GST Insights: Important Developments in Law at GST Portal

Implementation of Rule-59(6) on GST Portal

Rule-59(6) of CGST Rules, 2017, inserted vide Notification No. 1/2021 dated 1st January 2021, provides for restriction in filing of GSTR-1 in certain cases.

From 1st September 2021, the above rule shall get enabled on the GST Portal. The situations are explained below:

As per the advisory issued at GSTN, if the records are saved at GST Portal but the same is blocked for filing, the recorded will remain saved and after meeting condition of above Rule 59(6), the saved records can be submitted.

Implementation of Rule-59(6) on the GST Portal will be completely automated, similar to the blocking & un-blocking of e-way bill as per Rule-138E and facility for filing of GSTR-1 will be restored immediately after filing of relevant GSTR-3B. No separate approval would be needed from the tax-officer to restore the facility for filing of GSTR- 1.

Reporting of Number of HSN Digits in GSTR-1

In accordance with Notification No. 78/2020 – Central Tax, dated October 15, 2020, taxpayers need to declare HSN Code of Goods and Services supplied by them on raising of tax invoices, with effect from 1st April, 2021 on the below mentioned lines:

Sr.

 

No.

Aggregate Turnover in the preceding Financial Year

Existing                            HSN requirement

HSN

requirement w.ef. 1st April

2021

1

Up to INR 1.5 Crs.

Nil

4*

2

1.5 Crs. to INR 5 Crs.

2

4*

3

More than INR 5 crs.

4

6

Recently GSTN has issued detailed advisory for the same resolving issues being faced by the taxpayers and advising to report correct HSN code as per the law and Tariff. The copy of Advisory can be accessed GSTN advisory

Extension of Amnesty scheme for reduction in late fees

The Government, vide Notification No. 19/2021- Central Tax, dated 01.06.2021, had provided relief to the taxpayers by reducing late fees for non-furnishing FORM GSTR- 3B for the tax periods from July, 2017 to April, 2021, if the returns for these tax periods are furnished between 01.06.2021 to 31.08.2021. The last date to avail benefit of the late fee amnesty scheme, has now extended from existing 31.08.2021 to 30.11.2021 by Notification No. 33/2021- Central Tax, dated 29.08.2021.

Note: The maximum late fee per return has been capped at Rs. 500/- in case of Nil tax liability and Rs. 1000/- in other cases for filing of GSTR-3B for July 2017 to April 2021.

Extension of time limit for filing of application for revocation of cancellation of registration under CGST Act,2017

The application for revocation of cancellation of GST registration can be filed within 30 days or within extended period as extended further by AC/JC (for further period of 30 days) of by Commissioner (for further period of 30 days) i.e. total 90 days. The Government by amending CGST Notification No. 35/2020 dated 03.04.2020 and CGST Notification No. 14/2021 dated 0.05.2021 has issued CGST Notification No. 34/2021- Central Tax, dated 29.08.2021 wherein the timelines for filing of application for revocation of cancellation of registration has been extended till 30.09.2021, where the due date of filing of application for revocation of cancellation of registration falls between 01.03.2020 to 31.08.2021 only if registration was cancelled under clause (b) or clause (c) of sub-section 29 of the CGST Act as under:

  • GSTR-3B for consecutive period of 6 months have not been filed
  • Composition taxpayer has not furnished returns for consecutive period of 3 tax periods (Please note that CMP-08 is not a return and legally registration cannot be cancelled for non-filing of the same, it is merely a statement notified under Rule 62 of CGST Rules, 2017).

Recently, GSTN in its advisory has clarified that the benefit of notification would be applicable in those cases also where the application for revocation of cancellation of registration is either pending with the proper officer or has already been rejected by the proper officer. This means taxpayers can again file application for revocation at the GST Portal if first application was rejected.

Extension of facility to file returns by EVC instead of DSC

The Filing of GSTR-3B and GSTR-1/IFF by companies using EVC, instead of DSC has already been enabled for the period from 27.04.2021 to 31.08.2021. This has been further extended to 31st October, 2021 by Notification No. 32/2021- Central Tax, dated 29.08.2021)

Blocking of E-way bill on or after 19th August 2021

The restriction to generate e-way bill as per Rule 138E of CGST Rules, 2017 remained suspended for the period 01.05.2021 to 18.08.2021 at E-Way bill portal if GSTR- 1/3B/CMP-08 has not been furnished for the period March 2021 to May 2021. Now, the same has been resumed and on non-filing of GSTR-3B/1/CMP-08 for consecutive period of 2 tax periods, e-way bill facility for outward movement of goods will be blocked.

By: CA Nikhil M. Jhanwar. The Author can be reached at nmjhanwar@gmail.com

Disclaimer: The information in this document is for educational purposes only and nothing conveyed or provided should be considered as legal, accounting or tax advice.