Email received from GSTN on Aggregate Turnover under GST – Application and Action points need to taken

Email from GSTN (noreply@gstn.gov.in) – Registered persons whoes Aggregate turnover being more than Rs. 5 Cr during FY 2019-20 has received an email from GST Department (GSTN) 

You may have received an email from GSTN on 04/05th August, 2020 about Aggregate turnover being more than Rs. 5 Cr during FY 2019-20. Here we will discuss few take aways and Action points the registered person under GST needs to take in mind (Sample e-mail received from the GST department has been attached at the end of this article).

The summary and probable explanation of the email is as under –

Aggregate turnover for the financial year 2019-20 has been computed by GST system based on the returns filed in Form GSTR-3B by all registrations on the common PAN which exceeds Rs. 5 Cr. The returns of FY 2019-20 filed upto 25th July, 2020 have been considered for the said computation.

Computation of Aggregate Turnover –

‘Aggregate turnover’, has been computed as per defined u/s 2(6) of the CGST Act, 2017. Same has been computed based Sum of the turnover as declared in GSTR 3B in below tables –

Table 3.1(a) – Outward taxable supplies (other than zero rated, nil rated and exempted)

Table 3.1(b) – Outward taxable supplies (zero rated)

Table 3.1(c) – Other Outward Taxable supplies (Nil rated, exempted); and

Table 3.1(e) – Non-GST Outward Supplies

Methodology of Computation of Aggregate Turnover – Same is computed as per one of the methods-

Option 1 – Sum of the turnover as declared in GSTR 3B filed for all tax periods for 2019-20

Option 2 – Return of a tax period which was due to be filed but has not been filed for any of the GSTINs registered on the common PAN, the turnover of that period has been estimated by way of extrapolation as under

[(Turnover declared/ No. of GSTR-3B filed) * No. GSTR-3B liable to be filed]

Option 3 – The turnover (including extrapolated turnover) of GSTINs has been summed up at PAN level

Relevance/ Application of such Computation:

It is relevant for the registered persons who’s turnover is less then Rs. 5 crore and still they have received the email from the department.

The above turnover will be used for certain validations in the System such as

  1. Determining due date of return filing (20th or 22nd or 24th of subsequent month for GSTR 3B)
  2. Computation of late fee by the system
  3. Reporting interest on delayed payments based on self-assessment basis (based on recent relief announced due to outbreak of Covid -19)

Action Point for registered person: In case of any discrepancy in email provided to you:

If any discrepancy is found in the turnover data based on the computation, as explained above and the actual turnover:

a. the taxpayer may file a grievance at https://selfservice.gstsystem.in for redressal.

b. The taxpayers are advised to upload the below information while raising complaint in following format, which will enable the GSTN team to resolve the same.

Format in which information needs to be shared while raising compliant:

Sample e-mail received from the GST department has been attached at the end of this article:

All about “New Form 26AS” which every tax payer should know about !

What is Form 26AS?

Form 26AS, popularly known as the Tax Passbook is an annual statement in which the details of tax credit against the PAN of the taxpayer are reflected. Various details like

  • TDS/TCS
  • Advance tax/Self assessment tax
  • Refund claims etc

Are generally updated in the form on a Quarterly basis, which shall help the taxpayer in filing the ITR at the end of the year.

What is new about the Form?

The scope of Form 26AS has been enlarged by Finance Act, 2020 in accordance with Rule 114-I and shall be applicable from A.Y.2020-21 (i.e., F.Y. 19-20).

(The new form was effective from 1st June’20.)

It now has a new Section E which mentions specified high-value transactions conducted by an individual during the financial year.

High valued transactions in a F.Y singly / cumulatively include:

  1. Opening FDs/TDs in a bank.(>10lacs) (excl. renewals)
  2. Purchase of pre-paid instruments issued by RBI (>10lacs)
  3. Credit card bills of over 10lac by cheque & over 1lac by cash
  4. Buying Bonds/Debentures (>10 lacs) (excl. the amount recd on renewal of the same)
  5. Investing in Mutual funds (>10lcas) (excluding the transfer between the schemes of that specific MF)
  6. Buy shares* or Buyback of shares (>10lac)
  7. Get bank drafts (>10lacs)
  8. Purchase/Sale of immovable property (>30lacs)
  9. Saving bank a/c deposits. (>10lacs)
  10. Deposit/withdrawal in cash from Current a/c ( >50lacs)
  11. Receipt/Expense in Foreign currency (>10lacs)
  12. Cash Receipt of more than 2lacs in case of sale of goods/services (for which specific reporting is not required).

*includes share application money

How does the new inclusion help the taxpayers?

  • Would help the honest taxpayers to scrutinize their financial information beforehand to ensure an error-free return.

The taxpayers shall now ensure like always that he/she files the Income-tax Return in sync with Form 26AS. In case of any discrepancy, the Dept. shall issue a notice asking for the explanation.

How to access Form 26AS?

  • Through E-filing website >>>  My account  >>>  View Form 26AS (You will be redirected to TRACES website )

Or

  • Through the Net-banking if the account is linked to the PAN.
  • The password for opening the form will be the Date of Birth of the taxpayer. (in DDMMYYYY format)

Note:

  • The Section E shall be mentioned/updated in the Form 26AS of previous years as well.

TDS Rate Chart Income Tax – FY 2020-21

Tax Deducted at Source (TDS) is a mechanism that has been introduced by the Income Tax Department. Under this, the responsible person is supposed to deduct a certain percentage of income as tax before making the payment to the receiver. The payment includes salary, commission, professional fees, interest, rent, etc.

Due to Covid-19 situation, the rates of TDS on payments made to resident Indian has been reduced by 25% for the period starting from 14th May, 2020 to 31st March, 2021. However, there shall be no reduction in rates, where tax is required to be deducted or collected at higher rate due to non-furnishing of PAN/Aadhaar.

Now, let’s have a look at the TDS/TCS Rates applicable for financial year 2020-21 as per Press Release issued by Ministry of Finance dated 13th May, 2020: Read More