Clarification in respect of certain challenges faced by the registered persons in implementation of provisions of GST laws - GST - States - 94/2020-GST

GOVERNMENT OF ASSAM OFFICE OF THE COMMISSIONER OF TAXES, ASSAM :: KAR BHAWAN DISPUR, GUWAHATI-6 Circular No. CT/GST-15/2017/385 (94/2020-GST), dated November 09, 2020. Subject : Clarification in respect of certain challenges faced by the registered persons in implementation of provisions of GST laws Regarding Circular No. 89/2020-GST, dated April 21, 2020 and Circular No. 90/2020-GST, dated April 21, 2020 have 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 Assam Goods and Services Tax Act, 2017 (hereinafter referred to as the AGST Act ) on account of the measures taken to prevent the spread of novel corona virus (COVID-19). Post issuance of the said clarifications, certain challenges being faced by taxpayers in adhering to the compliance requirements under various other provisions of the Assam GST Act were brought to the notice and 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, in exercise of the powers conferred under section 168 of the Assam GST Act hereby clarifies as under : S l. No. Issue Clarification Issues related to Insolvency and Bankruptcy Code, 2016 1. Notification No. FTX.56/2017/Pt-II/542 dated May 22, 2020, issued under section 148 of the Assam GST Act provided that an IRP/CIRP is required to take a separate registration within 30 days of the issuance of the notification. It has been represented that the IRP/RP are facing difficulty in obtaining registrations during the period of the lockdown and have requested to increase the time for obtaining registration from the present 30 days limit. Vide Notification No. FTX.56/2017/Pt-III/465, dated July 1, 2020, the time-limit required for obtaining registration by the IRP/RP in terms of special procedure prescribed vide Notification No. FTX.56/2017/Pt-II/542, dated May 22, 20201 has been extended. Accordingly, IRP/RP shall now be required to obtain registration with-in thirty days of the appointment of the IRP/RP or by 30th June, 2020, whichever is later. 2. Notification No. FTX.56/2017/Pt-II/542, dated May 22, 2020 specifies that the IRP/RP, in respect of a corporate debtor, has to take a new registration with effect from the date of appointment. Clarification has been sought whether IRP would be required to take a fresh registration even when they are complying with all the provisions of the GST Law under the registration of corporate debtor (earlier GSTIN), i.e., all the GSTR-3Bs have been filed by the corporate debtor/IRP prior to the period of appointment of IRPs and they have not been defaulted in return filing. (i) Notification No. FTX.56/2017/ Pt-II/542, dated May 22, 2020 was issued to devise a special procedure to overcome the requirement of sequential filing of Form GSTR-3B under GST and to align it with the provisions of the IBC Act, 2016. The said notification has been amended vide Notification No. F. FTX.56/2017/Pt-111/465, dated July 1, 2020, so as to specifically provide that corporate debtors who have not defaulted in furnishing the return under GST would not be required to obtain a separate registration with effect from the date of appointment of IRP/RP. (ii) Accordingly, it is clarified that IRP/RP would not be required to take a fresh registration in those cases where statements in Form GSTR-1 under section 37 and returns in Form GSTR-3B under section 39 of the Assam GST Act, for all the tax periods prior to the appointment of IRP/RP, have been furnished under the registration of corporate debtor (earlier GSTIN). 3. Another doubt has been raised that the present notification has used the terms IRP and RP interchangeably, and in cases where an appointed IRP is not ratified and a separate RP is appointed, whether the same new GSTIN shall be transferred from the IRP to RP, or both will need to take fresh registration. (i) In cases where the RP is not the same as IRP, or in cases where a different IRP/RP is appointed midway during the insolvency process, the change in the GST system may be carried out by an amendment in the registration form. Changing the authorized signatory is a non-core amendment and does not require approval of tax officer. However, if the previous authorized signatory does not share the credentials with his successor, then the newly appointed person can get his details added through the Jurisdictional authority as Primary authorized signatory. (ii) The new registration by IRP/RP shall be required only once, and in case of any change in IRP/RP after initial appointment under IBC, it would be deemed to be change of authorized signatory and it would not be considered as a distinct person on every such change after initial appointment. Accordingly, it is clarified that such a change would need only change of authorized signatory which can be done by the authorized signatory of the company who can add IRP/RP as new authorized signatory or failing that it can be added by the concerned jurisdictional officer on request by IRP/RP. Other COVID-19 related representations 4. As per Notification No. 40/2017-(Rate)(FTX.56/2017/Pt-III/28, dated December 1, 2017), a registered supplier is allowed to supply the goods to a registered recipient (merchant exporter) at 0.1 per cent. provided, inter alia, that the merchant exporter exports the goods within a period of ninety days from the date of issue of a tax invoice by the registered supplier. Request has been made to clarify the provision, vis-a-vis., the exemption provided vide Notification No. FTX.56/2017/607, dated September 19, 2020#. (i) Vide Notification No. FTX.56/2017/607, dated. September 19, 2020#, time limit for compliance of any action by any person which falls during the period from March 20, 2020 to June 29, 2020 has been extended up to June 30, 2020, where completion or compliance of such action has not been made within such time. (ii) Notification No. 40/2017-(Rate) (FTX. 56/2017/Pt-III/28, dated December 1, 2017)3, was issued under powers conferred by section 11 of the Assam GST Act, 2017. The exemption provided in Notification No. FTX.56/2017/607, dated September 19, 2020# is applicable for section 11 as well. (iii) Accordingly, it is clarified that the said requirement of exporting the goods by the merchant exporter within 90 days from the date of issue of tax invoice by the registered supplier gets extended to 30th June, 2020, provided the completion of such 90 days period falls within March 20, 2020 to June 29, 2020. 5. Sub-rule (3) of that rule 45 of the Assam GST Rules requires furnishing of Form GST ITC-04 in respect of goods dispatched to a job worker or received from a job worker during a quarter on or before the 25th day of the month succeeding that quarter. Accordingly, the due date of filing of Form GST ITC-04 for the quarter ending March, 2020 falls on April 25, 2020. Clarification has been sought as to whether the extension of time limit as provided in terms of Notification No. FTX.56/2017/607, dated September 19, 20204 also covers furnishing of Form GST ITC-04 for quarter ending March, 2020. Time-limit for compliance of any action by any person which falls during the period from March 20, 2020 to June 29, 2020 has been extended up to June 30, 2020 where completion or compliance of such action has not been made within such time. Accordingly, it is clarified that the due date of furnishing of Form GST ITC-04 for the quarter ending March, 2020 stands extended up to June 30, 2020. 3. This Circular is clarificatory in nature and not meant for any interpretation of provisions of the Act and rules. 4. Difficulties, if any, in implementation of the above instructions may be brought to the notice of the Commissioner at an early date. 5. This Circular shall be deemed to have been issued on 6th May, 2020. Commissioner of State Tax