The objective of this document is to summarize all the updates of GST (Notifications, Circulars, other amendments and updates) in one place. 7 Central tax notifications, 8 Central tax Rate notifications, 5 Central tax circulars, 1 Order, 2 Removal of difficulty orders were issued during the month of Mach 2019. The same are being summarized below.

Page Contents

1.0 Central Tax Notifications:

I. Notification No. 10/2019-Central tax dated 07th March 2019:

a. Notification No. 10/2019 was issued to Increase in limit for compulsory registration for supplier of Goods from 20L to 40L e.f. 01st April 2019.

b. Effectively, below are the conditions for being eligible for this benefit:

  • Not a service provider
  • Not having any inter-state supplies
  • Not a supplier of Ice cream and other edible ice, whether or not containing cocoa, Pan masala, Tobacco and Tobacco substitutes
  • Not liable for compulsory registration referred u/s 24 of CGST Act, 2017.
  • Persons who has voluntarily applied for registration
  • Doesn’t have any presence in below states
Arunachal Pradesh Manipur Meghalaya Mizoram Nagaland
Pondicherry Sikkim Tripura Telangana Uttarakhand

II. Notification No. 11/2019-Central tax dated 07th March 2019:

c. Notified the due date for quarterly GSTR-1 for Apr’19-Jun’19 as 31st Jul 2019

III. Notification No. 12/2019-Central tax dated 07th March 2019:

d. Notified the due date for monthly GSTR-1 for Apr’19-Jun’19 as 11th of the following month.

IV. Notification No. 13/2019-Central tax dated 07th March 2019:

e. Notified the due date for monthly GSTR-3B for Apr’19-Jun’19 as 20th of the following month.

Note: From the above notifications (11, 12& 13), it appears that the department is planning to implement the new return formats w.e.f. Jul’19 onwards.

V.  Notification No. 14/2019-Central tax dated 07th March 2019:

f. Notification No. 14/2019 was issued to increase the threshold limit for composition scheme for supplier of Goods from 1Cr to 1.5Cr. w.e.f. 01.Apr.19.

g. To opt for Composition scheme for FY 19-20,

    • Taxpayers should fill CMP-02 before 31-03-19 to opt in.
    • Stock declaration in ITC-03 should be filed before 30-09-19.

VI. Notification No. 15/2019-Central tax dated 28th March 2019:

h. Extended the due date for ITC-04 (Quarterly Return for the Job wok) for the period Jul’17-Mar’19 to 30th June 2019.

VII. Notification No. 16/2019-Central tax dated 29th March 2019:

This notification has been issued to amend the rules in accordance with the recent changes in the law.

i. Reversal of credit for flats sold after OC – Rule 42 & 43:

  • Rule 42 & 43 has been amended w.e.f. 19 to set the new procedure for reversal of credit related to construction services, where certain flats of the project are / would be sold after obtaining the Completion Certificate or Occupancy certificate.
  • In short, the turnover based procedures have been shifted to the area based procedure.
  • Thereby, the supplier has to reverse the credit on monthly basis in the proportion of estimated SFT, which could be sold after OC and the same to be trued up at the time of completion of the project.
  • Projects, which have not been completed up to 31.03.2019 has to follow such area based reversals, where as the projects which has completed on or before 31.03.2019 has to follow earlier rule 42 and 43 reversals (based on turnover).

j. Rule 88AOrder of utilization of credit has been inserted in accordance with the amendment act. There by the credit utilisation shall be as followed:

Type of liability Order of the credit to be used
IGST IGST CGST SGST
CGST IGST CGST
SGST IGST SGST

k. Rule 100 – Assessment in certain cases has been amended to include the forms for uploading the summary of the Order or the Assessments passed in FORM GST DRC-01 & 07.

l. Rule 142 – Notice and order for demand of amounts payable under the act has been amended to widen the scope of applicability of the Summary of the Assessment orders / Replies..Etc in FORM GST DRC-01, 03,06 and 07.

m. Also formats of few forms DRC-01, 02, 07, 08, ASMT-13, 15 and 16 have been amended w.e.f. 04.Apr.19

2.0 Central Tax Rate Notifications:

I. Notification No. 2/2019-Central tax (Rate) dated 07th March 2019:

n. Notification No. 14/2019 was issued to provide an indirect composition scheme for Supplier of services whose turnover of previous year is up to 50L with 6% rate and no ITC w.e.f. 01st April 2019.

o. However, few conditions have been prescribed for the same. Most of them are similar to the conditions for the eligibility of the compositions scheme for goods.

Note:

  • Notification No. 9/2019-CTR dated 29th march 2019 has specified that the rules applicable to compositions scheme shall be applicable for this special rate.
  • Thereby the supplier opting for this lower rate should submit CMP-02 before 31-03-19 to opt in and stock declaration in ITC-03 should be filed before 30-09-19.

II. Notification No. 3/2019-Central tax (Rate) dated 29th March 2019:

This notification has been issued to prescribe the new rates for the Real estate sector.

p. The summary of the same are as followed:

Type of apartment Category New Rate of tax Comparison effective rate after 1/3rd ded.n Conditions
Old rate New rate
Residential Construction of
>affordable residential apartments
>by a promoter in RREP / REP – to a buyera. Newb. Ongoing – not opted for old rates
1.50% 8% or 12% 1% i. Tax Should be paid in Cash

ii. No ITC – To be reported in GSTR-3B- 4D(2)

iii. Reverse the credit availed, relevant for future Income

iv. 1/3rd deduction for land value

v. Promoter includes Developer & Land owner

vi. 80% regd. Procurements

>Short fall – 18% RCM Payment on Fin.year basis – Return by 30th Jun.

>Cement URD – 28% RCM – Monthly basis>Capital goods URD – applicable rate, compulsory RCM 9(4)

vii. Affordable –

> Area – 60/90 sqm in Metro/non-metro and

> Gross value – <45L
vii. Tax should be paid on construction services provided to land owner

Viii. TOS for the above shall be at CC or OC whichever is earlier and the value will be the first sale value of similar flat sold near to date of JDA less land value (1/3rd)

viii. Landowner would be eligible for credit of tax charged by the developer.

Other than affordable Residential apartments of above category 7.50% 12% 5%
Commercial Construction of Commercial apartments by a promoter in RREP

a. New

b. Ongoing – not opted for old rates

7.50% 12% 5%
Residential Residential Ongoing project- Covered under 8% earlier Old affordable housing schemes & Opted for old rates 12% 8% 8% Option should be exercised by 10.May.19
Residential / Commercial > Commercial in REP / RREP

> Residential Other than those covered above & opted for old

18% 12% 12%

q. The tax treatment for the new transactions related to the land owner shall be as followed:

Service Parties involved Treatment
Development rights Land owner to Builder Residential: Exempted, if all the flats were sold before OC.
Otherwise, liable under RCM, on value in proportion of flats remained unsold as on date of OC.Commercial:Developer would be liable to pay GST under RCM
Construction services Builder to land owner Taxable
Construction services Land owner to Buyer Taxable if sold prior to OC

III. Notification No. 4/2019-Central tax (Rate) dated 29th March 2019

r. The exemption notification 12/2017 has been amended to include the services provided by the land owner to the developer by way of Transfer of development rights/ FSI/ Long term lease for the residential projects.

s. The above exemption shall be subject to the conditions that all the flats are sold prior to OC.

IV. Notification No. 5/2019-Central tax (Rate) dated 29th March 2019

t. The RCM notification 13/2017 has been amended to notify the services provided by the land owner to the developer by way of Transfer of development rights/ FSI/ Long term lease for the residential projects as specified services under reverse charge i.e. under Sec 9(3).

V. Notification No. 6/2019-Central tax (Rate) dated 29th March 2019

u. This notification has been issued to specify the time of supply for

    • discharging the liability under RCM on TDR/FSI/Long term lease received and
    • construction services provided to landowner
    • On or after 1st April 2019

would be the date of issuance of completion certificate or occupancy certificate whichever is earlier.

VI. Notification No. 7/2019-Central tax (Rate) dated 29th March 2019

v. This notification has been issued to specify that the builder shall be liable to pay tax under RCM on the following:

Type of Expense Rate of GST Value
Inputs & Input services other than cement 18%
(Notification No. 07/2019-CTR)
Short fall to 80%
Cement Applicable rate
i.e. 28%
All unregd. Procurements
Capital Goods Applicable rates All unregd. Procurements

Note: There is a small difference w.r.t. taxability of cement under RCM on short fall vs on entire unregistered procurements, between the Notification No. 3/2019 and Notification No. 7/2019

VII. Notification No. 8/2019-Central tax (Rate) dated 29th March 2019

w. This notification has been issued to prescribe the rate of tax for the shortfall Inputs & Input services other than cement as 18%.

VIII. Notification No. 9/2019-Central tax (Rate) dated 29th March 2019

x. This notification has been issued amend the notification no. 2/2019-CTR (composition scheme for service providers) to

    • Specify the credit reversal for the ITC on Inputs & Capital goods as on date of opting for the scheme in accordance with 18(4)
    • Specify the lapse of the credit balance after above reversal
    • Extend the applicability of Rules of Composition scheme of goods to the Special rate (Called as composition scheme) of services.

3.0 Circulars:

I. Circular No. 92/11/2019 Central Tax dated 07th Mar 2019:

Subject: Clarification on various doubts related to treatment of sales promotion schemes under GST – Reg.

Sl. No Issue Clarification
Free samples & Gifts
1 Free samples / gifts issued will amount to supply or not? > As per Sec 7(1)(a), the goods or services or both which are supplied free of cost (without any consideration) shall not be treated as “supply‟ under GST (except in case of activities mentioned in Schedule I of the said Act).

>Accordingly, it is clarified that samples which are supplied free of cost, without any consideration, do not qualify as “supply” under GST, except where the activity falls within the ambit of Schedule I of the said Act.

2 Whether the input tax paid on such goods shall be eligible for credit? > Sec 17(5)(h) provides that ITC shall not be available in respect of goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples.

> Thus, it is clarified that input tax credit shall not be available to the supplier on the inputs, input services and capital goods to the extent they are used in relation to the gifts or free samples distributed without any consideration

> Credit shall be eligible, only if the distribution of such goods are treated as Supply

Buy one get one free offers
3 Taxability and ITC w.r.t. The goods provided as free >It is not an individual supply of free goods but a case of two or more individual supplies where a single price is being charged for the entire supply. It can at best be treated as supplying two goods for the price of one.
> Taxability of such supply will be dependent upon as to whether the supply is a composite supply or a mixed supply and the rate of tax shall be determined as per the provisions of section 8 of the said Act
> ITC shall be available to the supplier for the inputs, input services and capital goods used in relation to supply
Discounts including ‘Buy more, save more’ offers
4 Whether the supplier can reduce the liability to the extent of discount?
If yes, is there any need for reversal of ITC?
> Discounts offered by the suppliers to customers shall be excluded to determine the value of supply provided they satisfy the parameters laid down in Sec 15.

> Supplier shall be eligible for ITC.

> In case of discounts through credit notes, the recipient shall be liable to reverse the credit.

Secondary discounts – Discounts not known at the time of supply
5 Whether supplier can issue credit note?
Whether the recipient shall be liable to reverse credit?
> Credit note referred u/s 34 can’t be issued, as the same is not known before making the supply.

> Financial credit note can be issued irrespective of any other conditions

>Supplier need not to reverse any credit in this regard. Note: The circular is silent on the ITC of the recipient. However, in one of the recent AARs, it is specified that the recipient has to reverse the credit, due to the non-payment.

II. Circular No. 93/12/2019 Central Tax dated 08th Mar 2019:

Subject: Nature of Supply of Priority Sector Lending Certificates (PSLC) – regarding

  • Trading of PSLCs shall be liable to GST @ 12% , the tax liability on the same has been shifted o the recipient w.e.f. 28.05.2018.
  • Nature of supply between banks should be treated as Inter-state supply. Therefore the Supplier (1st July 2017 to 27th may 2018) or the Recipient (from 28.05.18 onwards) shall be liable to pay IGST.
  • If any of the banks had already paid CGST/SGST or CGST/UTGST as the case may be, such banks for payment already made, shall not be required to pay IGST now.

III. Circular No. 94/12/2019 Central Tax dated 28th March 2019:

Subject: Clarifications on refund related issues under GST– Reg.

Sl. No Relevant for Issue Clarification
1 a. Person claiming refund of ITC under Inverted duty structure and

b. Reversed lapsed credit related to wooven fabrics, in view of Notification no. 20/2018-CTR dated 26.07.2018

Since the old credit is reversed in current month GSTR-3B and the GSTN has calculated the eligible refund for the month on the basis of net ITC, there is a shortfall in the refund processed. The balance can be availed in the current month RFD-01A under category of “Any other”
2 Liable to reverse lapsed credit related to wooven fabrics, in view of Notification no. 20/2018-CTR dated 26.07.2018 but not reversed. How to do that now? Do it through DRC-03
3 What are the consequences of delay? Interest @ 18% p.a. Should be paid from the due date of Aug’18 return till the date of reversing the same.
What is Notification No. 20/2018-CTR?

Earlier, vide Notification No. 5/2017-CTR, it was notified that the ITC on certain goods shall not be eligible for refund under inverted duty structure.
Later, vide Notification No. 20/2018 & Notification no. 5/2017 was amended to provide certain exclusions (wooven fabrics) w.e.f. 01.Aug.18. It was also specified that any credit balance w.r.t. such goods, as on 31st July 2017, shall lapse.

4 Merchant exporter,

a. Availing benefits of Notification No. 40/2017 and

b. Claiming refund of accumulated ITC

How to claim the refund of the credit accumulated in respect of transaction covered under notification no.  40/2017? a. Eligible as per Rule 89(4B)

b. The same should be claimed in RFD-01A, under category of “Any other”

c. Same should be supported by all documents require for “refund of unutilized ITC on account of exports without payment of tax”.

5 Cases where

a. Person submitted RFD-01A for refund of ITC under, credit ledger was debited
and

b. The ITC was re-credited due to the deficiency memo issued by officer

Such persons are unable to file the fresh refund application for the same period. a. Submit a manual application with rectifications under same ARN

b. Up on request form officer, debit the credit ledger using DRC-03

c. Up on receipt of that proof of debit, the proper officer shall process the refund

IV. Circular No. 95/13/2019 Central Tax dated 28th Mar 2019:

Subject: Verification of applications for grant of new registration

Issue:

  • Recently, the departmental officers has cancelled many registrations due to their non-compliance
  • Such persons should discharge all the pending liabilities and apply for the revocation of registration.
  • It is observed that many such tax payers are applying for fresh registration, instead of applying for revocation.

Clarification:

  • This circular has been issued to guide the departmental officers t cross check the registration applications properly, to ensure that no such tax payers are provided with a new GSTIN.

V. Circular No. 96/14/2019-Central Tax dated 28th March 2019:

Subject: Clarification in respect of transfer of input tax credit in case of death of sole proprietor – Reg

Issue:

  • Clarifications have been sought w.r.t.
    • Eligibility to transfer the credit and
    • The procedure in case of death of a sole proprietor

Clarification:

  • The credit transfer shall be eligible. The transferee / successor shall be liable to pay any tax, interest or any penalty due from the transferor in cases of transfer of business due to death of sole proprietor..
  • Transfer/change in ownership referred in Sec 18(3), 22(3), 29(1)(a) and 85(1) of the CGST act, includes the transfer or change in the ownership of business due to death of the sole proprietor.
  • Process:
    • New registration – Transferee / successor should get registered w.e.f. date of transfer
    • Cancellation of old registration – Legal heirs should apply for the cancellation in Form Reg-16
    • In both the cases, mention the reason as “death of sole proprietor”.
    • File ITC-02 in the registration required to be cancelled, before cancellation
    • Accept the ITC-02 in the new GSTIN.

4.0 Orders:

I. Removal Of Difficulty Order No. 3/2019-Central Tax dated 08th March 2019:

  • This removal of difficulties order has been issued to enable the service providers with special rate (i.e. 6% as composition scheme) to issue “Bill of Supply” in accordance with 31(3)(c) of CGST act.
  • Though Sec 31(3)(c) was referred the relevant notification 2/2019-CTR, the section is restricted for Sec 10 (Composition levy) only. Hence, this order has been issued to extend the same for the service providers referred above.

II. Order No. 2/2019-Central Tax dated 12th March 2019:

  • This order has been issued to appoint of common authority for certain specific GSTINs, for the purpose of exercise of powers under sections 73, 74, 75 and 76 of the CGST Act, 2017

III. Removal Of Difficulty Order No. 4/2019-Central Tax dated 29th March 2019:

  • This order has been issued to specify that the area of construction should be considered as the basis for calculating the proportion of credit attributable to taxable / exempt supplies covered under entry 5(b) of schedule II (i.e. Construction services).

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

Special thanks to Mr CA Hemanth kumar, for helping in the finalization of this article.

For feedback or comments, please write to [email protected]

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.

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Member Since: 18 Jun 2017 | Total Posts: 22
I have a blend of corporate and the professional experience. Post qualification, for the first 2 years (2015 & 2016), I worked for Infosys, Globally reputed Indian Software Company and for the next 2 years (2017 & 2018) in Hiregange & Associates (H&A), the firm known for it’s expe View Full Profile

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14 Comments

  1. JB says:

    Is this option has to be exercised by the builder/taxpayer can be rejected by the Tax authorities? OR it will be checked during routine scrutiny after the end of the tax period?

  2. JB says:

    Is this option has to be exercised with the builder can be rejected by the Tax authorities? OR it will be checked during routine scrutiny after the end of the tax period?

  3. Kamal Agrawal says:

    Summary Details at One Place is Very Convenient to know the recent Changes in the Month of March 2019. Thanks a Lot …..

  4. Vamshi says:

    Dear readers, in Notification No. 3/2019-Central tax (Rate) dated 29th March 2019, last category of the table (Residential / commercial), in second column, for the words RREP, consider it as RREP opted for old rate.

  5. Ali says:

    Please let me know whether a Eway bill is required for goods sold within the state of Maharashtra of value 53000 (including GST)

  6. udayakumar says:

    The Bill Number should be started with 001 from 01.04.2019 ?. Is it compulsory? Some dealers continuing with old bill Book (Hand Bill) what they are using continuously. Is it correct? Hand Bill accepted?

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