gst newsletter 28-12-2019 - icsi · 2019. 12. 31. · gstnewsletter˜ 5 form gst drc-03 intimation...

CONTENTSPg.

GST Statistical Updates ........................................................................... 02

GSTR 3B Filed from November, 2018 to October, 2019 ........................... 03

Break-Up of GST Collection.......................................................................... 04

Form GST DRC-03.......................................................................................... 05

FAQs on DRC-03 ............................................................................................ 06

Blocking and Unblocking of EWB Generation Facility at E-Way Bill Portal ........................................................................... 07

Decisions Taken in 38th Gst Council Meeting Held on 18th Dec.,19 .................................................................................... 10

Notifi cations .................................................................................................. 11

Circulars & Orders ........................................................................................ 17

E-Invoice System Concept Note, Standard, Schema and Template ....... 21

FAQS on E-Invoice System at GST Portal- Part I ........................................ 28

GST Quiz ......................................................................................................... 31

2 |GSTNEWSLETTER

GST Collections

Trends in GST Collection

GST Revenue collection for November, 2019 stood at `1,03,492 crore.

Source: www.pib.gov.in

120,000

110,000

100,000

90,000

80,000

GST Collection in Crore

94,726

102,503

97,247

106,577

113,865

100,289 99,939102,083

98,202

91,916

95,380

103,492

Dec.,18 Jan.,19 Feb.,19 Mar.,19 Apr.,19 May.,19 June,19 Jul.,19 Aug.,19 Sep.,19 Oct.,19 Nov.,19

Gross GST Collection Apr’19-Nov’19 (Rs. in crore)120000

100000

80000

60000

40000

20000

0

2018-19

2019-20

April May June July August September October November

1034

59 1138

65

9401

610

0289

9561

099

939

9648

310

2083

9396

098

202

9444

291

916

1007

1095

380

9763

710

3492

GST Statistical Updates

GSTNEWSLETTER| 3

GSTR 3B Filed from Nov., 2018 to Oct., 2019

Sr. No FOR THE MONTH UPTO In Lakh

1 November, 2018 31st December, 2018 72.44

2 December, 2018 31st January, 2019 73.30

3 January, 2019 28th February, 2019 73.48

4 February, 2019 31st March, 2019 75.95

5 March, 2019 30th April, 2019 72.13

6 April, 2019 31st May, 2019 72.45

7 May, 2019 30th June, 2019 74.38

8 June, 2019 31st July, 2019 75.79

9 July, 2019 31st August, 2019 75.80

10 August, 2019 30th September, 2019 75.94

11 September, 2019 31st October, 2019 73.83

12 October, 2019 30th November, 2019 77.83

Source: http://pib.gov.in

Number of GSTR-3B Filed

79.00

78.00

77.00

76.00

75.00

74.00

73.00

72.00

71.00

70.00

69.00

72.44

73.3073.48

75.95

72.1372.45

74.38

75.79 75.80 75.94

73.83

77.83

Dec/18

Jan/19

Feb/1

9

Mar/19

Apr/19

May/19

Jun/19

Jul/19

Aug/19

Sep/1

9

Oct/19

Nov/19

(in Lakh)

4 |GSTNEWSLETTER

Out of total GST collection of `1,03,492 crore, in the month of November, 2019 CGST is `19,592 crore, SGST is `27,144 crore, IGST is `49,028 crore (including `20,948 crore collected on imports) and Cess is `7,727 crore (including `869 crore collected on imports).

Source: http://pib.gov.in

GST Collections in October, 2019

47%

8%19%

26%

CGST SGST IGST (Including Imports) CESS (Including Imports)

Forms Period Due Date Remarks

GSTR-1 Nov-19 11th Dec , 2019 Turnover greater than ̀1.50 Crore or opted to fi le monthly Return

GSTR-1 Oct-Dec-19 31st Jan, 2020 Quarterly return for registered persons with aggregate turnoverup to `1.50 Crores

GSTR-3B Nov-19 23rd Dec, 2019 All registered Persons required to pay GST and fi le Monthly GST Return

GSTR-5 Nov-19 20th Dec, 2019 For non-resident persons required to pay GST and fi le Monthly GST Return

GSTR 5A Nov-19 20th Dec, 2019 Non-resident OIDAR services providers required to fi le Monthly GST Return

GSTR-6 Nov-19 13th Dec, 2019 Every Input Service Distributor (ISD Return)

GSTR 7 Nov-19 10th Dec, 2019 Filed by person liable to deduct TDS

GSTR-8 Nov-19 10th Dec, 2019 Filed by E-Commerce Operators liable to deduct TCS

GSTR-9 2017-18 31st Jan, 2020 Annual Returns Filed by Regular Taxpayer

GSTR-9C 2017-18 31st Jan, 2020 Reconciliation statement & Certifi cation

CMP-08 Oct-Dec-19 18th Jan, 2020 Statement for payment of self- assessed tax

RFD-10 - - Eighteen months after end of the quarter for which refund is to be claimed

Source: http://gst.gov.in

Break-up of GST Collection

GSTNEWSLETTER| 5

Form GST DRC-03Intimation of Payment Made Voluntarily or Made

Against the Show Cause Notice (SCN) or Statement

Form GST DRC-03 is a payment form in which a taxpayer can pay the tax by raising its liability voluntarily or in response to the show cause notice (SCN) raised by the Department.

Features of Making Payment on Voluntary Basis (Form GST DRC-03) on GST Portal1) Making Voluntary Payment on GST Portal:

A facility is given to taxpayers to make payment on voluntary basis, through Form GST DRC-03 (refer Rule 142(2) or 142(3) of the CGST Rules, 2017). Login into GST Portal and navigate to Services > User Services > My Applications and Select the Intimation of Voluntary Payment - DRC – 03, from the Application Type drop-down list.

2) When to make Payment Voluntary Payment: Payment can be voluntarily made by taxpayer for a self-ascertained liability or in response to the show cause notice (SCN) raised by the tax authorities, u/s 73 or 74 of the CGST Act, 2017, within 30 days of issuance of SCN or even before issuance of the SCN.

3) Partial Payment not allowed: GST Portal does not allow for making partial payments of the amount stated in the SCN.

4) Cause of Payment: Payments through Form GST DRC-03 can be made for any causes like Audit, Investigation, Voluntary Payment, SCN, Annual Return, Reconciliation Statement or Others.

5) Saving Draft DRC 03 Application: Draft of Application for intimation of voluntary

payment can be saved for a maximum period of 15 days. If the same is not fi led within 15 days, the saved draft will be purged. To view the saved application, navigate to Services > User Services > My Saved Applications option.

6) Using Payment Reference Number: If payment has been made and payment reference number (PRN) has been generated, but application in Form GST DRC-03 has not been fi led, then in such cases, application available in ‘My Saved Applications’ need to be selected and using PRN already generated, it may be fi led. However, if a period of fi fteen days has elapsed, then, details in Form need to be fi lled up again. PRN generated already can be used for fi ling the application.

7) Filing Form GST DRC 03: Taxpayers are required to fi le Form GST DRC-03 using DSC or EVC, as the case may be, after making payment. The status will change to “Pending for approval by Tax offi cer”. However, it may be noted that, no approval of tax offi cer is needed on earlier application, while making another voluntary payment using FORM GST DRC 03.

8) Acknowledgment by Tax Offi cial: Upon fi ling of Form GST DRC-03, the tax offi cer will issue an Acknowledgement in Form GST DRC-04 (Acknowledgement of Acceptance of voluntary payment). There is no bar on making another payment on voluntary basis by a taxpayer, pending issuance of acknowledgement by the tax offi cer.

the SCN.

3) Partial Payment not allowed: GST Portal does not allow for making partial payments of the amount stated in the SCN.

4) Cause of Payment: Payments through Form GST DRC-03 can be made for any causes like Audit, Investigation, Voluntary Payment, SCN, Annual Return, Reconciliation Statement or Others.

5) Saving Draft DRC 03 Application: Draft of Application for intimation of voluntary

needed on earlier application, while making another voluntary payment using FORM GST DRC 03.

8) Acknowledgment by Tax Offi cial: Upon fi ling of Form GST DRC-03, the tax offi cer will issue an Acknowledgement in Form GST DRC-04 (Acknowledgement of Acceptance of voluntary payment). There is no bar on making another payment on voluntary basis by a taxpayer, pending issuance of acknowledgement by the tax offi cer.

6 |GSTNEWSLETTER

1. What is the facility for Payment on Voluntary Basis?

Payment on Voluntary Basis is a facility given to tax payers to make payment u/s 73 or 74 of the CGST Act, 2017 within 30 days of issuance of Show Cause Notice (SCN). Payment could also be made by taxpayers before SCN is issued.

2. When can I make voluntary payment?

You can make voluntary payment before issue of notice u/s 73 or 74 of the CGST Act, 2017 or within 30 days of issue of show cause notice (SCN) under the said sections. You cannot make voluntary payment after 30 days of issue of SCN.

3. What are the pre-conditions to make voluntary payment?

The pre-conditions to make voluntary payment are:

a. In case, voluntary payment is made before issue of SCN

• Show Cause Notice under determination of tax should not have been issued.

b. In case, voluntary payment is made after issue of SCN or statement

• 30 days’ time has not lapsed since SCN is issued.

4. How can I make voluntary payment?

To make voluntary payment against the liability (tax, interest & penalty) based on self-ascertainment of tax, navigate to Services > User Services > My Applications > Intimation of Voluntary Payment - DRC - 03 option.

5. Can I make partial payment against a liability raised in a SCN?

GST Portal does not allow for making partial payments against a liability raised in a SCN. Complete payment of the amount being Source: http://gst.gov.in

FAQs on DRC-03

demanded in SCN has to be made.

6. Can I save the application for intimation of voluntary payment?

Application for intimation of voluntary payment can be saved at any stage of completion for a maximum time period of 15 days. If the same is not fi led within 15 days, the saved draft will be purged from the GST database. To view your saved application, navigate to Services > User Services > My Saved Applications option.

7. I don't have suffi cient balance to make payment against a liability raised in a SCN. What do I do now?

You can deposit the amount in Electronic Cash Ledger through "Create Challan" functionality which is available on voluntary payment screen. On click of "Create Challan" button, you will be redirected to Create Challan screen in Payment module. In the Create challan page, challan amounts will be auto-populated based on the amount of additional cash required considering the tax liabilities and others.

8. What will happen on fi ling of Form GST DRC-03?

Electronic Liability Register will be updated upon fi ling of Form GST DRC-03 i.e. Debit/Credit (both) entry will be posted simultaneously and PRN will be generated accordingly.

9. From where can I download Form GST DRC-03?

To download the duly fi led GST DRC-03 form, navigate to Services > User Services > My Applications > Intimation of Voluntary Payment - DRC - 03 option.

GSTNEWSLETTER| 7

Blocking and Unblockingof EWB Generation Facility

at E-way bill Portal

1. Blocking of EWB generation facility Blocking/unblocking of EWB generation

facility has been implemented on EWB Portal from 2nd December, 2019.

a. Meaning of blocking: The blocking of E Way Bill generation facility means disabling taxpayer from generating E Way Bill (EWB), in case of non-fi ling of 2 or more consecutive GSTR 3B Return on GST Portal.

Example: Taxpayers who have not fi led their GSTR-3B return for the months of September 2019 and October 2019, their EWB generation facility is blocked from 2nd December, 2019.

b. For GSTINs whose EWB generation facility is blocked, EWB can’t be generated either by the taxpayer or by their counterparty (whether as supplier or recipient) or the transporter.

2. Eff ect on already generated EWB In case of blocked GSTINs, EWBs already

generated and facilities in respect of these EWBs such as updating the vehicle or transporter details or extending the validity of EWB will not be impacted.

3. Unblocking of EWB generation facility

The EWB generation facility would be automatically unblocked in the event of fi ling of their GSTR 3B return for the default period(s), reducing the default period to less

than 2 consecutive tax periods. The blocking will be automatically lifted on the EWB system next day.

a. Immediate updation of Status at EWB Portal: For immediate updation of the status the taxpayer can go to the EWB portal and select the option "Search Update Block Status", enter their GSTIN and use Update Option to get themselves unblocked on GST portal, provided GSTR-3B return has already been fi led for the default period(s).

4. Unblocking by Tax Offi cial EWB generation facility can also be restored

by the jurisdictional tax offi cial on basis of manual representation by a taxpayer. The tax offi cials will issue a speaking order on GST Portal, for accepting or rejecting such requests of the taxpayers. In case he accepts the request, the facility will get restored.

5. Eff ect on Transporter registered on EWB Portal

Transporters enrolled in EWB Portal, but not registered on GST portal will not be impacted. However, the transporters registered on GST Portal, if blocked on non-fi ling of two or more GSTR 3B returns, cannot use their GSTIN as Consignor, Consignee or transporter to generate EWB and update transporter details.


8 |GSTNEWSLETTER

FAQs on Blocking and Unblocking of EWB Generation Facility at E-Way Bill Portal

1. Why my GSTIN is blocked for E-Way Bill generation facility?

Your GSTIN will be blocked for E-Way Bill generation facility, in case, you have failed to fi le Form GSTR-3B return for last two or more consecutive tax periods.

2. How can my E-Way Bill generation facility be unblocked?

Your E-Way Bill generation facility would be automatically unblocked on the EWB Portal when you fi le your GSTR-3B Return and the default in Return fi ling reduces to less than two tax periods. You may also fi le an offl ine/ manual request for unblocking of E-Way Bill generation facility with your jurisdictional tax offi cer.

3. How can I submit application for unblocking of E-Way Bill generation facility?

You can submit application for unblocking of an E-Way Bill generation facility through an offl ine/ manual request, citing the grounds why your facility should be un-blocked along with the required documents to your Jurisdictional Tax Offi cial. Once the request is received, Tax offi cial will dispose the application through Back Offi ce GST Portal and issue order online.

4. Where can I view the status of order issued by Tax Offi cial on my application for Unblocking of E-Way Bill generation facility?

In case, the order for rejection/acceptance of the unblocking request made by the taxpayer is issued, Email and SMS of acceptance/ rejection of order will be sent to taxpayer on their registered email id and mobile number. Such orders can be seen by the taxpayer after login to the GST Portal.

Navigate to Dashboard > Services > User Services > View Additional Notices/Ordersto view Acceptance/Rejection Order for

unblocking of the E-Way Bill generation facility.

5. What are the steps to view Acceptance/Rejection Order for unblocking of the E-Way Bill generation facility?

Navigate to Dashboard > Services > User Services > View Additional Notices/Ordersto view Acceptance/Rejection Order for unblocking of the E-Way Bill generation facility. Also, intimation of acceptance/ rejection order will be sent to taxpayer on the registered email id and mobile number.

6. What is the duration for which unblocking of an E-Way Bill generation facility, as per order of Tax Offi cial, is valid?

Unblocking of an E-Way Bill generation facility is valid upto the period indicated by the Tax Offi cial in his/her order.

7. How will I get to know if my E-Way Bill generation facility has been blocked?

GST Portal will send SMS/ Email at the registered mobile number/ email id of the taxpayer whose E-Way Bill generation facility has been blocked. Also during such period, you or any other user will not be able to generate E Way Bill (either as consignor or consignee) against the blocked GSTIN.

8. How will I be notifi ed for any action taken by Tax Offi cial on my application for unblocking of E-Way Bill generation facility?

After the Tax Offi cial issues online Order in respect of your request for unblocking of the E-Way Bill generation facility (irrespective of Acceptance/Rejection), the copy of the said order is made available at Taxpayer’s login. Also, an Email and SMS will be sent to the taxpayer on the registered email id and mobile number.

GSTNEWSLETTER| 9


9. Will I receive any reminder before the expiry of my validity period as indicated in unblocking order?

Yes, the GST Portal will send reminder mail and SMS before the expiry of validity period as indicated in unblocking order and fi ling of returns within time to avoid unblocking of E-Way Bill generation facility. This mail is sent 7 days before the date of expiry.

10. Why my unblocked E-Way Bill generation facility has beenblocked again?

This automatic blocking may happen if the validity period as given by Tax Offi cial has expired and taxpayer has failed to fi le GSTR-3B return for last two or more consecutive tax periods.

11. Is it possible to block my E-Way Bill generation facility before the expiry of the validity period?

No, E-Way Bill generation facility will not be blocked before the expiry of the validity period. However, E-Way Bill System will automatically 'Block' the Taxpayer post the expiry of the validity period. This automatic

blocking will be done, if the extended period as given by Tax Offi cial has expired and taxpayer has failed to fi le Form GSTR-3B return for last two or more consecutive tax periods.

12. What are the various Application statuses while issuing an order of acceptance/rejection for unblocking of E-Way Bill generation facility?

Listed below are the various Application statuses while issuing an order of acceptance/rejection for unblocking of E-Way Bill generation facility:

1. Order Generation Enqueue - When Order generation is pending with Tax Offi cial

2. Order of Acceptance Issued - When Order is generated by Tax Offi cial for acceptance of unblocking of E-Way Bill generation facility request of taxpayer

3. Order of Rejection Issued - When Order is generated by Tax Offi cial for rejection of unblocking of E-Way Bill generation facility request of taxpayer

10 |GSTNEWSLETTER

1. Grievance Redressal Committees (GRC) will be constituted at Zonal/State level with both CGST and SGST offi cers and including representatives of trade and industry and other GST stakeholders (GST practitioners and GSTN etc.). These committees will address grievances of specifi c/ general nature of taxpayers at the Zonal/ State level.

2. Due date for annual return in FORM GSTR-9 and reconciliation statement in FORM GSTR-9C for FY 2017-18 to be extended to 31.01.2020.

3. Following measures would be taken to improve fi ling of FORM GSTR-1:

i. Waiver of late fee to be given to all taxpayers in respect of all pending FORM GSTR-1 from July 2017 to November 2019, if the same are fi led by 10.01.2020.

ii. E-way Bill for taxpayers who have not fi led their FORM GSTR-1 for two tax periods shall be blocked.

4. Input tax credit to the recipient in respect of invoices or debit notes that are not refl ected in his FORM GSTR-2A shall be restricted to 10 per cent of the eligible credit available in respect of invoices or debit notes refl ected in his FORM GSTR-2A.

5. To check the menace of fake invoices, suitable action to be taken for blocking of fraudulently availed input tax credit in certain situations.

6. A Standard Operating Procedure for tax offi cers would be issued in respect of action to be taken in cases of non-fi ling of FORM GSTR 3B returns.

7. Due date of fi ling GST returns for the month

Decisions Taken in 38th GST Council Meeting Held on 18th Dec.,19

of November, 2019 to be extended in respect of a few North Eastern States.

8. The Council also approved various law amendments which will be introduced in Budget 2020.

9. To exempt upfront amount payable for long term lease of industrial/ fi nancial infrastructure plots by an entity having 20% or more ownership of Central or State Government. Presently, the exemption is available to an entity having 50% or more ownership of Central or State Government. This change shall become eff ective from 1st January, 2020.

10. To levy a single rate of GST @ 28% on both State run and State authorized lottery. This change shall become eff ective from 1st March, 2020.

11. The Council also considered the rate of GST rate on Woven and Non-Woven Bags and sacks of polyethylene or polypropylene strips or the like, whether or not laminated, of a kind used for packing of goods (HS code 3923/6305) in view of the requests received post the changes recommended on such goods in last meeting and recommended to raise the GST to a uniform rate of 18%(from 12%) on all such bags falling under HS 3923/6305 including Flexible Intermediate Bulk Containers (FIBC). This change shall become eff ective from 1st January, 2020.

Refer link for complete details:

http://cbic.gov.in/resources//htdocs-cbec/press-release/PRESS_RELEASE_38.pdf

GSTNEWSLETTER| 11

Notifi cations

Notifi cation No. 63/2019 – Central Tax, dated 12th December, 2019In exercise of the powers conferred by second proviso to sub-section (1) of section 37 read with section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notifi cation referred to as the said Act), the Commissioner, on the recommendations of the Council, hereby makes the following further amendment in notifi cation of the Government of India in the Ministry of Finance (Department of Revenue), No.28/2019 – Central Tax, dated the 28th June, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.454(E), dated the 28th June, 2019, namely:–

In the said notifi cation, for the proviso to the fi rst paragraph, the following proviso shall be substituted, namely: –

“Provided that for registered persons whose principal place of business is in the State of Jammu and Kashmir, the time limit for furnishing the details of outward supplies in FORM GSTR-1 of Central Goods and Services Tax Rules, 2017, by such class of registered persons having aggregate turnover of more than 1.5 crore rupees in the preceding fi nancial year or current fi nancial year, for each of the months from July, 2019 to September, 2019 till 20th December, 2019.”

2. This notifi cation shall be deemed to come into force with eff ect from 30th day of November, 2019

Notifi cation No. 64/2019 – Central Tax, dated 12th December, 2019In exercise of the powers conferred by second proviso to sub-section (1) of section 37 read with section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notifi cation referred to as the said Act), the Commissioner, on the recommendations of the Council, hereby makes the following further amendment in notifi cation of the Government of India in the Ministry of Finance (Department of Revenue), No.46/2019 – Central

Tax, dated the 9th October, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.769(E), dated the 09th October, 2019, namely:–


“Provided that for registered persons whose principal place of business is in the State of Jammu and Kashmir, the time limit for furnishing the details of outward supplies in FORM GSTR-1 of Central Goods and Services Tax Rules, 2017, by such class of registered persons having aggregate turnover of more than 1.5 crore rupees in the preceding fi nancial year or current fi nancial year, for the month of October, 2019 till 20th December, 2019.”


Notifi cation No. 65/2019 – Central Tax, dated 12th December, 2019In exercise of the powers conferred by sub-section (6) of section 39 read with section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notifi cation referred to as the said Act), the Commissioner hereby makes the following further amendment in notifi cation of the Government of India in the Ministry of Finance (Department of Revenue), No.26/2019 – Central Tax, dated the 28th June, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.452(E), dated the 28th June, 2019, namely:–

In the said notifi cation, in the fi rst paragraph, for the third proviso, the following proviso shall be substituted, namely: –

“Provided also that the return by a registered person, required to deduct tax at source under the provisions of section 51 of the said Act in FORM GSTR-7 of the Central Goods and Services Tax

12 |GSTNEWSLETTER

Rules, 2017 under sub-section (3) of section 39 of the said Act read with rule 66 of the Central Goods and Services Tax Rules, 2017, for the months of July, 2019 to October,2019, whose principal place of business is in the State of Jammu and Kashmir shall be furnished electronically through the common portal, on or before the 20th December, 2019.”


Notifi cation No. 66/2019 – Central Tax, dated 12th December, 2019In exercise of the powers conferred by section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) read with sub-rule (5) of rule 61 of the Central Goods and Services Tax Rules, 2017 (hereafter in this notifi cation referred to as the said rules), the Commissioner, on the recommendations of the Council, hereby makes the following further amendment in notifi cation of the Government of India in the Ministry of Finance (Department of Revenue), No.29/2019 – Central Tax, dated the 28th June, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.455(E), dated the 28th June, 2019, namely:–

In the said notifi cation, in the fi rst paragraph, for the fourth proviso, the following proviso shall be substituted, namely: –

“Provided also that the return in FORM GSTR-3B of the said rules for the months of July to September, 2019 for registered persons whose principal place of business is in the State of Jammu and Kashmir, shall be furnished electronically through the common portal, on or before the 20th December, 2019.”


Notifi cation No. 67/2019 – Central Tax, dated 12th December, 2019In exercise of the powers conferred by section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) read with sub-rule (5) of rule 61 of the Central Goods and Services Tax Rules, 2017 (hereafter in this notifi cation referred to as the said rules), the Commissioner, on the

recommendations of the Council, hereby makes the following further amendment in notifi cation of the Government of India in the Ministry of Finance (Department of Revenue), No.44/2019 – Central Tax, dated the 09th October, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.767(E), dated the 09th October, 2019, namely:–


“Provided that the return in FORM GSTR-3B of the said rules for the month of October, 2019 for registered persons whose principal place of business is in the State of Jammu and Kashmir, shall be furnished electronically through the common portal, on or before the 20th December, 2019.”


Notifi cation No. 68/2019 – Central Tax, dated 13th December, 2019In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely:-

1. (1) These rules may be called the Central Goods and Services Tax (Eighth Amendment) Rules, 2019.

(2) They shall come into force on the date of their publication in the Offi cial Gazette.

2. In the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), in rule 48, after sub-rule (3), the following sub-rules shall be inserted, namely:-

“(4) The invoice shall be prepared by such class of registered persons as may be notifi ed by the Government, on the recommendations of the Council, by including such particulars contained in FORM GST INV-01 after obtaining an Invoice Reference Number by uploading information contained therein on the Common Goods and Services Tax Electronic Portal in such manner and subject to such conditions and restrictions as may be specifi ed in the notifi cation.

GSTNEWSLETTER| 13

(5) Every invoice issued by a person to whom sub-rule (4) applies in any manner other than the manner specifi ed in the said sub-rule shall not be treated as an invoice.

(6) The provisions of sub-rules (1) and (2) shall not apply to an invoice prepared in the manner specifi ed in sub-rule (4).”.

Notifi cation No. 69/2019 – Central Tax, dated 13th December, 2019In exercise of the powers conferred by section 146 of the Central Goods and Services Tax Act, 2017 (12 of 2017) read with sub-rule(4) of rule 48 of the Central Goods and Services Tax Rules, 2017 and section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, on the recommendations of the Council, hereby, notifi es the following as the Common Goods and Services Tax Electronic Portal for the purpose of preparation of the invoice in terms of sub-rule(4) of rule 48 of the aforesaid rules, namely:-

i. www.einvoice1.gst.gov.in;

ii. www.einvoice2.gst.gov.in;

iii. www.einvoice3.gst.gov.in;

iv. www.einvoice4.gst.gov.in;

v. www.einvoice5.gst.gov.in;

vi. www.einvoice6.gst.gov.in;

vii. www.einvoice7.gst.gov.in;

viii. www.einvoice8.gst.gov.in;

ix. www.einvoice9.gst.gov.in;

x. www.einvoice10.gst.gov.in.

Explanation.-For the purposes of this notifi cation, the above mentioned websites mean the websites managed by the Goods and Services Tax Network, a company incorporated under the provisions of section 8 of the Companies Act, 2013 (18 of 2013).

2. This notifi cation shall come into force with eff ect from the 1st day of January, 2020

Notifi cation No. 70/2019 – Central Tax, dated 13th December, 2019In exercise of the powers conferred by sub-

rule (4) to rule 48 of the Central Goods and Services Tax Rules, 2017, the Government, on the recommendations of the Council, hereby notifi es registered person, whose aggregate turnover in a fi nancial year exceeds one hundred crore rupees, as a class of registered person who shall prepare invoice in terms of sub-rule (4) of rule 48 of the said rules in respect of supply of goods or services or both to a registered person.

3. This notifi cation shall come into force from the 1st day of April, 2020.

Notifi cation No. 71/2019 – Central Tax, dated 13th December, 2019In exercise of the powers conferred by rule 5 of the Central Goods and Services Tax (Fourth Amendment) Rules, 2019, made vide notifi cation No. 31/2019 – Central Tax, dated the 28th June, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 457(E), dated the 28th June,2019, the Government, on the recommendations of the Council, hereby appoints the 1st day of April, 2020, as the date from which the provisions of the said rule, shall come into force.

Notifi cation No. 72/2019 – Central Tax, dated 13th December, 2019In exercise of the powers conferred by the sixth proviso to rule 46 of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), the Government, on the recommendations of the Council, hereby notifi es that an invoice issued by a registered person, whose aggregate turnover in a fi nancial year exceeds fi ve hundred crore rupees, to an unregistered person (hereinafter referred to as B2C invoice), shall have Quick Response (QR)code:

Provided that where such registered person makes a Dynamic Quick Response (QR) code available to the recipient through a digital display, such B2C invoice issued by such registered person containing cross-reference of the payment using a Dynamic Quick Response (QR) code, shall be deemed to be having Quick Response (QR) code.

2. This notifi cation shall come into force from the 1st day of April, 2020.

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Notifi cation No. 73/2019 – Central Tax, dated 23rd December, 2019In exercise of the powers conferred by section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) read with sub-rule (5) of rule 61 of the Central Goods and Services Tax Rules, 2017 (hereafter in this notifi cation referred to as the said rules), the Commissioner, on the recommendations of the Council, hereby makes the following further amendment in notifi cation of the Government of India in the Ministry of Finance (Department of Revenue), No. 44/2019 – Central Tax, dated the 09th October, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.767(E), dated the 09th October, 2019, namely:–

In the said notifi cation, after the proviso, the following proviso shall be inserted, namely: –

“Provided further that the return in FORM GSTR-3B of the said rules for the month of November, 2019 shall be furnished electronically through the common portal, on or before the 23rd December, 2019.”

2. This notifi cation shall be deemed to have come into force with eff ect from the 20th Day of December, 2019.

Notifi cation No. 74/2019 – Central Tax, dated 26th December, 2019In exercise of the powers conferred by section 128 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendment in the notifi cation of the Government of India in the Ministry of Finance, Department of Revenue No. 4/2018– Central Tax, dated the 23rd January, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i) vide number G.S.R. 53(E), dated the 23rd January, 2018, namely:–

In the said notifi cation, after the second proviso, the following proviso shall be inserted, namely:–

“Provided also that the amount of late fee payable under section 47 of the said Act shall stand waived for the registered persons who failed to furnish the details of outward supplies in FORM GSTR-1 for the months/quarters from July, 2017 to November,

2019 by the due date but furnishes the said details in FORM GSTR-1 between the period from 19th December, 2019 to 10th January, 2020.”.

2. This notifi cation shall be deemed to have come into force with eff ect from the 19th day of December, 2019.

Notifi cation No. 75/2019 – Central Tax, dated 26th December, 2019In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely:-

1. (1) These rules may be called the Central Goods and Services Tax (Ninth Amendment) Rules, 2019. (2) Save as otherwise provided, they shall come into force on the date of their publication in the Offi cial Gazette.

2. In the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), with eff ect from the 1st January, 2020, in rule 36, in sub-rule (4), for the fi gures and words “20 per cent.”, the fi gures and words “10 per cent.” shall be substituted.

3. In the said rules, after rule 86, the following rule shall be inserted, namely:-

“86A. Conditions of use of amount available in electronic credit ledger.-

(1) The Commissioner or an offi cer authorised by him in this behalf, not below the rank of an Assistant Commissioner, having reasons to believe that credit of input tax available in the electronic credit ledger has been fraudulently availed or is ineligible in as much as

a) the credit of input tax has been availed on the strength of tax invoices or debit notes or any other document prescribed under rule 36-

i. issued by a registered person who has been found non-existent or not to be conducting any business from any place for which registration has been obtained;

or

ii. without receipt of goods or services or both; or

GSTNEWSLETTER| 15

b) the credit of input tax has been availed on the strength of tax invoices or debit notes or any other document prescribed under rule 36 in respect of any supply, the tax charged in respect of which has not been paid to the Government; or

c) the registered person availing the credit of input tax has been found non-existent or not to be conducting any business from any place for which registration has been obtained; or

d) the registered person availing any credit of input tax is not in possession of a tax invoice or debit note or any other document prescribed under rule 36, may, for reasons to be recorded in writing, not allow debit of an amount equivalent to such credit in electronic credit ledger for discharge of any liability under section 49 or for claim of any refund of any unutilised amount.

(2) The Commissioner, or the offi cer authorised by him under sub-rule (1) may, upon being satisfi ed that conditions for disallowing debit of electronic credit ledger as above, no longer exist, allow such debit.

(3) Such restriction shall cease to have eff ect after the expiry of a period of one year from the date of imposing such restriction.”.

(4) In the said rules, with eff ect from the 11th January, 2020, in rule 138E, after clause (b), the following clause shall be inserted, namely:-

“(c) being a person other than a person specifi ed in clause (a), has not furnished the statement of outward supplies for any two months or quarters, as the case may be.”.

Notifi cation No. 76/2019 – Central Tax, dated 26th December, 2019In exercise of the powers conferred by second proviso to sub-section (1) of section 37 read with section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notifi cation referred to as the said Act), the Commissioner, on the recommendations of the Council, hereby makes the following further amendment in notifi cation of

the Government of India in the Ministry of Finance (Department of Revenue), No.46/2019 – Central Tax, dated the 9th October, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 769(E), dated the 09th October, 2019, namely:–

In the said notifi cation, in the fi rst paragraph, after the proviso, the following proviso shall be inserted, namely: –

“Provided that for registered persons whose principal place of business is in the State of Assam, Manipur or Tripura, the time limit for furnishing the details of outward supplies in FORM GSTR-1 of Central Goods and Services Tax Rules, 2017, by such class of registered persons having aggregate turnover of more than 1.5 crore rupees in the preceding fi nancial year or current fi nancial year, for the month of November, 2019 till 31st December, 2019.”

2. This notifi cation shall be deemed to come into force with eff ect from the 11th Day of December, 2019.

Notifi cation No. 77/2019 – Central Tax, dated 26th December, 2019In exercise of the powers conferred by section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) read with sub-rule (5) of rule 61 of the Central Goods and Services Tax Rules, 2017 (hereafter in this notifi cation referred to as the said rules), the Commissioner, on the recommendations of the Council, hereby makes the following further amendment in notifi cation of the Government of India in the Ministry of Finance (Department of Revenue), No. 44/2019 – Central Tax, dated the 09th October, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.767(E), dated the 09th October, 2019, namely:–

In the fi rst paragraph of the said notifi cation, after the second proviso, the following proviso shall be inserted, namely: -

“Provided also that the return in FORM GSTR-3B of the said rules for the month of November, 2019 for registered persons whose principal place of business is in the State of Assam,

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Manipur, Meghalaya or Tripura, shall be furnished electronically through the common portal, on or before the 31st December, 2019.”

2. This notifi cation shall be deemed to have come into force with eff ect from the 23rd day of December, 2019.

Notifi cation No. 78/2019 – Central Tax, dated 26th December, 2019In exercise of the powers conferred by sub-section (6) of section 39 read with section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notifi cation referred to as the said Act), the Commissioner hereby makes the following further amendment in notifi cation of the Government of India in the Ministry of Finance (Department of Revenue), No.26/2019 – Central Tax, dated the 28th June, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3,

Sub-section (i) vide number G.S.R.452(E), dated the 28th June, 2019, namely:–

In the said notifi cation, in the fi rst paragraph, after the third proviso, the following proviso shall be inserted, namely: –

“Provided also that the return by a registered person, required to deduct tax at source under the provisions of section 51 of the said Act in FORM GSTR-7 of the Central Goods and Services Tax Rules, 2017 under sub-section (3) of section 39 of the said Act read with rule 66 of the Central Goods and Services Tax Rules, 2017, for the month of November, 2019, whose principal place of business is in the State of Assam, Manipur or Tripura, shall be furnished electronically through the common portal, on or before the 25th December, 2019.”.

2. This notifi cation shall be deemed to have come into force with eff ect from the 10th Day of December, 2019.

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Circulars & Orders

Circular No. 127/46/2019 – GST dated 4th December, 2019Certain clarifi cations were given in relation to various doubts related to supply of Information Technology enabled Services (ITeS services) under GST. Numerous representations were received expressing apprehensions on the implications of the said Circular.

In view of such apprehensions as highlighted by various representations and to ensure uniformity in the implementation of the provisions of the law across fi eld formations, the Board, in exercise of its powers conferred by section 168(1) of the Central Goods and Services Tax Act, 2017, has vide Circular No. 127/46/2019 – GST dated 4th December, 2019 withdrawn, ab-initio, Circular No. 107/26/2019.

Circular No. 128/47/2019 – GST dated 23rd December, 2019Generation and quoting of Document Identifi cation Number (DIN) on any communication issued by the offi cers of the Central Board of Indirect Taxes and Customs (CBIC) to tax payers and other concerned persons — reg.With a view to leverage technology for greater accountability and transparency in communications with the trade/ taxpayers/ other concerned persons, the Board had issued Circular No. 122/41/2019 – GST on 05th November, 2019to implement the decision for Generation and Quoting of Document Identifi cation Number (DIN) on specifi ed documents.

2. Vide the aforementioned Circular, the Board had specifi ed that the DIN monitoring system would be used for incorporating a DIN on search authorisations, summons, arrest memos, inspection notices to begin with. Further, a facility was provided to enable the recipient of these documents/communications to easily verify their genuineness by confi rming the DIN on-line at cbic.gov.in. In continuation of the same, the Board has now directed

that electronic generation and quoting of Document Identifi cation Number (DIN) shall be done in respect of all communications (including e-mails) sent to tax payers and other concerned persons by any offi ce of the Central Board of Indirect Taxes and Customs (CBIC) across the country. Instructions contained in this Para would come into eff ect from 24.12.2019.

3. Accordingly, the online digital platform/facility already available on the DDM’s online portal “cbicddm.gov.in” for electronic generation of DIN has been suitably enhanced to enable electronic generation of DIN in respect of all forms of communication (including e-mails) sent to tax payers and other concerned persons. On the one hand electronic generation of DIN’s would create a digital directory for maintaining a proper audit trail of communications sent to tax payers and other concerned persons and on the other hand, it would provide the recipient of such communication a digital facility to ascertain the genuineness of the communication.

4. In this context, the Board also felt it necessary to harmonize and standardize the formats of search authorisations, summons, arrest memos, inspection notices etc. issued by the GST/Central Excise/Service Tax formations across the country. Accordingly, the Board had constituted a committee of offi cers to examine and suggest modifi cations in the formats of these documents. The committee has submitted its recommendations. The standardized documents have since been uploaded by DDM and are ready to be used. When downloaded and printed, these standardized documents would bear a pre-populated DIN thereon. Accordingly, the Board has directed that all fi eld formations shall use the standardized authorisation for search, summons, inspection notice, arrest memo and provisional release order

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(the formats are attached). These formats shall be used by all the formations w.e.f. 01.01.2020.

5. The Board has directed that any specifi ed communication which does not bear the electronically generated DIN and is not covered by the exceptions mentioned in paragraph 3 of Circular 122/41/2019-GST dated 05.11.2019, shall be treated as invalid and shall be deemed to have never been issued.

Circular No. 129/48/2019 – GST dated 24th December, 2019Standard Operating Procedure to be followed in case of non-fi lers of returns– reg1. Doubts have been raised across the fi eld

formations in respect of the appropriate procedure to be followed in case of non-furnishing of return under section 39 or section 44 or section 45 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the “CGST Act”). It has further been brought to the notice that divergent practices are being followed in case of non-furnishing of the said returns

2. The matter has been examined. In order to clarify the issue and to ensure uniformity in the implementation of the provisions of the law across fi eld formations, the Board, in exercise of its powers conferred by section 168 (1) of the CGST Act, hereby issues the following clarifi cations and guidelines.

3. Section 46 of the CGST Act read with rule 68 of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the “CGST Rules”) requires issuance of a notice in FORM GSTR-3A to a registered person who fails to furnish return under section 39 or section 44 or section 45 (hereinafter referred to as the “defaulter”) requiring him to furnish such return within fi fteen days. Further section 62 provides for assessment of non-fi lers of return of registered persons who fails to furnish return under section 39 or section 45 even after service of notice under section 46. FORM GSTR-3A provides as under:

“Notice to return defaulter u/s 46 for not fi ling returnTax Period - Type of Return –

Being a registered taxpayer, you are required to furnish return for the supplies made or received and to discharge resultant tax liability for the aforesaid tax period by due date. It has been noticed that you have not fi led the said return till date.

1. You are, therefore, requested to furnish the said return within 15 days failing which the tax liability may be assessed u/s 62 of the Act, based on the relevant material available with this offi ce. Please note that in addition to tax so assessed, you will also be liable to pay interest and penalty as per provisions of the Act.

2. Please note that no further communication will be issued for assessing the liability.

3. The notice shall be deemed to have been withdrawn in case the return referred above, is fi led by you before issue of the assessment order.”

As such, no separate notice is required to be issued for best judgment assessment under section 62 and in case of failure to fi le return within 15 days of issuance of FORM GSTR-3A, the best judgment assessment in FORM ASMT-13 can be issued without any further communication.

4. Following guidelines are hereby prescribed to ensure uniformity in the implementation of the provisions of law across the fi eld formations:

(i) Preferably, a system generated message would be sent to all the registered persons 3 days before the due date to nudge them about fi ling of the return for the tax period by the due date.

(ii) Once the due date for furnishing the return under section 39 is over, a system generated mail / message would be sent to all the defaulters immediately after the due date to the eff ect that the said registered person has not furnished his return for the said tax period; the said mail/message is to be sent to the authorized signatory as well as the proprietor/partner/director/karta, etc.

(iii) Five days after the due date of furnishing

GSTNEWSLETTER| 19

the return, a notice in FORM GSTR-3A (under section 46 of the CGST Act read with rule 68 of the CGST Rules) shall be issued electronically to such registered person who fails to furnish return under section 39, requiring him to furnish such return within fi fteen days;

(iv) In case the said return is still not fi led by the defaulter within 15 days of the said notice, the proper offi cer may proceed to assess the tax liability of the said person under section 62 of the CGST Act, to the best of his judgement taking into account all the relevant material which is available or which he has gathered and would issue order under rule 100 of the CGST Rules in FORM GST ASMT-13. The proper offi cer would then be required to upload the summary thereof in FORM GST DRC07;

(v) For the purpose of assessment of tax liability under section 62 of the CGST Act, the proper offi cer may take into account the details of outward supplies available in the statement furnished under section 37 (FORM GSTR-1), details of supplies auto populated in FORM GSTR-2A, information available from e-way bills, or any other information available from any other source, including from inspection under section 71;

(vi) In case the defaulter furnishes a valid return within thirty days of the service of assessment order in FORM GST ASMT-13, the said assessment order shall be deemed to have been withdrawn in terms of provision of sub-section (2) of section 62 of the CGST Act. However, if the said return remains unfurnished within the statutory period of 30 days from issuance of order in FORM ASMT-13, then proper offi cer may initiate proceedings under section 78 and recovery under section 79 of the CGST Act;

5. Above general guidelines may be followed by the proper offi cer in case of non-furnishing of return. In deserving cases, based on the facts

of the case, the Commissioner may resort to provisional attachment to protect revenue under section 83 of the CGST Act before issuance of FORM GST ASMT-13.

6. Further, the proper offi cer would initiate action under sub-section (2) of section 29 of the CGST Act for cancellation of registration in cases where the return has not been furnished for the period specifi ed in section 29.

Order No. 09/2019-Central Tax dated 3rd December, 2019WHEREAS, sub-section (1) of section 112 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this Order referred to as the said Act) provides that any person aggrieved by an order passed against him under section 107 or section 108 of this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act may appeal to the Appellate Tribunal against such order within three months from the date on which the order sought to be appealed against is communicated to the person preferring the appeal;

AND WHEREAS, sub-section (3) of section 112 of the said Act provides that the Commissioner may, on his own motion, or upon request from the Commissioner of State tax or Commissioner of Union territory tax, call for and examine the record of any order passed by the Appellate Authority or the Revisional Authority under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act for the purpose of satisfying himself as to the legality or propriety of the said order and may, by order, direct any offi cer subordinate to him to apply to the Appellate Tribunal within six months from the date on which the said order has been passed for determination of such points arising out of the said order as may be specifi ed by the Commissioner in his order;

AND WHEREAS, section 109 of the said Act provides for the constitution of the Goods and Services Tax Appellate Tribunal and Benches thereof;

AND WHEREAS, for the purpose of fi ling the appeal or application as referred to in subsection (1) or sub-section (3) of section 112 of the said Act, as the case may be, the Appellate Tribunal and its Benches are yet to be constituted in many States and Union territories under section

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109 of the said Act as a result whereof, the said appeal or application could not be fi led within the time limit specifi ed in the said sub-sections, and because of that, certain diffi culties have arisen in giving eff ect to the provisions of the said section;

NOW, THEREFORE, in exercise of the powers conferred by section 172 of the Central Goods and Services Tax Act, 2017, the Central Government, on the recommendations of the Council, hereby makes the following Order, to remove the diffi culties, namely:–

1. Short title.––This Order may be called the Central Goods and Services Tax (Ninth Removal of Diffi culties) Order, 2019.

2. For the removal of diffi culties, it is hereby clarifi ed that for the purpose of calculating,-

(a) the “three months from the date on which the order sought to be appealed against is communicated to the person preferring the appeal” in sub-section (1) of section 112, the start of the three months period shall be considered to be the later of the following dates:-

i) date of communication of order; or

ii) the date on which the President or the State President, as the case may be, of the Appellate Tribunal after its constitution under section 109, enters offi ce;

(b) the “six months from the date on which the said order has been passed” in sub-section (3) of section 112, the start of the six months period shall be considered to be the later of

the following dates:-

i) date of communication of order; or

ii the date on which the President or the State President, as the case may be, of the Appellate Tribunal after its constitution under section 109, enters Offi ce.

Order No. 10/2019 – Central Tax dated 26th December, 2019WHEREAS, sub-section (1) of section 44 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this Order referred to as the said Act) provides that every registered person, other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return for every fi nancial year electronically in such form and manner as may be prescribed on or before the thirty-fi rst day of December following the end of such fi nancial year;

AND WHEREAS, for the purpose of furnishing of the annual return electronically for every fi nancial year as referred to in sub-section (1) of section 44 of the said Act, certain

technical problems are being faced by the taxpayers as a result whereof, the said annual return for the period from the 1st July, 2017 to the 31st March, 2018 could not be furnished by the registered persons, as referred to in the said sub-section (1) and because of that, certain diffi culties have arisen in giving eff ect to the provisions of the said section.

NOW, THEREFORE, in exercise of the powers conferred by section 172 of the Central Goods and Services Tax Act, 2017, the Central Government, on recommendations of the Council, hereby makes the following Order, to remove the diffi culties, namely:–

1. Short title.––This Order may be called the Central Goods and Services Tax (Tenth Removal of Diffi culties) Order, 2019.

2. In section 44 of the Central Goods and Services Tax Act, 2017, in the Explanation, for the fi gures, letters and word “31st December, 2019”, the fi gures, letters and word “31st

January, 2020” shall be substituted.

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E-Invoice System Concept Note, Standard, Schema And Template

Proposed E-Invoicing systemThe GST Council has approved introduction of ‘E-invoicing’ or ‘electronic invoicing’ in a phased manner for reporting of business to business (B2B) invoices to GST System, starting from 1st January 2020 on voluntary basis. Since there was no standard for e-invoice existing in the country, standard for the same has been fi nalized after consultation with trade/industry bodies as well as ICAI after keeping the draft in public place. Having a standard is a must to ensure complete inter-operability of e-invoices across the entire GST eco-system so that e-invoices generated by one software can be read by any other software, thereby eliminating the need of fresh data entry – which is a norm and standard expectation today. The machine readability and uniform interpretation is the key objective. This is also important for reporting the details to GST System as part of Return. Apart from the GST System, adoption of a standard will also ensure that an e-invoice shared by a seller with his buyer or bank or agent or any other player in the whole business eco-system can be read by machines and obviate and hence eliminate data entry errors.

The GST Council approved the standard of e-invoice in its 37th meeting held on 20th Sept 2019 and the same along with schema has been published on GST portal. Standards are generally abstruse and thus an explanation document is required to present the same in common man’s language. Also, there are lot of myth or misconception about e-Invoice. The present document is an attempt to explain the concept of e-invoice, how it operates and basics of standards. It also contains FAQs which answer the questions raised by people who responded to the draft e-invoice standard used for public consultation. It is expected that the document will also be useful for the taxpayers, tax consultants and the software companies to adopt the designed standard.

A. What is e-invoice?If an invoice is generated by a software on the computer or Point of Sales (PoS) machine then does it become an e-invoice? Is e-invoice as a system where taxpayers can generate the invoices centrally? Many such questions are raised when e-invoice gets discussed.

E-invoice does not mean generation of invoices from a central portal of tax department, as any such centralization will bring unnecessary restriction on the way trade is conducted. In fact, taxpayers have diff erent requirements and expectation, which can’t be met from one software generating e-invoices from a portal for the whole country. Invoice generated by each software may look more or less same, however, they can’t be understood by another computer system even though business users understand them fully. For example, an Invoice generated by SAP system cannot be read by a machine which is using ‘Tally’ system. Likewise there are hundreds of accounting/billing software which generate invoices but they all use their own formats to store information electronically and data on such invoices can’t be understood by the GST System if reported in their respective formats. Hence a need was felt to standardize the format in which electronic data of an Invoice will be shared with others to ensure there is interoperability of the data. The adoption of standards will in no way impact the way user would see the physical (printed) invoice or electronic (ex pdf version) invoice. All these software would adopt the new e-Invoice standard wherein they would re-align their data access and retrieval in the standard format. However, users of the software would not fi nd any change since they would continue to see the physical or electronic (PDF/Excel) output of the invoices in the same manner as it existed before incorporation of e-Invoice standard in the software. Thus the taxpayer would continue to use his accounting system/ERP or excel based tools or any such tool for creating the electronic invoice as he/she is using today.

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Objectives Outcome

Better taxpayer services

One time reporting on B2B invoice data in the form it is generated to reduce reporting in multiple formats (one for GSTR-1 and the other for e-way bill).

To generate Sales and purchase register (ANX-1 and ANX-2) from this data to keep the Return (RET-1 etc.) ready for fi ling under New Return. e-Way bill can also be generated using e-Invoice data

It will become part of the business process of the taxpayer

Substantial reduction in input credit verifi cation issues as same data will get reported to tax department as well to buyer in his inward supply (purchase) register.

On receipt of info thru GST System as buyer can do reconciliation with his Purchase Order and accept/reject in time under New Return

Reduction oftax evasion

Complete trail of B2B invoices

System level matching of input credit and output tax

Effi ciency in tax administration

Elimination of fake invoices

Generation of e-invoice will be the responsibility of the taxpayer who will be required to report the same to Invoice Registration Portal (IRP) of GST, which in turn will generate a unique Invoice Reference Number (IRN) and digitally sign the e-invoice and also generate a QR code. The QR Code will contain vital parameters of the e-invoice and return the same to the taxpayer who generated the document in fi rst place. The IRP will also send the signed e-invoice to the recipient of the document on the email provided in the e-invoice.

Note: To begin with, there will be only one IRP, but more IRPs will be added to provide higher availability, redundancy, speed and a diversifi ed and distributed service to tax payers with a choice.

To help small taxpayers adopt e-invoice system, GSTN has empaneled eight accounting & billing software which provide basic accounting and billing system free of cost to small taxpayers. Those small taxpayers who do not have accounting software today, can use one of the empaneled software products, which come in both fl avors, online (cloud based) as well as offl ine (installed on the computer system of the user).

B. E-Invoice and Tax Department The e-invoice system being implemented by

tax departments across the globe consists of two important parts namely,

a). Generation of invoice in a standard format so that invoice generated on one system can be read by another system.

b) Reporting of e-invoice to a central system.

The basic aim behind adoption of e-invoice system by tax departments is ability to pre-populate the return and to reduce the reconciliation problems. Huge increase in technology sophistication, increased penetration of Internet along with availability of computer systems at reasonable cost has made this journey possible and hence more than 60 countries are in the process of adopting the e-invoice.

GST Council has given the responsibility to design the standard of e-invoice and update the same from time to time to GSTN which is the custodian of Returns and invoices contained in the same. Adoption of e-invoice by GST System is not only part of Tax reform but also a Business reform as it make the e-invoices completely inter-operable eliminating transcription and other errors.

C. Other derived benefi ts of introduction of e-invoice from GST perspective

GSTNEWSLETTER| 23

D. What type of documents are to be reported to GST System?

While the word invoice is used in the name of e-invoice, it covers other documents that will be required to be reported to IRP by the creator of the document:

i. Invoice by Supplier

ii. Credit Note by Supplier

iii. Debit Note by Supplier

iv. Any other document as required by law to be reported by the creator of the document.

E. What will be the workfl ow involved? The fl ow of the e-invoice generation,

registration and receipt of confi rmation can be logically divided into two major parts.

a. The fi rst part being the interaction between the business (supplier in case of invoice) and the Invoice Registration Portal (IRP).

b. The second part is the interaction between the IRP and the GST/E-Way Bill Systems and the Buyer.

The two parts of the workfl ow are depicted diagrammatically below and followed up with an explanation of the steps involved. As the process evolves and system matures the same would be intercommunicated between buyer’s software and seller’s software, banking systems etc.

Part A: Flow from Supplier (commonly known as seller) to IRP.

Step 1 is the generation of the invoice by the seller in his own accounting or billing system (it can be any software utility that generates invoice including those using excel or GSTN’s provided Offl ine Utility). The invoice must conform to the e-invoice schema (standards) that is published and have the mandatory parameters. The optional parameters can be according to the business need of the supplier. The supplier’s (seller’s) software should be capable to generate a JSON of the fi nal invoice that is ready to be uploaded to the IRP. The IRP will only take JSON of the e- invoice.

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Step 2 is to generate the unique Invoice Reference Number (IRN) (in technical terms hash of 3 parameters using a standard and well known hash generation algorithm e.g. SHA256). This is an optional step. The seller can also generate this and upload along with invoice data. The 3 parameters which will be used to generate IRN (hash) are:i. Supplier GSTIN,

ii. Supplier’s invoice number and,

iii. Financial year (YYYY-YY). (The IRN or hash generation algorithm will be prescribed by GSTN in the e-invoice standard).

Step 3 is to upload the JSON of the e-invoice (along with the hash, if generated) into the IRP by the seller. The JSON may be uploaded directly on the IRP or through GSPs or through third party provided Apps.

Step-4: The IRP will also generate the hash and

NOTE: Seller should have a utility that will output invoice data in JSON format, either from

his accounting or billing software or his ERP or excel/word document or even a mobile

app. Those who do not use any accounting software or IT tool to generate the invoice,

will be provided an offl ine tool to key-in data of invoice and then submit the same. The

small and medium size taxpayers (having annual turnover below Rs 1.5 Crores) can avail

accounting and billing system being off ered by GSTN free of cost.

validate the hash of the uploaded json, if uploaded by the supplier. The IRP will check the hash from the Central Registry of GST System to ensure that the same invoice from the same supplier pertaining to same Fin Year is not being uploaded again. On receipt of confi rmation from Central Registry, IRP will add its signature on the Invoice Data as well as a QR code to the JSON. The QR code will contain GSTIN of seller and buyer, Invoice number, invoice date, number of line items, HSN of major commodity contained in the invoice as per value, hash etc. The hash computed by IRP will become the IRN (Invoice Reference Number) of the e-invoice. This shall be unique to each invoice and hence be the unique identity for each invoice for the entire fi nancial year in the entire GST System for a taxpayer. [GST Systems will create a central registry where hash sent by all IRPs will be kept to ensure uniqueness of the same].

GSTNEWSLETTER| 25

Step 5 will involve sharing the uploaded data with GST and e-way bill system. More details are given in Part-B below.

Step 6 will involve returning the digitally signed JSON with IRN back to the seller along with a QR code. The registered invoice will also be sent to the seller and buyer on their mail ids as provided in the invoice.

Part B: Flow from IRP to GST System/E-Way Bill System & Buyer

The following diagram shows how e-Invoice data would be consumed by GST System for generation of e-way bill or populating relevant parts GST

Returns, stated in Step-5 below.

Step 5 (a) Will be to share the signed e-invoice data along with IRN (same as that has been returned by the IRP to the seller) to the GST System as well as to E-Way Bill System.

Step 5 (b) The GST System will update the ANX-1 of the seller and ANX-2 of the buyer, which in turn will determine liability and ITC.

Step 5 (c) E-Way bill system will create Part-A of e-way bill using this data to which only vehicle number will have to be attached in Part-B of the e-way bill.

NOTE 1: The e-invoice standardized schema has mandatory and optional items. The e-invoice shall not be accepted in the GST System unless all the mandatory items are present. The optional items are to be used by the seller and buyer as per their business need to enforce their business obligations or relationships.

NOTE 2: Seller may send his e-invoice for registration to more than one registrar. But the GST system and IRP will perform a de-duplication check with central registry to ensure that the IRN that is generated is unique for each invoice. Therefore, the IRP shall return ONLY ONE registered IRN for each invoice to the seller. In case of multiple registrars (more than one IRPs) only one IRP will return a valid IRN to the seller. Except one, all other IRPs will reject the request of registration.

NOTE 3: The QR code will enable quick view, validation and access of the invoices from the GST system from hand held devices.

26 |GSTNEWSLETTER

F. Direct Invoice Generation on IRP (Invoice Registration Portal)

Many people think that e-invoice will be generated from government’s tax portal. This is a myth and invoices will continue to be generated using an Accounting or a billing software, keeping in view the varied need of item master, buyer master, UQC etc. along with sub-second response from IR Portal (IRP). Thus, direct creation/generation of e-invoice from GST portal or any other government portal is not envisaged/planned.

Small taxpayers can use one of the eight free accounting/billing software currently listed by GSTN. Also, GSTN will provide Offl ine Tool where data of an invoice, generated on paper can be entered which in turn will create JSON fi le for uploading on the IRP. Taxpayers can also use one of the commercially available accounting/billing software for this purpose. All accounting and billing software companies are being separately asked to adopt the e-invoice standard so that their users can generate the JSON from the software and upload the same on the IRP.

G. Features of e-invoice systemThe Format of Unique Invoice Reference Number (IRN)

The unique IRN will be based on the computation of hash of GSTIN of generator of document (invoice or credit note etc.), Year and Document number like invoice number. This hash will be as published in the e-invoice standard and unique for this combination. This way hash will always be the same irrespective of the registrar who processes it. The hash could also be generated by the taxpayers based on above algorithm. The providers of accounting and billing software are being separately asked to incorporate this feature in their product. One can pre-generate and print it on the invoice book, however, the same will not make the invoice valid unless it is registered on the portal along with invoice details.

Note: The hash algorithm that is to be used by the taxpayers has been specifi ed in the e-invoice standard that is published. The hash will be the IRN. To ensure deduplication, the registrar will be required to send the hash to Central Registry of GST System to confi rm whether the same has been reported already. In case it has been reported by another registrar (as and when more registrars – IRPs – are added) and the Central Registry already has the same IRN, then the registrar will reject the registration and inform the sender. Only unique

invoices from a taxpayer will be accepted and registered by the registrar.

Digital Signing by e-Invoice Registration Portal:The invoice data will be uploaded on the IRP (Invoice Registration Portal), which will also generate the hash in order to verify it and then digitally sign it with the private key of the IRP. In case the taxpayer submits hash also along with invoice data, the same will be validated by IRN system. The IRP will sign the e-invoice along with hash and the e-invoice signed by the IRP will be a valid e-invoice and used by GST/E-Way bill system.

QR Code: The IRP will also generate a QR code containing the unique IRN (hash) along with some important parameters of invoice and digital signature so that it can be verifi ed on the central portal as well as by an Offl ine App. This will be helpful for tax offi cers checking the invoice on the roadside where Internet may not be available all the time. The web user will get a printable form with all details including QR code. The QR code will consist of the following e-invoice parameters:a) GSTIN of supplierb) GSTIN of Recipientc) Invoice number as given by Supplierd) Date of generation of invoicee) Invoice value (taxable value and gross tax)f) Number of line items.g) HSN Code of main item (the line item having

highest taxable value)h) Unique Invoice Reference Number (hash)The offl ine app will be provided on the IRP for anyone to download to authenticate the QR code of the invoice offl ine and its basic details. However, to see the whole invoice, one will have to connect to the portal and verify and see the details online. The facility to download entire invoice will be provided to tax offi cers, the way it is currently available under E-way bill system.

NOTE 4: The facility of QR code verifi cation will be made available only through the GST System and not the IRP. This is because the IRP will not have the mandate to store invoices for more than 24 hours. In order to achieve speed and effi ciency, the IRP will be a lean and focused portal for providing invoice registration and verifi cation service, IRN and the QR codes. Hence, storing of the invoices will not be a feature of the IRP.

GSTNEWSLETTER| 27

Multiple Registrar for IRN System: Multiple registrars (IRPs) will be put in place to ensure 24X7 operations without any break. To start with, NIC will be the fi rst Registrar. Based on experience of the trial more registrars will be added.

Standardization of Invoice: A technical group constituted by the GST Council Secretariat has drafted standards for e-invoice after having industry consultation. The e-invoice schema and template, as approved by the GST Council, are available at https://www.gstn.org/e-invoice.

H. CREATION OF E-INVOICE Modes for getting invoice registered:

Multiple modes will be made available so that taxpayer can use the best mode based on his/her need. The modes given below are envisaged at this stage under the proposed system for e-invoice, through the IRP (Invoice Registration Portal):

a). Web based,

b). API based,

c). SMS based,

d) mobile app based

e). offl ine tool based and

f) GSP based.

API mode: Using API mode, the big tax payers and accounting software providers can interface their systems and pull the IRN after passing the relevant invoice information in JSON format. API request will handle one invoice request at time to generate the IRN. This mode will also be used for bulk requirement (user can pass the request one after the other and get the IRN response within fraction of second) as well. The e-way bill system provides the same methodology.

Printing of Invoice: The taxpayer can continue to print his paper invoice as he is doing today including logo and other information. E-invoice schema only mandates what will be reported in electronic format to IRP.

Source: https://www.gst.gov.in/newsandupdates/read/326

28 |GSTNEWSLETTER

FAQs on E-Invoice System at GST Portal- Part-I

Generic questions on e-invoice1. Will businesses now be required to generate

e-invoices on the GST portal or the e-invoice portal or the IRN portal?

a. No.

b. Businesses will continue to generate e-invoices on their internal systems–whether ERP or their accounting / billing systems or any other application.

c. The e-invoicing mechanism only specifi es the invoice schema and standard so as to be inter-operable amongst all accounting/billing software and all businesses.

2. Please clarify whether there the current e-invoice schema is for the invoice to be issued by Govt or has to be maintained in the IT system by the tax payer?

a. The invoice schema has to be maintained and invoices generated using this schema by the taxpayer himself.

b. The GST portal or Invoice Registration Portal (IRP) will NOT provide facility to generate invoices. IRP is only to report the invoice data.

c. The ERP or accounting billing software or any other software tool to generate e-invoice of the seller shall only generate invoices.

3. Will there be separate invoice formats required for Traders, Medical Shops, Professionals and Contractors?

a. No.

b. Same e-invoice schema will be used by all kinds of businesses. The schema has mandatory and non-mandatory fi elds. Mandatory fi eld has to be fi lled by all taxpayers. Non-mandatory fi eld is for the business to choose. It covers all most all business needs and specifi c sectors of

business may choose to use those non-mandatory fi eld which are needed by them or their eco-system.

4. How long will the e-invoice generated would be available at the Government portal?

a. It is again clarifi ed that the e-invoice will not be generated at the GST portal.

b. It will be generated only at the seller’s system – whether ERP or the accounting/billing system/other software tools of the seller.

c. It will be uploaded into the GST ANX-1 only once it has been validated and registered by the invoice registration system.

d. After it has been validated and is available in the ANX-1, it will be visible to the counter party in his ANX 2.

e. Thereafter it will be visible and available for the entire fi nancial year and archived.

f. As far as data on IRP is concerned, it will be kept there only for 24 hours.

5. While all businesses generate invoice at the same time, how will the server react?

a. The businesses will generate the invoice at their system and hence that will not impact the servers of IRP.

b. The capacity of the system at IRP shall be built so as to handle the envisaged loads of simultaneous upload based on data reported in GSTR1 for last two years.

c. Subsequently, multiple invoice registrars will be made available that will be able to distribute the load for invoice registration.

6. Is it possible to auto populate fi elds of the e-invoice based on credentials entered? That way it can minimize data entry errors.

GSTNEWSLETTER| 29

a. Since the invoice generation is to happen at the business end, this can be built into the ERP or invoicing system of the seller. Most of such software provide this facility in the name of item master, supplier master, buyer master etc.

7. Will it be possible to add transporter details as well?

a. No.

b. The transporter details must be entered in the E-Way bill system only.

Contents of E-Invoice8. There are certain fi elds today which are

optional and some mandatory. How are these to be used?

a. The mandatory fi elds are those that MUST be there for an invoice to be valid under e-Invoice Standard.

b. The optional ones are those that may be needed for the specifi c business needs of the seller/business. These have been incorporated in the schema based on current business practices in India.

c. The registration of an e-invoice will only be possible once it has ALL the mandatory fi elds uploaded into the Invoice registration Portal (IRP).

d. A mandatory fi eld not having any value can be reported with NIL.

9. What is the maximum Number of line items supported by e-invoice?

a. The maximum number of line items per e-invoice is 100.

10. Does the e-invoice schema provide the maximum length of the various fi elds in the schema?

a. Yes.

b. Each fi eld specifi cation has been provided with the type of characters that are to be entered and its length as well.

11. What will be the threshold requirement for E-Invoicing applicability?

a. This will be notifi ed by the Government at the time of rollout.

b. As already mentioned above, the rollout

of the e-invoice mechanism will be in phases.

12. Will the e-invoice have columns to show invoice currency?

a. Yes, the seller can display the currency. Default will be INR.

13. Whether the IRN is to be captured in the Supplier’s ERP?

a. The IRN (hash) will be generated by GST System using GSTIN of supplier or document creator, fi nancial year and the unique serial number of the document/invoice. The IRN can also be generated by the seller.

b. The serial number of invoice will be unique for a GSTIN for a Fin Year and the same has to be captured by Supplier’s ERP.

c. Supplier has to keep the IRN against each of its invoice. It will be advisable to keep the same in the ERP as invoice without IRN will not be a legal document.

14. Whether e-invoice generated is also required to be signed again by the taxpayer?

a. Not mandatory. However, if a signed e-invoice is sent to IRP, the same will be accepted.

b. The e-invoice will be digitally signed by the IRP after it has been validated. The signed e-invoice along with QR code will be shared with creator of document as well as the recipient.

c. Once it is registered, it will not be required to be signed by anyone else.

15. Whether the facility of adding discount amount at line item-level would be mandatory in nature?

a. The e-invoice has a provision for capturing discount at line item level.

b. The discounting at line item level is to be mentioned only when and if it is

applicable in the particular transaction.

16. Can the seller place their LOGO in the e-Invoice Template?

a. There will NOT be a place holder provided in the e-invoice schema for the company logo.

30 |GSTNEWSLETTER

b. This is for the software company to provide in the billing/accounting software so that it can be printed on his invoice using his printer. However, the Logo will not be sent to IRP. In other words, it will not be part of JSON fi le to be uploaded on the IRP.

17. There should be a space provided for the QR code to be placed.

a. The QR code will be provided to the seller once he uploads the invoice into the Invoice Registration system and the same is registered there.

b. Seller can at his option may print the same on Invoice.

18. Will we be able to provide the address and bill-to party and PAN details in the e-invoice?

a. Yes.

a. It will be possible to provide all these details in the placeholders provided in the schema.

19. Would the Supplier be allowed to issue his own invoice and if yes, will the Invoice number and IRN be required to be mentioned?

a. Yes, the supplier will issue his own system’s invoice, in the standard e-invoice schema that has been published. Invoice

number is a mandatory item under GST and hence for e-invoice.

b. IRN (Hash) can be provided after the e-invoice has been successfully reported to the IRP. E-Invoice will be valid only if it has IRN.

20. The current e-invoice template provides for total discount for all the products or services. Will this be possible in the e-invoice?

a. Yes.

b. There is a mechanism and placeholders to provide discounting on item level as well as total discounts on the invoice value.

21. Will there be an option for linking multiple invoices in case of debit note/ credit note?

a. Yes, it will be allowed to link the credit/debit notes as hitherto fore.

22. Will the e-invoice schema cater to reverse charge mechanism?

a. Yes.

E-invoice system has a reverse charge mechanism reporting as well.

For downloading schema & template of ‘E-Invoicing’, click on the below link:-https://www.gst.gov.in/newsandupdates/read/326

GSTNEWSLETTER| 31

A. 13th December, 2019 B. 20th December, 2019 C. 10th December, 2019 D. 31th December, 2019

A. 50 B. 200 C. 100 D. 500

A. DRC-20 B. DRC-04 C. DRC-22 D. DRC-09

Answer: Q1-B, Q2-D, Q3- C, Q4-C, Q5-B

GST Quiz1 __________ is a payment form in which a taxpayer can pay the tax by raising its liability voluntarily or

in response to the show cause notice (SCN) raised by the Department.

A. RFD-01 B. DRC-03 C. ARA-01 D. RFD-10

5 Upon fi ling of Form GST DRC-03, the tax offi cer will issue an Acknowledgement in Form GST __________ (Acknowledgement of Acceptance of voluntary payment).

4 The maximum number of line items per E-Invoice is __________.

3 Due Date of GSTR 8 for the month of November, 2019 is __________.

2 _____________ is a refund form in which a taxpayer can fi le the LUT (Letter of Undertaking) for export of goods or services at the GST Portal.

A. Form GST RFD-10 B. Form GST RFD-01 C. Form GST RFD-09 D. Form GST RFD-11

gst newsletter 28-12-2019 - icsi · 2019. 12. 31. · gstnewsletter˜ 5 form gst drc-03 intimation...

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