As per the said advisory, it is to be noted that GSTN has developed a functionality to generate automated intimation in Form GST DRC-01C which enables the taxpayer to explain the difference in Input tax credit available in GSTR-2B statement & ITC claimed in GSTR-3B. This feature is now live on the GST portal.

This functionality compares the ITC declared in GSTR-3B with the ITC available in GSTR-2B for each return period. If the claimed ITC in GSTR 3B exceeds the available ITC in GSTR-2B by a predefined limit or the percentage difference exceeds the configurable threshold, the taxpayer will receive an intimation in the form of GST DRC-01C.

Upon receiving the intimation, the taxpayer must file a response using Form DRC-01C – Part B. The taxpayer has the option to either provide details of the payment made to settle the difference using Form DRC-03, or provide an explanation for the difference, or even choose a combination of both options. In case, no response is filed by the impacted taxpayers in Form DRC-01C Part B, such taxpayers will not be able to file their subsequent period GSTR-1/IFF.

Also read our other related articles:

https://gstplatform.com/no-itc-reversal-for-gstr2a-mismatch-says-supreme-court/ https://gstplatform.com/return-filing-cannot-be-denied-at-any-cost-says-high-court/

The post New feature on GST portal – Form GST DRC-01C appeared first on GST Platform.

Section 128 of Finance Act 2020 is as follows :

Read Also : New TDS rates from 14.05.2020

In section 140 of the Central Goods and Services Tax Act, with effect from the 1st
day of July, 2017,—
(a) in sub-section (1), after the words “existing law”, the words “within such time and” shall be inserted and shall be deemed to have been inserted;

(b) in sub-section (2), after the words “appointed day”, the words “within such time and” shall be inserted and shall be deemed to have been inserted;

(c) in sub-section (3), for the words “goods held in stock on the appointed day subject to”, the words “goods held in stock on the appointed day, within such time and in such manner as may be prescribed, subject to” shall be substituted and shall be deemed to have been substituted;

(d) in sub-section (5), for the words “existing law”, the words “existing law, within such time and in such manner as may be prescribed” shall be substituted and shall be deemed to have been substituted;

(e) in sub-section (6), for the words “goods held in stock on the appointed day subject to”, the words “goods held in stock on the appointed day, within such time and in such manner as may be prescribed, subject to” shall be substituted and shall be deemed to have been substituted;

(f) in sub-section (7), for the words “credit under this Act even if”, the words “credit under this Act, within such time and in such manner as may be prescribed, even if” shall be substituted and shall be deemed to have been substituted;

(g) in sub-section (8), for the words “in such manner”, the words “within such time and in such manner” shall be substituted and shall be deemed to have been substituted;

(h) in sub-section (9), for the words “credit can be reclaimed subject to”, the words “credit can be reclaimed within such time and in such manner as may be prescribed, subject to” shall be substituted and shall be deemed to have been substituted.

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CBIC has issued various notifications on 05.05.2020.Due date for GSTR9 and GSTR9C for FY 2018-19 has been extended. 

Read Also : RBI relief measures 

Eway bill expiry has been extended till 31.05.2020.

Full Details here : 

Notification

The post GST New Notifications appeared first on GST Platform.

Changes in Rule 36(4) 

The limit for taking input tax credit on eligible invoices the details of which has not been uploaded by supplier has been reduced from 20% to 10% . Now only 10% ITC of uploaded invoices will be allowed for not uploaded invoices.

This provision will be applicable from 01.01.2020.Invoices on or after 01.01.2020 would be covered under this new rule.

New Rule 86A- Conditions for utilizing Input Tax Credit

The proper officer may restrict the facility of utilizing your credit available in Electronic Credit Ledger if

1. The credit has been taken without actual receipt of goods or services.

2. The supplier is found to be non existent from any place of business for which GST registration is taken by him.

3. The recipient is found to be non existent from any place of business for which registration is taken.

4. The tax in respect of such invoices has not been paid to the government .

5. The invoices on the basis of which Credit has been claimed is not in possession of the person claiming such credit.

Read Also : CBIC Notifications for Changes

Upon hearing if you satisfy the officer that conditions as specified above are no longer valid, he may allow the use of such amount in credit ledger.

The facility to utilize the credit will be initiated after the expiry of one year from the date of such restriction

Read Also : ITC FORMS IN GST

Changes in GST Waybill Rules

In rule 138(E) , earlier only GSTR3B is required to be filed by the taxpayers for generating waybill. Now this condition has been extended. Now If GSTR3B or GSTR1 are not filed for two consecutive tax periods waybill shall be blocked.

In short, GSTR3B and GSTR1 must be filed for the generation of waybill from the GST portal.

Late fees waiver and levy on GSTR1

As a one time measure, if your GSTR1 has not been filed for any tax period from July 17 to November 2019, you can file GSTR1 from 19.12.2019 to  10.01.2020 without any late fees.

After 10.01.2020 , late fees shall be applicable for filing late GSTR1 . Amount of late fees will be Rs 50 or 20 per day subject to maximum of 10000 as the case may be.

Quoting of DIN mandatory

CBIC has made it mandatory for quoting DIN on every communication, notices, summons etc issued to you the tax officers including emails communication .

This is done to maintain record and audit trail of the communications and validate authenticity of such notices, summons etc.

GST E Invoice

GST E invoices will be mandatory for you from April 2020 if your turnover exceeds 100 Crores for B2B transactions.

If turnover exceeds 500 Crores printing of QR Code will also be required on invoices.

Read Also : GST NEW RETURN 

GSTR9 and GSTR9C date extension

The due date to file GSTR-9 , GSTR-9C , GSTR-9A for FY 21017-18 has been extended till 31.01.2020 and for FY 2018-19 till 31.03.2020.

CHANGE IN POLICY FOR NON FILERS

To improve the compliance , CBIC has issued SOP for filing of GSTR-3B. As per the procedure :

• A system generated SMS will be sent to the you for reminding to file GSTR-3B  3 days before the due date.

• Immediately after the due date is passed if you failed to file GSTR-3B , SMS will be sent again to remind you of non filing.

• After 5 days of passing of due date , GSTR-3A notice will be issued requiring to file GSTR-3B within 15 days of GSTR-3A notice.

• If you failed to file return within 15 days , proper officer will assess your tax on Best Judgement basis taking into account the details in GSTR1 , Waybill , etc.

• The order will be issued in GST ASMT 13 and summary will be uploaded in DRC07

• If you file the valid return within 30 days of such order the proceedings will be deemed to be concluded.

• If you failed to file the returns even after 30 days , recovery proceedings will be initiated against you as per the provisions of Act.

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Read Also : GST NEW RETURN FILING

The post CBIC ISSUED 5 NEW NOTIFICATIONS appeared first on GST Platform.

Input Tax Credit in Gst is the main and key component of GST . Input Tax Credit means the credit of tax paid on inputs / inputs services / capital goods.

There are different forms in Gst for the purpose of Claiming Input Tax Credit in different cases. We will discuss there forms in details which are available in GST Portal.

For GST ITC 01

The form in GST ITC 01 shall be filed by persons who wish to claim Input tax credit in special circumstances.

This form can be filed for claiming Input Tax Credit  U/s 18 of CGST Act.

As per section 18(1)(a) of CGST Act , every person who is liable for registration in GST , get himself registered within 30 days of such date then he can claim ITC on stock  held  on the date immediately  preceding the date on which liability to take registration has arised.

The input credit for stocks held  as raw material, semi finished goods , finished goods can be claimed.

The Input credit on services and capital goods are not allowed under this provision of Gst.

This form cannot be filed if registration has not been taken within 30 days of liability date for registration.

To claim Input Tax Credit under this clause , Form Gst ITC 01 has to be filed online on Gst Portal.The details of invoice such as registration number of supplier , Invoice No , Invoice Date, Taxable Value  and Tax Amount needs to be declared in this form.

As per section 18(1)(b) of CGST Act , every person who takes voluntary registration in GST , can claim ITC for stock held in raw materials , finished or semi finished goods on the date immediately the date of registration.

For claiming the ITC  Form Gst ITC  01 form must he filed online and section 18(1)(b) shall be selected in the form. 

The details of invoice for which ITC needs to be claimed must be filed in this form.

As per section 18(1)(c) of CGST Act , if a registered person under composition  scheme shifted to regular scheme , then ITC for stock on raw material , semi or finished goods , capital goods on date of switching can be claimed.

The for GST ITC 01 must be filed online for the purpose of claiming input tax credit within 30 days of switching from composition to regular scheme.

As per section 18(1)(d) , in case any supply which was exempted subsequently becomes taxable , the registered person can claim ITC on stock of such goods as on the date of change.

The form GST ITC 01 is also required to be filed within 30 days of such change to claim input tax credit.

Read Also : GSTR3B NON FILERS ASSESSMENT

Form GST ITC 02  

This form is required to be filed by the taxpayer for transfer of input tax credit which remains unutilised.

In the event of sale , merger , change in constitution , death of proprietor etc of business , the balance of unutilised itc in the electronic ledger of old business can be transferred to new firm as per section 18(3).

The form ITC 02 has to be filed online by the old or transferor GSTIN. The eligible amount of input tax credit may be transferred through this form.

The condition to transfer input tax credit as per this provision is that the liabilities shall also be transferred from old to the new or transferee entity.

For GST ITC 03

This form is required for reversal of Input Tax Credit. In case a regular person who has claimed Input Tax Credit on purchases switches to composition scheme then ITC which is lying in his electronic ledger as on the date of switch shall be reversed through this form.

In case a taxable supply subsequently becomes exempt , then ITC on such stock of taxable supply must be reversed through this form.

The ITC balance should be debuted from the ledger and if stock is in excess of amount of corresponding ITC the balance has to be paid in cash.

The input credit on capital goods must also be reversed as per the above provisions.

If after reversal any balance remains in the electronic credit  ledger shall be lapsed.

Form GST ITC 04

This form is required to be filed quarterly by a principal in case the inputs or capital goods are sent to job worker for further processing.

The details of inputs sent to job worker on which credit has been claimed  by the  principal   must be declared.

The details of capital goods if any sent to job worker for use on which credit has been claimed by the principal must be declared in this form.

This form is also used to declare the finished products received after job work has been done  and was returned to principal within the time limits as per the provisions of Gst Act.

If the Finished products after job work was directly sold from the job worker premises then details of such supply must be declared.

If job worker sent the inputs received to another job worker , details of such movement of goods must also be declared in this form

This form is required to be filed quarterly by 25th of the following quarter.

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Grievance redressal committee will be constituted at state and zonal level to address the complains of taxpayers. This will comprise of CGST and SGST Officers along with representative of trade and industry and GST Practitioner, GSTN officers etc .

The due date for filing GST annual return in Form GSTR-9  and annual reconciliation statement in Form GSTR-9C for FY 17-18 has been extended till 31.01.2020 from 31.12.2019. For FY the due date for the same is 31.03.2020. The GST annual return and GST reconciliation statement is optional below 2 Crores.

Various measures will be taken to improve the filing of GSTR1 – Details of outward supplies :

A) The late fee would be waived of for filing GSTR1 from July 2017 to November 2019, if all the pending returns in form GSTR1 has been filed till 10.01.2020. After that late fees will be applicable for filing GSTR1.

B) Blocking of waybill to be implemented as per WAYBILL rules for not filing GSTR1 for two consecutive tax periods. Earlier, non-filing of GSTR3B was implemented for blocking of waybill. Thus , both GSTR1 and GSTR3B must be filed for previous two tax periods consecutively to generate waybill on the portal.

Input Tax Credit to the recipient in respect of invoices or debit notes which were not uploaded in GSTR2A shall be restricted to 10% of invoices that re uploaded. Currently, it is capped at 20% for such invoices.

Read Also : New ITC Rule 36(4) 

Read Also : Types of Registration Forms

The tax official will not allow the claim of input tax credit in case of fake invoices. The official can now block the input tax credit if it is claimed on the basis of fake invoices. For this suitable action will be taken by the tax officials for blocking fraudulently claimed itc on fake invoices.

A detailed operating procedure will be prescribed for the tax officers to take action against the non-filers of GSTR3B and suitable penalty and interest will be imposed on them  . This step will be in addition to blocking of waybill . In order to increase the compliance and increase the revenue CBIC will take these steps and laid down the procedures.

The due date for filing GST returns in Form GSTR3B , GSTR1 , GSTR7, GSTR8 for some of the districts of North East will be EXTENDED for November 2019 due to recent disturbances. Due date for filing GSTR1 and GSTR3B will be extended till 31.12.2019 and GSTR 7 and GSTR8 till 25.12.2019

The GST Council also approved many law related changes which will be brought in by amendments in GST Act in Union Budget 2020.

The GST Council also levied a single rate of 28% of Lotteries from 01.03.2020 for both categories such as State and Private Lotteries.

The GST Rate on woven and Non-Woven and sacks of polyethylene or polypropylene or the like having HSN code 3923/6305 has been increased from 12% to 18%.It shall be effective from 01.01.2020.

The GST Council also exempts the upfront amount payable for long term lease for industrial entity having 20% or more ownership of Central or State Government. Currently this limit is 50% . This change will be effective from 01.01.2020.

No waiver of late fees for filing GSTR-3B belatedly. Also,l there is no waiver for filing late GSTR-10 , Final returns which is required to filed upon cancellation of GST Number. The return must be filed within 90 days of cancellation order.

CLICK HERE TO DOWNLOAD THE PRESS RELEASE 

The post GST COUNCIL MEETING DECISIONS appeared first on GST Platform.

GST COUNCIL MEETING AGENDA 

GSTR9 AND GSTR9C DATE EXTENSION

The GST Council to take big decisions regarding date extension for filing GST Annual return in Form GSTR 9 and GST Audit reconciliation statement in Form GSTR- 9C for FY 2017-18.The filing for annual and reconciliation statement is due on 31^st December 2019.

CBIC has recently simplified the forms for GSTR9 and GSTR9C but the simplified forms are not available till date. As per GST Portal, the expected date for releasing the new and simplified forms is 21^st December 2019. Keeping this it is highly expected that the council may take decision on extension of the filing for extra month till 31.01.2020.

GST WAYBILL RULES TWEAKING 

The GST Council meeting is also expected to extend the blocking rule of waybill for non-filing of GSTR1. Presently, only the returns in GSTR3B is taken into consideration for blocking of waybill. If the returns in GSTR3B for two consecutive tax periods has not been filed then gst portal blocks such GSTIN for generating waybill. Now, to improve the compliance and ensure filing of GSTR1 , it may be decided to extend the blocking for GSTR1 also.

If GSTR1 or GSTR3B for two consecutive were not filed the ewaybill facility will be blocked for such GST numbers.

GST CREDIT BLOCKING 

The GST Council is also expected to take a call regarding, blocking of Input Tax Credit by the Tax Official. This decision may be taken on the backdrop of fake claims of Input Tax credit in GST on the basis of fake invoices. Already 25 states are using this method to plug the claims of Input Tax Credit on the basis of invoices that are not valid.

It may also be decided that all the past claims which are not valid may be reversed in the Electronic credit ledger in GST Portal . The reversal of Itc has to be done along with interest @ 24% as per the provisions of Section 50 of CGST Act .

GST CREDIT TO BE CAPPED @ 10%

Another big change on the agenda of GST Council ahead of crucial meeting on 18.12.2019 is regarding the capping of Input Tax Credit on invoices that has not been uploaded by the supplier.

Recently, CGST Rules were amended to insert new provisions in Rule36 (4) , which says that the input tax credit in respect of invoices not uploaded will be capped at a maximum of 20% of invoices that has been uploaded. To understand this rule you may read this article also.

Now the decision may be taken to reduce the percent of 20% to 10% of valid and eligible invoices for which credit will be allowed in respect of invoices not uploaded.

GST RETURN DUE DATE EXTENSION 

GST council meeting scheduled to held tomorrow may also extend the due date for filing GST Returns in form GSTR3B , GSTR1 , GSTR7 ,. GSTTR8 for North Eastern states due to disturbances in these areas after passing of Citizenship Amendment Act. The due date for filing GSTR3B for November 2019 may be extended from 20.12.2019 to 31.12.2019.

For filing GSTR1 monthly for November 2019, due date may be extended from 11.12.2019 to 31.12.2019

For filing GSTR7 and GSTR8 for November 2019 ,  due date may be extended from 10.12.2019 to 25.12.2019.

GST AMENSTY SCHEME FOR NON FILIERS

GST council in a measure to give relief to tax payers and augment revenue, may allow filing of GSTR1 under GST amnesty scheme. Gstr1 may be allowed to file without any penalty from July 17 to November 2019 . This scheme will be applicable if all GSTR1 pending will be filed till 10.01.2020.

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Gst has undergone various changes since its inception. Some of the important and crucial new provisions  in GST are discuss  below for the benefits of taxpayers.

New provisions in GST one must know  includes changes in Input Tax Credit Rules , Gst Interest calculation , Gst waybill rules, GST Cancellation or suspension and Revocation of canceled GSTIN 

GST INPUT TAX CREDIT NEW RULE :

New rule 36(4) was inserted in CGST Rules from 09.10.2019 which prescribes that the Input Tax Credit shall not be allowed fully for invoices not uploaded. Every registered person shall be entitled to Input Tax Credit in respect of eligible invoices uploaded by supplier in GSTR1. In respect of eligible invoices Input Tax Credit shall be capped at 20 % of eligible invoices that had been uploaded in GSTR1.

In simple terms , full input tax credit will be allowed if 83.33% of eligible invoices had been uploaded .

For example – Suppose purchase has booked in accounts for Rs 100000 for Nov 19 and Eligible Input Tax Credit out of such amount is Rs 80000. Invoices uploaded in gstr 1 is only of Rs 50000. Now the itc for Nov 19 will be Rs 50000+20% of 80000 = 66000 instead of Rs 80000. Balance itc will be claimed in the period in which renaming invoices for covering 83.33% of Eligible Itc has been uploaded.

In order to calculate the amount of Input Tax Credit as per new rule , only TAX INVOICES and DEBIT NOTES shall be considered . Tax paid of Reverse charge basis , IGST on imports etc shall not be taken into consideration. Full ITC will be allowed in respect of these invoices .

The cut off date to reconcile the GSTR2A to calculate Input Tax Credit  shall be taken as the due date to file GSTR1 by the corresponding supplier.

Also Read : GSTRB FILING SMS FOR NOVEMBER 

Also Read : GST REGISTRATION LIMIT

GST INTEREST NEW CALCULATION.

Section 50 of CGST Act deals with the payment of interest on late payment of taxes or wrong utilization of input tax credit. The interest rate for late payment of tax shall be charged @18 % per annumn. The interest rate for wrong availment of itc shall be charged @24% Per annumn.

Earlier the interest was being charged on gross liability without giving the benefit of itc in case of delayed filing of gst returns. After the changes in Gst act , interest will be charged only in the amount debited from cash ledger except in case of Section 73,74.

GST WAYBILL RULES

The GSTIN of the registered person shall be blocked from generating the e waybill in gst portal it two consecutive gst returns has not filed. If the GSTR3B for consecutive two tax periods has not been filed by a registered person then Part A of Gst Ewb 01 will be blocked for such GSTIN . Neither supplier , purchaser or transporter can generate waybill on such GSTIN. To unblock the GSTIN  for waybill pending  GST Returns must be filed and unblocking will be done by GST Portal

GST SUSPENSION

The period from the date of application for cancellation till the date of cancellation order will be treated as suspended period. During the period for which Gstin was suspended no taxable supply shall be made and no tax shall be collected by such supplier. During suspension period Gst returns is not required to be filed for the gstin which is suspended. The liability upto the date application for cancellation shall remain intact even if gstin was canceled. The amount of tax , interest ,late fee leviable upto such date must be paid. If cancellation is approved then within 90 a final return must be final in Form Gstr-10.

To revoke the canceled gstin by the tax officer , application must be made in REG 21 after filing all the due gst returns. All returns upto the date of filing of revocation application must be filed. Any tax , interest , late fee due on such returns must be paid to get gstin restores by the department.

Gst registration changes.

For taking new gst registration , the bank account details is not required at the time of filing GST REG 01 online. The bank details shall be provided after registration has been granted and after first login. The option to file bank details will be provided as a non core field amendment . Registration can be taken online in GST Portal 

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CBIC has issues five notifications making changes in CGST Rules , common portal for generating e invoices , persons required to generate e invoices , changes in rule 46 of gst , registered persons who shall mention QR code in invoices mandatory.

Download the notifications Here

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