GST newest Notifications: CBIC GST Extension Notifications dated 24 June 2020

GST latest Notifications: Analysis of CBIC Notifications on GST extensions dated 24 June 2020

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www.carajput.com; GST 40th Council meeting

Today, CBIC issued various notifications to implement the recommendations of the 40th GST Council meeting as follows: CBIC Notifications signed on 24.06.2020 regarding interest waiver and late fees. On 24 June 2020, the CBIC released multiple notifications of GST. The synopsis of those updates is here.

Notice No. 49/2020 – Central Tax: Implementing some aspects of the Finance Act, 2020

Notification No. 50/2020 – Central Tax: Notification of GST rates for individuals taxable in composition under Rule 7 of the CGST Rules

GSTR-3B-Interest rate waiver: Notification No.51/2020-Central Tax 24.06.2020: To put certain provisions of the Finance Act into force, 2020.

Notification No. 52/2020 – Central Tax: GST waiver for taxpayers who’ve not filed GSTR-3B for tax dates between July 2017 and January 2020 shall be informed as stated earlier at the 40th meeting of the GST Council. In CGST Notification No. 52/2020 dated 24 June 2020, the CBIC notified that between 1 July 2020 and 30 September 2020, Zero GSTR-3B could be filed without a late fee for the above duration. Furthermore, it shall be limited to a maximum of Rs 250 per return per month per act for the remaining taxpayers.

A late fee exemption also moved the last GSTR-1 deadlines from March to June 2020 as of June 30th, 2020. The latest timelines for monthly filing without even a late fee charge will be from March to June 2020, 10th, 24th, 28th July 2020, and 5th August 2020 respectively. The last date for the GSTR-1 quarterly is 17th July and 3rd August 2020 for the quarters January-March 2020 and April-June 2020.

Big taxpayers have not been informed of further extensions for filing GSTR-3B from February to May 2020, with an annual turnover of more than Rs 5 Crore in the previous financial year. Furthermore, no interest should have been paid from the respective due dates of February to April 2020, i.e. 20th of the following month, for the first 15 days respectively. After that, interest at a 9 percent p.a. reduced rate. Any further delay in GST payments would have been imposed till 24 June 2020.

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www.carajput.com; GST 40th Council meeting

Initially, taxpayers with an aggregate annual turnover of up to Rs 5 crore in the last financial year have their due date staggered as 22nd # or 24th # of their next month, depending on the state / UT from which they run their main place of business. For the exception of May 2020, its due date staggered as July 12th # or 14th # # 2020. Furthermore, in the exception, August 2020 also comes with yesterday’s due date extended to 1st # or 3rd # # October 2020.

The CBIC has abolished the taxpayer bifurcation based on the annual sales up to Rs 1.5 crore or between Rs 1.5 crore and Rs 5 crore. Correctly, as per yesterday’s 40th meeting of the GST Council, the late fee and the interest waiver will continue until September 2020

GSTR-1-Late Fees / Penalty Waiver: Notification No.53/2020-Central Tax 24.06.2020: Conditional waiver of late fees for all GSTR 1 registered persons for months/quarters ending March to June 2020, if submitted by the time set.

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www.carajput.com; GST 40th Council meeting

GSTR-3B-Extension of the deadline for Aug 2020: Notification No.54/2020-Central Tax 24.06.2020: extension of the deadline for submission of GSTR 3B to 1/3 October 2020

 

www.carajput.com;GST Relief to small business

www.carajput.com; GST Relief to small business

Summary of Important Due date of July and Aug 2020

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Rajput Jain & Associates

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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)

Amendment in Section 140 of the CGST Act 2017: Intends to formalise the gap in the law and to put an end to legal proceedings.

Backdated amendment in Section 140 of the CGST Act 2017: intends to formalise the gap in the law and to put an end to legal proceedings. – Notification No. 43/2020-Central Taxes, dated 16.05.2020

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www.carajput.com; Amendment

TRANSITIONAL PROVISIONS FOR ITC NOTIFY U / S 140 OF CGST ACT

  • CBDT INFORMED PROVISIONS U / S TRANSITIONAL PROVISIONS FOR ITC
  • TRANSITIONAL CENVAT CREDIT – ENACTED PROVISIONS EFFECTIVE FROM 18.05.2020

CBDT, Ministry of Finance, (Department of Revenue) vide Notification No. 43/2020 –Canter  Tax dated 16 May 2020 has released notification requesting the entry into force of Section 128 of the Finance Act 2020 to amend Section 140 of the CGST Act w.e.f. 01.07.2017.

What was the change to Section 140 of the CGST Act, 2017?

Section 140 of the CGST Act deals with transitional GST payments. The terms “within that period” have been used in the various clauses of Section 140 of the CGST Act, 2017 of the Finance Act, 2020. The said change has a retrospective effect from 1 July 2017, i.e. the very first day of introduction of the GST. However, until now, that provision of the Finance Act 2020 has not been put into force. The reform has now been enforced by CBIC empty Notice No. 43/2020-Central Tax dated 16.05.2020 from 18 May 2020.

What was the need for an amendment?

Previous to the amendment referred to above, Section 140 did not include a time limit on the use of transitional GST credits. However, Rule 117 of the CGST Rules 2017 does contain a time limit, but in the past two years, different writs have been filed by taxpayers before the High Courts challenging the validity of the time limit laid down in Rule 117 of the CGST Rules 2017 for the use of transitional credits under the GST.

The High Courts held that the CGST Rules could not supersede the CGST Act. Since the CGST Act does not allow any time limit for the use of transitional credits under the GST, therefore, the CGST Rules that set the time limit for the use of transitional credits are unconstitutional. There has since been pending lawsuits surrounding the legitimacy of Rule 117.

The amendment referred to above seeks to regularize the gap in the law and to put an end to the dispute with regard to the validity of Rule 117 of the CGST Rules.

What will be the effective date of amendment?

While the above amendments to section 140 of the CGST Act is valid as of 01 July 2017, section 128 of the finance bill 2020 (through which the above amendment was made) has been in force as of 18 May 2020. This means that the law does not plan to reverse the actions of taxpayers until 18 May 2020.

KEY DIFFERENCE IN THE AMENDMENT IN SECTION 140 OF THE CGST ACT 2017 ARE PROVIDE IN THE BELOW ANALYSIS:

Before Amendment After Amendment (Section 128 of Finance Act, 2020)
(1) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, the amount of CENVAT credit carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by him under the existing law in such manner as may be prescribed: (1) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, the amount of CENVAT credit carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by him under the “within such time and” in such manner as may be prescribed:
(2) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, credit of the unavailed CENVAT credit in respect of capital goods, not carried forward in a return, furnished under the existing law by him, for the period ending with the day immediately preceding the appointed day in such manner as may be prescribed: (2) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, credit of the unavailed CENVAT credit in respect of capital goods, not carried forward in a return, furnished under the existing law by him, for the period ending with the day immediately preceding the  “within such time and” in such manner as may be prescribed:
(3) A registered person, who was not liable to be registered under the existing law, or who was engaged in the manufacture of exempted goods or provision of exempted services, or who was providing works contract service and was availing of the benefit of notification No. 26/2012—Service Tax, dated the 20th June, 2012 or a first stage dealer or a second stage dealer or a registered importer or a depot of a manufacturer, shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to the following conditions, namely:–– (3) A registered person, who was not liable to be registered under the existing law, or who was engaged in the manufacture of exempted goods or provision of exempted services, or who was providing works contract service and was availing of the benefit of notification No. 26/2012—Service Tax, dated the 20th June, 2012 or a first stage dealer or a second stage dealer or a registered importer or a depot of a manufacturer, shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished  “goods held in stock on the appointed day, within such time and in such manner as may be prescribed, subject to” the following conditions, namely:––
(5) A registered person shall be entitled to take, in his electronic credit ledger, credit of eligible duties and taxes in respect of inputs or input services received on or after the appointed day but the duty or tax in respect of which has been paid by the supplier under the existing law, subject to the condition that the invoice or any other duty or tax paying document of the same was recorded in the books of account of such person within a period of thirty days from the appointed day: (5) A registered person shall be entitled to take, in his electronic credit ledger, credit of eligible duties and taxes in respect of inputs or input services received on or after the appointed day but the duty or tax in respect of which has been paid by the supplier under the  “existing law, within such time and in such manner as may be prescribed”, subject to the condition that the invoice or any other duty or tax paying document of the same was recorded in the books of account of such person within a period of thirty days from the appointed day:
(6) A registered person, who was either paying tax at a fixed rate or paying a fixed amount in lieu of the tax payable under the existing law shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to the following conditions, namely:–– (6) A registered person, who was either paying tax at a fixed rate or paying a fixed amount in lieu of the tax payable under the existing law shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day, within such time and in such manner as may be prescribed, subject to subject to the following conditions, namely:––
(7) Notwithstanding anything to the contrary contained in this Act, the input tax credit on account of any services received prior to the appointed day by an Input Service Distributor shall be eligible for distribution as credit under this Act even if the invoices relating to such services are received on or after the appointed day. (7) Notwithstanding anything to the contrary contained in this Act, the input tax credit on account of any services received prior to the appointed day by an Input Service Distributor shall be eligible for distribution as “credit under this Act, within such time and in such manner as may be prescribed, even if” the invoices relating to such services are received on or after the appointed day.
(8) Where a registered person having centralised registration under the existing law has obtained a registration under this Act, such person shall be allowed to take, in his electronic credit ledger, credit of the amount of CENVAT credit carried forward in a return, furnished under the existing law by him, in respect of the period ending with the day immediately preceding the appointed day in such manner as may be prescribed: (8) Where a registered person having centralised registration under the existing law has obtained a registration under this Act, such person shall be allowed to take, in his electronic credit ledger, credit of the amount of CENVAT credit carried forward in a return, furnished under the existing law by him, in respect of the period ending with the day immediately preceding the appointed day  “within such time and in such manner”  as may be prescribed:
(9) Where any CENVAT credit availed for the input services provided under the existing law has been reversed due to non-payment of the consideration within a period of three months, such credit can be reclaimed subject to the condition that the registered person has made the payment of the consideration for that supply of services within a period of three months from the appointed day. (9) Where any CENVAT credit availed for the input services provided under the existing law has been reversed due to non-payment of the consideration within a period of three months, such  “credit can be reclaimed within such time and in such manner as may be prescribed, subject to” the condition that the registered person has made the payment of the consideration for that supply of services within a period of three months from the appointed day.

Enacted Provisions informed on 16 May and come into operation on 18 May 2020.

Link: https:/www.cbic.gov.in / sources/htdocs-cbec / gst / notfctn-43-central-tax-english-2020.pdf

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)

How to Submit NIL GST-Return i.e Through the SMS and Company may file returns of GST without DSC

GST returns may be filed by SMS and Company may file GST returns without DSC

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www.carajput.com; GST Return

In a circular flow by CBIC, many obstacles to ease of compliance have been removed during the Covid-19 Annual Return Filing Date 2018-2019 extended to 30 September 2018.

Companies may also file GST returns without digital signatures (via EVM): the notification issued by the Board today stated that a registered person registered pursuant to the provisions of the Companies Act, 2013 (18 of 2013), during the period from the 21st day of April 2020 to the 30th day of June 2020, may also submit a return pursuant to section 39 of the FORM GST-3B verified by means of the EVM.

The Nil GST returns can be filed via SMS. : In addition, CGST Rule 67 was also amended and a new clause 67A was inserted, provided that the Board provided a means of providing the return of the short message service facility. According to that provision, a registered person who is required to provide the Nil return for a tax period under section 39 of the FORM GSTR-3B, any reference to electronic furnishings shall include the provision of the said return through a short message service using an officially registered mobile number and the said return shall be verified independently by a registered mobile number based solely on the One Time Password facility.

Procedure Filing Nil GSTR-1 Return

Different categories of taxpayers are required to file different types of GST returns. As an illustration, we provide the procedure for filing the NIL GSTR-1 return in the following steps.

In order to file the NIL GST-1 return under the GST, one must follow the steps –

  1. Visit https:/www.gst.gov.in/;
  2. Provides the appropriate username and password;
  3. Navigate the Services path > Returns the Dashboard;
  4. Month and year to file a return must be selected from the drop-down list; 5. Select ‘Prepare online;’
  5. mention the fact the details of the Aggregate Turnover for the financial year and the Aggregate Turnover for the period;
  6. Select ‘B2C (Other)’ under ‘GSTR-1 Other details’ and provide details;
  7. Select the POS i.e. under the next screen. Place of Supply in the drop-down list;
  8. Click the back button;
  9. Click Generate GSTR – 1 Summary;
  10. Choose the checkbox and select ‘Preview;’
  11. Click the Submit button;
  12. Return can be filed using either DSC or EVC.

Penalty for non-filing of the Nil return –

penalty / late fee provisions are laid down in section 47 of the Central Goods and Service Tax Act, 2017. Penalty / late fee for failure to file a GST return as set out in section 47 is as set out in – The default taxpayer is required to pay a late INR 100 fee for each day that such failure continues. However, the maximum penalty / late fee may not exceed INR 5,000.

On the same line, as stated in Notice No. 6/2018 – Central Tax dated 23 January 2018, the penalty / late fee payable in case of return in FORM GSTR – 5A to INR 50 per day (INR 25 CGST and INR 25 SGST) has been reduced. In addition, it was clarified in that notice that, in the event that the total amount of integrated tax payable in return is NIL, i.e. in the particular case of NIL, the late fee payable would be INR 20 per day (INR 10 CGST and INR 10 SGST).

The Goods and Service Tax Council has approved an SMS system that will allow the registered taxpayer to file a NIL return via SMS. Businesses who are NIL filers, where there is no supply or purchase within a quarter, may file their quarterly return via SMS.

It should be noted that the above system for filing NIL returns through SMS is actually currently not in force and is likely to be implemented as of 1 January 2019.

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

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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)