GST News and Updates – October 2021

 

Resumption of Blocking of E-Way Bill (EWB) generation facility.

1. The blocking of E way bill generation facility had been temporarily suspended by Government on account of Covid pandemic. In terms of Rule 138 E (a) and (b) of the CGST Rules, 2017, the E Way Bill generation facility of a person is liable to be restricted, in case the person fails to file their return in Form GSTR-3B / statement in CMP-08, for consecutive two tax periods or more, whether Monthly or Quarterly.

2. The blocking of EWB generation facility has now resumed on the EWB portal for all the taxpayers. Going forward, from the tax period August, 2021 onwards, the System will periodically check the status of returns filed in Form GSTR-3B or the statements filed in Form GST CMP-08 as per the regular procedure followed before pandemic, and block the generation of EWBs as per rule.

3. For details of blocking and unblocking EWB, Click on below link:

• https://tutorial.gst.gov.in/userguide/returns/index.htm#t=FAQs_unblockingewaybill.htm

Availability of Input Tax Credit (ITC) for FY 2020-21

1.As per Section 16(4) of CGST Act, 2017, no taxpayer shall take input tax credit in respect records (invoices and debit notes) for supply of goods or services (or both) for Financial Year 2020-21 after the due date of furnishing the return for the month of September 2021. The due date for the GSTR-3B for September 2021 is either 20th October 2021 for monthly filers and 22nd or 24th October 2021 depending on the State/UT of registration of the taxpayer. In view of the same, the following may kindly be noted:

i.)Records (invoice or debit notes) pertaining to Financial Year 2020-21 reported in GSTR-1 after due date of GSTR-3B of September 2021 will not reflect as “ITC Available” in GSTR-2B of the recipients. Such records will reflect in “ITC Not Available” section of GSTR-2B and such ITC shall in turn not be auto-populated in GSTR-3B.

ii.) Records (invoice or debit notes) pertaining to Financial Year 2020-21 reported in GSTR-1 after due date of GSTR-3B of September 2021 will also not reflect as “ITC as per GSTR-2A” in Table-8A of GSTR-9 of the recipients.

2.The taxpayers may take note and ensure that their records pertaining to Financial Year 2020-21 are reported on or before the due date of their GSTR-3B for the month September 2021, or for the quarter of July to September 2021 in case of quarterly GSTR-3B filers.

GST Revenue collection for September, 2021

 

  • The gross GST revenue collected in the month of September 2021 is 1,17,010 crores of which CGST is 20,578 crore, SGST is 26,767 crore, IGST is 60,911 crore (including 29,555 crore collected on import of goods) and Cess is 8,754 crore (including 623 crore collected on import of goods).
  • The revenues for the month of September 2021 are 23% higher than the GST revenues in the same month last year.
  • During the month, revenues from import of goods was 30% higher and the revenues from domestic transaction (including import of services) are 20% higher than the revenues from these sources during the same month last year. The revenue for September 2020 was, in itself at a growth of 4% over the revenue of September 2019 of ` 91,916 crore.
  • The average monthly gross GST collection for the second quarter of the current year has been 1.15 lakh crore, which is 5% higher than the average monthly collection of 1.10 lakh crore in the first quarter of the year. This clearly indicates that the economy is recovering at a fast pace.
  • Centre had also released GST compensation of Rs. 22,000 crores to States to meet their GST revenue gap.