EMAIL FROM GSTN AND THERE REPLY

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EMAIL FROM GSTN AND THERE REPLY

07/08/2020

Email from GSTN on Aggregate Turnover under GST (noreply@gstn.gov.in) – Aggregate turnover being more than Rs. 5 Cr during FY 2019-20

CONTENT OF THE EMAIL

“ Dear 05ZXCVF1234C1B3 (Trade Name)

Your aggregate turnover for the financial year 2019-20 has been computed by GST system based on the returns filed in Form GSTR-3B by all registrations on the common PAN. The same has been found to be more than Rs. 5 Cr where returns of FY 2019-20 filed upto 25^th July, 2020 have been considered for the said computation.

Your attention is drawn to definition of ‘Aggregate turnover’, defined under clause 6 of section 2 of the CGST Act, 2017. Accordingly, following methodology to compute aggregate turnover has been adopted:

(a) Turnover declared in Table 3.1(a), 3.1(b), 3.1(c) and 3.1(e) of GSTR-3B has been accounted for the computation.

(b) If the return of a tax period which was due to be filed but has not been filed for any of the GSTINs registered on the common PAN, the turnover of that period has been estimated by way of extrapolation as under:

[(Turnover declared/ No. of GSTR-3B filed) * No. of GSTR-3B liable to be filed]

(c) The turnover (including extrapolated turnover) of GSTINs has been summed up at PAN level.

Further, it is brought to your notice that the above turnover will be used for certain validations in the System such as determining due date of return filing, computation of late fee by the system. You can also use the same for reporting interest on delayed payments based on self-assessment basis.

If any discrepancy is found in the turnover data based on the computation, as explained above and the actual turnover, the taxpayer may file a grievance at https://selfservice.gstsystem.in for redressal. The taxpayers are advised to upload the information while raising complaint in following format, which will enable our team to resolve the same:

Many of us have received an email from GSTN on 4^th August, 2020 about Aggregate turnover being more than Rs. 5 Cr during FY 2019-20.

Aggregate turnover for the financial year 2019-20 has been computed by GST system based on the returns filed in Form GSTR-3B by all registrations on the common PAN which exceeds Rs. 5 Cr. The returns of FY 2019-20 filed up to 25th July, 2020 have been considered for the said computation.

COMPUTATION OF AGGREGATE TURNOVER

Method-1 Sum of the turnover as declared in GSTR 3B filed for all tax periods for 2019-20.

Method-2 Return of a tax period which was due to be filed but has not been filed for any of the GSTINs registered on the common PAN, the turnover of that period has been estimated by way of extrapolation as under –

(Turnover declared/ No. of GSTR-3B filed) * No. GSTR-3B liable to be filed

Method-3 The turnover (including extrapolated turnover) of GSTINs has been summed up at PAN level

The purpose of determining these turnover limit is to put validations for various purposes.

Determining due date of return filing (20^th or 22^nd or 24^th of subsequent month for GSTR 3B)

Computation of late fee by the system

Interest calculation relief for covid pandemic

HOW TO RESPOND TO THE E-MAIL-THESE SITUATIONS MAY COMES FORWARD

Situation A: Aggregate Turnover as per GSTR 3B is more than 5 crore

Nothing to do u can ignore the mail because govt wants to inform your status, that you are in the category of above 5 crore, which you already aware about.

Situation B: Aggregate Turnover as per Books is less than 5 crore, but Reported Turnover as per GSTR 3B is more than 5 crore

This happens when Some Taxpayer Report the turnover of last financial year in to the F Y 2019-20 (i.e. 2018-19)

Credit Note (Sales) late reported was issued till 31-03-2020
Wrongly reported excess figure which are required to be adjusted in FY 2020-21.

In above situations the tabular format given in the mail should be filled up and detailed computation of Aggregate turnover should be annexed.

Situation C: Aggregate Turnover as per Books is more than 5 crore, but you have not received any such Email

Be sure that you are filing GST Returns during FY 2020-21 according to actual due dates applicable to you (As more than 5 Crore case).You may be liable to Late Fees (even if GST portal is not auto-computing) & Interest as applicable for Taxpayer with Turnover above 5 crores.

Fact should be raised at Grievance Portal & actual due dates to be followed always.

Situation D: Aggregate Turnover as per Books as well as GSTR 3B is below 5 Crores, but you have also received such Email

In such cases, Tabular Format as given in the email should be filled & detailed computation of aggregate turnover as per Books of accounts (Computed as per GST Law) should be annexed in the Grievance raised. Facts/Reason must be disclosed along-with working sheet.