Monthly Newsletter June 2021

CONTENTS : 

• GST Notifications And Circulars
• Case Laws
• Advance Rulings
• Customs Updates

GST Notifications And Circulars

 

1) Notification No. 16/2021 dated  01.06.2021  w.e.f.  01.06.2021

 

Ministry of Finance, CBIC vide Notification No. 16/2021 Central Tax notified that Section 112 of the Finance Act 2021 shall be applicable from 01.06.2021. Section 112 of the Finance Act 2021 amended Section 50 of the CGST act retrospectively and now, interest shall be levied only on the portion of the tax which is to be paid by debiting the electronic cash ledger.

 

2)  Notification  No.  17/2021  dated 01.06.2021 

Ministry of Finance, CBIC vide Notification No. 17/2021 Central Tax amended Notification No. 83/2020 Central Tax dated 10.11.2020 and provided relief in respect of filing returns for taxpayers for the month of May 2021. The notification extended the due date for furnishing outward supplies in GSTR 1 for the period May 2021 to 26.06.2021 from 11.06. 2021.

 

3) Notification No. 18/2021 dated 01.06.2021 w.e.f. 18.05.2021 

Ministry of Finance, CBIC vide Notification No. 18/2021 Central Tax dated 01.06.2021 amended Notification No. 13/2017 Central Tax dated 28.06.2017 and waived the interest for late filing of GSTR-3B for a specified period for a specified class of registered person who is herein stated.

Now, interest shall be calculated as follows:

• For Taxpayers with aggregate turnover up to rupees 5 crores in the preceding financial year and those who are required to file monthly returns under proviso to Section 39(1) for March 2021, April 2021, and May 2021, it would be Nil for 15 days from the due date of furnishing return, 9 percent for next 45 days, 30 days and 15 days respective months and then 18 percent thereafter.
• For Taxpayers with an aggregate turnover of more than rupees 5 crores in the preceding financial year for the tax period of March 2021, April 2021, and May 2021, it would be 9 percent for 15 days from the due date of furnishing return and 18 percent

• Taxpayers with an aggregate turnover of up to 5 crores in the preceding financial year who are liable to furnish returns quarterly under proviso of section 39(2) for January 2021-March 2021, shall be Nil for the first 15 days from the due date of furnishing return, 9 percent for next 45 days and 18 percent

The same changes have been made to IGST and UTGST via Notification No. 02/2021-integrated tax dated 01.06.2021 w.e.f. 18.05.2021 and Notification No. 02/2021-Union Territory   tax   dated   01.06.2021 w.e.f. 18.05.2021 respectively.

 

4) Notification No. 19/2021  dated 01.06.2021 w.e.f. 20.05.2021

 

Ministry of Finance, CBIC vide Notification No. 19/2021 Central Tax amended Notification No. 76/2018 Central Tax dated 31.12.2018 to waive the late fee for the filing of GSTR-3B for the following

• For taxpayers with an aggregate turnover of more than rupees 5 crores in the preceding financial year for the tax period of March 2021, April 2021, and May 2021 for 15 days from the due date of furnishing
• Taxpayers with an aggregate turnover of up to rupees 5 crores in the preceding financial year for March 2021, April 2021, and May 2021 for 60 days, 45 days, and 30 days respectively from the due date of the furnishing return.

• Taxpayers with an aggregate turnover of up to 5 crores in the preceding financial year who are liable to furnish a return under proviso of section 39(1) for the quarter of January 2021-March 2021 for 60 days from the due date of furnishing return.

The notification also introduced an amnesty scheme for those who failed to file GSTR – 3B for tax periods from July 2017 to April 2021. For those who now furnish the above returns between 01.06.2021 and 31.08.2021, the late fees in excess of the following limits shall be waived:

• For a registered person with no tax liability, the limit shall be 500 rupees (CGST+SGST) per
• For a registered person with tax liability, the limit shall be 1000 rupees (CGST+ SGST) per

 

Moreover, the notification also provides that from the tax period June 2021 onwards late fees payable under section 47 for GSTR- 3B in excess of the following limits shall stand waived.

• For a registered person with no tax liability, the limit shall be 500 rupees(CGST+SGST) per
• For a registered person with tax liability and aggregate turnover up to 1.5 crores, the limit shall be 2000 rupees (CGST+SGST) per return.
• For a registered person with tax liability and aggregate turnover between 5 crores and 5 crores, the limit shall be 5000 rupees(CGST+SGST) per return.

 

5) Notification No. 20/2021 dated 01.06.2021

 

Ministry of Finance, CBIC via Notification No. 20/2021 Central Tax amended Notification No. 04/2018 Central Tax dated 23.01.2018.

As per the new notification, for the tax period June 2021 onwards, the late fee payable under section 47 for GSTR-1 in excess of the following shall stand waived.

• For a registered person with no tax liability, 500 rupees (CGST+SGST) per return.
• For a registered person with tax liability and aggregate turnover up to 1.5 crores, 2000 rupees (CGST+SGST) per
• For a registered person with tax liability and aggregate turnover between 5 crores and 5 crores, 5000 rupees (CGST+SGST) per return.

 

6) Notification No. 21/2021 dated 01.06.2021

Ministry of Finance, CBIC via Notification No. 21/2021 Central Tax amended Notification No. 73/2017 Central Tax dated 29.12.2017.

As per the new notification, for the tax period June 2021 onwards, the late fee payable under section 47, for the financial year 2021-22 onwards, for failure to furnish GSTR-4 which is in excess of 2000 rupees (CGST+SGST) shall stand waived off. If the tax payable is an amount in excess of 500 rupees (CGST+SGST), the excess shall be waived.

 

7) Notification No. 22/2021 dated 01.06.2021 

Ministry of Finance, CBIC vide Notification No. 22/2021 Central Tax waived the amount of late fee payable under section 47 by any registered person who is required to deduct tax at source under the provisions of section 51 of the CGST Act. If the registered person fails to furnish the return in FORM GSTR-7 for the month of June 2021 onwards, by the due date, the amount that is in excess of 50 rupees (CGST + SGST) for each day of such failure shall be waived off.

Additionally, the total amount of late fee payable under section 47, shall stand waived off which is in excess of 2000 rupees (CGST + SGST).

 

8) Notification No. 23/2021 dated 01.06.2021

Ministry of Finance, CBIC vide Notification No. 23/2021 Central Tax amended Notification No. 13/2020 Central Tax dated 21.03.2020 and excluded government departments and local authorities from E-invoicing provisions.

 

9) Notification No.24/2021 dated 01.06.2021 w.e.f. 30.05.2021 

Ministry of Finance, CBIC vide Notification No. 24/2021 Central Tax amended Notification No. 14/2021 Central Tax dated 01.05.2021 to extend the deadlines for compliances.

• If any time limit for completion or compliance of any action, by any authority or by any person, falls during the period between 04.2021 and 29.06.2021 the time limit shall be extended to 30.06.2021.

Exceptions of the above extension are Registration procedure, provisions relating to the casual taxpayer and non-resident taxpayer, Invoicing, furnishing of outward supply, Late fee, Interest, power to arrest, Partner’s liability to discharge tax, Penalty, detention, and seizer of goods, and conveyances in transit, GSTR 3B, an inspection of goods and rules made thereunder.

• If any time limit for completion of any action under Rule 9 which is regarding registration, by any

authority or by any person, falls between 01.05.2021 and 30.06.2021, if it had not been completed in that period, the time limit for completion action is extended to 15.07.2021.

• If any notice regarding the rejection of a refund claim has been issued and the time limit for refund orders is between 04.2021 and 29.06.2021, it shall be extended to 30.06.2021 or 15 days after receipt of a reply to such notice whichever is later.

10)  Notification No. 25/2021 dated 01.06.2021 w.e.f. 31.05.2021 

Ministry of Finance, CBIC vide Notification No. 25/2021 Central Tax amends Notification No. 21/2019 Central Tax dated 23.04.2019 and extends the due date for furnishing Form GSTR 4 (Yearly return for Composition scheme) to 31.07.2021.

 

11)  Notification No.26/2021dated 01.06.2021 w.e.f. 31.05.2021 

Ministry of Finance, CBIC vide Notification No. 26/2021 Central Tax amends Notification No. 11/2021 Central Tax dated 01.05.2021 and extends the Due date for furnishing declaration in Form ITC 04, in respect of goods dispatched to a job worker or received from a job worker, during the period from 01.01.2021 to 31.03.2021 to 30.06.2021.

 

12)  Notification No. 27/2021 dated 01.06.2021 w.e.f. 01.06.2021 

Ministry of Finance, CBIC vide Notification No. 27/2021 Central Tax introduced Central Goods and Services Tax (fifth amendment) Rules, 2021.

Changes made by the same are as follows:

• Companies and LLPs are allowed to use EVC for filing till 08.2021.
• Rule 36(4) regarding the 5% limit for utilizing ITC of transactions with unfurnished documents would be calculated cumulatively for April 2021, May 2021, and June 2021 and be furnished in Return GSTR-3B for the tax period June 2021 or the quarter ending June
• Details of B2B transactions for May 2021 can be furnished through the Invoice Furnishing Facility from 06.2021 up to 28.06.2021.

 

13. Circular No:156/12/2021 dated 21.06.2021 

Ministry of Finance, CBIC via Circular No. 156/12/2021 clarified the applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance with Notification No. 14/2020-Central Tax dated 21.03.2020.

The following clarifications have been made by the circular :

• A person with a Unique Identity Number would not be treated as a registered person and thus

transactions with them shall be considered to be B2C transactions and requirements of Dynamic QR code have to be complied with.

However, if the UPI ID is linked to a specific bank account of the payee/ person collecting money, separate details of the bank account and IFSC may not be provided in the Dynamic QR Code.

• In cases where the payment is collected by some other person, authorized by the supplier on his/ her behalf, the UPI ID of such person may be provided in the Dynamic QR Code.
• Wherever an invoice is issued to a recipient located outside India, for payment received in foreign exchange for the supply of services and the place of supply for such services is in India, such invoice may be issued without having a Dynamic QR Code.
• In case for over counter sales, the invoice number is not available at the time of digital display of dynamic QR and the invoice number and invoices are generated after receipt of payment, the unique order ID/ unique sales reference number linked to the transaction, may be provided in the Dynamic QR Code.

This can be done only if the details of such unique order ID/ sales reference number are available on the processing system of the merchant/ supplier and the cross reference of such payment along

 

with unique order ID/ sales reference numbers are also provided on the invoice.

• When the part-payment for any supply has already been received from the customer/ recipient, in any form such as advance or voucher, then the dynamic QR code may provide only the remaining amount payable by the

The details of the total invoice value, along with details of the amount paid and the remaining amount to be paid, should be provided on the invoice.