Features of -online tax return filing and other best practices- in the department of sales tax, maharashtra

Online RETURN filing process (1/2) The Department of sales Tax, Maharashtra has implemented the new system of return filing system for the period starting from 01/04/2016. In the new process--- A single Return template has been developed for all the return types under VAT and CST. A dealer is required download Return Template from the web site of the sales tax department This template contains annexures of sales and purchases in Excel format Dealer will fill invoice wise information in the annexures. The dealer can copy the information from sales and purchases from register and paste in the template. After validation of the data, the template itself prepares all return types under VAT and CST selected by the dealer. The dealer has only to key in the details of taxable sales tax rate wise, tax paid purchase, set off retentions. Rest all other fields and his tax liability/refund claim is automatically generated/calculated in the return forms auto-populated by the template. Thus, 90 percent of return in excel format will be auto prepared from auto summarization of sales and purchase annex values. A .txt file will be created after second validation. The entire process of filling up of sales and purchase annexures to creation of .txt file is offline.

Online RETURN filing process (2/2) In the new process contd --- The dealer has to log in to the website using his credentials. The dealer has to upload .txt file on the website . Draft pdf file is generated by the system and displayed to the dealer. If dealer finds this draft return as correct, then he has to press submit button. At this point of time, return of the dealer gets submitted finally. The dealer gets message on his mobile registered on the system about successful submission of the return. Simultaneously, the dealer gets message on his e-mail registered on the system about successful submission of the return along with the acknowledgement of the return so filed by him.

Key features of new process of return filing (1/2) The new system of filing of returns developed by the Department has some peculiar features-- Return preparation . requirement of the dealer to prepare has been done away with. The same is prepared by automatically on the basis of data filled in by the dealer. ITC report ITC Report will be available for the dealer on the system even before submission of return. The dealer can verify his ITC report TIN wise as well as invoice wise. It will be available for the dealer on the portal on real time basis. He can verify this for his suppliers as well as customers. In case of mismatch , the dealer claiming ITC will follow up his suppliers for compliance of return filing and tax payment. The time for cross verification of sales and respective purchase on which ITC claimed is reduced from 2 years to maximum 3 months. This has created a self policing mechanism among the dealers resulting in efficient follow up of the defaulting dealers.

Key features of new process of return filing (2/2) The new system of filing of returns developed by the Department has some peculiar features-- Ensuring Return compliance for previous periods :- The dealer cannot jump the period of filing of returns i. e. the dealer cannot file the return of May before filing the return of April. Ensure return compliance for previous period Separate Application for CST declarations not required :- the application for declarations under CST Act will be auto generated by the system as Since the invoice wise data is captured, The need for filing separate application for the same has been done away with. Separate Application for Refund not required :- the application for refund will be auto generated by the system as Since the invoice wise data is captured, The dealer will immediately come to know the allowable refund thereafter.

Comparison of old system with New system Particulars Old System New System Preparation 100% filling of all the return fields 10% filling of total return fields and 90% auto population of returns Return filing process Separate for each form Integrated process of return filing for all forms together Payment with returns Separate process of making payment and filing returns Return filing integrated with payment process Time More time required for above reasons Substantial saving of time

Online Payment E payments-more options Dealer will log on to www.mahavat.gov.in and upload this .txt file. This one step online Return filing is over at this point On the same screen dealer will ‘Proceed to pay’ He may make payment of taxes due with return. He may choose to pay later. E payments-more options Payment of VAT, CST, PT, ET, SCPT, Luxury Tax can be made through Payment Gateways GRAS and SBI e-Pay to be the Payment Gateways More Banks available for payment. Include Co-operative/Private Sector Banks Real time confirmation of the payments to the Department Online reconciliation of receipts- proper and timely credit of the payments.

OTHER BEST PRACTICES Billing Software for dealers Online end-to-end Registration Direct credit of refund amount to dealers account through NEFT. e-CST Declarations end to end automated Advance Ruling CDA and Risk Based Assessment

BILLING SOFTWARE Freely available to dealer from the MSTD Portal Dealers can generate invoices Dealer can create Sale and Purchase Annexures for filing of return It is very useful for small dealers

Online end-to-end Registration Single Application for all Acts Integration with third party agencies such as NSDL, Electricity Companies Online uploading of documents No physical contact required Electronic payment of Registration Fee

Direct credit of refund -to dealers account through NEFT. No physical contact for refund Direct credit of refund to dealers Bank Account through NEFT in T+1 days.

e-CST Declarations end to end automated End-to-end online process for issuance of online e-CST Declarations No physical presence is required

CDA and Risk Based Assessment Risk Based automatic selection of cases for assessment Dealers presence is not required if they accept and discharge the liability

Advance Ruling Dealer can get ruling in advance before effecting transaction Reduction in future litigations

Thank You 23 November 2018 MSTD e- Governance