Vendors and suppliers are critical stakeholders in any business. They supply raw materials as production inputs and share a part of the business risk as fellow entrepreneurs. Any business owner must learn what it takes to manage vendors and suppliers effectively and follow the best practices of vendor management processes. This article discusses what is vendor management, the process flow, and other essential components of vendor management. What is vendor management? Vendor management is the practice of establishing, nurturing and strengthening business relations with vendors and suppliers with the ultimate aim of mitigating sourcing risks and optimising material and services costs. Under this concept, vendors are categorised as sellers of finished goods  and services, whilesuppliers are sellers of semi-finished or unprocessed raw materials. Vendor management is a multi-stage process, including vendor selection, onboarding, contract management, and performance monitoring.   Importance of vendor managementEffective and efficient vendor management is critically important for every type of business- manufacturing, services, or trading. Lack of an established practice of effective vendor management can cause a company to face several obstacles in its day-to-day business process and over the long term.

GSTN (Goods and Services Tax Network) recently introduced the Invoice Management System (IMS) as an additional layer in the existing reconciliation process in the GST portal on 1 October 2024. Both the GST authority and the indirect taxation experts expect the system to streamline the processes of ITC claims for business and help audit transactions more effectively.  This article discusses the new IMS functionality, explains how it helps users, and how to use the new feature for efficient ITC claims and compliance.  Key features of an Invoice Management SystemThe Invoice Management System or IMS within the GST portal offers several key features that make jobs more accessible for users. These features are:Communication functionality - The IMS improves the communication process between suppliers and their recipients. By providing the recipient with options to eitherAcceptReject orKeep the invoice pending,A recipient user can check invoices instantly once they are saved or filed in GSTR-1/1A/IFF by a supplier and act on the invoice to include it in the ITC claim process.  Single-window operation—Now, taxpayers can track, verify, and act on most invoices (except a few) from different suppliers in a single dashboard, saving a lot of workload. Summary view of invoices—The IMS will offer a consolidated filtered view of all invoices, their current status, and the actions that the recipient has taken on each invoice. For example, suppose the recipient has rejected an invoice.

In the 53rd GST Council meeting, the Council decided on the long-standing demand from traders and manufacturers regarding waiver of interests and penalties u/s 73 for the financial year 2017-18 to 2019-20 and declared an amnesty scheme. As part of the scheme, a new GST form SPL-02 is available at the GST portal. This article discusses everything you must know about the waiver scheme under section 128A and the form SPL-02. What is GST Form SPL-02?SPL-02 is a form within the GST portal for eligible users to apply for a waiver of penalty, interest or both levied by the authority as part of a tax demand u/s 73. However, the GST officer has not passed any revision orders under Sections 107(1) or 108(1) to the appeal against the order, or the appeal is pending in the Tribunal (Section 112) or the High Court (Section 113). Who can file GST Form SPL-02?As per Section 128A(1), the registered users of the following 3 categories are eligible for application for waiver of interests or penalty or both using GST Form SPL-02:A person who received a demand order under Section 73 and had filed an appeal, but the authority has not passed any order on the first appeal u/s 107 of the CGST Act. A person who received an order on his first appeal u/s 107 of the CGST Act but filed a second appeal, and no order has been issued on the second appeal u/s 113 of the CGST Act.A person who first received a demand notice under section 74 of the CGST Act but subsequently had the demand notice reclassified under section 73. GST Form SPL-02 timelineAs per the recent advisory of the GSTN, there are 2 different timelines related to payment as per the tax demand and application submission using SPL-02. Timeline for the payment: The last payment date for the 1st and 2nd categories of users (as discussed in the preceding section of this article) is 31 March 2025. For the 3rd category of users, the last date of payment is the date ending the 6-month period from the date on which the reclassification (u/s 73) order was issued. Timeline for application submission for waiver (the amnesty scheme): The application deadline for the 1st and 2nd category users is 30 June 2025 (three months from 31 March 2025). For reclassification cases (u/s 73), the application deadline is the date ending 6 months from the date of communication of the reclassification order.   Step-by-Step process to file GST Form SPL-02Here is the step-by-step process for applying for a waiver under the amnesty scheme using SPL-02. Step 1: Log into the GST portal. Step 2: Go to the My Application section under the Services tab. (Services > User Services > My Applications). Step 3: Select the ‘‘Apply for Waiver Scheme under Section 128A’ option from the Application Type dropdown menu once the My Application page opens.

The GST portal is a robust yet complex web application with many functionalities and features related to registration, return filing, tax payment, refund claims, and other compliance issues. The portal lists different error codes and solutions to them. Some error messages, like ‘Invalid Summary Payload,’ remain unresolved. Understanding such system-generated error messages is essential to navigating through the portal effectively. This article discusses one of those error messages that many taxpayers may encounter while submitting GSTR-9.  What is the Invalid Summary Payload Error?‘Invalid Summary Error’ is a system-generated error message in the GST portal that taxpayers may encounter while manually uploading a JSON file to the GST portal for GSTR-9 return submission.This error message rarely appears when offline utilities, like Excel-based tools, are used to prepare declarations in JSON format. However, the message may sometimes appear once the taxpayer tries to upload the offline-validated data in JSON format.Causes of the ‘Invalid Summary Payload’ errorA ‘Payload error’ in the JSON data structuring means an existence of syntax error in data.

Filing GST returns is a non-negotiable task for maintaining compliance. If you're filing GSTR-7, as per the GST notification no. 17/2024, returns must now be filed sequentially. This means each period's return must be submitted in order to ensure compliance with this updated rule. You must complete one period and file the next.What is Meant by the Sequential Filing of GST Returns GSTR-7?GSTR-7 is the form you use to report TDS deducted under GST.

Lately, most taxpayers have found themselves having an issue where their GSTR-2B isn't showing up on the GST portal. Leaving them scraping their heads for answers.Background to GSTR-2B Access in November 2024The Invoice Management System (IMS) was launched in October 2024. To ensure that the businesses claim the correct ITC, GSTR-2B is automatically generated depending on the actions taken by the recipient on the supplier's uploaded invoices. This process was expected to become smoother. The hope was to make the system more accessible and convenient for buyers and suppliers to match their invoices.

Initially, GST intended to simplify tax estimation, reporting, claiming input tax credits, and other processes; however, many micro, small, and medium-scale businesses find it challenging to comply with the law and often receive tax demand notices. The most infamous among these notices is the tax demand under Section 74 of the CGST Act. A clear understanding of the legal ramifications under this section is essential for any entrepreneur and company. This article discusses show cause notice under section 74 of the CGST Act, its applicability, consequences and many more. Stay with us.What is Section 74 of the CGST Act? Non-payment of GST, misreporting or erroneous refund and excess appropriation of input tax credit can occur for various reasons, and an appropriate GST officer can issue show cause notices to the respective GSTIN holders. Sections under which show-cause notices can be issued are:Section 63 - For discrepancies in GST return Section 65 - short payment or non-payment detected during an audit Section 35 - failure to record transactions Section 52 - default in collecting tax at the source  However, Section 74 differs from the above sections.

After its introduction in 2017, the GST Act has undergone several rounds of review and reforms to address emerging business realities and reduce the burden of compliance on businesses of all sizes and industries. The decisions and amendments in the 53rd GST Council meeting, held on 22nd June 2024, are the latest additions to the simplification process. This article discusses the newly proposed Section 74A and its differences with erstwhile Sections 73 and 74. Stay with us. What is Section 74A of the CGST Act? Section 74A attempts to standardise the timeframe for issuing notice, tax demand, and penalty relief for any due tax liability irrespective of fraud, wilful misstatement, or suppression of facts. This section is applicable from FY 2024-25 and will supersede Sections 73 and 74. As per the newly introduced Section 74A, a proper GST officer:Can issue tax demand notice on nonpayment, short payment of tax, appropriation of excess tax refund or excess input tax credit, irrespective of an incident of fraud, wilful misstatement and suppression of facts. Cannot issue tax demand notice if the due tax liability is less than ₹1000.   Must issue notice within 42 months from the date of erroneous refund or excess input tax credit or due date of annual return in which suppression of facts, fraud or wilful misstatement occurred.Must submit material evidence to substantiate the claim of fraud, wilful misstatement or suppression of facts. Mere assumption of wrongdoing will not be sufficient to issue notice related to fraud, wilful misstatement or suppression of fact. The penalty structure as per the Section 74A:When not engaged in intentional wrongdoing, the taxpayer will need to pay 10% of the tax due as a penalty or ₹10000, whichever is the maximum. The taxpayer paying the tax due before issuance of the notice can get relief regarding the penalty.  When engaged in fraud, suppression of facts, or wilful misstatement, the taxpayer will need to pay a penalty equivalent to the tax dues.What is Section 73 of the CGST Act?  Section 73 concerns determining tax liability following an incident of nonpayment, short payment of tax, erroneous refund, or excess input tax credit received by a taxpayer.

While most of the country turned to their TV screens to learn about the personal income tax changes in the budget, there have been some benchmark amendments to the GST Act. One such move is the introduction of Section 74A in the GST covering demand. This would replace the current Sections 73 & 74, causing a significant change in how the GST demand procedure is conducted. Let's dive right in to learn about these changes in detail.What is Section 74A of the CGST Act?Section 74A of the CGST Act has been inserted to determine the tax liability and penalty in the following cases:General Cases (Earlier covered by Section 73)Cases containing Fraud, Willful Misstatement or Suppression of Facts (Earlier Covered by Section 74)The penalty is chargeable in both the above cases if:Tax is not paidTax is short-paidTax is erroneously refundedITC (Input Tax Credit is wrongly availed or utilisedChanges in GST Sections 73 and 74Sections 73 & 74 of the CGST Act will continue to determine the demand for cases up to Financial Year 2023-24. So, the new Section 74A of the CGST Act is applicable from the Financial Year 2024-25 onwards.To give you a hint, the most significant changes you will see in Section 74A of the CGST Act compared to Sections 73 & 74 are:New time-frames: The period for issuing notices has been increased to 42 months from 3 years.Proportional Penalties: Penalties have been set depending on the degree of error.

Over 1.73 lakhs of residential units were sold in India in just the first half of the year 2024. But owning a home comes with many challenges. Out of them, figuring out the right GST on flat purchases would probably rank in the top five. Whether you’re a real estate developer or an aspiring homeowner, understanding how GST works on property transactions in India could save you from costly penalties in the due course of time. As an aspiring future house owner, if you want to see yourself there, use this comprehensive guide to quickly understand the GST rates on flat purchases and the concerned guidelines in the easiest possible manner. Let’s get started. What is GST on Property Purchases in India?Thanks to the 2017 tax reforms, GST applies to under-construction properties awaiting a completion certificate or ready for occupancy. Just like buyers, GST benefits developers as well.