Chapter 4


Return filing periodicity

  • Earlier the provisions of the Act required a person to file their GSTR 3/GSTR 3B by 20th of the next month. So, even though the government wished to make this return quarterly for a select group of taxpayers, it could not circumvent the provisions of the Act

  • Through this amendment, the periodicity and time for filing of this return is now allowed to be prescribed through the rules

  • Further, an enabling proviso has been inserted to allow the Government to notify certain category of taxpayers who will be allowed to file this return on a quarterly basis.

Revised Return

  • if any registered person after furnishing a return under sub-section (1) ………………………………………, he shall rectify such omission or incorrect particulars in such form and manner as may be prescribed subject to payment of interest under this Act
  • Effects of the amendment

1) Earlier, any mistake or omission could be corrected through the return of the month in which the mistake/omission is noticed

2) Now, the process of correction of such mistakes will be notified through the rules.

3) It is proposed to introduce amendment return as per the new return filing mechanism for correction of past mistakes.

4) So, the complete mechanism for correction may be notified through the rules

Section 43A-Procedure for furnishing return

  • Insertion of New Section 43A-Procedure for furnishing return and availing input tax credit
  • Every registered person shall in the returns furnished under sub-section (1) of section 39 verify, validate, modify or delete the details of supplies furnished by the suppliers.

  • The procedure for availing input tax credit in respect of outward supplies not furnished on the common portal may include the maximum amount of the input tax credit which can be so availed, not exceeding twenty per cent of the input tax credit available, on the basis of details furnished by the suppliers under 43A(3)

  • Details furnished under 43A(3) shall be deemed to be the tax payable by him

  • The supplier and the recipient of a supply shall be jointly and severally liable to pay tax or to pay the input tax credit availed where the details have been furnished but the return is not filed

  • The limit for recovery of the above amount shall not exceed one thousand rupees

Impact of 43A

  • Recipients
  • ITC is subject to 43A overriding sec 16.

  • GSTR 2 in new form : The registered recipient is required to verify, validate, modify or delete the details of supplies furnished by the suppliers

  • Missing Credit: Where the outward supplies are not furnished by the supplier, the maximum amount of ITC will be given through the procedure. This will not exceed 20% of the ITC available in any situation

  • Supplier
  • Procedure for declaration of outward supplies will also be prescribed therein.

  • The tax on details of outward supplies declared by the supplier will be deemed to be payable by the supplier.

  • Joint Liability :
  • The supplier and recipient have been made jointly and severally liable to pay tax for details furnished/not furnished by the supplier in respect of which the return has not been furnished

  • The procedure of recovery of this amount may be prescribed through the rules.

  • The procedure, safeguards and threshold of the tax amount in relation to outward supplies for the supplier can be prescribed separately for a registered person:
  • Within six months of taking registration

  • Who has defaulted in payment of tax and the default of which continues for more than 2 months from the due date of payment of the default

GST Amendment Act 2018

  • Simplification of Returns:
  • A new provision is being introduced by inserting section 43A, to enable the new return filing procedure as proposed by the Returns Committee and approved by the GST Council. However, the detailed mechanism of giving effect to the above proposal is awaited.

  • Provisions have been inserted to provide for prescribing the procedure for quarterly filing of returns for specified class of Registered persons.

  • GST Practitioners: Widening scope of functions
  • It is proposed to allow the GST practitioner to perform other functions such as, filing refund claim, filing application for cancellation of registration etc.., apart from furnishing the details of outward and inward supplies and various returns on behalf of a registered person.

Sections 49A and 49B-Method of utilisation of ITC – IGST

  • Change
  • Utilisation of input tax credit subject to certain conditions and Order of utilisation of input tax credit

  • The input tax credit on account of central tax, State tax or Union territory tax shall be utilised towards payment of integrated tax, central tax, State tax or Union territory tax, as the case may be, only after the input tax credit available on account of integrated tax has first been utilised fully towards such payment.

  • Impact
  • The new process of utilization requires the utilization of IGST first against payment of any output tax liability in the form of CGST/SGST/UTGST/IGST

  • The balance of CGST/SGST/UTGST can be used only when the balance of IGST is exhausted

  • This proviso has been inserted to minimise fund settlement on account of IGST

  • This has been amended to restrict the utilisation of SGST/UTGST credit available against payment of IGST only when the balance in CGST credit is not available for payment of IGST.

GST Amendment Act 2018

Payment of Tax: Order for utilization of credits

  • To allow fund settlement on account of IGST, it has been proposed that a registered person would be able to utilize credit on account of CGST, SGST/UTGST once the registered person has exhausted all the ITC on account of IGST.

  • It has been further proposed to insert an enabling provision 5A in Section 49 of the CGST Act that allows the Government, on the recommendation of the GST council, to provide a specific order in which a registered person can utilize Input tax credit viz. integrated tax, central tax, State tax or Union territory for the settlement of the tax liability.

Matching concept – Ecom Operators

  • Where the details of outward supplies furnished by the operator under subsection (4) do not match with the corresponding details furnished by the supplier under section 37 or section 39, the discrepancy shall be communicated to both persons in such manner and within such time as may be prescribed.
  • Impact
  • Due to the continuation of GSTR 3B under Section 39, the concept of matching against GSTR 2 could not be put in place.

  • The provision to carry out matching between the following has been enabled:

  • Return by Ecommerce operator under GSTR 8

  • Statement of outward supplies under GSTR 1 or Monthly return as per GSTR 3 / GSTR 3B