AMENDMENTS

(ALL IMPORTANT AMENDMENTS FROM 1/04/2020 TO 31/10/2020 )

MAY 2021
CA FINAL (Old/ New)
Indirect Tax Laws
By CA Mahesh Gour
DISCUSSION OF AMENDMENT
FROM THIS NOTES
ON UNACADEMY CHANNEL

DATE:-19/02/2021
TIME:- 6:00 pm TO 8:00 pm
LINK Available on telegram channel
"IDT With Mahesh Gour Sir"

CA Mahesh Gour +91 8459256756

 CHAPTER 2 SUPPLY UNDER GST

 SCHEDULE II- ACTIVITIES TO BE TREATD AS SUPPLY OF GOODS OR SUPPLY

OF SERVICES [SEC 7(1A)]
Transfer of Business Assets

TRANSFER OF BUSINESS

Transfer or Private Use of Person Who Cease to Be

Disposed Off. Business Assets Taxable Person

Business Assets i.e. Cancellation of

registration, shutdown of
Supply of Goods Supply of Service the business

Whether or Not for Consideration

Supply of Goods

Exception:
No GST will liveable in the following cases.
1. Transferred as going concern
2. Business is carried on by a personal representative who is deemed to be a taxable
person.

Example:

1. A director using car provided for personal travels  Supply of Services

2. Raj, a trader, is winding up his business. Any goods left in stock shall be deemed to be
supplied by him and GST shall be payable (It will be treated  Supply of Goods)

3. Mr. Sohail, a sole proprietor, owns a laptop used for making office presentation. He
transferred said laptop to his son  Supply of Goods

= AMENDMENTS
 CHAPTER 3. CHARGES OF GST
1. Sec 2 (114) Meaning of Union Territory

Before Amendments After Amendments

A) The Andaman and Nicobar Island A) The Andaman and Nicobar Island

B) Lakshadweep B) Lakshadweep
C) Dadra and Nagar Haveli C) Dadra and Nagar Haveli & Daman and Diu
D) Daman and Diu D) Ladakh

E) Chandigarh E) Chandigarh

F) Other territory F) Other territory

Note:- State of Jammu & Kashmir has been reconstituted into 2 Union Territories

Jammu & Kashmir Ladakh

(With separate legislature)

For GST purpose Treated as State

Impact of Amendment:-

1) State includes a Union Territory with Individual legislature, It means Delhi,

Puducherry & Jammu & Kashmir (have their own individual legislature), Covered

under state GST law.

2.
a)
Intra State CGST
 Place of Supply = Jammu & Kashmir
 Location of Supplier = Jammu & Kashmir Transfer
SGST of Jammu & Kashmir

b)

 Place of Supply = Jammu & Kashmir Inter State IGST

 Location of Supplier = Ladakh Transfer

CA Mahesh Gour
 CHAPTER 4 EXEMPTIONS OF GST
Entry 19A: Transportation of Goods by Aircraft from India to Outside India
Services by way of transportation of goods by an aircraft from customs station of
clearance in India to a place outside India. [Upto 30.09.2020 30.09.2021]
Entry 19B: Transportation of Goods by Vessel from India to Outside India
Services by way of transportation of goods by a vessel from customs station of
clearance in India to a place outside India. [Upto 30.09.2020 30.09.2021]
Entry 19C: Satellite launch services
Satellite launch services supplied by Indian Speech Research Organisation (ISRO),
Antrix Corporation Limited or New Space India Limited.

DISCUSSION OF AMENDMENT
FROM THIS NOTES
ON UNACADEMY CHANNEL

DATE:-19/02/2021
TIME:- 6:00 pm TO 8:00 pm
LINK Avelibel on telegram channel
IDT With Mahesh Gour Sir
 CHAPTER. 9 REGISTRATION

1. Sec 25(6B): Fresh Registration

Fresh Registration under GST will be Aadhar number based. The authentication

will be on the basis of Aadhar number.

2. Sec 25(6A): Existing Registered Person

Existing Registered persons will also have to get verified through Aadhar number

or other method, within specified time.

Note: - If not done, registration will be cancelled.

3. Sec 25(6c): Partnership Firm, Trust, HUF, AOP, BOI, Body Corporate Etc.

In case of Partnership firm, Company, Trust, HUF, AOP, or BOI, the authentication

will be by verification of Aadhar number of Partner, director, trustee, authorized

representative, managing Committee member or Karta of HUF

Note: - If does not have Aadhar, verification will be by other method in manner as

may be specified.

4. Sec 25(6D): Exceptions of Sec 25(6B)/ (6C) (From 01.04.2020)

Sec 25(6B)/ (6c) shall not apply to following person

Person who is not a Class of Person other than the Following class of person, namely:
citizen of India (a) Individual;
(b) Authorized Signatory of all types;
(c) Managing and Authorized partner; and
(d) Karta of HUF.

5. Rule 8 :- Date of Submission of Registration. In case of Applicant liable for Aadhaar

Authentication (AA) & Opting for AA

Date of Submission of Registration
Cases : Application

1. AA Successfully done within 15 days of submission Date of AA

Of part B of Registration Application [GST REG-01]

2. AA failed within 15 days of submission of Part B of 15th day from submission of Part B

Registration Application [GST REG-01] Of Registration Application [GST

REG-01]
3. Note : physical verification of business premises in certain cases [Rule 25] Where the
proper officer is satisfied that the physical verification of the place of business of a person

is required due to failure of Aadhaar authentication or due to not option for Aaadhar

authentication before the grant of registration, or due to any other reason after the grant

of registration, he may get such verification of the place of business, in the presence of

the said person, done. The Verification report along with the other documents, including

photographs, shall be uploaded in prescribed form on the common portal within a period

of 15 working days following the date of such verification.

Summary of Amendments

Before Amendment After Amendment

Alternative If the applicant does not If the Applicant

means Of have Aadhar; Did not opt for the Aadhaar Authentication

identify process, or Failed Aadhaar authentication

Verification Procedure,

of Applicant Like :-

1.Applicant not opting for Aadhaar

authentication (it covers on applicant

who does not have Aadhar and

not willing to obtain Aadhar just for

getting GST registration. It also covers an

applicant having Aadhaar but doesn’t

want to opt for Aadhaar Authentication);

2. Applicant opting for Aadhaar

Authentication but Aadhaar

Authentication failed;

Meaning of Only one mean/mode of Two means/modes of identification

Prescribed identification verification Verification prescribed-

alternative Prescribed- 1. Compulsory physical verification prior to

1. Compulsory physical Grant of registration;

Verification prior to grant of No time limit specified for carrying out

Registration physical verification

Time limit for carrying out 2.Non-physical verification (Document

 Physical verification- Verification) by proper officer not below

Within 60 days of submission The rank of joint commissioner.

Of registration application

[Post physical verification,

Verification report to be

Uploaded within 15 working

Days of verification.]

Rule 9 :- Verification & Grant Registration

Alternate and modes of identity verification where either AA not opted for or AA opted

for but Failed [provision to rule 9(1) substituted to provide now 2 provide alternate ways]

Alternative and viable means of identity verification

Physical verification of premise Non-physical verification-Only

Document Verification
[in the manner specified in Rule
25] [If such documents as consider
necessary by po]

 Pre-registration verification Subject to conditions-

 Verification in presence of 1. Reason for doing non-physical

applicant verification, in lieu of physical verification

 Verification report (Form GST of premises, shall be recorded in writing.

REG-30) -to be uploaded within 15 2.Permission shall be taken from Proper

working days officer not below the rank of joint

commissioner.

Note:-

Deemed Registration -

[Rule 9(5) substituted to provide for deemed registration also to cases where

AA not opted for or failed-it has been provided that Where no action is

initiated by the PO within 21 days, the registration application shall be

deemed as approved]
 Concept of Deemed Registration under Registration Procedure :-

Citizen of India No Notified person U/S 25 (6D)

Yes

Person is- Date of Submission of

a)Individual No Registration Application is
b)Authorised signatory
c)Managing or Authorised partner Actual date of submission of part
d)Karta of HUF B of GST REG-01

Yes

Section 25 (6B) Applicable If no Action is taken by PO on Registration

application within 3 working days

Possession of Aadhaar
Yes Deemed Registration

An Applicant having Aadhar but

Does not want to opt For AA
No
AA whether Successful within 15
Days of Submission of part B
Yes
Date of submission of
Registration Application
Date of Authentication
of the Aadhar number
No Applicant not willing to obtain
Aadhar just for Getting GST
registration
Yes Yes
Identity verification by
No
Alternative means
Identity verification by
 Physical verification
Alternative means
 Documentary verification
 Physical verification
 Documentary
Date of submission of
verification
Registration Application is

Date of submission of Actual date of submission of

Registration Application part B of GST-REG-01

15th day from the date of

If no action is taken by Proper
submission of part B
officer on registration
application within 21 days
If No Action is taken by PO Within 3 Working days
Deemed registration. Deemed Registration
 Procedure of Registration

Every person liable to get registered and person seeking voluntary registration shall, before
applying for registration, declare his Permanent Account Number (PAN), mobile number,
e-mail address, State/UT in Part A of FORM GST REG-01 on GST Common Portal.

PAN Validated online by Common Temporary Reference Number (TRN) is

Portal from CBDT Database. Mobile generated and communicated to the
number and email verified through applicant on the validated mobile

one time password sent to it. number and e-mail address.

On receipt of such application, an Using TRN, applicant shall electronically

acknowledgement in the prescribed form submit application in Part B of
shall be issued to the applicant application form, along with specified

electronically. A Causal Taxable Person documents at the Common Portal.

(CTP) applying for registration gets a

TRN for making an advance deposit of Application shall be forwarded to
tax in his electronic cash ledger and an Proper Officer

acknowledgement is issued only after

said deposit.* Proper officer examines the application
and accompanying documents

Is the application and the accompanying documents in proper order?

YES NO

Within 3 Proper office issues notice electronically, within 3 working days from application

working days date thereby seeking clarification*, information or documents from the applicant

from the date

of application Has the applicant furnished the clarification, information and

documents within 7 working days from receipt of notice?

Proper officer will grant YES YES

registration certificate in Is the Proper Officer satisfied?

form GST REG-06 NO NO

Within 7 working days

from the date of receipt of

Proper office will may reject the
information/ Clarification/
application for reason to be recorded
Documents
 Deemed approval of application
If the Proper Officer fails to take any action-

 Within 3 working days from the date of submission of application, or

 Within 7 working days from the date of receipt of clarification, information or

documents furnished by the applicant,

 Within a period of 21 days from the date of submission of the application in cases

where a person does not opt for authentication of Aadhaar number

The application for grant of registration shall be deemed to have been aproved

DISCUSSION OF AMENDMENT
FROM THIS NOTES
ON UNACADEMY CHANNEL

DATE:-19/02/2021
TIME:- 6:00 pm TO 8:00 pm
LINK Avelibel on telegram channel
IDT With Mahesh Gour Sir
 CHAPTER 10A. TAX INVOICE, CREDIT AND DEBIT NOTE

1. CONTENTS OF TAX INVOICE AND MANNER OF ISSUING TAX INVOICE

Important contents of tax invoice[Rule 46] Manner of issuing of Invoice

 Name, address and GSTIN of supplier Supply of goods Supply of services

 Consecutive Serial Number & date of issue [Rule 48 (1)] [Rule 48 (2)]
 Name, address and GSTIN of recipient, if registered
 Name & address of recipient, if not registered
Triplicates Duplicates
 HSN code
 Description of goods or services  Original copy  Original
 Quantity in case of goods for recipient receipt for
 Total Value of supply  Duplicate copy recipient; and
 Taxable Value of supply
for transported;  Duplicate
 Tax rate-Central tax & State tax or Integrated tax, cess
 Amount of tax charged and copy for
 Place of supply  Triplicate copy supplier
 Address of delivery where the same is different than place of
for supplier
supply
 Tax payable on reverse charge basis The serial number of invoices issued
 Signature of authorised signatory during a month / quarter shall be
 QR Code having embedded invoice reference number
furnished electronically in FORM
GSTR-1. [Rule 48 (3)]

RULE 48(4) E-INVOICING MANDATORY FROM 01.04.20

If Supplier & Recipient both are Registered person (B-B Supply)

&
Annual Aggregate Turnover > Rs.100Cr in a Financial Year

E-Invoice is Compulsory

In short, we can say that E-Invoice is compulsory by registered person having aggregate

annual turnover in excess of Rs. 100Cr for all B2B Supplies.

Note: -

1. QR Code is mandatory for tax payer having turnover > 500Cr in B2C Segment.

2. Every invoice issued by a person under Rule 48(4) other than specified manner shall not be

treated as invoice

3. Rule 48(1) & 48(2) shall not apply to an invoice prepared in the manner specified in Rule

48(4).
NOTE 1. All the GST tax payers are free to design their own Tax Invoice.
NOTE 2.
QR Code is mandatory for tax payer having Turnover > 500Cr in B2C segment It

means if recipient is unregistered person & supplier having aggregate turnover in a

financial year exceeds Rs. 500Cr, then an Invoice issued by registered person (Supplier) to
an unregistered person, shall have Quick Response (QR) Code.

Provided that where such registered person makes a Dynamic Quick Response (QR) Code
available to the recipient through a digital display, such B2C invoice issued by such

registered person containing cross reference of the payment using a Dynamic QR Code,
shall be deemed to be having QR Code.

Summary of Analysis
B -> C

Invoice shall
Have quick

Mr A Response (QR)Code
Mr B
Turnover > 500Cr Unregistered person

This Provision is Not applicable on following person.:

1. Insurance, Banking, Financial Institution & NBFC

Insurance Banking Company Financial Institution NBFC

2. Goods Transport Agency (GTA)

GTA

3. Passenger Transport Services

Bus Rail
4. Supplies of Services by way of admission or exabition of

cinematography Films in Multiple Screen

Multiplex

5. Supplies of OIDAR Services Located in non-taxable Territory

Netflix
 CHAPTER 11. E-WAY BILL
1. Documentation , verification of Inspections

Rule 138 A: Documents 1) The person in charge of a conveyance shall carry the invoice

and devices to be or the bill of supply or delivery challan and a copy of the
carried by a person in e-way bill or the e-way bill number, either physically or
charge of a electronically or mapped to a Radio Frequency Identification
conveyance Device (RFID) embedded on to the conveyance in such manner

as may be notified by the commissioner.

2 In case of E-Invoice [Rule 48(4)],the QR code having an

Embedded invoice referance number in it, may be produced

electronically, for verification by the proper officer in lieu of

physical copy of such tax invoice.

Rule 138E E-Way Bill Generation is Blocked in respect of Non-filers

Registered person Non-Filing of

1. Person other than composition a) GSTR-3B (Returns) for a consecutive

supplier Period of 2 Month

OR

b) GSTR-1 for any 2 Months or

Quarters, as the case may be

2. Composition supplier [U/s 10 of The statement in FORM GST CMP 08

CGST Act] For 2 Consecutive Quarters

Avail the benefit of NN 02/2019

[presumptive Levy Scheme]

E.g.: Mr. ‘X’ (other than composition supplier) fails to furnished GSTR – 3B for month of
April 2020(Due date 20th May 2020) & May 2020 (Due Date 20th June 2020)

Portal will automatically block EWB from 21st June 2020

Suppose Mr. ‘X’ Fails to furnished GSTR – 3B for month of June

2020 (Due Date 20th July) Also

Generation of EWB remain Blocked

 Suppose Mr. ‘X’ furnished GSTR – 3B for month of April 20 & month
of May 20 on 25th July

Portal will automatically unblock the on next day [Because default

period has been reduced & now it is less than 2 Months]

Do You Know?

1. Unblock the blokege of generation of EWB by Commissioner.

The Commissioner may, on receipt of an application from a registered person in form
GST EWB – 05, unblock the blockage of Generation of EWB (Subject to Conditions) by
issuing an order in Form GST EWB – 06.

2. Restriction shall not apply during the period from 20.03.2020 Till 15.10.2020.
Provide also that the said restriction shall not apply during the period from 20.03.2020
Till 15.10.2020 in case where the return in FORM GSTR-3B or the statement of outward

supplies in FORM GSTR-1 or the statement in FORM GST CMP-08,as the case may be ,

Has not been furnishedfor the period February,2020 to August,2020. [Provision inserted
by NN 79/2020-CT,dated 15.10.2020]
 CHAPTER. 12A PAYMENT OF TAX
Interest on Net Tax liability [Not on Gross Tax liability]

Provision to Sec 50(2) inserted providing that in case of belated tax payment (of self-

assessed liability), interest shall be chargeble on NET CASH TAX liability (not on

GROSS TAX LIABILITY) [EFFECTIVE FROM 1/09/2020]

1] ILLUSTRATION:-

On 1st Jan 2021

Value of Suppler 10,00,000

MR A GST @ 18% 1,80,000 MR B

Supplier Recipient

Note:-

 Balance of electric Credit ledger of Mr A = 1,00,000

 Mr A is a normal Tax payer

Suppose Mr A pay his tax liability on 20th may 2021 Compute the Interest liability as

per Sec 50(1).

SOLUTION:-

 Due date of filing of Return (Due date of payment of Tax) =20th Feb 2021

 Actual Date of payment 20th may 2021

 Delay (feb-8 days)+(March-31 days)+(April-30 Days)+(May-20 days)=89 days

 Interest Rate = @ 18%

Interest liability :-
Before Amendment Now
1,80,000 * 18% * 89days (1,80,000-ITC 1,00,000) * 18% * 89 days
365 days 365 days
= Rs 7900 (Approx) = Rs 3511 (Approx)
 2] ILLUSTRATION : -

A ltd have belatedly filed GST return (under section39) for the month of March after

60 days from the due date for filing such return. Total tax paid in such return is

as below:

Particulars IGST CGST SGST

Output tax payable 5,00,000 3,00,000 3,00,000

Tax payable under reverse charge 20,000 24,000 24,000

Input tax available for utilization 2,50,000 50,000 50,000

Examine the interest payable as per the provisions of GST law.

SOLUTION :-

Statement showing computation of net liability (due for payment from e-cash ledger)

Which is subject to nearest to interest u/Sec 50 due to belated payment.

Liability Discharged Liability Discharged
Nature of liability through E-credit ledger through E-cash ledger
Liability ( Gross) (utilization of ITC) (net liability)

IGST=5,00,000 IGST=2,50,000 IGST=2,50,000

Forward CGST=3,00,000 CGST=50,000 CGST=2,50000

charge SGST=3,00,000 SGST=50,000 SGST=2,50,000

IGST=20,000 - IGST=20,000

Reverse CGST=24,000 - CGST=24,000

charge SGST =24,000 - SGST =24,000

Interest Calculation:-

Amount in (RS)

Particular IGST CGST SGST

I. Net liability under FCM 2,50,000 2,50,000 2,50,000

a) Delay = 60 days 60 days 60 days

b) Interest Rate 18% 18% 18%

c) Interest =Net Liability*18%*6O days
365 days 7397 7397 7397

II. Liability under RCM 20,000 24,000 24,000

Interest = Liability*18%* 60days
365 days 592 710 710
 CHAPTER 16 DEMAND AND RECOVERY
Tax, interest and penalty payable to be intimated by the proper officer before issuance of
show cause notice.

With effect from 09.10.2019, the proper officer shell may before serve of such a notice,
communicate the details of any tax, interest and penalty as ascertained by him, in the
prescribed form, to the person chargeable with tax, interest and penalty under section 73 or
section 74. Further, where such person has made partial payment of amount
communicated to him or desires to file any submission against the proposed liability, he
may make such submission in the prescribed form. Taxpayer will be able to take advantage
of nil or reduced penalty under sections 73(5) and 74(5) of the CGST Act
 CHAPTER 24 MISCELLENEOUS PROVISIONS
Section 168 A: Power of Government to extend time limit in special circumstances
The central Government has inserted Section 168A of CGST Act,2017 through the Taxation
and other laws (Relaxation and Amendment of Certain Provision) Act, 2020, w.e.f

29.09.2020 which empowers it to extend the due dates for compliances. The section enables

the Government to extend the time limits provided under the said Act in respect of actions
which cannot be completed or complied with due to force Majeure. This power can also be

exercised retrospectively. Here, force majeure means a Case of war, epidemic, flood, drought, fire
, cyclone, earthquake or any other calamity caused by nature or otherwise affecting the
implementations of any of the provision of this Act. The new section had become effective

from 31.03.2020 through an Ordinance Passed by government which is now given power

through Act.

Section 172: Removal of difficulties

1) If any difficulty arises in giving effect to any provision of this Act, the Government May,
on the recommendations of the Council, by a general or a special order published in the

official Gazette, make such provision not inconsistent with the Provisions of this Act or

the rules or regulations made there under, as may be necessary or expedient for the purpose

of removing the said difficulty: Provide that no such order shall be made after the expiry
of a period of three years Five years from the date of commencement of this Act. [Power to
issue orders under this Section is extended to 5 years (earlier 3 years) by Finance Act, 2020
dated 27.03.2020, w.e.f. 30.06.2020, by NN 49/2020-C.T.]
 CHAPTER 29 FOREIGN TRADE POLICY
I] Merchandise Exports from India Scheme (MEIS)
1. Ceiling/cap on MEIS benefits available to exporters on exports made from 01.09.2020 To

31.12.2020 [NN. 30/2015-2020, dated 01.09.2020]

A limit on total reward under MEIS has been imposed so that for exports made in the
Period 01.09.2020 to 31.12.2020 the total reward which can be claimed by an IEC holder
does not exceed the ceiling of Rs. 2 Cr. Further, it has also been notified that any IEC
holder who has not made any exports for a period of one year preceding 01.09.2020 or
any new IECs obtained on or after the date of publication of this Notification would not

be eligible for submitting any claim under MEIS. the aforesaid ceiling will be subject to
further downward revision to ensure that the total un claim under MEIS for the period
(01.09.2020to 31.12.2020) does not exceed the prescribed Allocation by the Government,

which is Rs. 5,000 Cr.

2. MEIS Scheme Withdrawn

Benefits under MEIS shall not be available for exports made with effects from 01.01.2021.

II] Duty Free Import Authorisation Scheme (DFIA)

DFIA scheme shall not be available for import of following Goods:
1. Raw Sugar
2. Import of Tyres [Inserted by DGFT – NN 38/2015-2020, dated 06.10.2020]