1.1. Clarification regarding GSTR2A reconciliation for the period Feb to Sep 20

(Circular No. 142/12/2020- GST; dated 09.10.2020)

Taxpayers shall reconcile the ITC availed in their FORM GSTR-3Bs for the period February, 2020 to August, 2020 with the details of invoices uploaded by their suppliers of the said months, till the due date of furnishing FORM GSTR-1 for the month of September, 2020. The cumulative amount of ITC availed for the said months in FORM GSTR-3B should not exceed 110% of the cumulative value 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 of the CGST Act, till the due date of furnishing of the statements in FORM GSTR-1 for the month of September, 2020.

The excess ITC availed arising out of reconciliation during this period, if any, shall be required to be reversed in Table 4(B)(2) of FORM GSTR-3B, for the month of September, 2020. Failure to reverse such excess availed ITC on account of cumulative application of sub-rule (4) of rule 36 of the CGST Rules would be treated as availment of ineligible ITC during the month of September, 2020.GST Update and Deadline

1.2. Deadlines/October 20

√ Compliance Calendar – Oct 2020

Due Date Return/ Compliance Remarks
20 Oct 20 GSTR3B (Sep 20) Last Date for Payment of Tax and Return

Taxpayers with Turnover More Than 5 Crore

22 Oct 20 GSTR3B (Sep 20) Last Date for Payment of Tax and Return

Taxpayers with Turnover Less Than 5 Crore having Principal Place of Business in Chhattisgarh, MP, Gujarat, Daman & Diu, Dadra & Nagar Haveli, Maharashtra, Karnataka, Goa, Lakshadweep, Kerala, Tamil Nadu, Puducherry, Andaman & Nicobar Islands, Telangana, Andhra Pradesh.

24 Oct 20 GSTR3B (Sep 20) Last Date for Payment of Tax and Return

Taxpayers with Turnover Less Than 5 Crore having Principal Place of Business in J&K, Laddakh, HP, Punjab, Chandigarh, Uttarakhand, Haryana, Delhi, Rajashthan, UP, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, WB, Jharkhand and Odhisha

31 Oct 20 GSTR 9/9C (FY 18-19) GST Audit and Annual Return last date.
31 Oct 20 GSTR 9A Annual Return for Composition Taxpayers

√ GST Audit and Annual return (GSTR9 and GSTR9C) due date extended to 31st Oct 2020 for FY 18-19.

Description Aggregate Turnover Form Period Compliance
GST Audit & Annual Return More than 5 Cr. GSTR 9/ 9C FY 18-19 Compulsory
GST Annual Return Between 2 Cr. To 5 Cr. GSTR 9 FY 18-19 Compulsory
GST Annual Return Less than 2 Cr. GSTR 9 FY 18-19 Optional

√ Late fees amnesty for GSTR-3B ended on Sept 30, 2020. Now late fees is being computed as per the earlier provisions.

√ Last date for availing ITC for FY 19-20 is the due date of Sep 2020 GSTR3B return i.e. 20/22/24 Oct 2020.

√ Last date for issuing credit note or making any amendments for invoices raised during the FY 19-20 is 30 Sep 2020. 


2.1.  E-Way Bill to be blocked for Taxpayers who failed to file GSTR-3B for 2 or more Tax period from Oct 15

The Central Board of Indirect Taxes and Customs ( CBIC ) has clarified that, E-Way Bill generation facility to be blocked for Taxpayers who failed to file GSTR-3B for 2 or more Tax period from Oct 15, 2020. In terms of Rule 138 E (b) of the CGST Rules, 2017, the E Way Bill generation facility of a person is liable to be restricted, in case the person fails to file their GSTR-3B returns, for a consecutive period of two months or more.

The GST Council in its last meeting has decided that this provision will be made applicable for the taxpayers whose Aggregate Annual Turn Over (AATO, PAN based) is more than Rs 5 Crores.


3.1.  Relaxations for taxpayers for issuing E Invoice for the month of Oct 20

(Notification No. 73/2020 – Central Tax dated 1st October 2020)

Registered persons required to prepare the tax invoice in the manner specified under rule 48(4) of the CGST Rules, 2017, who have prepared tax invoice in a manner other than the said manner, as the class of persons who shall, during the period from the 1 st October, 2020 to 31st October, 2020, follow the special procedure such that the said persons shall obtain an Invoice Reference Number (IRN) for such invoice by uploading specified particulars in FORM GST INV-01 on the Common GST Electronic Portal, within thirty days from the date of such invoice, failing which the same shall not be treated as an invoice.


4.1. Annual Return (GSTR-9) and Reconciliation Statement (GSTR 9C) for FY 2018-19

(Press Release ; 09 Oct 2020)

Certain representations have been received stating that the auto populated GSTR 9 for the year 2018-19 (Tables 4, 5, 6 and 7) also includes the data for FY 2017-18. However, this information for FY 2017-18 has already been furnished by the taxpayers in the annual return (GSTR9) filed for FY 2017-18 and there is no mechanism to show the split of two years (2017-18 & 2018-19) in FORM GSTR-9 for 2018-19.

In this regard, it is clarified that the taxpayers are required to report only the values pertaining to Financial Year 2018-19 and the values pertaining to Financial Year 2017-18 which may have already been reported or adjusted are to be ignored. No adverse view would be taken in cases where there are variations in returns for taxpayers who have already filed their GSTR-9 of Financial Year 2018-19 by including the details of supplies and ITC pertaining to Financial Year 2017-18 in the Annual return for FY 2018-19.

4.2.  Recommendations of 42nd GST Council Meeting

√ Auto Preparation of GSTR3B

In its 39th Meeting held in March 2020, the Council had recommended an incremental approach to incorporate features of the new return system in the present familiar GSTR-1/3B scheme. Various enhancements have since been made available on the GST Common Portal. With a view to further enhance Ease of Doing Business and improve the compliance experience, the Council has approved the future roadmap for return filing under GST.

The approved framework aims to simplify return filing and further reduce the taxpayer’s compliance burden in this regard significantly, such that the timely furnishing of details of outward supplies (GSTR-1) by a taxpayer and his suppliers would –

(i) allow him to view the ITC available in his electronic credit ledger from all sources i.e. domestic supplies, imports and payments on reverse charge etc. prior to the due date for payment of tax, and

(ii) enable the system to auto-populate return (GSTR-3B)through the data filed by the taxpayer and all his suppliers.

In other words, the timely filing of the GSTR-1 statement alone would be sufficient as the return in FORM GSTR-3B would get auto prepared on the common portal.

√ Roadmap for auto-generation of GSTR-3B from GSTR-1s

i. Auto-population of liability from own GSTR-1 w.e.f. 01.01.2021; and

ii. Auto-population of input tax credit from suppliers’ GSTR-1s through the newly developed facility in FORM GSTR-2B for monthly filers w.e.f. 01.01.2021 and for quarterly filers w.e.f. 01.04.2021;

√ Reducing the compliance burden particularly on the small taxpayers

Taxpayers having aggregate annual turnover < Rs. 5 cr. will be allowed filing of returns on a quarterly basis with monthly payments by such taxpayers to be implemented w.e.f. 01.01.2021. Such quarterly taxpayers would, for the first two months of the quarter, have an option to pay 35% of the net cash tax liability of the last quarter using an auto-generated challan.

√ Revised Requirement of declaring HSN for goods and SAC for services in invoices and in FORM GSTR-1w.e.f. 01.04.2021

a. HSN/SAC at 6 digits for supplies of both goods and services for taxpayers with aggregate annual turnover above Rs. 5 crores;

b. HSN/SAC at 4 digits for B2B supplies of both goods and services for taxpayers with aggregate annual turnover upto Rs. 5 crores;

Refund to be paid/disbursed in a validated bank account linked with the PAN & Aadhaar of the registrant w.e.f. 01.01.2021.

In order to ensure auto population of ITC and liability in GSTR 3B as detailed above, FORM GSTR 1 would be mandatorily required to be filed before FORM GSTR3B w.e.f. 01.04.2021.


5.1.  Lifts procured and installed in a hotel building qualifies as immovable property, ITC not available     

Jabalpur Hotels Pvt Ltd (GST AAR Madhya Pradesh); 8 June 2020

The learned AAR Karnataka has ruled that Lift, along with, several other such items, shall not be entitled for input tax credit when used in construction of immovable property since they take the character of Building itself. We thus hold that the applicant in the instant case shall not be entitled to avail input tax credit of tax paid on procuring the lift to be installed in the hotel building which in turn is intended to be used for providing taxable service, in terms of section 17(5)(d) of the CGST Act 2017. In respect of solitary Question, we hold that the input tax credit of tax paid on Lifts procured and installed in hotel building shall not be available to the applicant as the same is blocked in terms of section 17(5)(d) of the CGST Act, 2017 become an integral part of the building.

Disclaimer: “This material is intended to provide general information on particular subject(s) and is not an exhaustive treatment of such subject(s) or a substitute to obtaining professional service or advice. It is strongly recommended to seek professional advice before implementation of any of the aspects covered in the presentation.”)

Author can be reached at [email protected]; +91 99172 11511

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Company: N H Singhal & Associates
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