GST Updates

• Notification No. 16/2021 – Central Tax dated 1st June, 2021.

Vide this Notification, Section 112 of the Finance Act, 2021 (13 of 2021) is made operational with effect from 01/06/2021 by substituting proviso in Section 50 of The CGST Act. By this substituted proviso with retrospective effect from 01/07/2017, interest on late filing of return will be payable only on that portion of the tax which is paid by debiting the electronic cash ledger.

• Notification No. 17/2021 – Central Tax dated 1st June, 2021.

The Notification seeks to extend the due date of furnishing of return in Form GSTR-1 for May, 2021 till 26/06/2021.

• Notification No. 18/2021 – Central Tax dated 1st June, 2021.
• Notification No. 02/2021 – Integrated Tax dated 1st June, 2021.

The Notification seeks to provide relief by lowering the interest rate for a prescribed time for delay in payment of tax for month March, 2021, April, 2021, May 2021 and the for quarter ending on March, 2021.

• Notification No. 19/2021 – Central Tax dated 1st June, 2021.
• Notification No. 20/2021 – Central Tax dated 1st June, 2021.

Late fee is waived for fifteen days from the due date of furnishing return of the return in Form GSTR 3B for the month March, 2021, April, 2021 and May 2021 for taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year. However, for taxpayers having an aggregate turnover upto rupees 5 crores in the preceding financial year, late fee is waived for 60 days from the due date of furnishing return for March 2021, for 45 days from the due date of furnishing return for April 2021, for 30 days from the due date of furnishing return for May 2021. Similarly, for quarterly return filer also late fee is waived for 60 days from the due date of furnishing such quarterly return

The registered persons who has defaulted in furnishing the returns in FORM GSTR-3B for the months /quarter of July, 2017 to April, 2021 but furnishes the said return between the period from the 01/06/2021 to the 31/08/ 2021, the total amount of CGST late fee will be restricted to maximum of Rs. 500/-. However, where CGST payable is Nil in such returns the total amount of CGST late fee will be restricted to maximum of Rs. 250/-.

For return in GSTR 3B for month June 2021 onwards or for quarterly return June 2021 ending onwards CGST late fee is restricted to Rs. 1000/- for Registered persons having an aggregate turnover of up to rupees 1.5 crores in the preceding financial year, it is restricted to Rs. 2500/- for Registered persons having an aggregate turnover of more than rupees 1.5 crores but upto 5 crores in the preceding financial year but it is restricted to Rs. 250/- if CGST payable is NIL in the return. (CGST Late fee for GSTR-1 is rationalized in line with late fee for GSTR 3B for month/ quarter June 2021 onwards).

• Notification No. 21/2021 – Central Tax dated 1st June, 2021.

Composition dealer defaulting in furnishing return for financial year in GSTR 4 for financial year 2021-22 year onwards, CGST late fee is now restricted to Rs. 250/- where CGST payable is NIL in the return and for other composition dealer it is restricted to Rs. 1000/-

• Notification No. 22/2021 – Central Tax dated 1st June, 2021.

Registered person who is required to deduct tax at source but fails to furnish the return in Form 7 for the month of June 2021 onwards by due date then CGST late fee payable will be Rs. 25 per day but restricted to maximum of Rs.1000/-.

• Notification No. 23/2021 – Central Tax dated 1st June, 2021.

The Notification Seeks to amend Notification no. 13/2020-Central Tax to exclude government departments and local authorities from the requirement of issuance of e-invoice.

• Notification No. 24/2021 – Central Tax dated 1st June, 2021.

The Notification seeks to extend specified compliances falling between 15.04.2021 to 29.06.2021 where completion or compliance of such action has not been made within such time, then the time limit for completion or compliance of such action is upto 30/06/2021.

• Notification No. 25/2021 – Central Tax dated 1st June, 2021.

The Notification seeks to extend the due date for filing FORM GSTR-4 by composition dealer for financial year 2020-21 to 31.07.2021.

• Notification No. 26/2021 – Central Tax dated 1st June, 2021.

The Notification seeks to extend the due date for furnishing of FORM ITC-04 for quarter ending March, 2021 to 30.06.2021.

• Notification No. 27/2021 – Central Tax dated 1st June, 2021.

Following Rule is amended in The Central Goods and Service Tax Rules, 2017. Rule is effective from 01/06/2021.

Rule 26(1): By substituting forth proviso, all registered Companies which were allowed to furnish return in Form GSTR-3B and the details of outward supplies in Form GSTR-1 using IFF through electronic verification code (EVC) for the period from 27/04/2021 to 31/05/2021 is now extended for the periods upto 31/08/2021.

Rule 36(4): As per this Rule, maximum cap of 5

% of eligible ITC as per GSTR 2A has been put on a registered tax payers for claiming ITC for which suppliers have not uploaded invoices/ debit notes. Now, it is provided that the said condition shall apply cumulatively for the period April, 2021, May, 2021 and June 2021 the return in Form GSTR 3B for the tax period June, 2021 shall be furnished with the cumulative adjustment of input tax credit for the said month or quarter ending in accordance with the condition stated above.

Rule 59(2): Facility of furnishing details of outward supply using Invoice furnishing facility for the month of May 2021 will be available from 01/06/2021 till 28/06/2021.

NOTIFICATIONS – INTEGRATED TAX:

• Notification No. 03/2021 – Integrated Tax dated 2nd June, 2021.

The Notification seeks to amend Notification No. 4/2019-Integrated Tax dated 30.09.2019 to change the place of supply for B2B mainten- ance, repair or overhaul services in case of Shipping industry, to the location of the recipient.

CIRCULARS – CGST:

• Circular No. 149/05/2021 – GST- dated 17th June, 2021

It is clarified that services provided to an educat-

ional institution by way of serving of food (catering including mid- day meals) is exempt from levy of GST irrespective of its funding from government grants or corporate donations [under said entry 66 (b)(ii)]. Educational institutions as defined in the notification include aganwadi. Hence, serving of food to anganwadi shall also be covered by said exemption.

• Circular No. 150/06/2021 – GST- dated 17th June, 2021

It is clarified in the circular that Entry 23A of Notification No. 12/2017-CT(R) does not exempt GST on the annuity (deferred payments) paid for construction of roads. The Said entry 23A does not apply to services falling under heading 9954 but it specifically covers heading 9967 which covers services by way of access to a road or a bridge on payment of annuity.

• Circular No. 151/07/2021 – GST- dated 17th June, 2021

The Circular in details gives clarification on applicability of GST on supply of various services by Central and State Board such as National Board of Examination.

• Circular No. 152/08/2021 – GST- dated 17th June, 2021

After detail discussion in circular it is clarified that works contract service provided by way of construction such as of rope way will fall under entry at sl. No. 3(xii) of notification 11/2017- (CTR) and attract GST at the rate of 18%.

• Circular No. 153/09/2021 – GST- dated 17th June, 2021

GST on Composite supply of service by way of milling of wheat into flour along with

fortification, or paddy into rice for distribution by State Governments under PDS is eligible for exemption subject to condition that the value of supply of goods constitutes not more than 25 per cent of the value of the said composite supply. Where it exceeds 25% then GST rate applicable will be 5 %.

• Circular No. 154/10/2021 – GST- dated 17th June, 2021

It is clarified that guaranteeing of loans by Central or State Government for their undertaking or PSU is specifically exempt under entry No. 34A of Notification no. 12/2017- Central Tax (Rate) dated 28.06.2017.

• Circular No. 155/11/2021 – GST- dated 17th June, 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, in terms of Section Note and Chapter Notes to HSN, shall attract GST as applicable to the respective heading.

• Circular No. 156/12/2021 – GST- dated 21st June, 2021

The circular in details give clarification in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance of Notification 14/2020- Central Tax dated 21st March, 2020.