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

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.

UNION BUDGET 2020- IMPORTANT AMENDMENTS INTRODUCED IN GST ACT

Amendment in penalty provisions:

Section 122 of the CGST Act has been amended to comprise that the person involved/benefited out of fake ITC (Input Tax Credit) shall also be liable for a penalty of 100% of the tax involved. The penalty will be levied on that person who retains the benefit of a fraudulent supply of goods and/or services and on a person at whose instance such fraudulent transactions are executed.

However, it would be expedient for the enforcement authorities to ensure that bonafide person or recipients do not have to pass through the harshness of such severe provisions.

Section 132 of the CGST Act has been amended to make the offence of a fraudster availing ITC (Input Tax Credit) without any invoice or bill as cognizable and non-bailable. The law is amended to extend the imprisonment to those ‘who causes to commit’ and ‘person retaining the benefit’. Before introducing the amendment, the punishment was restricted only to the person who committed the fraud.

Date for ITC on Debit Note:The date of the debit note will be considered for availing ITC (Input Tax Credit).  This will benefit a lot, now, ITC in respect of a debit note issued in, for example, Financial year 2020-21 for an invoice of Financial year 2019-20 can now be claimed by the recipient on or before the due date of September 2021 return or the annual return of Financial Year 2020-21, whichever is earlier.

Composition scheme to service providers:

Composition scheme cannot be availed by taxpayers supplying services outside the state, making exempt supplies, or making supplies through e-commerce operators who are liable for Tax Collected at Source (TCS).

Miscellaneous:

Refunds due to inverted tax prevalent for tobacco products is barred with a retrospective effect from 1 July 2017. the retrospective effect has been given for transition provisions from 1 July 2017.  

A new provision has been included to provide for the cancellation of voluntary GST registration of distinct people.

The power to condone the delay in applying for revocation of cancellation has been given to Additional Commissioners and Commissioners for 30 days.

The supply of fishmeal provided a retrospective GST exemption from 1 July 2017 to 30 September 2019.

It further seeks to retrospectively levy central tax at the reduced rate of six per cent. on supply of pulley, wheels and other parts (falling under heading 8483) and used as parts of agricultural machinery of headings 8432, 8433 and 8436, during the period from the 1st day of July, 2017 up to 31st day of December, 2018 (both days inclusive).  It also seeks to provide that no refund shall be made of the tax which has already been collected.

CBIC extended the time limit to issue the removal of difficulty order from earlier three-year limit to now five years w.e.f 1 July 2017. Also, the board’s approval is not required for the order to determine the expense in special audit and extension of the time limit to return the inputs and capital goods from job worker.

Aligned the definition of “Union territory” in line with the Jammu and Kashmir Reorganization Act, 2019 and the Dadra and Nagar Haveli and Daman and Diu (Merger of Union Territories), Act, 2019. Thus, new union territory, Ladakh has been included in the definition of Union Territory. Jammu & Kashmir will have its appellate tribunal.

Source: Finance Bill 2020

Disclaimer: ‐
This article is intended for private circulation & knowledge sharing purpose only. We have made best of our efforts to ensure the accuracy of information in this article, however we will not be responsible for any errors that may have sneaked in unconsciously and do not accept any liability whatsoever, for any direct or consequential loss arising to any one from any kind of use of this article.

Dear GST-registered dealer - DON’T DO ANY OF THESE

You will be inviting trouble if GSTR 3B return is not filed on or before 20th of coming month or late filed. CBIC has released CIRCULAR NO. 129/48/2019-GST [F. NO. 20/06/04/2019-GST], DATED 24-12-2019. Crux of the matter in nutshell is as below:

• You will receive an e-mail/ message alert from GST department on 17th of the month to file GSTR-3B by 20th.
• If GSTR 3B is not filed on or before 20th i.e. due date then again message will come on 21st that the return is not filed.
• If the return is not filed till 25th, then department will issue a notice in GSTR- 3A directing to file the return within 15 days,
• If the returns is still not filed within 15 days, then the proper officer in GST department will assess your liability of that month and determine the tax to the best of his judgement under FORM ASMT-13 ,
• If the said return remains unfurnished within the statutory period of 30 days from issuance of order in FORM ASMT-13, then proper officer may initiate proceedings under section 78 and recovery under section 79 of the CGST Act.

All these email and messages are going to be generated automatically by the system. So now onwards, if you need to avoid strict action by the department be firm in timely filing of GST return.

Source: Circular No.129/48/2019-GST, dated 24.12.2019

PROVISIONAL ITC in FORM GSTR-3B as per the New CGST Rule

The CBIC released an important NOTIFICATION NO. 49/2019 - CENTRAL TAX, dated 9-10-2019, inserting a new sub-rule (4) under rule 36 of the CGST Rules, 2017, stating that provisional credit can be hereafter claimed in the GSTR-3B only to the extent of 20% of eligible ITC reflected in the GSTR-2A.

Read more: Provisional ITC in Form FSTR-3B as per the New CGST Rules

Source:  http://cbic.gov.in

BUDGET HIGHLIGHTS FOR GST

1. Interest to be computed on net tax liability 

Earlier there was a confusion among taxpayers on the issue of delayed payment of tax, whether interest would be charged on gross tax liability or only on net tax liability. 

A Proviso has been inserted in Section 50 of the CGST Act, 2017 (‘Interest on Delayed Payment of Tax’) to clarify that interest for late payment of tax shall be levied only on that portion of tax which has been paid by debiting the electronic cash ledger.

The exception to this rule is, where returns are filed subsequent to initiation of any proceedings under GST Act, in that case the interest shall be levied on the gross tax liability. 

2. Transfer amount from one head (major or minor) to another in electronic cash ledger 

Earlier, if the assesse has wrongly deposited any amount under wrong head either minor head (tax, interest, penalty or fee) or major head (IGST, SGST, CGST, UTGST), the only option left with the assesse is to apply for refund. The amount kept under a particular head was not allowed to be transferred from one head to another in the electronic ledger. 

Now a registered person has been provided with the facility to transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger to the electronic cash ledger for Integrated Tax, Central Tax, State Tax, Union Territory Tax or Cess through a new form PMT-09 subject to the conditions and restrictions prescribed under GST Act. Such transfer shall be deemed to be a refund from the electronic cash ledger. 

3. Aadhaar Authentication 

Every registered person shall authenticate, or furnish proof of possession of Aadhaar number. 

If an Aadhaar number is not assigned to the registered person, such person shall be offered an alternate and viable means of identification.

In case of failure to undergo authentication or furnish proof of possession of Aadhaar number or furnish alternate and viable means of identification, registration allotted to such person shall be deemed to be invalid.

4. Composition Scheme will apply to service providers also
Section 10 of CGST Act, as is presently, makes provisions only in respect of suppliers of goods. This section is proposed to be amended by inserting section 10(2A) of CGST Act to provide for composition scheme for suppliers of service and goods with aggregate turnover upto Rs 50 lakhs. The tax rate will be upto 3% CGST plus 3% SGST/UTGST.

Following are other changes in section 10 of CGST Act –
(a) 'Exempt supply' will not include interest or discount on deposits, loans or advances. Thus, this interest will not be considered for calculating 'aggregate turnover' for eligibility of composition scheme.
(b) Interest will also not be considered for calculating exemption limit of first 10/20/40 lakhs in the first year of operation of business.
(c) Casual taxable person or non-resident taxable person will not be eligible for composition scheme. Earlier, conditions (a) and (c) were already provided. Only condition (b) is a fresh relaxation.

5. Changes in calculation of exemption of 20/40 lakhs
The small taxable persons with aggregate turnover upto 10/20/40 lakhs are not required to register under CGST. Now, it is provided that Calculation of exemption of 20/40 lakhs will be excluding interest on deposits, loans and advances – explanation 2 to section 22 of CGST Act (proposed to be inserted)

6. Powers to Central Government to refund State Tax
At present, if taxable person is under jurisdiction of Central Government, if Central Government sanctions refund, the taxable person has to go to State/Union Territory GST authorities to get refund of SGST/UTGST. Now, it is provided that Central Tax Authorities may refund SGST/UTGST also – section 54(6A) of CSGT Act proposed to be inserted.

7. Penalty for profiteering
Penalty upto 10% of amount profiteered can be imposed by Authority for Anti-Profiteering. The penalty will not be payable if amount ordered is deposited within 30 days – section 171(3A) of CGST Act proposed to be inserted.

8. National Appellate Authority for Advance Ruling
National Appellate Authority for Advance Ruling (NAAAR) will be constituted by Central Government on recommendation of GST Council, under section 101A of CGST Act (proposed to be inserted). The NAAAR shall consist of President, Technical Member (Centre) and Technical Member (State).
Presently, appeal against order of Authority of Advance Ruling (AAR) of a State/Union Territory lies with Appellate Authority of Advance Ruling (AAAR) of the State/Union Territory. It is found that in some case, the Appellate Authority of Advance Ruling (AAAR) of two States/Union Territories give conflicting advance rulings on same question. In that case, provision has been made to file appeal before National Appellate Authority for Advance Ruling.
Appeal can be filed by – (a) departmental officer authorised by Commissioner of the State where AAAR has given ruling (b) Applicant who is distinct person as per section 25 of CGST Act [i.e. person who has obtained separate GST registration in different State, but with same Income Tax PAN] - section 101B(1) of CGST Act (proposed to be inserted).
Thus, third person cannot file appeal, even if he is aggrieved by decisions of two different AAAR of two different States/Union Territories.
Appeal should be filed within 30 days in case of taxable person and within 90 days in case of departmental appeal - section 101B(2) of CGST Act (proposed to be inserted). The NAAAR can condone delay in filing appeal.
The ruing of NAAAR shall be binding on department only in respect of taxable persons with same Income Tax PAN. The ruling will also bind applicants and registered persons with same Income Tax PAN [In case of other taxable persons, the ruling will only have persuasive value - section 103 (1A) of CGST Act (proposed to be inserted).

9. Time limit for filing TCS statement can be extended
Section 52 of CGST Act is being amended to provide powers to Commissioner for granting extension of time limit for filing TCS statements [at present, such exemption is given by circulars or notifications without authority].

10. Time limit for filing annual return can be extended
Section 44 of CGST Act is being amended to provide powers to Commissioner for granting extension of time limit for filing annual returns [at present, such exemption is given by circulars or notifications without authority].

11. Amnesty Scheme for past dues of excise duty, service tax and other taxes which were payable upto 30-6-2017
A scheme titled 'Sabka Vikas Legacy Dispute Resolution) Scheme, 2019 is proposed to be inserted. The scheme is for resolution and settlement of legacy cases of Central Excise, service tax and other taxes.

GST changes applicable from April 1, 2019

To reducing the compliance burden of small taxpayers and to bring certainty in various ambiguous matters, GST Council in the 32nd meeting, held on 10th January, 2019, had taken various key decisions. 

There are 7 important changes effective from April 1, 2019. This article gives insight of notifications and circulars issued on March 7, 2019 by the CBIC.

Read more

Applicability of GST on Charitable Trust or NGO, Colleges and Universities

Read: https://drive.google.com/open?id=0B1rRav-P4-8JSjRObkVqd1RNeHc

Source: https://drive.google.com/open?id=0B1rRav-P4-8Jb3FiVHFZbzFubW8

E-WAY BILL

Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees—
(i) in relation to a supply; or
(ii) for reasons other than supply; or
(iii) due to inward supply from an unregistered person,
shall,before commencement of such movement, furnish information relating to the said goods in Part A of FORM GST EWB-01, electronically, on the common portal.

Read more: Notification No.27 /2017 – Central Tax, dated  30th August, 2017

Source: www.cbec.gov.in

Due dates of filing GST returns for the month of July and August, 2017

Form No.	For July 2017	For Aug. 2017	Notification No.
FORM GSTR - 1	1 to 5 September	16 to 20 September	Notification No.18
FORM GSTR - 2	6 to 10 September	21 to 25 September	Notification No.19
FORM GSTR-3	11 to 15 September	26 to 30 September	Notification No.20
FORM GSTR 3B	20th August	20th September	Notification No.21

Details to be mentioned in Form GSTR-3B

In order to address the concerns of small taxpayers who are still maintaining manual records, the GST Council has now proposed a relaxation in return filing for the month of July and August. September onwards, every taxpayer has to strictly follow the regular provisions of filing return on 10th, 15th and 20th of next month i.e. October. Also, there will be no late fee or penalty levied for the initial two months.

As per the revised rules, a new form GSTR-3B will be introduced by the government. Every taxpayer needs to file his return on self-assessment basis for the first two months i.e July and August. These return forms have to be filed by 20th of next month. Simultaneously, the taxpayer has to file the GSTR-1 for the month of July on or before September 5; an extension of 25 days has been extended for the month of July. For the month of August, this extension is limited to a period of 10 days. Once GSTR-1 is filed, GSTR-2 and GSTR-3 will auto-populate with information furnished under GSTR-1. Eventually, this GSTR-3 will be matched against GSTR-3B and any difference will be refunded or needs to be paid as the case may be. However, no penalty or late fees will be charged on the difference.

Form GSTR-3B needs to be filed by a taxable person under GST for submitting the provisional assessment of the tax liability. Provisional assessment of the taxes to be filed under form GSTR-3B is only applicable for the month of July and August. A taxable person has to file the GSTR-3B for the invoices generated in July by 20th August and for the invoices pertaining to the month of August has to be filed by 20th September. Each manufacturer, trader, service provider who is liable to register under GST has to complete a self-assessment of his taxes and has to file form GSTR-3B.

A full detail of the tax under different heads CGST, SGST, UTGST, IGST and cess for the transactions which were taxable due to reverse charge. Tax applicable on following transactions has to be mentioned

1. Sale of goods/ providing services which are not zero rated, nil rated or exempted.
2. Sale of goods/ providing services which are zero rated
3. Sale of nil rated or exempted goods or service provided which are nil rated or exempted.
4. Purchase of goods or services received on which reverse charge is applicable.
5. Sale of products or services provided which are not covered under GST.

Following details are to be mentioned for the sale of goods or providing service to an unregistered dealer, composition taxable person and entities holding UIN like WHO, embassy etc.

1. Name of the place from where the goods were dispatched or from where the service was provided.
2. Total Taxable value* of the goods sold or the services provided.
3. A total of the Integrated goods and service tax (IGST) applicable on the transactions.

* Value of Taxable Supplies = Value of invoices + value of Debit Notes – value of credit notes + value of advances received for which invoices have not been issued in the same month – value of advances adjusted against invoices

Details of ITC Available

A thorough calculation of the ITC available on the import of goods or services and on account of the purchases made from an ISD and purchases on which reverse charge is applicable has to be completed by the taxable person. Net ITC available has to be mentioned after deducting the ITC reversed for example due to the inputs being returned. ITC which is ineligible to be claimed under GST like the ITCon the supply of goods or service by a fitness club or health center.

The total value of the purchase of inputs from a composition taxable person or services received and nil rated or exempted inputs have to be bifurcated separately for intrastate and interstate.

Every taxable person under GST needs to calculate the tax liability under the different heads IGST, CGST, SGST, UTGST, and cess. Details of ITC available under different heads used for paying the tax liability. Any liability under head interest and the late fee has to be shown separately. The amount of tax or cess paid in cash is to be shown separately.

Credit available due to the TDS deducted on acceptance of government contract or TCS collected on being an online aggregator has to be mentioned in the form GSTR-3B. Advance received is to be adjusted while calculating the total taxable value of the goods supplied or services provided and is not required to be shown separately in the form GSTR-3B.

➤Format of GSTR- 3B

Trade notice by CGST and Central Excise Commissionerate Surat

Trade notice by CGST and Central Excise Commissionerate Surat - Proper officers relating to registration and composition levy. Issue relating to  LUT / Bond for exports.
Read more:
https://drive.google.com/open?id=0B1rRav-P4-8JQWNxRG1NLVFxQ0RTSnRmYS1jNjZ5WkFfdzlv

Unregistered Transporter is required to be enrolled under GST

An unregistered transporter shall submit the details regarding his business for enrollment under GST. 

According to Notification 5/2017 – Central Tax, dated 19th June, 2017, the persons who are only 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 under sub-section (3) of section 9 of the said Act as the category of persons exempted from obtaining registration under the aforesaid Act. 

Thus those GTA service providers are exempted from obtaining registration under GST, who are exclusively providing GTA service to specified persons and on those services such specified persons are liable to pay GST on reverse charge basis as per section 9(3) of the Act.

As per Section 35(2), every transporter, irrespective of whether he is a registered person or not, shall maintain records of the consigner, consignee and other relevant details of the goods in such manner as may be prescribed.

If a Transporter is not registered, then he shall submit the details regarding his business electronically on the common portal in FORM GST ENR-01 and upon validation of the details furnished, a unique enrolment number shall be generated and communicated to the said person.

Any person engaged in the business of transporting goods shall maintain records of goods transported, delivered and goods stored in transit by him along with the GSTIN of the registered consigner and consignee for each of his branches.

“Section 35(2) of CGST Act. Every owner or operator of warehouse or godown or any other place used for storage of goods and every transporter, irrespective of whether he is a registered person or not, shall maintain records of the consigner, consignee and other relevant details of the goods in such manner as may be prescribed.”

“Rule 58. Records to be maintained by owner or operator of godown or warehouse and transporters.- (1) Every person required to maintain records and accounts in accordance with the provisions of sub-section (2) of section 35, if not already registered under the Act, shall submit the details regarding his business electronically on the common portal in FORM GST ENR-01, either directly or through a Facilitation Centre notified by the Commissioner and, upon validation of the details furnished, a unique enrolment number shall be generated and communicated to the said person.”

Clarification regarding Letter of Undertaking in place of a bond for export without payment of integrated tax for Exports

As per Rule 96A of the Central Goods & Services Tax Rules, 2017 procedure for refund of integrated tax paid on export of goods or services under bond or Letter of Undertaking has been prescribed. Further, Notification No. 16/2017-Central Tax, dt. 07-07-2017 has notified conditions and safeguards for the registered person who intends to supply goods or services for export without payment of integrated tax, for furnishing a Letter of Undertaking in place of a Bond.

The Central Government vide Circular No. 4/4/2017-GST dt. 07-07-2017 has further clarified the following:

1. The procedure for submission and acceptance of bond has already been prescribed vide Circular No. 2/2/2017-GST dated 4th July 2017.The bond will be furnished on non-judicial stamp paper of the value as applicable in the State in which bond is being furnished.
2. the exporters will furnish a running bond, in case he is required to furnish a bond, in FORM GST RFD -11 as the consignment wise bond would be a significant compliance burden on the exporters. The bond would cover the amount of tax involved in the export based on estimated tax liability as assessed by the exporter himself. The exporter will ensure that the outstanding tax liability on exports is within the bond amount. In case the bond amount is insufficient to cover the tax liability in yet to be completed exports, the exporter will furnish a fresh bond to cover such liability.
3. The jurisdictional Commissioner may decide about the amount of bank guarantee depending upon the track record of the exporter. If Commissioner is satisfied with the track record of an exporter then furnishing of bond without bank guarantee would suffice. In any case the bank guarantee should normally not exceed 15% of the bond amount.
4. LUT will be valid for 12 months. If the exporter fails to comply with the conditions of the LUT he may be asked to furnish a bond. Exports may be allowed under existing LUTs/Bonds till 31st July 2017. Exporters will submit the LUTs/bond in the revised format latest by 31st July 2017.
5. the Bond/LUT will be accepted by the jurisdictional Deputy/Assistant Commissioner having jurisdiction over the principal place of business of the exporter. The exporter is at liberty to furnish the bond/LUT before Central Tax Authority or State Tax Authority till the administrative mechanism for assigning of taxpayers to respective authority is implemented. However, if in a State, the Commissioner of State Tax so directs, by general instruction, to exporter, the Bond/LUT in all cases be accepted by Central tax officer till such time the said administrative mechanism is implemented.
6. Further Circular No. 26/2017 – Customs dated 1st July 2017 has clarified that the existing practice of sealing the container with a bottle seal under Central Excise supervision or otherwise would continue till 01st September 2017. Such sealing will be done under the supervision of the officer having physical jurisdiction and a copy of the sealing report would be forwarded to the concerned Deputy/Assistant Commissioner. These practices would also apply to exports made on or after 1st July 2017.

ONE TAX ONE NATION - Central GST & Integrated GST Acts extended to State of J&K

President Shri. Pranab Mukherjee promulgates Ordinances to extend Central GST & Integrated GST Acts to State of J&K. For copies of the ordinances click the link: https://drive.google.com/open?id=0B1rRav-P4-8JMkZDNWhBeHJFQms

Rates of GST Compensation Cess

https://drive.google.com/open?id=0B1rRav-P4-8JQWJaVDMxRDlqUEE

GST HSN Code

GST HSN Code List in EXCEL:
https://drive.google.com/open?id=0B1rRav-P4-8JdlczYlpILXdvanc

GST HSN Code List in PDF
https://drive.google.com/open?id=0B1rRav-P4-8JbHhEeE0ycXpxbzQ

Relaxation in return filing procedure for first two months of GST implementation

With the objective of ensuring smooth rollout of GST and taking into account the concerns expressed by the trade and industry regarding filing of the returns in GST regime, it has been decided that, for the first two months of GST implementation, the tax would be payable based on a simple return (Form GSTR-3B) containing summary of outward and inward supplies which will be submitted before 20^th of the succeeding month. However, the invoice-wise details in regular GSTR – 1 would have to be filed for the month of July and August, 2017 as per the timelines given below –

Month	GSTR – 3B	GSTR – 1	GSTR – 2 (auto populated from GSTR-1)
July, 2017	20th August	1st – 5th September*	6th – 10th September
August, 2017	20th September	16th – 20th September	21st  – 25th September

* Facility for uploading of outward supplies for July, 2017 will be available from 15^th July, 2017.

No late fees and penalty would be levied for the interim period. This is intended to provide a sense of comfort to the taxpayers and give them an elbow room to attune themselves with the requirements of the changed system. This not only underlines the government’s commitment towards ensuring that all the stakeholders are on board but also provides an opportunity to the taxpayers to be ready for this historic reform.

Records to be maintained by owner or operator of godown or warehouse and transporters

(1) Every person required to maintain records and accounts in accordance with the provisions of sub-section (2) of section 35, if not already registered under the Act, shall submit the details regarding his business electronically on the Common Portal in FORM GST ENR-01, either directly or through a Facilitation Centre notified by the Commissioner and, upon validation of the details furnished, a unique enrolment number shall be generated and communicated to the said person.

(2) The person enrolled under sub-rule (1) as aforesaid in any other State or Union territory shall be deemed to be enrolled in the State or Union territory.

(3) Every person who is enrolled under sub-rule (1) shall, where required, amend the details furnished in FORM GST ENR-01 electronically on the Common Portal either directly or through a Facilitation Centre notified by the Commissioner.

(4) Subject to the provision of rule 1, any person engaged in the business of transporting goods shall maintain records of goods transported, delivered and goods stored in transit by him alongwith GSTIN of the registered consignor and consignee for each of his branches.

(5) Subject to the provision of rule 1, every owner or operator of a warehouse or godown shall maintain books of accounts with respect to the period for which particular goods remain in the warehouse, including the particulars relating to dispatch, movement, receipt, and disposal of such goods.

(6) The owner or the operator of the godown shall store the goods in such manner that they can be identified item wise and owner wise and shall facilitate any physical verification or inspection by the proper officer on demand.

REVISED THRESHOLD LIMIT FOR COMPOSITION LEVY

[As per discussions in the 16th GST Council Meeting held on 11th June, 2017]

Sub section (1) of section 10 read with sub-section (2) of the same section of the Central Goods and Services Tax Act, 2017 [CGST Act] provides that an eligible registered person, whose aggregate turnover in the preceding financial year did not exceed Rs.50 lakh, may opt to pay, in lieu of the tax payable by him, an amount calculated at the rate of:

• 1% of turnover in State or turnover in Union Territory in case of a manufacturer;
• 2.5% of turnover in State or turnover in Union Territory in case of persons engaged in making supplies referred to in Paragraph 6(b) of Schedule II to the CGST Act [6(b) supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration.]; and
• 0.5% of turnover in State or turnover in Union Territory in case of other suppliers.

The said sub-section also provides that the said limit may be increased upto Rs.1 crore on the recommendations of the GST Council.

The GST Council, in its meeting held on 11th June, 2017, has recommended increase in the aforesaid turnover limit for Composition Levy for CGST and SGST purposes from Rs. 50 lakh to Rs.75 lakh in respect of all eligible registered persons, referred to in the aforesaid sub­section. 

However, whether the same increased turnover limit for Composition levy will apply in case of Special Category States or not will be decided in the next GST Council meeting.