1. The forms for Annual return (GSTR-9) and Audit report (GSTR-9C) have been simplified by changing certain mandatory fields as optional
i. Changes in GSTR-9
General:
Simplifications for FY 17-18 and FY 18-19:
However, Tran-1 and Tran-2 related reversals should be disclosed in the tables i.e. 7F & 7G.
ii. Changes in GSTR-9C
General:
Simplifications for FY 17-18 and FY 18-19:
Comments:
The changes in Table 5 & 12 seems to defeat the basic purpose of GSTR-9C. Though it is made optional, if the unreconciled/unexplained differences are high, the probability of receiving the enquiries from the department would be high.
Hence, it is suggested to disclose proper reconciliations in 9C unless the other option is beneficial.
{Refer Notification No. 56/2019-CT, Date: 14th Nov 2019}
2. CBIC has mandated quoting of Document Identification Number (DIN) on all the communications issued by its officers w.e.f. 8th Nov,2019.
i. Objective:
The objective is to have transparency and accountability in indirect tax administration through widespread use of information technology.
This would create a digital directory for maintaining a proper audit trail of such communication.
Further, it would also provide the recipients of such communication a digital facility to ascertain their genuineness.
ii. Applicability:
Following are the cases for which the DIN has been mandated now:
by any officer of CBIC, to any tax payer or other person
It is also specified that the DIN shall be mandated for all other communications, and also there is a plant to have the communication itself bearing the DIN generated from the system.
Note: For the above said cases, unless the same is covered as per below exceptions, the communications without DIN shall be treated as invalid and shall be deemed to have never been issued.
iii. Exceptions
Following are the cases where DIN can be generated on Post-Facto basis:
i. when there are technical difficulties in generating the electronic DIN, or
ii. when communication regarding investigation/enquiry, verification etc. is required to be issued at short notice or in urgent situations and the authorized officer is outside the office in the discharge of his official duties.
In such cases, the communications should expressly state that it has been issued without a DIN. The reasons for the same should be recorded in the concerned file.
iv. Regularization of exceptions
The communications issued without DIN, as per above said circumstances, should be regularized within 15 working days, in the following manner:
i. obtaining the post facto approval of the immediate superior officer as regards the justification of issuing the communication without the electronically generated DIN;
ii. mandatorily electronically generating the DIN after post facto approval; and
iii. printing the electronically generated pro-forma bearing the DIN and filing it in the concerned file.
v. Format of DIN – “CBIC-YYYY MM ZCDR NNNNNN”:
Various components of the DIN are explained as followed:
a) YYYY – Calendar year in which the DIN is generated,
b) MM – Calendar month in which the DIN is generated,
c) ZCDR – Zone-Commissionerate-Division-Range Code of the field formation/Directorate of the authorized user generating the DIN,
d) NNNNNN – 6 digit alpha-numeric system generated random number.
vi. Verification of Genuineness
The genuineness of the communication can be ascertained by recipient (public) by entering the CBIC- DIN for that communication in a window VERIFY CBIC-DIN on CBIC’s website cbic.gov.in.
Only in those cases where the DIN entered is valid, information about the office that issued that communication and the date of generation of its DIN would be displayed on the screen.
Link: https://www.cbicddm.gov.in/MIS/Home/DINSearch
{Refer Circular No. 122/41/2019-CT, Date: 05th Nov 2019}
3. Certain clarifications were provided for applying Rule 36(4) i.e. credit restriction to matching GSTR-2A+20% .
i. What are the credits covered under this rule? And From which date the rule shall be applicable?
Comments:
ii. Whether the said restriction is to be calculated supplier wise or on consolidated basis?
Comments:
iii. GSTR-2A being dynamic document, what is the date to be considered for ascertaining the credit as per this rule?
Invoices reflecting in GSTR-2A as on the Due date for filing GSTR-1 by the suppliers, should be considered as basis for ascertaining credit as per this rule.
iv. If few of the suppliers had not furnished their GSTR-1, how much ITC a registered tax payer can avail in his FORM GSTR-3B?
The amount of credit to be availed has been explained through different examples. In nutshell, the credit to be availed shall be lower of Eligible credit as per books of accounts and (Value of Invoices/DN/CN in 2A)*120%.
{Refer Circular No. 123/42/2019-GST, Dated: 11th Nov 2019}
4. CBIC has clarified that, for the optional filing cases, GSTR-9/9A should be filed before the due date, otherwise the same shall not be allowed to be filed
Following are the clarifications provided:
i. The registered persons
on or before the due date for filing the same, otherwise the same shall not be allowed to file later.
ii. Further, it is also clarified that, in case the registered person has identified any missed liability and would like to pay the same on voluntary basis, same can be paid through DRC-03 at any point of time.
{Refer Circular No. 124/43/2019-GST, Dated: 11th Nov 2019}
5. Consolidated master circular was issued for new 100% electronic refund processing
Considering the changes in the refund filing mechanism and also to provide a consolidated list of clarifications, the department has issued a circular to provide the guidance on the new refund process and also to provide the clarifications for various issues.
Process flow for the refunds in general:
Step-I: Submission of application and Provisional order
Note: If all the deficiencies referred in the original deficiency memo are rectified by the tax payer, the officer should not add new deficiencies unless there are any exceptional circumstances
Step-II: Provisional Refund
Step-III: Scrutiny of the information & Proposal for rejection, if any
Step-IV: Final Order
The same shall be mentioned in RFD-06, and RFD-05 shall be issued for the balance amount.
Note: Considering the volume of the circular, the summary of the clarifications and the comprehensive procedure with documents required ..etc has been provided as different article. The same shall be shared separately and also will be uploaded in the website.
{Refer Circular No. 125/44/2019-GST, Date: 11th Nov 2019}
6. CBIC has clarified that, the supply of Job work services to regd. persons shall be taxable @ 12% and the rest are taxable @ 18%
Issue:
After inserting the new entry in rate notification at item (id) under heading 9988 w.e.f 01-10-2019, to reduce rate of GST on all job work services, which earlier attracted 18 % rate, to 12%, there was a confusion in the trade as to what are covered under Sl.no. i(d)-12% and what are covered under Sl.no, iv-18%.
Analysis:
The words used in i(d) refers to Job-work and as per definition provided in Sec2 “Job work means any treatment or processing undertaken by a person on goods belonging to another registered person and the expression ‘job worker’ shall be construed accordingly.”
Further, in entry iv, it is specified as “Manufacturing services on physical inputs (goods) owned by others, other than (i), (ia), [(ib), (ic), (id),]125 (ii), (iia) and (iii) above”.
Conclusion:
Since the Job-work definition covers only registered tax payers,
{Refer Circular No. 126/45/2019-GST, Date: 11th Nov 2019}
7. An explanation has been added in rate notification to specify that the word “bus body building” includes building of body on chassis of any vehicle falling under chapter 87.
An explanation has been inserted in the rate notification for item (id) under heading 9988 to specify that the word “bus body building” includes building of body on chassis of any vehicle falling under chapter 87 in the First Schedule to the Customs Tariff Act, 1975. ince the state Jammu & Kashmir has been split into two union territories, the GSTINs of the registered
{Refer Notification No. 26/2019-GST, Date: 22nd Nov 2019}
8. Due dates for filing GSTR-1, GSTR-3B and GSTR-7 for the tax payers of Jammu & Kashmir, for the months Jul’19-Oct’19 has been extended to 30-Nov-19
The Due dates for filing GST returns for the registered persons whose principal place of business is in the State of Jammu and Kashmir has been extend as per below table:
Notification | Return | Related to | Period | Due date |
52/2019 | GSTR-1_Quarterly | Persons with t/o < 1.5 Crs | Jul’19-Sep’19 | 30-Nov-19 |
53/2019 & 57/2019 & 58/2019 | GSTR-1_Monthly | Persons with t/o > 1.5 Crs | Jul’19-Oct’19 | 30-Nov-19 |
54/2019 & 60/2019 & 61/2019 | GSTR-3B_Monthly | All | Jul’19-Oct’19 | 30-Nov-19 |
55/2019 & 59/2019 | GSTR-7_Monthly | All TDS reg.ns | Jul’19-Oct’19 | 30-Nov-19 |
{Refer Notification No. 52-55-CGST Date: 14th Nov 2019 and 57-61/2019-CGST, Date: 26th Nov 2019}
9. The Transition plan to split the GSTINs of Jammu & Kashmir state to newly formed UTs has been notified
Since the state Jammu & Kashmir has been split into two union territories, the GSTINs of the registered persons and the tax structure should also be changed accordingly.
Below is the process prescribed for the same:
For October & November should be considered as followed:
W.e.f. 31st Oct’19, till the transition date, irrespective of the type of tax charged in the invoice, the correct tax should be paid in the returns.
{Refer Notification No. 62/2019-CGST, Date: 26th Nov 2019}
10. Links for use full material:
GST Monthly updates-Nov’19
1. The forms for Annual return (GSTR-9) and Audit report (GSTR-9C) have been simplified by changing certain mandatory fields as optional
2. CBIC has mandated quoting of Document Identification Number (DIN) on all the communications issued by its officers w.e.f. 8th Nov,2019.
3. Certain clarifications were provided for applying Rule 36(4) i.e. credit restriction to matching GSTR-2A+20%
4. CBIC has clarified that, for the optional filing cases, GSTR-9/9A should be filed before the due date, otherwise the same shall not be allowed to be filed
5. Consolidated master circular was issued for new 100% electronic refund processing
6. CBIC has clarified that, the supply of Job work services to regd. persons shall be taxable @ 12% and the rest are taxable @ 18%
7. An explanation has been added in rate notification to specify that the word “bus body building” includes building of body on chassis of any vehicle falling under chapter 87.
8. Due dates for filing GS K-1, GSTK-38 and GSTR-7 for the tax payers of Jammu & Kashmir, for the months Jul’19-Oct’19 has been extended to 30-Nov-19
9. The Transition plan to split the GSTINs of Jammu & Kashmir state to newly formed UTs has been notified
10. Links for use full material: (Refer to full article)
11. Consolidated rate notification for services as amended up to 01-Dec-19
12. Bare Law on GST Act(s) and Rule(s) by ICAI – No as amended up to Oct-19
13. Back ground material on GST by ICAI — As amended up to 30-Oct-19
14. Background Material on Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019
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Thank you for the patient reading. Hope this document has added value to your knowledge. For the updates of the previous months and other article, please follow the link: http://www.cajvk.in/resource/Articles-Publications.aspx
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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 based on the contents of this document.}