The Government has released Circular no. 137/07/2020-GST dated 13th April 2020 wherein following matters have been clarified:

1. Cancellation of Goods and Service Contract

The treatment under GST have been clarified vide above referred circular in respect of certain transactions of supply of goods and service where the same gets cancelled due to any reason. The same is summarised as follows:

Type of Supply First Event Document issued at the time of first event Cancellation of service or goods return Treatment under GST
Service Advance received Tax invoice issued before supply of service Contract cancelled before supply of service a)    Credit note u/s 34 is to be issued for reduction in liability and the same shall be declared in monthly return.

b)    Where there is no output liability against which a credit note can be adjusted, file a claim under “Excess payment of tax, if any” through FORM GST RFD-01.

Service Advance received Receipt voucher Contract cancelled before supply of service a)    Issue refund voucher u/s 31 (3) (e) of the CGST Act read with rule 51 of the CGST Rules and apply for refund of GST paid on such advances by filing FORM GST RFD-01 under the category “Refund of excess payment of tax”.
Goods Goods supplied Tax invoice Goods returned a)    Credit note u/s 34 is to be issued for reduction in liability and the same shall be declared in monthly return.

b)    Where there is no output liability against which a credit note can be adjusted, file a claim under “Excess payment of tax, if any” through FORM GST RFD-01.

2. Extension for filing of LUT

The time limit for filing of LUT for the year 2020-21 shall stand extended to 30.06.2020 and taxpayers may quote the reference no of the LUT for the year 2019-20 in their export documents.

3. Clarification with respect to TDS related issue

Along with due date for filing of FORM GSTR-7, the date of deposit of TDS has been extended till 30.06.2020 without any interest.

4. Deferment of filing of refund claim

Where the date for filing of refund claim was expiring between 20.03.2020 to 29.06.2020, the due date for filing an application for refund has also been extended till 30.06.2020.

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