GST Update Month of June-2021 || Online Publication- 18.06 ...

GST Update Month of June-2021 || Online Publication- 18.06.2021 P a g e | 1

LTG PUBLICATION PVT LTD

Online Edition :18.06.2021

Pages-31

Editor

Advocate Birbal Sharma

M.Com, DLL, LL.B, LLM

CONTRIBUTOR

Advocate Kamlesh Kumar Kumawat

B.Com, LL.B

Sangita Sharma, Aarti Sharma,

B.Com, LL.B

Printing and Publishing Rights with the Publishers

PUBLISHERS

AUTHOR, EDITORS PUBLISHERS, CONTRIBUTOR ARE NOT RESPONSIBLE FOR THE RESULT OF

ANY ACTION TAKEN ON THE BASIS OF THIS WORK, ANY ERROR OR OMISSION TO ANY PERSON,

WHETHER A VIEWING OF ONLINE BOOK, IT IS SUGGESTED THAT TO AVOID ANY DOUBT

SHOULD CROSS CHECK ALL THE FACTS, LAW AND CONTENTS OF THE PUBLICATION WITH

ORIGINAL GOVERNMENT PUBLICATION OF GAZETTE NOTIFICATION, ACT, RULE ETC.

ANY COPYING BY WHATEVER MEANS, MODE OR MANNER OF ANY PART OF THIS BOOK

WITHOUT THE WRITTEN PERMISSION OF THE PUBLISHER WILL ENTAIL BOTH THE CIVIL AND

CRIMINAL ACTION WITHOUT ANY FURTHER NOTICE AND MAY CLAIM COMPENSATION FOR

THE USE OF THEIR CONTENT.

Marketing By

LTG Publication Pvt Ltd

47-A Ganpati Nagar-B, Nangal Jaisa Bohra, Jhotwara,

Jaipur

[email protected]

Contact Number- 0141-4924049

Mob No-08114437536,

Web Site-www.legaltaxguru.com

Subscription for Online Publication Only 250/-

Rupees for 01 Year

Call for Booking and Complaint- 08114437536

WhatsApp Number-08114437536,

8386982822

E- Mail ID- [email protected]



S.No

CONTENTS Page No.

1. Important GST Due Date Calendar with

For the registered persons who have failed to furnish the

return in FORM GSTR-3B, for the months /quarter of

July, 2017 to April, 2021, by the due date:

For the tax period of June, 2021 onwards or quarter

ending June, 2021 onwards

Form GSTR 3B: Due dates, Tax payment, Late Fee and

Interest

4-10

2. Fifth Amendment, 2021 to CGST Rules 2017

Notification No. 27/2021 – Central Tax - Dated- 1st

June, 2021

11

3. Article on composition scheme-Amended up to 01.06.2021

Introduction

The Turnover Limit for the Composition Levy

Persons not entitled to avail composition scheme

Composition Scheme. Tax Rate

After- 01.04.2019 (Composition Scheme & Presumptive

Scheme)

What Happened Turnover during a financial year exceeds

the limit (CGST Section 10 (3))

CGST Section 10 (5)

Billing

Palace of Supply

E-Commerce Operator

Input Tax Credit and Restriction of collection of tax

12-23



Payment of Tax

Filling of return

Important Due Dates and Form

Penalty for delay filing of GSTR 4/CMP-08

4. Important Case Laws/ Advance Ruling by

AUTHORITY ON ADVANCE RULINGS- Month of June-

2021

In re Udupi Nirmithi Kendra (GST AAR

Karnataka):-Authority for advance rulings explains

Requirement of TDS under Sec. 51 of CGST Act 2017-

In re M/s Wave Colour Techniks (GST AAR

Karnataka):- GST on Machinery used for processing &

packing of raisins & sold to framers & farmer clusters-

24-25

5. Case Name law: - Vennapusa Venkata Subba Reddy Vs

Union of India

Fake GST invoices case: High court ask petitioner to

approach Court of Special Judge for Economic Offences

26-31



EXTENDED DUE DATE OF FORM GSTR-3B

RELIEF TO TAXPAYERS, REGARDING LATE FEE, FOR DELAY IN

FILING FORM GSTR-3B RETURNS

The Government, vide Notification No. 19/2021, dated 1st June, 2021, inter alia, has waived the late fee payable, in excess of amount as specified in the Tables, as given below:

(Note: Please refer to respective State/UT Notifications for waiver of State/UT tax).

A. For the registered persons who have failed to furnish the return in FORM GSTR-3B, for the months /quarter of July, 2017 to April, 2021, by the due date:

(1) Important GST Due Date Calendar with RELAXATION IN INTEREST

Sl.No

Return in FORM

GSTR-3B for the

month/ quarter

of

Amount of Central

& State/UT tax

payable in the

return

If Return

furnished

between

Late fee

payable

waived in

excess of (Rs)

1 July, 2017 to April,

2021 NIL

1st June, 2021

and 31st

August,2021

500

2 July, 2017 to April,

2021 Not NIL

1st June, 2021

and 31st

August,2021

1000

https://www.cbic.gov.in/resources/htdocs-cbec/gst/notfctn-19-central-tax-english-2021.pdf



B. For the tax period of June, 2021 onwards or quarter ending June, 2021 onwards:

Sl.No Class of registered persons

Late fee

payable waived

in excess of

(Rs)

1 Registered persons whose total amount of Central Tax &

State/UT tax payable in the said return is Nil 500

2

Registered persons having an aggregate turnover of up to

rupees 1.5 crores in the preceding financial year, other than

those covered under S. No. 1

2,000

3

Taxpayers having an aggregate turnover of more than

rupees 1.5 crores and up to rupees 5 crores in the

preceding financial year, other than those covered under S.

No. 1

5,000

C. Form GSTR 3B: Due dates, Tax payment, Late Fee and Interest

PARTICULAR

TURNOVER

MONT

H DUE DATE

RELAXATION IN

INTEREST

EXTE

NDED

DUE

DATE

(NO

LATE

FEES

TILL)

TAX

PAID

INTER

EST

RATE

Taxpayers

having an

March-21 20-April-21 Till 05-

May-21 9%

5-May-

21



aggregate

turnover of

more than

rupees 5 crores

in the preceding

financial year

After 05-

May-21 18%

April-21 20-May-21

Till 04-

June-21 9%

4-June-

21

After 04-

June-21 18%

May-21 20-June-21

Till 05-July-

21 9%

5-July-

21

After 05-

July-21 18%

Taxpayers

having an

aggregate

turnover of up

to rupees 5

crores in the

preceding

financial year

(Not opting for

QRMP scheme)

March-21 20-April-21

Till 05-May-

21

Nil

19-June-

21 6-May-21 to

19-June-21 9%

After 19-

June-21 18%

April-21 20-May-21 Till 04-Jun-

21 Nil

4-July-

21



05-Jun-21

to 04-July-

21

9%

After 04-

July-21 18%

May-21 20-June-21

Till 05-July-

21 Nil

20-July-

21

6-July-21 to

20-July-21 9%

After 20-

July-21 18%

Taxpayers

having an

aggregate

turnover of up

to rupees 5

crores in the

preceding

financial year

(opting for

QRMP scheme

Jan-

March 21

Return Due date: 22-

Apr- 21

21-June-

21

Tax payment

Jan-21 25-Feb-

21 – –

Feb-21 25-

March-21 –



(Specified

States-I)

March-21 22-Apr-

21

Till 7-May-

21 Nil

8-May-21 to

21-June-21 9%

After 21-

June-21 18%

April-

June 21

Return Due date: 22-

Jul- 21

NA

Tax Payment

Apr-21 25-May-

21

Till 9-June-

21 Nil

10-Jun-21

to 09-July-

21

9%

After 09-

July-21 18%

May-21 25-Jun-21 Till 10-July-

21 Nil



11-July-21

to 25-July-

21

9%

25-July-21 18%

Jun-21 22-Jul-21 – –

Taxpayers

having an

aggregate

turnover of up

to rupees 5

crores in the

preceding

financial year

( Opting for

QRMP scheme)

(Specified

States-II)

Jan-Mar

21

Return Due date:

24-Apr-21

23-June-

21

Tax payment

Jan-21 25-Feb-

21 – –

Feb-21 25-Mar-

21 – –

Mar-21 24-Apr-

21

Till 9-May-

21 Nil

10-May-21

to 23-June-

21

9%

After 23-

June-21 18%



Apr-June

21

Return Due date:

24-July-21

NA

Tax payment

Apr-21

25-May-

21

Till 9-Jun-

21 Nil

10-Jun-21

to 09-July-

21

9%

After 09-

July-21 18%

May-21 25-June-

21

Till 10-July-

21 Nil

11-July-21

to 25-July-

21

9%

25-July-21 18%

Jun-21 24-Jul-21 – –



Notification No. 27/2021 – Central Tax - Dated- 1st June, 2021

Seeks to make amendments (Fifth Amendment, 2021) to the CGST Rules,

2017.

G.S.R…(E).- In exercise of the powers conferred by section 164 of the Central Goods and

Services Tax Act, 2017 (12 of 2017), the Government, on the recommendations of the Council,

hereby makes the following rules further to amend the Central Goods and Services Tax Rules,

2017, namely: —

1. SHORT TITLE AND COMMENCEMENT. –

((1) These rules may be called the Central Goods and Services Tax (Fifth Amendment) Rules, 2021.

(2) Save as otherwise provided in these rules, they shall come into force on the date of their publication in the Official Gazette.

IN THE CENTRAL GOODS AND SERVICES TAX RULES, 2017

(i) in sub-rule (1) of rule 26, in the fourth proviso, with effect from the 31st day of May, 2021, for the figures, letters and words “31st day of May, 2021”, the figures, letters and words “31 st day of August, 2021” shall be substituted;

(ii) in sub-rule (4) of rule 36, for the second proviso, the following proviso shall be substituted, namely: —

“Provided further that such condition shall apply cumulatively for the period April, May and June, 2021 and the return in FORM GSTR-3B for the tax period June, 2021 or quarter ending June, 2021, as the case may be, shall be furnished with the cumulative adjustment of input tax credit for the said months in accordance with the condition above.”;

(iii) in sub-rule (2) of rule 59, after the first proviso, the following proviso shall be inserted, namely: —

“Provided further that a registered person may furnish such details, for the month of May, 2021, using IFF from the 1st day of June, 2021 tll the 28th day of June, 2021.”.

(2) Fifth Amendment, 2021 to CGST Rules 2017



Introduction

The Indian Government roll out The Historic Goods and Service Tax regime of

business compliance in India from July 1, 2017, The Large Organizations have the

requisite resources and expertise to address these requirements. On the other side, many

start-ups and Small Enterprises may struggle to comply with these provisions, to solve

this problem by Indian govt, has introduced Composition Scheme under Section 10 of

GST Act and

The Section 9 of the GST Act provides that there shall be levied of tax at such rate as be

notified by the Central Government or State Government on the value Determined u/s

15 of this Act.; and

The Turnover Limit for the Composition Levy

The composition levy is an alternative method of levy of tax designed for small taxpayers

whose turnover is up to Rupees 1 crore but after 7th March, 2019 the limit has

increased the threshold limit of aggregate turnover for availing Composition Scheme

under Section 10 of the Central Goods and Service Tax Act, 2017 to Rs. 1.5 crores from

existing Rs. 1 crores1, (Rupees. 75 lakhs in case of few States)2. The objective of

composition scheme is to bring simplicity and to reduce the compliance cost for the small

taxpayers. Moreover, it is optional and the eligible person opting to pay tax under this

scheme can pay tax at a prescribed percentage of his turnover every quarter, instead of

paying tax at normal rate.

The Composition levy is an alternative method of levy of tax designed for small taxpayers

whose aggregate turnover is up to Rupees 1.5 crore rupees.

__________________

1. Notification No. 14/2019 – Central Tax Dated- 7th March, 2019- (Substituted for ―one crore rupees‖ by The Central

Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force w.e.f. 01st February, 2019).

2. Rs. 75 lakhs in case of few States-

(Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand.).

(3) Article on composition scheme – Amended up to

01.06.2021



Persons not entitled to avail composition scheme

Section 10 (2) Specify the Persons not entitled to avail composition scheme

(2) The registered person shall be eligible to opt under sub-section (1), if: —

a. [save as provided in sub-section (1), he is not engaged in the supply of services;]3

b. he is not engaged in making any supply of goods [or services]4 which are not

leviable to tax under this Act;

c. he is not engaged in making any inter-State outward supplies of goods [or

services]5;

d. he is not engaged in making any supply of goods [or services]6 through an

electronic commerce operator who is required to collect tax at source under

section 52; [****]7

e. he is not a manufacturer of such goods as may be notified by the Government on

the recommendations of the [Council; and]8

f. [he is neither a casual taxable person nor a non-resident taxable person:]9

Provided that where more than one registered person are having the same Permanent

Account Number (issued under the Income-tax Act, 1961), the registered person shall not

be eligible to opt for the scheme under sub-section (1) unless all such registered persons

opt to pay tax under that sub-section.

[(2A) Notwithstanding anything to the contrary contained in this Act, but subject to the

provisions of sub-sections (3) and (4) of section 9, a registered person, not eligible to opt

to pay tax under sub-section (1) and sub-section (2),

___________________

3. Substituted for ―(a) he is not engaged in the supply of services other than supplies referred to in clause (b) of paragraph 6 of

Schedule II save as provided in sub-section (1), he is not engaged in the supply of services.” By The Central Goods and Services

Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force w.e.f. 01st February, 2019.

4. Inserted by The Finance Act, 2020 (No. 12 of 2020) – Brought into force w.e.f. 01st January, 2021.

5. Inserted by The Finance Act, 2020 (No. 12 of 2020) – Brought into force w.e.f. 01st January, 2021

6. Inserted by The Finance Act, 2020 (No. 12 of 2020) – Brought into force w.e.f. 01st January, 2021

7. Omitted ―and” by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January, 2020. 27 Substituted

for ―Council: “by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January, 2020.

8. Substituted for ―Council: “by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January, 2020.

9. Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January, 2020



whose aggregate turnover in the preceding financial year did not exceed fifty lakh rupees,

may opt to pay, in lieu of the tax payable by him under sub-section (1) of section 9, an

amount of tax calculated at such rate as may be prescribed, but not exceeding three per

cent. of the turnover in State or turnover in Union territory, if he is not––

a. engaged in making any supply of goods or services which are not leviable to tax

under this Act;

b. engaged in making any inter-State outward supplies of goods or services;

c. engaged in making any supply of goods or services through an electronic commerce

operator who is required to collect tax at source under section 52;

d. a manufacturer of such goods or supplier of such services as may be notified by the

Government on the recommendations of the Council; and

e. a casual taxable person or a non-resident taxable person:

Provided that where more than one registered person are having the same Permanent

Account Number issued under the Income-tax Act, 1961, the registered person shall not

be eligible to opt for the scheme under this sub-section unless all such registered persons

opt to pay tax under this sub-section.]10

For Example, Mr. Ram Registered in Patna and Jaipur. He must avail the payment under

composition scheme both in Mumbai and Ahmedabad

Composition Scheme. Tax Rate

Section 10 of CGST Act Specify the Composition Scheme Tax Rate

10. (1) Notwithstanding anything to the contrary contained in this Act but subject to the

provisions of sub-sections (3) and (4) of section 9, a registered person, whose aggregate

turnover in the preceding financial year did not exceed Rupees 1 crore. But after 7th

March, 2019 the limit has increased the threshold limit of aggregate turnover for availing

Composition Scheme under Section 10 of the Central Goods and Service Tax Act, 2017

to Rs. 1.5 crores from existing Rs. 1 crore, (Rupees. 75 lakhs in case of few States), may

opt to pay, in lieu of the tax payable by him, an amount calculated at such rate as may be

prescribed, but not exceeding, ––

___________________




Note-

Provided further that the registered person shall not be eligible to opt for composition levy under sub-section (1) of

section 10 of the said Act if such person is a manufacturer of the goods, the description of which is specified in

column (3) of the Table below and falling under the tariff item, sub-heading, heading or Chapter, as the case may be,

as specified in the corresponding entry in column (2) of the said Table, namely:-

Sl.

No.

Tariff item,

subheading,

heading or

Chapter

Description

1. 2105 00 00 Ice cream and other edible ice, whether or not containing cocoa.

2 2106 90 20 Pan masala.

3. 24 All goods, i.e. Tobacco and manufactured tobacco substitutes.

Before 31.12.2017

Composition Scheme Tax Rate (SGST+CGST)

S.

No Category of registered persons SGST CGST Total

1.

Manufacturers, other than manufacturers of

such 1% 1% 2%

goods as may be notified by the Government

2.

Suppliers making supplies referred to in clause

(b) 2.5% 2.5% 5%

of paragraph 6 of Schedule II

3. Any other supplier eligible for composition levy .50% .50% 1%

under section 10 and the provisions of this

Chapter



After- 01.01.2018

Composition Scheme Tax Rate(SGST+CGST)

S.

No. Category of registered persons SGST CGST Total

1. Manufacturers, other than manufacturers of such .50% .50% 1%


2. Suppliers making supplies referred to in clause (b) 2.5% 2.5% 5%

of paragraph 6 of Schedule II

3. Any other supplier eligible for composition levy .50% .50% 1%

under section 10 and the provisions of this Chapter

After- 01.02.2019

S.




2. Supplier of food & drinks (restaurant business) 2.5% 2.5% 5%

3. Service providers .50% .50% 1%

Composition dealers may supply services of value

not exceeding- 10% of turnover in a State or Union

territory in the preceding financial year or 5 Lakhs,

whichever is higher.



After- 01.04.2019 (Composition Scheme & Presumptive Scheme)

S.




2. Supplier of food & drinks (restaurant business) 2.5% 2.5% 5%

3. Service providers .50% .50% 1%

Composition dealers may supply services of value

not exceeding- 10% of turnover in a State or Union

territory in the preceding financial year or 5 Lakhs,

whichever is higher.

Presumptive Scheme - Goods or services or both

(deemed as mixed supplies)

3% 3% 6%

What Happened Turnover during a financial year exceeds the limit (CGST Section

10 (3))

The option availed of by a registered person under sub-section (1) [or subsection (2A), as

the case may be,]11 shall lapse with effect from the day on which his aggregate turnover

during a financial year exceeds the limit specified under sub-section (1) [or sub-section

(2A), as the case may be.] 12

CGST Section 10 (5)

(5) If the proper officer has reasons to believe that a taxable person has paid tax under

sub-section (1) [or sub-section (2A), as the case may be,]13 despite not being eligible, such

person shall, in addition to any tax that may be payable by him under any other provisions

of this Act, be liable to a penalty and the provisions of section 73 or section 74 shall,

mutatis mutandis, apply for determination of tax and penalty

___________________

11. Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January, 2020.


13. Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January, 2020.



Billing

Composition dealer issue Bill of Supply and Rule 49 specifies the Bill of Supply

A bill of supply referred to in clause (c) of sub-section (3) of section 31shall be issued by

the supplier containing the following details, namely, -

(a) name, address and Goods and Services Tax Identification Number of the supplier;

(b) a consecutive serial number not exceeding sixteen characters, in one or multiple

series, containing alphabets or numerals or special characters -hyphen or dash and

slash symbolised as “-” and “/” respectively, and any combination thereof, unique

for a financial year;

(c) date of its issue;

(d)name, address and Goods and Services Tax Identification Number or Unique

Identity Number, if registered, of the recipient;

(e) Harmonised System of Nomenclature Code for goods or services;

(f) description of goods or services or both;

(g) value of supply of goods or services or both taking into account discount or

abatement, if any; and

(h) signature or digital signature of the supplier or his authorised representative:

Provided that the provisos to rule 46 shall, mutatis mutandis, apply to the bill of

supply issued under this rule:

Provided further that any tax invoice or any other similar document issued under any

other Act for the time being in force in respect of any non-taxable supply shall be

treated as a bill of supply for the purposes of the Act.

[Provided also that the signature or digital signature of the supplier or his authorised

representative shall not be required in the case of issuance of an electronic bill of supply

in accordance with the provisions of the Information Technology Act, 2000 (21 of

2000).]14

___________________

14. Inserted vide Notf no. 74/2018-CT dt. 31.12.2018



[Provided also that the Government may, by notification, on the recommendations of

the Council, and subject to such conditions and restrictions as mentioned therein,

specify that the bill of supply shall have Quick Response (QR) code.] 15

Palace of Supply

Applies only to the Intra-State supplies

E-Commerce Operator

If the any registered person makes supply through electronic commerce operator who is required to collect the tax at source. The electronic commerce operator cannot avail the composition scheme.

Input Tax Credit and Restriction of collection of tax

As Per Section 10 (4) of the GST Act-2017 provided that A taxable person to whom the provisions of sub-section (1) [or, as the case may be, sub-section (2A)]16 apply shall not collect any tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax.

.

Payment of Tax

Section 39 (7) of the GST Act ) Every registered person who is required to furnish a return under sub-section (1), other than the person referred to in the proviso thereto, or sub-section (3) or sub-section (5), shall pay to the Government the tax due as per such return not later than the last date on which he is required to furnish such return:

Section 39 (2) of the GST Act A registered person paying tax under the provisions of section 10, shall, for each financial year or part thereof, furnish a return, electronically, of turnover in the State or Union territory, inward supplies of goods or services or both, tax payable, tax paid and such other particulars in such form and manner, and

___________________

15. Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019 with effect from a date to be notified later.


https://www.legalraasta.com/gst/different-types-of-supply/



within such time, as may be prescribed, inward supplies of goods or services or both, tax payable and tax paid within eighteen days after the end of such quarter17

Example-April to June 2021 due date for tax deposit 18.07.2021

Filling of return

Rule 62 of Chapter VIII of CGST Rule-2017 specify Form and manner of submission of quarterly return by the composition supplier. -

(1) Every registered person paying tax under section 10 shall, (i) furnish a statement, every quarter or, as the case may be, part thereof,

containing the details of payment of self-assessed tax in FORM GST CMP-08, till the 18th day of the month succeeding such quarter; and

(ii) furnish a return for every financial year or, as the case may be, part thereof in FORM GSTR-4, till the thirtieth day of April following the end of such financial year,]18 electronically through the common portal, either directly or through a Facilitation Centre notified by the Commissioner.

(2) Every registered person furnishing the [statement under sub-rule (1) shall discharge his liability towards tax or interest]19 payable under the Act or the provisions of this Chapter by debiting the electronic cash ledger.

(3) The return furnished under sub-rule (1) shall include the-

a. invoice wise inter-State and intra-State inward supplies received from registered and un-registered persons; and

b. consolidated details of outward supplies made.

___________________

17. Substituted vide The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 10th November, 2020. for

“(1) Every registered person, other than an Input Service Distributor or a non-resident taxable person or a person paying tax

under the provisions of section 10 or section 51 or section 52 shall, for every calendar month or part thereof, furnish, in such

form and manner as may be prescribed, a return, electronically, of inward and outward supplies of goods or services or both,

input tax credit availed, tax payable, tax paid and such other particulars, in such form and manner, and within such time, as

may be prescribed, on or before the twentieth day of the month succeeding such calendar month or part thereof.

(2) A registered person paying tax under the provisions of section 10 shall, for each quarter or part thereof, furnish, in such

form and manner as may be prescribed, a return, electronically, of turnover in the State or Union territory, inward supplies

of goods or services or both, tax payable and tax paid within eighteen days after the end of such quarter.

18. Substituted vide Notf no. 20/2019-CT dt. 23.04.2019 for ―paying tax under section 10 shall, on the basis of details contained in FORM GSTR-4A, and where required, after adding, correcting or deleting the details, furnish the quarterly return in FORM GSTR-4

19. Substituted vide Notf no. 20/2019-CT dt. 23.04.2019 for ―return under sub-rule (1) shall discharge his liability towards tax, interest, penalty, fees or any other amount



(4) A registered person who has opted to pay tax under section 106 from the beginning of a financial year shall, where required, furnish the details of outward and inward supplies and return under rules 59, 60 and 61 relating to the period during which the person was liable to furnish such details and returns till the due date of furnishing the return for the month of September of the succeeding financial year or furnishing of annual return of the preceding financial year, whichever is earlier.

Explanation. – For the purposes of this sub-rule, it is hereby declared that the person shall not be eligible to avail input tax credit on receipt of invoices or debit notes from the supplier for the period prior to his opting for the composition scheme

(5) A registered person opting to withdraw from the composition scheme at his own motion or where option is withdrawn at the instance of the proper officer shall, where required, furnish [a statement in FORM GST CMP-08 for the period for which he has paid tax under the composition scheme till the 18th day of the month succeeding the quarter in which the date of withdrawal falls and furnish a return in FORM GSTR-4 for the said period till the thirtieth day of April following the end of the financial year during which such withdrawal falls]

Important Due Dates and Form

Form No.

Detail

Due Date

GST CMP-

01

Intimation to pay tax under section

10 (composition levy) (Only for

persons registered under the

existing law migrating on the

appointed day)

Before the due date or

within 30 days



GST CMP-02

Intimation to pay tax under section

10 (composition levy) (For persons

registered under the Act)

Before the beginning of the

financial year

Note- Statement in FORM GST ITC- 3 for details of

ITC relating to inputs lying in stock, inputs contained

in semi-finished or finished goods within 60 days of

commencement of the relevant financial year

GST CMP-

03

Intimation of details of stock on

date of opting for composition levy

(Only for persons registered under

the existing law migrating on the

appointed day)

Form CMP-03 has to be

filed within 90 days from

the day of filing CMP-02.

GST CMP-

04

Intimation/Application for

withdrawal from composition Levy

Within 7 days of the

incident

GST CMP-

05

Notice for denial of option to pay

tax under section 10 On the breach

GST CMP-

06 Reply to the notice to show cause

The time limit to submit the

reply is within 15 days from

the date of receipt of notice

in GST CMP- 05

GST CMP-

07

Order for acceptance / rejection of

reply to show cause notice Within 30 days

Form GSTR

Quarterly Return for compounding

Taxable persons

18th Day of the month

succeeding quarter



Form GST CMP-08 amended the Rule 62 under the CGST Rules, 2017 (3rd

Amendment Rules 2019)

CBIC has amended the Rule 62 under the CGST Rules, 2017. Form GST CMP-08 has

been inserted. This amendment has been effected vide Notification No. 20/2019 Central

Tax dt. 23rd April 2019 (i.e., Central Goods Service Tax 3rd Amendment Rules 2019).

The compliance under composition scheme shall be simplified as now they would need

to file one annual return but payment of Composition taxes would remain quarterly

(along with a simple declaration).

Penalty for delay filing of GSTR 4/CMP-08:

GSTR 04 filed in Quarterly basis within the given time frame but if it’s not file than

penalty levied on it. Rs. 100 for CGST and Rs. 100 for SGST per day or Rs. 5000 each

CGST & SGST

After 29th December, 2017 Notification No. 73/2017 – Central Tax late fees for GSTR-

4 (CMP-08) is brought down to Rs. 50 per day in case of default20. Also, the late fee for

the filing of NIL GSTR-4 (CMP-08) is brought down to Rs. 20 per day in case of delay

___________________

20.Notification No. 73/2019 – Central Tax Dated- 29th December, 2017

-CMP 08 Will be filed by-Composition

Supplier

Form GSTR

-4

Furnish a return for every financial

year April following the end of

such financial year

https://taxguru.in/goods-and-service-tax/cbec-notifies-cgst-rules-2017-registration-composition-levy.html/

https://taxguru.in/goods-and-service-tax/cbec-notifies-cgst-rules-2017-registration-composition-levy.html/

https://taxguru.in/goods-and-service-tax/central-goods-and-services-tax-third-amendment-rules-2019.html

https://taxguru.in/goods-and-service-tax/central-goods-and-services-tax-third-amendment-rules-2019.html



AUTHORITY FOR ADVANCE RULINGS EXPLAINS REQUIREMENT

OF TDS UNDER SEC. 51 OF CGST ACT 2017

THE AUTHORITY FOR ADVANCE RULINGS

IN KARNATAKA

GOODS AND SERVICES TAX

AAR explains Requirement of TDS under Section 51 of CGST Act 2017

Case Name: In re Udupi Nirmithi Kendra (GST AAR Karnataka)

Appeal Number: Advance Ruling No. KAR ADRG 30/2021

Date of Judgement/Order: 08/06/2021

RULING

The tax deduction at source is applicable to all supplies subject to condition that

the value of supply under a contract under scenario no. 3 and 4 and purchase order

under scenario no. 2 is more than Rs. 2,50,000-00 and invoice value is only

applicable for scenario no. 1 as the basis for determining the “value of supply”

under a contract.

(4) Important Case Laws/ Advance Ruling by AUTHORITY ON ADVANCE RULINGS- Month of June-2021



GST ON MACHINERY USED FOR PROCESSING & PACKING OF

RAISINS & SOLD TO FRAMERS & FARMER CLUSTERS

THE AUTHORITY FOR ADVANCE RULINGS

IN KARNATAKA

GOODS AND SERVICES TAX

Case Name: In re M/s Wave Colour Techniks (GST AAR Karnataka)

Appeal Number: Advance Ruling No. KAR ADRG 29/2021

Date of Judgement/Order: 07/06/2021

RULING

1. The machineries manufactured and sold by the applicant like Automatic Feeder

with Breaker, Drying machine, Cleaning and Grading Machine, and Pre-stem

remover are taxable at 6% under the CGST Act, 201 7 and 6% under the KGST

Act, 2016.

2. The Automatic Weighing Machine manufactured and sold by the applicant is

liable to tax at 9% under the CGST Act, 2017 and 9% under the KGST Act, 2017.



FAKE GST INVOICES CASE: ANDHRA HIGH COURT ASK

PETITIONER TO APPROACH COURT OF SPECIAL JUDGE FOR

ECONOMIC OFFENCES

Andhra Pradesh High Court

Vennapusa Venkata Subba Reddy Vs Union of India

on 16 June, 2021

Writ Petition Nos.8755 of 2019 and 21403 of 2020

J U D G M E N T

HON'BLE SRI JUSTICE U. DURGA PRASAD RAO AND HON’BLE MS JUSTICE J.

UMA DEVI

COMMON ORDER: (Per UDPR, J)

Both these writ petitions are filed by the same writ petitioner. Writ petition

No.8755 of 2019 is filed challenging the proceedings in F.No.

DGGI/VZU/INV/GST/13/2019, dated 08.03.2019 provisionally attaching the bank

Locker No.39 held by the petitioner and bank accounts of some others under Section

83 of Central Goods and Services Tax Act, 2017 (for short ‘CGST Act, 2017’) and the

notice in F.No.DGGSTI/VZU/INV/ GST/13/2019, dated 02.07.2019 issued by the

Additional Director General/3rd respondent informing the 5th respondent –

Branch Manager, Laxmi Vilas Bank, Guntur that the 4th respondent is authorised to

open the bank locker of the petitioner and one Smt. P. Usha Rani on 10.07.2019 in their

(5). Case Name law



presence and to recover/seize the incriminating documents, as illegal, arbitrary and

contrary to the provisions of the Central Goods and Services Tax Act, 2017 and violative

of fundamental rights under Articles 14, 19(1)(g), 21 and 300(A) of the Constitution of

India and also violative of principles of natural justice and consequently to set aside the

aforesaid proceedings.

Whereas, the writ petition No.21403 of 2020 is filed challenging the proceedings in

F.No.DGGSTII/VZU/INV/GST/13/2019, dated 06.03.2020 issued by the 3rd

respondent extending the attachment of petitioner’s locker No.39 and consequential

letter in F.No.DGGI/VZU/INV/GST/13/2019/2044, dated 09.11.2020 issued by the

Deputy Director on the approval of the 3rd respondent informing the 6th respondent –

Branch Manager, Lakshmi Vilas Bank that 5th respondent is authorized to open bank

locker of the petitioner and Smt. P. Usha Rani and her son P. Bhanu Prakash in their

presence on 17.11.2020, as illegal, arbitrary and contrary to the provisions of the Central

Goods and Services Tax Act, 2017 and its Rules, and violative of fundamental rights

under Articles 14, 19(1)(g) and 300(A) of the Constitution of India and also violative of

principles of natural justice and consequently to set aside the aforesaid proceedings.

2. The case of the respondent department as can be seen from their counter is

thus:

a. The writ petitioner with the assistance of his business accomplices passed fake

Input Tax Credit (ITC) invoices on large scale in the name of different

fictitious/shell firms within the States of Andhra Pradesh and Telangana during

the period July, 2017 to February, 2019 without actual supply of goods in violation

of CGST Act, 2017 and Rules. The investigation initiated by the Officers of

Director General of GST (Intelligence), Visakhapatnam Zonal Unit revealed the

said fact and they conducted searches in some of the premises of those

fictitious/shell firms operated by V.V Subba Reddy. The searches were conducted

in the places like Guntur, Vijayawada, Narsaraopeta, Hyderabad etc., and they

revealed that no business firms have operated from those premises and the CGST

registrations were taken fraudulently in the names of different firms using wrong

credentials/addresses with a view to passing of ITC by issuing fake tax invoices

without actual supply of goods. Investigation further revealed that around 90

different firms are operated by V.V Subba Reddy for the purpose of claiming ITC

by issue of fake tax invoices during the period and these firms operated in a

network so as to conceal evasion. Some of the fictitious/shell firms, where



searches were conducted, have admittedly purchased the fake tax invoices without

actual receipt of goods from the firms operated by V.V Subba Reddy.

Investigation is still under progress.

b. The respondent officials have arrested Vennapusa Venkata Subba Reddy on

11.03.2019 for violation of Section 132(1)(b) and Section 132(1)(c) of CGST Act,

2017 and fraudulently passing on ITC by issuing fake tax invoices without actual

supply of goods in the name of different fictitious firms. Learned Judge of

Economic Offences Court, Visakhapatnam remanded Vennapusa Venkata Subba

Reddy to judicial custody on 12.03.2019 and later conditional bail was granted to

him on 18.06.2019 with a direction to appear before the Investigating Officer once

in a week.

c. From the statements of the Jaluri Sai Babu and some others, it is clear that there

are a number of business accomplices of Vennapusa Venkata Subba Reddy who

associated with him in creation of fictitious firms by collecting credentials from

different individuals for the purpose of issue of fake tax invoices for fraudulent

passing on ITC. In this background, the bank accounts of the fictitious firms were

provisionally attached in the interest of protecting the Government revenue. As a

part of it, the bank Locker No.39 standing in the name of the petitioner was also

ordered for provisional attachment on 08.03.2019 in the interest of Government

revenue and with a reasonable belief that some incriminating documents/records

relating to the case under investigation and cash might be secreted in those lockers.

d. Subsequent to the release of Vennapusa Venkata Subba Reddy on bail on

18.06.2019, the 3rd respondent addressed a letter dated 02.07.2019 to the Branch

manager, Lakshmi Vilas Bank, Guntur and sent a copy to the petitioner inter alia

intimating that the authorization was given to Sri Bhaskar Prasad/the 4th

respondent in W.P.No.8755 of 2019 to open and search the bank locker No.39

standing in the name of the petitioner on 10.07.2019. However, the said date was

postponed to 17.11.2020 vide letter dated 09.11.2020 of the Deputy Director. In

the meanwhile, the petitioner filed the present writ petitions.

e. The contention of the respondents is that the bank accounts were attached and

lockers were sought to be opened as a part of the investigation and by following

the CGST Act and Rules and therefore, the petitioner cannot claim any violation

of his rights.



3. Heard Sri V.V. Lakshmi Narayana, learned counsel for petitioner and Sri M.V.J.K.

Kumar, Senior Standing Counsel for Central Excise, Customs and Service Tax

representing respondent Nos.1 to 5.

4. The main contention of the learned counsel for petitioner is that while attaching the

bank locker No.39 vide impugned proceedings, no show cause notice was served on the

petitioner to offer his explanation. So also the bank locker number-39 of the petitioner

was freezed and no opportunity was given to the petitioner to submit his explanation.

Due to freezing of locker, the petitioner is suffering a lot. Hence, principles of natural

justice were infringed. Learned counsel vehemently argued that the petitioner has not

committed any offences as alleged. He thus, prayed to allow the writ petition.

a. Per contra, Sri M.V.J.K. Kumar, representing the respondents, vehemently

opposed the writ petitions arguing that the petitioner opened around 90 shell

companies and created fake invoices without actual supply of goods and thus

cheated Government. He would submit that the investigation is in the prime stage

and department reasonably believes that opening of the lockers of the petitioner

and other shell companies will provide necessary documents and money etc.,

connected to the case. He thus prayed to dismiss the writ petition.

5. The point for consideration is whether the there are merits in the writ petitions to

allow?

6. We gave our anxious consideration to the above respective submissions. A perusal of

the remand report, a copy of which is filed along with the material papers by the

petitioner would show that the Senior Intelligence Officer levelled allegations against the

petitioner that he was indulged in issue of fake GST invoices in the name of more than

70 fictitious/non-operating firms created by him at different locations in the States of

Andhra Pradesh and Telangana without actual supply of goods to facilitate availment of

irregular input tax credit and thereby defrauded the Government’s tax revenue. It is

further alleged that search operations were conducted in the registered office premises

of different enterprises and also the premises of the accountant of the petitioner and

incriminating documents were recovered. Scrutiny of the documents revealed that the

petitioner created 70 different fictitious/shell firms in Andhra Pradesh and Telangana

for taking GST registrations. The modus operandi of the petitioner was that he opened

fictitious firms only on paper to issue fake GST invoices showing supply of iron and

steel goods, chemicals, battery scrap, led etc. This fictitious firms generally operated in

three levels. The firms operating at first level in the chain, will issue fake invoices without

actual supply of goods in the name of firms operating at second level without any



corresponding purchases and thus first level firms will neither pay GST nor file monthly

GSTR -3B returns. The second level companies issue GST invoices in the name of firms

operating at third level basing on the fake GST invoices issued by the 1st level firms and

these second level firms show payment of GST utilizing irregular input tax credit taken

basing on the invoice issued by the first level firms and accordingly, file monthly GSTR-

3B returns. In turn, the firms operating at third level issue fake GST invoices without

actual supply of goods to different business firms/companies in consideration for

commission and the firms operating at third level show payment of GST utilizing the

irregularly generated ITC basing on the invoices issued by the second level firms and

accordingly file monthly returns. Thus, there will be no money, bank transactions at the

first and second levels. However, bank accounts are opened with Lakshmi Vilas Bank in

the name of firms operating at third level showing receipt of sale consideration through

banking channels from different business firms/companies in whose name fake GST

invoices are issued for passing on ITC. In this process, the petitioner has issued fake

GST invoices with a total turnover of Rs.397,28,11,944/- without supply of goods to

different business firms/companies by passing on a total fraudulent input tax credit of

Rs.61,30,33,274/- in respect of 21 firms, out of more than 70 firms created by him and

thus caused huge loss to the Government exchequer. The investigation is stated to be

pending.

a. In furtherance of investigation, the Senior Intelligence Officer has attached the

bank accounts and lockers of some of the companies on the apprehension that they

are operating as shell companies for Vennapusa Venkata Subba Reddy. Therefore,

the locker No.39 of the petitioner was freezed under Section 83 of CGST Act, 2017

and decided to open through the authorized Officer.

b. Having regard to the above facts and circumstance and also in view of the

fact that the matter has been seized by the learned Special Judge for

Economic Offences-cum-IV Additional Metropolitan Sessions Judge,

Visakhapatnam and also considering that the investigation is in crucial

stage, we deem it not apposite to consider the prayer of the writ petitioner.

On the other hand, without expressing any opinion on merits of petitioner’s

case, we consider it apt to direct the petitioner to approach Special Judge for

Economic Offences-cum-IV Additional Metropolitan Sessions Judge,

Visakhapatnam for appropriate relief.



7. Accordingly, the writ petitions are disposed of giving liberty to the petitioner to

approach the Court of Special Judge for Economic Offences-cum-IV Additional

Metropolitan Sessions Judge, Visakhapatnam and file an application seeking appropriate

relief in which case the said Court shall consider the same and after hearing both parties,

pass an appropriate order in accordance with governing law and rules expeditiously. No

costs.

As a sequel, interlocutory applications, if any, pending for consideration shall stand

closed.

U. DURGA PRASAD RAO,

J J. UMA DEVI, J

16th June, 2021

krk

NOTE:- Issue C.C. by 17.06.2021

(B/o)

MVA

GST Update Month of June-2021 || Online Publication- 18.06 ...

Documents

Transcript of GST Update Month of June-2021 || Online Publication- 18.06 ...