Understanding the taxability also involves knowing whether item is exempt or not under GST. Due to the scope of taxable supplies being widened under GST, GST Exemptions have clearly been defined. Not just knowing the Exemption list, but also understanding the implication of item being exempt is important as certain conditions are attached to it like reversing the ITC. Also, what can be Nil rated today may become charged to a higher tax rate in the future.Hence, clearly demarking the various terms such as Nil Rated, Exempt, Zero-rated and Non-GST supplies under GST is important. Read through and get the complete list of all the GST Exemptions notified on services in a click of a button!What is Exempt Supply?Exempt supplies comprise the following three types of supplies:Supplies taxable at a ‘NIL’ rate of tax* (0% tax);Supplies that are wholly or partially exempted from CGST or IGST, by way of a notification amending Section 11 of CGST Act or Section 6 of IGST Act;Non-taxable supplies as defined under Section 2(78) – supplies that are not taxable under the Act (For Example Alcoholic liquor for human consumption.Tax need not be paid on these supplies.

Advertisements play a very important role in the success of every business. It is estimated that Advertising expenditure for the Calendar Year 2018 would be approximately 0.45% of the Indian GDP.Taxability of Advertising Sector pre GSTWith the introduction of Service Tax on all services (other than those covered under negative list) w.e.f July 1, 2012, service tax was applicable on all the aspects of advertising services except the sale of space or time for advertisement in some instances.  Accordingly, the sale of time slots in between programs which are being telecasted on television, the sale of space on hoardings, and such were not liable to tax. However w.e.f October 1, 2014, the negative list was amended to restrict the non-taxability to the sale of space in print media and all the other sale of space/time arrangements were brought under the net of service tax.Advertising Sector under GST and rate of taxesGST is applicable to all modes of advertising including the sale of space in print media   While this leads to an increase in cash outflow, the free flow of credits on the procurement side leads to an overall reduction in the value of advertising.a. GST on advertising through digital media In these transactions, there are two parties involved – the advertiser and the publisher.

A Goods and Services Tax (GST) invoice or a GST bill is a list of goods sent or services provided, along with the amount due for payment. Every registered business under GST must issue an invoice that contains a valid GSTIN, and further show the breakup of Integrated GST, Central GST and State GST. Also, it is important to know the particulars of an invoice and check whether the issued GST invoice is genuine or not.Format of GST invoiceA tax invoice under GST usually has 16 mandatory fields and typically looks like below:How to identify a fake GST invoice?Hence, if any of the vital information required in a GST invoice is missing, it can be a fake invoice. For Example, (i) If a trader issues a GST invoice without GSTIN, it would be considered a fake invoice. (ii) If a business has not been registered under GST but uses a fake GSTIN on the invoice and charges GST, it will also be considered a fake invoice as the tax paid will not get deposited with the government.The image below helps identify the correct format of a GSTIN: A GSTIN is a 15 digit unique code assigned to each taxpayer, which is PAN-based and allocated state-wise.  If there is any change in the structure of this number, it can be easily identified as a fake number. However, just because a GSTIN is mentioned in the correct format does not mean that the GSTIN is valid or belongs to the enterprise issuing the invoice.  This article further discusses how to identify a fake GSTIN and cross-check the tax rates charged on the invoice.How to verify the GSTIN entered on a GST invoice to check whether it is genuine or fake?If a customer finds something suspicious with an invoice, you can easily verify the authenticity of any GSTIN with ClearTax in the following ways:GST Number Search Online – Verify GSTINGSTIN Number Search by NameAlso, one can follow the steps below on the GST portal to check if the GSTIN mentioned on the invoice is correct:Step 1: Go to https://www.gst.gov.in and click on ‘Search Taxpayer’ and ‘Search by GSTIN/UIN’ Step 2:  Input the GSTIN and then click ‘Search’.

It is not possible to revise GSTR-3B  once it is filed.However, the Government has allowed 'Reset GSTR 3B' through which the status of 'Submitted' will be changed to 'Yet to be Filed', and all the details filled in the return will be available for editing. All the entries posted in the Electronic Liability Register will be deleted, and the ITC of this return integrated with the Electronic Credit Ledger will be reversed. This option can be availed only once.Let’s see how it is to be done:Steps to Revise GSTR-3BStep 1: Log in to the GST portal and go to the RETURN DASHBOARDStep 2: Select the year and the month for which you want to reset GSTR-3BStep 3: Click on Prepare OnlineStep 4: Since you have already submitted the return, the option to 'Reset GSTR 3B' will be activatedStep 5: Click on ‘Reset GSTR 3B’Step 6: Click on ‘Yes’ and ‘OKNow that you have reset the return and status changed to ‘Yet to be filed’ make changes to return and submit again. Note: Details provided in the return will not be changed only status changes.Features Of Reset GSTR-3B OptionThis option to correct /alter data can be used only before filing the GSTR-3B. Hence, once filed, GSTR-3B cannot be revised.The details provided in the return will not be changed; only the status will be changed.Remember, you can reset the return only once.Other options / checksYou may click 'PREVIEW' to view the entire form before submitting the return.After reviewing, if you find errors or need to make changes, you can go to the tiles and edit the figures.On clicking 'INITIATE FILING', a tax summary screen pops up.

GST rates for restaurants have been a matter of a lot of discussions and the rates on the same have undergone a series of change at 28th GST Council meeting. In this write up we will give a picture of the tax options available for restaurants under GST:Latest Updates6th February 2023Composition taxable persons and those interested to opt into the scheme for FY 2023-24 can do so by submitting a declaration on the GST portal in Form CMP-02 by 31st March 2023.5th July 2022(a) The due date of GSTR-4 for FY 2021-22 is further extended by a late fee waiver up to 28th July 2022 vide Notification 12/2022 dated 5th July 2022. (b) The due date of CMP-08 for April-June 2022 is extended up to 31st July 2022 vide Notification 12/2022 dated 5th July 2022.GST rates on restaurant bills (with effect from 01/2019)S NoType of RestaurantsGST Rate1Railways/IRCTC5% without ITC2Standalone restaurants5% without ITC3Standalone outdoor catering services5% without ITC4Restaurants within hotels (Where room tariff is less than Rs 7,500)5% without ITC5Normal/composite outdoor catering within hotels (Where room tariff is less than Rs 7,500)5% without ITC6Restaurants within hotels* (Where room tariff is more than or equal to Rs 7,500)18% with ITC7Normal/composite outdoor catering within hotels* (Where room tariff is more than or equal to Rs 7,500)18% with ITC*This covers individuals supplying catering or other services in hotels (having room tariff of Rs 7,500 or more) and not any hotel accommodation services.GST composition scheme rules for restaurantsRestaurants are required to pay GST at a concessional rate of 5% on the turnover under the composition scheme subject to the following restrictionsTurnover not to exceed Rs 1.5 Crores (Rs 1 Crore in case of special category States)Should not be engaged in any services other than a restaurant (special exception carved out for services like interest and exempt services)Restaurants cannot make interstate outward supply of goodsCannot supply any items not taxable under GST such as alcohol.They cannot supply goods through an e-commerce operatorRestaurants cannot avail any input tax creditThey cannot collect taxes from the customerComposition Taxable Person v/s Regular TaxpayerParticularsComposition Taxable PersonRegular Tax PayerRegistrationThreshold limit – Rs. 1.5 CrThreshold limit – Rs. 20LTerritory of BusinessLimited to Intra-State SupplyNo restriction on supplySwitch from Regular to Composition or Vice versaOnce crosses the limit, compulsory registration under regular provisionsCompliance procedure is highInput tax creditNot entitled to avail the creditDepends on the categoryBusiness through e-commerceCannot supply goods through e-commerceCan supply goods through e-commerceTax collectionCannot collect tax from the buyerAllowed to collect tax from the buyerTax invoiceCan raise Bill of Supply instead of Tax invoice for outward supplyCan raise a tax invoice for outward supplyGST returnsAnnual – Only GSTR 4Quarterly - CMP-08 challanMonthly – GSTR 1 & GSTR 3BIdentify restaurant under composition schemeRestaurants opting for the composition scheme must mention the words “composition taxable person, not eligible to collect tax on supplies” on the top of the bill of supply.They must also mention the words ‘composition taxable person’ on every notice or signboard prominently displayed at their place of business.Benefits to restaurants under GSTCompliance requirement under one law instead of multiple lawsExcise on the manufacture of pastries, service tax on accommodation and restaurant, VAT on restaurant, luxury tax on renting of rooms and entertainment tax on ticket events.  Credit of GST paid on procurementsEntry Tax paid on machinery, CST on interstate purchases and excise paid on procurement of furniture and packaged foods were not allowed as credit to restaurant owners.

The Government introduced the composition scheme to assist small taxpayers and reduce the compliance burden.  A dealer under composition scheme is required to maintain fewer records/books of accounts and not required to file monthly returns. Earlier, the scheme was available to only the suppliers of goods. However, in the 32nd GST Council Meeting, it has been announced that the scheme will now be available to service providers too. The scheme for service providers is available from  1 April 2019 . The article details out the conditions to opt into the scheme by service providers.Latest Updates:6th February 2023Composition taxable persons and those interested to opt into the scheme for FY 2023-24 can do so by submitting a declaration on the GST portal in Form CMP-02 by 31st March 2023.5th July 2022(a) The due date of GSTR-4 for FY 2021-22 is further extended by a late fee waiver up to 28th July 2022 vide Notification 12/2022 dated 5th July 2022. (b) The due date of CMP-08 for April-June 2022 is extended up to 31st July 2022 vide Notification 12/2022 dated 5th July 2022. 26th May 2022As per the CGST Notification no.7/2022 dated 26th May 2022, the late fee has been waived for the delay in filing GSTR-4 for FY 2021-22, if it is filed between 1st May and 30th June 2022. 24th February 2022Composition taxable persons and those interested to opt into the scheme for FY 2022-23 must submit a declaration on the GST portal in Form CMP-02 by 31st March 2022. 28th May 2021As per the outcome of the 43rd GST Council meeting and CBIC notification, (1) Interest relief has been provided for filing of CMP-08 for Jan-March 2021 quarter as per which, for any delay, interest is not charged until 3rd May, whereas 9% of reduced interest will be charged if filing is done thereafter until 17th June, and 18% later on.(2) The due date to file GSTR-4 for FY 2020-21 is extended up to 31st July 2021.(3) The maximum late fee for GSTR-4 that can be charged will be restricted to Rs.500 per return for nil filing and Rs. 2000 for other than nil filing.1st May 2021(1) The due date to file GSTR-4 for FY 2020-21 was extended from 30th April 2021 to 31st May 2021.(2) Form CMP-08 that was due by 18th April 2021 for January-March 2021 has been given a relaxation in the interest charges.

GSTR-4 is a return that must be filed by the taxpayers opting for Composition Scheme on an annual basis. Until the FY 2018-19, the return was filed every quarter which got replaced by CMP-08.Latest Updates10th July 2024In the 53rd GST Council meeting, the Council recommended that the deadline to file GSTR-4 for a financial year will be extended from 30th April to 30th June of the succeeding financial year from FY 2024-25 onwards. This change was notified in the CGST Notification 12/2024 dated 10th July 2024.What is GSTR-4?GSTR-4 is the annual GST Return that has to be filed by a composition dealer. Unlike a regular taxpayer who is required to furnish 2 monthly returns and an annual return (with certain exemptions), a dealer opting for the composition scheme is required to furnish one return every quarter in Form CMP-08 and Form GSTR 4 once a year by the 30th day of April, following the financial year.GSTR-4 due dateGSTR-4 is required to be filed on an annual basis.The due date for filing GSTR-4 is 30th of April following the relevant financial year*. For example, the GSTR-4 for FY 2023-24 was due by 30th April 2024. Until the FY 2018-19, the due date was 18th of the month following the end of the quarter.However, in the 53rd GST Council meeting, the Council recommended that the deadline to file GSTR-4 for a financial year will be extended from 30th April to 30th June of the succeeding financial year from FY 2024-25 onwards.

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 Updates23rd July 2024In the Union Budget 2024, the Finance Minister proposed an amendment to Section 39 to mandate filing of returns by TDS deductors for every month, even if no deductions are made during the said month, and also to provide for an enabling clause for prescribing the time limit for filing such returns.*This will come into force once notified by the CBIC.22nd June 2024In the 53rd GST Council meeting, the Council recommended that the GSTR-7 return is to be filed by all eligible taxpayers every month, irrespective of whether any tax has been deducted during the said month. It was also recommended that no late fee may be payable for delayed filing of Form GSTR-7. Further, invoice-wise details may be required to be furnished in the said FORM GSTR-7 return.

Over the last few years, ClearTax has processed lakhs of invoices and helped thousands of businesses successfully file their GSTR-1. We also learnt that a JSON error might occur when uploading invoices to the GSTN portal. To make filing easier for the community of businesses and CAs, we have created a handy document with the known JSON errors faced by users, what each error means and their solutions. This article should also help you when you file future returns.Are you facing JSON errors while uploading invoices to the government portal while filing GSTR-1? While uploading your return through ClearTax, we provide you with an option to validate your invoices; through this validation, any invoice which bears any error will be summarized and presented to you in a downloadable report.Let’s understand each step in detailClick on ‘Validate data before Upload’A report will be downloaded on your computerAs you open this report, you will notice that it contains a list of all invoices which bear any error along with exact details of the errorThe invoices are segregated according to their nature of supplyAll errors are explained, along with appropriate action to be taken to rectify the error and the associated invoiceYou must rectify the error and again click on ‘Validate data before Upload’. Once the report has nil errors, you can proceed with uploading your dataIf you are facing JSON errors while uploading directly on the GST portal, read below for a complete explanation of each error and the solution to each error.Common JSON Errors in GSTR-1 Filing and Their SolutionsRead below for a detailed explanation of each error along with its respective solution:Error numberError descriptionExplanation of Errors & SolutionsRET191106Error in Json structure validationYour GSTIN mentioned in CT GST is wrongModify the GSTIN mentioned in CT GSTYour GSTIN mentioned in CT GST is rightReach out to gst-json-errors@cleartax.inRET191113The GSTIN is invalid.

GSTR-3A is not a return. The taxpayers registered under GST must file monthly, quarterly and annual returns as notified by the Central Board of Indirect Taxes and Customs (CBIC). The GST authorities will issue a notice in the form GSTR-3A to taxpayers who have not filed their GST returns.Who will receive GSTR-3A Notice?GSTR 3A will be issued by the tax authorities to a person not filing: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.