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GST Updates – February 2019

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GST Updates – February 2019

There are few major updates being announced by CBIC on 18th February 2019. Please find the same below:

1. CBIC mandates every registered person to specify Place of Supply with the name of State in tax invoice in case of inter-State supply:-

CBIC vide Circular No .90/09/2019- GST dated 18.02.2019 clarify the compliance of rule 46(n) of the CGST Rules, 2017. All Registered persons making supply of goods or services or both in the course of inter-state trade or commerce shall specify the place of supply along with the name of the State in the tax invoice as per the provision contained in section 31 of the CGST Act, 2017. Further the provisions of sections 10 and 12 of the IGST Act, 2017 may be referred to in order to determine the place of supply in case of supply of goods and services respectively.

Contravention of any of the provisions of the Act or the rules made there under will attracts a penalty of Rs. 25000/- as per sections 122 or 125 of the CGST Act.

http://www.cbic.gov.in/resources//htdocs-cbec/gst/circular-cgst-90.pdf

2. CBIC mandates every registered person making inter-State supplies to unregistered persons to report the details of such supplies along with the place of supply in Table 3.2 of FORM GSTR-3B and Table 7B of FORM GSTR–1.

CBIC vide Circular No .89/08/2019- GST dated 18.02.2019 clarifies a registered supplier is required to mention the details of inter -State supplies made to unregistered persons, composition taxable persons and UIN holders in Table 3.2 of FORM GSTR-3B. Further, the details of all inter-State supplies made to unregistered persons where the invoice value is up to Rs 2.5 lakhs (rate-wise) are required to be reported in Table 7B of FORM GSTR-1.  It has been brought to the notice of the Board that a number of registered persons have not reported the details of inter-State supplies made to unregistered persons in Table 3.2 of FORM GSTR-3B. However, the said details have been mentioned in Table 7B of FORM GSTR-1.

Accordingly, it is instructed that the registered persons making inter-State supplies to unregistered persons shall report the details of such supplies along with the place of supply in Table 3.2 of FORM GSTR-3B and Table 7B of FORM GSTR–1 as mandated by the law. Contravention of any of the provisions of the Act or the rules made there under attracts penal action under the provisions of section 125 of the CGST Act.

http://www.cbic.gov.in/resources//htdocs-cbec/gst/circular-cgst-89.pdf

3. CBIC clarify regarding tax payment made for supply of warehoused goods while being deposited in a customs bonded warehouse for the period July, 2017 to March, 2018 .

CBIC vide Circular No .91/10/2019- GST dated 18.02.2019 clarify the Circular No. 3/1/2018-IGST dated 25.05.2018 whereby applicability of integrated tax on goods transferred/sold while being deposited in a warehouse was clarified. In the said circular, it was said that from 1st of April, 2018 the supply of warehoused goods before their clearance from the warehouse would not be subject to the levy of integrated tax.

It has been notice that during the period from 1st of July, 2017 to 31st of March, 2018, the common portal did not have the facility to enable the taxpayer to report payment of integrated tax, in the details required to be submitted in FORM GSTR-1, for such supplies especially where the supplier and the recipient were located in the same State or Union territory.

Hence taxpayers making such supplies have reported such supplies as intra-State supplies and discharged central tax and state tax instead of integrated tax accordingly.

CBIC clarifies, in view of revenue neutral position of such tax payment and that facility to correctly report the nature of transaction in FORM GSTR-1 furnished on the common portal was not available during the period July, 2017 to March, 2018, it has been decided that, as a one-time exception, suppliers who have paid central tax and state tax on such supplies, during the said period, would be deemed to have complied with the provisions of law as far as payment of tax on such supplies is concerned as long as the amount of tax paid as central tax and state tax is equal to the due amount of integrated tax on such supplies.

http://www.cbic.gov.in/resources//htdocs-cbec/gst/circular-cgst-91.pdf

About Manoj Jain

Manoj

Manoj Jain, a CA and CS, has been working with IRIS for over 8 years and is currently one of the key subject matter experts for IRIS’ GST compliance offerings. He also has been guiding the clients for GST law related matters. Before GST he was handling US compliance analyzing US financial statements and reviewing XBRL filings for US and India market. He enjoys listening to music and traveling.

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Prakash Kinage 5 months, 4 weeks ago

Thanks

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GST Jaipur 1 month, 1 week ago

Thanks for the post. Really helpful.

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