GST: What happens if person files return but doesn’t make payment of taxes?

Under the GST law, the filing of return without payment of taxes shall not be considered as a valid return.

GST FAQs :

I understand that the applicability of GST on reverse charge basis has been suspended. In this scenario, I want to know if the notification is also applicable on import of services for which we are paying GST on reverse charge basis?

• In case of import of services, the integrated tax is payable under Section 5(3) of the Integrated Goods and Service Tax Act, 2017 (IGST Act). The liability to pay GST under reverse charge has only been deferred in respect of transactions falling under Section 5(4) of the IGST Act, which only covers procurements made from suppliers not registered under GST law. Accordingly, import of services shall continue to be liable to Integrated Tax under reverse charge mechanism.

Who can opt for the composition scheme? Is liability to pay taxes under reverse charge mechanism covered under the composite scheme?

• The GST law provides an option to a supplier of goods, having an annual aggregate turnover not exceeding Rs 10 million, to opt for payment of GST under Composition Scheme. A similar option has also been provided to a person engaged in the supply of food/beverages (other than alcohol). However, this option is not available for other service providers. This option is also not available if the supplier is engaged in undertaking inter-state supplies.
• The GST payable under reverse charge mechanism is not covered under the composition scheme. If a person registered under composition scheme procures any goods/services on which GST is payable under reverse charge mechanism, the person shall be required to pay GST at applicable rate and not based on rates prescribed under composition scheme.

What happens if the taxable person files the return under the GST law but does not make payment of taxes?

• Under the GST law, the filing of return without payment of taxes shall not be considered as a valid return. Section 2(117) defines a valid return. It means, a return furnished under sub-section (1) of Section 39 on which self-assessed tax has been paid in full. It is only the valid return that would be used for allowing input tax credit (ITC) to the recipient. In other words, unless the supplier has paid the entire self-assessed tax and filed his return and the recipient has filed his return, the ITC of the recipient would not be confirmed.

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Don't share your user ID & password, may be misused: I-T dept warns users

'If a password is hacked or stolen, it can result in information security breach', warns I-T dept

Latest news - The Income Tax Department has warned taxpayers against sharing their user ID and password with any unauthorised person, saying they too will be liable to face consequences for misuse of their confidential information.

It further said that "if a password is hacked or stolen, it can result in information security breach, leading to undesirable consequences, including privacy violations".

It asked taxpayers to exercise caution in use of log-in credentials at TRACES, which should not be disclosed to any unintended or unauthorised individual. "If shared, the person using login credentials shall also be liable to consequences," it added.

Samsung Note 7 Fiasco, 'Freedom 251' Fraud, Driverless Cars: Tech News In 2016

TDS Reconciliation Analysis and Correction Enabling System (TRACES) helps easy filing of tax deducted at source (TDS) or tax collected at source (TCS) correction statements by deductors/collectors and related functionalities.

Breaking news is The taxman asked users to secure their password with at least eight characters in length and a combination of lower case, upper case, numeric and special characters.

"Do not write your password on notepads or the whiteboard at your desk," it cautioned.

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