GSTN has enabled new facility to adjust negative ITC while distributing ITC to its units by ISD in Form GSTR-6

The GSTN Portal has enabled a new facility in Form GSTR-6. The adjustment of negative Input Tax Credit (“ITC”), while distributing credit to its units by ISD, through Form GSTR- 6.

• The persons registered as ISD can distribute ITC among its Units by filing Form GSTR-6, every month.
• Previously, ISD was not able to adjust negative ITC to its units, under a major head through ITC available under another major head. For example, if in a particular month, no ITC had accrued under a head but ITC reversal was required to be done under that head or in cases where no inward supplies under a head but receipt of Credit Note(s) under that head for past supplies etc.
• ISD would now be able to adjust negative ITC while distributing credit through Form GSTR 6.

CBIC issued clarification w.r.t. challenges in implementing the GST Law

The CBIC vide Circular No. 138/08/2020 – GST dated May 06, 2020 which has clarified the challenges which were faced by the registered person in implementing the GST Law.
 The following are the clarification made by the department are as thereunder: click here

GSTN develops functionality for transfer of amount available in electronic cash ledger

GST Network (GSTN) on Tuesday said it has developed a new functionality on the portal through which taxpayers can now transfer amount available under one head to another in the electronic cash ledger. Form GST PMT-09 provides flexibility to taxpayers to make multiple transfers from more than one head (major or minor) to another head (major or minor) and helps with the intra-head or inter-head transfer of amount available in electronic cash ledger.

The ‘major’ heads are Central GST, State or Union Territory GST, Integrated GST and cess, whereas the ‘minor’ heads defined in the law are tax, interest, late fee, penalty and others. In a statement, GSTN said this new functionality on the GST portal is aimed at providing a major relief to taxpayers, especially at the time of the COVID-19 crisis when there is limited access to cash resources. “Thus, the taxpayers need not apply for refund for tax wrongly deposited under a particular head or deposit the amount in cash ledger again,” GSTN said.

CBIC allowed registered person under Co’s Act to file Form GSTR-3B through EVC

CBIC vide Notification No. 38/2020 – Central Tax dated May 05, 2020, which makes further amendments in the Central Goods and Services Tax Rules, 2017. The following are the amendments made under the rules are as under:-

1. In rule 26(1) i.e. Method of Authentication, after the provision of sub-rule 1, the following proviso has been inserted are as:- Provided further that a registered person registered under the provisions of the Companies Act, 2013 (18 of 2013) shall, during the period from the 21st day of April 2020 to the 30th day of June 2020, also be allowed to furnish the return under section 39 in FORM GSTR-3B verified through electronic verification code (EVC). Therefore, the registered person registered under Companies Act, 2013 is allowed to file the Form GSTR-3B during the period April 21, 2020 to June 30, 2020, through electronic verification code (EVC). This provision is effective from April 21, 2020.

2. After rule 67, a new rule 67A i.e. Manner of furnishing of return by short messaging service facility is inserted in the following manner:-Notwithstanding anything contained in this Chapter, for a registered person who is required to furnish a Nil return under section 39 in FORM GSTR-3B for a tax period, any reference to electronic furnishing shall include the furnishing of the said return through a short messaging service using the registered mobile number and the said return shall be verified by a registered mobile number based One Time Password facility. Explanation. – For the purpose of this rule, a Nil return shall mean a return under section 39 for a tax period that has nil or no entry in all the Tables in FORM GSTR-3B.

Therefore, a registered person can file the Nil Return under section 39 i.e. Form GSTR-3B through SMS from his registered mobile number, to be verified based on the OTP facility. This rule 67A will effect from a date to be notified later.

The notification can be accessed at: click here