TAX BULLETIN

July - 2020

DIRECT TAX UPDATES

Judicial Updates

Summary:

In this case, the issue under consideration was whether in case of exports, income in form of duty drawback and cash

compensatory assistance is taxable on accrual basis when same is sanctioned by custom authorities or when assessee

raises a claim in respect thereof.

The Karnataka High Court examined the issue and observed that an amount would be receivable only when the

income accrues to the assessee and income would accrue to the assessee only when the assessee gets such a right to

receive the income. It has further been held that assessee would get a right to receive the amount only when it is

sanctioned to the assessee by the custom authorities and not when the assessee makes a claim of the same. It was

also held that since, the amount of cash compensatory assistance and duty drawback during the relevant year was

not sanctioned to the assessee therefore, the income has not accrued to the assessee.

Read Full Judgement: CIT v. Asea Brown Boveri Ltd.

1. Income in form of duty drawback and cash compensatory assistance accrues only when same is sanctioned by custom authorities

Case of: CIT v. Asea Brown Boveri Ltd. [High Court, Karnataka] In favour of: Assessee

2. An assessee, engaged in real estate business & entering into development agreement for devel-opment of a township, shall be considered to have set up its business during relevant year

Summary:

The Assessee was engaged in the real estate business. During the relevant year, assessee raised huge amount of

loan from banks and made investment in purchase of land which was reflected as stock in trade. The assessee also

entered into development agreement with other builders for development of a township. The assessee filed its

return claiming deduction of interest paid on amount borrowed. The Assessing Officer taking a view that assessee

had not started its business in assessment year in question, rejected assessee's claim holding that said expenditure

was in nature of preoperative business expenditure. It was undisputed that assessee had established its company,

borrowed funds for purchase of portion of land in own name and further gave loan to associates for acquisition of

land and then entered into development agreement for development of township. The Delhi Bench of ITAT

considered the matter and concluded that assessee had not only set up its business but had also commenced its

business during relevant year and, thus, assessee's claim for deduction was to be allowed under section 36(1)(iii).

Read Full Judgement: ACIT v. Jindal Realty (P) Ltd.

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Case of: ACIT v. Jindal Realty (P) Ltd. [ITAT, Delhi] In favour of: Assessee

Summary:

The Appeal was filed before the Tribunal on the question that whether while initiating reassessment proceedings,

Assessing Officer is supposed to provide complete details of reasons recorded and not merely few extracts of said

reasons so that assessee can prepare its defence effectively against proposed reopening of assessment. The Tribunal

while deciding in favor of the assessee held that while reopening the assessment, the assessing officer has to provide

complete details of reasons to believe recorded while reopening and merely providing extracts of reasons shall

defeat the purpose of the reassessment proceedings as such. This act of the Assessing officer restricts the assessee’s

ability to prepare a proper and effective defence against the proposed reassessment.

Read Full Judgement: Wimco Seedlings Ltd. v. JCIT

3. While initiating reassessment proceedings, Assessing Officer is supposed to provide complete de-tails of reasons recorded and not merely few extracts of said reasons

Case of: Wimco Seedlings Ltd. v. JCIT [ITAT, Delhi] In favour of: Assessee

4. Levy of late fee under section 234E is mandatory in nature and AO has no discretion to take its own decision

Case of: Block Development Officer v. ACIT [ITAT, Jaipur] In favour of: Revenue

Summary:

In this case, the assessee, a Government Officer, was responsible for block and panchayat level development

programs. Assessee made various payments in respect of carrying out those programs and deducted TDS on those

payments. However, there was delay in submitting TDS statements as required under section 200(3) for each

quarter. Assessee argued that due to paucity of staff and technical knowledge, there was delay in submitting

quarterly TDS statements. The Assessing Officer (AO) having rejected assessee's explanation, levied late fee under

section 234E. The Tribunal held that the levy of late fee under section 234E is mandatory in nature and AO has no

discretion to take its own decision but he has to make adjustment on account of levy of late fee as provided under

section 234E in case there is a delay in submitting TDS statement.

Read Full Judgement: Block Development Officer v. ACIT

SNR & Company 2

Judicial Updates

Summary:

The assessee filed his ITR for AY 2014-15 and disallowed only 30% of expenses on account of non-deduction of tax at

source on account of amendment made by Finance Act (No. 2) of 2014 instead of 100%. The AO rejected the

contention of the assessee and held that the amendment made by Finance Act (No. 2) of 2014 was applicable from

AY 2015-16 and therefore, 100% of the disallowance shall be made for the AY 2014-15.

The Tribunal held that the amendment made by Finance Act (No.2) to section 40(a)(ia) with effect from 01-04-2015

whereby disallowance of expenses under section 40(a)(ia) on account of non-deduction of TDS has to be restricted to

30% of expenses as against 100%, is curative in nature and thus the same has to applied retrospectively.

Read Full Judgement: Muradul Haque v. ITO

5. Amendment made by Finance Act (No. 2) to section 40(a)(ia) with effect from 01-04-2015, is cura-tive in nature and thus must be applied retrospectively

Case of: Muradul Haque v. ITO [ITAT, Delhi] In favour of: Assessee

SNR & Company 3

Judicial Updates

Summary:

The assessee earned long term capital gain from sale of shares. To claim deduction under section 54F, he constructed

a residential house property. The Assessing Officer held that assessee owned nine residential flats in his name and,

thus, he was not eligible to claim deduction in terms of proviso (a)(i) and (b) to section 54F(1). The Tribunal also

confirmed order passed by Assessing Officer. The assessee filed an appeal before the High Court and the High Court

noticed that out of nine apartments, seven had been sanctioned for commercial purpose. As regards remaining two

apartments, even though those apartments had been sanctioned for residential purpose, yet same were being used

for commercial purpose as serviced apartments. The High Court held that usage of property has to be considered for

determining whether property in question is a residential property or a commercial property. Further, it was held

that since it was not in dispute that two apartments in question were being put to commercial use, said apartments

could not be treated as residential apartments. Accordingly, High Court held that the assessee is eligible to claim of

deduction U/s 54F(1).

Read Full Judgement: Navin Jolly v. ITO

6. Deduction under section 54F(1) to be allowed where two apartments although sanctioned for residential purpose, were being used for commercial purpose as service apartments

Case of: Navin Jolly v. ITO [High Court, Karnataka] In favour of: Assessee

Summary:

The assessee being a housing finance company, claimed a deduction of 20% of the profits derived from the business

u/s 36(1)(viii) as being transferred to a special reserve. The AO held that ‘Other Operating Incomes’ are not in the

nature of income derived from providing long term finance. Further, the AO did not consider income derived from

Plot Loans and Prosperity Loans (Mortgage Loans) given as eligible for the purpose of calculating income u/s 36(1)

(viii). The assessee filed an appeal before the CIT(A), where relief was given to the assessee.

Subsequently, the revenue went in appeal before the Tribunal. The Tribunal held that the income from Plot Loans

given to the borrower for construction of residential house shall not be considered for calculating eligible deduction

u/s 36(1)(viii), if such residential house has not been constructed within a period of 3 years.

Read Full Judgement: DCIT v. Repco Home Finance (P.) Ltd.

7. Plot loan was to be classified as a commercial loan, where borrower failed to construct on plot of land for residential house within 3 years

Case of: DCIT v. Repco Home Finance (P.) Ltd. [ITAT, Chennai] In favour of: Revenue

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Judicial Updates

Summary:

In this case, the Assessing Officer issued penalty notice for levying penalty u/s 271B of the Income Tax Act i.e. failure

to get accounts audited. In the said notice, the AO had not spelt out exactly what was fault for which assessee was

being proceeded against for levy of penalty. Assessing Officer had not struck down irrelevant portion/fault which was

not applicable in facts and circumstances of case. The Tribunal held that the notice proposing penalty should clearly

spell out fault/charge for which assessee was put on notice, so that he could defend charge properly, since impugned

penalty notice was vague, penalty order was also bad in eyes of law.

Read Full Judgement: North Eastern Constructions v. ITO

8. Where in penalty notice, Assessing Officer had not spelt out the fault for which assessee was be-ing proceeded for levy of penalty, notice was vague. Hence, penalty order was also bad

Case of: North Eastern Constructions v. ITO [ITAT, Guwahati] In favour of: Assessee

Circulars/ Notifications

New Income Tax Return e-filing utilities for ITR-1 [Salary] and ITR-4 [Presumptive Taxation] are now available for

filing. Income tax portal has updated ITR forms for AY 2020-21 with many updates. Some of the key updates are as

follows:

• Passport: One needs to disclose the Passport number if held by the taxpayer. This is to be furnished both in ITR 1-

Sahaj and ITR 4-Sugam.

• Cash Deposit: For those filing ITR 4-Sugam, it has been made compulsory to declare the amount deposited as cash

in a bank account, if such amount exceeds Rs 1 crore during the FY.

• Foreign Travel: If you have spent more than Rs 2 lakh on travelling abroad during the FY, you need to disclose the

actual amount spent.

• Electricity Consumption: If your electricity bills have been more than Rs 1 lakh in aggregate during the FY, you

need to disclose the actual amount.

• Investment Details: Details of investment qualifying for deduction under chapter VIA with bifurcation of details of

investment made during the period from April 1, 2020 to June 30, 2020.

View ITR Forms: ITR Forms AY 2020-21

1. New ITR Forms e-filing utility for AY 2020-21 made available:

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CBDT vide Notification No. 32/2020 dated 12.06.2020 notified the Cost of Inflation Index (CII) FY 2020-21 (AY 2021-22)

as ‘301’ for the purpose of computation of Capital Gains. The same has been increased by 4.15% over the preceding

financial year which was at 289 in the last year 2019-20.

CII is that this number is used to arrive at the inflation-adjusted cost price of assets transferred for the purpose of

computing long-term capital gains

Detailed Notification: 32/2020

2. CBDT notified Cost Inflation Index for AY 2021-21:

Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 [the Ordinance] was brought on 31st

March 2020 which, inter alia, extended time limits for various compliances under Income Tax and Other Acts. To

provide further relief, the Government has further extended various timelines by way of CBDT Notification No.

35/2020, the salient features of which are as under:

Detailed SNR Alert: SNR Income Tax/2020-21/05

Read Notification: 35/2020

3. CBDT issues Notification on Extension of time limits under the Income Tax Act, 1961 and related Acts:

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4. CBDT amended Rule 11UAC to specify new set of transactions to which provisions of section 56(2)(x) shall not apply:

CBDT, vide Notification No. 40/2020 issued Income Tax (14th Amendment) Rules, 2020 has modified Rule 11UAC to

specify such class of persons to which provisions of Section 56(2)(x) shall not be applicable.

The newly introduced Rule 11UAC states that the provisions of section 56(2)(x) shall not apply to: -

any immovable property, being land or building or both, received by a resident of an unauthorised colony in the

NCT of Delhi, where the Central Government regularised the transactions of such immovable property based on

the latest Power of Attorney, Agreement to Sale, Will, possession letter and other documents including

documents evidencing payment of consideration for conferring or recognising right of ownership or transfer or

mortgage in regard to such immovable property in favour of such resident.

Circulars/ Notifications

Particulars Original Due Date Revised Due Date

Income Tax Return for AY 2019-20 31st March 2020 31st July 2020

Income Tax Return for AY 2020-21 31st July 2020/ 31st

October 2020 30th November 2020

Self-Assessment Tax for AY 2020-21

[Liability upto ₹ 1 Lac]

31st July 2020/ 31st

October 2020 30th November 2020

Time Limit for making Tax-Saving Investments u/s 80C

etc. for AY 2020-21 31st March 2020 31st July 2020

Time Limit for making Capital Gains Tax-Saving Invest-

ments u/s 54 to 54GB for AY 2020-21 31st March 2020 30th September 2020

Filing of TDS Returns for the quarter ending on 31st 31st May 2020 31st July 2020

Filing of TCS Returns for the quarter ending on 31st 15th May 2020 31st July 2020

Issuance of Form 16/16A 15th June 2020 15th August 2020

Linking of Aadhaar with PAN 30th June 2020 31st March 2021

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any movable property, being unquoted shares, of a company and its subsidiary and the subsidiary of such

subsidiary received by a shareholder, where: -

The Tribunal, on an application moved by the Central Government under section 241 of the Companies Act,

2013, has suspended the Board of Directors of such company and has appointed new directors nominated by

the Central Government under section 242 of the said Act; and

Share of company and its subsidiary and the subsidiary of such subsidiary has been received pursuant to a

resolution plan approved by the Tribunal under section 242 of the Companies Act, 2013 after affording a

reasonable opportunity of being heard to the jurisdictional Principal Commissioner or Commissioner.

Any movable property, being equity shares, of the reconstructed bank, received by the investor or the investor

bank, as the case may be, where the said share has been allotted by the reconstructed bank under the scheme at

a price specified in sub-paragraph (3) of paragraph 3 of the scheme.

Read Notification: 40/2012

Circulars/ Notifications

GST UPDATES

Judicial Updates

Summary:

AAR observed that in accordance with the provisions of section 10 of IGST Act, place of supply shall be the location

where the movement of goods terminates for delivery to the recipient. The delivery of goods is not terminated at the

factory gate as they are subsequently transported to the location of final recipient.

Accordingly, AAR has held that IGST has to be levied on ex-factory inter-state supplies.

Read full judgment: M/s. Penna Cement Industries Limited

1. IGST to be levied in case of ex-factory inter-state supply of goods

Case of: M/s. Penna Cement Industries Limited Decision by: AAR, Telangana

2. Merchant trade transaction involving supply of goods from outside India to customer located outside India is an interstate supply not qualifying as exports

Case of: M/s Sterlite Technologies Limited Decision by: AAR, Gujarat

Summary:

The Gujarat AAR held that in a bill to ship to transaction, where the goods are supplied by a person located

outside India to a customer located outside India, the place of supply will be the place where movement

terminates i.e., outside India and therefore such transaction will qualify as an interstate supply liable to IGST. The

said supply cannot be held as export since goods are not moving from India to place outside India. The AAR ruled

that no GST leviable on procurement from vendor outside India since the goods did not cross customs frontier.

However, supply to customer located outside India will be subject to applicable IGST.

SNR Critical Analysis: Article

Read full judgment: Sterlite Technologies Limited

SNR & Company 8

Judicial Updates

Summary:

Gujarat AAR has held that sale of land after building basic amenities such as drainage line, water line, electricity line,

land levelling etc. will not be mere sale of land and therefore taxable under the category ‘construction of complex

intended for sale to buyer’ services. The authority noted that the land was being sold on the basis of super built up

area and not the actual measure of plot. It was also noted that sale price of such plots includes cost of land as well as

cost incurred on the common amenities which varies from case to case.

Detailed SNR Alert: GST/2020-21/13 Read full judgment: Shree Anil Dipesh Kumar Nayak

3. Building necessary amenities on land intended for sale are taxable supply of services in form of ‘construction of complex

Case of: M/s Shree Anil Dipesh Kumar Nayak Decision by: AAR, Gujarat

4. GST applicable on leasing charges of premises leased for the purpose of cold storage of agricul-ture produce.

Case of: Gubba Cold Storage Private Limited Decision by: AAR, Telangana

Summary:

Renting/leasing of the premises of cold storage by one entity to another entity amounts to renting/leasing of

immovable property and does not fall within the ambit of storage services of agriculture produce. In terms of clause

(a) of para 5 of the Schedule II (appended to the GST Act), read with Section 7 of the GST Act, renting of immovable

property is to be treated as supply of service. Thus, providing non-residential property on rental basis is a supply of

service which is classifiable under SAC No.997212. The said supply of service is chargeable to tax @18% under

residuary entry at Sl. No. 35 of Not. No. 11/2017-CT (R) dated 28.06.2017.

Read full judgment: Gubba Cold Storage Private Limited

SNR & Company 9

Judicial Updates

Summary:

• AAR observed that the product parota is not a ready to eat food but has to be heated before consumption.

Accordingly, the classification does not merit the chapter heading 1905 but evenly falls under chapter heading

2106.

• Further the products khakhra, plain chapatti or roti (collectively referred to as ‘other products’) are completely

cooked and do not require any processing or heating before consumption.

• Also, the product parota is different from other products in common parlance, thus not falling under entry no.

99A of the rate notification.

• The AAR held that parota is classified under chapter heading 2106 with 18% GST and is not covered under entry

no.99A of the rate notification, thus GST at the rate of 5% is not applicable on it.

Read full judgment: ID Fresh Food (India) Private Limited

5. Parotas are different from rotis and will attract 18% GST

Case of: ID Fresh Food (India) Private Limited Decision by: AAR, Karnataka

6. High Court allowed the taxpayer to revise FORM GST TRAN-1 on or before 30 June 2020

Case of: M/s SKH Sheet Metals Components Vs UOI Decision by: High Court, Delhi

Summary:

The Hon’ble Delhi High Court has allowed the petition and permitted the taxpayer to revise FORM GST TRAN-1 on or

before 30 June 2020 and transition the entire ITC, subject to verification by the tax authority. Tax authority was

instructed to either open the online portal so as to enable the taxpayer to file revised TRAN-1 declaration

electronically, or to accept the same manually. Tax authority shall thereafter process the claims in accordance with

law.

Read full judgment: SKH Sheet Metals Components Vs UOI

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Judicial Updates

Summary:

Supreme Court has stayed Delhi HC decision in case of Brand Equity Treaties Limited Vs Union Of India which

permitted the assesses to file Form Tran-1 on or before June 30, 2020.

Earlier in In Brand Equity case Delhi High Court Court has directed the Department to allow all assesses to claim input

tax credit in TRAN-1 by 30.6.2020. The direction would apply to all those who could not file TRAN-1 and claim input

tax credit. The court has further directed that it should be advertised that all taxpayers who have not filed TRAN 1

can do so by 30.6.2020. The judgment was applicable to all irrespective of whether the taxpayer has approached the

court or not.

Read full judgment: Brand Equity Treaties Ltd. Vs UOI

7. Supreme Court stayed the Delhi High Court ruling of Brand Equity Treaties Limited case, which allowed transition of ITC within 3 years from the appointed date

Case of: Brand Equity Treaties Ltd. Vs UOI Decision by: Supreme Court

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The CBIC has notified 8th June’ 2020 as the date from which rule 67A of CGST rules shall come into effect which

enables the filing of Nil return through SMS facility.

Detailed SNR Alert: GST/2020-21/10

Read Notification: 44/2020– Central Tax

1. Filing of Nil Return through SMS

2. Extension of period of special procedure for taxpayers of Union Territory of erstwhile Daman

and Diu or Dadra and Nagar Haveli

Special procedure had been notified for taxpayers of the above-mentioned union territories owing to the merger of

these union territories from 27 January 2020. The taxpayers were required to comply with these procedures until 31

May 2020. The said timeline has been extended till 31 July 2020.

Detailed SNR Alert: GST/2020-21/10

Read Notification: 45/2020 - Central Tax

3. Extension of time period to pass refund order

Section 54(7) of the CGST Act, 2017, specifies a time limit of 60 days for the passing of refund order from the date of

receipt of application, complete in all respects. Owing to the COVID-19 outbreak in the country, in cases of refund

claims where notice has been issued to the taxpayer for partial/full rejection of refund and the time limit for issuance

of order falls in the period 20 March 2020 and 29 June 2020, such time limit shall be extended by 15 days from the

receipt of reply from the taxpayer or 30 June 2020, whichever is later.

This amendment has been made with retrospective effect from 20 March 2020.

Detailed SNR Alert: GST/2020-21/10

Read Notification: 46/2020 - Central Tax

4. Extension of validity of E-Way Bill

In April, as part of the COVID-19 reliefs extended by the CBIC, validity of E-way bills expiring between the period 20th

March 2020 and 15th April 2020, was extended up to 31st May 2020 vide notification no: 35/ 2020 – CT dated 3rd

April 2020. A new proviso has been inserted in the notification which specifies that any E-way bill generated on or

before 24th March 2020 and whose validity expires on or after 20th March 2020, shall be extended up to 30th June

2020. This amendment has been made with effective from 31st May 2020.

Detailed SNR Alert: GST/2020-21/10

Read Notification: 47/2020 - Central Tax

SNR & Company 12

Circulars/ Notifications

• Ladakh is included in the list of Union Territories (UT) and due to merger of ‘Dadra and Nagar Haveli’ and ‘Daman

and Diu’, appropriate changes are made in the definition of UT

• Removed the restriction on the Central government in setting-up of the Bench of the Appellate Tribunal in the

erstwhile state of Jammu & Kashmir and also deleted the proviso, which gives power to Jammu and Kashmir GST

Act, 2017 to constitute Appellate Tribunal. It will enable the Government to constitute of Appellate Tribunal

under the CGST Act, 2017 in the Union territory of Jammu and Kashmir and Ladakh, as applicable to other States;

• As per section 168(2) of CGST Act, 2017 the Commissioner or Joint Secretary can exercise the powers specified in

the sections stated in section 168(2) of CGST Act, 2017 with the approval of the Board. Following matters have

been withdrawn from its purview:

Section 66(5) of CGST Act, 2017 - In case of special audit under section 66 of CGST, 2017, the expenses of the examination and audit of records, including the remuneration of Chartered accountant or Cost accountant, shall be determined and paid by the Commissioner and such determination shall be final;

Second proviso of section 143(1) of CGST Act, 2017 - In case of job work procedure the period of one year and three years for return of inputs and capital goods may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding one year and two years respectively.

• If any difficulty arises in giving effect to any provision of CGST or IGST Act, 2017 the Government may, on the

recommendations of the GST Council, by a general or a special order published in the official gazette, make such

provisions not inconsistent with the provisions of the Acts or the rules or regulations made thereunder, as may be

necessary or expedient for the purpose of removing the said difficulty within the period of 3 years from the date

of commencement of the CGST or IGST Act. The said period has been extended till 5 years.

• The amendments will be effective from 30 June 2020.

Read Notification: 49/2020 - Central Tax & 4/2020 - Integrated Tax

5. Power to setup Appellate Tribunal, Change in the list of Union Territory, etc.

SNR & Company 13

Circulars/ Notifications

6. Power to setup Appellate Tribunal, Change in the list of Union Territory, etc.

Central Board of Indirect taxes and Customs (CBIC) had, earlier, introduced the facility of verifying the GSTR-3B return,

during the period 21st April 2020 to the 30th June 2020, through Electronic Verification Code (EVC) for companies

registered under the provisions of the Companies Act, 2013. The said facility has been extended till 30th September

2020. Moreover, EVC facility has been extended for the filing of GSTR-1 returns also during the period 27th May 2020

to 30th September 2020.

Read Notification: 48/2020 - Central Tax

CBIC has amended rule 7 of CGST Rules, 2017 to include the entry in the composition rate table that prescribes 6%

(CGST + SGST) composition rate. The effective date for the changes will be 1st April 2020. The substituted table is as

follows:

Read Notification: 50/2020 - Central Tax

7. GST Rates for Composition Dealers

8. Interest and Late Fees payable on belated filing of GSTR-3B

• Interest on belated filing of GSTR-3B

• Waiver of late fee payable on belated GSTR-3B

Note:- For aggregate turnover less than 5Cr, kindly refer the compliance calendar.

Read Notification: 51/2020 - Central Tax & 52/2020 - Central Tax read with Circular 141/11/2020

SNR & Company 14

Circulars/ Notifications

S.NO.

Section under which composition levy is opted

Category of registered persons Rate of tax (CGST)

1 Sub-sections (1) and (2) of section 10

Manufacturers, other than manufacturers of such goods as may be notified by the Government

0.5% of the turnover in the State or Union territory

2 Sub-sections (1) and (2) of section 10

Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II

2.5% of the turnover in the State or Union territory

3 Sub-sections (1) and (2) of section 10

Any other supplier eligible for composition levy under sub-sections (1) and (2) of section 10

0.5% of the turnover of taxable supplies of goods and services in the State or Union territory

4 Sub-section (2A) of section 10

Registered persons not eligible under the composi-tion levy under sub-sections (1) and (2), but eligible to opt to pay tax under subsection (2A), of section 10

3% of the turnover of taxable supplies of goods and services in the State or Union territory

Sl. No Class of Registered Person Place of business Feb-20 Mar-20 Apr-20

1 Aggregate turnover of more than INR 5 Cr. in the preceding financial year

All states First 15 days from the due date – NIL and; 9%

thereafter till June 24, 2020

Sl. No Class of Registered Person Place of business Tax Period Condition for filing GSTR 3B- To be filed on or be-

1 Aggregate turnover of more than INR 5 Cr. in the preced-

ing financial year All states

February 2020, March 2020, April

2020. 24-Jun-20

The amount of late fee payable shall be waived for the months or quarter as mentioned in the table below for the

registered persons who furnishes the details of their outward supplies in Form GSTR-1 on or before the said dates:

Read Notification: 53/2020 - Central Tax

9. Waiver of late fees payable on belated GSTR-1

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Circulars/ Notifications

10. Extension of the due date of filing Form GSTR-3B

CBIC has extended the due date of filing FORM GSTR-3B for the tax period August 2020 for the class of registered

person whose aggregate turnover during the previous financial year does not exceed INR 5cr to 1st October’ 2020 &

3rd October’ 2020 for States-1 & States-2 category of states respectively.

Read Notification: 54/2020 - Central Tax

Sl. NO. MONTH/QUARTER DATES (on or before)

1 Mar-20 10-Jul-20

2 Apr-20 24-Jul-20

3 May-20 28-Jul-20

4 Jun-20 05-Aug-20

5 Jan to Mar 20 17-Jul-20

6 Apr to Jun 20 03-Aug-20

11. Extension of due dates for filing Form GSTR-3B

Time limit for completion or compliance of any action required to be undertaken by a registered person and/ or a tax

authority as provided in Notification 35/2020-central tax dated 3rd April 2020 during Mar 20, 2020 to Aug 30, 2020

under the CGST Act has been extended till Aug 31, 2020.

Read Notification: 55/2020 - Central Tax

12. Period to pass GST refund order has been extended

As per Section 54 of CGST Act, the proper officer is required to issue a refund order sanctioning the refund claim,

within a period of sixty days from date of receipt of application of refund. In instances where a notice has been issued

for rejecting the claim in full or in part and the time limit of sixty days falls during the period March 20, 2020 to Aug

30, 2020, the said time limit has been extended by fifteen days after the receipt of reply to the notice or till Aug 31,

2020, whichever is later.

Read Notification: 56/2020 - Central Tax

Read Notification: 57/2020 - Central Tax

13. Late fees for filing GSTR-3B for the months of July 2017 to January 2020

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Circulars/ Notifications

14. Clarification in respect of refund related issues

Circular no:135/05/2020 dated 31 March 2020 had imposed a restriction on refund of unutilized input tax credit, only

to the extent of invoices that are available in Form GSTR-2A. Due to lack of clarity in the said circular, various refund

authorities were restricting refund in respect of imports, ISD and RCM invoices for non-appearance in Form GSTR-2A.

Thus, it has been clarified that ITC in respect of imports, ISD invoices and the inward supplies liable to Reverse Charge

(RCM supplies) will continue to be same as it was before the issuance of circular no:135/05/2020-GST dated 31 March

2020 (i.e. matching with Form GSTR-2A is not required for refund of such invoices).

Detailed SNR Alert: GST/2020-21/11

Read Circular: 139/09/2020

15. Clarification in respect of director’s remuneration

One of the most debatable topic in the recent times related to taxability of remuneration paid to Director has now

been clarified by CBIC through this circular.

• The circular clarifies that as per Companies Act, 2013, independent directors do not qualify as employees of the

company and therefore, the recipient of services (i.e. the Company) will be liable to discharge GST under RCM on

remuneration paid to independent directors.

• If remuneration paid to the directors (who is also an employee of the company) is subject to TDS under IT Act

being in the nature of “salaries paid to directors”, then the same will qualify as consideration in lieu of “services

provided by an employee to the employer in the course of or in relation to his employment” and will be outside

the purview of GST as per Schedule III to the CGST Act.

However, if such remuneration is subject to TDS being in the nature of “fee for professional or technical services”,

then the same will be outside the scope of Schedule III to CGST Act and will be subject to GST.

Detailed SNR Alert: GST/2020-21/11

Read Circular: 140/10/2020

Sl.No Amount of late fee waived Condition

1

The total amount of late fee payable for a tax period

shall stand waived which is in excess of an amount of

two hundred and fifty rupees

If the registered person who failed to furnish the re-

turn in FORM GSTR-3B for the months of July 2017 to

January 2020, by the due date but furnishes the said

return between the period from 01 July 2020 to 30

September 2020. 2

The total amount of central tax payable in the said

return is nil, the total amount of late fee payable for

a tax period shall stand waived.

It is clarified that for the purpose of calculating the period of 30 days for filing application for revocation of

cancellation of registration under section 30(1) of the CGST Act, 2017 for those registered persons who were served

notice under section 29(2)(b) or (c) in the manner as provided in section 169(1)(c) or (d) and where cancellation order

was passed up to 12 June 2020, the later of the following dates shall be considered:

• Date of service of the said cancellation order; or

• 31 August 2020.

Read Notification: 57/2020 - Central Tax

16. Extension on the time limit for filing application for revocation of cancellation of registration

SNR & Company 17

Circulars/ Notifications

COMPLIANCE CALENDAR

Compliance Calendar

SNR & Company 18

Date Particulars

07-07-2020 Due date for deposit of Tax deducted/collected for the month of June 2020.

15-07-2020

Due date for furnishing of Form 24G by an office of the Government where TDS/TCS for the

month of February 2020, March 2020 & June 2020 has been paid without the production of a

challans. Due date for issue of TDS Certificate for tax deducted under section 194-IA in the month of

May 2020* Due date for issue of TDS Certificate for tax deducted under Section 194-IB in the month of

May 2020* Due date for issue of TDS Certificate for tax deducted under Section 194M in the month of

May 2020*

Quarterly statement of TCS deposited for the quarter ending 30 June 2020*

Upload the declarations received from recipients in Form No. 15G/15H during the quarter

ending June 2020*

30-07-2020

Due date for furnishing of challan-cum-statement in respect of tax deducted under section

194-IA for the month of June 2020* Due date for issue of TDS Certificate for tax deducted under Section 194-IB in the month of

June 2020* Due date for issue of TDS Certificate for tax deducted under Section 194M in the month of

June 2020*

31-07-2020

Quarterly statement of TDS deposited for the quarter ending June 30 2020

Quarterly statement of TDS deposited for the quarter ending March 31 2020

Due date for furnishing of challan-cum-statement in respect of tax deducted u/s 194-IA, 194-

IB and 194M for the months of Feb 2020 and March 2020

Annual return of income for the AY 2019-20 for all assesses

Quarterly return of non-deduction of tax at source by a banking company from interest on

time deposits in respect of quarter ending June 30, 2020.

* The due dates for all other compliances which fall between 20-03-2020 and 31-12-2020 have been extended to 31-03-2021 vide the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 read with Notification No. 35 /2020, dated 24-06-2020.

SNR & Company 19

Compliance Calendar

GSTR-3B if Turnover is more than Rs. 5 crore

Tax Period Due Date Revised Due Date

No Late Fees**

No Interest Interest rate @ 9%

Interest rate @ 18%

February’ 2020 20.03.2020 24.06.2020 No late fees till 24.06.2020

Till 04.04.2020

05.04.2020 to 24.06.2020

From 25.06.2020 i.e. if return filed after 24.06.2020

March’2020 20.04.2020 24.06.2020 Till 05.05.2020

06.05.2020 to 24.06.2020

April’2020 20.05.2020 24.06.2020 Till 04.06.2020

20.05.2020 to 24.06.2020

May’2020 27.06.2020 NA After 27.06.2020

June’2020 20.07.2020 After 20.07.2020

July’2020 20.08.2020 After 20.08.2020

August’2020 20.09.2020 After 20.09.2020

**Maximum late fees shall be levied Rs. 250 per act i.e. Rs. 250 (CGST) & Rs. 250 (SGST) for the months of February’2020 to July,2020. (As amended by N.N. 52/2020-CT dated 24th June,2020 & N.N. 57/2020-CT dated 30th June,2020)

GSTR-3B if Turnover is up to Rs. 5 crore - Category 1*

Tax Period Due Date Revised Due Date

No Late Fees**

No Interest Interest rate @ 9%

Interest rate @ 18%

February’2020 22.03.2020 30.06.2020 30.06.2020 30.06.2020 01.07.2020-30.09.2020

From 01.10.2020 i.e. if return filed after 30.09.2020

March’2020 22.04.2020 03.07.2020 03.07.2020 03.07.2020 04.07.2020-30.09.2020

April’2020 22.05.2020 06.07.2020 06.07.2020 06.07.2020 07.07.2020-30.09.2020

May’2020 12.07.2020 12.09.2020 12.09.2020 12.09.2020

13.09.2020-30.09.2020

June’2020 22.07.2020 23.09.2020 23.09.2020 23.09.2020 24.09.2020-30.09.2020

July’2020 22.08.2020 27.09.2020 27.09.2020 27.09.2020 28.09.2020-30.09.2020

August’2020 22.09.2020 01.10.2020 01.10.2020 01.10.2020 NA

SNR & Company 20

Compliance Calendar

GSTR-3B if Turnover is up to Rs. 5 crore - Category 2*

Category 1* States: Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telanga-

na, Andhra Pradesh, the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and

Nicobar Islands or Lakshadweep.

Category 2* States: Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal

Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha, the Union territo-

ries of Jammu and Kashmir, Ladakh, Chandigarh or Delhi.

**Maximum late fees shall be levied Rs. 250 per act i.e. Rs. 250 (CGST) & Rs. 250 (SGST) for the months of February’2020

to July,2020.

(As amended by N.N. 52/2020-CT dated 24th June,2020 & N.N. 57/2020-CT dated 30th June,2020)

Tax Period Due Date Revised Due Date

No Late Fees No Interest Interest rate @ 9%

Interest rate @ 18%

February’2020 24.03.2020 30.06.2020 30.06.2020 30.06.2020 01.07.2020-30.09.2020

From 01.10.2020 i.e. if return filed after 30.09.2020

March’2020 24.04.2020 05.07.2020 05.07.2020 05.07.2020 06.07.2020-30.09.2020

April’2020 24.05.2020 09.07.2020 09.07.2020 09.07.2020 10.07.2020-30.09.2020

May’2020 14.07.2020 15.09.2020 15.09.2020 15.09.2020 16.09.2020-30.09.2020

June’2020 24.07.2020 25.09.2020 25.09.2020 25.09.2020 26.09.2020-30.09.2020

July’2020 24.08.2020 29.09.2020 29.09.2020 29.09.2020 29.09.2020-30.09.2020

August’2020 24.09.2020 03.10.2020 03.10.2020 03.10.2020 NA After 03.10.2020

GSTR-1 for Outward Supplies

Tax period Due Date Revised Due Date No Late Fees If return filed by

March’2020 11.04.2020 10.07.2020 10.07.2020

April’2020 11.05.2020 24.07.2020 24.07.2020

May’2020 11.06.2020 28.07.2020 28.07.2020

June’2020 11.07.2020 05.08.2020 05.08.2020

Jan’2020 to March’2020 30.04.2020 17.07.2020 17.07.2020

April’2020 to June’2020 31.07.2020 03.08.2020 03.08.2020

Disclaimer: While every care has been taken in the preparation of this Bulletin to ensure its accuracy at the time

of publication, SNR & Company assumes no responsibility for any errors which despite all precautions,

may be found therein. Neither this bulletin nor the information contained herein constitutes a contract

or will form the basis of a contract. The material contained in this document does not constitute/ substi-

tute professional advice that may be required before acting on any matter. All logos and trademarks

appearing in the newsletter are property of their respective owners.

The information transmitted is intended only for the person or entity to which it is addressed and may

contain confidential and/or privileged material. Any review, re-transmission, dissemination or other use

of, or taking of any action in reliance upon, this information by persons or entities other than the in-

tended recipient is prohibited.

www.snr.company

CA. Dinesh Singhal [Partner]: [dinesh.singhal@snr.company] [+91-99534 75125]

CA. Parul Bansal [Manager]: [parul.bansal@snr.company] [+91-97109 02902]

CA. Saurabh Panwar [Manager]: [saurabh.panwar@snr.company] [+91-99179 29643]