Synopsis of GST notification issued on 21st and 23rd March 2020

1. Notification 10/2020-Central Tax – Dated 21st March 2020

Prescribes manner of transition for persons who were registered in the erstwhile Union territory of Daman and Diu or Dadra and Nagar Haveli till the 26th day of January, 2020; and is in the merged union territory of Daman and Diu and Dadra and Nagar Haveli from the 27th day of January, 2020 onwards.

2. Notification 11/2020-Central Tax – Dated 21st March 2020  

Prescribes manner of taking Registration, Filing of Return and Input Tax Credit for the corporate debtors, undergoing the corporate insolvency resolution process and the management of whose affairs are being undertaken by interim resolution professionals (IRP) or resolution professionals (RP).

Corresponding CBEC Circular No. 134/04/2020-GST dt 23.03.2020 has been issued to clarify various issues in this respect.

3. Notification 12/2020-Central Tax – Dated 21st March 2020 

Amends notification 21/2019-CT dt. 23.04.2019 to exempt the service providers from filing of Form GSTR 1 or GST CMP08 who had opted for composition scheme for FY 2019-20 and filed GSTR-3B instead of Form GST CMP-08. This exemption is being provided for FY 2019-20 only.

4. Notification 13/2020-Central Tax – Dated 21st March 2020 & Notification 14/2020-Central Tax – Dated 21st March 2020 

This notification exempts certain class of registered persons like Insurance, Banking, FI, NBFC, GTA, Passenger Transport and Multiplex from issuing e-invoice and Invoice with Dynamic Quick Response (QR) code. The mechanism of e-invoicing and Dynamic QR coed is to come into force w.e.f 01.10.2020 for all other registered persons having turnover in a FY more than 100 Crore and 500 Crore respectively;

5. Notification 15/2020-Central Tax – Dated 23rd March 2020 

Extension of Due date for filing of GST Annual Return and Reconciliation statement in Form GSTR 9 & 9C respectively for the FY 2018-19 till 30.06.2020;

6. Notification 16/2020-Central Tax – Dated 23rd March 2020

Central Goods and Services Tax (Third Amendment) Rules, 2020

a) Rule 8, 9 & 25 – Aadhaar authentication made mandatory for grant of new registration w.e.f 01.04.2020. where Adhaar authentication could not be done, than physical verification of business premises shall be done by the Proper Officer;

b) Rule 43 – Manner of reversal of ITC of Capital Goods used partly for Taxable and Partly for Exempt/Non taxable supply;

c) Rule 80 – Relaxation in filing of GSTR 9C for the FY 2018-19 – Required to be filed by the taxpayer having aggregate turnover more than 5 Crore;

d) Rule 86 – Tax wrongly paid or excess paid from Credit Ledger shall be refunded and re-credited to the Electronic Credit Ledger. Earlier refund was allowed for cash payment only;

e) Rule 89 – In case of claim of refund of ITC in case of export of goods under Bond or LUT, the value of export for the purpose of calculation, can be maximum upto 1.5 time of value of like goods sold in domestic market;

f) Rule 92 – Manner of sanction of refund of wrongly or excess paid tax from electronic credit ledger by issuing RFD06 and re-crediting the amount through Form GST PMT03;

g) Rule 96B inserted – Where refund of un-utilised ITC on account of export of goods or of IGST paid on export of goods has been paid to an applicant but the sale proceeds in respect of such export goods have not been realised, in full or in part, in India within the period allowed under the Foreign Exchange Management Act, 1999, including any extension of such period, the person to whom the refund has been made shall deposit the amount so refunded. Corresponding amendment made in Form GST RFD 01 to insert an undertaking for deposit of refund amount if sale proceeds not realised as above;

h) Rule 141 – Power given to proper officer (Earlier Commissioner) for disposal of seized goods and realise the tax.

7. Notification 17/2020-Central Tax – Dated 23rd March 2020, 18/2020-Central Tax – Dated 23rd March 2020 & 19/2020-Central Tax – Dated 23rd March 2020

Exempts person who is not a Citizen of India and Persons other than Individual, Authorized Signatory, Partners and Karta from Adhaar authentication for new GST registration. This mechanism of Adhaar authentication shall be effective from 01.04.2020;

8. Notification 20/2020-Central Tax – Dated 23rd March 2020 to 26/2020-Central Tax – Dated 23rd March 2020

Extension of due date for furnishing following returns for person having principal place of business in erstwhile State of Jammu & Kashmir

9. Notification 27/2020-Central Tax – Dated 23rd March 2020 to 29/2020-Central Tax – Dated 23rd March 2020 

Notifies due date for furnishing of GSTR 1 and GSTR 3B returns for the period April 2020 to September 2020

Note: Due dates mentioned in sl. 8 and 9 above may be extended as per press announcements on 24.03.2020 as a relief measure in view of COVID-19 outbreak. The extension has not been notified till now.