Clarification on mentioning the details of inter-state supplies made to unregistered person in GSTR 3B and GSTR 1
Central Government vide Circular No. 89/08/2019 has clarified:
- Registered persons making inter-State supplies to unregistered persons (URD) shall report the details of such supplies along with the place of supply in Table 3.2 of FORM GSTR-3B and Table 7B of FORM GSTR-1;
- Non-filing of appropriate details in this table would result in non-appropriation of tax to receiving state;
- Contravention of any of the provisions of the Act or the rules made there under attracts penal action under the provisions of section 125 of the CGST Act which provides for a penalty of upto Rs. 25,000/- for each such offence.
Clarification on GST Invoices
Central Government has issued Circular No. 90/09/2019 dated 18.02.2019, to clarify that the all registered persons making inter- state supply of goods or services shall specify the place of supply along with the name of the State in the tax invoice. Contravention of any of the provisions of the Act or the rules made there under attracts penal action under the provisions of sections 122 (Penalty for issuing of incorrect invoice – Rs 10,000) or 125 of the CGST Act (General penalty which may extend to Rs. 25,000)
Clarification regarding CGST & SGST paid on supply of warehoused goods
Supply of warehoused goods while deposited in custom bonded warehouses had the character of inter-State supply as per the provisions of Integrated Goods and Services tax Act, 2017. The GST portal/GST Returns did not have the facility to report payment of integrated tax in such cases, where the supplier and the recipient were located in the same State or Union territory. Hence taxpayers were discharging CGST & SGST on such transactions.
Considering that facility to correctly report the nature of transaction in Form GSTR-1 furnished on the common portal was not available during the period July, 2017 to March, 2018, in respect of supply of warehoused goods while being deposited in a customs bonded warehouse, CBIC has clarified that, as a one-time exception, suppliers who have paid CGST and SGST on such supplies, during the said period, would be deemed to have complied with the provisions of law as far as payment of tax on is concerned
Amendment in certain earlier issued circulars
- Circular No. 58/32/2018 dated 04.09.2018
It has been clarified that in case of wrongly availed CENVAT credit under earlier regime or CENVAT credit wrongly transitioned in GST, a taxpayer may reverse such credit through Table 4(B)(2) [ITC Reversed – Others] of GSTR-3B. The applicable interest and penalty has to be paid through column 9 of Table 6.1[Payment of tax Interest] of GSTR-3B.
The said earlier Circular is now modified to provide that the reversal of wrongly availed credit as specified above is no longer available to the taxpayer. Such liabilities may be discharged by the taxpayer in Form GST DRC-03
- Circular No. 8/8/2017 dated 04.10.2017
It has been clarified that Letter of Undertaking (LUT) will be accepted for export of services, even if consideration is received in INR, wherever permitted by RBI.
- Circular No. 38/12/2018 dated 26.03.2018
The said circular is modified in view of the amendments in CGST Act which empowers Commissioner to extend the period for return of inputs and capital goods from the job worker to the time specified in section 143 of CGST Act.
Also, it is clarified that a job worker is required to obtain registration only in cases where his aggregate turnover, to be computed on all India basis, in a financial year exceeds the threshold limit regardless of whether the principal and the job worker are located in the same State or in different States. Thus the earlier condition where both the principal and the job worker are located in the different States, job worker is required to obtain registration only if his aggregate turnover of the inter-State supply of taxable services exceeds the specified threshold limit is now removed.
Further, it is provided that if the inputs or capital goods are neither returned nor supplied from the job worker’s place of business/premises within the specified time period, the principal would issue an invoice for the same and declare such supplies in his return for that particular month in which the time period of one year / three years has expired. The date of supply shall be the date on which such inputs or capital goods were initially sent to the job worker and interest for the intervening period shall also be payable on the tax. Initially, it was treated as a supply by Job worker and in case the job worker was not registered the principal was required to discharge GST liability under RCM.
- Circular No. 41/15/2018 dated 13.04.2018
It is amended to allow payment of applicable tax and penalty on seizure of goods within 14 days from the date of issue of order of detention, instead of 7 days prescribed earlier.
Last Updated: 13th March 2019
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