I. Circular No. 89/08/2019-GST dated 18.02.2019

♥ After observing that the majority of tax payers are not reporting details in Table 3.2 of GSTR-3B, the circular has been issued  to clarify that the tax payers has to fill the details of supplies to unregistered dealers mandatorily in table 3.2 of GSTR-3B and also in table 7B of GSTR-1.

♥ It is mentioned that such disclosure is essential for distributing the funds to respective states.

♥ It is also clarified that the non-compliance would lead to levy of penalties u/s 125 of the act.

II. Circular No. 90/09/2019-GST dated 18.02.2019

♥ After observing that few of the tax payers (majority of banking, insurance and telecom sectors) are not specifying the Place of supply (POS) for the IGST invoices in accordance with Rule 46(n), the circular has been issued to clarify that the POS and name of the state as a mandate.

♥ It is also clarified that the non-compliance would lead to levy of penalties u/s 122 or 125 of the act.

III. Circular No. 91/10/2019-GST dated 18.02.2019

♥  In Circular 46/2017 Customs Dated 24.Nov.17, it was clarified that,

  • “IGST” shall be paid on supplies made during the period for which the goods are in customs bonded ware house and
  • “Customs+IGST” shall be paid at the time of removal from customs bonded warehouse.

♥ In Circular 3/2018 IGST Dated 25th May, 18, it was clarified that, considering the amendments in the Customs Tariff act,

  • There shall not be any tax required to be paid on supplies made during the period for which the goods are in customs bonded ware house and
  • “Customs+IGST” shall be paid at the time of removal from customs bonded warehouse
  • This shall be applicable w.e.f. 01.Apr.18.

♥ Further, the department has noticed that, from Jul’17-Mar’18,

  • Many assesses considered supplies made during the period for which the goods are in customs bonded ware house as Intra state and
  • There was no provision in GSTR-1 for changing POS for such B2B supplies. If the supplier and recipient are in same state, it was considered as Intra-state sales.

♥ Therefore, the department hereby clarified that, such errors if any, made during the period Jul’17-Mar’18 shall be condoned and considered as proper compliance of the law.

♥  It would also imply that, if any person missed to pay tax on such supplies, same shall be paid.

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8 Comments

  1. Kumar says:

    Hi, Can u please your thorough update on change in RCM on URD provision, earlier it was exempted till 30.09.2019 and some specified services are there on which RCM need to pay, now what change is there to that provision ?

    1. Vamshi says:

      Hi Kumar, w.e.f. 01.Feb.2019, the act was amended w.r.t. this RCM on URD. It says, RCM on URD will be applicable only for those persons/transactions which will be notified by govt.
      That means, unless they notify, it will not be applicable.
      As on date, they have notified only builders to pay tax under RCM for un regd. procurement w.e.f. 01.Apr.19.
      Therefore, RCM on Unregistered procurement will not be applicable to any regd. person, other than builders.

    1. Vamshi says:

      Dear Hardik.
      Thank you for reading the article and posting your comment.
      Please refer to the format of GSTR-1 prescribed in the rules, not the one that appears online.
      Link for format: http://www.cbic.gov.in/htdocs-cbec/gst/01.02.2019_CGST_Rules-2017(Part-B_Forms).pdf
      In Notifications/Rules/Circulars, the referecne shall be made to the tables that appear in the forms prescribed in the rules, but not to the one that appears online.
      In GSTN, the tables are merged/de-merged so that it will be easy for the tax payer to feed the data.
      Link for circular:
      http://www.cbic.gov.in/resources//htdocs-cbec/gst/circular-cgst-89.pdf;jsessionid=A69D3573BB2E1FBE429863040A91BE70

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