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Annapoorna

Assistant Manager - Content

I preach the words, “Learning never exhausts the mind.” An aspiring CA and a passionate content writer having 4+ years of hands-on experience in deciphering jargon in Indian GST, Income Tax, off late also into the much larger Indian finance ecosystem, I love curating content in various forms to the interest of tax professionals, and enterprises, both big and small. While not writing, you can catch me singing Shāstriya Sangeetha and tuning my violin ;)

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The latest articles by Annapoorna


GSTR 2A: Details, Due Date, Return Filing, Format
Updated on Mar 28th, 2024 | 13 min read

GSTR-2A is an automatic return generated for a taxpayer from his seller’s GSTR-1. Latest Updates on GSTR-2A1st February 2022Budget 2022 updates-1. ITC cannot be claimed if it is restricted in GSTR-2B available under Section 38.2. Time limit to claim ITC on invoices or debit notes of a financial year is revised to earlier of two dates. Firstly, 30th November of the following year or secondly, the date of filing annual returns.3. Section 38 is completely revamped as ‘Communication of details of inward supplies and input tax credit’ in line with the Form GSTR-2B.


Inverted Duty Structure under GST
Updated on Mar 28th, 2024 | 8 min read

Inverted tax structure simply refers to a condition where the tax rate on inputs used is higher than the tax rate on the outputs for sale. The condition may not be prevalent for all industries. The article throws light on the concept and compliance involved.Inverted tax structure in the pre-GST regimeIn the pre-GST regime, a situation of an inverted duty structure arose in cases where import duty on raw materials that were used in the production of finished goods was higher than the import duty on finished goods itself. An example which shows a case of Inverted Duty Structure:Duty on the import of tyres (Finished Good) = 10%Duty on the imports of natural rubber (Raw Material) = 20%Other Examples:ProductsImport duty onFinished GoodsRaw MaterialsFinished GoodsRaw MaterialsSolar ModulesComponents for Solar ModulesNil5-10%SeaweedAgar10%30%Dehydrated culture mediaMicroorganism10%30%Electrical TransformerSteel Tubes7.50%10%Railway locomotivesComponents5%18-28%Inverted tax structure under the GST regimeThe term ‘Inverted Tax Structure’ refers to a situation where the rate of tax on inputs purchased (i.e.GST rate paid on inputs received) is more than the rate of tax on outward supplies (i.e. GST rate payable on sales).ProductsGST onFinished Goods (Output)Raw Materials (Input)Finished GoodsRaw MaterialsFabric BagNon-Woven Fabric5%12%Refund in case of inverted tax structure under GSTA registered person may claim a refund of unutilised Input Tax Credit (ITC). The ITC on account of inverted tax structure can be claimed at the end of any tax period where the credit has accumulated on account of the rate of tax on inputs being higher than the rate of tax on output supplies.


ITC Rules for Capital Goods under GST
Updated on Mar 28th, 2024 | 10 min read

Businesses use many capital goods for their operations. It is to be noted that tax paid on these capital goods can be availed as input tax credit. This article explains all about ITC rules for capital goods.Latest Update1st February 2022Budget 2022 updates-1. ITC cannot be claimed if it is restricted in GSTR-2B available under Section 38.2. Time limit to claim ITC on invoices or debit notes of a financial year is revised to earlier of two dates.


FAQs on the Real Estate Sector under GST
Updated on Mar 28th, 2024 | 12 min read

Real estate is an important pillar of the Indian economy. Under the earlier tax regime, various taxes like VAT, service tax, stamp duty, and registration charges were paid by the buyers. However, under GST a single rate of 12% is applicable on under construction properties whereas no GST is applicable on completed or ready to sale properties only if the Completion Certificate (CC) has been issued. In March 2019, the GST Council cut the tax rates to 5% from 12% on residential properties and 1% from 8% for the affordable housing segment. However, ITC benefits will not be available under the new tax rate policy.  Frequently asked questions - GST on real estate1. What are the new GST rates on the construction of residential apartments?Below are the new tax rates without ITC for housing projects applicable w.e.f 1st April 2019.RateDescription1%New affordable housing projects commenced on or after 01.04.20191%Ongoing affordable housing projects as of 01.04.2019 (when the promoter opted for new rates)5%Ongoing projects other than affordable housing projects as of 01.04.20195%New projects other than affordable housing projects commenced on or after 01.04.20191%Projects with commercial space < 15% of total carpet areaConditions to be satisfied for availing of the above rates:Input tax credit claim: ITC cannot be claimed. Purchase of inputs from registered persons: At least 80% of the total value of inputs and input services should be purchased from registered suppliers.However, the value of the following services used in the construction of residential apartments are excluded from this calculation:Grant of developmental rightsLong term lease of landFloor space indexValue of electricityValue of high-speed dieselMotor spirit and natural gasThe promoter should pay GST at 18% on a reverse charge basis on all such inward supplies to the extent short of 80% of inward supplies from registered suppliers except cement on which tax has to be paid at 28% (if purchased from unregistered persons).2. What is a residential real estate project?A Real Estate Project in which the carpet area of the commercial space is not more than 15% of the total carpet area of all apartments in the project.3.


Form CMP-08: Statement Filing Procedure, Due Date, Penalty and Other Pointers
Updated on Mar 27th, 2024 | 6 min read

In April 2019, a new tax payment process was laid down for composition dealers to simplify compliance for them. Form CMP-08 was introduced in April 2019 and was made applicable from FY 2019-2020 onwards. It replaces the erstwhile quarterly GSTR-4 filed by composition dealers.What is Form CMP-08?A composition dealer will use the Form CMP-08, which is a special statement-cum-challan to declare the details or summary of their self-assessed tax payable for a given quarter. It also acts as a challan for making payment of tax. A composition dealer is a dealer who has been registered under the composition scheme laid down for both supply of goods and services. In addition to Form CMP-08, a composition dealer will also need to file his/her annual return via the revised format of Form GSTR-4 by the 30th of April following the end of a financial year.Who should file CMP-08?A taxpayer who has opted for the composition scheme has to file CMP-08 in order to deposit payments every quarter.


GST Amnesty Scheme
Updated on Mar 27th, 2024 | 11 min read

The GST Amnesty Scheme was introduced by the government to provide relief to taxpayers who missed filing GSTR-3B for the previous tax periods. In this article, get complete details of the applicability, benefit, and working of this scheme with the latest updates. Also, learn about the late fee relief, the issues that were unresolved and possible solutions.Updates on Amnesty Scheme31st March 2023All the amnesty schemes recommended by the GST Council at the 49th GST Council meeting shall be in force between 1st April 2023 to 30th June 2023 by CGST notifications dated 31st March 2023.18th February 202349th GST Council meeting-1. Amnesty scheme 1: For pending returns in GSTR-4, GSTR-9 and GSTR-10. This scheme comes with a conditional waiver/ reduction of late fees.2.


GSTR-1 – Return Filing, Format, Eligibility & Rules
Updated on Mar 27th, 2024 | 17 min read

GSTR-1 is a monthly/quarterly return that summarises all sales (outward supplies) of a taxpayer. You must make sure that a valid GSTIN is filled while entering sales invoice details. Basics of GSTR-1What is GSTR-1?GSTR-1 is a monthly or quarterly return that should be filed by every registered GST taxpayer, except a few as given in further sections. It contains details of all outward supplies i.e sales. The return has a total of 13 sections, listed down as follows:Tables 1, 2 & 3: GSTIN, legal and trade names, and aggregate turnover in the previous yearTable 4: Taxable outward supplies to registered persons (including UIN-holders) excluding zero-rated supplies and deemed exportsTable 5: Taxable outward inter-state supplies to unregistered persons where the invoice value is more than Rs.2.5 lakhTable 6: Zero-rated supplies as well as deemed exportsTable 7: Taxable supplies to unregistered persons other than the supplies covered in table 5 (net of debit notes and credit notes)Table 8: Outward supplies that are nil rated, exempted and non-GST in natureTable 9: Amendments to outward supplies that are taxable and reported in table 4,5 & 6 of the earlier tax periods’ GSTR-1 return (including debit notes, credit notes, refund vouchers issued during the current period)Table 10: Debit note and credit note issued to unregistered personTable 11: Details of advances received or adjusted in the current tax period or amendments of the information reported in the earlier tax period.Table 12: Outward supplies summary based on HSN codesTable 13: Documents issued during the period.Table 14: For suppliers - Reporting ECO operators' GSTIN-wise sales through e-commerce operators on which e-commerce operators are liable to collect TCS u/s 52 or liable to pay tax u/s 9(5) of the CGST ActTable 14A: For suppliers - Amendments to Table 14Table 15: For e-commerce operators - Reporting both B2B and B2C, suppliers' GSTIN-wise sales through e-commerce operators on which e-commerce operator must deposit TCS u/s 9(5) of the CGST ActTable 15A: For e-commerce operators -Table 15A I - Amendments to Table 15 for sales to GST registered persons (B2B)Table 15A II - Amendments to Table 15 for sales to unregistered persons (B2C)When is GSTR-1 due?The due dates for GSTR-1 are based on your aggregate turnover. Businesses with sales of up to Rs.5 crore have an option to file quarterly returns under the QRMP scheme and are due by the 13th of the month following the relevant quarter.Whereas, those taxpayers who do not opt for the QRMP scheme or have a total turnover above Rs.5 crore must file the return every month on or before the 11th of the next month.For businesses with turnoverMonth/QuarterDue DateMore than Rs.5 crore Jan 202411th Feb 2024 Feb 202411th Mar 2024 Mar 202411th Apr 2024 Apr 202411th May 2024 May 202411th Jun 2024 Jun 202411th Jul 2024 Jul 202411th Aug 2024 Aug 202411th Sept 2024 Sept 202411th Oct 2024 Oct 202411th Nov 2024 Nov 202411th Dec 2024 Dec 202411th Jan 2025 Jan 202511th Feb 2025 Feb 202511th Mar 2025 Mar 202511th Apr 2025Turnover up to Rs.5 crore (QRMP Scheme)Oct-Dec 202313th Jan 2024 Jan-Mar 202413th Apr 2024 Apr-Jun 202413th Jul 2024 Jul-Sept 202413th Oct 2024 Oct-Dec 202413th Jan 2025 Jan-Mar 202513th Apr 2025Note: Taxpayers cannot file GSTR-1 beyond three years from the relevant due date of such GSTR-1 for a tax period as per amendment to Section 37 of the CGST Act.Who should file GSTR-1?Every registered person is required to file GSTR-1 irrespective of whether there are any transactions during the period or not. For nil GSTR-1 filers, there is a facility to file through an SMS that began from the 1st week of July 2020.


What is Annual Aggregate Turnover (AATO) Under GST & How to Calculate It?
Updated on Mar 26th, 2024 | 8 min read

The term Annual Aggregate Turnover (AATO) is introduced under Goods and Services Tax (GST) law. AATO means the annual turnover of a business at PAN level with a few inclusions and exclusions. Also, a business whose aggregate turnover in a financial year exceeds Rs.40 lakhs (or Rs.20 lakh for special category states, Puducherry, and Telangana) has to mandatorily register under GST. For service providers, this limit is Rs.20 lakhs (for normal category states) and Rs.10 lakh (for special category states).  This article explains the meaning of annual aggregate turnover, its purpose, components, how to calculate, and turnover in state.Latest Updates21st December 2021From 1st January 2022, CBIC made the Aadhaar authentication mandatory to apply for revocation of cancelled GST registration under the CGST Rule 23 in REG-21.What is Annual Aggregate Turnover (AATO) under GST?The aggregate turnover computed for the entire financial year between April of a year up to March of next year is called annual aggregate turnover.As per GST law, “aggregate turnover” refers to the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on Reverse Charge Mechanism (RCM) basis), exempt supplies, exports of goods or services or both and inter-state supplies of persons having the same Permanent Account Number (PAN) computed on an all-India basis.What is the purpose of calculating AATO?The annual aggregate turnover at PAN level is required to check the: Threshold limit for GST registrationEligibility for the composition schemeWhat are the components of Annual Aggregate Turnover (AATO)?AATO under GST is the total turnover calculated at a PAN level (all GSTINs put together).


What is e-Invoicing Under GST? Applicability, Limit & Implementation Date
Updated on Mar 22nd, 2024 | 20 min read

e-Invoicing under GST denotes electronic invoicing defined by the GST law. Just like how a GST-registered business uses an e-way bill while transporting goods from one place to another. Similarly, certain notified GST-registered businesses must generate e invoice for Business-to-Business (B2B) transactions.Clear is officially GSTN-approved IRP. More than 3,000 large enterprises trust the Clear e-Invoicing solution for unified e-invoicing and e-way bill compliance journey. We provide the best-in-class e-invoicing solution for businesses of any scale and industry.


Quarterly Return Filing and Monthly Payment of Taxes (QRMP) Scheme under GST
Updated on Mar 11th, 2024 | 14 min read

The Central Board of Indirect Taxes & Customs (CBIC) introduced Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme under Goods and Services Tax (GST) to help small taxpayers whose turnover is less than Rs.5 crores. The QRMP scheme allows the taxpayers to file GSTR-3B on a quarterly basis and pay tax every month.Clear GST software has an in-built solution to help you finish this task easily. Tax professionals or businesses can easily upload a CSV file format containing the list of GSTINs and the selected filing frequency either ‘monthly’ or ‘quarterly’. The same will get updated on the GST portal within a few seconds!For a complete feature set on Clear GST software for complying under the QRMP scheme, read through the further sections here.Latest Updates on QRMP scheme26th August 2021From 1st September 2021, taxpayers will not be able to file GSTR-1 or use the IFF for August 2021 on the GST portal if they have pending GSTR-3B filings. It applies if GSTR-3B is pending for the past two months till July 2021 (monthly filer) or for the last quarter ending 30th June 2021 (quarterly filer), as per CGST Rule 59(6). 28th May 2021At the 43rd GST Council meeting, the following was announced:(1) The time limit to furnish B2B supplies on the IFF (optional facility for the taxpayers opting into the QRMP scheme), for May 2021 has been extended from 13th June to 28th June 2021. (2) For any delayed submission of PMT-06 for April 2021 and May 2021, interest relief has been provided as follows:(i) For April 2021, No interest is charged for delayed submission up to 9th June, whereas 9% of reduced interest is charged between 10th June and 9th July, and 18% of interest is charged thereafter.(ii) For May 2021, No interest is charged for delayed submission up to 10th July, whereas 9% of reduced interest is charged between 11th and 25th July, and 18% of interest is charged thereafter.(3) Quarterly GSTR-3B filing for Jan-Mar 2021 has also got interest and late fee relief as laid down here.1st May 2021The time limit to furnish B2B supplies on the IFF (optional facility for the taxpayers opting into the QRMP scheme), for April 2021 has been extended from 13th May to 28th May 2021.Who is eligible for the QRMP scheme?A registered person who is required to furnish a return in GSTR-3B, and who has an aggregate turnover of up to Rs.5 crore in the preceding financial year, is eligible for the QRMP Scheme.


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