WEEKLY GST DIGEST FOR MARCH 22 ~MARCH 28, 2020

TANWAR ATUL & ASSOCIATES
TANWAR ATUL & ASSOCIATES

 

 1)    Notifications

 

  1. Due dates to file GSTR-3B for period Apr’20 ~ Sep’20 prescribed: Due dates to file GSTR 3B for the period Apr’20 ~ Sep’20 have been prescribed as 20th day of the succeeding month in respect of taxpayers having turnover of more than INR 5 crores. Taxpayer having turnover up to INR 5 crores to file their GSTR 3B on 22nd or 24th day of succeeding month subject to having their place of businesses in the prescribed states or Union territories. Due date to discharge the liability towards tax, interest, penalty, fee or any other amount payable under the law shall be the said due date.
    Notification No. 29/2020-Central Tax dated March 23, 2020
  2. Due dates to file GSTR-1 for period Apr’20 ~ Sep’20 prescribed: Due dates to file GSTR-1 for the period April 2020 to September 2020 have been prescribed as under:

    S. No

    Turnover Amount

    Tax period

    Due date to file return

    1

    Turnover of more than INR

    1.5 crores

    Monthly     for     April     2020 through September 2020

    11th day of the subsequent month

    2

    Turnover of up to INR 1.5 crores

    Quarter April 2020 through June 2020

    31st day of July 2020

    3

    Turnover of up to INR 1.5 crores

    Quarter July 2020 through September 2020

    31st day of October 2020

    Notification No. 27/2020-Central Tax & 28/2020-Central Tax both dated March 23, 2020

  3. Aadhaar authentication to be mandatory for eligibility of registration: In order to be eligible for registration, every individual to undergo Aadhaar authentication effective from April 01, 2020. In case of persons other than individual, authorized signatories of all types, managing or authorized partners of partnership firm, Karta of an HUF shall undergo Aadhaar authentication from the date mentioned. In absence of Aadhaar, alternative means of identification shall be offered.
    Notification No. 18/2020-Central Tax and 19/2020-Central Tax both dated March 23, 2020 to be effective from April 01, 2020

     

  4. Aadhaar authentication not mandatory: Aadhaar authentication shall not be mandatory to a person who is not a citizen of India or to such class of persons other than those for which Aadhaar authentication is mandatory.
    Notification No. 17/2020-Central Tax dated March 23, 2020 to be effective from April 01, 2020.

     

  5. Registration to be granted after physical verification of premises in certain cases: In case of failure to undergo Aadhaar Registration shall be granted only after physical verification of principal place of business of such person in his presence within 60 days from the date of application. Report of such verification along with other documents including photographs shall be uploaded, by the Officer in Form GST REG-30, on the common portal within 15 days of such verification.
    Notification No. 16/2020-Central Tax dated March 23, 2020 to be effective from April 01, 2020.

     

  6. Taxpayers having turnover up to INR 5 crores in FY 2018-19, exempted from GSTR-9C filing: Taxpayers whose aggregate turnover for the FY 2018-19 does not exceed INR 5 crores have been exempted from requirements of filing GSTR-9C in respect of the said financial.
    Notification No. 16/2020-Central Tax dated March 23, 2020

     

  7. Refund of taxes paid wrongly or in excess by a debit to electronic credit ledger: Taxes paid wrongly or in excess through a debit to the electronic credit leger of the taxpayer, refund of such tax (if found admissible) shall be granted by way of re-credit to the electronic credit ledger account through an order in Form GST PMT-03.
    Notification No. 16/2020-Central Tax dated March 23, 2020

     

  8. Capping placed on the value of turnover of zero-rated supply of goods for refund purposes: Value of turnover of zero-rated supply of goods shall be limited to 1.5 times of value (as declared) of like goods domestically supplied by the same or similarly placed supplier.
    Notification No. 16/2020-Central Tax dated March 23, 2020

     

  9. Recovery of amount refunded, on account of non-realization of proceeds against export of goods: In case of non-realization (in full or in part) of export proceeds within the time (or extended time) allowed in terms of FEMA, amount refunded to the extent of proceeds not realized shall become payable along with interest and shall be paid within a period of 30 days from the expiry of timelines (or extended timelines). In case of failure to repay, recovery proceedings in terms of section 73 or 74 shall be Amount recovered to be refunded subjected to furnishing of evidence of realization (within a period of 3 months of such realization) of proceeds within the extended time period as permitted by RBI.
    Notification No. 16/2020-Central Tax dated March 23, 2020

     

  10. Extension in timelines to furnish annual return in Form GSTR-9 for the FY 2018-19: Due date to furnish annual return in Form GSTR-9 for the FY 2-18-19 has been extended from March 31, 2020 to June 30.
    Notification No. 15/2020-Central Tax dated March 23, 2020.

 Circular

 

  1. Clarification regarding apportionment of ITC in case of business reorganization i.e. merger, demerger, amalgamation or change in business constitution/ownership: Following certain clarifications have been given:

    S. No.

    Issue

    Clarification

    1

    In case of demerger, where ITC is apportioned on the basis of ratio of value of assets of new units, whether the value of assets is to be taken state-wise or all India basis.

     

    Requirements of filing of Form GST ITC-02 by the transferor

    Each registration under GST is considered to be a distinct person. Accordingly, the value of the assets is to be taken state- wise and not at all India level.

     

    Such form to be filed by the transferor in states where both transferor and transferee both are registered

    2

    Applicability of apportionment of ITC with

    respect to the form of reorganization, as the rule only speaks about demerger.

    Shall be applicable to all forms of

    reorganization resulting in partial transfer of business assets along with liabilities

    3

    Whether the ratio is to be applied to each tax head separately (i.e. IGST, CGST, SGST/UTGST)

    No, the ratio is to be applied on the total ITC remaining un-utilized

    4

    Determination of ITC to be transferred under each head separately (i.e. IGST, CGST, SGST/UTGST)

    Transferor shall be free to transfer tax under different head in any ratio subject to balance available with the transferor in a particular head and sum total of IGST, CGST, SGST/UTGST does not exceed the

    total ITC to be transferred.

    5

    Relevant date to calculate the amount of un-utilized credit to be transferred

    The relevant date to determine the balance of un-utilized credit of ITC shall be the date of filing Form GST ITC-02 by transferor

    6

    Relevant date to calculate the ratio of the assets for the purposes of apportionment

    It shall be date as specified in the scheme of reorganization (in terms of Companies

    Act, 2013) effective from which the scheme is to come in force

    Circular No. 133/03/2020-GST dated March 23, 2020

Court Rulings

 

  1. Extension of limitation in certain cases: In exercise of powers conferred under Article 142 read with Article 141 of the Constitution India, the period of limitation of all proceedings in courts, tribunals across country including Supreme Court shall stand extended effective from March 15, 2020 till further orders, irrespective of the limitation prescribed under the General law or Special laws whether condonable or not.
    Suo Motu Petition regarding cognizance for extension of limitation (SC)

     

  2. Revision of TRAN-1 to be allowed, where assessee faced technical glitches: As the assessee could not upload the revised TRAN-1 due to technical glitches on the portal, it is entitled to one more chance to upload the revised
    RSK Industries Private Limited v. Union of India (Gujarat HC)

 

Advance Authority Rulings

 

  1. No registration in state where port of clearance is located, if no establishment in that state: Where goods are directly dispatched from port of clearance, invoice can be raised from the registered place of business with charging IGST, treating it to be an inter-state supply. There shall be no requirement of registration in the state where port of clearance is located, if the supplier does not have an establishment in that state and effecting supplies from such location.
    M/s Kardex India Storage Solution Private Limited (Karnataka AAR)

 Appellate Authority Rulings

 

  1. Unit in SEZ is not entitled to claim refund on inward supplies received: In terms of 2nd proviso to Rule 89(1) of CGST Rules, in case of supplies to SEZ units/ developers, the refund shall be claimed by supplier of goods or services Further, Rule 89(2) also prescribes that SEZ unit/developer shall not avail input tax credit on supplies received by them from non-SEZ supplier and refund in respect of such tax shall be claimed by the suppliers.
    M/s Vaachi International Private Limited (GSTAA Andhra Pradesh)

 

 Disclaimer

 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.

Spread The Word
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on email

Leave a Reply

Your email address will not be published. Required fields are marked *