RETURNS Under GST (Goods And Services Tax)

source: sns124

The basic features of the returns mechanism in GST include electronic filing of returns, uploading of invoice level information and auto-population of information relating to Input Tax Credit (ITC) from returns of supplier to that of recipient, invoice-level information matching and auto-reversal of Input Tax Credit in case of mismatch.

The returns mechanism is designed to assist the taxpayer to file returns and avail ITC.

Under GST, a regular taxpayer needs to furnish monthly returns and one annual return.

There are separate returns for a taxpayer registered under the composition scheme, nonresident taxpayer, taxpayer registered as an Input Service Distributor, a person liable to deduct or collect the tax (TDS/ TCS) and a person granted Unique Identification Number.

It is important to note that a taxpayer is NOT required to file all types of returns. In fact, taxpayers are required to file returns depending on the activities they undertake.

All the returns are to be filed online.

Returns can be filed using any of the following methods:

1. GSTN portal (www.gst.gov.in )

2. Offline utilities provided by GSTN

3. GST Suvidha Providers (GSPs) - If you are already using the services of ERP providers such as Tally, SAP, Oracle etc., there is a high likelihood that these ERP providers would provide inbuilt solutions in the existing ERP systems

Following table lists the various types of returns under GST Law:

GSTR-1

Monthly Statement of Outward supplies of Goods or Services

10th of the next month

GSTR-2

Monthly Statement of Inward supplies of Goods or Services

15th of the next month

GSTR-3

Monthly Return for a normal taxpayer

20th of the next month

GSTR-4

Quarterly Return Taxable Person opting for Composition Levy

18th of the month succeeding the quarter

GSTR-5

Monthly Return for a non-resident taxpayer Non-resident Taxpayer

20th of the month succeeding the tax period & within 7 days after expiry of registration

GSTR-6

Monthly Return for an Input Service Distributor (ISD) Input Service Distributor

13th of the next month

GSTR-7

Monthly Return for authorities deducting tax at source

Tax Deductor 10th of the next month

GSTR-8

Monthly Statement for E-Commerce Operator depicting supplies effecting through it

E-Commerce Operator 10th of the next month

GSTR-9

Annual Return

Registered Person other than an ISD, TDS/TCS Taxpayer, Casual Taxable Person and Non-resident Taxpayer

31st December of next Financial Year

GSTR-10

Final Return

Taxable Person whose registration has been surrendered or cancelled

Within three months of the date of cancellation or date of order of cancellation, whichever is later.

Filing Process

A normal taxpayer has to file the following returns:

1. GSTR-1 (Statement of Outward Supplies):

a. This return signifies the tax liability of the supplier for the supplies effected during the previous month.

b. It needs to be filed by the 10th of every month in relation to supplies effected during the previous month. For example, a statement of all the outward supplies made during the month of July 2017 needs to be filed by 10th August, 2017.

 2. GSTR-2 (Statement of Inward Supplies):

a. This return signifies accrual of ITC (Input Tax Credit) from the inputs received during the previous month.

b. It is auto-populated from the GSTR-1s filed by the corresponding suppliers of the Taxpayer except for a few fields like imports, and purchases from unregistered suppliers.

c. It needs to be filed by the 15th of every month in relation to supplies received during the previous month. For example, a statement of all the inward supplies received during the month of July 2017 needs to be filed by 15th August, 2017.

3. GSTR-3: This is a consolidated return.

It needs to be filed by the 20th of every month. It consolidates the following details

a. Outward Supplies (Auto-Populated from GSTR-1)

b. Inward Supplies (Auto-Populated from GSTR-2)

c. ITC availed

d. Tax Payable

e. Tax Paid (Using both Cash and ITC)

NOTE: Payment should be made on or before 20th of every month.

Annual Return

This return needs to be filed by 31st December of the next Financial Year. In this return, the taxpayer needs to furnish details of expenditure and details of income for the entire Financial Year.

The population of these returns is explained by the following graphic:

NOTE:

1. Taxpayer’s GSTR-2 is auto-populated from the Suppliers’ GSTR-1s

2. Taxpayer’s GSTR-3 is significantly auto-populated from tax payer’s GSTR-1 and GSTR-2

Revision of Returns:

The mechanism of filing revised returns for any correction of errors/ omissions has been done away with.The rectification of errors/ omissions is allowed in the subsequent returns. However, no rectification is allowed after furnishing the return for the month of September following the end of the financial year to which, such details pertain, or furnishing of the relevant annual return, whichever is earlier.

Penal Provisions Relating to Returns:

Any registered person who fails to furnish form GSTR-1, GSTR-2, GSTR-3 or Final Return within the due dates, shall be liable to pay a late fee of Rs. 100 per day, subject to a maximum of Rs. 5,000.

ITC Matching and Auto-Reversal:

1. It is a mechanism to prevent revenue leakage.

2. The process of ITC Matching begins after the due date for filing of the return (20th of every month). This is carried out by GSTN.

3. The details of every inward supply furnished by the taxable person (i.e. the “recipient” of goods and/or services) in form GSTR-2 shall be matched with the corresponding details of outward supply furnished by the corresponding taxable person (i.e. the “supplier” of goods and/or services) in his valid return. A return may be considered to be a valid return only when the appropriate GST has been paid in full by the taxable person, as shown in such return for a given tax period.

4. In case the details match, then the ITC claimed by the recipient in his valid returns shall be considered as finally accepted and such acceptance shall be communicated to the recipient. Failure to file valid return by the supplier may lead to denial of ITC in the hands of the recipient.

5. In case the ITC claimed by the recipient is in excess of the tax declared by the supplier or where the details of outward supply are not declared by the supplier in his valid returns, the discrepancy shall be communicated to both the supplier and the recipient. Similarly, in case, there is duplication of claim of ITC, the same shall be communicated to the recipient.

6. The recipient will be asked to rectify the discrepancy of excess claim of ITC and in case the supplier has not rectified the discrepancy communicated in his valid returns for the month in which, the discrepancy is communicated, then such excess ITC as claimed by the recipient shall be added to the output tax liability of the recipient in the succeeding month.

7. Similarly, duplication of ITC claimed by the recipient shall be added to the output tax liability of the recipient in the month in which, such duplication is communicated.

8. The recipient shall be liable to pay interest on the excess or duplicate ITC added back to the output tax liability of the recipient from the date of availing of ITC till the corresponding additions are made in their returns.

9. Re-claim of ITC refers to taking back the ITC reversed in the Electronic Credit Ledger of the recipient by way of reducing the output tax liability. Such re-claim can be made by the recipient only in case the supplier declares the details of the Invoice and/or Debit Notes in his valid return within the prescribed timeframe. In such case, the interest paid by the recipient shall be refunded to him by way of crediting the amount to his Electronic Cash Ledger.

INPUT TAX CREDIT Under GST (Goods And Services Tax)

source: sns124

Uninterrupted and seamless chain of input tax credit (hereinafter referred to as, “ITC”) is one of the key features of Goods and Services Tax. ITC is a mechanism to avoid cascading of taxes.

Cascading of taxes, in simple language, is ‘tax on tax’. Under the present system of taxation, credit of taxes being levied by Central Government is not available as set-off for payment of taxes levied by State Governments, and vice versa.

One of the most important features of the GST system is that the entire supply chain would be subject to GST to be levied by Central and State Government concurrently.

As the tax charged by the Central or the State Governments would be part of the same tax regime, the credit of tax paid at every stage would be available as set-off for payment of tax at every subsequent stage.

Let us understand how ‘cascading’ of taxes takes place in the present regime. Central excise duty charged on inputs used for manufacturing of final product can be availed as credit for payment of central excise duty on the final product.

For example, to manufacture a pen, the manufacturer requires plastic granules, refill tube, metal clip, etc. All these ‘inputs’ are chargeable to central excise duty.

Once a ‘pen’ is manufactured by using these inputs, the pen is also chargeable to central excise duty. Let us assume that the cost of all the above mentioned inputs is say, Rs.10/- on which central excise duty @10% is paid, means Re.1.

The cost of the manufactured pen is say Rs.20/-, the central excise duty payable on the pen @10% will be Rs.2/- . Now the manufacturer of the pen can use the duty paid on inputs, i.e. Re.1/- for payment of duty on the pen.

So he will use Re.1 paid on inputs and he will pay Re.1/- through cash (1+1=2), the price of the pen becomes Rs. 22/-.

In effect, he actually pays duty on the ‘value added’ over and above the cost of the inputs. This mechanism eliminates cascading of taxes.

However, when the pen is sold by the manufacturer to a trader, he is required to levy VAT on such sale. But under the present system, the manufacturer cannot use the credit of central excise duty paid on the pen for payment of VAT, as the two levies are being levied by Central and State government respectively with no statutory linkage between the two.

Hence, he is required to pay VAT on the entire value of the pen, i.e. Rs.22/-, which actually includes the central excise duty to the tune of Rs.2/-. This is cascading of taxes or tax on tax, as now VAT is not only paid on the value of pen i.e. Rs.20/- but also on tax i.e. Rs.2/-.

Goods and Services Tax (GST) would mitigate such cascading of taxes. Under this new system, most of the indirect taxes levied by Central and the State Governments on supply of goods or services or both, would be combined together under a single levy.

The major taxes/levies which are going to be clubbed together or subsumed in the GST regime are as under:

CENTRE TAXES

• Central Excise duty

• Additional duties of excise

• Excise duty levied under Medicinal & Toilets Preparation Act

• Additional duties of customs (CVD & SAD)

• Service Tax

• Surcharges & Cesses

STATE TAXES

•State VAT/Sales Tax

•Central Sales Tax

•Purchase Tax

•Entertainment Tax (other than those levied by local bodies)

•Luxury Tax

•Entry Tax (All forms)

•Taxes on lottery, betting & gambling

•Surcharges & Cesses

GST comprises of the following levies:

a. Central Goods and Services Tax (CGST) [also known as Central Tax] on intra-state or intra-union territory without legislature supply of goods or services or both.

b. State Goods and Services Tax (SGST) [also known as State Tax] on intra-state supply of goods or services or both.

c. Union Territory Goods and Services Tax (UTGST) [also known as Union territory Tax] on intra-union territory supply of goods or services or both.

d. Integrated Goods and Services Tax (IGST) [also known as Integrated Tax] on inter-state supply of goods or services or both. In case of import of goods also, the present levy of Countervailing Duty (CVD) and Special Additional Duty (SAD) would be replaced by integrated tax.

The protocol to avail and utilise the credit of these taxes is as follows:

Credit of              To be utilised first for payment of            May be utilised further

                                                                                     for payment of

 CGST                 CGST                                                      IGST

 SGST/UTGST     SGST/UTGST                                          IGST

 IGST                  IGST                                                       CGST, then SGST/UTGST

Credit of CGST cannot be used for payment of SGST/UTGST and credit of SGST/UTGST cannot be utilised for payment of CGST.

Some of the technical aspects of the scheme of Input Tax Credit are as under:

A. Any registered person can avail credit of tax paid on the inward supply of goods or services or both, which is used or intended to be used in the course or furtherance of business.

B. The pre-requisites for availing credit by registered person are:

a. He is in possession of tax invoice or any other specified tax paying document.

b. He has received the goods or services. “Bill to ship” scenarios also included.

c. Tax is actually paid by the supplier.

d. He has furnished the return.

e. If the inputs are received in lots, he will be eligible to avail the credit only when the last lot of the inputs is received.

f. He should pay the supplier, the value of the goods or services along with the tax within 180 days from the date of issue of invoice, failing which the amount of credit availed by the recipient would be added to his output tax liability, with interest [rule 2(1) & (2) of ITC Rules]. However, once the amount is paid, the recipient will be entitled to avail the credit again. In case part payment has been made, proportionate credit would be allowed.

C. Documents on the basis of which credit can be availed are:

a. Invoice issued by a supplier of goods or services or both

b. Invoice issued by recipient alongwith proof of payment of tax

c. A debit note issued by supplier

d. Bill of entry or similar document prescribed under Customs Act

e. Revised invoice

f. Document issued by Input Service Distributor

D. No ITC beyond September of the following FY to which invoice pertains or date of filing of annual return, whichever is earlier

E. The Input Service Distributor (ISD) may distribute the credit available for distribution in the same month in which, it is availed. The credit of CGST, SGST, UTGST and IGST shall be distributed as per the provisions of Rule 4(1) (d) of ITC Rules. ISD shall issue invoice in accordance with the provisions made under Rule 9(1) of Invoice Rules.

F. ITC is not available in some cases as mentioned in section 17(5) of CGST Act, 2017. Some of them are as follows:

a. motor vehicles and other conveyances except under specified circumstances.

b. goods and/or services provided in relation to:

i. Food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, except under specified circumstances;

ii. Membership of a club, health and fitness center;

iii. Rent-a-cab, life insurance, health insurance except where it is obligatory for an employer under any law;

iv. Travel benefits extended to employees on vacation such as leave or home travel concession;

c. Works contract services when supplied for construction of immovable property, other than plant & machinery, except where it is an input service for further supply of works contract;

d. Goods or services received by a taxable person for construction of immovable property on his own account, other than plant & machinery, even when used in course or furtherance of business;

e. Goods and/or services on which tax has been paid under composition scheme;

f. Goods and/or services used for private or personal consumption, to the extent they are so consumed;

g. Goods lost, stolen, destroyed, written off, gifted, or free samples;

h. Any tax paid due to short payment on account of fraud, suppression, mis-declaration, seizure, detention.

G. Special circumstances under which ITC is available:

a. A person who has applied for registration within 30 days of becoming liable for registration is entitled to ITC of input tax in respect of goods held in stock (inputs as such and inputs contained in semi-finished or finished goods) on the day immediately preceding the date from which he becomes liable to pay tax.

b. A person who has taken voluntary registration under section 23(3) of the CGST Act, 2017 is entitled to ITC of input tax in respect of goods held in stock (inputs as such and inputs contained in semi-finished or finished goods) on the day, immediately preceding the date of registration.

c. A person switching over to normal scheme from composition scheme under section 10 is entitled to ITC in respect of goods held in stock (inputs as such and inputs contained in semi-finished or finished goods) and capital goods on the day immediately preceding the date from which he becomes liable to pay tax as normal taxpayer.

d. Where an exempt supply of goods or services or both become taxable, the person making such supplies shall be entitled to take ITC in respect of goods held in stock (inputs as such and inputs contained in semi-finished or finished goods) relatable to exempt supplies. He shall also be entitled to take credit on capital goods used exclusively for such exempt supply, subject to reductions for the earlier usage as prescribed in the rules.

e. ITC, in all the above cases, is to be availed within 1 year from the date of issue of invoice by the supplier.

f. In case of change of constitution of a registered person on account of sale, merger, demerger etc, the unutilised ITC shall be allowed to be transferred to the transferee.

g. A person switching over from composition scheme under section 10 to normal scheme or where a taxable supply become exempt, the ITC availed in respect of goods held in stock (inputs as such and inputs contained in semi-finished or finished goods) as well as capital goods will have to be paid.

 h. In case of supply of capital goods or plant and machinery, on which ITC is taken, an amount equivalent to ITC availed minus the reduction as prescribed in rules (5% for every quarter or part thereof) shall have to be paid. In case the tax on transaction value of the supply is more, the same would have to be paid.

GST (GOODS AND SERVICES TAX) REGISTRATION

source: sns124.com

Introduction

In any tax system, registration is the most fundamental requirement for identification of tax payers ensuring tax compliance in the economy.

Registration of any business entity under the GST Law implies obtaining a unique number from the concerned tax authorities for the purpose of collecting tax on behalf of the government and to avail Input Tax Credit for the taxes on his inward supplies.

Without registration, a person can neither collect tax from his customers nor claim any input Tax Credit of tax paid by him.

Need and advantages of registration

Registration will confer the following advantages to a taxpayer:

• He is legally recognized as supplier of goods or services.

• He is legally authorized to collect taxes from his customers and pass on the credit of the taxes paid on the goods or services supplied to the purchasers/recipients.

• He can claim Input Tax Credit of taxes paid and can utilize the same for payment of taxes due on supply of goods or services.

• Seamless flow of Input Tax Credit from suppliers to recipients at the national level.

Liability to register

GST being a tax on the event of “supply”, every supplier needs to get registered.

However, small businesses having all India aggregate turnover below Rupees 20 lakh (10 lakh if business is in Assam, Arunachal Pradesh, J&K, Himachal Pradesh, Uttarakhand, Manipur, Mizoram, Sikkim, Meghalaya, Nagaland or Tripura) need not register. The small businesses, having turnover below the threshold limit can, however, voluntarily opt to register.

The aggregate turnover includes supplies made by him on behalf of his principals, but excludes the value of job-worked goods if he is a job worker. But persons who are engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax or an agriculturist, to the extent of supply of produce out of cultivation of land are not liable to register under GST.

Nature of registration

The registration in GST is PAN based and State specific. Supplier has to register in each of such State or Union territory from where he effects supply.

In GST registration, the supplier is allotted a 15-digit GST identification number called “GSTIN”, and a certificate of registration incorporating therein this GSTIN is made available to the applicant on the GSTN common portal. The first 2 digits of the GSTIN is the State code, next 10 digits are the PAN of the legal entity, the next two digits are for entity code, and the last digit is check sum number.

Registration under GST is not tax specific, which means that there is single registration for all the taxes i.e. CGST, SGST/UTGST, IGST and cesses.

A given PAN based legal entity would have one GSTIN per State, that means a business entity having its branches in multiple States will have to take separate State wise registration for the branches in different States. But within a State, an entity with different branches would have single registration wherein it can declare one place as principal place of business and other branches as additional place of business. However, a business entity having separate business verticals (as defined in section 2 (18) of the CGST Act, 2017) in a state may obtain separate registration for each of its business verticals.

Generally, the liability to register under GST arises when you are a supplier within the meaning of the term, and also your aggregate turn over in the financial year is above the exemption threshold of 20 lakh rupees.

However, the GST law enlists certain categories of suppliers who are required to get compulsory registration irrespective of their turnover that is to say, the threshold exemption of 20 lakh is not available to them.

Some of such suppliers who need to register compulsorily irrespective of the size of their turnover are:

• Inter-state suppliers

• A person receiving supplies on which tax is payable by recipient on reverse charge basis

• Casual taxable person who is not having fixed place of business in the State or Union Territory from where he wants to make supply

• Non-resident taxable persons who are not having fixed place of business in India

• A person who supplies on behalf of some other taxable person (i.e. an Agent of some Principal)

• E-commerce operators, who provide platform to the suppliers to supply through it

• Suppliers who supply through an e-commerce operator

• Those ecommerce operators who are notified as liable for GST payment under Section 9(5)

• TDS Deductor

• Those supplying online information and data base access or retrieval services from outside India to a non-registered person in India.

A Casual taxable person is one who has a registered business in some State in India, but wants to effect supplies from some other State in which he is not having any fixed place of business. Such person needs to register in the State from where he seeks to supply as a Casual taxable person.

A Non-Resident taxable person is one who is a foreigner and occasionally wants to effect taxable supplies from any State in India, and for that he needs GST registration.

GST law prescribes special procedure for registration, as also for extension of the operation period of such Casual or Non-Resident taxable persons. They have to apply for registration at least five days in advance before making any supply. Also, registration is granted to them or period of operation is extended only after they make advance deposit of the estimated tax liability.

In respect of supplies to some notified agencies of United Nations organisation, multinational financial institutions and other organisations, a unique identification number (UIN) is issued.

Standardisation of procedures

A total of 30 forms/formats have been prescribed in the GST registration rules. For every process in the registration chain such as application for registration, acknowledgment, query, rejection, registration certificate, show cause notice for cancellation, reply, cancellation, amendment, field visit report etc, there are standard formats.

This will make the process uniform all over the country. The decision making process will also be fast. Strict time lines have been stipulated for completion of different stages of registration process.

An application has to be submitted online through the common portal (GSTN) within thirty days from the date when liability to register arose. The Casual and Non-Resident taxable persons need to apply at least five days prior to the commencement of the business. For transferee of a business as going concern, the liability to register arises on the date of transfer.

The Proper Officer has to either raise a query or approve the grant of registration within three working days failing which, registration would be considered as deemed to have been approved. The applicant would have to respond within seven working days starting from the fourth day of filing the original application. The Proper Officer would have to grant or reject the application for registration within seven working days thereafter.

Amendment of registration

Except for the changes in some core information in the registration application, a taxable person shall be able to make amendments without requiring any specific approval from the tax authority. In case the change is for legal name of the business, or the State of place of business or additional place of business, the taxable person will apply for amendment within 15 days of the event necessitating the change. The Proper Officer, then, will approve the amendment within the next 15 days. For other changes like the name of day-to-day functionaries, e-mail IDs, mobile numbers etc. no approval of the Proper Officer is required, and the amendment can be affected by the taxable person on his own on the common portal.

Cancellation of registration

The GST law provides for two scenarios where cancellation of registration can take place; the one when the taxable person no more requires it (voluntary cancellation), and another when the Proper Officer considers the registration liable for cancellation in view of certain specified defaults (Suo-motu cancellation) like when the registrant is not doing business from the registered place of business or if he issues tax invoice without making the supply of goods or services.

The taxable person desirous of cancellation of registration will apply on the common portal within 30 days of the event warranting cancellation. He will also declare in the application, the stock held on the date with effect from which he seeks cancellation. He will also work out and declare the quantum of dues of payments and credit reversal, and the particulars of payments made towards discharge of such liabilities. In case of voluntary registration (taken despite not being liable for), no cancellation is allowed until expiry of one year from the effective date of registration. If satisfied, the Proper Officer has to cancel the registration within 30 days from the date of application or the date of reply to notice (if issued, when rejection is concluded by the officer).

Revocation of cancellation

In case where registration is cancelled suo-motu by the Proper Officer, the taxable person can apply within 30 days of service of cancellation order, requesting the officer for revoking the cancellation ordered by him. However, before applying, the person has to make good the defaults (by filing all pending returns, making payment of all dues and so) for which the registration was cancelled by the officer. If satisfied, the proper officer will revoke the cancellation earlier ordered by him. However, if the officer concludes to reject the request for revocation of cancellation, he will first observe the principle of natural justice by way of issuing notice to the person and hearing him on the issue.

Physical verification for registration

Physical verification is to be resorted to only where it is found necessary in the subjective satisfaction of the proper officer. If at all, it is felt necessary, it will be undertaken only after granting the registration, and the verification report along with the supporting documents and photographs, shall have to be uploaded on the common portal within fifteen working days.

GST registration for businesses to reopen on June 25

source: sns124.com / June 20, 2017

NEW DELHI, JUNE 14:  

If you have not been able to register on the GST Network within the deadline ending tomorrow, do not panic! There’s one more chance coming your way as the registration for existing excise, service tax and VAT payers will reopen on June 25.

There are about 80 lakh excise, service tax and VAT assessees at present, of which 64.35 lakh have already migrated to the portal of GST Network — the company readying the IT backbone for the GST regime.

The window for migration to the GSTN, which opened on June 1, will close tomorrow and during the fortnight, 4.35 lakh taxpayers have enrolled taking the total to 64.35 lakh.

However, this is 80 per cent of the existing assessees.

GSTN Chairman Navin Kumar sought to allay concerns of businesses who have not registered so far saying that the tax department is “obligated” to provide them smooth transition into the GST regime but traders should also come forward and complete the registration process by filling up the application form.

“Whosoever wants to do business under GST and wants to migrate, we will provide facility to them even after June 15. From June 25, anyone who is left out now, can come and file information and migrate to GST,” Kumar told PTI.

Registration with the GSTN is necessary for doing business in the Goods and Services Tax (GST) regime as businesses will have to upload monthly sales data as well as file return forms on this portal.

“People should not panic. If you are left out, you will get another opportunity because the law says anybody who is registered under taxes which are subsumed under GST if they have a valid PAN then they will be given a valid registration.

“So, it is the tax department’s obligation to give them provisional GST registration provided they have PAN. Therefore, even if they miss this window of June 15, they can come back on June 25,” Kumar added.

However, GSTN is prodding taxpayers and has sent e-mails to over 30 lakh assesses who have not completed their registration process to make them ready by the scheduled rollout date of July 1.

When a business registers under GST, it is given a provisional GSTIN. After that, in the second stage, the business has to log in to the GSTN portal and give details of its business, such as the main place of business, additional place of business, directors and bank account details.

Thereafter, the business has to verify its registration through digital signature, or by generating an electronic verification code (EVC).

Kumar said of the 64.35 lakh assessees who have migrated into the GSTN portal, about 30 lakh have not completed the second stage of registration since they are having trouble uploading the digital signature or getting EVC.

“What we are telling the businesses is if you do not complete the migration process you cannot issue invoices. In the e-mail, we have asked them to complete the registration by filling up the required documents and saving them on the portal. The GSTN will then e-mail them the Application Reference Number (ARN) after June 15,” he said.

Businesses with turnover above Rs. 20 lakh have to register with the GSTN. Those with turnover below the threshold too have to register if they want to claim input tax credit.

Kumar said not all assessees would migrate to the GSTN portal as businesses with turnover of up to Rs. 5 lakh are currently exempt from VAT.

Since in GST up to Rs. 20 lakh turnover is exempt, so all of the VAT assessees would not migrate to the GSTN. However, if they supplying to other businesses or if they want to pass on credit, then registration of business would be required.

Till April 30, around 60 lakh taxpayers out of a total of 80 lakh, had migrated to the new payment portal of GSTN. The tally has now gone up to 64.35 lakh.

The process of migration of existing assessees to the GSTN had started in a phased manner from November 2016. The Centre had earlier set March 31 as the migration deadline, which was later extended to April 30.

Last week, Prime Minister Narendra Modi reviewed the IT and other preparedness for the rollout of GST from July 1 and said it will be “a turning point” in the country’s economy. He had directed the officials that maximum attention be paid to cyber-security in IT systems linked to the GST.

Technology preparedness is an important aspect of the proposed indirect tax regime, as the GSTN would be processing about 300 crore invoices every month.

India is well set to become US$ 1 Trillion Digital Economy

Digital India being one of the most important programmes of the Government of India, the Ministry of Electronics & Information Technology (MeitY) today organized a high-level consultation with the industry leaders from IT and ITeS sector with focus on digital financial services and e-commerce. The consultation was conducted for developing the roadmap for One Trillion Dollar Digital Economy in India.

The meeting was chaired by Shri Ravi Shankar Prasad, Hon’ble Union Minister for Electronics & Information Technology and Law & Justice, in the presence of Shri P. P. Chaudhary, Hon’ble Minister of State, Ministry of Electronics & Information Technology and Law & Justice, Ms. Aruna Sundararajan, Secretary, Ministry of Electronics & Information Technology and Dr. Ajay Kumar, Additional Secretary, Ministry of Electronics & Information Technology.

The industry was represented by leading corporate houses and industry associations like Infosys, IBM, Wipro, Google, Microsoft, Mahindra Tech, Intel Corporation, Panasonic India, NIIT, Quickheal, Practo, Hike, Lava International Ltd, Cyient Ltd, IVCA, NPCI, NASSCOM, IAMAI et al.

The industry leaders welcome the present initiative of the government and asserted that an effective partnership between government and the private sector is the key for creating One Trillion $ Digital Economy in India. Better dispute resolution mechanisms for PPP projects, promoting emerging technologies like cloud, big data, GIS, AI etc through industry collaboration, strengthening the legal framework for data security were some of the key areas where government need to take reform measures for implementing the roadmap.

In his opening remarks, Shri Ravi Shankar Prasad said, “India is well set to become US$ 1 Trillion Digital Economy in next 7 years and it rather looks an easy target, however, the challenge would be to reach this target in 3-4 years. I appeal to the industry to join hands with the Government which is firmly believes in openness, supportive and proactive approach. India is committed to take lead in the ongoing digital revolution in the world and I would appreciate industry’s participation and support in this mission. Through such discussion, we aim to seek contribution and participation of the private sector as we stride forward to make India a truly global Digital economy.”

“The motto of the Government lead by the Hon’ble Prime Minister Shri Narendra Modi is to reform, perform and transform. Digital India is enabling technological empowerment that is bridging the gap between haves and have nots. India’s digital story is the story of a low-cost world class technology that is being hailed across the globe. I am very proud of the Indian IT Sector and I strongly believe that IT, ITeS, Ecommerce and financial services sectors will play a vital role to realize our aspirations of becoming a US$1 trillion digital economy. The trinity of JAM (Jan Dhan, Aadhaar and Mobile) and Digital Payment (DigiDhan) would also prove to be the biggest drivers of digital economy in the country.” Added Shri Ravi Shankar Prasad.

Shri Ravi Shankar Prasad also announced that the Government will come out with new electronic and software product policy and a framework for data security and protection policy. Additionally, a GST Cell would be set up in the Ministry of Electronics and Information Technology. He further said that there is no threat of job losses in the IT Sector. The Government as well as the industry remain upbeat about the IT Sector, as over 6 lakhs of IT jobs were created in last 3 years.

Speaking on the occasion, Ms Aruna Sundararajan, Secretary, MeitY said that the engagement with industry leaders will show the way forward to the US$1Trillion Digital Economy. “There is no doubt that Digital is going to be the growth engine of our economy. The power of Digital lies in its ability to enable inclusive growth, thus leading transformation of an unprecedented scale.

With Digital India driving the rapid expansion of Digital Economy, target of $ 1 trillion, though ambitious, is achievable. Digital India, thus far, has succeeded in creating a robust platform. However, without the active involvement of industry, the real potential of this platform cannot be realized. I therefore, urge the industry leaders to come forward and wholeheartedly participate in this transformation that is going to unfold in the next few years.” Added Ms. Sundararajan.

The key discussion areas include:

·         How to increase the impact of digital on various sectors such as health, education and financial inclusion.

·         Accelerating employment opportunities

·         Innovations to fast track digitization

·         Developing solutions for India and emerging market by exploring public private partnerships

The Ministry of Electronics & Information Technology has identified Digital Payments, Make in India, Start-Up India, Skill India, 100 Smart Cities, 50 Metro Projects and Swachh Bharat to be the key drivers of the Digital Economy.

MeitY also earmarked the following emerging technology areas:

·         Data Center/ Cloud

·         Shared Economy

·         Space technologies/ GIS

·         Robotics/ Machine Learning/ Industry 4.0

·         Augmented Reality/ Immersive Technologies

·         3-D Printing

·         IoT/ Sensors

·         Big Data/ Business Analytics/ Data Mining

·         Cyber Security/ Blockchain

·         Light Detection and Ranging (LiDAR) Technologies

·         Electric Vehicles

·         Drones/ Autonomous Vehicles

·         Natural User Interphases (Language/ Touch/ Gestures Enabled)/ Localization of Content

During the meeting, MeitY shared the following projections towards the Trillion Dollar Digital Economy, as envisaged by the Government of India

Item	2016-17	2024-25
IT/ITeS	$ 160 Bn	$ 350 Bn    (12-14% CAGR; source: Nasscom)
Electronics	$ 100 Bn	$ 300 Bn (16-23% CAGR; source: EY / IESA study)
Telecom	$ 80 Bn	$ 150 Bn   (10% CAGR; source: Market Research)
E-Commerce	$ 30 Bn	$ 150 Bn  (36% CAGR; source: TechSci Research)
Digital Payments	$ 3 Bn	$ 50 Bn  (Transaction Value; Google / BCG Study)
Cyber Secutiry	$ 18 Bn	$ 35 Bn   (Source: https://www.dsci.in)
IoT	$ 6 Bn	$ 20 Bn   (source: Nasscom)
Sharing Economy	$ 1 Bn	$ 30 Bn
Digital Skilling	$ 15 Bn	$ 30 Bn
Total	$ 413 Billion	$ 1.115 Trillion

It was also projected that the Digital Economy will generate 30 million employment by 2024-25, which is double than the current scenario. Electronics, Telecom and IT/ITeS sector would be the top three contributors with 8.9 million, 8.8 million and 6.5 million of jobs respectively, followed by e-commerce with 6 million, cyber security with 2.5 million, sharing economy with 2.3 million, CSCs with 2 million and start-ups and IoT with 0.5 million jobs in each sector. E-commerce is set to grow 19-fold in generating employment, followed by 500% each in start-ups and IoT sector.

As a way forward, the Ministry of Electronics & Information Technology has proposed the following:

·         Accelerated broadband connectivity to rural areas

·         Policy Initiatives to create Government / Private demand in various sectors including Health, Agriculture, Education, Security, Energy, Smart Cities, Tourism, etc.

o   Model for pilot implementation in various sectors to demonstrate productivity gains/quality improvements.

·         Dispute resolution mechanism for PPP models

·         Promoting Emerging Technology Areas in collaboration with industry

o   Provide policy framework for emerging technologies

o   Right Skill and Skill

o   Incentivize

o   Competency Building-CoEs

·         Strengthening legal framework

o   Legal framework for Data Security

·         Building on momentum in electronics manufacturing

o   Electronics Policy v2.0

·         Attracting investments in Data Centers/Cloud

·         Expand BPO/BPM industry leveraging Human Resource potential in tier 2-tier 3 cities

·         Promoting Software Product Industry

·         Strengthening Cyber security

o   Preference to domestic cyber security products

·         Leveraging crowd sourcing for innovative solutions

The Government of India has already partnered with the industry in designing and developing certain services and platforms like MyGov, Digital Locker, e-Sign, Cloud Services, Government e-Marketplace, e-National Agricultural Market etc.

With more than 108 crore mobile phone user, 114 crore Aadhaar accounts, around 1 lakh digitally connected gram panchayats and rapidly growing ecosystem for Digital Payments, India is very well poised to march towards a ‘One Trillion Dollar Digital Economy’ which will not only create employment opportunities for the youth, but also will pave way for exciting business avenues in the ICT and related sector.

source: sns124.com / June 16, 2017