GST Support Center- Puducherry

07/02/2022

*GST UPDATEZ ON 07-02-2022*

*Module wise new functionalities deployed on the GST Portal for taxpayers - January 2022*

Various new functionalities are implemented on the GST Portal, from time to time, for stakeholders. In the month of January 2022, the following changes are made:

*1. Registration Module:*

i. Aadhaar authentication made mandatory for filing of the Revocation application
ii. Submission of Aadhaar enrolment ID for e- KYC verification for Existing and New registrations
iii. Triggering of alerts to Returns Module in case of change in status/ category of Taxpayer
iv. Filing of revocation application even after 30 calendar days (but within 90 calendar days)

*2. Return:*

i. Change in filling frequency of ITC-04 ( turnover > 5 crores - half-yearly filling, otherwise annually)
ii. Enhancements in Search HSN functionality
iii. Blocking filing of the statement of outward supplies in Form GSTR1 in case of non-filing of returns in Form GSTR-3B
for the preceding tax period

*3. Refund:*

i. Few basic changes in Track Application Status such as showing information of tax period, GSTIN, etc.
ii. Aadhaar authentication made mandatory for refund

*4. Payment:*

Removal of names of merged Banks from GST Portal

*5. Front End:*

i. Press release section has relocated from ‘Home’ page to ‘Help and Taxpayer Facilities’
ii. Upgrade of emsigner from ver 2.6 to ver 2.8

01/02/2022

IMPORTANT GST CHANGES UPDATE THROUGH FINANCE BILL 2022

Alert:-
All the changes and amendments proposed in the Finance Bill 2022 shall apply only from date to be notified later in terms of Section1(3) of the CGST Act 2017..

1.Time Limits u/s 16(4), Section 34 & Section 37 , Section 52 has been extended by two months. Instead of the last date for filing the return under Section 39 for the month of September of the next Financial Year, it has been proposed to have the last date as 30 th November of the next FY.

Effect: ITC can now be claimed by 30th November of next financial year instead of September of next financial year and additional time has been provided.

2. Section 42, 43 & 43A of CGST Act are omitted to do away with two way communication in filing of GST Returns

Effect: GSTR 2 and GSTR3 is now finally removed. New Section 38 will take care of the matching mechanism. New Section 38 for prescribes the manner as well as conditions and restrictions for communication of details of inward supplies and input tax credit to the recipient by means of an auto-generated statement and to do away with two-way communication process in return filing.

3. Section 41 of the CGST Act is being substituted so as to do away with the concept of “claim” of eligible input tax credit on a “provisional” basis and to provide for availment of self-assessed input tax credit subject to such conditions and restrictions as may be prescribed.

Effect: - NIL. This is a consequential amendment due to removal of Section 42, 43 and 43A

4. Section 47 of the CGST Act is being amended so as to provide for levy of late fee for delayed filing of return under section 52. Further, reference to section 38 is being removed consequent to the amendment in section 38 of the CGST Act.

Effect: Late fees shall apply for delay in filing TCS (tax collected at source) return under Section 52.

5. Electronic Cash Ledger - Section 49 of the CGST Act is being amended so as to allow transfer of amount available in electronic cash ledger under the CGST Act of a registered person to the electronic cash ledger under the said Act or the IGST Act of a distinct person;

Effect: - Amount lying as balance in the Electronic Cash Ledger can now be transferred to the distinct person for utilisation. Very useful change which will help to tie over financial crunch.

6. Levy of interest u/s:- Sub-section (3) of section 50 of the CGST Act is being substituted retrospectively, with effect from the 1st July, 2017, so as to provide for levy of interest on input tax credit wrongly availed and utilized.

Effect: No interest for mere wrong availment of ITC. Interest to be charged only if wrong ITC is availed and utilised. This is a long pending requirement as per the recommendations of the GST Council.

7. Rectification of Errors:- Sub-section (6) of section 52 of the CGST Act is being amended so as to provide for an extended time upto thirtieth day of November of the following financial year for rectification of errors in the statement furnished under sub-section (4) by an e-Commerce operator for TCS

8. Refunds:- Time limit for UN refunds also made two years from the last day of the quarter instead of Six months for the period to which refund is claimed. Also extend the scope of withholding of or recovery from refunds in respect of all types of refund; provides clarity regarding the relevant date for filing refund claim in respect of supplies made to a Special Economic Zone developer or a Special Economic Zone unit as the the due date for furnishing of return under section 39 in respect of such supplies.

SRIVATSAN.R.
NACIN, Chennai

21/01/2022

CESTAT set aside the order confirming the demand for reversal of CENVAT credit on the amount written off as bad debts. Further, held that there is no such provision in the CENVAT Credit Rules, 2004 or in Finance Act, 1994 for reversal of CENVAT credit for the services provided for which no consideration for service provided is received by an assessee.

20/01/2022

*Recovery process to be initiated only after improper explanation of not paying unpaid tax*

CBIC has issued a detailed guidelines vide *Instruction No. 01/2022, dt:- 07-01-2022,* for *recovery proceedings* under the provisions of section 79 of the CGST Act, 2017 in cases covered under *newly inserted explanation to sub-section (12) of section 75* of CGST Act 2017.

New provisions vide clause 114 of the Finance Act 2022, *have come into effect from January 1, 2022*.

To recollect, *an explanation was added in section 75(12)* of CGST Act to clarify that *the tax on self-declared supplies* by the registered person in GSTR-1, which has not been paid through GSTR-3B, will be considered as his self-assessed *admitted liability* and *can be recovered straight away*.

Guidelines for new provision have been issued *to remove the apprehension of unauthorised visits* of the GST officials to the premises of the taxpayers for such recoveries.

According to guidelines, where, self-assessed tax reported in GSTR-I is *found to be short paid or not paid in GSTR-3B,* the proper officer *may send a communication* to explain the reasons for such short payment or non-payment within a reasonable time.

There *may not be any requirement* to initiate proceedings for recovery under section 79, *where the explanations are proper*.

However, *if the said registered person either fails to reply, or fails to make the payment of such amount* short paid or not paid, within the time prescribed in the communication, then the *proceedings for recovery of the said amount as per provisions of section 79 may be initiated* by the proper officer.

The instructions has *mandated an opportunity of being heard* before the said recovery proceedings and would definitely *arrest the misuse of the newly introduced provision* of section 75(12) provisions by the Tax officers.

At best *it will mellow down the fangs* of the newly introduced provision of section 75(12) in a more justifiable manner - where in some cases where there may be a genuine reason for difference
between the details of outward supplies declared in GSTR-1 and those declared in GSTR-3B.

*Principles of Natural Justice ensured*.

04/08/2020

ACCOUNTS & RECORDS – SECTION 35 – CGST ACT 2017- GST SERIES –
PART 23
1. Maintenance of accounts and records is one of the important compliance under the GST
Act. The term books of accounts include all the records maintained in respect of money,
sales, purchases, assets, liabilities, and items of cost. Section 35 of the CGST Act read with
Rule 56 prescribes accounts and records requirements for a registered person.
2. Statutory Provisions :
Section
35(1)
Every registered person shall keep and maintain, at his principal place of
business, as mentioned in the certificate of registration, a true and correct
account of the followings –
(a) Production or manufacture of goods
(b) Inward or outward supply of goods or/and services
(c) Stock of goods
(d) Input tax credit availed
(e) Output tax payable and paid
(f) Such other particulars as may be prescribed
Rule
56(1)
Every registered person shall keep and maintain a true and correct account of
the following particulars:-
(a) The goods or services imported or exported.
(b) Supplies attracting payment of tax on reverse charge.
(c) The relevant documents including invoices, bills of supply, delivery
challans, credit notes, debit notes, receipt vouchers, payment vouchers, and
refund vouchers.
2.1 Production and manufacture of goods :
1/8
Rule
56(12)
Every registered person manufacturing goods shall maintain monthly production
accounts, showing the quantitative details of raw materials or services used
in the manufacture and quantitative details of the goods so manufactured
including the waste and by-products thereof.
2.2 Inward or outward supply of goods or/and services :
Rule
56(5)
Every registered person shall keep the particulars of
(a) names and complete addresses of suppliers from whom he has received
the goods or services
(b) names and complete addresses of thepersons to whom he has supplied
the goods or services
(c) the complete addresses of thepremises where the goods are stored by
him, including goods stored during transit along with the particulars of the stock
stored therein.
2.3 Stock of goods :
Rule
56(2)
Every registered person shall maintain accounts of stock in respect of each
commodity received and supplied.
The Stock Account shall contain particulars of the opening balance, receipt,
supply, goods lost, stolen, destroyed, written off or disposed of by way of gift or
free samples and balance of stock including raw materials, finished goods, scrap
and wastage thereof.
A person paying tax under composition scheme is not required to maintain the
stock account
2.4 Tax payable, Tax collected, and Input Tax Credit (ITC) :
Rule
56(4)
Every registered person shall keep and maintain an account, containing the
details of
(a) tax collected and paid, input tax and input tax credit claimed.
(b) tax payable and paid under reverse charge and purchases from
unregistered persons.
(c ) tax invoice, credit note, debit note, delivery challan issued or received
during any tax period.
A person paying tax under composition scheme is not required to maintain
this account. 2/8
2.5 Advances received and adjusted :
Rule
56(3)
Every registered person shall keep and maintain a separate account of
advances received, paid and adjustments made thereto
2.6 Goods used for Provision of Services :
Rule
56(13)
Every registered person supplying services shall maintain the accounts showing
the quantitative details of goods used in the provision of each service,
details of input services utilized and the services supplied
3. Records for Work Contracts :
Rule
56(14)
Every registered person executing works contract shall keep separate accounts
for each works contract showing the following particulars:-
(a) The names and addresses of thepersons on whose behalf the works
contract is executed.
(b) The description, value, and quantity (wherever applicable) ofgoods or
services received for the ex*****on of works contract.
(c) The description, value and quantity (wherever applicable) ofgoods or
services utilized in the ex*****on of each works contract
(d) The details of payment received in respect of each works contract
(e) The names and addresses of suppliers from whom he has received
goods or services
4. Records maintained by an agent :
Rule
56(17)
Any person having custody over the goods in the capacity of a carrier or a
clearing and forwarding agent for delivery or dispatch thereof to a recipient on
behalf of any registered person shall maintain true and correct records in
respect of such goods handled by him on behalf of such registered person.

24/06/2020

Companies facing cash crunch may have to reverse GST credit on delayed payments to vendors

Companies which have postponed vendor payments due to a liquidity crunch brought on by the Covid-19 crisis will have to face further working capital woes due to credit reversal with interest under the goods and services tax framework, in case they don’t clear the dues within 180 days of the date of invoice.

These cash-strapped companies will have to either make payments within 180 days or reverse the tax credit they have availed of. They will also have to pay interest at 18% to the government from the date the credit was taken.

24/06/2020

GST: Major set back for the real estate Industries – Sale of developed plot now liable for GST

ey observation were as under:

Sale of developed plot is not equivalent to sale of land but is a different transaction.
Sale of such plotted development tantamount to rendering of service.
This view has also been taken by the Supreme Court in the case of M/s. Narne Construction P Ltd. reported at 2013 (29) STR 3 (SC).
Transaction shall be out of GST net only if the activity is exclusively dealing with transfer of title or transfer of ownership of land, which is immoveable property or earth.
Activity of the sale of developed plots would be covered under the clause ‘construction of a complex intended for sale to a buyer’.
The said activity is covered under ‘construction services’ and GST is payable on the sale of developed plots in terms of CGST Act / Rules and relevant Notification issued time to time.

24/06/2020

24/06/2020

*News Flash*

*CUSTOMS INTRODUCES PAPERLESS CUSTOMS - ELECTRONIC COMMUNICATION OF PDF BASED COPIES OF SHIPPING BILL & E-GATE PASS TO CUSTOMS BROKERS*

Continuing its trend to make the Customs operation more and more paperless and promote faceless, paperless and contactless customs CBIC decided to rely upon digital copies of the Shipping Bill and do away with the requirement of taking bulky printouts from the Service Center or maintenance of voluminous physical dockets in the Custom Houses.

Board directs that w.e.f. 22.06.2020 only the digital copy of the Shipping Bill bearing the Final LEO would be electronically transmitted to the exporter and the present practice of printing copies of the said document for the exporters and also for maintaining a docket in the Customs House would stand discontinued.

The Circular also highlighted the salient features of the secure electronic communication of the Final LEO copy of the Shipping Bill and the Gate pass copy of Shipping Bill.

*1. Final Let Export Order (LEO) Copy of Shipping Bill*
To promote a paperless environment, Board has decided to do away with the taking the printouts (namely Customs Copy and Exporter Copy). Instead, Directorate General of Systems has enabled a
functionality of communicating by email, the PDF version of the Final LEO copy of the Shipping Bill to the Customs Broker and exporter, if registered.

This electronic Final LEO copy can serve multiple purposes such as being shared with DGFT, Banks etc.

This Final LEO copy of the Shipping Bill will have the following features:-
a) The PDF version will bear a digitally signed and encrypted QR code which can be scanned to verify the authenticity of the document using Mobile App ICETRAK. The QR code is tamper proof, which is digitally signed by CBIC to ensure the authenticity. Key details like SB No., SB Date, FOB value, Package Details are available in the secured QR Code

b) A version number is also embedded in the QR code which can be used to ascertain whether the document is indeed the latest version (in case of cancellation of LEO etc.). The same would be verifiable at ICEGATE Enquiry.

Let Export Order (LEO) message shall also be sent to custodians who are integrated with ICEGATE.

*2. e-Gatepass Copy of Shipping Bill:*
Taking cognizance of the logistics needs, the Directorate General of Systems would henceforth communicate through email, the eGatepass PDF copy of the Shipping Bill to the Customs Broker and the Exporter, if registered.

Accordingly, Board has decided to do away with the printing of Transference copies of Shipping Bill.

The following are the features of eGatepass copy of the Shipping Bill :

a) The electronic document provides key summary details like Container/Packages related to logistics movement and facilitates authentic, easy and quick verification by the Custodian,
at the point of Entry/Exit.

b) There will be two types of QR codes (i) for entire eGatepass document, and (ii) for each container/package covered under the eGatepass. This will ensure that only those containers/package move out which are covered under the Gatepass document.

*It is re-iterated that for the purposes of exports, all the supporting documents should mandatorily be uploaded in eSanchit and collection of physical dockets shall be dispensed with.*

06/03/2020

Option for renewal of LUT for FY 2020-2021 is activated in GSTN.

LUT obtained for FY 2019-2020 will expire on 31.3.2020.

For executing export transactions (including supplies to SEZ) without payment of GST, LUT is mandatory (LUT to be obtained prior to supply)