India’s Q3 economic numbers were released by CSO last week hinting that the Indian economy / GDP will contract by 8% in 2021-21, a little higher than the estimated contraction of 7.7%. This would mean that GDP may contract in current quarter too. There is a recovery in private consumption in Q3. Government’s capital expenditure has also increased, though operating expenditure has declined.
Going by the numbers, can one say that India has exited from recession ? India’s GDP has now returned to positive trajectory after Q1 and Q2 of contraction. It appears to be a ‘V’ shaped recovery but we will have to wait to see if it is stable. While the economy grew @ 0.4% in Q3, it had grown @3.3% in Q3 of financial year 2020. The Covid-19 effect begin from March, 2020 end. A positive rate, howsoever small, is a valid reason for optimism in times to come.
Central Government has extended the due date for filing GST annual return in Forms 9 and 9C from 28.02.2021 to 31.03.2021 at the fag end of last date (6 PM of 28.02.2021, Sunday) amid lost hopes. This extension is second extension, earlier one granted from 31.12.2020 to 28.02.2021. The main reason attributed for this extension has been cited as ‘difficulties faced by the taxpayers’.
Notification No. 3/2021-CT dated 23.02.2021 exempts certain class of persons from requirements of section 25 (6B, 6C) for the purpose of GST registration.
Earlier, CBIC clarified on applicability of dynamic Quick Response Code (QR Code) on B2C invoices and related compliances by way of Circular No. 146 dated 23.02.2021.
The gross GST revenue collected in the month of February 2021 is Rs. 1,13,143 crore of which CGST is Rs. 21,092 crore, SGST is Rs. 27,273 crore, IGST is Rs. 55,253 crore (including Rs. 24,382 crore collected on import of goods) and Cess is Rs. 9,525 crore (including Rs. 660 crore collected on import of goods).
There is a growing demand of bringing petroleum products under GST net, besides reducing taxes and cesses thereon. There is a need to revisit indirect taxes on fuel. In fact, overall there are still 35 cesses being collected today also.
GST Annual Returns – Due dates Extended
- The due date for furnishing of the Annual returns (GSTR-9 and GSTR-9C) specified under section 44 of the CGST Act read with Rule 80 of the CGST Rules for the financial year 2019-20 was earlier extended from 31.12.2020 to 28.02.2021 vide Notification No. 95/2020- Central Tax dated 30.12.2020.
- Central Government (MOF) has further extended the due date for furnishing of GSTR-9 and GSTR-9C for the financial year 2019-20 to 31.03.2021 with the approval of Election Commission of India.
- This is the second extension of due dates for financial year 2019-20.
(Source: Notification No. 04/2021-CT dated 28.02.2021
read with Press Note dated 28.02.2021)
Applicability of Dynamic Q R Code on B2C invoices
- CBIC has issued clarifications for applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance of Notification No. 14/2020-CT dated 21.03.2020 which requires Dynamic QR Code on B2C invoice issued by taxpayers having aggregate turnover more than 500 crore rupees, w.e.f. 01.12.2020.
- Vide Notification No. 89/2020-Central Tax, dated 29th November 2020, penalty has been waived for non-compliance of the provisions of Notification No. 14/2020 – Central Tax for the period from 01st December, 2020 to 31st March, 2021, subject to the condition that the said person complies with the provisions of the said Notification from 01st April, 2021.
- Notification No. 14/2020-CT dated 21.03.2020 is applicable to a tax invoice issued to an unregistered person by a registered person (B2C invoice) whose annual aggregate turnover exceeds 500 Cr rupees in any of the financial years from 2017-18 onwards.
- In case of export invoices, though such supplies are made by a registered person to an unregistered person, however, as e-invoices are required to be issued in respect of supplies for exports, as per Notification No. 13/2020-Central Tax, dated 21st March, 2020 treating them as Business to Business (B2B) supplies, Notification No. 14/2020 – Central Tax, dated 21st March, 2020 will not be applicable to export invoices.
- Dynamic QR Code should contain the following information :
(i) Supplier GSTIN number
(ii) Supplier UPI ID
(iii) Payee’s Bank A/C number and IFSC
(iv) Invoice number & invoice date,
(v) Total Invoice Value and
(vi) GST amount along with breakup i.e. CGST, SGST, IGST, CESS, etc.
- Dynamic QR Code should be such that it can be scanned to make a digital payment.
- If the supplier has issued invoice having Dynamic QR Code for payment, the said invoice shall be deemed to have complied with Dynamic QR Code requirements. In cases where the supplier, has digitally displayed the Dynamic QR Code and the customer pays for the invoice:
(i) Using any mode like UPI, credit/ debit card or online banking or cash or combination of various modes of payment, with or without using Dynamic QR Code, and the supplier provides a cross reference of the payment (transaction id along with date, time and amount of payment, mode of payment like UPI, Credit card, Debit card, online banking etc.) on the invoice ; or
(ii) In cash, without using Dynamic QR Code and the supplier provides a cross reference of the amount paid in cash , along with date of such payment on the invoice,
the said invoice shall be deemed to have complied with the requirement of having Dynamic QR Code.
- In case where the supplier makes available to customers an electronic mode of payment like UPI Collect, UPI Intent or similar other modes of payment, through mobile applications or computer based applications, where though Dynamic QR Code is not displayed, but the details of merchant as well as transaction are displayed/ captured otherwise, in such cases, if the cross reference of the payment made using such electronic modes of payment is made on the invoice, the invoice shall be deemed to comply with the requirement of Dynamic QR Code. However, if payment is made after generation / issuance of invoice, the supplier shall provide Dynamic QR Code on the invoice.
- If cross reference of the payment received either through electronic mode or through cash or combination thereof is made on the invoice, then the invoice would be deemed to have complied with the requirement of Dynamic QR Code. In cases other than pre-paid supply i.e. where payment is made after generation / issuance of invoice, the supplier shall provide Dynamic QR Code on the invoice.
- The provisions of the Notification No. 14/2020-CT shall apply to each supplier/registered person separately, if such person is liable to issue invoices with Dynamic QR Code for B2C supplies as per the said notification. In case, the supplier is making supply through the Ecommerce portal or application, and the said supplier gives cross references of the payment received in respect of the said supply on the invoice, then such invoices would be deemed to have complied with the requirements of Dynamic QR Code. In cases other than pre-paid supply i.e. where payment is made after generation / issuance of invoice, the supplier shall provide Dynamic QR Code on the invoice.
(Source: Circular No. 146/02/2021-GST dated 23.02.2021)
GST Collections in February, 2021
- The gross GST revenue collected in the month of February 2021 is Rs. 1,13,143 crore of which CGST is Rs. 21,092 crore, SGST is Rs. 27,273 crore, IGST is Rs. 55,253 crore (including Rs. 24,382 crore collected on import of goods) and Cess is Rs. 9,525 crore (including Rs. 660 crore collected on import of goods).
- GST collection on a monthly basis in 2021-21 has been stable, more so after the economy opened up after initial lock down due to Covid, so much so that in last five months, it has been over Rs. one lakh, viz,
(Rs. in crores)
(Source: MOF Press Release ID: 1701723 dated 01.03.2021)