GST Compliance

The GSTN has implemented mandatory mentioning of 6 digit HSN codes in GSTR-1 for turnover above 5 crore on the GST Portal. It shall be available for the taxpayers w.e.f. 1st August, 2022. It is noteworthy that the taxpayers are required to report minimum 4 digits or 6 digits of HSN Code in Table-12 of GSTR-1 on the basis of their Aggregate Annual Turnover (AATO) in the preceding Financial Year.

The petitioner was a registered dealer and engaged in the business of selling Ancle (Sweet Supari) and Varanasi Ashik (Betel Nut Product). It transported goods along with tax invoices & e-way bill which were intercepted by the department. For one consignment of three bags, tax invoice was handed over to the transporter but by mistake it left it behind and e-way bill was not generated as value was less than Rs. 50,000. The department detained whole consignment and it filed writ petition against the same.

The Honorable High Court observed that as per rule 138 of CGST Rules, if the value of the transaction is more than Rs. 50,000/- then only e-way bill is required. In the instant case, the department failed to show any authority or provision of the Act in support thereof for detaining goods. The departmental authorities had in illegal and in arbitrary manner referred the various discrepancies such as the pouches were not having batch number, packing date, expiry date, manufacturing date and referred that under the Food Safety Regulation, the said dates/details were required. But so far as the GST law is concerned, the authorities failed to record any provision for justification of the seizure of the goods in question. Therefore, it was held that department was not justified in detaining goods.

Shri Surya Traders

[2022] 137 taxmann.com 51 (Allahabad)[06-01-2022

Input Tax Credit regarding invoices and debit notes shall be available only to the extent they are furnished in GSTR-1 by the vendors and thus appear in GSTR-2A / 2B of the recipient. The mismatch will now cause more trouble.

The GSTR-1 return filing facility will be blocked if you have not submitted the return in FORM GSTR-3B for the previous two return periods. For example, if a taxpayer has not filed GSTR-3B for October 2021 and November 2021, the GSTR-1 filing facility will be blocked from the 1st January 2022.

Be sure the correct GST return

100% Matching Concept

Bank update for the entity who has taken new registration but have not yet furnished the same has been introduced, in view of Rule 10A of the CGST Rules 2017. Entities are required to update their Bank Account Details within 45 days of the first login henceforth.

Functionality to register complaint on misuse of PAN in GST Registration: GSTN Update Dated June 29th, 2021


In order to address the complaint related to misuse of PAN for obtaining GST registration, a functionality to register such complaints on GST Portal has been introduced. It will check the misuses, control the frauds and help officers in enquiry and cancellation of such registration.

Once complaint is registered, it will be sent to the concerned jurisdictional authority where the registration is claimed to be fraudulently taken, for necessary enquiry and suitable action. In this document, the process of registering complaint is prescribed.

For sales above 5 cr, file GSTR-3B of Mar by 5 May & for others by 20 May. QRMP filers can file till 22/24 May. No late fee but interest payable.

28-07-2020 is last date to file GSTR-1 of May 2020 for Sales above 1.5 Cr in 19-20. Wef 29.7.20, pay Late Fee from original due date i.e.11.6.20.

CBIC further extends the due date for filing Annual Return for F.Y 2018-19 till September 30, 2020

Notification No. 41/2020-Central Tax

Today (5.5.20) is last date to file GSTR-3B for March for those with turnover more than Rs. 5 cr in 18-19 without interest. Interest @ 9% pa wef 6.5.20

GSTR-1 Due Dates ICAI

GSTR-3B Due Dates and Interest liability for filing Form GSTR -3B

Extension of last date to fileGST9 & GSTR9C for 18-19 till 30.6.20, mandatory if annual turnover exceeds Rs5 cr.GSTR-1 & 3B to continue till Sep 2020.

To curb fake invoicing and fraudulent passing of ITC, restrictions to be imposed on passing of the ITC in case of new GST registrations, before physical verification of premises and Financial KYC of the registered person.

A new facility called ‘Know Your Supplier’ to be introduced so as to enable every registered person to have some basic information about the suppliers with whom
they conduct or propose to conduct business.

e-invoice Mandatory wef 1.4.20 for Turnover above 100 cr. Invoice dt Apr 2 can be uploaded as e-invoice on Apr 2 or 3, not before or after that.

31.3.20 is last date to apply for Composition Scheme for 20-21 in GST CMP-02. Existing Composition persons not to apply again.

जाली इनपुट टैक्स लेने वालों लोगों को जेल की हवा खानी पड़ सकती है अपने सलाहकारों से इनपुट टैक्स लेने के नियमो को सही तरह से समझे

Where applicant has himself built marriage hall for which he has received various goods such as cement, steel, sand, tiles, bathroom fittings etc. as inputs and services by architect, labour contractor etc. as input services and was using same to rent out to customers for occasions i.e. furtherance of his business, therefore, as per section 17(5)(d), no input tax credit is available on any goods or services received by applicant for such construction even if used in course or furtherance of business.

AUTHORITY FOR ADVANCE RULINGS, TAMILNADU

Sree Varalakshmi Mahaal LLP, In re

नव वर्ष की शुभ बेला पर आप और आपके परिवार के सभी सदस्यों को मेरी तरफ से हार्दिक शुभकामनाऐं। "

सी. एम.जैन, सी. ए.
दिल्ली

GSTR-1 & 3B to continue till Mar 2020. New returns wef Apr 2020. Soon Restrictions on ITC availment where returns not furnished by suppliers.

File GSTR-9 & 9C for turnover above 2 cr. Composition Suppliers & others with turnover upto 2cr exempt from filing GSTR-9A/9 only for 17-18&18-19.

Today (11.05.19) is the last date to file GSTR-1 for the month of April 2019 by Regular and Casual suppliers (Turnover exceeds 1.5 crores)

GST input credit

No ITC if GST Returns not filed. Pay Interest on Entire Liability (no reduction of ITC). Megha Engg & Infrastructures Ltd Vs CCT, Telangana HC.

E-way bill can’t be generated if the registered person has not filed return for 2 consecutive tax periods

Vide notification no. 22/2019-Central Tax dated April 23, 2019 CBIC announces June 21, 2019 to be the date from which no person (including a consignor, consignee, transporter, an e-commerce operator or a courier agency) shall be allowed to furnish the information in PART A of FORM GST EWB-01 in respect of a registered person, whether as a supplier or a recipient, if he has not furnished the returns for two consecutive tax periods.

Hon’ble Telangana High Court on the issue of payment of interest on 'Gross Tax Liability' or 'Net Tax Liability' under the GST laws.

In the case of Megha Engineering & Infrastructures Ltd. v. Comm. of Central Tax (WP no. 55517 of 2018), Hon’ble Telangana High Court held that the claim of respondents revenue for interest liability on Input Tax Credit (ITC) portion of the tax liability cannot be found fault with. That is to say, interest for the delayed payment of output tax liability of GST shall also be required to be paid on the liability paid by way of ITC.

Question for ruling before the Hon’ble Court was “Whether the liability to pay interest under Section 50 of the GST Acts, 2017 is confined only to the net tax liability or whether interest is payable on total tax liability including a portion of which is liable to be set-off against ITC”?

The Court first referred to the entire scheme of the provisions dealing with ‘availing of ITC’ and ‘utilization thereof’ viz.- Section 39 (Filing of Returns), Section 16 (Eligibility of ITC), Section 41 (Provisional claim & Acceptance of ITC) and Section 49 (Payment of Tax).

Among these sections, emphasis was placed on Sub-Section (4) of Section 49 which reads as:

The amount available in the electronic credit ledger may be used for making any payment towards output tax under this Act or under the Integrated Goods and Services Tax Act in such manner and subject to such conditions and within such time as may be prescribed.

Thereafter, Sub-section (1) of Section 50 of was referred. Sub-Section (1) reads as:

Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen per cent., as may be notified by the Government on the recommendations of the Council.

It was observed that, output tax liability can paid by way of Electronic Credit Ledger (ELC) as per Sub-Section (4) of Section 49 (i.e. until the payment liability is not actually settled off (GSTN portal set-off) from ELC, the same cannot be considered to have been paid into the government treasury and interest meter will keep on running). Mere availability of the ITC in ELC would not tantamount to the payment of tax.

Moreover, it was observed that only when the payment is made as per the provisions of Sub-Section (4) of Section 49, the government gets right over the money available in the electronic credit ledger. Since the ownership of such money is with the dealer till the time of actual payment, the government become entitled to interest as per the provisions of Section (1) of Section 50 upto the date of their entitlement to appropriate it.

PS: Arguments that GST council in its 31st meeting has given in principle approval for legislative amendment of GST Acts to ensure that interest is paid only on net tax liability was rejected since the said amendments are only proposed.

Extension of due date for filing of GSTR-3B return summary by Regular & Casual suppliers to 23.04.2019, for the month of March 2019. Source: GSTIN