GST News and Updates - November 2019

Updates to GST return filing forms

GSTR 9 and GSTR 9C due date extended and forms simplified

GSTR 9 and GSTR 9C due date for the financial year 2017-18 extended to 31st December 2019. Due date for the financial year 2018-19 is extended to 31st March 2020.

Also, CBIC has simplified the GSTR 9 and GSTR 9C forms making some of the tables optional fields. Read our detailed article on GSTR 9 and GSTR 9C simplified forms.

Clarification on FORM GST RFD-01

The Circular number - 125/2019 serves as a user manual which a taxpayer can refer to for the Fully Electronic Refund process according to the FORM GST RFD-01. Read the complete Circular number - 125/2019 for more information.

Updates on Law and Procedure

Restriction in availing Input Tax Credit - The 20% rule

CGST Rule – 36 now limits taxpayers from availing Input Tax Credits (ITC) if their suppliers have not reported the invoices in GSTR 2A. Recipient can take credit only up-to 20% above eligible ITC reflecting in GSTR 2A. Read our article on Fill ITC in GSTR 3B from GSTR 2A Invoices to understand how GSTZen can help in staying compliant with the 20% ITC rule.

E-Invoicing made mandatory for medium-to-large companies

Any businesses with turnover of Rs.500 crore or more need to take up e-Invoicing from 1 January 2020 on voluntary basis. Businesses with turnover of Rs.100 crore or more will begin this process voluntarily from 1 February.

From 1 April, e-Invoicing will become mandatory for both classes of companies. E-Invoicing will remain voluntary for smaller companies. However, it will help in building their credit history.

Read GSTZen's article on E-Invoice Concept for better understanding of the complete E-invoicing process and FAQs.

Union Territory of Ladakh creation

On August 5 2019, the Central Government stripped Jammu and Kashmir of its special status given under Article 370, hence splitting it into Union Territories; Union territory of Jammu and Kashmir and Union territory of Ladakh. This change is in existence since October 31, 2019.

Considering this change, under Central Tax Notification - 51/2019, the government has declared that Jammu Commissionerate has jurisdiction over Union Territory of Jammu and Kashmir and Union Territory of Ladakh. Read the CGST Notification 51/2019.

Issue Document Identification Number (DIN) by CBIC on any communication

According to the Circular number - 122/2019, any communication issued by the officers of the Central Board of Indirect Taxes and Customs (CBIC) has to generate and quote a Document Identification Number (DIN) to tax payers and other concerned persons.

The only situations when a communication may be issued without the electronically generated DIN are:

  • When there are technical difficulties in generating the electronic DIN

  • When communication regarding investigation/enquiry, verification etc. is required to issued at short notice or in urgent situations and the authorized officer is outside the office in the discharge of his official duties.

Any specified communication which does not bear the electronically generated DIN and is not covered by the exceptions mentioned above, shall be treated as invalid and shall be deemed to have never been issued. Read the complete Circular number 122/2019.

Selection of GST Suvidha Provider (GSP) - 3rd batch

The selection process for applicants of GST Suvidha Providers (GSP) is released. GSTN has on-boarded these suvidha providers based on the GSP's financial ability and IT capability to deliver the necessary services to tax payers tp become GST compliant with the new GST regime. Read out article on GST Suvidha Provider list.