Deepak Gupta | Jan 10, 2019 |
Analysis of recent GST Orders
The Central Government, on recommendations of the Council, has issued 04 (four) Orders in recent past, to remove the difficulties, which are analysed below:
A. Order No. 1/2018 Central Tax dated 11th December, 2018:
The Central Government, on the recommendations of the Council, exercising the powers conferred by section 172 of the CGST Act, 2017 has issued the Order to extend the time limit of Annual Return, stated as follows:
i. This Order may be called the CGST (Removal of Difficulties) Order, 2018;
ii. Annual Return, for the period from the 1st July, 2017 to the 31st March, 2018 shall be furnished on or before the 31st March, 2019.
| Observation: Explanation inserted in section 44, after sub-section (2) of the CGST Act, 2017. Annual Return is stipulated in section 44 of the CGST Act, 2017 |
B. Order No. 02/2018 Central Tax dated 31st December, 2018:
The Central Government, on the recommendations of the Council, exercising the powers conferred by section 172 of the CGST Act, 2017 has issued the Order to extend the time limit to avail of benefit of input tax credit (ITC), stated as follows:
i. This Order may be called the CGST (Second Removal of Difficulties) Order, 2018;
ii. The registered person shall be entitled to take input tax credit after the due date of furnishing of the return under section 39 for the month of September, 2018 till the due date of furnishing of the return under the said section for the month of March, 2019 in respect of any invoice or invoice relating to such debit note for supply of goods or services or both made during the financial year 2017-18, the details of which have been uploaded by the supplier under sub-section (1) of section 37 till the due date for furnishing the details under sub-section (1) of the said section for the month of March, 2019.
| Observation: i. Proviso shall be inserted in sub-section (4) of section 16 of the CGST Act, 2017. Section 16 of the CGST Act, 2017 stipulates eligibility and conditions for taking input tax credit. ii. The condition laid down for availing of benefit of input tax credit (ITC), on missed out invoice(s) or debit note(s), is to upload details of outward suppliers by the suppliers under sub-section (1) of section 37 of the Act. iii. Hence, a through checking of books of accounts to identify missed out credit is now required. Additionally month wise reconciliation is required between FORM GSTR-2A and FORM GSTR-3B. |
iii. Further that the rectification of error or omission in respect of the details furnished under sub-section (1) shall be allowed after furnishing of the return under section 39 for the month of September, 2018 till the due date for furnishing the details under sub-section (1) for the month of March, 2019 or for the quarter January, 2019 to March, 2019.
| Observation: i. Second proviso shall be inserted in sub-section (3) of section 37 of the CGST Act, 2017. Section 37 stipulates furnishing details of outward supplies. |
C. Order No. 03/2018 Central Tax dated 31st December, 2018:
The Central Government, on the recommendations of the Council, exercising the powers conferred by section 172 of the CGST Act, 2017 has issued the Order to extend the time limit of Annual Return, stated as follows:
i. This Order may be called the CGST (Third Removal of Difficulties) Order, 2018;
ii. Annual Return, for the period from the 1st July, 2017 to the 31st March, 2018 shall be furnished on or before the 30th June, 2019.
| Observation: Due date of furnishing of Annual Return has been extended till 30th June, 2019. |
D. Order No. 04/2018 Central Tax dated 31st December, 2018:
The Central Government, on the recommendations of the Council, exercising the powers conferred by section 172 of the CGST Act, 2017 has issued the Order to extend the time limit of furnishing statement under sub-section (4) of section 52 of the CGST Act, 2017, stated as follows:
i. This Order may be called the CGST (Fourth Removal of Difficulties) Order, 2018;
ii. Due date for furnishing the statement under sub-section (4) of section 52 of the CGST Act, 2017 for the months of October, November and December, 2018 shall be the 31st January, 2019.
| Observation: i. An explanation shall be inserted in sub-section (4) of section 52 of the CGST Act, 2017 (herein after stated as Act). ii. Every electronic commerce operator, not being an agent, shall collect tax (GST) at source at the prescribed rate in accordance with sub-section (1) of section 52 of the Act, shall furnish a statement, electronically, in accordance with sub-section (4) of section 52 of the Act, containing requisite details, in prescribed form within ten days after the end of each month. iii. Extension of due date, for furnishing statement, would result into working capital blockade for the taxpayers (suppliers). Pending furnishing the statement, the amount collected would not appear in the electronic cash ledger of the supplier for utilisation. |
Disclaimer: The publications contain information solely for informational purpose. It is not a guidance note and does not constitute any professional advice at all. The author does not accept any responsibility for any loss or damage of any kind arising out of any information in this article or for any actions taken in reliance thereon.
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