Standard

Summary of all notifications issued under GST on 31st March 2023 midnight

No. 02/2023 – Central Tax

GSTR 4 if not filed within due date, Late fee restricted to Rs. 500/- if filed between 01-04-2023 to 30-06-2023 for the quarters from July, 2017 to March 2019 or FY 2019-20 to FY 2021-22.

No. 03/2023 – Central Tax

Special procedure for revocation of cancellation of registration. canceled on or before the 31-12-2022 – To be applied within 30-06-2023 – Revocation to be filed only after filing all returns along with payment of tax, upto the effective date of cancellation of registration – No further extension of time period for filing application

No. 04/2023 – Central Tax

CGST (Amendment) Rules, 2023 – Effective from 26-12-2022 [Rules prescribed under No. 26/2022 -Central Tax gets amended] Sub-rule (4A) – Explains Authentication of Aadhaar during registration, whereas Biometric-based Aadhaar authentication and taking photograph of the applicant amended as a proviso to the said rule. Earlier was not inserted as proviso to the rule.

No. 05/2023 – Central Tax

Sub-rule (4B) amended giving effect to Sub-rule (4A) Proviso ‘for and words, —provisions of the words —proviso to, shall be substituted” Thereby making the Proviso to Sub-rule (4A) applicable only to Gujarat (As explained in No. 27/2022-Central Tax)

Combined reading of No. 04/2023 – Central Tax and No. 05/2023- Central Tax concludes Biometric-based Aadhaar authentication and taking photograph of the applicant along with the verification of the original copy of the documents to be uploaded with the application in FORM GST REG-01 through one of the notified Facilitation Centres is applicable only to the state of Gujarat.

No. 06/2023 – Central Tax

Special procedure for Assessment of Non Filers of returns Assessment shall be withdrawn if – Returns furnished on or before 30-06-2023 – Along with payment of Interest u/s 50 and Late Fees u/s 47

No. 07/2023 – Central Tax

GSTR 9 if not filed within due date, Late fees restricted to Rs. 20,000/- if GSTR-9 is filed between 01-04-2023 to 30-06-2023 for the FY 2017-18, 2018-19, 2019-20, 2020-21 or 2021-22. Late Fees Revision from FY 22-23 onwards

Aggregate Annual T/O	Late fees
Upto Rs. 5Cr	Rs. 50 per day Subject to maximum of 0.04% of T/O
Above Rs. 5Cr and upto Rs.20Cr	Rs. 100 per day Subject to maximum of 0.04% of T/O
Above Rs. 20Cr	Rs. 200 per day Subject to maximum of 0.50% of T/O

No. 08/2023 – Central Tax

GSTR 10 if not filed within due date, Late fees restricted to Rs. 1,000/- if GSTR-10 is filed between 0 I -04- 2023 to 30-06-2023

No. 09/2023 – Central Tax

Extension of Time Limit for issuance of Order u/s 73(9)

FY 17-18 – Upto 31-12-2023

FY 18-19 – Upto 31-03-2024

FY 19-20 – Upto 30-06-2024

Subscribe to WhatsApp Updates

April, 1
0
Circular and Notifications, GST, GST Circular Notification
More

Standard

Payment of GST by real estate developer supplying construction of residential apartment

Payment of GST by real estate promoter/developer supplying construction of residential apartment etc, on the shortfall value of inward supplies from registered supplier at the end of the financial year

1. A revised GST rate has been prescribed, w.e.f. the 1st April, 2019 on the supply of service by way of construction of residential apartment. Under this, construction of affordable residential apartments attract GST at the rate of 1% [without ITC] and other residential apartments attract GST at the rate of 5% [without ITC]. (These rates have been prescribed vide Notification no. 11/2017- Central Tax (Rate) dated 28.06.2017 as amended by Notification no. 3/2019- Central Tax (Rate) dated 29.03.2019).

2. One of the condition prescribed vide said notification is that at least eighty per cent. of value of input and input services, [other than services by way of grant of development rights, long term lease of land or FSI, electricity, high speed diesel, motor spirit, natural gas], used in supplying the construction service, shall be received by the promoter/developer from registered supplier only. In case of shortfall from the said threshold of 80 per cent., the promoter/developer shall pay the tax on the value of input and input services comprising such shortfall in the manner as has been prescribed vide said notification. This tax shall be paid through a prescribed form electronically on the common portal by end of the quarter following the financial year. Accordingly for FY 2019-20, tax on such shortfall is to be paid by the 30th June, 2020.

3. In the above context, requests have been received seeking details of prescribed form on which the said tax amount has to be reported.

4. The issue referred by the trade has been examined. It has been decided that FORM GST DRC-03, as already prescribed, shall be used for making the payment of such tax by promoter/developer. Accordingly, person required to pay tax in accordance with the said notification on the shortfall from threshold requirement of procuring input and input services (below 80%) from registered person shall use the form DRC-03 to pay the tax electronically on the common portal within the prescribed period.

5. It is requested that suitable instructions may be issued by the States/ field formations of CBIC to advise the trade accordingly.

Subscribe to Whats App Updates

June, 25
0
Compliance Law, GST, GST Circular Notification
More

Standard

When Registration in GST is Compulsory? Who are Exempt? from April 2020

Registration under GST:

Registration in GST is PAN based and state specific. Under GST one registration per state or Union territory is required. Thus, there are no centralized registration under GST, person having multiple place of business in a state or union territory may be granted a separate registration for each such place of business subject to such conditions as may be prescribed. GST identification number called “GSTIN” a 15-digit number and a certificate of registration incorporating therein this GSTIN is made available to the applicant on the GSTN common portal. GST registration is not tax specific i.e. registration is for all the taxes.

What are the advantages of getting registered under the GST?

Registration under GST will confer the following benefits:

You will get legally recognized as a supplier of goods or service
Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods or services or both by the business
Legally authorized to collect tax from his purchasers and pass on the credit of the taxes paid on the goods or services to purchasers or recipients

Who is liable for registration under GST from April 2020 onwards?

As per section 22, a person is liable for registration under if the aggregate turnover for the previous year exceeds Rs. 20 lakhs where the person is engaged in supply of goods or service or both, in case the person supplies only goods then the turnover limit will be Rs. 40 lakhs for the previous year. If the person is having place of business and making taxable supplies from special category states like Manipur, Mizoram, Nagaland and Tripura then the threshold limit for GST registration will be reduced to Rs. 10 lakhs.

Summary of above provision of Registration:

Person	Turnover limit for the previous year
Person engaged exclusively in supply of goods	Rs. 40 lakhs
Person engaged in supply of goods or service or both	Rs. 20 Lakhs
Person engaged in supply of goods or service or both in states of Manipur, Mizoram, Nagaland and Tripura	Rs. 10 Lakhs

Subscribe to Whats App Updates

Meaning of turnover under GST:

As per section 2 of the CGST act 2017, Turnover for the purpose of GST registration includes and excludes the following:

Inclusion in Turnover:

Taxable supplies
Exempt supplies
Export supplies
Interstate supplies

The turnover to be calculated on all India basis of persons having the same PAN.

Exclusion in turnover:

GST on supplies i.e. CGST, SGST, IGST, UTGST and cess
Inward supplies on which tax has been paid on reverse charge basis.

Who is the person not liable for registration under GST?

Section 23 of the CGST act 2017 provides the detailed list of persons not liable for GST registration. As per the said section the following are the persons not liable for registration under GST:

Person engaged exclusively in supplying goods or services or both not liable to tax.
Person engaged exclusively in supplying goods or services or both exempt from tax.
Agriculturist engaged in supply of produce cultivated out of land.
Any other person as may be notified by the government.

Till date the government has notified the following persons who are not liable for registration under GST:

Person making interstate supply of service and having an aggregate turnover not exceeding Rs. 20 Lakhs on all India basis (Rs. 10 lakhs in case of Mizoram, Nagaland, Manipur and Tripura).
Persons who are engaged in making supplies of taxable goods or services or both, the total tax on which is liable to be paid on reverse charge basis by the recipient of such goods or services or both as per section 9(3) of the CGST act, 2017.
Persons making interstate supply of notified handicraft goods and having turnover not exceeding Rs. 20 Lakhs on all India basis (Rs. 10 lakhs in case of Mizoram, Nagaland, Manipur and Tripura).
Casual taxable person making interstate taxable supply of handicraft goods and other notified handicraft goods not exceeding Rs. 20 Lakhs on all India basis (Rs. 10 lakhs in case of Mizoram, Nagaland, Manipur and Tripura).
Job workers engaged in interstate supply of services to a registered person except person who is liable to get register as per section 22 of the CGST act, 2017 i.e. he is liable for registration after the threshold limit is crossed.
Person supplying goods through e commerce operator and whose aggregate turnover does not exceed Rs. 20 lakhs (Rs. 10 lakhs in case of special category states of Mizoram, Tripura, Manipur and Nagaland.
Person engaged in exclusive supply of goods and whose aggregate turnover in the previous financial year exceed Rs. 40 Lakhs except:
- Person who are requires to get compulsory register under law as per section 24 (discussed further below)
- Person engaged exclusively in supply of goods being:
  1. Ice cream and other edible ice, whether or not containing cocoa
  2. Pan masala
  3. Tobacco and manufactured tobacco substitutes
- Persons engaged in making intra state supply in the state of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand
- Person registered under the previous laws i.e. Service tax act or VAT or CST etc.

Which person are compulsorily required to register under the GST Act?

As per section 24, the following category of person are compulsorily required to get registered under the GST act irrespective whether the turnover has crossed the threshold limit or not:

Person making interstate taxable supply except person who is engaged exclusively in interstate supply of service having aggregate turnover up to RS. 20 lakhs and Rs. 10 lakhs in case of special category states
Casual taxable person who does not have a fixed place of business in the state or union territory from where he wants to make supply. However, threshold limit of Rs, 20 lakh/ Rs. 10 lakhs in case of special category states of Mizoram, Tripura, Manipur and Nagaland is available in case of person who is engaged in exclusive supply of notified handicraft goods.
Persons who are required to pay tax under reverse charge mechanism
E commerce operator who are required to pay tax on specified services
Persons who are required to deduct TDS under section 51
Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;
Non resident taxable person making taxable supply
Input service distributor whether or not separately registered under the act
Person who is supplying goods or service through e commerce operator and whose aggregate turnover exceed Rs. 20 lakhs (10 Lakhs in case of special category states of Mizoram, Tripura, Manipur and Nagaland.
Every e commerce operator who is required to collect tax at source as per section 52
Every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person and
Any other person as may be notified by the government on the recommendation of the GST council

Subscribe to Whats App Update

Standard

Input Tax Credit Utilization Order& set off from February to September 2020 and General rules

ITC rule 36(4)- Provisional ITC rule for the period up to January 2020

As per rule 36(4) a registered person can avail Input tax credit (ITC) of a maximum of

110% of the total ITC in GSTR2A
Actual ITC available based on invoice

Whichever is lower

For example:

Mr. X has made total purchase of Rs. 1,00,000 for the month of January 2020 on which Rs. 18,000 GST has been paid. At the time of filing return, it has been observed that GSTR2A is showing total ITC of Rs. 10,000.

Now, we have to calculate Mr. X can avail maximum ITC of:

Computation of Maximum ITC Mr. X Can avail for the Month of January 2020:

Particulars	Amount
Actual ITC as per Invoices available (A)	18,000
Total ITC as per GSTR2A (B)	10,000
Total provisional ITC as per rule 36(4) (110% of B) (C)	11,000
Maximum ITC that can be availed by Mr. X (Lower of A or C) (D)	11,000
Total ITC not allowed in GSTR3B of January 2020 (A – B) (E)	7,000

Now the above rule has changed from February 2020

Changes in ITC rule 36(4)- Provisional ITC rule for the period February to September 2020

As per Notification No. 30/2020- Central Tax In the said rules, in sub-rule (4) of rule 36, the following proviso shall be inserted, namely:- “Provided that the said condition shall apply cumulatively for the period February, March, April, May, June, July and August, 2020 and the return in FORM GSTR-3B for the tax period September, 2020 shall be furnished with the cumulative adjustment of input tax credit for the said months in accordance with the condition above.”.

As per above notification the earlier condition of restriction on availing ITC of upto 110% of the ITC available in GSTR2A or the actual ITC, lower one from any of the both has been relaxed for the period of February, March, April, May, June, July and August, 2020 and such adjustment shall be made in the return of September 2020.

That means supplier can avail full ITC for the month of February, March, April, May, June, July and August, 2020 and the adjustment arising out of rule 36(4) for the above period shall be made in the return of September 2020.

For Instance, Mr. X has following ITC available as per the invoices and GSTR2A for February to September 2020:

Month	Actual ITC as per Invoice	ITC as per GSTR2A	Maximum ITC that can be availed
February	100	60	100
March	100	60	100
April	100	60	100
May	100	60	100
June	100	60	100
July	100	60	100
August	100	60	100
September*	100	60	60 [To be compared with actual ITC as per invoice and 100% of ITC in GSTR2A i.e. 100 or 60 (100% of 60) whichever is lowest]

*The example has taken ITC & GSTR2A for September month only, however in actual ITC & GSTR2A of February, March, April, May, June, July and August, needs to be added and difference if any needs to be paid

Subscribe to Whats App Update

Utilization of Input tax credit general rule:

Every registered person shall, subject to such conditions and restrictions as may be prescribed, be entitled to take the credit of eligible input tax, as self-assessed, in his return and such amount shall be credited on a provisional basis to his electronic credit ledger.

Manner of utilization of ITC:

The ITC available in the electronic credit ledger shall be utilized as per section 49(5) of the CGST act 2017. The amount of input tax credit available in the electronic credit ledger of the registered person on account of:

Credit of IGST to be utilized for payment of IGST, CGST and SGST sequentially: The IGST credit available in the electronic credit ledger shall be first utilized towards the payment of IGST liability and the amount remaining if any may be utilized towards the payment of CGST and SGST or UTGST liability as the case may be in that order.

Credit of CGST to be utilized for payment of CGST and IGST sequentially: The CGST credit available in electronic credit ledger shall be first utilized towards the payment of CGST liability and the amount remaining if any may be utilized towards the payment of IGST tax liability.

Credit of SGST to be utilized for payment of SGST and IGST sequentially: The SGST credit available in electronic credit ledger shall be first utilized towards the payment of SGST liability and the amount remaining if any may be utilized towards the payment of IGST tax liability. However, the ITC on account of state shall be utilized towards payment if IGST liability only when there is no credit available of CGST towards payment of IGST.

Credit of UTGST to be utilized for payment of UTGST and IGST sequentially: The UTGST credit available in electronic credit ledger shall be first utilized towards the payment of UTGST liability and the amount remaining if any may be utilized towards the payment of IGST tax liability. However, the ITC on account of Union territory shall be utilized towards payment if IGST liability only when there is no credit available of CGST towards payment of IGST.

Note:

The CGST credit shall not be utilized towards payment of UTGST of SGST tax liability, and
The SGST or UTGST credit shall not be utilized towards payment of CGST tax liability.
As per section 49A of the CGST act, the input tax credit on account of CGST, SGST or UTGST shall be utilized towards the payment of IGST, CGST, SGST or UTGST as the case may only after the ITC available on account of IGST has been utilized fully towards such payment.

Sequence of Utilization of ITC at a glance:

The sequence of utilization of ITC has been summarized below:

Input tax credit	First to be utilized for payment of	If balance, can be utilized for	Remarks
IGST	IGST	CGST or SGST/ UTGST at option of taxable person	CGST or SGST/ UTGST credit can be utilized only after credit of IGST is fully utilized
CGST	CGST	IGST	CGST credit can be utilized only after all credit of IGST is utilized
SGST/ UTGST	SGST/ UTGST	IGST	SGST/ UTGST credit can be utilized only after all credit of IGST is utilized. Besides this SGST/ UTGST credit can be utilized for payment of IGST only after the ITC of CGST has been utilized fully.

Examples to explain Utilization of ITC

Example 1:

Mr. X, a registered supplier is engaged in supplying goods in the neighboring states from his registered office located in Mumbai. He hade made the following transaction in the month of March 2020:

Interstate Supply of goods of Rs. 18,00,000
Purchase of goods locally from registered person of Rs. 10,00,000

The above transactions are exclusive of taxes. The rate of tax is CGST 9%, SGST 9% and IGST 18%.

Let us compute the net GST to be payable by Mr. X

Computation of GST payable by Mr. X

Particulars	Amount
IGST payable on Sale of goods outside Maharashtra (18,00,000 X 18%)	3,24,000
Less:
Input tax credit CGST on purchase of goods locally [CGST can be cross utilized payment of IGST as per section 49(5)]	90,000
Input tax credit SGST on purchase of goods locally [SGST can be cross utilized payment of IGST as per section 49(5)]	90,000
Net GST payable in cash for the month of March 2020	1,44,000

Note:

CGST shall be first utilized towards payment of CGST and the amount remaining, if any, be utilized towards the payment of IGST as per section 49(5).
SGST shall be first utilized towards payment of SGST and the amount remaining, if any, be utilized towards the payment of IGST as per section 49(5).

Example 2:

Mr. X a supplier of goods, pays GST under regular scheme. He has made the following transaction in the month of March 2020.

Sales:

Interstate supply of goods of Rs. 18,00,000
Intrastate supply of goods of Rs. 10,00,000

Purchase:

Intrastate supply of goods of Rs. 11,00,000
Interstate supply of goods of Rs. 8,00,000

The above transactions are exclusive of taxes. The rate of tax is CGST 9%, SGST 9% and IGST 18%.

Opening balance of Input tax credit:

CGST: 40,500

SGST: 40,500

IGST: 90,000

Let us compute the net GST to be payable by Mr. X

Computation of GST payable by Mr. X

Particulars	CGST	SGST	IGST
GST payable on Sale of goods
GST on Interstate sale (18,00,000 X 18%)			3,24,000
GST on Intrastate sale (10,00,000 X 18%)(9% CGST & 9% SGST)	90,000	90,000
Total GST liability on Sales (A)	90,000	90,000	3,24,000
Less: Input Tax Credit
Opening Balance	40,500	40,500	90,000
GST on Interstate purchase (11,00,000 X 18%)			1,98,000
GST on Intrastate purchase (8,00,000 X 18%)(9% CGST & 9% SGST)	72,000	72,000
Total GST Credit on purchase (B)	1,12,500	1,12,500	2,88,000
Net GST payable in cash for the month of March 2020 (A – B)	(22,500)	(22,500)	36,000
Less: Balance of CGST to be utilized towards payment of IGST (1^st)	22,500		(22,500)
Less: Balance of SGST to be utilized towards payment of IGST (1^st)		13,500	(13,500)
Net GST payable in cash for the month of March 2020	–	9,000	–

Note:

CGST shall be first utilized towards payment of CGST and the amount remaining, if any, be utilized towards the payment of IGST as per section 49(5).
SGST shall be first utilized towards payment of SGST and the amount remaining, if any, be utilized towards the payment of IGST as per section 49(5).

Subscribe to Whats App Update

Standard

Are all Directors of Company Liable to Pay GST?

The Rajasthan Authority for Advanced Ruling recently held that consideration paid to directors by a company will attract the goods and services tax. Companies will be taxed under the reverse-charge mechanism where a recipient of goods or services pays the tax instead of the supplier.

Director Remuneration liable to GST under Reverse Charge Mechanism:

Reverse charge is a mechanism under which the recipient of the goods or services is liable to pay the tax instead of the provider of the goods and services. Under the normal tax regime, the supplier collects the tax from the buyer and deposit the same to the government. But under reverse charge mechanism (RCM), liability to pay tax moves from supplier to recipient.

As per entry 6 of notification No. 13/2017 Central Tax(rate) dated 28.06.2017 issued under section 9(3) of the CGST act 2017, the remuneration paid to the directors by the company will attract GST under the reverse charge mechanism.

Subscribe to Whats App Updates

Analysis of the advance ruling sought by Clays Crafts India Pvt Ltd

Facts of the case:

The applicant Clays Crafts India Pvt Ltd is a registered company engaged in the manufacture of bone China Crockery, Transfer Sheet Decalcomania, other Utensils Item and Moulds & Die falling under chapter heading No. 69111011, 49081000, 84801000 & 84801000 of the Tariff.
The company is registered under GST having GSTIN 08AAACC6866D1ZO and also availing ITC on inputs as well as services in relation to manufacture of final product as per the provisions of GST Act, 2017.
All the directors of the companies are performing all the duties and responsibilities and duties as required under the laws also all directors are also working in the company at different management level of the company and each one of them is holding charge of procurement of raw material, production, quality checks, dispatch, accounting etc. In other words, they are also working as an employee of the company for which they are being compensated by the company by way of regular salary and other allowances as per the company policy and as per their employment, contract. In fact these Directors are treated at par with any other employee of the company as far as their employment is concerned. The company is deducting TDS on their salary and PF laws are also applicable to their service. Therefore, in all practical purposes these directors are the employees of the company and are working as such besides being Director of the company;

Questions on which the Advance ruling is pursued:

M/s Clay crafts India Pvt Ltd has sought advance ruling for the following questions:

Whether GST is payable under reverse charge mechanism the salary paid to Director of the company who is paid salary as per contract.
Whether the situation would change from (a) if the director also is a part time director in the company also.

Observation of the AAR bench:

The Rajasthan bench of Authority for Advance ruling has laid down their findings and analysis of the above questions:

While going through the detailed submission by the applicant the bench observed that presently there are six Directors in the Company and all of them working at different level of management and each one of them is holding charge of procurement of raw material, production, quality checks, dispatch, accounting etc.
Further they observed that Consideration in form of salary and commission paid to the Directors by the company is against the services provided by them to the company and the company is recipient of such service and Directors are the supplier.
The applicant is already paying GST by way of reverse charge mechanism on the commission paid to the Directors treating as such amount pertain to the service provided by them in the capacity of a Director.
In the instant case question before the bench is whether the consideration paid to the Directors for providing services to the company is liable for GST under reverse charge mechanism vide Notification No. 13/2017- Central Tax (Rate) dated 28.06.2017.
The term “consideration” in relation to the supply of goods or services or both is defined in clause (31) of Section 2 of CGST Act, 2017 as under-:

(31) “consideration” in relation to the supply of goods or services or both includes-

any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government;
- the monetary value of any act or forbearance, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government:

Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply;”

The bench observed that the consideration paid to the Director for the supply of services to the Company is specifically covered under Notification No. 13 /2017- Central Tax (Rate) dated 28.06.2017 which states that “on categories of supply of services mentioned in column (2) of the Table below, supplied by a person as specified in column (3) of the said Table, the whole of central tax leviable under section 9 of the said Central Goods and Services Tax Act, shall be paid on reverse charge basis by the recipient of the such services as specified in column (4)” The relevant portion of the said Notification is as under-:

Notification No.13 /2017- Central Tax (Rate) dated 28.06.2017

S.No.	Category of Supply of Services	Supplier of Services	Recipient of Services
1	2	3	4
6	Services supplied by a Director of a company or a body corporate to the said company or the body corporate	A director of a company or a body corporate	The company or a body Corporate located in taxable territory

Further it has been observed that consideration paid to the Directors is against the supply of services provided by them to the applicant company and are not covered under clause (1) of the Schedule III to the CGST Act, 2017 as the Directors are not the employee of the Company. In the instant case Director is the supplier of services and the applicant company is the recipient of the services. So, it is very clear that the services rendered by the Director to the company for which consideration is paid to them in any head is liable to pay GST under RCM.
It has also been observed that the applicant company is located in the taxable territory and the Director’s consideration is paid for the supply of services by the Directors to the applicant company and hence the same is liable to GST by way of reverse charge basis as provided under Notification No. 13/2017- Central Tax (Rate) dated 28.06.2017 issued under Section 9(3) of the Central Goods and Services Tax Act, 2017.
Notification No. 13 /2017- Central Tax (Rate) dated 28.06.2017 has given the distinct identity to the services provided by the Director and specifically included in the category of service on which GST will be payable under RCM. The case laws citied by the applicant are not relevant in the present case in as much as that the liability to pay GST under RCM in this case is required to be decided on the basis of the existing provisions of CGST law as being discussed briefly in this order.

Final conclusion of the Bench:

The Rajasthan bench of AAR finally concluded that:

As per entry 6 of notification No. 13/2017 Central Tax(rate) dated 28.06.2017 issued under section 9(3) of the CGST act 2017, the remuneration paid to the directors by the company will attract GST under the reverse charge mechanism.
Situation will remain same as (a) above and will attract GST under reverse charge mechanism even if the director also is a part time director in the company also.

Our Conclusion

The fact that employer-employee relationship cannot be taxed is well established by courts in their rulings under the erstwhile tax regimes.

Employer-employee relationship cannot be taxed as in which salary is paid which is not consideration. Further the reverse charge is applicable only in cases of director receiving commission income or sitting fees etc in which there is no employer employee relationship.

Section 7 of the CGST Act provides the definition of supply. Section 7(2)(a) provides the activities or transactions specified in schedule -III would be treated neither as a supply of goods nor a supply of services. Schedule III – treats the services by an employee to the employer in the course of or in relation to his employment neither supply of goods nor supply of services.

GST law allows a taxpayer to apply for an advance ruling to obtain clarifications from the Authority for Advance Ruling (‘AAR’). The CGST Act, provides that the order advance ruling pronounced by the Authority or the Appellate Authority shall be binding only on the applicant who had sought it in respect of any matter. Thereby it shall not be binding on any other taxpayer or company who has not applicant in that advance ruling. However, one needs to carefully consider the facts of each case to determine whether the amount paid to a director is with respect to his employment with the company or with respect to an independent professional.

There are chances that GST department starts sending Notices to all companies which may lead to litigation. we expect government to clarify this soon

Subscribe to Whats App Update

April, 11
0
Compliance Law, GST, GST Circular Notification
More

Standard

Reverse charge mechanism under GST for services and goods from April 2020

As per section 24 of the CGST act 2017, person paying tax under reverse charge mechanism has to compulsorily get registered even if the turnover is below the threshold limit.

Time of supply under Reverse charge mechanism:

The time of supply determines the point when the liability to charge GST arises. It also indicates when a supply is deemed to have been made. GST provides separate time of supply for goods and services.

In case of supply of goods:

As per section 12(3) the time of supply in case of goods shall be the earliest of the following, namely:

The date of the receipt of goods; or
The date of Payment; or
The date immediately following 30 days from the date of issue of invoice or any other documents, by whatever name called, in lieu thereof by the supplier.

Note: The date of payment must be determined as below:

i. the date of payment as entered in the books of account of the recipient; or

ii. the date on which the payment is debited in his bank account, whichever is earlier;

2 In case of supply of service:

As per section 13(3) the time of supply in case of service shall be the earliest of the following namely:

The date of payment; or
The date immediately following 60 days from the date of issue of invoice or any other documents, by whatever name called, in lieu thereof by the supplier.

Note: The date of payment must be determined as below:

i. the date of payment as entered in the books of account of the recipient; or

ii. the date on which the payment is debited in his bank account, whichever is earlier;

Categories of service on which tax will be payable under reverse charge mechanism under CGST act 2017:

The central government has notified the following categories of supply of services wherein the whole of central tax leviable under section 9 of the CGST act, shall be paid on reverse charge basis by the recipient of the such services:

Sr no.	Category of supply of services	Supplier of service	Recipient of service
1.	Supply of Services by a Goods Transport Agency (GTA) in respect of transportation of goods by road to- Any factory registered under the factories act, 1948; orAny society registered under the societies registration act, 1860; orAny cooperative society established by or under any law; orAny person registered under the CGST act or the IGST act or the SGST act or the UTGST act; orAny body cooperate established under any law; orAny partnership firm whether registered or not under any law including association of persons; orAny casual taxable person. RCM not applicable if recipient registered only for TDS: However, nothing contained in this entry shall apply to services provided by a goods transport agency by way of transport of goods in a goods carriage by road, to- A department or establishment of the central government or state government or union territory; orLocal authority; orGovernmental agencies, which has taken registration under the CGST act 2017 only for the purpose of deducting tax u/s 51 and not for making a taxable supply of goods or services.	Goods Transport Agency (GTA)	Any factory registered under the factories act, 1948; orAny society registered under the societies registration act, 1860; orAny cooperative society established by or under any law; orAny person registered under the CGST act or the IGST act or the SGST act or the UTGST act; orAny body cooperate established under any law; orAny partnership firm whether registered or not under any law including association of persons; orAny casual taxable person; Located in the taxable territory
2.	Services provided by an individual advocate including a senior advocate or firm of advocates by way of legal services, directly or indirectly.	An individual advocate including a senior advocate or firm or advocates	Any business entity located in the taxable territory. Business entity being, litigant, applicant or petitioner located in taxable territory.
3.	Services supplied by an arbitral tribunal to a business entity	An arbitral tribunal	An business entity located in the taxable territory
4.	Services provided by way of sponsorship to any body corporate or partnership firm	Any person	Any body corporate or partnership firm located in the taxable territory
5.	Services supplied by the central government, State government, Union territory or Local territory to a business entity excluding- renting of immovable property, andservices specified below- services by the department of posts by way of speed post, express parcel post, life insurance and agency services provided to a person other than central government, state government or union territory or local authority,Services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;Transport of goods or passengers	Central government, State government, Union territory or Local territory	Any business entity located in the taxable territory.
6.	Services supplied by the central government, State government, Union territory or Local authority by way of renting of immovable property to a person registered under the CGST act, 2017	Central government, state government, union territory or Local authority	Any person registered under the CGST act, 2017
7.	Services supplied by any person by way of transfer of development rights or floor space index for construction of a project by a promoter	Any person	Promoter
8.	Long term lease of land by any person against consideration in the form of upfront amount and/ or periodic rent for construction of a project by a promoter	Any person	Promoter
9.	Service supplied by an insurance agent to any person carrying on insurance business	An insurance agent	Any person carting on insurance business, located in taxable territory
10.	Services supplied by a director of a company or a body corporate to the said company or the body corporate	A director of a company or a body corporate	The company or a body corporate located in the taxable territory
11.	Services supplied by a recovery agent to a banking company or a financial institution or a non-banking company	A recovery agent	A banking company or a financial institution or a non-banking financial company, located in the taxable territory
12.	Supply of services by a music composer, photographer, artist or the like by way of transfer or permitting the use or enjoyment of a copyright covered u/s 13(1)(a) of the Copyright act 1957 relating to original dramatic, musical or artistic works to a music company, producer or the like	Music composer, photographer, artist, or the like	Music company, producer or the like, located in the taxable territory.
13.	Supply of services by an author by way of transfer or permitting the use or enjoyment of a copyright covered u/s 13(1)(a) of the Copyright act 1957 relating to original literary works to a publisher.	Author.	Publisher located in the taxable territory. However, nothing contained in this entry shall apply where,- The author has taken registration under the CGST act, 2017 and filed a declaration in the specified form before the commencement of financial year with the jurisdictional CGST or SGST commissioner, as the case may be that he exercises the option to pay central tax on such services in accordance with section 9(1) of the CGST act 2017 under forward charge and to comply with all the provisions of CGST act, 2017 as they apply to a person liable for paying the tax in relation to the supply of any goods or services or both and that he shall not withdraw the said option within a period of 1 year from the date of exercising such optionThe author makes a declaration regarding payment of tax on forward charge on the invoice issued by him in Form GST Inv-I to the publisher
14	Supply of services by the members of the overseeing committee to RBI	Members of the overseeing committee constituted by RBI	RBI
15	Services supplied by an Individual direct selling agents other than a body corporate, firm or LLP to Bank or NBFCs	Individual direct selling agents other than a body corporate, firm or LLP	A Banking company or a non-banking financial company, located in the taxable territory
16	Services provided by business facilitator to a banking company	Business facilitator	A Banking company located in a taxable territory
17	Services provided by an agent of business correspondent to business correspondent	An agent of business correspondent	A business correspondent located in a taxable territory
18	Security services provided to a registered person	Any person other than a body corporate	A registered person, located in a taxable territory
19	Services provided by way of renting of a motor vehicle provided to a body corporate	Any person other than a body corporate paying central tax at the rate of 2.5% on renting of motor vehicles with ITC only if input service in the same line of business	Any body corporate located in the taxable territory
20	Services of lending of securities under securities lending scheme, 1997 of SEBI	Lender i.e. a person who deposit securities registered in his name or in the name of any other person duly authorized on his behalf with an approved intermediary for the purpose of lending under the scheme of SEBI	Borrower i.e. a person who borrows the securities under the scheme through an approved intermediary of SEBI
21	Any service supplied by any person who is located in a non-taxable territory to any person other than non-taxable online recipient	Any person located in a non-taxable territory	Any person located in the taxable territory other than nontaxable online recipient
22	Services supplied by a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India upto the customs station of clearance in India	A person located in nontaxable territory	Importer as per customs act 1962 who is located in the taxable territory.

Subscribe to Whats App Update

Categories of goods on which tax will be payable under reverse charge mechanism under CGST act 2017:

The central government has notified the following categories of supply of goods wherein the whole of central tax leviable under section 9 of the CGST act, shall be paid on reverse charge basis by the recipient of the such goods:

S. No.	Tariff Item, Sub-heading, or Chapter	Description of Supply of Goods	Supplier of Goods	Recipient of Supply
1.	0801	Cashew nuts, not shelled or peeled	Agriculturist	Any registered person
2.	1404 90 10	Bidi wrapper leaves(tendu)	Agriculturist	Any registered person
3.	2401	Tobacco leaves	Agriculturist	Any registered person
4.	5004 to 5006	Silk yarn	Any person who manufactures silk yarn from raw silk or silk worm cocoons for supply of silk yarn	Any registered person
4A	5201 (Effective from 15-11-2017)	Raw cotton	Agriculturist	Any registered person
5.	–	Supply of lottery	State Government, Union Territory or any local authority	Lottery distributor or selling agent. Explanation. – For the purposes of this entry, lottery distributor or selling agent has the same meaning as assigned to it in clause (c) of Rule 2 of the Lotteries (Regulation) Rules, 2010, made under the 2 provisions of sub-section (1) of Section 11 of the Lotteries (Regulations) Act, 1998.
6.	Any Chapter (Effective from 13-10-2017)	Used vehicles seized and confiscated goods, old and used goods, waste and scrap	Central Government, State Government, Union territory or a Local authority.	Any registered person
7.	Any Chapter (Effective from 28-5-2018)	Priority Sector Lending Certificate	Any registered person	Any reg

Subscribe to Whats App Update

April, 11
0
Compliance Law, GST, GST Circular Notification
More

Standard

CBIC implements “Special Refund and Drawback Disposal Drive” to providing immediate relief to business entities, specially MSMEs

CBIC implements “Special Refund and Drawback Disposal Drive” in this month for providing immediate relief to business entities, specially MSMEs, in these difficult times. Instruction No. 03/2020-Cus dated 09.04.2020 issued to fight COVID-19

The following is the copy of instruction

Subscribe to What’s App Updated

April, 9
0
Corporate Law, GST, GST Circular Notification
More

Standard

How to Apply for GST Composition Scheme for 2020-21 Form GST CMP-02

Advisory on Opting-in Composition Scheme for 2020-21 by filing FORM GST CMP-02

Due to COVID-19 pandemic and challenges faced by taxpayers, Government has extended dates for opting for composition scheme by normal taxpayers, for the financial year 2020-21. These are notified in Notifications 30/2020 Central Tax, dated 03.04.2020. Circular No. 136/06/2020-GST dated 3rd April, 2020 has also been issued.

Existing Normal taxpayers who want to opt for Composition Scheme in Financial Year 2020-21 may note following changes:

Revised date to file Form GST CMP 02: Normal and registered taxpayers who want to opt in for Composition in FY 2020-21 can apply in Form GST CMP-02 by 30th June 2020.
No GSTR 1 or 3B must be filed in 2020-21 financial year for associated PAN: The taxpayers SHOULD NOT file any GSTR-1/GSTR-3B, for any tax period of FY 2020-21, from any of the GSTIN on the associated PAN, or else they will not be able to opt for composition scheme for FY 2020-21.
No need for re-opting for the composition scheme: The taxpayers who are already in composition scheme, in previous financial year are not required to opt in for composition again for FY 2020-2021.
Revised date to file Form GST ITC 03: Form GST ITC-03 to reverse ITC for the stock in hand at the time of transition can be filed till 31st July, 2020.

A. How to opt-in Composition Scheme:

The application for opting-in composition scheme for the financial year, 2020-21 has been made available on GST Portal.
The taxpayers who are already in composition scheme in previous financial year are not required to opt in for composition again for FY 2020-2021.
The eligible registered taxpayers, who want to opt-in for composition scheme for the Financial Year 2020-2021, may file FORM GST CMP-02 application up to 30 June 2020 on common portal.
The taxpayers should navigate as follows:
- Log-in>Services > Registration > Application to opt for Composition Levy>filing form GST CMP-02>file application under DSC/EVC.
Once CMP-02 application is filed, the composition scheme shall be available to the taxpayer w.e.f. 1st April 2020.
The taxpayers who were a regular taxpayers in previous financial year but are opting-in composition scheme for 2020-21 should file ITC-03 for reversal of ITC credit on stocks of Inputs, semi-finished goods and finished goods available with him within a period as prescribed under Rule, 3(3A) of CGST Rules, 2017.

B. Return /Payment

All taxpayers opting in for composition shall file FORM GST CMP-08 quarterly and pay GST and shall file GSTR-4 annually.

C. Who are eligible taxpayers for opting-in for Composition Scheme:-

Following taxpayers may opt for this scheme:

The normal taxpayers having aggregate turnover (at PAN level) below Rs. 1.5 Crore in the previous financial year, who doesn’t want to avail ITC facility,
The normal taxpayers having aggregate turnover (at PAN level) below Rs. 75 lakh in the previous financial year who are situated in following states:
1. Arunachal Pradesh,
2. Manipur,
3. Meghalaya,
4. Mizoram,
5. Nagaland,
6. Sikkim,
7. Tripura and
8. Uttarakhand:
The normal taxpayers supplying services and/or mixed supplies having aggregate turnover of last financial year below Rs. 50 lakhs.
Suppliers of the goods/services who are not liable to be taxed under GST,
Inter-State outward suppliers of goods/services,
The taxpayers supplying through e-commerce operators, who are required to collect tax under section 52,
The manufacturers of notified goods like (i) Ice cream and other edible ice, whether or not containing cocoa, (ii) All goods, i.e. Tobacco and manufactured tobacco substitutes and (iii) Pan Masala, (iv) Aerated water
A Casual taxpayer,
A Non-Resident Foreign Taxpayer,
A person registered as Input Service Distributor (ISD),
A person registered as TDS Deductor /Tax Collector,

Subscribe to Whats App Update

April, 9
0
Compliance Law, GST, GST Circular Notification
More

Standard

Latest GST Due date for March April May June 2020 as per Notifications

The Government has provided relief to taxpayers in view of COVID -19 pandemic by extending the dates of GST filing.

For Normal Taxpayers filing Form GSTR3B

A) Taxpayers having aggregate turnover > Rs. 5 Cr. in preceding FY

Tax period	Original Due Date	Due date Extended	Interest	Late fees waived if return filed on or before
Feb, 2020	20/03/2020	04/04/2020	# Interest @ 9% from 05/04/2020- 24/06/2020 # Interest @ 18% from 25/06/2020 onwards	24th June, 2020
March, 2020	20/04/2020	05/05/2020	# Interest @ 9% from 05/04/2020- 24/06/2020 # Interest @ 18% from 25/06/2020 onwards	24th June, 2020
April, 2020	20/05/2020	04/06/2020	# Interest @ 9% from 05/04/2020- 24/06/2020 # Interest @ 18% from 25/06/2020 onwards	24th June, 2020
May, 2020	20/06/2020	27/06/2020		27th June, 2020 (extended due date for filing)

B) Taxpayers having aggregate turnover of > Rs. 1.5 crores and upto Rs. 5 crores in preceding FY

Tax period	Late fees waived if return filed on or before
Feb, 2020	29th June, 2020
March, 2020	29th June, 2020
April, 2020	30th June, 2020

C) Taxpayers having aggregate turnover of upto Rs. 1.5 crores in preceding FY

Tax period	Late fees waived if return filed on or before
Feb, 2020	30th June, 2020
March, 2020	03rd July, 2020
April, 2020	6th July, 2020

D) Taxpayers having aggregate turnover of upto Rs. 5 Cr. in preceding FY

Tax period	Extended date and no late fees if return filed on or before	Principal place of business is in State/UT of
May, 2020 Group 1 States/UTs	12th July, 2020	Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, Daman & Diu and Dadra & Nagar Haveli, Puducherry, Andaman and Nicobar Islands, Lakshadweep
May, 2020 Group 2 States/UTs	14th July, 2020	Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand, Odisha, Jammu and Kashmir, Ladakh, Chandigarh, Delhi

Subscribe to Whats App Update

Normal Taxpayers filing Form GSTR1

Tax period	Due Date	Waiver of late fee if return filed on or before
March 2020	11.04.2020	30.06.2020
April 2020	11.05.2020	30.06.2020
May 2020	11.06.2020	30.06.2020
Quarterly taxpayers Jan to March 2020	30.04.2020	30.06.2020

Highlights of notifications in view of Covid- 19

Sr No	Notification	Reliefs
1	Notification No. 30/2020- Central Tax, dated 03.04.2020	Amendment in the CGST Rules so as to allow taxpayers opting for the Composition Scheme for the financial year 2020-21 to file their option in FORM CMP-02 till 30^th June, 2020 and to allow cumulative application of the condition in rule 36(4) for the months of February, 2020 to August, 2020 in the return for tax period of September, 2020.
2	Notification No. 31/2020- Central Tax, dated 03.04.2020	A lower rate of interest of NIL for first 15 days after the due date of filing return in FORM GSTR-3B and @ 9% thereafter is notified for those registered persons having aggregate turnover above Rs. 5 Crore and NIL rate of interest is notified for those registered persons having aggregate turnover below Rs. 5 Crore in the preceding financial year, for the tax periods of February, 2020 to April, 2020. This lower rate of interest shall be subject to condition that due tax is paid by filing return in FORM GSTR-3B by the date(s) as specified in the Notification.
3	Notification No. 32/2020- Central Tax, dated 03.04.2020	Notification under section 128 of CGST Act for waiver of late fee for delay in furnishing returns in FORM GSTR-3B for the tax periods of February, 2020 to April, 2020 provided the return in FORM GSTR-3B by the date as specified in the Notification.
4	Notification No. 33/2020- Central Tax, dated 03.04.2020	Notification under section 128 of CGST Act for waiver of late fee for delay in furnishing the statement of outward supplies in FORM GSTR-1 for taxpayers for the tax periods March, 2020 to May, 2020 and for quarter ending 31st March 2020 if the same are furnished on or before 30th day of June,2020.
5	Notification No. 34/2020- Central Tax, dated 03.04.2020	Extension of due date of furnishing statement, containing the details of payment of self-assessed tax in FORM GST CMP- 08 for the quarter ending 31st March, 2020 till the 7th day of July, 2020 and filing FORM GSTR-4 for the financial year ending 31st March, 2020 till the 15th day of July, 2020.
6	Notification No. 35/2020- Central Tax, dated 03.04.2020	Notification under section 168A of CGST Act for extending due date of compliance which falls during the period from the 20^th day of March, 2020 to the 29th day of June, to 30th day of June, 2020.

Subscribe to Whats App Update

Standard

Clarification in respect of various measures announced by the Government for providing relief to GST taxpayers in view of spread of Novel Corona Virus

The spread of Novel Corona Virus (COVID-19) across many countries of the world, including India, has caused immense loss to the lives of people and resultantly impacted the trade and industry. In view of the emergent situation and challenges faced by taxpayers in meeting the compliance requirements under various provisions of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the “CGST Act”), Government has announced various relief measures relating to statutory and regulatory compliance matters across sectors.

Government has issued following notifications in order to provide relief to the taxpayers:

S. No.	Notification	Remarks
1.	Notification No. 30/2020- Central Tax, dated 03.04.2020	Amendment in the CGST Rules so as to allow taxpayers opting for the Composition Scheme for the financial year 2020-21 to file their option in FORM CMP-02 till 30^th June, 2020 and to allow cumulative application of the condition in rule 36(4) for the months of February, 2020 to August, 2020 in the return for tax period of September, 2020.
2.	Notification No. 31/2020- Central Tax, dated 03.04.2020	A lower rate of interest of NIL for first 15 days after the due date of filing return in FORM GSTR-3B and @ 9% thereafter is notified for those registered persons having aggregate turnover above Rs. 5 Crore and NIL rate of interest is notified for those registered persons having aggregate turnover below Rs. 5 Crore in the preceding financial year, for the tax periods of February, 2020 to April, 2020. This lower rate of interest shall be subject to condition that due tax is paid by filing return in FORM GSTR-3B by the date(s) as specified in the Notification.

Subscribe to Whats App Update

3.	Notification No. 32/2020- Central Tax, dated 03.04.2020	Notification under section 128 of CGST Act for waiver of late fee for delay in furnishing returns in FORM GSTR-3B for the tax periods of February, 2020 to April, 2020 provided the return in FORM GSTR-3B by the date as specified in the Notification.
4.	Notification No. 33/2020- Central Tax, dated 03.04.2020	Notification under section 128 of CGST Act for waiver of late fee for delay in furnishing the statement of outward supplies in FORM GSTR-1 for taxpayers for the tax periods March, 2020 to May, 2020 and for quarter ending 31^st March 2020 if the same are furnished on or before 30^th day of June, 2020.
5.	Notification No. 34/2020- Central Tax, dated 03.04.2020	Extension of due date of furnishing statement, containing the details of payment of self-assessed tax in FORM GST CMP- 08 for the quarter ending 31^st March, 2020 till the 7^th day of July, 2020 and filing FORM GSTR-4 for the financial year ending 31^st March, 2020 till the 15^th day of July, 2020.
6.	Notification No. 35/2020- Central Tax, dated 03.04.2020	Notification under section 168A of CGST Act for extending due date of compliance which falls during the period from the 20^th day of March, 2020 to the 29^th day of June, to 30^th day of June, 2020.

Various issues relating to above mentioned notifications have been examined. In order to ensure uniformity in the implementation of the provisions of the law across the field formations, the Board, in exercise of its powers conferred under section 168(1) of the CGST Act hereby clarifies each of these issues as under:-

S. No.	Issue	Clarification
1.	What are the measures that have been specifically taken for taxpayers who have opted to pay tax under section 10 the CGST Act or those availing the option to pay tax under the notification No. 02/2019– Central Tax (Rate), dated the 7^th March, 2019?	1. The said class of taxpayers, as per the notification No. 34/2020- Central Tax, dated 03.04.2020, have been allowed, to,- furnish the statement of details of payment of self- assessed tax in FORM GST CMP-08 for the quarter January to March, 2020 by 07.07.2020; andfurnish the return in FORM GSTR-4 for the financial year 2019-20 by 15.07.2020. 2. In addition to the above, taxpayers opting for the composition scheme for the financial year 2020-21, have been allowed, as per the notification No. 30/2020- Central Tax, dated 03.04.2020, to,- file an intimation in FORM GST CMP-02 by 30.06.2020; andfurnish the statement in FORM GST ITC-03 till 31.07.2020.
2.	Whether due date of furnishing FORM GSTR-3B for the months of February, March and April, 2020 has been extended ?	The due dates for furnishing FORM GSTR-3B for the months of February, March and April, 2020 has not been extended through any of the notifications referred in para 2 above.However, as per notification No. 31/2020- Central Tax, dated 03.04.2020, NIL rate of interest for first 15 days after the due date of filing return in FORM GSTR-3B and reduced rate of interest @ 9% thereafter has been notified for those registered persons whose aggregate turnover in the preceding financial year is above Rs. 5 Crore. For those registered persons having turnover up to Rs. 5 Crore in the preceding financial year, NIL rate of interest has also been notified. 3. Further, vide notification as per the notification No. 32/2020- Central Tax, dated 03.04.2020, Government has waived the late fees for delay in furnishing the return in FORM GSTR-3B for the months of February, March and April, 2020. 4. The lower rate of interest and waiver of late fee would be available only if due tax is paid by filing return in FORM GSTR-3B by the date(s) as specified in the Notification.
3	What are the conditions attached for availing the reduced rate of interest for the months of February, March and April, 2020, for a registered person whose aggregate turnover in the preceding financial year is above Rs. 5 Crore?	As clarified at sl.no. (2) above, the due date for furnishing the return remains unchanged; i.e. 20th day of the month succeeding such month. The rate of interest has been notified as Nil for first 15 days from the due date, and 9 per cent per annum thereafter, for the said months. The reduced rate of interest is subject to the condition that the registered person must furnish the returns in FORM GSTR-3B on or before 24th day of June, 2020. In case the returns in FORM GSTR-3B for the said months are not furnished on or before 24th day of June, 2020 then interest at 18% per annum shall be payable from the due date of return, till the date on which the return is filed. In addition, regular late fee shall also be leviable for such delay along with liability for penalty.
4	How to calculate the interest for late payment of tax for the months of February, March and April, 2020 for a registered person whose aggregate turnover in preceding financial year is above Rs. 5 Crore?	1. As explained above, the rate of interest has been notified as Nil for first 15 days from the due date, and 9 per cent per annum thereafter, for the said months. The same can be explained through an illustration. Illustration:- Calculation of interest for delayed filing of return for the month of March, 2020 (due date of filing being 20.04.2020) may be illustrated as per the below Table:

S. No.	Date of filing GSTR-3B	No. of days of delay	Whether condition for reduced interest is fulfilled?	Interest
1	02.05.2020	11	Yes	Zero interest
2	20.05.2020	30	Yes	Zero interest for 15 days + interest rate @9% p.a. for 15 days
3	20.06.2020	61	Yes	Zero interest for 15 days + interest rate @9% p.a. for 46 days
4	24.06.2020	65	Yes	Zero interest for 15 days + interest rate @9% p.a. for 50 days
5	30.06.2020	71	NO	Interest rate @18% p.a. for 71 days (i.e. no benefit of reduced interest)

5.	What are the conditions attached for availing the NIL rate of interest for the months of February, March and April, 2020, for a registered person whose aggregate turnover in preceding financial year is up to Rs. 5 Crore?	As clarified at sl.no. (2) above, the due date for furnishing the return remains unchanged. The rate of interest has been notified as Nil for the said months.The conditions for availing the NIL rate of interest is that the registered person must furnish the returns in FORM GSTR-3B on or before the date as mentioned in the notification No. 31/2020- Central Tax, dated 03.04.2020.In case the return for the said months are not furnished on or before the date mentioned in the notification then interest at 18% per annum shall be charged from the due date of return, till the date on which the return is filed as explained in the illustration at sl.no (4) above, against entry 5. In addition, regular late fee shall also be leviable for such delay along with liability for penalty.
6.	Whether the due date of furnishing the statement of outward supplies in FORM GSTR-1 under section 37 has been extended for the months of February, March and April 2020?	Under the provisions of section 128 of the CGST Act, in terms of notification No. 33/2020- Central Tax, dated 03.04.2020, late fee leviable under section 47 has been waived for delay in furnishing the statement of outward supplies in FORM GSTR-1 under Section 37, for the tax periods March, 2020, April 2020, May, 2020 and quarter ending 31^st March 2020 if the same are furnished on or before the 30^th day of June, 2020.
7.	Whether restriction under rule 36(4) of the CGST Rules would apply during the lockdown period?	Vide notification No. 30/2020- Central Tax, dated 03.04.2020, a proviso has been inserted in CGST Rules 2017 to provide that the said condition shall not apply to input tax credit availed by the registered persons in the returns in FORM GSTR-3B for the months of February, March, April, May, June, July and August, 2020, but that the said condition shall apply cumulatively for the said period and that the return in FORM GSTR-3B for the tax period of September, 2020 shall be furnished with cumulative adjustment of input tax credit for the said months in accordance with the condition under rule 36(4).
8.	What will be the status of e-way bills which have expired during the lockdown period?	In terms of notification No. 35/2020- Central Tax, dated 03.04.2020,Issued under the provisions of 168A of the CGST Act, where the validity of an e-way bill generated under rule138 of the CGST Rules expires during the period 20th day of March, 2020 to 15th day of April, 2020, the validity period of such e-way bill has been extended till the 30th day of April, 2020.

Subscribe to Whats App Update

9.	What are the measures that have been specifically taken for taxpayers who are required to deduct tax at source under section 51, Input Service Distributors and Non-resident Taxable persons?	Under the provisions of section 168A of the CGST Act, in terms of notification No. 35/2020- Central Tax, dated 03.04.2020, the said class of taxpayers have been allowed to furnish the respective returns specified in sub-sections (3), (4) and (5) of section 39 of the said Act, for the months of March, 2020 to May, 2020 on or before the 30^th day of June, 2020.
10.	What are the measures that have been specifically taken for taxpayers who are required to collect tax at source under section 52?	Under the provisions of section 168A of the CGST Act, in terms of notification No. 35/2020- Central Tax, dated 03.04.2020, the said class of taxpayers have been allowed to furnish the statement specified in section 52, for the months of March, 2020 to May, 2020 on or before the 30^th day of June, 2020.
11.	The time limit for compliance of some of the provisions of the CGST Act is falling during the lock-down period announced by the Government. What should the taxpayer do?	Vide notification No. 35/2020- Central Tax, dated 03.04.2020, issued under the provisions of 168A of the CGST Act, except for few provisions covered in exclusion clause, any time limit for completion or compliance of any action which falls during the period from the 20^th day of March, 2020 to the 29^th day of June, 2020, and where completion or compliance of such action has not been made within such time, has been extended to 30^th day of June, 2020.