GST Amnesty Scheme

 As per the proposals made in  43rd GST Council meeting  on 28th May, 2021 via video conferencing, the Finance Ministry has notified the  GST Amnesty Scheme. 

As per the Amnesty Scheme, the taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year for the tax period March, 2021, April, 2021 and May, 2021, the period for which the late fee waived will be 15 days from the due date of furnishing return. 

The Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year who are liable to furnish the return as specified under sub-section (1) of section 39 in case of the tax period of March, 2021 the period for which the late fee waived will be 60 days from the due date of furnishing return; in case of the tax period of April, 2021 the period for which the late fee waived will be 45 days from the due date of furnishing return and  in case of the tax period of May, 2021 the period for which the late fee waived will be 30 from the due date of furnishing return. 

Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year who are liable to furnish the return as specified under proviso to sub-section (1) of section 39 for the quarter January-March, 2021 the late fee waived will be for 60 days from the due date of furnishing return. 

The government has notified that the registered persons who failed to furnish the return in FORM GSTR-3B for the months /quarter of July, 2017 to April, 2021, by the due date but furnish the said return between the period from the 1June, 2021 to the 31August, 2021, the total amount of late fee under section 47 of the said Act, shall stand waived which is in excess of five hundred rupees. 

The Board has further notified that where the total amount of central tax payable in the said return is nil, the total amount of late fee under section 47 of the said Act shall stand waived which is in excess of two hundred and fifty rupees for the registered persons who failed to furnish the return in FORM GSTR-3B for the months / quarter of July, 2017 to April, 2021, by the due date but furnish the said return between the period from the 1 June, 2021 to the 31 August, 2021. 

The total amount of late fee payable under section 47 of the said Act for the tax period June, 2021 onwards or quarter ending June, 2021 onwards, as the case may be, shall stand waived which is in excess of Rs. 250/- for the registered persons whose total amount of central tax payable in the said return is nil, who fail to furnish the returns in FORM GSTR-3B by the due date. 

The Government has further waived the late fee for the tax period June, 2021 onwards or quarter ending June, 2021 which is in excess of Rs.1000 for Registered persons having an aggregate turnover of up to Rs.1.5 crores in the preceding financial year. 

Lastly, the late fee has been waived for the tax period June, 2021 onwards or quarter ending June, 2021 which is in excess of Rs.2500/- for taxpayers having an aggregate turnover of more than rupees 1.5 crores and up to rupees 5 crores in the preceding financial year. 

Notifications: Amendments as per recommendations of GST Council

Real-time tracking details of e-way bill and vehicle

With effect from January 1, 2021, the government has integrated RFID/Fastag with the e-way bill system and a transporter is required to have a RFID tag in his vehicle and details of the e-way bill generated for goods being carried by the vehicle is uploaded into the RFID. When the vehicle passes the RFID Tag reader on the highway, the details fed into the device gets uploaded on the government portal. 

The information is later used by the revenue officials to validate the supplies made by a GST registered person. To improve tax compliance, the government has also started blocking of EWB bill generation if a GST registered taxpayer has not filed GSTR- 3B return for the last two successive months. Also, the government has blocked the generation of multiple EWBs on one invoice. If the EWB is once generated using an invoice number or document number, then none of the other parties can generate another EWB using the same invoice number.

Besides, the e-way bills system has enabled auto calculation of distance based on PIN codes. The system will auto calculate the distance between the source and destination, based on PIN codes.

GST officers have been armed with real-time data of commercial vehicle movement on highways with integration of the e-way bill (EWB) system with Fastag and RFID, a move which will help in live vigilance of such vehicles and check GST evasion. Additional features have been added to the e-way bill mobile application of tax officers, which will provide them real-time tracking details of e-way bill and vehicle to help them nab tax evaders who are misusing the e-way bill system.

Taxmen can now access reports on vehicles that have passed the selected tolls without e-way bills in the past few minutes. Also, the vehicles carrying critical commodities specific to the state and have passed the selected toll can be viewed. Any suspicious vehicles and vehicles of EWBs generated by suspicious taxpayer GSTINs , that have passed the selected toll on a near real time basis, can also be viewed in this report. The officers can use of these reports while conducting vigilance and make the vigilance activity more effective. Also, the officers of audit and enforcement wing can use these reports to identify the fraudulent transactions like bill trading, recycling of EWBs.

Source: EWB Vehicle Tracking Module

Budget 2021 Indirect Tax Proposals

The Union Budget 2021-22 was presented by the Hon’ble Finance Minister Nirmala Sitharaman on 1st February 2021 in the Parliament. Highlights of Indirect Tax Proposals: Bugget 2021- Highlights of Indirect Tax Proposals 

Recent Amendments in GST Act and Rules

 Recently, Government has issued 2 Notifications both are very critical.

With the amendments in GST Laws, GST officials will enjoy more powers which adds on the difficulties in the miserable life of tax payers and tax professionals, these amendments are directly going to affect working capital of the tax payer and will also affect the tax compliance procedures making it more cumbersome. In this article we will touch upon only two notifications, namely: 

1.     Notification No. 92/2020- Central Tax dated 22^nd December 2020 – amended the act.

2.     Notification No. 94/2020- Central Tax dated 22nd December 2020  – amended the rule.   

      Read the full article:  Recent amendments in GST Act and Rules

Recommendation of 40th GST Council Meeting dated 12th June 2020

Following relaxation was recommended in GST Council Meeting for filing of GSTR Returns dated 12-06-2020. The Same would be given effect through relevant circulars/ Notifications.

• Relaxation for Taxpayers having aggregate turnover up to ₹5 Crore by waiver of late fee and Interest if the GSTR-3B for the period May 2020 to July 2020 are furnished by Sept. 2020 ( dates to be notified ).
• One time extension in period for seeking revocation of cancellation of registration To facilitate tax payers who could not filed their cancelled GST registration resorted in time, an opportunity is being provided for filing of application of revocation of cancellation registration up to 30.09.2020 in all cases where registration have been cancelled till 12.06.2020.
• As per the earlier issued notification no. 31/2020 issued below specified date was notified to file GSTR-3B for small tax payers, now relaxation is provided to small tax payers by reducing the rate of interest for filing GSTR-3B for the period Feb 20 to April 20 beyond specified dates to 9% pa. from 18% if filing is done till 30.09.2020:

No.	Taxpayer on the basis of	Rate of	Tax Period	Specified dates for filing of       GSTR-3B (Condition)
1	Turnover  ₹1.5 Cr- ₹5Cr	NIL	Feb 20, March 20	On or before 29th day of June, 2020
			April,20	On or before 30th day of June, 2020
2	Turnover < ₹1.5Cr	NIL	Feb,20	On or before 30th day of June, 2020
			March,20	On or before 3rd day of July, 2020
			April,20	On or before 6th day of July, 2020

• Relaxation for July-17 to Jan- 20, in filing GSTR-3B return:

Return	Period	Late Fee		Condition
GSTR 3B	July-17 to Jan 2020	NIL if no tax liability	Maximum 500 per return in case of liability	GSTR-3B furnished between 1.07.2020 to 30.09.2020

GST Liability on Director's remuneration

The issue of remuneration to directors has been examined under following two different categories:

• leviability of GST on remuneration paid by companies to the independent directors defined in terms of section 149(6) of the Companies Act, 2013 or those directors who are not the employees of the said company; and
• leviability of GST on remuneration paid by companies to the whole-time directors including managing director who are employees of the said company.

Whether or not a "Director" is an employee of the company. In this regard, from the perusal of the relevant provisions of the Companies Act, 2013, it can be inferred that:

• the definition of a whole time-director under section 2(94) of the Companies Act, 2013 is an inclusive definition, and thus he may be a person who is not an employee of the company.
• the definition of "independent directors" under section 149(6) of the Companies Act, 2013, read with Rule 12 of Companies (Share Capital and Debentures) Rules, 2014 makes it amply clear that such director should not have been an employee or proprietor or a partner of the said company, in any of the three financial years immediately preceding the financial year in which he is proposed to be appointed in the said company.

Therefore, in respect of such directors who are not the employees of the said company, the services provided by them to the Company, in lieu of remuneration as the consideration for the said services,  the recipient of the said services i.e. the Company, is liable to discharge the applicable GST on it on reverse charge basis. 

It is hereby clarified that the remuneration paid to such independent directors, or those directors, by whatever name called, who are not employees of the said company, is taxable in hands of the company, on reverse charge basis.

Accordingly, it is clarified that the part of Director's remuneration which are declared as "Salaries" in the books of a company and subjected to TDS under Section 192 of the IT Act, are not taxable being consideration for services by an employee to the employer in the course of or in relation to his employment.

It is further clarified that the part of employee Director's remuneration which is declared separately other than "salaries‟ in the Company's accounts and subjected to TDS under Section 194J of the Income Tax Act as Fees for professional or Technical Services shall be treated as consideration for providing services, and is therefore, taxable. The recipient of the said services i.e. the Company, is liable to discharge the applicable GST on it on reverse charge basis.

Copy of Circular: Clarification in respect of levy of GST on Director’s Remuneration

RECENT AMENDMENTS UNDER GST

• Due date to furnish GST return for F,Y, 2018-19 extended to September 30, 2020. Notification No.41/2020-Central Tax, 5th May. 2020.

• CBIC earlier vide Notification no. 35/2020 dated 3rd April, 2020 extended the period of validity till 30th April, 2020 for e-way bill validity expires during the period 20th day of March, 2020 to 15th day of April, 2020. Now CBIC vide Notification No. 40/2020-Central Tax, dated 5th May, 2020, provided that where an e-way bill has been generated on or before the 24th day of March, 2020 and its period of validity expires during the period 20th day of March, 2020 to the 15th day of April, 2020, the validity period of such e-way bill shall be deemed to have been extended till the 31st day of May, 2020. Notification No. 40/2020-Central Tax, 5th May, 2020.

•  A registered person registered under the provisions of the Companies Act, 2013 (18 of 2013) shall, during the period from the 21st day of April, 2020 to the 30th day of June, 2020, also be allowed to furnish the return under section 39 in FORM GSTR3B verified through electronic verification code (EVC).  A registered person who is required to furnish a Nil return under section 39 in FORM GSTR-3B for a tax period, any reference to electronic furnishing shall include furnishing of the said return through a short messaging service using the registered mobile number and the said return shall be verified by a registered mobile number based One Time Password facility. Notification No.38/2020-Central Tax, 5th May. 2020.