No Input Tax Credit If No GSTR-1

Input Tax Credit Not Filed Under GSTR-1 Capped to 20% | GST Practioners Exams Time Limits | Pre Show Cause Notice Provisions Introduced under GST Law

Recently, CBIC has issued 6 Notification under CGST on 9^th October, 2019. Out of the same, Notification 49/2019 amends CGST Rules, 2017. Major changes have been proposed and below is gist of all the changes vide these 6 notifications, but the major highlight has been that ITC which is not filed by GSTR-1 of Supplier (hereinafter we refer such ITC as ‘unbacked ITC’) shall not exceed 20% of eligible ITC filed under GSTR-1

Details of changes are as under:-

Notification No. 44/2019 – Central Tax

FORM GSTR-3B for each of the months from October, 2019 to March, 2020 shall be furnished electronically through the common portal, on or before the 20th of the month succeeding such month.

Notification No. 45/2019 – Central Tax

GSTR-1 Due Dates for registered persons having aggregate turnover of up to 1.5 crore rupees in the preceding financial year or the current financial year on quarterly basis as under:-

Notification No. 46/2019

GSTR-1 due date for persons having aggregate turnover of more than 1.5 crore rupees in the preceding financial year or the current financial year, for months from October, 2019 to March, 2020 till the 11th day of the month succeeding such month.

Notification No. 47/2019 – Central Tax

Annual Return for those registered persons whose aggregate turnover in a financial year does not exceed two crore rupees and who have not furnished the annual return before the due date for both FY 17-18 and 18-19 has been made optional

Notification No. 48/2019 – Central Tax

Late Fees Waivers for Jammu and Kashmir assesses for GSTR-1, 3B and GSTR-7

Notification No. 49/2019 – Central Tax – Key Changes in CGST Rules, 2017

1. Assessee’s under Suspended Registration shall not issue tax invoices and shall also not charge any tax from recipients. In case where the order of revocation is passed, following two provisions shall apply further

• Section 31(3)(a) :- registered person may, within one month from the date of issuance of certificate of registration and in such manner as may be prescribed, issue a revised invoice against the invoice already issued during the period beginning with the effective date of registration till the date of issuance of certificate of registration to him;
• Section 40 :- Every registered person who has made outward supplies in the period between the date on which he became liable to registration till the date on which registration has been granted shall declare the same in the first return furnished by him after grant of registration.

2. Capping of Input tax Credit if the same is not filed by Vendor Supplier in his GSTR-1 (Rule 36 Amended)

• Input tax credit 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 per cent. 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
• So Say for example the total GSTR-1 filed by vendors for Month of December is Say Rs 1 Cr then unbacked (whose GSTR-1 not uploaded by vendors) ITC cannot exceed Rs 20 Lacs for the month of December.
• This is a Big Provision and will create a big hussle to all the assesses. No a very strict watch has to be kept on all the vendor filings and quick followups have to be pursued to ensure that they file GSTR-1.
• Penal provisions should be mandated in all Vendor agreements and Vendor PO’s to ensure no financial loss.

3. Wherever FORM GSTR-3B is required to be furnished by a person referred to in sub-rule (1) then such person shall not be required to furnish the return in FORM GSTR-3

4. All GST Practioners now must clear GST Exams before 30 Months from Appointed Date {Rule 83A Amended}

5. Provisional Refunds to be issued on the basis on Consolidated Payment Advise {Rule 91}

6. GSTR-1 TRAN-1 Due date extended to 31st December, 2019 for assesses with technical glitch {Rule 117}

7. GSTR DRC-01A to be served before issuance of Show Cause Notice u/r 142 vide GSTR-DRC-01 so as to allow assessee to make either partial payment or file submissions against such demand proposed. Form DRC-01A has also been prescribed.