GST UPDATE | APRIL 21 | Dated: 31 March 2021

1. GST PORTAL UPDATES

1.1. Online filing of Application for Unblocking of E Way bill facility

Online filing of application (Form GST EWB 05) by the taxpayer for un-blocking of E-Way Bill (EWB) generation facility. In terms of Rule 138E (a) and (b) of the CGST Rules, 2017, the E-Way Bill (EWB) generation facility of a taxpayer is to be blocked, in case the taxpayer fails to file their returns in Form GSTR-3B or Statement in Form CMP-08, for two or more consecutive tax periods. For unblocking of this facility, taxpayer need to apply to jurisdictional Tax Official in Form GST EWB 05.

2. GST DEADLINES

2.1. Deadlines | April 21

  • Compliance Calendar – April 2021
Due Date Return/ Compliance Remarks
31 Mar 21 GSTR 9/9C (FY 19-20) GST Audit and Annual Return last date.
31 Mar 21 CMP 02 Opting In of Composition Scheme
01 April 21 E Invoice Mandatory for registered person with aggregate turnover more that Rs 50 Crores.
11 April 21 GSTR1 (March 21) Return of Outward Supplies- Monthly Return
13 April 21 GSTR 1 (Jan- Mar 21) Return of Outward Supplies- QRMP
14 April 21 GSTR2B (March 21) Auto Drafted ITC Statement available for download
18 April 21 CMP 08 (Jan- Mar 21) Composition Quarterly Return
20 April 21 GSTR3B (Mar 21) Last Date for Payment of Tax and Return

Taxpayers with Turnover More Than 5 Crore

22 April 21 GSTR3B (Mar 21) 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 April 21 GSTR3B (Mar 21) 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

30 April 21 TDS Payment (IT) Payment of TDS for the month of March 21 (Income Tax Act)

3. GST YEAR END TASKS

3.1. Renewal of LUT for FY 2020-21

3.2. Input Tax credit Reconciliations to be prepared

  • GSTR2A Reconciliation (GSTR3B vs GSTR2A)

Any mismatches in GSTR2A should be informed to the supplier in March 2021.

Identify any missing credits to be availed. Or reversal of credit wrongly availed.

  • Rule 42/ 43 yearly reversal for FY 20-21

Impact of annualized ITC reversal in case of exempted as well as taxable supplies to be considered.

  • Rule 37 Reversal on account of Non Payment

Any ITC reversal required on account of non-payment within 180 days or reclaim of any ITC in respect of supplies for which payment has been made.

  • Rule 36(4) 5% restriction on availment of ITC

5%/10% being maintained month-wise to be incorporated to an annual level

  • GSTR3B Reconciliation with Books of Accounts

3.3. Outward Supplies Reconciliations to be prepared

  • GSTR1 vs GSTR3B Reconciliation

Any Mismatches in return should be corrected in March 2021 return.

  • GSTR3B vs Books of Accounts
  • E Way bill and GSTR1 Reconciliation
  • GST on Advances

Ensure tax liability against receipt of advances and adjustment thereof to derive at unadjusted advances at year end.

  • In case of continuous supply of services, ensure whether invoice is raised on milestone.
  • Issuance of GST Debit note/ Credit note –
  • Assess the need to issue any DN/ CN for any value short/excess charged.
  • Whether CN has been issued for sales return by the customers?

3.4. Matching of Electronic Cash Ledger and Electronic Credit ledger with books of accounts

4. NOTIFICATION

4.1. HSN Code Mandatory irrespective of Turnover from 01.04.2021

(Notification No.- 78/2020 CT; 15 Oct 2020)

With effect from the 1st April, 2021, it has been made mandatory for a GST taxpayer, having turnover of more than Rs 5 crore in the preceding financial year, to furnish 6 digits HSN Code (Harmonised System of Nomenclature Code), or as the case may be, SAC (Service Accounting Code) on the invoices issued for supplies of taxable goods and services. A taxpayer having turnover of upto Rs 5 crore in the preceding financial year is required to mandatorily furnish 4 digits HSN code on B2B invoices. Earlier, the requirement was 4 digits and 2 digits respectively.

5. LEGAL UPDATES

5.1. Gujarat HC directed CBIC to issue guidelines that no recovery is to be made at time of search

The Honourable HC has directed the Central Board of Indirect Taxes and Customs as well as the Chief Commissioner of Central/State Tax of the State of Gujarat to issue the following guidelines by way of suitable circular/instructions:

(1) No recovery in any mode by cheque, cash, e-payment or adjustment of input tax credit should be made at the time of search/inspection proceedings under section 67 of the Central/Gujarat Goods and Services Tax Act, 2017 under any circumstances.

(2) Even if the assessee comes forward to make voluntary payment by filing Form DRC-03, the assessee should be asked/advised to file such Form DRC-03 on the next day after the end of search proceedings and after the officers of the visiting team have left the premises of the assessee.

(3) Facility of filing complaint/grievance after the end of search proceedings should be made available to the assessee if the assessee was forced to make payment in any mode during the pendency of the search proceedings.

(4) If complaint/grievance is filed by assessee and officer is found to have acted in defiance of the afore-stated directions, then strict disciplinary action should be initiated against the concerned officer.”

5.2. Telangana HC releases goods where penalty was levied under Sec 129 on the sole ground that vehicle was found at a wrong destination without anything more

Assessee was a trader in steels having registered office at Distillery Road, Secunderabad – It in course of business purchased goods from Steel Authority of India Limited, Salem (Tamil Nadu) – While goods were in transit from place of purchase to assessee’s business premises at Secunderabad and when carrier/goods vehicle was en route, Competent Authority checked goods under transport at IDA Jeedimetla, Hyderabad and detained goods and vehicle on grounds that (i) prima facie documents tendered were found to be defective, and (ii) goods were being transported from Salem to Distillery Road, Secunderabad, but vehicle was checked at IDA Jeedimetla, Hyderabad, i.e., vehicle was found at a wrong destination – Later said Authority released goods and vehicle only after collecting from assessee certain amount towards tax and penalty –

Whether as documents available with driver and actually tendered to Competent Authority clearly showed that goods were to be delivered at Secunderabad, in view of Circular No. 41/15/2018 – GST, dated 13-4-2018 vehicle should be allowed and proceeded further and movement of goods could not be stopped prima facie – Held, yes –

Whether it is permissible under Central Goods and Services Tax Act/Telangana Goods and Services Tax Act to detain a vehicle carrying goods or levy penalty on sole ground that vehicle was found at a wrong destination without anything more – Held, no –

Whether reasons for detaining goods and vehicle indicated any violation of provisions of Act by assessee warranting levy of tax and penalty – Held, no –

Whether detention of goods under transport and vehicle was in violation of provision of GST Act and Competent Authority was not justified in collecting tax and penalty from assessee – Held, yes

Whether action of Competent Authority in detaining goods and vehicle and forcing assessee to pay certain amount towards tax and penalty was illegal and arbitrary – Held, yes

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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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