a) Amendment in Rule 67A of the CGST Rules, 2017 to include GSTR-1 filing through SMS
Rule 67A of the CGST Rules, 2017 has been amended to include GSTR-1 within the facility of filing returns through SMS. Now, both GSTR-1 and GSTR 3B (when Nil) can be filed through SMS, facility for which shall be made available on the GSTN portal.
Notification No. 58/2020-Central Tax dated July 01, 2020
b) Conditional lowering/ waiver of late fee for delayed filing of GSTR 3B for the period February 2020 to July 2020
In case of delayed filing of GSTR 3B, for the period February 2020 to July 2020, for all the taxpayers where such returns are filed after the prescribed due dates but before September 30, 2020, late fee payable shall be capped at INR 500 per return. In case of returns having Nil tax liability, such late fee shall be fully waived off.
Notification No. 57/2020-Central Tax dated June 30, 2020
c) Extension in time period to issue refund order in terms of section 54(5) read with Section 54(7) of the CGST Act, 2017.
Where notice has been issued for rejection of refund claim and time limit for issuance of order in terms of Section 54(5) read with Section 54(7) falls during the period March 20, 2020 to August 30, 2020, the time limit for issuance of order shall be extended to 15 days from the date of receipt of reply to the notice from the taxpayer or August 31, 2020, whichever is later.
Notification No. 56/2020-Central Tax dated June 27, 2020
d) Extension in due dates of various compliances
Due date of various compliances falling due during the period March 20, 2020 to August 30, 2020 shall be extended to August 31, 2020, where such compliance has not been done till date. Such compliance shall include completion of any proceedings or passing of any order, issuance of any notice, intimation, notification, sanction or approval etc. by any authority, commission, or tribunal under GST laws. Further, the extended time lines shall also apply to compliance or action to be done by taxpayers like, filing of an appeal, reply or application or furnishing of any report, document, return, statement etc.
Notification No. 55/2020-Central Tax dated June 27, 2020
e) Extension is time lines of various compliances under Central Excise Act, Customs Act, Customs Tariff Act and Finance Act 1994
Time limit for various compliances under Central Excise Act, Customs Tariff Act, Customs Act and Finance Act, 1994 falling due during the period March 20, 2020 to September 29, 2020 shall stand extended to September 30 2020. Such compliance shall include completion of any proceedings or passing of any order, issuance of any notice, intimation, notification, sanction or approval etc. by any authority, commission, or tribunal under GST laws. Further, the extended time lines shall also apply to compliance or action to be done by taxpayers like, filing of an appeal, reply or application or furnishing of any report, document, return, statement etc.
Notification No. GSR 418(E) under ‘The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020
a) Extension of validity of AEO certification for ease of renewal process
Validity of all AEO certificates expired or expiring between March 01, 2020 and September 30, 2020 has been extended to September 30, 2020. However, extension in respect of entities against which a negative report is received during this period, shall not be apply.
Circular No. 31/2020-Customs dated June 30, 2020
3) GST APPELLATE AUTHORITY RULINGS
a) Non-admission of appeal filed before wrong appellate authority
Section 6(3) of the CGST Act specifically mandates that any proceedings for rectification, appeal and revision, wherever applicable, of any order passed by an officer appointed under CGST Act shall not lie before an officer appointed under the SGST or UTGST Act. Where an adjudicating authority under State GST has passed an order, appeal against the same shall lie before the SGST authority only. Hence, appeal filed with CGST authority is dismissed for the reason of it being beyond the jurisdiction of Central Authority.
M/s Metacube Business Ventures Private Limited (GSTAA Jaipur)
b) Penalty cannot be imposed on non- mentioning of vehicle number in Part B of e-way bill where supplier is under no obligation to fill Part B of e-way bill
Where the goods are transported for a distance of upto 50 kms within the State from the place of business of the consignor to the place of transporter for further transportation, the supplier or the recipient, as the case may be, the transporter may not furnish the details of conveyance in Part- B of Form GST EWB-01. Where vehicle number has not been filled in Part B of e-way bill, supplier
has not committed any error of law as he is under no obligation to fill in that part. Hence, it cannot be a ground for seizure of goods and imposition of penalty.
Shri Nemi Chand (GSTAA Jaipur)
4) ADVANCE AUTHORITY RULINGS
a) Taxability of salary cost of expat employees deputed to Project office in India
Project office is an extension of Foreign Head office as it carries on all activities relating and incidental to execution of project in India. Expat employees are employees of employer i.e. Head office and since, Project office is an extension of Head Office, such employees are also employees of project office. Hence, services provided by expat employees shall be governed by Schedule III appended to the CGST Act and shall accordingly be outside the purview of GST. Hence, GST shall not be applicable on the accounting entry made for the purpose of Indian accounting requirements in the books of accounts of Project Office for salary cost of Expat employees.
M/s Hitachi Power Europe GmbH (Maharashtra AAR)
b) No input tax credit is available on goods or services received for construction of commercial immovable property
In terms of Section 17(5) (d) of CGST Act, 2017, no input tax credit is available in respect of any goods or services received for construction of an immovable property where such construction is done by the taxable person on his own account even if such property is intended to be given on rent to customers.
M/s Ashish Arvind Hansoti (Maharashtra AAR)
5) COURT RULINGS
a) Petition, challenging retrospective amendment in Section 140 of the CGST Act, so far as it prescribes the time limit to avail transitional credit, admitted
Operation of the Delhi HC judgment in the case of Brand Equity Treaties has been stayed by the Hon’ble Supreme Court in a petition filed by the Government. The petitioner has filed the present writ before Delhi HC, challenging retrospective amendment in section 140 before June 30, 2020 and the same is accepted, as in case of rejection of petition before the SC, Delhi HC would not be powerless to direct the Government to accept the TRAN-01 of the petitioner at a later date even after June 30, 2020.
Rehau Polymers Private Limited v. Union of India (Delhi HC)
a) Late fee capped at INR 500 for each GSTR 3B
In a major relief to the GST taxpayers, the Government has decided to cap the maximum late fee for Form GSTR-3B at INR 500 per return for the tax period July 2017 to July 2020 subject to the condition that such GSTR -3B returns being filed before September 30, 2020.
Ministry of Finance, Press Release dated July 03, 2020
Information contained herein are only for reference purposes and are based on the information publicly available as on the date of this publication. The author takes no responsibility for its reliability and accuracy. It is advised to take appropriate legal/professional advice before undertaking any business activity or otherwise based on the above.