Dr. Sanjiv Agarwal, FCA, FCS

Dr Sanjiv Agarwal

We see a change in air-change for good or bad, we don’t know but a decisive change in the form of likely change of Governments in five States resulting from recent general elections in those states, the counting for which has just concluded. It may be politically correct as that’s how democracy functions.

There have been ripples in institutional set up of country in recent past. The latest is the controversy with RBI Governor stepping down citing personal reasons. We have also witnessed not so welcome events at CBI, Supreme Court and North Block which indicate that there are certainly some issues with Government and these important institutions.

The next GST Council meeting (31st) is scheduled to be held on 22 December, 2018 in Delhi, perhaps the last one of 2018, wherein certain further rationalization steps may be taken. New functionalities on advance ruling, GST refund, appeal etc have since been added on GST portal.

The last date for filing Form 9, 9A, 9C in relation to GST audit has been extended for a period of three months from 31st December, 2018 to 31st March, 2019. It is understood that the utility for annual return will be available by January, 2019. One should not be surprised if it gets further extended to June, 2019 (we have general elections in the country in May, 2019).

Also Read-  Recent Changes In GST Implementation – Part I

With recent election results and next general elections to be held in less than six months from now, major tax reforms are expected in the form of rates rationalization and procedural implication in near future.

  • GST collections in the month of November, 2018

Goods and Services (GST) collection in November dropped to Rs. 97,637 crore, lower than Rs. 1 lakh crore collected in the previous month.

  • Refund status as on 30.11.2018

(CBIC Press Release No.71 dated 03.12.2018)

Total refund applied Rs.97,202 crores
Total GST refund disposed Rs.91,149 crores
Disposal rate 93.77%

IGST Refunds

Total refund applied Rs.50,928 crores
Total GST refund disposed Rs.48,455 crores
Disposal rate of IGST Refunds 95%

Recent Press Releases

  • GST on Constructed Properties

[CBIC Press Release No.74 dated 08.12.2018]

CBIC has clarified on effective tax rates on complex, building etc that:

> GST on sale of complex or building or ready to move in flats shall not be applicable where sale takes place after the issuance of the ‘Completion Certificate’ by the ‘Competent Authority’.

> The GST is applicable on sale of under-construction property or ready-to-move-in flats where the Completion Certificate has not been issued at the time of sale.

> Further, housing projects in approved affordable housing schemes shall carry a concessional GST @ 8 percent.

> For non-affordable housing projects, because of ITC being available, costs should not go up, as benefit of lower taxes ought to be passed to buyers in terms of anti-profiteering provisions.

  • Due date for filing ‘GSTR-9’, GSTR-9A ‘GSTR- 9C’ extended

[CBIC Press Release No.73 dated 07.12.018 vide Order No. 1/2018-Central Tax dated 11.12.2018]

The CBIC has extended the due date for filing the GST Audit related forms – FORM GSTR-9, FORM GSTR-9A and FORM GSTR-9C from 31st December, 2018 to 31st day of March, 2019.

> Form GSTR 9 is an annual return to be filed once in a year by the registered taxpayers under

> Form GSTR 9A should be filed by the persons registered under composition schemeunder GST.

> Form GSTR 9C should be filed by the taxpayers whose annual turnover exceeds Rs  2 crores during the financial year

> The requisite FORMs shall be made available on the GST common portal shortly.

♦ Portal Updates

  • New Functionalities on GST Portal

> Assessment & Adjudication- Rectification of mistake in the order by the Adjudicating Authority

Errors or mistakes apparent on face of record can be rectified by the Adjudicating Authority on the basis of suo-moto rectification or upon receipt of application from taxpayer, within a period of six months from the date of issue of such order. Rectification request can be given by taxpayer within 3 months from date of issue of order.

(Section 161 of the CGST Act, 2017, Rule 142 of the CGST Rules, 2017 & Form GST DRC-08)

> Assessment & Adjudication- Cross empowerment of Tax Officials, within a State/ UT

The validation that State officer can assess taxpayers assigned to the concerned State only (& vice versa) has been removed. Thus CBIC officials can now do assessment of a taxpayer assigned to a State (& vice versa), within the jurisdiction of a State/ UT. CBIC or Model I States can now upload assessment orders, through API, irrespective of whether taxpayer is assigned to Centre or State/UT. Summary of the order in Form GST DRC07, can now be uploaded by Model I States and CBIC officers through G2G APIs. Similarly, Model II State officers can also make assessment orders and upload summary in Form GST DRC07, of the taxpayers assigned to Model I States or Centre.

If the reply is filed consequent to a SCN or any notice, the same should be made available to the authority which has issued the said SCN or notice. Thus, if Form GST DRC-03 is filed consequent to issue of SCN, the same should be made available to the authority which has issued the same for issuance of Drop Proceedings order in Form GST DRC-05.

Proceedings relating to scrutiny, summary assessment, determination of tax (73, 74), tax collected but not paid (76) and penalty etc. can be launched by any of the authority (State or Centre). Assessment of remanded cases will be handled by the authority which has issued the original order. Rectification of the order will also be carried out by the same authority.

Form GST DRC-07 consequent to enforcement proceedings u/s 129 or 130 can be uploaded by any authority irrespective of the registration approval authority of the taxpayer. For example, if a vehicle impounded by State authority and the taxpayer is assigned to Centre, in such cases, State authority can now upload the details of demand through GST DRC-07.

Liability Register will be updated for Model I States and CBIC through API whereas for Model II States, the access will be directly through the portal.

> Advance Ruling-Rectification of mistake in the order by the advance ruling authority or its appellate authority

If there is any mistake in the order passed under Section 98 or 101, by the authority or the appellate authority, which is apparent from the record, the authority or the appellate authority can pass a rectification order for rectifying such mistake, if such mistake is noticed by the authority or by the appellate authority themselves or if such mistake is brought to its notice by the concerned or the jurisdictional officer or by the applicant/appellant, within a period of six months from the date of the order. The applicant/appellant can make an application to the authority/ appellate authority for rectification of the mistake. (Section 102 of the CGST Act, 2017)

> Advance Ruling-Appeal against the Advance Ruling given the Authority

Once an Advance Ruling is issued by the authority and if the applicant is aggrieved by such an advance ruling, they can file appeal before the appellate authority in Form GST ARA-03. (Section 100 of the CGST Act, 2017)

> GST Practitioner-Preparation of Form GST APL-01 by GSTP, on behalf of taxpayer

Taxpayers can now select a GST Practitioner, to prepare an appeal in Form GST APL-01, to be filed by them. The GSTP can save draft of the appeal application form. The taxpayer and GSTP would be able to continue on the saved drafts of the appeal application form, saved by either of them.

> Payment -Over the Counter (OTC) Payment

Presently, Normal GSTINs, who has selected their Constitution of Business as “Government Department” or “Others” in Registration Form, are able to create an OTC challan of more than Rs 10,000, in a Tax Period, on GST Portal. But other Users (irrespective of their Constitution of Business) are not able to create an OTC challan of more than Rs 10,000, in a given Tax Period, on GST Portal.

Now, every taxpayer can create an OTC challan of more than Rs 10,000, in a given Tax Period, on GST Portal, in both prelogin & post login modes (System check to limit OTC challan amount has been removed).

> Prosecution & Compounding- Intimation about initiation of Prosecution Proceedings

Tax official can (outside the system) file a complaint with the First Class Judicial Magistrate/Court for prosecution against a taxpayer. Taxpayer will be notified about initiation of prosecution on his dashboard and via Email / SMS.

> Refund-Filing of Monthly Refund applications by Quarterly Return filers now available on GST Portal.

Taxpayers who are filing quarterly GSTR 1 Return can now file refund application for a month (in a quarter). This implies that the taxpayer can file monthly refund application also. However, Form GSTR 1 & Form GSTR 3B for that particular period must be filed.

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