Extension in due date for filing GSTR 3B | PIB issued and Notification issued by Odisha Government

This is to update that Ministry of Finance vide a Press Release dated August 17, 2017 has clarified regarding the availability of Transitional Input Tax Credit (ITC) for making payment of GST for the month of July 2017.  Vide the said Press Release, it has been clarified that :

►       The taxpayers who are willing to avail transitional ITC are required to compute their tax liability after estimating the amount of transitional credit.  The Press Release though clarifies that payment of tax liability post adjustment of such estimated transition credit is required to be made by August 20, 2017.

►       With the above, the Government has granted additional 8 day time i.e. August 28, 2017, to submit Form TRAN- I and Form 3B respectively.  It has been clarified that in case of a shortfall in the amount already paid vis-à-vis the amount payable on submission of Form 3B, the tax payer will be liable to discharge the balance tax along with interest @ 18% for the period between August 21, 2107 till the payment of such differential  amount.

►       Further no such extension will apply to taxpayers not opting for the above (i.e. transitional credit) and the due date will continue to be August 20, 2017.

With the above, it can also be inferred that transitional ITC is only available once the prescribed ITC transition form is filed and no such credit appears to be available unless such compliance is adhered to.  We have attached herewith a copy of the Press Release for your reference.  The official Notification from the Central Government in this regard is yet to be issued. 

However, in line with the above press release, the State Government of Odisha vide Notification No. 12520 dated August 17, 2017 has announced extension for filing of GSTR 3B returns for a situation where the assessee is seeking to claim transition credits. While this had currently been issued by Odisha Government, we are hopeful that other states will also come up with similar notifications. Further, West Bengal and Assam have also issued similar notifications in the last couple of hours

HC : Cannot dismiss appeal for non-deposit of prescribed duty/penalty within limitation period

HC overrules Single Judge Bench, holds dismissal of appeal by Commissioner (Appeals) on ground that prescribed mandatory pre-deposit of 7.5% penalty was made after expiry of limitation as ‘unsustainable’, when appeal filed within condonable period, i.e. within 90 days from date of receipt of order-in-original; Accepts assessee’s submission that Single Judge Bench failed to appreciate a perceptible difference between 'presentation of appeal' and 'entertainment of appeal' appearing in proviso to Section 128(1) and Section 129E(i) of Customs Act respectively; Observes, “if the first proviso to Section 128 (1) and Section 129 E, are harmoniously construed, then, one would have to hold that, if an appeal is presented within the time, which is the original period of limitation or, within the condonable period of thirty days, then, it can only be entertained even if the appellant makes the prescribed mandatory pre-deposit thereafter”; Remarks, ordinary meaning of word “presenting” or “presentation” could only mean 'any action or instance of lodgement of appeal', while “entertain” would mean 'give attention to or consideration to the matter'; Distinguishing Full Bench decision in E.P. Nawab Marakkadai, HC directs Revenue to follow procedure prescribed in Circular dated October 14, 2014 thereby granting at least 3 opportunities to appellant to produce evidence in support of pre-deposit : Madras HC

GSTR 3B | Payment and Return Filing | Extension | Press Release issued

This is to update that the Ministry of Finance vide Press Release dated August 19, 2017 has extended the due date for payment of GST for the month of July 2017 to August 25, 2017.  Further, the due date of filing of returns in Form GSTR 3B for taxpayers who do not wish to avail the transitional credit in TRAN-1 has also been extended till August 25, 2017.  For taxpayers, who wish to avail the transitional ITC, the last date for filing the returns in Form GSTR 3B shall continue to be August 28, 2017 as notified earlier.  Further, as regards the payment of taxes in case of taxpayers opting to avail transitional credits, this update suggests to extend the due date for payment of taxes to August 25, 2017 – however no specific mention has been made in the Press Release to this effect.

We have attached herewith a copy of the said Press Release for your reference.  Please note that the formal notification in this regard is yet to be issued by the Government

Online Process for Income Tax refund Re-issue

(a)    Login to website incometaxindiaefiling.gov.in

(b)   Select Registered User - Login on  the right hand side

(c)    Login details are 

(i)                  User ID                

(ii)                Password           

(iii)               Date of Birth     

(iv)              Type the Image                  

(d)   Aadhar Pop Up -  select Later

(e)   Now select Service request from the Tab My Account

(f)     Request Type -  New Request

(g)    Request Category -  Refund Re-issue

(h)   Select response  Submit

(i)      Now Fill the correct Bank Account Number and IFSC Code. (refer Cheque Book for correct details) 

(j)     After filling the form,  select Submit.

(k)    E Verify Pop Up will come  -  select option 2

(l)      Select Net Banking  

(m) Follow the net banking step as provided further to e verify. 

Extension in due date for filing GSTR 3B | PIB issued and Notification issued by Odisha Government

This is to update that Ministry of Finance vide a Press Release dated August 17, 2017 has clarified regarding the availability of Transitional Input Tax Credit (ITC) for making payment of GST for the month of July 2017.  Vide the said Press Release, it has been clarified that :

►       The taxpayers who are willing to avail transitional ITC are required to compute their tax liability after estimating the amount of transitional credit.  The Press Release though clarifies that payment of tax liability post adjustment of such estimated transition credit is required to be made by August 20, 2017.

►       With the above, the Government has granted additional 8 day time i.e. August 28, 2017, to submit Form TRAN- I and Form 3B respectively.  It has been clarified that in case of a shortfall in the amount already paid vis-à-vis the amount payable on submission of Form 3B, the tax payer will be liable to discharge the balance tax along with interest @ 18% for the period between August 21, 2107 till the payment of such differential  amount.

►       Further no such extension will apply to taxpayers not opting for the above (i.e. transitional credit) and the due date will continue to be August 20, 2017.

With the above, it can also be inferred that transitional ITC is only available once the prescribed ITC transition form is filed and no such credit appears to be available unless such compliance is adhered to.  We have attached herewith a copy of the Press Release for your reference.  The official Notification from the Central Government in this regard is yet to be issued. 

However, in line with the above press release, the State Government of Odisha vide Notification No. 12520 dated August 17, 2017 has announced extension for filing of GSTR 3B returns for a situation where the assessee is seeking to claim transition credits. While this had currently been issued by Odisha Government, we are hopeful that other states will also come up with similar notifications. Further, West Bengal and Assam have also issued similar notifications in the last couple of hours

Step by step guide on how to file GST Return-3B

GSTR-3B filling is under progress and the last date for GSTR-3B filling is 20 August 2017. Please find below the step by step guide on how to file GST Return-3B.  

Important Income Tax Case law update

K Raveendranathan Nair vs. CIT (Supreme Court)

S. 260A: Right of appeal is not a matter of procedure. It is a substantive right. This right gets vested in the litigants at the commencement of the lis and such a vested right cannot be taken away or cannot be impaired or imperilled or made more stringent or onerous by any subsequent legislation unless the subsequent legislation said so either expressly or by necessary intendment. An intention to interfere with or impair or imperil a vested right cannot be presumed unless such intention be clearly manifested by express words or by necessary implication.

FAQs on Rates inter alia explain 'Retail Sale Pricing', GST on Export Incentive Licenses

FAQs on GST Rates inter alia clarify that prefabricated buildings, including portable and mobile toilets, fall under heading 9406 and attract 18% GST, while battery for mobile handsets shall fall under heading 8506 and attract 28% GST; ‘Retail Sale Price’ (RSP) declared on the package of a commodity is inclusive of all taxes including GST, but GST will be payable on the transaction value; In respect of readymade garments, Govt. clarifies that ‘sale value’ of Rs. 1000 refers to transaction value, not RSP, and GST at 5% or 12% will apply accordingly; Export Incentive Licenses like MEIS and SEIS fall under heading 4907 and attract 12% GST; Sarees, Dhotis and Rakhis will be classified and taxed as per their constituent materials, states Govt. while clarifying the rates for various commodities like chocolate ‘sandesh’ Bengali misti, Isabgul, dried coconut, tobacco leaves, khari and hard butters, khoya / mawa, tamarind, cotton seed oil cake, wet dates and pet food : FAQs on Rates  

HC : Sets-aside ITAT order; Denies ‘Peak credit’ benefit as deposits remain unexplained

Delhi HC sets aside ITAT order, rejects application of ‘peak credit' principle in respect of unexplained source of deposit and corresponding outgo; While assessee-individual admitted to being an accommodation entry provider, ITAT had for relevant AY 1995-96, restricted the additions u/s. 68 to extent of peak credit worked out by assessee, by observing that the additions could not be made twice, once on the basis of cash deposits and again on the basis of cheque transactions; HC lays down the  legal position in respect of an accommodation entry provider seeking the benefit of 'peak credit', rules that “if the Assessee as a self-confessed accommodation entry provider wanted to avail the benefit of the 'peak credit', he had to make a clean breast of all the facts within his knowledge concerning the credit entries in the accounts. He has to explain with sufficient detail the source of all the deposits in his accounts as well as the corresponding destination of all payments from the accounts.”; As assessee was unable to explain the source of all deposits in his accounts or the ultimate destination of all outgoes therefrom, HC refuses to extend benefit of ‘peak credit’ while relying on Allahabad HC ruling in Bhaiyalal Shyam Bihari; Restoring the assessment order, HC remarks that “ITAT went merely on the basis of accountancy, overlooking the settled legal position that peak credit is not applicable where deposits remain unexplained u/s. 68”:HC 

Govt. extends GSTR-3B/Form TRANS 1 filing deadline till Aug. 28

Finance Ministry issues press release, announces extension of deadline till August 28, for submission of GSTR-3B & Form TRANS 1; Govt. acknowledges concerns regarding form for claiming transitional input tax credit not being available on the GSTN website, says the form will be available from August 21st; Extension of deadline only for those taxpayers who want to claim transitional credit, however with caveat that they have to make full settlement of the tax liability after adjusting the transitional input tax credit before August 20th: PIB Release

HC : Larger Bench: Holds no MAT-adjustment for bad-debt provision reduced from debtors in balance sheet

Gujarat HC larger bench rules that provision for bad and doubtful debts (‘PBDD’) when charged to P&L account and at the same time, obliterated from account by reducing "the corresponding amount from the loans and advances on the asset side of the balance\

271AAA penalty quashed for AO’s failure to seek manner of earning ‘undisclosed income’ ; Upholds wealth-tax assessment on amalgamating company

HC:Quashes penalty u/s 271AAA for AO’s failure to seek manner of earning ‘undisclosed income’

Gujarat HC upholds ITAT's order, quashes penalty u/s 271AAA [which is levied in

Return filing date for July to be extended by 1 week, tweets CNBC TV18

GST Law Committee decides to extend deadline for filing tax return for month of July, 2017 by 1 week; Tax payers will have to pay tax due post adjustment of input tax credit (ITC) by Aug 20; Such extension valid only for those who have to claim (ITC); Further, GSTN to put in place ITC claim forms, TRAN 1 & TRAN 2 by August 21: CNBC TV 18 tweets  

CBEC clarifies issues regarding furnishing of bond/LUT for exports without tax

CBEC issues clarification on issues related to furnishing of Bond/Letter of Undertaking (LUT) for exports pursuant to communications received from field formations and exporters regarding interpretation of Notification and Circular dated July 7, 2017 and Circular dated July 5, 2017; Clarifies that, only such exporter who has received a remittance of Rs. 1 crore or 10% of export turnover, whichever is higher, in previous financial year (FY) is eligible for LUT facility, however, such condition is inapplicable to a status holder specified in paragraphs 3.20 and 3.21 of Foreign Trade Policy 2015-2020; Bonds shall be furnished on non-judicial stamp paper, while LUTs can be submitted on letterhead containing signature and seal of person or authorized person, further, LUT/bond being a priori requirement for export, including supplies to a SEZ developer/SEZ unit, should be processed on top most priority and be accepted within a period of 3 working days from date of submission along with complete documents by exporter; CT-1 Form holds no relevance under GST since transaction between manufacturer and merchant exporter is not exempted even on submission of LUT/bond;  Zero rating of exports, including supplies to SEZ, is allowed only with respect to supply by actual exporter under LUT/bond or payment of IGST, further, zero rating is inapplicable to EOU supplies as there is no special dispensation for them;  LUT acceptance instead of a bond for supplies of goods to Nepal or Bhutan or SEZ developer or SEZ unit will be permissible irrespective of whether payments is received in Indian currency or convertible foreign exchange as long as same is in accordance with RBI guidelines, however, supply of services to Nepal or Bhutan shall be deemed to be export of services only if payment is received in convertible foreign exchange; Further, exporter is at liberty to furnish bond/LUT before Central Tax Authority or State Tax Authority till administrative mechanism for assigning taxpayers to respective authority is implemented; Unless there is any evidence to the contrary, documents submitted as proof of fulfilling LUT conditions shall be accepted and self-declaration shall be accepted unless there is specific information otherwise; Reiterates that instructions issued vide circular dated July 7 and this circular shall apply to all exports made on or after July 1, 2017: CBEC Circular 

HC larger bench to examine Sec. 244A interest entitlement on SA tax refund ; HCL’s reassessment quashed

SC: HC larger bench to decide on Sec. 244A interest entitlement on self-assessment tax refund

SC sets-aside Delhi HC judgement,  remands matter back to HC for  fresh decision by larger bench on the issue of grant of Sec. 244A interest on self-assessment tax  refund;  SC notes that HC had decided the issue against the assessee and had differed with the view expressed by its co-ordinate bench in Sutlej Industries Ltd. case for AY 1998-99 wherein it was held that assessee would be entitled to interest u/s. 244A on the refund of self-assessment tax; SC remarks that “In the circumstances, the appropriate course of action was to refer the matter to the larger Bench and we fail to understand why it was not done.”; Notes that the Delhi HC subsequently in later case of Sutlej Industries has referred the matter to a larger bench considering the contrary rulings; Accordingly, SC remands the appeal back to HC for its afresh decision along with Sutlej case by a larger Bench.   

Govt. amends CGST Rules; Lays down procedure upon delayed filing of 'Form GSTR-3B

Govt. notifies Central Goods and Services Tax (Fourth Amendment) Rules 2017, inter alia amends Rule 24 w.e.f. July 22 to allow cancellation of GST registration of migrated tax-payers by September 30th; Amends Rule 34 to prescribe rate of exchange as notified by CBEC u/s 14 of Customs Act for determination of value of taxable goods, while rate of exchange for taxable services shall be that determined as per generally accepted accounting principles; Amount for reversal of ITC in respect of inputs or capital goods in stock, where persons opts for composition scheme / supplies exempt goods or services / whose registration has been cancelled, shall be calculated separately for central tax, State tax, Union territory tax and integrated tax, in terms of Rule 44 w.e.f July 1; Amends third proviso to Rule 46 to provide endorsement of supplies to SEZ unit / developer on the invoice, while also amending Forms GST TRAN-1 & TRAN-2 to provide for “applicable HSN Codes”; Further amends Rule 61 to provide for e-filing of Form GSTR-3B, and where said Return is furnished after the due date for furnishing details in Form GSTR-2 (inward supplies) – (a) Part A of Form GSTR-3 shall be generated electronically on the basis of Forms GSTR-1, GSTR-2 and other liabilities of preceding tax periods, while Part B thereof, on the basis of return in Form GSTR-3B, (b) Part B of Form GSTR-3 can be modified based on discrepancies if any, between Form GSTR-3B and GSTR-3 and accordingly tax liabilities shall be discharged, (c) where ITC amount in Form GSTR-3 exceeds that in Form GSTR-3B, the additional amount shall be credited to electronic credit ledger : CBEC Notification  Click here to read / download copy of Notification No. 17/2017-Central Tax dated July 27, 2017. Click here to post your comment. For subscriptions, please contact: sales@taxsutra.com Join the GSTPro Revolution - 14 Hours E-learning Course! Click here to Register & Buy. Click here to access the Free Module. Your World of GST at one click - GSTsutra App is here!! Click here to download the Android version, while iOS users can download it by clicking here.

CGST Rules notified.

This is to update you that the CBEC vide Notification No. 17/2017 – Central Tax dated July 27, 2017 has amended the CGST Rules, 2017.  Some of the key changes introduced have been highlighted hereunder:

► Every person registered under any of the existing indirect tax laws, who is not liable to be registered under the GST Act, can submit an application electronically in FORM GST REG-29 at the common portal for the cancellation of such registration, on or before 30th September, 2017.  

FinMin : GST payable on difference amount on supply of second hand goods

FinMin notifies margin scheme under GST clarifying that GST on supply of second hand goods to be payable on difference between the selling price and the purchase price in terms of Rule 32(5) of CGST Rules, 2017, however where the value of such supply is negative, same shall be ignored; Further, states that Central Tax is exempted in case of intra-state buying and selling of second hand goods where the supplier is not registered since ITC is not available on such supplies; Moreover, states that margin scheme is also applicable to supplies of old and used empty bottles : FinMin Press Release  

Govt. clarifies GST applicability on "legal services" provided by Advocates / Sr.Advocates

Legal services, which includes representational services, provided by Advocates, are under reverse charge, clarifies Finance Ministry; Govt. clarifies that legal service has been defined to mean any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority; Further, states that the words "by way of legal services", appearing in Notification No. 13/2017-Central Tax (Rate), apply to an individual advocate, senior advocate and firm of advocates; Hence, legal services provided by either of them are liable for payment of GST under reverse charge by the business entity : Finance Ministry Press Release   

No IGST on import of goods & services by SEZs

Govt. exempts all goods and services imported by SEZ unit or developer from whole of Integrated tax leviable thereon u/s 3(7) of Customs Tariff Act, for authorized operations