Past tense, present deeds

Delhi High Court, Ruling-1  
Bharti Airtel Pvt. Ltd. –

Issue Involved:
Amendment of GSTR-3B filed

Facts:
With the introduction of GST Law, the telecom company got approximately 50 GST registrations all across the country. Due to significant difference in compliance in the implementation of new law, there were some technical changes for enabling GSTR-1/2/ and 3 which couldn’t be operationalized, through introduction of new Form GSTR-3B (summary form).
As the portal was not equipped to handle the transition from erstwhile regime to GST, led to several inadvertent errors like over reporting of output liability of erstwhile regime in GSTR-3B.
Details of ITC to be availed from GSTR-2 were not available, led to excess payment in cash, although actually the ITC was available.

In the absence of rationale for allowing rectification in the month for which the statutory return has been filed is contrary to the statutory scheme of the CGST Act which allows data filled by a registered person to be validated in that month itself, and thereafter any unmatched details to be rectified in the month in which it is noticed.
Accordingly, Rule 61 (5) Form GSTR-3B and Circular No. 26/26/2017-GST dated December 29, 2017 as ultra vires the provisions of CGST Act to the extent, not permitting the modification of the information to be filled in the return of the tax period to which such information relates. The aforesaid provisions are also impugned on the ground that they are arbitrary, in violation of Articles 14, 19(1) (g), 265 and 300A of the Constitution of India.

Decision:
On plain reading of Section 37, 38 and 39 of the CGST Act, output of a supplier is auto-populated and data has to be populated in GSTR-3 and tax has to be paid. But due to under developed technical software an amendment is made in CGST Rules, 2017 due to lackadaisical transition into regime.
Consequently a correction of errors in Form GSTR-3B in accordance with Form GSTR-1/2 is permitted as per Circular 7/7/2017-GST and Circular 26/26/2017-GST issued by CBEC.
The refund of excess cash balance can’t be claimed under Sec.49 (6) read with Sec. 54 of Act. Thus only alternative is utilization of the input tax credit by rectification under annual return/ GSTR-3B. The correction mechanism is critical to sustaining successful implementation of GST.

It was held to rectify the Form GSTR-3B and claim refund of excess tax paid.

Notification 38/2020- CGST
Authorities have permitted the filing of GST returns through EVC, instead of DSC, due to pandemic.

Notification 39/2020- CGST
GST registration by IRP (Insolvency Resolution Practitioner)/ RP (distinct from corporate debtor) in case of companies undergoing insolvency within thirty days of the appointment of the IRP/RP or by June 30, 2020, whichever is later, in case of non-compliance of monthly returns by existing corporate debtors.

Notification 39/2020- CGST
Due date to file E-way bill has been extended to May 31, 2020 expiring from March 20, 2020 onwards.

Notification 43/2020- CGST
Amendment in Section 140 of the CGST Act, 2017 (Form TRAN-1), as referred in Finance Bill, 2020 to restrict time limit to carry forward the CENVAT from erstwhile Indirect Tax to GST Law within 90 days of appointed day as mentioned in CGST Rules, 2017.

Circular 138/2020- CGST

• It is clarified that IRP/RP would require obtaining GST registration only in cases where, the Corporate Debtors are not complying with requirements of monthly GST filing.
• Further if RP and IRP are different individuals, consequent amendment may be made of authorized signatory in registration forms.
• Extension of applicable dates for Merchant Exporter of 90 days due March 20, 2020 to June 29, 2020 is extended to June 30, 2020.
• Due date of Form GST ITC-04 of quarter ending March’2020 is extended to June 30, 2020.

Another option of filing of GST Amendment Return is now available on GST Portal, although the form is not currently active.

Circular 19/2020- Customs
Under Truant scheme CBIC has introduced Faceless- e-Assessment process for proceedings under Customs Act. The scheme provides clearance of imported goods through complete digitalization mode.

GST Calendar –April and May, 2020

Extended Due Dates	Due Date Related To	Who needs to do the Compliance	Late Fee
June 04, 2020	GSTR-3B for the month of April 2020	Taxpayers having turnover of more than 5 crore	Rs. 100/- per day (*Int. at 9%, for return filed upto June24, 2020, post which Int. @18%)
June 27, 2020	GSTR-3B for the month of May 2020	Taxpayers having turnover of more than 5 crore	Rs. 100/- per day (*Int. @18%)
June 29, 2020	GSTR-3B for the month of March 2020	Taxpayers having turnover of less than 5 crore	Rs. 100/- per day (*Int. @18%)
June 29, 2020	GSTR-3B for the month of April 2020	Taxpayers having turnover of less than 5 crore	Rs. 100/- per day (*Int. @18%)
July 12/14, 2020	GSTR-3B for the month of May 2020	Taxpayers having turnover of less than 5 crore	Rs. 100/- per day (*Int. @18%)
June 30, 2020	GSTR-1 for the month of March and April 2020	Any Taxpayer	Rs. 200/- per day
June 30, 2020	GSTR-6 for the month of February 2020	Input Service Distributor	Rs. 50/- per day
June 30, 2020	GSTR-3B for the month of Jan to March 2020	Taxpayers having turnover of upto 1.5 crore	Rs. 200/- per day
July 31, 2020	GSTR-1 for the month of April to September 2020	Taxpayers having turnover of upto 1.5 crore	Rs. 200/- per day