Vivad Se Vishwas scheme: Payment deadline extended
The government on Tuesday extended for the third time the deadline for making payment under the direct tax dispute settlement scheme ‘Vivad Se Vishwas’ by three months to March 31, 2021.

As per a Central Board of Direct Taxes (CBDT) notification, declaration under the Vivad se Vishwas Scheme shall be required to be furnished latest by December 31, 2020.

However, only in respect of the said declarations made, the payment without additional amount can now be made up to March 31, 2021.

“In order to provide further relief to the taxpayers desirous of settling disputes under Vivad se Vishwas Scheme, the Government today further extended the date for making payment without additional amount from 31st December 2020 to 31st March 2021.

Income Tax Due Date Extended

In order to provide more time to taxpayers for furnishing of Income Tax Returns, it has been decided to further extend the due date for furnishing of Income-Tax Returns as under:
(A)       The due date for furnishing of Income Tax Returns for the taxpayers (including their partners) who are required to get their accounts audited [for whom the due date (i.e. before the extension by the said notification) as per the Act is 31st October, 2020] has been extended to 31st January, 2021.
(B)   The due date for furnishing of Income Tax Returns for the taxpayers who are required to furnish report in respect of international/specified domestic transactions [for whom the due date (i.e. before the extension by the said notification) as per the Act is 30th November, 2020] has been extended to 31st January, 2021.
(C)      The due date for furnishing of Income Tax Returns for the other taxpayers [for whom the due date (i.e. before the extension by the said notification) as per the Act was 31st July, 2020] has been extended to 31st December, 2020.
 
Consequently, the date for furnishing of various audit reports under the Act including tax audit report and report in respect of international/specified domestic transaction has also been extended to 31st December, 2020.

CLARIFICATION OF ISSUES RELATING TO APPLICATION OF SUB-RULE (4) OF RULE 36 OF THE CGST RULES, 2017, CUMULATIVELY FOR THE MONTHS OF FEBRUARY, 2020 TO AUGUST, 2020

THE CENTRAL BOARD OF INDIRECT TAXES & CUSTOMS VIDE CIRCULAR NO. 142/12/2020- GST DATED 9TH OCTOBER,2020 HAS ISSUED THE FOLLOWING CLARIFICATION RELATING TO APPLICATION OF SUB-RULE (4) OF RULE 36 OF THE CGST RULES, 2017 FOR THE MONTHS OF FEBRUARY, 2020 TO AUGUST, 2020:-

  • Keeping the situation prevailing in view of measures taken to contain the spread of COVID-19 pandemic, vide notification No. 30/2020-CT, dated 03.04.2020, it had been prescribed that the condition made under sub-rule (4) of rule 36 of the CGST Rules shall apply cumulatively for the tax period February, March, April, May, June, July and August, 2020 and that the return in FORM GSTR-3B for the tax period September, 2020 shall be furnished with the cumulative adjustment of input tax credit for the said months.
  • It is re-iterated that the clarifications issued earlier vide Circular No. 123/42/2019 – GST dated 11.11.2019 shall still remain applicable, except for the cumulative application as prescribed in proviso to sub-rule (4) of rule 36 of the CGST Rules. Accordingly, all the taxpayers are advised to ascertain the details of invoices uploaded by their suppliers under subsection (1) of section 37 of the CGST Act for the periods of February, March, April, May, June, July and August, 2020, till the due date of furnishing of the statement in FORM GSTR-1 for the month of September, 2020 as reflected in GSTR-2As.
  • Taxpayers shall reconcile the ITC availed in their FORM GSTR-3Bs for the period February, 2020 to August, 2020 with the details of invoices uploaded by their suppliers of the said months, till the due date of furnishing FORM GSTR-1 for the month of September, 2020. The cumulative amount of ITC availed for the said months in FORM GSTR-3B should not exceed 110% of the cumulative value of the eligible credit available in respect of invoices or debit notes the details of which have been uploaded by the suppliers under sub-section (1) of section 37 of the CGST Act, till the due date of furnishing of the statements in FORM GSTR-1 for the month of September, 2020.
  • It may be noted that availability of 110% of the cumulative value of the eligible credit available in respect of invoices or debit notes the details of which have been uploaded by the suppliers under sub-section (1) of section 37 of the CGST Act does not mean that the total credit can exceed the tax amount as reflected in the total invoices for the supplies received by the taxpayer i.e. the maximum credit available in terms of provisions of section 16 of the CGST Act.
  • The excess ITC availed arising out of reconciliation during this period, if any, shall be required to be reversed in Table 4(B)(2) of FORM GSTR-3B, for the month of September, 2020. Failure to reverse such excess availed ITC on account of cumulative application of sub-rule (4) of rule 36 of the CGST Rules would be treated as availment of ineligible ITC during the month of September, 2020.
  • The manner of cumulative reconciliation for the said months in terms of proviso to sub-rule (4) of rule 36 of the CGST Rules is explained by way of illustration, in a tabulated form, below:-

PRESS RELEASE

ANNUAL RETURN (GSTR-9) AND RECONCILIATION STATEMENT (GSTR 9C) FOR FY 2018-19

  • The due date for furnishing of the Annual Return for the FY 2018-19 has been extended till 31.10.2020 vide Notification No. 69/2020 – Central Tax, dated 30.09.2020.
  • Certain representations have been received stating that the auto populated GSTR-9 for the year 2018-19 (Tables 4, 5, 6 and 7) also includes the data for FY 2017-18. However, this information for FY 2017-18 has already been furnished by the taxpayers in the annual return (GSTR-9) filed for FY 2017-18 and there is no mechanism to show the split of two years (2017-18 & 2018-19) in FORM GSTR-9 for 2018-19.
  • In this regard, it is clarified that the taxpayers are required to report only the values pertaining to Financial Year 2018-19 and the values pertaining to Financial Year 2017-18 which may have already been reported or adjusted are to be ignored. No adverse view would be taken in cases where there are variations in returns for taxpayers who have already filed their GSTR-9 of Financial Year 2018-19 by including the details of supplies and ITC pertaining to Financial Year 2017-18 in the Annual return for FY 2018-19.
  • All the taxpayers are requested to avail the benefit of the extended due date and file their Annual Return (FORM GSTR-9) at the earliest to avoid last minute rush. It may be noted that furnishing of the Annual return in FORM GSTR-9 is mandatory only for taxpayers with aggregate annual turnover above Rs. 2 crore while reconciliation statement in FORM GSTR-9C is to be furnished only by the registered persons having aggregate turnover above Rs. 5 crore.

The Summary of 42nd GST Council Meeting 📣📣

🔹 Effective 1st January 2021, small taxpayers with turnover less than Rs 5 crore, can file quarterly GSTR-3B and GSTR-1.

🔹 The due date of furnishing quarterly GSTR-1 will be the 13th of the month succeeding the quarter; this is effective from 01.1.2021. However, taxpayers can upload invoices every month.

🔹 Starting from 1st January 2021, the number of returns have been reduced to 8 from 24 for taxpayers with less than Rs 5 crore turnover.

🔹 Such quarterly taxpayers would, for the first two months of the quarter, have an option to pay 35% of the net cash tax liability of the previous quarter, using an auto-generated challan.

🔹 A roadmap has been prepared for the auto-generation of GSTR-3B, where the ITC will be auto-populated from the supplier’s GSTR-1, and the tax liability will be auto-populated from the business’ GSTR-1. To achieve this, the GSTR-1 should be filed mandatorily before filing GSTR-3B w.e.f.01.04.2021.

🔹 All taxpayers will continue to pay GST dues monthly through a simple challan. A nil CMP-08 will be allowed to be filed through an SMS.

🔹 Effective 1st April 2021 – Taxpayers with turnover exceeding Rs 5 crore, HSN code up to 6 digits must be mentioned. For turnover less than Rs 5 crore, HSN code up to 4 digits need to be mentioned for B2B supplies for both goods and services. For notified classes of goods, 8 digits will need to be mentioned.

🔹 Refunds to be given into bank accounts where PAN and Aadhaar linking is done. Aadhaar authentication facility (with OTP) is now allowed for refund applications. This discourages taxpayers from misusing the system.

🔹 GST exemption provided to satellite launch services by ISRO and Antrix Corporation, to encourage the space launching services in India.

🔹 Non-alcohol based sanitisers will continue to be taxed at an 18% GST rate.

🔹 The compensation cess collected till now accounts to Rs.20,000 crore, and the same will be disbursed to the states by tonight.

🔹 The amount of Rs.25,000 crore towards IGST of 2017-18 will also be disbursed to specific states by next week.

🔹 The next Council meeting will be held on 12th October 2020 to resolve compensation issues for states.

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