Clarification
on GST
|
An advance is received
by
a supplier for a Service contract which
subsequently
got cancelled |
The supplier is required to issue a
“credit note” in terms of section 34 of
the CGST Act. Tax liability shall be adjusted in
the return. Excess payment of tax, if any”
through FORM GST RFD-01 |
|
An advance is received
by
a supplier for a Service contract which
got cancelled subsequently |
He is required to issue
a “refund voucher” in
terms of section
31 (3) (e) of the CGST Act read with rule 51 of the CGST Rules. FORM GST RFD-01 under the category “Refund of excess payment of
tax”. |
|
Goods
supplied by a supplier under cover of a tax invoice are
returned by the
recipient |
The supplier is required to issue a “credit note” in
terms of section 34 of the CGST Act. Tax liability shall be adjusted in the return. Excess payment of tax |
|
Letter
of Undertaking
(LUT) furnished for the
purposes of zero- rated supplies
expired on 31.03.2020 |
Notification No.
35/2020
Central
Tax
dated 03.04.2020, statement or such
other record falls
during between the period from 20.03.2020 to 29.06.2020, has been extended
till 30.06.2020. Supply without
payment of
tax under LUT
provided that
the FORM GST
RFD-11 |
|
Payment
to recipient, amount
equivalent to one
per
cent was
deducted as
per the
provisions
of section 51. Whether
the date of deposit of such payment
has also been extended vide notification N.
35/2020-Central
Tax dated 03.04.2020? |
The same
has been extended till 30.06.2020 along with
deposit
of tax deducted for the
said period has also been extended till
30.06.2020 |
|
Section 54 (1), a person is
required to make an application before
expiry of two
years from the relevant date.
Application for refund expires
on 31.03.2020, can such person
make an application
for refund before 29.07.2020? |
Falls during the period from
20.03.2020 to 29.06.2020, the same has been extended till
30.06.2020 |
[Circular No.
137/07/2020-GST
dated 13 April 2020]
Subject: Clarification in respect of certain challenges faced by the
registered persons in
implementation of provisions of
GST
Laws.
Circular No.136/06/2020-GST, dated 03.04.2020 had been issued
to
clarify doubts regarding relief measures taken by the Government for facilitating
taxpayers in
meeting the compliance requirements under various provisions of the Central Goods and Services Tax Act,
2017
(hereinafter referred to as the “CGST Act”) on account of
the measures taken to prevent
the
spread of Novel Corona Virus (COVID-19).
It has been
brought to the notice of the Board that certain challenges are being faced by taxpayers in adhering to the compliance requirements under various other provisions of
the
CGST Act which
also
need
to be clarified.
2. The issues raised have been examined and in order to ensure
uniformity in the implementation of the provisions of
the
law across the field
formations, the Board, in
exercise
of its powers conferred under
section
168(1) of the CGST Act hereby clarifies as under:
|
S. No. |
Issue |
Clarification |
|
1. |
An advance is received
by
a supplier for a Service contract which
subsequently
got cancelled. The
supplier has issued the invoice
before supply of service and paid the
GST
thereon. Whether he
can claim refund of tax paid or is he required to adjust
his tax liability
in his returns ? |
In case GST is paid by the supplier on advances received for a future event which got cancelled subsequently and for which invoice is issued before supply of service, the supplier is required to issue a
“credit note” in terms of section 34 of
the CGST Act. He shall declare the details of such credit
notes in the
return for the month during which such credit note
has been issued. The tax liability shall be adjusted in
the return subject to conditions of section 34 of the CGST
Act.
There is no need
to file a separate refund
claim. However, in cases where there
is
no output liability against
which a credit note can be adjusted, registered persons may proceed to file a claim under “Excess payment of tax, if any” through FORM GST RFD-01. |
|
2. |
An advance is received
by
a supplier for a Service contract which
got cancelled subsequently. The
supplier has issued
receipt voucher
and paid the
GST on such
advance received. Whether he
can claim refund of
tax paid on advance or he
is required to adjust his tax liability
in
his returns? |
In case GST is paid by the supplier on advances received for
an
event which got cancelled subsequently and for which no
invoice has been issued in terms of section 31 (2) of the
CGST Act, he is required to issue
a “refund voucher” in
terms of section
31 (3) (e) of the CGST Act read with rule 51 of the CGST Rules. The taxpayer can apply for refund of GST
paid on such advances by filing FORM GST RFD-01 under the category “Refund of excess payment of
tax”. |
|
3. |
Goods
supplied by a supplier under cover of a tax invoice are
returned by the
recipient. Whether he
can claim refund
of tax paid or is he
required to adjust his tax liability
in
his returns? |
In such a case where the goods
supplied by a supplier are returned by the recipient
and where tax invoice
had been issued, the supplier
is
required to issue a “credit note” in
terms of section 34 of the CGST Act. He shall declare
the details of such credit notes in the return for the month during which such credit note has been issued. The tax liability shall
be adjusted in the return subject to conditions of section 34
of the
CGST Act. There is no need to file a separate refund claim in
such
a case. However, in cases where there
is
no output liability against
which a credit
note can be adjusted, registered persons may proceed to file a claim under “Excess payment of tax, if any” through FORM GST RFD-01. |
|
4. |
Letter
of Undertaking
(LUT) furnished for the
purposes of zero- rated supplies as per provisions of section
16 of the Integrated
Goods and Services Tax Act, 2017 read with rule 96A
of the CGST
Rules has expired
on 31.03.2020. Whether a registered
person can still make a zero-rated supply on such LUT and claim refund accordingly
or does he have to make
such
supplies on payment of IGST and
claim refund of
such
IGST? |
Notification No. 37/2017-Central
Tax, dated 04.10.2017,
requires LUT to be furnished
for a financial year. However,
in terms of notification
No. 35/2020 Central
Tax
dated 03.04.2020, where the
requirement under the
GST Law for
furnishing of any report, document, return,
statement or such other record falls
during between the period from 20.03.2020 to 29.06.2020, has been extended
till 30.06.2020. Therefore, in terms of Notification
No. 35/2020-Central Tax, time limit for filing of LUT
for the year 2020-21 shall stand extended to
30.06.2020 and the taxpayer can continue to make the
supply without payment
of tax under LUT provided that
the FORM GST
RFD-11 for 2020-21 is
furnished on or before 30.06.2020. Taxpayers may quote the
reference no of the LUT for
the year 2019-20 in the relevant documents. |
|
5. |
While
making the
payment to recipient,
amount equivalent to one
per
cent was
deducted as
per the
provisions
of section 51 of Central
Goods and Services Tax Act,
2017 i. e. Tax Deducted at Source
(TDS). Whether the
date of deposit of such
payment has also
been
extended vide notification N.
35/2020-Central
Tax dated 03.04.2020? |
As per notification No.
35/2020-Central Tax
dated 03.04.2020, where the timeline for any compliance required
as
per sub-section
(3) of section
39 and section 51 of
the Central Goods
and Services Tax Act, 2017 falls during the
period from 20.03.2020 to 29.06.2020, the same
has been extended till 30.06.2020. Accordingly, the
due date for furnishing of return in FORM GSTR-7
along with deposit of tax deducted for the said period has also been extended
till 30.06.2020 and no interest under section 50 shall be leviable if tax deducted
is
deposited by 30.06.2020. |
|
6. |
As per section 54 (1), a person is
required to make an application before
expiry of two
years from the relevant date.
If in a particular case, date for making an
application for refund expires
on 31.03.2020, can such person
make an application
for refund before 29.07.2020? |
As per notification No.
35/2020-Central Tax
dated 03.04.2020, where the timeline for any compliance required as per sub-section
(1) of section
54 of the Central Goods and Services Tax Act, 2017 falls during the period from 20.03.2020 to 29.06.2020, the same has been extended till
30.06.2020. Accordingly, the due date for filing an
application for refund falling during the said period has also been
extended
till 30.06.2020. |
4. It is requested that suitable trade notices may be issued to
publicize the contents of
this
circular.
5. Difficulty, if any, in the implementation of the above instructions may please be brought
to the notice of the Board.
CBEC-20/06/04-2020 -GST