GST Care India

26/10/2022

31/03/2021

🌺 *Year End & New Year Challenges*
2020-21 ends today
2021-22 begins next day.

🔮 *BULLET POINTS*

❤️ *Income Tax*

🔥 *1.* PAN if not linked with Adhaar by 31 March’2021 shall remain inoperative till such period, it is linked. Inoperative Pan means TDS will be deducted at higher rates, ITR cannot be filed and penalty of 10000.00 may be imposed.

🪔 *2.* 31.03.2021 is last date to file/revise ITR of FY 2019-20.

🍒 *3.* 31.03.2021 is last date of investments for deduction u/s 80C or 80D etc for FY 2020-21.

💉 *4.* 31.03.2021 Is last date to file Q1 & Q2 TDS Returns of FY 2020-21 without Late Fee.

🫐 *5.* Next Year wef 01.07.2021 TDS @ 0.1% will have to be paid on Purchases of more than 50 Lacs if Turnover in FY 2020-21 exceeded 10 Crore. u/s 194Q.

🍔 *6.* Charitable Institutions/Trusts already registered with Income Tax Deptt will have to re-register themselves in 2021-22.

🪁 *7.* Income Tax Audit will not be required for FY 2020-21 for persons having turnover up to 10 Crores if Cash Component does not exceed 5% of total Receipts/Payments. Payments received or made by cheque other than Account Payee Cheques will be counted as cash component.

🏵️ *8* ITR of FY 2020-21 can not be filed after 31.Dec’21. ( means 3 months lesser period made available next year )


🥎 *GST*

🎪 *1.* Existing LUT for export without payment of IGST expires on 31.03.2021. Seek renewal for 2021-22.

🪀 *2.* Those who want to opt in or opt out of QRMP scheme for Q1/2021-22 can do so by 30.04.2021.

🚨 *3.* 31.03.2021 is last date of GST Audit and filling Annual Return of 2019-20. This Year’s Finance Bill has scrapped Sec 35(5). GST Audit, therefore stands abolished for coming years.

⛲ *4.* Those willing to shift to Composition Scheme for 2021-22 can do so by filling CMP 02 by 31.03.2021.

🏟️ *5.* E-Invoicing made mandatory wef 01.04.2021 for dealers with Annual Turnover of 50 Cr or more in any preceding Year. Those buying from such dealers without E-Invoice will loose Input Tax Credit on such purchases.

🧲 *6.* Till now HSN code was not mandatory for dealers up to 1.5 Cr. 2/4 Digits HSN was required from others. Wef 01.04.2021, *4 digits* HSN has been made mandatory for dealers having Turnover up to 5 Cr in 2020-21 for B2B transactions. *6 Digits* HSN is mandatory for others both for B2B & B2C transactions. Export Invoices will have 8 digits HSN as per the requirement of FTP (Foreign Trade Policy). HSN details will have to be given in GSTR1 also. Those who do not follow new HSN rules, will face penalty of 50,000.00 u/s 125 alongwith other liabilities.

🧭 *7.* QR code for B2C transactions for dealers having turnover more than 500 Cr in any preceding year is mandatory wef 01.07.2021. (extended date)


🚄 *Companies Act*

Every Company which uses software to maintain its accounts, shall use such accounting software which has edit log of each and every transaction, every change made in books of accounts along with the date when such changes were made and ensuring that audit trail cannot be disabled. (Applicable from 01.04.2021)

06/10/2020

The Summary of 42nd GST Council Meeting 📣📣

🔹 Effective 1st January 2021, *small taxpayers* with turnover less than Rs 5 crore, can file quarterly GSTR-3B and GSTR-1.

🔹 The due date of furnishing quarterly GSTR-1 will be the *13th of the month* succeeding the quarter; this is effective from 01.1.2021. However, taxpayers can upload invoices every month.

🔹 Starting from 1st January 2021, the number of returns have been reduced to *8 from 24* for taxpayers with less than Rs 5 crore turnover.

🔹 Such quarterly taxpayers would, for the first two months of the quarter, have an option to pay *35% of the net cash tax liability* of the previous quarter, using an auto-generated challan.

🔹 A roadmap has been prepared for the *auto-generation of GSTR-3B*, where the ITC will be auto-populated from the supplier’s GSTR-1, and the tax liability will be auto-populated from the business’ GSTR-1. To achieve this, the GSTR-1 should be filed mandatorily before filing GSTR-3B w.e.f.01.04.2021.

🔹 All taxpayers will continue to pay GST dues monthly through a simple challan. A nil CMP-08 will be allowed to be filed through an SMS.

🔹 Effective 1st April 2021 - Taxpayers with turnover exceeding Rs 5 crore, HSN code up to 6 digits must be mentioned. For turnover less than Rs 5 crore, HSN code up to 4 digits need to be mentioned for B2B supplies for both goods and services. For notified classes of goods, 8 digits will need to be mentioned.

🔹 Refunds to be given into bank accounts where *PAN and Aadhaar linking* is done. Aadhaar authentication facility (with OTP) is now allowed for refund applications. This discourages taxpayers from misusing the system.

🔹 GST exemption provided to *satellite launch services* by ISRO and Antrix Corporation, to encourage the space launching services in India.

🔹 *Non-alcohol based sanitisers* will continue to be taxed at an 18% GST rate.

🔹 The *compensation cess collected till now* accounts to Rs.20,000 crore, and the same will be disbursed to the states by tonight.

🔹 The amount of Rs.25,000 crore towards IGST of 2017-18 will also be disbursed to specific states by next week.

🔹 The next Council meeting will be held on *12th October 2020* to resolve compensation issues for states.

24/06/2020

☝🏻 *CBDT* has issued a notification today further extending few of the time limits of compliances under Taxation & Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 as under:

👉 Due date for filing Income Tax Return for F.Y 2018-19 has been extended to 31st July, 2020

👉 Waiver of interest u/s 234A in cases where self assessment tax is upto Rs 1 lac

👉 Deductions under Ch-VIA like Sec 80C, 80D, 80G, etc can now be made upto 31st July, 2020

👉The date for furnishing of TDS/TCS statements for the quarter ending on 31st March, 2020 has been extended to 31st July, 2020

Regards
CA Shivam Kalucha