TaxTMI 
TaxTMI 
Circular regarding Accounting Framework for new Goods and Services Tax (GST) regime
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....ingle source of data entry & authentication regarding GST challans, e-payments and scroll 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 Nod....
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....anks to e- Treasury of State. Memorandum of errors will be initiated by e-Treasury and send to RBI on the basis of discrepancies found (through the system) in the data received from GST 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 ....
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....accounting head wise ledgers. (b) Electonic Credit Ledger - ITC can be utilized to discharge the liability of IGST and SGST. ITC of SGST can be used to discharge the liabilities of SGST and IGST in this sequence. (c) Electronic Tax Liability Register - The liabilities of tax payer 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....
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....At the end of the day, a Payment Advice of entire refunds sanctioned by the officers would be generated and transmitted to a Nodal officers of state. Nodal Officer of State will sign the Payment Advice digitally and will further transmit to the Accounting Authority of state (E-Treasury). The E-Treasury will get the refund disbursed through IFMS and accounting/reconciliation done at its level. In 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 me....
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.... any changes have been made with respect to the State, the Pr. CCA shall calculate the net payment to be made from IGST account to each State or vice versa and shall upload a final Statewise summary of the same on the Centralised Accounting portal within three days of receipt of the revised data from GSTN. Thereafter based on uploading of this data a final sanction order for the month shall be issued by Department of Revenue as per the procedure laid down below. The Centralized Accounting 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 elect....
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.... 4. State Accounting Authority (e-Treasury) shall create MoE with appropriate flag and transfer the same to RBI. 5. RBI shall do the reconciliation with resective Bank and on receipt of error luggage file from bank, RBI shall generate a response file. 6. The response file will contain either: a. Credit Notification file (CNF) in case the amount reported by the RBI is less than the amount reported by GST portal; or b. Other item for Corrections in case the amount reported by RBI is more than the amount reported by GST Portal Or the error does not pertain to the RBI/Bank. 7. On 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 ....
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.... procedures laid down under chapter- IX of Rajasthan Treasury Rules 2012. 2. Electronic and digitally signed account will be rendered separately for GST by e- Treasury. Hard copies will not be provided with monthly accounts. The data of challans received through GST portal will be made accessible to PAG office so electronic data of challans in the form of 45-A (as in the case of current e-receipts) will not be provided. AG interface will be developed by NIC in new accounting framework for data downloading/ uploading process related to GST in AG office. 3. Reconciliation process of the GST challan data/ corrections through transfer entry in the GST data after submission of monthly 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 Autho....
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....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). 14. Role of Drawing and Disbursing Officers/ Divisions in GST- 1. Under the section 51 of RGST Act, 2017 and CGST Act 2017, DDOS/ Government Agencies will be liable to deduct tax at the rate of one percent from the payment made or credited to the supplier of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lac and fifty thousand rupees. Provided that no deduction shall be made if the location of the supplier and the place of 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 G....
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....en taxpayers, tax authorities, authorized banks, RBI and accounting authorities. So GSTN will play the following role in this mode of payment: a) Generation of challan along with CPIN; b) Facilitating e-payments by providing a linkage to Internet Banking interfaces of authorized banks and payment gateways of authorised banks; c) Receipt of real time data from IT system (e-FPBs) of each authorized bank regarding successful completion of payment transaction by the taxpayer (CIN); d) Generating receipt containing BRN No. of collecting bank for taxpayer acknowledging receipt of payment by the bank. A further facility of generating receipt containing RBI's scroll number for taxpayer would also be provided; e) Information to the respective Tax Authorities on real time basis for each successful transaction reported by banks. The communication at this stage 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 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 C....
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....tion of payment transaction by the taxpayer (CIN); c) At the end of each day (T+1), each e-FPB will be responsible for preparing daily luggage files Major Head wise (CGST, IGST and SGST) for each government detailing receipts from all modes of payments on a particular day (including nil payment days) and forwarding it to RBI in the morning. Each luggage file will have a Unique Serial Number which will be a running serial number extending through a financial year which will facilitate identification of missing files. Data and transaction security must be ensured by the e-FPB. d) On the first day of every month, e-FPB will provide Date wise Monthly Statements (DMS) for each tax and government separately to RBI for the preceding month with following details: i. ii. iii. Name of Tax; Government Name; Date wise number of successful transactions and total credit reported to RBI C. E-KUBER (CORE BANKING SYSTEM) OF RBI: The following functions will be performed by RBI (e-Kuber): a) RBI will consolidate luggage files received from all authorized banks, debit their accounts and correspondingly credit the CGST, IGST and SGST accou....
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....ll be communicated using the SFTP server. i) The e-Scroll received will be tested at different level of validation. j) The RBI would prepare e-scroll based on luggage files received from e-FPBs. The daily luggage files (seventy four) received from all the authorized banks including payment received directly by RBI would be collated by RBI (one for each major head for Centre and each State) and will be sent to the Accounting Authority. k) RBI will also be liable to provide formats of scrolls/ DMS and put through statement/ settlement ledgers etc to the state Government. D. CENTRAL ACCOUNTS SECTION (CAS) OF RESERVE BANK OF INDIA, NAGPUR: CAS, Nagpur reports daily consolidated credits and debits to each Government and Accounting Authorities. Such daily statements cover all receipts and payments for the respective governments including inter-government transactions. GST credits will be one of the items reported by CAS, Nagpur in its daily statements. The scroll number of GST should be the credit identifier in the daily statements. E. E-TREASURY The following functions will be performed by e-Treasury: a) At EQD, e-Treasury will recei....
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....DMS) from e-PAOs and e- Treasuries of the State respectively; c) ) The reconciliation of both the data will be carried out by them; 15 # Annexure-B 1. Details of reconciliation process- A. Before submission monthly accounts to AG office- E-Treasuries of the State will reconcile the data of e-Scroll with the Challan received from GST system. The data to be reconciled shall be received by e-Treasury from RBI and GST system comprising of e-Scroll from RBI and Challans (CPIN & CIN) from GST system. The reconciliation process shall identify and list out the parameters which will baseline of the reconciliation procedure for Accounting Authority. The reconciliation process will be followed according to the data received from both RBI & GST System. The CINS received from RBI in SGST e-Scroll will be reconciled with CINS received from GST system for SGST. The reconciliation outcome can be of two types: 1. The whole Amount of CIN is matched: The Accounting entries for this case have been explained in Accounting Entries Scenarios of e-Scroll of SRS document issued for Central Accounting System. 2. The Amount Mismatch from either side....
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..../CIN Amount, the Accounting will be done for the corrected CIN in respective Head of Accounts. STEP 17: If GST System replied against the MoE that it had already reported the correct CIN/CIN Amount, the manual intervention will be needed to solve the discrepancy. B. After submission of monthly account by e-Treasury- Tax Authority i.e. Commercial Tax Department GoR : The following functions will be performed by the CTD, GOR: a. Tax authorities will be responsible for reconciling the GST receipts and verified challan data received from e-Treasury b. State Tax Authorities will be responsible to process refund as received from GSTN and sent refund bill to E-Treasury for payments. c. Once the refund are approved by the competent authorities, an e-bill of refund will be prepared by the tax authorities through the IT system. d. The digitally signed bill sent by the central IT system of tax authorities and the same will be integrated into the-IFMS system for e-payment. e. Tax authorities will be liable to reconcile the monthly and daily data of GST challans received from e-Treasury with its authentication numbers. They will also be responsibl....
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....UIN GSTIN CIN Total Amount CGST IGST Rajasthan Bank SGST code BRN RBI will report the data in the following format to GST Portal : RBI UI CPIN GSTI scroll N N CIN Total BRN Pmt Amount date date MoE Raised date MoE MoE decision closure *R/N 2. Non-Reconcilled Transactions (Reported to GST RBI with incorrect CPIN details) The following MOE details will be shared by the Accounting Authority to RBI- GSTIN CPIN Total CGST IGST Rajasthan Bank BRN Payment UIN (RBI Scroll) Amount SGST RBI will report the data in the following format to GST Portal: code RBI UI scroll N date Correc CPIN GS CIN shared TIN CPIN earlier Total BR Amoun N t date 19 t date Pmt MoE MoE MoE Raise decision closure d date *R/N 3. Non-Reconcilled Transactions (Reported to RBI with incorrect head): The following MOE details will be shared by the Accounting Authority to RBI- UIN GSTIN CPIN Total CGST IGST Rajasthan Bank BRN Payment Amount SGST code date N IN N RBI will report the data in the following format to GST Portal : RBI UI CPI GST....
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....s for Monthly Accounts: Government of Rajasthan Form No TY 33A (Rule 199, Rajasthan Treasury Rules, 2012) Treasury Name___(E-Treasury) Schedule of Receipt for GST (SGST) (Head wise & Challan wise) Paid Budge Head Challa n No. Challa n date GSTI CI Amou Refund N N by t Nam nt in of Receipt Gross adjustme Amou who Head e cash Revenu nt nt m e *MCR- Minus Credit Receipt (Deduct Revenue) (MCR) 22 22 Government of Rajasthan Annexure-E (A) Form No TY 38A (Rule 208, Rajasthan Treasury Rules, 2012) Treasury Name____(E-Treasury) Cash Account for GST (SGST) From (DD/MM/YY) to (DD/MM/YY) Major Sub Minor Minor Head Head Head Sub Group Sub Head Description Amount Total of Budget (In Rs) Challans Head Head 23 ã‚» Annexure-F Process Steps of MoE: Step 1: For un-matched CINs, e-Treasury will issue MoE to RBI in 'MOE_Initiationv1.1' file format. Step 2: For unmatched CINs accounting entries will be done under RAT heads by the Accounting Authorities. Step 3: RBI will send acknowledgement (positive/negative)....