GSTR-2A is a dynamic auto-drafted statement of input tax credit (ITC). It reflects all the purchases made by a taxpayer during a particular period, as filed by its suppliers. The details appearing in GSTR-2A are auto-populated from the GSTR-1 filed by all the suppliers of a taxpayer. Currently, a taxpayer can download GSTR-2A month-wise only and where there are more than 500 invoices in GSTR-2A.The GST registered businesses must reconcile GSTR-2A and the purchase data to claim the maximum eligible Input Tax Credit (ITC). A taxpayer has to reconcile the downloaded GSTR-2A data with their purchase data manually, which is time-consuming.

Compliance with RCM rules differ under the old and new return system. The reverse charge mechanism (RCM) system of GST charge is applicable for specific services notified under the GST Act. Under the reverse charge mechanism, the recipient has to pay tax but both the supplier and recipient must report RCM supplies.In this article, let's look into how reporting and tax payment for RCM-subject supplies are handled under the existing and new return system.Under the old return filing systemThe supplier has to report invoice-wise sales subject to RCM in his GSTR-1. The supplier has to report the same in table 4B of GSTR-1 (Outward supplies attracting tax on reverse charge basis). The recipient has to report the summary of purchases attracting reverse charge. The recipient has to report in Table 3.1 (D) of GSTR-3B (inward supplies liable to reverse charge).

‘Customs Duty’ refers to the tax imposed on the goods when they are transported across the international borders. The objective behind levying customs duty is to safeguard each nation’s economy, jobs, environment, residents, etc., by regulating the movement of goods, especially prohibited and restrictive goods, in and out of any country.Every good has a predefined rate of duty that is determined based on various factors, including where such good was acquired, where such goods were made, and what these goods is made of. Also, anything that you bring into India for the first time should be declared as per the customs rules. For instance, you need to declare the items purchased in a foreign country and any gifts which you acquire outside India.Latest UpdatesUnion Budget 2025: 1st February 20251. Rationalisation of Customs Tariff and Duty Inversion: Budget 2025 proposed the further reduction of 7 tariff rates, leaving only 8 (including ‘zero’), along with a single cess/surcharge per item.

GSTR-3A is not a return. It is a GST notice sent to the taxpayers registered under GST who fail to file regular returns that they must file monthly, quarterly and annually as notified by the Central Board of Indirect Taxes and Customs (CBIC). Hence, GSTR-3A notice become increasingly important.Who will receive GSTR-3A Notice?GSTR 3A will be issued by the tax authorities to a person not filing the below GST returns:GSTR-3B (regular dealer)GSTR-4 (Composition dealer)GSTR-5 (Non-resident)GSTR-6 (ISD)GSTR-7 (Person liable to deduct TDS)GSTR-8 (Person liable to collect TCS)GSTR-9 (Annual return)GSTR-10 (Final return)What should a taxpayer do after receiving GSTR-3A?On receiving notice in GSTR-3A Notice, the defaulter has to file the return within 15 days from the date of notice along with penalty and late fees.  What will be the applicable penalty & late fees?InterestInterest at 18% per annum has to be paid by the dealer.Interest has to be calculated by the taxpayer on the amount of outstanding tax to be paid.The time period for interest calculation will be from the next day of filing to the date of payment.Late FeesFor annual returnThe Late fee is Rs.200 per day (Rs.100 per day per Act ).The maximum late fee is 0.25% of the taxpayer’s turnover in the state.For other returnsThe Late fee is payable at Rs.100 per day per Act.So the penalty works out to Rs.200 per day (Rs.100 under CGST & Rs.100 under SGST).The maximum penalty that can be levied is Rs.5,000. There is no late fee on IGST. What happens if the dealer still does not file his return?If the dealer still does not file return, provisions of Section 62 will apply. The proper officer will assess the tax according to his best judgment using the information available with the department. He will not issue any further notice before starting the assessment. The penalty will be applicable of Rs.

GSTR-7 is a monthly return filed by individuals who deduct tax at source or TDS under the Goods and Services Tax (GST). Every GST registered individual who deducts TDS under GST must file in Form GSTR-7 by the 10th of next month. The form contains details of TDS deducted, TDS payable, TDS refund, etc.Latest Updates6th May 2025The CBIC has changed GSTR-7 to capture invoice-wise reporting from 1st May 2025, i.e., the return period for April 2025 onwards. The GSTN will soon be implementing the same on the portal. The update is in line with the CGST notification No.

The introduction of Goods and Services Tax (GST) in India has transformed the way industries handle taxation, including the furniture manufacturers. GST is a comprehensive indirect tax that applies to various goods and services, including furniture. Understanding how GST affects furniture manufacturers is crucial for ensuring compliance and optimising tax benefits. In this article, we explore the impact of GST rates on furniture manufacturers, covering the different types of furniture, GST slabs, and their implications.GST Rate for FurnitureThe GST rate for furniture varies depending on the material and type of the product. Furniture items fall under HSN Code 9403, with varying GST rates. Here’s a breakdown of the applicable rates:Type of furnitureGST rateWooden Furniture18%Plastic Furniture12%Metal Furniture18%Bamboo or Cane Furniture12%Upholstered Furniture18%Modular Furniture28%GST Rate Slabs for FurnitureFurniture manufacturers must know the specific GST slabs that apply to their products.

GST brings transparency and develops mutual trust between the Revenue and the taxpayers. Most of the compliance process- return filing, registration, and sometimes even proceedings intend to happen without meeting a tax officer in person! Let us now focus on one of GST’s new tools to achieve its objective-an Invoice Reference Number(IRN).Latest Update4th April, 2025With effect from June 1, 2025, IRP will treat invoice numbers as case-insensitive for IRN generation. All invoice numbers in any format will be converted to uppercase to avoid duplication and ensure consistency.How does IRN help?Under normal circumstances, three sets of invoices are issued as follows:Original for the buyerDuplicate for the transporterTriplicate for the sellerInstead of the above paperwork, a transporter may opt for IRN as it digitizes the revenue process at the check posts. It reduces the waiting time for the transporter at the revenue check post and helps taxing authorities keep track of the goods being transported. There is no risk of losing an invoice if an IRN is generated.What is an Invoice Reference Number (IRN)?An IRN is a number that a GST-registered taxpayer may generate from the e-way bill portal by uploading an invoice in Form GST INV- 01.

Any person making the taxable intra-state supply of goods/services with an annual aggregate turnover of more than Rs 20 lakh (Rs 40 or Rs 10 lakh, as may vary depending upon the supply and state/UT) or undertaking inter-state supply (without any threshold limited) are mandatorily required to obtain GST registration.GST registration number or GST identification Number (GSTIN) is a unique 15-digit number provided by the tax authorities to monitor tax payments and compliances of the registered person. Business needs different sets of documents depending upon the constitution of the business or the type of GST registration that they wish to obtain.Latest Update17th April 2025The CBIC issued instructions to its GST officers in Central Tax Instruction No. 03/2025-GST. It outlines instructions for processing the GST registration applications, emphasising compliance with the document lists, avoiding unwarranted queries and ensuring timely approvals. It also includes guidelines to verify place of business, and physical verification process.12th February 2025The GSTN has released an advisory regarding new Aadhaar and biometric authentication requirements for GST Registration.

The taxpayer has to take sufficient care to enter details at the time of GST registration since it will form a part of his permanent record. There is, however, always a possibility of human error leading to mistakes in entering data. The taxpayer might also receive a notice as a result of such mistakes. However, this should not be a cause for worry. There is an option to clarify registration details as a response to such a notice.Latest Updates17th April, 2025The CBIC has issued new instructions regarding the processing of GST registration applications.

The Aadhaar card is an essential document one must have in recent times. It is a proof of identity and proof of address; mostly, it is a source to identify you as an Indian citizen. If you still don’t have an Aadhaar card, it is high time for you to enrol for one. Procedure to Fill Aadhaar card enrolment formStep 1: Download the Aadhaar enrolment form from the UIDAI website. You can also visit the nearest Aadhaar center to get the form.