GST News and GST 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. Top GST News 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 2021-22
Top GST News for the month of December 2021
The last month of the year 2021 – December went by in a jiffy! As we all are in the holiday spirit and are all geared up to welcome the new year, the government has released quite a few new GST updates recently that we need to take into account. There’s GSTR 9 due date extension, Provisional ITC changes and lots more! Here are all the latest GST news and updates from the month of December 2021 collated for you. Let’s dive in…
Important GST Notifications released in December 2021
- GST Notification 37/2021: Amends heading and description in Form DRC-03; Rule 137
- GST Notification 38/2021: Seeks to bring into force certain sub-rules of Rule 2 of the Central Goods and Services Tax
- GST Notification 39/2021: Seeks to bring into force certain clauses of Finance Act, 2021 with effect from 1st January 2022
- GST Notification 40/2021: Seeks to make amendments (Tenth Amendment, 2021) to the CGST Rules, 2017
GST Collection – December 2021
The gross GST revenue collected in the month of December 2021 is Rs 1,29,780 crore, of which CGST is Rs 22,578 crore, SGST is Rs 28,658 crore, IGST is Rs 69,155 crore (including Rs 37,527 crore collected on import of goods) and cess is Rs 9,389 crore (including Rs 614 crore collected on import of goods).
Updates on GST Compliance:
- GSTR 9: The due dates to file GSTR 9 & GSTR 9C for the financial year 20-21 has been extended to February 28 2022, from December 31, 2021.
- The finance ministry made an announcement that the 46th GST Council Meeting is to be held on 31st December 2021.
- Aadhaar Authentication: CBIC released an advisory related to the Aadhaar authentication for filing of GST refund/Revocation of cancelled applications of registration from 1st January 2022.
- New Information Portal: CBIC has developed a brand new web portal for taxpayers for getting all the latest information regarding all the notifications, circulars and so on.
- GSTN has made several new module-wise functionalities for GST stakeholders on the official portal.
- The government is inviting Indian taxpayers to become IRP partners of the GST network. The last date of registration is 15th Jan 2022.
- HSN: HSN 2022, the new revised edition of HSN published by the World Customs Organisation (WCO) will come into force from 1st Jan 2022. Generally, WCO does this revision once every 5 years. The HSN system of WCO forms the basis for the Customs tariffs in India. The Fifth Schedule to the Finance Act, 2021 has incorporated the changes necessary to align Customs Tariff to revised HSN 2022, with effect from 01.01.2022.
- Provisional ITC: As per GST notification 39/2021, taxpayers can claim ITC only if the same invoice/debit note is reflected in GSTR 2A/2B. To explain even further, if you have an invoice in your purchase register and the same is not uploaded by your vendor in their GSTR 1, you cannot claim Input Tax Credit from 1st January 2022. Read – Changes in Provisional ITC for more information.
46th GST Council Meeting Highlights
The 46th GST Council Meeting was held on 31st December 2021 in New Delhi at 11.00 am. The meeting was chaired by Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman and was accompanied by other council members of states.
The Finance Minister described it as an ‘emergency meeting’ held to discuss and defer the rates on textile after receiving several triggers from different states. The final trigger was a letter from the Finance Minister of Gujarat. Only one decision has been taken in the 46th GST Council Meeting regarding the deferment of the verdict on textile rates in the 45th GST Council Meeting.
Read the highlights of 46th GST Council Meeting here.
Changes Applicable from 1st January 2022
From all the changes that indirect taxation has undergone this year, it seems like the GST rules are getting tighter in 2022. Read all the important GST changes being applicable from 1st January 2022 that you need to be aware of! Link: Important GST Changes Applicable from 1st January 2022.
Top GST News for the month of November 2021
November 2021 witnessed the celebration of one of the biggest festivals in the country – Diwali. And, Diwali is synonymous with shopping, thus a great time for businesses throughout the country. Also, along with the festivities, the COVID cases in most parts of India were in control. On the GST front, there were a few changes and GST updates that were released. Sharing all the latest GST news and GST updates from the month here…
Important GST Notifications and Circulars released in November 2021
- GST Circular No 165/2021 dated 17-11-2021: Clarification regarding GST rates & classification (goods) based on the recommendations of the 45th GST Council
GST Collection – November 2021
The gross GST revenue collected in the month of November 2021 is Rs 1,31,526 crore.
Updates on GST Compliance:
- GST Rate hike: The Central Board of Indirect Taxation and Customs (CBIC) recently released a new GST notification 14/2021 related to the GST rate hike on fabrics, apparel, and footwear from 5%. This change will come into effect from 1st January 2022 onwards. Read the full update here: GST Rate hike on apparel, footwear and fabrics.
- GSTR 2B: The GSTIN once again updated the manual advisory for the auto-drafted ITC statement GSTR 2B form for the normal taxpayer.
- Central Board of Indirect Taxation and Customs department has notified the fresh instructions on the issuance of SCNs.
- Cancellation of Registration: There is an update related to form REG-16 on the government portal. Taxpayers can now withdraw their application for cancellation of registration (filed in Form REG-16) unless the tax officer has initiated action on it.
- GSTR 1 Filing Improvements: The government has updated and improved the GSTR 1 filing process making it more user friendly. You can read about the upcoming expected changes in GSTR 1 filing.
Top GST News for the month of October 2021
October 2021 was a good month for businesses citing the festive season. Sharing all the latest GST updates and GST news from the month here…
Important GST Notifications and Circulars released in October 2021
- GST Circular No 163/19/2021: Clarification regarding GST rates & classification (goods) based on the recommendations of the 45th GST Council
- GST Circular 164/2020/2021: Clarifications regarding applicable GST rates & exemptions on certain services
Read the explanation of this circular here: Summary of GST Circular 164
GST Collection – October 2021
The gross GST revenue collected in the month of October 2021 is Rs. 1,30,127 crore of which CGST is Rs. 23,861 crore, SGST is Rs. 30,421 crore, IGST is Rs. 67,361 crore including Rs. 32,998 crore collected on import of goods and Cess is Rs. 8,484 crore including Rs. 699 crore collected on import of goods.
Updates on GST Compliance:
Availability of Input Tax Credit (ITC) for FY 2020-21: As per Section 16(4) of CGST Act, 2017, no taxpayer can take ITC for records (invoices and debit notes) for the supply of goods or services (or both) for FY 2020-21 after the due date of furnishing the return for the month of September 2021. In view of the same, the following may kindly be noted:
- Records (invoice or debit notes) for FY 2020-21 reported in GSTR-1 after the due date of GSTR-3B of September 2021 will not reflect as “ITC Available” in GSTR-2B of the recipients. Such records will reflect in “ITC Not Available” section of GSTR-2B and such ITC shall in turn not be auto-populated in GSTR-3B.
- Records (invoice or debit notes) for FY 2020-21 reported in GSTR-1 after the due date of GSTR-3B of September 2021 will also not reflect as “ITC as per GSTR-2A” in Table-8A of GSTR-9 of the recipients.
Advisory for taxpayers on Form GSTR-2B: Form GSTR-2B indicates the availability and non-availability of input tax credit to the taxpayer against each document filed by their suppliers. As per this new advisory, GSTR 2B will be made available to the taxpayers in the ‘afternoon of 14th of every month’.
E-way Bill Updates:
Resumption of Blocking of E-Way Bill (EWB) generation facility: The government had temporarily suspended blocking of E-way Bill generation for taxpayers citing the pandemic. However, the blocking of the EWB generation facility has now resumed. The system will check the status of returns filed in Form GSTR-3B or the statements filed in Form GST CMP-08, and block the generation of EWB in cases of:
- Non-filing of two or more returns in Form GSTR-3B (Monthly/Quarterly frequency as applicable) for the tax periods up to June 2021 and
- Non-filing of two or more statements in Form GST CMP-08 for the quarters up to April to June 2021.
Read details here: Blocking Of E-way Bill Generation Facility Resumed
Latest GST News:
- The ministry of finance released the PR related to the shortfall in GST compensation to states/ UTs. The Indian government has given INR 40,000 crores to UTs/ States.
- The Maharashtra bench of the GST Authority for Advance Ruling (AAR) has rejected an application filed by a Mumbai-based private company as it was not the supplier of goods or services but the recipient.
- As per the Uttarakhand AAR ruling Wellness Centres too are under GST
- As per the Gujarat Authority for Advance Ruling (AAR) GST will not be applicable for canteen service providers for employees .
Top GST News for the month of September 2021
With a decent number of the population being vaccinated, several states have completely lifted the lockdown and businesses are flourishing again. Here’s sharing all the latest GST news and GST updates from the month of September 2021 for you…
Important GST Notifications and Circulars released in September 2021
- GST Notification 36/3021-central tax-dated 24-09-2021 – Seeks to amend Notification No. 03/2021 dated 23.02.2021.
- GST Circular 159/13/2021: Clarification on doubts related to the scope of “Intermediary”
- GST Circular 160/16/2021: Clarification in respect of certain GST related issues
- GST Circular 161/17/2021: Clarification relating to the export of services-condition (v) of section 2(6) of the IGST Act 2017
- GST Circular 162/18/2021: Clarification in respect of refund of tax specified in section 77(1) of the CGST Act and section 19(1) of the IGST Act.
GST Collection – September 2021
The gross GST revenue collected in the month of September 2021 is Rs 1,17,010 crore of which CGST is Rs 20,578 crore, SGST is Rs 26,767 crore, IGST is Rs 60,911 crore including Rs 29,555 crore collected on import of goods and Cess is Rs 8,754 crore including Rs 623 crore collected on import of goods.
Updates on GST Compliance:
- On-demand fetching of Bill of Entry details from ICEGATE Portal: To help importers of goods, and recipients of supplies from SEZ, search Bill of Entry details, which did not auto-populate in GSTR 2A, a self-service functionality has been made available on the GST Portal that can be used to search such records in GST System, and fetch the missing records from ICEGATE
Union Finance Minister Nirmala Sitharaman chaired the 45th GST Council meeting held on 17th September 2021, in Lucknow, Uttar Pradesh. This was the first meeting offline meeting after the outbreak of the deadly coronavirus pandemic. Prior to this, all the council meetings have been conducted via video-conferencing from March 2020 onwards. There are a lot of changes, updates, GST rate changes for goods and services that are made in the council meeting. You can read the complete detailed update here: 45th GST Council Meeting Highlights.
E-way Bill Updates:
Advisory for Taxpayers regarding Generation of E-way Bill where the principal supply is Supply of services: The CBIC has released an advisory related to the generation of E-way Bill for taxpayers where the main supply is classified as a service.
In cases where the principal supply is purely a supply of service and involving no movement of goods, the e-way bill is not required to be generated.
However, in cases where along with the principal supply of service, movement of some goods is also involved, an e-way bill may be generated. Such situations may arise in cases of supply of services like printing services, works contract services, catering services, pandal or shamiana services, etc. In such cases, the e-way bill may be generated by entering the details of HSN code of the goods, along with SAC (Service Accounting Code) of the services involved.
Invoice data on NIC will be strictly available for 2 days: NIC had communicated that the 2-day time limit would be strictly enforced for the e-invoice data. It has been already implemented but now with strict enforcement of the rule, the data cannot be fetched after 2 days nor the JSON file would be available for download from the NIC portal.
Penalty for non-generation of B2C QR Codes: Companies with a turnover of Rs. 500 cr. could now attract a penalty up to Rs. 50,000 for non-generation of dynamic QR codes for B2C transactions with effect from 1st October 2021. The penalty for non-compliance with Notification 14/2020 was unconditionally waived till 30 September by Notification 28/2021 Central Tax, in supersession of Notification 89/2020 – Central Tax which granted a conditional waiver from penalty.
Latest GST News:
- CGST and Central Excise officials arrested the proprietor (SR Enterprises ) who availed illegal ITC of Rs. 6.46 crore/- The proprietor is accused of creating fake invoices to avail ITC.
- The Finance Ministry has set up two panels that will look into issues like rationalisation of GST slabs and further ease compliance for taxpayers.
- Maharashtra bench of AAR has ruled that 18 % GST would be applicable on managerial and leadership services by the corporate office to its group companies/construction sites registered in different states.
Top GST News for the month of August 2021
Sharing all the important GST news and updates from August 2021 here. Let’s sum up the month on a fairly good note as the government has lifted the lockdown in most parts of India and COVID cases seem in control. Dive in for all the latest GST news updates…
Important GST Notifications and Circulars released in August 2021
- GST Notification 33/3021-central tax-dated 29-08-2021 – Seeks to extend FORM GSTR-3B late fee Amnesty Scheme from 31.08.2021 up to 30.11.2021.
- GST Notification 34/3021-central tax-dated 29-08-2021 – Seeks to extend timelines for filing of the application for revocation of cancellation of registration to 30.09.2021, where the due date for filing such application falls between 01.03.2020 to 31.08.2021, in cases where registration has been cancelled under clause (b) or clause (c) of section 29(2) of the CGST Act.
GST Collection – August 2021
The GST Collection of August 2021 is Rs. 1,12,020 crore. This a gross amount that has been collected in August of which CGST is Rs. 20,522 crore, SGST is Rs. 26,605 crore, IGST is Rs. 56,247 crore (including Rs. 26,884 crore collected on import of goods) and Cess is Rs. 8,646 crore (including Rs. 646 crore collected on import of goods).
Updates on GST Compliance:
- Form GSTR 1: The Central Board of Indirect Taxation and Customs has released an advisory for filing of Form GSTR 1. Since taxpayers were not filling table 12 of the form correctly because of 3rd party offline utilities thus CBIC has advised to taxpayers for using the latest version (3.0.4) GSTR 1 offline tool, provided by GSTN.
- Form GSTR 9: The annual return form is available for e-Filing (financial year 2020-21) on the GST official web portal.
- HSN and GSTR 1 filing: In accordance with Notification No. 78/2020 – Central Tax, dated October 15, 2020, taxpayers need to declare Harmonised System of Nomenclature (HSN) Code of Goods and Services supplied by them on raising of tax invoices, with effect from 1st April 2021.
- Implementation of Rule-59(6) on GST Portal: Rule-59(6) of CGST Rules, 2017; inserted vide Notification No. 1/2021 dated 1st January 2021, provides for restriction in the filing of GSTR-1 in certain cases.
- Revocation application for cancellation of GST registration timeline: The due date of filing of an application for revocation of cancellation of registration falls between 1st March, 2020 to 31st August, 2021, the time limit for filing such application for revocation of cancellation of registration has been extended up to 30th September, 2021.
- Multiple New Functionalities released on the GST Portal: New functionalities related to check and update bank account details, module wise new functionalities related to Registration, Returns, Advance Ruling, Payment, Refund to name a few.
E-way Bill Updates:
The latest GST advisory released on 4th August 2021 states that the blocking of the E-way Bill (EWB) generation facility will resume after 15th August 2021 as per Rule 138 E (a) and (b) of the CGST Rules, 2017. Get the full information here: Blocking Of E-way Bill Generation Facility Resumed.
Latest GST News:
- A new functionality has been enabled on the official GST Portal to modify Annual Aggregate Turnover where taxpayers have calculated it wrongly.
- The Maharashtra Authority of Advance Ruling (AAR) stated that GST will be applicable on the Repair and Maintenance Fund and Sinking Fund. To clarify it further, if the total value of charges exceeds the limit of Rs. 7500/- per member per month, then the total value of the amount would be held as taxable to levy GST thereon and GST would be applicable @18%.
- The Tamil Nadu Appellate Authority of Advance Ruling (AAAR) stated that 28% GST payable on Motor Car Air Springs (shock absorber).
- Ready-to-cook dosa, idli, porridge mix, etc. sold in powdered form are taxable at 18% – AAR Tamil Nadu.
- Gift and cashback vouchers will now attract 18% GST – AAR Karnataka.
- GSTN conducted several webinars on ‘Complying with Audit by Taxpayers’.
Top GST News for the month of July 2021
In an attempt to reduce the rising COVID cases, the entire month of July 2021 in India went by in partial/ complete lockdown in different states. Staying abreast with what’s new is important, especially during current times when businesses are affected so much. There have been a few GST news updates this month that we have compiled here for your reference.
Important GST Notifications and Circulars released in July 2021
- GST Notification 29/2021-Central Tax, dated. 30-07-2021 – GSTR 9C can now be furnished through self-certification instead of audit report from CA or Cost Accountants w.e.f 1st August 2021
- GST Notification 30/2021-Central Tax, dated. 30-07-2021 – CBIC exempts taxpayers having turnover up to Rs. 5 Crores from furnishing GSTR 9C for FY 2020-21 and onwards
- GST Notification 31/2021-Central Tax, dated. 30-07-2021 – CBIC exempts taxpayers having AATO up to Rs. 2 crores from the requirement of furnishing the annual return for FY 2020-21
- GST Circular 157/13/2021 – Clarification issued w.r.t extension of limitation under GST Law in terms of Supreme Court’s Order dated 27.04.2021
GST Collection – July 2021
The gross GST revenue collected in the month of July 2021 is Rs. 1,16,393 crore of which CGST is Rs. 22,197 crore, SGST is Rs. 28,541 crore, IGST is Rs. 57,864 crore including Rs. 27,900 crore collected on import of goods and Cess is Rs. 7,790 crore including Rs. 815 crore collected on import of goods.
Updates on GST Compliance:
- Form GSTR 9: CBIC has enabled a new functionality to discharge GST Liability on GSTR-9C reconciliation statement.
- QR Code for B2C invoices: The Central Board of Indirect Taxes and Customs updated via Twitter that a fine (under section 125 of CGST Law) will NOT be levied for non-generation of Dynamic QR (Quick Response) Code on ‘Bussiness to Customer’ Invoice amidst 1st Dec 2020, to 30th September 2021.
- Important changes related to QRMP Scheme: Recently, the government made a few changes related to QRMP Scheme for the taxpayers.
- Auto population of GSTR-3B liability from IFF and Form GSTR 1
- Nil filing of GSTR-1 (Quarterly) through SMS
- Impact of cancellation of registration on liability to file GSTR-1
Read these changes in detail here: Important changes related to QRMP Scheme
- Negative Liability in GSTR-4: The Central Board of Indirect Taxes and Customs gave clarity and offered a solution for the filing of annual returns by composition taxpayers regarding dealing with negative liability in GSTR 4. Read details in this article: All about GST Form GSTR-4.
- Multiple New Functionalities released on the GST Portal: New functionalities related to Annual Aggregate Turnover (AATO), Functionality to check and update bank account details, module wise new functionalities related to Registration, Returns, Advance Ruling, Payment, Refund to name a few.
Top GST News for the month of June 2021
There are all the important GST news and updates from the month of June 2021 compiled it neatly for you at one single place. Dive in…
Important GST Notifications released in June 2021
- GST Notification 16/2021-Central Tax, dated. 01-06-2021: Effective from 1st June 2021 interest on delayed payments will be chargeable on net tax liability i.e. on the amount of the tax paid in cash.
- GST Notification 17/2021-Central Tax, date 01-06-2021:The due date of filing GSTR 1 is extended for the month of May 21 to 26th June 2021
- GST Notification 18/2021 – Central Tax dated 1-06-2021: Interest waived and lowered for the delay in filing GSTR-3B for a specified time for tax period March 21 to May 21
- GST Notification 19/2021 – Central Tax dated 1-06-2021: For tax period Jul 17 to Apr 21 conditional waiver of late fees announced, for tax period Mar 21 to May 21 waiver for the specified period announced and late fees rationalization announced on prospective GSTR 3B fining
- GST Notification 20/2021 – Central Tax dated 1-06-2021:For delays in filing GSTR 1 of upcoming tax periods, late fees on small taxpayers are being rationalized basis the tax liability/ turnover of the taxpayers
- GST Notification 21/2021 – Central Tax dated 1-06-2021: Maximum late fees applicable for delay in filing GSTR 4 from FY 2020-21 is rationalized
- GST Notification 22/2021 – Central Tax dated 1-06-2021: Late fees applicable for delay in filing GSTR 7 from the month of June-21 is rationalized
- GST Notification 23/2021 – Central Tax dated 1-06-2021:Government departments and local authorities are exempted from generating e-invoices
- GST Notification 24/2021 – Central Tax dated 1-06-2021: Relaxations under section 168A of the CGST Act: Time limit for completion of various actions, by any authority or by any person, under the GST Act, which falls during the period from 15th April, 2021 to 29th June, 2021, to be extended up to 30th June, 2021, subject to some exceptions.
- GST Notification 25/2021 – Central Tax dated 1-06-2021: Due date for filing GSTR-4 for FY 2020-21 is further extended to 31.07.2021
- GST Notification 26/2021 – Central Tax dated 1-06-2021:Due date for filing ITC 04 for the quarter ended Mar 21 is further extended to 31.07.2021
- GST Notification 27/2021 – Central Tax dated 1-06-2021: Rule 36(4) of claiming provisional ITC is now applicable cumulatively to April, May, and June 21. The date of reporting outward supplies using IFF also extended to 28th June 21
GST Notification 28/2021 – Central Tax dated 30-06-2021: Penalty payable for noncompliance QR Code on B2C transactions waived further till 30th September 2021, subject to compliance from 1st October 2021
Important GST Circulars released in June 2021
- GST Circular No 149/2021 dated 17-06-2021: Catering services provided to educational institutions including Aganwadis shall be exempted from GST irrespective of the fact that such services are sponsored by Govt grants or corporate donations
- GST Circular No 150/2021dated 17-06-2021: GST is not exempt on the activity of construction of road where considerations are received in deferred payment (annuity).
- GST Circular No 151/2021 dated 17-06-2021: GST on supply of various services by Central and State Board (such as National Board of Examination) clarified
- GST Circular No 152/2021 dated 17-06-2021: GST @ 18% is applicable on construction services provided to a Government Entity, in relation to construction such as of a Ropeway on a turnkey basis
- GST Circular No 153/2021 dated 17-06-2021: Clarification issued w.r.t GST on milling of wheat into flour or paddy into rice for distribution by State Governments under PDS
- GST Circular No 154/2021 dated 17-06-2021:GST is exempt on service supplied by Central or State Govt. to their undertakings or PSUs by way of guaranteeing loans taken by them
- GST Circular No 155/2021 dated 17-06-2021: Laterals/parts to be used solely or principally with sprinklers or drip irrigation system, which are classifiable under heading 8424, would attract a GST of 12%, even if supplied separately. However, any part of general use, which gets classified in a heading other than 8424, shall attract GST @ 6%
- GST Circular 156/12/2021 dated 17-06-2021: Clarifications issued with respect to QR Code generation on B2C Invoices and compliance of notification 14/2020
GST Collection- June 2021
The gross GST revenue collected in the month of June 2021 further dropped to Rs. 92,849 crore. of this gross amount, CGST is Rs. 16,424 crore, SGST is Rs. 20,397, IGST is Rs. 49,079 crore (including Rs. 25,762 crore collected on import of goods) and Cess is Rs. 6,949 crore (including Rs. 809 crore collected on import of goods).
In June, the GST collection was taken into consideration from domestic transactions between 5 th June to 5 th July 2021 since taxpayers were given various relief measures.
Extension in dates of various GST Compliances
GST Due dates have been extended recently through the 43rdGST Council meeting as COVID Relief measures. The Relief has also been provided for GST Compliance as relaxation of penal interest and late fees. These announcements were followed by a bulk of GST due date extension notification 2021 to provide legal validity.
Extension of due dates notified via GST notification 16/2021, 17/2021, 25/2021, 26/2021 and 27/2021 . In addition to 1st June 2021 notifications, there were several notifications announced on 1st May 2021 as well which are mentioned above.
To check all the GST news updates regarding extended due dates and understand them in detail, please read: Updates in GST Return Due Dates.
New Covid 19- Relief Measures
The country is once again under lockdown citing the rising COVID-19 cases. Considering the prolonged pandemic, the government is taking measures in all areas for the well-being of the citizens. The finance ministry has been updating the new norms in multiple areas including GST. The Finance Ministry made new announcements and notifications in the month of May, followed by an update to the same in 43rd GST Council meeting and issue of new notifications on 1st June 2020. These measures are in the form of late fee waiver, interest waiver on GST Due dates and so on.
To read all the new Covid-19 – Relief measures in detail, read here: Covid-19 Relief Measures
44th GST Council Meeting
The 44th GST Council Meeting was held on June 12th, 2021 via video conference by our finance minister Nirmala Sitharaman in New Delhi. The meeting was also attended by the union minister of state (MoS) for finance Anurag Thakur and other finance ministers of states and Union territories (UTs). This meeting was held shortly after the 43rd GST council meeting to finalize the points proposed in it regarding GST rates reduction on medical and Covid-19 related equipments. Read highlights of the meeting here: 44th GST Council Meeting – Highlights
Updates on GST Compliance:
- Waiver of interest and late fee for normal taxpayers (filing returns on a monthly or quarterly basis) and composition taxpayers (Part1 and Part 2). We have mentioned all of these waiver details in our Updates in GST Return Due Dates article and the Covid Relief article.
- Relief to taxpayers, regarding late fees, for the delay in filing Form GSTR-3B returns. Details are mentioned in the Updates in GST Return Due dates article.
- Table-12 of GSTR-1 (Advisory on PDF): Table-12 of GSTR-1 pertains to the data related to the HSN-code wise supplies of goods & services declared in the aforesaid GSTR-1. It has been reported that in the GSTR-1 for the tax period of May 2021, the ‘Total Invoice value’ field in the preview PDF is displaying a value as ‘0’ (zero) instead of N.A, in the cases where the taxpayer has not reported any value in the concerned Table-12 of GSTR-1. Taxpayers have been informed to kindly proceed with their filing of GSTR-1 & ignore this error for the time being, till it is being fixed.
- New functionalities deployed for GST Stakeholders on the official GST Portal
A new set of clarifications regarding the applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance of notification 14/2020–Central Tax dated 21st March, 2020 –Reg. have been released. These new clarifications and updates were communicated via GST Circular 156/12/2021 dated 17-06-2021.
Top GST News for the month of May 2021
The entire month of May 2021 went in lockdown for most states in India. The vaccination scenario is rather slow and the pressure of the rising cases is supremely high. Thus, the overall impact of the present situation on the economy of the country is a known phenomenon. In this article, we have compiled all the latest information and GST news, GST updates from May for your reference. Read here…
Important GST Notifications and circulars released in May 2021
- GST Notification 08/2021-Central Tax, dated. 01-05-2021 – For GSTR 3B of Mar and Apr, interest is waived off for 15 days where taxpayers are having turnover up to 5 Cr. and is reduced to 9% for next 15 days, but where turnover exceeds 5 Cr. interest @ 9% is applicable for 15 days
- GST Notification 09/2021-Central Tax, dated. 01-05-2021 – Late fees are waived for March and April GSTR 3B for 15 days where turnover is up to 5 Cr. and 30 days where turnover exceeds 5 Cr.
- GST Notification 10/2021-Central Tax, dated. 01-05-2021 – Due date of GSTR 4 is extended to 31st May 21 for FY 20-21 from 30th Apr 21
- GST Notification 11/2021-Central Tax, dated. 01-05-2021 – Furnish ITC-04 of Mar 2021 quarter by 31st May, 2021 instead of 25th April 2021
- GST Notification 12/2021-Central Tax, dated. 01-05-2021 – Due date of filing GSTR 1 for the month of April 2021 is extended to 26th May 2021
- GST Notification 13/2021-Central Tax, dated. 01-05-2021 – Details of IFF for Apr 21 can be furnished from 1st May to 28th May 21
- GST Notification 14/2021-Central Tax, dated. 01-05-2021 – Timeline for all other proceedings, asset order, notices, etc. whose last date of completion falls between 15th April to 30th May is extended to 31st May
- GST Notification 15/2021-Central Tax, dated. 18-05-2021 – The fourth amendment rules 2021 introduced to amend refund rules notified by CGST 2017 rules and has also introduced new Form RFD-01W and RFD 07 Part A & B
- GST Circular No 148/2021 – Prescribes Standard Operating Procedure (SOP) for implementation of the provision of extension of time limit to apply for revocation of cancellation of registration under section 30 of the CGST Act, 2017 and rule 23 of the CGST Rules, 2017.
43rd GST Council Meeting
The much-awaited ‘43rd GST Council Meeting’ was held on the 28th of May 2021 from 11.00 am onwards. Finance Minister Nirmala Sitharaman chaired the GST Council Meeting from New Delhi via video conferencing. The meeting was attended by MOS Anurag Thakur along with Finance Ministers of States and UTs and Sr. Officers from Union Government and States. There were several GST updates and announcements related to GST Compensation Cess, waiver of taxes, and GST concessions on critical medical and health care equipments, vaccines, etc.
GST Collection – May 2021
The gross GST revenue collected in the month of May 2021 saw a slight drop. It amounted to Rs. 1,02,709 crore of which CGST is Rs. 17,592 crore, SGST is Rs. 22,653, IGST is Rs. 53,199 crore (including Rs. 26,002 crore collected on import of goods) and Cess is Rs. 9,265 crore (including Rs. 868 crore collected on import of goods).
43rd GST Council Meeting Updates:
The much-awaited ‘43rd GST Council Meeting’ is taking place on the 28th of May 2021 from 11.00 am onwards. Finance Minister Nirmala Sitharaman will chair the GST Council Meeting from New Delhi via video conferencing. The meeting will be attended by MOS Anurag Thakur along with Finance Ministers of States and UTs and Sr. Officers from Union Government and States. This is the very first GST Council meeting of 2021; after the deadly second wave of COVID-19 hit the country. Read here the expectations and assumptions from 43rd GST Council Meeting.
Updates on GST Compliance:
- Module wise new functionalities deployed on the GST Portal for taxpayers – Visit the GST Portal for more details.
- Extension of the due date of filing Revocation application of Cancellation: In view of Notification No. 14/2021 dated. 01.05.2021, the timeline for filing the ‘Application for Revocation of Cancellation’ has been extended for those applicants, for whom the due date to file the same falls between 15 April to 30th May, 2021. Now, they can file the said application till 31st May, 2021
- Generation of GSTR 2B for April 2021: Rule-60(7) of CGST Rules-2017 prescribes for generation of the auto-drafted statement containing the details of input tax credit in GSTR-2B for counter-party recipients. As per Rule-60(8) of CGST Rules-2017, GSTR-2B shall be made available to the recipients after the Due date of filing GSTR-1/IFF by the suppliers. Notification No. 12/2021-CT and 13/2021-CT, both dated 1st May 2021 extend the Due date of GSTR-1 and IFF for April 2021, to 26th and 28th May 2021, respectively. Consequently, GSTR-2B for April 2021 will be generated after the Due dates, on 29th May 2021.
- Taxpayers willing to file GSTR-3B for April 2021 before GSTR-2B generation may do so on a self-assessment basis. Notification No. 13/2021-CT dated 01.05.2021 prescribes a cumulative limit under Rule-36(4) for ITC claimed in periods April & May 2021
Top GST News for the month of April 2021
The month of April witnessed yet another lockdown throughout the country. Some states imposed a partial lockdown while a few others held a complete lockdown considering the rising COVID-19 cases. In this article, we have compiled all the latest information and GST updates from April for your reference. So, let us dive straight into all the important GST news right here…
Important GST Notifications and circulars released in April 2021
- GST Notification 07/2021-Central Tax, dated 27-04-2021 – Companies can file GSTR 1/ IFF & 3B using EVC instead of DSC from 27th Apr to 31st May 2021
GST Collection – April 2021
The gross GST revenue collected in the month of April’ 2021 is at a record high of Rs. 1,41,384 crore of which CGST is Rs. 27,837 crore, SGST is Rs. 35,621, IGST is Rs 68,481 crore (including Rs. 29,599 crore collected on import of goods) and Cess is Rs. 9,445 crore (including Rs. 981 crore collected on import of goods). The GST collections for the month of April 2021 are the highest since the introduction of GST.
Updates on GST Compliance:
- The central board of indirect taxes and customs released an update regarding GSTR-1 (Q) filing for Jan-Mar 2021 under the new QRMP Scheme.
- The CBIC department has provided guidance for the QRMP scheme regarding monthly payments and quarterly GST Return filing for the taxpayers. It states all taxpayers having aggregate turnover up to Rs 5 crores, under QRMP Scheme (w.e.f. 01.01.2021 onwards) who have opted for quarterly filing, are required to furnish return on a quarterly basis, along with payment of tax on a monthly basis. Taxpayers availing QRMP Scheme are required to pay the tax due, in each of the three months of the quarter, by depositing the due amount. Check details on the GST Portal.
- There is another update for the QRMP Scheme. It is related to formsGSTR-1, GSTR-3B, and matching offline tool.
- Auto-generation in GSTR 2B and auto-population of ITC in GSTR 3B form enabled for the QRMP Scheme taxpayers.
- For Quarterly taxpayers, the tile for Jan and Feb is being removed. The taxpayers are required to file GSTR3B for the quarter Jan-Mar, 21 using tile for Mar, 21.
New GST Functionalities:
- GSTIN has made several module-wise new functionalities for GST stakeholders on the official GST portal from January 2020 to March 2021.
- Now, taxpayers can view GST Returns of the last 5 return periods with a new feature of the ‘Return Calendar’ on their GST dashboard.
- GSTN has issued an advisory on the auto-population of e-invoice details into GSTR 1.
Clarification on reporting 4-digit/6-digit HSNs:
- It may be noted that specific 6-digit HSNs, as available in the HSN/Customs Tariff (with the corresponding description of goods) are allowed in the system. It also follows that the declaration of HSN at 4/6 Digits has to be out of valid HSN codes only. However, there are instances that some taxpayers are trying to report truncated first 6-digits out of an otherwise valid 8-digit HSN; which are actually not available in Tariff at 6-digit level and with no corresponding description of goods; these are invalid and hence not being allowed in the System. Read more: All about HSN Code
The due dates for filing Form GSTR-3B from the Tax Period of January 2021 have been revised by the CBIC. Check our compliance calendar for the change in the dates for the said tax period: GST Compliance Calendar. Follow our monthly compliance calendar for the latest GST news and updates.
Auto-population of e-invoice details into GSTR-1:
- The CBIC informed that for the month of March 2021, the auto-population of e-invoices into GSTR-1 (of March 2021) is still in progress and is likely to take some more time. Hence, the notified taxpayers who are reporting e-invoices, are hereby advised not to wait for the complete auto-population, and instead proceed with preparation and filing of GSTR-1 for March 2021 (by the due date), based on actual data as per their records.
Top GST News for the month of March 2021
The government has released a few notifications, circulars, and GST rule changes in March 2021. Here we have compiled all the data and latest GST news and changes so that you get all the important information at one place!
Important GST Notifications and circulars released in March 2021
- GST Notification 05/2021 dated 08-03-2021 – E-Invoicing is mandatory from 1st April 2021 for entities whose aggregate turnover exceeds Rs. 50 crore
- GST Notification 06/2021 dated 30-03-2021 – The penalty payable for non-compliance of QR Code on B2C transactions waived further till 30th June 2021, subject to compliance from 1st July 2021.
- GST Circular No 147/2021 dated 12-03-2021 – CBIC issued clarifications on refund related issues
GST Collection – March 2021
The total GST Collection for March 2021 amounted to Rs 1.24 lakh crore. These collections are at an all-time high. For March 2021, it is 27% higher than the same month last year.
Updates on GST Compliance:
- New changes in Table-12 format of form GSTR-1 return are expected soon.
- The reset function has been added in GSTR 1 and Invoice Furnishing Facility (IFF) on the GST Portal.
- Composition Scheme: New guidelines have been released by the CBIC for taxpayers who want to switch registration type regarding opting for GST Composition Scheme.
- HSN Code in GSTR 1: The government has notified that from 1st April onwards, it will become mandatory to report a minimum of 4 digits or 6 digits of the HSN Code in Table-12 of GSTR-1 and in Tax Invoice. Also currently the taxpayers need to provide HSN-wise the invoice value, taxable value, and tax amounts in Table-12 of GSTR-1. From 1st April 2021, the taxpayers need to provide HSN plus rate-wise taxable value and tax amounts in Table-12 of GSTR-1. All the tax invoices should consist of proper HSN Digits, a detailed explanation of the products, and correct tax rates for better transparency and to escape future litigations. Under section 125 of GST, there is a fine for any mistakes related to GSTR-1. The no. of HSN Code to be reported will be on the basis of Aggregate Turnover on PAN in the preceding fiscal year. For companies with a turnover of Rs. 5 crores and above 6 digits HSN is mandatory while those below 5 cr need to have 4 digit HSN code.
- GSTR 9 filing last date on 31st March for FY 2019-20.
GST News and GST Updates:
- The GST Portal has deployed new functionalities for taxpayers module-wise for ease of operations.
- The new feature to choose core company activity on the official portal has been approved.
- The MSME has issued a notification that GSTIN is not mandatory for MSME Udyam Registration.
- Compensation to States: GST compensation 19th installment shortfall released INR 1.10 lakh crore to the States & UTs with Legislative Assembly. Read Compensation Cess.
- The government has exposed GST frauds of Rs. 20,124 Cr within 3 months period from 9th Nov 2020 to 31st Jan 2021 stated the Finance Ministry.
- General queries are updated on the act of enrollment under GST for core & non-core fields.
- Classification: After login into the portal, taxpayers are required to select their business activity only once, as – Manufacturer, wholesaler/Distributor/Retailer, service providers & others based on the highest turnover amongst them. This can be changed later.
- CBDT informed that the taxpayers are free to use available ITC in their credit ledger, as permissible in law, to discharge their GST dues for the month of March 2021.
- The Karnataka Government released the Karasamadhana Scheme, 2021 for completing the pre-GST legacy audit and clear tax arrears. Here are the details of the scheme: 100% waiver of arrears of penalty and interest payable by a dealer under the Karnataka Sales Tax Act, 1957 and Central Sales Tax Act. The assessments / re-assessments/ rectification orders already need to be completed on or before July 31, 2021.
As per GST Notification 90/2020, taxpayers need to include the 8 digit HSN Code for specified products in their Tax Invoice from April 01, 2021.
Earlier, the 8 digit HSN code was mandatory to be included in GST Invoice only for taxpayers with turnover above RS. 5 crore. However, as per the above-mentioned notification, the 8 digit HSN code is mandatory for all tax invoices (specified products) irrespective of the turnover. Notification 90/2020 amends Notification 12/2017 and correspondingly Notification 78/2020. This is one of the most important GST rule changes.
As per GST Notification 05/2021, e-invoicing is mandatory from 1st April 2021 for entities whose aggregate turnover exceeds Rs. 50 crore in any of the preceding financial years from 2017-18.
As per the latest GST Notification 06/2021 released on 30-03-2021, the penalty payable for non-compliance of QR Code on B2C transactions waived further till 30th June 2021, subject to compliance from 1st July 2021.
Approx. Rs. 40 crore were generated in e-invoicing since its commencement in India. E-invoicing has been a revolutionary step for the Indian market scenario. The e-invoicing mandate went live on October 1, 2020, and now after six months, around 88,000+ suppliers have generated more than 39.81 crores in e-invoice.
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
- GST Circular no.146 dated on 23/02/2021 for Dynamic Quick Response (QR) Code on B2C invoices
GST Collection – February 2021
The total GST Collection for February 2021 amounted to Rs 1.13 lakh crore. Of this aggregate amount, Rs 21,092 crore was Central GST (CGST), Rs 27,273 crore as State GST (SGST) and Rs 55,253 crore as Integrated GST (IGST). The amount collected through cess stood at Rs 9,525 crore, including Rs 660 crore collected on import of goods.
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 News 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 instalment of Rs. 5 thousand crores 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 a 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
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 Notification 01/2021-Central Tax, dated. 01-01-2021: GSTR 1 or Invoice furnishing facility will be blocked if GSTR 3B is not filed on time
- GST Notification 02/2021-Central Tax, dated. 12-01-2021: CBIC notifies amendment Jurisdiction of Commissioners of Central Tax of Delhi and Mumbai
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 – 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 News 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
GST News and 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
- 8 Chartered Accountants among 258 arrested in GST fake invoice frauds – Jaipur
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.
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
- GST Notification 95/2020-Central Tax, date. 30-12-2020: Due date of GSTR 9, 9A & 9C for FY 2019- 20 is extended to 28th Feb 2021. However, due date for FY 2018-19 remains to be 31st Dec 2020
- 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
- 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
- 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.
- 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
- 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.
- 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 issued by GSTN on auto-population of details in Form GSTR 3B from Form GSTR 1 & GSR 2B. Read more about it here: Auto-population of GSTR 3B from GSTR 1 and GSTR 2B
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.
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.
- 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 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.
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
- 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.
- GST Notification 82/2020-Central Tax0, date. 10-11-2020: CBIC seeks to make the Thirteenth amendment (2020) to the CGST Rules.201.
- GST Notification 83/2020-Central Tax, date. 10-11-2020: CBIC extends the time limit of filing GSTR 1
- 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
- GST Notification 85/2020-Central Tax, date. 10-11-2020: CBIC notifies procedure to opt Quarterly GSTR 3B
- 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
- 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
- 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 Circular Released in November 2020
GST Collection – November 2020
The gross GST revenue collected in the month of November 2020 is Rs. 1,04,963 crore of which CGST is Rs. 19,189 crore, SGST is Rs. 25,540 crore, IGST is Rs. 51,992 crore (including Rs. 22,078 crore collected on import of goods) and cess is Rs. 8,242 crore (including Rs. 809 crore collected on import of goods).
Updates on GST Compliance:
- Auto-populated Form GSTR 3B (PDF) to be made available for the taxpayers, from the month of October 2020 onwards.
- Staggered filing of Form GSTR 3B for the tax periods from October 2020 till March 2021.
- CBIC enabled auto-population of e-invoice details into GSTR-1
- Quarterly Return filing & Monthly Payment of Taxes (QRMP) Scheme has been introduced for the taxpayers below the turnover of Rs. 5 Cr
- GST portal has been scaled up to handle 3 lakh taxpayers concurrently.
- 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.
- 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.
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 and GST News Updates
- 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.
- 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.
- 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.
- Finance Ministry extends last date for filing applications under SVLDR Scheme for UT of Jammu & Kashmir and Ladakh.
GST News Updates for the month of October 2020
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 a turnover of 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
- 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.
- 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.
- 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.
- 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 the following month based on turnover and States / UT’s.
- GST Notification 77/2020-Central Tax, dated 15.10.2020:
- 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.
- GST Notification 79/2020-Central Tax, dated 15.10.2020: Taxpayers having turnover up to Rs. 5 Crores are exempted from the requirement of GST Audit for FY 2019-20 as well.
- GST Notification 80/2020-Central Tax, date. 28-10-2020: Due date of GSTR 9, 9A, 9C is extended to 31st December 2020 for FY 2018-19
GST Circular Released in October 2020:
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
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).
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 the 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: The government simplified filing returns for small businesses by allowing them to only file their returns quarterly. So, companies with aggregated 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.
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:
Important GST Notifications released in September 2020:
- GST Notification 71/2020-Central Tax ,dt. 30-09-2020: Requirement of Dynamic QR Code on B2C invoices is deferred to 1st December 2020.
- GST Notification 70/2020-Central Tax ,dt. 30-09-2020: Turnover from FY 2017-18 shall be considered for determining the applicability of E-Invoicing and e-invoice shall be generated for export transactions as well.
- GST Notification 69/2020-Central Tax ,dt. 30-09-2020: Due date of Annual Return GSTR 9/9C is extended to 31st October 2020
- GST Notification 68/2020-Central Tax ,dt. 21-09-2020: Late fees is capped to Rs. 500 if taxpayer files GSTR 10 between 22nd September 20 to 31st December 20
- GST Notification 67/2020-Central Tax ,dt. 21-09-2020: Late fees is capped to Rs. 500 for taxpayers having liability and fully waived off in case taxpayer filing nil GSTR 4 between 22.09.2020 to 31.10.2020, for tax period July 17 to March 19
- GST Notification 66/2020-Central Tax ,dt. 21-09-2020: 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 65/2020-Central Tax ,dt. 01-09-2020: Timelimit of compliance of Anti Profeeting Measures u/s 171 is extended to 30th November 2020 by CBIC
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:
- 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.
- 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.
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.
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 and GST updates:
- 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”.
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:
GST Notifications and Circulars Released in August 2020
New E-Invoice Schema is released as per Notification 60/2020.
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 where 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.
Top GST news and updates only on IRISGST
Top GST news and updates only on IRISGST
Top GST news and updates only on IRISGST
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 firstname.lastname@example.org.