GST Updates
Top GST News for the Month
by in GST Updates
Publish on February 26th, 2021
top GST News

GST News and updates for 2021 and 2020. This page is all about keeping you updated with top GST news, the latest GST notifications, circulars, and GST law changes by the government. This page is updated on a month-on-month basis so that you do not miss out on any important GST news or notification!

GST News Updates month-wise 2020-21

GST News Updates of February 2021
GST News Updates of January 2021
GST News Updates of December 2020
GST News Updates of November 2020
GST News Updates of September 2020
GST News Updates of August 2020

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Top GST News for the month of February 2021

There have been a few new changes, additions, and GST updates in the month of February 2021. Here we have compiled them together for your quick reference. Read on…

Important GST Notifications and circulars released in February 2021

GST Circular no: 145/2021 dated 11-02-2021 – SOP issued for implementation of suspension of GST Registration where significant deviation/anomalies are noticed between GSTR 3B and 1 or GSTR 3B and GSTR 2B

CBIC GST Circular no.146 dated on 23/02/2021 for Dynamic Quick Response (QR) Code on B2C invoices

GST Collection – January 2021

The GST collections for the month of January 2021 are the highest since the introduction of GST and have almost touched the Rs. 1.2 lakh crore mark. This is a good recovery post lockdown.

GST Proposals in Union Budget 2021

Our FM Nirmala Sitharaman presented the Union Budget 2021 which focused on 6 pillars – Health & Well-being, Inclusive Development, Human Capital, Innovation, and R&D. At one end, the budget focused on raising funds by allowing FDI investments in the Insurance sector, divestments of 2 PSU banks, and 1 general insurance company. The other end committed missions like Jal Jeevan Mission, Urban Swachh Bharat Mission 2.0 and roll out of Infrastructure projects in Tamil Nadu, Kerala, West Bengal, and Assam, National Rail Plan upto 2030, and much more. There are twelve proposals in this union budget 2021 impacting the indirect tax arena which are decoded here: GST Proposals in Union Budget 2021

GST Updates:

  • Advisory on Annual Return (GSTR-9): The taxpayers are advised to ensure that values are reported upto two decimal places in the GSTR-9 offline utility. The error “Error! Invalid Summary payload” after uploading the JSON created from the Offline Utility of GSTR-9 is reported due to reporting values upto three decimal places instead of two decimals
  • Advisory on Reconciliation Statement (GSTR-9C): The reconciliation statement to be filed in Form GSTR-9C requires the tax ratewise declaration of transactions for the concerned financial year. In the said form, tax amount pertaining to tax rates 1%, 1.5%, and 7.5% in section III (table 9 and 11) and section V may be made in the row/ under label ‘Others’ of the said tables, wherever applicable.
  • GSTR 9C: Form GSTR 9C has been proposed to be abolished by the government to further clarify the overall GST scheme and making taxpayers relieved from much more filing procedures.
  • Payment of Tax by Fixed Sum Method under QRMP Scheme: Using Invoice Furnishing Facility, QRMP taxpayers can upload selective or all B2B invoices on the GST portal for the first two months of the quarter and their counterparties can claim their Input tax credit( ITC ) without any delay. To ease the compliance burden, the system has assigned quarterly frequency to small taxpayers automatically. Payment can be made in the first two months by a simple challan in FORM GST PMT-06.The last due date for filing IFF by filing Invoice B2B on 13th Feb 2021 for January 2021. Read more about the Invoice Furnishing Facility  (IFF) under GST.
  • Form PMT-06: Form PMT-06 is a GST challan or a form for the deposit of goods and services tax. This Challan has gained significance after the introduction of the QRMP Scheme. It can be generated for any payment made via net banking or OTC (over the counter). Read all about Form PMT-06.
  • Compensation to the States: On 15th February, the Finance Ministry delivered the 16th installment of Rs. 5 thousand crore to the states. The central government is trying to complete the GST shortfall compensation amount.

Updates in the E-invoice System

Auto-population of e-invoice details into GSTR-1: Auto-population of details from e-invoices into GSTR-1 is only a facility for the taxpayers and not final numbers from legal point of view. After viewing the auto-populated data, the taxpayers need to verify the propriety and accuracy of the amounts and other data in each field, especially from the perspective of GSTR-1 and file the same, in the light of relevant legal provisions. Read all about Auto-population of e-invoice details into GSTR-1.
Also read: preparations to be done for GSTR1 – Post e-invoicing

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Top GST News for the month of January 2021

After the successful implementation of the e-invoicing mandate from 1st January 2021 onwards, there have been some changes in the GST compliance arena too. We have compiled all the top GST news updates of January 2021 here for your reference.

Important GST Notifications released in January 2021

GST Advisory issued in January 2021:

GSTR 2B will be available for download:

GSTR 2B for December 2020 will be available to all taxpayers for download post 13th January 2021 as the last cut off of quarterly filers is 13th January 2021.

Trade Circular 01/2021:

Maharashtra GST Department to issue separate circulars on applicability and implementation of CBIC Circulars to MGST Act. Hence, taxpayers in Maharashtra state have to adopt circulars issued by MGSTD since CBIC circulars are no more deemed to be auto adopted by MGST Act.

GST Collection – December 2020

The gross GST revenue collected in the month of December 2020 rose to Rs. 1,15,174 crores. This is an all-time monthly high since the implementation of the new tax regime, according to the Finance Ministry. It certainly shows that the country is recovering slowly and gradually from the crisis situation.

GST Updates on GST Compliance:

  • The due date of GSTR-9 & GSTR-9C: The due date of GSTR-9 & GSTR-9C  for Financial Year 2019-20 has been extended up to 28th February 2021.
  • Aadhaar Authentication / e-KYC for Existing Taxpayers on GST Portal: Functionality for Aadhaar Authentication and e-KYC where Aadhaar is not available has been deployed on GST Common Portal from 6th January 2021 onwards for existing taxpayers. All taxpayers registered as Regular Taxpayers (including Casual Taxable persons, SEZ Units/Developers), ISD, and Composition taxpayers can do their Aadhaar Authentication or e-KYC on the GST Portal. This is not applicable for Government Departments, Public Sector Undertakings, Local Authorities, and Statutory Bodies.
  • Auto-population of e-invoice details into GSTR-1: The first advisory about auto-population of e-invoice into GSTR 1 was issued on 13th November followed by a second advisory issued on 30th November suggesting the Government’s plan towards the same. The auto-population for the month of October and November 2020 was expected to go LIVE from Nov 2020, however the same got delayed due to some technical issues. The first auto-population happened for December 2020 on 3rd December 2020 followed by October and November auto-population. Read more Auto-population of e-invoice details into GSTR-1
  • Due dates for filing of Form GSTR-3B for the Tax Period of December 2020: Government of India, Ministry of Finance (Department of Revenue), CBIC, vide Notification No. 82/2020 – Central Tax, dated 10th Nov. 2020, has inserted sub-rule 6 in Rule 61 of the Central Goods and Services Tax Rules, 2017, to provide for staggered filing of Form GSTR-3B, for the tax period of December 2020

Updates in E-way Bill system:

The Union Ministry of Road Transport and Highways had issued a notification making a FASTag mandatory for all four-wheel vehicles from January 1, 2021. FASTag has been made mandatory for four-wheelers or M&N category of vehicles that were sold before 1 December, 2017. For this, the Central Motor Vehicles Rules, 1989 were amended. Later, the deadline got extended to January 15, 2021.

GST News and Updates:

  • Fake GST invoice cases on the rise. Over 2,500 cases booked since mid-November
  • GST scam: Haryana police recover ₹112 crores; 89 arrested
  • Fake GST invoice cases: 215 persons arrested, ₹700 cr recovered in 2 months – Haryana
  • 8 Chartered Accountants among 258 arrested in GST fake invoice frauds – Jaipur
  • GST officers arrested one person for operating 46 fake firms and passing on fake input tax credit (ITC) worth Rs 82.23 crore – updated by the finance ministry
  • Govt releases ₹6,000 cr to states, UTs to meet GST compensation shortfall: Out of this, Rs 5,516.60 crore has been released to 23 states, and Rs 483.40 crore has been released to the three Union Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir & Puducherry).

Apart from these updates, the e-invoicing system has seen several technical glitches since its introduction, the last one happened on 23rd Jan 2021. These glitches are not favorable for businesses as the economy comes to a standstill without IRN generation.

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Latest GST News for the month of December 2020:

GST laws are constantly being upgraded lately with new notifications and circulars. The areas of E-way Bill and E-invoicing have also seen major changes. Also, along with these, there are several other changes that have been implemented. So, we have compiled all the latest GST News and GST Updates from the month of December 2020 to give you a complete overview of the month at one place!

Important GST Notifications released in December 2020

    1. GST Notification 94/2020-Central Tax, date. 22-12-2020: Bunch of new provisions and updates introduced in provisions of GST Registration, GST Cancellation, Provisional ITC Claim, GSTR 1 blocking, EWB Validity by CGST (Fourteenth Amendment) Rules 2020
    2. GST Notification 93/2020-Central Tax, date. 22-12-2020: Late fees waived for the delay in filing GSTR 4 in Ladakh for FY 19-20 from Nov to Dec 20
    3. GST Notification 92/2020-Central Tax, date. 22-12-2020: From 1st January 2021 provisions of Section 119, 120, 121, 122, 123, 124, 126, 127, and 131 of the Finance Act 2020 shall be effective thereby amending the provisions of the CGST Act
    4. GST Notification 91/2020-Central Tax, date. 14-12-2020: Due date for compliances and actions by any authority in respect of anti-profiteering measures u/s 171 due from 20.03.2020 to 30.03.2021 is extended to 31.03.2021. The earlier notification said time limit for completion of actions due from 20th March to 29th November to be done by 30th November 2020 -65/2020
    5. GST Notification 90/2020-Central Tax, date. 01-12-2020: Taxpayer has to include 8 digit HSN Code for specified products in Tax Invoice. Earlier, for taxpayers having turnover above Rs. 5 Cr, 8 digit HSN code was mandatory to be included in GST Invoice. But with Notification 90/2020, 8 digit HSN has to be included for specified products irrespective of the turnover.

Circulars:

  • Circular 144/2020 – CBIC waived recording of UIN on invoices pertaining to refund claim from Apr 20 to Mar 21, subject to the condition that copies of such invoices are attested by the authorized representative of such UIN entity and submitted to the jurisdictional officer. This waiver was available till Mar 20, however, with circular 144/14/2020 it is further extended to Mar 21. Recording of UIN on invoices does not impact the liability of supplier but would have enabled recipient i.e. Foreign Diplomatic Missions/Consulates/UN Organizations to claim a refund of the taxes paid by them. Read more about UIN under GST here.

Advisory

GST Collection – November 2020

The finance ministry updated that the gross GST revenue collected in the month of November 2020 is Rs. 1,04,963 crore of which CGST is Rs. 19,189 crores, SGST is Rs. 25,540 crores, IGST is Rs. 51,992 crores (including Rs. 22,078 crores collected on import of goods) and cess is Rs. 8,242 crores (including Rs. 809 crores collected on import of goods).

Updates on GST Compliance:

The major change that is being implemented from 1st January 2021 is the implementation of the all-new Quarterly Return Monthly Payment (QRMP) scheme. Taxpayers with Aggregate Annual TurnOver(AATO)AATO of up to Rs. 5 crores in the financial year will be required to file quarterly GSTR-3B. Invoice Furnishing Facility (IFF) will be introduced to offer a choice of uploading the sales invoices on a monthly basis. It will also apply more regularly for those filing quarterly GSTR-1.

E-way Bill Updates:

  • From 1st December 2020 onwards, the EWB generation facility is being blocked for all taxpayers, irrespective of their AATO, for default in GSTR 3B filing or CMP 08, for two or more consecutive tax periods. However, the taxpayers have the option to have it unblocked by filing an application to the tax officer in such cases. Earlier this application could only be filed offline, however, the GSTN portal has now made the process completely online.
  • There have been quite a few updates in the E-Way Bill System from the validity of E-Way Bill extending to 200 km from 100 km to blocking of E-Way Bill generation for non-filers of GST Returns. Read all the updates here.
  • With the introduction of e-invoicing- IRN and E-Way Bill can be generated simultaneously, hence taxpayers need not visit 2 different portals for Invoice registration and E-Way Bill generation. However, Part B update etc will still need to be done from the E-Way Bill portal. The Go-LIVE for this is 1st Jan 2021 which was earlier scheduled to be 7th December 2020.

E-invoicing Updates:

  • The penalty for Non-compliance with QR Code on B2C transactions which was to go LIVE from 1st December 2020 has been further waived till 31st March 2021.
  • The taxpayers having an aggregate turnover exceeding Rs.100 crore should implement e-invoicing from 1st January 2021. GSTN conducted a webinar for such companies on e-invoicing on 16th December 2020.
  • NIC has also released an excel tool for IRN generation.
  • In the 2nd week of the month, GSTN started auto-populating GSTR 1 on the basis of IRN on a near to real-time basis along with the source, IRN Number, and date. The IRN data to be reflected in counterparty’s GSTR 2A

GST News: 

GST registration cancellation under CGST Rule 21A by tax officers:

  • Major inconsistency between the GSTR-3B with GSTR-1 and GSTR-2B
  • Taxpayer has not filed GSTR-1 since GSTR-3B is not filed for more than 2 consecutive periods (1 quarter for those who opt for the QRMP scheme). You may read here for more details: Quarterly Return Monthly Payment (QRMP) scheme.

Changes in Rule 36(4) from 1st January 2021:

  • Input Tax Credit: The ITC will be available to taxpayers as per the invoices uploaded by their respective suppliers (GSTR-1 or by using the Invoice Furnishing Facility (IFF).
  • Claiming Provisional ITC: The recipients can claim provisional ITC in the form GSTR-3B to the extent of 5% instead of 10%. It can be availed from the total ITC available in GSTR-2B for the month.

GSTR 2A to have auto-populated details based on ICEGATE Data:

  • Form GSTR-2A contains import data on the basis of information received from ICEGATE. PART-D has been added to the existing Part A, B & C. Read more: GSTR 2A: Details and Format

GSTR 9 of FY 2019-20:

  • Facility to file GSTR 9 of FY 2019-20 was made available on the GST portal from 10th December 2020. The form is enabled for taxpayers whose Table 8A computation has been completed, Computation of the Table 8A of the said return for auto-population from returns in under progress likely to be completed soon.

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Top GST News for the month of November 2020

A lot of new notifications and updates on the GST front have been released this month. Since this is the last quarter of the year 2020 and e-invoicing will be made mandatory for taxpayers with an aggregate turnover of over Rs. 100 Cr. from Jan 2021, a lot more changes are expected soon. Here, we have compiled all the big GST News updates from November for your reference. So let’s dive straight in…

Important GST Notifications released in November 2020

  1. GST Notification 81/2020-Central Tax, dated. 10-11-2020: The new provisions of section 39 of the Central Goods and Services Tax Act, 2017 shall come into force from 10th Nov 20.
  2. GST Notification 82/2020-Central Tax0, date. 10-11-2020: CBIC seeks to make the Thirteenth amendment (2020) to the CGST Rules.201.
  3. GST Notification 83/2020-Central Tax, date. 10-11-2020: CBIC extends the time limit of filing GSTR 1
  4. GST Notification 84/2020-Central Tax, date. 10-11-2020: Option to file quarterly returns now available to taxpayers having turnover up to Rs. 5 Cr. notified by CBIC
  5. GST Notification 85/2020-Central Tax, date. 10-11-2020: CBIC notifies procedure to opt Quarterly GSTR 3B
  6. GST Notification 86/2020-Central Tax, date. 10-11-2020: Notification 76/2020-Central tax dated 15.08.2020 rescinded by CBIC, w.r.t to due dates of GSTR 3B for October 20 to March 21
  7. GST Notification 87/2020-Central Tax, date. 10-11-2020: ITC-04 due date for period July- September 2020 is extended till 30th November 2020
  8. GST Notification 88/2020-Central Tax, date. 10-11-2020: E-invoicing mandatory for taxpayers having aggregate turnover above Rs. 100 Cr from 01st Jan 2021

GST Collection – October 2020

The total GST revenue collected in October 2020 is Rs. 1,05,155 crore of which Central Goods and Services Tax (CGST) is Rs. 19,193 crore, State Goods and Services Tax (SGST) is Rs. 25,411 crores, Integrated Goods and Service Tax (IGST) is Rs. 52,540 crores (including Rs. 23375 crores collected on import of goods) & Cess is Rs. 8,011 crores (including Rs. 932 crores collected on import of goods).

Updates on GST Compliance:

  1. Auto-populated Form GSTR 3B (PDF) to be made available for the taxpayers, from the month of October 2020 onwards.
  2. Staggered filing of Form GSTR 3B for the tax periods from October 2020 till March 2021.
  3. CBIC enabled auto-population of e-invoice details into GSTR-1
  4. Quarterly Return filing & Monthly Payment of Taxes (QRMP) Scheme has been introduced for the taxpayers below the turnover of Rs. 5 Cr
  5. GST portal has been scaled up to handle 3 lakh taxpayers concurrently.
  6. The finance ministry on Friday said taxpayers are required to report in the annual GST return of 2018-19 only the values of transactions pertaining to that financial year.
  7. GSTN has also issued the Taxpayers guide to GST Errors and Solution.

E-Way Bill Updates

The GST Network plans to activate an automated system from 1st December 2020 that will block the generation of E-way Bills for non-filers of monthly GST return form GSTR-3B, irrespective of turnover limits.

E-invoicing Updates:

From 1st Jan 2021, the Government has made it mandatory for the taxpayers with aggregate turnover exceeding Rs. 100 Cr. (in any preceding financial year from 2017-18 onwards) to prepare e-invoice – Invoice with QR Code as per the Notification: 88/2020-Central Tax dated 10.11.2020.

As per sources, the Government plans to implement e-invoice for less than 100 Rs. Cr turnover companies as well in a few months time. As per Finance Secretary, monthly GST filing will not be necessary after the e-invoice system is in place.

GSTN on 16th Nov issued an advisory on e-invoicing for 100 CR companies and the way forward.

Other GST News

  1. Puducherry, Rajasthan, Telangana, Kerala and West Bengal- have opted for Centre’s Option-1 to meet the revenue shortfall arising out of Goods and Services Tax (GST) implementation.
  2. The government proposes to match the GST data mentioned in Form 26AS with the turnover numbers provided by taxpayers while filing income tax returns. IT profiling to help revenue dept nab fraudsters claiming fake GST credits however no extra compliance burden on taxpayers for GST turnover displayed in Form 26AS.
  3. The law committee of the GST Council has provided its recommendations with an aim to tighten compliance measures including the use of Aadhaar or Aadhaar-like biometric identification for new registrations, steps to identify businesses that pose a risk of revenue loss to the exchequer, use of income tax returns to verify the credentials of entrepreneurs seeking GST registration, and restriction on using tax credits from the purchase of raw materials to meet the final tax liability.
  4. Finance Ministry extends last date for filing applications under SVLDR Scheme for UT of Jammu & Kashmir and Ladakh.

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GST News Updates for the month of October 2020

  1. GST Notification 81/2020-Central Tax, dated. 10-11-2020: The new provisions of section 39 of the Central Goods and Services Tax Act, 2017 shall come into force from 10th Nov 20.
  2. GST Notification 82/2020-Central Tax0, date. 10-11-2020: CBIC seeks to make the Thirteenth amendment (2020) to the CGST Rules.201.
  3. GST Notification 83/2020-Central Tax, date. 10-11-2020: CBIC extends the time limit of filing GSTR 1
  4. GST Notification 84/2020-Central Tax, date. 10-11-2020: Option to file quarterly returns now available to taxpayers having turnover up to Rs. 5 Cr. notified by CBIC
  5. GST Notification 85/2020-Central Tax, date. 10-11-2020: CBIC notifies procedure to opt Quarterly GSTR 3B
  6. GST Notification 86/2020-Central Tax, date. 10-11-2020: Notification 76/2020-Central tax dated 15.08.2020 rescinded by CBIC, w.r.t to due dates of GSTR 3B for October 20 to March 21
  7. GST Notification 87/2020-Central Tax, date. 10-11-2020: ITC-04 due date for period July- September 2020 is extended till 30th November 2020
  8. GST Notification 88/2020-Central Tax, date. 10-11-2020: E-invoicing mandatory for taxpayers having aggregate turnover above Rs. 100 Cr from 01st Jan 2021

GST Collection – October 2020

The total GST revenue collected in October 2020 is Rs. 1,05,155 crore of which Central Goods and Services Tax (CGST) is Rs. 19,193 crore, State Goods and Services Tax (SGST) is Rs. 25,411 crores, Integrated Goods and Service Tax (IGST) is Rs. 52,540 crores (including Rs. 23375 crores collected on import of goods) & Cess is Rs. 8,011 crores (including Rs. 932 crores collected on import of goods).

Updates on GST Compliance:

  1. Auto-populated Form GSTR 3B (PDF) to be made available for the taxpayers, from the month of October 2020 onwards.
  2. Staggered filing of Form GSTR 3B for the tax periods from October 2020 till March 2021.
  3. CBIC enabled auto-population of e-invoice details into GSTR-1
  4. Quarterly Return filing & Monthly Payment of Taxes (QRMP) Scheme has been introduced for the taxpayers below the turnover of Rs. 5 Cr
  5. GST portal has been scaled up to handle 3 lakh taxpayers concurrently.
  6. The finance ministry on Friday said taxpayers are required to report in the annual GST return of 2018-19 only the values of transactions pertaining to that financial year.
  7. GSTN has also issued the Taxpayers guide to GST Errors and Solution.

E-Way Bill Updates

The GST Network plans to activate an automated system from 1st December 2020 that will block the generation of E-way Bills for non-filers of monthly GST return form GSTR-3B, irrespective of turnover limits.

E-invoicing Updates:

From 1st Jan 2021, the Government has made it mandatory for the taxpayers with aggregate turnover exceeding Rs. 100 Cr. (in any preceding financial year from 2017-18 onwards) to prepare e-invoice – Invoice with QR Code as per the Notification: 88/2020-Central Tax dated 10.11.2020.

As per sources, the Government plans to implement e-invoice for less than 100 Rs. Cr turnover companies as well in a few months time. As per Finance Secretary, monthly GST filing will not be necessary after the e-invoice system is in place.

GSTN on 16th Nov issued an advisory on e-invoicing for 100 CR companies and the way forward.

Other GST News

  1. Puducherry, Rajasthan, Telangana, Kerala and West Bengal- have opted for Centre’s Option-1 to meet the revenue shortfall arising out of Goods and Services Tax (GST) implementation.
  2. The government proposes to match the GST data mentioned in Form 26AS with the turnover numbers provided by taxpayers while filing income tax returns. IT profiling to help revenue dept nab fraudsters claiming fake GST credits however no extra compliance burden on taxpayers for GST turnover displayed in Form 26AS.
  3. The law committee of the GST Council has provided its recommendations with an aim to tighten compliance measures including the use of Aadhaar or Aadhaar-like biometric identification for new registrations, steps to identify businesses that pose a risk of revenue loss to the exchequer, use of income tax returns to verify the credentials of entrepreneurs seeking GST registration, and restriction on using tax credits from the purchase of raw materials to meet the final tax liability.
  4. Finance Ministry extends last date for filing applications under SVLDR Scheme for UT of Jammu & Kashmir and Ladakh.

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 GST News Updates for the month of October 2020

E-invoicing has been the most important GST news for this month. The e-invoicing mandate goes LIVE for taxpayers with turnover more than Rs. 500 CR from October 1, 2020. Few important e-invoicing notifications were released to clarify that taxpayers who have crossed Rs. 500 CR turnover in any FY after 2017 are to be covered under e-invoicing. This has been a revolutionary step towards transparency and embracing technology. This is a GST news highlight for the month and yes, the recent GST Council Meeting also brought in a lot of new changes. We have compiled the list of latest GST news and updates for the month here:

Important GST Notifications released in October 2020

  1. GST Notification 73/2020-Central Tax , dated 01-10-2020: 30 days of time period allowed generating IRN for any invoice prepared between 01.10.2020 to 31.10.2020.
  2. GST Notification 74/2020-Central Tax, dated 15.10.2020: Due dates of GSTR 1 Quarterly returns for tax period Oct 20 to Mar 21 is notified to be 13th of month following the quarter.
  3. GST Notification 75/2020-Central Tax, dated 15.10.2020: Due dates of GSTR 1 Monthly returns is notified for tax period Oct 20 to Mar 21.
  4. GST Notification 76/2020-Central Tax, dated 15.10.2020: Due date of filing GSTR 3B for tax period Oct 20 to Mar 21 notified to be 20th, 22nd, 24th of following month based on turnover and States / UT’s.
  5. GST Notification 77/2020-Central Tax, dated 15.10.2020:
  6. GST Notification 78/2020-Central Tax, dated 15.10.2020: For a taxpayer with turnover up to Rs. 5 Cr. mention 4 digit HSN Code and for turnover above Rs. 5 Cr. mention 6 digit HSN Code.

42nd GST Council Meeting – Expectations and Highlights

The 42nd GST Council Meeting was held on October 5th, 2020 chaired by Union Finance Minister Nirmala Sitharaman, via video conferencing. The meeting was attended by Shri. Anurag Thakur, Union Minister of State for Finance & Corporate Affairs besides Finance Ministers of States & UTs and Senior officers from Union Government & States.

Read the highlights here: 42nd GST Council Meeting 

Other Important GST Updates of the Month

  • Temporary Relief on E-invoicing: The government offered a temporary relief on E-Invoicing and QR Codes have been deferred on consumer invoices by 2 months i.e. till December 1, 2020. And for companies with a turnover more than Rs. 500 have also been given a temporary relief if they are not fully prepared for e-invoicing
  • Extension of Annual Return Due-Date FY19: The government extended the due-date for filing the Annual Return in GSTR-9 and GSTR 9C for 2018-19 by 1 month. Now the extended timeline is from 30.09.2020 to 31.10.2020.
  • Government announces 4% Growth in GST: After witnessing 6 months of steady decline the economy saw an upward trend. In September, the GST collections rose 4% to Rs 95,000 cr. So, the government is hopeful that the market will slowly returning to the pre-COVID levels.
  • GSTN clarified that carrying physical invoice copies is not required: Again a big relief to companies while movement of goods, the physical invoice copy is not mandatory but an electronic copy with the QR Code is needed for verification.
  • Small businesses can file their GST returns on quarterly basis: Government simplified filing returns for small businesses by allowing them to only file their returns quarterly. So, companies with aggregate annual turnover of less than Rs 5 cr. can file returns on a quarterly basis with monthly payments from January 1, 2021.
  • Sub-rule (4) of Rule 36 of CGST Rules, 2017: Clarification regarding the application of sub-rule (4) of Rule 36 of CGST Rules, 2017 for the months of February 2020 to August 2020 was provided by the GSTN.
    Blocking EWB Generation: The decision was made to block the E-way Bill or EWB generation facility for taxpayers having AATO over ₹ 5 Crores after 15th October 2020.
  • Regarding the new GST Return GSTR 2B: GSTN tweeted saying that the new return – ‘GSTR-2B’ for ITC Period September 2020 has been generated and is made available on the GST Portal.
  • Extension of GSTR 1/GSTR 3B: The facilities extended to the companies for filing GSTR 1/GSTR 3B with the EVC in place of DSC will be withdrawn from 1st November 2020 onwards.
  • Filing NIL GST of CMP-08: Filing Nil GST CMP-08 Form statement by SMS facility has been made available on the GST Portal.

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Latest GST News for the month of September 2020

The month of September had quite a few major changes and updates on the GST front. Let us go through all the top GST updates from the month of September 2020:

1.Important GST Notifications released in September 2020: 

1.1 Due date for GSTR-9 and GSTR 9C extended

Since GST annual compliance date was coinciding with implementation of e-invoicing, it was very difficult for taxpayers to manage both timely. Thus, there was a last moment announcement that the Due date for GSTR-9 and GSTR 9C was extended till October 31

Notification 69/2020-Central Tax – 30.09.2020 – Due date of GSTR 9/9C extended for FY 2018-19 to 31.10.2020

1.2 E-Way Bill Notification

CBIC has extended the time limit to 31st Oct, 2020 for issuing invoices in case of goods being sent or taken out of India on approval for sale or return, which falls during the period from March 20, 2020, to October 30, 2020 | GST Notification 66/2020.

Notification 66/2020-Central Tax ,dt. 21-09-2020- E-Way Bill Notification

1.3 E-invoicing notifications:

Here is a summary of all the notifications related to e-invoicing released in September 2020

  1. GST Notification 70/2020-Central Tax ,dt. 30-09-2020 : Turnover from FY 2017-18 shall be considered for determining applicability of E-Invoicing and e-invoice shall be generated for export transactions as well.
  2. GST Notification 71/2020-Central Tax ,dt. 30-09-2020: Requirement of Dynamic QR Code on B2C invoices is deferred to 1st December 2020.
  3. GST Notification 72/2020-Central Tax ,dt. 30-09-2020: Certain class of persons may be exempted from issuance of E-Invoice and QR code shall be embedded with IRN which can be reproduced for verification instead of physical copies.
  4. GST Notification 73/2020-Central Tax ,dt. 01-10-2020: 30 days of time period allowed to generate IRN for any invoice prepared between 01.10.2020 to 31.10.2020

2. GST Council Meeting and Compensation Cess

The centre had given two options in the 41st GST Council Meeting to the states to meet the shortfall of the compensation cess. Here are the options:

  1. Option I: The centre can aid Rs 97,000 crore to states as borrowings, through a special window by the RBI. This money can be repaid after 5 years on the collection of cess along with paying a reasonable rate of interest.
  2. Option II: Option two is that the states can borrow Rs 2,35,000 crore directly from the RBI.

The states had to evaluate both these options and choose one. In the 42nd GST Council meeting, the decision was made to extend Compensation Cess levy beyond June 2022. Compensation of ₹ 20,000 crores to be released to States towards loss of revenue during 2020-21. Additionally, an amount of approx. ₹ 25,000 CR towards IGST of 2017-18 was to be released soon.

3. GST Collection – September 2020

The GST collections in September amounted to Rs. 95,480 crore. Out of Rs 95,480 crore, Rs 17,741 crore is Central GST; Rs 23,131 crore is State GST; and Rs 47,484 crore Integrated GST, including Rs 22,442 crore collected on import of goods while Rs 7,124 crore is Cess, including Rs 788 crore on import of goods.

4. Important AAR/Orders/Judgements released in September 2020

  • Delhi High Court rejects plea challenging 5% GST on all varieties of fabrics.
  • GST to be imposed on wellness centres depending on services offered
  • ITC can be availed on Equipment, Furniture, Reagents/consumables used for Performing Test
  • 18% GST is applicable on Plastic Mechanical Liquid Dispenser
  • Patrator liable to take GST Registration and pay GST on Supply of Goods and Services
  • AAR ruled that 5% GST is not applicable on local transportation services.
  • No GST on Scanning OMR Flying Slip, Marks Foil, Attendance Sheet etc. provided to Educational Institution
  • The Karnataka AAR has adjudged that no deduction towards property taxes is allowed from the value of renting of immovable services (RIS). Further notional amount of interest on security deposit would be included in value, only if it influences the monthly rent.

Miscellaneous GST News updates:

  1. Due- Date extended for Anti-profiteering related compliance to 30th November 2020

The government has given time till November 30 for authorities, like DGAP, to complete anti-profiteering related compliance, which falls due between March 20 and November 29. In a notification, the CBIC said “where any time limit for completion or compliance of any action, by any authority,…under section 171 of the said Act, which falls during the period from the March 20 to November 29, 2020, and where completion or compliance of such action has not been made within such time, then, the time-limit for completion or compliance … shall be extended up to November 30, 2020”.

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Latest GST News for the month of August 2020

August 2020, the month of independence and festivals saw major GST changes and Updates. The government release quite a few important notifications that were to be implemented. Also, the news about the new returns to be scrapped has been shared. We have created an array of resources about all the Top GST News in this month. Let us go through it one by one:

New E-Invoice Schema Released:

New E-Invoice Schema is released as per Notification 60/2020.

E-Invoicing in India is going LIVE from 1st October 2020 as per Notification 61/2020.

E-invoice API Specification: Versions and Updates

With the new E-invoice APIs, E-way Bill generation flow has been enabled. Thus while sending invoice details for IRN generation, if transport details are included, E-way Bill Number (EWB) will get generated. The APIs available for the e-way bill are:

Generate IRN – Wherein transport details can be provided along with invoice details. Based on transport details are provided e-way bill number gets generated

Generate E-way Bill by using  IRN – From the IRP portal itself, an E-way Bill can be generated by providing the IRN

Read more: E-invoice API Specification

GST Data Based Lending – The Emerging Case for MSMEs Credit Appraisal

We updated an article about GST Data based lending and how it can benefit MSMEs.

Changes Expected in Current GST Returns –New Returns Scrapped

Another important article that we published is this one where all the changes that were expected are explained in detail. This is were the introduction to GSTR 2B was made. Read: Expected Changes in GST Returns

How to generate an E-way Bill using IRP?

E-invoicing and E-way Bill generation can take place simultaneously as well. The Government has streamlined the generation of E-way Bill with E-Invoicing. An IRP can be used to generate not only IRN but also E-way bills, for the documents which qualify. Thus, depending on the data sent, the IRP system will return IRN or E-way Bill Number or both. Read all about E-invoicing and E-way Bill here.

GSTR-2B – What, When, Where and How of it

The new GST Return – GSTR-2B is an auto-drafted Input Tax Credit ( ITC ) statement, recently introduced by GSTN to simplify Input Tax Credit Claim for taxpayers. It is a fixed statement and will be generated on 12th of every month for every recipient on the basis of the information furnished by their suppliers in their respective GSTR-1, GSTR 5 and GSTR 6.

Read all about GSTR 2B here.

E-invoicing and B2C Transactions | QR Code – FAQs

Understanding E-invoicing and QR code generation for B2C transactions has become quite important in the current scenario when the e-invoicing system is set to be mandatorily implemented for taxpayers with turnover over INR 500 cr. from October 1, 2020. Read all about E-invoicing and B2C Transactions here.

Is Reverse Charge Transaction covered under E-invoicing?

Companies were in a state of confusion on RCM transactions because when e-invoice goes live as in the case of Reverse Charge Mechanism (RCM), Purchaser issues self-invoice which is reported in GST returns and under E-Invoicing, Purchasers under no situation can generate Invoice Reference Number (IRN). To understand the rules of e-invoicing in relation to Reverse Charge Mechanism (RCM), read: E-invoicing for RCM.

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Top GST News for the month of November 2019

Prime Minister Narendra Modi once said, “Mera Desh Badal Raha hai”, and it stands true for all the aspects of national development, including GST.

Although the country is going through a major economic slowdown, the rise in GST collection and the updates introduced in the month of November have brought in a ray of hope. To add more to it, Finance Minister, SM Nirmala Sitharaman has shared an assurance with the taxpayers that the state of GST shall further improve in the months to come.

Here are the major GST NEWS updates from the month of November 2019.

1. CBIC Issues GSTR 3A Notice in Bulk for Non-Filers

With an aim to increase GST compliance in the country, the CBIC has come up with a new facility for the issuance of GSTR 3A. The new facility allows the CBIC issue non-compliance notices in bulk via email.

GSTR 3A is issued when the taxpayers are found guilty of not filing their GSTR 3B, GSTR 4, GSTR 5, GSTR 6, GSTR 7, GSTR 8, etc. Once a taxpayer receives the notice, he is required to file his returns within 15 days or face heavy penalties.

2. Robots to Check Tax Evasion in India

The Delhi government will soon start to use a machine-learning tool to fight tax evasion and identify bogus firms. Based on the initial estimates, the public exchequer is likely to gain up to Rs 300 crore annually by plugging the leaks. The use of AI has been adopted by several other countries to find tax evaders. For instance, in Denmark, the AI tools successfully hit 85 out of every 100 cases and 65 of these cases fall in the category of tax frauds, as reported by the World Bank in 2018.

3.     6% rise in GST Collection

After a steep downward curve in the past 2 months, the GST collection took a mighty rise in November. With an astonishing amount of INR 1.03 lakh crores, a rise of 6% was observed as compared to last year’s collection. November’s GST collection is also the third-highest amount to have been collected since the introduction of GST. And the credit to this rise goes to the GST officials who have been working tirelessly to enable better adherence to the tax rules by the taxpayers.

The Breakdown of the total GST collection of INR 1,03,492 crores includes CGST of INR 19,592 crore, SGST of INR 27,144 crore, IGST of INR 49,028 crore (INR 20,948 crore collection on imports) and Cess of INR 7,727 crore (INR 869 crore collection on imports).

GST Collection
GST Collection from june to November 2019

4. GST e-Invoicing Mandate if aggregate Turnover is more than INR 100 Crore

The eInvoicing system shall be introduced on a trial basis from January 1, 2020. During this trial period, businesses with an annual turnover exceeding INR 500 crores can voluntarily move to the new invoicing system. The same option will be available for businesses with a turnover of INR 100 crores and above from the month of February 2020.

The provision is being implemented to curb tax evasion in the country. The use of eInvoicing system will be made mandatory from April 2020 onwards.

5. Clarification on the scope of ‘Job-work’ services

As per Notification 11/2017 inserted with effect from 01-10-2019, the tax rate for item (id) under heading 9988 i.e “Services by way of job work other than specific entry” was changed from 18% to 12%. This led to doubts regarding item (iv) “Manufacturing services on physical inputs (goods) owned by others other than specifically specified” which had a tax rate of 18% and this was being considered as redundant by taxpayers. Hence a circular clarifying the same was issued.

As per Circular no. 126, dated 22 Nov 2019, under GST surveillance, job work has been defined under CGST Act as under ‘Job work means any treatment or process undertaken by a person on goods belonging to another registered person and the expression ‘job worker’ shall be construed accordingly.‘
Thus there is a clear demarcation of registered person between the entries (id) and (iv) mentioned above. On the above basis, if any service is provided by way of treatment or processing undertaken by a person on goods belonging to another registered person will be considered under the Job work service with a tax rate of 12%. It also means that any service is provided to Non-registered person by way of treatment or processing, then it will be covered under manufacturing service with a tax rate of 18%.

6. Chandigarh introduces a new intelligence unit to investigate each taxpayer’s compliance

A new intelligence unit has been introduced in Chandigarh’s tax administration. This department has been set up to target issues like tax evasion, and revenue collection. The intelligence team consists of six influential personnel including two CAs, one Excise and Taxation Officer (GST), an Advocate and members from a Chartered Accountant firm.

The inclusion of this new intelligence department in tax administration will help the Excise and Taxation Department to scrutinise the taxpayers operating in Chandigarh. Thus, allowing them to have a better descriptive of their previous tax compliance. Additionally, this new unit will extend complete information related to GST to the taxpayers and update them about the new policies issued by the Central Government from time to time. This will help the taxpayers be aware of all the policies of GST and in turn, enhance GST revenue.

IRIS GST, one of the leading GST Suvidha Provider (GSP) in India, is a one-stop solution for your GST Compliance (IRIS Sapphire) and E-way bill (IRIS Topaz) related issues. For any queries or to know more about our GST Compliance solutions, kindly drop us a mail at support@irisgst.com.

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Vaishali Dedhia

Vaishali Dedhia, a Chartered Accountant, has been working with IRIS for over 7 years and is currently the lead Functional Analyst and Subject Matter Expert for IRIS' GST offerings. She has also been assisting the clients in return filing related queries. Prior to GST, she was involved in compliance and data analysis for the US markets. In her leisure time, Vaishali likes reading novels, listening music and hanging around with friends, family.

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