Following
are key action areas/ points to be noted after the recent GST amendments:
1.
Input tax credit on FY 2017-18 invoices can
be claimed until due date of GSTR-3B of March 2019
1.1
Applicability of extended timeline for forward charge and reverse charge
invoices/ bill of entry
·
As
per the rationale provided by the Government, the following aspect is relevant
to note:
FY 2017-18 being the first
year of implementation of GST, there were difficulties in implementing the
provisions of the GST laws, as the tax payers were not familiar with the
following provisions:
-
Recipients eligible to avail input tax credit could not claim
the same because of missing invoices or debit notes in GSTR-2A within the
stipulated time (as per section 16(4) of CGST Act);
-
Suppliers could not rectify the error or omission in GSTR-1
within the stipulated time (as per section 37(3) of the CGST Act).
·
As
per the amendment, the following proviso has been added under Section 16(4) of
the CGST Act which is a section that prescribes a time limit for claiming
credits basis an invoice/ debit note:
-
Input tax credit in respect of invoices/ debit notes in
relation to invoices raised during FY 2017-18 can now be claimed until the due
date of furnishing Form GSTR 3B for the month of March 2019 i.e. April 20,
2019.
-
The above extension in due date for availment of input tax
credit for FY 17-18 invoices is applicable in respect of the invoices which
have been uploaded in GSTR-1 until April 11, 2019 (in GSTR-1 of March 2019).
·
As a corollary, the following inferences need to be evaluated
with respect to the extension:
|
Type of document
|
Applicability of
extension
[through proviso to
section 16(4)]
|
Remarks
|
|
Invoice
issued by supplier for goods/ services
|
Applicable
|
Covered
under the amendment and credit may be claimed until date of furnishing
GSTR-3B of March 2019
|
|
Self-invoice
issued by recipient (RCM of services)
|
May
not be applicable
|
Not
covered under the extension (till April 20, 2019) as the condition of upload
of invoices by the suppliers in their GSTR-1 will not apply with respect to
self-invoices
|
|
Bill
of entry (import of goods)
|
May
not be applicable
|
A
possible position (albeit prone to litigation) could be explored that section
16(4) of CGST Act is confined to invoice/ debit note and does not apply to
bill of entry (where credit could be claimed until date of filing annual
return)
|
|
A
specific tax position / detailed analysis would therefore be required where
credit is proposed to be taken under the proviso for self invoice (for GST
paid under RCM) and bill of entry (for import of goods)
|
||
1.2 Action steps for availment of
input tax credit for FY 17-18 invoices in various scenarios
·
Following scenarios and corresponding action steps could be
considered with regard to availment of ITC for FY 2017-18:
|
S No
|
Scenarios for FY 2017-18 invoices
|
Action Points
|
|
|
Whether supplier invoice displayed in GSTR-2A?
|
Whether ITC has been availed in GSTR-3B
|
||
|
1
|
ITC displayed in GSTR-2A upto September 2018
|
ITC not availed in GSTR 3B till date
|
Avail ITC until GSTR 3B for the month of March
2019 – due date is April 20, 2019 basis extension above
|
|
2
|
ITC not displayed in GSTR-2A upto September 2018
|
ITC already availed upto GSTR 3B for September
2018
|
1.
Intimate vendors to upload/
amend invoice details in GSTR 1 for the month of March 2019 - due date is
April 11, 2019
2.
If the vendors do not
upload/ amend the data in GSTR-1 by April 11, 2019, a position could be
explored that ITC availed based on valid invoices issued by the
suppliers should be eligible even if the same is not uploaded by the vendors
– In this regard, reference could be made to the Press release dated October
18, 2018 which states that facility to view ITC in FORM GSTR-2A (by
recipient) is in the nature of taxpayer facilitation and does not impact the
ability of the taxpayer to avail ITC on self-assessment basis in consonance
with the provisions of Section 16 of the Act.
|
|
3
|
ITC is displayed in GSTR 2A after September 2018
(ie from October 2018 onwards)
|
ITC has not been availed in GSTR-3B till date
|
Avail ITC until GSTR 3B for the month of March
2019 – due date is April 20, 2019 basis extension above
|
|
4
|
ITC is displayed in GSTR 2A after September 2018
(ie from October 2018 onwards)
|
ITC has been availed in GSTR-3B (irrespective of
whether before or after September 2018)
|
No further action required.
|
|
5
|
ITC is not displayed in GSTR 2A until March 2019
|
ITC availed upto GSTR 3B for September 2018
|
If the vendors do not upload/ amend the data in
GSTR-1 by April 11, 2019, a position could be explored that ITC availed
based on valid invoices issued by the suppliers should be eligible even if
the same is not uploaded by the vendors – In this regard, reference could be
made to the Press release dated October 18, 2018 which states that facility
to view ITC in FORM GSTR-2A (by recipient) is in the nature of taxpayer
facilitation and does not impact the ability of the taxpayer to avail ITC on
self-assessment basis in consonance with the provisions of Section 16 of the
Act.
|
|
6
|
ITC is not displayed in GSTR 2A until March 2019
|
ITC has not been availed in GSTR 3B until GSTR 3B
for March 2019
|
Credit may not be eligible to be claimed in these
cases without vendor upload of invoices which is a condition for the
extension of time limit
|
2.
Details to be uploaded/ amended in GSTR-1
·
Errors/
omissions in filing of GSTR-1 for output invoices of FY 2017-18 can be
corrected in the system until the GSTR-1 filings for the month of March 2019 –
due date being April 11, 2019.
·
However,
it is pertinent to note that currently, the option to rectify the error/
omission of FY 17-18 is not operational on the portal. We shall intimate you
the same once it is operational.
3.
GST under reverse charge on security services
·
GST
in respect of security services (services provided by way of supply of security
personnel, the following service is now covered under reverse charge from
January 1, 2019:
- If the security service is provided by any person other than
a body corporate;
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