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TMI BlogAnalysis of Various Non- Tariff Notifications issued on 9th October, 2019X X X X Extracts X X X X X X X X Extracts X X X X ..... Analysis of Various Non- Tariff Notifications issued on 9th October, 2019 - By: - CA.Chitresh Gupta - Goods and Services Tax - GST - Dated:- 14-10-2019 - - CBIC has issued various Non- Tariff Notifications which have great implications on the organization as a whole. Kindly find our analysis of the various Notifications; Summary of Notifications Sr. No. Notification No. Date of Notification Description 1 44/2019-Central Tax 09/10/2019 Prescribe the due date for furnishing of return in FORM GSTR-3B for the months of October, 2019 to March, 2020 2 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5/2019-Central Tax 09/10/2019 The due date for furnishing FORM GSTR-1 for registered persons having aggregate turnover of up to 1.5 crore rupees for the quarters from October, 2019 to March, 2020 3 46/2019-Central Tax 09/10/2019 Due date for furnishing of return in FORM GSTR-1 for registered persons having aggregate turnover more than 1.5 crore rupees for the months of October, 2019 to March, 2020 4 47/2019-Central Tax 09/10/2019 Seeks to make filing of annual return under section 44 (1) of CGST Act for F.Y. 2017-18 and 2018-19 optional for small taxpayers whose ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gregate turnover is less than ₹ 2 crores and who have not filed the said return before the due date. 5 48/2019-Central Tax 09/10/2019 Amend notification No. 41/2019 Central Tax, dated the 31st August, 2019 6 49/2019-Central Tax 09/10/2019 Changes in the CGST Rules, 2017 Extension of Applicability of GSTR-3B till March 2020 [ Notification no 44/2019- Central Tax Dated 9th October, 2019 ] CBIC has extended the applicability of GSTR-3B for all assesees till March 2020. Post which New Return scheme is proposed. Return Due Dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e GSTR-3B All Assessees to whom it is applicable 20th of the Succeeding Month. Payment of Tax , Interest, Penalty, Fees or any other amount payable under GST which requires debiting of Electronic Cash Ledger 20th of the Succeeding Month. Due Dates for GSTR-1 in case of Monthly and Quarterly Filing till March 2020 [ Notification no 45/2019 , 46/2019- Central Tax Dated 9th October, 2019 ] Type of Assesses Months/ Quarters Due Date Registered persons having Aggregate turnover of up to INR 1.5 Cr in the preceding financial year or the current financia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l year and have opted for Quarterly filing of Return Oct 2019 - Dec 2019 31 st Jan 2020 January 2020 - March 2020 30 th April 2020 Registered persons having Aggregate turnover of more than INR 1.5 cr in the preceding financial year or the current financial year, Each of Month from October 2019 to March 2020 11 th of the succeeding month. It may also be noted that time limit for furnishing return u/s 38(2) i.e GSTR-2 has also been extended till further Notification but the same has not been done for return u/s 39 i.e GSTR-3 . Annual Return for Registered persons whose aggregate turn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... over in a financial year does not exceed two crore rupees [ Notification no 47/2019- Central Tax Dated 9th October, 2019 ] As per the last GST Council Meeting recommendations, filing of GSTR-9 was made optional in case of Registered person whose aggregate turnover in a financial year does not exceed two crore rupees. However, there are various sections of GST Act which get triggered from the due date of filing of Annual Return. For Instance, time limit for Availment of ITC, Issue of Credit Notes, Period of Retention of Accounts, Issue of Order u/s 73 74 etc . Thus, CBIC issued Notification no 47/2019- Central Tax Dated 9th October, 2019 whereby it was deemed that Annual return for aforementioned persons shall be deemed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be furnished on the due date if it has not been furnished before the due date. Extension of Due Dates of Filing GSTR-1 / 3B / 7 for J K [ Notification no 48/2019-Central Tax Dated 9 th October, 2019 ] The registered person whose principal place of business is in the state of Jammu Kashmir, having aggregate turnover more then ₹ 1.5 crore in preceding financial year or in current financial year, following return s due date under GST have been extended. Sr. No. Form No. For the Period Due Date 1. GSTR-1 July August 2019 11 th October 2019 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . GSTR-3B July August 2019 20 th October 2019 3. GSTR-7 July August 2019 10 th October 2019 Amendment in GST Rules [ Notification No. 49/2019-Central Tax Dated 9th October, 2019 ] Capping of Input Tax Credit upto 20% of Eligible Credit In line with GST Council s decision of 37th Council meeting on capping input tax credit, Sub Rule 4 to Rule 36 of the CGST Rules, 2017 has been inserted which makes it mandatory to review Input Tax Credit as appearing in GSTR-2A of the taxpayer. It mandates that the taxpayer shall not avail ITC in excess of 20% of the eligible credit availab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le in GSTR-2A over and above the eligible credit. For achieving this, the taxpayer has to conduct monthly reconciliation of input with GSTR-2A and then avail the input accordingly (maximum capped to 120% of eligible credit available) in GSTR-3B . Modus Operandi of above: Suppose a taxpayer is filing GSTR-3B regularly where outward supplies and input tax credit is claimed and taxes are paid on summary basis. The taxpayer has invoices and debit notes relating to inputs/ input services/ capital goods amounting to ₹ 500,000/-. However, eligible input tax credit appearing in GSTR-2A is ₹ 400,000/-. Prior to applicability of this notification, the taxpayer could have claimed the entire ₹ 500,000 based on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his own records. However, now this provisional ITC claim cannot exceed ₹ 480,000. [₹ 400,000 + 20% of eligible credit of ₹ 400,000] The above amendment has led to opening of various issues like; How to avail ITC of vendors who are in Quarterly Scheme? Do we need to wait for three months before actual availment of ITC? It will mandate monthly reconciliation of GSTR-2A which itself is quite a task. Whether ITC would be available for entries where the supplier has uploaded the data or submitted the return but not filed the same? GSTR-3B needs to be suitably amended to show availment of missing credit claimed (i.e. 20%) separately. It is not clear upto when this 20% credit claimed would continue and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after which it would be added to the output tax liability. In the proposed return process, it was T+2 post which credit was required to added to output tax liability. However no such period is provided in the aforesaid notification. All these are important questions as excess availment of ITC will lead to penal interest @ 24% p.a. This clause requires more robust infrastructure on the part of the GSTN. Industry would require more breather time to implement the above clause. It is recommended that the Government may bring the circular in this respect to clarify the doubts asap. GSTR-3B to be considered as GSTR-3 : Retrospective Amendment from 1st July, 2017 There has been a long standing debate that GSTR-3B is a sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tement and not a return in lieu of GSTR-3 . In fact, there has been a judgment of Gujarat High Court [AAP CO., CHARTERED ACCOUNTS THROU AUTHORISED PARTNER VERSUS UNION OF INDIA] confirming the above view. However, the Government has amended Rule 61(4) of CGST Rules retrospectively from 1st July, 2017 and stated that the cases where the due date of GSTR-1 or GSTR-2 has been extended, Monthly return u/s 39(1) shall be filed in GSTR-3B. This will pose an issue for assessee who have claimed credit of FY 2017-18 after due date of filing return for the month of March 2019 [ Removal of Difficulty Order No. 02/2018 -Central Tax dated 31-12-2018 ]. Clarification in case of Suspension of Registration An Explanation h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been inserted to Rule 21A(3) whereby it is stated that registered person, whose registration has been suspended under sub-rule (1) or sub-rule (2), shall not make any taxable supply during the period of suspension and shall not be required to furnish any return under section 39. It is clarified that for the purposes of this sub-rule, the expression shall not make any taxable supply shall mean that the registered person shall not issue a tax invoice and, accordingly, not charge tax on supplies made by him during the period of suspension Further a new sub-rule 21A(5) has been added where registered person has to issue revised invoice u/s 31(3)(a) and issue First Return u/s 40 after the revocation of suspension for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entire period. Notice and order for demand of amounts payable under the Act. There has been amendment in Rule 142 whereby the proper officer shall, before service of SCN notice u/s 73 74 , shall communicate the details of any tax, interest and penalty as ascertained by the said officer, in Part A of FORM GST DRC-01A . Where the assessee has made partial payment of the amount communicated to him or desires to file any submissions against the proposed liability, he may make such submission in Part B of FORM GST DRC-01A . Other Changes (1) Rule 83A has been amended which requires GSTP (Goods Services Tax Practitioner) who have earlier enrolled as Tax practioner in the earlier law to pass the exam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... within 30 months from the appointed date . (2) Rule 91 has been amended w.e.f. 24 th Sep 2019, whereby refunds will be disbursed basis Consolidated Payment advice. Thus single authority will be empowered to ensure disbursal of complete refund amount. (3) Rule 97 of Consumer Welfare Fund has been amended where it is required that the Committee shall make available to the Board 50 per cent. of the amount credited to the Fund each year, for publicity or consumer awareness on Goods and Services Tax, provided the availability of funds for consumer welfare activities of the Department of Consumer Affairs is not less than twenty-five crore rupees per annum. (4) Rule 117(1A) of Transitional Provisions has been amended whereby C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner on the recommendation of GST Council may extend the date of Filing TRAN-1 not beyond 31 st December, 2019 [Earlier it was 31 st March, 2019] in respect of registered persons who could not submit the said declaration by the due date on account of technical difficulties on the common portal and in respect of whom the Council has made a recommendation for such extension. Correspondingly the date of TRAN-2 in above cases has been extended to 31 st January, 2020. - Reply By Ganeshan Kalyani as = Sir, such a detailed write-up in lucid language is really helpful for the readers to understand easily. Otherwise the law is not drafted in simple language. Today, Mrs. Nirmala Sitharaman has said not to criticize the government fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the problem faced by the tax payer in view of GST. Instead the professional should partner in making GST simple. In view of this your effort in writing this article and sharing with the readers is a part of making GST simpler by educating the readers. Thanks for your efforts. Dated: 14-10-2019 - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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