1. In Table 3A of ANX-1 state wise entry is required to be made for B2C Supplies. State once selected as place of supply shall contain all entries of a tax period for that state. However if state is once selected the same state also appears in next selection of place of supply also. Hence system validation should be introduced so that if once a state is selected it does not appear again the selection menu.
2. In Table 3A of ANX-1 for one state all entries for a specified rate have to be entered in single row. One can not have multiple rows of same rate for a given state as per scheme conceptualized. Hence selection menu should also not provide the rate for which row has already been created.
3. In Table 3A of ANX-1. Non marking of supply u/s 7 of IGST (inter state supply) of IGST doesn’t stop the selection bar for other states. Hence validation in this regard is required to be corrected. Other states should appear only if supply u/s 7 of IGST is marked.
4. In 3A of Anx -1, PAN information of consumer may be allowed to be given so that if at later point of time one want to avail itc on stock and capital goods , verification of ITC-01 is possible.
5. Relaxation of HSN up to 5 Crore and not seeking information on stock also may result in tax evasion
6. HSN reporting for B2C supplies is not required. Hence even for taxpayers having turnover more than 5 crores complete HSN reporting is not required. Further HSN wise reporting is not flowing to RET-1. Hence matching with annual returns shall not be pose problem.
7. In 3C/3D of ANX-1 For port code information, pop up should be given, otherwise wrong port code shall result hampering of refunds.
8. There may be difference in shipping bill value and taxable value in 3C of ANX-1 due to certain value inclusions not taken in shipping bill which needs to be taken cognisance of.
9. How declaration for claiming refund by supplier shall be made has not been clarified in context of deemed exports and SEZ supplies in context of 3E and 3G of ANX-1
10. Though 3H of ANX-1 for Inwards RCM supplies has been purported to be enabled for PAN but it is not accepting PAN in Trial Run.
11. In 3H of ANX-1 for RCM supplies govt should opt for Aadhar instead of PAN having regard to wide spread use of aadhar and aadhar substitution in Income tax also. For gst registration also aadhar has been mandated
12. On the lines of 3H of ANX-1, Aadhar information may be called for inward supplies exceeding certain threshold even if not subject to RCM so that purpose of 9(4) that lost its way may be met.
13. There is no point in calling detailed information including HSN for import of goods in 3J of ANX-1 when it has no connection with liability of the taxpayer and is only a stop gap arrangement till ICEGATE is integrated with ANX-1.
14. On the lines of import, export information in 3ICEGate should also be integrated with 3C/3D of ANX-1. This shall result in lesser hassles for refunds
15. Missing Invoices information in 3L of ANX-1 no where travels to RET-1 and is for record of department. This information should be made to travel to respective suppliers for Acceptance/ Rejection
16. In context of 3L of ANX-1 Provisional ITC on Invoices not uploaded by the suppliers should be allowed for RET-2/3 (Sahaj/Sugam) also.
17. There is no point in waiting for T+2 for reporting missing invoices in 3L of ANX-1. This information should be given at once to substantiate provisional ITC claimed on invoices not uploaded by supplier in 4A.10 of RET-1
18. There should be not any fetters on making number of times amendments in ANX-1. As per Note on simplified returns issued on 31-07-2018 amendment for a return shall be allowed only twice
19. Sale to composition persons is always available for amendment by supplier. However while switching to normal scheme and taking credit through ITC 01 acceptance of invoices should be allowed, so that verification may be possible.
20. As per instructions under ANX-2 status of return filing of supplier doesn’t affect the eligibility of ITC by recipient, doesn’t go well with 16(2).
21. Instructions to ANX-2 say that interest liability shall be invited for rejecting already accepted invoice. Without prescribing the manner of calculation in S. 50 this legal statement may be under challenge.
22. Rejection without acceptance does not entail interest. Rejection post availment entails interest. What is availment ? Acceptance or filing of RET-1 should be clarified so that rejection post acceptance but per filing of RET does not invite interest.
23. Pending invoices which so remain till Sep of next financial year shouldn’t be allowed to be restored back.
24. Where supplier doesn’t file return for two months and recipient neither rejects nor takes action of keeping them pending then return forms should provide for auto ITC reversal of those invoices.
25.Whether if supplier fails to file return for 2 months there shall be no auto viewing of invoices in ANX-2 should be clarified.
26. Whether post acceptance, can one make invoice pending is not clear because E flyer page 6 requires so. (post acceptance rejection is clear from the Instructions but not “pending”)
27. Rejection post acceptance is available but regarding reacceptance post rejection clarity does not prevail.
28. In PMT-08 Table 4 from where tax already paid shall carry information is not clear. Does It indicate that PMT-08 can be used as many times as one wishes and not only monthly. Further whether PMT 08 information shall auto travel to Table 7 of RET-1 is not clear from instructions.
29. There is no auto calculation of interest in PMT-08 hence whether there shall be interest on late payment for 3rd month only. Interest column in RET should give only suggested interest calculation.
30. For Quarterly filers, Payment of tax date in PMT 08 is 20th while return filing date is 25th of the month following quarter. This will create confusion. Make either all three months’ tax payments and return filing on 20th or 25th. More so because staggered return filing for only 7% filers shall not serve any purpose.
31. As per Instructions to PMT -08 excess itc claim shall entail interest. It means if supplier stops filing, recipient shall suffer because he has accepted the invoice. Excess claim without utilisation may be subject of challenge. Wording needs to be modified.
32. As per Instructions to PMT 08 declaration to be filed even if no supplies have been made. There is no format of declaration in PMT 08. Whether NIL PMT 08 to be filed should be clarified
33. Whether PMT 08 is return is not clarified because it requires disclosure of itc availed. How to avail itc ? Whether acceptance in ANX-2 is itc availed? If so what about invoices not uploaded by the supplier when there is no similar column like 4A.10 of RET-1 in PMT -08. If one is free to place any figure in itc column of itc 08 then whether it means that 10%/20% limits to be observed quarterly only and not in monthly should be clarified
34. Whether liability in PMT -08 to flow from ANX-01 or user input has not been clarified
35. Auto calculation of interest for delayed payment should not be allowed because one may not be required to pay tax u/s 50.
36. Where tax paid is more than tax payable for a return period excess tax paid should also be allowed to be travelled to next return period, without compelling for seeking refund for the same.
37. Rule 37, 39, 42,43 have been placed in ITC reversal category in 4B.4 of RET-1 but R.37 is output tax, R.39 is reduction, R.42 is reversal and R.43 is again output tax liability. Hence form and law are not in sync.
38. As per 4B.5 of RET-1, transition from composition to normal is downward adjustment of ITC and is entered as user input but it is other way round I.e. transition from normal to composition is downward adjustment of ITC. Further no such adjustment should be allowed thorough user input because it should auto travel through ITC-01 and ITC 03.
39. In Table 4E of RET-1, User input requires bifurcation of itc for capital goods and services and does not require the information on inputs. Preparing for this information shall be a cumbersome exercise. In case of composite supplies it may be sometimes difficult to decide whether it is input or input service. Suppliers’ classification for limited purpose of determining tax liability may not be good guideline because it may adversely impact refunds of taxpayers’ also.
40. 4A.11 of RET-1 should clarify that reclamations of excess reversal under Rule 42/43 and 3rd proviso to S. 16(2) may be taken
41. Information on liabilities in 3B.1 of RET-1 and on ITC in 4A.5 of RET-1 regarding RCM is autopopulating from 3H of ANX-1 , while taxpayer may not be entitled to entire itc on RCM, hence 4A. 5 should be based on user input and shouldn’t be auto populated.
42. 3H of ANX-1 requires GSTIN hence 3D.3 of RET-1 for outward supplies attracting RCM should be auto populated instead of user entry
43. Similarly 3D.5 of RET on supply of goods by SEZ to DTA on bill of entry can flow from 3K of ANX-1 instead of having user entry
44. ITC in PMT 08 is net of ineligible ITC. In 4B.10 ineligible ITC shall again be taken for entire quarter which shall result in double deduction for ineligible ITC.
45. 4B. 3 of RET-1 allows itc reversal only against missing invoices uploaded by supplier in current period. It should be allowed to reverse itc in subsequent periods also where taxpayer couldn’t reverse in current tax period
46. When only 7% are more than 5 crore filers then having 25th as return filing date for balance 93% shall not reduce load on the portal. Staggered return filing should be re planned.
47. How threshold of 5 crores for quarterly filers shall be calculated, PAN wise, GSTIN wise has not been clarified.
48. If supplier fails to report / rebut missing invoices, recipient may be given option to pay tax and claim ITC
49. For casual traders and non resident taxable persons willing to avail itc an abridged version on the lines of Sahai/Sugam May be launched.
50. Regarding exempt supplies description of supply and relevant entry number in exemption notification 2/2017 or 12/2017 should be called for.
51. Trial version of RET-1/2/3 should also be introduced at once.
52. Complete transition plan from April 2020 should be declared.