Clarification regarding issued faced by taxpayers – COVID-19 By Rohit Kumar



Update Category

Clarification regarding issued faced by taxpayers – COVID-19

Update Source

Circular issued by CBIC on 13th April, 2020

Release No.

TM/GST/067 dated 15th April 2020


The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No 137/07/2020-GST dated 13th April 2020, with respect to certain challenges faced by the registered persons in implementation of provisions of GST Laws for the notifications issued pursuant to outbreak of COVID -19. 

Circular No.136/06/2020-GST, dated 03.04.2020 was been issued to clarify doubts regarding relief measures taken by the Government for facilitating taxpayers in meeting the compliance requirements under GST laws.

Certain challenges were highlighted to Government for complying to the requirements under various other provisions of the CGST Act which needed clarification.

Same is summarized in tabular manner for ease of understanding –

Cancellation of Service and Goods Contract (GST is paid) -

Supply Type

Nature of Event

Event as per Circular

Treatment Suggested

Services

Receipt of Advance

Tax Invoice is issued before supply of Service and Contract is Cancelled

i)      Issue Credit Note (u/s 34) for reduction in Tax Liability

ii)     If Adjustment of tax liability is not possible, claim refund (Refund Type – “Excess payment of Tax”)

Services

Receipt of Advance

Receipt Voucher is issued before supply of Service and Contract is Cancelled

Issue Refund Voucher Credit Note and claim refund (Refund Type – “Excess payment of Tax”)

Goods

Supply of Goods

Tax Invoice is issued and Goods are returned

iii)   Issue Credit Note (u/s 34) for reduction in Tax Liability

If Adjustment of tax liability is not possible, claim refund (Refund Type – “Excess payment of Tax”)

 Additional Issues clarified by the Circular -

Issue Type

Clarification

Refund Claim

Date of Filing of refund claim is between 20th March 2020 to 29th June 2020 – Same can be filed by 30th June 2020

LUT for 2020-21

i.           Due date for furnishing LUT for 2020-21 has been extended to 30th June 2020

ii.         LUT for 2019-20 may be quoted for exports made till that time

Deposit of GST TDS

Since the date for filing GSTR 7 (GST TDS Return) has been extended to 30th June, date for deposit of TDS is also extended to 30th June, 2020

 

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