Author: Reglic

Latest GST News

1. 2021 GST Updates

29th Dec 2021

(1) The 46th GST Council meeting was held on 31st December 2021 in New Delhi. Union FM Nirmala Sitharaman led meeting has decided to defer the GST rate hike to 12% for textiles.

(2) CGST Rule 36(4) is amended to remove 5% additional ITC over and above ITC appearing in GSTR-2B. From 1st January 2022, businesses can avail ITC only if it is reported by supplier in GSTR-1/ IFF and it appears in their GSTR-2B.

(3) The due date to file GSTR-9 & self-certified GSTR-9C for the FY 2020-21 has been extended up to 28th February 2022.

(4) Further amendments are carried out to seizure and detention rules, penalties related to the same, and certain forms such as DRC-10, DRC-22, DRC-23 and APL-01 stands amended with the addition of new form DRC-22A as per Central Tax notification no. 40/2021.

21st Dec 2021

Following are the changes with effect from 1st January 2022-

(1) ITC claims will be allowed only if it appears in GSTR-2B. So, the taxpayers can no longer claim 5% provisional ITC under the CGST Rule 36(4) and ensure every ITC value claimed was reflected in GSTR-2B.

(2) The officer can issue notice under Section 74 to multiple persons for tax short paid or excess ITC claims by fraud. Now, it is amended that the officer can confiscate and seize goods or vehicles even after concluding proceedings against all persons liable to pay specific or general penalties.

(3) The taxpayers cannot file GSTR-1 if the previous period’s GSTR-3B was not filed.

(4) The GST officers can initiate recovery proceedings without any show-cause notice against taxpayers who under-report sales in GSTR-3B compared to GSTR-1, under Section 75(12).

(5) All the e-commerce aggregators into food delivery services or cloud kitchens under Section 9(5) will be liable to pay tax on services provided through them. However, restaurants with accommodation with a tariff per unit of more than Rs.7,500 per day are kept out of the scope.

(6)The scope of passenger transport motor vehicles is expanded to include service rendered through omnibus and any other motor vehicle, but not just radio taxi or cab under Section 9(5).

(7)Following facilities will henceforth require taxpayers’ aadhaar authentication- – To apply for a refund under the CGST Rules 89 (Excess tax, interest, penalty, fees paid) and 96 (IGST paid on goods or services exported out of India) in RFD-01. – To apply for revocation of cancelled GST registration under the CGST Rule 23 in REG-21.

24th Sept 2021

With effect from 1st October 2021, the frequency of filing the ITC-04 form has been revised through the Central Tax notification number 35/2021 dated 24th September 2021, as follows-

(1) Those with AATO more than Rs.5 crore – Half-yearly from April-September- due on 25th October and October-March due on 25th April.

(2) Those with AATO up to Rs.5 crore – Yearly from FY 2021-22 due on 25th April.

1st September 2021

45th GST Council meeting will be held on 17th September 2021. Tax concessions on COVID-19 essentials may be extended, Matter on GST compensation to states may be taken up, correction of inverted tax structure, etc are on the agenda.

29th August 2021

1. Time limit to avail GST Amnesty Scheme extended up to 30th November 2021. It continues to apply for GSTR-3B from July 2017 up to April 2021 via CGST notification number 33/2021 dated 29th August 2021.
2. Taxpayers can get extended time up to 30th September 2021 to revoke cancelled GST registration if the last date for the same falls between 1st March 2020 and 31st August 2021. It applies if the GST registration is cancelled under Section 29(2) clause (b) or (c) of the CGST Act via CGST notification number 34/2021 dated 29th August 2021.
3. Company taxpayers can continue filing GSTR-1 and GSTR-3B using EVC or DSC up to 31st October 2021 via the CGST notification number 32/2021 dated 29th August 2021.

26th August 2021

From 1st September 2021, taxpayers will not be able to file GSTR-1 or use the IFF for August 2021 on the GST portal if they have pending GSTR-3B filings. It applies if GSTR-3B is pending for the past two months till July 2021 (monthly filer) or for the last quarter ending 30th June 2021 (quarterly filer), as per CGST Rule 59(6).

30th July 2021

1. A GST registered person whose aggregate turnover in the financial year 2020-21 is up to Rs.2 crore has been given exemption from filing Form GSTR-9 (annual return) for the FY 20202-21.
2. The section 35(5) is omitted and section 44 is amended, so that the taxpayer can submit the reconciliation statement on a self-certification basis instead of being furnished after audit and certification by CA/CMA.
3. The taxpayers having aggregate turnover up to Rs.5 crore are not required to file self-certified GSTR-9C . Further, changes are notified to the format of Form GSTR-9C from FY 2020-21 onwards.

30th June 2021

Any late fee, otherwise chargeable for non-compliance with the dynamic QR code requirement from 1st December 2020 to 30th September 2021, is waived.

01st June 2021

The summary of CBIC notifications is as follows:

1. The amendment of Section 50 through the Finance Act 2021 has been notified to come into effect from 1st July 2017, retrospectively. Now, interest shall be computed on the net tax liability after reducing eligible ITC from the total liability. It is to be noted that the interest shall be debited from the electronic cash ledger.
2. Interest and late fee relief have been provided to the taxpayers who could not file GST returns by the due dates for March, April and May 2021. Check out the relaxation here.
3. The due date to file GSTR-1 for May 2021 has been extended from 11th June 2021 to 26th June 2021.
4. The due date to file Annual return by composition taxpayers in GSTR-4 for FY 2020-21 has been extended up to 31st July 2021.
5. The due date to file ITC-04 for Jan-March’21 has been extended up to 30th June 2021.
6. CGST Rule 36(4) to cumulatively apply for April, May and June 2021 while filing GSTR-3B of June 2021.
7. The time limit to furnish B2B supplies on the IFF (optional facility for the taxpayers opting into the QRMP scheme) for May 2021 has been extended from 13th June to 28th June 2021.
8. The time limit for completing any GST compliance, except a few notified, falls between 15th April 2021 and 29th June 2021 has been extended to 30th June 2021.
9. A new GST amnesty scheme has been introduced to rationalise late fees for delay in filing of GSTR-3B return. It provides a conditional waiver of late fees for delay in filing GSTR-3B return from July 2017 to April 2021. Click here to know more.
10. The reduced late fee has been notified for GSTR-1 and GSTR-3B returns from June 2021 onwards. Click here to know more.
11. The maximum late fee for GSTR-4 that can be charged will be restricted to Rs.500 per return for nil filing and Rs. 2,000 for other than nil filing.
12. The late fee chargeable for GSTR-7, i.e. TDS filing under GST, shall be a maximum of Rs. 2,000 while late fee per day charged is reduced from Rs.200 to Rs.50 per day of delay per return.
13. CGST notification no. 13/2020 amended for fresh exclusions from the need to issue e-invoices. Now, the e-invoicing system shall not apply to a government department and local authority.

28th May 2021

43rd GST Council meeting took place on 28th May 2021 (Friday) at 11 A.M. via video conferencing and was chaired by Union FM Nirmala Sitharaman. The Council approved the GST amnesty scheme to be re-introduced, the late fee was rationalised for all taxpayers, especially for small taxpayers and IGST is exempted on import of COVID treating equipment and relief materials up to 31st August 2021.

As on 21st May 2021

43rd GST Council meeting will take place on 28th May 2021 (Friday) at 11 A.M. via video conferencing and will be chaired by Union FM Nirmala Sitharaman.

Budget 2021: Updates as on 1st February 2021

1. Section 16 amended to allow taxpayers’ claim of input tax credit based on GSTR-2A and 2B. Henceforth, ITC on invoices and debit notes may be availed only when the details of such invoice or debit note have been furnished by the supplier in the statement of outward supplies, and such details have been communicated to the recipient of such invoice or debit note.
2. Section 50 of the CGST Act is being amended to provide for a retrospective charge of interest on net cash liability, with effect from 1st July 2017.
3. With respect to orders received on detention and seizure of goods and conveyance, 25% of penalty needs to be paid for making an application for appeals under section 107 of the CGST Act. Date of applicability is yet to be notified.
4. GST audit requirement by specific professionals such as CAs and CMAs has been removed from the GST law. Section 35 and 44 have been amended in this regard. As per the amendment, only GSTR-9 annual returns on a self-certification basis need to be filed on the GST portal by taxpayers, completely removing the requirement for GSTR-9C, i.e. the reconciliation statement. However, the financial year and date of applicability are yet to be clarified by the government.
5. section 7 of the CGST Act was amended to include a new clause under the definition of supply. Activities or transactions involving the supply of goods or services by any person, other than an individual, to its members or constituents or vice-versa, for cash, deferred payment or other valuable consideration falls under supply and will be liable to tax. Earlier, this supply would have been considered as only supply of goods under schedule II. So, the scope is expanded now for levy.
6. Seizure and confiscation of goods and conveyances in transit are now made a separate proceeding from the recovery of tax from Section 74.
7. Self-assessed tax referred to under section 75 of the CGST Act shall also cover the outward supplies/sales as reported in the GSTR-1 under Section 37 of the CGST Act, but which has been missed out while reporting in the GSTR-3B under Section 39.
8. The provisional attachment shall remain valid for the entire period starting from the initiation of any proceeding till the expiry of a period of one year from the date of order made thereunder.
9. Section 129 is delinked from Section 130. Accordingly, proceedings relating to detention, seizure and release of goods and conveyances in transit will be separate from the levy of penalty for the confiscation of goods and conveyance.
10. The Jurisdictional Commissioner can now call for information from any person relating to any matter dealt with in connection with the Act under Section 151, together with section 168. Further, section 152 is amended to provide an opportunity of being heard before using information obtained under Sections 150 or 151 of the Act
11. The IGST Act was also amended in Section 16, that defines a zero-rated supply. Three amendments were made – (1) To state that supply to SEZ units /developers will be zero-rated only if it is authorised operations. (2) Only notified persons or supplies of goods/services can avail the status of zero-rated when IGST is paid. (3) Foreign exchange remittance will be linked in case of export of goods with the refund.

2. 2020 GST Updates

Update as on 30th December 2020

The due date of GSTR-9 & GSTR-9C for FY 2019-20 has been extended up to 28th February 2021.

Update as on 22nd December 2020

(1) GST registration can be cancelled or suspended under CGST Rule 21A at the discretion of the tax officer in the following cases:

1. Major discrepancies between the GSTR-3B vis-a-vis the GSTR-1 and GSTR-2B
2. Utilisation of ITC from electronic credit ledger to discharge more than 99% of the tax liability for specified taxpayers – with the total taxable value of supplies exceeding Rs.50 lakh in the month, with some exceptions.
3. A taxpayer has not filed GSTR-1 due to GSTR-3B not being filed for more than two consecutive months (one quarter for those who opt into the QRMP scheme).

(2) Following are the changes in Rule 36(4) from 1st January 2021:

1. 1. The ITC shall be available as per the invoices uploaded by respective suppliers either in their GSTR-1 or by using the Invoice Furnishing Facility (IFF).
   2. The recipients can claim provisional input tax credit in GSTR-3B to the extent of 5% instead of earlier 10% of the total ITC available in GSTR-2B for the month.
   3. Certain taxpayers cannot make payment from their electronic credit ledger in excess of 99% of the total tax liability for the tax period.
   4. It applies to such taxpayers who have monthly value of taxable supplies more than Rs.50 lakh (not being exempt or zero-rated supplies). The following taxpayers are exempted from this restriction:
      • A registered taxpayer where more than Rs.1 lakh is paid as income tax in the last two FY in belated IT returns of himself or his proprietor or any two partners or managing director, trustee or board, etc.
      • A registered taxpayer who has received more than Rs.1 lakh as refund of unutilised input tax credit under GST, on account of zero-rated supplies without payment of tax or inverted tax structure.
      • A registered taxpayer paid more than 1% of his GST liability using only his electronic cash ledger, for all the tax periods in the current FY so far.
      • Government departments, PSU, local authorities, statutory bodies, etc.

(3) The following are the changes notified for e-way bills:

1. 1. 1. From 1st January 2021, the validity of e-way bills for cases other than over dimensional cargo is now calculated based on distance of 200 km and not 100 km.
      2. The non-furnishing of GSTR-3B for two consecutive tax periods or suspension of GSTIN under CGST Rule 21A will lead to blocking of e-way bills under Rule 138E.

Update as on 29th November 2020

The CBIC issued a notification seeking to waive the penalty imposed on non-compliance of dynamic QR code provisions for B2C invoices between 1st December 2020 and 31st March 2021, provided the eligible registered person complies with these provisions from 1st April 2021.

Update as on 10th November 2020

The taxpayers having an aggregate turnover exceeding Rs.100 crore should implement e-invoicing from 1st January 2021.

From 1st January 2021, all-new Quarterly Return Monthly Payment (QRMP) scheme for taxpayers with AATO of up to Rs. 5 crore in the financial year to file quarterly GSTR-3B has been notified. To allow a choice of uploading the sales invoices on monthly basis or more regularly for those filing quarterly GSTR-1, Invoice Furnishing Facility (IFF) will be introduced.

The due date for GSTR-1 for the periods October 2020 to March 2021 is as follows:

Quarterly return filers:

(1) October 2020 to December 2020: 13th January 2020

(2) January 2020 to March 2021: 13th April 2021

Monthly return filers: 11th of next month

The due date for paying GST and filing GSTR-3B has been notified for the months October 2020 till March 2021: 20th(AATO >Rs.5 crore) or 22nd or 24th of next month (For the rest, depending upon the State of principle place of business).

Update as 28th October 2020

The due date to file GSTR-9 & GSTR-9C for the FY 2018-19 has been extended up to 31st December 2020.

Update as on 15th October 2020WIN 87_