GST Due Date Update – Apr 2020

In this post, we will talk about the recent GST due date update – April 2020.

NEW UPDATE:
CBIC notified that GST e-invoicing for B2B transactions is mandatory for any business whose turnover exceeds Rs 100 crore from January 1, 2021. The limit set earlier was only for turnover above Rs 500 crore.

We will cover the following:

• GST Return due dates
• Other COVID related changes
• Aadhar authentication for registration
• Refund related changes
• GST Compliance for Insolvency Professionals under Insolvency & Bankruptcy Code
• Annual Returns & GST Audit
• Relief given to the composition suppliers to file GSTR 1
• E-invoice

Let us get started

GST Return due dates

• GSTR-3B – Due date is not extended. But some concessions on interest is given and the late fee is waived off as follows:
• GSTR-3B for turnover > 5crores

Late fee waived off till 24-Jun-20. Normal late fee from original due date if filed after 24-Jun-20

• GSTR-3B for turnover between 1.5crore – 5 crores

Late fee waived off if filed by 29-Jun-20/ 30-Jun-20, else normal late fee from original due date if filed after.

• GSTR-3B for turnover between <1.5 crore

Late fee waived off if filed by 30-Jun-20/ 3-Jul, 6-Jul-20, else normal late fee from original due date if filed after.

• GSTR-3B for May 2020

No waiver for late fee or interest

• GSTR-1 – Due date not extended. But late fee is waived off as follows:

• Composition Tax payers
  • CMP-08 – For the quarter end 31st Mar 2020: due date extended from 18th April to 7th July, 2020
  • GSTR-4 – For FY 2019-20 due date extended from 24th April to 15th July, 2020

Notification No 29/2020 CT to 36/2020 CT dated 3rd April 2020.

Other Covid Related changes

• GSTR 2A reconciliation and corresponding availability of up to 10% of eligible Input Tax credits of what is reflected in GSTR-2A to be carried out on a cumulative basis from February 2020 to August 2020 (for 7 months) and cumulative adjustment to be given effect in September GSTR 3B.
• E-way bill validity lapsing between 20th March 2020 to 15th April 2020 – Validity deemed to be extended to 30th April 2020.
• Any communication like notice, order etc. to be issued by any authority between 20th March to 29th June 2020 shall stand extended to  30th June 2020.

(Notification no 35/2020 CT dated 3rd April 2020)

Aadhar authentication for registration

• All registered persons shall undergo aadhar authentication
• All persons shall undergo aadhar authentication before registration wef 1st April 2020
• The following class of persons are required to get aadhar authentication
  • Individual;
  • Authorised signatory of all types
  • Managing and Authorised partner; and
  • Karta of Hindu undivided family
• Aadhar authentication shall not apply to a person who is not a  citizen of India
• If Aadhar authentication is not done then
  • The person shall be deemed to be never registered or
  • the registration shall be granted only after physical verification of the principle place of business in the presence of the said person

(Notification No 17/2020, 18/2020, and 19/2020 CT dated 23rd March 2020)

Refund related changes

• Clubbing of tax periods across different financial years is made possible in the GST portal since there is no specific restriction provided under the law.
• Refund of accumulated input tax credit (ITC) on account of reduction in GST Rate is not available for traders. [ There is no restriction under Section 54(3). The circular putting such restriction may not be in line with law.
• Any refund of tax paid on supplies other than zero rated supplies and deemed exports will now be admissible proportionately in the respective original mode of payment proportionately i.e.,
  • Where the tax to be refunded  has been paid by electronic cash ledger, the refund to be paid in cash.
  • Where the tax to be refunded has been paid by electronic credit ledger,        refund to be made by recrediting electronic credit ledger.
  • Such amount,shall be accordingly paid by issuance of order in FORM GST RFD-06 for amount refundable in cash and FORM GST PMT -O3 to re-credit the amount attributable to credit as ITC in the electronic credit ledger.

[Exception zero rated and deemed export is mentioned.However, exception of inverted duty structure is not mentioned,which may not be intention of the circular]

• The refund of accumulated ITC shall be restricted to the ITC as per those invoices, the detailed of which are uploaded by the supplier in FORM GSTR 2A of the applicant

[This is going beyond the legal provisions of allowing eligible ITC up to 10% beyond what appears in GSTR 2A.The circular can be challenged to that extent.

• HSN/SAC CODE,to the extent available in the invoice.to be mentioned in the annexure B having details of inward supplies submitted with the refund application to distinguish between capital goods and input services.

(Notification number 16/2020-Central Tax dated 23rd March 2020,circular number 135/05/20202-GST)

GST Compliance for Insolvency Professionals under Insolvency and Bankruptcy code

• IRP/RP, with effect from the date of appointment be treated as a distinct person of the corporate debtor
• Registration has to be made for each state in which the corporate debtor was earlier registered within 30 days of appointment
• Person after obtaining the registration shall file the first return under section 40 of the act
• ITC shall be claimed on the invoices which have the GSTIN of the corporate debtors.
  • Purchase Invoices would bear the GSTIN of the first registration
  • In the First return alone second GSTIN can take credit of those invoices
  • For the subsequent returns, second registration cannot avail the credit on the invoices which bear the GSTIN of the first registration
  • Provisions of Rule 36(4) i.e. GSTR 2A matching will not be applicable in the first return
• Illustration:

• First return to be filed: GSTR 1 – 11th May 2020; GSTR 3B – 20th May 2020
• Transaction to be covered in first Return:
  • All Sales from 1st Jan 2020 to 30th April 2020
  • Input Tax credit from 1st Jan

(Notification No.11/2020 – CT dated 21st March 2020)

Annual Returns & GST Audit

• Annual Return (GSTR 9) due date for FY 2018-19 extended to 30th June 2020. Mandatory for aggregate turnover over Rs. 2 crores.
• Annual Audit (GSTR-9C) for FY 2018-19 made optional for turnover less than Rs. 5crores

(Notification No. 15/2020 – CT dated 23rd March 2020)

Relief given to the composition suppliers to file GSTR1

Relief given to the persons not to file GSTR 1 or GST CMP 08 who have already file GSTR 3B instead of GST CMP-08 describing the details of the outward supplies for FY 2019-20.

(Notification No. 12/2020 – CT  dated 21st March 2020)

E-invoice

• Requirement for e-invoice shall be mandated to those with aggregate turnover exceeding Rs. 100 crores in a financial year wef 1st Oct 2020
• Dynamic QR code to be brought into effect from 1st Oct 2020

(Notification No. 13/2020, 14/2020 – CT dated 21st March 2020)