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Circular No. 138/8/2020 – Clarifying ‘issues in respect of challenges faced by the registered persons in implementation of provisions of GST Laws

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Circular​​ No.​​ 138/08/2020-GST

 

 

CBEC-20/06/04-2020​​ -GST

Government​​ of​​ India​​ Ministry​​ of​​ Finance​​ Department​​ of​​ Revenue

Central​​ Board​​ of​​ Indirect​​ Taxes​​ and​​ Customs​​ GST​​ Policy​​ Wing

 

New​​ Delhi,​​ dated​​ the​​ 06th​​ May,​​ 2020

 

 

To

The​​ Principal​​ Chief​​ Commissioners​​ /​​ Chief​​ Commissioners​​ /​​ Principal​​ Commissioners​​ /​​ Commissioners​​ of​​ Central​​ Tax​​ (All)

 

The​​ Principal​​ Director​​ Generals​​ /​​ Director​​ Generals​​ (All)​​ Madam/Sir,

Subject:​​ Clarification​​ in​​ respect​​ of​​ certain​​ challenges​​ faced​​ by​​ the​​ registered​​ persons​​ in​​ implementation​​ of​​ provisions​​ of​​ GST​​ Laws-reg.

 

Circular​​ No.136/06/2020-GST,​​ dated​​ 03.04.2020​​ and​​ Circular​​ No.137/07/2020-GST,​​ dated​​ 13.04.2020​​ 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).​​ Post​​ issuance​​ of​​ the ​​ said​​ clarifications,​​ certain​​ challenges​​ being​​ faced​​ by​​ taxpayers​​ in​​ adhering​​ to​​ the​​ compliance​​ requirements​​ under​​ various​​ other​​ provisions​​ of​​ the​​ CGST​​ Act​​ were​​ brought​​ to​​ the​​ notice​​ of​​ the​​ Board,​​ and​​ 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:

 

 

Sl.​​ No.

Issue

Clarification

Issues​​ related​​ to​​ Insolvency​​ and​​ Bankruptcy​​ Code,​​ 2016

1.

Notification​​ No.​​ 11/2020​​ ​​ Central​​ Tax​​ dated​​ 21.03.2020,​​ issued​​ under​​ section​​ 148​​ of​​ the​​ CGST​​ Act​​ provided​​ that​​ an​​ IRP​​ /​​ CIRP​​ is​​ required​​ to​​ take​​ a​​ separate​​ registration

Vide​​ notification​​ No.​​ 39/2020-​​ Central​​ Tax,​​ dated​​ 05.05.2020,​​ the​​ time​​ limit​​ required​​ for​​ obtaining​​ registration​​ by​​ the​​ IRP/RP​​ in​​ terms​​ of​​ special​​ procedure​​ prescribed​​ vide​​ notification​​ No.​​ 11/2020​​ ​​ Central​​ Tax​​ dated

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Circular​​ No.​​ 138/08/2020-GST

 

 

 

within​​ 30​​ days​​ of​​ the​​ issuance​​ of​​ the​​ notification.​​ It​​ has​​ been​​ represented​​ that​​ the​​ IRP/RP​​ are​​ facing​​ difficulty​​ in​​ obtaining​​ registrations​​ during​​ the​​ period​​ of​​ the​​ lockdown​​ and​​ have​​ requested​​ to increase the​​ time​​ for​​ obtaining​​ registration​​ from​​ the​​ present​​ 30​​ days​​ limit.

21.03.2020​​ has​​ been​​ extended.​​ Accordingly,​​ IRP/RP​​ shall​​ now​​ be​​ required​​ to​​ obtain​​ registration​​ within​​ thirty​​ days​​ of​​ the​​ appointment​​ of​​ the​​ IRP/RP​​ or​​ by​​ 30th​​ June,​​ 2020,​​ whichever​​ is​​ later.

2.

The​​ notification​​ No.​​ 11/2020–​​ Central​​ Tax​​ dated​​ 21.03.2020​​ specifies​​ that​​ the​​ IRP/RP,​​ in​​ respect​​ of​​ a​​ corporate​​ debtor,​​ has​​ to​​ take​​ a​​ new​​ registration​​ with​​ effect​​ from​​ the​​ date​​ of​​ appointment.​​ Clarification​​ has​​ been​​ sought​​ whether​​ IRP​​ would​​ be​​ required​​ to​​ take​​ a​​ fresh​​ registration​​ even​​ when​​ they​​ are​​ complying​​ with​​ all​​ the​​ provisions​​ of​​ the​​ GST​​ Law​​ under​​ the​​ registration​​ of​​ Corporate​​ Debtor​​ (earlier​​ GSTIN)​​ i.e.​​ all​​ the​​ GSTR-3Bs​​ have​​ been​​ filed​​ by​​ the​​ Corporate​​ debtor​​ /​​ IRP​​ prior​​ to​​ the​​ period​​ of​​ appointment​​ of​​ IRPs​​ and​​ they​​ have​​ not​​ been​​ defaulted​​ in​​ return​​ filing.

  • The​​ notification​​ No.​​ 11/2020–​​ Central​​ Tax​​ dated​​ 21.03.2020​​ was​​ issued​​ to​​ devise​​ a​​ special​​ procedure​​ to​​ overcome​​ the​​ requirement​​ of​​ sequential​​ filing​​ of​​ FORM​​ GSTR-3B​​ under​​ GST​​ and​​ to​​ align​​ it​​ with​​ the​​ provisions​​ of​​ the​​ IBC​​ Act,​​ 2016.​​ The​​ said​​ notification​​ has​​ been​​ amended​​ vide​​ notification​​ No.​​ 39/2020​​ -​​ Central​​ Tax,​​ dated​​ 05.05.2020​​ so​​ as​​ to​​ specifically​​ provide​​ that​​ corporate​​ debtors​​ who​​ have​​ not​​ defaulted​​ in​​ furnishing​​ the​​ return​​ under​​ GST​​ would​​ not​​ be​​ required​​ to​​ obtain​​ a​​ separate​​ registration​​ with​​ effect​​ from​​ the​​ date​​ of​​ appointment​​ of​​ IRP/RP.

  • Accordingly,​​ it​​ is​​ clarified​​ that​​ IRP/RP​​ would​​ not​​ be​​ required​​ to​​ take​​ a​​ fresh ​​​​ registration​​ in​​ those​​ cases​​ where​​ statements​​ in​​ FORM ​​​​ GSTR-1​​ under​​ section​​ 37 ​​ and​​ returns​​ in​​ FORM​​ GSTR-3B​​ under​​ section​​ 39​​ of​​ the​​ CGST​​ Act,​​ for​​ all​​ the​​ tax​​ periods​​ prior​​ to​​ the​​ appointment​​ of​​ IRP/RP,​​ have​​ been​​ furnished​​ under​​ the​​ registration​​ of​​ Corporate​​ Debtor​​ (earlier​​ GSTIN).

3.

Another​​ doubt​​ has​​ been​​ raised​​ that​​ the​​ present​​ notification​​ has​​ used​​ the​​ terms​​ IRP​​ and​​ RP​​ interchangeably,​​ and​​ in​​ cases​​ where​​ an​​ appointed​​ IRP​​ is​​ not​​ ratified​​ and​​ a​​ separate​​ RP​​ is​​ appointed,​​ whether​​ the​​ same​​ new​​ GSTIN​​ shall​​ be​​ transferred​​ from​​ the​​ IRP​​ to​​ RP,​​ or​​ both​​ will​​ need​​ to​​ take​​ fresh​​ registration.

i.​​ In​​ cases​​ where​​ the​​ RP​​ is​​ not​​ the​​ same​​ as​​ IRP,​​ or​​ in​​ cases​​ where​​ a​​ different​​ IRP/RP​​ is​​ appointed​​ midway​​ during​​ the​​ insolvency​​ process,​​ the change​​ in​​ the​​ GST​​ system​​ may​​ be​​ carried​​ out​​ by​​ an​​ amendment​​ in​​ the​​ ​​ registration​​ form.​​ Changing​​ the​​ authorized​​ signatory​​ is​​ a​​ non-​​ core​​ amendment​​ and​​ does​​ not​​ require​​ approval​​ of​​ tax​​ officer.​​ However,​​ if​​ the​​ previous​​ authorized​​ signatory​​ does​​ not​​ share​​ the​​ credentials​​ with​​ his​​ successor,​​ then​​ the​​ newly​​ appointed​​ person​​ can​​ get​​ his​​ details​​ added through​​ the

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Circular​​ No.​​ 138/08/2020-GST

 

 

 

 

Jurisdictional​​ authority​​ as​​ Primary​​ authorized​​ signatory.

ii.​​ The​​ new​​ registration​​ by​​ IRP/RP​​ shall​​ be​​ required​​ only​​ once,​​ and​​ in​​ case​​ of​​ any​​ change​​ in​​ IRP/RP​​ after​​ initial​​ appointment​​ under​​ IBC,​​ it​​ would​​ be​​ deemed​​ to​​ be​​ change​​ of​​ authorized​​ signatory​​ and​​ it​​ would​​ not​​ be​​ considered​​ as​​ a​​ distinct​​ person​​ on​​ every​​ such​​ change​​ after​​ initial​​ appointment.​​ Accordingly,​​ it​​ is​​ clarified​​ that​​ such​​ a​​ change​​ would​​ need​​ only​​ change​​ of​​ authorized​​ signatory​​ which​​ can​​ be​​ done​​ by​​ the​​ authorized​​ signatory​​ of​​ the​​ Company​​ who​​ can​​ add​​ IRP​​ /RP​​ as​​ new​​ authorized​​ signatory​​ or​​ failing​​ that​​ it​​ can​​ be​​ added​​ by​​ the​​ concerned​​ jurisdictional​​ officer​​ on​​ request​​ by​​ IRP/RP.

Other​​ COVID-19​​ related​​ representations.

4.

As​​ per​​ notification​​ no.​​ 40/2017-​​ Central​​ Tax​​ (Rate)​​ dated​​ 23.10.2017,​​ a​​ registered​​ supplier​​ is​​ allowed​​ to​​ supply​​ the​​ goods​​ to​​ a​​ registered​​ recipient​​ (merchant​​ exporter)​​ at​​ 0.1%​​ provided,​​ inter-alia,​​ that​​ the​​ merchant​​ exporter​​ exports​​ the​​ goods​​ within​​ a​​ period​​ of​​ ninety​​ days​​ from​​ the​​ date​​ of​​ issue​​ of​​ a​​ tax​​ invoice​​ by​​ the​​ registered​​ supplier.​​ Request​​ has​​ been​​ made​​ to​​ clarify​​ the​​ provision​​ vis-à-vis​​ the​​ exemption​​ provided​​ vide​​ notification​​ no.​​ 35/2020-Central​​ Tax​​ dated​​ 03.04.2020.

  • Vide​​ notification​​ No.​​ 35/2020-Central​​ Tax​​ dated​​ 03.04.2020,​​ time​​ limit​​ for​​ compliance​​ of​​ any​​ action​​ by​​ any​​ person​​ which​​ falls​​ during​​ the​​ period​​ from​​ 20.03.2020​​ to​​ 29.06.2020​​ has​​ been​​ extended​​ up​​ to​​ 30.06.2020,​​ where​​ completion​​ or​​ compliance​​ of​​ such​​ action​​ has​​ not​​ been​​ made​​ within​​ such​​ time.

  • Notification​​ no.​​ 40/2017-Central​​ Tax​​ (Rate)​​ dated​​ 23.10.2017​​ was​​ issued​​ under​​ powers​​ conferred​​ by​​ section​​ 11​​ of​​ the​​ CGST​​ Act,​​ 2017.​​ The​​ exemption​​ provided​​ in​​ notification​​ No.​​ 35/2020-Central​​ Tax​​ dated​​ 03.04.2020​​ is​​ applicable​​ for​​ section​​ 11​​ as​​ well.

  • Accordingly,​​ it​​ is​​ clarified​​ that​​ the​​ said​​ requirement​​ of​​ exporting​​ the​​ goods​​ by​​ the​​ merchant​​ exporter​​ within​​ 90​​ days​​ from​​ the​​ date​​ of​​ issue​​ of​​ tax​​ invoice​​ by​​ the​​ registered​​ supplier​​ gets​​ extended​​ to​​ 30th​​ June,​​ 2020,​​ provided​​ the​​ completion​​ of​​ such​​ 90​​ days​​ period​​ falls​​ within​​ 20.03.2020​​ to​​ 29.06.2020.

5.

Sub-rule​​ (3)​​ of​​ that​​ rule​​ 45​​ of​​ CGST​​ Rules​​ requires​​ furnishing​​ of​​ FORM

Time​​ limit​​ for​​ compliance​​ of​​ any​​ action​​ by​​ any​​ ​​ person​​ ​​ which​​ ​​ falls​​ ​​ during​​ ​​ the ​​ period

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Circular​​ No.​​ 138/08/2020-GST

 

 

 

GST​​ ITC-04​​ in​​ respect​​ of​​ goods​​ dispatched​​ to​​ a​​ job​​ worker​​ or​​ received​​ from​​ a​​ job​​ worker​​ during​​ a​​ quarter​​ on​​ or​​ before​​ the​​ 25th​​ day​​ of​​ the​​ month​​ succeeding​​ that​​ quarter.​​ Accordingly,​​ the​​ due​​ date​​ of​​ filing​​ of​​ FORM​​ GST​​ ITC-04​​ for​​ the​​ quarter​​ ending​​ March,​​ 2020​​ falls​​ on​​ 25.04.2020.​​ Clarification​​ has​​ been​​ sought​​ as​​ to​​ whether​​ the​​ extension​​ of​​ time​​ limit​​ as​​ provided​​ in​​ terms​​ of​​ notification​​ No.​​ 35/2020-Central​​ Tax​​ dated​​ 03.04.2020​​ also​​ covers​​ furnishing​​ of​​ FORM​​ GST​​ ITC-04​​ for​​ quarter​​ ending​​ March,​​ 2020

from​​ 20.03.2020​​ to​​ 29.06.2020​​ has​​ been​​ extended​​ up​​ to​​ 30.06.2020​​ where​​ completion​​ or​​ compliance​​ of​​ such​​ action​​ has​​ not​​ been​​ made​​ within​​ such​​ time.​​ Accordingly,​​ it​​ is​​ clarified​​ that​​ the​​ due​​ date​​ of​​ furnishing​​ of​​ FORM​​ GST​​ ITC-04​​ for​​ the​​ quarter​​ ending​​ March,​​ 2020​​ stands​​ extended​​ up​​ to 30.06.2020.

 

 

  • It​​ is​​ requested​​ that​​ suitable​​ trade​​ notices may​​ be​​ issued​​ to​​ publicize​​ the​​ contents​​ of​​ this​​ circular.

 

  • Difficulty,​​ if​​ any,​​ in​​ the​​ implementation​​ of​​ the​​ above​​ instructions​​ may​​ please​​ be​​ brought​​ to​​ the​​ notice​​ of​​ the​​ Board.​​ Hindi​​ version​​ would follow.

 

 

 

(Yogendra​​ Garg)​​ Principal​​ Commissioner

y.garg@nic.in

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