Amendment in CGST Rules & Due dates of GSTR 1 / GSTR 3B

CBIC issues Notifications relating to filing of returns under GST

Central Board of Indirect Taxes and Customs has issued Notifications 44–48/2019 Central Tax dated 9 October 2019 relating to filing of returns under Goods and Services Tax (GST).

The key changes are as follows:

Notification no. 44/2019-Central Tax dated 09 October 2019

• CBIC vide said notification seeks to prescribe the due date for furnishing of return in FORM GSTR-3B for the months of October, 2019 to March, 2020.
• Accordingly, the registered persons are required to furnish Form GSTR-3B for the months, October 2019 till March 2020 by 20th of the succeeding month.

Notification no. 45/2019-Central Tax dated 09 October 2019

• CBIC vide said notification seeks to prescribe 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.
• The persons, whose aggregate turnover is up to INR1.5 crore, shall furnish details of outward supplies in Form GSTR-1 for the quarter October to December 2019 and January to March 2020 by 31 January 2020 and 30 April 2020 respectively.
• GSTR 1 due dates have been notified for below tax periods;

Notification no. 46/2019-Central Tax dated 09 October 2019

• CBIC vide said notification seeks to prescribe the 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.
• For persons having an aggregate turnover of more than INR1.5 crore, the time limit to file Form GSTR-1 for the months, October 2019 till March 2020 shall be 11th of the succeeding month.
• The due dates for all the above cases were earlier prescribed till September 2019.
• GSTR 1 due dates have been notified for below tax periods;

Notification no. 47/2019-Central Tax dated 09 October 2019

• CBIC vide said notification 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 aggregate turnover is less than Rs 2 crores and who have not filed the said return before the due date.
• Now, the requirement to file an annual return by taxpayers having aggregate turnover up to INR2 crores is made optional for the financial year 2017-18 and 2018-19.
  

Notification no. 48/2019-Central Tax dated 09 October 2019

• CBIC vide said notification seeks to amend notification No. 41/2019 – Central Tax, dated the 31st August, 2019.
• Late fee for delay in furnishing the following returns has been waived for taxpayers having principal place of business in Jammu and Kashmir, where such returns are filed within the revised time limit:

Notification no. 49/2019-Central Tax dated 09 October 2019

CBIC vide said notification seeks to carry out changes in the CGST Rules, 2017. The key changes notified are highlighted in below paras :

a) Requirement of matching/ reconciliation of GSTR 2A and PR for availment of GST ITC –

Amendment in Rule 36 of CGST Rules i.e. Documentary requirements and conditions for claiming input tax credit – A new sub rule (4) has been inserted for giving effect to the decisions proposed in the recent GST council meeting, with regards to the restrictions in availment of ITC, in case of failure of supplier in uploading GSTR 1. The rule reads as under –

“Input tax credit to be availed by a registered person in respect of invoices or debit notes, the details of which have not been uploaded by the suppliers under sub-section (1) of section 37, shall not exceed 20 per cent. of the eligible credit available in respect of invoices or debit notes the details of which have been uploaded by the suppliers under sub-section (1) of section 37.”

Impact of the above amendment

• As a result of this amendment, regular matching of ITC on with the details available in GSTR 2A may become necessary. Prior to filing of GSTR 3B, a taxpayer may have to match and analyse the amount of ITC which can be availed taking in to account the restriction on availment of ITC on invoices not uploaded by supplier – which is restricted to 20% over and above of the ‘eligible’ ITC available in GSTR 2A.
• Further, this may entail following up with the non-compliant vendors on a regular basis to ensure filing of their of GSTR on a regular basis.

b) Time limit for availment of ITC

Retrospective amendment with effect from 1 July 2017 in rule 61 of CGST Rules i.e. Form and manner of submission of monthly return –Sub rule (5) with regards to filing of GSTR 3B has now been amended retrospectively which reads as under –

“Where the time limit for furnishing of details in FORM GSTR-1 under section 37 or in FORM GSTR-2 under section 38 has been extended, the return specified in sub-section (1) of section 39 shall, in such manner and subject to such conditions as the Commissioner may, by notification, specify, be furnished in FORM GSTR-3B electronically through the common portal, either directly or through a Facilitation Centre notified by the Commissioner:

Provided that where a return in FORM GSTR-3B is required to be furnished by a person referred to in sub-rule (1) then such person shall not be required to furnish the return in FORM GSTR-3”

Further to the above, sub rule (6) dealing with facilitation of form GSTR 3 basis details in GSTR1, 2 and 3B in the said rules have been omitted retrospectively as well.

Impact of the above amendment

• As a result of this amendment, it appears that GSTR 3B has been notified as a return u/s 39 of CGST Act 2017. This amendment appears to seek to circumvent the judgement of the Gujarat High Court in the case of AAP and Company, per which it was held that GSTR 3B is not a return u/s 39 of CGST Act 2017, as a consequence of which, credit could be availed until the date of filing annual return.
• Accordingly, the impact of this amendment on credits availed/ proposed to be availed with respect to FY 2017-18 and 2018-19 until the due date of filing annual return requires to be evaluated