HSN codes in E-invoices
With effect from 1.10.2023,the tax payers having aggregate annual turn over above Rs 5 crores,shall use atleast 6 digit HSN code and other tax payers shall use 4 digit HSN code in E invoices and E-waybills.
This will be made mandatory from 1st October 2023.
The Goods and Services Tax (GST) has been a pivotal tax reform in India since its inception in July 2017. It has not only streamlined the taxation system but also played a crucial role in the country’s economic growth. To keep pace with changing economic dynamics and to address the concerns of various stakeholders, the Indian government regularly amends and updates the GST framework. In September 2023, a set of significant GST amendments were introduced, aiming to simplify compliance, enhance transparency, and stimulate economic recovery. In this article, we will delve into the key changes brought about by the GST September 2023 Amendment Rules.
One of the most noteworthy changes is the simplification of GST return filing procedures. The government has introduced a single monthly return filing system, merging the existing GSTR-1 and GSTR-3B into a single return. This move aims to reduce the compliance burden on taxpayers and improve ease of doing business.
Additionally, small taxpayers with an annual turnover of up to Rs. 5 crore are now eligible for the Quarterly Return Monthly Payment (QRMP) scheme. This scheme allows them to file quarterly returns while making monthly payments of GST, simplifying the process for smaller businesses.
The GST September 2023 Amendment Rules have introduced changes to the ITC mechanism. The government has implemented stricter validation checks to curb fraudulent ITC claims. Businesses will now be required to match the details of their sales and purchases with those of their suppliers and customers. This step is expected to enhance transparency and reduce tax evasion.
E-invoicing, which was previously mandatory for businesses with an annual turnover of Rs. 100 crore or more, has now been extended to businesses with an annual turnover of Rs. 20 crore or more. This expansion is part of the government’s efforts to digitize and streamline the invoicing process, ultimately reducing tax evasion and errors.
The Composition Scheme, which allows small businesses to pay a fixed percentage of their turnover as GST, has seen several amendments. The eligibility threshold for this scheme has been raised from Rs. 1.5 crore to Rs. 2 crore, providing relief to more small businesses. Additionally, service providers can now opt for the Composition Scheme, further expanding its scope.
To tackle tax evasion effectively, the GST September 2023 Amendment Rules introduce measures such as real-time tracking of high-value transactions, stricter penal provisions, and the implementation of an Aadhar-based authentication system for taxpayers. These steps aim to create a more robust compliance framework and reduce revenue leakages.
The amendment rules have also led to the rationalization of GST rates on various goods and services. The government has reviewed the GST rates on items such as textiles, footwear, and certain electronic components, with an emphasis on reducing the tax burden on essential items.
Notification No. 41/2020 – Central Tax New Delhi, the 5 th May, 2020.
G.S.R…..(E).– In exercise of the powers conferred by sub-section (1) of section 44 of the Central
Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the
said Act), read with rule 80 of the Central Goods and Services Tax Rules, 2017 (hereafter in this
notification referred to as the said rules), and in supersession of notification No. 15/2020-Central
Tax, dated the 23rd March, 2020, published in the Gazette of India, Extraordinary, Part II, Section
3, Sub-section (i), vide number G.S.R. 198(E), dated the 23rd March, 2020, except as respects things
done or omitted to be done before such supersession, the Commissioner, on the recommendations
of the Council, hereby extends the time limit for furnishing of the annual return specified under
section 44 of the said Act read with rule 80 of the said rules, electronically through the common
portal, for the financial year 2018-2019 till the 30th September, 2020.
[F. No. CBEC-20/06/04/2020-GST]
https://cbic-gst.gov.in/pdf/central-tax/notfctn-41-central-tax-english-2020.pdf
Notification No. 37/2020 – Central Tax
New Delhi, the 28th April, 2020
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) read with clause (c) of rule 9 and rule 25 of the Central Goods and Services
Tax (Fourth Amendment) Rules, 2019 (hereinafter referred to as the rules), made vide notification No.
31/2019 – Central Tax, dated the 28th June, 2019, published in the Gazette of India, Extraordinary, Part
II, Section 3, Sub-section (i), vide number G.S.R 457(E), dated the 28th June, 2019, the Government,
hereby appoints the 21st day of April, 2020, as the date from which the said provisions of the rules,
shall come into force.
[F. No. CBEC-20/06/09/2019-GST]
(Pramod Kumar)
Director, Government of India
Link
F. No. 370142/13/2020-TPL
Government of India
Ministry of Finance
Department of Rcvenue
Central Board of Direct Taxes
*****
Circular C 1 of 2020 New Delhi, April 13,2020
Clarification in respect of option under section II5BAC of the Income-tax Act, 1961
Section 115 BAC of the Income-tax Act, 1961 (the Act), inserted by the Finance Act,
2020 wef the assessment year 202 1-22, infer alia, providcs that a person, being an individual or
a Hindu undivided family having income other than income from business or profession”, may
exercise option in respect of a previous year to be taxed under the said section 115 BAC
alongwith his return of income to be furnished under sub-section (I) of section 139 of the Act
for each year. The concessional rate providcd under section 115 BAC of the Act is subject to the
condition that the total income shall be computed without specified exemption or deduction, setoff of loss and additional depreciation.
2. Representations expressing concern regarding tax to be deducted at souree (TDS) has
been received stating that as the option is required to be exercised at the time of filing of return,
the deductor, being an employer, would not know if the person, being an employee, would opt
for taxation under section 115 BAC of the Act or not. llcnce, there is laek of clarity regarding
whether the provisions of section 115 BAC of the Act are to be considered at the time of
deducting tax.
3. In order to avoid the genuine hardship in such cases, the Board, in exercise of powers
conferred under section 119 of the Act, hereby clarifies that an employee, having income other
than the income under the head “profit and gains of business or profession” and intending to opt
for the concessional rate under section 115 BAC of the Act, may intimate the deductor, being his
employer, of such intention for each previous year and upon such intimation, the deductor shall
compute his total income, and make TDS thereon in accordance with the provisions of section
115 BAC of the Act. If such intimation is not madc by the employee, the employer shall make
TDS without considering the provision of section 115 BAC of the Act.
4. It is also clarified that the intimation so made to the deductor shall be only for the
purposes of TDS during the previous year and cannot be modified during that year. However,
the intimation would not amount to exercising option in terms of sub-section (5) of section
115BAC of the Act and the person shall be required to do so along with the return to be furnished
under sub-section (5) of section 139 of the Act for that previous year. Thus, option at the time of
filing of return of income under sub-section (5) of section 139 of the Act could be different from
the intimation made by such cmployee to the employer for that previous year.
S. Further, in case of a person who has income under the hcad “profit and gains of business
or profession” also, the option for taxation under section 115BAC of the Act once exercised for
a previous year at the time of filing of return of incomc under sub-section (5) of section 139 of
the Act cannot be changed for subsequcnt previous years except in certain circumstances.
Accordingly, the above clarification would apply to such person with a modification that the
intimation to the employcr in his casc for subsequcnt previous years must not deviate from the
option under section 115 BACof the Act once cxcrcised in a previous year.
Seeks to extend due date for furnishing FORM GSTR-3B for supply made in the month of May, 2020
Central Board of Indirect Taxes and Customs
Notification No. 36/2020 – Central Tax New Delhi, the 3rd April, 2020
(For full version of notification please click the link at the bottom).
The following amendments in the notification of the Government of India in the Ministry of Finance
(Department of Revenue), No. 29/2020 – Central Tax, dated the 23rd March, 2020, published
in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i) vide number G.S.R.
212 (E), dated the 23rd March, 2020, namely:–
In the said notification, in the first paragraph, after the second proviso, the following provisos
shall be inserted, namely: –
“Provided also that, for taxpayers having an aggregate turnover of more than rupees 5
crore rupees in the previous financial year, the return in FORM GSTR-3B of the said rules
for the month of May, 2020 shall be furnished electronically through the common portal, on
or before the 27th June, 2020:
Provided also that, for taxpayers having an aggregate turnover of up to rupees five
crore rupees in the previous financial year, whose principal place of business is in the States
of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil
Nadu, Telangana, Andhra Pradesh, the Union territories of Daman and Diu and Dadra and
Nagar Haveli, Puducherry, Andaman and Nicobar Islands or Lakshadweep, the return in
FORM GSTR-3B of the said rules for the month of May, 2020 shall be furnished
electronically through the common portal, on or before the 12th day of July, 2020:
Provided also that, for taxpayers having an aggregate turnover of up to rupees five
crore rupees in the previous financial year, whose principal place of business is in the States
of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar,
Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam,
West Bengal, Jharkhand or Odisha, the Union territories of Jammu and Kashmir, Ladakh,
Chandigarh or Delhi, the return in FORM GSTR-3B of the said rules for the month of May,
2020 shall be furnished electronically through the common portal, on or before the 14th day
of July, 2020.”.
https://cbic-gst.gov.in/pdf/central-tax/notfctn-36-central-tax-english-2020.pdf
Seeks to extend due date of compliance which falls during the period from “20.03.2020 to 29.06.2020” till 30.06.2020 and to extend validity of e-way bills
Central Board of Indirect Taxes and Customs
Notification No. 35/2020 – Central Tax New Delhi, the 3rd April, 2020
(Please click the link at the bottom for full version of notification.)
In view of the spread of pandemic COVID-19 across many countries of the world including India, the
Government, on the recommendations of the Council, hereby notifies, as under,-
(i) where, any time limit for completion or compliance of any action, by any authority or by
any person, has been specified in, or prescribed or notified under the said Act, which falls
during the period from the 20th day of March, 2020 to the 29th day of June, 2020, and where
completion or compliance of such action has not been made within such time, then, the time
limit for completion or compliance of such action, shall be extended upto the 30th day of June,
2020, including for the purposes of–
(a) completion of any proceeding or passing of any order or issuance of any notice,
intimation, notification, sanction or approval or such other action, by whatever name
called, by any authority, commission or tribunal, by whatever name called, under the
provisions of the Acts stated above; or
(b) filing of any appeal, reply or application or furnishing of any report, document, return,
statement or such other record, by whatever name called, under the provisions of the
Acts stated above;
but, such extension of time shall not be applicable for the compliances of the provisions of
the said Act, as mentioned below –
(a) Chapter IV;
(b) sub-section (3) of section 10, sections 25, 27, 31, 37, 47, 50, 69, 90, 122, 129;
(c) section 39, except sub-section (3), (4) and (5);
(d) section 68, in so far as e-way bill is concerned; and
(e) rules made under the provisions specified at clause (a) to (d) above;
(ii) where an e-way bill has been generated under rule 138 of the Central Goods and Services
Tax Rules, 2017 and its period of validity expires during the period 20th day of March, 2020
to 15
th day of April, 2020, the validity period of such e-way bill shall be deemed to have been
extended till the 30th day of April, 2020.
2. This notification shall come into force with effect from the 20th day of March, 2020.
https://cbic-gst.gov.in/pdf/central-tax/notfctn-35-central-tax-english-2020.pdf
| Seeks to extend due date of furnishing FORM GST CMP-08 for the quarter ending March, 2020 till 07.07.2020 and filing FORM GSTR-4 for FY 2020-21 till 15.07.2020. |
Central Board of Indirect Taxes and Customs
Notification No. 34/2020 – Central Tax New Delhi, the 3rd April, 2020
(Please click the link at the bottom for full text of the notification )
The following further amendments in the notification of the
Government of India in the Ministry of Finance (Department of Revenue), No. 21/2019-
Central Tax, dated the 23rd April, 2019, published in the Gazette of India, Extraordinary, Part
II, Section 3, Sub-section (i) vide number G.S.R. 322(E), dated the 23rd April, 2019, namely:–
In the said notification,-
(i) in the second paragraph, the following proviso shall be inserted, namely: –
“Provided that the said persons shall furnish a statement, containing the details of
payment of self-assessed tax in FORM GST CMP-08 of the Central Goods and Services Tax
Rules, 2017, for the quarter ending 31st March, 2020, till the 7th day of July, 2020.”;
(ii) in the third paragraph, the following proviso shall be inserted, namely: –
“Provided that the said persons shall furnish the return in FORM GSTR-4 of the
Central Goods and Services Tax Rules, 2017, for the financial year ending 31st March, 2020,
till the 15th day of July, 2020.”.
https://cbic-gst.gov.in/pdf/central-tax/notfctn-34-central-tax-english-2020.pdf
Central Board of Indirect Taxes and Customs
Notification No. 33/2020 – Central Tax New Delhi, the 3rd April, 2020
(Please see the full version by clicking the link given at the end.
The amount of late fee payable under section 47 of the said Act shall stand waived for the months of March, 2020, April, 2020 and May, 2020, and for the quarter ending 31st March, 2020, for the registered persons who fail to furnish the details of outward supplies for the said periods in FORM GSTR-1by the due date, but furnishes the said details in FORM GSTR-1, on or before the 30th day of June, 2020.”
https://cbic-gst.gov.in/pdf/central-tax/notfctn-33-central-tax-english-2020.pdf
Central Board of Indirect Taxes and Customs
Notification No. 32/2020 – Central Tax New Delhi, the 3rd April, 2020
(please see the link below to see the full version of the notification.)
The following amendment in the notification of the Government of
India in the Ministry of Finance (Department of Revenue), No. 76/2018– Central Tax, dated
the 31st December, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3,
Sub- section (i) vide number G.S.R. 1253(E), dated the 31st December, 2018, namely:–
In the said notification, after the second proviso, the following proviso shall be inserted,
namely: –
“Provided also that the amount of late fee payable under section 47 shall stand waived
for the tax period as specified for the class of registered persons who
fail to furnish the returns in FORM GSTR-3B by the due date, but furnishes the said return
according to the condition mentioned in the notification.
1. Taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year
If return in FORM GSTR3B for February,March, 2020 and April, 2020is furnished on or before the 24th day of June 2020
2 Taxpayers having an aggregate turnover of more than rupees 1.5 crores and up to rupees five crores
in the preceding financial year If return in FORM GSTR3B for February,March, 2020 and April, 2020 is furnished on or before the 24th day of June 2020
3. Taxpayers having an aggregate turnover of up to rupees 1.5 crores in the preceding financial year
February, 2020 If return in FORM GSTR3B is furnished on or before the 30th day of June,2020
March, 2020 If return in FORM GSTR3B is furnished on or before the 3rd day of July,2020
April, 2020 If return in FORM GSTR3B is furnished on or before the 6th day of July2020.”.
This notification shall be deemed to have come into force with effect from the 20th day of March, 2020.
https://cbic-gst.gov.in/pdf/central-tax/notfctn-32-central-tax-english-2020.pdf
