GST Compliance Amendments

Introduction:

1. The Scheme of New returns was designed to be implemented by 1st Oct 2020 and accordingly the present scheme of GST return filing was mandated till 30th September 2020. However, due to delay in system changes and situations arising on account of COVID-19 the present scheme of filing of returns is continued which is explained below.

A hand picking up a Compliance concept on a colorful drawing board

2. GSTR-1 for the tax period October 2020 to March 2021:

The Central Government has notified[1] due dates for filing of GSTR 1 for tax payers for the period October 2020 to March 2021 which is as under:

Sr No Particulars Type of Returns Period Due Date
1

 

Turnover below Rs 1.5 crores Quarterly October 2020 to December 2020 13th January 2021
Quarterly January 2021 to March 2021 13th April 2021
2 Turnover above Rs 1.5 crores Monthly October 2020 to March 2021 11th of the subsequent month

KSAA Comments:

Earlier, the due date for filing quarterly returns was 31st day of the month of the subsequent quarter and accordingly noting compliance under Rule 36(4) of the CGST Rules, 2017 for ITC flowing from such person was difficult which would now be easy.

3. Change in GSTR 3B Filing Date:

The Central Government has notified[2] new due dates for filing of GSTR 3B for tax payers for the period October 2020 to March 2021.  The new Due dates for the above mentioned tax payers shall be as follows:

Sr No Particulars State Due Date
1 Turnover above Rs 5 Crores All States 20th of the subsequent month
2 Turnover below Rs 5 Crores Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands or Lakshadweep 22th Of The subsequent month
3 Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh or Delhi 24th of the subsequent month

4. Relaxations in filing of GSTR 9 & 9C for the tax period FY 2019-20 :

The Central Government had earlier notified[3] that there shall be relaxation for registered tax payers who have aggregate turnover below Rs 2 Crores to not to file GSTR 9 – Annual Return for the FY 2017-18 and FY 2018-19. The same is being amended[4] so as to include registered tax payers for the FY 2019-20 as well.

The Central Government had earlier notified that the registered tax payers who have aggregate turnover below Rs 5 Crores to not to file GSTR 9C – Reconciliation Statement for the FY 2017-18 and FY 2018-19. The same is being amended[5] so as to include registered tax payers for the FY 2019-20 as well.

5. Disclosure for HSN Code on Invoices:

The Central Government has notified[6] new HSN disclosure norms with effect from 01-Apr-2021. The same has been given in the table below:

S. No Aggregate Turnover in the preceding Financial Year No of Digits of HSN Code
1 Below Rs 5 crores 4
2 above Rs 5 crores 6

6. Manner of filing NIL returns/liability/statements vide FORM GSTR 3B, GSTR 1 and CMP 08 through SMS facility:

A registered tax payer who is required to file NIL returns/liability/statement in required form can file the same through Short Messaging facility[7] [SMS].  The details send by him through his registered number shall be verified through OTP facility. The actual manner for filing the same would be notified in due course.

7. Issue of E Way Bill restriction:

Rule 138E introduced w.e.f. 21.11.2019 stated that no certain class of registered person can generate PART A of FORM GST EWB 01 for causing movement of goods of consignement value exceeding Rs. 50,000/-. The instant rule has been amended[8] so as to provide relaxation in cases where E-way bills are generated during the period from the 20th day of March, 2020 till the 15th day of October, 2020, for all such class of person who have not furnished  return in FORM GSTR-3B or FORM GSTR-1 or the statement in FORM GST CMP-08 for the tax period from February, 2020 to August, 2020.

8. Notice & order for demand of amounts payable under the Act:

The proper officer can serve DRC-01 alongwith notice under Section 73(1) & 74(1) the CGST Act, 2017 specifying the details of amount payable. Before serving the said notice the proper officer shall communicate the details of any tax, interest & penalty as ascertained by the said officer, in Part A of FORM GST DRC – 01A. The instant rule has been amended[9] so as to make the requirement of furnishing information in FORM GST DRC – 01A discretionary to the proper officer.

9. Changes in GST Forms:

As per Notification7, below are the changes notified in the several forms:

Sr No Form Form Details Amendments
1 GSTR 1 Details of Outward Supplies In table 12 for HSN details, earlier total value for each HSN was required to be submitted.  Now onwards, instead of total value, the tax payer will be required to submit the rate at which such supplies have been done
2 Form GSTR 2A Details of Auto Drafted Supplies Now not only details of the local purchases would be available, the details of import of goods as well as inward supplies of goods /services from SEZ would be available.
3 GSTR 9 9.1.1.       Annual Return i. In Against serial number 8C and Point V in the Annual return, the wordings were to give effect to the annual returns to be filed for FY 2017-18 and FY 2018-19. The notification has made changes to ensure that the Form GSTR 9 can be used to file returns for the subsequent years also by removing reference of specific years in the format.

ii. New instruction have been added for the tax payers that the tax payers shall file values pertaining to the return period only in serial number 4, 5, 6 and 7.

iii. ITC break up is  required to be filed by the tax payer in serial number 6B, 6C, 6D and 6E.  As per notification 56/2019 dated 14-Nov-2019, the tax payer had the option to not to give detailed breakup of the transaction as inputs, input services and capital goods for FY 2017-18 and FY 2018-19. However, for the FY 2019-20, the tax payer have been asked to give details of capital goods compulsory for the above mentioned serial number, but the details of inputs and input services is optional.

iv. Against Serial number 8A, for the FY 2019-20, the details from FORM GSTR-2A generated as on the 1st November, 2020 shall be auto-populated.

4 GSTR 9C Reconciliation Statement There are no amendments in the form for the FY 2019-20.  There are amendments in the instructions to the forms.  In the instructions wherever againt para 4 and 6, the information has been asked for FY 2017-18 and FY 2018-19, suitable changes have been made to furnish the details for FY 2019-20.
5 RFD 01 Application for Refund Statement 2 in Annexure 1, detailing refund Type: Export of services with payment of tax (accumulated ITC) has been deleted.
6 ASMT 16 Assessment Order The instant forms have been amended so that the proper officer can demand late fees while issuing order
7 DRC 01 Summary of Show Cause Notice
8 DRC 02 Summary of statement
9 DRC 07 Summary of Order
10 DRC 08 Summary of Rectification / withdrawl Order
11 DRC 09 Order for recovery
12 DRC 24 Intimation to liquidator
13 DRC 25 Continuation of recovery proceedings

KSAA Comments:

Currently in FORM GSTR-9, if only details of outward liabilities and ITC pertaining to F.Y 18-19 is reflected then, FORM GSTR 9 would reflect excess payment of liability & short availment of ITC.  Accordingly, the instant instructions to the form has been amended so as to state that only figures pertaining to FY 18-19 should be reported .To that extent a press release was issued by CBIC on 09-Oct-2020 clarifying the same.   .

10. In case of any clarification/queries, please feel free to contact the undersign:

CA. Kevin Shah
M: +91-96642 94346
E: kevin.shah@ksaa.co.in
Adv. Deep Shah
M: +91-99204 10008
E: deep.shah@ksaa.co.in
CA. Rovin Kothari
M: +91-98203 37515
E: rovin.kothari@ksaa.co.in

—————-

[1] Notification No 74/2020 – Central Tax Dated 15-Oct-2020 & Notification No 75/2020– Central Tax Dated 15-Oct-2020

[2] Notification No 76/2020 – Central Tax Dated 15-Oct-2020

[3] Notification No 47/2019 – Central Tax dated 09-Oct-2019

[4] Notification No 77/2020 – Central Tax dated 15-Oct-2020

[5] Rule 80 as amended vide Notification No 79/2020 – Central Tax dated 15-Oct-2020

[6] First proviso to Rule 46 vide Notification No 78/2020 – Central Tax dated 15-Oct-2020 & Notification 6/2020-Integrated Tax dated 15-Oct-2020

[7] Rule 67A as amended vide notification 79/2020 – Central Tax dated 15-Oct-2020

[8] Fourth proviso to Rule 138E vide notification 79/2020 – Central Tax dated 15-Oct-2020

[9] Rule 142(1A) vide notification 79/2020 – Central Tax dated 15-Oct-2020

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