Newsletter

In line with the decision of 33rd Meeting of GST council today, the Due Date of GSTR 3B for the month of January 2019 has been extended by two days. However, for the state of Jammu and Kashmir, the due date is extended by eight days. The extract of the relevant message on the GST Portal is reproduced herein-below:

“Due date of filing GSTR-3B for the tax period January, 2019 has been extended up to 22nd February, 2019. Only for J&K it is extended up to 28th Feb 2019”

However, official Notification is expected to be released shortly.

CBIC issues various circulars with respect to the following:

• Inter-State supplies made to unregistered persons to be mentioned in Form GSTR – 1 and Form GSTR – 3B
• Name of State to be specifically mentioned in invoice in case of inter-State Supplies
• One time exception to tax payers who have reported tax liability  as intra-State  instead of inter-State supplies in case of supply of warehoused goods

In the wake of GST Amendment Act already coming into effect from 01st February 2019, several Circulars / Notifications are issued / amended / rescinded to be in line with such amendments: 

• CBIC amends various circulars vide Circular No. 88/07/2019-GST dated 01st February 2019 giving effect of amendments made applicable from 01st February 2019 which inter alia includes amendments in relation to realization of proceeds in INR in respect of exports to Nepal and Bhutan, empowerment to extend time limit to bring back goods from job worker, penalty on seized goods, modes of recovery of demand raised and suspension of registration etc.
• Further, CBIC has also rescinded Circular No. 03/01/2019-IGST dated 25th May, 2018 vide Circular No. 04/01/2019-GST dated 01st February 2019, since the clarification in the said circular related to supply of warehoused goods before clearance for home consumption has already been inserted in Act vide amendments and made applicable from 01st February 2019.

CBIC further issues Notification for extension of due date for filing for GSTR-7 for the month of January 2019 till 28th February 2019.

Government extends time limit for filing Form GSTR-7 and Form GST TRAN-1.

CBIC vide Notification 07/2019 – Central Tax dated 31 January 2019 has further extended the time limit for filing GSTR-7 (by a registered person required to deduct tax at source u/s 51) for the month of October 2018 to December 2018 up to 28 February 2019. 

Further, CBIC vide Order No. 01/2019 - GST dated 31 January, 2019 has extended the time limit for submitting the declaration in FORM GST TRAN-1  in cases where the registered persons could not submit the said declaration by the due date, on account of technical difficulties on the common portal and whose cases have been recommended by the Council.

The Interim Finance Minister, Shri Piyush Goyal, has presented the Interim Union Budget 2019-2020. Key Highlights are as follows:

• Full tax rebate for individuals with income upto Rs. 5 lacs after 80C deduction (No tax payable on income upto 6.5 lacs, if the taxpayer takes benefit of 80C deduction). No change in tax rates announced.
• Standard deduction for salaried employees increased from 40,000 to 50,000
• Exemption u/s Section 54F can be availed on investment in 2 houses upto Capital Gains of 2 crores
• Threshold limit for TDS u/s 194I for rental income raised from 1.8 lacs to 2.4 lacs
• Limit for deduction of TDS u/s 194A on income from PO and Bank Interest increased from 10,000 to 40,000
• Benefit of filing GST Quarterly returns extended to taxpayers having turnover upto 5 crores 
• All assessments proposed to be conducted electronically in next 2 years
• No Notional Rent on second house property. Option provided to claim nil annual value in respect of any two houses, declared as self-occupied, instead of one such house as currently provided.
• Relief in respect of unsold inventory exnteded up to two years, instead of existing one year, from the end of the financial year in which the certificate of completion is obtained from the competent authority.
• Time limit for availing deduction u/s 80IBA for obtaining approval of the housing project extended till 31 March 2020. 

CBIC vide Notification No. 03/2019 – Central Tax dated 29th January 2019 have made further amendments in the Central Goods and Services Tax Rules, 2017, which shall come into force from 01st February 2019. Amendments in the rules inter-alia includes the following:

• Substitutes the term ‘Composition Rules’ appearing in Chapter II with ‘Composition Levy’ while prescribing particulars required to be specified in credit/debit notes; 
• Substitutes Rule 11 which inter-alia specifies that any person having multiple places of business within a State or a Union territory, requiring a separate registration u/s 25 (2) shall be granted separate registration subject to conditions; 
• New rules viz Rule 21A (Suspension of registration), Rule 41A (Transfer of credit on obtaining separate registration for multiple places of business within a State or Union territory.) have also been inserted;
• Also provides that the person who has obtained separate registration for multiple places of business can transfer the unutilised ITC lying in his electronic credit ledger to any or all of newly registered place of business in the ratio of the value of assets held by them at the time of registration.
• Amends rules related to refund and amends Form GST RFD-01 by adding declaration in relation to collection of tax from SEZ Unit.

• CBIC vide Notification No. 02/2019 – Central Tax dated 29th January, 2019 have notified 1st February, 2019 as the date on which the provisions of the all the Amendment Acts 2018 shall come into force except for certain specified provisions of the CGST(Amendment) Act, 2018.
• CBIC vide Notification No. 04/2019 – Central Tax dated 29th January, 2019 have inserted and substituted various terms in the Notification No.2/2017- Central Tax, dated the 19th June, 2017 which provided for jurisdiction of various officers of GST for different matters.
• CBIC vide Notification No. 05/2019 – Central Tax dated 29th January, 2019 has made further amendments in Notification No.8/2017 - Central Tax, dated the 27th June, 2017 which provided for the turnover limit for Composition Levy for CGST. The Notification has now provides reference to Rule 7 of CGST Rule, 2017 which provides for the rate of tax for various composition dealers

West Bengal AAR rules that ITC is not available for lease rent paid during pre-operative period for the leasehold land on which the resort is being constructed for furtherance of business when the same is being capitalized and treated as capital expenditure

Karnataka High Court rules that Writ Petitions cannot be filed where the matter can be addressed by the GST Authorities / Appellant Authorities and accordingly relegates the Assessee to the Nodal Officer for adjudication based on the merits of the case, after providing reasonable opportunity to the petitioners 

The last date of filing VAT Audit report in the Maharashtra in Form e-704 has been extended till 28 February 2019.