Each new year comes with challenges, new expectations, desires, and responsibilities. The introduction of the Goods and Services Tax (GST) in India is a major tax reform. This is a great year for GST from 2017-2019. The GST rate on 178 items fell from 28% to 18%. Goods and Services Tax (GST) is an indirect tax on the supply of goods and services in India. It is a large, multistage, destination-oriented tax: comprehensive because it has a mix of almost all indirect taxes except for a few state taxes. In 2020, taxpayers need to keep 15 things in mind. 2020 is a leap year, taxpayers are required to comply with tax laws on business. In this article, we will discuss some of the trends of the upcoming tax reforms and change the dynamics of business in India. We will see GST in 2020 which is better and more developed.

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Major taxpayers need to keep the following 15 things in mind for GST in 2020, including income tax:

  • Mandating E-invoice

The introduction of the new e-challan system will be implemented in GST from 1 April 2020. It is mandatory for all taxpayers with an annual turnover of over Rs 100 crore and will be regular for every B2B (business to business) supplier thereafter. A tool for constantly uploading revenue invoices on a real-time basis. This is a very unusual change in Indian accounting & bookkeeping services.

  • New IRP( Invoice Registration Portal) in GST

The Challan registration portal will be launched in 2020. The formation of e-challan is the responsibility of the taxpayer and they are expected to report to the Challan Registration Portal (IRP) of GST. The QR code contains the important parameters of the e-challan and puts the taxpayer who created the document in the first place. Simply put, IPR creates an e-challan of the invoice uploaded by the supplier. The IRP sends the e-challan to the supplier and recipient. IRP sends e-challan data to the GSTN portal.
  • Late fee for non-filing of GSTR-1 is denied

From 2020, the important thing to remember – if the taxpayer fails to file GSTR-1 from July 2017 to 2019. The taxpayer can file such a return by January 10, 2020. The late fee for this will be waived. This will have an impact on the recipients’ GSTR-2A to make ITC (input tax credit) the backbone of future GST governance.

  • New formations in GST Return

From 1 April 2020, the new simplified automated system for GST revenue will be visible to all taxpayers. Improving the clarity and efficiency of the new GST revenue return filing process. The council has decided that the new return filing system will be part of 2020. A new return system has been set up to clarify and streamline the ITC claim process, with taxpayers now worried about how they will have to balance entries. ITC reversal. ITC now automatically receives a credit to the receiver’s electronic credit leader. This new return policy will improve compliance and significantly reduce tax evasion.

  • Annexure 1 and Annexure 2

Introduced in GST 2020, Annex-1 of external supply and Annex-2 of internal supply is the future basis for filing all GST returns. These 2 reports are crucial for future reports of GST, which will replace GSTR1 and GSTR2A.
  • Limitation on ITC claim

GST comes into force in 2020 – The 38th GST Council seeks a specific amendment to the CGST Rules (Central Goods and Services Tax Rules, 2017) available for decisions taken in the Central Board of Indirect Taxes and Customs. As the percentage of eligible ITCs is declining, GSTR-1 suppliers will not be allowed to view the details. From 01/01/2020, ITC will be limited to 10 percent of eligible ITCs, for taxpayers whose form will be reflected in GSTR-2A in respect of invoices or debit notes not reflected in Form GSTR-2A. The first ban is 20%. The big change in ITC profit. Therefore, now the facility of obtaining ITC in respect of challans or debit notes, the details of which are not uploaded by the suppliers in GSTR-1, is limited to only 10% of the total eligible loans.

  • Blocking of a generation of E-way Bills

Notification no. 75/2019 – Central Tax dated 26th December 2019 – Reform to give Rule 138E of CGST Rules. Failure to file GSTR-1 for January 11, 2020, next month/quarter will also hamper the production of the e-way bill. Thus, the regular filing of GSTR-1 and GSTR-3B in the year 2020 will go hand in hand.
  • GST Audit and Annual Return

The date for filing the 2017-18 FY for GST and GST annual returns introduced in 2020 is GSTR-9 and the audit report, reconciliation statement i.e. GSTR-9C has been extended to 31 January 2020. Also, the filing date for GSTR-9 and GSTR-9Cs for the 2018-19 financial year has been extended to 31 March 2020.

  • DIN Notice and E-scrutiny 

Due to the reduction in revenue collection from GST, large scale e-check and e-valuation notices can be taken with DN for revenue from July 2017. This is done to check for significant differences in revenue.

Circular no. 128/47 / 2019- GST dated 23rd December 2019 directed to send taxpayers and other concerned persons through any office of CBIC in respect of electronic communications and all communications referred to DIN. Nationwide and expertise from December 24, 2019.

  • GSTN Network

It is proposed to restart the GSTN network for centralized taxpayer services such as return filing, refund status, ITC match, and mismatch. Creating QR codes for Business (B2C) supply for the customer.
  • Making QR Codes for Business to customer(B2C) supplies 

In 2020, Notification No. 71/2019 – Central Tax and Notification No. 72/2019 – Central Tax, both dated December 13, 2019, and April 01, 2020. A quick response code (“QR code”) is mandatory. If a challan registered person allows, the total turnover for the financial year is Rs. 500 crore (B2C Challan) for an unregistered person. However, if such a registered person provides a dynamic QR code to the recipient via a digital display, such a B2C challan will be issued by such a registered person, which must include a cross-reference of the payment using the dynamic QR code. , QR code.

  • New ITR rules 

The new ITR with self-filled details of salary, TDS, etc. is proposed for salaried employees, which is aimed at simplifying returns to the Assessors.

  • Change in Income Tax online assessment

Many important changes under income tax in 2020 are the new online assessment, technology-based, and faceless assessment systems in India. The suggested date for e-assessment for F.Y is 2017-18 30 September 2020. This will greatly affect the tax authorities and taxpayers.

  • Reverse charge on renting of Motor Vehicles 

Applies to RCM service by renting any motor vehicle designed to carry passengers. Where fuel cost is included in the charge from the service recipient. If the supplier fulfills all the conditions other than body-corporate or does not issue an invoice charging GST @ 12% from the service recipient. Also, (c) a company in the taxable area provides services to the corporate. It is clear that the above amendment to the RCM Notification is only clear and, therefore, it also applies to the period from October 1, 2019, to December 31, 2019. The new system from the above changes and even new ones of operation in the 2020 year.

  • Extending the due dates for filing of TRAN-1 & 2

The deadline for registered taxpayers to submit Forms TRAN-1 and TRAN-2 have been extended from March 31, 2020, to April 30, 2020. Notification No. 02/2020 – Central Tax on January 1, 2020. Taxpayers are celebrating the new year. But there are a lot of difficulties in the form of consent that awaits this 2020. We hope that taxpayers will overcome all difficulties and 2020 will be a wonderful year with GST. Login to all our legal addresses to apply for GST Registration and GST Returns. Or you can ring 8750008585.

Frequently Asked Questions

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