GST

 

 REGULATORY UPDATES 

  1. Opting-in for Composition Scheme for Financial year 2021-22

How to opt-in for Composition Scheme:

The eligible registered taxpayers, who want to opt-in for composition scheme for the FY 2021-22, need to file FORM GST CMP-02 application, on or before 31st March, 2021, post login on GST portal.

  1. Classification of Taxpayers

Taxpayers are required to select their business activity only once, as -Manufacturer, wholesaler/Distributor/Retailer, service providers & others post login based on highest turnover amongst them. You can change the same later.

  1. Due dates for filing of Form GSTR-3B from the Tax Period of January, 2021

Government of India, Ministry of Finance (Department of Revenue), CBIC, vide Notification No 82/2020 – Central Tax, dated 10th Nov., 2020, has revised Rule 61 of the Central Goods and Services Tax Rules, 2017, to provide for staggered filing of Form GSTR-3B, for the tax periods from January, 2021, onwards, as under 20th of the following month, 22nd of the following quarter, 24th of the following quarter…for details refer notification. 

  1. Module wise new functionalities deployed on the GST Portal for taxpayers

Various new functionalities are implemented on the GST Portal, from time to time, for GST stakeholders. These functionalities pertain to different modules such as Registration, Returns, Advance Ruling, Payment, Refund and other miscellaneous topics. Various webinars are also conducted as well informational videos prepared on these functionalities and posted on GSTNs dedicated YouTube channel for the benefit of the stakeholders. Refer GSTN portal for details. 

  1. New/Unique series of invoice

As per Rule 46(b) of the CGST Rules, new/unique series of invoices to be raised for FY 2021-22, so that there is no duplication or repetition of invoices with preceding FY 

  1. Notification No. 05/2021- Central Tax dated March 8, 2021the aggregate turnover limit for e-invoicing has been further reduced to INR 50 crore w.e.f. April 01, 2021.

The aggregate turnover will include the turnover of all GSTINs under a single PAN. 

  1. QR Code

The first phase of QR Code for B2C invoices was introduced vide Notification No. 14/2020-Central Tax dated March 21, 2020 w.e.f. October 1, 2020. For registered persons whose aggregate turnover in any financial year, starting from FY 2017-18, exceeds INR 500 crore. 

However, its implementation was deferred till November 30, 2020 vide Notification No. 71/2020- Central Tax dated September 30, 2020. 

Further, vide Notification No. 89/2020- Central Tax dated November 29, 2020, penalty for non-compliance of QR Code provisions was waived off from December 1, 2020 till March 31, 2021 if complied from April 1, 2021. 

Furthermore, CBIC has issued clarifications on applicability of QR Code on B2C invoices for registered persons having aggregate turnover of more than Rs. 500/- Cr w.e.f. April 1, 2021vide Circular No. 146/02/2021-GST dated February 23, 2021. 

Note: Where the supplier needs to show a dynamic QR code available through a digital display, the cross-reference of the payment made through it should be made available. In case of non-compliance, liability to pay penalty may arise on all B2C supply. 

8.HSN code requirements 

Notification No. 12/2017- Central Tax dated June 28, 2017 was amended vide Notification No. 78/2020 – Central Tax, dated October 15, 2020, to mandate compulsorily mentioning of 4/6- digit HSN/SAC Code on supply of goods or services on the tax invoices w.e.f. April 1, 2021: 

Aggregate Turnover in the preceding Financial Year Number of Digits of HSN Code
Up to INR 5 crores for all B2B Supplies  

 

4

More than INR 5 crores for all B2B and B2C Supplies  

 

6

 

Further, 4- digits HSN Code is optional in respect of supplies made to unregistered persons i.e., B2C supplies for a registered person having aggregate turnover upto INR 5 crores in the previous financial year. 

Note: the above changes of mentioning 4/6 Digit HSN/ SAC code, as applicable, are also required to be captured in Table 12 of Form GSTR-1 (i.e., details of outward supplies of goods or services) and therefore, corresponding changes are made in the same in GSTR 1. 

Further, penalty of INR 50,000/- (INR 25,000/- each for CGST and SGST) can be levied for non-mentioning or mentioning wrong HSN/ SAC Code under Section 125 of the CGST Act (i.e., General penalty). 

 

  RECENT JUDICIAL RULINGS ON GST 

 

1.Form GST DRC 07 to be issued for Recovery of Interest, rules Gujarat High Court writ petition filed by M/S Rajkamal Builder Infrastructure Private Limited. 

2.GST Commissioner allows CENVAT Credit of Service Tax paid on Outward Transportation of Finished Goods

After considering all the facts of the case, agreed that if the freight/ insurance was borne by the respondent and the same was included in the assessable value and the sale was for sale, the credit on outward GTA should be admissible to them. Since, all the documentary evidence to prove these facts had not been submitted before the original adjudicating authority, therefore, the matter was remanded back to the original adjudicating authority on the limited issue to verify the factual aspects as discussed above. Further, it also appears that the department has not filed any appeal against the aforesaid CESTAT order,” the CGST Commissioner noted.

 

 

 

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