Indirect Tax Update by Indian Goods and Services Tax Council

Indirect Tax Update by the Indian Goods and Services Tax Council

• CBIC has explained that an application for a refund may be submitted before 30.06.2020 as the duration of 2 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 an 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 collect 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. 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”.

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Post by Rajput Jain & Associates