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gst registration
GST: CBIC issues SOP for implementation of Provision of Suspension of Registrations under Rule 21A(2A) of CGST Rules, 2017

GST: CBIC issues SOP for implementation of Provision of Suspension of Registrations under Rule 21A(2A) of CGST Rules, 2017

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The Central Board of Indirect Taxes and Customs (CBIC) notified the Standard Operating Procedure (SOP) for implementation of the provision of suspension of registrations under sub-rule (2A) of rule 21A of CGST Rules, 2017.

Sub-rule (2A) of rule 21A provides for immediate suspension of registration of a person, as a measure to safeguard the interest of revenue, on the observance of such discrepancies /anomalies which indicate a violation of the provisions of Act and rules made thereunder; and that continuation of such registration poses an immediate threat to revenue.

Till the time an independent functionality for FORM REG-31 is developed on the portal, in order to ensure uniformity in the implementation of the provisions of the above rule across the field formations, the Board, in the exercise of its powers conferred by section 168 (1) of the CGST Act, provides the guidelines for implementation of the provision of suspension of registrations under the said rule.

The CBIC notified that the registration of specified taxpayers shall be suspended and system-generated intimation for suspension and notice for cancellation of registration in FORM GST REG-31, containing the reasons of suspension, shall be sent to such taxpayers at their registered e-mail address. Till the time functionality for FORM REG-31 is made available on the portal, such notice/intimation shall be made available to the taxpayer on their dashboard on the common portal in FORM GST REG-17. The taxpayers will be able to view the notice in the “View/Notice and Order” tab post login.

The taxpayers, whose registrations are suspended (hereinafter referred to as “the said person”) under the above provisions, would be required to furnish a reply to the jurisdictional tax officer within thirty days from the receipt of such notice/intimation, explaining the discrepancies/anomalies, if any, and shall furnish the details of compliances made or/and the reasons as to why their registration should not be canceled.

Firstly, the said person would be required to reply to the jurisdictional officer against the notice for cancellation of registration sent to them, in FORM GST REG-18 online through Common Portal within the time limit of thirty days from the receipt of notice/ intimation.

Secondly, in case the intimation for suspension and notice for cancellation of registration is issued on the ground of non -filing of returns, the said person may file all the due returns and submit the response. Similarly, in other scenarios as specified under FORM GST REG-31, they may meet the requirements and submit the reply.

After issuance of FORM GST REG-31 via email the list of such persons would be sent to the concerned Nodal officers of the CBIC/ States. Also, the system generated notice can be viewed by the jurisdictional proper officers on their Dashboard for suitable actions. Upon receipt of reply from the said person or on expiry of thirty days (reply period), a task would be created in the dashboard of the concerned proper officer under “Suo moto cancellation proceeding”.

Proper officer, post examination of the response received from the said person, may pass an order either for dropping the proceedings for suspension/ cancellation of registration in FORM GST REG-20 or for cancellation of registration in FORM GST REG-19. Based on the action taken by the proper officer, the GSTIN status would be changed to “Active” or “Cancelled Suo-moto” as the case may be.

Till the time-independent functionality for FORM GST REG-31 is fully ready, it is advised that if the proper officer considers it appropriate to drop a proceeding anytime after the issuance of FORM GST REG-31, he may advise the said person to furnish his reply on the common portal in FORM GST REG-18.

The CBIC advised that in case the proper officer is prima-facie satisfied with the reply of the said person, he may revoke the suspension by passing an order in FORM GST REG-20. Post such revocation, if need be, the proper officer can continue with the detailed verification of the documents and recovery of short payment of tax, if any.

Further, in such cases, after detailed verification or otherwise, if the proper officer finds that the registration of the said person is liable for cancellation, he can again initiate the proceeding of cancellation of registration by issuing notice in FORM GST REG-17.

Source: Taxscan.

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GST
CBIC reminds due dates for filing monthly GSTR-5 Return, GSTR-3B and GSTR-5A

CBIC reminds due dates for filing monthly GSTR-5 Return, GSTR-3B and GSTR-5A

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The Central Board of Indirect Taxes and Customs (CBIC) notified January 20, 2021, as a due date for filing monthly GSTR-5 Return, GSTR-3B, and GSTR-5A.

The Ministry of Finance announced for the non-resident GST payers that the due date for filing monthly GSTR-5 Return for the month of December 2020 is January 20, 2021, failing which will attract a late fee and interest.

The Government announced for OIDAR service suppliers that the due date for filing monthly GSTR-5A return for the month of December 2020 is January 20, 2021, failing which will attract a late fee and interest.

Taxpayers with an annual turnover of over Rs.5 Crores during Financial Year 2019-20 to file their monthly GSTR-3B for December 2020 on or before 20 January 2021 failing to attract a late fee and interest.

Source: TaxScan.

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gstr-9
CBIC extends deadline for filing GST Annual Returns

CBIC extends deadline for filing GST Annual Returns

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The Central Board of Indirect Taxes and Customs ( CBIC ) has extended the filing of GST Annual Returns ( GSTR-9 ) for the Financial Year 2019-2020 till February 28th, 2021.

Earlier, the due date was December 31. There have been demands to extend the date for two reasons: first, the pandemic, and second, the due date for annual returns for FY19-20 is December 31.

GSTR-9 is an annual return to be filed yearly by taxpayers registered under GST. It consists of details regarding the outward and inward supplies made/received during the relevant previous year under different tax heads i.e. CGST, SGST & IGST and HSN codes. Basically, it is a consolidation of all the monthly/quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) filed in that year. Though complex, this return helps in extensive reconciliation of data for 100% transparent disclosures. The late fees for not filing the GSTR 9 within the due date is Rs 100 per day, per act. That means late fees of Rs 100 under CGST & Rs 100 under SGST will be applicable in case of delay. Thus, the total liability is Rs 200 per day of default. This is subject to a maximum of 0.25% of the taxpayer’s turnover in the relevant state or union territory. However, there is no late fee on IGST yet.

Source: TaxScan.

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GST
New GST rule is not applicable for MSMEs

New GST rule is not applicable for MSMEs

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Micro, small and medium enterprises (MSMEs) do not require to pay minimum 1% Goods and Services Tax (GST) liabilities in cash as businesses with annual turnover of less than Rs 6 crore are exempted from the new rule, a finance ministry official said.

The Central Board of Indirect Taxes and Customs (CBIC) last week introduced a change in the GST rules that restricted the use of input tax credit (ITC) for discharging GST liability to 99%, the official said requesting anonymity. The move was aimed at curbing the misappropriation of ITC through fake invoicing, he said.

“In order to protect small businesses and genuine taxpayers there are some exemptions to this rule,” he said. The new rule is not applicable in such cases where registered entities have already deposited more than Rs 1 lakh as income-tax in last two years.

It is also not applicable to registered entities who have received a refund of more than Rs 1 lakh in the preceding financial year on account of export, he said adding that government departments and local authorities are also exempted from the rule.

“A legitimate business runs for profit and a minimum value addition is expected from them. It is only where a lot of fake credit is used that no tax payment in cash is made,” he said giving the reason behind implementing the new rule.

This rule will help to control fake invoices fraudsters who avail and pass on ITC by dummy, fake and dormant entities which show high turnovers, but have no financial credibility and flee after issuing fake invoices and misusing ITC, he added.

The new rule is the outcome of a through deliberation by the GST Law Committee to check the menace of fake invoices and misappropriation of ITC, he said. The government in November launched a nationwide drive to nab such fraudsters. “So far, 175 people have been arrested under the ongoing drive and more than 1,800 cases have been booked against over 8,000 fake entities,” he said.

Source: Hindustan-Times

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Simplified GST returns
Businesses with monthly turnover of over Rs 50 lakh to pay at least 1% GST liability in cash

Businesses with monthly turnover of over Rs 50 lakh to pay at least 1% GST liability in cash

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Businesses with monthly turnover of over Rs 50 lakh will have to mandatorily pay at least 1 per cent of their GST liability in cash, the Finance Ministry said as it moved to curb evasion by fake invoicing.

The Central Board of Indirect Taxes and Customs (CBIC) has introduced Rule 86B in Goods and Services Tax (GST) rules which restricts use of input tax credit (ITC) for discharging GST liability to 99 per cent.

“… The registered person shall not use the amount available in electronic credit ledger to discharge his liability towards output tax in excess of 99 per cent of tax liability, in cases where the value of taxable supply … in a month exceeds Rs 50 lakh,” the CBIC said.

While calculating the turnover threshold, sales from GST exempt goods and zero rates supply would not be included.

However, this restriction will not apply where the managing director or any partner have paid more than Rs 1 lakh as income tax or the registered person has received a refund amount of more than Rs 1 lakh in the preceding financial year on account of unutilised input tax credit.

Tax Partner Abhishek Jain said the government has put restrictions on seamless input credit utilisation with introduction of Rule 89B, which blocks utilisation of ITC beyond 99 per cent of the output liability, for businesses having taxable turnover of more than Rs 50 lakh per month.

“With the government providing reasonable exceptions to this rule, the idea remains to prevent misutilisation of credit by businesses taking fake credits,” Jain added.

Further, the CBIC has amended GST rules restricting filing of outward supply details in GSTR-1 for business that have not paid tax for the past periods by filing GSTR 3B.

So far, until now, non-filing of GSTR 3B resulted in blockage of e-way bill but will now result in GSTR 1 blockage as well.

Abhishek Jain, Tax Partner, said, “The government has now restricted filing of outward supply details in GSTR 1 return for businesses who have not paid tax for the past periods by filing GSTR 3B.

“The government’s idea here seems to be to curb input tax credit passing by businesses which have otherwise not paid their GST liability,” Jain added.
AMRG & Associates Senior Partner Rajat Mohan said, “These changes indicate that government is grappling with lower tax collections and high tax evasions, burden of which will again be on honest taxpayers”.

The CBIC has also notified authentication of Aadhaar number or physical verification of business premises for the purposes of obtaining GST registration.

“This amendment has likely been introduced to prevent fraudulent registrations,” Jain added.

Also, the validity of electronic way bill provisions has been amended by the CBIC according to which the e-way bill will be valid for 1 day for every 200 km of travel, as against 100 km earlier.

Source: Times-Of-India.

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National Anti Profiteering Authority (NAA)
Centre extends deadline for completing GST anti-profiteering probe

Centre extends deadline for completing GST anti-profiteering probe

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The government has extended the deadline till March 31, 2021 for completing GST anti-profiteering investigations, which were to be completed by November this year.

Through a notification, the Central Board of Indirect Taxes and Customs (CBIC) extended the deadline for completion of such investigations by authorities, like DGAP, under section 171 of GST Act, till March 31, 2021.

In September, CBIC had extended the deadline till November 30, 2020.

Section 171 of GST Act deals with anti-profiteering measures.

Under the GST law, a National Anti-Profiteering Authority (NAA) and a Standing Committee on anti-profiteering have been set up to examine complaints of not passing on tax rate cut benefits to consumers. GST was rolled out on July 1, 2017.

Directorate General of Anti Profiteering (DGAP) investigates profiteering complaints and submits report to NAA, which passes the final order.

DGAP is mandated to complete the investigation within a period of six months of the receipt of the reference from the Standing Committee, which can be further extended by three months.

The GST rules also specify that NAA shall, within a period of six months from the date of the receipt of the report from DGAP, determine whether a registered person has passed on the benefit of GST rate cut or the benefit of input tax credit to the recipient by way of commensurate reduction in prices.

Abhishek Jain said the government has further extended timeline for anti-profiteering authorities to complete their investigations, and as such any investigation required to be closed by DGAP by November 30, 2020 can now be completed up to March 31, 2021.

“This extension, much like the previous one, seems to be on account of the limitations posed (inability for businesses to provide requisite data) to the revenue authorities on account of the ongoing pandemic, as well as the quantum of pending cases,” he said.

Source: Times-of-India

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gstr-9
GST: CBIC enables GSTR-9 of FY 2019-20 on GST Portal

GST: CBIC enables GSTR-9 of FY 2019-20 on GST Portal

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The Central Board of Indirect Taxes ( CBIC ) has enabled the GST Annual Return ( GSTR-9 ) of Financial Year 2019-20 on the GST Portal.

A statement issued by CBIC said that, Facility to file an annual return in Form GSTR-9 for FY 2019-20 is now available. The Form is enabled for taxpayers whose table 8A computation has been completed. Computation of table 8A of the said return for auto-population from returns is in progress which is likely to be completed soon. Please ensure that all applicable returns of the said year have been filed before attempting to file the said return.

GSTR-9 is an annual return to be filed yearly by taxpayers registered under GST. It consists of details regarding the outward and inward supplies made/received during the relevant previous year under different tax heads i.e. CGST, SGST & IGST and HSN codes. Basically, it is a consolidation of all the monthly/quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) filed in that year. Though complex, this return helps in extensive reconciliation of data for 100% transparent disclosures.

The late fees for not filing the GSTR 9 within the due date is Rs 100 per day, per act. That means late fees of Rs 100 under CGST & Rs 100 under SGST will be applicable in case of delay. Thus, the total liability is Rs 200 per day of default. This is subject to a maximum of 0.25% of the taxpayer’s turnover in the relevant state or union territory. However, there is no late fee on IGST yet.

It may be noted that filing of Annual Return (FORM GSTR-9/ GSTR-9A) for 2018-19 is optional for taxpayers who had aggregate turnover below Rs. 2 Crore. The filing of reconciliation Statement in FORM 9C for 2018-19 is also optional for the taxpayers having aggregate turnover upto Rs. 5 Crore.

Source: TaxScan.

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GST: GSTR3B return
GST: CBIC notifies due date for filing GSTR-3B for the months of Oct. 2020 to March 2021

GST: CBIC notifies due date for filing GSTR-3B for the months of Oct. 2020 to March 2021

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The Central Board of Indirect Taxes and Customs (CBIC) notified the Central Goods and Services Tax (Thirteenth Amendment) Rules, 2020 which seeks to amend the Central Goods and Services Tax Rules, 2017.

The Board inserted Rule 61(6) to provide a due date for filing GSTR-3B for the months of October 2020 to March 2021 as 20th of next month if the turnover of the individual is more than 5 Crores.

The notification says that every registered person or an Input Service Distributor or a non-resident taxable person or a person paying tax under section 10 or section 51 or, as the case may be, under section 52 shall furnish a return in FORM GSTR-3B, electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner, on or before the 20th day of the month succeeding such tax period.

This provision is not applicable to the registered person referred to in section 14 of the Integrated Goods and Services Tax Act, 2017.

The amendment laid down the the condition for furnishing a return in FORM GSTR-3B that taxpayers must have aggregate turnover of up to Rs.5 crore in the previous financial year, whose principal place of business is 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, the return in FORM GSTR-3B of the said rules for the months of October, 2020 to March, 2021 shall be furnished electronically through the common portal, on or before the twenty-second day of the month succeeding such month.

“Provided further that for taxpayers having an aggregate turnover of up to five crore rupees in the previous financial year, whose principal place of business is in the States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh or Delhi, the return in FORM GSTR-3B of the said rules for the months of October, 2020 to March, 2021 shall be furnished electronically through the common portal, on or before the twenty-fourth day of the month succeeding such month,” the notification said.

Source: TaxScan.

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E-invoice
GST e-invoicing mandatory from January 1, 2021, if turnover exceeds Rs 100 cr

GST e-invoicing mandatory from January 1, 2021, if turnover exceeds Rs 100 cr

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The Central Board of Indirect Taxes and Customs (CBIC) on Tuesday notified that GST e-invoicing will be mandatory for any firm whose turnover exceeds Rs 100 crore from January 1, 2021. The limit set earlier was a turnover of Rs 500 crore.

“In exercise of the powers conferred by sub-rule (4) of rule 48 of the Central Goods and Services Tax Rules, 2017, the Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 13/2020 – Central Tax, dated the 21st March, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 196(E), dated 21st March, 2020, namely:-

In the said notification, in the first paragraph, with effect from the 1st day of January, 2021, for the words ‘five hundred crore rupees’, the words ‘one hundred crore rupees’ shall be substituted,” said the notification.

The changes will bring a large number of medium enterprises under the ambit of e-invoicing. It is expected that it will be made available to all taxpayers for B2B transactions from 1st April 2021.

“Inclusion of dealers with turnover between INR 100-500 Cr, within the E-invoicing gamut, is another step towards formalisation of the economy. There could be some initial hiccups in implementation, albeit, in the long run the same is likely to result in more transparency, better tax administration and automation of tax compliance and filings,” said Harpreet Singh, Partner, Indírect taxes, KPMG India.

The electronic invoicing system for business to business transactions was implemented on a mandatory basis for companies with turnover above Rs 500 crore from October 1.

Source: Economic-Times.

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GST: GSTR3B return
CBIC withdraws EVC facility extended to companies for filing GSTR-1 and GSTR-3B

CBIC withdraws EVC facility extended to companies for filing GSTR-1 and GSTR-3B

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The Central Board of Indirect Taxes and Customs ( CBIC ) has withdrawn the EVC facility extended to companies for filing GSTR1 and GSTR3B.

The facility to file GSTR 3B and GSTR-1 with the Electronic Verification Code in lieu of DSC extended to the registered person, who are also registered under the Companies Act, 2013, shall be withdrawn w.e.f. 1st Nov. 2020.

However, facility to file NIL returns through OTP verification shall be continued for all types of registered persons in view of notification 58/2020- dated 1st July 2020.

The CBIC had also introduced a new rule in Central GST rules stipulating furnishing of ‘Nil’ return by short messaging service (SMS) facility.

Source: TaxScan.

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