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Key Updates in Goods and Services Tax – January 2019

January 15, 2019 | Goods & Services Tax in India, GST

Notifications issued to implement the recommendations made in 31st GST council meeting

  1. CGST Rules – recent amendments vide Notification no. 74/2018
    • Electronic tax invoice & supply bill related changes – Taxpayer can issue tax invoice/supply bill complying Information and Technology Act, 2000 without affixing signature or digital signature of the supplier or his authorized representative(refer Rule 46 & 49)
    • Refund application-related changes – Departure manifest filed along with shipping bill will also be considered sufficient compliance for the purpose of application for refund. (refer rule 96)
    • Restriction on generation of e-waybill- 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 who:
      • being a person paying tax under section 10, has not furnished the returns for two consecutive tax periods; or
      • being a person other than a person specified in clause (a), has not furnished the returns for a consecutive period of two months
    • Substitution & Insertion of Forms in CGST Rules
      • Changes in GSTR-9 (Annual Return)
      • Now, additional liability not declared in FORM GSTR-1 and FORM GSTR-3Bfor FY 2017-18 may be declared in GSTR-9. However, taxpayers cannot claim input tax credit unclaimed during FY 2017-18 through this return.
      • Taxpayers shall be given an option to pay any additional liability declared in this form, through FORM-DRC-03. Taxpayers shall select Annual Return in the drop down provided in FORM DRC-03. Such liability can be paid through electronic cash ledger only.
      • HSN code required to be declared only for those inward supplies whose value independently accounts for 10% or more of the total value of inward supplies. Value of “non-GST supply” shall also include the value of “no supply” and may be reported in Table 5D, 5E and 5F of FORM GSTR-9. Verification by taxpayer who is uploading reconciliation statement would be included in GSTR-9C.
      • Amendment of headings in the forms to specify that the return in FORM GSTR-9 & FORM GSTR-9A would be in respect of supplies etc. ‘made during the year’ and not ‘as declared in returns filed during the year
      • Changes in GSTR-9C (Reconciliation & Certificate)
      • It is clarified through instructions that it is mandatory to file FORM GSTR -9 for the FY 2017-18 before filing GSTR-9C. Verification of registered person introduced in GSTR-9C in addition to verification by auditor. *(Please click here to read the notification no.74 / 2018)
  1. Waiver of late fee for delay filing in GSTR-1/ GSTR3B / GSTR-4 – Notification No. 75, 76& 77/2018– C.T- Amount of late fees leviable on account of delayed furnishing of GSTR-1 Return for the months/quarters from July, 2017 to September, 2018 has been waived. However, late fees is waived only in cases where the taxpayer files GSTR-1/ GSTR3B / GSTR-4 between the period from 22.12.2018 to 31.03.2019
 

Notifications effecting Changes in rates of Tax in respect of certain Goods & Services

  1. On the recommendations of GST Council, CBIC issued certain notifications relating to changes in GST rates. Indicative list of goods where Central Government has notified changes in GST rates are given in the full report.
  2. GST Council changes GST rates on services are given in the full report.
 

Clarifications made by Central Government on Exports under GST

  • Clarification on refund related issues – CBIC has issued Notification No. 79/2018-GST dated 31st December 2018 to clarify certain issues relating to refund.
Physical submission of refund claims: All documents/undertaking/statements to be submitted along with the claim for refund in Form GST RFD-01A shall be uploaded on the common portal. Neither the application nor any of the supporting documents, shall be required to be submitted physically. However, the taxpayer will have the option to physically submit the refund application along with supporting documents, if he so chooses. Calculation of refund of accumulated ITC on account of inverted duty structure: In case of multiple inputs attracting different rates of tax, the term “Net ITC” [in the formula provided in Rule 89(5) of the CGST Rules] covers ITC availed on all inputs in the relevant period, irrespective of their rate of tax. Misinterpretation of the meaning of the term “inputs”: GST paid on inward supplies of stores and spares, packing materials etc. shall be available as ITC as long as these inputs are used for the purpose of the business and/or for effecting taxable supplies, including zero-rated supplies, and the ITC for such inputs is not restricted. Stores and spares, the expenditure on which has been charged as a revenue expense in the books of account, cannot be held to be capital goods Refund of accumulated ITC on input services and capital goods arising on account of inverted duty structure – Refund of tax paid on input services and capital goods as part of refund of input tax credit accumulated on account of inverted duty structure is not allowed. Please click here to read the Notification No. 78/2018-GST Please click here to read the Notification No. 79/2018-GST  

Other Clarifications made by Central Government

  1. Notification No. 76 clarifying various issues– CBIC has issued notification No. 76/2018- GST dated 31.12.2018 to provide clarification in respect of following miscellaneous issues:
  • GSTR-3B Return filed after due date – Penalty – Penalty as per Section 73(11) of CGST Act shall not be imposed in cases where GSTR-3B Return has been filed after the due date as there is no default of payment of taxes. However, in such cases, penalty under Section 125 may be imposed.
  • Tax rate for debit /credit notes issued under Section 142(2) – In cases where debit/credit note is to be issued under Section 142(2) of CGST Act, pertaining to a supply made in pre GST regime, the GST rate as per the GST Acts would be applicable.
  • Taxable value under GST to include TCS under Income Tax Act – Taxable value for GST shall include the TCS amount collected under the provisions of Income Tax Act since the value to be paid to the supplier by the buyer is inclusive of the said TCS.
Owner of Goods” for the purposes of Section 129(1) on detention / seizure of goods in transit – If the invoice or any other specified document is accompanying the consignment of goods, then either the consignor or the consignee should be deemed to be the owner. If the invoice or any other specified document is not accompanying the consignment of goods, then the proper officer should determine who should be declared as the owner of the goods.  (Please click here to read the notification no. 76 /2018).  

Circulars & Orders issued for extension of time limit for availing ITC & filing Annual Return for FY 2017-2018

  1. A proviso is inserted in Section 16(4) of the CGST Act to allow availment of ITC after the due date of furnishing of the return under Section 39 for the month of September, 2018 till the due date of furnishing of the return for the month of March, 2019. (Order no. 2 dated 31st December 2018)
  1. Extension of time limit by 30th June 2019 for furnishing Annual Return in Form GSTR-9 / GSTR-9A and reconciliation statement for the Financial Year 2017-18. (Order no. 3 dated 31st December 2018)
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