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*Frequently Asked Questions (FAQs) on GSTR-3B:*

*Q1: Why am I supposed to fill GSTR-3B?*

A: GSTR-3B is to be filed in lieu of GSTR-3. Here it has been notified as of now that GTSR-3B has to be filed for the month of JUL & AUG. GSTR-3B has to be most probably filed in those cases where GSTR3 cannot be filed.

*Q2: In the previous answer it is mentioned GSTR-3B has to be filed where GSTR-3 cannot be filed, what does that mean?*

A: For the months of JUL & AUG, GSTR-1 & GSTR-2 are not to be filed within the originally prescribed time and thus GSTR-3 will not be formed because it is the auto-populated form and thus GSTR-3B comes into scenario.

*Q3: In what manner data has to be provided in GSTR-3B?*

A: Data in GSTR-3B has to be provided in a consolidated manner i.e. the consolidated amount in respect of information asked has to be furnished. Invoice wise information has not to be furnished. So, taxpayer will be required to consolidate their sales and purchase data for the month for the purpose of filing GSTR-3B.

*Q4: Is GSTR-3B the only return which has to be filed for the month of July and August?*

A- No, GSTR-1, GSTR-2 and GSTR-3 for the month of JUL & AUG are to be filed in SEP. GSTR-3B is the consolidated return form being filed for temporary purpose and proper returns has to be filed for both the months.

*Q5: There is no field for credit note, debit note, advances received etc. then how the data regarding that has to be filled?*

A: In GSTR-3B data has to be filed as net amount i.e. Value of Taxable Supplies = Value of invoices + value of Debit Notes – value of credit notes + value of advances received for which invoices have not been issued in the same month – value of advances adjusted against invoices. So, suppose if any invoice is issued and further in respect of that invoice other documents like Credit Note, Debit Note, Etc. are issued then the impact of those further issued documents has to be adjusted against the amount of invoice and net amount has to be uploaded.

*Q6: There is amendment in any invoice, how will it be shown?*

A: As per instruction in regard to GSTR-3B any amendment in invoice issued has to be adjusted against the invoice amount and the net adjusted amount has to be shown and no amendment will be shown separately.

*Q7: How can I file GSTR-3B?*

A: GSTR-3B can be filed by logging-on to GSTN common portal and now you can also file the same through ASP/GSP if you have availed that service for your organization.

*Q8: If I missed due date, Whether the penalty of Rs.100/- per day or maximum upto Rs.5,000/- will be levied?*

A: Earlier there had been a press note for non-levy of any penalty but this has not notified yet.

Wish you happy financial year

Kindly make note of the following changes in IT law that come into effect from 1-4-2017 -

(1) Limit for payment of expenses by cash (both, capital and revenue expenditure) reduced from Rs.20000 to Rs.10000 per day in aggregate per person. Capital expenses paid in cash beyond the said limit will not be taken into account for depreciation purposes. However, the cash payment limit for lorry fright etc. remains the same at Rs.35000.

(2) No person shall receive an amount of two lakh rupees or more, by cash (Sec. 269ST) —
(a) in aggregate from a person in a day; or
(b) in respect of a single transaction; or
(c) in respect of transactions relating to one event or occasion.
The penalty for violation of above is to be a sum equal to the amount of such receipt.

Examples for above -

👉 i) If one sells goods worth Rs. 300000 through three different bills of Rs.100000 each to one person and accepts *cash in single day* at different times then section 269ST(a) will get violated.

👉 ii) If one sells goods worth Rs. 300000 through *single bill* to another person and receives cash of Rs.150000 on day 1 and another Rs.150000 on day 2 then section 269ST(b) will get violated, since it pertains to single transaction.

👉 iii) If one accepts cash of Rs.180000 for *sales* and Rs.20000 for *freight charges*, then section 269ST(c) will get violated even if cash is accepted on different dates, since they pertain to a single sales event.

👉 iv) If one sells his car for Rs.300000 and receives the amount in cash, then penalty levied on him will be Rs.300000.

(2A) In view of the newly introduced above said penal provisions relating to cash sales, the existing provisions (in vogue from 1.6.2016) relating to collection of TCS @ 1% on cash sales exceeding Rs.2 lakhs (Rs.5 lakhs, in the case of jewellery) are deleted. Consequently, there is no need to collect TCS on cash sales exceeding Rs.2 lakhs. Straight away it will attract equal amount penalty now.

(3) For below Rs.2 crores turnover cases -
👉 For Non Cash Sales (through Digital, Online, cheque, Bank etc.) : Net Profit will be taken as 6% of Turnover/Gross Receipt.
👉 For Cash Sales : Net Profit will be taken as 8% of Turnover/Gross Receipt.

(4) Tax Exemption limit is Rs.2,50,000/- (same as earlier) -
👉 After that, upto Rs.5 lakh, Tax Rate is 5% (earlier it was 10%). Tax rebate of maximum Rs.2500 will be allowed, for total income upto Rs.3.50 lakhs.
👉 Individuals having total income exceeding Rs.50 lakhs but below Rs.1 crore, are to pay surcharge @ 10% of the tax. Those having total income exceeding Rs. 1 crore shall continue to pay surcharge @ 15%.

(5) Payment of Rent - Rs.50,000 per month by any Individual or HUF (not subject to Tax Audit requirements) - deduct TDS @ 5%.

(6) Capital Gain in respect of Land & Buildings -
– Periodicity for long term Capital Gain is reduced from 3 years to 2 years.
– Base year shifted from 01.04.1981 to 01.04.2001 for all assets including Immovable property.

(7) Corporate tax rate for the account year 2017-18 for companies with annual turnover upto Rs. 50 crores (in the account year 2015-16) is reduced to 25%. No change in firm tax rate of 30%.

(8) Donations made exceeding Rs.2000 will be not be eligible for deduction under section 80G, unless these are made using modes other than cash. Consequently, trusts accepting 80G donations may advise their donors to give donations exceeding Rs.2000 vide cheque / RTGS / digital modes.

(9) Sale of unquoted shares to be taxed at (deemed) fair value.

(10) In absence of PAN of the buyer of specified goods, the rate of TCS will be twice of the extent rate or 5%, whichever is higher.

(11) From financial year 2017-18, if Return is not filed within due date, late fee of Rs.5000 for delay up to 31st December, and Rs. 10000 thereafter.

(12) Every person who is eligible to obtain AADHAR number, should quote such number, on or after 1 July 2017, in the Return of income. Furthermore, every person who has been allotted PAN as on 1st July 2017 must intimate the AADHAR number to the Tax Authority, failing which, PAN allotted to such person shall be deemed to be invalid. Kindly note that linking of AADHAR with PAN is not possible, unless name as per AADHAR and PAN match perfectly. Hence, please take steps to rectify your name as per AADHAR to match as per PAN.

(13) Where Sec.12AA registered trusts modify their objects clause, they need to apply within 30 days to CIT for approval of the modified clauses.

26 days left to file income tax return for the financial year 2014-15(assessment year 2015-16) with late filing penal interest.

Assessees are advised to file their income tax returns for both Financial years 2014-15 and 2015-16 as, for the returns filed after 1st April 2017 new concealment penalty provision 270A may atrract instead of 271(1)(C), where former 270A is more stringent than later.

Please consult your auditors, Chartered accountants asap for more details.

All those who are owning companies, pls file annual returns immediately for the earlier years too. MCA started sending notices. So u ll be attracted to penalty plus this non filing of returns is being sync with one data base and using at various places. Ex - Visa is rejected becoZ of non filing of annual returns. Ya. It has happened