Monthly Recap: August 2020 GST Updates

GST department has come up with frequent updates in the month of August. This article summarizes all the updates including how these may benefit taxpayers.

06-AUG-2020: Offline Tool for GSTR-4

On 6 August 2020, GST portal has made available offline tool for filing annual return by composition dealer. Form GSTR-4 (Annual Return) offline utility is an Excel based tool to facilitate preparation of annual return creation. We have already covered this topic in detail in a different article.

Read the detailed article from the following link: Click Here

17-AUG-2020: Document-wise details of Table 8A of GSTR-9

GSTR-9 is an annual return to be filed by registered dealers. While filling form GSTR-9, column 8A is auto-populated with figures of Input Tax Credit (ITC), and the taxpayer has to reconcile the input claimed with that data.

Now portal has provided bill-wise details of input tax credit such as GSTIN, trade name, invoice number, invoice type, invoice date, invoice value, place of supply, rate, integrated tax, central tax, state tax, cess, filing date of counterparty GSTR-1, ITC available.

This can be understood with an example:

While filing GSTR-3B, Mr. A has claimed ITC on the basis of the invoices available with him as shown in the following table:

After the introduction of the new update, Mr. A can download Table 8A document details in excel format. After downloading, Mr. A noticed that he has claimed ITC on 6 invoices whereas in Table 8A only four invoices are appearing. The table given below is an extract of auto-populated 8A wherein only relevant details are given.

The new update has made the filing of GSTR-9 more transparent. As a benefit, after review of the downloaded Table 8A, a taxpayer is now able to trace the bill numbers and traders who have not uploaded their respective invoices in GSTR-1 claimed by him in GSTR-3B.

21-AUG-2020: Aadhaar Authentication in GST Registration

While applying for GST number, you can now opt for registration through Aadhaar authentication. It is a process to expedite the allotment of GST number. Authorized signatory acting as proprietor, managing director, partner in a firm, director of company, karta of Hindu undivided family can apply for GSTN using this facility.

In case of successful authentication of Aadhaar, registration will be deemed approved within 3 working days. After submitting the GST registration application, a link will be sent to the registered mobile number and email id.Click the link received to enter the Aadhar number and OTP when prompted.

29-AUG-2020: ITC Statement Form GSTR-2B Is Now Available on GST Portal

GSTR-2B is an auto-drafted Input Tax Credit (ITC) generated for every recipient on the basis of filed GSTR-1.Taxpayers can now reconcile books of accounts with data generated in Form GSTR-2B. The GSTR-2B consists of a summary of ITC available, ITC not available and ITC reversal. It is a static statement, generated once on 12th of following month.

Here are the steps to download GSTR-2B:

a. Login to the GST portal
b. Click RETURN DASHBOARD
c. Select the applicableFinancial Year and Return Filing Period
d. In the Auto-drafted ITC Statement section, click View or Download

A taxpayer can benefit from this facility in the following ways:

a. A Taxpayer can view supplier-wise summary of ITC.

b. It is an updated summary based on data uploaded by suppliers between 00:00 hours on 12thday of preceding month to 23:59 hours on 11th day of current month.

c. It ensures no ITC is taken twice, credit is reversed as per law and tax on reverse charge is paid.

The author can also be reached ay chanchaljain2007@gmail.com or ca.jain18@gmail.com .

Disclaimer: The above article is meant for informational purpose only and does not purport to be advice or opinion, legal or otherwise, whatsoever. While due care has been taken during the compilation of this article to ensure that the information is accurate to the best of our knowledge and belief, the contents of such article do not substitute for professional advice that may be required. The individual expressly disclaims all and any liability to any person who has read this document or otherwise, in respect of anything, and of consequences of anything done, or omitted to be done by any such person in reliance upon the contents of this article.