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Showing posts from November, 2019

GSTR 3A notices to be issued in bulk

GST Update: GSTR 3A notices to be issued in bulk

Facility to issue GSTR-3A notices in bulk to non-filers through email is now available in "View Non-filers (New)" functionality. It is a facility for government to intimate defaulters for non-filing of returns through the issue of notices in bulk

GSTR 3A will be issued by the tax authorities to a person not filing: GSTR-3B (regular dealer)GSTR-4 (Composition dealer)GSTR-5 (Non-resident)GSTR-6 (ISD)GSTR-7 (Person liable to deduct TDS)GSTR-8 (Person liable to collect TCS)GSTR-9 (Annual return)GSTR-10 (Final return).On receiving notice in GSTR-3A Notice, the defaulter has to file the return within 15 days from the date of notice along with penalty and late fees.

Clarification on new 120% restriction

GST Update : Clarification on new 120% restriction

CBIC has issued Circular No. 123/42/2019– GST dated 11th November, 2019 regarding restriction in availment of input tax credit in terms of sub-rule (4) of rule 36 of CGST Rules, 2017.

Highlights of this circular This being a new provision, the restriction is not imposed through the common portal and it is the responsibility of the taxpayer that credit is availed in terms of the said rule. Therefore, the availment of restricted credit in terms of Rule 36(4) of CGST Rules shall be done on a self-assessment basis by the taxpayer.The restriction of availment of ITC is imposed only in respect of those invoices/debit notes, details of which are required to be uploaded by the suppliers under section 37(1) and which have not been uploaded. Therefore, taxpayers may avail full ITC in respect of IGST paid on import, documents issued under RCM, credit received from ISD etc. which are outside the ambit of section 3…

GST applicable on Mobilization advance received.

Recently AAR gave an important ruling dated 19 August 2019 regarding GST leviable on ‘mobilization advance’ as on 01.07.2017 received for works contract services in the case of Siemens Ltd.[2019] 108 460 (AAR- TAMILNADU) which is discussed as below:

Facts of the case Applicant has entered into a contract with Kolkata Metro Rail Corporation ( KMRCL) for 'design, supply, installation, testing and commissioning' of power supply and distribution system, third rail system and SCADA system for entire line and depot of Kolkata East-West Metro Rail Project.According to Contract, applicant received mobilization advance, which was 10% of the original contract value. The lump-sum mobilization amount so received is recoverable as adjustment towards payment due for tax invoices that applicant raises on attaining contract progress milestones.No service tax (Pre-GST regime) was leviable on the mobilisation advance except the portion adju…

Clarification regarding optional filing of annual return

Recently CBIC has issued circular No. 124/43/2019 – GST dated 18th November regarding clarification of optional filing of annual return.

Highlights of the circular: Annual return in FORM GSTR-9/9A has made it optional to furnish the annual return for FY 2017-18 and 2018-19 for those registered persons whose aggregate turnover in a financial year does not exceed two crore rupees.
After the due date of furnishing the annual return for the year 2017-18 and 2018-19, the common portal shall not permit furnishing of FORM GSTR-9A for the said period.
Taxpayer, during the course of reconciliation of his accounts notices any short payment of tax or ineligible availment of input tax credit, he may pay the same through FORM GST DRC-03.

Please click here for clarification.

Cancellation of GST registration justified due to non-furnishing of evidence on movement of goods

AAR gave an important Ruling dated 27th August 2019 regarding the order passed by the competent authority of cancellation of registration of assessee in a case of Om Trading Co. V. Deputy Commissioner of State-tax [2019] 110 378 (Madhya Pradesh) which is discussed as below:                   

Facts of the Case The assessee a dealer located in Gwalior alleged that it had purchased certain ghee from a dealer located in Agra.The Competent Authority having found that the assessee had failed to prove by any forceful documentary evidence that the ghee in question was physically transferred from Agra to Gwalior cancelled the registration of assessee.Observation/ruling HC held that when the impugned order is tested on the anvil of material on record and in absence of any forceful documentary evidence to prove that the ghee in question was physically transferred from Agra to Gwalior, the Court does not find any error in the order rendered b…