Category: Gst

The traders dealing in the textile business got relief from the hike of Goods and Services Tax. The GST council has decided to put the provision, to increase the rates of tax on specific garments, on hold for some time. The council said that they have decided to keep the GST rate fixed to 5% on the garments costing below INR 10,000. The council had previously given indications that they might remove the 5% tax slab for garments and charge a tax at the rate of 12% instead.

Knitwear Club finance secretary Harish Kairpal said that the traders of the club were thankful to the council for making the decision. He said that the hike would have destroyed the manufacturers who were already struggling with the drop in demands from both domestic and international markets. He also urged the government to introduce the required reforms for the manufacturers to face the recession.

Atul Saggar, general secretary of Apparel Manufacturers Association of Ludhiana, said that the decision taken by the council was a big relief for the manufacturers as the 7% hike in the taxes would have increased the cost at a time where they already are facing a shortage of orders.

Sukhvinder Singh, a garment manufacturer, and a member of the Ludhiana Business Forum said, “The currently applicable GST of 5% on certain fabrics and garments costing up to Rs 1,000 is already non- refundable, and when the same rate is into force for more than three years now, why did the government want to change it now. The stand taken by GST council meeting is really appreciable, as the hike of 7% GST would have definitely hit the garment industry hard, and our already low sales would have dropped further had the new rate of 12% GST been imposed on us.”

The government releases the GST return forms details which are mandated to be filed according to the due dates under GST mentioned in the attached notification. The submission and uploading of the returns are totally online. We have mentioned all the GST return filing due dates along with their respective associated GST forms such as GSTR 1, GSTR 3B, GSTR 4, GSTR 5, GSTR 6, GSTR 7, GSTR 8, GSTR 9, GSTR 9A, GSTR 9C in FY 2017-18, FY 2018-19 and FY 2019-20, etc.

GST Calendar of Return Filing Due Dates in March 2020

The government announces GST return filing due dates from time to time in order to maintain taxation in line with respective clearance. Also, the main effort is to alert the taxpayers regarding the GST return filing due dates is to make them neglect any penalty or interest. Here we are offering GST due dates calendar for March 2020 for all the registered taxpayers under indirect tax regime to make them aware of the time period as of when to get their GST return filing done on time.

As GSTR 1 & GSTR 3B is to be filed every month, there is a greater need of getting regular updates/notification based on the GST due dates calendar for avoiding any interest and penalty. Also, there is GST CMP 08 for the composition scheme dealers but it has to be filed every quarter lowering down the need for regular updates on GST due date filing calendar.

GST Return Form Name	Filing Period	Due Dates in March 2020
GSTR 7	Monthly	10th March
GSTR 8	Monthly	10th March
GSTR 1 (T.O. more than 1.5 Crore)	Monthly	11th March
GSTR 6	Monthly	13th March
GSTR 3B	Monthly	INR 5 Crore or More Annual T.O. in the Previous Year – 20th March 2020 for All States/UTs Less Than INR 5 Crore Annual T.O. in the Previous Year 22nd March 2020 – Chhattisgarh, Madhya Pradesh, Maharashtra, Gujarat, Daman and Diu, Dadra & Nagar Haveli, Karnataka, Goa, Lakshadweep, Kerala, Tamil Nadu, Puducherry, Andaman and Nicobar Islands, Telangana and Andhra Pradesh 24th March 2020 – Jammu and Kashmir, Laddakh, Arunachal Pradesh, Punjab, Himachal Pradesh, Chandigarh, Uttarakhand, Haryana, Delhi, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand and Odisha
GSTR 5	Monthly	20th March
GSTR 5A	Monthly	20th March

Note:  

• “Extension of due dates for FORM GSTR-3B, GSTR 7 and GSTR 1 for the month of July 2019 to January 2020 till 24th March 2020 for registered persons having principal place of business in the Union territory of Ladakh.” Read Official Press Release
• The revised due dates and above announcements have been implemented under official CBEC GST notification & latest GST circulars/orders by Govt CBIC department

All these changes are described below:

GSTR 1 Due Dates (T.O. up to INR 1.5 Crore)

Period (Quarterly)	Last Dates
January – March 2020	30th April 2020
October – December 2019	31st January 2020
July – September 2019	31st October 2019
April – June 2019	31st July 2019
How to File GSTR 1 with Complete Online Return Filing Procedure

GST Return 1 Due Date (T.O. More Than INR 1.5 Crore)

Period (Monthly)	Last Dates
March 2020	11th April 2020
February 2020	11th March 2020
January 2020	11th February 2020
December 2019	11th January 2020
November 2019	11th December 2019
October 2019	11th November 2019
September 2019	11th October 2019
August 2019	11th September 2019
July 2019	11th August 2019 | Note: “The due date extended till 20th September 2019 for notified districts of Bihar, Gujarat, Karnataka, Kerala, Maharashtra, Odisha, Uttarakhand and also for registered persons whose principal place of business is in J&K.” Notification Here
June 2019	11th July 2019
May 2019	11th June 2019
April 2019	10th June 2019 for Odisha,  Read Notification

Note:

• 39th GST Council Meeting – “The requirement of furnishing FORM GSTR-1 for 2019-20 to be waived for taxpayers who could not opt for availing the option of special composition scheme under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019 by filing FORM CMP-02. Extension of due dates for FORM GSTR-1 for the month of July 2019 to January 2020 till 24th March 2020 for registered persons having principal place of business in the Union territory of Ladakh. “Read Official Press Release
• The due date of the GSTR 1 form extended till 31st December 2019 for notified districts of Assam, Manipur or Tripura for registered persons. Read Notification
• 38th GST Council Meeting Important Update: “A taxpayer who has not filed GSTR 1 since July 2017 to November 2019 will not be penalized if they file GSTR 1 by 17th January 2020 (Read Notification). E-way bill for taxpayers who have not filed their FORM GSTR-1 for two tax periods shall be blocked.” Read Press Release & Notification
• “Seeks to extend the due date till 20th December 2019 for furnishing of return in FORM GSTR-1 for registered persons in Jammu and Kashmir having aggregate turnover more than 1.5 crore rupees for the month of October 2019.” Read Notification
• “Seeks to extend the due date for furnishing of return in FORM GSTR-1 for registered persons in Jammu and Kashmir having aggregate turnover more than 1.5 crore rupees for the months of July 2019 to September 2019 till 20th December 2019”. Read Notification
• “The late fee shall be completely waived in case of GSTR-1 for the time period of months/quarters July 2017 to September 2018, which are furnished after 22nd December 2018 but on or before 31st March 2019”
• “All the newly migrated taxpayers, a due date extended for furnishing GSTR-1 for the time period of quarterly July 2017 to December 2018 respectively till 31st March 2019”
• The filing of GSTR-2 and GSTR-3 has been suspended by the Committee of Officers, which will resume after 30th June 2018. The detailed schedule shall be updated accordingly. The further months of filing for GSTR-1 and GSTR 3B are also decided to be filed till for 6 more months as announced by the GST council meeting.

Finance Minister Nirmala Sitharaman, head of Goods and Services Tax (GST) Council, on Saturday announced that the GST Impact on mobile phones will be increased from the current rate of 12% to 18%. The rate is said to be applicable from April 1, 2020. The increase in rates is said to affect the country’s smartphone industry badly. The change will hit the market harder which is already facing a shortage of supplies from China because of the outbreak of Coronavirus.

Mobile phones and specified parts to attract 18% versus 12%. All other items, if there’s a need to calibrate the rates, to remove the inversion, we can take them up in future, examination of that can happen at a later time

GST for maintenance, repair and overhaul service providers in India has been lowered to 5% from 18% now, with provision of availing full input tax credit (ITC). . “This will assist in setting up of MRO services in the country,” the finance minister added. GST rate on handmade and machine-made matchsticks was also rationalised to 12% from present range of 5% and 18%.

“Increase of GST rate on mobile phones to 18%, arguably to correct the inverted duty structure, may lead to increase in prices,” said Pratik Jain, Partner and Leader Indirect Tax, PwC India

“Given the current economic scenario, perhaps an option to provide quicker refund of input tax credit (including on input services which is not allowed currently) could have been explored,”

1. Deferment of the new GST return system and e-invoicing

The implementation of the new GST return system has been postponed to 1st October 2020. Also, the implementation of e-invoicing and the QR code has been deferred to 1st October 2020.

The present return system (GSTR-1, GSTR-2A & GSTR-3B) will be continued until September 2020.

2. Changes in the GST rates

• GST on mobile phones and specified parts was increased from 12% to 18%. This decision was taken to avoid difficulties due to the inverted duty structure.
• All types of matches have been rationalised to a single GST rate of 12%. Till now, the handmade ones were taxed at 5% and the rest was taxed at 18%.
• GST on Maintenance, Repair and Overhaul (MRO) service in respect to aircraft was reduced from 18% to 5% with full ITC.
• All these rate changes will come into effect from 01 April 2020.

3. Interest on delayed payments

Now, the interest for delayed GST payment will be calculated on the net tax liability. This amendment will apply retrospectively from 1st July 2017.

4. Extension of GSTR-9 and 9C

The GSTR-9 & 9C deadline is extended to 30 June 2020 for FY 2018-19. Also, the turnover limit will be increased from Rs 2 crore to Rs 5 crore for mandatory annual return filing. Hence, filing GSTR-9C is optional for the taxpayers having the turnover less than Rs 5 crore.

The taxpayers with an aggregate annual turnover of less than Rs 2 crore in FY 2017-18 and FY 2018-19 will not pay any late fee for delayed filing of GSTR-9.

5. Know your supplier

A new scheme called ‘Know your Supplier’ has been introduced so that the taxpayers are informed about the basic details of the suppliers with whom they transact or propose to conduct business.

6. Waiver and extension of due dates

The GSTR-1 for 2019-20 will be waived for certain taxpayers who could not opt for the special composition scheme (notification No. 2/2019-Central Tax (Rate) dated 7th March 2019) by filing Form CMP-02.

The due date of Form GSTR-3B for July 2019 to January 2020 is extended till 24th March 2020 for taxpayers with a principal place of business in the Union Territory of Ladakh. Also, a similar extension is recommended for Form GSTR-1 and Form GSTR-7.

7. Amendment to revocation of cancellation

Taxpayers who have cancelled their GST registration till 14th March 2020 can file an application for revocation of cancellation of registration. The window to fill this application is available till 30th June 2020. The extension is a one-time measurement to facilitate those who want to continue conducting the business.

8. Other decisions

• Infosys Chairman, Mr Nandan Nilekani to present progress updates about the GST IT systems at the next three GST Council meetings.
• The time limit for finalisation of the e-Wallet scheme for consumers is extended till 31st March 2021.
• A special GST procedure was prescribed during the CIRP period for the GST registered corporates who are undergoing insolvency/resolution procedure under IBC Code, 2016.
• A transition plan is laid down till 31st May 2020 for the taxpayers belonging to Dadra and Nagar Haveli & Daman and Diu, due to the merger in January 2020.
• Refund claims will now be processed in bulk for the benefit of the exporters.
• Present IGST and cess exemptions on the imports made under the AA/EPCG/EOU schemes will continue up to 31st March 2021.

1) A decision to defer the applicability of the e-invoicing system

The preparation of e-invoicing seems sub-par, and the GST Council may consider extending the date of implementing the e-invoicing system by three months. It is said that it may be made applicable from 1st July 2020 as against the earlier date of 1st April 2020. With more time at its hands, GSTN may be able to provide improved solutions as well.

2) Rolling out the new GST return system in April 2020

As per the latest development on 7th March 2020, taxpayers are facing many technical difficulties on the GST portal. These have led the GSTN to give Infosys a fortnight to fix them. Given that the government wants to fix the present GST return system sooner, it seems to be looking to stabilise the present system ending in March 2020.

Moreover, the annual GST returns filing facility will be on focus till 31st March 2020. On the other hand, the CBIC and tax officers are increasingly concerned about the number of tax evasions and are looking into the means for its prevention. All these have led to the speculations that the new GST return system might be pushed further by a month or two.

3) The anomaly of the interest charged on delayed GST payment to see an end

The applicability of interest charge is now on the net liability, as opposed to gross liability, but applies prospectively. Many tax professionals and small taxpayers are dissatisfied with the move, requesting the government to make this a retrospective change since July 2017.

4) Relaxing the penal consequences for the notices related to FY 2017-18 and FY 2018-19

There have been multiple instances where the GST notices have been sent out for wrongful tax credit claims and non-payment of interest on delayed GST payment. In some cases, the extended due dates in the previous periods have not been considered while sending out the notices. Considering that the first two years of GST was mostly not stable for taxpayers, giving them relaxations will help them bear less damage. Hence, any penalty or late fees reduction will help them prepare for better compliance in future periods.

5) GST rate structure change and rate hikes speculated

It was speculated in the previous GST Council meeting that the five slab structure would be brought down to three slabs by carrying out a major rate rejig. The 5% tax rate will be hiked up to a maximum of 9-10%, and the 12% tax rate will be removed.

The GST Council has set up a revenue augmentation committee to look into the possible solutions for increasing the GST collections. In addition to these, certain items that were exempted or nil rated may make a comeback under the tax net.

The GST Council has begun correcting the cases of inverted tax structure prevalent for certain items and sectors. In the 38th GST Council meeting, GST on woven and non-woven bags was increased from 12% to 18%. More items such as mobiles, textiles, solar modules, railway locomotives, fertilisers, steel utensils (whose output tax rate ranges between 5-12%) are expected to undergo the rate corrections. However, no major rate changes can be expected in the current scenario.

6) Miscellaneous expected

States will be pushing the centre to resolve the compensation matter, who are most likely to demand full compensation for the fiscal year. Hence, long deliberations are expected in the room. The GST Council will also be discussing the measures to strengthen and build a strong GST system against tax evasions.

The previous GST Council meeting was concluded on 18th December 2019 where an important decision was made to defer GSTR-9 and 9C for the first two years of GST. All eyes are on this GST Council meeting as addressing the taxpayers’ woes tops the agenda.