The Ministry of Finance had issued a press release stating that the GSTR-3B returns can be filed in a staggered manner(different dates for various categories of assessees). The effective date will be announced later at the time of issuing notifications. It is also stated in the press release that various technological measures will be taken in consultation with Infosys.The due dates for filing GSTR-3B and payment of taxes without late fees and interest applicable for assessees in Tamilnadu and Kerala is given below:
Sales of more than Rs.5 crores in the preceding financial year: 20th of Subsequent month
For all other assessees: 22nd of Subsequent month
The entire text of press release is given below for reference:
Ministry of Finance
Now the GST Taxpayers can file their GSTR-3B Returns in a Staggered Manner
Posted On: 22 JAN 2020 6:29PM by PIB Delhi
Considering the difficulties faced by trade and industry in filing of returns, the government has decided to introduce several measures to ease the process. The Finance Ministry today said that now GST taxpayers can file their GSTR-3B returns in a staggered manner.
Presently the last date of filing GSTR-3B returns for every taxpayer is 20th of every month. From now on, the last date for filing of GSTR-3B for the taxpayers having annual turnover of Rs 5 crore and above in the previous financial year would be 20th of the month. Thus, around 8 lakh regular taxpayers would have the last date of GSTR-3B filing as 20th of every month without late fees.
The taxpayers having annual turnover below Rs 5 crore in previous financial year will be divided further in two categories. The tax filers from 15 States/ UTs, i.e., Chhattisgarh, Madhya Pradesh, Gujarat, Daman and Diu, Dadra and Nagar Haveli, Maharashtra, Karnataka, Goa, Lakshadweep, Kerala, Tamil Nadu, Puducherry, Andaman and Nicobar Islands, Telangana and Andhra Pradesh will now be having the last date of filing GSTR-3B returns as 22nd of the month without late fees. This category would have around 49 lakh GSTR-3B filers who would now have 22nd of every month as their last date for filing GSTR-3B returns.
For the remaining 46 lakh taxpayers from the 22 States/UTs of Jammu and Kashmir, Laddakh, Himachal Pradesh, Punjab, Chandigarh, Uttarakhand, Haryana, Delhi, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand and Odisha having annual turnover below Rs 5 crore in previous financial year will now be having last date of filing the GSTR-3B as 24th of the month without late fees.
The Finance Ministry said that the necessary notification in this regard would be issued later by the competent authority.
In a statement issues, the Ministry further said that it has also taken a note of difficulties and concerns expressed by the taxpayers regarding filing of GSTR-3B and other returns. The matter has been discussed by the GSTN with Infosys, the Managed Service Provider, which has come out with above solution to de-stress the process as a temporary but immediate measure. For further improving the performance of GSTN filing portal on permanent basis, several technological measures are being worked out with Infosys and will be in place by April 2020.
Disclaimer: Users are requested to verify the validity of content before taking informed decisions.
Wef 1.10.19, GST on job work is 12% on goods of registered persons & 18% on goods of unregistered persons. Circular 126/45/2019-GST of 22.11.19.
Please note the rate continues to be 18% on goods of registered persons. Also the same is applied only on job work done on goods and not applicable on services.
CBIC vide notification 49/2019 – Central Tax dated 09th
October, 2019, inserted new sub rule (4) to Rule 36 of CGST Rules, 2017. The text
of the rules is re-produced below:
(4) Input tax credit to be availed by a registered person in respect of invoices or debit notes, the details of which have not been uploaded by the suppliers under sub-section (1) of section 37[D1] , shall not exceed 20 per cent of the eligible credit [D2] available in respect of invoices or debit notes the details of which have been uploaded by the suppliers under sub-section (1) of section 37.
The details of the new provision
is discussed below by way of questions and answers:
Q1.
What is the purpose of this rule?
The
Purpose of this rule is to restrict availing Input Tax Credit to the extend on
20% of the eligible ITC reflected in GSTR-2A.
Q2.
Will this to be followed while filing each tax period returns?
Yes.
Q3.
What is the effective date of this provision?
The
effective date is 09th October, 2019.
Q4.
Whether the GSTIN portal will automatically calculate the ITC available?
No.
The calculation needs to be made manually on self-assessment basis.
Q5.
What are the Invoices/Debit notes on which the above provisions apply?
The
restriction of availment of ITC is imposed only in respect of those invoices /
debit notes, details of which are required to be uploaded by the suppliers
under sub-section (1) of section 37 and which have not been uploaded. So the
restriction applies to invoices/debit notes which are not uploaded by suppliers
in Form GSTR-1.
Q6.
Whether this provision is applicable on Reverse Charge, ISD Invoices, IGST paid
on Imports?
No.
This provision is not applicable in above cases. The same is clarified by the Board
in Circular 123/42/2019– GST dated 11th November, 2019. But, while
calculating the eligible credit by an ISD, this restriction will apply. As ISD
is not required to file GSTR-1, the recipient of ISD invoices can claim the
credit.
Q7.
While calculating the 20%, whether the ITC in respect of Reverse Charge, IGST
on Import and ISD Invoices can be considered?
The
20% is available only on the eligible credit reflected in GSTR-2A.
Q8.
Will this provision applicable only to invoices/debit notes issued on or after
09th October, 2019?
This
provision is applicable not only to invoices/debit notes issued on or after 09th
October, 2019, but also to invoices / debit notes on which credit is availed
after 09.10.2019. This was clarified by the Board in Circular 123/42/2019– GST
dated 11th November, 2019.
Q9.
Whether this provision will be applicable to returns filed for tax periods
prior to October, 2019, filed on or after 09th October, 2019?
Yes.
Applicable
Q10.
Whether the restriction to be calculated supplier wise or Consolidated basis?
The
restriction is to be calculated consolidated wise only
Q11.
Whether 20% can be calculated on the entire amount available in Form GSTR-2A?
No.
The 20% will be available only on eligible credits. The in-eligible credits
like section 17(5) blocked credits, Rule 42 (Common Credits etc) needs to be
reduced.
Q12.
Whether ITC related to Capital Goods being partly used for the purposes of
business and partly for other purposes, or partly used for effecting taxable
supplies including zero rated supplies and partly for effecting exempt supplies
(Rule 43) needs to be reduced for calculating the 20% eligible credit?
No,
as per Rule 43, the amount of ITC that needs to be reversed should be added to
the output tax liability and no need to reverse from the ITC availed.
Q13.
Whether the amount of ITC available in GSTR-2A at the time of filing return can
be considered for calculating 20%?
As
per boards circular, the taxpayer may have to ascertain the same from his auto
populated FORM GSTR 2A as available on the due date of filing of FORM GSTR-1
under sub-section (1) of section 37. The due date for filing GSTR-1 is 11th
of the succeeding month. So, all the taxpayers have to download GSTR-2A ideally
by in the early hours of the succeeding month as the date wise report is not
available in the GSTIN portal.
Q14.
Whether the ITC on invoices related to quarterly GSTR-1 can be availed on
monthly basis?
No.
ITC can be availed only when the same is reflected in GSTR-2A. As per a tweet
by CBIC, only 7% of tax payers were opting for quarterly filing and so the same
will be covered in the 20%.
Q15.
Whether the GSTR-1 needs to be submitted by the supplier to avail the ITC?
As
per the above provision, the word used is uploaded. So the submission of GSTR-1
is not seems to be Compulsory.
Q16.
What will be the consequences for not following Rule 36(4)?
The
consequences will be there will be demand for interest for the excess credit
availed. The Assessing Officer may direct to reverse the excess credit availed
and if such reversal of ITC is made after the due date for filing return of
subsequent month, then the such ITC, even if the invoice reflected in GSTR-2A
subsequently, cannot be availed. Many experts are of the view that, interest
will be applicable in such cases.
In
addition to the interest and reversal if any, penalty proceeding can also be
initiated. The penalty will depend upon on which section (Section 73 or Section
74) the notice is issued.
Q17.
How the Calculation for availment of ITC to be made in case details of some of
the invoices have not been uploaded by the suppliers under subsection (1) of
section 37?
The
calculation is explained by way of an example:
A
taxpayer “R” receives 100 invoices (for inward supply of goods or services)
involving ITC of Rs. 10 lakhs, from various suppliers during the month
of Oct, 2019 and has to claim ITC in his FORM GSTR-3B of October, to be filed
by 20th Nov, 2019.
No. of Invoices Uploaded by suppliers 70 Invoice
ITC available in up-loaded invoices Rs.6,00,000/-
20% of eligible credit of invoices up-loaded Rs.1,20,000/-
Eligible ITC that can be taken in GSTR-3B [(b)+(c)] Rs.7,20,000/-
Q18. When and how can the balance ITC can be claimed?
The same is also explained by way of an example, which is a continuation of the example in Q15
Case
1
No. of Invoices of October-19, reflected
in Novemer-19 GSTR-2A 15
Invoices
ITC available on above invoices Rs.1,00,000/-
20% of eligible credit on all 85 invoices
of Oct-19
(Rs.6,00,000 +Rs.1,00,000) X 20% Rs.1,40,000/-
Eligible ITC for Oct-19 Rs.8,40,000/-
ITC availed in Oct-19 GSTR-3B return Rs.7,20,000/-
ITC that can be availed in Nov-19 return[
(d)-(e)] Rs.1,20,000/-
Case
2
No. of Invoices of October-19, reflected
in Novemer-19 GSTR-2A 20
Invoices
ITC available on above invoices Rs.2,34,000/-
20% of eligible credit on all 85 invoices
of Oct-19
(Rs.6,00,000 +Rs.2,34,000) X 20% Rs.1,66,800/-
Eligible ITC for Oct-19
(Least of Rs.10 lakhs or Rs.8,34,000+Rs.166,800) Rs.10,00,000/-
ITC availed in Oct-19 GSTR-3B return Rs.7,20,000/-
ITC that can be availed in Nov-19 return[
(d)-(e)] Rs.2,80,000/-
The
taxpayer may avail full ITC in respect
of a tax period, as and when the invoices are uploaded by the suppliers to the
extent Eligible ITC/ 1.2. In the above example
(Case 2), the suppliers had uploaded more than invoices having ITC of
Rs.8,33,333.33 (Rs.10,00,000/1.2), and hence the tax payer can avail full ITC
to the extent of Rs.10 Lakhs.
Q19. The Supplier had uploaded GSTR-1, but not paid the tax. Whether the same can be considered for calculating 20%?
Rule
36(4), talks about eligible credits. As per Section 16, in order to take ITC, payment
of taxes and filing of return under section 39 (GSTR-3B as of now) is some of the
eligibility conditions. In the case of same month return, as the due date for
filing GSTR-1 falls first and the due date for filing GSTR-3B is at a later
date, the tax payer can take credit based on the entry if GSTR-2A. If the tax
is not paid or GSTR-3B return is not filed, it is advisable to reverse such
Input Credit as it’ll be a contravention to the provisions of the Act.
Q20. What are all the other issues that may arise due to this provision?
All quarterly GSTR-1 filers may be
forced to opt for monthly filing
Invoice not reflected in GSTR-2A, even though
the same is uploaded by the supplier due to technical glitches
Another case of litigation, if officers ask
to reverse ITC for non-compliance
Ministry of Corporate Affairs extended the due date for filing e-forms AOC-4, AOC (CFS) AOC-4 XBRL upto 30.11.2019 and e-form MGT-7 upto 31.12.2019, by companies without levy of additional fee.
The entire text of the notification is given below:
General Circular No. 13/2019
F.No. 01/34/2013 CL-V Government of India Ministry of Corporate Affairs
5th Floor, ‘A’ Wing, Shastri Bhawan, Dr. Rajendra Prasad Road, New Delhi-1 Dated: 29.10.2019
To
All Regional Directors, All Registrar of Companies, All Stakeholders.
Subject: Relaxation of additional fees and extension of last date in filing of forms MGT-7 (Annual Return) and AOC-4 (Financial Statement) under the Companies Act, 2013- – reg.
Sir,
Keeping in view the requests received from various stakeholders seeking extension of time for filing of financial statements for the financial year ended 31.03.2019 on account of various factors , it has been decided to extend the due date for filing of e-forms AOC-4, AOC (CFS) AOC-4 XBRL upto 30.11.2019 and e-form MGT-7 upto 31.12.2019, by companies without levy of additional fee.
2. This issues with the approval of the competent authority.
CBDT vide notification no.75/2019 dated 28th September, 2019 extended the last date of linking PAN card and Aadhar to 31st December, 2019 from 30th September, 2019.
The official handle of Income tax tweeted that the due date for filing income tax returns for those whose accounts are required to get audited is extended to 31.10.2019 from 30.09.2019.
The text of the tweet is as follows:
“On consideration of representations recd from across the country,CBDT has decided to extend the due date for filing of ITRs & Tax Audit Reports from 30th Sep,2019 to 31st of Oct,2019 in respect of persons whose accounts are required to be audited.Formal Notification will follow.”
CORPORATE
TAX – AN ANALYSIS BASED ON TAX LAWS (AMENDMENT) ORDINANCE 2019
The Tax
Laws (Amendment) Ordinance, 2019, which came into force on 20th September,
2019, brings in major amendments with regard to taxation on Corporates. The Ordinance
bring option to domestic companies to continue with the present scheme and
continue enjoying the exemptions and incentives or to opt for the reduced tax
rate prescribed for the existing domestic companies under this ordinance. The
same will be applicable from the Financial Year 2019-20 (Assessment year
2020-21).
As per
the ordinance, two set of rates were prescribed:
Section
115BAA – 22% Tax rate for existing domestic companies
Section
115BAB – 15% tax rate for manufacturing domestic companies incorporated on or
after 01st October, 2019.
Effective
Tax Rate
Even
though the rate of Income Tax prescribed under Section 115BAA and Section 115BAB
is 22% and 15% respectively, the ordinance amends Finance (No.2) Act, 2019 and
inserted a new surcharge provision for income chargeable under these sections.
As per the ordinance a surcharge of 10% is applicable on the income tax and the
same has to be increased by the cess at 4%. So the effective rate of tax will
be 25.168% (22 x 1.10 x 1.04) in case of Section 115BAA and 17.16% for Section 115BAB.
Minimum
Alternate Tax (MAT)
As per
the Ordinance, MAT will not be applicable for those domestic companies opting
to pay Income Tax as per the provisions of Section 115BAA and Section 115BAB of
the Income Tax Act. For those companies who are not opting or eligible to opt
the scheme, the rate of MAT will be 15% from FY 2019-20. The same was 18.50% earlier,
and the same is reduced now to 15%.
The Conditions for availing the reduced tax rate is discussed in detail below:
Section 115BAA – Tax Rate of Existing Companies – 22%
The following are the conditions to be complied
with by the existing domestic Companies
Following deductions should not be claimed while calculating total income.
Section 10AA – Exemption for special economic zone.
Section 32(1)(iia) – Additional deduction for plant and machinery for setting up manufacture or production of any article or thing on or after 01.04.2015
Section 32AD-Investment in new plant & machinery in notified backward areas in certain states.
Section 33AB – Tea Development/Coffee Development/Rubber Development Account- Deduction for assesses carrying on business of growing and manufacturing Tea/Coffee/Rubber on deposit of amount in any national bank as per the scheme approved by Tea/Coffee/Rubber board.
Section 33ABA – Site Restoration Fund-Deposit by an assesse carrying on business consisting of the prospecting for or extraction or production of petroleum or natural gas.
Section 35 – Scientific Research
Sum paid to research organization – Section 35(ii)
Sum paid to a company to be used by it for scientific research – Section 35(iia)
Sum paid to a research association/university/college/other institution undertaking research in social science or statistical research – Section 35(iii)
Sum paid to National laboratory/university/IIT with a specific direction to use for scientific research – Section 35(2AA)
Expenditure incurred by a company engaged in the business of bio-technology and incurs expenditure in scientific research – Section 35(2AB)
Section 35AD-Expenditure on specified business, whole of any expenditure of capital nature incurred for specified business.
Section 35CCC – Expenditure on agriculture extension project by an assessee.
Section 35 CCD-Expenditure on skill development by a company.
Heading C of Chapter VI Aexcept section 80JJAA In respect of employment of new employees. Deduction in respect of profit from:
Newly established industrial undertaking or hotel business in backward areas – Section 80HHNewly established SSI undertaking in certain areas – Section 80HHA
Projects outside India – Section 80HHB
Certain type of housing projects – Section 80HHBA
Profits retained for export business – Section 80HHC
Earnings in convertible foreign exchange – Section 80HHD
Export of computer software – Section 80HHE
Export /Transfer of film/software etc. – Section 80HHF
Industrial undertaking after a certain date etc – Section 80 I
Industrial undertaking /enterprises engaged in infrastructure development etc. – Section 80IA
Undertaking /enterprise engaged in development of SEZ – Section 80IAB
Eligible start up – Section 80IAC
Industrial undertaking other than infrastructure development undertaking – Section 80IB
Certain undertaking/enterprise in certain special category states-Section 80 IC
Hotels & Convention centers in specified area – Section 80ID
Certain undertaking in North-Eastern states – Section 80IE
Business of collecting & processing biodegradable waste – Section -80 JJA
Incomes of offshore banking units & IFSC – Section 80LA
B. Set
off carry
forward loss attributable to above deductions (Point 1), such losses shall be
deemed to have been given full effect.
C. Additional
depreciation on plant & machinery should not be claimed.
D.
Income tax return should be filed within the due date mentioned under section
139(1)
E.
Option once exercised shall apply to the subsequent assessment years and the
same cannot be with draws for the same or any other previous year.
2. SECTION 115 BAB – Tax on new domestic manufacturing companies – Tax Rate 15%.
The following
are the conditions to be complied with by the manufacturing domestic Companies,
incorporated on or after 01st October, 2019.
Company
set- up and registered on or after 01.10.2019 and has commenced manufacturing
on or before 31.03.2023.
Not
formed by splitting up or reconstruction of a business already in existence. Exception
will be undertaking which is formed as a result of reestablishment of any
undertaking as referred in section 33 B/ value of such P&M should not
exceed 20% of value of total P&M.
Doesn’t
use plant & machinery previously used. Exception will the P&M used
outside India which is not used in India earlier and claimed depreciation and
the same was imported into India.
Doesn’t
use any building previously used as hotel or convention center.
Should
not engaged in any other business other than business of manufacture/production
of article/thing and research in relation to such article/thing.
All
Conditions related to section 115BAA also needs to be complied with.
Assessing
officer have power to add reasonable amount of profit owing to close connection
between the company and the other person or for any other reason, the course of
business between them is so arranged that business transacted between them
produces to the company more than the ordinary profits.
In
case of specified domestic transaction under section 92BA, the amount of profit
is determined having regard to arm’s length price.
Karthik & Sunil 