Global ratings agency Moody’s has lowered its outlook for India’s credit ratings to ‘negative’ from ‘stable’, citing the ongoing economic slowdown, financial stress among rural households, weak job creation, and the liquidity crunch in non-banking financial companies. This reflects increasing risks that economic growth will remain materially lower than in the past, partly reflecting lower government and policy effectiveness at addressing long-standing economic and institutional weaknesses than Moody’s had previously estimated, leading to a gradual rise in the debt burden from already high levels.
One needs to look at the decline in tax revenue in right perspective and we can not draw a conclusion that despite festive season, tax collection is down. No, that explanation may prove be wrong. The tax collection for October, 2019 will get reflected in November, 2019 when tax for October is payable. Moreover, input tax credit is being taken by assessees (we can assume that it is genuinely availed) and rate of GST has been reduced on many goods and services in past 6 months owing to trade demands and political compulsions.
It is also a fact that tax revenues are presently under stress. Ministry of Finance recently held an interactive session with trade and professional bodies to understand the GST concerns being faced and to simplify the forms and filing processes. It now plans to have massive out-reach programme throughout the country on 7th December, 2019.
Government has made Document Identification Number (DIN) mandatory to be mentioned an all communications issued by officers of CBIC to taxpayers and other concerned persons.
The Punjab and Haryana High Court vide order dated 04.11.2019 has directed Goods and Services (GST) Department to allow filing or revising Form TRAN-1 either electronically or manually. It held that, “the due date contemplated under Rule 117 of the CGST Rules for the purposes of claiming transitional credit is procedural in nature and thus should not be construed as a mandatory provision”. The Court also directed the Government / GST Department to permit the Petitioners to file or revise where already filed incorrect TRAN-1 either electronically or manually statutory Form(s) TRAN-1 on or before 30th November, 2019. Further, the Department will be at liberty to verify the genuineness of claim of Petitioners but nobody shall be denied to carry forward the legitimate claim of CENVAT / ITC on the ground of non-filing of TRAN-I by 27.12.2017. [Adfert Technologies Pvt. Ltd. v. Union of India (2019) 11 TMI 282 (Punjab & Haryana)]. It may therefore, be advisable for the taxpayers to take benefit of this opportunity provided by courts and approach the respective adjudicating authorities.
- Amendment of Registration in Core and Non- Core fields through a GST Practitioner
- TDS / TCS / NRTP / OIDAR / UN Body / Embassy / ONP taxpayers can now select a GST Practitioner (GSTP) for filling the amendment of registration of Core and Non- Core fields.
- The GSTP can amend details and save the draft. The taxpayer would be able to work on the saved drafts of the application and file it.
- Core fields include name of the business, (Legal Name) if there is no change in PAN, principal place of business (other than change in State) or additional place of business (other than change in State) etc.
[Source : GSTN]
CBIC has extended the due dates of filing annual return in Form GSTR-9 and reconciliation statement in Form GSTR-9C for F.Y. 2017-18 to December 31, 2019 and for F.Y. 2018-19 to March 31, 2020.
[Source : Order No. 08/2019-Central Tax, dated November 14, 2019]
- Due date of filing GSTR-1 for registered persons in J & K extended
CBIC has extended the due date of filing GSTR-1 for the quarter July, 2019 to September, 2019 till November 30, 2019 and for registered persons filing GSTR-1 monthly, due date for each of the months from July, 2019 to September, 2019 has been extended till November 15, 2019, for registered persons having principal place of business in the State of Jammu and Kashmir.
[Source : Notification No. 52/2019-Central Tax and Notification No. 53/2019-Central Tax, dated November 14, 2019]
- Due date of filing GSTR-3B for registered persons in J & K extended
CBIC has extended the due date of filing GSTR-3B for the months July, 2019 to September, 2019 till November 20, 2019 and for registered persons who are required to file GSTR-7 due date for the months from July, 2019 to September, 2019 has been extended till November 15, 2019, for registered persons having principal place of business in the State of Jammu and Kashmir.
[Source : Notification No. 54/2019-Central Tax and Notification No. 55/2019-Central Tax, dated November 14, 2019]
- Amendments in and Simplification of the annual return / reconciliation statement
- FORM GSTR 9: Table - 4 & 5 (Outward Supply): 4B To 4E can be filled net of Credit Notes, Debit Notes and Amendments*, Instead of reporting in separately in 4I, 4J 4K & 4L;
- Table 5A to 5F can be filled net of Credit Notes, Debit Notes and Amendments, Instead of reporting in separately in 5H, 5I, 5J & 5KJ; In case of Table 5D, 5E & 5F ( exempted, nil rated and Non-GST supply) - *Single figure can be reported against EXEMPTED* in 5D;
- Table 6 - ITC availed during the FY, In Table 6B, 6C, 6D & 6E the registered person can report the entire input tax credit under the *“inputs” row only*;
- Table 7 - ITC Reversal: Details of table 7A to 7E can be reported under 7H (Other Reversal); However TRAN I & II reversal has to be reported respectively;
- Table 8 - Other ITC related information: The registered person can upload the details for the entries in Table 8A to 8D (Reconciliation of GSTR 2A with GSTR 3B) *duly signed, in PDF format in Form GSTR-9C* (without the CA certification); Table 15, 16, 17 & 18 (*HSN summary also*) has been made optional
- FORM GSTR 9C: Some relaxation has been made in this form also which are as below:
Detail of turnover adjustments required in *Table 5B to 5N made optional* and all the adjustment required to be reported can be reported in Table 5O;
- Table 12B, 12C and 14 (ITC reconciliation) has also been made optional; Some minor changes in Declaration part also.
[Source : Notification No. 56/2019- Central Tax dated 14.11.2019]
Invoices / debit notes on which the restriction under rule 36(4) of the CGST Rules shall apply
- Restriction of availment of ITC is imposed only in respect of those invoices / debit notes, details of which are required to be uploaded by the suppliers under sub-section (1) of section 37 and which have not been uploaded.
- Therefore, taxpayers may avail full ITC in respect of IGST paid on import, documents issued under RCM, credit received from ISD etc. which are outside the ambit of sub-section (1) of section 37, provided that eligibility conditions for availment of ITC are met in respect of the same.
- The restriction of 36(4) will be applicable only on the invoices / debit notes on which credit is availed after 09.10.2019.
Restriction to be calculated on consolidated basis
- The restriction imposed is not supplier wise. The credit available under sub-rule (4) of rule 36 is linked to total eligible credit from all suppliers against all supplies whose details have been uploaded by the suppliers.
- Further, the calculation would be based on only those invoices which are otherwise eligible for ITC. Accordingly, those invoices on which ITC is not available under any of the provision (say under sub-section (5) of section 17) would not be considered for calculating 20 per cent of the eligible credit available.
Amount of input tax credit that is admissible to the taxpayers for a particular tax period in respect of invoices / debit notes whose details have not been uploaded by the suppliers
- It shall not exceed 20% of the eligible input tax credit available to the recipient in respect of invoices or debit notes the details of which have been uploaded by the suppliers under sub-section (1) of section 37 as on the due date of filing of the returns in FORM GSTR-1 of the suppliers for the said tax period.
- The taxpayer may have to ascertain the same from his auto populated FORM GSTR 2A as available on the due date of filing of FORM GSTR-1 under sub-section (1) of section 37.
ITC availability in FORM GSTR-3B in a month in case the details of some of the invoices have not been uploaded by the suppliers under sub-section (1) of section 37.
- ITC to be availed by a registered person in respect of invoices or debit notes, the details of which have not been uploaded by the suppliers under sub-section (1) of section 37, shall not exceed 20 per cent of the eligible credit available in respect of invoices or debit notes the details of which have been uploaded by the suppliers.
Balance ITC to be claimed in subsequent months
- The balance ITC may be claimed by the taxpayer in any of the succeeding months provided details of requisite invoices are uploaded by the suppliers.
- He can claim proportionate ITC as and when details of some invoices are uploaded by the suppliers provided that credit on invoices, the details of which are not uploaded (under sub-section (1) of section 37) remains under 20 per cent of the eligible input tax credit, the details of which are uploaded by the suppliers.
- Full ITC of balance amount may be availed, in present illustration by “R”, in case total ITC pertaining to invoices the details of which have been uploaded reaches ₹ 8.3 lakhs (₹ 10 lakhs /1.20).
- In other words, taxpayer may avail full ITC in respect of a tax period, as and when the invoices are uploaded by the suppliers to the extent Eligible ITC/ 1.2.
[Source : Circular No. 123/42/2019- GST dated 11.11.2019]
Notification No. 47/2019- CT dated 09.10.2019 provided for special procedure for those registered persons whose aggregate turnover in a financial year does not exceed two crore rupees and who have not furnished the annual return under section 44(1) / Rule 80(1) of section 44 of the said Act read with sub-rule (1) of rule 80 of the Central Goods and Services Tax Rules, 2017. It provided that the annual return shall be deemed to be furnished on the due date if it has not been furnished before the due date for the financial year 2017-18 and 2018-19, in respect of those registered persons.
CBIC has issued certain clarifications to ensure uniformity in implementation of law, viz,
- For persons paying tax u/s 10, the tax payers under composition scheme, may, at their own option file FORM GSTR-9A for the financial years 2017-18 and 2018-19 before the due date. After the due date of furnishing the annual return for the year 2017-18 and 2018-19, the common portal shall not permit furnishing of FORM GSTR-9A for the said period.
- For persons paying tax u/s 51 or 52, the tax payers, may, at their own option file FORM GSTR-9 for the financial years 2017-18 and 2018-19 before the due date. After the due date of furnishing the annual return for the year 2017-18 and 2018-19, the common portal shall not permit furnishing of FORM GSTR-9 for the said period.
- If any registered tax payer, during course of reconciliation of his accounts, notices any short payment of tax or ineligible availment of input tax credit, he may pay the same through FORM GST DRC-03.
[Source : Circular No. 124/43/2019- GST dated 18.11.2019]
- Fully electronic refund process through GST RFD-1 and single disbursement
- In order to make the process of submission of the refund application electronic, Circular No. 79/53/2018-GST dated 31.12.2018 was issued wherein it was specified that the refund application in FORM GST RFD-01A, along with all supporting documents, shall be submitted electronically. However, various post submission stages of processing of the refund application continued to be manual.
- The necessary capabilities for making the refund procedure fully electronic, in which all steps of submission and processing shall be undertaken electronically, have been deployed on the common portal with effect from 26.09.2019.
- The Circulars issued earlier laying down the guidelines for manual submission and processing of refund claims have been suitably modified and a fresh set of guidelines needs to be issued for electronic submission and processing of refund claims.
- This Circular stipulate the modalities to be followed for all refund application filed in Form GST RFD-1 on common portal w.e.f. 26.06.2019, i.e., in relation to:
- Refund forms
- Deficiency memos
- Scrutiny of applications
- Re-crediting of electronic credit ledger on account of rejection of refund claims
- Application for refund of IGST paid on export of services and supplies made to SEZ
- Disbursal of refunds
- Refund of unutilized input tax credit
- Refund of tax paid on deemed exports guidelines for refund claim of Compensation Cess
- Zero rated supplies
- Refund of transitional credit
- Restrictions under Rule 96(10)
- Calculation of refund amount for claims of refund of accumulated input tax credit on account of inverted duty structure refund of TDS / TCS deposited in excess
- Debit of electronic credit ledger by using Form GST DRC-3
- Refund of IGST paid on exports etc
[Source: Circular No. 125/44/2019- GST dated 18.11.2019]
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