Latest Indirect Tax Update by the Council on Goods and Services Tax India

Current Indirect Tax Update by the Indian Goods and Services Tax Council

www.carajput.com; GST

www.carajput.com; GST

# CBIC has explained that an application for a refund may be submitted before 30.06.2020 as the duration of two years is between 20.03.2020 and 29.06.2020.

# CBIC has clarified that an application for a letter of undertaking (LUT) for export without payment of tax may be filed for F.Y. until 30.06.2020. 2020–21.

# CBIC has explained that where taxes have been paid in respect of any supply which has been returned / canceled subsequently, the taxpayer may demand the refund in Form GST RFD-01 if there is no corresponding production liability for the adjustment of the Credit Note.

# Form GST PMT-09 is now available on the GST Site, and can be used to transfer cash balances from one tax head to another tax head.

# CBIC instructed FORM GST PMT-09 of the move of balances in Cash Ledger from one head (Tax / Interest / Fee, CGST / SGST / IGST) to another head (Tax / Interest / Fee, CGST / SGST / IGST). The form has been enabled on the GST Portal and can be filed as required.

# 30.06.2020 is the latest due date of GSTR-1 for the months of March, April and May, 20 and Q4 (2019-20) for all taxpayers irrespective of turnover.

# CBIC has instructed that a registered person will be able to file NIL returns in the form GSTR-3B via a sms service using a registered mobile number and must be checked by an OTP obtained on a registered mobile number.

# Established composition Taxable person to file CMP-08 for Q4 (2019-20) by 07.07.2020 instead of 18.04.2020 and file GSTR-4 for FY 2019-20 by 15.07.2020 instead of 30.04.2020.

# 05.05.2020 is the due date for filing GSTR-3B for taxpayers with a cumulative turnover of more than INR 5 crores for the month of March, 20. Note-filing GSTR-3B by the latter date will not grant you an extra expense burden on interest and late fees. However, you will file 9 percent interest and zero late fees over GSTR-3B before 24.06.2020.

# CBIC has notified that GSTR 3B has been verified by the Electronic Verification Code (EVC) during the period from 21.04.2020 to 30.06.2020.

# Budget 2020 revised Section 51 of the GST Act to eliminate the requirement that the tax deductor grants the “GST TDS Certificate.”

Note-To collects the deducted TDS, you need to sign in to the “GST Server” and go to the “Returns-TDS and TCS Credit Earned” page. The moment you submit such a return, the amount of TDS deducted will come in “Electronic Cash Ledger” and, interestingly, the same amount may also be deducted from RCM’s liability.

# Condition of ITC @ 110 percent of eligible ITC in 2A (if available) to be checked “cumulatively” for the months of Feb to Sep, 20 as per CBIC Notification.

THE DUE DATE TO FILE GSTR-3B: # Cautiously respond to the due dates of GSTR-3B relevant in your case for the coming months (as shown in the Master Updates above). When you are considering selecting a due date with a decreased interest (* *) above, choose the same option in these situations:

  • If your net tax obligation is “Nil,” no interest can be paid in that situation.
  • If you have to pay tax by some Interest Rate loan, more than 9 percent p.a.
  • February, 2020:
    • Nominated 04.04.2020 is the due date for filing GSTR-3B for taxpayers with Turnover > INR 5 crores. * *
    • Nominated 29.06.2020 is the due date for filing GSTR-3B for taxpayers with Turnover < = INR 5 crores but > INR 1.50 crores in the previous year.
    • Nominated 30.06.2020 is the due date of the GSTR-3B file for taxpayers with Turnover < = INR 1.50 crores in the previous year.
  • March, 2020:
    • Nominated 05.05.2020 is the due date to file GSTR-3B for taxpayers with Turnover > INR 5 crores.
    • Nominated 29.06.2020 is the due date to file GSTR-3B for taxpayers with Turnover < = INR 5 crores yet > INR 1.50 crores in the previous year.
    • Nominated 03.07.2020 is the due date of the GSTR-3B file for taxpayers with Turnover < = INR 1.50 crores in the previous year.
  • April, 2020:
    • nominated 04.06.2020 is the due date for filing GSTR-3B for taxpayers with Turnover > INR 5 crores.
    • Nominated 30.06.2020 is the due date for filing GSTR-3B for taxpayers with Turnover < = INR 5 crores yet > INR 1.50 crores in the previous year.
    • Nominated 06.07.2020 is the due date of the GSTR-3B file for taxpayers with Turnover < = INR 1.50 crores in the previous year.

Note : If not filed before the due date but filed before 24.06.2020, then decreased interest @ 9 per cent p.a. It would be available without any LATE FEES.

  • May, 2020:
    • The due date for filing GSTR-3B by taxpayers with Turnover > INR 5 crores is 27.06.2020.
    • 07.2020 is the due date for the filing of GSTR-3B by taxpayers with Turnover < = INR 5 Crores AND Notes with the “22nd day of next month” as the earlier due date.
    • Nominated 14.07.2020 is the due date for the filing of GSTR-3B by taxpayers with Turnover < = INR 5 Crores AND Notes with the “24th day of next month” as the earlier due date.

Applicable Annual Report and GST Audit

# GSTR-9 (Annual Report) is expected to be submitted only by taxpayers with gross turnover in excess of INR 2 crores in the financial year 2018-19.

# GSTR-9C (Audited Reco. Statement) is expected to be submitted by taxpayers with an annual turnover of more than INR 5 crores in the financial year 2018-19.

# GSTR-9A (Annual Return by Arrangement Taxable Person) is not necessary to be filed for F.Y in any case. Financial Year 2018-19, since “Optional” is the same thing.

# CBIC has issued a Notification to exempt foreign airline companies w.r.t. from filing GSTR-9C (Reconciliation Statement) where the company complies with the provisions of the Foreign Company Compliance Act and is only required to file ‘Receipt and Payment Account’ for each GSTIN by 30 September of each year.

# The due date of GSTR-9 (Annual Return) and GSTR-9C (Audited Reco Statement) for FY 2018-19 has been extended to 30.09.2020. Note: GSTR-9 is required to be filed only by taxpayers with an aggregate turnover of more than INR 2 crores in the 2018-19 fiscal year. However, GSTR-9C is expected to be submitted only by taxpayers with an annual turnover of more than INR 5 crores in the 2018-19 fiscal year.

# Technical Words of caution for GSTR-9/9C:

  • Appreciable Estimates for GSTR-9 are self-populated for GSTR-1 and GSTR-3B for REFERENCE purposes only.
  • Appropriate In the event that the supplies indicated in GSTR-1 and/or GSTR-3B vary from the real supplies for some reason, the estimates are to be revised “manually” in Part II (B2B, B2C etc) and the “price due” number is to be revised “manually” in Table 9 of GSTR-9.
  • After changing Section II and Table 9, you can see a “payable discrepancy” in Table 9 after modifying the sums “Paying by Cash + Charged by ITC.” This balance will be compensated by the taxpayer via DRC-03. In case of excess already paying, the refund may be requested via RFD-01.
  • If paid as above, there is no provision to include the same differential number in GSTR-9C in the table “Auditor Recommendation”.

Post by Rajput Jain & Associates

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Due Dates of GSTR-1 Has been Extension and other GST Updates

Due Dates of GSTR-1 Has been Extension and other GST Updates

www.carajput.com;GST LAW

www.carajput.com; GST LAW

GST RETURNS

Owing to the issues with GSTR online portal and much to the relief of tax payers, the due date for filing of FORM GSTR-1 has been extended vide Notification No. 71/2017-Central Tax and 72/2017-Central Tax dated 29th December 2017. The previously announced due date of 31st December 2017 has been extended to 10th January 2018. The relief has been provided to assessees with aggregate turnover upto 1.5 crore as well as those with aggregate turnover over 1.5 crore.

For assessees with aggregate turnover upto 1.5 crore, the period for which extension has been granted is July to September 2017. There is no modification in due dates for the quarter of October to December 2017 and January to March 2018. On similar lines, extension for assessees with aggregate turnover exceeding 1.5 crore is for the period July to October 2017 and no changes have been provided in due dates of subsequent months. Revised due dates for furnishing FORM GSTR-1 is summarized below-

EXTENSION OF GSTR-1 FILING DUE DATES

For Assessees with aggregate turnover up to 1.5 crores

  1. No. Months involved  Due Date for filing GSTR-1
  2. July – September 2017        10th January 2018
  3. October – November 2017 15th February 2018
  4. January – March 2018           30th April 2018

Last date for filing of Monthly return in FORM GSTR-1 for for July-September , 2017 for Registered persons having Aggregate turnover of up to 1.5 crore ,  has been extended to 10thJanuary, 2018 from earlier due date of 31st December, 2017 ( NotificationNo.71/2017 ).

For assessees with aggregate turnover exceeding 1.5 crores

  1. No.  Months involved  Due Date for filing GSTR-1
  2. July – November 2017      10th January 2018
  3. December 2017          10th February 2018
  4. January 2018             10th March 2018
  5. February 2018           10th April 2018
  6. March 2018                10th May 2018

Last date for filing of Monthly return in FORM GSTR-1 for for July-October, 2017 for Registered persons having Aggregate turnover of more than Rs 1.5 crore , has been extended to 10th January, 2018 from earlier due date of 31st December, 2017 ( Notification No.72/2017 ).

OTHER GSTR FILLING EXTENSIONS

Return Due date               GSTR-5(for non-resident)

15-December-2017          GSTR-6(for input service distributor)

31-December-2017           ITC-04(for job worker ,for July-sept)

31-December-2017       GSTR-3B Return

GSTR-3B Return

GSTR-3B return will have to be filed by all taxpayers in addition to GSTR-1, GSTR-2 and GSTR-3 return.Earlier, GSTR-3B returns were to be filed for the month of July to December 2017.

IN 23rd council meeting, it has been announced that GSTR-3B return must be filed for all months from July 2017 to March 2018. The due date for GSTR-3B return will be the 20th of every month.

Late fees for GSTR-3B of July, Aug. and Sept waived. Any late fees paid for these months will be credited back in electronic cash ledger under Tax and can be utilized to make GST payments

Reduction of GST Return Penalty

In addition to the waiver of GST Return Penalty, the Government has also announced a reduction in GST return penalty for NIL GST returns. From October 2017, the GST return penalty for not filing NIL GST return has been reduced to Rs.20 per day instead of Rs. 200 per day.

GST on Advances Received

In 22nd GST Council, it has now been decided that taxpayers having annual aggregate turnover up to Rs. 1.5 crores will not be required to pay GST at the time of receipt of advances on account of supply of goods.

E-Way Bill

As per E-Way bill rules, any transportation of goods with a value of more than Rs.50, 000 would require an e-way bill. The GST council in earlier meeting in October had decided that E-way bill would be introduced in staggered manner from January 1 and subsequently nationwide from April1.

In the recent 24th GST council meeting was finally decided that the e-way bill is now introduced and will be applicable from 1st February 2018 across the nation. The nationwide e-way bill system will be ready to be rolled out on trail basis latest by 16 January 2018. Trade and transporters can start using thi system on voluntary basis from 16 January 2018.

GST REGISTRATION

Registration under GST was mandatory for entities undertaking inter-state supply of goods and/or services, irrespective of aggregate annual turnover.In the 22nd GST Council, it has been decided to exempt service providers from this condition. Hence, service providers will now be allowed to undertake inter-state sales of upto Rs.20 lakhs without obtaining GST registration.Further, this is exemption is also available for service providers supplying services through an e-commerce operator.

But person supply goods will still be required to obtain GST registration mandatorily (in case of inter -state supply)

GST COMPOSITION SCHEME

This scheme is intended for small businesses where compliance less.22nd GST Council has decided to increase the aggregate turnover to Rs.1 crore. (The aggregate turnover threshold for special category States, has also been   increased to Rs. 75 lacs from Rs. 50 lacs excepts J&K and Uttarakhand)

Person opting for composition scheme was restricted from providing any exempted/taxable service .but now a composite can provide exempted service also.

In 23rd GSTcouncil meeting the due date for enrolling under the increased threshold has been made available to both migrated and new taxpayers up to 31.03.2018.

The GST rate payable by GST Composition dealers has been harmonized for all taxpayers (traders or manufactures) at 1%. However, not change has been announced on the GST rate for composition scheme for restaurants.

GSTR 4 return must be filed by taxpayer registered under the GST composition scheme. GSTR4 is a quarterly return that was originally due on the 18th of month following respective quarter. But in 23 council meeting composition returns, GSTR-4 due date extended to 24 /December/2017 for July-September quarter

Reverse Charge Mechanism

Registered taxpayers were required to pay GST on reverse charge basis when they purchased from an unregistered person, the 22ndGST Council has decided to suspend the reverse charge mechanism till 31.03.2018. Now, registered taxpayers can purchase from unregistered persons without having to pay GST on reverse charge basis.

TDS and TCS Provisions Postponed

The Government has decided to postpone the TDS/TCS registration and operationalization to 31st March 2018.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)