Further Changes Pursuant to The 37th GST Council Meeting in GST Law and Rules vide CBIC Central Tax notification No. 44 to 49/2019 dated 9th October 2019.

Pursuant to the decisions taken at the 37th GST Council meeting, following changes have been made via issuance of notifications dated 09th October, 2019.

A. DUE DATES FOR MAKING THE PAYMENT AND FILING GSTR – 3B (NOTIFICATION NO. 44/2019 – CENTRAL TAX)

Month Due Date
October, 2019 20th November, 2019
November, 2019 20th December, 2019
December, 2019 20th January, 2020
January, 2020 20th February, 2020
February, 2020 20th March, 2020
March, 2020 20th April, 2020

B. DUE DATES FOR GSTR – 1 WHERE AGGREGATE TURNOVER IN PRECEDING FINANCIAL YEAR OR CURRENT FINANCIAL YEAR IS UP TO RS. 1.5 CRORE (NOTIFICATION NO. 45/2019 – CENTRAL TAX)

Quarter Due Date
October, 2019 to December, 2019 31st January, 2020
January, 2020 to March, 2020 30th April, 2020

C. DUE DATES FOR GSTR – 1 WHERE AGGREGATE TURNOVER EXCEEDS RS. 1.5 CRORE (NOTIFICATION NO. 46/2019 – CENTRAL TAX)

Month Due Date
October, 2019 11th November, 2019
November, 2019 11th December, 2019
December, 2019 11th January, 2020
January, 2020 11th February, 2020
February, 2020 11th March, 2020
March, 2020 11th April, 2020

D. ANNUAL RETURN

Notification No. 47/2019 – Central Tax dt. 09.10.2019 has been issued to provide that the registered persons whose aggregate turnover in a financial year does not exceed Rs. 2 crores shall have an option to furnish the annual return for FY 2017-18 & FY 2018-19. In other words, such persons may choose not to furnish the annual return for the said years. If the annual return is not furnished by the due date (i.e. option is exercised to not furnish the annual return) the notification provides that it shall be deemed to have been furnished. Said deeming fiction has been created so as to apply the time limits, given under law from the due date of furnishing the annual return, for issuance of show cause notices as well as adjudication orders.

E. WAIVER OF LATE FEES FOR J & K

Late fees for registered persons whose principal place of business is in the State of Jammu and Kashmir shall be waived with respect to the given forms if the said forms have been filed on or before the given dates :

Form Month Due Date
GSTR – 1 (where aggregate turnover exceeds Rs. 1.5 crore) July, 2019 11th October, 2019
August, 2019 11th October, 2019
GSTR – 7 July, 2019 10th October, 2019
August, 2019 10th October, 2019
GSTR – 3B July, 2019 20th October, 2019
August, 2019 20th October, 2019

F. AMENDMENT IN THE CGST RULES, 2017

Notification No. 49/2019 – Central Tax has been issued to make amendments in the CGST Rules, 2017 as under:

Suspension of registration

An explanation has been inserted in Rule 21A(3) to clarify that during the period of suspension of registration the registered person shall not issue a tax invoice and, accordingly, not charge tax on supplies made by him during the said period.

Further if an order for revocation of suspension is passed (i.e. the registration is restored), then provisions of Sec. 31(3)(a) (permitting revision of invoice) and Sec. 40 (dealing with first return) shall apply. In other words for the supplies made during the period of suspension, the invoice issued can be revised so as to make it a valid tax invoice and the details of such supplies are to be filed in the first return post the revocation of the registration.

Restrictions on availment of ITC

Following new sub-rule (4) has been inserted in Rule 36 dealing with conditions for claiming input tax credit:

“(4) 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.”

Hence the above inserted sub-rule provides that the availment of ITC with respect to the invoices or debit notes not uploaded by the supplier cannot exceed 20% of the eligible credit in respect of invoices or debit notes which have been uploaded. As an example, eligible ITC with respect to the invoices uploaded by the vendors is Rs. 100. Actual eligible ITC based on the invoices received is Rs. 150. The sub-rule provides that ITC of only Rs. 20 (20% of Rs. 100) can be claimed additionally. Hence total ITC which can be claimed would be Rs. 120 and not Rs. 150.

Many issues would arise due to above inserted sub-rule as under:

a. When the provisions of the Act do not provide for such embargo and the matching has also been suspended, can a rule making power be invoked to provide for such restrictions ?

b. Above sub-rule does not distinguish between genuine cases where the mismatch is due to fault of the supplier and non-genuine cases where bogus credits are sought to be claimed. Article 14 of the Constitution grants equality before the law. Can it hence be said that the above sub-rule violates Article 14 by meeting unequal treatment to genuine cases ?

c. Whether the said sub-rule will operate period wise ? What if the missing invoices are reported belatedly by the concerned suppliers ? Whether the eligible amount would be recalculated and the incremental amount be permitted for availment ?

d. What shall be the consequences if the credit is availed in excess of the given 20% rule ?

Above are some of the issues which would require critical thinking in coming days.

Status of GSTR – 3B 

When GSTR – 3B was prescribed via Rule 61(5), it was an orphan. It did not find reference in any of the provisions of the Act. Now Rule 61(5) is amended to provide that GSTR – 3B shall be the “return” specified u/s 39(1). Said delayed birth has also been given a retrospective effect so as to apply the same from 01.07.2017 (date of implementation of GST).

It may be noted that said amendment would have implications on the time limits for claiming ITC for FY 2017-18.

GST Practitioner 

Time limit given under Rule 83A(6) for passing the exam by the GST Practitioner has been aligned with Rule 83(3) (i.e. December, 2019 for sales tax practitioner or tax return preparer under earlier law).

Refund 

Concept of consolidated payment advice from a single authority for disbursement of refund has already been made operational. Consequent changes have been made in Rule 91.

TRAN – I & TRAN – II extensions

Rule 117(1A) has been amended to permit availment of transitional credits through FORM TRAN – I till 31st December, 2019 in cases where registered persons 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. In such cases TRAN – II can be filed till 31st January, 2020.

Stage prior to issuance of SCN created

New sub-rule (1A) has been inserted in Rule 142 to provide for a procedure for issuance of a communication in Part A of FORM GST DRC-01A before service of notice to the person chargeable with tax, interest and penalty. The person on receipt of said communication may choose to pay the proposed dues or pay a partial payment or file a submission in Part B of FORM GST DRC-01A. SCN would hence be issued after the said process is completed. This is purported to be done to provide a stage to consider the submissions before moving ahead with the issuance of SCN. 

Link to Notifications are as follows:-

Restriction on ITC in case of diffrence’ GTR 3B is a Return: CBIC notifies Notification No. 49/2019-Central Tax 09/10/2019
Extended due date of Form GSTR-1, GSTR-7 & GSTR-3B for J&K Notification No. 48/2019-Central Tax 09/10/2019
GST Annual Return voluntary if Turnover is less than Rs 2 crores: CBIC notifies Notification No. 47/2019-Central Tax 09/10/2019
FORM GSTR-1 Due date if aggregate turnover exceeds Rs. 1.5 crore Notification No. 46/2019-Central Tax 09/10/2019
Due date of FORM GSTR-1 if aggregate turnover is up to Rs. 1.5 crore Notification No. 45/2019-Central Tax 09/10/2019
Due date of FORM GSTR-3B for October, 2019 to March, 2020 Notification No. 44/2019-Central Tax 09/10/2019

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One Comment

  1. vijay Shrivastava says:

    Sir / Madam
    We are registered under ROC as a company entity is Ist Co. and Cleaning Service is avail from another PVT LTD concern is 2nd company
    Example : Bill raised by co Rs 3 Laks + GST 54000 Total Bill amount comes to To Rs 354000/- We are deducted tds @ 2% 7080 Service company is having Objection on that, as per him tds Rs 6000 without GST of Rs 54000
    Now, We are Ist Co. and unregistered dealer then How can reconcile the tds with expense
    Due to we are not book the Exp of Rs 354000 & tds there on Rs 6000
    Pls advice, 2nd company is say about the circular
    Kindly help, what can we do ? for that.
    Vijay Shrivastava
    +91 7766912142

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