CA CS CMA Final Statutory Updates For Nov Dec 2020

CHARTMASTER'S
AMENDMENT
E-BOOKLET
Statutory updates For
Nov/Dec 2020
CA & CMA Final |
CS Professional
INCLUDING CRUX OF AMENDMENTS FOR

BEST UNDERSTANDING & SUMMARY
REVISION
CA RAMESH SONI
Applicable for CA/CS/CMA Nov/Dec 2020 CHARTMASTER’s IDT - Statutory updates
Amendments, Circulars & Notifications
Composition Levy
Section 10(1): Explanation inserted
(1) Notwithstanding anything to the contrary contained in this Act but subject to the provisions of sub-
sections (3) and (4) of section 9,
• a RP, whose ATO in the PFY did not exceed 50 lakh rupees, may opt (rule 3) to pay, in lieu of
the tax payable by him under section 9(1),
• an amount of tax calculated at such rate as may be prescribed, (rule 7) but not exceeding, —
(a) one per cent of the turnover in State or turnover in Union territory in case of a manufacturer,
(b) two and a half per cent of the turnover in State or turnover in Union territory in case of
persons engaged in making supplies referred to in clause (b) of paragraph 6 of Schedule II, and
(c) half per cent of the turnover in State or turnover in Union territory in case of other suppliers,
subject to such conditions and restrictions as may be prescribed: (rule 5)
Provided that the Government may, by notification, increase the said limit of fifty lakh rupees to
such higher amount, not exceeding one crore and fifty lakh rupees, as may be recommended by the
Council:
Provided further that(2nd proviso) a person who opts to pay tax under clause (a) or clause (b) or
clause (c) may supply services (other than those referred to in clause (b) of paragraph 6 of Schedule
II), of value not exceeding ten per cent of turnover in a State or Union territory in the preceeding
financial year or five lakh rupees, whichever is higher.
Explanation. — For the purposes of second proviso, the value of exempt supply of services
provided by way of extending deposits, loans or advances in so far as the consideration is
represented by way of interest or discount shall not be taken into account for determining
the value of turnover in a State or Union territory.
Crux: Value of turnover in a State/UT shall exclude interest/discount.
Section 10(2): Person ineligible to opt for composition
(a) save as provided in sub-section (1), he is not engaged in the supply of services;
(b) he is not engaged in making any supply of goods which are not leviable to tax under this Act;
(c) he is not engaged in making any inter-State outward supplies of goods;
(d) he is not engaged in making any supply of goods through an ECO who is required to collect tax at
source under section 52;
(e) he is not a manufacturer of such goods as may be notified by the Government on the
recommendations of the Council; and
(f) 1he is neither a CTP nor a NRTP.
Crux: Earlier rule 5 of CGST rule stated that CTP and NRTP are ineligible for composition
scheme, however now the same has been included in the CGST act.
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Inserted by the Finance (No. 2) Act, 2019, w.e.f. 1-1-2020.
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Section 10(2A): Newly inserted subsection in section 10 to replace Notification no. 02/2019.
Notwithstanding anything to the contrary contained in this Act, but subject to the provisions
of sub-sections (3) and (4) of section 9,
• a registered person, not eligible to opt to pay tax under sub-section (1) and sub section (2),
• whose aggregate turnover in the preceding financial year did not exceed fifty lakh rupees,
• may opt to pay, in lieu of the tax payable by him under section 9(1),
• an amount of tax calculated at such rate as may be prescribed, but not exceeding 3% of the
turnover in State or turnover in Union territory,
• if he is not—
(a) engaged in making any supply of goods or services which are not leviable to tax under this Act;
(b) engaged in making any inter-State outward supplies of goods or services;
(c) engaged in making any supply of goods or services through an electronic commerce operator
who is required to collect tax at source under section 52;
(d) a manufacturer of such goods or supplier of such services as may be notified by the Government
on the recommendations of the Council; and
(e) a casual taxable person or a non-resident taxable person:
Provided that
where more than one registered person are having the same Permanent Account Number, the
registered person shall not be eligible to opt for the scheme under this sub-section unless all such
registered persons opt to pay tax under this sub-section.
Crux:
• Earlier this scheme was provided vide notification no. 02/2019, however now the same
has been included in the act vide section 10(2A).
• All RPs under same PAN to OPT for composition levy together.
• Further, rule 7 has been amended to provide that the rate of tax on person opting for
composition levy u/s 10(2A) shall be 6% (i.e. 3% CGST & 3% SGST) of supplies of goods
and services in the state/UT.
Section 10(3): Composition levy shall lapse with effect from the day RP crosses ATO.
The option availed of by a RP under sub-section (1) 2or sub-section (2A), as the case may be, as
the case may be, shall lapse with effect from the day on which his aggregate turnover during a financial
year exceeds the limit specified under sub-section (1) or sub-section (2A), as the case may be.
Crux: Amendment made to include reference to section 10(2A).
Section 10(4): A taxable person (under composition) not to collect tax, nor take ITC
A taxable person to whom the provisions of sub-section (1) or, as the case may be, sub-section
(2A) apply shall not collect any tax from the recipient on supplies made by him nor shall he be entitled
to any credit of input tax.
Crux: Amendment made to include reference to section 10(2A).
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Section 10(5): TP pays tax under compo even if ineligible, he shall be liable to penalty and
then demand.
If the PO has reasons to believe that a taxable person has paid tax under sub-section (1) or sub-
section (2A), as the case may be, despite not being eligible, such person shall, in addition to any tax
that may be payable by him under any other provisions of this Act, be liable to a penalty and the
provisions of section 73/74 shall, mutatis mutandis, apply for determination of tax and penalty.
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Explanation 1. — For the purposes of computing aggregate turnover of a person for
determining his eligibility to pay tax under this section, the expression "aggregate turnover"
shall
- include the value of supplies made by such person from the 1st day of April of a financial year upto
the date when he becomes liable for registration under this Act,
- but shall not include the value of exempt supply of services provided by way of extending
deposits, loans or advances in so far as the consideration is represented by way of interest or
discount.
Explanation 2. — For the purposes of determining the tax payable by a person under this
section, the expression "turnover in State or turnover in Union territory" shall not include
the value of following supplies, namely: —
(i) supplies from the first day of April of a financial year upto the date when such person becomes
liable for registration under this Act; and
(ii) exempt supply of services provided by way of extending deposits, loans or advances in so far as the
consideration is represented by way of interest or discount.
Crux: Amendment made to include reference to section 10(2A) & Explanations inserted
For the purpose of Checking eligibility: ATO shall include supplies from 1st April upto date of
becoming liable for registration but exclude interest/discount.
For the purpose of paying tax: TO in state/UT shall exclude supplies from 1st April upto date
of becoming liable for registration and interest/discount.
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Charge of GST
Reverse charge u/s 9(3), Entry no 15 of notification no. 13/2017, re-drafted to remove
ambiguity in existing entry.
Sl Category of Supply of Supplier of service Recipient

No. Services (liable)
15 4
Services provided by way of Any person other than a body Any body
renting of a motor vehicle corporate, paying CT @ 2.5% on corporate located
5
designed to carry renting of MV with ITC only of IS in the taxable
passengers where the cost of in the same line of business who territory.
fuel is supplies the service to a body
included in the consideration corporate and does not issue an
charged from the service invoice charging central tax at the
recipient, provided to a body rate of 6 % (CGST) to the service
corporate. recipient
Clarification regarding Reverse Charge Mechanism (RCM) on renting of motor vehicles

1. Suppliers of service by way of renting of any motor vehicle designed to carry passengers where the
cost of fuel is included in the consideration charged from the service recipient have an option to pay
GST either at 5% with limited ITC (of input services in the same line of business) or 12% with full
ITC.
2. The GST Council in its 37th meeting dated 20.09.2019 examined the request to place the supply of
renting of motor vehicles under RCM and recommended that the said supply when provided by
suppliers paying GST @ 5% to corporate entities may be placed under RCM. RCM was not
recommended for suppliers paying GST @12% with full ITC, so that they may have the option to
continue to avail ITC. RCM otherwise would have blocked the ITC chain for them.
Accordingly, the following entry was inserted in the RCM notification with effect from 1.10.19:
SN Category of Supply Supplier of service Recipient of
of Services Service
(1) (2) (3) (4)
Services provided by Any person other than a body Any body corporate
way of renting of a corporate, paying central tax at the located in the taxable
motor vehicle provided rate of 2.5% on renting of motor territory.
to a body corporate. vehicles with input tax credit only of
input service in the same line of
business
3. Post issuance of the notification, references have been received stating that when a
service is covered by RCM, GST would be paid by the service recipient and not by the
supplier. Therefore, the wording of the notification that “any person other than a body corporate,
paying central tax at the rate of 2.5%” is not free from doubt and needs amendment/ clarification
from the perspective of drafting.
4. The matter has been examined. When any service is placed under RCM, the supplier shall not
charge any tax from the service recipient as this is the settled procedure in law under RCM.
4
Inserted, by Notification No. 22/2019-Central Tax (Rate), dated 30-9-2019, w.e.f. 1-10-2019.
5
Notification No. 29/2019- Central Tax (Rate) dated 31.12.19
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There are only two rates applicable on the service of renting of vehicles, 5% with limited
ITC and 12% with full ITC. The only interpretation of the notification entry in question which is
not absurd would be that –
(i) where the supplier of the service charges GST @ 12% from the service recipient, the service
recipient shall not be liable to pay GST under RCM; and,
(ii) where the supplier of the service doesn’t charge GST @ 12% from the service recipient, the
service recipient shall be liable to pay GST under RCM.
5. Though a supplier providing the service to a body corporate under RCM may still be paying GST @
5% on the services supplied to other non-body corporate clients, to bring in greater clarity, serial
No. 15 of the notification No. 13/2017-CT (R) dated 28.6.17 has been amended vide notification
No. 29/2019-CT (R) dated 31.12.19 to state that RCM shall be applicable on the service by way of
renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the
consideration charged from the service recipient only if the supplier fulfils all the following
conditions:–
(a) is other than a body-corporate;
(b) does not issue an invoice charging GST @12% from the service recipient; and
(c) supplies the service to a body corporate.
It may be noted that the present amendment of the notification is merely clarificatory in nature and
therefore for the period 01.10.2019 to 31.12.2019 also, clarification given at para 5 above shall apply,
as any other interpretation shall render the RCM notification for the said service unworkable for that
period.
Crux:
There are two rates applicable on the service of renting of vehicles,
• 5% with limited ITC (ITC only of input service in the same line of business) and
• 12% with full ITC.
RCM shall be applicable only,

If the supplier fulfils all the following conditions: –
(a) is other than a body-corporate;
(b) does not issue an invoice charging GST @12% from the service recipient; and
(c) supplies the service to a body corporate.
Illustration:
Case Supplier Invoice/Document Recipient Whether RCM is
issued applicable?
1 Ram a registered Tax Invoice with GST @ Shyam (an NO RCM
person (RP) 5% individual)
2 Ram a RP Tax Invoice with GST @ Shyam RCM applicable
5% limited
3 Ram limited a RP Tax Invoice with GST @ Shyam NO RCM
5% limited
4 Ram an Unregistered Does not issue tax Shyam Shyam ltd liable
person Invoice, however issues limited to pay GST @ 5
a commercial Invoice % under RCM.
5 Ram a RP under Bill of supply Shyam Shyam ltd liable
composition scheme limited to pay GST @ 5
– section 10(2A) % under RCM.
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Registration
Section 22(1): Registration on crossing applicable aggregate turnover
Every supplier shall be liable to be registered under this act in state/UT, (other than SCS) from where
he makes taxable supply of goods or services or both, if his ATO in a FY exceeds 20 lakh rupees:
Provided that Where such person makes taxable supplies of goods or services or both from any of
the SCS, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh
rupees:
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Provided further that The Government may, at the request of a SCS & on the recommendation of the
council, enhance the ATO referred to in the first proviso from ten lakh rupees to such amount, not
exceeding twenty lakh rupees and subject to such conditions and limitations, as may be so notified:
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Provided also that The Government may, at the request of a State & on the recommendations
of the Council, enhance the aggregate turnover from 20 lakh rupees to such amount not
exceeding 40 lakh rupees in case of supplier who is engaged exclusively in the supply of goods,
subject to such conditions and limitations, as may be notified.
Explanation. — For the purposes of this sub-section, a person shall be considered to be

engaged exclusively in the supply of goods even if he is engaged in exempt supply of services
provided by way of extending deposits, loans or advances in so far as the consideration is
represented by way of interest or discount.
Crux:
1. Power to increase the threshold limit for registration from Rs 20 lakhs to 40 lakhs on
request of a state & on the recommendations of the Council by notification has now been
incorporated u/s 22(1), however no notification has been issued using this power yet.
Currently, Notification no. 10/2019 issued u/s 23(2) exempts exclusive supplier of goods
in some states from registration upto Rs 40 lacs.
2. A person shall be considered to be engaged exclusively in the supply of goods even if he

is engaged in exempt supply of services where consideration is interest or discount.
Illustration:
Supplier State Turnover ATO ATO Remarks
applicable
Ram Assam Sale of Goods – 43 40 lacs ATO shall include
38 lacs lacs interest/discount income, but
Interest Income such income cannot make him
– 5 lacs ineligible for higher limit of Rs 40
lacs. Ram shall be deemed to be
exclusive supplier of goods even
if he is engaged in exempt supply
of services where consideration
is interest or discount.
He shall be required registration
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Inserted by the Central Goods and Services Tax (Amendment) Act, 2018, w.e.f. 1-2-2019.
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Supplier State Turnover ATO ATO Remarks
applicable
Shyam Assam Sale of Goods – 39 40 lacs Shyam shall not be required
38 lacs lacs registration since ATO did not
Interest Income exceed Rs 40 lacs.
– 1 lac
Aadhaar authentication mandatory for new registrants for grant of registration
There is a simplified registration procedure under GST. However, in an endeavor to curb/check fly-by-
night operators and to increase compliance, Aadhaar e-KYC based registration has been introduced
under the GST law. With effect from 01.04.2020, Aadhaar authentication has been made mandatory for
the new applicants (whether an individual applicant or an applicant other than individual) in order to be
eligible for grant of registration. Subsequently, existing registrants will also be required to undergo
Aadhaar authentication otherwise their registration shall be deemed to be invalid.
Sub-sections (6A), (6B), (6C) and (6D) were inserted in section 25 of the CGST Act, 2017, vide the
Finance (No.2) Act, 2019, to make Aadhaar authentication mandatory for specified class of new
taxpayers and to prescribe the manner in which certain class of registered taxpayers are required to
undergo Aadhaar authentication.
Section 25(6A)
Every registered person shall undergo authentication, or furnish proof of possession of
Aadhaar number, in such form and manner and within such time as may be prescribed.
Provided that
• if an Aadhaar number is not assigned to the registered person,
• such person shall be offered alternate and viable means of identification
• in such manner as Government may, on the recommendations of the Council, prescribe:
Provided further that

• in case of failure to undergo authentication or furnish proof of possession of Aadhaar number or
furnish alternate and viable means of identification,
• registration allotted to such person shall be deemed to be invalid and
• the other provisions of this Act shall apply as if such person does not have a registration.
Section 25(6B)
On and from the date of notification,
- every individual shall,
- in order to be eligible for grant of registration,
- undergo authentication, or furnish proof of possession of Aadhaar number,
- in such manner as the Government may, on the recommendations of the Council, specify in the
said notification:
Provided that if an Aadhaar number is not assigned to an individual, such individual shall be offered
alternate and viable means of identification in such manner as the Government may, on the
recommendations of the Council, specify in the said notification.
Notification No. 18/2020 – Central Tax dated 23.03.2020 (Effective 01.04.20)

In exercise of the powers conferred by section 25(6B) of the CGST Act, 2017, the CG, on the
recommendations of the Council, hereby notifies the date of coming into force of this notification as the
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date, from which an individual shall undergo authentication, of Aadhaar number, as specified in rule 8
of the CGST Rules, 2017, in order to be eligible for registration:
Provided that if Aadhaar number is not assigned to the said individual, he shall be offered alternate
and viable means of identification in the manner specified in rule 9 of the said rules.
Section 25(6C)
On and from the date of notification,
- every person, other than an individual,
- shall, in order to be eligible for grant of registration,
- undergo authentication, or furnish proof of possession of Aadhaar number of the
▪ Karta,
▪ Managing Director,
▪ whole time Director,
▪ such number of partners,
▪ Members of Managing Committee of Association,
▪ Board of Trustees,
▪ authorised representative,
▪ authorised signatory and
▪ such other class of persons,
- in such manner, as the Government may, on the recommendation of the Council, specify in the
said notification:
Provided that where such person or class of persons have not been assigned the Aadhaar Number,
such person or class of persons shall be offered alternate and viable means of identification in such
manner as the Government may, on the recommendations of the Council, specify in the said
notification.
Notification No. 19/2020 – Central Tax dated 23.03.20 (Effective 01.04.20)

In exercise of the powers conferred by section 25(6C) of the CGST Act, 2017, the CG, on the
recommendations of the Council, hereby notifies the date of coming into force of this notification as the
date, from which the –
(a) authorised signatory of all types;
(b) Managing and Authorised partners of a partnership firm; and
(c) Karta of a Hindu undivided family,
shall undergo authentication of possession of Aadhaar number, as specified in rule 8 of the CGST Rules,
2017, in order to be eligible for registration under GST:
Provided that if Aadhaar number is not assigned to the said persons, they shall be offered alternate
and viable means of identification in the manner specified in rule 9 of the said rules.
Section 25(6D)
The provisions of sub-section (6A) or sub-section (6B) or sub-section (6C) shall not apply to
such person or class of persons or any State or Union territory or part thereof, as the Government may,
on the recommendations of the Council, specify by notification.
Explanation. — For the purposes of this section, the expression "Aadhaar number" shall have the
same meaning as assigned to it in clause (a) of section 2 of the Aadhaar (Targeted Delivery of Financial
and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016).
Notification no. 17/2020 – Central Tax dated 23.03.20 (Effective 01.04.20)

In exercise of the powers conferred by section 25(6D) of the CGST Act, 2017, the CG, on the
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recommendations of the Council, hereby notifies that the provisions of sub-section (6B) or (6C) of the
said Act shall not apply to
- a person who is not a citizen of India or
- to a class of persons other than the following class of persons, namely: –
(a) Individual;
(b) authorised signatory of all types;
(c) Managing and Authorised partner; and
(d) Karta of a Hindu undivided family.
In pursuance to sub-sections (6B), (6C) and (6D) of section 25, following amendments have
been made:
Rule 8 of the CGST Rules, 2017 provides the procedure for application of registration.
A new sub-rule (4A) has been inserted after sub-rule (4) to rule 8. It provides that, with effect from
01.04.2020, the applicant shall, while submitting an application under sub-rule (4), undergo
authentication of Aadhaar number for grant of registration. In exercise of powers conferred by section
25(6B) & (6C), an individual, authorised signatory of all types, Managing and Authorised partners of a
partnership firm, Karta of Hindu undivided family, shall undergo authentication, of Aadhaar number, as
specified in this rule, in order to be eligible for registration, with effect from 01.04.2020. However, if
Aadhaar number is not assigned to the said persons, they shall be offered alternate and viable means
of identification in the manner specified in rule 9 of the said rules.
Proviso inserted to rule 9(1) provides that where a person, other than those notified under section
25(6D), fails to undergo authentication of Aadhaar number as specified in rule 8(4A) above, then the
registration shall be granted only after physical verification of the principal place of business in the
presence of the said person, not later than 60 days from the date of application. A site survey (Physical
verification) will be done and identification documents will be verified. In such cases, deemed approval
of registration application [as provided in rule 9(5)] will not be applicable.
Rule 25 providing for physical verification of business premises has also been suitably
amended to provide that where the proper officer is satisfied that the physical verification of the place
of business of a person is required due to failure of Aadhaar authentication before the grant of
registration, or due to any other reason after the grant of registration, he may get such
verification of the place of business, in the presence of the said person, done. The verification report
along with the other documents, including photographs, shall be uploaded in prescribed form [GST
REG-30] on the common portal within a period of 15 working days following the date of such
verification.
Crux: Aadhar authentication has been made mandatory, failing which registration shall be
granted only after physical verification of the principal place of business.
Section 25(6A): Every registered person shall undergo Aadhaar authentication in such form
and manner and within such time as may be prescribed. (currently non operational since
nothing has been prescribed).
Section 25(6B): In case of New registration: Every Individual to undergo Aadhaar

authentication.
Section 25(6C): Authorised signatory of all types, Managing and Authorised partners of a
partnership firm; and Karta of a Hindu undivided family, shall undergo Aadhaar
authentication.
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Section 25(6D): Aadhaar authentication not required incase of
• a person who is not a citizen of India or
• to a class of persons other than the following class of persons, namely: –
(a) Individual;
(b)authorised signatory of all types;
(c) Managing and Authorised partner; and
(d)Karta of a Hindu undivided family.
If Aadhaar number is not assigned to the said persons, then the registration shall be granted
only after physical verification of the principal place of business in the presence of the said
person, not later than 60 days from the date of application. A site survey (Physical
verification) will be done and identification documents will be verified.
In such cases, deemed approval of registration (when no action taken by PO with 3 working
days or 7 working days) will not be applicable.
Exemptions from GST
Entry No. 41: Services of Lease
Upfront amount (called as premium, salami, cost, price, development charges or by any other name)
payable in respect of service by way of granting of long term lease of thirty years, or more) of industrial
plots or plots for development of infrastructure for financial business, provided by the State
Government Industrial Development Corporations or Undertakings or by any other entity having 820
per cent. or more ownership of CG/SG/UT to the industrial units or the developers in any industrial or
financial business area.
Explanation. —For the purpose of this exemption, the Central Government, State Government or
Union territory shall have 920 per cent or more ownership in the entity directly or through an entity
which is wholly owned by the Central Government, State Government or Union territory.
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Provided that the leased plots shall be used for the purpose for which they are allotted,
that is, for industrial or financial activity in an industrial or financial business area:
Provided further that the State Government concerned shall monitor and enforce the above
condition as per the order issued by the State Government in this regard:
Provided also that in case of any violation or subsequent change of land use, due to any
reason whatsoever, the original lessor, original lessee as well as any subsequent lessee or
buyer or owner shall be jointly and severally liable to pay such amount of central tax, as
would have been payable on the upfront amount charged for the long term lease of the plots
but for the exemption contained herein, along with the applicable interest and penalty:
Provided also that the lease agreement entered into by the original lessor with the original
lessee or subsequent lessee, or sub- lessee, as well as any subsequent lease or sale
agreements, for lease or sale of such plots to subsequent lessees or buyers or owners shall
incorporate in the terms and conditions, the fact that the central tax was exempted on the
8
Substituted for "50" by the Notification No. 28 /2019- Central Tax (Rate), Dated 31-12-2019, w.e.f. 1-1-2020.
9
Substituted for "50" by the Notification No. 28 /2019- Central Tax (Rate), Dated 31-12-2019, w.e.f. 1-1-2020.
10
Substituted by Notification No. 28 /2019- Central Tax (Rate), Dated 31-12-2019, w.e.f. 1-1-2020
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long term lease of the plots by the original lessor to the original lessee subject to above
condition and that the parties to the said agreements undertake to comply with the same.
Crux:
• Lessor: SG Industrial Development Corporations or Undertakings or any other entity
having 20% or more ownership of CG/SG/UT
• Lessee: the industrial units or the developers in any industrial or financial business area.
• Service: Granting of long-term lease of thirty years, or more of industrial plots or plots for
development of infrastructure for financial business.
• Condition: Leased plots shall be used for the purpose for which they are allotted, that is,
for industrial or financial activity in an industrial or financial business area.
• SG concerned shall monitor and enforce the above condition as per the order
• In case of any violation or subsequent change of land use: the original lessor, original
lessee as well as any subsequent lessee or buyer or owner shall be jointly and severally
liable to pay such amount of central tax, as would have been payable along with the
applicable interest and penalty.
• Lease agreement/Subsequent sub lease or sale agreement shall incorporate in the terms
and conditions, the fact that the central tax was exempted subject to above condition and
that the parties to the said agreements undertake to comply with the same.
Tax Invoice, Credit and Debit Notes
Rule 48: Manner of Issuing Invoice
(1) The invoice shall be prepared in triplicate, in the case of supply of goods, in the following manner,
namely, -
a. the original copy being marked as ORIGINAL FOR RECIPIENT;
b. the duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and
c. the triplicate copy being marked as TRIPLICATE FOR SUPPLIER.
(2) The invoice shall be prepared in duplicate, in the case of the supply of services, in the following
manner, namely, -
a. the original copy being marked as ORIGINAL FOR RECIPIENT; and
b. the duplicate copy being marked as DUPLICATE FOR SUPPLIER.
(3) The serial number of invoices issued during a tax period shall be furnished electronically through the
common portal in FORM GSTR-1.
(4) 11The invoice shall be prepared by such class of registered persons as may be notified by
the Government, on the recommendations of the Council, by including such particulars
contained in FORM GST INV-01 after obtaining an Invoice Reference Number by uploading
information contained therein on the Common GST Electronic Portal in such manner and
subject to such conditions and restrictions as may be specified in the notification.
(5) Every invoice issued by a person to whom sub-rule (4) applies in any manner other than
the manner specified in the said sub-rule shall not be treated as an invoice.
(6) The provisions of sub-rules (1) and (2) shall not apply to an invoice prepared in the
manner specified in sub-rule (4).
1111
Inserted by the Central Goods and Services Tax (Eighth Amendment) Rules, 2019, w.e.f. 13-12-2019.
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Notification Seeks to notify the common portal for the purpose of e-invoice. [Notification No.
69/2019 – Central Tax dated 13.12.19 with effect from the 01.01.2020.]
The CG, on the recommendations of the Council, hereby, notifies the following as the Common GST
Electronic Portal for the purpose of preparation of the invoice in terms of rule 48(4) of the aforesaid
rules, namely: -
(i) www.einvoice1.gst.gov.in;
(ii) www.einvoice2.gst.gov.in;
(iii) www.einvoice3.gst.gov.in;
(iv) www.einvoice4.gst.gov.in;
(v) www.einvoice5.gst.gov.in;
(vi) www.einvoice6.gst.gov.in;
(vii) www.einvoice7.gst.gov.in;
(viii) www.einvoice8.gst.gov.in;
(ix) www.einvoice9.gst.gov.in;
(x) www.einvoice10.gst.gov.in.
Explanation. - For the purposes of this notification, the above-mentioned websites mean the websites
managed by the Goods and Services Tax Network, a company incorporated under the provisions of
section 8 of the Companies Act, 2013.
Notification Seeks to notify the class of registered person required to issue e-invoice.
[Notification No. 70/2019 – Central Tax dated 13-12-2019 effective 01.04.2020]
The Government, on the recommendations of the Council, hereby notifies RP, whose aggregate
turnover in a FY exceeds 100 crore, as a class of RP who shall prepare invoice in terms of rule 48(4)
of the said rules in respect of supply of goods or services or both to a RP. (notification suspended).
Crux: The Government, on the recommendations of the Council, now has the power to notify
class of registered persons who shall be required to obtaining an Invoice Reference Number
by uploading information on the Common GST Electronic Portal.
Rule 46: Particulars to be stated in a tax Invoice
The Government may, by notification, on the recommendations of the Council, and subject to such
conditions and restrictions as mentioned therein, specify that the tax invoice shall have Quick
Response (QR) code.
Crux: The Government may, by notification, on the recommendations of the Council, specify
that the tax invoice shall have Quick Response (QR) code.
Section 31A: Facility of digital payment to recipient
The Government may, on the recommendations of the Council, prescribe a class of RPs who shall
provide prescribed modes of electronic payment to the recipient of supply of goods or services or both
made by him and give option to such recipient to make payment accordingly, in such manner and
subject to such conditions and restrictions, as may be prescribed.
Crux: Prescribed class of RPs shall provide prescribed modes of e-payment to the recipient;
however, nothing has been prescribed yet.
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E-Way Bill
Rule 138E: Restriction on furnishing of information in PART A of FORM GST EWB-01.
Notwithstanding anything contained in sub-rule (1) of rule 138, no person (including a

consignor, consignee, transporter, an e-commerce operator or a courier agency) shall be allowed to
furnish the information in PART A of FORM GST EWB-01 in respect of a registered person, whether as a
supplier or a recipient, who, —
(a) being a person paying tax u/s 10, or availing the benefit of notification No. 2/2019-
Central Tax (Rate), dated the 7th March, 2019 has not furnished the statement in FORM GST
CMP-08 for two consecutive quarters; or
(b) being a person other than a person specified in clause (a), has not furnished the returns for a
consecutive period of two months:
(c) being a person other than a person specified in clause (a), has not furnished the
statement of outward supplies for any two months or quarters, as the case may be.
Provided that the Commissioner may, on receipt of an application from a registered person in FORM
GST EWB-05, on sufficient cause being shown and for reasons to be recorded in writing, by order, in
FORM GST EWB-06 allow furnishing of the said information in PART A of FORM GST EWB- 01, subject to
such conditions and restrictions as may be specified by him:
Provided further that no order rejecting the request of such person to furnish the information in PART
A of FORM GST EWB-01 under the first proviso shall be passed without affording the said person a
reasonable opportunity of being heard:
Provided also that the permission granted or rejected by the Commissioner of State tax or
Commissioner of Union territory tax shall be deemed to be granted or, as the case may be, rejected by
the Commissioner.
Explanation. — For the purposes of this rule, the expression "Commissioner" shall mean the
jurisdictional Commissioner in respect of the persons specified in clauses (a) and (b).
Crux:
Blocking of E-way bill
No person shall be allowed to furnish information in Part A w.r.t. a RP who:
(a) Being composition dealer has not furnished GST CMP 08 for two consecutive quarters.
(b) Being person other than (a) has not furnished 2 consecutive returns (u/s 39).
(c) Being person other than (a) has not furnished GSTR 1 for any 2 months/quarters.
Unblocking of E-way Bill

• Application to commissioner in GST EWB 05,
• Commissioner satisfied: issue order, in GST EWB-06 allow furnishing details in PART A or
• Reject the request after providing Opportunity of being heard (OBH).
CA Ramesh Soni | +91 93536 19482 13

Input Tax Credit
Rule 36: Documentary requirements and conditions for claiming input tax credit
36(4): Amended
ITC to be availed by a registered person in respect of invoices or debit notes, the details of
which have not been uploaded by the suppliers under sub-section (1) of section 37, shall not
exceed 20 percent 10 percent. of the eligible credit available in respect of invoices or debit
notes the details of which have been uploaded by the suppliers under sub-section (1) of
section 37.
Section 16(2) of the CGST Act provides certain conditions for availing ITC wherein one of the conditions
is that the taxpayer must be in possession of the tax invoice or other tax paying document in respect of
which he is claiming the ITC. Rule 36 of CGST Rules lays down the documents and other conditions
basis which the registered person can claim ITC.
With effect from 09.10.2019, a new sub-rule (4) has been introduced in rule 36 vide Notification No.
49/2019 CT dated 09.10.2019 to specify the quantum of ITC that can be claimed against the
invoices/debit notes uploaded and invoices/debit notes not uploaded, by the supplier.
As per sub-rule (4) of rule 36, ITC to be availed by a registered person in respect of invoices or
debit notes, the details of which have not been uploaded by the suppliers in GSTR-1, cannot exceed
20% of the eligible credit available in respect of invoices or debit notes the details of which have been
uploaded by the suppliers in GSTR-1.
With effect from 01.01.2020, Notification No. 75/2019 CT dated 26.12.2019 has amended
the said sub-rule to reduce the percentage of ITC that can be availed on invoices not
uploaded by the suppliers in their GSTR-1s from 20% to 10%.
Crux: ITC that can be availed on invoices not uploaded by the suppliers in their GSTR-1
reduced from 20% to 10% of the eligible credit available in respect of invoices or debit notes
the details of which have been uploaded by the suppliers in GSTR-1.
Restriction in availment of input tax credit in terms of sub-rule (4) of rule 36 of CGST Rules,
2017 [Circular 123/42/2019– GST dated 11.11.19] – updated
Various issues relating to implementation of the sub-rule 36(4) have been examined and the clarification
on each of these points is as under: -
Issue 1: What are the invoices/ debit notes on which the restriction under rule 36(4) of the
CGST Rules shall apply?
Clarification: The restriction of availment of ITC is imposed only in respect of those invoices/ debit notes,
details of which are required to be uploaded by the suppliers under sub-section (1) of section 37 and
which have not been uploaded.
Therefore, taxpayers may avail full ITC in respect of IGST paid on import, documents issued under RCM,
credit received from ISD etc. which are outside the ambit of sub-section (1) of section 37, provided that
eligibility conditions for availment of ITC are met in respect of the same.
The restriction of 36(4) will be applicable only on the invoices / debit notes on which credit is availed
after 09.10.2019.
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Crux: The restriction of availment of ITC is imposed only in respect of those invoices/ debit
notes, details of which are required to be uploaded by the suppliers u/s 37(1),
Taxpayers may avail full ITC in respect of
- IGST paid on import,
- documents issued under RCM,
- credit received from ISD etc.
- which are outside the ambit of section 37(1).
Issue 2: Whether the said restriction is to be calculated supplier wise or on consolidated basis?
Clarification: The restriction imposed is not supplier wise. The credit available under rule 36(4) is linked
to total eligible credit from all suppliers against all supplies whose details have been uploaded by the
suppliers.
Further, the calculation would be based on only those invoices which are otherwise eligible for ITC.
Accordingly, those invoices on which ITC is not available under any of the provision say u/s 17(5) would
not be considered for calculating 10% of the eligible credit available.
Crux: The Restriction is to be calculated on consolidated basis and not supplier wise.
Issue 3: FORM GSTR-2A being a dynamic document, what would be the amount of input tax
credit that is admissible to the taxpayers for a particular tax period in respect of invoices /
debit notes whose details have not been uploaded by the suppliers?
Clarification: The amount of input tax credit in respect of the invoices / debit notes whose details have
not been uploaded by the suppliers shall not exceed 10% of the eligible input tax credit available to
the recipient in respect of invoices or debit notes the details of which have been uploaded by the suppliers
under section 37(1) as on the due date of filing of the returns in FORM GSTR-1 of the suppliers for the
said tax period. The taxpayer may have to ascertain the same from his auto populated FORM GSTR 2A
as available on the due date of filing of FORM GSTR-1 under section 37(1).
Crux: The taxpayer may have to ascertain the amount admissible from his auto populated
GSTR 2A as available on the due date of filing of FORM GSTR-1 u/s 37(1).
Issue 4: How much ITC a registered tax payer can avail in his FORM GSTR-3B in a month in
case the details of some of the invoices have not been uploaded by the suppliers under section
37(1).
Clarification: Sub-rule (4) of rule 36 prescribes that the ITC to be availed by a registered person in
respect of invoices or debit notes, the details of which have not been uploaded by the suppliers under
section 37(1), shall not exceed 10% of the eligible credit available in respect of invoices or debit notes
the details of which have been uploaded by the suppliers under section 37(1).
The eligible ITC that can be availed is explained by way of illustrations, in a tabulated form,
below.
In the illustrations, say a taxpayer “R” receives 100 invoices (for inward supply of goods or
services) involving ITC of Rs. 10 lakhs, from various suppliers during the month of Oct, 2019
and has to claim ITC in his FORM GSTR-3B of October, to be filed by 20th Nov, 2019.
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Case Details of suppliers’ invoices for 10% of eligible Eligible ITC to be taken in GSTR
which recipient is eligible to take credit where 3B to be filed by 20th
ITC invoices are November.
uploaded
1 Suppliers have furnished in GSTR 1 Rs. 60,000 Rs. 6,00,000 (i.e. amount of
80 invoices involving ITC of Rs 6 eligible ITC available, as per details
lakhs as on the due date of furnishing uploaded by the
of details of outwards supplies by the suppliers) + Rs.60,000 (i.e. 10%
suppliers. of amount of eligible ITC available,
as per the details uploaded by the
suppliers) = Rs. 6,60,000/-
2 Suppliers have furnished in GSTR 1 Rs. 70,000 Rs 7,00,000 + Rs 70,000 = Rs.
80 invoices involving ITC of Rs 7 7,70,000.
lakhs as on the due date of furnishing
of details of outwards supplies by the
suppliers.
3 Suppliers have furnished in GSTR 1 Rs. 95,000 Rs 9,50,000 + Rs 50,000 = Rs.
75 invoices involving ITC of Rs 9.5 10,00,000.
lakhs as on the due date of furnishing The additional amount of ITC
of details of outwards supplies by the availed shall be limited, to ensure
suppliers. that the total ITC availed does not
exceed the total eligible ITC.
Issue 5: When can balance ITC be claimed in case availment of ITC is restricted as per the
provisions of rule 36(4)?
Clarification: The balance ITC may be claimed by the taxpayer in any of the succeeding months provided
details of requisite invoices are uploaded by the suppliers. He can claim proportionate ITC as and when
details of some invoices are uploaded by the suppliers provided that credit on invoices, the details of
which are not uploaded (under section 37(1)) remains under 10 per cent of the eligible input tax credit,
the details of which are uploaded by the suppliers.
Full ITC of balance amount may be availed, in present illustration by “R”, in case total ITC pertaining to
invoices the details of which have been uploaded reaches Rs. 9,09,091 lakhs (Rs 10 lakhs /1.10). In
other words, taxpayer may avail full ITC in respect of a tax period, as and when the invoices are
uploaded by the suppliers to the extent Eligible ITC/ 1.1. The same is explained for Case No. 1 and 2 of
the illustrations provided at Sl. No. 4 above as under:
Case Particulars
1 “R” may avail balance ITC of Rs. 3.4 lakhs in case suppliers upload details of some of the invoices
for the tax period involving ITC of Rs. 3,09,091 out of invoices involving ITC of Rs. 4 lakhs details
of which had not been uploaded by the suppliers. [Rs. 6 lakhs + Rs. 3,09,091 = Rs. 9,09,091]
2 “R” may avail balance ITC of Rs. 2.3 lakhs in case suppliers upload details of some of the invoices
involving ITC of Rs. 2,09,091 lakhs out of outstanding invoices involving Rs. 3 lakhs. [Rs. 7 lakhs
+ Rs. 2,09,091 = Rs. 9,09,091]
Crux: The balance ITC may be claimed by the taxpayer in any of the succeeding months,
when the details of requisite invoices are uploaded by the suppliers.
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Rule 43: Manner of determination of ITC in respect of capital goods & reversal thereof in
certain cases – Earlier errors rectified
(1) Subject to the depreciation not claimed by RP, the ITC in respect of CGs,
- being partly used for business purposes and partly other purposes, or
- partly used for Non-exempt supplies (TS incl. ZRS) & partly for effecting exempt
supplies,
shall be attributed to business purpose/for effecting taxable supplies in the following
manner:
(a) ITC of CGs Exclusively for non-business purposes/ for effecting exempt supplies
- shall be indicated in FORM GSTR-2 and FORM GSTR-3B and
- ITC shall not be credited to his electronic credit ledger;
(b) ITC of CGS used exclusively for effecting Non-exempt supplies (TS incl. ZRS)
- shall be indicated in FORM GSTR-2 and FORM GSTR-3B and
- ITC shall be credited to the electronic credit ledger;
12
(c) ITC of CGs not covered above (common credit) denoted as A, A
- being the amount of tax as reflected on the invoice,
- shall be credited to the e-credit ledger and
- the validity of the useful life of such CGs shall be taken as extend upto 5 years
from the date of the invoice for such goods
Provided that where any CGS earlier covered under clause (a) is subsequently
covered under this clause, Tie
- input tax in respect of such capital goods denoted as “A‟ shall be
credited to the electronic credit ledger subject to the condition that
- the ineligible credit attributable to the period during which such CGs were
covered by clause (a), denoted as “Tie‟, shall be calculated at the rate of
5% for every quarter or part thereof and added to the output tax liability
of the tax period in which such credit is claimed:
Provided further that

the amount “Tie‟ shall be computed separately for ITC of central tax, State
tax, Union territory tax and integrated tax and declared in FORM GSTR-3B
Explanation. - An item of capital goods declared under clause (a) on its receipt shall
not attract the provisions of section 18(4), if it is subsequently covered under this
clause.
(d)13 The aggregate of the amounts of 'A' credited to the E-credit ledger under (c), in 'Tc'
respect of common capital goods whose useful life remains during the tax
period, to be denoted as “Tc‟, shall be the common credit in respect of capital
goods for a tax period:
Proviso:
where any capital goods earlier covered under clause (b) are subsequently
covered under clause (c), the ITC claimed in respect of such capital good(s)
shall be added to arrive at the aggregate value 'Tc';
(e) ITC attributable to a tax period on common CGs during their useful life, be denoted as 'Tm'
Tm = Tc÷60
12
Clause (c) substituted by the Central Goods and Services Tax (Third Amendment) Rules, 2020 w.e.f. 1-4-2020
13
Clause (d) substituted by the Central Goods and Services Tax (Third Amendment) Rules, 2020 w.e.f. 1-4-2020.
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Explanation. - For the removal of doubt, it is clarified that useful life of any
capital goods shall be considered as five years from the date of invoice and
the said formula shall be applicable during the useful life of the said capital
goods.
14
(f) ITC, at the beginning of a tax period, on all common CGs whose useful life Tr
remains during the tax period, be denoted as Tr, shall be the aggregate of
'Tm' for all such capital goods;
(g) Common credit attributable towards exempted supplies, be denoted as, 'Te'
Te = (E÷ F) × Tr
where,
'E' is the aggregate value of exempt supplies, made, during the tax period, and
'F' is the total turnover in the State of the registered person during the tax period:
Proviso:
Where, RP does not have any TO during the said tax period/ the information is not
available,
- 'E/F' shall be calculated by taking values of last tax period for which details are
available
- the aggregate value of exempt supplies & total TO shall exclude: CED, SED, CST &
VAT
Explanation. —For the purposes of this clause, it is hereby clarified that the aggregate
value of exempt supplies and the total turnover shall exclude the amount of any duty
or tax levied under entry 84 and entry 92A of List I of the Seventh Schedule to the
Constitution and entries 51 and 54 of List II of the said Schedule;
Explanation: The aggregate value of exempt supplies shall exclude: —

(a) 15Services having place of supply in Nepal or Bhutan, against payment in
Indian Rupees.
(b) Interest/discount income, except in case of a banking company/FI/NBFC, engaged
in supplying services by way of accepting deposits, extending loans or advances;
and
(c) the value of supply of services by way of transportation of goods by a vessel from
the customs station of clearance in India to a place outside India.
(h) the amount Te along with the applicable interest shall, during every tax period of the
useful life of the concerned CGs, be added to the output tax liability of the person
making such claim of credit.
(i) The amount Te shall be computed separately for input tax credit of CT/ST/UTT/IT &
declared in FORM GSTR-3B.
With effect from 01.04.2020, rule 43 of the CGST Rules which prescribes the manner of
determination of ITC in respect of capital goods and reversal thereof in certain cases has
been amended as under:
(i) Clause (c) of sub-rule (1) of rule 43 has been substituted.
(ii) Clause (d) of sub-rule (1) of rule 43 has been substituted.
(iii) An explanation has been inserted in clause (e) of sub-rule (1).
(iv) Clause (f) has been omitted.
Crux: Refer Amendment lecture.
14
Omitted by the Central Goods and Services Tax (Third Amendment) Rules, 2020 w.e.f. 1-4-2020.
15
Omitted by Central Goods and Services Tax (Amendment) Rules, 2019, w.e.f. 1-2-2019.
CA Ramesh Soni | +91 93536 19482 18

Clarification in respect of apportionment of ITC in cases of business reorganization under

section 18(3) of the CGST Act read with rule 41(1) of the CGST Rules
Section 18(3) of the CGST Act provides that where there is a change in the constitution of a registered
person on account of sale, merger, demerger, amalgamation, lease or transfer of the business with the
specific provisions for transfer of liabilities, the said registered person shall be allowed to transfer the
ITC which remains unutilized in his electronic credit ledger to such sold, merged, demerged,
amalgamated, leased or transferred business in such manner as may be prescribed.
Further, rule 41(1) of the CGST Rules requires a registered person to furnish the details of sale,
merger, demerger, amalgamation, lease or transfer, in FORM GST ITC-02 with a request for transfer of
unutilized ITC lying in his electronic credit ledger to the transferee. However, in case of demerger, the
ITC shall be apportioned in the ratio of the value of assets of the new units as specified in the demerger
scheme. Further, “value of assets” means the value of the entire assets of the business, whether or not
ITC has been availed thereon.
Clarification in respect of apportionment of input tax credit (ITC) in cases of business

reorganization under section 18 (3) of CGST Act read with rule 41(1) of CGST Rules [Circular
no.133 03/2020-GST dated 23.3.2020
Representations have been received from various taxpayers seeking clarification in respect of
apportionment and transfer of ITC in the event of merger, demerger, amalgamation or change in the
constitution/ownership of business. Certain doubts have been raised regarding the interpretation of
subsection (3) of section 18 of the CGST Act, 2017 and sub-rule (1) of rule 41of the CGST Rules, 2017
in the context of business reorganization.
Issue 1: In case of demerger, proviso to rule 41 (1) of the CGST Rules provides that the ITC
shall be apportioned in the ratio of the value of assets of the new units as specified in the
demerger scheme. However, it is not clear as to whether the value of assets of the new units
is to be considered at State level or at all-India level.
Clarification: Proviso to sub-rule (1) of rule 41 of the CGST Rules provides for apportionment of the
input tax credit in the ratio of the value of assets of the new units as specified in the demerger scheme.
Further, the explanation to sub-rule (1) of rule 41 of the CGST Rules states that “value of assets” means
the value of the entire assets of the business, whether or not input tax credit has been availed thereon.
Under the provisions of the CGST Act, a person/ company (having same PAN) is required to obtain
separate registration in different States and each such registration is considered a distinct person for the
purpose of the Act.
Accordingly, for the purpose of apportionment of ITC pursuant to a demerger under sub rule (1) of rule
41 of the CGST Rules, the value of assets of the new units is to be taken at the State level (at the level
of distinct person) and not at the all-India level.
Illustration: A company XYZ is registered in two States of M.P. and U.P. Its total value of assets is worth
Rs. 100 crores, while its assets in State of M.P. and U.P are Rs 60 crore and Rs 40 crore respectively. It
demerges a part of its business to company ABC. As a part of such demerger, assets of XYZ amounting
to Rs 30 Crore are transferred to company ABC in State of M.P, while assets amounting to Rs 10 crore
only are transferred to ABC in State of U.P. (Total assets amounting to Rs 40 crore at all-India level are
transferred from XYZ to ABC). The unutilized ITC of XYZ in State of M.P. shall be transferred to ABC on
CA Ramesh Soni | +91 93536 19482 19

the basis of ratio of value of assets in State of M.P., i.e. 30/60 = 0.5 and not on the basis of all-India
ratio of value of assets, i.e. 40/100=0.4. Similarly, unutilized ITC of XYZ in State of U.P. will be transferred
to ABC in ratio of value of assets in State of U.P. i.e. 10/40 = 0.25.
Crux: For the purpose of apportionment of ITC pursuant to a demerger the value of assets of
the new units is to be taken at the State level (i.e. at the level of distinct person) and not at
the all-India level.
Issue 2: Is the transferor required to file FORM GST ITC – 02 in all States where it is registered?
Clarification: No. The transferor is required to file FORM GST ITC-02 only in those States where both
transferor and transferee are registered.
Crux: The transferor is required to file FORM GST ITC-02 only in those States where both
transferor and transferee are registered.
Issue 3: The proviso to rule 41 (1) of the CGST Rules explicitly mentions ‘demerger’. Other
forms of business reorganization where part of business is hived off or business in transferred
as a going concern etc. have not been covered in the said rule. Wherever business
reorganization results in partial transfer of business assets along with liabilities, whether the
proviso to rule 41(1) of the CGST Rules, 2017 shall be applicable to calculate the amount of
transferable ITC?
Clarification: Yes, the formula for apportionment of ITC, as prescribed under proviso to sub-rule (1) of
rule 41 of the CGST Rules, shall be applicable for all forms of business re-organization that results in
partial transfer of business assets along with liabilities.
Crux: The formula for apportionment of ITC, shall be applicable for all forms of business re-
organization that results in partial transfer of business assets along with liabilities.
Issue 4: Whether the ratio of value of assets, as prescribed under proviso to rule 41 (1) of the
CGST Rules, shall be applied in respect of each of the heads of input tax credit viz. CGST/
SGST/ IGST/ Cess?
Clarification: No, the ratio of value of assets, as prescribed under proviso to sub-rule (1) of rule 41 of
the CGST Rules, shall be applied to the total amount of unutilized input tax credit (ITC) of the transferor
i.e. sum of CGST, SGST/UTGST and IGST credit. The said formula need not be applied separately in
respect of each heads of ITC (CGST/SGST/IGST). Further, the said formula shall also be applicable for
apportionment of Cess between the transferor and transferee.
Illustration: The ITC balances of transferor X in the State of Maharashtra under CGST, SGST and IGST
heads are 5 lakhs, 5 lakhs and 10 lakhs respectively. Pursuant to a scheme of demerger, X transfers 60%
of its assets to transferee B. Accordingly, the amount of ITC to be transferred from A to B shall be 60%
of 20 lakh (total sum of CGST, SGST and IGST credit) i.e. 12 lakhs.
Crux:
• The ratio shall be applied to the total amount of unutilized ITC of the transferor i.e. sum
of CGST, SGST/UTGST and IGST credit and not w.r.t. each head.
• The said formula shall also be applicable for apportionment of Cess.
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Issue 5: How to determine the amount of ITC that is to be transferred to the transferee under
each tax head (IGST/CGST/SGST) while filing of FORM GST ITC–02 by the transferor?
Clarification: The total amount of ITC to be transferred to the transferee (i.e. sum of CGST, SGST/UTGST
and IGST credit) should not exceed the amount of ITC to be transferred, as determined under sub-rule
(1) of rule 41 of the CGST Rules [refer 3 (c) (i) above]. However, the transferor shall be at liberty to
determine the amount to be transferred under each tax head (IGST, CGST, SGST/UTGST) within this
total amount, subject to the ITC balance available with the transferor under the concerned tax head. This
is shown in the illustration below:
State Asset Tax ITC balance of Total amount of ITC balance
Ratio of Heads Transferor (pre ITC transferred of Transferor (post
Transferee apportionment) to the apportionment) after
as on the date of Transferee filing of FORM GST
filing FORM GST under FORM GST ITC–02) [Col (4) –
ITC–02) ITC 02 Col (5)]
Delhi 70% CGST 10,00,000 10,00,000 0
SGST 10,00,000 10,00,000 0
IGST 30,00,000 15,00,000 15,00,000
Total 50,00,000 35,00,000 15,00,000
Haryana 40% CGST 25,00,000 3,00,000 22,00,000
SGST 25,00,000 5,00,000 20,00,000
IGST 20,00,000 20,00,000 0
Total 70,00,000 28,00,000 42,00,000
Crux: The transferor shall be at liberty to determine the amount to be transferred under each
tax head (IGST, CGST, SGST/UTGST) within the total overall limit.
Issue 6: In order to calculate the amount of transferable ITC, the apportionment formula under
proviso to rule 41(1) of the CGST Rules has to be applied to the unutilized ITC balance of the
transferor. However, it is not clear as to which date shall be relevant to calculate the amount
of unutilized ITC balance of transferor.
Clarification: According to sub-section (3) of section 18 of the CGST Act, “Where there is a change in
the constitution of a registered person on account of sale, merger, demerger, amalgamation, lease or
transfer of the business with the specific provisions for transfer of liabilities, the said registered person
shall be allowed to transfer the input tax credit which remains unutilized in his electronic credit ledger to
such sold, merged, demerged, amalgamated, leased or transferred business in such manner as may be
prescribed.” Further, sub-rule (1) of rule 41 of the CGST Rules prescribes that the registered person shall
file the details in FORM GST ITC-02 for transfer of unutilized input tax credit lying in his electronic credit
ledger to the transferee. A conjoint reading of sub-section (3) of section 18 of the CGST Act along with
sub-rule (1) of rule 41 of the CGST Rules would imply that the apportionment formula shall be applied
on the ITC balance of the transferor as available in electronic credit ledger on the date of filing of FORM
GST ITC – 02 by the transferor.
Crux: The apportionment formula shall be applied on the ITC balance of the transferor as
available in e-credit ledger on the date of filing of FORM GST ITC – 02.
CA Ramesh Soni | +91 93536 19482 21

Issue 7: Which date shall be relevant to calculate the ratio of value of assets, as prescribed in
the proviso to rule 41 (1) of the CGST Rules, 2017?
Clarification: According to section 232 (6) of the Companies Act, 2013, “The scheme under this section
shall clearly indicate an appointed date from which it shall be effective and the scheme shall be deemed
to be effective from such date and not at a date subsequent to the appointed date”. The said legal
provision appears to indicate that the “appointed date of demerger” is the date from which the scheme
for demerger comes into force and it is specified in the respective scheme of demerger. Therefore, for
the purpose of apportionment of ITC under rule sub-rule (1) of rule 41 of the CGST Rules, the ratio of
the value of assets should be taken as on the “appointed date of demerger”. In other words, for the
purpose of apportionment of ITC under rule 41(1) of the CGST Rules, while the ratio of the value of assets
should be taken as on the “appointed date of demerger”, the said ratio is to be applied on the ITC balance
of the transferor on the date of filing FORM GST ITC - 02 to calculate the amount to transferable ITC.
Crux: The ratio of the value of assets should be taken as on the “appointed date of
demerger”.
CA Ramesh Soni | +91 93536 19482 22

Payment of Tax
Section 49: Payment of Tax, Interest, Penalty and other amounts
Section 49(10): 16A registered person may, on the common portal, transfer any amount of tax,
interest, penalty, fee or any other amount available in the electronic cash ledger under this Act, to the
electronic cash ledger for integrated tax, central tax, State tax, Union territory tax or cess, in such form
and manner and subject to such conditions and restrictions as may be prescribed and such transfer
shall be deemed to be a refund from the electronic cash ledger under this Act.
Section 49(11): 17Where any amount has been transferred to the electronic cash ledger under this
Act, the same shall be deemed to be deposited in the said ledger as provided in sub-section (1).
Newly Inserted Rule 87(13):
Rule 87(13): 18A registered person may, on the common portal, transfer any amount of tax, interest,
penalty, fee or any other amount available in the electronic cash ledger under the Act to the electronic
cash ledger for integrated tax, central tax, State tax or Union territory tax or cess in FORM GST PMT-09.
Crux:
• Amount in any major/ minor head is now transferrable to any other major/ minor head.
• RP may now freely transfer tax, interest, penalty, fees, any other amount from e-cash
ledger (CGST) to e-cash ledger for IT/CT/ST/UTT/Cess.
• Use Form GST PMT 09 on the common portal for transferring &
• Such transfer from e-cash ledger shall be deemed to a refund from that e-cash ledger and
• Such transfer to e-cash ledger shall be deemed to be deposit in that e-cash ledger.
• Similar amendment in SGST/ UTGST/IGST act.
Rule 86: Refund of tax that has been paid wrongly or in excess by utilizing ITC
Rule 86(4A): Where a RP has claimed refund of any amount paid as tax wrongly paid or paid in excess
for which debit has been made from the electronic credit ledger, the said amount, if found admissible,
shall be re-credited to the electronic credit ledger by the proper officer by an order made in FORM GST
PMT-03.
Crux: Tax wrongly paid utilizing e-credit ledger, when refunded shall be re-credited to e
credit ledger. Refund shall be given in the same mode that was used for payment.
Rule 86A: Conditions of use of amount available in electronic credit ledger.
(1) Commissioner/officer authorised by him, has reason to believe that ITC available in e
credit ledger has been availed fraudulently/is ineligible
The Commissioner or an officer authorised by him in this behalf, not below the rank of an Assistant
Commissioner, having reasons to believe that credit of input tax available in the electronic credit
ledger has been fraudulently availed or is ineligible in as much as—
16
17
18
Inserted by the Central Goods and Services Tax (Fourth Amendment) Rules, 2019, w.e.f. 21-4-2020.
CA Ramesh Soni | +91 93536 19482 23

(a) the credit of input tax has been availed on the strength of tax invoices or debit notes or any other
document prescribed under rule 36—
(i) issued by a registered person who has been found non-existent or not to be conducting any
business from any place for which registration has been obtained; or
(ii) without receipt of goods or services or both; or
(b) the credit of input tax has been availed on the strength of tax invoices or debit notes or any other
document prescribed under rule 36 in respect of any supply, the tax charged in respect of which
has not been paid to the Government; or
(c) the registered person availing the credit of input tax has been found non-existent or not to be
conducting any business from any place for which registration has been obtained; or
(d) the registered person availing any credit of input tax is not in possession of a tax invoice or debit
note or any other document prescribed under rule 36,
may, for reasons to be recorded in writing, not allow debit of an amount equivalent to such credit in
electronic credit ledger for discharge of any liability under section 49 or for claim of any refund of
any unutilised amount.
(2) The Commissioner, or the officer authorised by him under sub-rule (1) may, upon being satisfied that
conditions for disallowing debit of electronic credit ledger as above, no longer exist, allow such debit.
(3) Such restriction shall cease to have effect after the expiry of a period of one year from the date of
imposing such restriction.
Crux: Blocking and Unblocking of ITC in E-credit ledger by Commissioner

Commissioner or officer has reason to believe that ITC available in e-credit ledger has been
availed fraudulently or is ineligible.
Reason for Blocking:
- Fake Supplier: ITC on the basis of document issued by Supplier who is non-existent/not
conducting any business from any declared POB.
- Bogus Invoice: ITC without receipt of goods/services/both.
- Non-payment of tax to govt: ITC on the basis of document, the tax charged in respect of
which has not been paid to the Government.
- Fake recipient: Recipient is non-existent/ not conducting any business from any declared
POB.
- ITC without documents: RP availing ITC is not in possession of a tax Invoice/Dr
note/Other document u/s 36.
• In the above scenario, commissioner may not allow debit of such amount to discharge
liability u/s 49 or claim refund.
Unblocking of ITC in E-credit ledger

• if Commissioner/officer authorised is satisfied that condition for disallowing no longer
exist, may allow such debit.
• Restriction shall cease to have effect after 1 year from the date of imposing such
restriction.
CA Ramesh Soni | +91 93536 19482 24

Returns
Section 44: Annual Return
(1)Every RP required to file Section 39 return shall file Annual Return (except CTP)
Every registered person, other than -
• an Input Service Distributor,
• a person paying tax under Section 51 or Section 52,
• a casual taxable person, and
• a non-resident taxable person,
shall furnish an annual return for every financial year
• electronically
• in such form and manner
• as may be prescribed (Form GSTR-9 for normal supplier & GSTR-9A for Composition supplier-
Rule 80)
• on or before the 31stday of December following the end of such financial year.
19
Provided that the Commissioner may, on the recommendations of the Council and for
reasons to be recorded in writing, by notification, extend the time limit for furnishing the
annual return for such class of registered persons as may be specified therein:
Provided further that any extension of time limit notified by the Commissioner of State tax or
the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.
Crux: Now commissioner empowered to extend the time limit for furnishing Annual return
i.e. GSTR 9/9A. Earlier the same was extended by issuing order using the power conferred
by section 172 i.e. Removal of difficulties order.
19
CA Ramesh Soni | +91 93536 19482 25

TDS & TCS
Section 52(4) & (5): Provision amended to Empower commissioner to extend the time limit
for furnishing the statement and Annual return
Section 52(4)
Every operator who collects the amount specified in sub-section (1) shall furnish a statement,
electronically, containing
- the details of outward supplies of goods or services or both effected through it, including the supplies
of goods or services or both returned through it,
- and the amount collected under sub-section (1) during a month, in such form and manner as may
be prescribed, within ten days after the end of such month. (GSTR 8 and Rule 67)
[Provided that the Commissioner may, for reasons to be recorded in writing, by notification,
20
extend the time limit for furnishing the statement for such class of registered persons as may
be specified therein:
the Commissioner of Union territory tax shall be deemed to be notified by the
Commissioner.]
Section 52(5)
Every operator who collects the amount specified in sub-section (1) shall furnish an annual statement,
electronically, containing
- the details of outward supplies of goods or services or both effected through it,
- including the supplies of goods or services or both returned through it, and
- the amount collected under the said sub-section during the financial year, in such form and manner
as may be prescribed, before the thirty first day of December following the end of such financial year.
[Provided that the Commissioner may, for reasons to be recorded in writing, by notification,
21
extend the time limit for furnishing the statement for such class of registered persons as may
be specified therein:
the Commissioner of Union territory tax shall be deemed to be notified by the
Commissioner.]
Crux: Now commissioner empowered to extend the time limit for furnishing the monthly
statement i.e. GSTR 8 and Annual return i.e. GSTR 9B. Earlier the same was extended by
issuing order using the power conferred by section 172 i.e. Removal of difficulties order.
20
21
CA Ramesh Soni | +91 93536 19482 26

Value of Supply
Rule 31A: Valuation of lottery – notification 3/2018 CT dated 23.01.2018
(1)Notwithstanding anything contained in the provisions of this Chapter, the value in respect
of supplies specified below shall be determined in the manner provided hereinafter.
(2) 22
The value of supply of lottery shall be deemed to be 100/128 of the face value of ticket
or of the price as notified in the Official Gazette by the Organising State, whichever is
higher.
Explanation: - For the purposes of this sub-rule, the expression "Organising State" has
the same meaning as assigned to it in clause (f) of sub-rule (1) of rule 2 of the Lotteries
(Regulation) Rules, 2010.
2(a) The value of supply of lottery run by State Governments shall be deemed to be 100/112 of the
face value of ticket or of the price as notified in the Official Gazette by the organising State,
whichever is higher.
(b) The value of supply of lottery authorised by State Governments shall be deemed to be 100/128
of the face value of ticket or of the price as notified in the Official Gazette by the organising State,
whichever is higher.
Explanation: For the purposes of this sub-rule, the expressions—
(a) "lottery run by State Governments" means a lottery not allowed to be sold in any State other
than the organizing State;
(b) "lottery authorised by State Governments" means a lottery which is authorised to be sold in
State(s) other than the organising State also; and
(c) "Organising State" has the same meaning as assigned to it in clause (f) of sub-rule (1) of rule 2
of the Lotteries (Regulation) Rules, 2010."
(3)
Supply Value
Supply of actionable claim in the form of chance to 100% of the face value of the bet or the
win in betting, gambling, horse racing in a race club amount paid into the totalisator
Crux: Rule 31A (2) now prescribes a single rate of tax on lottery i.e. 28% as compared to
earlier rates of 12% on lottery run and 28% on lottery authorized by state government.
Hence, Value of supply of lottery shall be:
- 100/128 X [FV or Price notified in official Gazette (whichever is higher)].
22
substituted by the Central Goods and Services Tax (Second Amendment) Rules, 2020, w.r.e.f. 1-3-2020.
CA Ramesh Soni | +91 93536 19482 27

Assessment
Standard Operating Procedure to be followed in case of non-filers of returns [Circular No.

129/48/2019 – GST dated 24.12.19]
Section 46 of the CGST Act read with rule 68 of the CGST Rules requires issuance of a notice to a
registered person who fails to furnish return under section 39 or section 44 or section 45 of the CGST
Act requiring him to furnish such return within 15 days. Further, section 62 of the CGST Act provides
for assessment of non-filers who fail to file return under section 39 or section 45 even after service of
notice under section 46. No separate notice is required to be issued for best judgment assessment
under section 62 if the return is not filed within 15 days of issuance of notice under section 46.
CBIC has issued the following guidelines to ensure uniformity in the implementation of the
provisions of law in relation to non-filers of returns:
(i) Preferably, a system generated message would be sent to all the registered persons 3 days before
the due date to nudge them about the filing of return by the due date.
(ii) Once the due date for furnishing return under section 39 is over, a system generated mail/
message would be sent to all the defaulters immediately after the due date to the effect that the
said registered person has not furnished his return for the said tax period; the said mail/ message
is to be sent to the authorized signatory as well as the proprietor/ partner/ director/ karta, etc.
(iii) After 5 days of due date of furnishing the return, notice under section 46 shall be issued
electronically to the defaulters requiring then to furnish return within 15 days.
(iv) If the return is not filed within 15 days of the said notice, the proper officer may proceed to assess
the tax liability of the said defaulter under section 62, to the best of his judgment taking into
account all the relevant material which is available or which he has gathered and would issue
assessment order. The proper officer would upload the summary of such order in the prescribed
form.
(v) For the purpose of assessment of tax liability under section 62, the proper officer may take into
account the following:
• Details of outward supplies available in GSTR-1
• Details of inward supplies auto-populated in GSTR-2A
• Information available from e-way bills
• Any other information available from any other source including inspection under section 71 of
the CGST Act
(vi) If the defaulter furnishes a valid return within 30 days of the service of assessment order under
section 62, the said assessment will be deemed to have been withdrawn.
(vii) If the said return remains unfurnished within the statutory period of 30 days from the service of
assessment order under section 62, the proper officer may initiate proceedings under section 78
and recovery under section 79 of the CGST Act.
Based on facts available, in some cases, the Commissioner may resort to provisional attachment to
protect revenue under section 83 of the CGST Act before issuance of assessment order u/s 62.
Further, proper officer would initiate action under section 29(2) of the CGST Act for cancellation of
registration in cases where the return has not been furnished for the period specified in section 29.
CA Ramesh Soni | +91 93536 19482 28

Crux: Standard operating procedure to be followed in case of non-filers of returns
1. Preferably, a system generated message to all RPs 3 days before the due date.
2. Immediately after due date: a system generated mail/ message would be sent to all the
defaulters, the said mail/message is to be sent to the authorized signatory as well as the
proprietor/partner/director/karta, etc.
3. 5 days after the due date, a notice in GSTR-3A requiring RP to furnish return in 15 days.
4. If the return is not filed, the PO may do Best Judgement assessment u/s 62 & issue order
in ASMT 13, and also upload summary in GST DRC 07.
5. For assessment, the PO may take into account: Details in GSTR-1, GSTR-2A, e-way bill
information, any other information available from any other source including inspection
u/s 71 of the CGST Act.
6. If the defaulter furnishes a valid return within 30 days of the service of assessment order
u/s 62, order will be deemed to have been withdrawn or else PO may initiate proceedings
under section 78 and recovery under section 79 of the CGST Act.
Note:
• In deserving cases, the Commissioner may resort to provisional attachment u/s 83 of the
CGST Act before issuance of FORM GST ASMT-13.
• Further, the PO would initiate action u/s 29(2) of the Act for cancellation of registration
in cases where the return has not been furnished for the period specified in section 29.
Appeals and Revision
Appointment of Revisional Authority under CGST Act, 2017.
The Central Board of Indirect Taxes and Customs hereby authorises -

(a) the Principal Commissioner or Commissioner of Central Tax for decisions or orders passed by the
Additional or Joint Commissioner of Central Tax; and
(b) the Additional or Joint Commissioner of Central Tax for decisions or orders passed by the Deputy
Commissioner or Assistant Commissioner or Superintendent of Central Tax,
as the Revisional Authority under section 108 of the said Act.
Crux:
Order Passed by Revisionary Authority
Additional or Joint Commissioner of Central The Principal Commissioner or
Tax Commissioner of Central Tax
Deputy Commissioner or Assistant The Additional or Joint Commissioner of
Commissioner or Superintendent of CT Central Tax
Removal of difficulties order no. 09/2019-Central Tax dated 03.12.2019
Section 112: Appeals to Appellate Tribunal [Extract]

(1) Person aggrieved may appeal within 3 months
Any person aggrieved by an order passed against him under section 107 or section 108 of this Act
or the SGST or UTGST act may appeal to the AT against such order within three months from the
date on which the order sought to be appealed against is communicated to the person preferring the
appeal.
(2) A.T may refuse appeal involving amount up to Rs 50,000
CA Ramesh Soni | +91 93536 19482 29

The Appellate Tribunal may, in its discretion, refuse to admit any such appeal where the tax or input
tax credit involved or the difference in tax or input tax credit involved or the amount of fine, fee or
penalty determined by such order, does not exceed fifty thousand rupees.
(3) Departmental appeal to AT within 6 months

The Commissioner may,
• on his own motion, or
• upon request from the Commissioner of State tax or Commissioner of Union territory tax,
call for and examine the record of any order passed by the Appellate Authority or the Revisional
Authority under this Act or the SGST/UTGST act for the purpose of satisfying himself as to the legality
or propriety of the said order and may, by order, direct any officer subordinate to him to apply to
the Appellate Tribunal within six months from the date on which the said order has been passed for
determination of such points arising out of the said order as may be specified by the Commissioner
in his order.
In exercise of the powers conferred by section 172 of the CGST Act, 2017, the Central
Government, on the recommendations of the Council, hereby makes the following Order, to
remove the difficulties, namely: –
Short title. – This Order may be called the Central Goods and Services Tax (Ninth Removal of
Difficulties) Order, 2019.
For the removal of difficulties, it is hereby clarified that for the purpose of calculating, -
(a) the “three months from the date on which the order sought to be appealed against is
communicated to the person preferring the appeal” in sub-section (1) of section 112, the start of
the three months period shall be considered to be the later of the following dates: -
(i) date of communication of order; or
(ii) the date on which the President or the State President, as the case may be, of the Appellate
Tribunal after its constitution under section 109, enters office;
(b) the “six months from the date on which the said order has been passed” in sub-section (3) of
section 112, the start of the six months period shall be considered to be the later of the following
dates: -
(i) date of communication of order; or
(ii) the date on which the President or the State President, as the case may be, of the Appellate
Tribunal after its constitution under section 109, enters office.
Crux:
Time limit to file appeal with AT shall be counted from
• Date of communication of order or
• Constitution of Appellate Tribunal
whichever is later.
CA Ramesh Soni | +91 93536 19482 30

Place of Supply
Place of supply for B2B Maintenance, repair or overhaul service [MRO services] to the
location of the recipient. [Notification No. 02/2020- Integrated Tax dated 26.03.20]
In order to prevent double taxation or non-taxation of supply of any service, section 13(13) of IGST
Act empowers the Government to notify any service for which the place of supply shall be the place of
effective use and enjoyment of service.
Services: Supply of maintenance, repair or overhaul service in respect of aircrafts, aircraft

engines and other aircraft components or parts supplied to a person for use in the course or
furtherance of business.
The place of supply of services shall be: the location of the recipient of service (LOR).
Crux: In case of supply of MRO services in respect of aircrafts, POS = LOR.
Location of Location of POS Remark

Supplier of Recipient of
MRO services MRO services
India India Section 12(2): Location of GST payable by supplier under
RP i.e. POS - India FCM.
India Outside India Old Provision Old Provision
(foreigner) Section 13(3)(a): Since POS is India, services
POS- Place of performance did not qualify for ZRS. Hence
i.e. POS – India GST was payable on such
services.
New Provision New Provision

Section 13(13): Services now eligible for ZRS
POS - LOR – Outside India benefit.
Outside India India Old Provision Old Provision
(foreigner) Section 13(3)(a): Since POS outside India,
POS - Place of Actual service not falling within
performance definition of Import of service,
i.e. POS – Outside India hence no GST payable in
India.
New Provision New Provision

Section 13(13): Import of Service, GST
POS - LOR – India payable under RCM by
recipient.
CA Ramesh Soni | +91 93536 19482 31

Refunds
Rule 89(4)(C): Definition of turnover of zero-rated supplies of goods amended
In the case of ZRS of g/s/b without payment of tax under bond/LUT in accordance with the provisions of
section 16(3) of the IGST act, refund of ITC shall be granted as per the following formula—
Refund Amount (maximum amount admissible)

= (Turnover of ZRS of goods + Turnover of ZRS of services) × Net ITC
Adjusted Total Turnover
Where:
(A) Refund amount means the maximum refund that is admissible;
(B) Net ITC: ITC on Input and Input services during relevant period other than ITC for which refund
claimed under 4A/4B/both.
(C) TO of ZRS of goods: the value of ZRS of goods made during the relevant period without payment
of tax under bond/LUT, 23or the value which is 1.5 times the value of like goods domestically
supplied by the same or, similarly placed, supplier, as declared by the supplier, whichever
is less, other than turnover of supplies in respect of which refund is claimed under sub-rule
(4A)/(4B)/both;
(D) TO of ZRD of services…...no amendment

(E) Adjusted Total Turnover …...no amendment
(F) Relevant period …...no amendment
Crux: The term ‘Turnover of zero-rated supply of goods’ used in the above formula has been
redefined to restrict the same to 1.5 times the value of like goods domestically supplied by
the same/similarly placed supplier/as declared by the supplier.
Hence now Value of ZRS of goods made under LUT/Bond shall be taken as:
• Actual Value as per Invoice
• 1.5 times the value of like goods domestically supplied by same/similarly placed supplier.
Illustration:
SN Value as per value of like goods 1.5 times the value of TO of ZRS of goods for
Invoice domestically supplied like goods purpose of refund
(a) (b) domestically supplied formula
(c) Lower of (a) or (c)
1 5,00,000 4,00,000 6,00,000 5,00,000
2 20,00,000 10,00,000 15,00,000 15,00,000
3 20,00,000 14,00,000 21,00,000 20,00,000
Rule 92(1A): Refund to be granted both in cash & credit, based on original mode of payment
Newly inserted sub-rule (1A) to rule 92 stipulates that the refund of tax shall now be made
proportionately, in cash and by recrediting the credit, based on original mode of payment. The amount
refundable in cash shall be paid by issuance of order in Form GST RFD-06 and the amount attributable
to credit as ITC shall be recredited in the electronic credit ledger by issuing Form GST PMT-03.
23
Clause (C) substituted by the Central Goods and Services Tax (Third Amendment) Rules, 2020 w.e.f 23-03-2020.
CA Ramesh Soni | +91 93536 19482 32

Rule 92(1A) provides as follows:
Where, upon examination of a refund application, the proper officer is satisfied that a refund under
section 54(5) of the CGST Act is due and payable to the applicant:
(i) the proper officer shall make a refund order in Form GST RFD-06 sanctioning the amount of refund
to be paid, in cash, proportionate to the amount debited in cash against the total amount paid for
discharging tax liability for the relevant period, mentioning therein the amount adjusted against
any outstanding demand under the Act or under any existing law and the balance amount
refundable and
(ii) for the remaining amount which has been debited from the electronic credit ledger for making
payment of such tax, the proper officer shall issue Form GST PMT-03 re-crediting the said amount
as ITC in electronic credit ledger.
The above provision shall not apply to the refund of tax paid on zero-rated supplies or deemed export.
Section 92(4):
Where the proper officer is satisfied that the amount refundable under sub-rule (1) 24or sub-rule (1A)
or sub-rule (2) is payable to the applicant under sub-section (8) of section 54, he shall make an order in
FORM GST RFD-06 and issue a payment order in FORM GST RFD-05 for the amount of refund and the
same shall be electronically credited to any of the bank accounts of the applicant mentioned in his
registration particulars and as specified in the application for refund on the basis of a consolidated
payment advice.
Section 92(5):
Where the proper officer is satisfied that the amount refundable under sub-rule (1) 25or sub-rule (1A)
or sub-rule (2) is not payable to the applicant under sub-section (8) of section 54, he shall make an order
in FORM GST RFD-06 and issue a payment order in FORM GST RFD-05, for the amount of refund to be
credited to the Consumer Welfare Fund.
Crux:
• Refund to be granted both in cash and credit, based on original mode of payment.
• Proper officer shall make a refund order in Form GST RFD-06 sanctioning the amount of
refund to be paid, in cash, proportionate to the amount debited in cash against the total
amount paid for discharging tax liability for the relevant period, and
• for the balance the PO shall issue Form GST PMT-03 re-crediting the said amount as ITC
in electronic credit ledger.
Rule 96: Refund of integrated tax paid on goods or services exported out of India
Explanation to rule 96(10)(b) inserted

Rule 96(10)(b) lays down an embargo on the refund claim by a person seeking refund of IGST paid on
export of goods/ services. The restriction is that such person should not have availed the benefit of
exemption from IGST and Compensation Cess, for goods imported by EOU under Notification No.
78/2017 Cus dated 13.10.2017 or for goods imported under Advance Authorisation (AA)/ EPCG under
Notification No. 79/2017 Cus dated 13.10.2017.
An explanation has been inserted to this clause which clarifies that the benefit of the
notifications mentioned therein shall not be considered to have been availed only where the
registered person has paid IGST and Compensation Cess on inputs and has availed
exemption of only Basic Customs Duty (BCD) under the said notifications.
24
Inserted the Central Goods and Services Tax (Third Amendment) Rules, 2020 w.e.f. 23-03-2020
25
Inserted the Central Goods and Services Tax (Third Amendment) Rules, 2020 w.e.f. 23-03-2020
CA Ramesh Soni | +91 93536 19482 33

26
Rule 96B: Recovery of refund of unutilised input tax credit or integrated tax paid on export
of goods where export proceeds not realised.
(1) Where any refund of unutilised input tax credit on account of export of goods or of integrated tax
paid on export of goods has been paid to an applicant but the sale proceeds in respect of such
export goods have not been realised, in full or in part, in India within the period allowed under the
FEMA, 1999, including any extension of such period, the person to whom the refund has been made
shall deposit the amount so refunded, to the extent of non-realisation of sale proceeds, along with
applicable interest within thirty days of the expiry of the said period or, as the case may be, the
extended period, failing which the amount refunded shall be recovered in accordance with the
provisions of section 73 or 74 of the Act, as the case may be, as is applicable for recovery of
erroneous refund, along with interest under section 50:
Provided that where sale proceeds, or any part thereof, in respect of such export goods are not
realised by the applicant within the period allowed under the Foreign Exchange Management Act,
1999 (42 of 1999), but the Reserve Bank of India writes off the requirement of realisation of sale
proceeds on merits, the refund paid to the applicant shall not be recovered.
(2) Where the sale proceeds are realised by the applicant, in full or part, after the amount of refund
has been recovered from him under sub-rule (1) and the applicant produces evidence about such
realisation within a period of three months from the date of realisation of sale proceeds, the
amount so recovered shall be refunded by the proper officer, to the applicant to the extent of
realisation of sale proceeds, provided the sale proceeds have been realised within such extended
period as permitted by the Reserve Bank of India.
Crux:
Where
• any refund of unutilised ITC on account of export of goods or IGST paid on export of
goods has been paid to an applicant
• but the sale proceeds in respect of such export goods have not been realised, in full/in
part, in India within the period allowed under the FEMA, 1999, including any extension
• the person to whom the refund has been made shall deposit the amount so refunded, to
the extent of non-realisation of sale proceeds, along with applicable interest (from date
of refund till date of deposit) within 30 days of the expiry of the said period or, as the
case may be, the extended period,
• failing which the amount refunded shall be recovered.
• No recovery if RBI writes off the requirement of realisation of sale proceeds on merits.
• If sales proceeds realised after recovery and the applicant produces evidence about such
realisation within a period of three months from the date of realisation of sale proceeds,
the amount so recovered shall be refunded to the applicant by the proper officer.
26
Inserted by the Central Goods and Services Tax (Third Amendment) Rules, 2020, w.e.f. 23-03-2020.
CA Ramesh Soni | +91 93536 19482 34

Determination of refundable amount in case of refund of unutilised ITC on account of
(i) exports without payment of tax,
(ii) supplies made to SEZ Unit/SEZ Developer without payment of tax or
(iii) accumulation due to inverted tax structure, clarified
In case of refund of unutilized input tax credit (ITC) on account of the above 3 cases, the
common portal calculates the refundable amount as the least of the following amounts:
a) The maximum refund amount as per the formula in rule 89(4) or rule 89(5) of the CGST Rules
[formula is applied on the consolidated amount of ITC, i.e. Central tax + State tax/Union Territory
tax +Integrated tax];
b) The balance in the electronic credit ledger of the applicant at the end of the tax period for which the
refund claim is being filed after the return in FORM GSTR-3B for the said period has been filed; and
c) The balance in the electronic credit ledger of the applicant at the time of filing the refund
application.
After calculating the least of the three amounts, as detailed above, the equivalent amount is
to be debited from the electronic credit ledger of the applicant in the following order:
a) Integrated tax, to the extent of balance available;
b) Central tax and State tax/Union Territory tax, equally to the extent of balance available and in the
event of a shortfall in the balance available in a particular electronic credit ledger (say, Central tax),
the differential amount is to be debited from the other electronic credit ledger (i.e., State tax/Union
Territory tax, in this case).
The order of debit described above, however, is not presently available on the common portal. Till the
time such facility is made available on the common portal, the taxpayers are advised to follow the order
as explained above for all refund applications. However, for applications where this order is not adhered
to by the applicant, no adverse view may be taken by the tax authorities. The above system validations
are being clarified so that there is no ambiguity in relation to the process through which an application
in FORM GST RFD-01 is generated.
Crux:
Refundable amount as the least of the following amounts:
(a) As per formula in rule 89(4)/ 89(5)
(b) Balance in E. credit ledger at the end of the tax period for which the refund claim is
being filed after the return in FORM GSTR-3B.
(c) The balance in the E credit ledger of the applicant at the time of filing refund application.
After calculation of the above least amount, debit in E. credit ledger in following order:
1. IGST use fully,
2. CGST and SGST/UTGST equally to the extent of balance
3. In the event of a shortfall in the balance available in a particular e credit ledger (say, CT),
the differential amount is to be debited from the other electronic credit ledger (ST/UTT).
Illustration:
Department sanctioned an amount of Rs 30000 as Refund, Following is the ITC balance, how
should the amount be debited in the E-credit ledger in the following independent cases:
Case 1 Case 2 Case 3
Balances Amount Balances Amount Balances Amount
IGST 30000 IGST 20000 IGST 10000
CGST 10000 CGST 10000 CGST 5000
SGST 10000 SGST 10000 SGST 20000
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Solution:
Case 1:
Balances Amount Adjustment of Refund Balance
IGST 30,000 30,000 0
CGST 10,000 0 10,000
SGST 10,000 0 10,000
Case 2:
IGST 20,000 20,000 0
CGST 10,000 5,000 5,000
SGST 10,000 5,000 5,000
Case 3:
IGST 10,000 10,000 0
CGST 5,000 5,000 0
SGST 20,000 15,000 [5,000 + 10,000] 5,000
Bunching of refund claims across financial years permitted
It has been clarified that while filing the refund claim, an applicant may, at his option, file a refund
claim for a tax period or by clubbing successive tax periods. Earlier, there was a restriction on bunching
of refund claims across financial years; now the said restriction has also been relaxed.
For instance, a RP opting to file Form GSTR-1 on quarterly basis can apply for refund on a quarterly
basis or clubbing successive quarters and these quarters may spread across different financial years.
Thus, he can file refund claim for quarters: Jan-Mar, Apr-Jun and July-Sep, while filing the refund claim.
Crux: Restriction on bunching of refund claims covering different tax periods across different
financial years now has been relaxed.
Refund of accumulated input tax credit (ITC) on account of reduction in GST Rate [Circular
No.135/05/2020 – GST dated 31.03.20]
Various representations have been received seeking clarification on some of the issues relating to GST
refunds. In order to clarify these issues and to ensure uniformity in the implementation of the provisions
of law in this regard across the field formations, the Board, in exercise of its powers conferred by section
168 (1) of the CGST Act, 2017, hereby clarifies the issues detailed hereunder:
Issue: It has been brought to the notice of the Board that some of the applicants are seeking refund of
unutilized ITC on account of inverted duty structure where the inversion is due to change in the GST rate
on the same goods. This can be explained through an illustration. An applicant trading in goods has
purchased, say goods “X” attracting 18% GST. However, subsequently, the rate of GST on “X” has been
reduced to, say 12%. It is being claimed that accumulation of ITC in such a case is also covered as
accumulation on account of inverted duty structure and such applicants have sought refund of
accumulated ITC under clause (ii) of sub-section (3) of section 54 of the CGST Act.
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Clarification: It may be noted that refund of accumulated ITC in terms clause (ii) of sub-section (3) of
section 54 of the CGST Act is available where the credit has accumulated on account of rate of tax on
inputs being higher than the rate of tax on output supplies. It is noteworthy that, the input and output
being the same in such cases, though attracting different tax rates at different points in time, do not
get covered under the provisions of clause (ii) of sub-section (3) of section 54 of the CGST Act. It is
hereby clarified that refund of accumulated ITC under clause (ii) of sub-section (3) of section 54 of the
CGST Act would not be applicable in cases where the input and the output supplies are the same.
Crux: The input & output being the same in such cases, though attracting different tax rates
at different points in time, do not get covered under the provisions of section 54(3)(ii) of the
CGST Act. No refund of accumulated ITC in such cases.
Refund of ITC u/s 54(3) restricted to the extent of credit reflected in Form GSTR-2A
In wake of insertion of sub-rule (4) to rule 36 of the CGST Rules, 2017, it has been decided that the
refund of accumulated ITC shall be restricted to the ITC as per those invoices, the details of which are
uploaded by the supplier in Form GSTR-1 and are reflected in the Form GSTR-2A of the applicant.
Crux: Refund of matched ITC only.
Clarification in respect of certain challenges faced by the registered persons in

implementation of provisions of GST Laws [Circular No. 137/07/2020-GST dt. 13.04.20]
Issue 1: An advance is received by a supplier for a Service contract which subsequently got
cancelled. The supplier has issued the invoice before supply of service and paid the GST
thereon. Whether he can claim refund of tax paid or is he required to adjust his tax liability
in his returns?
Clarification: In case GST is paid by the supplier on advances received for a future event which got
cancelled subsequently and for which invoice is issued before supply of service, the supplier is required
to issue a “credit note” in terms of section 34 of the CGST Act. He shall declare the details of such
credit notes in the return for the month during which such credit note has been issued. The tax liability
shall be adjusted in the return subject to conditions of section 34 of the CGST Act. There is no need to
file a separate refund claim.
However, in cases where there is no output liability against which a credit note can be adjusted,
registered persons may proceed to file a claim under “Excess payment of tax, if any” through FORM
GST RFD-01.
Crux:
• Issue a credit note as per section 34, declare in the month of issue & tax liability shall be
adjusted. No need to file a separate refund claim.
• However, if no output liability, RP may file refund application – GST RFD 01.
Issue 2: An advance is received by a supplier for a Service contract which got cancelled
subsequently. The supplier has issued receipt voucher and paid the GST on such advance
received. Whether he can claim refund of tax paid on advance or he is required to adjust his
tax liability in his returns?
Clarification: In case GST is paid by the supplier on advances received for an event which got
cancelled subsequently and for which no invoice has been issued in terms of section 31 (2) of the CGST
CA Ramesh Soni | +91 93536 19482 37

Act, he is required to issue a “refund voucher” in terms of section 31 (3) (e) of the CGST Act read
with rule 51 of the CGST Rules.
The taxpayer can apply for refund of GST paid on such advances by filing FORM GST RFD-01 under the
category “Refund of excess payment of tax”
Crux:
• Issue a “refund voucher” in terms of section 31(3)(e) of the CGST Act
• RP may file refund application – GST RFD 01 for refund of GST paid on such advances.
Issue 3: Goods supplied by a supplier under cover of a tax invoice are returned by the
recipient. Whether he can claim refund of tax paid or is he required to adjust his tax liability
in his returns?
Clarification: In such a case where the goods supplied by a supplier are returned by the recipient and
where tax invoice had been issued, the supplier is required to issue a “credit note” in terms of
section 34. He shall declare the details of such credit notes in the return for the month during which
such credit note has been issued. The tax liability shall be adjusted in the return subject to conditions of
section 34 of CGST Act. There is no need to file a separate refund claim in such a case.
However, in cases where there is no output liability against which a credit note can be adjusted,
registered persons may proceed to file a claim under “Excess payment of tax, if any” through FORM
GST RFD-01.
Crux:
• Issue a credit note as per section 34, declare in the month of issue & tax liability shall be
adjusted. No need to file a separate refund claim.
• However, if no output liability, RP may file refund application – GST RFD 01.
Miscellaneous provisions
Section 148: Special procedure for certain processes

Special procedure for corporate debtors undergoing the corporate insolvency resolution
process under the Insolvency and Bankruptcy Code, 2016
As per Insolvency Bankruptcy Code (IBC), 2016 once an entity defaults certain threshold amount,
Corporate Insolvency Resolution Process (CIRP) gets triggered and the management of such entity
(Corporate Debtor) and its assets vest with an interim resolution professional (IRP) or resolution
professional (RP). The IRP/RP continues to run the business and operations of the said entity as a going
concern and is responsible for compliance with all the laws till the insolvency proceeding is over and an
order is passed by the National Company Law Tribunal (NCLT). The definitions of the terms, corporate
debtor, CIRP, IRP and RP can be referred from IBC, 2016.
The Government has prescribed special procedure under section 148 of the CGST Act for the corporate
debtors who are undergoing CIRP under the provisions of IBC and the management of whose affairs are
being undertaken by IRP/RP.
The corporate debtor who is undergoing CIRP is to be treated as a distinct person of the corporate
debtor and shall be liable to take a new registration in each State or Union territory where the
corporate debtor was registered earlier, within thirty days of the appointment of the IRP/RP. The
IRP/RP will be liable to furnish returns, make payment of tax and comply with all the provisions of the
GST law during CIRP period.
CA Ramesh Soni | +91 93536 19482 38

Crux:
• The corporate debtor who is undergoing CIRP is to be treated as a distinct person of the
corporate debtor and
• shall be liable to take a new registration in each State/UT where the corporate debtor
was registered earlier, within 30 days of the appointment of the IRP/RP.
• The IRP/RP will be liable to furnish returns, make payment of tax and comply with all the
provisions of the GST law during CIRP period.
Section 168: Power to issue instructions or directions
(1) The Board may, if it considers it necessary or expedient so to do for the purpose of uniformity in the
implementation of this Act, issue such orders, instructions or directions to the central tax officers as
it may deem fit, and thereupon all such officers and all other persons employed in the implementation
of this Act shall observe and follow such orders, instructions or directions.
The Commissioner specified in clause (91) of section 2, sub-section (3) of section 5, clause (b)of sub-
section (9) of section 25, sub-sections (3)and (4)of section 35, sub-section (1) of section 37, sub-
section (2) of section 38, sub-section (6) of section 39, 27sub-section (1) of section 44, sub-
sections (4) and (5) of section 52, sub-section (1) of section 151, clause (l) of sub-section (3)of
section 158 and section 167 shall mean a Commissioner or Joint Secretary posted in the Board and
such Commissioner or Joint Secretary shall exercise the powers specified in the said sections with the
approval of the Board.
Crux: Amendment made in Section 44 & 52 seeks to empower the commissioner to extend
the due date for furnishing the Annual return (GSTR 9/9A) and monthly statement (GSTR 8)
by ECO liable to collect TCS, consequently section 168 is amended so as to specify that w.r.t.
section 44(1) & Section 52(4) & (5), commissioner or Joint Secretary posted in the CBIC
shall exercise the powers specified in the said sections with the approval of the CBIC.
Section 168A: Power of Government to extend time limit in special circumstances (New
section inserted)
The CG has issued Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 on
31.03.2020 which empowers it to extend the due dates for compliances under various tax laws. The
Ordinance has inserted a new section 168A in the CGST Act.
(1) Notwithstanding anything contained in this Act, the Government may, on the
recommendations of the Council, by notification, extend the time limit specified in, or prescribed or
notified under, this Act in respect of actions which cannot be completed or complied with due to
force majeure.
(2) The power to issue notification under sub-section (1) shall include the power to give retrospective
effect to such notification from a date nor earlier than the date of commencement of this Act.
Explanation. — For the purpose of this section, the expression "force majeure" means a case of war,
epidemic, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature or otherwise
affecting the implementation of any of the provisions of this Act.'
Crux: Section 168A provides power to the government to extend time limit specified in, or
prescribed or notified under, this Act in respect of actions which cannot be completed or
complied with due to force majeure.
27
CA Ramesh Soni | +91 93536 19482 39

Section 171: Anti-profiteering measure [new sub section inserted]
Section 171 (3A): Where the Authority referred to in sub-section (2) after holding examination as
required under the said sub-section comes to the conclusion that any registered person has profiteered
under sub-section (1),
• such person shall be liable to pay penalty equivalent to ten per cent of the amount so profiteered:
Provided that no penalty shall be leviable if the profiteered amount is deposited within thirty days of the
date of passing of the order by the Authority.
Explanation. —For the purposes of this section, the expression "profiteered" shall mean the amount
determined on account of not passing the benefit of reduction in rate of tax on supply of goods or
services or both or the benefit of input tax credit to the recipient by way of commensurate reduction in
the price of the goods or services or both.
Crux:
• Where National Anti-profiteering authority (NAA) has concluded that a RP has
profiteered, then such person shall be liable to penalty equal to 10% of amount
profiteered.
• No penalty shall be leviable if the profiteered amount is deposited within 30 days of the
date of passing of the order by the Authority (NAA).
Link: Payment of Taxes

Section 53A: Transfer of certain amounts
Where any amount has been transferred

- from the e cash ledger under this Act to the e cash ledger under the SGST Act or the UTGST Act,
- the Government shall, transfer to the State tax account or the UT tax account,
- an amount equal to the amount transferred from the electronic cash ledger, in such manner and
within such time as may be prescribed.
Section 17A of IGST act: Transfer of certain amounts.
Where any amount has been transferred

- from the e cash ledger under this Act to the e cash ledger under the SGST Act or the UTGST Act,
- the Government shall transfer to the State tax account or the Union territory tax account,
- an amount equal to the amount transferred from the electronic cash ledger, in such manner and
within such time, as may be prescribed.
Crux:
Consequent to amendment in section 49 allowing transfer of amount from one head to
another in E-cash ledgers, where amount transferred from E-cash Ledger (CGST/IGST) to E-
Cash Ledger (SGST/UTGST), the Government shall, transfer to the State tax account or the
UT tax account, an amount equal to the amount transferred from the electronic cash ledger.
CA Ramesh Soni | +91 93536 19482 40

Foreign trade policy - Amendment
Duration of applicability of FTP 2015-2020 extended till 31.03.2021
Crux: The Foreign Trade Policy 2015-2020 which was valid till 31.03.20 has now been
extended upto 31.03.2021.
Import of goods as gifts prohibited except for life saving drugs/medicines and rakhi (but not
gifts related to Rakhi)
Earlier, import of gifts were free where such goods were otherwise freely importable under ITC (HS). In
other cases, such imports were permitted against an Authorization issued by DGFT.
However, DGFT vide Notification No. 35/2015-20 dated 12th December 2019 has amended the said
provision and provided that import of goods, including those purchased from e-commerce portals,
through post or courier, where customs clearance is sought as gifts, is prohibited except for life saving
drugs/medicines and rakhi (but not gifts related to rakhi). Rakhi will be exempted as under section
25(6) of the Customs Act, 1962 that reads “…no duty shall be collected if the amount of duty leviable is
equal to, or less than, Rs. 100”. Further, import of goods as gifts with payment of full applicable duty is
permissible.
Crux:
Earlier gifts were allowed to be imported without tax, however now DGFT has amended the
said provision and provided that import of goods, including those purchased from e-
commerce portals, through post or courier, where customs clearance is sought as gifts, is
prohibited except for life saving drugs/medicines and rakhi (but not gifts related to rakhi).
Further, import of goods as gifts with payment of full applicable duty is permissible.
Exemption from IGST and GST compensation cess extended upto 31.03.2021 in case of
imports under Advance Authorization, EPCG, EOU/EHTP/STP/BTP units
Imports against Advance Authorizations for physical exports were exempted from Integrated Tax and
Compensation Cess upto 31.03.2020. Such exemption has now been extended upto 31.03.2021.
Capital goods imported under EPCG Authorization for physical exports were exempted from IGST and
Compensation Cess upto 31.03.2020. Such exemption has now been extended upto 31.03.2021.
Goods imported by EOU/EHTP/STP/BTP units from DTA, IGST and GST compensation cess were exempt
upto 31.03.2020. Such exemption from has also been extended upto 31.03.2021.
Crux: Earlier the exemptions were till 31.03.2020, now extended upto 31.03.2021.
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Some Amendments not considered by ICAI
Accounts and Records
Rule 80: Annual return
(1) Every RP, other than an Input Service Distributor, a person paying tax u/s 51/52, a casual taxable
person and a non-resident taxable person, shall furnish an annual return as specified u/s 44(1)
electronically in FORM GSTR-9 through the common portal either directly or through a Facilitation
Centre notified by the Commissioner:
Provided that a person paying tax u/s 10 shall furnish the annual return in FORM GSTR-9A.
(2) Every electronic commerce operator required to collect tax at source under section 52 shall
furnish annual statement referred to in sub-section (5) of the said section in FORM GSTR-9B.
(3) Every registered person 28other than those referred to in the proviso to section 35(5),
whose aggregate turnover during a financial year exceeds two crore rupees shall get his accounts
audited as specified under section 35(5) and he shall furnish a copy of audited annual accounts
and a reconciliation statement, duly certified, in FORM GSTR-9C, electronically through the
common portal either directly or through a Facilitation Centre notified by the Commissioner.
29
Provided that every registered person whose aggregate turnover during the financial
year 2018-2019 exceeds five crore rupees shall get his accounts audited as specified
under section 35(5) and he shall furnish a copy of audited annual accounts and a
reconciliation statement, duly certified, in FORM GSTR-9C for the financial year 2018-
2019, electronically through the common portal either directly or through a Facilitation
Centre notified by the Commissioner.
Crux: Generally, a RP is required to get audit under GST if Turnover exceeds 2 crores,
however for FY 18-19, RP would be required to get audit done only if ATO exceeds 5 crores.
NN. 09/2020-CT, dt. 16.03.20: Seeks to exempt foreign airlines from furnishing
reconciliation Statement in FORM GSTR-9C
The CG, on the recommendations of the Council, hereby notifies the persons who are foreign company
which is an airlines company as the class of registered persons who shall follow the special procedure
as mentioned below.
The said persons shall not be required to furnish reconciliation statement in FORM GSTR-9C to the
CGST Rules, 2017 under section 44(2) read with rule 80(3) of the said rules:
Provided that a statement of receipts and payments for the financial year in respect of its Indian
Business operations, duly authenticated by a practicing Chartered Accountant in India or a firm or a
Limited Liability Partnership of practicing Chartered Accountants in India is submitted for each GSTIN
by the 30th September of the year succeeding the financial year.
Crux: Foreign airlines are not required to submit GSTR 9C, instead a statement of receipts
and payments for the FY w.r.t. its Indian Business operations, duly authenticated by a
practicing CA/a firm/a LLP of practicing CAs is to be submitted GSTIN-wise by the 30th
September of the year succeeding the FY.
28
Inserted by Central Goods and Services Tax (Amendment) Rules, 2019, w.e.f. 1-2-2019.
29
Inserted by the Central Goods and Services Tax (Third Amendment) Rules, 2020 w.e.f. 23-03-2020.
CA Ramesh Soni | +91 93536 19482 42


CA CS CMA Final Statutory Updates For Nov Dec 2020

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CHARTMASTER'S

INCLUDING CRUX OF AMENDMENTS FOR

Section 10(1): Explanation inserted

Crux: Value of turnover in a State/UT shall exclude interest/discount.

Section 10(2): Person ineligible to opt for composition

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Crux: Amendment made to include reference to section 10(2A).

Crux: Amendment made to include reference to section 10(2A).

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Sl Category of Supply of Supplier of service Recipient

Clarification regarding Reverse Charge Mechanism (RCM) on renting of motor vehicles

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RCM shall be applicable only,

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Section 22(1): Registration on crossing applicable aggregate turnover

Explanation. — For the purposes of this sub-section, a person shall be considered to be

2. A person shall be considered to be engaged exclusively in the supply of goods even if he

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Aadhaar authentication mandatory for new registrants for grant of registration

Provided further that

Notification No. 18/2020 – Central Tax dated 23.03.2020 (Effective 01.04.20)

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Notification No. 19/2020 – Central Tax dated 23.03.20 (Effective 01.04.20)

Notification no. 17/2020 – Central Tax dated 23.03.20 (Effective 01.04.20)

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Section 25(6B): In case of New registration: Every Individual to undergo Aadhaar

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Exemptions from GST

Entry No. 41: Services of Lease

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Tax Invoice, Credit and Debit Notes

Rule 48: Manner of Issuing Invoice

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Rule 46: Particulars to be stated in a tax Invoice

Section 31A: Facility of digital payment to recipient

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Rule 138E: Restriction on furnishing of information in PART A of FORM GST EWB-01.

Notwithstanding anything contained in sub-rule (1) of rule 138, no person (including a

Unblocking of E-way Bill

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Provided further that

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Explanation: The aggregate value of exempt supplies shall exclude: —

Crux: Refer Amendment lecture.

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Clarification in respect of apportionment of ITC in cases of business reorganization under

Clarification in respect of apportionment of input tax credit (ITC) in cases of business

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Section 49: Payment of Tax, Interest, Penalty and other amounts

Newly Inserted Rule 87(13):

Rule 86A: Conditions of use of amount available in electronic credit ledger.