RECENT DEVELOPMENTS IN GST

[Dr. Sanjiv Agarwal]

The economy has started showing signs of recovery after second wave of Covid-19 which is receding fast. While nothing is predictable on the third wave yet, the economy is slowly returning to normal with most of the curbs been lifted in all parts of the country. While capital expenditure has grown in Q1 this year, there is a decline in revenue expenditure lead by rural expenditure which may impact economic recovery.

In the recent monetary policy review, Reserve Bank of India did not changed the rates but hiked the inflation projection to 5.7% for Financial Year 2022, besides retaining GST growth projection at 9.8%.

GSTN has raised a warning for all non-filers of GST returns that after 15 August, 2021, generation of e-way bills will be blocked which may impact their businesses. Now Form GSTN 9 can be filed in portal. GSTN 9C will now have to be self certified by registered taxpayers instead of certification by professionals (CA/CWAs) for the financial year 2020-21. Many other functionalities have been added on GSTN portal.

The gross GST revenue collected in the month of July 2021 is ₹ 1,16,393 crore of which CGST is ₹ 22,197 crore, SGST is ₹ 28,541 crore, IGST is ₹ 57,864 crore (including ₹ 27,900 crore collected on import of goods) and Cess is ₹ 7,790 crore (including ₹ 815 crore collected on import of goods). The revenues for the month of July 2021 are 33% higher than the GST revenues in the same month last year.

Authority for Advance Rulings keep pronouncing rulings of interest. It has now said that dosa and idli mix are liable to GST @ 18%. Also, hand sanitizers are liable to levy of GST. Another example is that branded, packaged cut fruits in a container with or without preservatives are liable to GST of 5%.  Subway, the sandwich makers after loosing through franchisees have challenged the validity of anti-profiteering provisions in GST law before Delhi High Court. It has raised the issue of constitutional validity of setting up the Authority without prescribing the methodology to determine profiteered amount.

Blocking of E-way bills after 15 August, 2021

• In terms of Rule 138 E (a) and (b) of the CGST Rules, 2017, the E Way Bill generation facility of a person is liable to be restricted, in case the person fails to file their return in Form GSTR-3B / statement in CMP-08, for a consecutive period of two months / Quarters or more.
• The facility of blocking E way bill generation had been temporarily suspended due to pandemic.
• It has now been decided to resume the blocking of EWB generation facility on the EWB portal, for all the taxpayers from 15th August onwards.
• After 15th August 2021, the System will check the status of returns filed in Form GSTR-3B or the statements filed in Form GST CMP-08, and restrict the generation of EWB in case of:
  • Non filing of two or more returns in Form GSTR-3B for the months up to June, 2021 and
  • Non filing of 02 or more statements in Form GST CMP-08 for the quarters up to April to June, 2021.
• It is therefore, advisable to file pending GSTR-3B returns / CMP-08 statement to avail e-way bill generation facility on EWB portal.

(Source: GSTN (//www.gst.gov.in/) dated 04.08.2021)

Creation of Challan without Logging on to GSTN Portal

• GSTN has released procedure for generating challan without logging on to GSTN portal.  Accordingly.
• Visit www.gst.gov.in, go to services, select payment, click on create challan option, enter your GSTN or other ID and click on proceed button.
• Select reasons for challan, enter challan details and select mode of payment –e-payment / over the counter / NEFT / RTGS.
• Select the mode of e-payment and click make ‘payment’ to pay the challan. Challan is generated; Can be down loaded by clicking ‘down load’ button.

(Source:  www.gst.gov.in; manual>create challan (Pre log in))

GSTR-9 for Financial Year 2020-21 on GSTN portal

• Form GSTR-9, Annual Return for the financial year 2020-21 has been made available on GSTN portal for filing.
• The last date for filing GSTN-9 for the Financial Year 2020-21 is 31st December, 2021.
• Nil GSTR-9 can be filed in specified cases, i.e., where registered person has:

•  Not made any outward supply (commonly known as sale);
• Not received any inward supplies (commonly known as purchase) of goods/services;
• No liability of any kind;
• Not claimed any Credit during the Financial Year;
• Not received any order creating demand;
• Not claimed any refund.

• GSTR 9 can be filed online or prepared on offline tool and then uploaded on portal and filed.
• All applicable returns (1, 3B etc) must be filed before filing Form GSTR 9.
• Once filed, Form GSTR 9 can not be revised.
• Where Form GSTR 9C (Reconciliation Statement and Self Certification) is to be filed, same will be enabled on dashboard after filing Form GSTR 9.

(Source:  GSTN)