Nov’22 GST Returns Filing: Conflict of GST Law With GST Portal

CONFLICT OF GST LAW WITH GST PORTAL

The topic discussed on the video are listed below. 

Sec 34 amendment..

Sec 34 (2) Any registered person who issues a credit note in relation to a supply of goods or services or both shall declare the details of such credit note in the return for the month during which such credit note has been issued but not later than 4[the thirtieth day of November] following the end of the financial year in which such supply was made, or the date of furnishing of the relevant annual return, whichever is earlier, and the tax liability shall be adjusted in such manner as may be prescribed:

Provided that no reduction in output tax liability of the supplier shall be permitted, if the incidence of tax and interest on such supply has been passed on to any other person.

There were 2 dates earlier –

1. Date of Issue of the CN could not be after 30^th Sept. of the next FY

2. CN could be uploaded in the GSTR1 till 11^th Oct 2022

Now, there is only 1 date as follows –

1. Date of Issue of the CN can be until 30^th of the next FY. However it must be noted that the department may dispute that if the “Date of Entry in the books of accounts (Purchase Register)” is in November, the return for the period of November can only be filed after 30^th November.

2. Now incase the CN date is 12^th Nov and if a belated GSTR1 is filed on 30^th, the same will be allowed.

3. However incase the CN date is 10^th Nov and if a regular return in GSTR1 is filed on 11^th, the taxpayer will have no option to upload it after 11^th November. Hence the law is treating a ‘compliant’ taxpayer unequally with a ‘non-compliant’ taxpayer. Infact a law abiding taxpayer is at a disadvantage to a non-law abiding

This aspect needs to be looked into by The CBIC

Sec 37 amendment.. 

(3) Any registered person, who has furnished the details under sub-section (1) for any tax period 8[xxx], shall, upon discovery of any error or omission therein, rectify such error or omission in such manner as may be prescribed, and shall pay the tax and interest, if any, in case there is a short payment of tax on account of such error or omission, in the return to be furnished for such tax period:

Provided that no rectification of error or omission in respect of the details furnished under sub-section (1) shall be allowed after 9[the thirtieth day of November] following the end of the financial year to which such details pertain, or furnishing of the relevant annual return, whichever is earlier.

1. The last date for rectification of errors in invoices in GSTR-1 earlier was the GSTR-1 filing date for the month of Sept. of the next FY., i.e. 11^th

Now, the due date is 30^th Nov. Hence even incase the a belated GSTR1 is filed on 30^th Nov., the rectification w.r.t. invoices for the last FY will be allowed.

2. Now incase the rectification to the invoice is made on 12^th Nov and if a belated GSTR1 is filed on 30^th, the same will be allowed.

However incase the rectification to the invoice is made on 12^th Nov and if a regular return in GSTR1 is filed on 11^th Nov., the taxpayer will have no option to rectify it after 11^th November. Hence the law is treating a ‘compliant’ taxpayer unequally with a ‘non-compliant’ taxpayer. Infact a law abiding taxpayer is at a disadvantage to a non-law abiding

This aspect needs to be looked into by The CBIC

Amendments to Sec 16(4).. 

S 16(4) A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the 8[thirtieth day of November] following the end of financial year to which such invoice or 4[Omitted] debit note pertains or furnishing of the relevant annual return, whichever is earlier.

Solution 

Sec 16(4) – Last date of taking ITC w.r.t. FY 21-22 ITC shall be 30th Nov 2022. Hence any return of any month which is filed by 30th November 2022 shall be used for the purpose of availing ITC for the FY 21-22.

However it must be noted that in the “Date of Entry in the books of accounts (Purchase Register)” should be 31st October latest for the return for the period of October.

Now incase the rectification to the invoice entry is made on 12th Nov in the purchase register and if a belated GSTR3B is filed on 30th Nov., the same will be allowed.

However incase the date of entry in Purchase register is on 12th Nov and if a regular return in GSTR1 is filed on 11th Nov., the taxpayer will have no option to rectify it after 20th November (last date of GSTR 3B). Hence the law is treating a ‘compliant’ taxpayer unequally with a ‘non-compliant’ taxpayer. Infact a law abiding taxpayer is at a disadvantage to a non-law abiding

This aspect needs to be looked into by The CBIC