Updates in GST Compliances

Extension of time limit for furnishing of the annual return specified under section 44 of the CGST Act, 2017 for the financial year 2018- 2019 till 30.09.2020: 
(Notification no.41/2020- Central Tax dated 05th May 2020)

Amendment to CGST Rules in relation to the method of verification of return and manner of filing Nil Return through SMS: 
(Notification No.38/2020-Central Tax dated 05th May 2020)

  • Verification of GSTR 3B through Electronic Verification Code (EVC): Facility of verification of Form GSTR 3B through electronic verification code (EVC) is now given to registered persons registered under the provisions of Companies Act’2013. This facility is available for filing Form GSTR 3B during the period from 21st April 2020 to 30th June 2020.
  • Filing and verification of NIL Return through short  messaging  service (SMS):

Rule 67A has been inserted to CGST Rules’2017 for registered persons who want to file NIL Return in Form GSTR 3B to file the same through SMS and verify the same by a registered mobile number based One Time Password facility. This will be effective from the date to be notified.

Amendments to Special procedure for corporate debtors undergoing the corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016 : (Notification No. 39/2020 – Central Tax dated 05th May 2020)

As per Notification No 11/2020- Central Tax dated 21st March’2020 in case of corporate debtors under IBC 2016, undergoing the corporate insolvency resolution process and the management of whose affairs are being undertaken by IRP or RP were required to follow a special procedure for registration, return and Input Tax Credit for the purpose of compliance of corporate debtor. Now the said notification is amended to not include those corporate debtors who have furnished the statements under section 37 and the returns under section 39 of the said Act for all the tax periods prior to the appointment of IRP/RP.

Also, as per Paragraph 2 of the said notification dated 21st March’2020, IRP/RP appointed are required to obtain new registration in all states where such corporate debtor was registered within 30 days from date of his appointment and as per proviso to Paragraph 2, in cases where the IRP/RP has been appointed prior to the date of this 
 notification registration needs to obtained within thirty days from the commencement of the said notification dated 21st March’2020,
 Relaxation has been provided for obtaining new registration within thirty days of the appointment of the IRP/RP or by 30th June’2020, whichever is later.

Extension for the validity of E-Way Bill: (Notification No. 40/2020-Central Tax dated 05th May 2020)

The e-way bill generated on or before 24.03.2020 and its period of validity expiring from 20.03.2020 to 15.04.2020, the validity period of such an e-way bill has been extended till 31.05.2020.

Extension of due for filing of Form GSTR 3B for registered person having principal place of business in the union territory of Ladakh  (Notification No. 42/2020 dated 05th May 2020)

Due Date for filing return in Form GSTR 3B for registered person having principal place of business in the union territory of Ladakh for the period from January 2020 to March’2020 is extended till 20th May 2020.

Enabling Rules for making an effective transfer of cash balance from one head to another head by filing Form PMT 09 on GST Portal (Notification No. 37/2020 dated 28th April 2020)

The provisions Rule 87 (13) of CGST Rules’2017 has been made effective from 21st April’2020 which enables to transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger to the electronic cash ledger for integrated tax, central tax, State tax or Union territory tax or cess.

Considering the present difficulties faced by the taxpayer and in order to ease the financial burden in case of deposit of tax in the wrong head, facility to transfer the same through PMT 09 has been enabled w.e.f 21.04.2020.

Clarification in respect of certain challenges faced by the registered persons in the implementation of provisions of GST Laws  (Circular No. 138/08/2020 dated 06th May 2020)

This circular has provided clarification for certain challenges faced in relation to compliance of the following:

a. Registration by IRP/RP of a corporate debtor going IBC process:

Issue 1: Notification No. 11/2020 – Central Tax dated 21.03.2020, issued under section 148 of the CGST Act provided that an IRP / CIRP is required to take a separate registration within 30 days of the issuance of the notification.

Clarification: The Time limit for taking separate registration by IRP/RP has been extended vide notification No. 39/2020- Central Tax, dated 05.05.2020 which is now within thirty days of the appointment of the IRP/RP or by 30th June’2020, whichever is later.

Issue 2: Clarification has been sought whether IRP would be required to take a fresh registration even when they are complying with all the provisions of the GST Law under the registration of Corporate Debtor (earlier GSTIN) i.e. all the GSTR-3Bs have been filed by the Corporate debtor / IRP prior to the period of appointment of IRPs and they have not defaulted in return filing:

Clarification: As per Notification No. 39/2020 – Central Tax, dated 05.05.2020 IRP/RP would not be required to take a fresh registration in those cases where statements in FORM GSTR-1 under section 37 and returns in FORM GSTR-3B under section 39 of the CGST Act, for all the tax periods prior to the appointment of IRP/RP, have been furnished under the registration of Corporate Debtor (earlier GSTIN).

Issue 3: Another doubt has been raised that the present notification has used the terms IRP and RP interchangeably, and in cases where an appointed IRP is not ratified and a separate RP is appointed, whether the same new GSTIN shall be transferred from the IRP to RP, or both will need to take fresh registration.

Clarification: i. In cases where the RP is not the same as IRP, or in cases where a different IRP/RP is appointed midway during the insolvency process, the change in the GST system may be carried out by an amendment in the registration form. Changing the authorized signatory is a non- core amendment and does not require the approval of the tax officer. However, if the previously authorized signatory does not share the credentials with his successor, then the newly appointed person can get his details added through the  Jurisdictional authority as a Primary authorized signatory.

  1. The new registration by IRP/RP shall be required only once, and in case of any change in IRP/RP after initial appointment under IBC, it would be deemed to be a change of authorized signatory and it would not be considered as a distinct person on every such change after the initial appointment. Accordingly, it is clarified that such a change would need an only change of authorized signatory which can be done by the authorized signatory of the Company who can add IRP /RP as a new authorized signatory or failing that it can be added by the concerned jurisdictional officer on request by IRP/RP.