By CA Vipul Khandhar
- The CBIC has extended the GST Amnesty Scheme till 30th November 2021:
- The Government, vide Notification No. 19/2021- Central Tax, dated 01.06.2021, had provided relief to the taxpayers by reducing / waiving late fee for non-furnishing FORM GSTR-3Bfor the tax periods from July, 2017 to April, 2021, if the returns for these tax periods are furnished between 01.06.2021 to 31.08.2021. The last date to avail benefit of the late fee amnesty scheme, has now been extended from existing 31.08.2021 to 30.11.2021.
- The CBIC vide notification no. 33/2021-Central Tax dated 29.08.2021 extended the last date to avail the GST amnesty scheme, under which taxpayers have to pay a reduced fee for delayed filing of monthly returns, by three months till November 30.
|Sr. No.||Criteria||Late Fee Quantam||Condition|
|1||For the Period Of Jul-17 to April-2021||Pending GSTR-3B returns are to be filed between 01.06.2021 to 30.11.2021|
|(a) No Tax Liability||Maximum Rs.500|
|(b) Other Cases||Maximum Rs.1000|
|2||For the Period After April-2021||——|
|(a) No Tax Liability||Maximum Rs.500|
|(b) Other Cases|
|(i) Turnover upto Rs.1.5 Cr||Maximum Rs.2000|
|(ii) Turnover between Rs.1.5 cr to 5 cr||Maximum Rs.5000|
|(iii) Turnover above Rs.5 cr||Maximum Rs.10000|
- CBIC extends due date of filing Revocation Application of Cancellation:
(Notification No.34/2021-Central Tax)
Based on the multiple representations received, Government has also extended the timelines for filing of application for revocation of cancellation of registration to 30.09.2021, where the due date of filing of application for revocation of cancellation of registration falls between 01.03.2020 to 31.08.2021. The extension would be applicable only in those cases where registrations have been cancelled under clause (b) or clause (c) of sub-section (2) of section 29 of the CGST Act.
- Facility of GST Returns Through EVC:
The filing of FORM GSTR-3B and FORM GSTR-1/ IFF by companies using electronic verification code (EVC), instead of Digital Signature certificate (DSC) has already been enabled for the period from 27.04.2021 to 31.08.2021. This has been further extended to 31st October, 2021. [Refer Notification No. 32/2021- Central Tax, dated 29.08.2021].
- New Functionality On GST Portal:
- Up-to 6 preferred banks will be shown to a taxpayer while making e-Payment on GST Portal. When a taxpayer makes the first payment, the GST portal will automatically add the selected bank and it will get updated in the Preferred Banks list. Taxpayer can delete any of the preferred banks at any point of time.
- Taxpayers can now easily Import the E-way Bill data using the “Import EWB Data” tab available on GST Portal on the Form GSTR-1 page –
– 4A, 4B, 4C, 6B, 6C – B2B invoices
– 5A, 5B – B2C (Large) invoices
– 12 – HSN wise summary of outward supplies.
- Now QRMP taxpayers can file NIL Returns through SMS.
- Nil filing of Form GSTR-1 (Qtrly) through SMS has been enabled for taxpayers under QRMP Scheme. They can now file it by sending a message in specified format to 14409.
- The format of the message is < NIL > space < Return Type (R1) > space< GSTIN > space <Return Period (mmyyyy) >
- However, NIL filing through SMS can’t be done in following scenarios:
– If IFF for Month 1 or 2 of a quarter is in Submitted stage, but not filed.
– If invoices are Saved in IFF for Month 1 or 2 of a quarter, which was not submitted or filed by due date.
- Reconciliation statement (GSTR-9) for the FY 2020-21 is now available on the GST portal – Due date 31.12.2020:-
The government has issued various notifications providing the details for filing of annual return in Form GSTR-9 and reconciliation statement in Form GSTR-9C for FY 2020-21. In continuation to that now the GST portal available for filing GSTR 9C
(i) NIL GSTR-9 RETURN can be filed, if you have:
- Not made any outward supply (commonly known as sale); AND
- Not received any inward supplies (commonly known as purchase) of goods/services; AND
- No liability of any kind; AND
- Not claimed any Credit during the Financial Year; AND
- Not received any order creating demand; AND
- Not claimed any refund.
during the Financial Year
(ii) GSTR-9 can be filed online. It can also be prepared on Offline tool and then uploaded on the Portal and filed.
(iii) Annual return in Form GSTR-9 is required to be filed by every taxpayer registered as normal taxpayer during the relevant financial year unless exempted by Government through notification.
(iv) All applicable statements of Forms GSTR-1/IFF and returns in Form GSTR-3B of the financial year should have been filed before filing GSTR-9.
(v) In case, you are required to file GSTR-9C (Reconciliation statement and Certification), the same shall be enabled on the dashboard post filing of GSTR-9.
- GSTN notifies Restriction on Filing of GSTR-1 or IFF for default in filing of GSTR-3B:-
- The GST network has notified implementation of Rule-59(6) on GST Portal wherein the restriction on filing of GSTR-1 or Invoice Furnishing Facility (IFF) for default in filing of GSTR-3B. Rule-59(6) of CGST Rules, 2017; inserted vide Notification No. 1/2021 dated 1st January 2021.
- This provision has been restriction in filing of GSTR-1 the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for preceding two months; and a registered person.
- Who has required to furnish return for every quarter under the proviso to sub-section (1) of section 39, shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in FORM GSTR-3Bfor preceding tax period.
- This Rule will be implemented on the GST Portal from 1st September, 2021.GSTN said that “Implementation of Rule-59(6) on the GST Portal will be completely automated, similar to the blocking & un-blocking of e-way bills as per Rule-138E and facility for filing of GSTR-1 will be restored immediately after filing of relevant GSTR-3B. No separate approval would be needed from the tax-officer to restore the facility for filing of GSTR-1,” the GSTN said. “To ensure no disruption in filing GSTR-1/IFF, taxpayers who have not filed their pending GSTR-3B, especially from November 2020 and afterwards may do so at the earliest,” the GSTN added.
- CBIC enables Payment of Customs Duty on ECCS Courier Imports through it’s E-Payment Gateway:-
The CBIC has enabled payment of customs duty on Express Cargo Clearance System (ECCS) courier imports through it’s e-payment gateway for faster and better taxpayer service. The Express Industry Council of India (EICI) has jointly with the Indian Customs has developed and implemented the Express Cargo Clearance System (ECCS) as a pilot at Courier Terminal. ECCS is an automation programme to carry out clearance processes under the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010. The government has further empowered the taxpayer with the new facility of payment of customs duty on ECCS courier imports through it’s e-payment gateway.
- Recent AAR & Judicial Decisions:-
(i) AAR On GST applicable on Hiring of Non-AC Buses to Company for Transport of Staff:
(Applicant – M/s Pooja Vaishnavi School Bus Services)
The Maharashtra Authority of Advance Ruling ruled that GST is applicable on the hiring of Non-AC buses to Company for Transport of Staff. The applicant, entered into a contract with company for the supply of NON AC Buses for transportation of their staff under contract carriage.
As the applicant is supplying Non AC Buses, whether GST is applicable for the same contract and applicability of “SI No. 15 Heading 9964 of Notification No. 12/2017 – Central Tax (Rate) dated June 28, 2017. It is company that controls the deployment of the buses. A perusal of the agreement reveals that the applicant shall deploy the buses (already inspected by company) or as per instructions of the Admn. Dept of company, etc., will be paid by the applicant whereas toll tax, etc will be paid by company.
Thus while the ownership of the buses lies with the applicant, the buses shall be operated strictly as per the instructions of company. Therefore in the subject case, there is a clear transfer of right to use the buses by way of effective control as is seen from the fact that the buses are plying strictly as per compnay’s instructions.
The AAR ruled that in the case of transportation of passengers, the recipient of service would be the passenger whereas in the case of renting any motor vehicle, like buses in the subject case, the recipient would not be the passenger. In the subject case, the consideration for the supply of service is charged from company and not the passenger. Therefore in the subject case, it is clear that the recipient is company. Hence, we have no hesitation in holding that the subject activity, amounts to ‘renting of a motor vehicle’ and shall qualify as a taxable activity under the provisions of the GST Laws. Since the subject activity is not ‘transportation of passengers’ as discussed, the provisions of notification no. 12/2017 Central Tax (Rate) dated 28.06.2017 is not applicable in the subject case.
(ii) AAR On Reimbursement received of Stipend paid to Trainees exempted from GST:
(Applicant – Yashaswi Academy for Skills)
The Maharashtra AAR ruled that reimbursement received of the stipend paid to trainees exempted from Goods and Service Tax (GST). The Applicant Company, Yashaswi Academy for Skills is registered as an Agent under National Employability Enhancement Mission (NEEM). NEEM agent is a facilitator for extending support for mobilizing the trainees under the NEEM Scheme of the Government of India as per regulations under the notification issued by the All India Council for Technical Education (AICTE) for providing trainees on-the-job practical training in industries to enhance their future employability. For that purpose, NEEM agents enter into agreements with various companies/ organizations (called as industry partners) who impart actual practical training to the students.
(iii) AAR On GST applicable on Research and Development Services on Goods Physically made available by Foreign Entities:
(Applicant – M/s. Hilti Manufacturing India Pvt.Ltd.)
The Gujarat AAR ruled that the IGST applicable on Research and Development Services on goods physically made available by foreign entities. The applicant, has submitted that they have been granted approval from Development Commissioner (KASEZ) to operate as an 100% Export Oriented Unit (EOU) vide permission. They have been granted permission as per LUT as an 100% EOU to manufacture products such as Easicut diamond impregnated segments, Easicut diamond segmented saw, Continuous type saw, Turbo Type saw, Diamond core bit drills, Aluminium Flange for diamond wheels, Copper washers and blister moulds. They have been granted license for private bonded warehouses under 100% EOU Scheme bearing License.
AAR held that this situation is covered at Section 13(3)(a) of IGST Act. Thus, as per said section 13(3)(a) of IGST Act, the place of supply of the following services shall be the location where the services are actually performed, i.e. location of the applicant. As the services provided by the applicant are in the form of R&D activity undertaken on the sample goods provided by the recipient i.e. the sample goods have to be made physically available by the recipient to the applicant in order to enable the applicant to provide the services. Therefore, the place of supply of service in the present case will be the location where the services are actually performed. The place of supply of services is therefore, Gujarat.
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.
(The Author is a renowned Chartered Accountant practicing at Ahmedabad)