TaxTMI Updates e-Newsletter
Aug 31,2021

Summary: Input tax credit under GST remains claimable by recipients even when invoices do not appear in auto-populated purchase records; non-reflection alone is not a ground to deny ITC. Although the statutory matching framework and administrative rules provide for communication of discrepancies and limit claimed credits relative to supplier-filed data, executive guidance and judicial decisions uphold the recipient's right to self-assess ITC. Revenue recovery provisions permit actions against defaulting suppliers, and authorities should pursue recovery from suppliers rather than deny recipients' credits solely for non-appearance in auto-populated returns.

Summary: Self-certification dispenses with mandatory audit and third party certification for filing GSTR 9 and GSTR 9C and, together with targeted exemptions, relieves smaller taxpayers from annual return and reconciliation filing; accompanying legislative and notification changes delete certification requirements and operationalise relief. The update also records authoritative rulings clarifying IGST export refunds vis a vis duty drawback, limits on revenue action prior to issuance of show cause notices, the scope of ITC blocking under Rule 86A, and several advance rulings on ITC admissibility for specific goods and services.

Summary: CBDT extended electronic filing due dates for specified Forms and statements under the Income tax Act and Rules: Form No.10A filings may be made by 31 March, 2022 and Form No.10AB with cutoffs on/before 28 February, 2022 may be filed by 31 March, 2022; Equalization Levy Form No.1 and assorted quarterly statements (Form No.15CC), uploads of Form No.15G/15H, SWF and Pension Fund intimations (Form II SWF and Form No.10BBB), and international group reporting Forms 3CEAC/3CEAD/3CEAE have been given staggered extensions to late November or 31 December, 2021 as specified in CBDT Circular No.16/2021.

Summary: The Government extended the late fee amnesty closing date for reduced or waived late fees on FORM GSTR-3B for affected tax periods, widened the filing window for revocation of cancellation of registration limited to cancellations under clause (b) or (c) of sub section (2) of section 29 of the CGST Act, and further permitted EVC-based filing for FORM GSTR-3B and FORM GSTR-1/IFF to facilitate compliance.

Summary: Extension of the Vivad se Vishwas payment deadline is announced for payments made without any additional amount due to operational difficulties in issuing and amending Form No. 3, which is a prerequisite for declarant payments under the Act; a formal notification will be issued shortly.

Summary: Substitutes in Notification No. 28/2021-Customs, paragraph 2, the date "31st August, 2021" with "30th September, 2021", thereby extending the operative period of the exemptions. The amendment is made under powers in the Customs Act read with the Finance Act and published as Notification No. 41/2021-Customs dated 30th August, 2021, without modifying other substantive terms of the principal notification.

Summary: The Government extends the time for filing applications for revocation of registration where registration was cancelled under specified cancellation clauses and the original filing deadline fell during the disruption period from early 2020 through August 2021, consolidating prior notifications and setting a single administrative cut off for those revocation applications.

Summary: The Government, under section 128 of the Central Goods and Services Tax Act, 2017, by Notification No. 33/2021 dated 29th August 2021, amends Notification No. 76/2018-Central Tax by substituting the earlier specified date in the ninth and tenth provisos with a later date, thereby extending the deadline applicable to those provisos and prolonging the period for concessional treatment of late FORM GSTR-3B filings.

Summary: The amendment extends a proviso deadline to the 31st day of October, 2021 and omits all provisos to that sub rule from 1st November, 2021. It inserts a proviso in the restrictions on electronic compliance to exempt the restriction for cases where returns or statements in specified GST return forms were not furnished for March-May, 2021 during the period from 1st May, 2021 to 18th August, 2021. FORM GST ASMT 14 is amended to add an order reference caption, remove wording regarding conducting business without registration despite liability, and add an Address field after Designation.

Summary: Extension of electronic filing deadlines is provided for applications for registration or approval in Form No.10A and Form No.10AB, Equalization Levy Statement in Form No.1, authorized-dealer quarterly statements in Form No.15CC, recipient declarations in Form No.15G/15H, Sovereign Wealth Fund and Pension Fund intimations in Form II SWF and Form No.10BBB, and international group reporting in Forms No.3CEAC, 3CEAD and 3CEAE, with specified revised final dates for each listed filing obligation.