The economy has started showing signals of recovery due to more Government spending and external factors. The GDP growth rate for Q1 was 5.6% followed by 5.1% in Q2. Now Q3 growth is further down with projections at 4.7%. For whole year 2020-21, it is estimated by NSO at 5%. Globally, world economy is also facing slow down and only a growth of 2.8% is expected this year, weakest in last decade. However, the corona-virus impact may make a dent in global economy including our.
MCA has notified new CARO Order 2020 w.e.f. 25.02.2020 and is applicable to financial years 2019-20. The auditors will also be required to comment on details under GST law and cesses.
A major controversy these days is on payment of interest for delayed GST on gross or net amount (net of ITC). Department is now demanding interest on gross amount and has sent numerous recovery notices throughout the country. However, there are few high court judgments to the contrary.
Also, blocking of ITC credit under CGST Rule 86A is also a new weapon in department’s hands which is being aggressively resorted to even in undeserving cases. CBIC has issued an advisory for opting for composition scheme for existing registered assessees for financial year 2020-21. A set of few FAQs have been issued for verification of vehicle number in EWB portal. The Government is considering deferring the implementation of e-invoicing under goods and services tax (GST) by three months to July 1 as the same would give the industry much needed time, as recent changes in the schema and alterations in mandatory fields needs time to be implemented. The schema for the invoice is not yet final and the new returns are also being simultaneously introduced, making the trade anxious about the impact on their already sluggish businesses. The B2C requirement of the dynamic QR code also needs to be relooked as the current compliances do not require separate invoice-wise reporting for B2C transactions.
The gross GST revenue collected in the month of February, 2020 is Rs.1,05,366 crore of which CGST is Rs. 20,569 crore, SGST is Rs. 27,348 crore, IGST is Rs. 48,503 crore (including Rs. 20,745 crore collected on imports) and Cess is Rs.8,947 crore (including Rs.1,040 crore collected on imports). The total number of GSTR 3B Returns filed for the month of January up to 29th February, 2020 is 83.53lakh.
In order to streamline the valuation rule for the lottery with the uniform rate, rules for value of supply of lottery under GST has been modified. Further, the Kerala High Court has paved the way for the Authority for Advance Rulings (AARs) to decide the place of supply under the goods and services tax (GST) regime. This is an important settlement of a legal issue in GST since AARs have not been going into this matter, saying it is beyond their jurisdiction.
The next GST Council meeting is slated for 14 March, 2020 at Delhi where in issues of tax rates and cess to states may come up, along with other issues.
Auditor’s Opinion on GST in new CARO, 2020
New Toll Free Number of GST Portal
As per the recent Tweet of GST Tech, the New (Toll-Free) number of GST Portal Help Desk is: 1800-103-4786 from February 26, 2020.
The existing number 0120-4888999 will be discontinued.
[Source : https://twitter .com/askGSTech/status/1232296]
GST Revenue collection for February, 2020
[Source: Press Release dated 01.03.2020]
Deemed value of supply of lottery tickets
Outcome of 3rd National GST Conference held on 6th March, 2020
[Source: GST Council Press Release dated 06.03.2020]