FROM AUGUST 1ST, THE RULES FOR SALARY, PENSION, AND EMI PAYMENTS WILL CHANGE
The National Automated Clearing House’s guidelines have been amended by the RBI (NACH). These modifications will take effect on August 1, 2021. This means you won’t have to wait for your income or pension to be deposited on business days. These services are offered seven days a week. NACH services will be available 24 hours a day, seven days a week. Currently, the service is only available from Monday to Friday when the bank is open.
The National Payments Corporation of India operates the NACH collective payment system (NPCI). This makes it easier to transfer credit for things like dividends, interest, salaries, and pensions. It also has functionality for paying energy bills, gas bills, phone bills, water bills, loan EMIs, investment trust investments, and insurance premium payments.
This means you won’t have to wait until Monday to Friday to receive all of these capabilities, and you’ll be able to do transactions on weekends as well. NACH, according to the RBI, has become a popular and well-known digital means of direct profit transfer (DBT) for beneficiaries. During a COVID-19 epidemic, this aids in the prompt and transparent transmission of government subsidies.
GSTN ADDRESSES THE ISSUE OF NEGATIVE LIABILITY IN GSTR-4 WHEN FILING ANNUAL RETURNS BY COMPOSITION TAXPAYERS
The Goods and Service Tax Network (GSTN) has resolved the issue of taxpayers reporting negative liability on their GSTR-4 forms. Composition taxpayers must pay their liabilities using Form GST CMP-08 on a quarterly basis beginning in FY 2019-20, whereas GSTR-4 Returns must be completed on a yearly basis after the end of the financial year.
The GSTN stated as the reason that the liability for the entire year must be declared in GSTR-4 at the applicable tax rates. Table 6 of GSTR-4 must be completed by all taxpayers. If there is no liability, the table can be populated with a value of ‘0’. Even if the taxpayer may have paid the liability using Form GST CMP-08, if no liability is reported in table 6, it is assumed that no liability is required to be paid. In such instances, the liability paid by GST CMP-08 becomes excess tax paid, and it is transferred to the Negative Liability Statement to be used for the next tax period’s liability.
For the convenience of taxpayers, liability paid using Form GST CMP-08 is auto-populated in table 5 of the GSTR-4. Taxpayers who do not fill out table 6 of GSTR-4, i.e. no liability is disclosed, even though the liability is paid via Form GST CMP-08 because the ‘Tax payable’ in GSTR-4 is determined after decreasing the liability declared in GST CMP-08 and then auto-populated in table 5. As a result, if nothing is declared in table 6, a negative liability item shows in GSTR-4,” the GSTN explained, pointing out the taxpayer’s error.
A ticket may be raised to invalidate the amount available in the negative liability statement if table 6 of GSTR-4 has not been filled due to an oversight. If there is no liability to be paid throughout the year, the liability paid using Form GST CMP-08 will become a negative liability statement, and the surplus money will be available to cover future tax periods’ liabilities.