GST News and Updates – November 2021


Advisory for taxpayers on Form GSTR-2B

1. Form GSTR-2B is an auto-drafted ITC statement which is generated for every normal taxpayer on the basis of the information furnished by their suppliers in their respective GSTR-1/IFF, GSTR-5 (non-resident taxable person) and GSTR-6 (input service distributor). This statement indicates availability and non-availability of input tax credit to the taxpayer against each document filed by their suppliers and is made available to the taxpayers in the afternoon of 14th of every month.

2. The links below provide detailed information yes GSTR 2B:

          1. 1) advisory_gstr_2b_12_10_2021.pdf – for detailed advisory

          1. 2) –for User Manual

          1. 3) – for FAQs

Improvements in GSTR-1


A revamped & enhanced version of GSTR-1/IFF is being made available on the GST Portal to improve the taxpayer experience. These enhancements, would enable the Saving of the GSTR-1 details on the GST Portal. The changes would be implemented in two phases, to ensure that disruption to the taxpayers is minimal, and valuable feedback received is accounted for in subsequent phase.

The following provides an overview of the updated functionality and their benefits in Phase 1:

  1. Reorganized GSTR-1 Dashboard – Taxpayers will now experience an enhanced online user interface in GSTR-1/IFF with the following changes:
    1. GSTR-1/IFF has been grouped in two sections namely ADD RECORD DETAILS and AMEND RECORD DETAILS.
    2. All the tables/tiles for new details addition shall be available under ADD RECORD DETAILS section while all the tables/tiles for amending previously filed details shall be available under AMEND RECORD DETAILS Re-arrangement of tables/tiles shall ensure that taxpayers can navigate in an easy manner to add or amend record details in the GSTR 1/IFF.
    3. By default, ADD RECORD DETAILS section shall be in expanded form (visible) and AMEND RECORD DETAILS section shall be in collapsed form (hidden). Taxpayers can expand or collapse these sections as per the requirement. As it has been observed that only around 1% of details added are amended by taxpayers, that it why it will be in collapsed mode.
    4. E-invoice advisory and help buttons have been moved to the top of the dashboard page for ease of access. It also is notable that e-invoice provisions are applicable only to selected taxpayers, having aggregate turnover above a particular
  1. Table/Tile Document Counts– The document count for each tile (table) has been made more informative with color coding. The status of uploaded (Saved, Pending, Errored) documents with their count will also be made available. Taxpayer can now ascertain if there are any pending or errored records in any of the tables of GSTR-1/IFF from the dashboard itself. System shall update the count of records in the tiles on real time basis which will help in easy reconciliation. In case any record added by taxpayer is errored out, then the tile will be highlighted in red A sample image of the same is mentioned below for information.
  2. Enhancement in B2B and CDNR table/tile – Taxpayers will now be able to view a new record details table with the details of the recipient -wise count of records. Record details table will have the following columns:
    1. Taxpayer type – Type of recipient taxpayer (Regular, SEZ, and Composition) shall be displayed in this
    2. Processed invoice – Number of processed invoices will be available in this column with hyperlink. On clicking it, the taxpayer will navigate to document details page to view all the records added for the respective recipient(s).
    3. Pending/errored invoice – Number of pending invoices will be available in this column with On click of it, taxpayer can navigate to pending/errored records details page to view all the records which are in pending or errored status for the respective recipient(s).
    4. Add Invoice – Taxpayer can add new records for the selected recipient. On click of + symbol, add page shall open with pre-filled recipient GSTIN. On click of save, add page will reopen so that taxpayers can continue to add multiple
    5. Search – A general search functionality has been added in Document details page. Using this, taxpayer can now search specific record pertaining to a specific This will help taxpayer to search added records seamlessly.
  3. Records per page feature – System will now provide the records per page feature in all the tables under ADD RECORD DETAILS section leading to ease of This feature will allow the taxpayers to customized number of records to be viewed on per page. By default, the Records per page will be set at 10 records per page and can be increased to view 50 records per page.
  4. Steps to file GSTR-1/IFF – A new check has been introduced in the system which will check that whether the taxpayer has added new records after generating the summary. Taxpayers may please note that there would be changed flow in such a situation. In case new records have been added, the SUBMIT and PREVIEW buttons will be disabled till a new summary has been generated after updating records. This check will ensure that filing of GSTR-1/IFF always happens with the correct & update summary only, and no mistake happens in this Taxpayer can upload details of outward supplies and file GSTR-1/IFF by following the steps enumerated below:

    1. Taxpayer can add or amend records in respective tables of GSTR-1/IFF.
    2. Once the records are saved, taxpayer shall click on GENERATE SUMMARY
    3. After the summary is successfully generated, system will enable PREVIEW and SUBMIT buttons.
    4. If the taxpayer intends to verify summary of GSTR-1/IFF, taxpayer can click PREVIEW button to download summary
    5. Taxpayer can make necessary changes before SUBIT/FILE of GSTR-1/IFF. However, if any new records are added after generating the summary, the SUBMIT and PREVIEW buttons will be disabled till a new summary has been generated by clicking GENERATE SUMMARY button after updating
    6. Taxpayer will also be informed to generate new summary, in case the latest summary is not available/generated.
    7. After the changes done in GSTR-1/IFF, taxpayer shall click on Generate summary button and can submit/file GSTR-1/IFF.


KL HC Orders GST Council to Submit Reason Not Including Diesel, Petrol

Kerala High court asked the GST official that why the products of the petroleum do not come beneath GST, must furnish the reply for the same in 10 days.

Hearing public interest litigation (PIL), a bench of Chief Justice S Manikumar and Justice Shaji P Chaly read the GST Council to justify grounds for not including petrol and diesel under the GST regime.

“Now different rates are being charged in different states and the same is due to a different tax rate levied by the state governments under their fragmented taxing policies. This is an impediment to harmonised national market as contemplated under Article 279(A) 6 of the constitution,” PIL mentioned. It also rendered that the state and the central taxes held with 60% of the rate of 1 litre of fuel.

If petrol and diesel are drawn beneath the GST then the market will be in coordination across the nations and the highest taxable cost shall be 28%. It is implemented that despite people who are indirect clients of fuel gets negatively influenced by the rise in the cost of the fuel.

“A welfare state must be the one where everyone is in a position to bear expenses of basic amenities. The unprecedented hike in fuel prices push the public to immense hardships by which their right to life guaranteed under Article 21 is violated, they rendered.”

PIL Respondents are the Union of India, Kerala Government, Petroleum Secretary, Goods and Service Tax Council and three major oil companies.

The fuel must come beneath the GST upon this discussion the union government and the GST council can not argue it poses serious executions on revenue collection. A constitutional duty was directed on the GST council to build some serious suggestions to engage petrol and diesel beneath the GST the PIL mentioned “To declare the non-inclusion of petrol and diesel under the GST regime are violative of the Article 14 and 21 of the constitution, it mentioned.”

Clarification on B2C QR Code

  • Issue – In some cases where, though the service recipient is located outside India and place of supply of the service is in India as per IGST Act 2017, the payment is received by the service provider located in India not in foreign exchange, but through other modes approved by RBI. In such cases, the supplier will not be fulfilling the condition specified in S. No. 4 of the Circular No. 156/12/2021 dated 21st June 2021, and accordingly, will be required to have dynamic QR code on the invoice. It has been also represented that relaxation from dynamic QR code on the invoices in such cases should be available if the payment is received through any RBI approved mode of payment, and not necessarily in foreign exchange.
  • Clarification – It is observed that from the present wording of S. No. 4 of Circular No. 156/12/2021 dated 21stJune 2021, doubt arises whether the relaxation from the requirement of dynamic QR code on the invoices would be available to such supplier, who receives payments from the recipient located outside India through RBI approved modes of payment, but not in foreign exchange. It is mentioned that the intention of clarification as per S. No. 4 in the said circular was not to deny relaxation in those cases, where the payment is received by the supplier as per any RBI approved mode, other than foreign exchange.

Update on Registration of Cancellation

  • CBIC has notified the update related to the registration of cancellation form REG-16 on the website. “Taxpayers can now withdraw their application for cancellation of registration (filed in Form REG-16) unless the tax officer has initiated action on it.”

GST on notice pay, group insurance, phone bill: AAR

GST will be applicable on employee recoveries such as notice pay, group insurance and telephone bill, an Advance Authority of Advance Ruling (AAR) has said.

The ruling said that as in the case of notice pay, the company is actually “providing a service” to an employee and hence GST should be applied on that. Under the GST framework, tax is levied on any activity that is viewed as supply of service-whether directly or deemed supply.

This tax complication comes at a time when top companies are complaining of high attrition. The ruling in the case of Bharat Oman Refineries is set to result in scrutiny by the tax department in the coming months as there’s already confusion over the issue.

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.