AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
Circular regarding Accounting Framework for new Goods and Services Tax (GST) regime
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....roll data of GST payments. Reserve Bank of India will be responsible for daily consolidation/ compilation of all bank scrolls (related to GST) and rectification in bank scrolls/ bank data. In this framework the E-Treasury, State of Rajasthan will only collect the original and authenticated data of e- challans from GST Portal, GOI and daily e- scrolls and e-DMS data from RBI e-Kuber. The E-Treasury will also render monthly accounts to AG office, Rajasthan for the accounting heads of SGST, compiled from the data received from these two sources. Offices of tax authorities (Commercial Tax Department) will confirm the GST receipts and Memorandum of errors from e-Treasury. e-Treasury will be made functional for accounting of GST as referred in the circular/ instructions of Government of India from 1st July, 2017. NIC as an executing agency of e-GRAS will be responsible to develop complete backend processes in the system and execute integration of e-GRAS/ IFMS with GSTN and e-Kuber, RBI. Commercial Tax Department and Directorate of Treasuries and Accounts will be Nodal Departments for providing domain assistance to NIC and for handling issues related to change management of ....
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.... portal and RBI e-Kuber. MOE will also be reported to GST Portal by e-Treasury. Error Correction Scroll/ MOE (memorandum of errors) related to discrepancies will be finally cleared from RBI. e. Data for the cross utilisation of the Input Tax Credit (Monthly Statement of Cross Utilization of Input Tax Credit) will be received in e-Treasury, from GST portal & Monthly IGST Apportionment statement reflected in SGST, IGST and Settlement Ledgers will also be provided by GST Portal to Tax authorities and e-Treasury/ AG (To make accounting by way of Transfer Entries from one head of Account to another where Cash transaction is not involved in the process) f. Inter Government Advice (IGA) will be provided by the Central Accounting Authority to RBI for settlement of funds between Centre and States (related to Rajasthan). The Central Accounting Authorities will make appropriate accounting entries at the time of issuance of inter Government Advice to RBI. RBI will be responsible for providing the Clearance Memo to e-Treasury, GOR and AG, Rajasthan. These memos will also be provided through the system to Finance (Ways and Means) Department. The detail procedure laid down in point....
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.... will be shown as debit in the liability register maintained as per Form GST PMT-1. 4. Process of arriving at Head of Account to Banks: a. Only Major Head wise amounts will be shared with the banks by the GST portal for each CPIN. b. After the payment will be made by the taxpayer, a CIN will be generated by the bank and reported to GST Portal. Banks after successful receipt of GST, will remit the tax collection through daily luggage file to RBI. c. RBI In turn will consolidate this CIN wise information and prepare an e-scroll (state wise) and will be liable to provide State e-Treasury through integration process with e-Kuber and e-GRAS. d. Accounting authorities (e-Treasury) will also receive the complete challan details from GST portal through the integration process. e. The IT system of accounting authority will look for the CIN number in the e-scroll received from RBI e-Kuber and will retrieve the information from the corresponding CIN details received from GST portal. Challan details to be provided by GST Portal will contain major, minor and detailed heads so that complete reconciliation may be done smoothly. Ð f. The accounting authority will compare the ....
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.... 4 case any Memorandom of Error (MOE) is generated due to any reason, the same will be settled between SGST officers and Accounting authority. After successful disbursement of the refund, the E-Treasury shall provide an Acknowledgment to GST portal for updating the status at taxpayers dashboard and integrating it into database. 6. Account head codes for each Major Head (CGST, IGST, SGST) have been opened. 7. These codes will be populated by the IT system of tax authorities on the basis of reasons of Refunds captured during the processing. 7. ITC Utilization for payment of Tax liability: The input Tax Credit accrued to the tax payer will be available as per Electronic ledger. There will be no accounting entry to effect the utilization of ITCs to meet the tax liability under the same tax Head. 8. Funds Settlement Mechanism between Central Government and State Government on the basis of ITC Cross Utilization and apportioned of IGST: The Goods and Services Tax Network (GSTN) shall transmit reports in the manner prescribed below electronically to the Central Board of Excise and Customs (CBEC), the State Tax nodal authority, Principal CCA (CBEC) and Accounting Authority ....
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....ing Portal of Central Accounting Authority will be used by the Department of Revenue, Ministry of Finance to download the details of the State-wise fund settlement with States. A designated officer in the Department of Revenue will issue the Sanction order of funds to be transferred from IGST account to the State or vice versa after obtaining necessary approvals of the competent authority. The provisional sanction order for each month for the State shall be issued based on details uploaded by Pr. CCA at (1) above. The final sanction order for each month for each State, in case needed, shall be issued based on details uploaded by Pr. CCA at (2) above. The electronic Sanction (digitally signed) addressed to Central Accounting Authority containing State-wise details will then be uploaded on the portal of the Central Accounting Authority (Office of Principal CCA, CBEC) through login based system. As the sanction letter will also contain the details of settlement, it will be available in records of State Government for future reconciliation and audit purposes. State Governments will come to know about the fund being transferred by Centre through the sanction. Copy of sancti....
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....n receipt of MoE by GST portal, RBI will do the reconciliation at its level and generate the error correction CIN file and transmit the same to State Accounting Authority. 8. On receipt of Response file from the RBI or Error Correction CIN file from the GST portal, the amount will be classified under correct head of account and RAT head will be cleared by e-Treasury before submission of monthly accounts. 9. At the end of each month, RAT should be cleared after taking up the MoE process before closing of Monthly Account. RBI will be responsible for clearing the RAT head in each month before the submission of monthly accounts. 10. Memorandum of errors process- MOE will be generated by State Accounting Authority to communicate errors observed in GSTN data and RBI e-Scroll data. State Accounting Authority would sign the MoE file with Digital Signature Certificate taken from Authorized Certifying Authority. Process steps of MoE is attached at Annexure-F. A. Following Types of errors will be reported a) The CIN not available in e- Scroll b) CIN not available from GST portal c) Major head mismatch d) Amount mismatch Corrections and Accounting entries: 7 tal 1. To pre....
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....account by e-Treasury will be provided by AG office and the same will be addressed by Accounting Authority. 4. Recording of transactions related to IGST/ITC through IGA in consolidated fund of State will be done by AG office and State Accounting Authority on the basis of electronic IGA received from RBI e-Kuber. The information of IGST recording will be provided through electronic and automated platform to the Central Accounting Authority, State Accounting Authority and Accountant General (A&E) for GST accounting. 12. Functions of Finance (Tax) Department- 1. Finance (Tax) Department will be responsible to monitor SGST/ IGST/ ITC / Inter Government Advice data related to State of Rajasthan and memos from RBI e- Kuber through the MIS reports provided in the system. . 2. They will check daily debits and credits made in the State accounts by RBI through GST process from e-memos of RBI. Complete monitoring over the process of debit/credit under GST through Inter Government Advice from e-Kuber and Pr. CCA office, CBEC will also be ensured by Finance (Tax). System generated reports will be provided in the system for this purpose. 3. Nodal Officer will be appointed by Fin....
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....supply is in a State or Union territory which is different from the State or as the case may be, Union territory of registration of the recipient. For the purpose of deduction of tax specified above, the value of supply shall be taken as the amount excluding the CST, SGST, Integrated tax and cess. 2. DDOS/ Government Agencies will be responsible to register first at GST portal for this purpose. GST Portal will provide GSTIN to all DDOs/ Government Agencies. They have to deposit the deducted amount and file return (GSTR-7) up to 10th of the next month as per the procedures defined under GST Act. 3. The section 51 of Rajasthan Goods and Service Tax Act, 2017 regarding Tax Deduction at Source shall come into force at a later date than 1st July, 2017 but meanwhile the process of registration will be in force. 10 4. The DDOS which are collecting TCS as per section 52 of RGST Act, 2017 and CGST Act 2017 will also be liable to deposit the amount of collection at GST Portal. The section 52 of Rajasthan Goods and Service Tax Act, 2017 regarding Tax Collection at Source shall come into force at a later date than 1st July, 2017 but meanwhile the process of registration will be....
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....g of GSTIN, CIN (i.e. CPIN + Bank Code), BRN(s), Challan amount, break- up of the amount into CGST, IGST 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 working days including the days on which no transaction took place; h) GSTN will receive consolidated e-scrolls from RBI for CGST,IGST and SGST for each State/UT Govt, on T+1 basis; i) On receipt of consolidated transaction level e-scroll....
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.... a) RBI will consolidate luggage files received from all authorized banks, debit their accounts and correspondingly credit the CGST, IGST and SGST accounts of each State/UT Government maintained in RBI; b) RBI would send consolidated, digitally signed e-scrolls, along with all the challan details, for each type of Tax (one each for CGST, IGST and separate e-scrolls of SGST for each State/UT Governments) per day (including NIL payment day) after including the amount collected by it in Mode - III to Accounting Authority of Centre (e-PAO) / each State (e- Treasury) and GSTN simultaneously. Daily Major head account-wise scroll from RBI will consist of following information:- Merchant Code given to GSTN; Name of Government to which the scroll pertains; i) ii) Scroll Number and Date; iii) iv) CIN; v) GSTIN; vi) BRN; vii) RBI Transaction Number; viii) Mode of payment; ix) ✗) Tax amount; Control parameters like total transaction, Total Amount in the scroll, etc. 13 of 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 respe....
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....ury will receive details of CPIN generated by GSTN for the particular day. (accounting authorities require this to facilitate estimation of revenue and fund management); 14 # b) Each morning (T+1), e-Treasury will receive a consolidated file of entire details of the challans (including CIN) from GSTN for which successful transactions have been reported by the banks to GSTN on real time basis for the previous day; c) Each morning (T+1), e-Treasury 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) They will also receive from GSTN, later in the day, results of reconciliation by GSTN with the bank's and its own data; e) The e-Treasury of the State would reconcile the challan details [received in step b) above] with the e-Scroll information [received from RBI in step c) and from GSTN in step d) above], and do the detailed revenue accounting based on the information provided in the e-scroll provided by RBI to the accounting authorities; f) E-Treasury will also provide CIN wise payment / challan det....
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.... Missing from either side i.e. RBI/GST System: In this case, the MoE will be raised to RBI. Process steps of reconciliation: STEP 1: e-Treasury will receive e-Scroll from RBI and CPIN & CIN from GST System. STEP 2: The e-Scroll of RBI and CPIN & CIN of GST System will be checked on different level of validations (File Level Validations, Digital Signature Validation & Record Level Validation). STEP 3: The system will check the positivity of the validations on both the e-Scroll of RBI & CPIN & CIN of GST System. CIN data will matched with CPIN Data. STEP 4: If the validation is negative, then the Negative Acknowledgement will be sent to RBI & GST System for their respective files. (Error is reported to GST through mail) STEP 5: If the validation is positive, then the Positive Acknowledgement will be sent to RBI. STEP 6: In case the validation is positive, accounting will be done for the CINs received from GST System in the respective Head of Accounts. STEP 7: Also, in case the validation is positive, the reconciliation of e-Scroll with the CINS received from GST System will be done. STEP 8: If the reconciliation is positive, the Accounting will be done for the e-Scro....
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....hallans as per the procedure prescribed under GFAR and Budget manual for revenue reconciliation g. They will receive the Monthly statement of IGST Apportionment reflected in SGST, CGST and Settlement Ledgers from GST Portal (To make accounting by way of Transfer Entries from one head of Account to another where Cash transaction is not involved in this process) h. Reconciliation Cell and dedicated/ designated officers of Commercial Tax Department will be responsible for monitoring over the reconciliation process for GST (SGST/ IGST heads) system. They will take monthly reports from Tax authorities for this purpose and will submit complete report to Head of Department for further submitting it to Finance (Revenue). MOE REPORT (DATA FORMAT) FROM E-TREASYRY TO GST PORTAL: The transaction level resolution of discrepancies through the Memorandum of Error (MOE) process with RBI and banks is the responsibility of the respective Accounting Authorities. On the basis of the result of reconciliation with reference to CINs reported earlier by GST Portal, the Accounting Authority will generate a MOE with a Unique Identification Number(UIN) and communicate the same to the RBI and ....
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....rt the data in the following format to GST Portal : UI CPI GSTI CIN Total CGS IGS T Rajst BRN MOE MoE MoE Amoun T han Raised decision closure t SGST date *R/N *R- Reversed Transaction N-No Action 20 20 The steps involved in the correction mechanism- i. ii. iii. iv. V. vi. vii. Annexure-D GSTN will report the error to the relevant Accounting Authority (and Tax Authority, if GOI or concerned State so wants) and RBI, if the discrepancy is detected by G$TN; The relevant Accounting Authority will generate a MOE with a UIN and communicate the same to RBI with a copy to concerned authorized bank for resolution (Accounting Authorities of the Centre and States will have to initiate MOE in respect of their respective taxes) (This may be on the basis of discrepancy detected and communicated by GSTN or by the Accounting Authorities themselves); RBI to ascertain from e-FPB of the concerned authorized bank / RBI and get the discrepancy corrected. E-FPB of the concerned Authorized bank / RBI must rectify this discrepancy within a period of two days from the date of receipt of MOE from the Accounting Authority; Rectification by the concerned e- FPB / RBI wi....
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....nt is reported in 'MoE_Resolution_camt.029.001.06v1.0'. The difference amount needs to be reversed to the bank. So RBI will request in this file for reversal of payment from Government. Step 6: Reconciliation of CIN data of accounting & non-accounting MoE Resolution with CIN data of Challans will be done by State Accounting System. Step 7: MoE will be issued to RBI for unmatched CINs by e-Treasury again in 'MOE_Initiationv1.1'file format. Step 8: The e-Treasury will post the entries of accounting credit notification in the hourly e-scroll to relevant accounting heads of SGST & IGST and clear the RAT Head. Step 9: e-Treasury will send payment advice through IFMS to RBI to debit the government account for non-accounting MoE resolution in 'Govt. ePayments_Pain.001.001.05_1.1' file format. Step 10: RBI will send the acknowledgement (positive/negative) for the receipt of the payment advice in 'Govt. ePayments_ Status_ Pain.002.001.05v1.1' file format. 24 Step 11: RBI will send the debit notification to the e-Treasury for debiting the government account in 'Govt_Notf_camt.054.001.05v2.0' file format. Step 12:e-Treasury will post the entries of non-accounting MOE resoluti....