Page 37 - Plastics News March 2020

CirCuLAr

The GST Council, in its 39th meeting held on 14.03.2020, has 2. Deferment of E-invoice and QR Code:
made the following recommendations: a. Certain class of registered persons (insurance company,
1. Measures for Trade facilitation: banking company, financial institution, non-banking
a. Interest for delay in payment of GST to be charged on financial institution, GTA, passenger transportation
the net cash tax liability w.e.f. 01.07.2017 (Law to be service etc.) to be exempted from issuing e-invoices
amended retrospectively). or capturing dynamic QR code; and
b. Where registrations have been cancelled till b. The dates for implementation of e-invoicing and QR
14.03.2020, application for revocation of cancellation Code to be extended to 01.10.2020.
of registrationcan be filledup to 30.06.2020 (extension 3. Deferment of e-wallet Scheme:
of period of application as one-time measure to a. Extension of the time to finalize e-Wallet scheme upto
facilitate those who want to conduct business). 31.03.2021; and
c. Annual Return: b. Extension of the present exemptions from IGST and
i. Relaxation to MSMEs from furnishing of Cess on the imports made under the AA/EPCG/EOU
Reconciliation Statement in FORM GSTR-9C,for schemes upto 31.03.2021.
the financial year 2018-19, for taxpayers having 4. Continuation of existing system of furnishing FORM GSTR-
aggregate turnoverbelow Rs. 5 crores; ii. Due date 1&FORM GSTR-3B till September, 2020;
for filing the Annual return and the Reconciliation 5. Other new initiatives:
Statement for financial year 2018-19 to be a. Seeking information return from Banks;
extended to 30.06.2020; and iii. Late fees not to b. To curb fake invoicing and fraudulent passing of
be levied for delayed filing of the Annual return ITC,restrictions to be imposed on passing of the ITC
and the Reconciliation Statement for financial year in case of new GST registrations, before physical
2017-18 and 2018-19 for taxpayers with aggregate verification of premises and Financial KYC of the
turnover less than Rs. 2 crores.
registered person.
d. A new facility called ‘Know Your Supplier’ to be 6. Issuance of circulars in respect of:
introduced so as to enable every registered person to
have some basic information about the suppliers with a. Clarification in apportionment of ITC in cases of
whom they conduct or propose to conduct business. business reorganization under section 18 (3) of CGST
Act read with rule 41(1) of CGST Rules;
e. The requirement of furnishing FORM GSTR-1 for 2019-
20 to be waived for taxpayers who could not opt for b. Appeals during non-constitution of the Appellate Tribunal;
availing the option of special composition scheme c. Clarification on refund related issues;and
under notification No. 2/2019-Central Tax (Rate) dated d. Clarification on special procedure for registered
07.03.2019 by filing FORM CMP-02. personswho are corporate debtors under the provisions
of the Insolvency and Bankruptcy Code, 2016,
f. A special procedure is being prescribed for registered
personswho are corporate debtors under the provisions undergoing the corporate insolvency resolution
of the Insolvency and Bankruptcy Code, 2016 and process.
are undergoing the corporate insolvency resolution 7. Amendments to the CGST Rules: Key amendments are as below:
process, so as to enable them to comply with the a. Procedure for reversal of input tax credit in respect of
provisions of GST Laws during the CIRP period. capital goods partly used for affecting taxable supplies
g. A special procedure for registered persons in Dadra and and partly for exempt supplies under rule 43 (1) (c);
Nagar Haveli & Daman and Diu during transition period, b. ceiling to be fixed for the value of the export supply
consequent to merger of the UTs w.e.f. 26.01.2020; for the purpose of calculation of refund on zero rated
transition to be completed by 31.05.2020. supplies;
h. Extension of due dates for FORM GSTR-3B for the month c. to allow for refund to be sanctioned in both cash and
of July, 2019 to January, 2020 till 24th March, 2020 for credit in case of excess payment of tax;
registered persons having principal place of business d. to provide for recovery of refundon export of goods
in the Union territory of Ladakh. Similar extension is where export proceeds are not realized within the
also recommended for FORM GSTR-1 & FORM GSTR-7. time prescribed under FEMA;and
i. Bunching of refund claims allowed across financial e. to operationalize Aadhaar authentication for new taxpayers.
years to facilitate exporters. 8. Certain amendments to be carried out in the GST laws.

March 2020 Plastics News
3739 March 2020 Plastics N ews