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/

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Section 128 of Finance Act 2020 is as follows :

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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. 

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Eway bill expiry has been extended till 31.05.2020.

Full Details here : 

Notification

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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.

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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

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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.

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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

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