GST updates and Compliances – September 2021

1. Circulars or Clarifications

1.1. IGST on goods re-imported after being exported for repairs

(Circular No. 16/2021-Customs; Dated 19th July 2021)

Integrated tax and Compensation cess shall be leviable on goods re-imported after being exported for repairs at a value-

• The fair cost of repairs carried out including cost of materials used in repairs (whether such costs are actually incurred or not), insurance and freight charges, both ways.

2. GST DEADLINES

2.1. Deadlines | Sep 21

• GST Compliance Calendar – Aug 2021

Due Date	Return/ Compliance	Remarks
11 Sep 21	GSTR1 (Aug 21)	Return of Outward Supplies- Monthly Return
13 Sep 21	GSTR1 (Aug 21)- IFF	Return of Outward Supplies- QRMP
14 Sep 21	GSTR2B (Aug 21)	Auto Drafted ITC Statement available for download
15 Sep 21	Advance Tax- Income Tax	Second Instalment of Advance Income Tax
20 Sep 21	GSTR3B (Aug 21)	Last Date for Payment of Tax and Return for Normal Taxpayers (Monthly GTSR3B)
25 Sep 21	PMT 06 (Aug 21)	Last Date for Payment of Tax and Return For Taxpayers under QRMP Scheme

• GST Annual Return and Reconciliation Statement (GSTR9 and GSTR9C)

Due date 31^st Dec 2021 for FY 20-21.

Taxpayer	Description	Aggregate Turnover	Form	Compliance
Normal Taxpayer	Reconciliation Statement & Annual Return	More than 5 Cr.	GSTR 9 and 9C	Compulsory
	Annual Return	Between 2 Cr. To 5 Cr.	GSTR 9	Compulsory
	Annual Return	Less than 2 Cr.	GSTR 9	Optional
Composition Taxpayer	Annual Return	NA	GSTR 9A	Compulsory
E Commerce Operator	Annual Return	NA	GSTR 9B	Compulsory

Note: 45th GST Council meeting scheduled for Sep 17 at Lucknow.

3. GST PORTAL UPDATES

3.1. Updating the Annual Aggregate Turnover (AATO) by taxpayers.

(Advisory Dated: 4/08/2021)

The Annual Aggregate Turnover (AATO) has been calculated based on the returns filed by the taxpayers. The detailed advisory on calculation methodology of AATO has been specified under the ‘Advisory’ hosted at Taxpayers’ Dashboard. A functionality has been provided at the Common Portal to modify the AATO where taxpayers have reason to believe that the AATO has been calculated wrongly. In such cases, taxpayers may modify the Annual Aggregate Turnover (AATO). In case such modification is made beyond a certain limit (as specified in the ‘Advisory’), the same shall be sent to the jurisdictional officer’s Dashboard for appropriate action, if required.

3.2. Advisory for Taxpayers regarding Blocking of E-Way Bill (EWB) generation facility resume after 15th August, 2021.

(Advisory Dated: 4/08/2021)

1. The government has now decided to resume the blocking of EWB generation facility on the EWB portal, for all the taxpayers in terms of Rule 138 E (a) and (b) of the CGST Rules, 2017, after 15th August onwards.

2. Thus, after 15th August 2021, the System will check the status of returns filed in Form GSTR-3B or the statements filed in Form GST CMP-08, and block the generation of EWB in cases of:

• Non filing of two or more returns in Form GSTR-3B (Monthly/Quarterly frequency as may be applicable) for the tax periods up to June, 2021 and
• Non filing of 02 or more statements in Form GST CMP-08 for the quarters up to April to June, 2021

3.3. Implementation of Rule-59(6) on GST Portal, blocking of GSTR1/ IFF in case of non-filling of GSTR3B

(Advisory Dated: 26/08/2021)

1. Rule-59(6) of CGST Rules, 2017; inserted vide Notification No. 1/2021 dated 1st January 2021, provides for restriction in filing of GSTR-1 in certain cases :

a) a registered person shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for preceding two months;

b) a registered person, required to furnish return for every quarter under the proviso to sub-section (1) of section 39, shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in FORM GSTR-3B for preceding tax period;

2. This Rule will be implemented on GST Portal from 1st September, 2021. On implementation of the said Rule, the system will check that whether before the filing of GSTR-1/IFF of a tax-period, the following has been filed or not:

a) GSTR-3B for the previous two monthly tax-periods (for monthly filers), OR

b) GSTR-3B for the previous quarterly tax period (for quarterly filers), as the case may be. The system will restrict filing of GSTR-1/IFF till Rule-59(6) is complied with.

3.4. Date for filing application for revocation of cancellation of registration extended

(Advisory Dated: 31/08/2021)

In view of the notification 34/2021 -Central dated 29th Aug 2021, where the due date of filing of application for revocation of cancellation of registration falls between 1st March, 2020 to 31st August, 2021, the time limit for filing of application for revocation of cancellation of registration is extended to 30th September, 2021.

4. RATIONALIZATION OF LATE FEES

4.1. GST Amnesty Scheme extended

The Government, vide Notification No. 33/2021, dated 29th Aug, 2021, inter alia, has extended the GST Amnesty Scheme till 30 Nov 2021 for waiver the late fee payable, in excess of amount as specified in the Tables, as given below:

For the registered persons who have failed to furnish the return in FORM GSTR-3B, for the months /quarter of July, 2017 to April, 2021, by the due date:

Sl.No	Return in FORM GSTR-3B for the month/ quarter of	Amount of Central & State/UT tax payablein the return	If Return furnished between	Late fee payable waived in excess of (Rs)
1	July, 2017 to April, 2021	NIL	1st June, 2021 and 30th Nov,2021	500
2	July, 2017 to April, 2021	Not NIL	1st June, 2021 and 30th Nov,2021	1000

5. NOTIFICATION

5.1. Filing of FORM GSTR-3B and FORM GSTR-1/ IFF by companies using electronic verification code (EVC)

(Notification No. 32/2021- Central Tax, dated 29.08.2021)

The filing of FORM GSTR-3B and FORM GSTR-1/ IFF by companies using electronic verification code (EVC), instead of Digital Signature certificate (DSC) has already been enabled for the period from 27.04.2021 to 31.08.2021. This has been further extended to 31st October, 2021.

6. JUDICIAL PRONOUNCEMENTS

6.1 Validity of tax demanded before issuance of SCN

Petitioner was advised before issuing of SCN to pay the amount availed as ITC at the stage of summons itself without following due procedure u/s 74. Held that: No tax demand can be issued or raised when the investigation is still in progress. The respondents cannot be allowed to put the cart before the horse and collect any tax, interest, or penalty before they determine, in an enquiry, after putting the petitioner/assessee of notice, and that their action is wholly arbitrary and without jurisdiction. Writ Petition is allowed.

– Telangana HC in case of M/s. Deem Distributors Pvt Ltd

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