GST – Key Burning Issues

GST – Key Burning Issues

Relief expected

Key GST issues needing attention!

Interest

• Notices already issued – Declare void-ab-initio

ITC

• Blocked by Rule 86A

• Nonpayment of GST by the supplier?

Registration

• Cancelled

• E-way bills blocked

What if

• PH/ Summons

• Existing ST/Excise Audits

Refunds

• Stuck due to difference of paise

Recommendations

Provide common email id to enable GST payers to share their concerns→ Provide realtime and online solutions

Relief Awaited

Key GST issues needing attention!

Credit should not be denied!

Legal provision

• A registered person ‘shall not be entitled take the input tax credit in respect of invoice’, after the due date of furnishing of ‘return under section 39’ for the month of September following the end of the financial year or furnishing of Annual return, whichever is earlier (Section 16 (4) of CGST Act)

Issue

• The aforesaid provision is being interpreted by Authorities to mean that credit for FY 1819 is available only if the said returns are filed up to 20th October 2019.

Why ITC should be available?

• The terminology used in the section is ‘shall not be entitled take input tax credit in respect of invoice’

• It can be observed that the term used in the CGST Act is ‘take’ instead of availment. At present, the credit gets auto-populated in the electronic ledger and thus, it’s taken as soon as it appears in the electronic ledger, although, ITC may be availed or utilized subsequently

• Recently, GST Council has permitted collection of interest on the net of credit amount and thus, recognized the taxpayers right to take credit

• Even otherwise, if the returns were filed in time then the Government would have received GST only to the extent of cash amount from the taxpayer and thus, only procedural delay of filing of returns should not saddle additional liability

• It is a settled legal principle that procedural lapse cannot take away substantive right to claim ITC

• Further, Article 300A of the Constitution of India no person shall be deprived of his property save by authority of law

• Even otherwise section 16 (4) of CGST Act uses the terminology ‘return under section 39’ and in the case of AAP & Co. it has been upheld that GSTR-3B is not a return (although Rule 61 is amended subsequently)

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