Including Covid-19 relaxations / updates
Goods and Services Tax is an indirect tax used in India on the supply of goods and services. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017. It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes.
Goods and Service Tax (GST) is paid by the consumers for the products or services. But the GST will be remitted to the government by the businesses who are providing you with those products and services.
• GST Circulars in brief
1. Significant Changes from 1st April 2021
A. E-invoicing will be mandatory
The Central Board of Indirect Taxes and Customs (CBIC) notified that e-invoicing will be mandatory for business to business (B2B) transactions for taxpayers having turnover of over Rs 50 crore from April 1, 2021.
E-invoicing replaces the physical invoice and will soon replace the existing e-way bill system, and taxpayers will not have to generate separate e-way bills. The government expects e-invoicing to have also other major advantages, such as improving the payment cycle for industry and giving boost to invoice-based lending to MSMEs.
B. HSN Code (Harmonized System of Nomenclature)
• Taxpayers to mandatorily declare HSN codes in GST Tax Invoices from 1st April, 2021.
• The Taxpayers whose aggregate Turnover is up to Rs. 5 crores in the preceding Financial Year HSN code of 4 digits is mandatory for all the B2B tax invoices and optional for B2C tax invoices on the supplies of Goods and Services.
• The Taxpayers whose aggregate Turnover is more than Rs. 5 crores in the preceding Financial Year HSN code of 6 digits is mandatory for both B2B and B2C tax invoices on the supplies of Goods and Services.
C. Important system changes need to be integrated in your e waybills, Delivery challans, Tax invoices, GSTR 1 reporting, Shipping bills, GST refund applications and further note that options available for non reporting under Table 17 and Table 18 would be done away from FY 2021-22 positively.
2. Upcoming functionalities to be deployed on GST Portal for the Taxpayers in the month of July, 2021:
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Sl. No |
Form/ Functionality |
Functionality released/ to be released for Taxpayers |
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1 |
Registration Timelines for filing of Application for Revocation of Cancellation of Registration in Form GST REG-21 |
· the Government had extended the date for filing of various applications falling during the period from the 15th April, 2021 to 29th June, 2021, till 30th June, 2021. · Timeline for filing of Application for Revocation of Cancellation of Registration, which were due on 15th of April 2021, had also been extended till 30th June 2021 on the GST Portal. · Accordingly, these extensions have now ceased to be effective w.e.f. 1st July, 2021, · Timelines for filing of application for revocation of cancellation is now changed to 90 days (as was earlier) on the GST Portal, from date of Order of Cancellation of Registration in Form GST REG-19. |
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2 |
Returns Information regarding late fee payable provided in Form GSTR-10 |
· Taxpayers whose registration is cancelled, at the time of filing of last return in Form GSTR-10, will now be provided with details of late fee payable by them, for the delayed filing of any of the previous returns/ statements in a table, for their assistance in filing of said return by them. · This information can be viewed by clicking on a hyperlink provided under the column “Late Fee Payable” in the online Form GSTR- 10. |
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3 |
Returns Auto-population of data in Form GSTR-11 on basis of Forms GSTR-1 / 5 filed by their suppliers |
· The UIN holders file details of their inward supplies in Form GSTR-11 on a quarterly basis. They can subsequently file for refund (if required) in Form GST RFD- 10, for the quarter, in which summary of the documents is auto-populated from their Form GSTR-11, in an editable mode · Form GSTR-11 of the UIN holder would be generated with details of their inward supplies, on basis of Forms GSTR-1 / 5 filed by their suppliers, which will subsequently help them in filing their refund claims |
3. Govt. relaxes GST refund claim norms
The Central Board of Indirect Taxes and Customs (CBIC) has eased the norms for claiming Goods and Services Tax (GST) refunds making it easier for businesses to rectify their applications. The period between filing a refund claim and an officer issuing a deficiency notice will not be counted in the total time limit available for filing a refund request.
4. Flavoured milk taxable at 12% under GST: AAR rules in Amul dairy case
Flavoured milk is basically ‘beverage containing milk’ and will attract 12 per cent GST, the Gujarat Authority for Advance Ruling (AAR) has said.
Gujarat Co-operative Milk Marketing Federation Ltd, which markets dairy product under Amul brand, had approached the AAR on the taxability under the Goods and Services Tax (GST) of flavored milk which the company sells under trade name Amul Kool /Amul Kool Cafe.
The applicant had submitted before the AAR that the process of the flavoured milk is standardization of fresh milk according to the fat contents and then heating at certain temperature followed by filtration, pasteurisation and homogenisation and then mixing of sugar and various flavours and finally bottling.
5. 6-digit HSN code mandatory in invoices for biz with over Rs 5 crore turnover
Businesses with turnover of more than Rs 5 crore will have to furnish six-digit HSN or tariff code on the invoices issued for supplies of taxable goods and services from April 1, the Finance Ministry said on Wednesday. Those with turnover of up to Rs 5 crore in the preceding financial year would be required to mandatorily furnish four-digit HSN code on B2B invoices. Earlier, the requirement was four-digits and two-digits respectively. “With effect from the 1st April, 2021, GST taxpayers will have to furnish HSN (Harmonised System of Nomenclature Code), or Service Accounting Code (SAC) in their invoices, as per the revised requirement, the Ministry said in a statement.
6. GSTN enables functionality to lodge complaint of PAN misuse for GST registration
“To check the misuses of PAN in GST Registration, a functionality has been provided at GST Portal to register the complaint. GSTN, which handles the technology backbone of the Goods and Services Tax, has enabled an utility to lodge complaints relating to misuse of PAN for obtaining GST registration, a move aimed at curbing creation of bogus entities for the purpose of tax evasion. Any person whose PAN has been misused can lodge such a complaint. Following that, it would be sent to the concerned tax officer under whose jurisdiction the registration has taken place fraudulently for further action. Click Here
7. GST Amnesty Scheme – Unable to file GST returns and take benefit, businesses urge government to do THIS
An important day for the Indian indirect taxation system - the Goods and Services Tax (GST) - which will be completing its four years at the helm, on Thursday. The government has been making changes in the law to remove teething problems from time-to-time. The government has also recently launched the GST Amnesty scheme. This scheme is valid for the period between July 2017 and April 2021.
However, the businesses are unable to take advantage of this scheme as this scheme will apply if the GST returns are filed till 31 August 2021. To read more: Click Here
Monthly Updates with official links
Monthly Updates / Circulars / Notification - April 2021
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Sl. |
Notification Particulars |
Notification No. |
Link(s) |
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1. |
Module wise new functionalities deployed on the GST Portal for taxpayers |
GSTN Circular 455 |
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2. |
Seeks to waive penalty payable for non-compliance of provisions of Notification No. 14/2020 dated 21st March 2020. |
06/2021-Central Tax dated 30.03.2021 |
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3. |
Auto-population of e-invoice details into GSTR-1 |
GSTN Circular 460 |
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4. |
Clarification on reporting 4-digit/6-digit HSNs |
GSTN Circular 463 |
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5. |
New features of Form GSTR-2B & GSTR-3B made available to taxpayers under QRMP Scheme |
GSTN Circular 464 |
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6 |
Updates in Forms GSTR-1, GSTR-3B and Matching Offline Tool for taxpayers in QRMP Scheme |
GSTN Circular 466 |
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7 |
Seeks to waive penalty payable for non-compliance of provisions of Notification No. 14/2020 dated 21st March 2020. |
06/2021-Central Tax dt 30.03.2021 |
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8 |
Widening the net: How e-invoicing is boosting GST compliance |
News update |
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9 |
CBIC extends customs duty and integrated GST exemptions till March 31, 2022 |
News update |
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10 |
Seeks to make second amendment (2021) to CGST Rules.. |
07/2021-Central Tax dated27.04.2021 |
Monthly Updates / Circulars / Notification - May, 2021
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Sl. |
Notification Particulars |
Notification No. |
Link(s) |
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1. |
Extension of the due date of filing Application for Revocation of Cancellation of Registration |
GSTN Circular 474 |
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2. |
Waiver of interest and late fee to normal taxpayers (filing return on monthly or quarterly basis) and composition taxpayers, for the tax periods of March and April, 2021 |
GSTN Circular 468 |
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3. |
Seeks to provide relief by lowering of interest rate for the month of March and April, 2021 |
08/2021-Central Tax dated 01.05.2021 |
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4. |
Seeks to amend notification no. 76/2018-Central Tax in order to provide waiver of late fees for specified taxpayers and specified tax periods |
09/2021-Central Tax dated 01.05.2021 |
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5. |
Seeks to extend the due date for filing FORM GSTR-4 for financial year 2020-21 to 31.05.2021 |
10/2021-Central Tax dated 01.05.2021 |
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6 |
Seeks to extend the due date for furnishing of FORM ITC-04 for the period Jan-March, 2021 till 31st May, 2021. |
11/2021-Central Tax dated 01.05.2021 |
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7 |
Seeks to extend the due date of furnishing FORM GSTR-1 for April, 2021 |
12/2021-Central Tax dated 01.05.2021 |
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8 |
Seeks to make third amendment (2021) to CGST Rules. |
13/2021-Central Tax dated 01.05.2021 |
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9 |
Seeks to extend specified compliances falling between 15.04.2021 to 30.05.2021 till 31.05.2021 in exercise of powers under section 168A of CGST Act. |
14/2021-Central Tax dated 01.05.2021 |
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10 |
SSeeks to provide relief by lowering of interest rate for the month of March and April, 2021 |
01/2021- Integrated Tax dated 01-05-2021 |
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11 |
Seeks to provide relief by lowering of interest rate for the month of March and April, 2021 |
01/2021-Union Territory Tax,dt. 01-05-2021 |
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12 |
GST Revenue collection for April’ 21 sets new record |
Release ID: 1715314 |
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13 |
Module wise new functionalities deployed on the GST Portal for taxpayers |
GSTN Circular 470 |
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14 |
Extension in dates of various GST Compliances for GST Taxpayers |
GSTN Circular 469 |
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15 |
Waiver of interest and late fee to normal taxpayers (filing return on monthly or quarterly basis) and composition taxpayers, for the tax periods of March and April, 2021 |
GSTN Circular 468 |
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16 |
Extension of the due date of filing Revocation application of Cancellation |
GSTN Circular 472 |
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17 |
Generation of GSTR-2B for April 2021 |
GSTN Circular 473 |
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18 |
Seeks to prescribe Standard Operating Procedure (SOP) for implementation of the provision of extension of time limit to apply for revocation of cancellation of registration under section 30 of the CGST Act, 2017 and rule 23 of the CGST Rules, 2017. |
148/04/2021-GST |
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19 |
Seeks to make fourth amendment (2021) to CGST Rules, 2017. |
15/2021-Central Tax dated 18.05.2021 |
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20 |
Seeks to appoint 01.06.2021 as the day from which the provisions of section 112 of Finance Act, 2021, relating to amendment of section 50 of the CGST Act, 2017 shall come into force. |
16/2021-Central Tax dated 01.06.2021 |
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21 |
Seeks to extend the due date for FORM GSTR-1 for May, 2021 by 15 days. |
17/2021-Central Tax dated 01.06.2021 |
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22 |
Seeks to provide relief by lowering of interest rate for a specified time for tax periods March, 2021to May, 2021. |
18/2021-Central Tax dated 01.06.2021 |
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23 |
Seeks to rationalize late fee for delay in filing of return in FORM GSTR-3B ; and to provide conditional waiver of late fee for delay in filing FORM GSTR-3B from July, 2017 to April, 2021; and to provide waiver of late fees for late filing of return in FORM GSTR-3B for specified taxpayers and specified tax periods. |
19/2021-Central Tax dated 01.06.2021 |
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24 |
Seeks to rationalize late fee for delay in furnishing of the statement of outward supplies in FORM GSTR-1. |
20/2021-Central Tax dated 01.06.2021 |
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25 |
Seeks to rationalize late fee for delay in filing of return in FORM GSTR-4. |
21/2021-Central Tax dated 01.06.2021 |
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26 |
Seeks to rationalize late fee for delay in filing of return in FORM GSTR-7. |
22/2021-Central Tax dated 01.06.2021 |
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27 |
Seeks to amend Notification no. 13/2020-Central Tax to exclude government departments and local authorities from the requirement of issuance of e-invoice. |
23/2021-Central Tax dated 01.06.2021 |
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28 |
Seeks to amend notification no. 14/2021-Central Tax in order to extend due date of compliances which fall during the period from "15.04.2021 to 29.06.2021" till 30.06.2021. |
24/2021-Central Tax dated 01.06.2021 |
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29 |
Seeks to extend the due date for filing FORM GSTR-4 for financial year 2020-21 to 31.07.2021. |
25/2021-Central Tax dated 01.06.2021 |
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30 |
Seeks to extend the due date for furnishing of FORM ITC-04 for QE March, 2021 to 30.06.2021. |
26/2021-Central Tax dated 01.06.2021 |
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31 |
Seeks to make amendments (Fifth Amendment, 2021) to the CGST Rules, 2017. |
27/2021-Central Tax dated 01.06.2021 |
Monthly Updates / Circulars / Notification – June, 2021
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Sl. |
Notification Particulars |
Notification No. |
Link(s) |
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1. |
Extension of the due date of filing Application for Revocation of Cancellation of Registration |
GSTN Circular 474 |
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2. |
Extension in dates of various GST Compliances for GST Taxpayers |
GSTN Circular 475 |
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3. |
Waiver of interest and late fee for normal taxpayers (filing return on monthly or quarterly basis) and composition taxpayers (Part1) |
GSTN Circular 478 |
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4. |
Waiver of interest and late fee for normal taxpayers (filing return on monthly or quarterly basis) and composition taxpayers (Part2) |
GSTN Circular 477 |
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5. |
Upcoming functionalities to be deployed on GST Portal for the Taxpayers |
GSTN Circular 481 |
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6 |
Webinars on recent functionalities related to Refunds deployed on GST Portal. |
GSTN Circular 483 |
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7 |
Module wise new functionalities deployed on the GST Portal for taxpayers |
GSTN Circular 482 |
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8 |
Seeks to appoint 01.06.2021 as the day from which the provisions of section 112 of Finance Act, 2021, relating to amendment of section 50 of the CGST Act, 2017 shall come into force. |
16/2021-Central Tax dated 01.06.2021 |
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9 |
Seeks to extend the due date for FORM GSTR-1 for May, 2021 by 15 days. |
17/2021-Central Tax dated 01.06.2021 |
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10 |
Seeks to provide relief by lowering of interest rate for a specified time for tax periods March, 2021to May, 2021. |
18/2021-Central Tax dated 01.06.2021 |
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11 |
Seeks to rationalize late fee for delay in filing of return in FORM GSTR-3B ; and to provide conditional waiver of late fee for delay in filing FORM GSTR-3B from July, 2017 to April, 2021; and to provide waiver of late fees for late filing of return in FORM GSTR-3B for specified taxpayers and specified tax periods. |
19/2021-Central Tax dated 01.06.2021 |
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12 |
Seeks to rationalize late fee for delay in furnishing of the statement of outward supplies in FORM GSTR-1. |
20/2021-Central Tax dated 01.06.2021 |
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13 |
Seeks to rationalize late fee for delay in filing of return in FORM GSTR-4. |
21/2021-Central Tax dated 01.06.2021 |
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14 |
Seeks to rationalize late fee for delay in filing of return in FORM GSTR-7. |
22/2021-Central Tax dated 01.06.2021 |
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15 |
Seeks to amend Notification no. 13/2020-Central Tax to exclude government departments and local authorities from the requirement of issuance of e-invoice. |
23/2021-Central Tax dated 01.06.2021 |
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16 |
Seeks to amend notification no. 14/2021-Central Tax in order to extend due date of compliances which fall during the period from "15.04.2021 to 29.06.2021" till 30.06.2021. |
24/2021-Central Tax dated 01.06.2021 |
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17 |
Seeks to extend the due date for filing FORM GSTR-4 for financial year 2020-21 to 31.07.2021. |
25/2021-Central Tax dated 01.06.2021 |
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18 |
Seeks to extend the due date for furnishing of FORM ITC-04 for QE March, 2021 to 30.06.2021. |
26/2021-Central Tax dated 01.06.2021 |
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19 |
Seeks to make amendments (Fifth Amendment, 2021) to the CGST Rules, 2017. |
27/2021-Central Tax dated 01.06.2021 |
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20 |
Seeks to amend notification No. 1/2017-Central Tax (Rate) to prescribe change in CGST rate of goods. |
01/2021-Central Tax (Rate) ,dt. 02-06-2021 |
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21 |
Seeks to amend notification No. 11/2017- Central Tax (Rate) so as to notify CGST rates of various services as recommended by GST Council in its 43rd meeting held on 28.05.2021. |
02/2021-Central Tax (Rate) ,dt. 02-06-2021 |
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22 |
Seeks to amend notification No. 06/2019- Central Tax (Rate) so as to give effect to the recommendations made by GST Council in its 43rd meeting held on 28.05.2021. |
03/2021-Central Tax (Rate) ,dt. 02-06-2021 |
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23 |
Seeks to amend notification No. 11/2017- Central Tax (Rate) so as to notify GST rates of various services as recommended by GST Council in its 44th meeting held on 12.06.2021. |
04/2021-Central Tax (Rate) ,dt. 14-06-2021 |
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24 |
Seeks to provide the concessional rate of CGST on Covid-19 relief supplies, up to and inclusive of 30th September 2021 |
05/2021-Central Tax (Rate) ,dt. 14-06-2021 |
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25 |
Clarification regarding applicability of GST on supply of food in Anganwadis and Schools. |
149/05/2021-GST |
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26 |
Clarification regarding applicability of GST on the activity of construction of road where considerations are received in deferred payment (annuity). |
150/05/2021-GST |
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27 |
Clarification regarding GST on supply of various services by Central and State Board (such as National Board of Examination) |
151/05/2021-GST |
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28 |
Clarification regarding rate of tax applicable on construction services provided to a Government Entity, in relation to construction such as of a Ropeway on turnkey basis |
152/05/2021-GST |
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29 |
GST on milling of wheat into flour or paddy into rice for distribution by State Governments under PDS |
153/05/2021-GST |
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30 |
GST on service supplied by State Govt. to their undertakings or PSUs by way of guaranteeing loans taken by them |
154/05/2021-GST |
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31 |
Clarification regarding GST rate on laterals/parts of Sprinklers or Drip Irrigation System |
155/05/2021-GST |
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32 |
Clarification in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance of notification 14/2020- Central Tax dated 21st March, 2020 |
156/12/2021-GST |
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33 |
Webinars on New Functionalities related to Registration and Returns deployed on GST Portal |
GSTN Circular 484 |
GST Council Meetings
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Sl. |
GST Meetings |
Links |
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1 |
43rd GST Council meeting Outcome: 8 Key highlights dated 28th May, 2021 |
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2 |
44th GST Council Meeting Highlights dt.12.06.2021 |
Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.
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