GST Notifications & Instructions: Summary and Key Updates of June 2020

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Many provisions of the CGST Act has been amended in the Finance Bill 2020 and some of the same have been notified and the effective date is 30th Jun 2020.

Synopsis of the GST Notifications & Instruction issued on 24th June 2020

No. 49/2020 – Central Tax

Many provisions of the CGST Act has been amended in the Finance Bill 2020 and some of the same have been notified and the effective date is 30th Jun 2020.

Section – 118 of Finance Act 2020:  This amendment eases the provision for claiming input tax credit on debit note as per provisions of Section 16(4). The due date for availing input tax credit on the debit note has been amended. With this amendment, the date of actual invoice is no longer linked. This is a welcome move and help the taxpayers a lot.  

Section – 125 of Finance Act 2020: This provisions amendments Section 132. To curb the tax evasion and fraudulent manner of availing input tax credit. With these amendments, now the person who has taken the input tax credit fraudulently will also be penalized.

Section – 129 of Finance Act 2020: Para 4 of the Schedule II of the CGST Act 2017 has been amended. With this amendment, the transfer of business assets is considered as a supply, even if the transfer is made for consideration or not.

Section – 130 of Finance Act 2020: Based on the decisions taken in 37th GST Council Meeting, the fish meal is exempted for GST. Similarly, the tax rate of pulleys, wheels other parts used as part of agricultural machinery is reduced to 12%. With reduction of tax rates, it will lead to inverted duty structure and refund is not eligible in this case.

No. 50/2020 – Central Tax

Rules 7 of the CGST Rules 2017 has been amended with a new entry for Composition tax payers who are providing services will be taxed at rate of 6% (CGST – 3% & SGST/UTGST – 3%).

No. 51/2020 – Central Tax

As per the decisions taken in the 40th GST Council Meeting, the due dates & rate of interest for filing of GSTR – 3B has been notified.

Sr. No Category of Tax Payers Rate of Interest Tax Period
1 Tax Payers having turnover above Rs 5 Crores during the previous financial year 0% if filed within 15 days of the due date and 9?ter that if filed before 24th June 2020 Feb – 2020Mar – 2020Apr – 2020 
Sr. No Category of Tax Payers Tax Period Rate of Interest
0% filed before 9% filed before 30th Sep 2020
1 Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year, whose principal place of business is in the States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana or Andhra Pradesh or the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep Feb – 2020 30th June 2020 30th Sep 2020
Mar – 2020 3rd July 2020 30th Sep 2020
Apr – 2020 6th July 2020 30th Sep 2020
May – 2020  12th Sep 2020 30th Sep 2020
June – 2020 23rd Sep 2020 30th Sep 2020
July – 2020 27th Sep 2020 30th Sep 2020
2 Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year, whose principal place of business is in the States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha or the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi Feb – 2020 30th June 2020 30th Sep 2020
Mar – 2020 5th July 2020 30th Sep 2020
Apr – 2020 9th July 2020 30th Sep 2020
May – 2020  15th Sep 2020 30th Sep 2020
June – 2020 25th Sep 2020 30th Sep 2020
July – 2020 29th Sep 2020 30th Sep 2020

No. 52/2020 – Central Tax

Due date for filing of GSTR – 3B has been notified based on the decisions taken in the 40th GST Council and reduction of late fee has been notified

Sr. No Category of Tax Payers Tax Period Due Date
1 Tax Payers having turnover above Rs 5 Crores during the previous financial year Feb – 2020Mar – 2020Apr – 2020  24th June 2020
2 Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year, whose principal place of business is in the States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana or Andhra Pradesh or the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep Feb – 2020 30th June 2020
Mar – 2020 3rd July 2020
Apr – 2020 6th July 2020
May – 2020  12th Sep 2020
June – 2020 23rd Sep 2020
July – 2020 27th Sep 2020
3 Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year, whose principal place of business is in the States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha or the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi Feb – 2020 30th June 2020
Mar – 2020  5th July 2020
Apr – 2020 9th July 2020
May – 2020  15th July 2020
June – 2020 25th Sep 2020
July – 2020 29th Sep 2020

Late fee has been reduced or waived off for the taxpayers who have not filed GSTR – 3B for the period July 2017 to January 2020 between 1st July 2017 and 30th Sep 2020

Sr. No Category of Tax Payers  Penalty  
1 With Liability Rs 250/- per return
2 Nil Returns Nil

No. 53/2020 – Central Tax

The due dates for filing of GSTR – 1 has been notified from Jan 2020 to June 2020 for both monthly filing and quarterly filers. Late fee has also been waived off if the returns are filed within the due dates.

Sr. No Tax Period   Due date
1 March 2020 10th July 2020
2 April 2020 24th July 2020
3 May 2020 28th July 2020
4 June 2020 5th Aug 2020
Sr. No Tax Period   Due date
1 Jan to Mar 2020 17th July 2020
2 April to June 2020 3rd Aug 2020

Instruction No 3//2/2020 – GST

GST Rates for real estates have been reduced and input tax credit is not allowed in some cases. As the rates have been reduced for the real estate sector, input tax credit is not allowed. Another condition laid is that at least 80% of the inputs and input services expect services by way of grant of development rights, long term lease of land or FSI, electricity, high speed diesel, motor spirit, natural gas, will procured by the developer or the builder from registered taxpayers. In case if the same are procured from unregistered taxpayers, the builder or developer is required to pay the tax at end of the financial year. As per the    Instructions, the tax payment has to be done by the developer or builder using the Form DRC

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