Telangana decide to go for Option-1 to meet the GST implementation shortfall

Telangana decide to go for Option-1 to meet the GST implementation shortfall

Ministry of Finance

PRESS RELEASE

17th NOV 2020

The Government of Telangana has communicated its acceptance for Option-1 out of the two options suggested by the Ministry of Finance to meet the shortfall in revenue arising out of GST implementation. The State has now joined 22 other States and 3 Union Territories (Delhi, Jammu & Kashmir and Puducherry) who have opted for Option-1.

The States who choose Option-1 are getting the amount of shortfall arising out of GST implementation through a special borrowing window put in place by the Government of India. The window has been operationalised now and the Government of India already borrowed an amount of Rs.18,000 crore on behalf of the States in three instalments and has passed it on to 22 States and 3 Union Territories on 23rd October, 2020, 2nd November, 2020 and 9th November, 2020. Now the Government of Telangana will receive funds raised through this window. The next instalment of borrowings is likely to be released on 23rdNovember, 2020.

Under the terms of Option-1, besides getting the facility of a special window for borrowings to meet the shortfall arising out of GST implementation, States are also entitled toget unconditional permission to borrow the final instalment of 0.50% of Gross State Domestic Product (GSDP) out of the 2% additional borrowings permitted by the Government of India, under AtmnirbharAbhiyaan on 17th May, 2020. This is over and above the Special Window of Rs.1.1 lakh crores.On receipt of the choice of Option-1from the Government of Telangana, the Government of India has today granted the State Government of Telanganaadditional borrowing permission of Rs.5,017 crore (0.5% of Telangana’s GSDP).

States who have opted for Option-1 are – Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Rajasthan, Sikkim, Telangana, Tripura, Tamil Nadu, Uttar Pradesh, and Uttarakhand, along with the three Union Territories of Delhi, Jammu & Kashmir and Puducherry. The amount of additional borrowing permission granted to these States and the amount of funds raised through special window and released to the 22 States and 3 UTs so far is annexed.

State wise additional borrowing of 0.50 percent of GSDP allowed and amount of funds raised through special window passed on to the States till 17.11.2020

(Rs. in Crore)

S. No	Name of State / UT	Additional borrowing of 0.50 percent allowed to States	Amount of fund raised thrugh special window passed on to the States/ UTs
1	Andhra Pradesh	5051	512.96
2	Arunachal Pradesh*	143	0
3	Assam	1869	220.87
4	Bihar	3231	866.51
5	Goa	446	186.36
6	Gujarat	8704	2046.8
7	Haryana	4293	966.04
8	Himachal Pradesh	877	381.13
9	Karnataka	9018	2754.08
10	Madhya Pradesh	4746	1008.21
11	Maharashtra	15394	2658.85
12	Manipur*	151	0
13	Meghalaya	194	24.77
14	Mizoram*	132	0
15	Nagaland*	157	0
16	Odisha	2858	848.39
17	Rajasthan	5462	327.01
18	Sikkim*	156	0
19	Tamil Nadu	9627	1385.52
20	Telangana#	5017	0
21	Tripura	297	50.43
22	Uttar Pradesh	9703	1333.32
23	Uttarakhand	1405	514.28
	Total:	88931	16085.53
1	Delhi	0	1301.77
2	Jammu & Kashmir	0	504.26
3	Puducherry	0	108.44
	Total:	0	1914.47
	Grand Total	88931	18000

* These States have ‘NIL’ GST compensation gap

# Funds will be released starting from next round of borrowing.

Tags: GST

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Lakshmi Vilas Bank – RBI announces Draft Scheme of Amalgamation

Lakshmi Vilas Bank – RBI announces Draft Scheme of Amalgamation

RESERVE BANK OF INDIA

PRESS RELEASE

November 17, 2020

The Lakshmi Vilas Bank Ltd.: RBI announces Draft Scheme of Amalgamation

The Reserve Bank of India has today placed in public domain a draft scheme of amalgamation of The Lakshmi Vilas Bank Ltd. (LVB) with DBS Bank India Ltd. (DBIL), a banking company incorporated in India under Companies Act, 2013, and having its Registered Office at New Delhi.

DBIL is a wholly owned subsidiary of DBS Bank Ltd, Singapore (“DBS”), which in turn is a subsidiary of Asia’s leading financial services group, DBS Group Holdings Limited and has the advantage of a strong parentage. It has been issued a banking license to operate as banking company under Section 22 (1) of the B R Act, on October 4, 2018. DBIL has a healthy balance sheet, with strong capital support. As on June 30, 2020, its total Regulatory Capital was ₹7,109 crore (against Capital of ₹7,023 crore as on March 31, 2020). As on June 30, 2020, its GNPAs and NNPAs were low at 2.7% and 0.5% respectively; Capital to Risk Weighted Assets Ratio (CRAR) was comfortable at 15.99% (against requirement of 9%); and Common Equity Tier-1 (CET-1) capital at 12.84% was well above the requirement of 5.5%. Although the DBIL is well capitalised, it will bring in additional capital of ₹2500 crore upfront, to support credit growth of the merged entity. Owing to comfortable level of capital, the combined balance sheet of DBIL would remain healthy after the proposed amalgamation, with CRAR at 12.51% and CET-1 capital at 9.61%, without taking into account the infusion of additional capital.

The Reserve Bank invites suggestions and objections, if any, from members, depositors and other creditors of transferor bank (LVB) and transferee bank (DBIL), on the draft scheme, which may be sent to the address mentioned in the “Notice”. The draft scheme has also been sent to transferor bank and transferee bank for their suggestions and objections. The suggestions and objections will be received by Reserve Bank up to 5.00 PM on November 20, 2020. The Reserve Bank will take a final view thereafter.

It may be recalled that the The Lakshmi Vilas Bank Ltd. has been placed under an order of moratorium on November 17, 2020 which will be effective upto December 16, 2020.

(Yogesh Dayal)

Press Release: 2020-2021/647                                                    Chief General Manager

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Board of Directors of Lakshmi Vilas Bank superseded by RBI

Board of Directors of Lakshmi Vilas Bank superseded by RBI

RESERVE BANK OF INDIA

PRESS RELEASE

November 17, 2020

Supersession of the Board of Directors – Appointment of Administrator – The Lakshmi Vilas Bank Ltd.

In exercise of the powers conferred under Sub-section (1) of Section 36 A C A of the Banking Regulation Act 1949, the Reserve Bank has, in consultation with Central Government, superseded the Board of Directors of The Lakshmi Vilas Bank Ltd. for a period of 30 days owing to serious deterioration in the financial position of the bank. This has been done to protect the depositors’ interest. Shri T. N. Manoharan, former Non Executive Chairman of Canara Bank has been appointed as the Administrator under Sub-section (2) of Section 36 A C A of the Act.

(Yogesh Dayal)

Press Release: 2020-2021/646                                                         Chief General Manager

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Summary of recent GST Portal Updates

Summary of recent GST Portal Updates

Below is the summary of recent GST Portal Updates. We hope you shall find the same helpful.

1. Auto-populated Form GSTR 3B (PDF) for the taxpayers, from the month of October 2020 onwards

a. GSTN has introduced auto-populated Form GSTR-3B in PDF format, for benefit of the taxpayers. The auto-populated PDF of Form GSTR-3B will consist of: –

i. Liabilities in Table 3.1(a, b, c and e) and Table 3.2 from Form GSTR-1.

ii. Liability in Table 3.1(d) and Input Tax Credit (ITC) in Table 4 from auto-drafted ITC Statement from Form GSTR-2B.

b. This facility is made available in Form GSTR 3B dashboard from October 2020 tax period onwards.

c. This facility will become available for taxpayers who are registered as Normal taxpayer, SEZ Developer, SEZ unit and casual taxpayer.

d. The system generated PDF will be made available on GSTR-3B dashboard. Taxpayers will be able to access their Form GSTR-3B (PDF) through: Login to GST Portal > Returns Dashboard > Select Return period > GSTR-3B> System Generated 3B.

e. Please note that this statement is for reference purpose only. Taxpayer is required to calculate the Output Tax Lability/Input Tax Credit and Reverse Charge Liability as per GST Law.

2. Auto-population of e-invoice details into GSTR-1

a. Taxpayers having Aggregate Annual Turnover of more than Rs. 500 Cr. are required to prepare and issue their invoices by obtaining Invoice Reference Number (IRN) from Invoice Registration Portal (IRP) (commonly referred as ‘e-invoices’).

b. Upon successful generation of IRN, details of such e-invoices will be auto-populated in respective tables of GSTR-1. The details of e-invoices available for auto-population along with status of auto-population can also be downloaded as excel file.

3. Update on Blocking of E-Way Bill (EWB) generation facility, after 1st December 2020

a. The Central Board of Indirect Taxes and Customs ( CBIC ) has clarified that, E-Way Bill generation facility will be blocked for all Taxpayers irrespective of their Aggregate Annual Turnover who failed to file their GSTR-3B/Form-CMP 8 return (as the case may be) for 2 or more Tax periods from December 1st, 2020.

b. As of now this rule is applicable on taxpayers having Aggregate turnover of more than Rs. 5 Crore.

Official Link for these Updates: https://www.gst.gov.in/newsandupdates

Disclaimer: The entire contents of this document have been prepared based on relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility, therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information. In no event I shall be liable for any direct, indirect, special, or incidental damage resulting from, arising out of or in connection with the use of the information.

Tags: GST

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Advisory on auto-population of e-invoice details into GSTR-1

Advisory on auto-population of e-invoice details into GSTR-1

1. Certain notified taxpayers have to prepare and issue their invoices by obtaining Invoice Reference Number (IRN) from Invoice Registration Portal (IRP) (commonly referred as ‘e-invoices’).

2. Upon successful generation of IRN, details of such e-invoices will be auto-populated in respective tables of GSTR-1. The same can be downloaded as excel file as well.

3. In case the GSTR-1 for corresponding period was already filed by the taxpayer, then, the details from e-invoices can be downloaded as excel file only.

GST Portal Updates: Auto-Populated GSTR-3B, E-way Bill, E-Invoicing

4. The details would be auto-populated based on document date.

5. Auto-population into GSTR-1 is as follows:

S.No	Type of Supply	Auto-populated in GSTR-1 Table
1	Taxable outward supplies made to registered persons (other than reverse charge)	B2B 4A – Supplies other than those (i) attracting reverse charge and (ii) supplies made through e-commerce operator
2	Taxable outward supplies made to registered persons attracting reverse charge	B2B 4B – Supplies attracting tax on reverse charge basis
3	Export supplies	EXP 6A – Exports
4	Credit or debit notes issued to registered persons	CDNR 9B – Credit or debit notes (Registered) –
5	Credit or debit notes issued to unregistered persons	CDNUR 9B – Credit or debit notes (Unregistered) – with UR type as Exports with payment and without payment of tax

6. The item-level details in the document will be aggregated at rate-level for the purpose of auto-population into GSTR-1. For the auto-populated invoices, below additional details will also be displayed.

a. Source (e-invoice)
b. Invoice Reference Number (IRN)
c. Invoice Reference Number Date (IRN Date)

7. After auto-population of details from e-invoices, in case of cancellation of IRN, such documents will be deleted in the respective table.

8. Details of e-invoices auto-populated in GSTR-1 can be edited/deleted by the taxpayer. However, in such cases, the ‘Source’, ‘IRN’ and ‘IRN date’ fields will be reset to blank in respective tables of GSTR-1. Such edited documents will be treated as if they were not auto-populated but uploaded separately by taxpayer.

9. Before filing GSTR-1, taxpayers are advised to review the details of e-invoices auto-populated in specified tables:

a. By viewing them online on GST Portal, or
b. By downloading the JSON from GST Portal, or
c. By using APIs via GSP

10. Taxpayers are advised to modify/update only those documents where the details auto-populated from e-invoices are not as per the actual invoice issued.

11. Taxpayers are required to add details of supplies made in respective tables of GSTR-1, other than those auto-populated from e-invoices.

12. An additional facility of consolidated download of all documents auto-populated from e-invoices is available in GSTR-1 dashboard. For this, you can use ‘Download details from e-invoice (Excel)’ button on GSTR-1 dashboard.

It may to be noted that the auto-populated details in this excel file are as reported on e-invoice portal Invoice Registration Portal (IRP). So, any subsequent modifications made to the auto-populated documents (in GSTR-1 tables) would not be reflected in this excel file.

13. Taxpayer can use the link ‘e-invoice download history’ to view the list of last five downloaded files. On click of the link, you can download the file.

14. The excel file downloaded from GSTR-1 dashboard page will have details of all the e-invoices received from Invoice Registration Portal (IRP) including cancelled invoices.

Following additional information relating to such e-invoices will also be available:

a. Invoice Reference Number (IRN) – 64 string hash

b. Date of Invoice Reference Number (IRN date)

c. e-invoice Status – Valid/ Cancelled

d. Date of auto-population/ deletion (in case of canceled IRN) will be the date when the e-invoice details are auto-populated in GSTR-1 or when the IRN was cancelled. Any subsequent modifications made to the auto-populated documents (in GSTR-1 tables) would not be reflected in this excel file.

e. GSTR-1 auto-population / deletion status (either of the following):

• Auto-populated,
• Deleted,
• Auto-population failed,
• Deletion failed

f. Error in auto-population/ deletion – Error description, if any

Tags: GST

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RBI placed Lakshmi Vilas Bank under Moratorium

RBI placed Lakshmi Vilas Bank under Moratorium

RESERVE BANK OF INDIA

PRESS RELEASE

November 17, 2020

The Lakshmi Vilas Bank Ltd. placed under Moratorium

The financial position of The Lakshmi Vilas Bank Ltd. (the bank) has undergone a steady decline with the bank incurring continuous losses over the last three years, eroding its net-worth. In absence of any viable strategic plan, declining advances, and mounting non-performing assets (NPAs), the losses are expected to continue. The bank has not been able to raise adequate capital to address issues around its negative net-worth and continuing losses.

Further, the bank is also experiencing the continuous withdrawal of deposits and low levels of liquidity. It has also experienced serious governance issues and practices in recent years which have led to a deterioration in its performance. The bank was placed under the Prompt Corrective Action (PCA) framework in September 2019 considering the breach of PCA thresholds as of March 31, 2019.

The Reserve Bank had been continually engaging with the bank’s management to find ways to augment the capital funds to comply with the capital adequacy norms. The bank management had indicated to the Reserve Bank that it was in talks with certain investors. However, it failed to submit any concrete proposal to Reserve Bank and the bank’s efforts to enhance its capital through the amalgamation of a Non-Banking Financial Company (NBFC) with itself appears to have reached a dead end.

As such, the bank-led efforts through market mechanisms have not fructified. As bank-led and market-led revival efforts are a preferred option over a regulatory resolution, the Reserve Bank had made all possible efforts to facilitate such a process and gave enough opportunities to the bank’s management to draw up a credible revival plan, or an amalgamation scheme, which did not materialize. In the meantime, the bank was facing a regular outflow of liquidity.

After taking into consideration these developments, the Reserve Bank has come to the conclusion that in the absence of a credible revival plan, with a view to protecting depositors’ interest and in the interest of financial and banking stability, there is no alternative but to apply to the Central Government for imposing a moratorium under section 45 of the Banking Regulation Act, 1949. Accordingly, after considering the Reserve Bank’s request, the Central Government has imposed a moratorium for thirty days effective from today.

The Reserve Bank assures the depositors of the bank that their interest will be fully protected and there is no need to panic. In terms of the provisions of the Banking Regulation Act, the Reserve Bank has drawn up a scheme for the bank’s amalgamation with another banking company. With the approval of the Central Government, the Reserve Bank will endeavor to put the Scheme in place well before the expiry of the moratorium and thereby ensure that the depositors are not put to undue hardship or inconvenience for a period of time longer than what is absolutely necessary.

The Reserve Bank has also issued certain directions to the bank under section 35 A of the Act ibid.

(Yogesh Dayal)

Press Release: 2020-2021/645                                                         Chief General Manager

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GST Portal : Auto-population of e-invoice details into GSTR-1

GST Portal : Auto-population of e-invoice details into GSTR-1

1. Certain notified taxpayers have to prepare and issue their invoices by obtaining Invoice Reference Number (IRN) from Invoice Registration Portal (IRP) (commonly referred as ‘e-invoices’).

2. Upon successful generation of IRN, details of such e-invoices will be auto-populated in respective tables of GSTR-1. The details of e-invoices available for auto-population along with status of auto-population can also be downloaded as excel file.

To effect this, certain tabs/labels are being added on GSTR-1 dashboard and screens. (Those taxpayers for whom e-invoicing is not applicable may ignore these changes.)

3. For the period of October, 2020, the e-invoice details would be processed incrementally from 13th November, 2020. The processing of details of e-invoices/IRNs generated till 31st October, 2020 is expected to take upto 10 days.

4. The processing of documents, dated in October, 2020, has no effect on filing of GSTR-1 for October. The taxpayers are advised not to wait for auto-population but file GSTR-1 for October, on their own (if not filed already). However, there is an option to download the details of October-dated documents through excel file:‘Download details from e-invoice (Excel)’ button (available at the bottom portion of GSTR-1 dashboard).

5. Taxpayers are requested to verify the documents present in the excel and may share feedback on GST Self Service Portal , on below aspects:

a. All documents reported to IRP are present in excel
b. Status of each e-invoice/IRN is correct
c. All the details of document are populated correctly

6. For the period of November, 2020, the e-invoices generated (i.e. the documents dated in the Month of November) will be auto-populated into GSTR-1 in incremental manner and the process for whole month will be completed by 2nd Dec, 20 (i.e. on T+2 basis).

7. The detailed advisory with methodology of auto-population etc. is made available on the GSTR-1 dashboard (‘e-invoice advisory’) and also e-mailed to relevant taxpayers.

Team GSTN

Tags: GST

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