LATEST NOTIFICATIONS ISSUED UNDER CGST ACT, 2017

[Mr. M. GOVINDARAJAN]

Latest Notifications

The following notifications were issued recently under Central Goods and Services Tax Act, 2017-

• Notification No. 07/2021-Central Tax, dated 27.04,2021;
• Notification No. 08/2021-Central Tax, dated 01.05.2021;
• Notification No. 09/2021-Central Tax, dated 01.05.2021;
• Notification No. 10/2021- Central Tax, dated 01.05.2021;
• Notification No. 11/2021-Central Tax, dated 01.05.2021;
• Notification No. 12/2021-Central Tax, dated 01.05.2021;
• Notification No.13/2021-Central Tax, dated 01.05.2021;
• Notification No. 14/2021-Central Tax, dated 01.05.2021.

Amendment to Rules

Notification No. 07/2021 and Notification No. 13/2021 amended the Rules.  Rule 26 provides the methods of authentication.  Rule 26(1) provides that all applications, including reply, if any, to the notices, returns including the details of outward and inward supplies, appeals or any other document required to be submitted under the provisions of these rules shall be so submitted electronically with digital signature certificate or through e-signature as  or through e-signature as specified under the provisions of the Information Technology Act, 2000 or verified by any other mode of signature or verification as notified by the Board in this behalf or verified by any other mode of signature or verification as notified by the Board in this behalf.  Rule 26(1) has three provisos.  The amendment inserted a new fourth proviso vide Notification No. 07/2021.

The newly inserted fourth proviso provides that  a registered person registered under the provisions of the Companies Act, 2013  shall, during the period from the 27.04.2021 to the 31.05.2021, also be allowed to furnish the return under section 39 in Form GSTR-3B and the details of outward supplies under section 37 in Form GSTR-1 or using invoice furnishing facility, verified through electronic verification code (EVC).

The said amendment came into effect from 27.04.2021.

Rule 36 deals with the documentary requirements and conditions for claiming input tax credit.  Rule 36 (4) provides that input tax credit to be availed by a registered person in respect of invoices or debit notes, the details of which have not been furnished by the suppliers under section 37 (1) in Form GSTR-1 or using the invoice furnishing facility, shall not exceed 5% of the eligible credit available in respect of invoices or debit notes the details of which have been furnished by the suppliers under section 37 (1) in Form GSTR-1 or using the invoice furnishing facility.  Rule 36(1) has one proviso.  The amendment vide Notification No. 13/2021, inserted a second proviso with effect from 01.05.2021.  The newly inserted proviso provides that such condition shall apply cumulatively for the period April and May, 2021 and the return in Form GSTR-3B for the tax period May, 2021 shall be furnished with the cumulative adjustment of input tax credit for the said months in accordance with the condition above.

Rule 60 prescribes the form and manner of ascertaining the details of inward supplies.  Rule 59 (2) provides that the details of invoices furnished by an non-resident taxable person in his return in Form GSTR-5 under rule 63 shall be made available to the recipient of credit in Part A of Form GSTR 2A electronically through the common portal.  Notification No. 13/2021 inserted a proviso to Rule 59(2) with effect from 01.05.2021.  The newly inserted proviso provides that a registered person may furnish such details, for the month of April, 2021, using IFF from the 01.05.2021 till the 28.05.2021.

Lowering of interest rate

Notification No.13/2017-Central Tax, dated 28.06.2017 fixed the rate of interest per annum, for the purposes of the sections 50, 54 and 56.  Notification No. 08/2021-Central Tax, dated 01.05.2021 inserted the following interest rates-

• Taxpayers having an aggregate turnover of more than ₹ 5 crores in the preceding financial year - 9 % for the first 15 days from the due date and 18 % thereafter – for March 2021 and April 2021;
• Taxpayers having an aggregate turnover of up to ₹ 5 crores in the preceding financial year who are liable to furnish the return as specified under section 39 (1) - Nil for the first 15 days from the due date, 9 % for the next 15 days, and 18 % thereafter - for March 2021 and April 2021;
• Taxpayers having an aggregate turnover of up to ₹ 5 crores in the preceding financial year who are liable to furnish the return as specified under proviso to section 39(1)  - Nil for the first 15 days from the due date, 9% for the next 15 days, and 18% thereafter - for March 2021 and April 2021;
• Taxpayers who are liable to furnish the return as specified under section 39(2)  - Nil for the first 15 days from the due date, 9% for the next 15 days, and 18% thereafter – for Quarter ending March, 2021.

The above rates of interest shall be deemed to have come into force with effect from the 18.04.2021.

Waiver of late fee

Notification No. 76/2018 – Central Tax, dated 31.12.2018 seeks to specify the late fee payable for delayed filing of Form GSTR – 3B and fully waive the amount of late fees leviable on account of delayed furnishing of Form GSTR – 3B in specified cases.  The said notification has four provisos.  Vide Notification No. 09/2021-Central Tax, dated 01.05.2021 fourth proviso is inserted.  The newly inserted fourth proviso provides that the amount of late fee payable under section 47 shall stand waived for the period for the following class of registered persons –

• Taxpayers having an aggregate turnover of more than ₹ 5 crores in the preceding financial year – for March, 2021 and April, 2021- late fee is waived for 15 days from the due date of furnishing return;
• Taxpayers having an aggregate turnover of up to ₹ 5 crores in the preceding financial year who are liable to furnish the return as specified under section 39(1) – for March, 2021 and April, 2021- late fee is waived for 30 days from the due date of furnishing return;
• Taxpayers having an aggregate turnover of up to ₹ 5 crores in the preceding financial year who are liable to furnish the return as specified under proviso to section 39(1) - January-March,  2021- late fee is waived for 30 days from the due date of furnishing return.

This notification shall be deemed to have come into force with effect from 20.04.2021.

Extension of due date

Para 3 of the Notification No. 21/2019-Central Tax, dated 23.04.2019 provides that the registered persons, who  opts to pay tax under composite scheme (Section 10) shall furnish for every financial year or, as the case may be, part thereof in Form GSTR-4 of the Central Goods and Services Tax Rules, 2017, on or before the 30^th day of April following the end of such financial year.      This para has one proviso.  Notification No. 10/2021- Central Tax, dated 01.05.2021 inserted second proviso to para 3.  The newly inserted proviso extends the due date up to 31.05.2021 for filing of Form GSTR – 4. This Notification came into effect from 30.04.2021.

Vide Notification No. 11/2021-Central Tax, dated 01.05.2021, the Commissioner, with the approval of the Board, extended the time period up to the 31.05.2021, for furnishing the declaration in Form GST ITC-04, in respect of goods dispatched to a job worker or received from a job worker, during the period from 01.01.2021 to 31.03.2021.  This notification shall be deemed to have come into force with effect from the 25.04.2021.

Vide Notification No. 12/2021-Central Tax, dated 01.05.2021, the Commissioner on the recommendations of the Council, inserted a third proviso in the Notification No. 83/2020-Central Tax, dated 10.11.2020.  The newly inserted third proviso provides that the time limit for furnishing the details of outward supplies in Form GSTR-1 of the said rules for the registered persons required to furnish return under section 39 (1) of the Act, for the tax period April, 2021, shall be extended till the 26^th  day of the month succeeding the said tax period.

Vide Notification No. 14/2021-Central Tax, dated 01.05.2021, in view of the spread of pandemic COVID-19 across many parts of India, the Government, on the recommendations of the Council, notified the following-

• where, any time limit for completion or compliance of any action, by any authority or by any person, has been specified in, or prescribed or notified under the said Act, which falls during the period from 15.04.2021 to 30.5.2021, and where completion or compliance of such action has not been made within such time, then, the time limit for completion or compliance of such action, shall be extended up to the 31.05.2021, including for the purposes of-

• completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval or such other action, by whatever name called, by any authority, commission or tribunal, by whatever name called, under the provisions of the Acts stated above; or
• filing of any appeal, reply or application or furnishing of any report, document, return, statement or such other record, by whatever name called, under the provisions of the Acts stated above.

The above extension shall not be applicable for the compliances of the following provisions-

• Chapter IV – Time and value of supply;
• Section 10 (3) – lapse of option availed by a person under composite scheme;
• Section 25 – Procedure for registration;
• Section 27 –  Special provisions relating to casual taxable person and non resident taxable person;
• Section 31 – Tax Invoice;
• Section 37 –  Furnishing of details of outward supplies;
• Section 47 – Levy of late fee;
• Section 50 – Interest on delayed payment of tax;
• Section 69 – Inspection of goods in movement;
• Section 90 – Liability of partners of firm to pay tax;
• Section 122 – Penalty for certain offences;
• Section 139 – Migration of existing tax payers.
• Section 39 - Furnishing of returns - except sub-section (3), (4) and (5);
• Section 68 in so far as e-way bill is concerned; and

rules made under the provisions specified above.

• in cases where a notice has been issued for rejection of refund claim, in full or in part and where the time limit for issuance of order in terms of the provisions of sub-section (5), read with sub-section (7) of section 54 of the said Act falls during the period from the 15.04.2021 to the 30.05.2021, in such cases the time limit for issuance of the said order shall be extended to fifteen days after the receipt of reply to the notice from the registered person or the 31.052021, whichever is later.

This notification shall come into force with effect from the 15.04.2021.