Showing posts with label FAQ. Show all posts
Showing posts with label FAQ. Show all posts

Sunday, February 14, 2021

FAQs on QRMP Scheme - GST NEWS

FAQ , GST NEWS
FAQs on QRMP Scheme - GST NEWS

 

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1. What is Quarterly Returns with Monthly Payment (QRMP) Scheme?

Quarterly Returns with Monthly Payment (QRMP) Scheme is for eligible taxpayers to file their Form GSTR-1 and Form GSTR3B returns on quarterly basis, while paying their tax dues on monthly basis through a challan.


2. Who all are eligible for the QRMP scheme?

All taxpayers whose aggregate annual turnover (PAN based) is up to ₹ 5 Crore in the current financial year and the preceding financial year (if applicable) and have already filed their last due Form GSTR-3B return, are eligible for the QRMP scheme.

If your aggregate turnover (PAN based) for FY 2019-20 and current Financial year is up to ₹ 5 Crore and you have filed your FORM GSTR-3B for the month of October 2020 (let’s say at least) by 30th November 2020, you will be assigned to QRMP scheme, by the GST system.

For example: A taxpayer’s whose Annual aggregate turnover (AATO) was less than/ up to ₹ 5 Crore in preceding FY and has filed Form GSTR-3B for the period June 2021 (let’s say at least) by last day of the first month of the next quarter ie by 31st July, 2021.


3. Is the QRMP scheme available to every taxpayer?

No, the QRMP scheme is not available to every taxpayer.

The QRMP scheme can be availed only by those taxpayers who are liable to file Form GSTR-1 and Form GSTR-3B returns and can be opted by:

• Registered taxpayer (Normal taxpayer, SEZ Developer, SEZ unit)

• Taxpayers who have opted out of composition scheme

• Persons applying for a fresh registration as Normal taxpayer

Note: The scheme is not available for taxpayers whose Annual aggregate turnover (AATO) is more than ₹ 5 Crores.


4. What are the pre-conditions for opting for QRMP scheme for a taxpayer?

Following pre-conditions must be fulfilled by a taxpayer to opt for QRMP scheme:

• Taxpayer must be registered as a regular taxpayer or opted out of composition scheme

• Taxpayer must have a valid User ID and password

• The Annual aggregate turnover (AATO) in current and preceding FY (if applicable) is up to ₹ 5 Cr.

• The Form GSTR-3B return for most recent tax period has been filed.

• There is no data saved on the portal in Form GSTR-1 for the applicable period (i.e. period for which you are opting for QRMP scheme).


Invoice Furnishing Facility (IFF)

5. What is IFF?

IFF stands for Invoice Furnishing Facility for taxpayers who have opted for QRMP scheme to declare outward supplies to a registered person for first two months of any quarter. It is an optional facility. The facility will be similar to Form GSTR-1. It allows filing for only B2B invoices, credit notes, debit notes etc. Last date of filing IFF for a month is the 13th of the next month. This will allow recipient taxpayers to take credit of these invoices in the same month, if reported in IFF, by the supplier taxpayer under QRMP scheme.


Opting for QRMP Scheme

6. Presently, I am filing Form GSTR-1 at quarterly frequency and Form GSTR-3B at monthly frequency, will I be able to opt out of the QRMP scheme?

Please note that from the quarter January – March 2021 onwards, you will be assigned to QRMP scheme by the GST System. You can choose to opt out from the QRMP scheme and if so, you would need to file both Form GSTR-1 and Form GSTR-3B on Monthly frequency.

However, you may continue to remain in the QRMP scheme and file both Form GSTR-1 and Form GSTR-3B at quarterly frequency.


7. From where can I opt in or opt out from the QRMP scheme?

Login to the GST portal using your valid credentials and then navigate to Services > Returns > Opt-in for Quarterly Return option to opt in or opt out of the QRMP scheme.


8. Can I avail the QRMP scheme at any point of time during a financial year?

You can opt in or opt out of the QRMP scheme as per the timelines mentioned in the table below:

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9. Can a GST Practitioner opt in/ opt out of the QRMP scheme on behalf of taxpayer?

No, a GST practitioner cannot opt in/ opt out of the QRMP scheme on the behalf of taxpayer. A GST Practitioner can only view details.


10. I have multiple GSTINs on the same PAN in same/different States. Can I opt in for the QRMP scheme for some specific GSTINs only?

Yes, you may opt for the QRMP Scheme for certain GSTINs and remain out of the scheme for remaining GSTINs, registered on a common PAN.


Migration of Existing taxpayers to QRMP Scheme

11. Before commencement of QRMP scheme, will the GST system assign the existing taxpayers to this scheme?

Yes, for the Quarter Jan to Mar 2021, all the registered taxpayers whose Annual Aggregate Turnover (AATO) in the FY 2019-20 was up to ₹ 5 Crore and has not exceeded ₹ 5 Crore turnover in current FY i.e. 2020-21 and have furnished there return in Form GSTR-3B for the month of October 2020 by 30th November 2020, will be assigned to QRMP scheme by the GST system.


12. What are the rules based on Annual Aggregate Turnover (AATO) by which the existing taxpayers will be assigned to QRMP Scheme by the GST system?

The existing taxpayers will be migrated to the QRMP scheme, based on the following criteria of annual aggregate turnover.

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Note: In case your return in Form GSTR-3B for the month of Oct. 2020 is not filed by 30th November 2020, GST Portal will migrate your profile to Monthly Return filing option.


Changing Profile After Opting for QRMP Scheme

13. Can I change and save my profile for two consecutive quarters in a year?

No, you cannot take actions for two consecutive quarters simultaneously on the GST Portal. At any given point of time, you can opt in/ opt out for a single quarter only.

Note: The option selected in the current quarter will continue to be the option for the subsequent quarters also.


14. I have saved Form GSTR-1 for this quarter but filing of Form GSTR-3B return is pending. Can I opt for the scheme now?

No, you cannot opt for the QRMP scheme, if you have saved any details in Form GSTR-1 for that particular quarter. You can delete the saved records in Form GSTR-1 and then choose to opt into the scheme.


15. As part of transition to the scheme, my GSTIN was migrated to the QRMP scheme for the Quarter Jan-Mar 2021. Do I need to again opt for the scheme for next quarter(s)?

No, once you have opted for QRMP scheme or have been assigned to QRMP scheme by the GST system, the same will continue for subsequent quarters (unless you want to opt out of the scheme or in case the aggregate turnover for current FY exceeds ₹ 5 Crore during a quarter).


16. I have opted for the QRMP scheme. Will I now be required to file both Form GSTR1 and Form GSTR-3B on quarterly frequency?

Yes, if you opt for QRMP scheme, both Form GSTR-1 and Form GSTR-3B will be required to be filed at quarterly frequency. However, Payment needs to be made every month, for tax dues on monthly basis through a challan.


17. I am a new registered taxpayer; will I be able to opt for the QRMP scheme?

Yes, new registered taxpayer whose AATO is up to ₹ 5 Crores can opt for the QRMP scheme based on the following conditions:

1. The registration is granted on any date during the first month of a quarter will be able to opt for QRMP scheme from the beginning itself.

For example, a person granted registration upto 31st January, 2021, will be able to opt for QRMP Scheme from the quarter Jan-Mar, 2021 itself by 31st January, 2021.

2. If, however, the registration is granted on any of the dates during latter 02 months of a quarter, they will be able to opt for QRMP scheme only from next quarter onwards.

For example, a person granted registration on or after 1st February, 2021, will be able to opt for QRMP Scheme only from Quarter Apr-June, 2021 onwards and will have to file Form GSTR-1 and Form GSTR-3B returns monthly, for the months of February and March, 2021.


18. Whether it is required to exercise the option every quarter / year?

No, registered persons are not required to exercise the option every quarter. Where such option has been exercised once, they will continue to furnish the return as per the selected option for future tax periods, unless they revise the said option or their AATO exceeds ₹ 5 Crore.


19. If a tax payer has opted for QRMP scheme and his AATO exceeds ₹ 5 Crores, then will the scheme be valid?

No, in case the AATO of a taxpayer exceeds the limit of ₹ 5 Crores, the tax payer will not be eligible for the QRMP scheme.


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Thursday, December 27, 2018

FAQ’s and MCQ’s on Accounts and Records under Section 35 in GST - GST NEWS

FAQ ,
FAQ’s and MCQ’s on Accounts and Records under Section 35 in GST - GST NEWS

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FAQ’s on Accounts and Records under Section 35 in GST - GST NEWS


Section 35 of the CGST Act, 2017 made applicable to IGST vide Section 20 of the IGST Act, 2017 and UTGST vide Section 21 of the UTGST Act, 2017

Q1. Should every registered person required to maintain books of account?

Ans. Yes, as per Section 35 of the CGST Act, 2017 every registered person is required to keep and maintain books of account at his principal place of business, as mentioned in the certificate of registration.

Further, where more than one place of business is specified in the certificate of registration, the accounts relating to each place of business shall be kept at such places of business
.
However, in case of supply of tea, coffee, rubber, etc. where the auctioneer claims ITC in respect of the supply made to him by the principal before the auction of such goods and the said goods are supplied only through auction. Then, both the principal an d the auctioneer are required to maintain the books of accounts relating to the additional place(s) of business at their principal place of business instead of such additional place(s). [Refer Circular No.23/23/2017-GST dated 21.12.2017]

Q2. What are the basic accounts required to be maintained by a person at the principal
place of business?

Ans. As per Section 35 of the CGST Act, 2017 read with the CGST Rules, 2017, every
registered person shall keep and maintain the following accounts on a true and correct basis:

(a) Production or manufacture of goods;
(b) Inward or outward supply of goods or services of both;
(c) Stock of goods;
(d) Input tax credit availed;
(e) Output tax payable and paid;
(f) Such other particulars as may be prescribed.

Q3. What are the additional accounts to be maintained by the registered person under the
Chapter VII - Accounts and Records of the CGST Rules, 2017?

Ans. Every registered person, in addition to the records to be maintained under section 35 of
the CGST Act, is required to maintain following additional accounts on a true and correct basis:

1. Goods or services imported or exported;
2. Supplies attracting payment of tax on reverse charge along with relevant documents (including invoices, bill of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers, refund vouchers);
3. Accounts of stock in respect of goods received and supplied – containing particulars of opening balance, receipt, supply, goods lost, stolen, destroyed, written off or disposed of by way of gift or free sample and balance of stock including raw materials, finished goods, scrap and wastage thereof (these details need not be maintained by a composition dealer);
4. Advances received, paid and adjustments made thereto;
5. Tax payable on reverse charge basis;
6. Tax payable, tax collected and paid, input tax, input tax credit claimed, together with a register of tax invoice, credit notes, debit notes, delivery challan issued or received during any tax period (Not applicable to composition dealer);
7. Names and complete addresses of suppliers from whom he has received the goods or services;
8. Names and complete addresses of the persons to whom he has supplied the goods or services; and
9. Complete addresses of the premises where the goods are stored by him, including goods stored during transit along with the particulars of the stock stored therein.

Q4. Is an agent required to maintain any set of books of accounts?

Ans. Yes as per Rule 56(11) of the CGST Rules, 2017, every agent referred in section 2(5) of the CGST Act, 2017 shall maintain accounts containing:
1. particulars of authorization received by him from each principal to receive or supply goods or services on behalf of such principal separately;
2. particulars including description, value and quantity (wherever applicable) of goods or services received on behalf of every principal;
3. particulars including description, value and quantity (wherever applicable) of goods or services supplied on behalf of every principal;
4. details of accounts furnished to every principal; and
5. tax paid on receipts or on supply of goods or services effected on behalf of every principal.

Q5. Is there any specific set of records to be maintained by the provider of works contract
service?

Ans. Yes as per Rule 56(14) of the CGST Rules, 2017, the registered person providing works contract service shall maintain the accounts showing
1. the names and addresses of the persons on whose behalf the works contract is executed;
2. description, value and quantity (wherever applicable) of goods or services received for the execution of works contract;
3. description, value and quantity (wherever applicable) of goods or services utilized in the execution of each works contract;
4. the details of payment received in respect of each works contract; and
5. the names and addresses of suppliers from whom he has received goods or services.

Q6. Is there any specific record to be maintained by custodian of goods?

Ans. Yes, as per Rule 56(17) of the CGST Rules, 2017, the clearing and forwarding agent or the carrier of goods shall maintain true and correct records in respect of such goods handled by him on behalf of the registered person.

Q7. In case of more than one place of business, whether the records are required to be
maintained only at principal place of business?

Ans. No, where more than one place of business is specified in the certificate of registration, the accounts relating to each place of business shall be kept at such places of business. Moreover, in case of additional places of business, the accounts relating to each place of business shall be kept at such places of business concerned (provided such place is specified in the certificate of registration). Such books of account shall include any electronic form of data stored on any electronic device.

Q8. Whether accounts can be maintained in the electronic form?

Ans. Yes, the registered person may keep and maintain such accounts and other particulars  in the electronic form, however the said records must be authenticated by way of digital signatures. Proper electronic back-up of records shall be maintained and preserved in such manner so that the information can be restored within a reasonable period of time in the event of destruction of such records due to accidents or natural causes. The same shall be produced on demand along with its sample hard copy and passwords, codes, etc.

Q9. Is there any category of registered person required to maintain additional accounts or
documents?

Ans. As per Section 35(3) of the Act, the Commissioner may notify a class of taxable persons
to maintain additional accounts or documents for such purpose as may be specified therein.

Q10. Can an exception be made for maintenance of books of account as per provisions of
Section 35 of the CGST Act?

Ans. Yes, as per provisions of section 35(4), in case any class of taxable persons is not in a
position to keep and maintain accounts in accordance with the provisions of section 35,
the Commissioner may permit such class of taxable persons to maintain accounts in such manner as may be prescribed after recording the reasons for the same in writing.


Q11. Whether the accounts maintained by the registered taxable person need to be audited?

Ans. Yes, every registered person whose aggregate turnover during a financial year exceeds
the prescribed limit of ` 2 Crore, shall get his accounts audited by a chartered accountant or a cost accountant and shall submit to the proper officer a copy of the audited annual accounts, the reconciliation statement (duly certified, in FORM GSTR-9C) under Section 44(2) and such other documents in the form and manner as may be prescribed.


Further, any department of the Central Government or a State Government or a local authority, whose books of account are subject to audit by the Comptroller and Auditor General of India or an auditor appointed for auditing the accounts of local authorities under any law for the time being in force shall be exempted by this provision of audit.(Effective date yet to be notified)

Q12. Can the provisions of Sections 73 or 74 be made applicable for not maintaining books
of account?

Ans. Yes, where the registered person fails to account for the goods and/or services in accordance with Section 35(1), the proper officer shall determine the amount of tax payable on the goods and/or services that are not accounted for, as if such goods and/or services had been supplied by such person, and the provisions of Sections 73 or 74, as the case may be, shall apply, mutatis mutandis, for determination of such tax.

Note:
• Under section 17(5)(h), input tax credit shall not be available in respect of goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples and
• Section 73 & 74 are the demand-related provisions under the Act.

Q13. Does the law require an owner/ operator of a warehouse or godowns/ transporter to
maintain books of account?

Ans. Yes, every owner/ operator of warehouse or godowns or any other place used for storage of goods and transporter (whether registered or not) needs to maintain records of cosigner, consignee and other relevant details as under:
1. For Transporter:
   • GSTIN of registered consignor/consignee
   • Goods transported
   • Goods delivered
   • Goods stored in transit by him
2. For owner/ operator of a warehouse or godowns:
    • Accounts related to that period for which goods remain with him
    • Details of dispatch, movement, receipt and disposal of goods

Further, owner/ operator of warehouse or godowns should store the goods in such a way that they can be identified item-wise and owner-wise and shall facilitate any physical verification/ inspection by proper officer on demand.

Q14. Is there any form to be submitted by the owner/ operator of warehouse or godowns or
any other place used for storage of goods and transporter to maintain books as per
section 35?

Ans. Yes, as per Rule 58 the CGST Rules, 2017, owner/ operator of warehouse or godowns or any other place used for storage of goods and transporter, if not already registered is required to submit the details regarding his business electronically on the Common Portal in FORM GST ENR-01, either directly or through a Facilitation Centre notified by the Commissioner and, upon validation of the details furnished, a unique enrollment number shall be generated and communicated to the said person.


Q15. What are the consequences if taxable goods are found in a place other than those
declared without valid documents?

Ans. The proper officer is free to determine the amount of tax payable on such goods as if the goods have been supplied by the registered person.

Q16. Are the books of accounts to be maintained serially?

Ans. Yes.

Q17. Is there any specific set of details to be maintained by a supplier of service?

Ans. Yes. As per Rule 56(13) of the CGST Rules, 2017, a supplier of service is required to maintain quantitative details of goods used in provision of services, details of input services utilized and services supplied.

Q18. Can the entries in the registers be erased?

Ans. No, as per Rule 56(8) of the CGST Rules, 2017, any entry in the register, accounts and documents shall not be erased, effaced or overwritten.

Q19. What shall be the treatment of incorrect entries made in the registers, accounts or
documents?

Ans. As per Rule 56(8) of the CGST Rules, 2017, if incorrect entries (except those of clerical nature) are made in the registers, accounts or documents, they shall be scored out under attestation. Thereafter, the correct entry shall be recorded. Further, where the registers and other documents are maintained electronically, a log of every edited or deleted entry shall be maintained.

Q20. What shall be the consequence if any document, register, or books of accounts
belonging to a registered person are found at any premises other than those mentioned
in the certificate of registration?

Ans. As per Rule 56(10) of the CGST Rules, 2017, unless it is proved otherwise, if any document, register, or books of accounts belonging to a registered person are found at any premises other than those mentioned in the certificate of registration, they shall be presumed to be maintained by the said registered person.

Q21. Is there any specific set of records to be maintained by a person manufacturing goods?

Ans. Yes, as per Rule 56(12) of the CGST Rules, 2017, every registered person manufacturing goods shall maintain monthly production accounts showing quantitative details of
1. Raw materials or services used in the manufacture, and
2. Goods so manufactured including the waste and by products thereof.

Period of retention of accounts (Section 36)

Section 36 of CGST Act, made applicable to IGST vide Section 20 of IGST Act and Section 21 of the UTGST Act

Q22. Is there any time period during which the maintenance of books of accounts and other
records is mandatory?

Ans. Yes, as per section 36, every registered person is required to keep and maintain books of account or other records as prescribed under Section 35(1) and retain them until the expiry of 72 months from the due date for filing of Annual Return for the year pertaining to such accounts and records.

Q23. What is the time period prescribed for maintenance of accounts and records if the
registered person is a party to an appeal or revision?

Ans. A registered person, who is a party to an appeal or revision or any other proceeding before any Appellate Authority or Tribunal or Court, or investigation for an offence under Chapter XIX, shall retain the books of account pertaining to the subject matter of such appeal or revision or proceedings or investigation for a period of one year after final disposal of such appeal or revision or proceedings or investigation, or until the expiry of 72 months from the due date of filing of Annual Return for the year pertaining to such accounts and records, whichever is later.

Q25. For GST accounting which Accounting standard and guidance note is applicable ?

Ans. There is no specific Accounting Standard prescribed for accounting under the GST Regime. Respective Accounting Standards followed in previous regime will continue to be followed for the purpose of accounting under the GST Regime. Further, IDTC of ICAI has also issued an E-book on how to do accounting under the GST Regime. The same may be referred for further details.

Q26. Whether inventory records maintenance is mandatory under GST or only accounting is
sufficient ?

Ans. Every Registered person is required to maintain inventory records in accordance with Section 35 of the CGST Act read with Rule 56 of the CGST Rules. Only accounting for the inventory is not sufficient in the absence of inventory records.

Q 27. Whether Ineligible input and RCM to be debited to respective expenses account or to be
shown separately?

Ans. In cases where the credit either on account of payment made under forward charge or on account of payment made under Reverse charge is identified as ineligible at the time of initial recording of transaction only, the same should be debited to the respective expenses account. However, in case the proportionate credit is disallowed at a later stage for Eg: u/r 42 or 43, the same should be booked as a separate expense as it will not be possible to allocate them to respective expenses head at that stage.

Q28. Who is responsible for the maintenance of proper accounts related to job work?

Ans. The responsibility for the maintenance of proper accounts of job work -related inputs and
capital goods rests with the principal.

Q29. What action can be taken for transportation of goods without valid documents or
attempted to be removed without proper record in books?

Ans. If any person transports any goods or stores any such goods while in transit without the documents prescribed under the Act (i.e. invoice and a declaration) or supplies or stores any goods that have not been recorded in the books or accounts maintained by him, then such goods shall be liable for detention along with any vehicle on which they are being transported. Such goods shall be released only on payment of the applicable tax and penalty or upon furnishing of security.

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MCQ’s on Accounts and Records under Section 35 in GST - GST NEWS


Q1. The books and other records u/s 35 are to be maintained at

(a) Place where the books and accounts are maintained
(b) Place of address of the Proprietor/ Partner/Director/Principal Officer
(c) Principal place of business mentioned in the Certificate of Registration
(d) Any of the above

Ans. (c) Principal place of business mentioned in the Certificate of Registration

Q2. In case, more than one place of business situated within a state specified in the
Registration Certificate, the books and Accounts shall be maintained at

(a) Each place of business pertaining to such place
(b) Place where the books of accounts are maintained for all places situated within a state
(c) At principal place of business covered mentioned in the Registration Certificate for all places of        business in each State
(d) Any of the above

Ans. (a) Each place of business pertaining to such place 

Q3. Accounts are required to be maintained in

(a) Manual form
(b) Electronic form
(c) Manual and electronic form
(d) Manual or electronic form

Ans. (d) Manual or electronic form

Q4. Who among the following, even if not registered, is required to maintain records

(a) Owner or operator of warehouse
(b) Owner or operator of godown
(c) Owner or operator of any other place used for storage of goods
(d) Every transporter
(e) All the above

Ans. (e) All the above

Q5. If a turnover during a financial year exceeds the prescribed limit, then accounts get
audited by

(a) Chartered Accountant
(b) Cost Accountant
(c) Either (a) or (b)
(d) Both (a) and (b)

Ans. (c) Either (a) or (b)


Q6. What accounts and records are required to be maintained by every registered taxable
person at his principal place of business

(a) account of production or manufacture of goods
(b) inward or outward supply of goods and/or services
(c) stock of goods
(d) input tax credit availed
(e) output tax payable and paid
(f) All of the above

Ans. (f) All of the above


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Thursday, December 6, 2018

FAQ’s on GSTR - 9C (ANNUAL RETURN) - GST NEWS

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FAQ’s on GSTR - 9C (ANNUAL RETURN) - GST NEWS
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Wednesday, November 28, 2018

FAQ’s on Form GSTR-9 (Annual Return) - GST NEWS

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FAQ’s on Form GSTR-9 (Annual Return) - GST NEWS
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Tuesday, September 25, 2018

FAQ’s and MCQ’s on GST ( Sept 2018) ICAI - GSTNEWS

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FAQ’s and MCQ’s on GST ( Sept 2018) ICAI - GSTNEWS
As a partner in Nation building, the ICAI has also been taking various initiatives for increasing
awareness among its members, revenue officers and public at large about GST by making
suggestions for smooth GST Implementation, organising certificate course, e-learning,
programmes/workshops, and by releasing monthly e-newsletter, standardized PPT, and new
publications on related areas. One of the efforts in this direction is this revised edition of
“FAQ’s and MCQ’s on GST”. This novel initiative of the Indirect Taxes Committee of ICAI
provides a comprehensive coverage of GST in easy to understand question answer format
which would facilitate to easily comprehend the GST law.

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RFID/FasTag will search vehicles without E-Way Bill - GST NEWS

 RFID/FasTag will search vehicles without E-Way Bill - GST NEWS January  1, 2021, the  government has  built-in  RFID/FasTag with the e-way ...