Tax Tunnel

Due to the COVID-19 pandemic situation, where the govt. has extended various due dates relating  to GST return filing, waiver of late fee and interest etc. Among these one of important date relating to the revocation of cancelled GST registration  has been provided. In this article, we will discuss regarding the Cancellation of GST registration by the proper officer, revocation of cancelled GST registration and the latest extended due dates for the same. 1.) Cancellation of Registration As per section 29(2) of the CGST Act 2017, the proper officer may cancel the registration of a taxable person from such date, including any retrospective date, as he may deems fit in all the following cases: (a) a registered person has contravened such provisions of the Act or the rules made there under as may be prescribed; or (b) a person paying tax under section 10 has not furnished returns for three consecutive tax periods; or (c) any registered person, other than a person specified in clau...

What change has been done in Notification 55/2020-Central Tax and Notification 56/2020-Central Tax  dated 27.06.2020 Due to lot of confusion in the market related to Notification no. 55/2020-Central Tax and Notification no. 56/2020-Central Tax , that whether the due date of GSTR-3B and GSTR-1 has been extended till 31.08.2020 ? For Extended due dates of GSTR-1 and GSTR -3B please refer: https://taxtunnel.blogspot.com/2020/06/whether-due-date-of-gstr-3b-and-gstr-1.html For the removal of doubts, we are explaining about what type of extension has been done in these  Notification 55/2020-Central Tax and Notification 56/2020-Central Tax and these are as under: Notification No 55/2020 dated 27.06.2020 These notification has amend the previous Notification no 35/2020- Central Tax dated 03.04.2020 and  under these notification following extension has been given: Purpose Due date (Earlier) Due date (Amended) From department, authority...

Export without payment of tax After the introduction the GST in 2017, any “supply”  of goods or services or both is  taxable subject to some exemption given for specific goods and services. Therefore, the export of goods  and services is also taxable, subject to refund that can be reclaimed later against the tax paid. For considering the difficulties faced by the exporter in the process of refund and efforts for taking  refund for the goods and services which have been exported, the government has introduced the concept of " Letter of Undertaking (LUT) or Bond". Under the GST Scenario, exporter has two options:  Export the goods and services by paying tax and later reclaim by apply refund for the tax paid or, Export the goods and service without paying tax by issuing Letter of undertaking or  Bond Under this article, we are explaining the two ways for exporting the goods and services without payment f tax:          1. LUT ( Letter o...

Government vide Notification No. 35/2020 dated 24th June 2020, has further extended the time limits for various filings to provide relief to taxpayer. The extended dates are; S.No Particulars Due Date 1 The time limit for filing of original as well as revised income tax return for the FY 2018-19 (AY 2019-20) 31 st July 2020 2 The due date for filing income tax return for the FY 2019-20 (AY-2020-21) i.e. the returns which are to be filed by 31 st July 2020 and 31 st October 2020. 30 th November 2020 3 Due date for filing Tax Audit Report for FY-2019-20 31 st October 2020 4 Due date for payment of self-assessment tax in case of a taxpayer whose self-assessment tax liability is up to Rs. 1 Lakh 30 th November 2020 5 Due date for making various investment/ payment for claiming deduction under Chapter-V...

Government vide Notification No. 37/2020 - Central Tax, dated 28th April 2020 appointed 21st April 2020 as the date on which the CGST (Fourth Amendment) Rules, 2019 made via Notification No. 31/2019 - Central Tax, dated 28th June 2019 shall come into force. The latter notification states (point no. 9 clause c)  that, "Under rule 87 after sub-rule (12) the following sub-rule (13) shall be inserted which says:" "(13) A registered person may, on the common portal, transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under the Act to the electronic cash ledger for integrated tax, central tax, State tax or Union territory tax or cess in FORM GST PMT-09.”. This amendment has given a huge relief to the registered taxpayers, it enables them to reallocate any amount of tax, interest and penalty etc., that is available in the electronic cash ledger to any other head under tax, interest, penalty under CGST/SGST/IGST in th...

Renting of Motor Vehicle - RCM  Government via Notification no. 22/2019 of CTR inserted Entry no. 15 in Notification no. 13/2017 dated 28th June 2017, w.e.f. 1st October 2019 to cover renting of motor vehicle under Reverse Charge Mechanism (RCM). However there were certain ambiguities with regards to the 'wording' of this notification. As per notification:  S.No Category of supply of service Supplier of service Recipient of service (1) (2) (3) (4) 15 Services provided by way of renting of motor vehicle provided to a body corporate . Any person other than a body corporate , paying central tax at the rate of 2.5% on renting of motor vehicles with input tax credit only of input service in the same line of business. Any  Body Corporate located in the taxable territory.   The above insertion appeared to be applicable in case where the service...

Will RCM be applicable in case of Purchase from unregistered supplier? As you might be aware that, as per Section 9(4) of CGST Act, 2017 , RCM is to be paid in case of intra-state purchase from unregistered supplier was suspended till 31 st March 2019 through different notifications which have been issued by the government from time to time. After a long gap, Sub-section (4) of Section 9 of CGST Act 2017 vide NotificationNo. 07/2019- Central Tax (Rate) has been effective from 01 st April, 2019 and will be applicable on “Promoters” only for the specified supplies.   Before discussing the same, let’s briefly discuss about Section 9(4) of CGST Act, 2017 which was amended in Central Goods and Service Tax (Amendment) Act, 2018 “The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on re...