Summary of GST Circulars and Notifications issued in April 2019

Objective:

The objective of this document is to summarize all the updates of GST (Notifications, Circulars, other amendments and updates) in one place. 6 Central tax notifications, 1 corrigendum for the Central tax rate notification, 5 Central tax circulars and 1 Removal of difficulty order were issued during the month Apr’19.  The same are being summarized below.

1.0 Notifications:

I. Notifications No. 17/2019-CT dated 10.04.2019:

Extended the due date for furnishing of FORM GSR-1 for the period March 2019 till 13.Apr.19.

II. Notifications No. 18/2019-CT dated 10.04.2019:

Extended the due date for furnishing of FORM GSR-7 for the period March 2019 till 12.Apr.19.

III. Notifications No. 19/2019-CT dated 22.04.2019:

Extended the due date for furnishing of FORM GSR-3B for the period March 2019 till 23.Apr.19.

IV. Notifications No. 20/2019-CT dated 23.04.2019:

1) Revocation of Cancellation -Rule 23–n–

In case of revocation of cancellations, all the returns relevant from the effective date of cancellation till the date of revocation should be filed within 30 days from the date of order of revocation.
Refer: Order No. ROD-5/2019 and Circular No. 99/18/2019

2) Returns – Rule 62 – Quarterly payment and Annual return for composition scheme:

• Applicability extended to service providers opted for 6% rate without ITC (Composition scheme)
• Heading and other sub rules have been amended to include the 6% scheme along with the regular composition scheme.
• FORM GST CMP-08 should be filed to pay self assessed tax quarterly by 18th of following month
• FORM GSTR-4 should be filed for the Financial year by 30th Apr 
• In case of change to regular scheme,
  • CMP-08 should be filed for the quarter, for the period under comp.scheme  – by 18th of following quarter
  • GSTR-4 should be filed for the financial year, for the period under comp.scheme – by 30thApr.
• The format for FORM GST CMP-08 is notified. Simple form with one table asking for the taxable value of Turnover & Inward RCM, Tax and Interest payable and paid details.

V. Notification No. 21/2019-CT dated 23.04.2019:

Persons following above procedure of Quarterly FORM GST CMP-08 and annual FORM GSTR-4 shall be deemed to have complied the provision of Sec 37 & 39
(37-Stmt of outward supplies & 39 – Returns)

VI. Notification No. 22/2019-CT dated 23.04.2019:

Rule 138E has been notified w.e.f. 21.Jun.19
138E – persons who has not filed returns for 2 consecutive tax periods shall not be allowed to issue or to be mentioned as supplier / recipient of goods in the E-way bill.

2.0 Central Tax Rate Notifications:

I. Corrigendum for Notifications No. 3/2019-CTR dated 25.04.2019:

A corrigendum has been inserted for the rate notification 3/2019-CTR (new rate for real estate), to rectify the typographical errors, such as full rate of “18%” was mentioned instead of “9%” CGST rate and “tax” was mentioned instead of “Central tax”

3.0 Circulars:

I. Circulars No. 97/16/2019-CT dated 05.04.2019:

1) Opting for 6% the scheme – Registered persons:

• A registered person who wants to opt for payment of central tax @ 3% (composition scheme for services), should intimate the same to the department by filing FORM GST CMP-02.
• The same should be filed by 30.Apr.19
• The category to be selected is “Sl.no. 5(iii) – (“Any other supplier eligible for composition levy”)

2) Opting for 6% the scheme – New registrations:

• Should select Sl. no. 5 and 6.1(iii) of FORM GST REG-01 at the time of filing of application for registration.

3) Other points

• Option exercised in a state, deemed to be the option exercised for the registrations of all other reg.ns of that PAN.
• Composition rules shall be applicable to the persons opting for this 3% rate of tax.

II. Circular No. 98/17/2019-CT dated 23.04.2019:

1) Rule 88A, order of utilization of credit:

In view of frequent changes in the order f utilization of ITC, It was clarified to

• Use IGST ITC to pay IGST.
• Exhaust Balance to pay CGST or SGST in any order & proportion before using CGST/SGST.

2) Portal is yet to be updated with this new mechanism, till that time, follow the portal, it will not be considered as a non-compliance.

III. Circular No. 99/18/2019-CT dated 23.04.2019:

In case of revocation of reg.n cancelled due to non-compliance,

a. Before applying for revocation:

File all the returns for which the due date falls before the effective date of cancellation

b. After receiving order for revocation: 

File all the returns to be filed from date of cancellation up to date of revocation within 30 days from dt. of order of revocation.
Examples were given for explaining the same.

Note:

• Refer Circular No. 95/2019, the department has asked officers not to issue a fresh registration for the registrations cancelled due to non-compliance.
• Thereby, such persons have to make good all previous non-compliance to re-activate their GSTINs.
  Refer: Order No. ROD-5/2019 and Notification No. 20/2019-CT

IV. Circular No. 100/19/2019-CT dated 30.04.2019:

Sub: Exemption for the charges collected for Seed certification tags:

1) Points to note:

a. The process of the seed certification involves different steps, last step is sealing & tagging

b. The fees also collected in different stages

c. Process followed in Tamilanadu & Uttarakhand is discussed in the circular.

d. Seed certification is done as per the Seeds act,1966.

e. Entry no. 47 of 12/2017 provides exemption for “services by Central/State Governments by way of testing/certification relating to safety of consumers and public at large, required under any law”.

2) Clarifications:

a. Though the fees collected at multiple stages, It should be treated as composite supplyof Seed certification.

b. Charges for certification by Govt (Seed certification Agency): exempted as per the above referred entry of 12/2017.

c.  Therefore entire fee, collected at different stages, including the amount collected for the tags is also exempt.

d. Exemption shall be applicable for agencies of all the statesincluding Tamilanadu & Uttarakhand.

e. Tags used for the certification – supplied by other Govt. depts. or Manufacturers to certifying agency: Taxable

V. Circular No. 101/20/2019-CT dated 30.04.2019:

Issue:

If the premium is decided upfront, but paid in instalments, Can we claim the exemption referred in Sl. 41 of 12/2017?

Clarification:

Exempted –  Irrespective of whether such upfront amount is payable or paid in one or more instalments, provided .

Note: Entry 41 provides for the exemption on the upfront amount paid by the entities to the govt. for long-term lease.

[Upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable in respect of service by way of granting of long term lease of thirty years, or more) of industrial plots or plots for development of infrastructure for financial business, provided by the State Government Industrial Development Corporations or Undertakings or by any other entity having 50 per cent. or more ownership of Central Government, State Government, Union territory to the industrial units or the developers in any  industrial or financial business area.]

4.0 Orders:

I. Order No. ROD-5/2019-CT dated 23.04.2019:

For any registered person, if the

• department has cancelled registration due to continuous non-compliance u/s 29(2) and
• cancellation order was passed before 31.Mar.19.and
• he couldn’t apply for revocation within 30 days (Sec 30(1) or appeal @ 107(1))

Such persons can file the application for revocation of cancellation by 22.Jul.19

Refer: Notification No. 20/2019-CT and Circular No. 99/18/2019

5.0 Others:

I. Interest for delay in payment should be calculated on the Gross liability-HC-TS:

• In case of M/s MEGHA ENGINEERING AND INFRASTRUCTURES LTD, the Telangana High court had held that the interest liability under GST should be calculated on the gross liability but not on the net liability.
• It was mentioned that as per the law, the payment shall be deemed to be made only after offsetting the liability with cash/credit.
• It was explained as, in bank, the balance in the savings account shall not be deemed as the amount apportioned for repayment of the loan, unless the savings account is debited and the loan account is credited.

There all the registered persons, who ever had a delay in filing the returns have to pay the interest @ 18% p.a. on their gross liability. If not, the auditors also may have to report this in their 9C.

Thank you for the patient reading. Hope this document has added value to your knowledge.

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Disclaimer:

This document had been written to provide updates under GST in a simple manner. The author shall not be responsible for any of the decision made on the basis of the contents of this document.