B J S And Associates

GST recent updates for the month of May 2020

Update on Last week’s Important Notifications and Judgements

  1. Notification No. 38/2020 Dated 05-05-2020
  1. By Insertion of Sub rule 1 to Rule 20, Companies are now allowed to file returns through EVC from the period of 21-04-2020 to 30-06-2020 (Earlier companies were required to file return through DSC Only).
  2. By insertion or rule 67A, Nil Return in form GSTR 3B can be filed through a short messaging service through registered mobile number and verification based on OTP received on such number. (Nil return means no entry in any table of form GSTR 3B)
  1. Notification No. 39/2020 Dated 05-05-2020

The Corporate debtors who have furnished returns u/s 37 and 39 (GSTR 1 and 3B) for all tax period prior to appointment of Interim Resolution Professions (IRP) or Resolution Professionals (RP), are excluded from notification no. 11/2020 dated 21-03-2020.

In Notification No. 11/2020, Corporate debtors under provisions of IBC, 2016 and undergoing Insolvency process were required to take new registration in each states and UT where they were registered earlier within 30 days of appointment of IRP/RP.

  1. Extension of due dates by multiple notifications
Notification No.Applicable toFormPeriodExtended to
40/2020 dated 05/05/2020IndiaE-way billE-way bills generated before 24/03/2020 and validity expiring between 20/03/2020 to 15/04/202031-05-2020
41/2020 dated 05/05/2020IndiaGSTR 9 & 9CFY 2018-1930-09-2020
42/2020 dated 05/05/2020J&KGSTR 3BNov-19 to Feb-2024-03-2020
42/2020 dated 05/05/2020LadakhGSTR 3BNov-19 to Dec-1924-03-2020
42/2020 dated 05/05/2020LadakhGSTR 3BJan-20 to Mar-2020-05-2020
  1. Important Judgements
  1. Brand Equities Treaties Ltd vs UOI (Delhi HC) – Filing of TRAN 1 Allowed till 30/06/2020.
  • CENVAT credit which stood accrued and vested is the property of the assessee and is a constitutional right under Article 300A of the Constitution – same cannot be taken away merely by way of a delegated legislation by framing rules without there being any overarching provision in the GST Act.
  • procedure could not run contrary to the substantive right vested under sub-section (1) of section 140 of the Act. No consequences are provided in rule 117 for failure to file TRAN 1. So these has to be read as directory and not mandatory.
  • Rule 117 (1A) provides benefit to taxpayers who have faced technical difficulties. There is no definition for such term and limiting the term to difficulties existing on common portal shall be incorrect. Intention of inserting sub rule was to save and protect the right of taxpayers to avail Cenvat Credit lying in their account. Therefore, other problems apart from those existing on common portal shall also be considered. It cannot be arbitrary or discriminatory if it must muster Article 14 of Constitution.
  • all the petitioners have filed or attempted to file form TRAN-1 within the aforesaid period of three years they shall be entitled to avail the Input Tax Credit accruing to them – They are thus, permitted to file relevant TRAN-1 form on or before 30.06.2020 (based on Limitation act)
  • Respondents are directed to either open the online portal to enable the petitioners to file the declaration TRAN-1 electronically or accept the same manually

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