Dated:- 12-10-2015 – INTRODUCTION During the Empowered Committee meeting held on 10th March, 2014, it was decided that a Joint Committee under the co-convenership of the Additional Secretary (Revenue), Government of India and the Member Secretary, Empowered Committee should be constituted to look into the Report of the Sub-Group-I on Business Processes for GST and make suitable recommendations for Payment and Return to the Empowered Committee. Accordingly, a Joint Committee, in consultation with the Government of India, was constituted on 7th April, 2014 (Annexure-I). The Committee held its deliberations on 28th October, 2014, 12th November, 2014, 25th November, 2014, 22nd December, 2014, 2nd and 3rd February, 2015, 19th and 20th February, 2015 and 16th and 17th April, 2015. 2. The Joint Committee on Business Processes for GST held on 2nd February, 2015, it was decided to constitute a sub-committee on GST Payment Process. Pursuant to that decision, the Member Secretary, Empowered Comm
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y taxation regime, every transaction of the tax payer with the tax administration should be transparent, responsive and simple. It has been experience of tax administrations that more the system and procedures are made electronic more is the efficiency of tax administration and greater is the satisfaction of taxpayer. In this context, payment system of GST should also be based on Information Technology which can handle both the receipt and payment processes. 5. The objectives of this report are as under: a) Highlight key issues in tax collection, collation, remittance and reporting of tax collection into Government account; b) Need for a uniform system of banking arrangements for collection, remittance and reporting of GST to both Central and State Governments; c) Proper accounting and bank reconciliation of taxes derived from basic data of payments made by taxpayers to banks, with the required classification of heads of accounts indicated on the Challan; d) Designing the format of a n
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in electronic format; e) Faster remittance of tax revenue to the Government Account; f) Paperless transactions; g) Speedy Accounting and reporting; h) Electronic reconciliation of all receipts; i) Simplified procedure for banks; j) Warehousing of Digital Challan. 8. With the above features in mind the following three modes of payment are proposed: a) Payment by taxpayers through Internet Banking through authorized banks and through credit card/debit card; (Section 45 of RBI Act, 1934 permit banks other than RBI to be appointed as agency banks for carrying out government business. Agency banks are permitted to both receive and make payments on behalf of the Government and therefore act as Banker to respective governments. However, authorized banks are only permitted to receive payment of GST on behalf of the Government, and keeping this distinction in view, the expression authorized bank is used throughout this Document.) b) Over the Counter payment (OTC) through authorized banks; c) P
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an aggregator through its e-Kuber system. Such role will facilitate participation of larger number of banks in GST receipts enhancing convenience for the tax payers and provide single source of information for credit of the receipts to Government accounts and thereby simplifying accounting and reconciliation tasks. In case of any discrepancy found during the reconciliation by the Accounting Authorities, they would directly interact with RBI. Joint CGA suggested that as per the provisions of Section 20 of the RBI Act, 1934 in the proposed scenario, RBI would be the sole banker to the Governments. RBI, on the other hand, has indicated that Section 20 and Section 45 of the RBI Act, 1934 are not mutually exclusive and therefore there would not be any conflict in the role envisaged for the RBI in the proposed model. 11. Each of the above modes is discussed separately along with the role of stakeholders involved, process of reporting, accounting and reconciliation of data. As already mentio
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Network); b) e- FPBs (Electronic Focal Point Branches) of authorized banks; c) e-Kuber of RBI; d) Central Accounts Section (CAS) of RBI, Nagpur; e) e-PAOs (Electronic Pay and account Offices) / e-Treasuries of State Governments; f) Pr. CCA, CBEC (Principal Chief Controller of Accounts) / Accountant General of the States; g) Tax authorities of Centre and States. Process involved in e-payment of GST: 13. Every tax payer who wants to avail the facility of e-payment will access GSTN for generation of the Challan through which payment is to be made. The following methods for creation of draft challan for GST payments are recommended: a) By Registered tax payer or his authorized person by logging on to GSTN Common Portal where basic details (such as name, address, email, mobile no. and GSTIN) of the tax payer will be auto populated in the challan; b) By authorized representatives of tax payers by logging on to the GSTN Common Portal whereafter the list of registered taxpayers represented by
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e CAPTCHA) so that challan can be created by a person and not by machine. 14. The issue whether challans should have provision for entering jurisdictional location ( e.g. Commissionerate, division and range) was discussed in detail and it was decided that the same will not be mentioned in the challan. Instead, the Tax authorities would send the Taxpayers updated master data to GSTN as well as to Accounting Authorities. The incremental changes in the said master would also be sent on real time basis by the Tax authorities to GSTN and Accounting authorities. As challan would not have a jurisdictional location code, the Accounting Authorities would use the TAXPAYER Master received from Tax authorities for mapping the challans with the Jurisdictional PAOs / tax authorities offices by having a suitable mapping mechanism. 15. Upon creation of the draft challan, the taxpayer will fill in the details of the taxes that are to be paid. The challan page will have sets of mandatory fields, which t
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PINs would remain live with RBI for a period of 30 days. GSTN would purge all unused CPINs on the day immediately after the date on which the validity period is over (i.e. 7 days if Mode I or II is selected and 30 days if Mode III is selected for payment). At the end of each day (EOD), GSTN would send all the CPINs generated on that day to the Accounting authority of the Centre and to those accounting authorities of the states that so desire. The suggested format of the challan is appended at Annexure – IV which is a common format for all three modes of payment. Since the challan would be prepared electronically, chances of errors will be minimal. However to deal with challan correction in exceptional circumstances, a challan correction mechanism, prepared in consultation with the office of Pr. CCA, CBEC is detailed in paras 123 and 124 below. 16. Since there are three modes of payment, the tax payer has to choose the e-payment mode. This mode will also cover payment by Credit/Debit Ca
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he gateway provider should collect this amount separately over and above the challan amount. The challan amount should be fully credited to respective Government accounts maintained with the authorised bank (acquiring bank for CC/DC payments), while the gateway charges should be retained back by the gateway provider. The Government/GSTN should procure the payment gateway services from the authorised banks (or their SPVs) through an appropriate competitive process to keep the charge rates low. The Committee also deliberated the issue of charge back claims in case of credit card based payment, and felt that the possibility of such claims on payments to the government is minimal and manageable, especially in view of implementation of two-step authentication norm by the banks. In addition, the taxpayer would be required to pre-register his credit card, from which the tax payment is intended, with the GSTN system. GSTN may also attempt to put in a system with banks in getting the credit car
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face with GSTN common portal to capture challan amount breakup in terms of CGST, IGST, Additional Tax and SGST. Along with the interface, associated accounts for CGST, IGST, Additional Tax and state-wise accounts for SGST should be created by the Authorized banks associated with the gateway service providers. The breakup received from GSTN common portal will be used to credit the amounts received under respective accounts created for the purpose. The Committee noted that in respect of credit card payments, presently the acquiring bank is permitted to transfer the amount to the merchant on T+3 basis. Thus there may arise some situations where the taxpayers account has been debited on T+0 basis whereas Government s account in authorised bank would be credited on T+3 basis. It was informed by RBI that this time could be reduced to T+1 basis by suitable negotiations with the payment gateways. It is recommended that suitable negotiations may be carried out by the Accounting authorities and
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d seek confirmation from the user. No change in the break up as well as the total amount would be allowed on the Bank s portal. In case the user wants to change the break up or the total amount, he should abort the transaction and go back to GSTN portal from the bank s portal and reinitiate the process. 21. After the successful completion of a transaction, e-FPB of the concerned bank will create a unique Challan Identification Number (CIN) against the CPIN. This will be a unique 17-digit number containing 14-digit CPIN generated by GSTN for a particular challan and unique 3-digit Bank code (MICR based which will be communicated by RBI to GSTN). The incorporation of the date of payment in the CIN may be examined from the IT s perspective. This CIN, as a combination of CPIN and Bank Code, will be reported by the banks along with its own Unique Bank reference number (BRN). Such CIN is an indicator of successful transaction and will be used as a key field for accounting, reconciliation etc
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There may be a scenario in which the internet banking transaction is successful, but the connection drops before the control comes back to GSTN portal, and the re-ping facility will help in finding the status of such transactions. 23. Upon receipt of confirmation from the bank regarding successful completion of the transaction, GSTN will inform the relevant tax authorities about payment of taxes. A copy of the paid challan (downloadable/printable) with auto-populated CIN, date and time of payment and a statement confirming receipt of the amount by the bank will be provided to the taxpayer by GSTN. 24. Thereafter the tax paid challan (CIN) will be credited to the tax ledger account of the taxpayer. It was discussed and agreed by the Committee that there would be 20 ledger accounts (one for each Major heads i.e. CGST, IGST, Additional Tax & SGST and 4 Minor heads for each Major Head i.e. Interest, Penalty, Fees & Others). Role to be played by each Stakeholder: GSTN: 25. In the fr
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e may contain a minimal set consisting of GSTIN, CIN (i.e. CPIN + Bank Code), BRN(s), Challan amount, break-up of the amount into CGST, IGST, Additional Tax and SGST and date of payment; f) At EOD, GSTN will also send the details of CPIN generated for the particular day to the Accounting Authority of the Centre (to facilitate estimation of revenue and fund management) and to such State accounting authorities that may so desire; g) On T+1 morning, GSTN will generate a consolidated file containing a summary as well as entire details of the challans for which successful transactions were reported by the banks on real time basis for the date value of T=0 (for this purpose, daily transactions would include transactions from 20:01 hrs on previous day to 20:00 hrs in the current day). The file will be sent to the respective accounting authorities. At this stage, the challan data will also include CIN (i.e. CPIN + Bank Code) and BRN reported by the banks. GSTN would generate this file on all w
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se of Mode I & II / 30 days in case of Mode III; l) Receive TAXPAYER master as well as updates thereto from the respective Tax Authorities on real time basis. e- FPBs (ELECTRONIC FOCAL POINT BRANCHES) OF AUTHORIZED BANKS: 26. There would be a single e-FPB for each Authorized bank for the entire country. It will perform the following role: a) Each e-FPB will open a major head wise (CGST, IGST, Additional Tax and SGST) account of each government (total 39 accounts) to which the remittances received by it would be credited. Currently, the Constitutional Amendment Bill states that the Additional Tax will be collected by Centre and assigned to States. If this arrangement is continued, the e-FPB will maintain one account for Additional Tax for Centre. A Committee has been constituted by the EC to examine the operational issue of Additional Tax and if it is decided that this tax will be collected by the respective State Government and retained by them, separate accounts for every State wi
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file mentioned above to accounting authorities of the Centre and the respective State, in case their accounting authorities so desire, so that they can independently monitor delayed remittances, if any, from the banks to the Government account in RBI; e) On the first day of every month, e-FPB will provide Datewise Monthly Statements (DMS) for each tax and government separately to RBI for the preceding month with following details: i) Name of Tax; ii) Government Name; iii) Datewise number of successful transactions and total credit reported to RBI; and iv) List of discrepancies remaining unresolved at the end of the report month (MOE UIN, CIN, BRN, Amount, Nature of discrepancy). These statements will be simultaneously communicated to the respective Accounting Authorities, if they desire so. 27. Each authorised bank should have one or more service branch in each State to serve as GST help desk and to receive queries / e mails to resolve the issues from Taxpayers, Tax Authorities and Ac
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which the scroll pertains; (iv) CIN; (v) GSTIN; (vi) BRN; (vii) RBI Transaction Number; (viii) Mode of payment; (ix) Tax amount; (x) Control parameters like total transaction, Total Amount in the scroll, etc. c) If any discrepancy is reported by Accounting Authority or GSTN, it would carry out the correction mechanism with the authorized bank and thereafter report the corrected data to respective Accounting Authority and GSTN. d) RBI will consolidate Datewise Monthly Statements (DMS) received from the banks for each tax and government, validate the consolidated statements (39) with reference to its own data of e-scrolls reported during the report month, have a systemic review of unresolved discrepancies and communicate the statements to the respective accounting authorities within 3 days from end of the report month. Central Accounts Section (CAS) of Reserve Bank of India, Nagpur: 29. CAS, Nagpur reports daily consolidated credits and debits to each Government and Accounting Authoritie
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authorities that so desire will receive details of CPIN generated by GSTN for the particular day. (Centre s accounting authorities require this to facilitate estimation of revenue and fund management); b) Each morning (T+1), e-PAOs / e-Treasuries will receive from GSTN a consolidated file of entire details of the challans (including CIN) for which successful transactions were reported by the banks to GSTN on real time basis for the previous day; c) Each morning (T+1), e-PAOs for CGST, IGST & Additional Tax and e-Treasuries of the State Government will get consolidated transaction level digitally signed daily e-scrolls from RBI (along with all the challan details) pertaining to the successful transactions of the previous day (date value T=0); d) E-FPB of authorized banks would also send such scrolls on T+1 basis to central accounting authorities and to those e-Treasuries that may so desire; e) They will also receive from GSTN, later in the day, results of reconciliation by GSTN wit
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cally as per requirements / norms of their governments for departmental reconciliation and for updating Tax Authorities database that the tax amount has been accounted in the government s books. Accounting Authorities should provide their accounting reference number (in Government of India, CIN is used for this purpose; some State Governments seem to be generating their own accounting reference number) for each challan accounted by them along with the tax amount as per the credit accounted by them to the jurisdictional Tax Authorities for reconciling their records. i) They will provide verified Datewise Monthly Statement (DMS) to Pr. CCA, CBEC (Principal Chief Controller of Accounts) and Accountant General of the states: Pr. CCA, CBEC (PRINCIPAL CHIEF CONTROLLER OF ACCOUNTS) AND ACCOUNTANT GENERAL OF THE STATES: 31. The following functions will be performed by them: a) They will receive daily and monthly Put Through Statements from CAS, RBI; b) They will also receive verified Datewise
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re for accepting GST receipts. 33. The following stakeholders will play a key role in establishing an effective OTC payment system in the proposed GST scenario: a) GSTN; b) Branches of Authorized Banks; c) e-FPBs of Authorized banks; d) e-Kuber of RBI; e) e- PAOs of Centre / e-Treasuries of State Governments; f) Pr. CCA, CBEC / Accountant General of the States; g) Tax authorities of Centre and States. Process involved in Over the Counter payment of GST through authorized banks: 34. Every tax payer who wants to avail the facility of OTC payment (only for paying tax upto ₹ 10,000/- per challan), will access GSTN for generation of a challan through which payment is to be made. 35. Upon creation of the draft challan, the taxpayer will fill in the details of the taxes that are to be paid. From the available payment options, the taxpayer would select option of cheque, DD or cash based payment. The name of the authorized bank and its location (city/town/village) where the instrument/cas
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hallan so generated would be valid for a period of seven days within which payment is to be tendered. GSTN will inform the challan details including validity period to the CBS (Core Banking System) of the selected bank on a real time basis. 36. Upon successful saving of the challan details, the challan will be available on the dashboard of the taxpayer in downloadable/printable form. So the taxpayer can either download the challan form and print it offline or can print the challan directly from GSTN. If the payment is made by cheque or DD, the challan itself would have a disclaimer that the payment is subject to realization of cheque or DD. 37. Thereafter taxpayer will approach the branch of the authorized bank for payment of taxes along with the instrument or cash. Since the tax payer is required to pay four types of taxes and the amount is required to be credited in the accounts maintained by bank for each type of tax, one option for the tax payer is to submit four instruments for cr
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he total amount to the bank and the bank needs to credit the same in the appropriate head. The internal Accounting mechanism of bank may be left to the bank to design, as the requirement here is the proper booking and reporting of the transaction which banks would have to ensure. It was decided that those banks need not operate a GST pool account which can credit the amount in the respective tax accounts on the fly . 38. There should be a linkage between the GSTN and the Core Banking System (CBS) of the authorized banks whereby the details of challan are shared with the Authorized bank selected by the tax payer on real time basis so that they can be stored in the database of banks and also to facilitate the cashier / Teller to verify the details of the challan submitted by the remitter. This will eliminate the need for manual feeding of the challan details by the cashier / Teller in the banking system and thereby reduce the errors in data processing. 39. The taxpayer should preferably
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his system and should accept the receipt only when no discrepancy is found. If the challan has crossed its validity period of seven days, the bank s system itself should bar acceptance of the payment. In any case, the challan would also not be available in the GSTN and consequently in the bank s system because it would have been purged from the System by GSTN upon the expiry of the 7 day validity period. 41. The tax payer may make payment by cash or instruments drawn on the same bank or on some other bank in the same city. In case of cash payments or same bank instruments, the payment would be realized immediately and a transaction number (BTR/BRN) and CIN will be generated immediately at the authorized bank s system which will be unique for each and every transaction. Such successful transactions shall be intimated to GSTN on real-time basis with details similar to those mentioned in para 21 above. This message will convey to the common portal that the payment has been successfully re
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days, he should visit the bank to ascertain the status of his payment. 44. Where the instrument is drawn on another bank, there should be a validation in the bank s system to prevent out station cheques (except those payable at par across cities), and to also prevent deduction of commission charges for instruments drawn on another bank in the same city. 45. The Authorized Bank would send the instrument for collection and the transaction would be treated as complete and successful only after the actual receipt of the amount by the said bank. 46. The bank will inform GSTN on real time basis in two stages. First when an instrument is given OTC. At this stage the Authorized bank will forward an electronic string to GSTN which will contain the following details: a) CPIN; b) GSTIN; c) Challan Amount; d) Bank s acknowledgement number. On receipt of the above first message, GSTN should send a SMS to the tax payer, in addition to showing the status of the payment on its portal as subject to re
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is recommended for the following reasons: a) Keep a watch on delays on the part of authorized banks in realization; b) Maintaining a system based control as all branches of authorized banks will be allowed for OTC. 49. On receipt of the real time information for a successful transaction as per para 41 above (cash, cheque on same bank or DD) or receipt of the second message from Bank as per para 47 above (cheque drawn on another bank), the tax paid challan will be credited to the tax ledger account of the taxpayer. If the OTC payment was subject to realization (para 46), the initial status on the dashboard will state so. If the cheque is dishonoured, the presenting bank should inform GSTN about the fact of dishonour and same will be informed by GSTN to taxpayer and reflected on his dashboard. Role to be played by each stakeholder: 50. The role played by each stakeholder in this mode of payment will be the same as mentioned in Mode I. There is an additional stakeholder in this mode, name
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k (in its e-FPB) and thereafter transfer the said amount into the individual tax head accounts as indicated in the challan (all Authorized banks must develop a suitable GST software for this purpose) or to credit the amount directly to the respective government s account (39 accounts). e) In case the instrument is dishonoured, the presenting bank should inform GSTN. 52. It is to be noted that banks will have to develop a mechanism/IT application where all these amounts tendered at individual branches of an authorized bank are only handled through the e-FPB of that authorized bank. This is because the tax accounts will be maintained only by the e-FPB. Individual branches have not been authorized by RBI to operate Government account. It is also important to provide for a mechanism in GST Law to debar those tax payers whose cheques have once bounced from using this mode of payment. The most effective mechanism will be through GSTN which should debar such defaulters from using this mode. I
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a and this experience would be further used for developing this mode of payment. NEFT / RTGS mandate would have the same validity period of seven days as the CPIN and the date upto which it would remain valid would be printed on it. The Committee observed that in this mode of payment, it would not be possible to automatically ensure that a CPIN was not used beyond its validity period of 7 days. It was decided that CPIN once generated and intimated by GSTN to RBI in this mode though will have a validity period of 7 days but would remain live with RBI for a period of 30 days. In case the payment is received after the expiry of the said 30 days, RBI would return the amount to the remitter bank. Beside this, it was also decided that there should be a provision in the GST law whereby any taxpayer using this mode beyond the validity period (seven days) of the CPIN more than two times would be barred by GSTN from availing this mode of payment. 54. Although the process under this mode will be
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be made. 56. Upon creation of the draft challan, the taxpayer will fill in the details of the taxes that are to be paid. As agreed by the RBI representative, RBI would itself be the recipient of the amount transferred through NEFT / RTGS, thus eliminating the need for a link-up first with an authorized branch to receive the payment and thereafter its transfer to the RBI. RBI would thus perform the role of Authorized bank and that of e-FPB in this mode of payment. In this view, the name of the authorized bank will be auto populated as RBI. As a part of the challan preparation, a tax payer will have to choose the mode of payment as NEFT / RTGS from any bank. The challan so generated will have a Unique Common Portal Identification Number (CPIN), assigned only when the challan is finally generated. The generated Challan will have a NEFT / RTGS mandate associated with it. This mandate will contain NEFT / RTGS pooling bank account details (i.e. of RBI) along with IFSC for receiving money. Af
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S mandate form in Account Name field. RBI would provide for suitable validations for this field. The Sender to Receiver field shall carry the entry GST Payment . In case of NEFT / RTGS payments, there shall also be a disclaimer on the challan copy and the mandate form that the payment through NEFT / RTGS is a transaction between the tax payer and his bank and the payment will be deemed to be received by the government only when the amount is credited to the designated account in RBI. The payments in this mode would be permitted only against cheques and no cash payments would be permitted to initiate NEFT / RTGS transaction for the reasons mentioned in Para 67 below. 59. The following details will be available in the NEFT / RTGS mandate form: a) Beneficiary IFSC : IFSC of RBI hosting the NEFT / RTGS account for GST; b) Beneficiary Account Number : Account Number of RBI s pooled account for GST; c) Account Name : CPIN of relevant challan (suitable validation to be provided by RBI); d) To
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by GSTN. 61. GSTN will inform RBI on real time basis the following details: a) CPIN; b) GSTIN; c) Challan Amount; d) Break Up of the Amount into CGST, IGST, Additional Tax and SGST; e) State/UT Government to which SGST remittance pertains. 62. The accepting bank should add its charges for doing NEFT / RTGS remittance and collect gross amount from the customer. The amount indicated as GST amount for remittance should be transferred by the remitter bank to the designated account of the government in RBI. For the proper identification of the transaction, there should be a Unique Transaction Reference (UTR) that should be conveyed along with file details to RBI. The remitter bank must also mention the CPIN in the NEFT/RTGS mandate as part of the Account Name. The Remarks field shall mention GST Payment . 63. Upon successful completion of the transfer at the end of the remitter bank, the remitter will get a receipt detailing Unique Transaction Reference (UTR). Taxpayer should thereafter log
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etion of the transaction by GSTN, the tax paid challan will be credited to the cash ledger of the taxpayer. The GSTN will thereafter lock the CIN so that it cannot be used again. 66. As recommended in para 58 above, the Mode III may be implemented with arrangement of CPIN being mentioned as the Account Name in NEFT/RTGS message. RBI will provide for a suitable validation for this field. In such arrangement, the chances of error will be only marginal as the remitter banks take care to mention the account name correctly in any NEFT/RTGS message. In case of error, NEFT/RTGS unique transaction number (UTR) intimated by the tax payer can be used as a secondary identifier. The primary matching by RBI should be with reference to CPIN only, i.e., CPIN as contained in NEFT/RTGS message and CPIN data provided by GSTN. On successful matching, the GST pooled account should be debited and the respective 39 tax accounts (CGST, IGST, Additional Tax and SGST) should be credited simultaneously as per t
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for the operational reasons as a transit account. There should be a validation in RBI system that no funds pertaining to the transactions with date value T=0 are left in this account when the scroll is prepared on T+1. 69. If the matching based on CPIN does not succeed, the role of UTR as secondary matching identifier becomes important. However, it is possible that RBI may receive NEFT/RTGS message even before the tax payer updates his challan with UTR number and GSTN informs RBI on real time basis. In case of failure of CPIN based matching and UTR not being available, the funds will remain in the pooled account till the UTR is received or scroll is prepared, whichever is earlier. Such credit in the pooled account should be with a CPIN mis-match flag that a secondary level matching needs to be carried out before scroll is generated on T+1 basis. Once UTR is provided by GSTN, the secondary matching of all such transactions remaining in the pooled account should be carried out. If a tra
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ls to the Accounting Authorities of Government of India and concerned State Government. a) RBI scroll number and date which carried the credit (CGST scroll); b) BRN; c) CIN (of credit to CGST account with CPIN mis-match flag); d) Challan amount; e) Breakup of total amount in CGST, IGST, Additional Tax and SGST; f) Name of State Government to whom SGST pertains. 72. Based on the communication from GSTN, CGST Accounting Authorities shall take steps for clearing the suspense sub-head by transferring the credit to CGST, IGST and Additional Tax accounting heads, and for carrying out inter-government transfer to the concerned State Government. 73. The reconciliation between e-Scroll sent by RBI on T+1 and the transaction details available with GSTN (provided earlier by RBI) will be performed using CIN and Unique Transaction Reference (UTR). Role to be played by each stakeholder: 74. As for the role played by each stakeholder in this mode of payment, it will be same as for their role in OTC p
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pecially created pooled GST account and thereafter transfer it to the respective tax accounts of each government. 77. Once the remittances are received by RBI, it will perform the following functions: a) RBI will receive and validate the NEFT/RTGS transaction against the Challan details received by it; b) RBI would communicate the receipt of payment (CIN) to GSTN on real time basis; c) On first day of every month, RBI as e-FPB will provide Datewise Monthly Statements (DMS) for each tax and government separately to the concerned wing of RBI for the preceding month with following details: i) Name of Tax; ii) Government Name; iii) Date wise number of successful transactions and total credit reported to RBI; and iv) List of discrepancies remaining unresolved at the end of the report month (MOE UIN, CIN, BRN, Amount, Nature of discrepancy). These statements will be simultaneously communicated to accounting authorities of the Centre and the respective States in case their accounting authorit
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gistered, the departmental officer will create a temporary GSTIN on the GSTN common portal. For this purpose, GSTN will provide a separate module and a GSTIN series for giving temporary GSTIN. The officer will collect the amount in respect of all types of taxes payable by him in cash/cheque/DD from the said person, issue a temporary receipt to him, generate the challan from GSTN, fill up the challan (at a later stage, if not possible at that time) and remit the amount using Mode2. GSTN will provide a facility for linking of the temporary GSTIN to the permanent GSTIN, if taken at a later stage. PENALTY MECHANISM FOR ERRING BANKS: 79. At present, banks are subjected to penalty for delayed fund remittances only. Current system of remuneration to banks for collection of Central Excise, Service Tax and Customs duties is determined on the basis of challans. New parameters of bank performance could be developed, based on timely remittance and reporting of error- free data to all stakeholders.
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nuities arising from manual interventions in the banks internal processes are removed. The Committee also recommends that, over a long term, Accounting Authority should develop a service quality rating for the participating banks based on identified transparent and quantifiable parameters. BANKING ARRANGEMENTS UNDER GST: 80. At present Central Government and each State Finance Department prescribes banking arrangements for collection of government taxes. At present, Central and State governments utilize the services of Public Sector Banks/ Other Public Sector Banks (IDBI)/ Private Sector Banks (ICICI Bank, Axis Bank, HDFC Bank) for tax collection. The committee was informed that Non-Scheduled and Cooperative banks operating in State(s) are not permitted to collect taxes. 81. The list of all authorized banks participating in the GSTN should be common across all states. This can be a super set consisting of existing authorized banks of the Central Government and all State Governments and
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es, in addition to mandate of making government payments. In order to give a broader choice to the tax payers, and hence to enhance ease of doing business, it is recommended that the participating banks can also be allowed to accept GST receipts through OTC mode envisaged in this report. 84. Out of the superset of existing authorized banks and participating banks only those banks should be authorized to accept GST receipts who meet the minimum requirements suggested below. The objective of these minimum requirements is to ensure that a bank has the capability to handle GST receipts in a seamless manner in a consistent and error free manner underpinned by a robust IT system with no process flow discontinuities. 85. Minimum requirements to be met by a bank for being authorized for GST remittances are recommended to be as follows: a) A centralized application for handling GST receipts for both modes (internet banking and OTC) in an end-to-end manner should be established. b) There should
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ld cover operational, technical and security aspects as per terms of reference and periodicity set by GSTN in consultation with Accounting Authorities. k) One branch of the concerned authorized bank in the entire country should be established / designated as the e-FPB (Electronic Focal Point Branches) to handle all backend operations of GST receipts including operation of 39 tax accounts, data collation, reporting and reconciliation with RBI / GSTN / Accounting Authorities. l) In addition, one or more branch of the concerned authorized bank in each State Capital should serve as GST helpdesk (Refer Para 27 above). m) Three separate tax accounts for Government of India (one each for CGST, IGST and Additional Tax) and one tax account for each State/UT Government (36 in total) (for SGST) should be set up and operated by e-FPB alone. n) The credit to respective tax accounts should be simultaneous with debit to the tax-payer s account in case of internet banking mode, realization of a cheque
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lization. RBI will need to build a similar assurance for NEFT/RTGS remittances. r) Suitable validations prescribed by GST Law should be inbuilt in the IT system / GST application. Some of such validations will pertain to non-acceptance of outstation cheques and non-deduction of cheque collection charges for OTC receipts, and mark up and collection of CC/DC charges (to be agreed) from tax payers. 86. It was agreed that the minimum standards to be met by the participating banks, as encapsulated above, should be communicated to the banks well in advance in consultation with RBI. ACCOUNTING SYSTEMS UNDER GST: 87. State governments/UTs accounting system also follows, to a large extent, the general principles and procedures of Central government accounting, with minor variations in respect of classification of tax heads of accounts. While the List of Major and Minor Heads of accounts are common to both Central and State/UT Governments accounts, classification below Minor Heads may vary at th
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less or excess revenue settlements between the Centre and State(s). To deal with such transactions, detailed accounting procedures should be designed. It is recognized that it is IT system issue, and not an accounting issue. The debit from tax-payers account should result in auto-credit to respective accounts of Government of India and the concerned State Government. Except in case of remittance through any authorized bank including a non-agency bank (where the funds have to necessarily come to a designated account in RBI), there should not be any mix-up of the funds belonging to two governments. 92. The CGA has suggested the following in this regard: a) Codal provisions of the DDO & PAO should be complied with for discharge of PAO s role. The automation as proposed should conform to this basic requirement. b) PAO is the sole authority for receipt, payment and reconciliation of accounts book with Bank Reconciliation statement (BRS). c) Any compromise on this fundamental work flow
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Tax 00020001 7 IGST – Interest 00020002 8 IGST – Penalty 00020003 9 IGST – Fees 00020004 10 IGST – Other 00020005 11 SGST- Tax 00030001 12 SGST – Interest 00030002 13 SGST – Penalty 00030003 14 SGST – Fees 00030004 15 SGST – Other 00030005 16 Additional Tax – Tax 00040001 17 Additional Tax – Interest 00040002 18 Additional Tax – Penalty 00040003 19 Additional Tax – Fees 00040004 20 Additional Tax – Others 00040005 The actual accounting codes have to be finalized by CGA in consultation with CAG on the basis of proposals from Tax Authorities. 94. CGST, IGST and Additional Tax components will be accounted for under Consolidated Fund of India (CFI). Transfers of due IGST amount and Additional Tax to the States can thereafter be made there from as per the existing procedure. 95. The interest, penalty, fees or other charges, if any, under GST will need to be accounted for separately. Hence, they would be reflected under separate heads in the Tax Payment Challan. 96. The IT audit of the proc
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ertaining to different governments. 98. The proposed GST payment process envisages a paradigm shift from the processes and validations currently being used for payment of taxes to the Government. This shift is aimed at establishing a convenient, consistent and efficient payment process for the tax payers as well as for the 37 governments simultaneously. This shift is possible in view of current IT capabilities in the eco-system and the experience gained in various systems for payments to the governments. 99. Following are the fundamental changes from the existing systems: a) Tax payer will generate the electronic challan, and therefore that challan data can be trusted for its correctness for its contents, as filled in by the taxpayer. b) The challan thus generated on GSTN portal will provide a unique Id (CPIN) which would be used uptill the time payment has been received by the bank and CIN (CPIN plus Bank Code) has been generated. The said CIN would be used thereafter for accounting,
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accounting authorities of both Centre and States. 100. In view of these fundamental changes, the key Id for information exchange with banks and RBI should use the unique Id generated by GSTN, i.e., CPIN. Once the payment has been made by the taxpayer and CIN is generated and reported by the recipient bank along with its transaction number (BRN), CIN which has CPIN embedded there in, would be used as key Id in subsequent stages. CIN is recommended to be used as a key Id as it is the sole indicator of the receipt of actual payment. Similarly, the transaction reported by RBI for the funds flow (credit) to government accounts through the e-scrolls should form the basis for accounting as it reflects the actual credit in the Government Accounts. Reconciliation by GSTN: 101. GSTN through its IT system should carry out reconciliation in following two stages: a) When the banks report each successful transaction on real time basis, the IT system should validate the bank s message with reference
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take up MOE process for any error type as that is fairly resource intensive, requires manual appreciation of facts and is time consuming. The transaction level resolution of discrepancies through the Memorandum of Error (MOE) process with RBI and banks should be the responsibility of the respective Accounting Authorities. Reconciliation by Accounting Authorities: 103. The Accounting Authorities through their IT systems are expected to carry out the reconciliation at their level de novo based on communication by GSTN of challan data for successful transaction received on T+1 basis (State AG authorities to be assisted for setting up accounting interface with GSTN) or through Tax Authorities system (based on the integration capabilities at Central / State level) and e-scrolls received from RBI for each day on T+1 basis. The reconciliation results communicated by GSTN would act as additional validation in the reconciliation process. The reconciliation would be performed on the basis of CIN
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Key elements here are CPIN and GSTIN. Second leg of communication of data (CIN with embedded CPIN) starts from Authorized banks / RBI to GSTN (T=0): 106. This communication is not meant to be the basis for accounting, but act as an enabler to reduce errors in the overall process and to facilitate fleet-footed monitoring by the Tax Authorities. The IT system of the authorized banks should have the following validations to reduce possibility of discrepancies in this leg:- a) In any reporting of successful transactions by the banks to GSTN, CPIN field is never a blank; b) The response sent back to GSTN is always against a CPIN received from GSTN; c) Sum total of all credits to Tax accounts for a particular CPIN adds up to the challan amount. d) CIN reported by the authorized banks/RBI should always have a CPIN embedded in it. 107. In spite of the above mentioned validations, if a discrepancy is found in a bank s response, the discrepancy will get noticed in the real time validation of the
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require manual intervention. The bank may resend the data to GSTN after correction. If the bank is unable to resolve by T+1 reporting time to RBI, the bank should include the transaction in the luggage file with whatever CPIN data it may have for that transaction. It will be type (c) error in the third leg. Third leg of communication of data (luggage file) starts from Authorized banks to RBI (T+1): 110. In this leg, the data is being collated and transferred by authorized banks to RBI in daily luggage files for each type of tax of Government of India (CGST, IGST & Additional Tax) and SGST (state wise; for 29 states and 7 UTs) separately [there will be total thirty nine luggage files (3+29+7)]. The key element here is CIN. So the accurate reporting of the same by the authorized bank to RBI has to be underlined. As RBI would prepare e-scrolls based on this data, correctness and cleanliness of this data is crucial. RBI collates daily luggage files ( thirty nine) received from all the
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the stage when GSTN and Accounting Authorities compare the challan data (CIN ) of the day received from authorized banks with the e-scroll of the corresponding date received from RBI on T+1 basis. If GSTN detects such a discrepancy, it will communicate the same to the relevant Accounting Authority and RBI. On the basis of this information or on the result of their own reconciliation with reference to CINs reported earlier by GSTN, the Accounting Authority will generate a Memorandum of Error (MOE) with a Unique Identification Number (UIN) and communicate the same to the RBI and copy the same to the concerned authorized bank and GSTN. GSTN being only a pass through portal, should not be entrusted the work of MOE and its resolution. Moreover, MOE process requires manual appreciation of facts, accounting expertise and decision making on behalf of each Government, which will be beyond GSTN s mandate/capacity. The steps involved in the correction mechanism in the aforesaid situation are as
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of the relevant MOE and then transmitting the same to RBI; v) RBI will send a separate e-scroll relating to MOE to the concerned Accounting Authority containing the missing transaction; Points at iv) and v) are design issues, which can be decided by GSTN in consultation with RBI. The reporting by e-FPB and thereafter by RBI can be through separate files as mentioned above, or the normal luggage file from banks and scroll from RBI can contain the now resolved transaction with a MOE resolution flag and UIN as additional field for the relevant record. vi) Accounting Authority to note the correction of MOE and report the same to GSTN and the concerned Tax authority thereby completing the transaction cycle; vii) RBI to take steps to penalize the e-FPB of the concerned Authorized bank. b) Transaction reported by Bank to RBI but not to GSTN (CIN included in luggage file but CIN not reported to GSTN): 112. In case of payment through internet banking (Mode I), this seems to be an unlikely scen
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volve the following steps: i) If CPIN and associated data reported in the scrolls received from RBI matches with GSTN s CPIN data, GSTN can forward the entire challan details of that CPIN to the concerned Accounting Authorities with a copy to Tax Authorities. There will not be any need for MOE in such case. The Accounting Authorities will carry out the accounting based on scroll data received from RBI and tally it with the challan data (CIN) now received from GSTN. GSTN would also update the taxpayer s cash ledger after confirming the payment from the authorized bank / RBI; ii) If e-FPB of an authorized bank has reported a transaction to RBI in GST luggage file, without it being a GST transaction or without realization of the amount, it should take up such cases for refund outside the MOE process as a more comprehensive verification will be needed before allowing the refund. For minimizing this kind of error, the bank s IT system should have validations/controls mentioned in para 85 ab
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th whatever CIN data it has received from the e-FPB of authorized bank. The bank should not hold back any balance in the tax accounts beyond the reporting time to RBI in respect of transactions of the previous day. When such unresolved transaction is reported to RBI, it should carry a flag indicating type of discrepancy. RBI should credit the amount to the account of the respective government as mentioned in the luggage file. As the scroll from RBI will have an unresolved CPIN discrepancy, the Accounting Authorities may credit the amount to a separate sub-head under the relevant major head and simultaneously take up MOE process. If the discrepancy pertains to the total challan amount, its impact on individual taxes will get known during reconciliation of the scroll data with the challan data, and the Accounting Authorities of the affected government should take up MOE process. d) Money transferred to wrong government accounts though CIN matches with data in e-scroll received from RBI (
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of the concerned Authorized bank / RBI (in case of Mode III) and get the discrepancy corrected within a time period of 2 days from the receipt of MOE from the Accounting Authorities; iii) E- FPB of the concerned Authorized bank / RBI would verify the details in the CIN transmitted to GSTN with the details transmitted to RBI in the daily luggage file. Thereafter correction entry would be transmitted to RBI in a separate luggage file with UIN of MOE; iv) On the basis of information transmitted by e-FPB of the concerned Authorized bank, RBI would carry out the corrective Debit/Credit entries in the accounts of the concerned governments; v) Thereafter RBI would send a separate e-scroll relating to MOE to the relevant Accounting authority about the corrective entry carried out resulting in reconciliation and correction; vi) Relevant Accounting Authority to account for the corrective entry in its records and report correction of MOE to GSTN and relevant Tax authority thereby completing the
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n SMS from GSTN or not finding the credit in his ledger inform GSTN. Steps involved in correction are: i) In case of OTC payment through authorized banks in cash or by instruments drawn on the same bank, taxpayer will be provided with an instantaneous acknowledgement by the bank containing CIN. As CIN is available with the taxpayer, he should inform GSTN about the transaction (CIN, bank branch where OTC payment was made and date of payment). On the basis of this information, GSTN should ascertain from e-FPB of the concerned authorized bank regarding receipt of payment. Once the confirmation is received through an electronic string, GSTN will validate the same against CPIN and thereafter the tax paid challan (CIN) will be credited to the taxpayer s ledger. e-FPB of the Authorized bank is now expected to include this receipt in the luggage file for the day for transmission to RBI. ii) In case of OTC payment through authorized banks by instruments drawn on another bank in the same city, t
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ance was not received, RBI will inform GSTN accordingly. In turn, the tax payer will be intimated by GSTN for taking up the matter with his bank (through which NEFT / RTGS was effected by him) for deficiency of service. f) Sum total of amount for a CIN reported in e-scroll by RBI is lesser / greater than that reported by e-FPB of authorized bank / RBI to GSTN: 118. This error relating to the shortfall can occur if a bank has deducted collection charges in Mode II and a bank has collected remittance charges for NEFT / RTGS transaction from the challan amount Mode III . Such errors in Mode II can be minimized through suitable validations in the bank s IT system. In such case, one of the tax amounts will be less than the amount indicated in the challan. The relevant Accounting Authority (for whom the amount received is less than the amount mentioned in challan) will have to take up MOE process with RBI with a copy to the concerned bank as detailed in para 116 above for getting the shortfa
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; b) Transaction reported by RBI in its e-scroll but not by e-FPB of authorized bank / RBI to GSTN (CIN level); c) Transaction reported by RBI but with incorrect details of CIN (CIN level); d) Sum total of the amount for CIN reported to RBI is lesser/greater than that received by GSTN/Accounting Authority. e) There is mismatch between tax wise amounts while the total challan amount matches. 121. In all the situations mentioned above, the reconciliation and error correction mechanism would be similar to that in the third leg of communication (para 110 to 119 above) as the source of discrepancy cannot be identified. It can be at the bank level or at RBI level. Therefore, the concerned Accounting Authorities should take up MOE with RBI with a copy to concerned authorized bank. RBI should first verify the data at its own end for corrective measure, if the error had arisen from its actions, if the source of error is found by RBI to be the one of the authorized bank, it should facilitate/ens
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e recommends for providing the correction mechanism in following situations:- a) ERROR IN GSTIN: This may happen in situations where the payment of tax is being made by either authorized representative such as CA or any other person on behalf of the taxpayer. Such kind of error will have no impact on the transfer of the funds to the account of the concerned governments as the money will be correctly transferred on the basis of the CIN. Further once the payment confirmation is received by GSTN from the concerned bank then the amount will be credited to the ledger of the taxpayer whose GSTIN is mentioned in the electronic string that is relayed by the bank to GSTN (earlier the same GSTIN was communicated by GSTN to bank). Therefore taking into account both the above factors as well as the fact that Challan has been generated either by the taxpayer himself or through his authorized representative and the mistake being committed has no impact on the funds with tax administration, there is
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horities of the Centre and State. No correction in the challan data is required even in this case. If the error is noted after reporting of the credit on T+1 basis, the normal MOE process should be used. c) ERROR IN TOTAL AMOUNT: If the amount paid is in excess then there is provision for either claim of refund by the taxpayer or the amount can be carried forward to the next period and therefore there is no need to provide for correction mechanism. 124. In view of recommended maintenance of cash ledger, the fields relating to Tax period and purpose will not be captured in the challan as being done presently and therefore correction mechanism for correcting these two fields has not been provided for. CHALLAN FORMAT: 125. e-Challan will remain the source document for the purpose of accounting and reconciliation by the accounting authorities of the Centre/States/UTs. The Office of C & AG has stressed upon the need for ensuring the availability of e-Challan for accounting and reconcili
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e available in the challan and the same would need to be mapped with the help of the backend system of each tax administration. (Satish Chandra) Member Secretary Empowered Committee of State Finance Ministers (Rashmi Verma) Additional Secretary Department of Revenue Government of India Annexure-I EMPOWERED COMMITTEE OF STATE FINANCE MINISTERS DELHI SECRETARIAT, IP ESTATE, NEW DELHI – 110002 Tel. No. 2339 2431, Fax: 2339 2432 e-mail: vatcouncil@yahoo.com No.15/45/EC/GST/2014/32 Date: 7th April, 2014 JOINT COMMITTEE ON BUSINESS PROCESSES FOR GST During the last Empowered Committee meeting held on 10th March, 2014, it was decided that a Joint Committee under the co-convenership of the Additional Secretary (Revenue), Government of India and the Member Secretary, Empowered Committee should be constituted to look into the Report of the Sub-Group-I on Business Processes for GST and make suitable recommendations for Registration and Return to the Empowered Committee. It was also decided that t
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hore, Commissioner, Commercial Tax, Madhya Pradesh (9) Dr. Nitin Kareer, Commissioner, Sales Tax, Maharashtra (10) Shri Abhishek Bhagotia, Commissioner, Commercial Tax, Meghalaya (11) Shri Manoj Ahuja, Commissioner, Commercial Tax, Odisha (12) Shri Sanjay Malhotra, Commissioner, Commercial Tax, Rajasthan (13) Shri K. Rajaraman, Commissioner, Commercial Tax, Tamil Nadu (14) Shri M.K. Narayan, Commissioner, Commercial Tax, Uttar Pradesh (15) Shri Dilip Jawalkar, Commissioner, Commercial Tax, Uttarakhand (16) Shri Binod Kumar, Commissioner, Commercial Tax, West Bengal Empowered Committee of State Finance Ministers (1) Shri Satish Chandra, Member Secretary – Co-convener 2. The Committee will submit its report to the Empowered Committee in two months time. Sd/- (Satish Chandra) Member Secretary Empowered Committee of State Finance Ministers Copy to: All the Members of the Joint Committee Copy also to: (1) PS to Chairman, Empowered Committee of State Finance Ministers (2) Adviser to Chairman
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Government of India Member 3. Shri Manish Saxena, Additional Director, Directorate General of Systems, Government of India Member States 1. Shri Ritvik Ranjanam Pandey, Commissioner, Commercial Tax, Karnataka Co-convener 2. Shri K. Rajaraman, Principal Secretary/Commissioner, Commercial Taxes, Tamil Nadu Member 3. Shri Manoj Ahuja, Commissioner, Commercial Tax Odisha Member 4. Dr. P.D. Vaghela, Commissioner, Commercial Tax, Gujarat Member Goods and Services Tax Network 1. Shri Prakash Kumar, Chief Executive Officer, GSTN Member Special Invitee 1. Shri Ajay Seth, former Commissioner, Commercial Tax, Karnataka Member 2. It was also decided to request RBI, Principal Chief Controller of Accounts, CBEC and Controller General of Accounts to nominate senior officers to attend the meetings of the Sub-Committee/Committee. 3. It was further decided that the first meeting of the Sub-Committee will be held at 10.00 am on 14th February, 2015 at Hotel Le Meridien, Bangalore. All the members of the S
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Committee of State Finance Ministers. Annexure-III LIST OF PARTICIPANTS OF THE MEETING HELD ON 16TH AND 17TH APRIL, 2015 Government of India 1. Smt. Rashmi Verma, Additional Secretary (Revenue), Government of India 2. Shri Manish Saxena, Additional Director, Director General of Systems, CBEC, Government of India 3. Shri M.K. Sinha, Director (Central Excise), Government of India 4. Shri Rajeev Yadav, Director (Service Tax), CBEC, Government of India 5. Shri Shashank Priya, Commissioner, GST, CBEC, Government of India 6. Shri Ravneet Singh Khurana, Deputy Commissioner, CBEC, Government of India 7. Shri Upender Gupta, Additional Commissioner, GST, CBEC, Government of India States 1. Dr. Ravi Kota, Commissioner of Taxes, Assam 2. Shri Sanjeev Khirwar, Commissioner (VAT), Trade and Taxes, Delhi 3. Shri Jagmal Singh, Deputy Director, Trade and Taxes, Delhi 4. Shri Umesh Kumar Tyagi, Special Commissioner, Trade and Taxes, Delhi 5. Dr. P.D. Vaghela, Commissioner, Commercial Tax, Gujarat 6. Shr
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riya, Commissioner, Commercial Tax, Rajasthan 21. Shri K. Rajaraman, Principal Secretary/Commissioner, Commercial Taxes, Tamil Nadu 22. Shri K.Gnanasekaran, Additional Commissioner, Commercial Taxes, Tamil Nadu 23. Shri Mritunjay Kumar Narayan, Commissioner, Commercial Tax, Uttar Pradesh 24. Shri Rakesh Verma, Joint Commissioner, Commercial Tax, Uttar Pradesh 25. Shri Puneet Tripathi, Assistant Commissioner, Commercial Tax, Uttar Pradesh 26. Shri N.C. Sharma, Additional Commissioner, Commercial Tax, Uttarakhand 27. Shri Vipin Chandra, Joint Commissioner, Commercial Tax, Uttarakhand 28. Shri Khalid Aizaz Anwar, Joint Commissioner, Commercial Tax, West Bengal Goods and Services Tax Network (GSTN) 1. Shri Navin Kumar, Chairman, Goods and Services Tax Network 2. Shri Prakash Kumar, Chief Executive Officer, Goods and Services Tax Network Special Invitee 1. Smt. Nidhi Khare, Commissioner, Commercial Tax, Jharkhand CCA 1. Mrs. Krishna Tyagi, Chief Controller of Accounts, CBEC 2. Alok Kumar Ve
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transactions has undergone changes because of introduction of two factor authentication and OTP (one time password) as per RBI s regulations. Under such circumstances it has become more improbable to have fraudulent transactions. Banks also have stopped entertaining claims caused by fraudulent transactions. As such scenario (i), i.e., payment through fraudulent use can be practically ruled out. 3. In scenario (ii) arising from technical errors, the errors can be detected even before any transaction is reported to RBI on T+1 basis. The acquiring banks should have a validation in their IT system that no double payment is reported for a tax against the same CPIN. If a credit card has been charged twice for the same challan total amount, the additional collection may be refunded by the acquiring bank. 4. In case the technical error of charging the card twice is noticed after the transaction has been reported to GSTN on real time basis but before the reporting to RBI on T+1 basis, the acqui
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in which credit was made to show that the service was provided. The bank can use the above details /document as a sufficient basis to repudiate any charge back claim for non-delivery of service. Such evidences have to be provided to banks within 48 hours of the claim. 8. Even if the charge back request for scenario (iii) is received by the acquiring bank before reporting of the transaction to RBI on T+1, the bank should send the claim to GSTN for a response. GSTN should verify its record, and rebut the claim as mentioned in para 7 above. GSTN will have 48 hrs to send its response. In the meantime at T+1 event, the acquiring bank should report the transaction to RBI in normal course. The bank should not hold back the funds. Subsequently when the response is received from GSTN, the bank may either decide to reject the claim (most likely as it is fairly easy to establish that the tax was actually paid to the Government and there was no denial of service) or accept the claim. If the claim
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