WEEKLY GST DIGEST FOR MARCH 29 ~APRIL 04, 2020

TANWAR ATUL & ASSOCIATES

TANWAR ATUL & ASSOCIATES

1) Notifications

a)  Time limit to opt for composition scheme for the FY 2020-21: Time limit to file intimation (Form CMP-02) regarding opting for composition scheme for the FY 2020-21 has been extended to June 30, 2020. Intimation of details of stock as on the date of opting for composition shall be made on or before July 31, 2020.

Notification No. 30/2020-Central Tax dated April 03, 2020

b)  Restrictions on provisional ITC in terms Rule 36(4): Condition pertaining to provisional credit in respect of invoice or debit notes not uploaded by suppliers, to the extend 10% of matched credit shall apply cumulatively for the period February 2020 to August 2020 and such cumulative adjustment shall be made in GSTR 3B to be filed for the month of September 2020.

Notification No. 30/2020-Central Tax dated April 03, 2020

c)  Rate of interest for delayed payment of taxes notified along with late fee waiver: Waiver of late fee and reduced rate of interest applicable for delayed filing of returns and payment of taxes to prescribed conditions, prescribed as under:

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Notification No. 31/2020-Central Tax and Notification No. 32/2020-Central Tax both dated April 03, 2020 effective from March 20, 2020

d)  Waiver of late fee for delayed filing of GSTR-1: Late fee for delayed filing of GSTR-1 for the period March 2020, April 2020 and May 2020 and for the quarter ending March 31, 2020 shall be waived subject to the condition that GSTR-1 for the said periods are filed on or before June 30, 2020. 

Notification No. 33/2020-Central Tax dated April 03, 2020

e)  Compliances by Composition tax payers: Composition suppliers to pay tax for the quarter ending March 31, 2020 in Form GST CMP-08 by July 07, 2020. Return in Form GSTR-04 for the financial year 2019-20 shall be filed on or before July 15, 2020.
Notification No. 34/2020-Central Tax dated April 03, 2020

f)  Extension is time limit for compliances to be made by authority or taxpayers: Time limit for completion of any proceeding or passing of order or issuance of any notice, intimation, notification, sanction, approval or any such other action falling due between March 20, 2020 to June 20, 2020, by an authority, commission or tribunal extended to June 30, 2020. Further, time limit for filing of appeal, reply, application or furnishing of any report, document, return, statement etc. by the taxpayer shall stand extended till June 30, 2020.

Notification No. 35/2020-Central Tax dated April 03, 2020 effective from March 20, 2020

g)  Automatic extension in validity of e-way bill: Period of validity of e-way bill, generated under Rule 138, expiring during the period March 20, 2020 to April 15, 2020 shall be deemed to be extended till April 30, 2020.

Notification No. 35/2020-Central Tax dated April 03, 2020 effective from March 20, 2020

h)  Extended time to file returns by Input service distributors (ISD), non-resident taxable person (NRTP) and those covered under TDS/TCS provisions: Due date to file returns for the period March 2020 to May 2020 for specified classes of taxpayers have been prescribed to be June 30, 2020. 
Notification No. 35/2020-Central Tax dated April 03, 2020 effective from March 20, 2020

i)  Due date to file GSTR 3B for the month of May 2020: Due dates to file return in Form GSTR 3B for the month of May 2020 have been prescribed as under

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2) Circulars

a) Clarification with respect to measures taken by Government due to COVID-19: Circular clarifying certain issues pertaining to relaxation given by the Government due to COVID-19 outbreak in the country has been issued.
Circular No. 136/06/2020-GST dated April 03, 2020

3) GST Appellate Authority Rulings

a) No best judgement assessment merely on account of non-filing of GSTR 3B: Merely because GSTR 3B are not filed, there cannot be a ground for best judgement assessment. Where GSTR-1 were filed appropriately, the liability declared in such GSTR-1 should be treated as confirmed and levy basing on mere presumption is bad in law and in violation of principle of natural justice.

M/s Omsai Professional Detective and Security Services Private Limited (GSTAA Andhra Pradesh)

4) Court Rulings

a)  Assessee cannot be made liable to pay interest on account of technical glitches while filing GSTR 3B: Assessee cannot be treated as defaulter because all figures in GSTR 3B were zeros on account of technical issues over the portal. Where CINs were generated and such CINs have also been recorded on the challan and the amount was received by the designated bank of Authority, it can safely be viewed that tax payments were made within the time allowed and taxpayer cannot be held liable for payment of interest.

Vishnu Aroma Pouching Private Limited v. Union of India (Gujarat HC)

b)  Transitional credit cannot be denied on failure to file TRAN-1 due to technical failure of portal: Where the assessee could not upload TRAN-01 on account of technical glitches on the portal, it is entitled to claim CENVAT credit in terms of Section 140(1) of the CGST Act. Jurisdictional officer is directed to allow the taxpayer to file the relevant form on the portal.

Siddhi Developers v. Union of India (Gujarat HC)

c)  Levy of IGST on ocean freight unconstitutional: In view of the decision of Honble High Court of Gujarat in case of Mohit Minerals, levy of IGST on ocean freight , for services provided by a person, located in non-taxable territory, by way of transportation of goods on a vessel from a place outside India up to customs station of clearance in India is not permissible and hence, ultra vires to the Act. M/s Adani Wilmar Limited v. Union of India (Gujarat HC)

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. 

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