RECENT DEVELOPMENTS IN GST

[Dr. Sanjiv Agarwal]

Recently IMF has cautioned India on economic slowdown stating that India is in the midst of a significant economic slowdown calling for urgent steps to check the slowdown and continuing with fiscal consolidation. The policy reforms suggested are ongoing cleaning up of bank’s balance sheets, strengthening of bank’s governance, regulatory oversight of NBFCs, monetary easing, GST related reforms, further ease of doing business, IBC  related reforms, expanding tax base and overall macro-economic management.

The Parliamentary Standing Committee on Finance has asked the Centre to address the issue of dwindling goods and services tax (GST) collections, which the Finance Ministry had explained as reason for delay in the compensation to the states. It has also asked the Government to prevent misuse of input tax credit (ITC) and take measures for increasing GST compliance.

5. Clarifications on Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019

S.No	Issue	Clarification
	Adjustment of the amount paid after the issuance of SCN but before adjudication	Such deposits are to be deducted/adjusted when issuing the statement indicating the amount payable by the declarant
	Adjustment of deposits made during enquiry, investigation or audit etc made ‘under protest’	Such amount needs to be adjusted for determining final amount payable
	Refund in case of excess deposit in any case	There is no question of refund of any excess deposit under scheme.
	Relevant date in cases where the facts of a case may change subsequently	Eligibility to be determined as on June 30, 2019
	Separate or combined declaration w.r.t. different paras of audit report	At the option of declarant
	If proprietor name written instead of Firm	SVLDRS-1 can be processed with the name of proprietor as declarant.
	Last day of the prescribed period in the Scheme	Since, June 30, 2019 was a public holiday thus, the relevant date shall be considered as July 1, 2019 instead of June 30, 2019
	Cases where during subsequent investigation, it is discovered that the taxpayer has declared and paid lesser duty in the returns filed, therefore on conclusion of investigation etc. a SCN is issued demanding the differential duty. Will the discharge certificate be considered conclusive under Section 129 of the Scheme?	Conclusiveness of discharge certificate- The term ‘matter’ under Section 129 of the Scheme means a case for which the taxpayer intends to file a declaration under the Scheme. In the instant case, a ‘return filed but duty not paid’ is separate matter and the SCN issued for ‘differential amount’ is a separate matter.
	Persons without pan not able to file SVLDRS	Mandatory requirement of PAN waived in specified cases i.e., PAN is not mandatory in such cases, the designated committee may waive such requirement in case of any other similar cases, based on facts.
	SCN were issued on or after July 1, 2019 and the same are also not covered under Audit	Such cases become eligible under ‘arrears’ category depending on the fulfilment of the other conditions such appeal period being over or appeal having attained finality or the person giving an under taking that he will not file an appeal in the matter. It is desirable that such cases shall also be given opportunity to avail the benefit of the Scheme. Hence, field formations were asked to take stock of such cases and complete the on-going adjudication proceedings expeditiously following the due process.

(Source : Circular No. 1074/07/2019-CX dated 12.12.2019)

5. No extension of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019

CBIC has clarified that Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 shall not be extended beyond 31st December , 2019. This is the last opportunity for all the potential declarants to avail the benefit of the scheme and finalize their pending cases by paying concessional amounts on or before 31^st December, 2019.

(Source:  F. No. 267/78/2019/CX-8-Pt. III dated 12.12.2019)

5. Following new Notifications has been issued on 13.12.2019

• Amendment in CGST Rules

• Rule 48 amended to provide for e-invoice by class of registered persons on common portal.
• As per rule 48(4) of CGST Rules, 2017 a person having aggregate turnover exceeding ₹ 100 crores in a financial year shall prepare invoice by including the particulars of GST INV-01 after obtaining an Invoice Reference Number by uploading information on Common Goods and Services Tax Electronic Portal in such manner and subject to such conditions and restrictions as may be notified. (Applicable w.e.f 01.04.2020)

(Source: Notification No. 68/2019-CT dated 13.12.2019)

• Common portals for e-invoicing notified

• Following websites are notified vide Notification No. 69/2019-CT dated 13.12.2019 w.e.f 01.01.2020, as the Common Goods and Services Tax Electronic Portals notified for the purpose of preparation of the invoice:

(i) www.einvoice1.gst.gov.in;

(ii) www.einvoice2.gst.gov.in;

(iii)www.einvoice3.gst.gov.in;

(iv) www.einvoice4.gst.gov.in;

(v) www.einvoice5.gst.gov.in;

(vi) www.einvoice6.gst.gov.in;

(vii) www.einvoice7.gst.gov.in;

(viii) www.einvoice8.gst.gov.in;

(ix) www.einvoice9.gst.gov.in;

(x) www.einvoice10.gst.gov.in.

• • Every invoice issued by the said person in any manner other than the manner specified in rule 48(4) shall not be treated as an invoice and also rule 48(1) & rule 48(2) shall not be applicable to aforementioned invoice. (Applicable w.e.f 01.04.2020)

 (Source: Notification No. 69/2019-CT dated 13.12.2019)

• Registered person whose aggregate turnover exceeds ₹ 100 crore to prepare e-invoice w.e.f. 01.04.2020.

(Source: Notification No. 70/2019-CT dated 13.12.2019)

• E-invoices to come into force w.e.f. 14.04.2020

 (Source: Notification No. 71/2019-CT dated 13.12.2019)

• Registered persons with aggregate turnover exceeds ₹ 500 due to use quick response code (Q R Code) w.e.f. 1.4.2020

Provision	Applicable to
Invoice should contain a Quick Response(QR) Code (supplies made to unregistered person i.e. B2C invoice)	Registered person having aggregate turnover in a financial year exceeding ₹ 500 crores
If Dynamic QR code made available through a digital display then such B2C invoice issued containing the cross reference of payment using a Dynamic QR code, shall be deemed to be having QR code

 (Source: Notification No. 72/2019-CT dated 13.12.2019)

5. Important GST Council decisions taken on 18.12.2019

• Input tax credit will be restricted to 10% (as against 20%) if invoices are not uploaded
• Penalty for non-filing of GSTR-1 since July, 2017 to relaxed.
• Late fee for non-filing of GSTR-1 from July, 2017 to November, 2019 to be waived if now filed by 10^th January, 2020.
• GST on long term lease on industrial plots to facilitate industrial parks exempt
• Uniform GST rate on lotteries @ 28% w.e.f. 1^st March, 2020
• GST rate on specified non-women bags and sacks increased from 18% to 12%
• E-way bill for taxpayers who have not filed GSTR-1 for two tax periods shall be blocked 
• Most of the changes likely to be effective from 01.01.2020.
• Grievance Redressal Committee to be set up at Zonal / State level with both CGST and SGST officers and other stakeholders.
• GST Revenue trend analysis and resolve for expeditious implementation of IT and other initiatives.
• Due date for annual return in Form GSTR-9 and reconciliation Statement  inform GSTR-9C for FY 2017-18 extended from 31.12.2019 to 31.01.2020.
• Standard Operating Procedure (SOP) to be issued for action to be taken against GSTR-3B non filers.
• Presentation on revenue, GST rate structure and compensation needs of States made and discussed.

(Source:  MOF Press Release dated 18.12.2019)

5. Generation of DIN by CBIC Officers

• Document Identification Number (DIN) to be mandatorily used by CBIC officers in all communication to taxpayers and other concerned persons.
• Electronic generation and quoting of DIN shall be done in respect of all communications (including e-mails) sent to tax payers and other concerned persons by any office of CBIC across the country w.e.f. 24.12.2019.
• The online digital platform/facility already available on the DDM's online portal "cbicddm.gov.in" for electronic generation of DIN has been suitably enhanced to enable electronic generation of DIN in respect of all forms of communication (including e-mails) sent to tax payers and other concerned persons.
• Electronic generation of DIN's would create a digital directory for maintaining a proper audit trail of communications sent to tax payers and other concerned persons as well as provide the recipient of such communication a digital facility to ascertain the genuineness of the communication.
• Any specified communication* which does not bear the electronically generated DIN and is not covered by the exceptions mentioned in paragraph 3 of Circular No. 122/41/2019-GST dated 05.11.2019, shall be treated as invalid and shall be deemed to have never been issued.

               *Search authorisations, summons, arrest memos, inspection notices etc.

(Source:  Circular No. 128/47/2019-GST dated 23.12.2019)

5. SOP for non-filers of GST returns

• CBIC has issued Standard Operating Procedure (SOP) in case of non filing of GST returns u/s 39, 44 or 45 of CGST Act, 2017
• No separate notice is required to be issued for best judgment assessment u/s 62 and in case of failure to file return within 15 days of issuance of FORM GSTR-3A, best judgment assessment in FORM ASMT-13 can be issued without any further communication.
• Prescribed guidelines* to be followed to ensure uniformity
• Commissioner may in deserving cases, resort to provisional attachment to protect revenue.
• Action can also be initiated for cancellation of registration where return is not furnished for the period as per section 29 of CGST Act.

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