CS Professional:Advanced Tax Laws [Ch-4 Procedural Compliances]

for table of all the forms involved,click on the below link-

https://docs.google.com/document 

REGISTRATIONS 

PERSONS LIABLE FOR REGISTRATION 

Section 22 of CGST act: every supplier is liable to be registered other than special category states [Article 279A (4)(g)] making goods taxable supply,if aggregated turnover>40 lakhs (Special category states/services>10-20 lakhs) except:

• person required to be regstd. under Section 24
• making the following taxables:
• ice cream/edible ice under tariff 21050000
• pan masala tariff 21069020
• tobacco and mft. tobacco substitutes
• intra-state supplies in Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand
• voluntary registration under section 25(3)/persons who continue registration.

Section 2(05): Agent

Section 2(06): Aggregate Turnover

Section 2(71): Location of services supplier

Section 2(84): Person

Section 2(85): place of business

IMP case law: In Re : Anil Kumar Agrawal, 2020 (36) G.S.T.L. 596 (A.A.R. - GST - Kar.)

where registration liability separates for states and pay GST under S. 22(1). multiple business places granted registration S. 25(2). NO PAN-INDIA REGISTRATION

S. 22(2) license under existing law liable to be regstd. w.e.f. from "appointed day".

RULE 24 OF CGST RULES: MIGRATION OF PERSONS UNDER EXISTING LAW 

1. other than TDS/ISD/PAN under income tax act shall enroll on the common portal (gst common portal).
• granted provisional registration per PAN in REG-25
2. submit app in REG-26 within 3 months/commissioner provided extension.
• if complete info,registration granted in REG-06
3. incorrect/incomplete/unfurnished info, proper officer to serve a Show Cause Notice (SCN) in REG-27 and cancel by order in REG-28.
• SCN withdrawn by order under REG-20 if no case exists on hearing.
• certificate within 15 days of correct info,no notice then deemed granted.
4. cancellation application in REG-29 if not liable

Section 22(3):business transfer on succession as going concern liable to registered

Section 22(4):transfer due to scheme/arrangement of HC/Tribunal order liable to be regstd.

RULE 11 OF CGST RULES: SEPERATE REGISTRATION FOR MULTIPLE PLACES 

granted separate registrations in respect of each such place subject to:

1. more than one place
2. not pay tax under Section 10 for any place, if 1 ineligible then all ineligible.
3. all separately regstd. and  issue invoice/supply bill
4. separate application in REG-01 and rules 9/10 apply.

PERSONS NOT LIABLE FOR REGISTRATION  (Section 23) 

Section 23(1)

• engaged exclusively in supply not taxable/wholly exempt
• agriculturist extent of supplying produce of land cultivation
• CASE LAW:AUTHORITY FOR ADVANCE RULINGS, KOLKATA, Joint Plant Committee, In re. CASE NO. 02 OF 2018, March 21,2018 

COMPULSORY REGISTRATION 

Section 24:notwithstanding S.22(1) following to register:

1. inter-state supply
2. casual taxable persons
3. paying tax under reverse charge
4. paying tax under Section 9(5)
5. non-resident taxables making taxable supply
6. deducting tax under S.51
7. supply on behalf of others as agent or otherwise
8. Input Service Distributors (ISDs)
9. supplying through e-commerce operator (ECO) collecting tax under S. 52
10. supplying OIDAR
11. additionally govt. may notify the council's recommendation

CASE LAW: IN RE : HABUFA MEUBELEN B.V. 2018 (14) G.S.T.L. 596 (A.A.R. - GST)

REGISTRATION PROCEDURE (Section 25) 

1. liable to be regstd. under S. 22/24 apply in every state/UT within 30 days of being liable.
• casual taxable/NR taxables apply at least 5 days prior to business commencement.
• SEZ/SEZ DEVELOPER units to have separate registration
2. multiple places=separate registration may be granted and treated as distinct persons.
3. voluntary registration equally applied
4. distinct registrations inside a state/UT treated as distinct
5. PAN holders/equivalent for TDS/TCS eligible
6. undergo authentication/aadhar proof/alternate and viable ID processes furnished as prescribed or else registration deemed invalid.
7. eligibility depending upon identification even for NR taxables
8. if a person fails to obtain registration,the proper officer may register as prescribed.
9. notwithstanding S.25(1),
• specialised agency of UNO/MFI/consulat/foreign embassy
• other classes notified by commissioner granted a Unique Id No. for prescribed purposes. [Rule 17]
10. UIN granted/rejected after due verification
11. certificate of registration issued
12. registration/UIN deemed granted after time in sub-section 10 above.

RULE 08 OF CGST RULES: REGISTRATION  APPLICATION

1. other than NR taxables,deducting tax under S.51 or collecting under S.52 and a person supplying OIDAR from outside India to a non-taxable recipient in S.14 of the IGST act liable to register under S.25(1) and a person seeking applications under S.25(3) shall declare particulars in PART-A OF GST-REG-01.
• separate application for ISDs
2. PAN/no./e-mail validated through OTP
3. on successful verification, Temporary Reference No. generated and comm. to the applicant.
4. using reference no. electronically submit Part-B OF GST-REG-01 duly signed/verified.
• if a person opts to undergo aadhar verification, date of submission= authentication date/15 days from submitting Part-B, whichever EARLIER.
• Biometric-based Aadhaar authentication [Sub-Rule 4A].
5. acknowledgement in GST-REG-02
6. The applicant is casual taxable given TRN for advance deposit under S.27 and acknowledgement issued afterwards.

RULE 09 OF CGST RULES: REGISTRATION  APPLICATION VERIFICATION/APPROVAL 

1. f/w to the proper officer for approval within 7 days of submission
• if a person opting for authentication fails to do so,physical verification for registration,
• by proper officers with approval of the commissioner authorized officer within 30 days of app submission.
2. app deficient/requires clarification, notice issued in GST REG-03 within 7 working days from app submission and applicant furnishes clarification,info or docs in GST reg-04 within 7 days of notice receipt.
3. proper officer satisfied with clarification,info or doc,may approve registration within 7 working days of reply received.
4. if no reply furnished/officer dissatisfied, with written reasons, reject app and inform applicant in GST REG-05.
5. if the officer fails to take action within the timeline specified,app is deemed approved.

RULE 10 OF CGST RULES: REGISTRATION  CERTIFICATE 

1. subject to S. 25(12) where app approved under Rule 9, registration certificate in GST REG-06 showing principal and additional places and GSTIN assigned subject to nomenclature.
2. registration effective from date becoming liable if app submitted within 30 days of being liable.
3. if the app is submitted after 30 days of liability, effective date=registration granted date.
4. every certificate duly signed/verified
5. applicant communicated registration no./certificate within 3 days of expiry of Rule 9(5).

Rule 10A : Bank account details within 45 days of registration/return due date, whichever EARLIER.
Rule 25 : physical verification and report in GST REG-30 within 15 days of verification.

DEEMED REGISTRATION (Section 26) 

• grant of registration/UIN deemed registration,provided app not rejected within time under S.25(10).
• rejection of above deemed rejection of app

CASUAL/NR TAXABLES (Section 27) 

• registration certificate valid for the period specified in app/90 days from registration,whichever EARLIER.
• A proper officer may have sufficient cause to extend 90 days by a further 90 days maximum.
• @ app submission,make advance deposit=estimated tax liability
• extension, additional advance paid
• credited to e-cash ledger and utilised under S.49
• S.2(20): casual taxable person

RULE 12 OF CGST RULES: REGISTRATION  TO  S.51/52 

1. TDS in S.51/TCS in S.52 submit app in GST REG-07
• PART-A if no physical presence in said state/UT
2. GST REG-06 within 3 days of submission
3. if 51/52 is no longer applicable,an officer may cancel registration [Rule 22]  and communicate in GST REG-08.

RULE 13 OF CGST RULES: REGISTRATION  TO NR TAXABLE 

1. electronically submit self-attested passport copy/TIN/UIN identified by govt./PAN,if available in GST REG-09 at least 5 days prior to business commencement.
2. given a TRN for making advance deposit and acknowledgement
3. Rule 9,10 apply mutatis mutandis
4. app duly signed/verified by authorised signatory being Indian resident or having valid PAN.

• Rule 14 OIDAR registration: e-app submission in GST REG-10 and registration granted in GST REG-06.

RULE 15 OF CGST RULES: EXTENSIONS TO NR TAXABLE 

• extend registration=GST REG-11
• app acknowledged on payment of S.27(2)

RULE 16 OF CGST RULES: REGISTRATION  SUO-MOTO 

• pursuant to survey,enquiry,inspection,search or other proceedings,if a person is liable to be regstd. fails to apply,proper officers may register temporarily and issue order GST REG-12.
• effective from order grating registration
• temp registration granted shall within 90 days of grant submit an app for registration in Rule 8/12.
• if appeal filed against grant,app submission within 30 days of order upholding liability.
• Rule 9/10 mutatis mutandis apply

REGISTRATION AMENDMENT (Section 28) 

1. inform the proper officer about changes @ registration or subsequently
2. officers may approve/reject amendments within the prescribed period after giving the opportunity of being heard.
3. rejection/approval under SGST/UTGST acts deemed cancellation here.

RULE 18 OF CGST RULES: REGISTRATION  CERTIFICATE/GSTIN  DISPLAYED ON SIGN BOARD @ ENTRY/PROMINENT LOCATION

RULE 19 OF CGST RULES: REGISTRATION  AMENDMENT 

change in GST REG-01/07/09/10/UINs in 13 shall within 15 days of change,submit app,duly signed/verified in GST REG-14 along with requisite docs.

• provided that change of (i) legal name of business (app in GST REG-14); (ii) address of the principal place of business or any additional place(s)(iii) addition, deletion or retirement of partners or directors, Karta, Managing Committee, Board of Trustees, CEO or equivalent, responsible for the day to day affairs which does not warrant cancellation under S.29,officer may verify & approve amendment within 15 days of app receipt.
• change of state/UT applicable to all registrations
• change in constitution/PAN, apply for fresh registration in GST REG-01
• change in no./e-mail of authorised signatory verified online
• particulars not amended earlier than submission of REG-14 except with commissioner's orders with written reasons.
• (SCN) officer opines that amendment unwarranted or docs incomplete/incorrect,may within 15 days of receipt of REG-14,serve notice in REG-03 to show cause within 7 working days of notice service.
• reply in GST REG-04 within 7 working days (reply)
• reply unsatisfactory/absent, pass order in REG-05 (rejection order)
• if the proper officer fails to act; certificate SHALL stands amended
• within 15 days from app submission
• within 7 days of reply

REGISTRATION  CANCELLATION/SUSPENSION (Section 29) 

1. proper officer suo moto or app by regstd. person/legal heirs cancel as prescribed where:
• business discontinued/transferred fully
• change in business constitution
• taxable no longer liable  to be regstd.under S.22/24/ opts out of voluntary registration.
• registration may also be suspended by the proper officer during ongoing cancellation proceedings.
2. cancellation from such a date including any retro date where:
• contravention of provisions
• paying tax under S.10 not furnished returns for 3 consecutive periods
• regstd. person other than above didn't furnish returns continuously for 6 months.
• voluntary regstd. not commenced business within 6 months from registration.
• registration fraudulently, misstatement or facts suppression
3. cancellation won't affect obligatory  and legal duty/tax liability
4. cancellation under SGST/UTGST=cancellation here
5. pay worth ITC/output tax immediately preceding cancellation,whichever HIGHER by debit in e-credit/cash ledger.
• ITC of capital goods/P&M reduced by prescribed %points/S.15, whichever HIGHER.
6. above amt. calculated as prescribed

RULE 20 OF CGST RULES: REGISTRATION  CANCELLATION/SUSPENSION APP 

other than to whom registration granted under Rule 12/UIN granted under Rule 17 seeking cancellation submit GST REG-16 including input,liability,payment details and relevant docs within 30 days of event warranting cancellation/suspension.

RULE 21 OF CGST RULES: REGISTRATION  CANCELLED CASES 

• doesn't conduct business from declared place
• issues invoice/bills without supply violating provisions
• violates S.171/Rule 10A
• avails ITC violating S.16
• furnishes o/w supplies in GSTR-1 under S.37 for multiple tax periods in excess of o/w in valid return under S.39
• violates Rule 86B

RULE 21A OF CGST RULES: REGISTRATION  SUSPENSION 

1. deemed suspended from app submission/date from which cancellation sought,whichever LATER pending cancellation proceedings under Rule 22.
2. The proper officer believes registration is liable to be cancelled under S.29/rule 21,may suspend from a date determined by him.
3. on matching,anomalies arise, suspension intimated in GST REG-31 or email asking explanations within 30 days as to why registration shouldn't be cancelled (SCN).
4. suspended registration can't make any taxable supply,doesn't have to furnish returns, no refunds under S.54.
5. suspension deemed revoked on completion of proceedings if not already revoked by the officer.
6. order affecting revocation, S.40/31(3)(a) apply on supplies made.

clarification: https://www.cbic-gst.gov.in/pdf/Circular_Refund_145_12_2020.pdf

RULE 22 OF CGST RULES: REGISTRATION  CANCELLATION 

• (SCN) proper officer believes cancellation warranted, issue notice in GST REG-17 to show cause within 7 working days from notice service.
• (reply) in GST REG-18
• (order) in GST REG-19 within 30 days from app submission under Rule 20/reply to SCN,cancel from date determined by him and directing to pay arrears under S.29(5).
• mutatis mutandis applicable to legal heirs
• The reply to above is found satisfactory, the officer shall drop proceedings and pass order GST REG-20.
• if instead of reply, all returns/payments are made, same order issued

REVOCATION OF CANCELLATION (Section 30) 

1. subject to prescribed conditions,registration cancelled by proper officer suo moto may apply to officer for revocation within 30 days from cancellation order's service.
• period on sufficient cause shown and written reasons be extended:
• by additional/joint commissioner for upto 30 days
• by commissioner for up to 30 days after above 60 days
2. officer orders to either revoke cancellation or reject the app after the opportunity of being heard.
3. revocation under S/UTGST deemed under here

RULE 23 OF CGST RULES: REGISTRATION-CANCELLATION REVOCATION 

1. app for revocation in GST REG-21 as per period prescribed
• no app if cancellation due to failure to file returns unless return filed and due tax paid.
• officers with written reasons believe grounds for revocation, order in GST REG-22 for the same within 30 days of app submission and communicate it to the applicant.
• rejection in GST REG-05 with written reasons and intimate applicant
• all returns from cancellation order/retrospective date to revocation order furnished within 30 days of revocation order.
2. proper officer before ordering, issue SCN in GST REG-23 as to why app shouldn't be rejected and applicant to reply within 7 working days from service in GST REG-24.
3. upon receipt of reply to SCN,dispose of app within 30 days of receipt.

clarification: https://gstcouncil.gov.in/sites/default/files/SGST-Circulars/99_99_~1.PDF

RULE 26 OF CGST RULES: MODES OF DOC AUTHENTICATION 

• all apps,replies to notices,returns submitted electronically with DSC through e-signs or using invoice furnishing facility verified through e-verification code (EVC).
• each doc including return furnished online signed/verified through EVC for:
• individual/guardian
• karta/other adult member for HUF
• CEO/authorised signatory for co.
• authorised officer for govt./governmental agency/local authority
• partner for firm
• members of associations
• trustee
• others, people competent to act/authorised to act S.48

CASE LAW: IN RE : Sawai Manoharlal Rathi, 2020 (38) G.S.T.L. 354 (A.A.R. - GST - Guj.)

Where a person is not registered under the GST regime, he can neither collect GST from his customers nor claim any input tax credit of GST paid by him. Besides, where a person fails to get registration even though he is required to be taken under the provisions of CGST Act, be shall be liable to penal provisions under the said act.

TAX INVOICE,DEBIT & CREDIT note 

Chapter VII of act+Chapter VI of rules

TAX INVOICE (section 31) 

issued when making a taxable supply. defined in S.2(66). S.31 provides:

1. supplying taxable goods,before/at:
• goods removal,supply involving movement
• delivery or making them available in another case
2. issue a tax invoice showing description,qty;value,tax charged and other particulars.
• govt. may specify time/other docs for issuing tax invoices for specific categories
• invoices shall be mandatorily issued before/after provision of service
3. sub-S(3) provides for revised invoices of supply between registration and certificate issued [Rule 53(2)].
• revised invoices included in this section
• Rule 53(1) contents same as Rule 49
4. no tax invoice if value <200 rupees as prescribed
5. for inter-state supplies, value <2.5 lakhs,consolidated revised tax invoice may be issued separately.

RULE 46 OF CGST RULES: TAX INVOICE CONTENTS 

subject to Rule 54,invoices should contain details of supplier/recipient, issue date, address of delivery, HSN code, taxable value/tax charged, sign/DSC, QR code.

suppliers other than services by admission to exhibition of cinematograph films, may issue consolidated invoices if the recipient is unregistered and doesn't require invoices.

board may notify HSN digits OR specified class with specified no. of digits OR class not required to mention HSN (notified on 28/06/17).

aggregate turnover upto 5 cr. in pvs. FY may not mention HSN code for supply to unregistered people.

where an invoice issued under S.31(3)(f), consolidated invoice issued at month end for supply under S.9(4), aggregate value >5000/day.

in case of export to SEZ/SEZ developers., invoice shall carry an "endorsement" supply.

no DSC required in e-invoices.

RULE 46A OF CGST RULES: TAX INVOICE CUM BILL OF SUPPLY 

notwithstanding Rule 46,49,54, issued for taxable+exempt supply

TIME LIMIT FOR ISSUING INVOICES 

for goods,per S.31

S.31(4) in continuous supply, before/@ making statements OR payment due date.

S.31(7) goods sent for approval and removed before supply takes place, invoice issued before/@ supply OR 6 months from removal,whichever EARLIER.

govt. may specify special categories with distinct  time/mannered

for services,S.31(2)before/after provision of service

Rule 47, within 30 days of service supply

provided supplier=insurance/banking co./FI/NBFC, 45 days from supply. if the supplier issues to a distinct person under S.25, invoice before/@ supplier records in books OR before the quarter expires.

RULE 48 OF CGST RULES: TAX INVOICE-MANNER OF ISSUING 

prepared in triplicate for goods,

• original for recipient and marked as such
• duplicate for transporter
• triplicate for supplier

duplicate for supply

• original for recipient
• duplicate for supplier

serial no. of invoices furnished electronically in GSTR-1

prepared by such a class  as notified by the govt. with particular in GST INV-01 after obtaining IRN by uploading info on the common portal.

invoices issued other than above shall not be treated as invoices.

E-INVOICING (w.e.f. 01/10/2020) 

digital invoices electronically uploaded/authenticated by a designated common portal. it is launched to counter tax evasion.

Rule 48(4): prepared by class notified by the govt. in GST INV-01 in specified e-invoice portals.

regstd. person other than SEZs and under Rule 54(2,3,4,4A) whose aggregate turnover in preceding FY>5 cr. down from 10 cr. from 01/08/2023 shall prepare e-invoices.

RULE 31A OF CGST RULES: PRESCRIBED MODES OF E-PAYMENT  TO SUPPLY RECIPIENT  (optional,21/03/2020) 

dynamic QR code for business having aggregate turnover>50 cr. w.e.f. 01/04/2021

tax invoice by recipient-S.31(3)(f) regstd. person liable to pay tax under S.9(3)(4) shall issue invoices for supply received from an unregistered supplier.

BILL OF SUPPLY [section 31(3)(c)] 

supplying exempted goods under S.10 containing particulars in Rule 49 and no bill of aggregate value <200 rupees.

DSC not required for E-bill and the govt. may notify QR code requirements.

Rule 49:contents of bill

• supplier details
• consecutive serial no. up to 16 characters
• issue date
• recipient's details
• HSN code
• description/value considering discount OR abatement of supply
• supplier/authorised reps DSC
• rule 46 proviso applicable

doc issued for non-taxable supply=bill of supply

RECEIPT VOUCHER [section 31(3)(d)] 

on advance payment evidencing receipt

Rule 50: contents same as Rule 49

 if at receipt, tax rate is indeterminable then 18% and if nature is indeterminable,taken as inter-state.

REFUND VOUCHER [S.31(3)(e)] 

if after receipt voucher,no supply is made and no invoices issued, then the payee may make a refund voucher to the payer against payment.

Rule 51: contents same as Rule 49

PAYMENT VOUCHER [section 31(3)(e)] 

liable to pay tax under S.9(3,4) issues such vouchers

Rule 52: contents same as Rule 49

CREDIT/DEBIT NOTE 

S.34(1) tax invoice issued and taxable value charged exceeds tax payable for supply/goods returned by recipient/supply found deficient, supplier issues a credit note.

S.34(3) taxable value actually charged is less than tax payable, supplier issues debit note.

Rule 53(1A): contents of both notes same as Rule 49

Rule 53(3):invoice/debit note issued under S.74,129,130 contain "ITC NOT ADMISSIBLE"

RULE 54 OF CGST RULES: TAX INVOICE (SPECIAL CASES) 

1. an ISD invoice/credit note shall contain details as in Rule 49
• ISD=office of banking co./FI/NBFC (tax invoice=doc containing above info)
• regstd. person having the same PAN and state code as ISD may issue any of the docs above to transfer credit of common input services to ISD containing details as in Rule 49.
2. supplier= insurer/banking co./FI/NBFC, may issue consolidated invoice at month end and contain info under Rule 46.
• DSC not required if issued accordance with IT act,2000
3. supplier=goods transport agency supplying transportation services by road in goods carriage,issue invoice containing following:
• gross consignment weight
• consignor/consignee name
• registration number of goods carriage
• details of transported goods
• origin/destination
• GSTIN of person bearing tax liability
• Rule 46
4. supplier=passenger transportation service, invoice to include tickets and Rule 46 and DSC not required if issued according to IT act,2000.
• services by admission to exhibition of cinematographic films in multiplex screens required to issue an e-ticket containing Rule 46 deemed invoice (optional for other than multiplex screens).
5. (2,4) applicable to docs under Rule 49-53

RULE 55 OF CGST RULES:GOODS TRANSPORTED UNDER DELIVERY CHALLAN IN LIEU OF INVOICE 

for:

• supply of liquid gas where qty. @ removal unknown
• goods transported for job work
• goods transported for other than supply
• such other board notified supplies

consignor may issue delivery challan  as per Rule 49

prepared in TRIPLICATE: original=consignee, duplicate=transporter, triplicate=consignee

such goods declared as per Rule 138

• goods transported for supply but no invoice issued @ removal,supplier to issue invoice post-delivery.
• goods transported in semi/completely knocked down condition/batches/lots
• supplier issues complete invoice before dispatch of 1st consignment
• delivery challan and copies for each subsequent giving invoice reference in a certified copy.
• invoice original copy sent along last consignment

RULE 55A: The person in charge of conveyance shall carry a copy of invoice/bill of supply if not required to carry an e-way bill.

ACCOUNTS & RECORDS 

Chapter VIII (S.35-36)+Chapter VII (Rule 56-58)

OBLIGATION TO MAINTAIN (S.35) 

at principal business place as mentioned in certificate,true & correct account of:

1. goods production/mft.
2. inward/outward supply
3. stock of goods
4. ITC availed
5. output tax payable/paid
6. other prescribed particulars

if multiple places in the certificate, accounts are kept as per respective place.

The commissioner may notify the class to maintain additional accounts/docs.

turnover during FY > prescribed limit gets accounts audited by CA/CMA and submit copy of audited accounts,statements under S.44(2) and such other prescribed docs.

subject to S.17(5), regstd. fails to account,the proper officer shall determine tax payable on unaccounted supply and S.73,74 shall mutatis mutandis apply.

Rule 56: ACCOUNTS MAINTENANCE 

• in addition to S.35(1),true and correct account of imports/exports attracting reverse charge with relevant docs.
• other than paying tax under S.10 shall maintain stock accounts with respective particulars.
• A separate account of advances received,paid and adjusted
• other than S.10,maintain tax payable,collected and paid accounts[including S.9(3,4)],ITC claimed with necessary docs.
• particulars of suppliers,recipients, address of premises where goods/goods-in-transit are stored along with stock particulars.
• taxable goods stored at other than mentioned places declared above without valid docs,the proper officer shall determine tax payable as if supplied.
• include electronic data stored on electronic devices and authenticated by a DSC.
• an entry not erased, effaced or overwritten and all wrong entries (not clerical) scored out under attestation and thereafter correct entry recorded.
• log of entries edited/deleted if e-form
• manual vol. serially numbered
• unless proved otherwise, accounts found at other premises than mentioned, presumed maintained by regstd. person.
• every agent in S.2(5) shall maintain accounts depicting:
• authorisation received to receive/supply
• description/value/qty. of goods received OR supplied
• accounts furnished to each principal
• tax paid on principal's behalf
• mft. goods, monthly production accounts showing quantitative details of raw materials/services used including waste and by-products.
• details of goods used in provision of services, input services utilised and services supplied.
• A person executing a works contract shall keep separate accounts showing:
• on whose behalf contracts executed
• services received/utilised
• payment received
• suppliers
• preserved for a period in S.36 and if maintained manually be kept at every related business place mentioned in the certificate and accessible if maintained electronically.
• A person having custody of goods as carrier/clear & forwarding agent for delivery or dispatch shall maintain true and correct records and produce them on demand.
• on demand produce books that are required to be maintained legally

Rule 57: ACCOUNTS MAINTENANCE ELECTRONICALLY 

proper electronic backup so that info is restored within reasonable time and produced on demand with due authentication.

providing necessary details for access along with a sample of info in print.

Rule 58: ACCOUNTS MAINTENANCE BY GODOWN(STORAGE) KEEPER/OWNER/OPERATORS 

1. requirement under S.35(2), if not already regstd. shall submit electronically business details in GST ENR-01 upon validation, Unique Enrolment NO. (UEN) generated & communicated.
• for Chapter XVI, transporter regstd, in multiple states/UTs having the same PAN may apply for U common EN  by submitting GST ENR-02 using his GSTIN.
• after UCEN obtained, transporter not eligible to use GSTIN under Ch XVI.
2. enrolled in another State/UT deemed enrolled here
3. enrolled can amend details
4. subject to rule 56:
• A person engaged in transporting goods shall maintain records of goods transported,delivered and stored in transit along with GSTIN of consignor/consignee.
• warehoused good records like dispatch,movement,receipt and disposal
5. stored goods able to be identified item/owner wise and facilitate physical verification/inspection by proper officers on demand.

RETENTION PERIOD(S.36) 

retain until expiry of 72 months from the due date of furnishing annual return for respective year of a/c and records.

person who is party to appeal/revision/proceedings before an authority,tribunal or court OR under investigation for offence under CH XIX hall retain books pertaining to subject matter for 1 year after disposal or above period, whichever is LATER.

DOCS/DEVICES CARRIED BY PERSON-IN CHARGE OF CONVEYANCE

ELECTRONIC WAY BILL (EWB) 

S.68(1) govt. may require a person in charge of conveyance carrying any consignment of value > specified amt. to carry devices/docs such an E-way bill.

it needs to be generated before transporting/shipping goods worth > 50,000.

Rule 138: E-WAY BILL GENERATION PROCEDURE 

• every regstd. person causing movement of >50,000:
• relating to supply
• other than supply
• inward supply from unregistered shall before commencing movement, furnish required info in GST EWB-01 to generate a Unique NO.
• transporters may furnish Part-A on authorization from regstd. persons for a UN.
• Part-A furnished by an e-commerce operator/courier agency on authorisation from consignor.
• goods sent by the principal to job worker warrants e-way bill generated by principal/job worker irrespective of value.
• handicraft goods transported to a person exempt from registration under S.24(i,ii), e-way bill still generated irrespective of value.

DETERMINATION OF CONSIGNMENT VALUE

• e-bill value= invoice(S.15)+ cess/tax but excludes exempt supply
• when goods are transported as consignors in their own/hired/public conveyance/by road, e-way bill in GST EWB-01 after furnishing info in Part B.
• Part B essential for bill validity
• transported by railways/air/vessel,regstd. supplier/recipient shall generate e-will as above before/after movement.
• railways shall not deliver goods unless e-bill produced
• e-bill not generated and goods handed to the transporter,regstd.person shall furnish an e-way bill by uploading transporter info and on the basis of Part A of EWB-01.
• e-way bill optionally generated even if consignment is not >/= 50,000
• movement by an unregistered person, he/transporter may optionally generate an e-bill.
• movement said to be caused by an unregistered recipient if the recipient is known at movement commencement.
• goods transported for <50km within state/UT for further transport,Part B not necessary.
• post-e-way bill, Unique E-way Bill NO.(EBN) made available to the supplier,recipient and transporter.

EWB IN CASE OF CHANGE OF CONVEYANCE/RECIPIENT

• goods transferred,consignor/recipient that provided info in Part A/transporter shall before transfer & further movement update conveyance details in EWB in Part B.
• by assigning EBN to another regstd./enrolled transporter
• after details were updated in Part B,another transporter assignment disallowed.
• multiple consignments,transporters may indicate serial no. of EWBs generated per each consignment and consolidated EWB in GST EWB-02 generated prior to movement of goods.

EWB BY TRANSPORTER

• The consignor/consignee, didn't generate even after consignment value crossed threshold except railways/air/vessel, may generate EWB-01/02 on the basis of invoices,supply bills or delivery challans.
• if goods are transported by an e-commerce operator/courier agency, Part A is furnished by them.
• Part A info made available to regstd. supplier for furnishing GSTR-1
• or informed electronically via mobile/email, if unregistered

EWB CANCELLATION

• goods not transported/not per details in EWB cancelled within 24 hours of the EWB generation.
• can't be cancelled if verified in transit per Rule 138B
• unique no. valid for 15 days of Part B update

EWB VALIDITY

• The commissioner may on council recommendations extend validity for certain categories.
• exceptional circumstances including trans-shipment,goods can't be transported outside validity,transporters may extend it after updating Part B as required.
• validity extended within 8 hours of expiry

EWB DETAILS ACCEPTANCE/REJECTION

• EWB details made available to regstd. supplier/recipient where Part A is furnished by him/transporter.
• and the said person must communicate their acceptance/rejection
• within 72 hours of availability/goods delivery,whichever EARLIER or deemed accepted.
• EWB under this rule/Rule 138 of any S/UTGST valid in every State/UT

EWB EXEMPTIONS

1. if transported by a non-motorised conveyance
2. goods transported from customs port,airport,air cargo complex and land custom stations to an inland container depot/container freight station for customs clearance.
3. movement within Rule 138 (14)(d)
4. other than the de-oiled cake specified in schedule of uploads/2018/01/CGST Notification-35_2017_Central-Tax-Rate
5. goods transported=non-taxable under GST
6. goods transported are:
1. under customs bond from an inland container depot or a container freight station to a customs port, airport, air cargo complex and land customs station, or from one customs station or customs port to another customs station or customs port,
2. under customs supervision/under customs seal;
7. goods are transit cargo from /to nepal or Bhutan
8. tax exempt goods
9. movement caused by defence formation by defense ministry
10. consignor=CG,SG,local authority for transport by rail
11. empty cargo containers transported
12. transported <20 km from consignor's place to weighbridge or vice-versa subject to movement accompanied by delivery challan per Rule 55.
13. empty cylinders for packing liquified gas moved for other than supply
14. below specified goods

clarification: Circular_61-35_Eway_Bill.pdf

Rule 138A: DOCS/DEVICES CARRIED BY PERSON-IN CHARGE OF CONVEYANCE 

• invoice/bill of supply/delivery challan and copy of EWB or mapped to a Radio Frequency ID Device (RFID).
• RFID inapplicable for movement by rail,air or vessel
• imported goods also carry a copy of the bill of entry filed by the importer and indicate in Part A of GST EWB-01.

Invoice Reference NO. (IRN) in lieu of EWB

• if an invoice is issued under Rule 48(4),QR code has an embedded IRN,produced electronically for verification by the proper officer.
• if invoice uploaded,Part A automatically populates based on GST INV-01
• commissioner may notify classes  to obtain a unique RFID
• where circumstances warrant, commissioner may notify to carry invoice/bill of supply/delivery challan.

Rule 138B: VERIFICATION OF DOCS/DEVICES CARRIED BY PERSON-IN CHARGE OF CONVEYANCE 

S.68(2) doc details carried under S.68(1) validated as prescribed
S.68(3) conveyance intercepted by proper officers, he may require for docs and persons liable to produce them and allow goods inspection.

1. A commissioner/empowered officer may authorise a proper officer to intercept conveyance for verifying EWB.
2. commissioner shall get RFIDs installed @ required verification places
3. physical verification of conveyance by proper officers as authorised in (1).

on receipt of specific info of tax evasion,physical verification can be carried out by another officer after necessary approvals obtained.

Rule 138C: CONVEYANCE GOODS INSPECTION/VERIFICATION 

• summary report of every inspection recorded online by proper officers  in Part A of GST EWB-03 within 24 hours of inspection and final report in Part B within 3 days of inspection.
• 24 counted from midnight of date of vehicle interception
• circumstances so warrant,commissioner/other officer on sufficient cause shown,extend time for recording Part B for not exceeding 3 days.
• physical verification during transit only once in state/UT unless specific info available subsequently.

clarification: Circular_64_38_Eway_Bill.pdf

Rule 138D: FACILITY FOR UPLOADING VEHICLE DETENTION INFO 

vehicle intercepted & detained for 30 minutes< ,transporters may upload info in GST EWB-04.

Explanation. - For the purposes of this Chapter, the expressions ‘transported by railways’, ‘transportation of goods by railways’, ‘transport of goods by rail’ and ‘movement of goods by rail’ does not include cases where leasing of parcel space by Railways takes place.

Rule 138E: RESTRICTION ON FURNISHING INFO IN PART A OF EWB-01 

no person allowed, who:

1. paying tax under S.10 or availing 

   02/2019-Central Tax (Rate) ,dt. 07-03-2019 and has not furnished GST CMP-08 for 2 consecutive quarters.

2. other than above, has not furnished returns for 2 consecutive periods
• The commissioner may (on app receipt in EWB-05) for sufficient cause and for written reasons, order in EWB-06 allow furnishing info in Part A.
• no order rejecting request passed without opportunity of being heard
• permission granted/rejected by the State/UT commissioner deemed so here.
• inapplicable from 20/03/2020-15/10/2020 where GSTR-3B/1/GST CMP-08 not furnished for 02/2020-08/2020.
3. not furnished outward supplies for 2 months/quarters
4. registration suspended under RUle 21A

clarification:4th and 5th point

Case Laws:

In the matter of Godrej Consumer Products Ltd. vs. ACST & E-Cum-Proper Officer, Baddi-II2020 (34) G.S.T.L. 272 (Appellate Authority - H.P.)

 In the matter of Bhushan Power & Steel Ltd. Versus Asst. Commr. of State Taxes & Ex. (Proper Officer), Shimla, 2020 (34) G.S.T.L. 261 (Appellate Authority - H.P.)

In the matter of Same Deutzfahr India P. Ltd. Versus State Of Telangana 2020 (43) G.S.T.L. 673  (Telangana)

TAX PAYMENT 

Ch X (S.49-53) and Ch IX (Rule 85-88)

liability towards tax,interest,penalty,fee,etc.(TIPFO) created by debiting e-credit ledger.then it is credited by availing ITC as stated in the previous chapter and for any deficient amt., the e-cash ledger is credited by actual cash deposit.

the liability discharged by debiting e-cash/cr. ledgers and crediting e-liability ledger.

E-CASH LEDGER (S.49) 

1. amt. deposit towards TIPFO through internet banking,credit/debit cards,NEFT,RTGS,etc. credited and maintained as prescribed.
2. amt. used for TIPFO [S.49(3)]
3. transfer TIPFO to e-cash ledger of I/C/S/UTGST as prescribed and may be deemed as a refund under this act [S.49(10)].
4. transferred amt. deemed deposited in the respective ledger as under S.49(1) [S.49(11)]
5. credit date to the govt. a/c deemed deposit date in e-cash ledger [Explanation to S.49]
6. balance after TIPFO payment refunded as per S.54.

Rule 87: E-CASH LEDGER MAINTENANCE 

• maintained in GST PMT-05 for TIPFO liability
• challan in GST PMT-06 for TIPFO details, valid for 15 days
• deposit made through methods listed in S.49(1) and over-the-counter payments through authorised banks <10,000 rupees/challan/tax period by cash,cheque,DD.
• the 10k restriction inapplicable to deposits by govt. depts. as notified by the commissioner, authorised officers by attachment/sale/cash/cheque,DD during investigation/enforcement/ad hoc deposit.
• OIDAR supplying to non-taxable recipients outside India may also make deposit transfer through Society for Worldwide Interbank Financial Telecommunication payment network, from board notified date.
• challan payment commission borne by a person making such payment
• payment required to be made by an unregistered on the basis of temp. ID no. (TIN).
• payment by NEFT/RTGS,mandate form generated along with challan and submitted to bank of payment.
• valid for 15 days from generation
• on successful credit to the govt. a/c,Challan ID no. (CIN) generated by the collecting bank and indicated in challan.
• on CIN receipt,amt. credited to e-cash ledger and a receipt available
• if bank a/c is debited but no CIN generated/generated but not communicated, representation in GST PMT-07 to gateway of deposit initiation.
• amt. deducted under S.51 or collected under S.52 and claimed by regstd. taxable credited to their e-cash ledger.
• refund from this ledger, debited in this ledger
• refund rejected,amt. debited above re-credited by proper officers by order in GST PMT-03.
• refund deemed rejected if appeal is finally rejected/claimant gives undertaking of not filing an appeal.
• upon noticing discrepancy,communicating to officers exercising jurisdiction in GST PMT-04.
• transfer TIPFO to e-cash ledgers under C/S/I/UTGST in GST PMT-09

E-LIABILITY LEDGER (S.49[7]) 

1. all liabilities recorded and maintained as prescribed
2. discharge taxes/dues for pvs./current tax periods and demands under S.73/74

Rule 85: E-LIABILITY LEDGER MAINTENANCE 

GST PMT-01 for each person liable for TIPFO

• debited by: amt. towards TIPFO per the return furnished or determined by proper officers in proceedings and interest due to mismatch under S.42/43/50 or other accrued interests.
• subject to S.49/49A/49B,liability payment reflected as credit in this ledger
• amt. deducted under S.51,collected under S.52,payable on reverse charge basis, payable under S.10 paid by debiting e-cash and crediting this ledger.
• demand debited under this register shall stand reduced if a person makes TIPFO payment specified in the Show Cause Notice/demand order and e-liability credited accordingly.
• upon noticing discrepancy,communicating to officers in GST PMT-04

E-CREDIT LEDGER (S.49[2,A,B]) 

Credited with self-assessed ITC per S.41/43A as prescribed. amt. available may be used for making outward tax payment under this act or IGST as prescribed. [S.49(2,A,B)]

Rule 88: ITC utilizations same as in previous chapter

also refer to Rule 86A/B in the previous chapter

Rule 86: E-CREDIT LEDGER MAINTENANCE 

1. GST PMT-02 for each person eligible for ITC and every ITC claim credited to said ledger.
2. debited to the extent of liability discharged per S.49(2,A,B)
3. if refund of unutilised amt. claimed per S.54, claim debited accordingly
• if refund rejected, debit is re-credited by order in GST PMT-03
• refund of tax wrongly paid/excess paid for which this ledger is debited, if found admissible, shall be re-credited by order in PMT-03.
• refund deemed rejected if appeal is finally rejected/claimant gives undertaking of not filing an appeal.
4. except this chapter,no entry made directly in this ledger
5. person upon noticing discrepancy, communicate it to proper officers exercising jurisdiction in GST PMT-04.

S.49(6): balance in e-credit/cash ledger after TIPFO payment be refunded per S.54

S.49(9): every person who paid tax under this act shall (unless contrary proved by him) be deemed to have passed on full incidence of tax to the recipient.

INTEREST ON DELAYED TAX PAYMENT (S.50) 

• every person is liable to pay tax but fails to do so shall pay interest @18% a notified by govt. on council recommendations.
• except where return under S.39 issued after proceedings commence under S.73/74,int. payable on a portion of tax paid by debiting e-cash ledger.
• int. calculated from the day succeeding the day on which tax was due
• undue/excess claim of ITC under S.42(10) or undue/excess reduction of output tax liability under S.43(10) shall pay int. <24% as notified.

[TDS] TAX DEDUCTED AT SOURCE(S.51) 

notwithstanding anything contrary,govt. may mandate,

1. CG/SG dept./establishment
2. local authority
3. govt. agencies
4. such persons/categories notified by the govt. (deductor) to deduct tax @1% from payment made/credited to supplier (deductee) where total value >2.5 lakhs.

1. no deductions made if the supplier's location and place of supply is in state/UT different from the recipient's registration.
• for explanations, refer to the ICSI module ch-4
2. amt. deducted paid to the govt. by the deductor within 10 days after the month-end in which deductions are made,in the prescribed manner.
3. TDS certificate issued as prescribed
4. deductees may claim credit in their e-cash ledger and reflected in the deductor's return under S.39(3).
5. The commissioner may,on council recommendations, for written reasons, notify the extension of time for furnishing annual statements for a specified class.
6. The deductor fails to pay the govt. amt. deducted under sub-section(1), pay interest per S.50(1)+tax deducted.
7. default amt. per S.73/74
8. refund for excess/erroneous detection per S.54
9. no refund granted,if deducted amt. credited to deductee's e-cash ledger

clarification:4th & 5th point

Rule 66: RETURN SUBMISSION BY PERSON REQUIRED TO DEDUCT TAX AT SOURCE per S.51 

• furnish return in GSTR-7
• details furnished by the deductor above made available electronically to each deductee for claiming in e-cash ledger.
• certificate in S.51(3) available electronically to deductee in GSTR-7A on the basis of sub-rule (1).

[TCS] TAX COLLECTED AT SOURCE(S.52) 

1. notwithstanding contrary,every E-Commerce Operator (ECO) not being an agent,shall collect amt. <1% of Inter-State net taxable supplies where consideration is collected by ECO,as notified by the govt. on council recommendations. [CBITC notification]
• net value of taxables=aggregate value other than services under S.9(5)-aggregate value of supplies returned.
2. power to collect without prejudice to other modes of recovery
3. amt. collected paid to the govt. within 10 days just like in S.51
4. every ECO who collects shall furnish statements of outward supplies including returned and amount collected in a month.
• commissioner may,for written reasons,extend time to furnish above
5. every ECO to furnish an annual statement containing outward supplies including returned and collected amt. during FY before 31/12 following FY end.
• commissioner may,for written reasons,extend time to furnish above
6. ECO discovers omissions/incorrect particulars in the monthly statement , other than due to scrutiny,audit,inspection or enforcement activity, he shall rectify it subject to paying interest per S.50(1).
• no such rectification allowed after the due date of filing/date of filing,whichever EARLIER.
7. The supplier supplying through ECO shall claim credit in his e-cash ledger, amt. collected/reflected in ECO's monthly statement.
8. supplies furnished by ECO matched with outward supplies of supplier
9. non matching details of above ,discrepancy communicated to both
10. discrepancy amt. not rectified by the supplier/ECO in his valid return, added to the supplier's output tax liability, where outward supplies of ECO > supplier.
11. supplier whose liability has been increased above shall pay tax+interest per S.50(1) on added amount from due date of tax till payment.
12. authority not below the deputy commissioner may serve notice requiring ECOs to furnish supplies or goods stock held.
• furnish within 15 working days of notice service
• failing to furnish info, without prejudice to action taken under S.122 liable to penalty <25,000.

Rule 67: STATEMENT SUBMISSION BY ECO 

ECO under S.52 shall furnish GSTR-8 containing supplies and tax collected. the details shall also be made electronically available to suppliers to claim in e-cash ledger post-validation.

Rule 79: DISCREPANCIES' COMMUNICATION/RECTIFICATION IN STATEMENT BY  ECO/SUPPLIERS 

• discrepancy made available to suppliers in GST MIS-3 and to ECO in GST MIS-4 on/before the last date of matching month.
• supplier rectifies outward supplies
• ECO rectifies in the monthly statements
• discrepancy not rectified ,discrepancy added to output tax liability of suppliers in his GSTR-3+interest payable made available to suppliers in GST MIS-3.

GST RETURNS MECHANISM 

Ch IX (S.37-48) and Ch VIII (Rules 59-84)

S.2(97)=Return 

all regstd. required to file outward return (containing invoice-wise details of outward supplies) and file inward return. these consolidated by monthly/quarterly. the monthly returns supplemented by annual returns along with books' reconciliation. 

GSTR-2/3 suspended since august 2017 

FURNISHING OUTWARD SUPPLIES (S.37) 

1. every regstd. other than ISD,NR taxable and paying tax under S.10/51/52 shall furnish outward supplies details on/before 10th of succeeding month; with the details being communicated to the recipient as prescribed.
• not allowed to furnish during 11th-15th
• commissioner may, for written reasons, notify time extension
• State/UT commissioner=deemed commission here
2. A person who has been communicated details under S.38(3) or inward supplies of ISD under S.38(4) shall either accept/reject details on/before 17th but on/after 15th of the succeeding month.
3. details remaining unmatched under S.42/43, upon discovery of error/omission be rectified and tax+int. shall be paid in the return.
• no rectification allowed after furnishing return under S.39 pertaining to details of respective FY.

RULE 59: FURNISHING OUTWARD SUPPLIES  

• every regstd. other than the person in S.14 of IGST act shall furnish outward supplies in GSTR-1 monthly/quarterly.
• quarterly returns may furnish for 1st/2nd month up to a cumulative value of 50 lakhs (monthly) using IFF as prescribed under Rule 26 from 1st-13th of the succeeding month.
• this detail not furnished in GSTR-1
• GSTR-1 outward supplies shall include-
• invoice-wise details of:
• inter/intra state supplies to regstd. person
• inter-state supplies with invoice value > 2.5 lakhs made to unregistered persons.
• consolidated details of:
• intra-state made to unregistered for each rate of tax
• state wise inter-state supplies with invoice value < 2.5 lakhs to unregistered persons.
• debit/credit notes issued during the month for invoices previously issued
• notwithstanding this rule,-
• A person not allowed to furnish outward supplies under S.37 in GSTR-1, if not furnished GSTR-3B for preceding 2 months.
• The person required to furnish quarterly returns is not allowed to furnish GSTR-1/ IFF, if GSTR-3B is not furnished for preceding period.
• person restricted from using amt. available in e-credit ledger to discharge tax liability exceeding 90% tax liability under Rule 86B, not allowed to furnish GSTR-1/IFF, if not furnished GSTR-3B for preceding tax period.

FURNISHING INWARD SUPPLIES (S.38) 

1. every regstd., other than ISD/NR taxable/paying tax under S.10/51/52 shall verify,modify or delete, if required, the details of outward supplies to prepare inward supplies including supplies not declared by supplier under S.37(1).
2. furnish inward supplies including tax payable on reverse charge basis and inward supplies of IGST act or on which IGST payable under customs tariff act along with credit/debit notes received after 10th but before 15th of the succeeding month.
3. The commissioner may notify it with written reasons,extension of time.

RULE 60: FURNISHING INWARD SUPPLIES  

• GSTR-1 available electronically to concerned regstd. persons in Part A of GSTR-2A/4A/6A
• invoices furnished by NR taxable in his return GSTR-5 under Rule 63 also available to recipients in Part-A of GSTR-2A.
• invoices by ISD in his return GSTR-6 under Rule 65 available in Part B
• TDS is furnished by the deductor under S.39(3) in GSTR-7 available to the deductee in Part C.
• integrated tax paid on imports from SEZ/SEZ developers on a bill of entry available in Part D.
• auto drafted statement containing ITC details available in GSTR-2B monthly consisting of:
• outward supplies furnished by suppliers other than quarterly returns from the due date of GSTR-1 for pvs. month to present month's due date.
• invoices by NR taxables in GSTR-5 and invoices by ISD in GSTR-6 and outward supplies,required to furnish quarterly returns in GSTR-1/IFF-
• Q1,1st month from due date of GSTR-1 of preceding quarter to due date of 1st month in IFF.
• 2nd month, from furnishing 1st month details in IFF to due date of IFF 2nd month.
• 3rd month, from furnishing 2nd month IFF details to due date of GSTR-1.
• integrated tax paid in imports from SEZs/SEZ developers on bill of entry
• GSTR-2B monthly statement available-
• for 1st/2nd month, day after due date of furnishing outward supplies in IFF/GSTR-1 (for other than those required to furnish quarterly return) for the quarter.
• 3rd month, day after due date of furnishing outward supplies for said month in GSTR-1 by the person required to furnish quarterly returns.

FURNISHING MONTHLY SUPPLIES (S.39) 

1. other than ISD,NR taxable paying tax under S.10/51/52 shall for every calendar month/part, furnish an e-return of  inward/outward supplies/ITC availed,tax payable,paid and such other particular as prescribed.
• govt. may on council recommendations,notify classes who shall furnish quarterly returns.
• govt. notified filing GSTR-3B on/before 20th of following month and suspended GSTR-3.
2. A person paying tax under S.10 shall for each FY/part thereof furnish a return of State/UT,inward supplies, tax payable/paid.
3. a person under S.51 furnishes return within 10 days of month-end.
4. ISDs furnish within 13 days of month-end 
5. NR taxable furnish within 20 days of month end OR 7 days after the last day of registration period under S.27(1), whichever is EARLIER.
6. commissioner may for written reasons notify time extension
7. every person required to furnish a return other than referred in provisos to sub-section (3,5) shall pay govt. tax due as per return not later than the last date of return due date.
• tax paid as per supplies/turnover and other particulars as prescribed
8. A person required to furnish return under sub-section (1,2) to furnish returns irrespective of supplies being made or not.
9. subject to S.37,38, post-discovering omissions/incorrect particulars otherwise than scrutiny,audit,inspection or enforcement, it shall be rectified in respective returns subject to interest payment.
10. no rectification allowed after due date of furnishing return for september OR Q2 following FY end OR actually furnishing annual return, whichever is EARLIER.
11. not allowed to furnish return if returns for previous tax periods are not furnished.

RULE 61: FURNISHING MONTHLY RETURNS  

• every regstd. other than in the S.14 of IGST act,ISD/NR taxable/paying tax under S.10/51/52 shall be furnished in GSTR-3B as under S.39 (monthly/quarterly) on the respective due dates depending upon principal business places.

• discharge liability subject to proviso under S.49 by debiting e-cash/credit ledger and include details in GSTR-3B.
• persons required to furnish a quarterly return pay due tax under S.39(7) for 1st 2 months of quarter in GST PMT-06 by 25th of the next month.
• commissioner may notify payment extension for special classes
• while making a deposit in GST PMT-06,regstd. may:
• For the first month of quarter consider balance of e-cash ledger
• for the second,consider e-credit ledger balance excluding tax due for 1st month.
• amt. deposited above debited while filing quarterly returns and a refund claim out of deposit permitted only after GSTR-3B filed.

RULE 61A: FURNISHING QUARTERLY RETURNS  

• indicate preference to furnish quarterly returns from 1st day of 2nd month of previous quarter to last day of 1st month of concerned month.
• option exercised once, continues for future tax periods unless becoming ineligible or opting for monthly return.
• ineligible if the last return on the due date of exercising option hasn't been furnished.
• aggregate turnover >5 crores during current FY shall opt for monthly basis from 1st month of quarter succeeding the quarter where threshold is crossed.

QUARTERLY RETURN MONTHLY PAYMENT SCHEME (QRMP)

circular: Quarterly-return-monthly-payment-scheme

Notification: QRMP , gstcouncil.gov.in

Clarification: Quarterly-return-monthly-payment-scheme

RULE 62: FURNISHING COMPOSITION SCHEME RETURNS  

1. The person paying tax under S.10 shall:
• furnished quarterly statement containing payment of self-assessed tax in GST CMP-08 till 18th of month succeeding to quarter.
• annual return in GSTR-4 till 30/04 after FY end
2. The person furnishing statement above shall discharge tax+interest liability by debiting e-cash ledger.
3. above returns to include:
• invoice wise inter/intra state inward supplies
• consolidated details of outward supplies made
4. A person opting to pay tax under S.10 from FY beginning shall furnish outward/inward supplies and returns under Rule 59/60/61.
• ineligible to avail ITC for opting for composition scheme
5. opting to withdraw away from composition scheme @ own motion/instance of proper officer shall furnish GST CMP-08 for 18th of the month succeeding the quarter of withdrawal and furnish GSTR-4 within aforementioned time.

Rule 63: every regstd. NR taxable shall furnish GSTR-5 including outward/inward supplies and shall pay within 20 days after the end of tax period OR 7 days after the last day of registration,whichever is EARLIER.

Rule 64: services by OIDAR to unregistered Indians shall file GSTR-5A on/before 20th of succeeding month.

Rule 65: every ISD shall on the basis of GSTR-6A, furnish GSTR-6 containing tax invoices on which credit has been received/issued under S.20.

RULE 66: FURNISHING RETURNS  BY PERSONS UNDER S.51 

• every person required to deduct tax shall furnish GSTR-7
• above details made available to deductees for claim in e-cash ledger post-validation.
• certificate in S.51(3) available to deductee in GSTR-7A on the basis of return in sub-rule 1.

Rule 67:every ECO under S.52 shall furnish statements in GSTR-8 containing supplies and amounts collected. details made available to suppliers post-validation.

FIRST RETURN (S.40) 

furnished for a period between becoming liable to register till registration grant and shall declare it in the first return after registration is granted.

Rule 67A:person required to furnish nil return under S.39 in GSTR-3B OR nil details of outward supplies under S.37 in GSTR-1 OR a nil statement in GST CMP-08, reference to e-furnishing shall include details of such returns and required authentications.

ITC MATCHING,REVERSAL AND RECLAIM (S.42) 

1. details of inward supply furnished, be matched with corresponding outward supply OR  with IGST paid under customs tariff act,1975 for imported goods and for duplication of ITC claims.
• Rule 69:following details relating to ITC claims including imports, provisionally allowed under S.41, matched under S.42 after furnishing the due date of GSTR-3-
• supplier/recipient GSTIN
• invoice/debit note no./date
• tax amount
• If the time limit for furnishing GSTR-1/2 extended, the matching date also extended accordingly.
• The commissioner may,on council recommendation,order to extend the matching date.
• ITC claim in GSTR-2 accepted by the recipient on the basis of GSTR-2A without amendment shall be treated as matched  if the corresponding supplier furnishes a valid return.
• The ITC claim is considered matched where it is =/< output tax paid by the corresponding supplier.
2. ITC claim matching with corresponding outward under S.3 of customs tariff act,1975 be finally accepted and communicated to the recipient as prescribed.
• Rule 70
• final acceptance above made available to claimers in GST-MIS-1
• ITC claim communicated as mismatched but found matched after rectification be finally accepted and available.
3. ITC claimed by recipient >tax declared by supplier/not declared, discrepancy communicated to both.
• Rule 71
• discrepancy in claim as above and details of output tax liable under sub-section (5) made available to recipients in GST MIS-1 and to supplier in GST MIS-2 on/before matching month's end.
• supplier to rectify by adding in statement of outward supplies
• recipient to rectify by deleting in statement of inward supplies
• if the discrepancy is not rectified,add to the tax liability of the recipient in his return GSTR-3.
4. ITC claim duplication communicated to recipient as prescribed
• Rule 72: communicated in GST MIS-1
5. discrepancy amt. not rectified by supplier added to recipient's tax liability
6. excess ITC claimed due to duplication also added
7. recipient eligible to reduce amt. in Sub-S.(5) if the supplier declares details invoice/debit note in valid return.
8. added amt.+int. under S.50(1) from availing credit till corresponding additions are made.
9. reduction in tax liability accepted under Sub S.(7),int. paid is refunded by crediting e-cash ledgers.
• int. refunded <int. paid by supplier
10. amt. reduced contravening SS.(7) added to tax liability in month succeeding contravention + int. in S.50(3).

MATCHING,REVERSAL & RECLAIM OF REDUCTION IN OUTPUT TAX  LIABILITY (S.43) 

1. details of every credit note of outward supply matched with corresponding reduction in ITC and with claim duplication.
• Rule 73: matched after the due date of furnishing GSTR-3 with details similar to Rule 69.
• Rule 78: following details for supplies made through ECO as declared in GSTR-8 matched with GSTR-1:
• state of supply
• net taxable value
• time limits extended,matching dates extended accordingly
2. reduction for claim in tax liability by supplier matching with recipient's ITC reduction claim finally accepted and communicated in GST MIS-1 (Rule 74).
3. reduction in liability >corresponding ITC reduction, discrepancy communicated to both.
• Rule 75: same as Rule 71 except addition🔁deletion
4. duplication communicated to the supplier in GST MIS-1 (Rule 76)
5. rest the same as S.42 but here tax liability is of supplier
• Rule 77: interest refunded in S.43(9) claimed by regstd. in GSTR-3 and credited to e-cash ledger in GST PMT-05 being available for payment of future liability.

(not yet operational):Section 43A

ANNUAL RETURN (S.44) 

GSTR-9 containing details of inward/outward supplies. before filing it, GSTR-1/3B/4 must be filed. it will not be allowed to be filed in case of overdues.

it is also called consolidated monthly/quarterly return

S.44-every regstd. other than mentioned under S.51/52/casually taxable/ISD/NR taxable shall furnish an annual statement which may include a self-certified reconciliation statement with audited annual financial statements for every FY .

The commissioner may notify them to exempt any class from filing.

nothing applicable to depts. of CG,SG,local authority whose books are audited by C&AG of India or auditors appointed under existing law.

this section is substituted by the following notification:notfctn-29-central-tax-english-2021.pdf

RULE 80 

• every person mentioned in S.44 required to furnish annual return in GSTR-9 for every FY on/before 31/12 following FY end.
• A person paying tax under S.10 shall file GSTR-9A
• every ECO under S.52(5) shall file GSTR-9B
• every mentioned person whose aggregate turnover during FY >5cr. shall also furnish a self-certified reconciliation statement in GSTR-9C along with annual return per due date in Sub-Rule (1).

FINAL RETURN (S.45) 

whose registration is cancelled and required to furnish return under S.39(1) shall furnish within 3 months of cancellation/cancellation order ,whichever is LATER.

GSTR-10(Rule 81)

NOTICE TO RETURN DEFAULTERS (S.46) 

if regstd.person fails to furnish concerned returns, a notice is issued requiring him to furnish them within 15 days as prescribed.

GSTR-3A(Rule 68)

CBIC's Standard operating procedure for non filers:https://cbic-gst.gov.in/pdf/circular-cgst-129.pdf

LEVY OF THE FEE (S.47) 

• anyone who fails to furnish supply details under S.37/38 or returns S.39/45 until due dates shall pay 100 rupees/day of failure <5000.
• failure to furnish return under S.44 liable to late fee of 100/day <quarter% of turnover in their State/UT.

REFUNDS 

taxpayers can claim excess if they paid more than the liability and is said to be the amount returned by the govt.

Ch XI (S.54-58) read with Ch X (Rule 89-97A)

(S.54) 

1. a person claiming a refund applies before expiry of 2 years from relevant date
• refund claim in e-cash ledger under S.49(6) may claim in return under S.39 as prescribed.
2. specialised agency of UN orgs/MFI and orgs under UN act,1947. consulate/ embassy or persons notified under S.55 entitled to refund on tax paid for inward supplies may apply as prescribed before expiry of 18 months from Quarter's last date in which supply received.[now rescinded notification 20/2018 dated 28-3-2018]
3. subject to Sub S.(10) refund may be claimed from unutilised ITC when the tax period ends.
• no refund allowed in cases other than:
• zero rated supplies without paying tax
• accumulated credit on input tax rate>rate on output (other than nil rated/fully exempt) except as notified by govt. on council recommendations.
• no refund where goods exported subject to export duty or where supplier avails drawback w.r.t. central tax or claims refund of IGST.
4. app accompanied by-
• doc evidence establishing due refund
• other evidence to establish tax+int.,if any,paid and tax incidence not passed to another.
• claim <2 lakhs, evidence not necessary but may file a declaration certifying not passing incidence.
5. app received,proper officers satisfied that amt. claimed is refundable, make order and amt. credited to the fund under S.57.
6. notwithstanding above,proper officers on a refund claim for zero rated supply other than govt. notified category, may refund provisionally 90% claimed excluding ITC provisionally accepted and order final settlement after doc verification.
7. order under Sub S.(5) within 60 days from app receipt
8. refundable amt. instead of being credited to fund, be paid to the applicant ,if related to:
• refund of tax paid on export
• refund of unutilised ITC under Sub S.(3)
• refund of tax paid on supply not provided and for which invoice not issued or where refund voucher issued.
• refund of tax under S.77
• tax+int. paid and incidence not passed
• tax/int. borne by such other classes notified by the govt. on council recommendations.
• refund of state tax as prescribed
9. notwithstanding anything contrary in a judgement,decree,order,direction of AT/court in any other provision, no refund except in (8).
10. refund due under (3) who defaulted in furnishing returns or required to pay any tax,int.,penalty not stayed by any court,tribunal,AA, proper officer may-
• withhold refund until returns are furnished or payment made
• deduct from due refund unpaid amt.
11. An order demanding refund is subject matter of an appeal/proceedings pending and commissioner opines that refund adversely affects revenue on malfeasance/fraud, after giving opportunity of being heard, withhold refund.
12. refund withheld above,notwithstanding S.56 entitled to int. <6% as notified on council recommendations.
13. advance tax deposited by a casual/NR taxable under S.27(2) not refunded unless furnished all returns concerned with registration period.
14. no refund under (5,6) if amt.<1000

Rule 89: REFUND APPLICATION 

• persons except notification under S.55 claiming refund other than integrated tax on exported goods may file GST RFD-01.
• refund claim relating to e-cash ledger balance in S.49(6) made through return furnished in GSTR-3/4/7.
• supplies to SEZ/SEZ developers filed by:
• goods' supplier after being admitted in full
• services' supplier+evidence regarding service receipt
• supplies=deemed exports, filed by:
• recipient
• The supplier where the recipient doesn't avail ITC and furnishes undertaking that supplier may claim refund.
• refund after adjusting tax payable out of advance deposited under S.27 @ registration,claimed in the last return.
• accompanied by doc evidence as applicable to establish a due refund such as:
• reference no. of order and copy passed by proper officer/authority in S.107(6)/112(8).
• statement containing shipping bills & export bills/invoices on goods export
• statement containing invoices+Bank Realisation Certificate/Foreign Inward Remittance certificates on services export.
• invoice statement as in Rule 46+endorsement evidence in proviso to Sub-Rule 1.
• declaration stating tax not collected from SEZ unit
• invoice statement+evidence as notified for deemed exports
• invoice statement for unutilised ITC under S.54(3) where credit accumulated on tax rate on inputs >outputs other than nil rated/fully exempt.
• reference no. of final assessment order and a copy for finalisation
• transaction details as intra-state but subsequently inter-state
• statement with claim details on excess payment of tax
• declaration that incidence of tax,interest or another amt. not passed to another <2 lakhs.
• not required under S.54(8)
• certificate of form issued by CA/CMA
• tax recovered from the recipient deemed that incidence passed on the consumer.
• e-credit ledger debited by refund claim amt.
• zero rated supply without tax payment, ITC granted as per prescribed formula.
• supplies received on which notification 48/2017 benefit availed,ITC refund granted.
• notification 40/78/79-2017 benefit availed
• refund on inverted duty structure granted per prescribed formula

Rule 90: ACKNOWLEDGEMENT 

• app for claim for e-cash ledger, acknowledgement in GST RFD-02 indicating claim filing date and time period in S.54(7) counted.
• other than above claims, f/w to the proper officer(PO) who shall within 15 days of filing, scrutinize for completeness per Rule 89 followed by acknowledgement.
• deficiency noted,PO communicates to applicants in GST RFD-03 requiring to file a fresh rectified app. 
• filing till deficiency communication excluded from 2 years under S.54(1) for a fresh refund claim.
• deficiencies communicated under SGST deemed as in here.
• pre-issue of refund sanction order in GST RFD-04 or final refund order in GST RFD-06 or payment order in RFD-05 or refund withhold in RFD-07 or notice in RFD-08, withdraw app by filing GST RFD-01W.
• submission of RFD-01W, amt. debited in e-credit/cash ledger credited back

Rule 91: PROVISIONAL REFUND 

• per S.54(6) granted if during 5 years immediately preceding the tax period, claimant not prosecuted for any offence where tax evaded > 2.5 lakhs.
• PO,post-scrutiny and satisfied of due amt., order in GST RFD-04 sanctioning refund provisionally within 7 days from acknowledgment
• order not required to be revalidated by PO
• issue payment order for sanctioned amt. and credited electronically
• payment requires revalidation if refund not disbursed within the same FY of payment advice.
• CG to issue refund on consolidated payment advice

Rule 92: REFUND SANCTIONING ORDER  

• Upon the app examination,the PO satisfied that the refund order due/payable, order in RFD-06 sanctioning refund,mentioning provisionally refunded amt. adjusted against o/s demand.
• upon app exam of refund of tax other than zero-rated/deemed exports,order in RFD-06 sanctioning amt. proportionate to amt. debited in cash against amt.paid for discharging tax liability.
• remaining amt. debited from e-credit ledger for tax payment,PO shall issue GST OMT-03 recrediting as ITC in e-credit ledger.
• PO/commissioner opine that refund is liable to be withheld under S.54(10,11),pass order in Part-A of RFD-07 informing withholding reasons.
• if no longer required to be withheld,order for release in Part-B
• PO satisfied with written reasons, refund claimed is inadmissible,not payable, issue notice RFD-08 requiring reply in RFD-09 within 15 days of notice receipt and order in RFD-06 sanctioning amt.or reject as prescribed.
• rejection after the opportunity of being heard
• PO satisfied that refundable amt. payable, order in RFD-06 and payment order in RFD-05 which is  electronically credited.
• order not required to be revalidated by PO
• payment requires revalidation if refund not disbursed within same FY
• POs satisfied not payable, order in RFD-06 and payment order for refund to be credited to Consumer Welfare Fund.

Rule 93:credit for rejected refund claim

deficiency communicated under Rule 90(3), amt. debited under Rule 89(3) recredited to e-credit ledger. amt. rejected under Rule 92, re-credited by order in GST PMT-03.

Rule 94:order sanctioning int. on delayed funds

int. due/payable to applicant under S.56,PO makes order/payment order specifying amt,delay period and amt. electronically credited.

circular: NOTIFICATIONS/circularcgst111.pdf

Rule 96: REFUND OF IGST PAID ON EXPORTS 

1. shipping bill filed by exporter deemed refund app og IGST and deemed filed when:
• person in charge of conveyance  files departure/export manifest/export report covering shipping bills/bills of export.
• applicant furnished all valid returns in GSTR-3/3B
2. export invoices in GSTR-1 transmitted electronically, confirmation of goods exported.
• If the GSTR-1 furnishing date extends,supplier to furnish exports in table 6A after GSTR-3B has been furnished.
• table 6A auto-drafted
3. upon receipt of info in return, Customs system/PO shall process refund claim and amt.=IGST paid for each shipping bill/bill of exports electronically credited to applicant.
4. claim withheld if:
• request received from Jurisdictional Commissioner(JC) to withhold per S.54(10,11)
• PO of custom determines goods exported in violation of customs act,1962
5. withheld above,PO to intimate the applicant and JC and a copy transmitted to the common portal.
6. PO passes order in Part-A in GST RFD-07
7. The applicant becomes entitled to refund from withheld amt.The concerned jurisdictional officer shall proceed to refund by passing an order in GST RFD-06 after passing the release order in part-B of GST RFD-07.
8. CG may pay a refund of IGST to Bhutan govt.
9. refund app on export services filed in GST RFD-01 dealt as per Rule 89.
10. persons claiming refunds shouldn't have benefitted from notification 48/2017 dated 18/10/2017 and notification 78/79/2017 dated 13/10/2017.
• benefit not considered availed only when person paid IGT and compensation cess on inputs and only availed exemption of Basic Customs Duty.

Rule 96A: EXPORT UNDER BOND OR UNDERTAKING LETTER 

1. availing supply for export without payment of IGST shall furnish, prior to export, bond/undertaking letter in GST RFD-11 to JC binding to pay tax+int. within,
• 15 days after 3 months expire or further prescribed period allowed by commissioner, from issue date of invoice for exports, if goods are not exported out of India.
• 15 days after a year expires or commissioner-allowed period, from invoice issue date, if payment is not received.
2. export invoices in GSTR-1 electronically transmitted;
• The outward supplies furnishing date in GSTR-1 extended,furnished in table 6A of GSTR-1 after GSTR-3B.
• table 6A auto-drafted
3. goods not exported and person fails to pay,export withdrawn and amt. recovered per S.79.
4. allowed export restored when a person pays due amt.
5. board may notify conditions/safeguards for undertaking letter
6. Sub Rule (1) applies, mutatis mutandis, to zero rated supply to SEZ/SEZ developers without IGST payment.

Rule 96B:recovery of refund of unutilised ITC/IGST on exports where exports proceeds not realised

proceeds unrealised within the period allowed under FEMA act including extensions,the person to whom money refunded, shall deposit non-realised amt.+int. within 30 days, failing which refund recovered per S.73/74+int. under S.50.

refund not recovered if RBI writes off realisation requirements.

sale proceeds realised post-recovery of refund and applicant produces evidence of realisation within 3 months from realisation, amt. recovered shall be refunded to the extent of realisation by PO, PROVIDED realisation occurs within extended time permitted by RBI.

clarification: https://taxinformation.cbic.gov.in/view-pdf/1002918/ENG/Circulars

REFUND IN CERTAIN CASES(S.55) 

govt. may on council recommendations,notify specialised agencies UN orgs/MFI and orgs under UN act,1947. The consulate/embassy or persons notified subject to prescribed conditions/restrictions entitled to refund on taxes paid.

Rule 95: REFUND OF INWARD SUPPLIES 

• apply in GST RFD-10, quarterly along with a statement of inward supplies in GSTR-11.
• acknowledgement of app receipt in GST RFD-02
• refund available if:
• inward supplies received from regstd. person against tax invoice
• GSTIN/UIN of applicant mentioned in invoice
• prescribed conditions/restrictions
• Rule 92 applies, mutatis mutandis
• express provision in treaty/international agreement to which Indian president/govt.is a party & is inconsistent with this chapter, then such treaty/agreement shall prevail.

Rule 95A: Refund of taxes to the retail outlets established in the departure area of an international Airport beyond immigration counters making tax free supply of Indigenous goods to an outgoing international tourist

international tourist=person who stays in India <6 months for legit non-immigrant purposes

• retail outlet should be eligible to claim on tax paid for inward supplies
• furnish app in GST RFD-10B, monthly/quarterly
• self-certified compiled info of invoices along with the concerned purchase invoice submitted with a refund app.
• refund available if:
• inward supplies received by regstd. person against tax invoice
• goods supplied against foreign exchange without charging tax
• GSTIN of retail outlet mentioned in invoice
• other prescribed conditions/restrictions are satisfied
• Rule 92 applies, mutatis mutandis

clarification:circular/rule withdrawal

INTERESTS ON DELAYED REFUNDS(S.56) 

tax refund ordered under S.54(5) not made within 60 days from app receipt. int.@ <6% as per notified by the govt. on council recommendations payable from expiry of 60 days till tax refunded.

refund claim arising from final order by adjudicating/appellate authority/appellate tribunal/court, not refunded within 60 days of app receipt, int.@ <9% as notified by the govt. on council recommendations.

Rule 94:int. due/payable under above,PO shall order along with payment advice in GST RFD-05 specifying amt./delay period/int. which shall be electronically credited.

CONSUMER WELFARE FUND 

S.57 following credits:

1. S.54(5)
2. investment income from credited amt.
3. other monies received as prescribed

S.58

1. all funds utilised by the govt. for consumers welfare as prescribed
2. maintain proper/separate a/c and record and prepare an annual a/c statement in consultation with C&AG of India.

Rule 97 

• all taxes/cess credited to fund including 50% of integrated tax under S.54(5) of CGST act read with S.20 of IGST act along with 50% cess under S.54(5) with S.11 of GST (compensation to states) act,2017.
• amt. credited ordered to be paid to a claimant by appropriate authority shall be paid.
• a/c maintained by CG subject to audit by C&AG
• govt. to constitute a standing committee with a chair,vice-chair,member secretary and other members for fund utilisation.
• meet as/when necessary,generally 4 times a year after 10 days' written notice.
• powers as prescribed
• not to consider an app unless inquired into and recommended by member secretary
• make available to board 50% amt. credited annually for publicity/consumer awareness provided funds >25 crores per annum.
• make recommendations as prescribed

Rule 97A: manual filing/processing

notwithstanding this chapter, e-filing/intimation/reply/declaration/statement/e-issued notice/order/certificate include manual filing as appended to these rules.

clarification:Circular_Refund_135_5_2020.pdf

OIDAR (online info database access and retrieval services) 

services provided through the internet/IT without any physical interface whatsoever rendering the supply automated and impossible to ensure in ITs absence.

mentioned in S.2(17) of IGST act,2017 and includes:

1. ads on internet
2. cloud services
3. e-books,movies,music,software and other intangibles
4. retrieving data/info via computer network
5. online supply of digital content
6. digital data storage
7. online gaming

OIDAR TREATMENT 

since they can be provided online from outside taxable territory;similar services would be taxable if provided by an Indian service provider from within taxable territory or received by a regstd. entity.

if these services are not regulated under GST, overseas suppliers would gain an unfair tax advantage and since overseas suppliers may not have a presence in India. compliance would become complex. hence, simplified registration is schemed.

OIDAR TAXABILITY 

S.13(12) of IGST act provides a place of supply=recipient's location and such services deemed located in taxable territory, if any 2 of the following non-contradictory conditions are fulfilled:

1. address presented by recipient is in taxable territory
2. credit/debit/store value/charge/smart card settling payment issued in taxable territory.
3. recipient's billing address in taxable territory
4. The device of the recipient has an Internet Protocol address in taxable territory
5. recipient's bank a/c used for payment maintained in taxable territory
6. recipient's subscriber id module card has the country code of taxable territory
7. fixed landline location via which service is received is in taxable territory

WHO WILL BE RESPONSIBLE FOR PAYING TAX?  

if the supplier located o/s India and recipient=business entity(regstd.) in India; reverse charge mechanism would apply.

whereas, if the supplier is located o/s India and recipient=individual, unnecessary to ask for registration for a one-off purchase.in such cases, the supplier will be liable for paying integrated tax.

if an intermediary o/s India arranges/facilitates supply to on-taxable online recipients in India; intermediary would be deemed supplier w.r.t prescribed conditions.

HOW WILL PERSON RESPONSIBLE FOR PAYING TAX  COMPLY WITH GST?  

supplier/intermediary take a single registration under Simplified registration Scheme in GST REG-10 under Principal Commissioner (Central tax),Bengaluru West.

if a representative is present in India, such a representative will register and pay IGST on the supplier's behalf.

if no such physical presence/representative in India, supplier may appoint such a person for the same.

NON-TAXABLE RECIPIENT:it is any local authority,govt,govt. authority,individuals not registered and receiving OIDAR services. for more information refer to the document at the start of this post.

OIDAR RETURN FILING BY SUPPLIER (Rule 64) 

GSTR-5A, on/before 20th of succeeding month

CG vide notification: GSTR-5A extension,regstd. persons & special procedure 

GST COMPLIANCE RATING 

S.149:every regstd. to be assigned a GST compliance rating score by govt. based on compliance record and other prescribed parameters. also updated periodically and put in the public domain as prescribed.

it is a new concept to bring about transparency and to let potential clients assess the suppliers better leading the way for healthy competition and compelling people to be more compliant along with following apt timelines.

RATING=performance ranking/scale

ACTUAL RATING SYSTEM NOT GOVT. NOTIFIED

RATING  PARAMETERS

• timely payment/e-filing of returns
• transaction matching
• adherence to timelines
• cooperating while dealing with the dept.
• filing correctness
• ITZ utilisation/disclosure
• correct deduction of TDS/TCS
• findings in scrutiny
• refund claims

RATING  OBJECTIVES

• efficient ITC mechanism
• preferred supplier chosen by buyers/increases customer base
• healthy competition
• enhanced compliance
• stricter scrutiny/surveillance
• building reputation
• benchmarks
• better negotiation with suppliers
• good governance
• speedy refunds and other procedures

GST ON  DIRECTORS' REMUNERATION

directors are compensated by fees,salary,use of co. property with approval from board+shareholders.

CBIC clarified vide CGST circular 140/2020 on 10/06/2020 and issues such as GST leviability on rem. to independent/whole-time/MDs directors.

GST ON REM. PAID TO INDEPENDENT DIRECTORS (not employees)

from co. act, under S.2(94) Whole Time Directors (WTDs) being an inclusive definition may include employees.

independent Directors (IDs) under S.149(6) read with Rule 12 of co.(share cap & debentures) rules,2014 clarifies that such a director may not have been an employee/proprietor/partner in any 3 FYs preceding appointment proposal.

so,services provided by these directors will be outside the purpose of Schedule III and therefore taxable.

the rem paid to people not employees is taxable in co. hands on reverse charge basis.

GST ON REM. PAID TO DIRECTORS (employees)

pertinent to evaluate activities on the basis of employer-employee relation or 'contract for service'.

directors' rem are subject to TDS under S.192 of income tax act and are non taxable under Schedule III and are termed "directors' salaries". however, where rem=professional fees and not salary, it is liable for deduction under S.194J and is outside schedule III's purview, therefore, being taxable.

recipient of services=co.liable to discharge GST on a reverse charge basis.

GST ON  CO.S' UNDER IBC/CIRP 

special procedure introduced to ensure compliance continuity by corporate debtors undergoing CIRP.

SPECIAL PROCEDURE FOR CO. IN CIRP

1. vide notification 11/2020 dated 21/03/2020, govt. notified specified persons to follow special procedure from the date of IRP/RP appointment till prescribed date.
• these debtors not to include the ones who have filed their returns under S.37/39 prior to IRP/RP appointment.
2. from applicability of special procedure, said persons treated distinctly from corporate debtors and liable for new registrations within 30 days of IRP/RP appointment.
3. file 1st return under S.40 from registration liability date till grant of registration
4. eligible to avail ITC on supplies received since special procedure applies subject to conditions in Ch V except S.16(4) and Rule 36(4) of CGST rules.
5. amt. entered in the cash ledger of IRP/RP between applicability of special procedure and registration granted shall be available for refund to erstwhile registration.
6. clarification: circular for IBC/GST, IBC circular

CASE LAWS

• In Re : Mansi Oils And Grains Pvt. Ltd. 2020 (38) G.S.T.L. 626 (A.A.R. - GST - W.B.)