WEEKLY GST DIGEST FOR MAY 02 ~MAY 08, 2020

TANWAR ATUL & ASSOCIATES

TANWAR ATUL & ASSOCIATES

1) Notifications

a)  Filing of GSTR 3B through Electronic Verification Code (EVC) or Short Messaging Service (SMS): CGST Rules 2017 have been amended allowing companies registered under the Companies Act 2013 to file GSTR 3B, during the period April 21, 2020 through June 30, 2020, through EVC. Further, registered person filing NIL return can file such return through SMS which shall be verified though OTP mechanism.

Notification No. 38/2020-Central Tax dated May 05, 2020

b)  Validity of e-way bill extended: Validity of e-way bill generated, under Rule 138 of CGST Rules 2017, on or before March 24, 2020 shall be extended to May 31, 2020 where such validity expires between March 20, 2020 to April 15, 2020

Notification No. 40/2020-Central Tax dated May 05, 2020

c)  Extension in date to file annual return for FY 2018-19: Due date to furnish Annual Returns for the period April 2018 ~ March 2019 has been further extended to September 30, 2020.

Notification No. 41/2020-Central Tax dated May 05,2020

2) Circulars

a) Clarifications issued in respect of certain challenges: Circular clarifying certain issues like those related to Insolvency and Bankruptcy Code, 2016, representations on account of COVID-19 etc. has been issued by the Government.
Circular No. 138/08/2020-GST dated May 06, 2020

3) Authority for Advance Rulings

a) Inclusion or exclusion of different incomes for the purposes of aggregate turnover for registration provisions: Ruling pronounced in respect of inclusion or exclusion of certain types of incomes for the purposes of computation of aggregate turnover for registration provisions. Authority held that:

  1. Salary received, as a working partner of a firm, shall be excluded in terms of Para I of Schedule III and shall not form part of aggregate turnover

  2. Share of profit received from the firm is outside the purview of GST and hence not includible in aggregate turnover for GST purposes

  3. Remuneration received as executive director shall be in the course of employment with the Company concerned and shall be outside the purview of GST

  4. Receipt of remuneration as non-executive director shall be chargeable to GST under RCM provisions

  5. Incomes received towards salary/ remuneration as non-executive director of a private company, renting of commercial or residential property and interest received on account of amount extended as deposits, loans and advances shall be included in aggregate turnover for registration purposes.

M/s Anil Kumar Agarwal (Karnataka AAR)

4) Appellate Authority Rulings

a) Mis-match in vehicle number on e-way bill is a minor mistake, detention and penal consequences not required: Where there is no discrepancy in quantity of goods and validity of e- way bill, there appears no intent to evade payment of taxes. Detention and imposition of penalty for mis-match (only two digits) in vehicle number on e-way bill and actual vehicle number is not warranted. Mistake in entering the vehicle number is a typographic error and should be considered as a minor one.

Mahalakshmi Packagers Manufacture v. ACST & E-Cum-Proper Officer (GSTAA)

5) Court Rulings

a)  Rectification in Form GSTR 3B allowed for period to which such rectification relates: There are no provisions under law restricting such rectification only in the period in which errors are noticed. Constraints introduced by Para 4 of Circular 26/26/2017-GST dated December 29, 2017 are not in consonance with the GST provisions and are accordingly held to be arbitrary and contrary to the law. Bharti Airtel Ltd Vs. Union of India & Ors (Delhi HC)

b)  Time limit prescribed under Rule 117 of CGST Rules held as only directory, not mandatory: Court holds that claim of taxpayer for CENVAT credit beyond time limit prescribed under Rule 117 of CGST rules, cannot be denied. Such CENVAT credit, being a substantive benefit for which all substantive conditions have been complied with, cannot be denied merely on account of procedural or technical ground. Further, the benefit of transitional credit shall be available for 3 years in terms of Limitation Act and shall be applicable to all those taxpayers who could not file TRAN-01 and claim ITC.

Brand Equity Treaties Limited, Micromax Informatics Limited, Developer Group India Private Limited, Reliance Elektrik Works v. Union of India (Delhi 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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