Central Board of Indirect Taxes & Customs (CBIC) had recently issued series of notifications on dated 23.04.2019, specifying changes in the CGST Rules 2017 and relaxing the GST compliance burden on small businesses (composition dealers). Key highlights of the notifications are:
- Rule 138E of CGST Rules 2017, which, restricts generation of E-Way Bill for taxpayers who defaults filing of return for two consecutive tax periods, has been notified to be effective from 21.06.2019.
- New compliance procedure for composition dealers and taxpayers availing the benefit of Notification No. 02/2019-CT (Rate) dt. 07.03.2019.
- Few more conditions included for application for revocation of cancellation of registration by the registered person.
Notification wise detailed summary has been tabulated below for easy reference:
| 1.0 | Rule 138E of CGST Rules 2017 notified to be effective from 21.06.2019 – Notification No. 22/2019-CT dt. 23.04.2019 |
| 1.1 | Applicable provision of Rule 138E of CGST Rules 2017: No person (including a consignor, consignee, transporter, an e-commerce operator or a courier agency) shall be allowed to generate E-Way Bill in Form GST EWB-01 in respect of a registered supplier or a registered recipient who:
(i) has not furnished the returns for two consecutive tax periods – Applicable to persons registered under composition scheme u/s 10 of CGST Act 2017. (ii) has not furnished the returns for two consecutive months – Applicable to registered persons other than the persons registered under composition u/s 10 of CGST Act 2017. |
| 1.2 | Authority with the Jurisdictional Commissioner in case of the above mentioned restriction in generating E-Way Bill:
(i) The Jurisdictional Commissioner may allow generation of E-Way Bill in such cases, only if a sufficient cause and reasons are provided in writing by the registered person. Also certain conditions and restrictions will have to be complied with by the registered person as may be directed by the Jurisdictional Commissioner. (ii) The Jurisdictional Commissioner shall provide such registered person a reasonable opportunity of being heard before an order of rejection (if applicable) is passed. |
| 2.0 | Procedure for quarterly tax payment and annual filing of return for taxpayers (mixed suppliers) availing the benefit of Notification No. 02/2019-CT (Rate) dt. 07.03.2019 notified – Notification No. 21/2019-CT dt. 23.04.2019 |
| 2.1 | Furnishing quarterly statement in Form GST CMP-08: The said persons shall furnish a statement in Form GST CMP-08 with the details of self-assessed tax payment by 18th of the month succeeding the quarter. |
| 2.2 | Important features of Form GST CMP-08:
(a) “Nil” Statement shall be filed if there is no tax liability due during the quarter. (b) Adjustment on account of advances, credit/debit notes or rectifications shall be reported against the liability. (c) Negative value may be reported as such if such value comes after adjustment. (d) If the total tax payable becomes negative, then the same shall be carried forward to the next tax period for utilizing the same in that tax period. (e) Interest shall be leviable if payment is made after the due date. |
| 2.3 | Furnishing return in Form GSTR-4 annually: The said persons shall file a return in Form GSTR-4 for every financial year by 30th April following the end of such financial year. |
| 2.4 | Deemed compliance u/s 37 and 39 of CGST Act 2017: The said persons shall be deemed to have complied with the provision of Sec. 37 & Sec. 39 of CGST Act 2017 if they have furnished statement in Form GST CMP-08 and filed a return in Form GSTR-4. |
| 3.0 | Amendment to the CGST Rules 2017 – Notification No. 20/2019-CT dt. 23.04.2019 |
| 3.1 | Amendment to Rule 23 of CGST Rules 2017 – Revocation of cancellation of registration.
Key Takeaways – Few more conditions included for application for revocation of cancellation of registration by the registered person. |
| Condition 1 (existing): For the scenario: If the registration is cancelled by the proper officer on account of failure by the registered person to furnish return.Compliance to be done: The registered person shall furnish such pending returns and discharge the tax liabilities with applicable interest, late fee and penalty for the said returns. |
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| Condition 2 (new):
For the period – The date of the order of cancellation of registration till the date of the order of revocation of cancellation of registration: Compliance to be done: The registered person shall be furnish all returns due within a period of 30 days from the date of order of revocation of cancellation of registration. |
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| Condition 3 (new):
For the scenario – Where the registration has been cancelled with retrospective effect by the proper officer; For the period – The effective date of cancellation of registration till the date of order of revocation of cancellation of registration: ompliance to be done: The registered person shall furnish all returns within a period of 30 days from the date of order of revocation of cancellation of registration. |
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| 3.2 | Amendment to Rule 62 of CGST Rules 2017 – Form and manner of submission of quarterly return by the composition supplier. Key Takeaways – Rule 62 extended to the mixed suppliers as well | Introduction of Form GST CMP-08 (Statement for payment of self-assessed tax) | Change in the frequency of filing return in Form GSTR-4. |
| 3.2.1 | Change in the heading for the Rule 62: New heading for Rule 62 shall be “Form and manner of submission of statement and return” |
| 3.2.2 | Rule 62 extended to the mixed suppliers: Facility of furnishing quarterly statement and return has been extended to the Supplier of services (or mixed suppliers) as well, who has / will be availing the benefit of notification no. 02/2019-CT (Rate) dt. 07.03.2019. |
| 3.2.3 | Form GST CMP-08 introduced: Taxpayers registered under composition scheme u/10 of CGST Act 2017 and the taxpayers (mixed suppliers) availing the benefit of notification no. 02/2019-CT (Rate) dt. 07.03.2019 shall furnish a statement in Form GST CMP-08 with the details of self-assessed tax payment by 18th of the month succeeding the quarter. |
| 3.2.4 | Form GSTR-4 to be filed annually instead of quarterly: Taxpayers registered under composition scheme u/10 of CGST Act 2017 and the taxpayers (mixed suppliers) availing the benefit of notification no. 02/2019-CT (Rate) dt. 07.03.2019 shall file a return in Form GSTR-4 for every financial year by 30th April following the end of such financial year. |
| 3.2.5 | Compliance’s on account of withdrawn from the Composition Scheme u/s 10 of CGST Act 2017:
(i) The taxpayer shall furnish a statement in Form GST CMP-08 for the period for which he has paid tax under the composition scheme by 18th day of the month succeeding the quarter in which the date of withdrawal falls. (ii) The taxpayer shall furnish a return in Form GSTR-4 for the period for which he has paid tax under the composition scheme by 30th day of April following the end of the financial year during which such withdrawal falls. |
| 3.2.6 | Compliance’s on account of cessation to avail the benefit of notification no. 02/2019-CT (Rate) dt. 07.03.2019 by the mixed suppliers:
(i) The taxpayer shall furnish a statement in Form GST CMP-08 for the period for which he has paid tax under the notification no. 02/2019-CT (Rate) dt. 07.03.2019 by 18th day of the month succeeding the quarter in which the date of cessation falls. (ii) The taxpayer shall furnish a return in Form GSTR-4 for the period for which he has paid tax under the notification no. 02/2019-CT (Rate) dt. 07.03.2019 by 30th day of April following the end of the financial year during which such cessation happens. |
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