Call it aadhar, adhar or aadhaar, it is a very important document in the complete list of documents for every Indian citizen. Many countries have one unique identification number for its citizens. This number is then used to capture all essential citizen details under it. Similarly, the Indian government has initiated a regime to use aadhaar number as the universal identification for Indians.

In this blog learn about: 

• What is aadhaar card? 
• How to apply? 
• How to download online? 
• Benefits of linking documents 
• Linking all essential documents

What Is Aadhaar card?

The 12 digit aadhaar number benefits the citizens to avail various subsidies introduced by the government. For example, subsidy on gas. The project is run and functioned by Unique Identification Authority of India (UIDAI) since 2009.  Aadhar card is issued once the application has been officially approved and an aadhaar number is assigned to you. However, as long as you have the number you don’t need the card.

How To Apply For Aadhaar Card? 

If you still haven’t created your aadhaar card then go to UIDAI’s official website and create one. The process requires you to be physically present for your biometrics as the application is not 100% online.

Here’s the step-by-step registration process:  

• Find a center near you.  
• Book an appointment with the center. It is recommended to book an appointment in order to save time. You can walk-in at the chosen center as well.  
• Fill the downloadable enrollment form or pick one at the center itself, fill all your details.  
• Submit the filled form at the center along with other supporting documents – identity and address proofs.  
• After the documents are verified and your biometric data will be captured – fingerprints and iris.  
• Your registration process is now completed. Do collect your enrolment slip with a 14 digit number. You can check your aadhaar card number status by entering the enrollment number on the UIDAI’s website. 

By registering your mobile number you can receive all details related to aadhaar card on your mobile.  

How To Download Aadhaar Card Online? 

In the UIDAI website fill all the e-aadhaar details. Once you receive and fill the OTP, you will be able to download your e-aadhaar.  

Recently, the Indian government has taken up the unique identification project much seriously by making all essential documents to be linked mandatory.

Benefits of Linking Aadhaar Card 

• Restricts unauthorized migration – People who do not have authorized identification can be spotted easily. This enables the government to take accurate measures at the right time.
• Centralizes all citizen details – As all your important documents are linked to one document monitored by the government constantly, it becomes easier to eliminate fraud in the country.
• Avails various government subsidies – To citizens, for example, LPG or ration card subsidy. 

The essential documents include PAN card, mobile number, voting id, driving license, LPG, ration card and bank account to name a few. Here’s how you can link your aadhaar card to these documents: 

How To Link Aadhaar Card to PAN Card? 

Permanent Account Number (PAN) is a code which acts as an identification for Indian nationals filing income tax. The simple linking process is as follows: 

1. Go to income tax filing official site 
2. Click on ‘Link Aadhaar’ 
3. Fill all the required details 
4. Again, click on ‘Link Aadhaar’ 

Make sure all the details – name, date of birth is same on both the cards. In case of any minor mismatch, OTP will be required.  As per the revised regulation, the final date of linking is March 31, 2017. 

How To Link Aadhaar Card to Mobile Number ?

This can be done with just 4 easy steps:

1. Go to the nearest mobile service provider.
2. Carry your aadhaar card copy and an active SIM card or mobile number.
3. You will receive OTP on your active mobile number which needs to be submitted to store executive. Biometrics are also required for successful linking process.
4. You will receive an SMS within 24 hours. To complete the e-KYC reply “Y” to the SMS.

Now your mobile number has been successfully linked. The government has enabled three different ways to link:

• OTP – in the store the service executive will send an OTP to your active mobile number. Verify the received OTP with the executive for successful linking.
• Agent-assisted – This is the safest and popular method for SIM and insurance verification. The telephone operators are instructed to neither disclose subscriber data to anyone nor stored in their device.
• Interactive Voice Response System (IVRS) – It is a specially designed app for aadhaar verification. 

The final date of linking is February 6, 2018.  

How To Link Aadhaar Card to Bank Account?

Be it linking aadhaar card to SBI, HDFC or ICICI here’s physical linking process: 

1. Download, print and fill form
2. While filling the form be careful and provide accurate details only.  
3. Attach a copy of aadhaar card to the form and submit it to your bank branch. 
4. Once the bank representative receives and uploads your information, he will verify your submission. 
5. After everything is ensured the representation will attest your submission. 

Do not miss out on carrying your originals along with you.  You can also complete the linking via net banking: 

1. Login to your net banking account. 
2. Look for options like ‘Update Aadhaar Card details’. 
3. Once you click on the option provide all the correct details. 
4. After you hit ‘Submit’, the bank representatives will verify your details. 
5. You will be notified about your bank linking process via email or SMS.  

You can check the status on your own as well: 

1. Go to UIDAI’s official site.
2. Click on ‘Check Aadhaar & Bank Accounting Linking Status’.
3. Fill all the required details.
4. You will get to the status after submitting the details.
5. The final date to linking aadhaar card to bank account is March 31, 2018 

How To Link Aadhaar Card to Voter ID?

Simply: 

1. Visit the NVSP portal and fill the required details 
2. Click on “Search” portal 
3. All your details that match the details you provide will flash on your screen 
4. Click on “Feed Aadhaar No” 
5. Fill the required details and submit 
6. A notification regarding the linking will show up on your screen 

Linking via SMS: 

1. Type ECILINK <EPIC Number> <Aadhaar number> without any space in the middle 
2. Send it to 166 or 51969 

How To Link Aadhaar Card to Ration Card?

The government will be able to keep a check on the individuals ineligible for receiving subsidized fuel or grains. Also, there would be no duplication of the ration cards.  You can link aadhaar card to your ration card in 2 ways – offline & online. The offline linking process includes: 

1. Carry aadhaar card originals and photocopies of all your family members, a copy of your ration card, passport size photo of the head of the family to the rationing office. 
2. Once the documents have reached the relevant officials you will be notified of the linking status via SMS or email.  

The online linking process involves:  

1. Go to the UIDAI official website 
2. Fill the required details 
3. Choose benefit type and scheme name as ‘Ration Card’ 
4. You will receive an OTP which needs to be fed into further process 
5. You will receive notifications once the application is successfully verified and linked. 

With all the final dates coming closer, linking your aadhaar card to all your essential documents ought to be your top priority. If you still haven’t begun the process then, its time to start now. Stay tuned to PayUmoney blog and grow your business effortlessly.

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What is GSTR?

To update the invoices completely, taxpayers and businesses have to file specific returns with the Government. All the information provided by the taxpayer is securely protected and housed by GSTN (Goods and Services Tax Network) – a non-profit organization which is promoted by the central and state governments, in order to boost technical infrastructure and services required for implementing GST reform in the country.

Under the GST law, a normal taxpayer is required to be equipped with 3 monthly returns and 1 annual return. You can file GST returns online by logging in.

What to file?

A normal taxpayer or business (a registered taxpayer with an annual income of 20 Lacs or more, and 10 Lacs in the North Eastern and other hilly regions) has to follow the filing process mentioned below:

GSTR 1

It all starts with Goods and Service Tax Return 1. GSTR 1 is a statement of outward supplies and has to be paid by all registered taxable users. It signifies the tax liability of the supplier for his supplies belonging to the previous month. It has to be filed by the 10th of every month.

*According to Sec 2(73), the new definition of Outward supply refers to supply in relation to a person, shall mean supply of goods or services, whether by sale, transfer, barter, exchange, license, rental, lease or disposal or any other means made or agree to be made by such person in the course of furtherance of business.

For example, you own a furniture business then, a statement of all your outward supplies made for the month of July 2017 needs to file in August 2017.

Exceptions: E-Commerce operators, input device distributors, dealers registered under the composition scheme, non-resident dealers and tax deductors.

GSTR 2

It is a statement of inward supplies. Here, the receiver taxpayer of the goods and services has to file the return within the given stipulated time period i.e.15th of every month. These return filers can accept, modify, reject or keep the invoice filed by the supplier taxpayer in GSTR 1 pending. It is auto-populated from the first return filed by the registered taxpayer’s corresponding supplier.

For example, now you are at the receiving end of the furniture supplier (example continued from above) i.e. you purchased furniture from the supplier, hence you are the receiving end/ purchaser and have to file GSTR 2.

Exceptions: input service distributors, taxpayers under composition scheme and non-resident taxable persons.

GSTR 3

Unlike in GSTR 1 where the taxpayer is required to provide details of outward supply and GSTR 2 which mandates the provision of inward supply, the third return is a centralized file. In this return, the consolidated information includes:

1. Aggregate level outward and inward supply information is auto-populated. (GSTR 1 & 2)
2. Real-time input tax credit (ITC) ledger.
3. Tax payable
4. Tax paid (cash & ITC)

This return needs to be filed by a registered taxable person by 20th of each month.

GSTR 8: A return to be filed by an E-commerce website

Here is an intentional direct leap from GSTR 3 to 8, mainly because of PayUmoney and this particular return has one thing in common – E-commerce. Under this return, specifically dedicated to e-commerce operates (those who build and operate online marketplaces which make way for other resellers to make business) the taxpayer is required to collect tax at source (TCS) under GST. The e-commerce operates will do so electronically through a common portal. The return filed must contain information about the supplies made via the e-commerce portal to the customers. It basically includes:

• Customers – registered or non-registered
• Customer’s basic information (registered or non-registered)
• Amount of tax collected at source (TCS)
• Tax payable
• Tax Paid

The date associated with filing your eighth GST return is by the 10th of every month.

Yearly Returns

Here, the taxpayers need to provide complete details of the entire year’s expenses and income. It has to be filed by the 31st of the next Financial Year.

Image source: www.cbec.gov.in

Returns Error

In case you go wrong while filing your return, you cannot undo or erase the mistake at the same time. You can revise or make changes in your previous month’s GSTR, only in the amendments section on the next month’s returns form.

Penalty

In case you do not file your return on time (within the due dates mentioned above) you will be penalized with Rs.100 per day and the amount can rise up to Rs. 5000 as the case may be.

Make sure you do not miss out on any of these dates

Image source: www.cbec.gov.in

Disclaimer: Please consult a GST expert / Chartered Accountant (CA) before filing your returns.

The post An Overview: GST Returns appeared first on PayU Blog.

Tax changes?

Previously, dealers registered under VAT were issued a TIN number & service providers were given a service tax registration number by the Central Board of Excise and Custom (CBEC). From July 1^st, a single platform called GSTN has been introduced to provide IT infrastructure for all those under the compliance. Here, the Goods and Services Tax Identification Number (GSTIN) will be used to collect or pay taxes. It is a 15 digit PAN based number with State code & business vertical details as shown below:

At PayUmoney payment gateway, we are helping merchants comply with GST laws & transition to the GSTIN network by completing easy steps shown here with a dummy account:

Login to PayUmoney seller Dashboard:
Head over to the ‘Account Details’ section on the left:

Move to ‘GST Details’ section:

Click on ‘Add your GST Number’:

Enter Correct 15 digit GSTIN & Operating Address details and Click on Submit.

Service Tax changes?

In the era from July 1^st 00.00.00 Hours, the Service Tax will be levied at 18% instead of the 15% on all transactions. This is in accordance with the guidelines issued by the Government of India and the GST council.

To comply with the GST laws, it is imperative that you update your GSTIN on our dashboard asap. Login to our payment gateway dashboard now!

Read this blog to know more about the impact of GST on your online business

The post GST Ready Payment Gateway appeared first on PayU Blog.

What is GST?

GST is the single biggest tax reform in India aimed at replacing all indirect taxes like sales tax, service tax, VAT, customs duty, central sales tax, entertainment tax, luxury tax etc. GST is “one indirect tax” on the supply of goods and services, right from manufacturers to the end consumer for the entire country, which will make India one unified common market. In the current scenario, indirect tax is highly complex due to the multiplicity of taxes, compliances issues obligations, tax overlaps.

What will be the impact of GST on e-commerce business?

Let’s first understand what Electronic Commerce & Electronic Commerce Operator means under the ambit of GST: “Electronic commerce” is the supply of goods or services or both of them. This includes digital products sold over digital or electronic network; { as under Sec.2 (44) of CGST Act}

An “Electronic commerce operator” is any person who owns, operates or manages the digital or electronic facility or platform for electronic commerce. { as under Sec.2 (45) of CGST Act}. Also, a person providing information or any other services incidental to or in connection with such supply of goods & services through electronic platform will be considered as an Operator.

Here are few real-life examples to explain how different sellers in the online world will be affected by GST:

1. Direct Supply from Seller to Customer: –
Sellers who have their own website for their business and do not rely on other online aggregators for the listing of goods. In this case, Central GST (CGST)/State GST (SGST) shall be charged by a seller in case of an intrastate transaction and IGST in case of an interstate transaction.

Eg: Rahul orders a book from bookshop.com. The online website shall be maintained by the seller – Bookshop & the invoice of the book has to be generated by Bookshop and shall levy GST on the product sold.

2. Supply from Seller to Customer via online Aggregators/Intermediary: –
Products of sellers are listed on websites of aggregators. These orders are in turn given to the Seller for delivery of the goods. Here, the seller has to make the invoice & deliver the same to the customer directly. The invoice shall contain the name of the company/firm, Reg. Address, TIN/CST no. etc.

Example: Mr. Rohan orders the latest mobile from the Online aggregator. The aggregator will now book an order on behalf of the Seller named XYZ Retailer. So, the aggregator will ask XYZ Retailer to deliver goods to the customer. Here, the seller XYZ shall levy GST on the goods. The aggregator shall generate an invoice and charge GST according to the services given to the seller like Courier, Shipping charges, Booking, Commission etc in the name of the seller. Invoice to be charged can vary according to T&C contained in MOU with sellers. Eg – If goods are delivered by e-commerce platform to the customer then shipping charges shall be charged by platform in the bill.

3. Sellers to Online Portal to Customers: –
Here, online portals buy goods from sellers and then these portals sell to final customer i.e. the inventory has to be bought by the portal. Role of e-commerce site shall not be limited to provide interface but also to become the owner of the goods.

For example, Mr. Sourabh orders portable speaker from the Online Website ABC, this site will book order & purchase the goods from Shashi Electronics to deliver the goods to Customers. The invoice of the said speaker will now be created by Shashi Electronics including TIN No. and addressed to the Website – ABC. Now, ABC will issue an invoice to Customer.

Who needs to be GST compliant?

The following type of businesses need to register:

• Any business crossing the threshold limit
• Existing businesses registered with the central (Excise / Service Tax) or state (VAT) authorities
• Taxable person carrying on an interstate supply
• Businesses liable under reverse charge in GST ambit
• Businesses wanting to collect GST or claim input (despite being below threshold) can take voluntary registration

How to become compliant?

Registration process for a new seller
A seller has to fill in registration application in less than 30 days of crossing the prescribed threshold / starting of a business. Here, the date of application would be considered the effective date of registration for obtaining Input Tax Credit (ITC).

Registration Process for an existing sellers
All sellers registered with central or state tax authorities would be migrated to GST by default and allotted Goods and Service Tax Identification Number (GSTIN). Sellers falling below the threshold may continue to be registered and get benefits of GST credit chain or opt out themselves.

GSTIN:

It is a 15 digit PAN based number with state code & business vertical details as shown below:

State Code: To be based on India census 2011. Ex: 27 for Maharashtra and 29 for Karnataka
Entity Code: Alphanumeric 1 to 9 and A to Z based on number of business verticals in a state for the same PAN (i.e 9 digits plus 26 characters, a total of 35 business verticals per state is possible)

You can read this blog about the impact of GST on online businesses. Stay tuned with PayUmoney blog for more updates and insights.

The post GST For Online Businesses appeared first on PayU Blog.

Following are the key impacts and recommendations for an online business on account of GST:

Impact Of GST On Online Businesses

The reform not only revamps the current paradigm of indirect taxes but also improves tax compliances.

Ease Of Starting-up

GST brings in the uniformity through centralized registration which makes it easier for online businesses to get started.  This centralized system replaces the old and rigid process of VAT registration issued by Sales Tax Department.

Higher Exemptions

Earlier businesses with a turnover of more than Rs. 5,00,000 needed a VAT registration. The reform increases this bar to Rs. 10 Lakh, thereby bringing respite for new businesses.

Simple Taxation

It aims to minimize the hitches in the double tax system. It simplifies the process by integrating all taxes into a Uniform GST.

Reduction In logistic costs

The reform eliminates border taxes which is levied upon movement of goods from one state to another. Hence the costs inculcated in the logistics movement will come down.  A seamless interstate flow of goods will further accelerate the demand for logistics services. It reduces the cost competitiveness as players are directly brought under a single tax regime.

Compliances Under GST For eCommerce

GST brings absolute clarity with regard to the applicability of taxes on transactions undertaken by eCommerce companies. 

Setting Up Of SPV

The success of GST is highly dependable on a robust IT system. Therefore, GSTN, which is a special purpose vehicle (SPV) has been set up. It aims to provide a common portal for registration, return filing and e-payment facilities.  

Tax Collection At Source

GST devices that any payment made to a supplier would be subject to tax collected at source. Also, it becomes mandatory for an eCommerce company to pay tax on the price it has purchased the good from the supplier, in case it decides to sell a product on discount.

Definition Of eCommerce

eCommerce has been defined absolutely under the GST Act. 

‘Electronic commerce’ shall mean the supply or receipt of goods or services, or transmitting of funds or data, over an electronic network, primarily the internet, by using any of the applications that rely on the internet, like but not limited to e-mail, instant messaging, shopping carts, Web services, Universal Description, Discovery and Integration (UDDI), File Transfer Protocol (FTP), and Electronic Data Interchange (EDI), whether or not the payment is conducted online and whether or not the ultimate delivery of the goods or services is done by the operator.’

It would be interesting times ahead with considerable changes GST brings into the tax system.  Stay tuned with PayUmoney Knowledge platform for updates and insights.

Source: Ministry of Finance, Government of India

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