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Corporate News *  Service tax penalty can’t survive when assessee acted on dept.’s own view of non-taxability: Delhi High Court. *  GST section 74 extended limitation questionable when form 26AS mismatch was already known: Karnataka High Court grants interim relief. *  CGST demand prima facie impermissible after state GST settlement under section 128A: Bombay High Court. *  Supreme Court asks GSTAT to sympathetically consider delay as taxpayers pursued remedy before wrong forum. *  Supreme Court stays Tripura High Court ruling protecting genuine buyers from ITC denial over supplier’s GST default. *  Diary entries alone can’t prove clandestine removal of goods: CESTAT quashes excise penalty on steel trader. *  Customs could investigate preferential tariff claims even before sec. 28DA: Delhi High Court. *  Customs dept. relied on fake AI generated case laws: supreme court quashes Rs. 425.28 crore penalty. *  No GST exemption in affiliation and annual registration charges for admission or conduct Of examinations: GSTAT. *  Mere invoices, cheque payments insufficient to establish genuine movement of goods: GSTAT restores Rs. 43.44 lakh ITC demand. *  Consolidated GST show cause notice covering multiple financial years is not without jurisdiction: Delhi High Court. *  Construction of independent houses on separate plots not taxable as ‘Residential Complex’ without common facilities: CESTAT. *  GST penalty exceeding statutory maximum unsustainable; Allahabad High Court quashes ? 50,000/- penalty after taxpayer filed return and paid late fee. *  GST order against standard chartered bank passed without hearing set aside by Bombay High Court. *  Retracted statements can’t be relied upon without cross-examination: CESTAT quashes gold confiscation. *  Burden to prove misclassification lies on customs department: CESTAT. *  CESTAT quashes Rs. 98 lakh excise demand on clearance of used refractory brick scrap. *  Service tax demand on irrigation works quashed: Karnataka High Court rules sale of goods component not taxable as service. *  GSTAT restores tax and penalty for transporting iron scrap without E-way bill citing intent to evade tax. *  Madras High Court stays GST recovery from directors without opportunity to show cause under section 89. *  Madras high court stays GST recovery notice against directors; finds prima facie case on applicability of section 79(1)(c). *  Procedural lapses can’t justify harsh punishment without serious customs breach: CESTAT quashes customs broker licence revocation. *  Service tax payable on land leasing and sports complex charges: CESTAT. *  Settled customs dispute can’t be reopened through Article 226 challenge to interest liability: Delhi High Court. *  Mere facilitation of customs clearance can’t establish knowledge of smuggling: Madras High Court. *  GST registration cancellation stayed: Allahabad High Court questions 99% ITC utilisation cap under rule 86B. *  Composition scheme lapses automatically on crossing Rs. 1.5 crore turnover: GSTAT. *  Gujarat High Court quashes GST cancellation orders after officer relied on non-existent AI-generated case laws. *  Importers liable for customs duty benefits availed through manipulated scrips: Delhi High Court. *  Procedural E-way bill lapse alone can’t justify penalty where genuine transaction and absence of tax evasion are established: GSTAT.
Subject News *  Documentary evidence dominates probe, further custody unwarranted: mumbai court grants bail in Rs. 22.44 crore customs duty evasion case. *  Business premises can’t remain sealed for non-participation in GST search: Allahabad High Court. *  GST pre-deposit must be refunded proportionately when taxpayer partly succeeds in appeal: Bombay High Court. *  Supreme Court grants 30 days to file GST appeal; keeps pre-deposit issue open due to deposit in parallel CGST proceedings. *  GST demand can’t exceed amount proposed in SCN: Allahabad High Court quashes Rs. 20.47 Crore order. *  Hundreds-of-crores GST demand and heavy 10% pre-deposit no ground to bypass statutory appeal: Punjab & Haryana High Court. *  Delhi High Court refuses to entertain challenge to gold confiscation due to statutory appeal remedy and unexplained delay. *  Procedural error in customs broker licence inquiry can be rectified through remand: Delhi High Court. *  GSTR-2A mismatch alone can’t justify ITC denial without invoice-wise verification; personal hearing mandatory: GSTAT. *  GST order passed without uploading personal hearing notices violates sec. 75(4): Allahabad High Court. *  TAX EVASION - Sec. 74 GST SCN quashed for not spelling out fraud, wilful misstatement or suppression: Allahabad High Court. *  STPI’s SOFTEX certification and NoC charges taxable as business support services: CESTAT. *  Suspicion can’t replace proof: CESTAT quashes penalty in alleged gold-smuggling operation. *   Limitation runs from communication of order: Madras High Court upholds rejection of delayed GST Appeals. *  Rajasthan High Court quashes GST demand over unsigned show cause notice. *  ITC recovery upheld where supplier failed to deposit GST: Rajasthan High Court. *  Customs commissioner’s empowered to make port trust liable for duty on pilfered goods: Supreme Court. *  Rectification proceedings can’t be used to challenge an uncontested GST assessment through a writ petition: Andhra Pradesh HC. *  GST proceedings against deceased proprietor unsustainable without notice to legal heir: GSTAT. *  Mere availment of ineligible self-assessed ITC doesn’t amount to suppression without evidence of fraud or wilful misstatement: GSTAT. *  Disposal of mining overburden by entity authorised by mining lease holder constitutes taxable service: CESTAT. *  Toll plaza data not mandatory for ITC refund: GSTAT. *  Disputed GST fraud allegations require investigation: Punjab and Haryana High Court makes interim bail absolute in alleged fraud and GST fraud case. *  Non-manufacturer contractor liable to deposit excess excise duty collected from buyer: CESTAT. *  GST order can’t reject taxpayer’s reply as “not satisfactory” without reasons: Madhya Pradesh High Court. *  Uncorroborated statements can’t establish alleged diversion of duty-free goods: CESTAT. *  Erection services were not liable to service tax prior to 10th september 2004: CESTAT. *  Sec. 74 GST notice must spell out statutory ingredients for invoking extended tax demand proceedings: Allahabad High Court. *  No jurisdictional bar under section 6(2)(b) in parallel CGST SGST proceedings: Delhi High Court refuses to bypass GST appeal remedy. *  Madras High Court remits GST demand for fresh adjudication after taxpayer claims it was unaware of SCN following business closure.  

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GST Update on Notification 31/2020 & 32/2020 dt.03.04.2020 - 003/2020-21

GST Update on Notification 31/2020 & 32/2020 dt.03.04.2020 - 003/2020-21

Due to the current pandemic over COVID-19, Finance Minister has provided various relief from the compliances under the GST. Now, CBIC vide its notification has notified and provided the relaxations. The applicable interest of only 9% if the Returns for the period of Feb 2020, March 2020 & April 2020 are filed as per the conditions mentioned the Notfn.No.31/2020. Moreover, late fees on delayed filing of GSTR 3B has also been waived for the month of Feb March and April 2020 on certain conditions.

No due dates have been extended for GSTR 3B returns for the period Feb, March & April 2020. However, late fees are waived and either the applicable interest has been waived or lowered to provide relief to the taxpayers to pay their dues. These reliefs are discussed in following paras:-

1.       Where Turnover is more than Rs.5 crore in the previous FY.
· 9% of Interest shall be chargeable after the 15 days from the due date for filing of GSTR 3B for the month of Feb March April 2020, if the said GSTR 3B returns are filed on or before 24th June 2020. This will be clear from a example. As the due date of filing of return for the month of March 2020 is April 20, 2020. If we file return within 15 days from this due date then there will be no interest. But if we file after 15 days but before June 24, 2020 then interest @ 9% will be charged.
· However, if the Returns has been filed after June 24, 2020  then interest of 18% shall be applied on the net tax liability for the entire period starting from due date as per the Circular 136/06/2020 dt 03.04.2020. Following the above example, if we file return for the month of March 2020 after June 24, 2020 then interest will be charged @ 18% right from April 20, 2020 to the date of filing of return.
· A point to be noted here is that Sec 50 has not been amended till date, where the interest shall be chargeable on the net tax liability was to be amended retrospectively as per the press release dated 14th March 2020. Therefore the department will ask the interest liability shall be applied on the gross tax liability for the said period. We are explaining the complete issue in detail by a separate update.
· As per Notification 32/2020 dt 03.04.2020, late fees shall also be waived if we file the return by June24, 2020. However, the late fees shall be levied if the return is filed after this date. The same has also been clarified vide Circular 136/06/2020 dt.03.04.2020.
·  The last fee for GSTR-1 is also waived in the same fashion but again the due date has not been extended. The implications of the same is explained in a separate update.

2.       Where the Turnover is more than 1.5 crores but upto Rs.5 Crores.
· No late fee and interest shall be applicable for the GSTR-3B returns filled after due date for filing of GSTR 3B for the month of Feb & March 2020, if the said GSTR 3B returns has been filed before 29th June 2020. Similarly, no late fee and interst if GSTR 3B for the month of April 2020 is filedbefore 30th June 2020.
· However, if the Returns has been filed after 29th June 2020 & 30th June for the month of Feb March & April respectively, interest of 18% shall be applied as per the Circular 136/06/2020 dt 03.04.2020
· The late fee for GSTR-1 is also waived in the same fashion.
 
3.       Where the Turnover is up-to 1.5 crores
·  No interest shall be applicable for the Returns filled after the due date for filing of GSTR 3B for the month of Feb March & April 2020, if the said GSTR 3B returns has been filed before 30th June 2020 , 3rd July 2020 & 6th July 2020 respectively.
·  However, if the Returns has been filed after 30th June 2020 3rd July 2020 & 6th July 2020 for the month of Feb March & April respectively, interest of 18% shall be applied as per the Circular 136/06/2020 dt 03.04.2020
· As per Notification 32/2020 dt 03.04.2020 Late fees shall also be waived till the period of 30th June 2020 3rd July 2020 & 6th July 2020. However, the late fees shall be levied if the return is filed after 30th June 2020 3rd July 2020 & 6th July 2020for the said periods. The same has also been clarified vide Circular 136/06/2020 dt.03.04.2020
 
 
This is solely for educational purpose.

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