Key Updates in Goods & Services Tax – January 2020
Rules notified for issuance of e-invoice
Central Government vide Notification No. 68/ 2019-Central Tax has notified rules for issuance of e-invoicing by inserting new sub-rule 4,5 & 6 in existing rule 48 of CGST Rules, 2017. It states that notified class of registered persons shall be required to prepare e-Invoice containing particulars as mentioned in FORM GST INV-01. Invoices prepared otherwise by the prescribed manner shall not be treated as invoice under GST Rules.
List of websites / common portal notified for issuing e-invoice
Central Government vide Notification No. 69/ 2019-Central Tax has notified following common portal for the purpose of e-invoicing:
(1)einvoice1.gst.gov.in
(2) www.einvoice2.gst.gov.in
(3) www.einvoice3.gst.gov.in
(4) www.einvoice4.gst.gov.in
(5) www.einvoice5.gst.gov.in
(6) www.einvoice6.gst.gov.in
(7) www.einvoice7.gst.gov.in
(8) www.einvoice8.gst.gov.in
(9) www.einvoice9.gst.gov.in
(10) www.einvoice10.gst.gov.in
Class of registered person required to issue e-invoice
Central Government vide Notification No. 70/ 2019-Central Tax has notified for mandatory e-invoicing for registered person, whose aggregate turnover in a financial year exceeds one hundred crore rupees (>100 crores) w.e.f 01.04.2020.
Class of registered person required to issue invoice having QR Code
QR Code on B2C Invoice are mandatory for registered person, whose aggregate turnover in a financial year exceeds five hundred crore rupees (>500 crores) w.e.f 01.04.2020 [Notification No. 72/ 2019 (CT)].
Late fee waiver in case of GSTR-1
Waiver of late fees for late filing of GSTR-1 for the period July 2017 to November 2019 if filed during 19.12.2019 to 10.01.2020. [Notification No. 74/2019–Central Tax dated 26.12.2019]
Extension of last date for furnishing of annual return
Extension of last date for furnishing of annual return/reconciliation statement in FORM GSTR-9/FORM GSTR-9C for FY 2017-18 till 31.01.2020 (earlier it was 31.12.2019) vide Order No.10/2019 – Central Tax dated 26.12.2019
Restriction on availment of 10% of eligible ITC
With effect from 01.01.2020, Input Tax Credit (ITC) to be availed by a registered person in respect of invoices or debit notes which are not reflecting in GSTR 2A shall not exceed 10 per cent of the eligible ITC. Earlier this limit was 20% of the eligible credit. [Notification No. 75/2019–Central Tax dated 26.12.2019]
Insertion of Rule 86A
Where the proper officer has reason to believe that ITC available in E-Credit Ledger has been fraudulently availed or is ineligible may disallow utilization of such ITC or refund of unutilized amount to the extent of the following after recording the reasons in writing [Notification No. 75/2019–Central Tax dated 26.12.2019]:
- ITC availed against invoices issued by the supplier, who has been found non-existent or not conducting any business from any place for which registration has been obtained;
- ITC availed without the receipt of goods or services or both;
- ITC availed against the supply for which GST has not been paid to Govt.
- Recipient has been found non-existent or not conducting any business from any place for which registration has been obtained;
- Tax invoice is not in the possession against which ITC has been availed by registered person.
- Section 46 of CGST Act, 2017 read with rule 68 requires issuance of notice in FORM GSTR-3A to registered person who fails to furnish return under section 39 or section 44 or section 45 (hereinafter referred to as the “defaulter”), requiring him to furnish such return within fifteen days;
- If such person has not file the return even after issuance of above notice, then the tax liability of such registered person may be determined by the officer on the Best of his judgment u/s 62 of CGST Act, 2017 in FORM ASMT-13. It is important to highlight that no further communication will be issued with respect to tax liability determined u/s 62 of CGST Act, 2017;
- However if such registered person has file the return before issuance of Assessment order, than such notice in FORM GSTR-3A shall be deemed to have been withdrawn.
- A System generated message would be sent to all the registered person 3 days before due date of filing of return as a reminder. Example: Suppose if due date is 20-01-2020 then message will be sent on or before the 17-01-2020;
- Once the due date for furnishing the return under section 39 (regular return) is over, (after 20-01-2019 in our example) a system generated mail / message would be sent to the authorized signatory of defaulter’s entity;
- Five days after the due date of furnishing the return, (from 26-01-2020 onwards in our example) a notice in FORM GSTR-3A shall be issued electronically to such registered person who fails to furnish required return to furnish such return within 15days;
- In case the said return is not filed by the filed by the defaulter within 15 days of the said notice (i.e. FORM GSTR-3A) the proper officer may proceed to assess the tax liability of the said person under Section 62 (i.e. Best Judgment Assessment) and pass necessary order in FORM ASMT-13;
- In case the defaulter has furnished the valid return within the period of 30 days of the service of order in FORM GST ASMT-13, the said Assessment order shall be deemed to have been withdrawn.
- However, if said return remain unfurnished after 30 days of service of notice then Proper officer may initiate recovery proceedings under CGST Act;
- Proper officer can also initiate the action under Section 29(2) of CGST Act for cancelation of registration in cases where return has not been furnished for specified consecutive tax periods.
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