Notifications for E-Invoices and QR Code on E-Invoices

E-Invoice and QR Code made compulsory for Class of Taxpayer under GST

CBIC has introduced multiple Notifications on 13th December 2019 notifying the provisions of E-Invoices and QR Code on E-Invoices.

Notification 68-2019 - Introduction of E-Invoices

1. The government has introduced a system of E-invoices. 
2. This notification has added sub-rule 4 to Rule 48 to introduce the E-Invoices for the class of Person as may be notified in the times to come. 
3. Such E-invoice Form shall be named as GST INV - 01.

4. Subrule 1 and 2 of Rule 48 which states that triplicate/Duplicate copies of Invoices shall be required, Will not apply to the cases where E-invoices will be made compulsory.

Notification 69-2019 - Notifying websites for E-Invoices

For the preparation of E-Invoices as required in Rule 48(4) as introduced by Notification no. 68/2019, Government has notified the following 10 websites.

(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

This notification (Websites) Shall come into effect from 1st April 2020.  


It looks like the GST department is planning to divide the load of millions of Invoices prepared on these websites by the introduction of multiple websites. It is yet not clear how these websites will work,.i.e. each assessee shall be assigned only one website to prepare the E-Invoice or anyone can prepare e-Invoice on any of the websites.


Notification 70-2019 - Notifying class of Person for E- Invoices

For the preparation of E-Invoices as required in Rule 48(4) as introduced by Notification no. 68/2019, Government has notified that only person having turnover more than Rs. 100 Crores in the preceding financial year shall be liable for the preparation of E- Invoices.

This notification shall come into effect from 1st April 2020.

It looks like that having seen a roller coaster ride in the first two years of GSTN, the GST department is taking a safer route of the phased implementation of E-Invoicing. In time to come this 100 crore limit may go down to Rs. 50 crores or 25 crores or even 10 Crores.

Notification 71-2019 - QR Code requirement on Invoice

GST Amendment Rules ( Fourth Amendment) 2019 as per Notification number 31/2019 specifies that QR Code shall be required for Invoices for the notified persons from notified date.


This notification notifies the date 1st April 2020 from when QR code shall be mandatory for a specified class of persons to be notified.

Notification 72-2019 - QR Code requirement on Invoice

GST Amendment Rules ( Fourth Amendment) 2019 as per Notification number 31/2019 specifies that QR Code shall be required for Invoices for the notified persons from notified date.


This notification notifies that From 1st April 2020, any person having a turnover above Rs. 500 Crore shall issue the invoice with QR code for each B2C invoice.

Notifications issued to give effect to Decisions taken in 35th GST Council Meeting.

To give effect to the GST 35th Council Meeting following notifications have been issued:

1. Notification No. 26/2019: 

The due date for Filling GSTR 7 (To be filed by TDS Deductor) for Oct-18 to Jul-19 has been extended to 31st August 2019.

2. Notification No. 27/2019

The due date for filling GSTR 1 for the person having a turnover of up to Rs. 1.5 crore for the period of Jul 2019 to Sep 2019 has been prescribed to be as follows:

Quarterly Jul 2019 - Sep 2019: 31st October 2019.

3. Notification No. 28/2019

The due date for filling GSTR 1 for the person having a turnover of more than Rs. 1.5 crore for the period of Jul 2019 to Sep 2019 has been prescribed to be as follows:

Monthly Jul 2019 - Sep 2019: 11th of the following Month.

4. Notification No. 29/2019

The due date for filling GSTR 3B for the period of Jul 2019 to Sep 2019 has been prescribed to be as follows:

Monthly Jul 2019 - Sep 2019: 20th of the following Month.

5. Notification No. 30/2019

The notification provides an exemption to the supplier of Online Information Database Access and Retrieval Services(“OIDAR services”) from filling Annual Return (GSTR 9)/ Reconciliation Statement (GSTR 9C)

6. Notification No. 31/2019

The notification seeks to carry out changes in CGST Rules,2017.

7. Notification No. 32/2019

The notification seeks to Extend the due date of filling GST ITC-04 (to be filed for goods sent for job work) for the period of Jul-2017 to Jun-2019 till 31st August 2019.

8. Removal of Difficulty Order No. 6/2019

The Due date for filing Annual Return and Reconciliation Statement has been extended from 30th Jun 2019 to 31st August 2019 for FY 2017-18.

Only ONE Return for Composition Scheme tax payer, Tax Payment quarterly.

To give effect to the decisions taken during the GST Council meeting, Notification No. 20/2019 Central Tax has been issued by CBIC to give effect to the following:

Only one return for composition Scheme taxpayer, Tax payment quarterly:

Rule 62 has been amended to give an effect that Composition taxpayer (Either registered u/s 10 or availing benefit of notification no. 2/2019 (Central tax Rate)) will have to file GSTR 4 only on annual basis on 30th April following the end of the Financial year e.g. For FY 2019-20 GSTR 4 has to be filed by 30th April 2020. 

However, tax is required to be paid in Form GST CMP-08 on a quarterly basis on 18th of the month following the end of the quarter.

If any person opts out of Composition Scheme, he has to pay tax for the relevant quarter on 18th of the following month.

e.g. If any taxpayer opts out of composition Scheme w.e.f. 31st August 2019, he has to pay tax for Jul and Aug 2019 in GST CMP-08 by 18th Oct 2019.

GST CMP 08

Note:

1. Even if No tax liability is there, NIL statement GST CMP - 08 has to be filed.

2. Negative values have to be reported as such. If the total tax payable becomes negative, the same has to be carried forward to the next period. This is in case of adjustment on account of a Debit/Credit note.

3. Since GST CMP - 08 is just a statement & not return and nothing expressly specified related to late fees of GST CMP - 08, in our opinion late submission of the same will attract only interest and not late fees.

4. GST CMP - 08 is a basic statement containing Outward supplies, Inward supplies with tax liabilities as can be seen from above.

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Due Date of GSTR 1 and GSTR 7 for the month of March 2019 is extended - Notification 17 and 18

Due date of GSTR 1 and GSTR 7 Extended.

1. CBIC has extended the due date of GSTR 1 for the month of March 2019 to 13th April 2019 - Notification No. 17/2019 - CT


2. CBIC has extended the due date of GSTR 7 for the month of March 2019 to 12th April 2019 - Notification No. 18/2019 - CT

Reduced GST Rate for Residential Real Estate projects - Summary of all related Notifications.

GST On Residential Real Estate Projects

To implement the decisions made during the various GST Council meeting on issues related to GST rate for real estate Sector, The CBIC has issued notification multiple notifications. This article explains the effect of these notifications in simple language.

 (Notification 3-2019 CGST Rate)

Particulars	Effective Rate of GST	Applicable rate after abatement for value of land
Construction of Affordable Houses (See Note 1)	1.50% (Without ITC)	1% (Without ITC)
Construction of other than Affordable Houses	7.50% (Without ITC)	5% (Without ITC)

General Notes:

1.    Meaning of Affordable Houses shall be:

For Metro cities	a.     Value Should be Rs. 45 Lakhs or less And b.     Carpet Area of the house should not be more than 60 meters
For other than Metro Cities	a. Value Should be Rs. 45 Lakhs or less And b. Carpet Area of the house should not be more than 90 meters

Note: Metropolitan cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (the whole of MMR) with their respective geographical limits

2.    No Input tax credit shall be available.

3.    This is compulsive scheme for any projects starting from 1^st April 2019.

4.    Gross amount for this purpose shall include following:

a.     Cost of Construction

Any other amount charged by the promoter from the buyer of the apartment including preferential location charges, development charges, parking charges, common facility charges etc.

5.    Issues related to Input tax credit has been explained in details with illustrations in the notification itself.

Notes about the ongoing projects:

6.   For ongoing projects the Promoter may opt for the above scheme or continue to pay the tax as per the old scheme with ITC. i.e. At 12% or 18% as the case may be.

7.     For Ongoing project, the Promoter will have to exercise one time option to pay tax as per the old scheme. If Promoter does not exercise the option, it will be deemed that the Promoter has opted for new scheme.

8.     Invoices for supply of the service can be issued during the period from 1st April 2019 to 10th May 2019 before exercising the option, but such invoices shall be in accordance with the option to be exercised.

Notes about the Purchase from Un-registered Dealer:

9.     Person falling under this scheme, i.e. Without ITC Scheme, 80% of the Inputs and Input Service have to be obtained from registered supplier only.

Exception:

a.     Development Rights

b.     Lease of Land

c.      FSI Including additional FSI

d.     Electricity

e.     Petrol

f.       Diesel

g.     Natural Gas

For this purpose Supply on which tax is paid on RCM is considered as purchase from registered supplier only.

10. Cement has to be purchased, in all cases, from Registered Supplier. If Cement is Purchased from un registered supplier, Tax at applicable rate will have to be paid by the Promoter on RCM Basis.

11. In case there is a shortfall of 80% of purchase of goods or service from registered supplier, On such shortfall the Promoter will have to pay tax at 18% on Reverse charge basis.

e.g.

Total Purchase	Rs. 100,000/-
80% of the total Purchase	Rs. 80,000/-
Actual Purchase from Registered supplier	Rs. 70,000/-
Short fall of Purchase from Registered Supplier	Rs. 10,000/-
Tax to be paid at 18% on RCM basis (10000 x 18%)	Rs.1,800/-

12. The Promoter shall have to maintain project wise account of Inward supplies from registered person and unregistered person. The shortfall shall be calculated at the year end.

The Promoter shall have to file a Form in which details of such shortfall will have to disclose.

13.Development rights, long term lease of land, or FSI sold by un-registered person to promoter shall be liable for tax under RCM. Promoter shall be liable to pay tax at 18% on such charges under RCM.

Notes Related to Sale of FSI or Transfer of Development Right or Lease:

14. GST shall be exempt on FSI or transfer of Development right or long term lease of more than 30 years Provided :

The promoter shall be liable to pay tax at applicable rate on RCM basis on such proportion of value of:

a.     Transfer of Development Right

b.     FSI

c.      Long term lease

In respect of unsold units on the date of completion certificate or first occupancy. The rate of RCM is 1% for affordable housing and 5% for other than affordable housing. Notification No. 04/2019- Central (Rate)

15.       GST on FSI or Transfer of development rights or long term lease other than mentioned in point no. 14 shall be payable by promoter on RCM basis.(Notification No. 5/2019 – Central Rate)

16.  Liability to pay GST on FSI or Transfer of Development Rights or long ter lease other than mentioned in point no. 14 shall arise on the date  of issuance of completion Certificate or on its first occupation, whichever is earlier. (Notification No. 6/2019 – Central Rate)

17.  For following cases GST shall be payable by promoter in case of purchase from unregistered supplier (Notification No. 7/2019 – Central Rate)

a.     Shortfall from 80% of purchase from registered supplier

b.     Cement

c.      Capital Goods used for the Project

18. GST rate shall be 18% for shortfall of purchase from registered person from 80% other than cement and capital goods. (Notification No. 8/2019 – Central Rate)

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Extension of due date to 30th June of filling Form GST ITC -04 for the period of Jul 17 to Mar-19 - Notification 15/2019 CT

GST ITC - 04 Due date extended.

CBEC has vide notification number 15/2019, extended the due date of filing form GST ITC 04 for the period of Jul 2017 to Mar 2019. The new due date will be 30th June 2019.

What is Form GST ITC 04:

If any manufacturer Sends goods or capital asset for job work for which he has taken input tax credit he has to file GST ITC 04 for sending and receiving back such goods.

As per rule 45 (3) of the said rules, the principal manufacturer is required to file FORM GST ITC-04 mentioning therein details of challans in respect of goods dispatched to a job worker or received from a job worker or sent from one job worker to another job worker. As per rule 45 (3), the detail in FORM GST ITC-04 needs to be filed one quarterly basis on or before the 25th day of the month succeeding the said quarter.

Notification No. 2/2019 CT(R) : Composition Scheme for Small Service Provider

Composition Scheme for small Service Providers

CBIC has issued notification 2/2019 CT(R) which provides a composition scheme for the Service provider in a more of a twisted mode.

The notification is applicable to First supplies of goods or services upto Rs. 50 Lakhs made after 1st April of the Financial year shall be taxed at 6% without any ITC.

Further One of the condition to opt for the above scheme is that the person should not be eligible to pay tax under 10(1) of the Act. So this notification covers predominantly the person engaged in providing service wants to opt for Composition Scheme. The issue is, if such a person supplies any goods, he shall be liable to pay tax 6% on such goods as well.

The registered person shall mention the following words at the top of the bill of supply, namely: - 

"Taxable person paying tax in terms of notification No. 2/2019-Central Tax (Rate) dated 07.03.2019, not eligible to collect tax on supplies’

Further for the first time Section 9(4) shall be operational after 13th October 2017. Any purchase from an unregistered person by the person notified under this notification shall be taxable under section 9(4). Provisions of Section 9(3) shall also be applicable to such person.

Further  In computing aggregate turnover in order to determine eligibility of a registered person to pay central tax at the rate of three percent under this notification, value of supply of exempt services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount, shall not be taken into account.

Current system of GST Return filling to be continued atleast for 1st Quarter of 2019-20 - CBIC issued notification for due date of GSTR 3B and GSTR 1 for Apr-Jun 2019.

The CBIC had issued a status note on GST Implementation on 1st Feb 2019 which in para 9.2 - Point - P (Page no. 22) specified following:

"The new return filing system shall be introduced on a trial basis from 01.04.2019 and on mandatory basis from 01.07.2019."

So accordingly the new return filing system should be in place for a trial period from 1st April 2019 however to the contrary the CBIC has issued notifications specifying the due date of GSTR 3B and GSTR 1 for Apr-Jun 2019 which shall be as follows:

a. GSTR 3B: 20th of the following month Notification 13/2019 CT
b. GSTR 1 ( T/o above 1.5 Crore) : 11th of the following month Notification 12/2019 CT
c. GSTR 1 (T/o below 1.5 Crore): 31st July 2019 Notification 11/2019 CT

We may see a trial period of the new return system from 1st July onwards.

Notification 10/2019 - CT - Increase in Thresh hold limit to Rs. 40 Lakhs for supply of goods in some cases.

A. As decided in GST Council meeting the CBIC has issued notification 10/2019 which increases the thresh hold limit to obtain a registration to Rs. 40 Lakhs only in case of EXCLUSIVE SUPPLY OF GOODS EXCEPT following category of person from 1st April 2019:

1. Person required to get compulsory registration as specified in section 24 of the Act which is following:

a. Person making Inter state supply

b. Casual taxable person

c. Person required to pay tax under RCM

d. Person required to pay tax under section 9(5) (Specified e-commerce supplier)

e. Non resident taxable person making any taxable supplies

f. TDS Deductor

g. Input service distributor

h. Person supplying taxable goods on behalf of other taxable person as agent

i. E commerce operator

g. Online information and database access retrieval service provider

2. Person engaged in supplying following goods:

a. Ice cream and other edible ice, whether or not containing cocoa - 2105 00 00

b. Pan masala - 2106 90 20

c. All goods, i.e. Tobacco and manufactured tobacco substitutes - 24

3. Persons engaged in making intra-State supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand

4. Person who have got themselves voluntary registration and intend to continue the same.

NOTE: THE THRESH HOLD LIMIT FOR REGISTRATION IN CASE OF SERVICE SUPPLIER SHALL REMAIN RS. 20 LAKHS.

B. Further by notification no. 14/2019 CT CBIC has increased the limit of turnover for composition scheme to Rs. 1.50 Crore for all states except special category states where  the limit has increased to Rs. 75 Lakhs. The notification specifies that if turnover of a person does not exceed Rs. 1.50 Crore/75 Lakhs in preceding financial year, he may opt for Composition Scheme in 2019-20

Extension of Due date of GSTR 3B for Jan 2019

CBIC has extended the due date of filing GSTR 3B for Jan 2019 to 28th Feb 2019 for the state Jammu and Kashmir and 22nd for rest of the states. Notification 09/2019 (CGST).