Dr. Sanjiv Agarwal, FCA, FCS
We thought that first GST audit under GST regime would be over by the August end but it was not to be, the last data stands extended to 30th November, 2019 now. For whatever reasons, most of the taxpayers and professionals are not happy at this approach and looking at deferring permanent solution, while taking the entire system for a ride. On the contrary, Income tax returns have been filed very smoothly and with record return filings.
Our economy is not well as indicated by numbers. Most of the industry sectors are in red and recession reflecting lower turnover, production and unemployment. There is slowdown in various section of economy with subdued consumption despite the efforts, in bits and pieces, by the Government. Former Prime Minister, Dr. Man Mohan Singh has also now echoed bad fiscal and economic management due to demonetization and poor GST implementation as key factors.
The GST collection in August, 2019 has dropped down to Rs 98,902 crore from 131.02 lack crore in July, 2019. This is the second occasion in current fiscal when GST collection has fallen below Rs. 1 lakh crore.
CBIC has issued new notifications 38 to 41, all dated 31 August, 2019 waiving filing of Form ITC-04 for Financial year 2017-18 and 2018-19, extending last date for GSTR-7 for July 2019 for Form GSTR-1 and GSTR-6 if filed by 20th September, 2019.
♦ Filing of FORM ITC-04 not required for F.Y. 2017-18 & 2018-19
> FORM GST ITC-04 is required to fill by a principal manufacturer in respect of goods dispatched to a job worker or received from a job worker or sent from one job worker to another job worker.
> CBIC has waived off filing of Form ITC-04 for the period July, 2017 to March, 2019
> However, the details of all the challans in respect of goods dispatched to a job worker in the period July, 2017 to March, 2019 but not received from a job worker or not supplied from the place of business of the job worker as on the 31st March, 2019, is required to be furnish in serial number 4 of FORM ITC-04 for the quarter April-June, 2019.
♦ Section 103 of the Finance (No. 2) Act, 2019
> Section 103 of the Finance (No. 2) Act, 2019 provides insertion of sub section (8A) that in section 54 of the Central Goods and Services Tax Act according to which the Government may disburse the refund of the State tax in such manner as may be prescribed
> CBIC has notified 1st day of September, 2019 as the date on which the provisions of section 103 the said Act, shall come into force.
♦ Extension in due date of Form GSTR-7
> Due date of filing Form GSTR-7 for the month of July, 2019 has been extended to 20.09.2019 in the specified districts of the States – Bihar, Gujarat, Karnataka, Kerala, Maharashtra, Odisha and Uttarakhand.
> However, registered persons having principal place of business in the State of Jammu and Kashmir shall furnish Form GSTR-7 for the month of July, 2019, on or before the 20th September, 2019.
♦ Late fees for GSTR1 and GSTR-6 waived off
> CBIC has waived off late fee payable under section 47 of the Central Goods and Services Tax Act, 2017 for Form GSTR-1 and GSTR-6 for the month of July, 2019 provided such returns are furnished on or before the 20th September, 2019:
√ for the taxpayers having principal place of business is in the State of Jammu and Kashmir, and
√ for taxpayers in the specified districts of the States – Bihar, Gujarat, Karnataka, Kerala, Maharashtra, Odisha and Uttarakhand.
♦ Extensionin due date of GSTR-3B
> Due date for filing monthly return GSTR-3B for the month of July, 2019 has been extended as follows:
|S.No||Applicable to||Extended due date|
|1.||Registered persons whose principal place of business is in the specified districts of Bihar, Gujarat, Karnataka, Kerala, Maharashtra, Odisha and Uttarakhand||20.09.2019
|2.||Registered persons whose principal place of business is in the State of Jammu and Kashmir||20.09.2019|
|3.||All other taxpayers||22.08.2019|
♦ Annual Return : Date extended once again
> Last date to file GSTR-9C for the Financial Year 2017-18 has been extended from 31.08.2019 to 30.11.2019 vide Order No. 07/2019- CT dated 27.08.2019.
> Last date to file Annual Return for the Financial Year 2018-19 is 31.12.2019.
> Last date for claiming Input Tax Credit (ITC) for the Financial Year 2018-19 is 30.09.2019.
[Source: Order No. 07/2019- CT dated 27.08.2019]
♦ IGST refund revised mechanism
> The revised IGST refund mechanism provide for interim solutions in case where records could not be transmitted to ICEGATE to verify the IGST payments for goods exported out of India in certain cases, like in case of mismatch between GSTR-1 and GSTR-3B.
> In order to provide resolution to the problems, it is now provided that the comparison as provided in Para 3A and B of Circular 12/2018-Customs would be done between the cumulative IGST Payments in GSTR-1 and GSTR-3B for the period April, 2018 to March, 2019.
> A CA certificate evidencing no discrepancy between the amount of IGST refunded and actual amount of IGST paid on exports for the period April, 2018-March, 2019 shall be furnished by 30th October, 2019
[Source: CBIC Circular No. 25/2019-Customs dated 27.08.2019]
◊ GST collections in the month of August, 2019
> GST collection in the month of August dropped below Rs 1 lakh crore mark to Rs 98,202 crore. The tax collection was at Rs 1.02 lakh crore in July this year. The August mop-up was, however, 4.5 per cent higher than the Rs 93,960 crore collected in the same month last year.
> Central GST collections stood at Rs 17,733 crore, State GST Rs 24,239 crore, and Integrated GST Rs 48,958 crore (including Rs 24,818 crore collected on imports) during August this year.
> Cess collection stood at Rs 7,273 crore (including Rs 841 crore collected on imports).
> The number of GSTR 3B Returns (summary of self-assessed return) filed for the month of July up to end-August totalled 75.80 lakh.
> Gross GST collections during April-August stood at Rs 5,14,378 crore, up from Rs 4,83,538 crore in the corresponding period of the last fiscal. This shows a growth of 6.3 per cent during the five months of the current fiscal.
[Source: Economic Times Dated 29.08.2019]
♦ Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 made applicable from 01.09.2019
> The Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019,(SVLDRS) application has been made available online at https://cbic-gst.gov.in from 01.09.2019. The declaration under Section 125 of the Finance Act, 2019 can now be made electronically in Form SVLDRS-1 by the declarant on GSTN portal.