You might be well aware of businesses that tend to “save their money” by reducing the amount of taxes to be paid. Well, many times, it’s not in a legal way. Also, some businesses commit fraud by money laundering. This was an issue of concern for the government.Hence, the government decided to integrate the GSTN with the PMLA Act to ensure transparency. The following blog covers every aspect of this integration, making it easier for you to understand.What is the GSTN?The GSTN is an online platform for managing GST-related tasks in India, where businesses can file and pay taxes, handle notices, apply for refunds, and monitor their tax information online, simplifying tax management.What is PMLA?The PMLA aims to prevent illegal financial activities by monitoring businesses to ensure they're not laundering money, which involves making illegally obtained funds appear legal to evade legal consequences.This money might be earned from illegal activities like smuggling, fraud, creation of shell companies, and fake invoicing, amongst other sources. Under PMLA, banks and other financial organisations must keep a close watch on large money transactions.

e-Invoicing or electronic invoicing is a system introduced under GST.  Applicable taxpayers must report B2B invoices to the Invoice Registration Portal (IRP) and get it verified by the GSTN. In return, they receive a unique Invoice Reference Number (IRN) and signed QR code. The e-Invoicing system was implemented from 1st October 2020 for taxpayers with an aggregate turnover exceeding Rs.500 crore. e-Invoicing was extended to businesses with an aggregate turnover exceeding Rs.100 crore from 1st January 2021. On 8th March 2021, the CBIC also notified the applicability of the e-invoicing system from 1st April 2021 for businesses with total turnover ranging between Rs.50 crore to Rs.100 crore.

Forward charge mechanism and reverse charge mechanism are two methods of collecting goods and services tax. However, there are several differences between the two mechanisms. In this article, we will take a look at the forward charge mechanism in GST and reverse charge mechanism in GST and explore the differences between forward charge and reverse charge.What is forward charge mechanism in GST?Forward charge mechanism is also referred to as normal charge mechanism or forward mechanism. The supplier has the liability to pay tax under forward charge. The process of collecting and remitting GST under forward charge is entrusted to the supplier.

Goods and Services Tax (GST) has changed the way taxes are assessed and collected in India. The implementation of the forward charge mechanism, which places the responsibility of collecting and remitting the tax on the supplier, is one of the key aspects of the GST system. In this article, we will understand what the forward charge mechanism under GST is and explore the applicability and advantages of the forward charge mechanism. What is the forward charge mechanism in GST?FCM full form in GST is forward charge mechanism and represents a mechanism where the responsibility of collecting tax and remitting it to the government is on the suppliers of the goods and services. Under this system, the recipients are relieved from the burden of direct tax payment, which makes it easy to comply with the GST regulations.Applicability of FCM in various GST scenariosApplicability of FCM in various scenarios involves specific groups of taxpayers, including regular taxpayers, casual taxable persons, non-resident taxable persons, and those under the GST composition scheme. For example, if someone organises a one-time event (casual taxable person), FCM makes sure they are responsible for paying taxes related to that event. Similarly, for someone temporarily doing business in the country (non-resident taxable person), FCM simplifies the tax process.

The Finance Bill 2022 introduced a new section in the Central Goods and Services Tax (CGST) Act, 2017 by way of substituting the existing Section 38. The revised Section 38 was proposed in a bid to further tighten input tax credit (ITC) claims, owing to the extent of ITC fraud that takes place by way of fake entities and fake invoices. The provisions of this section will also help avoid any matters of litigations in the court of law.The revised Section 38 has not yet been passed by parliament nor notified for taxpayers at the moment. However, it could become part of the GST law in the months to come. Let’s decode the new Section 38 and find out how it will impact the ITC claims of a business.How does the existing Section 38 govern ITC claims?The existing Section 38 of the CGST Act is titled ‘Furnishing details of inward supplies’. It governed the furnishing of details of outward supplies (i.e.

All registered taxpayers under GST are required to file an annual return in Form GSTR-9 irrespective of the turnover of an entity. Filing GSTR-1 and GSTR-3B is mandatory before filing the annual return. The annual return is a compilation of data filled in GSTR-1 and GSTR-3B.Even if a taxpayer identifies that certain data is incorrect in GSTR-1/GSTR-3B, the same cannot be corrected in GSTR-9. The intent of the form is just the aggregation of data and not rectification. However, the books of accounts of an entity should be in line with the returns filed.

While registering on the e-way bill portal, businesses are provided with a User ID, and they can set their password to access the portal. However, there might be a case when businesses forget their e-way bill password or don't know how to reset the e-way bill password. In this article, we will discuss the 'e-way bill forgot password' problem, provide you with the steps on how to generate an e-way bill user ID and password, look at the e-way bill password format, and how to change the password in the e-way bill.How to know the e-way bill password?If you have no idea on how to know the e-way bill password, there is an option to access the credentials on the portal. You can click on the ‘Forgot Password’ option, and you will receive an OTP. Once you enter the OTP in the required field, you will be able to know your e-way bill password.How to generate an e-way bill user ID and password?For registered transporters To learn how to generate an e-way bill user ID and password, you are required to follow these steps for a seamless process:Step 1: First, visit the e-way bill portal.

Since GST came into effect, there have been several disputes regarding its implementation, rates, refunds, etc. Also, due to the lack of specialised branches, all the GST-related matters were being referred to High Courts, for which the taxpayers faced many challenges. To address these issues, the GST Council approved the formation of the GST Appellate Tribunals or GSTATs. In this article, we discuss what the GST Appellate Tribunal is, understand the GST Appellate Tribunal members' eligibility and age requirements, look at the procedure for application to the Appellate Tribunal under GST, and cover other important details. What is the GST Appellate Tribunal?It is important to understand what the GST Appellate Tribunal means before delving into other details. The GST Appellate Tribunal represents a specialised authority formed to resolve GST-related disputes at the appellate level. It will be the forum of second appeal under GST laws and is the first common forum of dispute resolution between the Centre and the states.

There is no particular definition for a cross charge as per the GST Act. Ideally, when the supply of goods between distinct persons is invoiced, it is called a cross charge.What are cross-charge transactions?As per the provisions of the CGST Act, the tax will be imposed on the supply of goods and services without consideration amongst distinct persons.  Where two business units have obtained different registrations under GST, they will be considered distinct entities/persons. Where there is a supply of goods and services that has taken place between two branches of the same business located in two separate states, it comes under the purview of GST. This is because GST is a destination-based tax. Hence, every such supply between distinct persons will result in cross-charge transactions.Where a business entity has multiple places of business registered under the same PAN, it is likely the set-up will be on the lines of the Head Office handling admin work, maintenance of accounts and IT systems and other operations for all the units present in India.

In July 2022, the government made certain changes to the format of the GSTR-3B return, notably changing the procedure for reporting data in Table 3 and Table 4 of the form. The changes were first announced in July via Notification No. 14/2022 – Central Tax, and thereafter, in September, the GSTN released the format for reporting data in Table 4 of the GSTR-3B. The new format of Table 4 of the GSTR-3B has now been updated to include a more detailed split of input tax credit (ITC) that is eligible and ineligible, restricted, reversed and reclaimed, along with other similar ITC information. In this article, we discuss the new changes to the Table 4 format and how taxpayers need to report their ITC in the GSTR-3B going forward.Contents of Table 4 of GSTR-3B and Applicability Table 4 of the GSTR-3B return contains the break-up of all ITC-related information for a particular return period. This includes ITC available on the import of goods and services, capital goods, inward supplies liable to reverse charge, ITC distributed by an Input Service Distributor (ISD), etc.