Recent Developments in GST

Flow of Presentation

Updates on GST

Amendment to Composition Scheme

Aadhaar Authentication

New Return Filing System

Sabhka Vishwas (Dispute Resolution Scheme)

 Updates on GST
• Threshold limit for Registration, increased from 20 to 40 Lakhs.

• Electronic invoicing without e-way bill will be available from 2020

• 10 % of Penalty will be levied under Anti-profiteering provisions

• To resolve conflict among different state AAR, National Appellate

Authority would be constituted

• ITC on the ‘services of general insurance, servicing, repair and

maintenance in so far as they relate to motor vehicle’- brought
under “BLOCKED CREDIT” w.e.f 1st February 2019.

• Notification 30/2019 dtd 28.06.19- Exempts OIDAR Service

Providers from furnishing GSTR 9 & 9C
 Updates on GST
• Facility is provided to transfer amount from one head to
another in electronic cash ledger.
Illustrations :
1)Wrongly paid into cash ledger:- CGST & SGST 10000 each
instead of IGST 20000.

CASH LEDGER
IGST CGST SGST Interest Penalty
Balance 20000 20000 20000 500 100
Available

Post Transfer
CASH LEDGER
IGST CGST SGST Interest Penalty
Balance 20000 20000 20000 500 100
Available
Transfer 20000 (10000) (10000)
2)Excess lying in cash ledger:-
01.08.19-Balance in IGST 4000,
Required Rs.2000 each in CGST & SGST for payment on
20.08.19

CASH LEDGER
IGST CGST SGST
01.08.19 4000 0 0

CASH LEDGER
IGST CGST SGST
01.08.19 4000 0 0
Transfer (4000) 2000 2000

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 Updates on GST
• Interest u/s 50 to be computed only on net cash tax liability.

Case 1- April Return: Net Tax liability of Rs 5Lakh is discharged

on 18/05/2019 (Due date is 20th May).

Particulars Amount
Gross Tax Liability 10,00,000
Less: Input Tax Credit (5,00,000)
Net Tax Liability 5,00,000

No Interest would be levied as payment of tax is before due date.

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 Updates on GST

Case 2- May Return: Net Tax liability of Rs 10 Lakh is discharged

on 25/06/2019 (Due date is 20th June).

Particulars Amount
Gross Tax Liability 20,00,000
Less: Input Tax Credit (10,00,000)
Net Tax Liability 10,00,000

Would Interest be levied on 20 Lakhs or 10 Lakhs as return and tax

was deposited on 25th June 2019?

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Case 3- June Return: Tax liability of Rs 20 Lakh is discharged on
24/07/2019. [ Due Date 20/07/2019 ]
Particulars Amount
Gross Tax Liability 40,00,000
Less: Input Tax Credit (20,00,000)
Net Tax Liability 20,00,000

Interest @ 18%.

As the payment of tax is on 24/07/2019, i.e 4 days after due

date, hence as per Sec 50 of CGST Act 2017, interest is
attracted on NET TAX LIABILITY of Rs. 20 Lakh.

Exception: Cases where returns are filed subsequent to initiation of

proceedings u/s 73 & 74 of CGST Act)

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Services brought under Composition Scheme

- Aggregate turnover of PFY <=50 lakhs.

-Rate prescribed or Maximum- 3% of T/o in State or UT.

-Furnish a return for each financial year instead of quarterly

returns.

-Tax Payment continued on quarterly basis.

-Following persons ineligible for the scheme:

• Engaged in any supply of goods or services which are not

leviable to tax
• Engaged in inter-State outward supplies of G&S
• a casual taxable person or a non-resident taxable person
 Aadhaar Authentication for Registration

• Eligibility: Every Individual

• Every Registered person> undergo authentication +furnish

Aadhaar No.

• If Aadhaar No. not assigned > alternate & viable means of

identification (Govt. prescribes: recommendation of council).

• Failure to submit / authenticate- Registration granted- Invalid

• Provision yet to be notified

New GST Return Filing System

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 For Tax Payers Above
5 Crores

Up to From
September October

Form Form GST Form Form GST

GSTR 1 ANX 1 GST R 1 ANX 1

Available on
trial basis Replaced by

From Mandatory
January GSTR-3B Replaced by GST RET-1 for ALL tax
2020 payers
 For Tax Payers Below
5 Crores

From For October to

January December quarter

Form GST
ANX 1

Mandatory
From GST for ALL tax
January GSTR-3B RET-1 payers
2020
 Draft on new simplified form with
offline tools

Form GST RET-1

(main form)

GST GST
ANX-1 ANX-2

Upload Using
From Using GST
Invoices GST
July Online
ANX-1
offline tool ANX-2

View them online

GST ANX-1 – Annexure of Supplies
• Web based prototype of Offline Tool available for:
– GST ANX-1
– GST ANX-2
– Matching Tool

• GST ANX-1: Upload outward supplies, imports (goods and

services) and inward supplies attracting reverse charge etc.
Step 1: Click “Prepare Offline”
Step 2: Dashboard displays various tabs as below:
Step 3: Select any table to view pre filled details.
(Summary can be viewed – taxpayer / document wise)
Step 4: Details can be edited/ additionally filled up in
applicable tables > create Json file> upload on portal.
GST ANX- 2- Annexure of Inward Supplies

Step 1: Taxpayer download “Json file from GST portal and

Purchase Register - imported in Excel File format to
compare it with the data downloaded.

Step 2: Match GST ANX-2 with Purchase Register .

Step 3: Click on “Take Action”.

Step 4: Use “Matching Tools” and can select Accept, Reject,

and Pending button under ‘Take Action’ column on the
documents.

Step 5: Consolidated summary available in Table 4. Click on

“View Table 4 of ANX-2’. It is non editable and will be
auto filled.
DISPUTE RESOLUTION SCHEMES

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 Background

• Existing litigations pertaining to Excise

and Service Tax of pre-GST era

• Estimated tax revenue of INR 3.75

trillion locked up in such litigations

• States have introduced their own Pending

litigations and
various amnesty schemes viz. Gujarat, tax revenue
Karnataka, Maharashtra, Haryana etc. lock-up
to reduce pending litigation and unlock
tax revenue

• Effective date is yet to be announced

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The Scheme – Laws covered

Central
Excise Act,
1944

Any other Central

Act as may Excise Tariff
be notified Act, 1985
Sabka
Vishwas
Scheme

26 other Acts
Service Tax
for levy of
(Chapter V of
cesses or
Finance Act
additional
1994)
duties

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The Scheme – Eligibility
All persons, except where
Final hearing taken place by June 30, 2019 for show cause notice issued or appeal
filed

Person has been convicted for any offence for which he intends to avail the
Not eligible for Scheme

Scheme

Show cause notice issued for refund or erroneous refund

Person subjected to enquiry, investigation or audit and amount involved

not quantified by June 30, 2019

Application filed before Settlement Commission

Declaration is in respect of excisable goods covered in Fourth Schedule to

Central Excise Act, 1944

Voluntary disclosure is made after being subjected to any enquiry, investigation or

audit; or duty is payable but not paid as per return filed

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 The Scheme – Process
Within 60 days of
Not for voluntary Within 30 days of
declaration
disclosures proof of payment

3. Issue of
2. Verification by Statement indicating 8. Issue of 7. Furnish
Designated amount payable, if Discharge proof for
Committee amount matched Certificate withdrawal
for matter
before Court
4. In case
payable is
1. Declaration in more than
electronic form the declared 5. Issue of
amount, issue Statement 6. Payment of
of Estimate by after hearing the amount
committee the declarant

Within 30 days of Within 60 days of - To be paid in cash only

declaration declaration within 30 days of Statement
- No input credit for amount
so paid
- No refund of amount so paid

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The Scheme – Relief available
Declaration is in relation to Relief (% of Tax dues)

Dues <= INR 5 Dues > INR 5

million million

Show cause notice or appeal 70 50

Show cause notice for late fee or penalty only 100 100
where duty is paid or is NIL
Amount in arrears or declared in returns but 60 40
unpaid
Amount quantified before June 30, 2019 in 70 50
enquiry, audit or investigation
Voluntary disclosure NIL NIL

• Any pre-deposit paid shall not be refunded if balance after relief is less than pre-deposit
• Full waiver of further interest or penalty and immunity from prosecution for matter and
time period under declaration
• Matter and time period under declaration not to be reopened in any other proceeding
• Any reply / appeal filed will be deemed to have been withdrawn
• For matters before High Court or Supreme Court, application for withdrawal to be filed
before Court

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 Scenarios
Situation on or before June 30, 2019 Eligible
Show cause notice received and final hearing not done Yes
Show cause notice received and final hearing done No

Demand Order for show cause received and appeal pending but Yes
final hearing not done
Demand Order for show cause received and appeal pending and No
final hearing done
Demand Order for show cause received and limitation for filing Yes
appeal expired
Any appeal order attaining finality (higher appeal not filed) Yes
Return filed showing duty payable but not paid Yes
Enquiry, investigation or audit where amount is quantified Yes
Enquiry, investigation or audit where amount is not quantified No

Voluntary disclosure Yes

Show cause notice relatable to late fee or penalty only and amount Yes
of duty in said notice has been paid or is NIL

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