Practitioner GST:-
Rule 83(5) of Central Goods and Services Tax Rules, 2017- Against the disqualification order, appeal shall be filed within thirty days from the date of issue of order before the Commissioner.
GST Practitioner refers to a professional authorized to represent taxpayers under the Goods and Services Tax (GST) law in India. These practitioners assist taxpayers in various GST-related activities, including return filing, tax payments, and compliance. Rule 83(5) pertains to the disqualification of GST practitioners and specifies the procedure for appealing a disqualification order. Let’s analyze and explain Rule 83(5) with examples:
Rule 83(5):
“Against the disqualification order, appeal shall be filed within thirty days from the date of the issue of the order before the Commissioner.”
Explanation and Examples:
1. Disqualification of GST Practitioner:
Under GST, GST practitioners are required to comply with certain conditions and qualifications to represent taxpayers effectively. If a GST practitioner is found to be in violation of these conditions or disqualified for any reason, a disqualification order may be issued.
Example: An individual registered as a GST practitioner fails to comply with the conditions specified for practitioners, leading to his disqualification.
2. Filing an Appeal:
Rule 83(5) outlines the appeal process for a GST practitioner who has been disqualified. If a GST practitioner wishes to challenge the disqualification order, they must file an appeal within a specified time frame.
Example: The disqualified GST practitioner decides to appeal the order because they believe it was issued unfairly or in error.
3. Appeal Deadline:
The rule specifies that the appeal against the disqualification order must be filed within thirty days from the date of the issue of the order. This is a strict time limit, and filing an appeal after the deadline may not be accepted.
Example: If a GST practitioner receives a disqualification order on July 15, they must file an appeal challenging the order on or before August 14.
4. Authority for Filing Appeal:
The appeal against the disqualification order is to be filed before the Commissioner, who is a higher authority responsible for overseeing GST-related matters. The Commissioner will review the appeal and make a decision on the matter.
Example: The GST practitioner submits their appeal to the Commissioner’s office, which will review the case.
5. Purpose of the Appeal:
The appeal process allows a disqualified GST practitioner to present their case and challenge the reasons for disqualification. The appeal may involve providing evidence and arguments to support their claim.
Example: The practitioner may present evidence that they have rectified the issues that led to disqualification and are now eligible to continue as a GST practitioner.
6. Outcome of the Appeal:
The Commissioner will review the appeal and may either uphold the disqualification order or overturn it, depending on the merits of the case.
Example: If the Commissioner finds that the disqualification order was issued in error, they may overturn it, allowing the GST practitioner to resume their role.
In summary, Rule 83(5) of the GST law in India outlines the process for appealing a disqualification order issued to a GST practitioner. The appeal must be filed within thirty days from the date of the disqualification order before the Commissioner. This process provides a mechanism for practitioners to challenge disqualification and seek reinstatement as authorized representatives for taxpayers.
Electronic Cash ledger:-
Rule 87 (2) Proviso – Challan in form PMT -06 generated at the common portal shall be valid for a period of fifteen days.
The Electronic Cash Ledger is an essential component of the Goods and Services Tax (GST) system in India. It is a digital ledger that reflects the balance of cash available for a taxpayer to make tax payments. The ledger is used for making tax payments, and Rule 87(2) Proviso pertains to the validity of challans generated for these payments. Let’s analyse and explain Rule 87(2) Proviso with examples:
Rule 87(2) Proviso:
“Challan in form PMT-06 generated at the common portal shall be valid for a period of fifteen days.”
Explanation and Examples:
1. Electronic Cash Ledger and Challans:
The Electronic Cash Ledger is maintained electronically on the GST portal and reflects the balance of cash available for a taxpayer to make GST payments. To credit this ledger with a specific amount, taxpayers must generate a challan using Form PMT-06, which contains details of the payment to be made.
Example: A registered business has to pay GST for the month of July and needs to credit its Electronic Cash Ledger with the required amount.
2. Challan Validity:
The Rule 87(2) Proviso specifies the validity period of the challan generated using Form PMT-06. According to this rule, such challans are valid for a period of fifteen days from the date of their generation.
Example: If a taxpayer generates a challan on July 1, it will remain valid until July 16. During this period, the taxpayer can use it to credit their Electronic Cash Ledger with the specified amount.
3. Purpose of Challan Validity:
The validity period of the challan ensures that tax payments are made promptly and that taxpayers do not delay payments for an extended period. This helps in maintaining a consistent flow of tax revenue for the government.
Example: By imposing a 15-day validity period, the government encourages taxpayers to make timely tax payments, which are crucial for the effective functioning of the GST system.
4. Revalidation:
If a taxpayer fails to use a generated challan within its validity period and still needs to make the payment, they can revalidate the challan for an additional period of fifteen days. However, this can only be done once.
Example: If the original challan generated on July 1 is not used by July 16, the taxpayer can revalidate it once for an additional fifteen days. This provides some flexibility for taxpayers who may face delays in making payments.
5. Challan Cancellation:
If a taxpayer does not use a challan within its validity period and does not revalidate it, the challan becomes invalid. The taxpayer must then generate a new challan to make the payment.
Example: If the taxpayer does not use or revalidate the challan by July 16, they will need to generate a fresh challan if they wish to make the same payment.
In summary, Rule 87(2) Proviso of the GST law in India sets the validity period for challans generated using Form PMT-06, which are used to credit the Electronic Cash Ledger. These challans are valid for a period of fifteen days from the date of their generation. This rule encourages timely tax payments and provides a mechanism for revalidating a challan if needed.
Rule 87 (5) Proviso — Mandate form to be submitted to Bank shall be valid within fifteen days from the date of generation of challan.
Rule 87(5) Proviso under the Goods and Services Tax (GST) law in India pertains to the mandate form submitted to a bank for electronic funds transfer. This rule specifies the validity period for the mandate form generated in relation to GST payments. Let’s analyse and explain Rule 87(5) Proviso with examples:
Rule 87(5) Proviso:
“Mandate form to be submitted to the bank shall be valid within fifteen days from the date of generation of the challan.”
Explanation and Examples:
1. Mandate Form and Electronic Funds Transfer:
In the context of GST payments, the mandate form is a document used for authorizing a bank to electronically transfer funds from the taxpayer’s account to the government’s account. It is an essential step when making electronic payments for GST.
Example: A business decides to make an electronic payment for its monthly GST liability and needs to authorize its bank to transfer the funds on its behalf.
2. Validity of Mandate Form:
Rule 87(5) Proviso specifies that the mandate form, which authorizes the bank to initiate the fund transfer for GST payments, is valid for a period of fifteen days from the date of generation of the associated challan.
Example: If a taxpayer generates a challan and the associated mandate form on July 1, the mandate form will remain valid until July 16. During this period, the bank can use the form to initiate the electronic transfer of funds.
3. Purpose of Mandate Form Validity:
The mandate form’s validity is established to ensure that the taxpayer’s authorization for the fund transfer is current and has not lapsed. This helps maintain the integrity of the electronic payment process.
Example: By requiring the mandate form to be valid for a specific period, the system ensures that fund transfers are authorized by the taxpayer in a timely manner, reducing the risk of unauthorized or outdated transactions.
4. Revalidation:
If a taxpayer does not use the mandate form within its validity period but still intends to make the payment, they can revalidate the form for an additional fifteen days. However, revalidation can only be done once.
Example: If the original mandate form generated on July 1 is not used by July 16, the taxpayer can revalidate it once for an additional fifteen days to ensure they can make the payment.
5. Challan and Mandate Form Correlation:
The mandate form is closely related to the challan (payment document). The mandate form is generated in conjunction with the challan, and both have the same validity period. The taxpayer provides authorization for the payment through the mandate form linked to the specific challan.
Example: The mandate form generated on July 1 is linked to the challan for the same payment, ensuring that the bank transfers funds for the intended GST liability.
In summary, Rule 87(5) Proviso of the GST law in India sets the validity period for the mandate form used to authorize electronic funds transfers for GST payments. The mandate form is valid for fifteen days from the date of generation of the associated challan. Revalidation is possible if the form expires but can only be done once. This rule ensures that authorization for electronic payments is current and reduces the risk of unauthorized transactions.
Mismatch between GSTR-1 and 3B:-
Rule 88C (1) — On receipt of Part A of form DRC-01B, registered person has to either to pay the differential tax liability or furnish explanation within a period of seven days.
The mismatch between GSTR-1 and GSTR-3B in the context of Rule 88C(1) refers to a situation where the details of outward supplies (sales) reported in GSTR-1 do not match with the figures reported in GSTR-3B, which is a summary return filed by registered taxpayers. This mismatch can lead to tax liabilities or discrepancies that need to be addressed. Let’s break down Rule 88C(1) and understand it with examples:
Rule 88C(1) Overview:
Rule 88C(1) is a provision under the Central Goods and Services Tax (CGST) Act, 2017. It states that when a registered person receives Part A of Form DRC-01B, they are required to take certain actions within a stipulated time frame.
Part A of Form DRC-01B:
Part A of Form DRC-01B is a notice issued by the tax authorities to a registered person when a discrepancy is identified between the data reported in their GSTR-1 (which contains details of outward supplies) and GSTR-3B (which is a summary of tax liabilities).
Actions Required:
When a registered person receives Part A of Form DRC-01B, they have two options:
1. Pay the Differential Tax Liability: If there is a discrepancy between GSTR-1 and GSTR-3B, the taxpayer can choose to pay the additional tax amount to rectify the mismatch.
2. Furnish Explanation: Alternatively, they can provide a reasonable explanation for the discrepancy within seven days of receiving the notice.
Examples:
Example 1 – Paying Differential Tax Liability: Suppose a business named XYZ Ltd. reported its monthly sales in GSTR-1 as follows:
- Total Sales: ₹100,000
- GST @ 18%: ₹18,000
However, in their GSTR-3B, they reported:
- Total Tax Liability: ₹16,000
Upon receiving a notice in Part A of Form DRC-01B, XYZ Ltd. realizes the mismatch and decides to pay the differential tax liability of ₹2,000 within seven days to rectify the discrepancy.
Example 2 – Furnishing Explanation: Now, consider another business, ABC Pvt. Ltd., that faces a similar discrepancy in their GSTR-1 and GSTR-3B data. They reported sales of ₹50,000 in GSTR-1 and ₹60,000 in GSTR-3B.
Upon receiving the notice, ABC Pvt. Ltd. examines the discrepancy and determines that the additional ₹10,000 reported in GSTR-3B was due to an inadvertent data entry error. They furnish an explanation along with supporting documents, explaining the mistake and correcting the figures in their subsequent returns. The tax authorities accept the explanation, and no additional tax payment is required.
Key Takeaways:
- Rule 88C(1) is designed to rectify discrepancies between GSTR-1 and GSTR-3B to ensure accurate reporting and payment of GST.
- Registered persons should respond promptly by either paying the differential tax or providing a valid explanation within the seven-day period mentioned in the notice.
- It is crucial for businesses to maintain accurate records and reconcile their data between GSTR-1 and GSTR-3B to avoid such mismatches and potential penalties.
Tax deduction at source:-
Section 51(2) of Central Goods and Services Tax Act, 2017 – Deductor shall pay the tax deducted within ten days after the end of the month in which such deduction is made.
Tax Deduction at Source (TDS) is a mechanism by which the government collects tax at the source of income. It is applicable to various transactions and is a means of ensuring that the government receives its share of tax revenue as income is generated. Section 51(2) of the Central Goods and Services Tax (CGST) Act, 2017, deals with the payment of tax deducted at source. Let’s break down Section 51(2) and provide examples to illustrate its application:
Section 51(2) Overview:
Section 51(2) stipulates that the entity or individual responsible for deducting tax at source, often referred to as the “deductor,” must remit the tax deducted to the government within a specified time frame.
Key Points of Section 51(2):
- Deductor: The deductor is typically a business or person who is required to deduct TDS under the GST regime. This deduction is made at the time of payment to the supplier of goods or services.
- Payment Deadline: The section specifies that the deductor must pay the tax deducted within ten days after the end of the month in which the deduction is made.
Example: Suppose you run a construction company, and you hire a subcontractor, Mr. Smith, to supply building materials. Mr. Smith charges you ₹100,000 for the materials and includes a GST component of ₹18,000, totaling ₹118,000.
As the recipient of the materials, you are the deductor, and you are responsible for deducting TDS on the GST component (₹18,000) at the time of payment. In this case:
1. You pay Mr. Smith ₹100,000 for the materials.
2. You deduct TDS of ₹18,000 from the payment.
3. You pay Mr. Smith ₹82,000 (₹100,000 – ₹18,000).
Now, according to Section 51(2), you are required to deposit the ₹18,000 (TDS) to the government within ten days after the end of the month in which the deduction was made. If you deducted the TDS in May, you need to deposit it by the 10th of June.
Failure to deposit the TDS within the stipulated timeframe may result in penalties and interest, as well as potential legal consequences.
Key Takeaways:
- TDS is a mechanism for collecting tax at the source, ensuring that the government receives its share of revenue.
- Section 51(2) specifies that the deductor must pay the tax deducted within ten days after the end of the month in which the deduction was made.
- Compliance with TDS provisions is crucial to avoid legal repercussions and ensure proper tax collection and remittance. Deductor should maintain accurate records and adhere to the specified deadlines.
Collection of tax at source:-
Section 52 (3) –— Operator shall pay the tax collected within ten days after the end of the month in which such collection is made.
Collection of Tax at Source (TCS) is a mechanism by which the government collects tax on specified transactions at the source of income. Section 52(3) of the Central Goods and Services Tax (CGST) Act, 2017, deals with the payment of tax collected at source. Let’s break down Section 52(3) and provide examples to illustrate its application:
Section 52(3) Overview:
- Section 52(3) stipulates that the entity or individual responsible for collecting tax at source, often referred to as the “operator,” must remit the tax collected to the government within a specified time frame.
Key Points of Section 52(3):
- Operator: The operator is typically a business or person who is required to collect TCS under the GST regime. This collection is made at the time of receiving payment from the buyer.
- Payment Deadline: The section specifies that the operator must pay the tax collected within ten days after the end of the month in which the collection is made.
Example: Suppose you operate an online marketplace where various sellers list their products for sale. You facilitate transactions between buyers and sellers and collect the payment on behalf of the sellers. As the operator, you are responsible for collecting TCS on behalf of the government.
Let’s consider an example:
1. A seller on your platform, Mr. Patel, sells a laptop for ₹50,000.
2. The applicable GST on the sale is ₹9,000, which Mr. Patel includes in the selling price.
3. As the operator, you collect ₹50,000 from the buyer.
4. You must collect TCS at the rate specified under the GST law on the GST component (₹9,000).
According to Section 52(3), you are required to deposit the ₹9,000 (TCS) to the government within ten days after the end of the month in which the collection was made. If you collected the TCS in May, you need to deposit it by the 10th of June.
Failure to deposit the TCS within the stipulated timeframe may result in penalties and interest, as well as potential legal consequences.
Key Takeaways:
- TCS is a mechanism for collecting tax at the source, ensuring that the government receives its share of revenue.
- Section 52(3) specifies that the operator must pay the tax collected within ten days after the end of the month in which the collection was made.
- Compliance with TCS provisions is crucial to avoid legal repercussions and ensure proper tax collection and remittance. Operators should maintain accurate records and adhere to the specified deadlines.
******
Author Bio
