L B Singh & Associates

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31/03/2021

8 Important Changes in GST you must know

IMPORTANT GST CHANGES APPLICABLE FROM 01st April 2021 AND THINGS TO DO BEFORE 31st March 2021.
1. E-WAY BILL
With the amendment by Finance Act 2021, u/s 129 of the CGST Act under detention, seizure, and release of goods and conveyance in transit, the penalty applicable will be 200% of the tax payable.
2. Input Tax Credit (ITC)
With the amendment by Finance Act 2021, ITC will be available to the taxpayer, only if the supplier has uploaded the invoice in GSTR-1 and filed it within the due date and the invoice is reflecting in the GSTR-2B of the taxpayer.
Also, if there is a mismatch in GSTR-1 and GSTR-3B, the notice will be issued to the taxpayer, and if the Jurisdiction Officer is not satisfied with the Assessee’s reply, or the assessee does not reply within the prescribed time period, the Jurisdiction officer can proceed for Cancellation of the GST Registration.
3. HSN Code
As per Notification No. 78/2020 – Central Tax dated 15th October 2020. A registered person having aggregate turnover in the previous financial year, shall mention the number of digits of the HSN code as specified below:
1. Less than or equal to Rs. 5 Crore 4
2. More than Rs. 5 Crore 6
3. In case of Export of Goods/Service 8

4. E-Invoice
As per Notification No. 05/2021 – Central Tax dated 08th March 2021, E-Invoice will be mandatory to all the registered person whose aggregate turnover crossed Rs. 50 Crores in any previous financial year from 2017-18 onwards.
5. Opt-in for Composition Scheme
A regular registered person wanting to opt for Composition Scheme for the F.Y. 2021-22 may apply on or before 31st March 2021.
6. Obtain or Renew Letter of Undertaking (LUT) for the F.Y. 2021-22
A registered person who wants to Export or Supply to SEZ units without payment of tax may apply for the LUT for the F.Y. 2021-22.
7. GST Refund
Refund for the F.Y. 2018-19 (2 years time limit) can be claimed on or before 31st March 2021.
8. GSTR-9 and GST-9C for the F.Y. 2019-20
As per Notification No. 04/2021 – Central Tax dated 28.02.2021 the due date to file GSTR-9 (for the taxpayers having aggregate turnover more than Rs. 2 crores) and GSTR-9C (for the taxpayers having aggregate turnover of more than Rs. 5 crores) has been further extended from 28th February 2021 to 31st March 2021.

Audit, Certification and Consultancy

31/03/2021

Year end & New Year Challenges

2020-21 ends tomorrow
2021-22 begins next day.

BULLET POINTS

Income Tax

*1.* PAN if not linked with Adhaar by 31 March’2021 shall remain inoperative till such period, it is linked. Inoperative Pan means TDS will be deducted at higher rates, ITR cannot be filed and penalty of 10000.00 may be imposed.

*2.* 31.03.2021 is last date to file/revise ITR of FY 2019-20.

*3.* 31.03.2021 is last date of investments for deduction u/s 80C or 80D etc for FY 2020-21.

*4.* 31.03.2021 Is last date to file Q1 & Q2 TDS Returns of FY 2020-21 without Late Fee.

*5.* Next Year wef 01.07.2021 TDS @ 0.1% will have to be paid on Purchases of more than 50 Lacs if Turnover in FY 2020-21 exceeded 10 Crore. u/s 194Q.

*6.* Charitable Institutions/Trusts already registered with Income Tax Deptt will have to re-register themselves in 2021-22.

*7.* Income Tax Audit will not be required for FY 2020-21 for persons having turnover up to 10 Crores if Cash Component does not exceed 5% of total Receipts/Payments. Payments received or made by cheque other than Account Payee Cheques will be counted as cash component.

*8* ITR of FY 2020-21 can not be filed after 31.Dec’21. (means 3 months lesser period made available next year )


*GST*

*1.* Existing LUT for export without payment of IGST expires on 31.03.2021. Seek renewal for 2021-22.

*2.* Those who want to opt in or opt out of QRMP scheme for Q1/2021-22 can do so by 30.04.2021.

*3.* 31.03.2021 is last date of GST Audit and filling Annual Return of 2019-20. This Year’s Finance Bill has scrapped Sec 35(5). GST Audit, therefore stands abolished for coming years.

*4.* Those willing to shift to Composition Scheme for 2021-22 can do so by filling CMP 02 by 31.03.2021.

*5.* E-Invoicing made mandatory wef 01.04.2021 for dealers with Annual Turnover of 50 Cr or more in any preceding Year. Those buying from such dealers without E-Invoice will loose Input Tax Credit on such purchases.

Audit, Certification and Consultancy

27/03/2021

All New Set of Guidelines, Forms & Procedures for the Registrations of Trusts/Societies for Section 12AB and Section 80G Registration under the Income Tax Act,1961.

(ii) Form-10BD Notified for Annual Return of Donations to be filed by NGO;

(iii) ‘Certificate of Donation’ shall be issued to the Donor on Form-10BE.

CBDT Notification No. 19/2021 dated March-26-2021

Audit, Certification and Consultancy

27/03/2021

Wonderful changes by Ministry of Company Affairs wef 1st April 2021to ensure more and more transparency

Schedule III of the Companies Act 2013 contains the general instructions for preparation of Balance Sheet and Statement of Profit and Loss of a Company.

Following are the changes made in the financials/ notes to accounts on account of amendments in Schedule III brought about by MCA:

1. Now companies have to round off the figures appearing in the financial statements, hitherto it was optional. Further, the criteria for rounding off shall be based on “total income” in place of “turnover”.

2. Company shall disclose Shareholding of Promoters.

3. Current maturities of Long term borrowings shall be disclosed separately.

4. Trade Payables ageing schedule to be given.

5. Trade Receivables ageing schedule to be given.

6. Security deposits shall not be disclosed under ‘Long term loans and advances’ but disclosed under ‘Other non current assets’.

7. The company shall disclose the reason of utilization of funds for the purposes other than for which they were borrowed and shall also disclose the purposes for which the funds were utilised.

8. Company needs to disclose if the books of accounts are tallied with the quarterly or monthly returns filed with banker in cases where company has borrowed funds from banks on the basis securities of current assets, or else a separate reco statement needs to be provided.

9. The company shall provide the details of all the immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held and where such immovable property is jointly held with others, details are required to be given to the extent of the company’s share.

10. In cases where revaluation has been done in case of Property Plant and Equipment, the company shall disclose if the valuation was done by registered valuer.

11. Disclosures to be made where Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and related parties (loans given to promoters as a % of total loans)

12. For Capital-work-in progress, ageing schedule shall be given

13. For Intangible assets under development, aging schedule to be given.

14. Disclosure of any proceedings initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition)Act, 1988 to be made.

15. Where a company is a declared wilful defaulter by any bank or financial Institution or other lender, details to be given.

16. Disclosure of any transactions with companies struck off

17. Where any charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period, details and reasons thereof shall be disclosed.

18. Following Ratios to be disclosed:

(a) Current Ratio,(b)Debt-Equity Ratio,(c)Debt Service Coverage Ratio, (d) Return on Equity Ratio,(e) Inventory turnover ratio,(f)Trade Receivables turnover ratio, (g) Trade payables turnover ratio, (h) Net capital turnover ratio, (i) Net profit ratio, (j)Return on Capital employed, (k) Return on investment
(xv) Disclosure of Utilisation of Borrowed funds and share premium to be given
Explanation is required if there’s change of more than 25% as compare to preceding financial year.

19. Further disclosures shall be made where the company has received funds from any persons or entities including foreign entities to further lend or invest or provide any guarantee, security to third parties.

20. Where a scheme of arrangement has been approved, disclosure shall be made of the effect of the same on the books of accounts and any deviation from the accounting standards for the same.

Audit, Certification and Consultancy