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The 42nd GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt Nirmala Sitharaman through video conferencing on 5th October 2020. The meeting was also attended by Union Minister of State for Finance & Corporate Affairs besides Finance Ministers of States & UTs and senior officers of the Ministry of Finance & States/ UTs. The GST Council has made the following recommendations: 1. Levy of Compensation Cess to be extended beyond the transition period of five years i.e. beyond June, 2022, for such period as may be required to meet the revenue gap. Further details to be worked out. 2. Centre is releasing compensation of ₹ 20,000 crore to States today towards loss of revenue during 2020-21 and an amount of about ₹ 25,000 crore towards IGST of 2017-18 by next week. 3. Enhancement in features of return filing:In its 39th Meeting held in March 2020, the Council had recommended an incremental approach to incorporate features of the new return sy...

‘E-Invoicing’ for certain classes of taxpayers has come into effect from 1-10-2020. Keeping in view the hardships faced by the taxpayers due to COVID-19 lockdown and as some of these taxpayers are still not ready, as a last chance, Government had given relaxation that invoices raised by notified taxpayers during October, 2020 without following e-invoice procedure (i.e. uploading invoice details on e-invoice portal (IRP), obtaining IRN and issuing invoice with QR Code) will be deemed to be valid and no penalty will be there if the IRN for such invoices is obtained within 30 days of date of invoice. Further, vide notifications (Central Tax) 70/2020 and 72/2020 dated 30-9-2020, certain amendments and additions were made in respect of e-invoicing. Below is the summary of amendments: Regarding aggregate turnover threshold, it was specified that those who crossed Rs. 500 Cr. in any preceding financial year from 2017-18 onwards, will be covered. Supplies for ‘exports’ are also specifically i...

I.Relief to Composition Taxpayers in late fees for delayed filing of Form GSTR-4 (Quarterly Return): Vide Notification No 67/2020 dated 21.09.2020, the taxpayers who were under Composition Scheme, during any period till 31st March, 2019, have been provided relaxation in payment of late fees, on filing Form GSTR-4 (Quarterly Return). This relaxation is available, if Form GSTR-4 (Quarterly Return) is filed by them, between 22nd Sept., 2020 and 31st Oct., 2020, for any tax period of financial year 2017-18 or 2018-19. The details are as given below: II.Relief in late fees for delayed filing of Final Return in Form GSTR-10 Vide Notification No 68/2020 dated 21.09.2020, the taxpayers who had failed to file final return, in Form GSTR-10, by due date, have been provided relaxation in payment of late fees, on filing of Form GSTR 10 (Final Return). Such taxpayers can now file Form GSTR 10 (Final Return) between 22nd Sept., 2020 and 31st Dec., 2020, by paying a maximum late fee of Rs 500 (Rs 25...

The GSTN Portal has now done away with the mandatory requirement of linking of credit notes with Invoices Nos. issued by the Supplier while filing of GSTR-1, GSTR-6 or Filing of Refunds. Till now, original invoice number was mandatorily required to be quoted by the taxpayers, while reporting a Credit Note or Debit Note in Form GSTR-1 or Form GSTR-6. The taxpayers have now been provided with a facility on the GST Portal to: Report in their Form GSTR-1 or in Form GSTR-6, single credit note or debit note issued in respect of multiple invoices Choose the note supply type as Regular, SEZ, DE, Export etc., to identify the table to which such credit note or debit note pertains Indicate Place of Supply (POS) against each credit note or debit note, to identify the supply type i.e. Intra-State or Inter-State Debit /Credit Notes can be declared with tax amount, but without any taxable value also i.e. if credit note or debit note is issued for difference in tax rate only, then note value can be re...

The Reserve Bank of India(RBI) issued its Bi-Monthly Monetary Policy Statement via a Press Release. RBI Governor Shaktikant Das addressed the media and put forward the highlights and the major changes that have been brought in by the Monetary Policy Committee. Similar to the June 2020 Monetary Policy Statement, this time too, RBI focused on easing the financial stress caused by the Covid-19 Disruptions. Following are the focal points of the Monetary Policy Statement issued by RBI today: 1.Monetary Policy Committee (MPC) decided to keep the Repo Rate unhinged at 4 Percent. Consequently, the Reverse Repo Rate stands at 3.35 Percent and the Bank Rate stands at 4.25 Percent. The MPC decided to continue with the accomodative stance to revive growth and mitigate the impact of Covid-19 on the Indian Economy, while ensuring that inflation remains within the target going forward.  Assessments of Global Economy 1.MPC has assessed that the Contractions in the economic activity have been more ...

The Central Board of Indirect Taxes (CBIC) has recently confirmed the date of Applicability of E-Invoicing Regime under GST from 1st October 2020 onwards via Notification No.61/2020-CT dated 30th July 2020 . CBIC has now changed the limit of turnover earlier specified by it for Taxpayers Required to Issue Invoice with Invoice Reference Number (I.R.N.) from E-Invoice System.Taxpayers with turnover exceeding Rs. 500 Crores in a financial year are required to Generate E-Invoice as against Taxpayers having Turnover exceeding Rs.100 Crores in a Financial Year as prescribed earlier by CBIC. For Starters, E-Invoicing System was introduced via  Notification No.70/2019-CT dated 13th December 2019 by CBIC for Taxpayers having turnover exceeding Rs.100 Crores in a Financial Year from 1st April 2020. Due to Covid-19 Pandemic and the resulting disruptions in business operations, CBIC deferred the applicability of E-Invoicing Regime from 1st October 2020 onwards instead of 1st April 2020 via No...

The Goods & Services Tax Network(GSTN) Portal has now enabled facility of filing GSTR-4 Annual Return by Composition Taxpayers. What is GSTR-4 (Annual Return)? GSTR-4 is an Annual Return which is required to be filed by Taxpayers who have opted for Composition Scheme. Such Taxpayers are required to file Annual Return under form GSTR-4 from FY:2019-20. How is it different from GSTR-4 Quarterly Return? Form GSTR-4 Quarterly Return was applicable up to the Tax Period ending on 31st March 2019, for composition taxpayers. Earlier, For Tax Periods up to 31st March 2019, Composition Taxpayers were required to file Form GSTR-4 Quarterly Return. From 1st April 2019, Composition Taxpayers are now required to file Form CMP-08 on a quarterly basis, Due Date of Filing GSTR-4 (Annual Return) The Due Date for Filing of GSTR-4 Annual Return is 30th April 2020 as prescribed by CBIC vide Notification No.21/2019-CT dated 23rd April 20. However, CBIC had not enabled the facility to file GSTR-4 on GST...

The Central Board of Indirect Taxes & Customs (CBIC) as part of the Government of India's (GOI) Covid-19 relief measures brought in a number of notifications to ease out the Compliance burden on the Taxpayers in the Current times of Pandemic. With Business Activities disrupted due to Several Lockdowns imposed as part of tackling the Coronavirus Crises, These measures were announced to offer some respite to Taxpayers as they adjust to the new normal of Working from Home and other social distancing measures. Several Notifications were issued in this regard and few more expected in the coming times. These notifications primarily aim at extending the timelines of compliances so that businesses can accomplish their compliances without any penal provisions enforced upon them. CBIC has extended timelines for Compliances such as filing of Details of Outward Supplies reported under Section 37 in form GSTR-1 , Return of Inward and Outward Supplies, Input Tax Credit availed, tax payable a...

Ministry of Finance(MoF) vide Instruction No.3/2/2020-GST  dated 24th June 2020 clarified the Subject Matter of "Payment of GST by Real Estate Promoter/Developer supplying construction of residential apartment etc, on the shortfall value of inward supplies from registered supplier at the end of the financial year" . To get a grasp of the whole matter, let us rewind back and understand an early Notification , wherein the Central Board of Indirect Taxes & Customs (CBIC) prescribed in one of the conditions of notification that w.e.f 1 April 2019, At least Eighty Percent of the value of inputs and input services(other than services by way of grant of development rights, long term lease of land or Floor Space Index, electricity, high-speed diesel, motor spirit, natural gas), used in supplying of construction service, shall be received by the promoter/developer from registered supplier only. In the case of the shortfall from the said threshold of 80 per cent, the promoter/devel...

The Central Board of Indirect Taxes & Customs (CBIC) has extended the due date for filing of GSTR-4 required to be filed by registered persons opting for composition scheme under GST vide its Notification no.59/2020-Central Tax dated 13th July 2020  for FY:2019-20. This Notification seeks to amend the Notification No.21/2019-CT dated 23rd April 2020 by substituting the due date from 15th July 2020 to 31st August 2020. A Taxpayer opting for Composition Scheme under GST is required to file GSTR-4 for a financial year on or before 30th April following the end of such financial year. Such Taxpayers are required to furnish only 1 return i.e. GSTR-4.  Such Taxpayers are also required to pay self-assessed tax under Form CMP-08 for every quarter or part thereof as the case may be till 18th of the month succeeding such quarter which. This form has in turn replaced GSTR-4 from FY:2019-20 (which was required to be file every quarter earlier) to make the tax compliance for Compositio...

The Central Board of Indirect Taxes & Customs(CBIC) has extended the due date for filing of Return under Form GSTR-3B for Taxpayers having turnover up to Rs.5 Crores for the month of August 2020 vide it Notification no.54/2020-CT dated 24th June 2020. Earlier CBIC had waived off/lowered interest rates for taxpayers having turnover up to Rs.5 Crores for the period February to July 2020 as part of Covid-19 relief measures. Now, CBIC has gone a step ahead and has prescribed a revised due date for Taxpayers having Turnover in previous FY up to Rs.5 Crores depending upon their place of registered business. For Taxpayers having turnover up to Rs.5 Crores in previous F.Y. having registered place of business in the States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands or Lakshadweep, shall furnish return under Fo...

The Central Board of Indirect Taxes & Customs (CBIC) vide its Notification no.50/2020-CT dated 24th June 2020 has amended Central Goods and Services Tax Rules,2017 (CGST Rules) by inserting a new entry for prescribing a new tax rate for category of suppliers who have opted for Composition Scheme under GST. CBIC has amended Rule 7 of CGST Rules, 2017 by inserting a levy of a tax rate of 6% (CGST-3% & SGST-3%)  for levy of composition scheme under Section 10(2A) of CGST Act,2017. What does Rule 7 of CGST Rules,2017 prescribe : The category of registered persons, eligible for composition levy under section 10 and the provisions of this chapter, specified in column(2) of the Table below shall pay tax under section 10 at the rate specified in column (3) of the table mentioned below: SI.No. Category of Registered Persons Rate of Tax (1) (2) (3) 1. Manufacturers, other than manufacturers of such go...

Central Board of Indirect Taxes & Customs ( CBIC ) vide its Notification no.48/2020-Central Tax dated 19th June 2020 has prescribed that a registered person under GST who is registered under Companies Act, 2013 shall be allowed to furnish his return in Form GSTR-3B and GSTR-1 through Electronic Verification Code ( EVC ) Mode. CBIC has amended sub-rule(1) in Rule 26 of Central Goods & Services Tax Rule, 2017 by substituting the second proviso and prescribing that Registered Person under GST having registration under Companies Act,2013 (Section 18 of Companies Act,2013) shall be allowed to furnish return under Section 39 in Form GSTR-3B during the period from 21st April 2020 to 30th September 2020 through EVC Mode. With this Notification, CBIC has also allowed furnishing the details of outward supplies under section 37 in Form GSTR-1 during the period from 27th May 2020 to 30th September 2020 through EVC mode by such registered persons. What is EVC Mode?-Electronic Verification ...

The Central Board of Indirect Taxes & Customs (CBIC) vide its notification no.46/2020-Central Tax dated 9th June 2020 has extended the Order for rejection of refund claims of GST under section 54 of CGST Act,2017 in wake of Covid-19 pandemic. Section 54 of CGST Act,2017 prescribes various kinds of refunds that a taxpayer can claim under the GST Act. Some of the Examples would be a refund of unutilised Input Tax Credit in case of Outward Supplies being Exports or zero-rated supplies to SEZ etc. As per section 54(5) read with section 54(7) of CGST Act,2017, Order of refund in full or part as per the satisfaction of officer shall be issued within sixty days of the receipt of the complete application of refund in all aspects. The Order of rejection of refund in part of in full can be issued as well if the proper officer is not satisfied with the refund application by the registered person. However, opportunity of being heard shall be given to the registered person via show-cause notic...

The Central Board of Direct Taxes(CBDT) vide Notification no.32/2020 dated 12th June 2020 has notified the Cost Inflation Index(CII) for the assessment year 2021-2022 and subsequent years by inserting "S.I.No.20". For Starters, Cost Inflation Index is basically a price inflation adjustment due to the timing difference between the date of purchase of asset and date of sale of the asset. It is present purchase value of the asset that is to be sold. Cost Inflation Index is a tool used in the calculation of an estimated yearly increase in an asset’s price as a result of inflation. The Central Government fixes this index and publishes it in its official gazette for measuring inflation. This index, notified each year by the Government is defined under Section 48 of the Income Tax Act, 1961. The intention of the legislature is to tax the real gain on transfer of the capital asset, not the profit due to inflation. In order to achieve this objective, the “Indexation” is introduced in...