Key Updates in Goods & Services Tax – May 2019

Due date for filing GSTR 1 extended Central Government vide Notification No. 17 / 2019-Central Tax has Extended the due date for furnishing of FORM GSR-1 for the period March 2019 till April 13, 2019. Due date for filing GSTR 7 extended Central Government vide Notification No. 18  / 2019-Central Tax has Extended the due date for furnishing of FORM GSR-7 for the period March 2019 till April 12, 2019. Due date for filing GSTR 3B extended Central Government vide Notification No. 19 / 2019-Central Tax has extended the due date for furnishing of FORM GSR-3B for the period March 2019 till April 23, 2019. Amendment in GST rules Central Government vide Notification No. 20/2019-Central Tax dated 23.04.2019 has amended the rule 23 of CGST rules 2017 (Revocation of Cancellation) i.e. In case of revocation of cancellation of registration, all the returns relevant from the effective date of cancellation till the date of revocation should be filed within 30 days from the date of order of revocation. Rule 62 – Quarterly payment and Annual return for composition scheme FORM GST CMP-08 and FORM GSTR-4 has been notified for payment of self-assessment tax and filing of return respectively by a service provider who has opted for composition scheme as per Notification No. 2/ 2019-Central Tax (Rate) dated 7^th March 2019 and paying tax at the rate of 6% without ITC Availment. Returns Procedure & Due dates for Composition scheme Non-filing of GST returns may restrict e-way bill generation Central Government vide Notification No. 22/2019-Central Tax has inserted Rule 138E which will be effective from June 21, 2019, and clarified that persons who has not filed returns for 2 consecutive tax periods shall not be allowed to issue or to be mentioned as supplier/recipient of goods in the E-way bill. Procedure for Opting 6% Composition Scheme As per Circulars No. 97/16/2019-CT dated 05.04.2019, A person who wants to opt for payment of central tax @ 3% (composition scheme for services), should intimate the same to the department by filing FORM GST CMP-02 by April 30, 2019. Please note that Option exercised in a state, deemed to be the option exercised for the registrations of all other registration of that PAN and Composition rules shall be applicable to the persons opting for this 3% rate of tax. Clarification in respect of utilization of input tax credit under GST The newly inserted rule 88A in the CGST Rules allows utilization of input tax credit of integrated tax as under:

• Use IGST ITC to pay IGST first;
• Exhaust Balance IGST to pay CGST or SGST in any order & proportion before using CGST/SGST.

Circular No. 98/17/2019 has clarified that, presently, Portal is yet to be updated with this new mechanism, till that time, following the old mechanism of ITC utilization as per portal will not be considered as a non-compliance. Clarification regarding revocation registration Based on representations received from a large number of persons whose registration were canceled up to March 31, 2019 due to non-compliance and the same were not applied for revocation within 30 days from the date of service of the cancellation order, Central Government vide Circular No. 99 /17/2019 read with Removal of Difficulty Order (ROD) number 05/2019-(Central Tax) has given one time opportunity to apply for revocation of cancellation of such registration on or before July 22, 2019. However such persons are required to file all the returns for which the due date falls before the effective date of cancellation before application of revocation. GST exemption on specified upfront long term lease amount As per Circular No. 101/20/2019-CT dated 30.04.2019 it has been clarified that upfront amount paid by the entities to the govt. for long-term lease is exempted as per entry no. 41 of Notification no. 12/2017 dated June 26, 2017, irrespective of the fact that whether such upfront amount is payable or paid in one or more installments, provided the amount is determined upfront. Note: Upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable in respect of service by way of granting of long term lease of thirty years, or more) of industrial plots or plots for development of infrastructure for financial business, provided by the State Government Industrial Development Corporations or Undertakings or by any other entity having 50 per cent or more ownership of Central Government, State Government, Union territory to the industrial units or the developers in any  industrial or financial business area. Last Updated: 9^th May 2019 This article is contributed by:  Vaibhav Matta Assistant Director, Taxation

Tag: GST, GST in India, GST News, GST Updates