GST News and Updates - October 2019

GSTR-3B is officially a monthly tax return

GSTR-3B was introduced as a stop-gap measure since the Government Portal was not ready with the actual monthly return GSTR-3. Various time limits such as last date to claim ITC, last date to correct and amend invoices were linked to the filing of monthly return. The Gujarat High Court had ruled that GSTR-3B is not a tax return but merely a form to pay taxes. On 9th October, 2019, the Central Government through CGST Notification 49/2019 nullified the High Court ruling. The notification amended CGST Rule 61 - Form and manner of submission of monthly return and declared that GSTR-3B is a replacement for GSTR-3. This rule change take retrospective effect from July 1, 2017.

ITC Claim only against Invoices reflecting GSTR-2A

Rule 36 - Documentary requirements and conditions for claiming input tax credit limits taxpayers from availing Input Tax Credit in their GSTR-3B if their Suppliers have not uploaded details of Invoices in their GSTR-1. Recipient can take credit only upto 20% above ITC reflecting in GSTR-2A. If for example, credit reflecting in GSTR-2A is Rs. 100, the total credit that can be claimed is Rs. 120.

Other amendments to rules

CGST Notification 49/2019 amended other rules as well:

Relaxation in Filing of GST Annual Return

Through CGST Notification 47/2019, the Central Government announced the following:

Notification of due dates for filing returns

Due dates of GSTR-1 and GSTR-3B Returns

The Government announced due dates for GSTR-1 and GSTR-3B returns for filing periods October 2019 through March 2020. Refer to GSTZen's Due Date calendar for up-to-date information.

Transition Returns - Due dates extended

The last dates for filing Transition return forms GST TRAN-1 and GST TRAN-2 are extended to 31, December 2019 and 31, January 2020 respectively.