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

About TaxMarvel:

TaxMarvel is a Consulting firm focused on providing GST services to small and medium enterprises. We offer host of GST Services be it registration or compliance or consulting or litigation support. We make GST easy for businesses by bringing in technology and subject matter expertise.You can contact us at: Email: Rohit@taxmarvel.com

Author Bio

Qualification: CA in Practice
Company: TaxMarvel Consulting Services LLP
Location: Hyderabad, Telangana, IN
Member Since: 18 Feb 2019 | Total Posts: 71
Rohit is an Enterpreneur and has founded a boutique consulting firm - TaxMarvel Consulting Services LLP. View Full Profile

My Published Posts

More Under Goods and Services Tax

2 Comments

  1. Thyagarajan says:

    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

    1. fcsrohit says:

      Dear Sir, You may issue a credit note and bring the material back on delivery challan by generating E-Way bill from your end, Show Credit note details in GSTR 1 to reduce your taxable liability.

      Trust the reply helped. In case of any difficulty pls feel free to reach out to me

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

October 2020
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031