GST WEEKLY UPDATE : 18/2021-22 (01.08.2021) By Vipul Khandhar

By CA Vipul Khandhar, 

1. Applicability Of GSTR-9 & GSTR-9C For The F.Y. 2020-21:

• GSTR 9 not required for turnover Upto Rs.2 Crores: The GSTR-9 shall not be required for taxpayers with turnover up to Rs.2 crore, it has been optional one.

• GSTR-9C required for turnover Between Rs.2 Crores to Rs.5 Crores: The businesses with an annual turnover between Rs.2 Crores to Rs.5 Crores are required to furnish GSTR-9C.

• Both GSTR 9 and GSTR 9C required if turnover exceeds Rs.5 Crores: If the turnover of the Businesses exceeds the turnover of Rs.5 Crores then they are required to furnish both the GSTR 9 and  GSTR 9C. GSTR-9 is an annual return to be filed by all registered taxpayers under GST except a handful. It is an annual compilation of outward supplies, inward supplies, tax liability and input tax credit availed during a financial year. It is due to be filed by 31 December of the year following the particular financial year. GSTR-9C is a statement of reconciliation between the Annual Returns in GSTR-9 filed for a FY, and the figures as per the audited annual Financial Statements of the taxpayer.

• Due date for Filing GSTR 9 and GSTR 9C As per the notification the due date for Filling is 31st December 2021 for Financial Year 2020-21.

• Mandatory certification in reconciliation statement (Form GSTR 9C) Self certified As per the notification every registered person, other than those referred to in the second proviso to section 44, an Input Service Distributor, a person paying tax, a casual taxable person and a non-resident taxable person, whose aggregate turnover during a financial year exceeds Rs. 5 crore rupees, shall also furnish a self-certified reconciliation statement in FORM GSTR-9C.

• Amendment in GSTR-9 annual return for the year 2020-21: The CBIC has notified the Amendments to supplies already declared in returns of previous Financial Year but were not furnished in Table 9A, Table 9B, Table 9C  be declared in GSTR-9.

• In the said rules, in FORM GSTR-9, in the instructions in the Table, in second column, against serial numbers 10 and 11, after the entries, the following entry shall be inserted, namely, “For FY 2020-21, details of additions or amendments to any of the supplies already declared in the returns of the previous financial year but such amendments were furnished in Table 9A, Table 9B and Table 9C of FORM GSTR-1 of April 2021 to September 2021 shall be declared here.” In the said rules, in FORM GSTR-9 in paragraph 7,  after the words and figures “April 2020 to September 2020.”, the following shall be inserted, namely “For FY 2020-21, Part V consists of particulars of transactions for the previous financial year but paid in the FORM GSTR-3B between April 2021 to September 2021.”

• In the said rules, in FORM GSTR-9, in the instructions in the Table in paragraph 7 against serial number 13, after the words, letters and figures “reclaimed in FY 2020-21, the details of such ITC reclaimed shall be furnished in the annual return for FY 2020-21,”, the following entry shall be inserted, namely “For FY 2020-21, details of ITC for goods or services received in the previous financial year but ITC for the same was availed in returns filed for the months of April 2021 to September 2021 shall be declared here.

• However, any ITC which was reversed in the FY 2020-21 as per second proviso to sub-section (2) of section 16 but was reclaimed in FY 2021-22, the details of such ITC reclaimed shall be furnished in the annual return for FY 2021-22.” For the figures and word “2018-19 and 2019-20”, the figures and word “2018-19, 2019-20 and 2020-21” shall be substituted.

2. Details of ITC for Goods or Services received in previous FY but ITC availed in GST Returns filed for April to Sep 2021 to be declared in Table 4(A) of GSTR-3B:                               

The CBIC has notified that Details of Input Tax Credit (ITC) for goods or services received in previous FY but ITC availed in returns filed for April 2021 to September 2021 to be declared in Table 4(A) of FORM GSTR-3B.

Under the GST laws, Form GSTR3B is a self-declared consolidated summary return of inward and outward supplies which is required to be filed by a registered person electronically on the GST Common Portal.

3.      Aggregate Value of Reversal of ITC availed in previous FY but reversed in Returns filed for April to Sep 2021 to be declared in Table 4(B) of FORM GSTR-3B:

The CBIC has notified that Aggregate value of reversal of ITC availed in previous FY but reversed in returns filed for April 2021 to September 2021 to be declared in Table 4(B) of FORM GSTR-3B. The government has notified the Central Goods and Services Tax (Sixth Amendment) Rules, 2021 which seeks to amend Central Goods and Services Tax Rules, 2017.

4. GSTN mandates New GST Registrants to furnish Bank Account details within specified Time Limit.

The GSTN has made it mandatory for New GST Registrants to furnish bank account details within a specified time limit. As per Rule 10A, it is mandatory to furnish the bank account details within 45 days from the date of grant of registration or the date on which the return is required under section 39 is due to be furnished, whichever is earlier. “Kindly update your Bank Account details within 45 days. GSTIN Registration may be cancelled if such details are not updated within the timeline,” the GSTN said.

5. GSTN enables New functionality on Annual Aggregate Turnover deployed on GST Portal for Taxpayers.

The GSTN has enabled the New functionality on Annual Aggregate Turnover (AATO) deployed on GST Portal for taxpayers. The GSTN has implemented a new functionality on taxpayers’ dashboards with the following features:

• The taxpayers can now see the exact Annual Aggregate Turnover (AATO) for the previous FY, instead of just the two slabs of above or Upto Rs. 5 Cr.
• The taxpayers can also see the Aggregate Turnover of the current FY based on the returns filed to date.
• The taxpayers have also now been provided with the facility of turnover update in case taxpayers feel that the system calculated turnover displayed on their dashboard varies from the turnover as per their records.
• This facility of turnover update shall be provided to all the GSTINs registered on a common PAN. All the changes by any of the GSTINs in their turnover shall be summed up for computation of Annual Aggregate Turnover for each of the GSTINs.
• The taxpayer can amend the turnover twice within a period of one month from the date of roll out of this functionality. Thereafter, the figures will be sent for review by the Jurisdictional Tax Officer who then can amend the values furnished by the taxpayer. For details, the taxpayers may check out the ‘Advisory’ section of the aforementioned functionality on their respective dashboards.

6. Important Information For Those Who Do Not File Returns Intime:

• CBIC had issued Circular 129/48/2019 Dated 24.12.2019 to clarify the SOP for Return Defaulters. It was clarified that:
• 5 Days after the due date, Notice shall be issued (Form GSTR 3A) requiring taxpayer to file return within 15 Days.
• If return is not filled in 15 Days, officer may issue order (Form ASMT 13) based on the details available (GSTR 1, GSTR 2A, E-waybill etc) and upload summary (Form DRC 07).
• If valid return is not filled even after 30 Days from service of assesment order (Form ASMT 13), then officer may initiate recovery proceedings.
• Thus to avoid the issues of notices and recovery, file the returns within due date always.

7. Recent AAR & Judicial Decisions:-

(i) AAR On GST payable from date of Transfer of Possession of Building or Right to Person Supplying Development Rights:

The Telangana Authority of Advance Ruling (AAR) ruled that the Goods and Service Tax (GST) shall be payable from date of transfer of possession of the building or right to person supplying development rights.

The applicant has sought the advance ruling on the issue in respect of time of supply and point of taxation with respect to flats allotted to land owner by the builder by way of supplementary agreement on 15.05.2017 (i.e., before the GST regime) whereas the construction will be completed during the GST regime.

AAR held that, the date of transfer of possession of the building or the right in it to the person supplying development rights will be the time of supply and the liability to pay tax on the said services shall arise on that day. The time of supply shall not be at any other time.

(ii) Hon’ble Highcourt Decision Regarding Tax evasion cannot be presumed merely based on e-way bill expiry:

(Applicant – Satyam Shivam Papers Pvt. Ltd.)

The Hon’ble Telangana High Court in *_Satyam Shivam Papers Pvt. Ltd. v. Assistant Commissioner ST & Ors. [Writ Petition No. 9688 of 2020 dated June 2, 2021]_* set aside the order in Form GST MOV-09 passed by the Revenue Department, imposing tax and penalty on the assessee due to the expiry of the e-way bill and Deprecated the Revenue Authority for blatant abuse of power in detaining goods by treating validity of the expiry on the e-way bill as amounting to evasion of tax Held that, no presumption can be drawn that there was an intention to evade tax on account of non-extension of the validity of the e-way bill by the Petitioner or the auto trolley driver.

(iii) Hon’ble Highcourt Regarding ITC allowable evenif not reflected in GSTR-2A:

(Applicant – St. Joseph Tea Company Ltd)

The recipients of the petitioner under its provisional registration (ID) for the period from 01.07.20217 to 09.07.2018 *shall not be denied ITC only on the ground that the transaction is not reflected in GSTR 2A*. It will be open for the GST functionaries to verify the genuineness of the tax remitted and credit taken. Ordered accordingly.

(iv) AAR On Papad of any size and shape will attract NIL GST:

(Applicant – Global Gruh Udyog)

Authority for advance ruling, Gujarat, held that For classification of a product its ingredients, manufacturing process and trade parlance is important and not it’s size and shape. Accordingly, papad of any size and shape will attract NIL GST. Earlier it was held that fryums attracts 18 % GST.

In this case goods such as such as Jeera papad, Red Chili papad, Green chilli papad, Rice papad, Pauapapad, Udadpapad, Mung papad and Black pepper papad are of different shapes and sizes but similar in respect of the ingredients, manufacturing process and use. We hold that due to advancement of technology, papad does not limit to the same age old traditional round shaped papad but can be in any desired shape and size. In the old era, usually `papad’ was manufactured manually, therefore it was easy for them to manufacture the Round Shape papad. In the modern era, by the advent of technology, the product is being manufactured by machines and dies of different shape and size is used in the machine. Therefore, with the help of dies of various size and shapes, it is convenient to manufacture different shapes and sizes of papad. Further, at entry No. 96 of Notification No. 02/2017-CT (Rate) dated 28-6-17, the description goods is Papad, by whatever name it is known, except when served for consumption’. The subject Goods e classified at HSN 19059040.

Disclaimer:

This publication contains information for general guidance only. It is not intended to address the circumstances of any particular individual or entity. Although the best of endeavour has been made to provide the provisions in a simpler and accurate form, there is no substitute to detailed research with regard to the specific situation of a particular individual or entity. We do not accept any responsibility for loss incurred by any person for acting or refraining to act as a result of any matter in this publication.

(Author is a well known Chartered Accountant at Ahmedabad. His Blogs on G S T are famous amongst readers)