Important notifications about GST in 2020

Important notifications about GST in 2020

The Government India and the GST Council, has brought in new changes under the GST. These have been introduced through various notifications and instructions provided by the mnistry and council. It is very important that the taxpayers must consider these changes related to the Goods and Services Tax and the procedures related to it, in order to avoid any hassle.  About 12 such changes through vide notifications have been introduced in the year 2020 for easing the burden of the taxpayers. These chnges and the important due dates have been discussed in detail in the article below.

  • Restriction on claiming the Input Tax Credits: This decision was taken in the 38th meeting of the GST Council and Central Board of Indirect Taxes and Customs (CBIC). It came into effect on 26th December, 2019 vide Notification No. 75/2019. It was introduced as a specific amendment in the CGST Act, 2017 stating that percentage amount of the available and eligible ITC have been reduced for availment and the details of the same is now not required to be filed in GSTR-1 by the supliers.
  • New Rule 86A: A new RRule 86A has been inserted in the GST Rules, vide Notification No. 75/2019. It came into effect from 26th December, 2019. It staes the powers that have granted to the commissioner in deciding or varying the conditions related to the use of available ITC in the register of electronic cash ledger.
  • Blocking of generation of E-way Bill in cases where GSTR-1 is not filed: It came into effect on 11th January, 2020 vide Notification No. 75/2019 dated 26th December, 2019. It states that when the taxpayer has not filed GSTR-1 for two consecutive quarters or months in a row, then generation of their E-aay Bills will be blocked.
  • Mandatory E-Invoicing under GST: It will come into effect from 1st April, 2020 vide Notification No. 70/2019 dated 13th December, 2019.It states that each and every registered taxpayer having a turnover above Rs. 100 Crores in a particular financial year is required to generate e-invoices if B2B supplies are involved. The same has to reported in the appropriate portals of GST.
  • Creating QR codes for B2C supplies: Through the Notification No. 71/2019 and 72/2019 dated 13th December, 2019, it is mandatory to have Quick Response Code or QR Code in circumstances where the invoice is being issued by the registered person to an unregistered person (B2C invoice) and whose turnover exceeds Rs. 500 Crores in a particular financial year. This will come into effect from 1st April, 2020.
  • GST Audit and Annual Return for Financial Year 2017-18 and 2018-19: The due date to file the Annual Goods and Services Tax Return in Form GSTR-9 and the Reconciliation Statement and GST Audit Report in Form GSTR-9C for the fiscal year 2017-18 has been extended to 31st January, 2020 and for fiscal year 2018-19 is 31st March, 2020.
  • Quoting of DIN Mandatory by the Department: The Circular No. 122/41/2019, issued on 5th November, 2019 have made it mandatory to generate and quote the Director Identification Number (DIN) on documents specified by the GST Council.
  • SOP for Non-Filers of GST Return: To ensure uniformity of the implementation of the provisions and laws across all field formation by the tax officers, the CBIC has issued guidelines vide Circular No. 129/48/2019, dated 24th December, 2019.
  • Reverse Charge Mechanism (RCM) on Renting of Motor Vehicles: The 15th point in the Notification No. 13/2027 issued on 28th June, 2017 and also called as RCM Notification has been amended vide Notification No. 29/2019 issued on 31st December, 2019. It states that RCM is applicable on the services that have been through renting any motor vehicle specifically designed to carry passengers.
  • Extension of last date for filing of TRAN-1 & TRAN-2: As per the Notification No. 02/2020, the due date for filing the Form TRAN-1 has been extended till 31st March, 2020 and for Form TRAN-2 till 30th April, 2020 for the registered taxpayers under GST.
  • New GST Returns system: In the 31st meeting, the GST Council decided to introduce a new GST return filling system for the taxpayers. It will be implemented from 1st April, 2020.
  • Waiving off late fees for Non-filing of GSTR-1: The Notification No. 74/2019 issued on 26th December, 2019 provides that any taxpayer who has failed to file the Form GSTR-1 from July, 2017 to November, 2019, can file the same till 10th January, 2020. The late fees for late filling have been waived off for the taxpayers.

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    Author: Anil Agrawal
    EZYBIZ India Consulting LLP, New Delhi. The firm is business and tax consultancy firm providing consultancy in Taxation, Regulatory, Transfer pricing, Valuation, Corporate funding and Business set up matters. He may be reached at 9899217778 or anil@ezybizindia.in.
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