Key Amendments Close of the Calendar Year

Coming close to calendar year and to give effect to last GST Council meeting, few important notifications have been issued. Some of the same have severe impact as to day to day statutory compliance vis a vis smooth functionality of the business. We urge you to take serious note of the same and start implementing the same.

Key highlights are under : 

1. Due date for filing of GSTR 9 and GSTR 9C for the period 01.07.17 to 31.03.2018 extended to 31.01.2020. 

2. One more opportunity has been given to file GSTR 1 for the period July, 2017 to November, 2019 during the period 19.12.2019 to 10.01.2020. No late filing fee would be levied for the same. 

3. Standard Operating Procedure implemented for Non Filers of GST Returns in time. More stricter actions would be taken against such tax payers in the form of best judgment assessment and determination of GST liability based on information / sources available with the department. It shall include provisional attachment as well. Hence, it is cautioned to avoid delay in filing of returns.

4. E-Waybill generation blocking powers are enhanced in such manner that the said right can be exercised by officer for such non filers of GSTR 1 for any two months or quarters as against existing mechanism of two consecutive returns. This shall be effective from 11.01.2020. 

5. Effective from 09.10.2019, tolerance limit of 20% has been put with respect to such ITC which is reflected in GSTR 2A. Meaning thereby, assessee was entitled to avail ITC to the extent of 20% as is reflected in GSTR 2A. The same has been reduced to 10%. Meaning thereby, assessee shall be eligible to avail ITC to the extent of 10% only in respect of invoices which are not uploaded by the suppliers which is reflected in GSTR 2A as against 20%. This shall further result into blockage of working capital for genuine cases such as suppliers filing GST returns on quarterly basis or suppliers who are not regularly filing the same. Hence,it is cautioned to rethink strategy of doing one’s business and act smartly while selecting supplier so that for non act of supplier, your working capital is not blocked. 

6. Power has been given to certain officials to restrict utilizing ITC which is availed fraudulently or is ineligible. This is very subjective matter and can lead to disruptions. 

7. Taxpayer having presence in State of Assam, Manipur, Meghalaya or Tripura are given more time to furnish certain GST returns of past period. We urge you to go through detailed notifications attached herewith, specially for point no. 3 and 5 as mentioned above as they are likely to impact severely for smooth functioning of the business. 

READ HERE the text from the Notifications:

Please feel free to communicate to understand further for the same. We shall be more than happy to help. 

You can contact us on knowledge.management@jhsassociates.in or

connect with our expert Chirag Soni – chirag.soni@jhsassociates.in (Baroda) and 

Huzefa Mala- huzefa.mala@jhsassociates.in (Mumbai).