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Covid-19 Pandemic is being dubbed as the worst disaster of this century so far which has resulted in forced lock down measures across the globe. Every business sector barring few have been affected by this Pandemic causing a serious dent in their cash flows and profits. In India, Central Government forced the nationwide lock down on 24th March. However,various relief to businesses were announced by government as part of their AatmaNirbhar (Self-Reliant) Bharat (India). On similar lines, CBIC (Central Board of Indirect Taxes & Customs) has announced relief measures pertaining to GST law and compliance to help businesses. These relief measures range from Relaxations & Extensions in Return Filing as well as regarding applicability of certain provisions under GST Law.This article covers all such measures in detail. Relaxations & Extensions given in Filing Dates of GSTR-3B (Notification No.54/2020-CT dated 24th June 2020) For Taxpayers having Aggregate Turnover > Rs.5 Cr in ...

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 Goods & Services Tax Network (GSTN) Portal has recently released Frequently Asked Questions (FAQs) related to filing of "Nil" GSTR-1 through Simple Messaging Service (SMS) Facility. The Central Board of Indirect Taxes & Customs (CBIC) via Notification No.44/2020-CT dated 8th June 2020  amended Rule "67A" of CGST Rules,2017 by prescribing that a Taxpayer can File "Nil" Return in Form GSTR-1 and GSTR-3B through SMS Facility. "Nil" Return was explained as a Return under Section 37 for a tax period that has nil or no entry in all Tables in Form GSTR-1. However, The Manner of Filing Return through SMS was not provided by CBIC. Thus, with these FAQs GSTN Portal has now prescribed the manner of filing of GSTR-1. Some of the Important FAQs which a taxpayer should be aware of in order to file "Nil" GSTR-1 return are: 1. When can Form GSTR-1 be filed as Nil? Ans. Form GSTR-1 can be filed as a nil return if there are no outward suppli...

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 Central Board of Indirect Taxes & Customs (CBIC) has notified vide instruction no.CBEC-20/06/11/2020-GST dated 17th July 2020 to dispose of all pending applications of Registration on or before 30th July 2020 as a "special drive". Sub-Section 10 of Section 25 of CGST Act, 2017 read with Rule 9 of CGST Rules, 2017 provides that Application of Registration shall be deemed as approved after a period of three working days if the proper officer fails to take any action on the said application within the said period of three working days. Strong apprehensions were raised on the possible misuse of the deeming provision during the COVID lockdown period, where either the central/state tax offices were closed or were functioning with skeletal staff. Since lockdown applied across all establishments including those belonging to the Governments (Central and State), during the lockdown period there being no "working days", it had been decided that the approval of the ap...

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) waived off late fees payable under Section 47 of CGST Act,2017 for the delay in furnishing of Form GSTR-1 i.e. Details of Outward Supplies under Section 37 of CGST Act,2017 for the period March 2020 to June 2020. CBIC in its Notification no.53/2020-CT dated 24th June 2020 prescribed that the amount of late fee payable under Section 47 of CGST Act,2017 shall stand waived for registered persons who fail to furnish the details of outward supplies in Form GSTR-1 by the due date but files his return on or before the dates mentioned in the table below. For Taxpayers required to furnish GSTR-1 on a monthly basis: For Taxpayers required to furnish GSTR-1 on a quarterly basis: This Notification amends the earlier Notification issued on 3rd April 2020 wherein late fee was waived for the period March 2020 to May 2020 if GSTR-1 was filed till 30th June 2020.Issuance of the above notification scraps off the earlier notification. Earlier on ...

The Central Board of Indirect Taxes & Customs (CBIC) vide its Notification no.58/2020-CT dated 1st July 2020 has enabled to file returns under form GSTR-1 and GSTR-3B through Short Messaging Service (SMS) facility. CBIC has substituted Rule 67A of CGST Rules, 2017 namely “67A. Manner of furnishing of return or details of outward supplies by short messaging service facility."  which prescribes that A Registered Person who is required to furnish a "Nil Return" under Section 39 in Form GSTR-3B or a "Nil details of Outward Supplies" under Section 37 in Form GSTR-1 through an SMS using the registered mobile number and such return shall be verified by the registered mobile number through One Time Password (OTP) facility. Earlier, CBIC had allowed the filing of "Nil" GSTR-3B through SMS facility. This Notification amends the CGST Rules, 2017 by bringing in the Eighth Amendment and shall come in force from 1st July 2020. With this Amendment, filing of ...

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...

Ministry of Finance(MoF) vide its Press Release dated 15th July 2020 issued " Clarification on the issue of GST Rate on Alcohol-based Hand Sanitizers ". This Clarification seeks to declutter the issues surrounding the Alcohol-Based Hand Sanitizers since many representations were made to MoF seeking exemption from GST for the Hand Sanitizers on account of them being essential goods in the times of Covid-19 Pandemic. This Clarification has finally put to rest the misinformation about the applicability and rate of GST for Hand Sanitizers.A Recent AAR Ruling  issued on 29th June 2020 by Goa Authority for Advance Ruling prescribed a rate of 18% for Alcohol-Based Hand Sanitizers by categorizing them under HSN Code 3808. However, the limitation of the applicability of AAR Ruling still made the issue unresolved within the Industry. Thus, with this clarification, MoF has made it clear that hand sanitizers shall attract the rate of 18% under GST. It also clarified that Inputs for manu...

The Central Board of Indirect Taxes (CBIC) vide  Notification No.51/2019-CT  dated 24th June 2020 provided relief to Taxpayers by reducing/waiving off interest for taxpayers.CBIC has categorised the taxpayers according to the revenue generated by them in the previous financial year i.e. FY:2019-20. CBIC has categorised the taxpayers into two categories- Taxpayers with Revenue exceeding Rs.5 Crores in FY:19-20 and Taxpayers with Revenue up to Rs.5 Crores in FY:19-20. Taxpayers having revenue up to Rs.5 Crores have been further categorised depending upon their Registered Place of Business.  Relief has been given accordingly as per the category under Taxpayer falls in the table given below: Note:  If Return in Form GSTR-3B is filed after the extended date prescribed by CBIC in this notification then the interest rate would be applicable under Section 50(1) of CGST Act, 2017 at 18% per annum from the extended date as prescribed by CBIC in this notification. For E.g. , If...