The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No 137/07/2020-GST dated 13th April 2020, with respect to certain challenges faced by the registered persons in implementation of provisions of GST Laws for the notifications issued pursuant to outbreak of COVID -19.
Circular No.136/06/2020-GST, dated 03.04.2020 was been issued to clarify doubts regarding relief measures taken by the Government for facilitating taxpayers in meeting the compliance requirements under GST laws.
Certain challenges were highlighted to Government for complying to the requirements under various other provisions of the CGST Act which needed clarification.
Same is summarized in tabular manner for ease of understanding –
1. Cancellation of Service and Goods Contract (GST is paid) –
| Supply Type | Nature of Event | Event as per Circular | Treatment Suggested |
| Services | Receipt of Advance | Tax Invoice is issued before supply of Service and Contract is Cancelled | i) Issue Credit Note (u/s 34) for reduction in Tax Liability
ii) If Adjustment of tax liability is not possible, claim refund (Refund Type – “Excess payment of Tax”) |
| Services | Receipt of Advance | Receipt Voucher is issued before supply of Service and Contract is Cancelled | Issue Refund Voucher Credit Note and claim refund (Refund Type – “Excess payment of Tax”) |
| Goods | Supply of Goods | Tax Invoice is issued and Goods are returned | iii) Issue Credit Note (u/s 34) for reduction in Tax Liability
If Adjustment of tax liability is not possible, claim refund (Refund Type – “Excess payment of Tax”) |
2. Additional Issues clarified by the Circular –
| Issue Type | Clarification |
| Refund Claim | Date of Filing of refund claim is between 20th March 2020 to 29th June 2020 – Same can be filed by 30th June 2020 |
| LUT for 2020-21 | i. Due date for furnishing LUT for 2020-21 has been extended to 30th June 2020
ii. LUT for 2019-20 may be quoted for exports made till that time |
| Deposit of GST TDS | Since the date for filing GSTR 7 (GST TDS Return) has been extended to 30th June, date for deposit of TDS is also extended to 30th June, 2020 |
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We have billed and dispatched consignment to our Dealer. Dealer not paid money. we have to take back our material but Dealer GST account got blocked how to transfer back goods