GST UPDATES

E-invoicing -Exemption to certain class of registered persons & Deferment of its implementation date

The Central Government vide Notification No. 13/2020- Central Tax dated 21st March 2020 has deferred the date of implementation of E-Invoicing to 1st October, 2020 for those registered persons whose aggregate turnover whose aggregate turnover in a financial year exceeds one hundred crore rupees. The said notification has also exempted the following persons from requirement of E-invoicing even if the aggregate turnover exceeds the specified limit:-

• Where the supplier of taxable service is an insurer or a banking company or a financial institution, including a nonbanking financial company

• Where the supplier of taxable service is a goods transport agency supplying services in relation to transportation of goods by road in a goods carriage.

• Where the supplier of taxable service is supplying passenger transportation service

• Where the supplier of taxable service is a registered person supplying services by way of admission to exhibition of cinematograph films in multiplex screens.

[Notification No. 13/2020- Central Tax dated 21st March 2020]

QR code –Exemption to certain class of registered persons & Deferment of its implementation date 

The Central Government vide Notification No. 14/2020- Central Tax dated 21st March 2020 has deferred the date of implementation of Dynamic Quick Response (QR) code to 1st October, 2020 for those registered persons whose aggregate turnover in a financial year exceeds five hundred crore rupees. The said notification has also exempted the following persons from requirement of QR Code even if the aggregate turnover exceeds the specified limit:-

• Where the supplier of taxable service is an insurer or a banking company or a financial institution, including a non banking financial company

• Where the supplier of taxable service is a goods transport agency supplying services in relation to transportation of goods by road in a goods carriage.

• Where the supplier of taxable service is supplying passenger transportation service

• Where the supplier of taxable service is a registered person supplying services by way of admission to exhibition of cinematograph films in multiplex screens. [Notification No. 14/2020- Central Tax dated 21st March 2020]

Waiver from filing GSTR-1 for 2019-20 for specified taxpayer

The Central Government vide Notification No. 12/2020- Central Tax dated 21st March 2020 has exempted those registered persons from filing GSTR-1 for 2019-20 who could not opt for availing the option of special composition scheme under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019 by filing FORM CMP-02 & have furnished a return in FORM GSTR3B instead of furnishing the statement containing the details of payment of self-assessed tax in FORM GST CMP-08 under the Central Goods and Services Tax Rules, 2017. [Notification No. 12/2020- Central Tax dated 21st March 2020]

Exemption of Foreign Airlines from furnishing reconciliation Statement in FORM GSTR-9C

The Central Government vide Notification No.09/2020-Central Tax, dated 16th March, 2020 has notified the foreign company which is an airlines company covered under the notification issued under sub-section (1) of section 381 of the Companies Act, 2013 (18 of 2013) and who have complied with the subrule (2) of rule 4 of the Companies (Registration of Foreign Companies) Rules, 2014 as theclass of registered persons who shall follow the special procedure as mentioned below :- Special procedure to be followed:-

• Exemption from furnishing GSTR-9C:- The said persons shall not be required to furnish reconciliation statement in FORM GSTR-9C to the Central Goods and Services Tax Rules, 2017 under subsection (2) of section 44 of the said Act read with sub-rule (3) of rule 80 of the said rules:

• Requirement to submit the Receipts & Payment statement of Indian Business Operations:- Provided that a statement of receipts and payments for the financial year in respect of its Indian Business operations, duly authenticated by a practicing Chartered Accountant in India or a firm or a Limited Liability Partnership of practicing Chartered Accountants in India is submitted for each GSTIN by the 30th September of the year succeeding the financial year. [Notification No.09/2020-Central Tax, dated 16th March, 2020]

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

A. How to opt-in Composition Scheme:

i. The application for opting-in composition scheme for the financial year, 2020-21 has been made available on GST Portal.

ii. 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.

iii. 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 31st March, 2020 on common portal.

iv. 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.

v. Once CMP-02 application is filed, the composition scheme shall be available to the taxpayer w.e.f. 1st April 2020.

vi. 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.

vii. For more information taxpayers may consult usermanual available at GST Portal. Following links may also be used for opening user manual.

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: Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand:

• The normal taxpayers supplying services and/or mixed supplies having aggregate turnover of last financial year below Rs. 50 lakhs.

D. Taxpayers, who are not eligible for opting in composition scheme:

i. Suppliers of the goods/services who are not liable to be taxed under GST,

ii. Inter-State outward suppliers of goods/services,

iii. The taxpayers supplying through e-commerce operators, who are required to collect tax under section 52,

iv. 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

v. A Casual taxpayer,

vi. A Non-Resident Foreign Taxpayer,

vii. A person registered as Input Service Distributor (ISD),

viii. A person registered as TDS Deductor /Tax Collector,

[source: gst.gov.in – 18th February, 2020] LUT obtained for FY 2019-2020 will expire on 31.3.2020. Those who have zero-rated supply to file LUT for FY 2020- 2021.

[Source : gst.gov.in ]