It is a fact that tax revenues are presently under stress. Ministry of Finance recently held an interactive session with trade and professional bodies to understand the GST concerns being faced and to simplify the forms and filing processes. It now plans to have massive out-reach programme throughout the country on 7th December, 2019.
20 November, 2019 was to last date to file Form GSTR 3B for month of October 2019. The data released by CBIC indicate that returns filed on last two days were 11.52 lakh and 14.36 lakhs where as cumulative figure till 20.11.2019 is 60.91 lakh indicating that bulk of returns are filed on last 2 days or so, of course putting tremendous pressure on the GST network resulting in GSTN system even not functioning for some time on last day. CBIC has explained that system is working properly and that any online system has to have a load threshold and for GST return filing system it is at 1.5 lakh returns filing at a particular moment. If this threshold is reached then the site shows a message asking the taxpayer to wait for his turn in a few minutes. Infact it actually advised the taxpayers not to wait till last three days to file the returns. The last date is not the due date of filing but the last date upto which it could be filed.
CBIC has also clarified that salaries are not subject to GST and no GST has been demanded on salaries paid to CEOs or employees. CBIC said that the media reports in this regard alleging that tax authorities want to impose GST on salaries paid to employees is factually incorrect and misrepresents tax authorities. Offices of an organisation in different States are regarded as distinct persons under Section 25 of CGST Act. Hence, what is taxable under GST is supply of goods and services by the head office to its branch office/s and vice versa. Any tax charged on such supplies is available to the recipient as input tax credit. This is not any additional cost to the organisation. Also, it is a worldwide practice under GST laws.
Recently, Punjab & Haryana High Court has pronounced a judgment that no arrests can be made of Chartered Accountants or Advocates who had filed the returns but are not a beneficiary or part of any fraud without there being any corroborative evidence. [Akhil Krishan Maggu & Anr. v. Deputy Director, Directorate General of GST Intelligence & Ors. [CWP No.24195 of 2019(O&M) dated 15.11.2019 (P & H High Court) (2019)].
CBIC has issued Notification Nos. 52 to 62 and Circular Nos. 124 to 126 during the last 15 days.
√ Due date extension of FORM GSTR-9 and 9C
CBIC has extended the due dates of filing annual return in Form GSTR-9 and reconciliation statement in Form GSTR-9C for F.Y. 2017-18 to December 31, 2019 and for F.Y. 2018-19 to March 31, 2020.
√ Due date of filing GSTR-1 for registered persons in J & K extended
CBIC has extended the due date of filing GSTR-1 for the quarter July, 2019 to September, 2019 till November 30, 2019 and for registered persons filing GSTR-1 monthly, due date for each of the months from July, 2019 to September, 2019 has been extended till November 15, 2019, for registered persons having principal place of business in the State of Jammu and Kashmir.
√ Due date of filing GSTR-3B for registered persons in J & K extended
CBIC has extended the due date of filing GSTR-3B for the months July, 2019 to September, 2019 till November 20, 2019 and for registered persons who are required to file GSTR-7 due date for the months from July, 2019 to September, 2019 has been extended till November 15, 2019, for registered persons having principal place of business in the State of Jammu and Kashmir.
Amendments in and Simplification of the annual return / reconciliation statement
√ CBIC Notifications issued in respect of Jammu & Kashmir and Ladakh
√ Migration Plan from J & K State to Union Territories
As per Jammu and Kashmir Reorganization Act, 2019, the State of J & K has been divided between Union Territories, namely, UT of J & K and UT of Ladakh. Accordingly, CBIC notified the transition plan with respect to J & K reorganization w.e.f. 31.10.2019. It has prescribed a special procedure for those persons whose principal place of business or place of business lies in the erstwhile State of Jammu and Kashmir till the 30th day of October, 2019; and lies in the Union territory of Jammu and Kashmir or in the Union territory of Ladakh from the 31st day of October, 2019 onwards. This special procedure is to be followed till 31st December 2019.
√ Optional filing of annual return under Notification No. 47/2019- CT dated 09.10.2019
Notification No. 47.2019-CT dated 09.10.2019 provided for special procedure for those registered persons whose aggregate turnover in a financial year does not exceed two crore rupees and who have not furnished the annual return under section 44(1) / Rule 80(1) of section 44 of the said Act read with sub-rule (1) of rule 80 of the Central Goods and Services Tax Rules, 2017. It provided that the annual return shall be deemed to be furnished on the due date if it has not been furnished before the due date for the financial year 2017-18 and 2018-19, in respect of those registered persons.
CBIC has issued certain clarifications to ensure uniformity in implementation of law, viz,
(i) For persons paying tax u/s 10, the tax payers under composition scheme, may, at their own option file FORM GSTR-9A for the financial years 2017-18 and 2018-19 before the due date. After the due date of furnishing the annual return for the year 2017-18 and 2018-19, the common portal shall not permit furnishing of FORM GSTR-9A for the said period.
(ii) For persons paying tax u/s 51 or 52, the tax payers, may, at their own option file FORM GSTR-9 for the financial years 2017-18 and 2018-19 before the due date. After the due date of furnishing the annual return for the year 2017-18 and 2018-19, the common portal shall not permit furnishing of FORM GSTR-9 for the said period.
(iii) If any registered tax payer, during course of reconciliation of his accounts, notices any short payment of tax or ineligible availment of input tax credit, he may pay the same through FORM GST DRC-03.
√ Fully electronic refund process through GST – RFD-1 and single disbursement
√ Applicability of GST rate on Job work