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Deep dives and practical guides written by the WFYI team.
Comprehensive explanations, FAQs, and updates about GST regulations, returns, and compliance.
GST authorities can now directly initiate recovery against businesses reporting higher sales in GSTR-1 but underpaying tax in GSTR-3B. This measure, introduced via Section 114 of the Finance Act, 2021, clarifies that 'self-assessed tax' includes these mismatches, enabling recovery without a prior show-cause notice. While genuine errors may occur, taxpayers will be given an opportunity to explain discrepancies before recovery proceedings under Section 79 are invoked. This move aims to enhance compliance and curb fraudulent input tax credit claims.
Taxpayers facing outstanding GST demands can utilize Form GST DRC-20 to request payment deferment or installment options. This guide details the form's purpose, eligibility requirements, and a step-by-step procedure for its online submission. It covers crucial aspects such as the maximum installment period, applicable interest rates, and specific conditions that must be met before filing the application on the GST portal.
Section 17(5) of the CGST Act details specific categories of Input Tax Credit (ITC) that are ineligible or 'blocked' for businesses, impacting their GST cash flow and working capital. The article provides a clause-by-clause breakdown of these restrictions, covering conveyances, food, personal use, and construction, alongside recent amendments. It also clarifies reporting requirements for ineligible ITC in GSTR-3B and the consequences of non-compliance, such as interest and tax notices.
This article clarifies the process and implications of summons issued under Section 70 of the CGST Act. It details the officer's authority to summon individuals for evidence and outlines the serious consequences of non-compliance, including penalties and prosecution. The piece also covers the essential validity checks for summons documents, highlights key CBIC instructions for issuing summons, and empowers taxpayers by explaining their rights and responsibilities during such proceedings.
This article addresses common challenges faced by taxpayers when submitting their GSTR-3B returns on the GST portal. It details typical error messages, explains the underlying reasons for these issues, and provides clear, actionable solutions. The guide helps users navigate problems such as unsaved data, OTP failures, pending filing requests, DSC authentication issues, and incorrect Input Tax Credit utilization, ensuring a smoother return filing experience.
This article outlines the process for businesses to connect with the e-invoice portal and select a GST Suvidha Provider (GSP) for API integration. It details various methods for interacting with the Invoice Registration Portal (IRP), including direct API access and GSP-assisted connectivity, alongside recent e-invoicing mandate updates. The guide also provides a step-by-step procedure for GSP selection within the e-invoice system, emphasizing the benefits and requirements for efficient e-invoicing compliance.
This article delves into the applicability of Goods and Services Tax (GST) on various clothing and textile products in India. It examines the current GST rates, including proposed changes and their impact on the industry, alongside the relevant HSN codes for classification. The discussion also covers taxability for raw materials, tailoring services, and the composition scheme for businesses in the apparel sector.
Registered taxpayers can now withdraw their GST registration cancellation applications via Form GST REG-16 on the official portal, provided the proper officer has not yet processed the initial cancellation. This feature allows individuals to reverse mistaken cancellation requests. The process involves logging into the GST portal, tracking the application status, and then selecting the withdrawal option under 'View My Submissions'.
The 56th GST Council meeting has standardized GST rates for traditional Indian flatbreads like roti, chapati, khakhra, paratha, and parotta, effective September 22, 2025. This change reduces the GST on all these items to zero, eliminating the previous disparity where parathas were taxed at 18% and rotis at 5%. The move aims to simplify taxation and make these everyday food items more affordable for consumers, aligning with the government's efforts for a more consumer-friendly GST framework.
This article outlines the significant changes to Input Tax Credit (ITC) claims under India's Goods and Services Tax (GST) regime, effective January 1, 2022. It explains the new clause (aa) in Section 16(2) of the CGST Act, which mandates that businesses can only claim ITC for invoices visible in their GSTR-2B statements. The document also discusses the implications of removing provisional ITC, emphasizing the need for dynamic, real-time invoice reconciliation and disciplined vendor management to avoid penalties and optimize working capital.
The Goods and Services Tax (GST) framework in India includes specific regulations for claiming Input Tax Credit (ITC), which aim to streamline tax processes but also present certain challenges for businesses. This article examines the current legal requirements for ITC claims, including strict eligibility conditions and the crucial deadlines for submission. While these rules offer advantages like ample time for rectifications, they also have drawbacks, particularly when a supplier defaults, leaving the recipient unable to claim credit. Understanding these provisions is vital for businesses to ensure compliance and optimize their ITC utilization.
This article outlines solutions for common Digital Signature Certificate (DSC) issues encountered on the GST portal. It details the mandatory use of DSCs for corporate entities and LLPs, replacing handwritten signatures for various online activities. The guide provides step-by-step instructions for restarting the GST emSigner utility and updating DSCs on the portal. Additionally, it offers practical troubleshooting tips for errors such as missing certificates, connection failures, Java environment problems, and PAN verification issues.