Important Changes effective from 1.1.2021 under GST

 

IMPORTANT CHANGES EFFECTIVE FROM 1.1.2021 UNDER GST

 

The Goods and Services Tax Act, 2017 came into force with effect from 1.7.2017 in India.

 

The Central Government is amending GST Rules as and when required in order to increase revenue to exchequer and east of doing business to mercantile public.

 

The GST collections are high during January, April, July and October of every year. This hike is due to filing of Quarterly return whose turnover is below Rupees 1.5 Crores and  opted for Quarterly return filing Option and also because of  filing of Quarterly return filing of Composition opted persons and payment of GST at composition rates during the above months.

 

The Quarterly return taxpayers filing FORM GSTR-1 (whose turnover is below rupees 1.5 Crores and not opted for monthly return filing option) returns before the last day of the month succeeding the quarter i.e. on or before 30th April, 31st July, 31st October and 31st January and paying GST.  

The return filing dates were advanced to 13th day of the month of the succeeding quarter instead of above dates.

 

The FORM GSTR-1 by quarterly taxpayers must be filed on or before 13.1.2021 for the quarter period October to December 2020.

 

The Central Government has decided the following in respect of filing of FORM GSTR-3B.

 

Due dates for filing of Form GSTR-3B for the Tax Periods from October, 2020 till March, 2021

1.       Government of India, Ministry of Finance (Department of Revenue), CBIC, vide Notification No. 82/2020 – Central Tax, dated 11th Nov., 2020, has added sub rule (6) to Rule 61 of the Central Goods and Services Tax Rules, 2017, to provide for staggered filing of Form GSTR-3B, for the tax periods from October, 2020 till March, 2021. The details are as under:

 

Sl. No	Taxpayers with aggregate turnover (PAN based) in the previous financial year	And Taxpayers having principal place of business in the State/ UT of	Due date of filing of Form GSTR 3B, from October, 2020 till March, 2021
1	More than Rs. 5 Crore	All States and UTs	20th day of the following month
2	Up to Rs. 5 Crore	States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana and Andhra Pradesh , the Union territories of Daman and Diu, Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep	22nd day of the following month
3	Up to Rs. 5 Crore	States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand and Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi	24th day of the following month

 

QUARTERLY RETURN FILING AND MONTHLY PAYMENT

 

The Central Government has also introduced Quarterly Return filing and Monthly Payment of GST Dues.

 

Salient features of Quarterly Return filing & Monthly Payment of Taxes (QRMP) Scheme issued on 20/11/2020

1. Who can opt for the scheme: Following registered person (hereinafter RP) can file quarterly returns and pay tax on monthly basis w.e.f. 01.01.2021 :

·       An RP (Registered Person) who is required to file Form GSTR 3B with AATO of up to Rs 5 Cr. in the previous financial year is eligible. If AATO crosses Rs 5 Cr. during a quarter, RP will become in-eligible for the Scheme from next quarter.

·       Any person obtaining a new registration or opting out of Composition Scheme can also opt for this Scheme.

·       The option to avail this Scheme can be availed GSTIN wise. Therefore, few GSTINs for that PAN can opt for the Scheme and remaining GSTINs can remain out of the Scheme.

2.   Changes on the GST Portal: For quarter January, 2021 to March, 2021, all RPs whose AATO for the FY 2019-20 is up to Rs 5 Cr. and have furnished the return in Form GSTR-3B for the month of October, 2020 by 30^thNov., 2020, will be assigned by the GST System as follows:

 

Sl. No.	Class of RPs with AATO of	Return Option assigned by GST System
1	Up to Rs 1.5 Cr., who have furnished Form GSTR-1 on quarterly basis in current FY	Qtrly
2	Up to Rs 1.5 Cr., who have furnished Form GSTR-1 on monthly basis in current FY	Monthly
3	More than Rs 1.5 Cr. and up to Rs 5 Cr. in preceding FY	Qtrly

3.        When can a person opt for the scheme:

1.   Facility can be availed throughout the year, in any quarter.

2.   Option for QRMP Scheme, once exercised, will continue till RP revises the option or his AATO exceeds Rs 5 Cr.

3.   RPs assigned by GST System can choose to remain out of the scheme by exercising their option from 5^thDec., 2020 till 31^st Jan., 2021.

4.   The RPs opting for the scheme can avail the facility of Invoice Furnishing Facility (IFF), so that the outward supplies to registered person is reflected in their Form GSTR 2A & 2B.

5.        Payment of tax under the scheme:

·       RPs (Registered Persons) need to pay tax due in each of first two months (by 25^th of next month) in the Quarter, by selecting “Monthly payment for quarterly taxpayer” as reason for generating Challan.

·       RPs can either use Fixed Sum Method (pre-filled challan) or Self-Assessment Method (actual tax due), for monthly payment of tax for first two months, after adjusting ITC.

·       No deposit is required for the month, if there is nil tax liability.

·       Tax deposited for first 02 months can be used for adjusting liability for the qqarter in Form GSTR-3B and can’t be used for any other purpose till the filing of return for the quarter.

FURNISHING OF SUPPLY DETAILS

Invoice Furnishing Facility (IFF) for Taxpayers under QRMP Scheme

1.   An Invoice Furnishing Facility (IFF) facility has been provided to taxpayers under QRMP Scheme (Quarterly filers of Form GSTR-1 and also of Form GSTR-3B returns), as per sub-rule (2) of Rule-59 of the CGST Rules, 2017. Taxpayers who have opted for quarterly filing frequency under the scheme can file their details of outward supplies (B2B invoices only) for first two months of a quarter (M1 and M2 respectively of a Quarter) in IFF. For e.g. for Apr-June qtr., B2B invoices only for the months of April (M1) and May (M2) can be filed in IFF by a taxpayer.

2.   The IFF is a facility similar to Form GSTR-1, and it allows filing of details of B2B invoices in following tables only:

a. 4A, 4B, 4C, 6B, 6C - B2B Invoices
b. 9B - Credit / Debit Notes (Registered) - CDNR
c. 9A - Amended B2B Invoice - B2BA
d. 9C - Amended Credit/ Debit Notes (Registered) – CDNRA

3.   The option to upload details in IFF can be availed till 13th of the subsequent month. Any invoices remaining to be furnished, can be filed using the IFF in the subsequent month IFF or in the quarterly Form GSTR-1. For e.g. for Apr-June qtr., B2B invoices for the month of April (M1) can be filed in IFF by a taxpayer till 13th May. Any IFF which is not filed till the due date of 13th of the subsequent month will expire.

4.   To file the IFF form for M1 and M2 of the month, login to GST Portal and navigate to Returns > Services > Returns Dashboard > File Returns and then select the Financial Year & Return Filing Period (M1/M2 of a quarter) and click on SEARCH button to file the IFF forms for M1 or M2 month.

5.   IFF is an optional facility provided to taxpayers under QRMP scheme to pass on Input Tax Credit (ITC) to their recipients for M1 and M2 months of a quarter. However, filing of Form GSTR-1 for M3 month of a quarter is mandatory.

·       Records uploaded in IFF by the Supplier will reflect in Form GSTR-2A/2B of the Recipient.

·       Supplier Taxpayers can also upload details in their IFF, through JSON file, generated using Returns Offline Tool.

·       Records filed in IFF need not be filed again in Form GSTR-1 of that quarter.

·       Only the details saved in IFF can be deleted/edited using RESET button. Once submitted or filed, these details can’t be deleted.

FORM GSTR-1 FILING CONDITIONS

Similarly the filing of FORM GSTR-1 by taxpayers are restricted with certain conditions as shown below:

(a) a registered person shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for preceding two months;

(b) a registered person, required to furnish return for every quarter under the proviso to sub-section (1) of section 39, shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in FORM GSTR-3B for preceding tax period;

(c) a registered person, who is restricted from using the amount available in electronic credit ledger to discharge his liability towards tax in excess of ninety-nine per cent. of such tax liability under rule 86B, shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in FORM GSTR-3B for preceding tax period.”.

E-WAY BILL EXTENSION OF DISTANCE PER DAY

As per the notification dated 22 December 2020, No. 94 /2020. the validity period of e-waybill is changed from 100 KM per day to 200 KM per day from 01/01/2021. The E-Way Bill validity will be calculated upto the time of unloading at the business premises.

E-INVOICING FOR TAXPAYERS

E-Invoicing for taxpayers with TO Rs 100-500 Crores is enabled with effect from 1.1.2021. E-invoicing for taxpayers with turuover above Rs.500 Crores already enabled.

GEPP [VERSION 1.01] – TOOL

 

GePP, a simple and user-friendly form based Excel tool to enter the invoices one by one and generate the IRN Numbers is released in e-Invoice Portal. 

 

 

 

Filing of Form GSTR-I restrictions from 1.1.2021

FORM GSTR-1 FILING NOT POSSIBLE IF FORM GSTR-3B FILED AVAILING MORE THAN 99% OF GST OR FORM GSTR-3B NOT FILED

 

The Goods and Services Tax Act, 2017 came into force in India with effect from 1.7.2017.

 

The Central Government has amended the Goods and Services Tax Act Rules 2017 and inserted the following rules.

 

In rule 59, after sub-rule (4), the following sub-rule shall be inserted, namely:-

 

“(5) Notwithstanding anything contained in this rule, -

 

(a) a registered person shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for preceding two months;

 

(b) a registered person, required to furnish return for every quarter under the proviso to sub-section (1) of section 39, shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in FORM GSTR-3B for preceding tax period;

 

(c) a registered person, who is restricted from using the amount available in electronic credit ledger to discharge his liability towards tax in excess of ninety-nine per cent. of such tax liability under rule 86B, shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in FORM GSTR-3B for preceding tax period.”.

 

Similarly after rule 86A, with effect from the 1st day of January, 2021, the following rule shall be inserted, namely: -

 

“86B. Restrictions on use of amount available in electronic credit ledger.-Notwithstanding anything contained in these rules, the registered person shall not use the amount available in electronic credit ledger to discharge his liability towards output tax in excess of ninety-nine per cent. of such tax liability, in cases where the value of taxable supply other than exempt supply and zero-rated supply, in a month exceeds fifty lakh rupees:

 

Provided that the said restriction shall not apply where –

 

(a) the said person or the proprietor or karta or the managing director or any of its two partners, whole-time Directors, Members of Managing Committee of Associations or Board of Trustees, as the case may be, have paid more than one lakh rupees as income tax under the Income-tax Act, 1961(43 of 1961) in each of the last two financial years for which the time limit to file return of income under subsection (1) of section 139 of the said Act has expired; or

(b) the registered person has received a refund amount of more than one lakh rupees in the preceding financial year on account of unutilised input tax credit under clause (i) of first proviso of sub-section (3) of section 54; or 

(c) the registered person has received a refund amount of more than one lakh rupees in the preceding financial year on account of unutilised input tax credit under clause (ii) of first proviso of sub-section (3) of section 54; or

(d) the registered person has discharged his liability towards output tax through the electronic cash ledger for an amount which is in excess of 1% of the total output tax liability, applied cumulatively, upto the said month in the current financial year; or

(e) the registered person is –

(i)  Government Department; or

(ii) a Public Sector Undertaking; or

(iii)a local authority;or

(iv)a statutory body:

 

Provided further that the Commissioner or an officer authorised by him in this behalf may remove the said restriction after such verifications and such safeguards as he may deem fit.”.

 

The above amendments came into force with effect from 1.1.2021.

 

In order to give effect the above rules, the Central Governmen has amended rule 59 as shown below:

 

In rule 59, after sub-rule (5), the following sub-rule shall be inserted namely:-

 

“(6) Notwithstanding anything contained in this rule, -

 

(a) a registered person shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for preceding two months;

 

(b) a registered person, required to furnish return for every quarter under the proviso to sub-section (1) of section 39, shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in FORM GSTR-3B for preceding tax period;

 

(c) a registered person, who is restricted from using the amount available in electronic credit ledger to discharge his liability towards tax in excess of ninety-nine per cent. of such tax liability under rule 86B, shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in FORM GSTR-3B for preceding tax period.”.

 

The relevant Notification is given below for ready reference:

 

In order to give effect the above rules, the Central Governmen has amended rule 50 as shown below:

 

In rule 59, after sub-rule (5), the following sub-rule shall be inserted namely:-

 

“(6) Notwithstanding anything contained in this rule, -

 

(a) a registered person shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for preceding two months;

 

(b) a registered person, required to furnish return for every quarter under the proviso to sub-section (1) of section 39, shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in FORM GSTR-3B for preceding tax period;

 

(c) a registered person, who is restricted from using the amount available in electronic credit ledger to discharge his liability towards tax in excess of ninety-nine per cent. of such tax liability under rule 86B, shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in FORM GSTR-3B for preceding tax period.”.

 

The relevant Notification is given below for ready reference:

 

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section

(i)]

 

Government of India Ministry of Finance (Department of Revenue)

Central Board of Indirect Taxes and Customs

 

Notification No. 01/2021 – Central Tax

 

 

New Delhi, the 1st January, 2021

 

G.S.R……(E). -  In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely: -

 

1. Short title and commencement. - (1) These rules may be called the Central Goods and

Services Tax (Amendment) Rules, 2021.

 

(2) These rules shall come into force on the date of their publication in the Official Gazette.

 

2. In the Central Goods and Services Tax Rules, 2017 (hereafter in this notification referred to as the said rules), in rule 59, after sub-rule (5), the following sub-rule shall be inserted namely:-

 

“(6) Notwithstanding anything contained in this rule, -

 

(a) a registered person shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for preceding two months;

 

(b) a registered person, required to furnish return for every quarter under the proviso to sub-section (1) of section 39, shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in FORM GSTR-3B for preceding tax period;

 

(c) a registered person, who is restricted from using the amount available in electronic credit ledger to discharge his liability towards tax in excess of ninety-nine per cent. of such tax liability under rule 86B, shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in FORM GSTR-3B for preceding tax period.”.

 

 

[F. No. CBEC-20/06/04/2020-GST]

 

 

 

 

(Pramod Kumar) Director, Government of India

 

 

Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section

3, Sub-section (i), vide notification No. 3/2017-Central Tax, dated the 19th June, 2017, published

vide number G.S.R. 610 (E), dated the 19th June, 2017 and last amended vide notification No.

94/2020-Central Tax, dated the 22nd December, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 786(E), dated the 22nd December, 2020.