GST updates and Compliances – November 2020

1. GST PORTAL UPDATES

1.1. Taxpayers can now see aggregate turnover of preceding financial year on GSTN portal

Now Annual aggregate turnover of preceding financial year can be checked from the GSTN portal. The Goods and Service Tax Network (GSTN), recently launched many new features on the GSTN portal. One of its features is that the GSTN portal is now showing aggregate annual turnover for the previous financial year after logging in to the portal.

1.2.  Auto-populated Form GSTR 3B (PDF) for the taxpayers, from the month of October 2020 onwards

In continuation of the return linkage project, GSTN has now introduced auto-populated Form GSTR-3B in PDF format, for benefit of the taxpayers. The auto-populated PDF of Form GSTR-3B will consist of:-

a) Liabilities in Table 3.1(a, b, c and e) and Table 3.2 from Form GSTR-1

b) Liability in Table 3.1(d) and Input Tax Credit (ITC) in Table 4 from auto-drafted ITC Statement from Form GSTR-2B.

This facility is made available in Form GSTR 3B dashboard from October 2020 tax period onwards. The system generated PDF will be made available on GSTR-3B dashboard. Taxpayers will be able to access their Form GSTR-3B (PDF) through: Login to GST Portal > Returns Dashboard > Select Return period > GSTR-3B> System Generated 3B.

2. GST DEADLINES

2.1. Deadlines | November 20

√ Compliance Calendar – Nov 2020

Due Date	Return/ Compliance	Remarks
07 Nov 20	TDS/ TCS Payment- IT	Due date for Payment of TDS/ TCS for Oct 20
11 Nov 20	GSTR1 (Oct 20)	Return of Outward Supplies- Monthly Return
12 Nov 20	GSTR2B (Oct 20)	Auto Drafted ITC Statement available for download
20 Nov 20	GSTR3B (Oct 20)	Last Date for Payment of Tax and Return Taxpayers with Turnover More Than 5 Crore
22 Nov 20	GSTR3B (Oct 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 Nov 20	GSTR3B (Oct 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 Dec 20	GSTR 9/9C (FY 18-19)	GST Audit and Annual Return last date.
31 Dec 20	GSTR 9A	Annual Return for Composition Taxpayers

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

3. NOTIFICATIONS

3.1. GST E-invoicing from January 1, 2021 for taxpayer with turnover more than Rs. 100 Crores

 (Notification No. 88/2020 – Central Tax; Dated 10th November 2020)

The Board notified that E-invoicing is mandatory from January 1, 2021 for every taxpayer other than SEZ unit whose aggregate turnover in any of the Financial Year from 2017-18 exceeds Rs 100 Crores. Earlier board has implemented E invoices for taxpayer with turnover more than Rs 500 crores from 1 Oct 2020.

3.2. ITC 04 due date extended for Sep 20 quarter to 30 Nov 2020 

(Notification No. 87/2020 – Central Tax; Dated 10th November 2020)

The Due date for filing ITC-04 which pertains to Job worker return, in respect of goods dispatched to a job worker or received from a job worker, during the period from July 2020 to September 2020 extended to 30th November 2020.

3.3. Quarterly return Monthly payment scheme introduced for taxpayers with aggregate turnover less than Rs 5 crores w.e.f. 1 Jan 2020   

(Notification No. 81,82,84 & 85/2020 – Central Tax; Dated 10th November 2020)

Government has issued following notifications to implement the Scheme of quarterly return filing along with monthly payment of taxes (hereinafter referred to as “QRMP Scheme”)

SI. No.	Notification	Remarks
1.	Notification No. 81/2020 –	Notifies amendment carried out in sub-section (1), (2) and (7) of section 39 of the CGST Act vide Finance (No.2) Act, 2019.
2.	Notification No. 82/2020 –	Makes the Thirteenth amendment (2020) to the CGST Rules, 2017.
3.	Notification No. 84/2020	Notifies class of persons under proviso to section 39(1) of the CGST Act.
4.	Notification No. 85/2020	Notifies special procedure for making payment of tax liability in the first two months of a quarter

3.4. CBIC notifies Auto-drafted ITC Statement in FORM-2B

(Notification No. 87/2020 – Central Tax; Dated 10th November 2020)

The Central Board of Indirect Taxes and Customs (CBIC) notified the Central Goods and Services Tax (Thirteenth Amendment) Rules, 2020 which seeks to amend the Central Goods and Services Tax Rules, 2017. The notification inserted FORM-2B in respect of Auto-drafted Input Tax Credit (ITC) Statement. The FORM GSTR-2B is a statement which has been generated on the basis of the information furnished by the suppliers in their respective FORMS GSTR-1,5 and 6. It is a static statement and will be made available once a month.

4. CIRCULARS

4.1. CBIC explains Quarterly Return Monthly Payment Scheme (QRMP)

(Circular No.- 143/13/2020 ; 10 Nov 2020)

The GST Council in its 42nd meeting held on 05.10.2020, had recommended that registered person having aggregate turnover up to five (5) crore rupees may be allowed to furnish return on quarterly basis along with monthly payment of tax, with effect from 01.01.2021. Government has issued Notification No. 81/2020; 82/2020; 84/2020; 85/2020 – Central Tax, dated 10.11.2020 to implement the scheme.

√ Eligibility for the Scheme

In terms of notification No. 84/2020- Central Tax, dated 10.11.2020, a registered person who is required to furnish a return in FORM GSTR-3B, and who has an aggregate turnover of up to 5 crore rupees in the preceding financial year, is eligible for the QRMP Scheme. Further, in case the aggregate turnover exceeds 5 crore rupees during any quarter in the current financial year, the registered person shall not be eligible for the Scheme from the next quarter.

It is further clarified that the option to avail the QRMP Scheme is GSTIN wise. In other words, some GSTINs for that PAN can opt for the QRMP Scheme and remaining GSTINs may not opt for the Scheme.

√  Furnishing of details of outward supplies

The registered persons opting for the Scheme would be required to furnish the details of outward supply in FORM GSTR-1 quarterly as per the rule 59 of the CGST Rule. For each of the first and second months of a quarter, such a registered person will have the optional facility (Invoice Furnishing Facility- IFF) to furnish the details of such outward supplies to a registered person, as he may consider necessary, between the 1st day of the succeeding month till the 13th day of the succeeding month. The said details of outward supplies shall, however, not exceed the value of fifty lakh rupees in each month. The facility of furnishing details of invoices in IFF has been provided so as to allow details of such supplies to be duly reflected in the FORM GSTR-2A and FORM GSTR-2B of the concerned recipient.

√  Monthly Payment of Tax

The registered person under the QRMP Scheme would be required to pay the tax due in each of the first two months of the quarter by depositing the due amount in FORM GST PMT-06, by the twenty fifth day of the month succeeding such month. While generating the challan, taxpayers should select “Monthly payment for quarterly taxpayer” as reason for generating the challan. The said person can use any of the following two options provided below for monthly payment of tax during the first two months –

a) Fixed Sum Method: A facility is being made available on the portal for generating a pre-filled challan in FORM GST PMT-06 for an amount equal to:

–  Thirty five per cent of the tax paid in cash in the preceding quarter where the return was furnished quarterly; or

– the tax paid in cash in the last month of the immediately preceding quarter where the return was furnished monthly.

b) Self-Assessment Method: The said persons, in any case, can pay the tax due by considering the tax liability on inward and outward supplies and the input tax credit available, in FORM GST PMT-06. In order to facilitate ascertainment of the ITC available for the month, an auto-drafted input tax credit statement has been made available in FORM GSTR2B, for every month.

It is clarified that in case the balance in the electronic cash ledger and/or electronic credit ledger is adequate for the tax due for the first month and/ or second month of the quarter or where there is nil tax liability, the registered person may not deposit any amount for the said month.

√  Quarterly filing of FORM GSTR-3B

Such registered persons would be required to furnish FORM GSTR-3B, for each quarter, on or before 22nd or 24th day of the month succeeding such quarter.

√  Applicability of Interest

 For registered person making payment of tax by opting Fixed Sum Method

No interest would be payable in case the tax due is paid in the first two months of the quarter by way of depositing auto-calculated fixed sum amount by the due date.

For registered person making payment of tax by opting Self-Assessment Method

Interest amount would be payable as per the provision of Section 50 of the CGST Act for tax or any part thereof (net of ITC) which remains unpaid / paid beyond the due date for the first two months of the quarter.

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 ca.hsinghal@gmail.com; +91 99172 11511