls for a GST cut on alternative healthcare services.

• CARE Hospitals CEO Jasdeep Singh suggests enhancing the healthcare budget for better accessibility and affordability.

5. Budget Expectations for Salary Class and Tax Policy Changes

• Increase the basic exemption limit and Section 80C for salaried classes.

• Increase in senior citizens’ savings scheme limit exceeding Rs 30 lakh.

• Enhancement of income tax rebates.

6. New Delhi Metro Corridor Announcement

• The Union Budget will unveil the new Delhi Metro corridor between Haryana and Uttar Pradesh via Delhi.

• Final approval stages for the proposed sixth corridor of Delhi Metro’s Phase IV.

7. Tax Policy Changes

• Budget to simplify tax provisions and compliance.

• The Medical Technology Association of India (MTaI) urges reducing customs duty and removing ad valorem health cess on medical devices.

Conclusion

As industries await the 2024 budget with great anticipation, expecting a revolutionary change, businesses should adopt the best accounting software in India for seamless operations. Exporters seek a more hospitable climate with a standardised export tax structure to alleviate previous costs. The need to lift operating limitations reflects everyone’s wish for a more robust economic environment in the next fiscal year.

26AS Reconciliation with Revenue Important Tasks to Avoid IT Notice

Posted on by @nkpal25

Nobody enjoys receiving a notification in their mailbox from the Income Tax office. Therefore, it becomes the ultimate responsibility of every taxpayer to pay their taxes on time. One such essential document for tax payment is Form 26AS, which we will discuss here.

The Indian Income Tax Department issues Form 26AS annually, which includes income tax paid, TDS, advance tax, and other information. It captures all taxpayer tax transactions according to department records.

Let’s get to know more about it in detail.

26AS Reconciliation: What Is It?

Form 26AS is crucial for ITR filing. Form 26AS Reconciliation involves comparing Form 26AS data to taxpayer’s financial statements. This approach helps discover anomalies in counterparties’ tax deductions or collections and guarantees that the Income Tax Department appropriately registers the taxpayer’s tax credit. The taxpayer must verify that Form 26AS entries belong to him and resolve any data discrepancies before submitting ITR to prevent Income Tax Department notices.

Form 26AS acts as a mirror for taxpayer tax credits. The Income Tax Department of India produces an annual statement that specifies tax deducted, collected, or paid on the taxpayer’s PAN number. It also shows the taxpayer’s income tax refunds for the year. Before completing their income tax return, taxpayers must balance Form 26AS to avoid incorrectly claiming tax credits, which may result in tax notifications, fines, and legal action from the tax authorities.

Procedure for Reconciliation on Form 26AS

• Tax credit verification:

The taxpayer must verify form 26AS tax credits. The taxpayer must match the tax deducted/collected with the counterparty’s TDS/TCS certificate. The taxpayer’s bank statement should match self-assessment tax paid.

• Refunds verification:

The taxpayer must check Form 26AS for refunds. The taxpayer should verify the refund on Form 26AS with the refund received and the tax return refund amount.

• Balancing the Financial Statements and Form 26AS:

Verifying Form 26AS tax credits with taxpayer books of accounts is necessary and complicated.

• Discrepancies Rectification:

If Form 26AS shows errors, the taxpayer must rectify their books of accounts or ask the deductor or collector to alter their TDS/TCS returns. To prevent inaccurate tax credit claims, taxpayers should submit their income tax return after reconciling 26AS and books of accounts.

Why is Ankpal the Best Option for Form 26AS Reconciliation?

Taxilla, one of the top cloud-based
tax filing software for accountants, manages sophisticated and unique reconciliations, including Form 26AS, across industries. Unified RegTech Platform Ankpal automates Record, Reconcile, and Report.

Designed comprehensively for managing finances of an IT firm, Ankpal brings forth the concepts of paper-based invoicing, expense tracking, and in-depth financial reporting.

How Form 26AS simplifies Tax compliance?

• Early Error Detection:

Quickly identifying any inaccuracies in the tax credits recorded in Form 26AS is aided by the reconciliation of Form 26AS. This facilitates the correction of mistakes before the tax return filing date.

• Obtaining Correct Tax Credit:

The taxpayer may ensure their tax credit is appropriately represented in the Income Tax Department’s records by reconciling Form 26AS. It assists in preventing fines or interest costs brought on by mistakes made while claiming tax credits.

• Income Tax Law Compliance:

By confirming the correctness of the tax credit, the reconciliation of Form 26AS guarantees adherence to income tax regulations.

• Quicker Processing of Refunds:

The user may submit their income tax return without making any mistakes in reporting tax credits or liabilities, making processing the return and refunds easier.

Conclusion

The taxpayer must confirm that the tax credits are accurately shown on Form 26AS; otherwise, the taxpayer risks overpaying taxes. Taxpayers may verify that they claim the right tax credits using Form 26AS reconciliation.

Quarterly Filing of GST

Posted on by @nkpal25

The Indian government introduced the QRMP plan to simplify small company taxpayers’ returns filing procedure. But how? Let’s understand in detail:

To assist small taxpayers with a turnover of less than Rs. 5 crore, the CBIC or Central Board of Indirect Taxes & Customs launched the QRMP system or Quarterly Return Filing and Monthly Payment of Taxes under the Goods and Services Tax (GST). Through the QRMP program, taxpayers may pay taxes monthly and submit GSTR-3B every quarter.

Let’s get to know more.

How does the GST Structure work?

The present GST structure has four tax slabs: 0%, 5%, 12%, 18%, and 28%. Things under the 18% slab may eventually be shifted to the 12% or 28% slab, and the 18% slab may be deleted. A further alternative is combining the 28% and 18% tax slabs to form a single, higher tax bracket.

GST Registration:

Any day in the first month of a quarter that registration is approved for will allow the participant to choose the QRMP plan immediately. For instance, a person whose GST registration was approved until January 31, 2021, can choose to participate in the QRMP Scheme starting on January 31, 2021, and ending on March 31, 2021.

Maintain Records:

Regularly completing GST returns helps ensure that financial records are correct and current. This openness facilitates better financial management, audits, and decision-making. Whether choosing quarterly or monthly reporting, firms have better access to their financial information.

Collect GST on Sales:

The seller or firm collects and sends the GST component to the government. In some nations, it is also known as value-added tax or VAT. Most GST-implementing countries have a single, unified GST system, meaning a single tax rate is used nationwide.

Input Tax Credit (ITC):

The GST paid by a registered person on acquiring products or services used to advance business operations is an input tax credit. The input tax credit might mitigate the registered person’s GST obligation on the provision of goods or services.

Get your quarterly returns ready:

Under the Quarterly Returns with Monthly Payment (QRMP) Scheme, qualified taxpayers submit their Form GSTR-1 and Form GSTR-3B returns every quarter with GST filing software and use a challan to pay their taxes owed each month.

GST Return filing:

You may upload invoices for the first two months of a quarter using the Invoice Furnishing Facility (IFF) under the QRMP program. You have until the thirteenth of the following month to provide information about your out-of-country supply to a registered individual each month. For the last month, GSTR-1 must be submitted.

GST Payment:

The taxpayer must use form PMT-06 to deposit tax by the 25th of the next month for both the first and second months of the quarter. The taxpayers have two options for paying their monthly tax liability: The Self Assessment technique (SAM) or Fixed Sum Method (FSM) (35%) Challan strategy.

Reconciliation:

It would facilitate directly transferring B2B documents from the Invoice Furnishing Facility to the quarterly GSTR-1 report. Furthermore, it becomes increasingly important to reconcile the IFF, sales register, and GSTR-1. Additionally, under the QRMP plan, the taxpayer must choose between the Fixed Sum/35% Challan Method and the Self-assessment Method each month to pay taxes.

Audits and Compliance:

Every registered company must submit monthly, quarterly, or annual returns. The nature of the company activity mainly determines how often returns occur. Online filing (a GST return filing software can be useful) of the GST returns is necessary and must be done via the Returns portion of the GST website.

Conclusion

The QRMP scheme’s biggest benefit is quarterly GST return submission, which reduces the cost and hassle of submitting returns. This makes the strategy very beneficial and suitable for small businesses. Monthly return filing requires the taxpayer to compute and prepare his returns each month, reducing the likelihood of errors. Thus, the QRMP system is ideal for organizations with simple transactions and honest tax computation. It’s far greater than supplier-buyer conflicts gathered in three months.

Are GST Payments Taxable? Top Points You Need to Know!

Posted on by @nkpal25

GST, known as Goods and Services Tax, is a form of indirect tax that has replaced multiple indirect taxes in the country like VAT, excise duty, services tax, and so more. GST is levied on the overall supply of goods and services. It is a single domestic indirect tax law for the entire nation.

1. What kinds of payments are required under the GST regime?

Intra-state GST supplies must pay Central GST and State GST, while Interstate supplies are taxed under Integrated GST. Registered individuals may also pay TDS and TCS through GST Filing Software.

2. GST payment time for taxable individual

When providing products and services, see Sections 12 and 13. The timing is determined by the earliest of three events: payment, invoice, or supply. The above sections describe situations and tax points.

3. Key Features of the GST Payment Process

GST tax payment methods will include the following

– All payment methods use GSTN Common Portal-generated challans instead of manual ones.

– Allowing taxpayers to pay taxes whenever and wherever they choose

– Online payments are convenient. Here, GST Filing Software can help.
– Electronically available, logical tax-collecting data

– The government receives tax revenue faster.

– Paperless transactions are made.

– Accounting and reporting must be done ASAP.

– Reconciliation of all receipts is computerized.

– Bank processes have been streamlined.

– Digital Challan storage is possible via GST Billing Software.

4. The period during which the supplier must pay taxes for digital challan storage

The typical taxpayer must pay taxes by the 20th of the following month. As noted, Credit Ledger payments may be deducted. March taxes are due April 20. Quarterly taxes are due from composition taxpayers. Payment will be made between 0000 and 2000 Hrs.

5. Taxable Person Files Return Despite Not Completing Payment

The MGL states that a taxable person’s return is only valid if the entire tax is paid and proper recovery is required for an input tax credit. A taxable individual cannot use it until they pay their self-assessed tax.

6. Tax Payment Deadline: No Extensions or Monthly Payments

The tax deadline for self-assessed liabilities cannot be extended or paid in monthly installments. The competent authorities might extend the deadline or accept installments in other circumstances. Section 55 MGL. Readers should know this GST tax payment point.

7. The tax deposit date is the payment date by check or credit in the government account.

GST is typically required for selling goods or services, with the reverse charge method potentially holding receivers accountable for imports and supplies, or third parties financially responsible.

8. Payment methods

GST tax payments can be made via the Common Portal via GST Billing Software, debiting the taxpayer’s Credit Ledger, or cashing through the Common Portal Cash Ledger. The input tax credit can be used to pay output tax but cannot offset SGST payments.

9. Tax Liability Register

The Tax Obligation Register shows a taxpayer’s monthly tax obligation after netting.

10. GSTN and Authorized Banks Linkage

The GSTN will communicate with the Bank’s CBS in real time, sending a CPIN for verification and payment and a CIN for payment validation.

11. GST payments are due in order if the taxpayer owes from previous months.

Section 35(8) mandates a payment sequence for taxpayers exceeding their current return period, starting with self-assessed tax and interest for the previous period, followed by the current period.

12. Pre-registration of a credit card on the GSTN site is necessary for GST payments.

The taxpayer must pre-register his credit card for tax payments. Credit card payments without monetary limits might boost company convenience.

13. Suppliers may account for TDS when filing returns.

A supplier’s computerized cash ledger will indicate any TDS amount. He may pay his taxes, interest, and other bills with this money.

14. TDS Deductor Accounts for TDS

The TDS Deductor will account for such TDS as follows:

– Section 19 and Schedule III of the MGL require deductors to be registered.

– After collecting and reporting TDS under GSTR 7, they must remit it by the 10th of the month.

– The supplier’s computerized cash ledger will show TDS deposits.
– They must provide the deductor a TDS certificate within five days after deducting TDS, or they will be penalized Rs.100 per day up to Rs.5000.

15. Tax Collected at Source (TCS)

This regulation covers MGL section 43C E-Commerce Operators, requiring them to withhold a percentage of supplier payments and pay it into the GST account by the 10th of the following month.

Conclusion

Here are the most significant GST Tax Payments points. This list will assist individuals in comprehending GST tax payments and if they must pay taxes.

E-Invoicing and Accounting Software: Smart Move for Businesses

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Electronic invoicing is ideally a digital invoice processing technology. It works quickly and more effectively than the typical techniques. It goes beyond just cutting down on paper. It includes using technology to improve and streamline the billing procedure. Accounting software plays a vital role in financial management for modern businesses.

The technology also supports the creation of financial reports, budget management, and money flow tracking. When you integrate this into your accounting software, you can experience magic.

The combination of E-Invoicing Software and Accounting Software Has Plenty of Benefits:

There are plenty of fruitful benefits offered by the combination of moving to digitalization, the most prominent ones are mentioned here:

– Your financial records are updated in time to guarantee you always have the most recent information.

– There is less possibility of human error, so errors are decreased when operations are automated. It helps you produce more accurate data.

– You can get quick payments, as quick invoicing helps your cash flow.

Simplifying Integration To Streamline Invoice Procedure

The main objective of streamlining the invoicing procedure is to make everything operate quickly. It is like when you find a tuner engine; everything works smoothly. Integrating electronic invoicing with your accounting software goes beyond just a simple, sophisticated technology advancement. It helps you improve your workflow efficiency.

Think about sending an invoice that only requires a click of a button. This is the best part about integration. It can help you link different business components. It also allows smooth information transfer between systems. Automation and streamlining are things that go beyond internal improvements. It can directly impact the people who are buying from you. Quicker billing cycles result in better invoices, which can increase client satisfaction. Furthermore, it translates into fewer errors, which improves your confidence and forges deeper commercial ties.

Customers can expect better service when your back-end procedures are perfect. You can also improve the whole operational flow of your business, from internal efficiency to customer happiness. All you need to do is integrate electronic invoicing into your accounting systems. It is an excellent move toward our business model. It is best coordinated, practical, and also customer-focused.

Improved Financial Transaction Tracking and Monitoring

– One of the main advantages of E-Invoicing solutions is the way integration transforms tracking and monitoring. A single platform where every transaction is recorded in real-time is created when accounting and invoicing systems can come together.

– Just picture being able to get the most recent financial information quickly.

– One can easily make educated decisions with the help of real-time data, which is the outcome of fantastic data management procedures.

– Helps with a better understanding of a company’s financial health when all the economic data is located centrally. You can take proactive steps to rectify all the prospective problems and trends when you see them in real-time.

Security and Data Integrity

You need to handle all your financial information with accuracy and safety at the back of your mind. We know everything about how to protect your information’s security and data integrity by integrating your accounting with electronic invoicing software.

Why Choose Our E-Invoicing Software?

Our robust mechanisms ensure that unauthorized parties might view no information that you send or store. To maintain our system as safe as possible, experts constantly monitor it for any weak places. If there are any weaknesses, professionals can also make corrections in time.

We make regular copies of your data to ensure that it can promptly restore your data in the event of an issue.

Experts always align with all the rules and regulations regarding protecting your data. Integrating accounting software with E invoicing Software greatly aids in working more intelligently and inductively. It is all about streamlining and improving the accuracy of your financial tasks.

5 Simple Steps To Prevent Payment Delays

Posted on by @nkpal25

Running a business requires maintaining a regular cash flow, but maintaining a steady revenue stream is harder than it seems. 93% of businesses report receiving late payments, citing a PYMNTS survey. Inadequate cash flow, strained vendor relationships, and loss of an early payment discount might result from late payments.

On the other hand, you can prevent bad debt and possible late payments altogether. Simplifying your workflow, beginning with your clients, is the key to a healthy cash flow.

Along with additional issues, including resource waste, damaged relationships, and possible business failure, this causes cash flow concerns. Together with some practical advice on how to prevent them, let’s examine some of the causes of these protracted payment delays.

When a bill for goods or services is received and not paid for, that is known as a payment delay. However, this can differ depending on the firm, industry, and nation. Hence, E-Invoicing Solutions can solve the problem of delayed payments.

What Causes Late Payments The Most Frequently?

Some often-cited explanations for payment delays are as follows:

– Lost or never got the invoice

– The client feels that payment has already been made

– Money is on its way

– Financial difficulties (or require an extension)

– Human error (miscommunication, misspelling, forgetfulness)

5 Simple Steps To Prevent Payment Delays

1. Make Sure That a Written Copy Of Your Terms and Conditions Exists

Be open and honest with your customers before sending them an invoice. Include information about your terms and conditions, payment plans (such as requiring a 40% deposit upfront and the remaining 60% upon completion), interest charges, late payment fees, and any steps you plan to take to collect unpaid debt. This can be achieved with the presence of robust E-Invoicing software.

Ask the client to sign a written communication outlining these. You can then use the signed form as evidence and take legal action against them if they fail to make the payment.

2. Establish Incentives for Early Payments

Focus on providing incentives for early payments rather than penalizing late payers. Customers and suppliers may develop closer ties and more trust as a result.

Late payment penalties are another way to enhance this strategy. By adding an extra late fee for a late payment or unpaid invoice, payers are incentivized to pay on promptly, if not ahead of schedule.

3. Have Effective Client Communication

Additionally, you can prevent late payments by staying in touch with your clients on a regular basis, providing bills on time for the products or services rendered, and even sending pre-invoice reminders. It only takes a quick check-in now and then because clients can occasionally be prone to running late.

You can boost customer satisfaction and be paid faster by building strong relationships with your clients and offering them a dependable payment method. You might need to get in touch with your clients more frequently if you have a large number of late payers.

4. Convert Your Invoices To Digital Format

Let’s be honest: Traditional paper invoices make it improbable that a consumer will send a timely payment. Overdue payments are caused by a number of factors, including slow, erratic postal delivery and drawn-out payment procedures. And that’s not even accounting for the time it takes to send payment reminders or for incomplete or inaccurate invoice details.

Next, think about creating an interactive digital invoice. An invoice is sent to your customer through email: no printing, no mail carriers, no envelopes, and no misplaced papers.

5. Set Up Automatic Reminders For Payments

Without needing more work from you, setting up automated payment reminders is a fantastic method to inform your clients when their payments are due. Reminding your customers in advance increases the likelihood that they will remember to pay you on schedule as well, which will expedite the money collection process.

A well-equipped accounting system like Zoho Books may help you set up your cash flow for success by tracking your conditions of payment, investigating the credit histories of your clients, maintaining touch during the transaction, and encouraging early payments.

Conclusion:

It will all come down to being proactive with customer service concerns, automating processes, knowing and engaging with your consumers, and maintaining organization on your end (clear policies and cautious budgeting).

E-Invoicing Software is a one-stop destination when it comes to setting processes which can reduce delayed payments.

GST Year-End Checklist: Tasks To Be Completed

Posted on by @nkpal25

As March approaches, the GST Year-End Checklist is a taxpayer’s most important document!

Some regulations take effect on April 1, 2023, and taxpayers have many duties before then. Some activities have been done yearly, while others are done on April 1, the fiscal year’s start. Like every year, we’ve supplied a GST Year-End Checklist with all the duties you must do before the fiscal year ends. GST accounting software can help you with this.

2022-23 GST Year-End Checklist:

1. Mandatory 6-digit HSN for E-invoicing:

According to GST Notification No.78/2020 – Central Tax dated October 15, 2020, taxpayers must provide 6-digit HSN Codes for outbound shipments with AATO above Rs 5 Crores.

GST e-invoices will change significantly in the following weeks. The CBIC declared that the e-invoice gateway would only take 6-digit HSN Codes, not 4-digit ones.

2. Payment of taxes by a Goods Transport Agency (GTA) under the forward charge system

The site allows current taxpayers supplying Goods Transport Agencies Services to pay tax using the forward charge method, as per Notification No. 03/2022-Central Tax (Rate). They can submit their selection by navigating to Services > User Services > Opting Forward Charge Payment by GTA (Annexure V). The option cannot be withdrawn throughout the year. The choice is available for the Financial Year 2023-24 until March 15, 2023.

3. LUT: Exports/SEZ Supply

Rule 96A of CGST Rule-2017 mandates registered taxpayers to submit a Letter of Undertaking (LUT) in Form GST RFD-11 for exporting goods or services without IGST, with applications due by March 31, 2023, or before export and SEZ supply.

4. Using or avoiding GST schemes

The GST Composition Scheme allows small taxpayers to opt in or out of the scheme by March 31, 2023, with Form CMP-02 required. The GST Notification 14/2019 raised the small taxpayer turnover limit to Rs. 1.5 Crores. Registered persons with a turnover of Rs 5 Cr. can file quarterly GST returns and pay tax monthly under the QRMP scheme using a GST return filing software with options until April 30, 2023.

5. Refund of GST

A simplified GST procedure allows taxpayers to seek refunds for overpaid taxes, with accurate paperwork required. Reimbursement will be credited to bank accounts and applications close on March 31, 2023.

6. Create new invoice numbers.

The 2019 GST advice recommends starting a new invoice series for the next financial year. Rule 49 addresses issues with Bills of Supply using a Composition Scheme or exempted goods or services. Non-compliance with these rules may cause difficulties in producing E-Way Bills, Form GSTR 1, and refund requests.

7. Pending ITC

Use all input tax credits for the year, reconcile GSTR 2B with Purchase Invoices, and reconcile 2B credit for vendor follow-up and expense accounting credits.

8. E-way bills vs. GSTR 3B/GSTR 1 entry, accounting entries, and sales in financial statements

At all sites, GSTR-1, GSTR-3B, accounting entries, Financial Statements, and E-Way invoices record sales identically. Value changes might lead to interest, fines, or GST audit marks.

9. Amendments /Rectification:

In March 2023, taxpayers must correct errors in GSTR-1 or GSTR 3B returns from the previous year, reconcile ledgers with submitted returns, and adjust discrepancies in GSTR 3B, including erroneous GSTIN uploads and omitted invoices.

10. Physical Stock Checking:

Prepare for income tax and GST audits by matching actual stock and book entries. Physical stock inspections should include ITC reversals. Check GST return filing software for missing book sales to detect discrepancies.

11. Reversing Blocked Credit:

Section 17(5) of the CGST Act 2017 demands ITC reversal if you write down inventory at year-end.

12. For FY 2022–2023, reconcile the GST TDS/TCS credit reconciliation with the e-Cash Ledger on the GST site and the books of accounts.

Year-end GST TDS/TCS credit goes for E-Cash. Therefore, use GST accounting software to check this amount against your records.

13. Payment to vendors within 180 days

Paying commitments on time at the end of the fiscal year prevents backlogs, ensures vendor payment, and facilitates reconciliation and ITC claims.

Conclusion

GST compliance requires more concentration and effort than ever before. It is the taxpayer’s responsibility to ensure they follow the rules.