Yet another year has gone and a NEW YEAR with new beginning, new hopes along with ample of growth opportunities arrived, here are the key takeaways in GST towards the end of the year 2019.
38th council meeting which was the last meeting of the year held on 18th December, 2019 chaired by our honorable Union Finance Minister for Finance and Corporate affairs Smt Nirmala Sitharaman. The GST Council has taken several decisions in order to improve revenue collection, for GST rates rationalization.
Due to the overwhelming response of taxpayers opting for SVLDRS (73% of the eligible taxpayers opted for the same and committed to pay the tax amounting to Rs 30,627/- crores after availing benefit of the scheme), CBIC has extended the due date for opting the scheme to 15th Jan,2020. CBIC further reiterated that there will be no further extension to this scheme after 15th Jan, 2020.
If any registered person has not filed GSTR-1 from July-17 to Nov-19 then no late fees will be levied if such person files the return of said period between 19th December, 2019 to 10th January, 2020. (Vide Notification No.74/2019-CT dated 26th December, 2019)
Restriction on availement of ITC by registered person in respect of invoices or debit notes, details of which have not been uploaded by supplier in GSTR-1 has been reduced from 20% to 10% of the eligible ITC i.r.o. invoices or debit notes the details of which have been uploaded by the supplier leading to more blocking of working capital. (Vide Notification No.75/2019-CT dated 26th Dec, 2019)
> In the following cases, Commissioner or any officer authorised by him (not below the rank of AC) may not allow utilization of such ITC for the discharge of liability or for claim of any refund of any unutilized amount which are availed on account of-
I. Tax invoices or debit notes or any other document as prescribed issued by a registered person whose existence is not found or who has not conducted any business from any place for which registration has been obtained or without receipt of goods or services.
I. Any supply the tax charged i.r.o. which has not been paid to the govt.
III. Tax invoices or debit notes are not in possession of the registered person claiming ITC
IV. The existence of the person claiming ITC not found or has not conducted any any business from any place for which registration has been
> The restriction cease to have effect after expiry of 1 year from date of imposing such restriction.
> If the above conditions no longer exist, Utilization of ITC from ECrl may be allowed.
If any registered person has not furnished statement of outward supplies (GSTR-1) for two months or quarters (i.e. two tax periods) then the facility for generation of E-way bill shall be blocked for them. (Vide Notification No. 75/2019-CT dated 26th Dec, 2019)
Due dates for furnishing GSTR-1 of November month for registered persons of Assam, Manipur & Tripura having aggregate turnover of more than 1.5 crores extended to 31st December, 2019.
Due date for furnishing GSTR-3B of Nov month for registered persons of Assam, Manipur, Tripura, Meghalaya extended to 31st Dec, 2019. (Vide Notification No. 77/2019-CT dated 26th Dec, 2019)
Due dates for furnishing annual returns and reconciliation statement (GSTR-9 & 9C) for financial year 2017-18 extended to 31st January, 2020. (Vide RODO.10/2019-CT dated 26th Dec, 2019)
The registered persons to whom E-invoicing provisions are applicable are required to prepare invoice after obtaining Invoice Reference Number (IRN) & any invoice prepared other than E-invoice by such persons shall not be treated as invoice. Such persons are not required to issue such invoice in Triplicate / duplicate form. (Vide Notification No. 68/2019-CT dated 13th Dec, 2019)
Common portal for E-invoicing are notified (Vide Notification No.69/2019-CT dated 13th Dec, 2019)
Following class of registered persons are required to issue E-invoice
-The registered person whose aggregate turnover in a FY exceeds 100 crores shall be required to prepare E-invoice w.e.f. 1st April,2020 for every B2B supply of goods or services.
Class of registered person required to issue invoice having Quick Response Code (QR code)
w.e.f.1st April, 2020 registered person having aggregate turnover of more than 500 crores in a FY are required to issue invoice having QR code for supplies made to unregistered person i.e. for B2C supplies. (Vide Notification No.71 & 72/2019-CT dated 13th Dec, 2019)
Woven and non-woven bags and sacks of polyethylene or polypropylene strips or the like,laminated or not, classified under HSN code 3923 or 6305 and Flexible intermediate bulk containers under HSN 6305200 to be chargeable @ 18% GST from 12% GST rate with effect from 1-1-2020. (Vide Notification No. 27/2019-CT (Rate) dated 30th Dec, 2019)
Section 46 of the CGST Act read with rule 68 of the Central Goods and Services Tax Rules, 2017 requires issuance of a notice in FORM GSTR-3A to a registered person who fails to furnish return ((hereinafter referred to as the “defaulter”) under section 39(GSTR-3B, ISD, TDS/TCS, Composition and NTOR returns) or section 44(Annual Return) or section 45(Final Return) requiring him to furnish such return within fifteen days. Further section 62 provides for assessment of non-filers of return of registered persons who fails to furnish return under section 39 or section 45 even after service of notice.
PRESCRIBED GUIDELINES FOR PROPER OFFICER IN CASE OF NON-FURNISHING OF RETURN BY THE TAXPAYERS
|Action-Flow||Action by the Department|
|3 days before the due date||Reminder by system generated message to all registered persons to file the return by the due date|
|Once due date is over||System generated message to all defaulters that ‘said registered person has not furnished the return for the said tax period’. It will be sent to the authorized signatory as well as Proprietor/Partner/Director/Karta.|
|5 days after the due date||A notice in form GSTR-3A sent electronically to all the defaulters requiring them to furnish the return within next 15 days.
As such, no separate notice is required to be issued for Best Judgment assessment (BJA) order under section 62 and in case of failure to file return within 15 days of issuance of FORM GSTR-3A, the BJA order in FORM ASMT-13 can be issued without any further communication.
|If return is not filed within next 15 days||Best Judgment assessment (BJA) may be done by the proper officer as per section-62 of CGST Act, 2017 taking into account all the relevant material which is gathered or available and order shall be issued in Form GST ASMT-13.The summary of the same to be uploaded by the proper officer in Form GST DRC-07.
For assessing tax liability, details from GSTR-1,2A, E-way bill, inspection and other source may be considered.
In deserving cases based on the facts of the case, commissioner may resort to provisional attachment to protect the revenue u/s 83 of CGST, Act 2017 before issuance of BJA order.
|If valid return is furnished within 30 days from serving BJA order||The said BJA order shall be deemed to have been withdrawn.|
|If valid return is not furnished within 30 days from serving BJA order||Proper officer may initiate recovery proceedings under section 78 and recover tax as per the provisions of section -79 of CGST Act, 2017.|
|Further, where return is not furnished for the period specified in section 29 of CGST Act, 2017, proper officer would initiate action under section 29(2) for cancellation of registration.|
Earlier the exemption from the payment of tax on any upfront amount payable for long term lease of industrial/financial infrastructure plots to an entity having 50% or more of ownership of central or state government was available but now w.e.f. 1st January, 2020, exemption is available to such entity also which is having ownership of 20% or more of CG/SG.
Certain conditions are also laid down for exemption which are-
Leased plots shall be used for the purpose for which they are allotted, i.e. for industrial or financial activity in an industrial or financial business area State Government concerned shall monitor and enforce the above condition as per the order issued
In case of any violation or subsequent change of land use, due to any reason whatsoever, the original lessor, original lessee as well as any subsequent lessee or buyer or owner shall be jointly and severally liable to pay such amount of central tax, as would have been payable on the upfront amount charged for the long term lease of the plots but for the exemption contained herein, along with the applicable interest and penalty.
Further the lease agreement entered into by the original lessor with the original lessee or subsequent lessee, or sub- lessee, as well as any subsequent lease or sale agreements, for lease or sale of such plots to subsequent lessees or buyers or owners shall incorporate in the terms and conditions, the fact that the central tax was exempted on the long term lease of the plots by the original lessor to the original lessee subject to above 2 condition and that the parties to the said agreements undertake to comply with the same.
The services of renting of motor vehicle from non-body corporate entity to body corporate entity was brought under reverse charge mechanism (RCM). (Vide Notification No. 22/2019-CT(R) dated 30.09.2019) which has now been amended (which is clarificatory in nature) and now RCM is applicable only if
Further it has been clarified the above amendment is clarificatory in nature.
In short, if below mentioned four conditions are fulfilled then only RCM is applicable on rent a cab service otherwise not-
♦ Service of rent a cab is provided and cost of fuel is included in the consideration charged from the service recipient
♦ Supplier is other than a body-corporate
♦ Services are supplied to a body corporate and
♦ Supplier does not issue an invoice charging GST @12% from the service recipient