What is GST and how it works ?

The first step to being GST-ready is to register for a GST identification number. You need to check whether you are required to register or whether you want to register voluntarily. Persons having businesses with annual sales turnover exceeding RM500,000 are liable to be registered under GST.

A taxable person who is carrying on its business in several divisions or branches upon request and subject to stipulated terms and conditions can be registered in the names of those divisions/branches. This is a facility for any taxable person with a number of self accounting units to register each unit separately for GST.

When you charge GST, you need to issue a tax invoice showing the amount of GST and the price of the supplies separately. The tax invoice has to be issued within 21 days after the time of the supply.

The Director General of Customs may upon request allow the tax invoice to be varied from the above whether in term of particulars in the tax invoice or issuance of other type of tax invoice e.g. simplified tax invoice.

The amount of GST incurred on input (input tax) can be deducted from the amount of GST charged (output tax) by the registered person.

All taxable persons will be required to account for GST based on accrual (invoice) basis of accounting i.e. all output tax and input tax are to be accounted and claimed based on the time when the invoice was issued or receive.

Categories of taxable persons may be allowed to use the payment (cash) basis of accounting. This facility may be given to businesses who carry out their activities solely on a cash payment basis.

The excess amount of output tax shall be remitted to the government within the stipulated period.
In the case where the amount of input tax cannot be fully recovered, businesses can make a claim for refund from the government.

Any refund of tax may be offset against other unpaid GST, customs and excise duties. Refund will be made to the claimant within 14 working days if the claim is submitted online or 28 working days if the claim is submitted manually

If your output tax exceeds the input tax, the difference shall be remitted to the Government together with the GST returns not later than the last day of the following month after the end of taxable period.

Any person who is aggrieved by the decision of the officer of GST may apply for a review and revision to the DG within 30 days from the date of notification. Alternatively, such person shall make an appeal to the Tribunal within 30 days from the date of the decision.

GST Refund Fortnight is a scheme by the GST council to address refund issues related to the exporters in India. The third session of the GST refund fortnight scheme would be observed from 16.07.2018 to 31.07.2018 to deal exclusively with pending GST Refund Claims

The Central Board of Indirect Taxes and Customs (CBIC) is set to organize the third edition of special fortnight scheme from 16th – 30th July 2018 in order to clear all the pending GST refunds of the exporters.

The Central Board of Indirect Taxes and Customs-cleared a total amount of INR 5401 crores in the first-fortnight scheme while INR 7635 crores in the second fortnight.

The pending refund was due to the Integrated GST i.e. IGST paid and the remaining ITC claims of the exporters. Note that the CBIC had already cleared 90 per cent of the refund claims.

According to the official notification, “In order to liquidate pendency further, and to handhold/ guide the trade for applying for the refund claims in a proper manner, it has been decided to observe another refund fortnight from July 16 to 30, 2018

The section 54 of the GST allows for the refund of any excess GST paid. There a number of circumstances under which GST Refunds can be claimed

Some GST refunds have been pending since last eight months. Exporters complain that they are now stranded with a small working capital for running their business operations.

To address such export grievances the GST council has brought the GST Refund Fortnight scheme.

A major part of the refund amount due to technical glitches remains alien from the cash flow dependent economy.

The revenue department reasons that forms submitted by some specific exporters to the customs department were not consistent with that of the GSTN.

The GST Council is finally paying heed to their grievances. Accordingly, Exporters with IGST refund or Input Tax credit claim pending with the CBEC must visit their field offices

Exporters with IGST refund or Input Tax credit claim pending with the CBEC must visit their field offices.

The GST Council is also looking for digital options for refund transactions for which the e-wallet scheme is said to be under discussion.

The Government would transfer notional/non-existing credits to the exporter’s account. The amount would be determined by the GST Council based on the exporter’s previous records