Gist of GST Notifications issued on 10th November 2020

The CBIC has issued several notifications on 10/11/2020 amending various rules in respect of return filing. A summary of the same is as below:

• Notification No. 81/2020 : Seeks to notify amendment carried out in sub-section (1), (2) and (7) of section 39 vide Finance (No.2) Act, 2019 which deals with furnishing of returns for Regular Taxpayer and Composition Dealers and also Payment of Taxes along with appointing the10th day of November, 2020, as the date on which the provisions of section 97 of the said Act shall come into force.

• Notification No. 82/2020 : Central Goods and Services Tax (Thirteenth Amendment) Rules, 2020 have been notified. Highlights of the same are:

1. we.f. 01.01.2021, an option for quarterly filing of FORM GSTR-1 would be made available to the taxpayers.

2. The registered persons required to furnish return for every quarter under proviso to subsection (1) of section 39 may furnish the details of such outward supplies of goods or services or both to a registered person, as he may consider necessary, for the first and second months of a quarter, up to a cumulative value of fifty lakh rupees in each of the months,- using Invoice Furnishing Facility (IFF) from the 1st day of the month succeeding such month till the 13th day of the said month.

3. The details furnished using the IFF, shall not be furnished again in FORM GSTR-1 for that quarter.

4. The details furnished through IFF shall include only B2B supplies along with relevant Debit Notes and Credit Notes.

5. w.e.f. 01.01.2021, FORM GSTR-2A shall also include details furnished through IFF and also details of the integrated tax paid on the import of goods or goods brought in domestic Tariff Area from SEZ unit or a SEZ developer on a bill of entry.

6. The due dates for monthly GSTR-3B is the 20^th of the succeeding month while that of the quarterly GSTR-3B is the 22^nd or 24^th of the month succeeding such quarter based on the principal place of business of the Registered Persons.

7. Quarterly return filers shall pay tax for the first two months of the quarter by using PMT-06 by 25^th day of the succeeding month.

8. The amount paid as above shall be credited in the electronic cash ledger and has to be debited while filing GSTR-3B quarterly.

9. Rule 61A has been inserted to provide for the manner of opting quarterly GSTR-3B. Such option has to be exercised from the 1st day of the second month of the preceding quarter till the last day of the first month of the quarter for which the option is being exercised. In simple words, quarterly option for Jul-Sep 2021 can be exercised from 01/05/2021 till 31/07/2021.

10. A Registered person shall not be eligible to opt for furnishing quarterly return in case the last return due on the date of exercising such option has not been furnished.

11. A registered person, whose aggregate turnover exceeds 5 crore rupees during the current financial year, shall opt for furnishing of return on a monthly basis, from the first month of the quarter, succeeding the quarter during which his aggregate turnover exceeds 5 crore rupees.

12. HSN Codes have to be mandatorily specified in FORM GSTR-1 as per proviso to Rule 46.

• Notification No. 83/2020 : Due date for filing of FORM GSTR-1 shall be 11^th of the succeeding month for monthly filers, whereas, the due date for quarterly filers shall be the 13^th of the month succeeding such quarter (w.e.f. 01/01/2021).

• Notification No. 84/2020 : Registered Persons having an aggregate turnover of up to Rs. 5 crores in the preceding financial year, and who have opted to furnish a return for every quarter under Rule 61A,can furnish quarterly GSTR-3B provided:

  1. the return for the preceding month, as due on the date of exercising such option, has been furnished;

  2. once exercised, such option shall continue unless revised.

• Notification No. 85/2020 : Following options are being prescribed for monthly payment of taxes in case of quarterly return filers:           

 No Tax to be deposited – 

1. For the first month of the quarter, where the balance in the electronic cash ledger or electronic credit ledger is adequate for the tax liability for the said month or where there is nil tax liability

2. for the second month of the quarter, where the balance in the electronic cash ledger or electronic credit ledger is adequate for the cumulative tax liability for the first and the second month of the quarter or where there is nil tax liability 

To be Noted :Special procedure shall not be available unless Taxpayer has furnished the return for a complete tax period preceding such month

• Notification No. 86/2020 : Seeks to rescind Notification 76/2020-Central tax dated 15.08.2020. Notification 76/2020 seeks to prescribe FORM GSTR-3B Due dates for period of October, 2020 to March, 2021.

• Notification No. 87/2020 : Extension of time limit for furnishing the declaration in FORM GST ITC-04, in respect of goods dispatched to a job worker or received from a job worker, during the period from July, 2020 to September, 2020 till the 30th day of November, 2020.

• Notification No. 88/2020 : The provisions of e-invoicing shall be applicable to registered persons having turnover exceeding 100 crore rupees instead of current limit of 500 crore rupees (w.e.f. 01/01/2021).

The views expressed by the author is based on his understanding of law and the prevailing circumstances. Taxpayers are requested to use the views judiciously and author shall not be liable for any gain/loss which might arise by referring his article.

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