Clarification in respect of certain challenges faced by the registered persons in implementation of provisions of GST Laws - GST - States - Circular No. 13/2020 (State)

Government of Andhra Pradesh Commercial Taxes Department Proceedings of the Chief Commissioner of State Tax, Andhra Pradesh Circular No. 13/2020(State) in reference to 137/07/2020(Central), Dt. 19/10/2020 Sub:- Clarification in respect of certain challenges faced by the registered persons in implementation of provisions of GST Laws-reg. Ref: - From GOI, MOF, DOR,CBIC, Circular No. 137/07/2020-GST, Dated 13.04.2020 Circular No. 12/2020(State) in reference to 136/06/2020(Central), Dated 08/10/2020 had been issued to clarify doubts regarding relief measures taken by the Government for facilitating taxpayers in meeting the compliance requirements under various provisions of the Andhra Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as the APGST Act ) on account of the measures taken to prevent the spread of Novel Corona Virus (COVID-19). It has been brought to the notice of the Chief Commissioner that certain challenges are being faced by taxpayers in adhering to the compliance requirements under various other provisions of the APGST Act which also need to be clarified. 2. The issues raised have been examined and in order to ensure uniformity in the implementation of the provisions of the law across the field formations, the Chief Commissioner, in exercise of his powers conferred under section 168(1) of the APGST Act hereby clarifies as under: S. No. Issue Clarification 1. An advance is received by a supplier for a Service contract which subsequently got cancelled. The supplier has issued the invoice before supply of service and paid the GST thereon. Whether he can claim refund of tax paid or is he required to adjust his tax liability in his returns ? In case GST is paid by the supplier on advances received for a future event which got cancelled subsequently and for which invoice is issued before supply of service, the supplier is required to issue a credit note in terms of section 34 of the APGST Act. He shall declare the details of such credit notes in the return for the month during which such credit note has been issued. The tax liability shall be adjusted in the return subject to conditions of section 34 of the APGST Act. There is no need to file a separate refund claim. However, in cases where there is no output liability against which a credit note can be adjusted, registered persons may proceed to file a claim under Excess payment of tax, if any through FORM GST RFD-01 . 2. An advance is received by a supplier for a Service contract which got cancelled subsequently. The supplier has issued receipt voucher and paid the GST on such advance received. Whether he can claim refund of tax paid on advance or he is required to adjust his tax liability in his returns? In case GST is paid by the supplier on advances received for an event which got cancelled subsequently and for which no invoice has been issued in terms of section 31 (2) of the APGST Act, he is required to issue a refund voucher in terms of section 31 (3) (e) of the APGST Act read with rule 51 of the APGST Rules. The taxpayer can apply for refund of GST paid on such advances by filing FORM GST RFD-01 under the category Refund of excess payment of tax . 3. Goods supplied by a supplier under cover of a tax invoice are returned by the recipient. Whether he can claim refund of tax paid or is he required to adjust his tax liability in his returns ? In such a case where the goods supplied by a supplier are returned by the recipient and where tax invoice had been issued, the supplier is required to issue a credit note in terms of section 34 of the APGST Act. He shall declare the details of such credit notes in the return for the month during which such credit note has been issued. The tax liability shall be adjusted in the return subject to conditions of section 34 of the APGST Act. There is no need to file a separate refund claim in such a case. However, in cases where there is no output liability against which a credit note can be adjusted, registered persons may proceed to file a claim under Excess payment of tax, if any through FORM GST RFD-01 . 4. Letter of Undertaking (LUT) furnished for the purposes of zero- rated supplies as per provisions of section 16 of the Integrated Goods and Services Tax Act, 2017 read with rule 96A of the APGST Rules has expired on 31.03.2020. Whether a registered person can still make a zero-rated supply on such LUT and claim refund accordingly or does he have to make such supplies on payment of IGST and claim refund of such IGST ? Order in CCT s Ref in CCW/GST/74/2015-1,dated 04.10.2017, requires LUT to be furnished for a financial year. However, in terms of notification issued in the G.O.Ms.No.264, Revenue (Commercial Taxes-II) Department, Dated 11.9.2020, where the requirement under the GST Law for furnishing of any report, document, return, statement or such other record falls during between the period from 20.03.2020 to 29.06.2020, has been extended till 30.06.2020. Therefore, in terms of notification issued in the G.O.Ms.No. 264, Revenue (Commercial Taxes-II) Department, Dated 11.9.2020, time limit for filing of LUT for the year 2020-21 shall stand extended to 30.06.2020 and the taxpayer can continue to make the supply without payment of tax under LUT provided that the FORM GST RFD-11 for 2020-21 is furnished on or before 30.06.2020. Taxpayers may quote the reference no of the LUT for the year 2019-20 in the relevant documents. 5. While making the payment to recipient, amount equivalent to one per cent was deducted as per the provisions of section 51 of Andhra Pradesh Goods and Services Tax Act, 2017 i.e.Tax Deducted at Source (TDS). Whether the date of deposit of such payment has also been extended vide notification issued in the G.O.Ms.No.264,Revenue (Commercial Taxes-II) Department, Dated 11.9.2020? As per notification issued in the G.O.Ms.No.264, Revenue (Commercial Taxes-II) Department, Dated 11.9.2020, where the timeline for any compliance required as per sub-section (3) of section 39 and section 51 of the Andhra Pradesh Goods and Services Tax Act, 2017 falls during the period from 20.03.2020 to 29.06.2020, the same has been extended till 30.06.2020. Accordingly, the due date for furnishing of return in FORM GSTR-7 along with deposit of tax deducted for the said period has also been extended till 30.06.2020 and no interest under section 50 shall be leviable if tax deducted is deposited by 30.06.2020. 6. As per section 54 (1), a person is required to make an application before expiry of two years from the relevant date. If in a particular case, date for making an application for refund expires on 31.03.2020, can such person make an application for refund before 29.07.2020? As per notification issued in the G.O.Ms.No.264, Revenue (Commercial Taxes-II) Department, Dated 11.9.2020, where the timeline for any compliance required as per sub-section (1) of section 54 of the Andhra Pradesh Goods and Services Tax Act, 2017 falls during the period from 20.03.2020 to 29.06.2020, the same has been extended till 30.06.2020. Accordingly, the due date for filing an application for refund falling during the said period has also been extended till 30.06.2020. 4. The filed officers are requested to give wide publicity to the contents of this circular. 5. Difficulty, if any, in the implementation of the above instructions may please be brought to the notice of the Chief Commissioner. Peeyush Kumar Commissioner