GST Updates: September 2018

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September 15, 2018
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September 18, 2018
This is an update covering the recent amendments in GST law consequent to notification issued during the month of September 2018. Following areas are covered:
  1. GST Returns filing timelines
  2. Filing of Annual return and Audit Report
  3. Implementation of TDS and TCS provision under GST.
  4. Filing & timelines of ITC-04.
  5. Clarifications on refund related issues.
  6. Documentary requirements for claiming ITC.
Nature of Compliance
Type of Taxpayers
Due Date
GSTR1, GSTR 3B and tax payment
Newly migrated taxpayers*
July 2017 to November 2018
Monthly / quarterly
All taxpayers
July 2017 to September 2018
Monthly / quarterly
Taxpayers with turnover exceeding INR 15 million
October 2018 to March 2019
11th of the succeeding month
Taxpayers with turnover up to INR 15 million
October 2018 to March 2019
Last day of the month succeeding the quarter
GSTR 3B and tax payment
All taxpayers located in Kerala, Kodagu district in Karnataka and Mahe in Puducherry
Taxpayers located in Kerala, Kodagu district in Karnataka and Mahe in Puducherry with turnover exceeding INR 15 million
Taxpayers located in Kerala, Kodagu district in Karnataka and Mahe in Puducherry with turnover up to INR 15 million
July 2018 to September 2018

Summary of Notifications and Circulars issued on 4 September 2018

Notification No.
39/2018 – Central Tax
Amendment of Central GST Rules to prescribe the format for annual return to be furnished in Form GSTR9 / GSTR9A. The due date to file the annual return for the period July 2017 to March 2018 is 31 December 2018.
40/2018 – Central Tax
Extension in the time limit for making declaration in Form GST ITC-04 for the period July 2017 to June 2018, to 30 September 2018. Details of goods / capital goods sent to job worker and received back are required to be furnished in this form.
41/2018 – Central Tax
Waiver of late fee payment in the following cases:
(i)     where return in Form GSTR3B for October 2017 was submitted online on GSTN portal, but was not filed;
(ii)    where return in Form GSTR 4 for the quarter October to December 2017 was filed on timely basis but late fee was erroneously levied on GSTN portal; and
(iii)   where late fee has been paid by ISD for filing the GST return in Form GSTR6 during the period 1 January 2018 to 23 January 2018
42/2018 – Central Tax
Extension in the time limit for furnishing declaration in Form ITC-01 for 30 days. The benefit of extended time limit would only be available if the Form CMP-04 has been furnished between 2 March 2018 and 31 March 2018
57/31/2018 – GST
Scope of principal-agent relationship in the context of Schedule I of the CGST Act
It has been clarified that the crucial point for determining the principal – agent relationship is whether or not the agent has the authority to pass on or receive the title of the goods on behalf of the principal. In other words, it can be decided by determining whether the invoice for further supply of goods on behalf of the principal is being issued by the agent or not.
58/31/2018 – GST
Process of recovery of arrears of wrongly availed CENVAT credit or inadmissible transitional credit
While the Board had already clarified that any arrears of tax under the erstwhile law would be recovered as central GST liability, the functionality to record this liability under Part II of the electronic liability ledger was not available on GSTN. Hence, as an alternative, it has now been clarified that the taxpayers are required to reverse the wrongly availed CENVAT credit or the inadmissible transitional credit in Form GSTR3B and also pay appropriate interest and penalty through Form GSTR3B.
inadmissible transitional credit in Form GSTR3B and also pay appropriate interest and penalty through Form GSTR3B.
59/31/2018 – GST
Clarifications on refund related issues:
(i)     A refund claim is not required to be accompanied by invoices relating to inputs, capital goods and input services. A copy of Form GSTR2A submitted along with the refund claim will be sufficient. However, details of input invoices will have to be furnished in the prescribed format
(ii)    Reversal of the refund claimed to be debited from Input Tax Credit ledger in the following manner (a) First IGST and (b) subsequently equally from CGST and SGST;
(iii)   Refund of tax paid cannot be claimed by those purchasers/ importers who are directly purchasing/ importing supplies on which the benefits of reduced/ nil incidence of tax is availed by them under certain specified notifications;
(iv)  In case a deficiency memo in FORM GST RFD-03 has been issued, the refund claim will have to be filed afresh;
(v)    No Show Cause Notice / order can be issued in respect of refund applications against which deficiency memo has been issued, where no subsequent refund claims have been filed;
(vi)  After receipt of refund sanction order from the counterpart tax authority, disbursement of the refund claim cannot be withheld; and
(vii) Refund shall not be provided where the amount of refund separately under each tax head is less than INR 1,000
60/31/2018 – GST
Processing of refund applications filed by Canteen Stores Department (CSD)
CSDs are required to file quarterly refund claims for refund of an amount equivalent to 50% of the applicable taxes paid by them on all inward supplies of goods received.
Given that the online utility for submission of such refund claim is not yet available on GSTN, the refund application will have to be submitted physically. Certain documents as mentioned in the circular will be required to be enclosed with the refund application.
61/31/2018 – GST
E-way bill requirements in case of storing of goods in godown of the transporter
In order to ease the difficulties faced by the transporters and the consignee/ recipient taxpayers in relation to the movement of goods from the supplier’s location to transporter’s godown and then to the recipient taxpayer’s location, a circular suggesting alternative methods for e-way bill compliance has been issued.
It is clarified that the transporter’s godown will be required to be declared as an additional place of business by the recipient taxpayer. If this is done, the e-way bill will conclude once goods reach the transporter’s godown and extension of validity of the e-way bill will not be required in such cases.
Further, for transfer of goods from the transporter’s godown to the recipient taxpayer’s  any other place of business, a fresh valid e-way bill will be required.
Documentary requirement and conditions for claiming ITC:  For taking ITC, all the particulars as required to be mentioned in invoice/ BE / debit note /ISD invoice etc. as per Rule 45 to 55 of CGST Rules, 2017 are not necessary. ITC can be taken as long as the following six particulars are mentioned therein in the documents:
  1. Amount of Tax Charged,
  2. Description of goods or services,
  3. total value of supply of goods or services or both,
  4. GSTIN of the supplier,
  5. GSTIN of the recipient and
  6. Place of supply in case of inter-State supply.
Extension of time limit for making declaration in ITC-04 and Revised GST ITC – 04:
Extension of time limit:
Notification 40/2018-Central Tax dated 04.09.2018 issued Extends the time limit for making the declaration in FORM GST ITC-04, in respect of goods dispatched to a job worker or received from a job worker or sent from one job worker to another, during the period from July, 2017 to June, 2018 till the 30th day of September, 2018.
Revised GST ITC-04
The details of challans in respect of goods dispatched to a job worker or received from a job worker or sent from one job worker to another during a quarter.
New form GST ITC-04 substituted with more columns taking care of following multiple situations, along with losses and wastes-
  1. Details of inputs/ capital goods received back from job worker to whom such goods were sent for job work
  2. Details of inputs / capital goods received back from job worker other than the job worker to whom such goods were originally sent for job work;
  3. Details of inputs/ Capital goods sent to job worker and subsequently supplied from premises of job worker.
 Documents and devices to be carried by a person-in-charge of a conveyance:
In case of imported goods, the person in charge of conveyance shall also carry a copy of the bill of entry filed by the importer of such goods and shall indicate the number and date of the bill of entry in Part A of FORM GST EWB-01.”
Applicability of  TDS & TCS Provisions w.e.f, 01st October 2018:
Central Government vide notification No.50 & 51-Central Tax-Dated 13-09-2018 has notified October 1 as the date for implementing the tax deducted at source (TDS) and tax collected at source (TCS) provision under GST law.
Applicability of TDS Provisions
Accordingly following persons are required to collect TDS at 1 per cent on payments to goods or service suppliers in excess of Rs. 2.5 lakhs. Also state will levy
  1. % TDS under state laws:
  2. a department or establishment of the Central Government or State Government,
  3. Local Authority,
  4. Governmental Agencies,
  5. an authority or a board or any other body, – (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with fifty-one per cent. or more participation by way of equity or control, to carry out any function,
  6. Society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860) and
  7. Public sector undertakings.
Applicability of TCS Provisions
E-commerce companies will now be required to collect up to 1 % TCS making any payment to suppliers under the GST. States too can levy up to 1% TCS under SGST law.
CBIC Issued Reconciliation Form In FORM GSTR-9C And Audit Report:
Central Board of Indirect Taxes and Customs has notified FORM GSTR-9C for reconciliation statement and audit report format (certification) where the reconciliation statement (FORM GSTR-9C) is drawn up by the person who had conducted the audit and other than by the person who had conducted the audit.
Update Prepared By:
Himanshu Vikal, Charterd Accountant
Outcome Solutions & Services LLP.