TMI BlogRECENT DEVELOPMENTS IN GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... RECENT DEVELOPMENTS IN GST - By: - Dr. Sanjiv Agarwal - Goods and Services Tax - GST - Dated:- 25-6-2020 - - Covid -19 continues to hit India-economically and demographically Total number of cases now are 4,00,000 plus with 13,000 plus casualties ..and the number is rising. In terms of business, of course May is better than April and June will be further good. How long and how deep this will g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o is a tough call. As of now, things do not seem to be in control. India is also getting impacted from non-Covid concerns such as expenditure restraint, liquidity and NPA issues, geo-political tension at border with China and Nepal. Fitch, credit rating agency has reduced India rating from stable to negative (BBB). As per ADB, our economy may contract by 4% or so by Financial Year 2020-21. E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conomy has started showing some signs of recovery though it is a long way to go to restore pre-Covid position. Compared to April, 2020, consumption of fuel, power, fertilizers etc have gone up. Exports are also up. Toll collections and railway freight collection has also improved. Toll collection in May was about 70% of February 20 level. Railway fright improved by over 25% compared to April, 2020 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Even the generation of e-way bills which signifies rolling of economy is a positive sign. GST Council s 40th meeting was held via video conference on 12th June, 2020 providing further relief to small businesses on compliance front. Late fee on returns and interest requirements were relaxed. Also, revocation of surrendered registration shall be allowed. The Council may discuss the issue compe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsation to states in July, 20 meeting. GST collections during April and May are said to be around 45% only of the normal collection of around Rs. one lakh crore per month. The issue of transitional credit is doing a pendulum ride between high courts and Supreme Court. Supreme Court has now stayed the high court ruling on transitional credit to open it till 30th June, 2020 to enable assessees ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to file or revise the return. Advance rulings are becoming worrisome now- be it on directors remuneration, parotha or interest on personal savings. There is an urgent need to apply logical interpretations. Gist of Decisions of 40 th GST Council Meeting held on 12.06.2020 The 40 th GST Council meeting decided to ease compliance burden of businesses by providing relief on late fe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and interest payable on late payments. Following relaxations were recommended in GST Council Meeting for filing of GST Returns: 1. For all those who have no tax liability but have not filed GST returns for tax period July,2017- January, 2020 (prior to COVID-19), there will be no late fee at all. 2. For all those registered persons who have tax liability , but have not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed GST returns, then the maximum late fee for non-filing of GSTR-3B returns for the period July, 2017- January, 2020 has been capped to ₹ 500/- 3. Small taxpayers provided relief by the waiver of late fees and interest if the returns in form GSTR-3B , for the supplies effected in May, June, and July, are furnished by September,2020. 4 . For small taxpayers (aggregate tu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnover up to ₹ 5 crore), the rate of interest for late furnishing of returns beyond specified dates (staggered up to 6 th July, 2020) reduced to 9 percent per annum from 18 percent till 30 th September ,2020. 5. Taxpayers, who could not get their cancelled GST registrations restored in time, can file an application for revocation of cancellation of registration up to 30 th September ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2020. This applies to all cases where registrations have been cancelled till 12 th June, 2020. Verify GSTR Returns through EVC Companies can now verify GSTR-3B and GSTR-1 returns through Electronic Verification Code (EVC) This is allowed only to companies incorporated under the Companies Act, 2013 A registered person registered under the provisions of the Companies Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 2013 shall, during the period from the 21st day of April, 2020 to the 30th day of September, 2020, also be allowed to furnish the return under section 39 in FORM GSTR-3B verified through Electronic Verification Code (EVC). A registered person registered under the provisions of the Companies Act, 2013 shall, during the period from the 27th day of May, 2020 to the 30th day of September, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2020, also be allowed to furnish the details of outward supplies under section 37 in FORM GSTR-1 verified through Electronic Verification Code (EVC). Provisions inserted in Rule 26(1) of CGST Rules, 2017 which is effective retrospectively from 27.05.2020. [Source: Notification No. 48/2020-Central Tax 19.06.2020 ] - - Scholarly articles for knowledge sharing authors experts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
