Latest Amendments in GST
There have been certain relaxations/ amendments keeping in view the difficulties faced by the tax payers due to Covid-19 lockdown. Brief summary of the same is given here as under:
1. Reduction/Waive off in late fees for past returns
Late fees for non-furnishing form GSTR-3B for the tax period from July 2017-January 2020 has been reduced/waived as under:-
- ‘Nil’ late fees if there is no tax liability;
- Maximum late fees capped at INR 500/- per return if there is any tax liability.
Note:- The reduced rate of late fees would apply for all the GSTR-3B returns furnished between 1st July 2020 and 30th September 2020.
2. Revocation of cancellation of registration
Where GST registration is cancelled up to June 12, 2020, a one-time option has been provided to taxpayers to apply for revocation of cancellation of registration till September 30, 2020.
3. Clarification in respect of GST on Director’s remuneration
As per the GST law, services provided by an employee to the employer in accordance with the employment agreement are neither considered as supply of goods nor supply of services. Hence, GST is not leviable in such cases. However, if the services are not classifiable as employer-employee relationship, then GST is levied on such remuneration. In that case, company (service recipient) will be liable to deposit the GST dues on reverse charge mechanism (“RCM”) basis. CBIC has clarified the applicability of GST on director’s remuneration vide CGST circular no. 140/2020 dated June 10, 2020.
| S.No. | Issue | Clarification cum condition | Applicability of RCM |
| 1. | Remuneration paid by companies to independent directors or those directors who are not employee of said companies | 1. The Remuneration paid to such independent directors, or those directors, by whatever name called, who are not employees of the said company, is taxable in hand of the company.
2. Services are outside the scope of Schedule III of CGST, Act. |
RCM applicable |
| 2. | Remuneration paid by companies to the who are employee of said companies | 1. Director’s remuneration which are declared as salaries in the books
2. Subject to TDS u/s 192 of Income Tax Act. 3. Services are within the scope of Schedule III of CGST, Act |
RCM not applicable |
| 3. | Remuneration for other services by the director on account of other than salary, receive fees for professional or technical services | 1. Remuneration which is declared separately other than salaries in the Companies’ account.
2. Subject to TDS u/s 194J of Income Tax Act 3. Services are outside the scope of Schedule III of the CGST, Act. |
RCM applicable |
4. GST Due dates
GSTR-3B Extended due dates
(Notification No.50.51.52-Central tax June 24, 2020)
| Month | February | March | April | May | June | July | |
| Turnover Upto 5 Crore |
(Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana or Andhra Pradesh or the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep)
|
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| GSTR-3B extended due date* | 30.6.20 | 03.07.20 | 06.07.20 | 12.09.20 | 23.09.20 | 27.09.20 | |
| Interest | · Nil-Till extended due date (as mentioned above)
· 9%-After extended due date to 30.09.20 · 18%-Thereafter |
||||||
| Turnover Upto 5 Crore |
(Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha or the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi)
|
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| GSTR-3B extended due date* | 30.6.20 | 05.07.20 | 09.07.20 | 15.09.20 | 25.09.20 | 29.09.20 | |
| Interest | · Nil-Till extended due date (as mentioned above)
· 9%-After extended due date to 30.09.20 · 18%-Thereafter |
||||||
| Turnover More than 5 Crore | GSTR-3B extended due date* | 24.6.20 | 24.06.20 | 24.06.20 | 27.06.20 | Not yet notified
(Original due date 20.07.20) |
Not yet notified
(Original due date 20.08.20) |
| Interest | · Nil- For first 15 days from the original due dates
· 9%-After 15 days till 24.06.20 · 18%-Thereafter |
No Special scheme is available. Interest 18% p.a. and late fees @ INR 50 or INR 20 per day after the due date shall be applicable | |||||
*These extended dates are only for the purpose of relaxation of late fees. If returns are not filed up to extended due dates then the late fees will be started from the original due date.
| GSTR-1 Extended due dates | ||||
| Monthly Taxpayers | ||||
| Month | March 2020 | April 2020 | May 2020 | June 2020 |
| Due date | 10.07.20 | 24.07.20 | 28.07.20 | 05.08.20 |
| Quarterly Taxpayers | ||||
| Quarter | January to March 2020 | April to June 2020 | ||
| Due date | 17.07.20 | 03.08.20 | ||
| Composition Scheme Taxpayers | ||
| Return | CMP-08 | GSTR-4 |
| Period | January to March 2020 | F.Y.2018-19 |
| Due date | 07.07.20 | 15.07.20 |
5. Companies allowed to file Form GSTR-3B/GSTR-1 using EVC
GST Registered person who are also registered under the provisions of the Companies Act, 2013 are allowed to file Form GSTR-3B/GSTR-1 using EVC, vide Notification No. 48/2020 – Central Tax dated 19.06.2020 as follows:-
- Form GSTR-3B-during the period from the of April 21, 2020 to the of September 30, 2020
- Form GSTR-GSTR-1 – during the period from May 27, 2020 to September 30, 2020.
6. Nil GSTR-1 file through SMS
New way to file GSTR 1, in case of NIL return, it can file with SMS from 1st week of July 2020. The taxpayer who wish to file NIL statement in their FORM GSTR 1 are to send SMS to 14409 as NIL <space> R1<space> GSTIN <space> Tax period (in MMYYYY).
For example: –
- NIL R1 09XXXXXXXXXXXZC 042020 (for monthly return of period April 2020) or
- NIL R1 09XXXXXXXXXXXZC 062020 (for quarterly return of April-June 2020)
After this they will get a Six digit code with validity up to 30 minutes & can confirm their NIL statement filing by sending CNF<space> R1<space> Code to 14409 . On successful code validation, return will be filed & taxpayer will be receiving an Acknowledgement number through SMS.
7. Annual Filing
The due date for filing annual return in Form GSTR 9 and GST audit report in Form GSTR 9C for the financial year 2018-19 has been extended to 30th September, 2020.
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