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Important clarifications/ amendments issued by the Government on GST in October 2021 along with compliance timelines in November 2021

Important Updates and Due Date Compliances under GST for November 2021

Compliance timelines

Form No. Description To whom applicable Period Due date
GSTR-7 Details of Tax deducted at source (TDS) under GST Tax deducted at source (TDS) deductors October 2021 10th November 2021
GSTR-8 Details of Tax collected at source (TCS) under GST Tax collected at source (TCS) deductors October 2021 10th November 2021
GSTR-1 The return of outward supplies Tax payers (Monthly Filers) October 2021 11th November 2021
IFF Invoices of outward supplies Tax payers (Quarterly Filers under QRMP) October 2021 13th November 2021
GSTR-6 Details of inputs to be distributed Input Service Distributor October 2021 13th November 2021
GSTR-5 Summary of outward and inward supplies Non-resident foreign taxpayer October 2021 20th November 2021
GSTR-5A Summary of outward supplies Online Information and Database Access or Retrieval (OIDAR) service providers October 2021 20th November 2021
GSTR-3B Summary of outward and inward supplies and payment of tax liability Tax payers (Monthly Filers) October 2021 20th November 2021
PMT-06 Payment of tax liability Tax payers (Quarterly Filers under QRMP) October 2021 25th November 2021
GSTR 3B under Amnesty Scheme Summary of outward and inward supplies and tax liability

Late fees is restricted as follows:

(1) Non NIL returns – Maximum Rs. 1,000/-

(2) NIL Returns – Rs. 500/-
Amnesty Scheme for waiver of Late Fees - All assessees

Date of filing is between 1st day of June, 2021 to the 31st day of August, 2021
July 2017 – April 2021 30th day of November, 2021
GSTR 9 Annual Return Tax Payers having aggregate turnover of more than 2 crores 2020-21 31st December 2021
GSTR 9C Reconciliation Statement Tax Payers having aggregate turnover of more than 5 crores 2020-21 31st December 2021
 

Updates in the month of October 2021

1. Clarification regarding GST rates & classification (goods) based on the recommendations of the GST Council

The Government has issued a Circular clarifying with reference to GST levy, related to the following:

  1. Fresh vs dried fruits and nuts;
  2. Classification and applicable GST rates on Tamarind seeds;
  3. Coconut vs Copra;
  4. Classification and applicable GST rate on Pure henna powder and leaves, having no additives;
  5. Scented sweet supari and flavored and coated illaichi;
  6. Classification of Brewers' Spent Grain (BSG), Dried Distillers’ Grains with Soluble [DDGS] and other such residues and applicable GST rate;
  7. GST rates on goods [miscellaneous pharmaceutical products] falling under heading 3006;
  8. Applicability of GST rate of 12% on all laboratory reagents and other goods falling under heading 3822;
  9. Requirement of Original/ import Essentiality certificate, issued by the Directorate General of Hydrocarbons (DGH) on each inter-State stock transfer of goods imported at concessional GST rate for petroleum operations;
  10. External batteries sold along with UPS Systems/ Inverter;
  11. Specified Renewable Energy Projects; and
  12. Fiber Drums, whether corrugated or non-corrugated.

(Circular No. 163/19/2021-GST dt. 6th October, 2021)

2. Clarification regarding GST rates & classification (services) based on the recommendations of the GST Council

The Government has issued a Circular clarifying with reference to GST levy, related to the following:

  1. Services by cloud kitchens/central kitchens;
  2. Supply of ice cream by ice cream parlors;
  3. Coaching services to students provided by coaching institutions and NGOs under the central sector scheme of "Scholarships for students with Disabilities";
  4. Satellite launch services provided by NSIL;
  5. Overloading charges at toll plaza;
  6. Renting of vehicles by State Transport Undertakings and Local Authorities;
  7. Services by way of grant of mineral exploration and mining rights attracted GST;
  8. Admission to amusement parks having rides etc.; and
  9. Services supplied by contract manufacture to brand owners or others for manufacture of alcoholic liquor for human consumption.

(Circular No. 164/20/2021-GST dt. 6th October, 2021)

3. Advisory regarding availability of Input Tax Credit (ITC) for FY 2020-21

GSTN has issued an advisory clarifying that:

  1. Records (invoice or debit notes) pertaining to Financial Year 2020-21 reported in GSTR-1 after due date of GSTR-3B of September 2021 will not be reflected as "ITC Available" in GSTR-2B of the recipients. Such records will be reflected in "ITC Not Available" section of GSTR-2B and such ITC shall in turn not be auto-populated in GSTR-3B; and
  2. Records (invoice or debit notes) pertaining to Financial Year 2020-21 reported in GSTR-1 after due date of GSTR-3B of September 2021 will also not be reflected as "ITC as per GSTR-2A" in Table-8A of GSTR-9 of the recipients.

It may be noted that as per Section 16(4) of CGST Act, 2017, no taxpayer shall take ITC in respect of records (invoices and debit notes) for supply of goods or services (or both) for Financial Year 2020-21 after the due date of furnishing the return for the month of September 2021.

 

4. GSTN issues Advisory for taxpayers on Form GSTR-2B

GSTN has issued the following documents:

1. Detailed Advisory for taxpayers on Form GSTR-2B - https://tutorial.gst.gov.in/downloads/news/updated%20advisory_gstr_2b_12_10_2021.pdf
2. User Manual for taxpayers on Form GSTR-2B - https://tutorial.gst.gov.in/userguide/returns/index.htm#t=Manual_gstr2b.htm
3. FAQs for taxpayers on Form GSTR-2B - https://tutorial.gst.gov.in/userguide/returns/index.htm#t=FAQ_gstr2b.htm

It may be noted that Form GSTR-2B is an auto-drafted ITC statement which is generated for every normal taxpayer on the basis of the information furnished by their suppliers in their respective GSTR-1/IFF, GSTR-5 (non-resident taxable person) and GSTR-6 (input service distributor). This statement indicates availability and non-availability of input tax credit to the taxpayer against each document filed by their suppliers and is made available to the taxpayers in the afternoon of 14th of every month.

5. GST rate on the permanent transfer of the Intellectual Property right (IPR)

Based on the recommendation of the 45th GST Council meeting, GST rate on the permanent transfer of the Intellectual Property right (IPR), in respect of goods other than IT software, under the service tariff notification was increased from 12% to 18% by Notification no. 06/2021 – Central Tax (Rate) dated September 30, 2021. However, no such amendment was made in the rate notification of goods (as similar expression was also there). In order to avoid any ambiguities, amendment in the rate notification of goods has also been made to provide the GST rate of 18% on the permanent transfer of all IPRs.

(Notification no. 13/2021 - Central Tax (Rate) dated 27-10-2021)

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Category GST, Other Articles by - Tarun Kr. Gupta 



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