Summary of GST updates for the month of August 2019 – Circulars, Notifications and Orders issued in August 2019

Objective:

The objective of this document is to summarize all the updates of GST (Notifications, Circulars, other amendments and updates) in one place. 6 Central tax notifications and one order were issued during the month Aug’19. Also, the “Sabka Vishwas – (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS)” has been notified w.e.f 1st Sep’19. The same are being summarized below, along with certain important press release and clarifications.

1. The applicability of Rule 138E has been further postponed by 3 months i.e. up to 21. Nov.2019

  • As per Rule 138E, if any of the registered person fails to file returns for 2 consecutive tax periods, their GSTIN shall not be allowed to be mentioned anywhere in Part A of the E-way bill.
  • Earlier the same was notified vide 22/2019_CT dated 23.Apr. 19 w.e.f. 21. Jun.19, and postponed by 2 months vide Notification no. 25/2019_CT dated 21.Jun.19.
  • Now the council has decided to postpone the same by 3 more months. Hence, the effective date for the same shall be 21.Nov.19

{Refer Notification No. 36/2019_CT_20-Aug-19}

2. The requirement of filing ITC-04 (for Job work) has been exempted for the period Jul’17 to Mar’19.

  • ITC-04 is a statement the Principal (Person sending the goods for Job-work), which contains the details of the goods sent for the Job work, received back / sip[plied from there. Etc.
  • The same has to be filed on quarterly basis, by 25th of the following quarter. However, the same has been extended multiple times.
  • Finally, the council has decided to remove the requirement for the past period, i.e. Jul’17-Mar’19.
  • However, the principal has to file the following details in the first return to be filed i.e. the return for the period Apr’19-Jun’19, the principal has to file the details of the goods dispatched to a job worker in the period July, 2017 to March, 2019 but are neither received back, nor sent to the customer.
  • The due date for filing of ITC-04 for the quarter Apr’19-Jun’19 is 31-Aug-19.

{Refer Notification No. 38/2019_CT_31-Aug-19}

3. The Sec 103 of the finance (No. 2) act, 2019, which enables the single window disbursement mechanism for refunds has been notified w.e.f. 01-Sep-19.

  • The central govt. has drawn power to disburse the state taxes by inserting new sub-sec. 8A to Sec 54.
  • Hence, the Central officers can disburse the entire tax amount (CGST+SGST+IGST) at a time.
  • However, it’s not very clear, whether the State officers can also refund the Central tax & IGST or only the Central tax officers shall be doing it.

{Refer Notification No. 39/2019_CT_31-Aug-19}

4. For few districts of flood affected state and the Jammu & Kashmir region, for the month of Jul’19:

i. For GSTR-1 and GSTR-6, the late fees have been waived off, if the same has been filed on or before 20.Sep.19

ii. For GSTR-3B and GSTR-7, the due date has been extended up to 20.Sep.19

  • The above said relaxations are applicable for the registered persons whose principal place of business for the GSTIN is in any of the districts mentioned below:
Sl.no State

Districts

1 Bihar Araria, Kishanganj, Madhubani, East Champaran, Sitamarhi, Sheohar, Supaul, Darbhanga, Muzaffarpur, Saharsa, Katihar, Purnia, West Champaran.
2 Gujarat Vadodara.
3 Karnataka Bagalkot, Ballari, Belagavi, Chamarajanagar, Chikkamagalur, Dakshina Kannada, Davanagere, Dharwad, Gadag, Hassan, Haveri, Kalaburagi, Kodagu, Koppal, Mandya, Mysuru, Raichur, Shivamogga, Udupi, Uttara Kannada, Vijayapura, Yadgir.
4 Kerala  Idukki, Malappuram, Wayanad, Kozhikode
5 Maharashtra Kolhapur, Sangli, Satara, Ratnagiri, Sindhudurg, Palghar, Nashik, Ahmednagar.
6 Odisha Balangir, Sonepur, Kalahandi, Nuapada, Koraput, Malkangiri, Rayagada, Nawarangpur.
7 Uttarakhand Uttarkashi and Chamoli
8 Jammu & Kashmir All the districts of this territory

{Refer Notification No. 40/2019 & 41/2019_CT_31-Aug-19}

5. Due date for GSTR-3B for persons other than above, has been extended by 2 days, i.e. up to 22.Aug.19

{Refer Notification No. 37/2019_CT_21-Aug-19; Eff. From 20-Aug-19}

6. Sabka Vishwas (Legacy Dispute Resolution) Scheme (SVLDRS), 2019

I. Objective & Validity

The SLVDRS is an initiative of the central government for liquidation of the disputes under Central excise and Service tax and also to provide an opportunity for voluntary disclosure of non-compliant tax payers.

II.  Applicability

  • Below is the short summary of the cases covered and the benefits given
Type of case % of Relief from
duty
% of Relief from Interest, Fine & Penalty Condition Net payable
1. Pending in Adjudications / Appeal in any forum

2. Cases under investigation & Audit, if the demand was communicated / admitted before 30.Jun.19

70% 100% Duty demand is <=50L 30% of the duty / tax
50% 100% Duty demand is >50L 50% of the duty / tax
3. Confirmed duty demand, no appeal is pending 60% 100% Duty demand is <=50L 40% of the duty / tax
40% 100% Duty demand is >50L 60% of the duty / tax
4. Voluntary disclosure 0% 100% All cases. 100% of the duty / tax
Note: The above table is based on the press release by CBIC. We need to go through the act and rules to ensure the applicability on case to case basis.

III.  Steps involved in the process

i. Declaration and Acknowledgement:

  • Person who wishes to opt for this scheme should file a declaration electronically in FORM SVLDRS-1 by 31-Dec-19.
  • Separate declaration should be filed for each of the cases,
  • An auto acknowledgement will be generated for the same

ii. Verification by designated committee and issue of estimate:

  • The declaration filed shall be verified by the committee and an estimated tax/duty to be paid shall be arrived on the basis of the data provided and the information available with the department.
  • If the amount declared is higher than or equal to the amount estimated by the committee, the committee shall communicate the amount payable within 60 days {Form SVLDRS-3}
  • If the amount estimated is higher than the amount declared:
    • Within 30 days, the committee shall issue the estimate with an along with a notice of opportunity for personal hearing {Form SVLDRS-2}
    • The declarant can Agree/Disagree/provide additional submission/request for adjournment before the date of personal hearing {Form SVLDRS-2A}
    • If the declarant doesn’t appear for the hearing and make any further submissions, department shall decide the matter on the basis of the available information and communicate the amount payable
  • The committee can modify the amount payable, only to rectify the arithmetical/Clerical errors

Note:

  • The verification process shall not be applicable for the cases of voluntary disclosure.
  • If the tax estimate is “0”, then the committee shall not issue any estimate.

iii. Payment of the tax and submission of Proof of withdrawal

  • The tax/duty to be paid is should be paid in cash (Electronic payment) only, within 30 days.
  • Existing deposits, if any can be adjusted for the same.
  • The declarant should also submit the proof of withdrawal of

iv. Issue of discharge certificate

  • The designated committee on being satisfied that
    • The tax indicated has been paid and
    • The proof of withdrawal of the appeal/writ/other proceedings has been submitted

Shall issue discharge certificate

For feedback or comments, please write to vamshi@cajvk.in

{Disclaimer: This document had been written to provide updates under GST in a simple manner.  Team J V K & Associates shall not be responsible for any of the decision made based on the contents of this document.}

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