Startuphouz Blog

CBIC provide one time amnesty by lowering/waiving of late fees for non furnishing of FORM GSTR-3B from July, 2017 to January, 2020 and also seeks to provide relief by conditional waiver of late fee for delay in furnishing returns in FORM GSTR-3B for tax periods of February, 2020 to July, 2020 vide Notification No. 52/2020-Central Tax Dated 24th June, 2020.

Ministry of Finance
(Department Of Revenue)
(Central Board of Indirect Taxes and Customs)

Notification No. 52/2020-Central Tax

New Delhi, the 24th June, 2020

G.S.R. 405(E).—In exercise of the powers conferred by section 128 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), read with section 148 of the said Act, the Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 76/2018- Central Tax, dated the 31st December, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i) vide number G.S.R. 1253(E), dated the 31st December, 2018, namely :-

In the said notification,-

(i) in the third proviso, for the Table, the following Table shall be substituted, namely : –

“TABLE

S. No.	Class of registered persons	Tax period	Condition
(1)	(2)	(3)	(4)
1.	Taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year	February, 2020, March, 2020 and April, 2020	If return in FORM GSTR-3B is furnished on or before the 24th day of June, 2020
2.	Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year, whose principal place of business is in the States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana or Andhra Pradesh or the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep	February, 2020	If return in FORM GSTR-3B is furnished on or before the 30th day of June, 2020
March, 2020	If return in FORM GSTR-3B is furnished on or before the 3 rd day of July, 2020
April, 2020	If return in FORM GSTR-3B is furnished on or before the 6th day of July, 2020
May, 2020	If return in FORM GSTR-3B is furnished on or before the 12th day of September, 2020
June, 2020	If return in FORM GSTR-3B is furnished on or before the 23rd day of September, 2020
July, 2020	If return in FORM GSTR-3B is furnished on or before the 27th day of September, 2020
3	Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year, whose principal place of business is in the States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha or the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi	February, 2020	If return in FORM GSTR-3B is furnished on or before the 30th day of June, 2020
March, 2020	If return in FORM GSTR-3B is furnished on or before the 5th day of July, 2020
April, 2020	If return in FORM GSTR-3B is furnished on or before the 9th day of July, 2020
May, 2020	If return in FORM GSTR-3B is furnished on or before the 15th day of September, 2020
June, 2020	If return in FORM GSTR-3B is furnished on or before the 25th day of September, 2020
July, 2020	If return in FORM GSTR-3B is furnished on or before the 29th day of September, 2020

(ii) after the third proviso, the following provisos shall be inserted, namely: –

“Provided also that the total amount of late fee payable for a tax period, under section 47 of the said Act shall stand waived which is in excess of an amount of two hundred and fifty rupees for the registered person who failed to furnish the return 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 01st day of July, 2020 to 30th day of September, 2020:

Provided also that where the total amount of central tax payable in the said return is nil, the total amount of late fee payable for a tax period, under section 47 of the said Act shall stand waived for the registered person who failed to furnish the return 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 01st day of July, 2020 to 30th day of September, 2020.”.

[F. No. CBEC-20/06/09/2019-GST]
PRAMOD KUMAR, Director

Note: The principal notification No. 76/2018-Central Tax, dated 31st December, 2018 was published in the Gazette of India, Extraordinary, vide number G.S.R. 1253(E), dated the 31st December, 2018 and was last amended vide notification number 32/2020 – Central Tax, dated the 3rd April, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.232 (E), dated the 3rd April, 2020.

CBIC provides relief by waiver of late fee for delay in furnishing outward statement in FORM GSTR-1 for tax periods for months from March, 2020 to June, 2020 for monthly filers and for quarters from January, 2020 to June, 2020 for quarterly filers vide Notification No. 53/2020-Central Tax Dated 24th June, 2020.

Ministry of Finance
(Department Of Revenue)
(Central Board of Indirect Taxes and Customs)

Notification No. 53/2020-Central Tax

New Delhi, the 24th June, 2020

G.S.R. 406(E).—In exercise of the powers conferred by section 128 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Government, on the recommendations of the Council, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 4/2018-Central Tax, dated the 23rd January, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i) vide number G.S.R. 53(E), dated the 23rd January, 2018, namely:-

In the said notification, for the third proviso, the following proviso shall be substituted, namely: –

“Provided also that the amount of late fee payable under section 47 of the said Act shall stand waived for the registered persons who fail to furnish the details of outward supplies for the months or quarter mentioned in column (2) of the Table below in FORM GSTR-1 by the due date, but furnishes the said details on or before the dates mentioned in column (3) of the said Table:-

TABLE

Sl. No.	Month/ Quarter	Dates
(1)	(2)	(3)
1.	March, 2020	10th day of July, 2020
2.	April, 2020	24th day of July, 2020
3.	May, 2020	28th day of July, 2020
4.	June, 2020	05th day of August, 2020
5.	January to March, 2020	17th day of July, 2020
6.	April to June, 2020	03rd day of August, 2020.”.

[F. No. CBEC-20/06/09/2019-GST]
PRAMOD KUMAR, Director

Note: The principal notification No. 4/2018- Central Tax, dated the 23rd January, 2018, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i) vide number G.S.R. 53(E), dated the 23rd January, 2018 and was last amended by notification No. 33/2020- Central Tax, dated the 3rd April, 2020, published in the Gazette of India, Extraordinary, vide number G.S.R. 233(E) dated the 3rd April, 2020.

NOW: An easy way to do business in spite of the virus

According to CIBIL, 67% of business owners view their CAs as a trusted business advisor

Are you a business owner and currently stuck because of the crisis? Uncertain how your firm will be performing in the coming years? Many businesses have lost what they had built and are uncertain of the coming years.

Vice president of CIBIL, Miss. Sujatha Ahlawat says that the current scenario has a cascading impact on 60 million+ enterprises with over 110 million people employed by this sector.

Can you believe 60 million enterprises are impacted for no fault of their own?

And 80% of businesses having a decline in their cash flow, It’s clear that even a slight wrong move you may take can cost you a lot of money. Taking a calculated decision which helps your firm in all the aspects is the need of the hour. Another shocking survey from AIMO says that 1 in 3 MSMEs are on the verge of winding up. What would you do to prevent your firm from winding up? What precautions can you take? How can you save your firm?

This is where a Chartered accountant comes into the picture.

Gone are the days where the chartered accountants were known only for filing tax returns. Chartered accountants help companies do business with ease in spite of the crisis.

How a CA can help you

1.   Saves your times & effort

If your business is facing a cash crunch, a chartered accountant can assist you in strategical and financial planning and saves your time, effort & suggests what’s best for your firm.

2.    A loan from financial institutions

Do business with comfort in spite of the crisis, a chartered accountant helps you develop a calculated project report for a loan from financial institutions.

3.   Advice benefit suitable for your firm

Many MSMEs are missing out on the benefits provided by the Govt of India due to COVID-19, benefits to ease their situation. A CA understands your business and suggests suitable MSME benefit so that your business can strengthen in these times and have healthier profits later.

4.   Makes you aware of the tax benefits

CA advises taking the tax benefits provided by the Government, Where you save more profits for yourself and your firm in these times.

5.   Prevents you from a possible chance of loss

You are in safe hands with a CA even if your firm is a COVID-19 hit sector (tourism & travel)

A chartered accountant helps to swift your core business to a temporary transition to other suitable business and prevents you from a possible chance of loss.

Take control of your firm

Now that you got to know the advantages of having a CA, you probably are curious about how do I make my situation better? What strategic plan is suitable for my firm? The best way to get answers is to hire a professional CA who has experience working with many other companies.

By understanding your core business, and other vital aspects, an experienced CA Not only keeps your firm stable but also contribute to your growth in the long term, by giving strategies to elevate your business, maintaining the financial health of your firm.

We are here to help!

We at startuphouz are passionate about helping our clients to grow their business. You are in safe hands as our team of professionals have worked with many clients and delivered remarkable results. Startuphouz is a one-stop solution for your business problems. Contact now for more information.

CBIC clarifies on  Leviability of GST on remuneration paid by companies to the independent directors or  those directors who are not the employee of the said company  and Leviability of GST on remuneration paid by companies to the directors, who are also an  employee of the said company Vide Circular No: 140/10/2020 – GST Dated 10th June, 2020.

Circular No: 140/10/2020 – GST

CBEC-20/10/05/2020-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing

New Delhi, dated the 10^th June, 2020

To

The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners / Commissioners of Central Tax (All)

The Principal Director Generals/ Director Generals (All)

Madam/Sir,

Subject: Clarification in respect of levy of GST on Director’s remuneration – Reg.

Various references have been received from trade and industry seeking clarification whether the GST is leviable on Director’s remuneration paid by companies to their directors. Doubts have been raised as to whether the remuneration paid by companies to their directors falls under the ambit of entry in Schedule III of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act) i.e. “services by an employee to the employer  in the course of or in relation to his employment” or whether the same are liable to be taxed in terms of notification No. 13/2017 – Central Tax (Rate) dated 28.06.2017 (entry no.6).

2. The issue of remuneration to directors has been examined under following two different categories:

(i) leviability of GST on remuneration paid by companies to the independent directors defined in terms of section 149(6) of the Companies Act, 2013 or those directors who are not the employees of the said company; and

(ii) leviability of GST on remuneration paid by companies to the whole-time directors including managing director who are employees of the said

3. In order to ensure uniformity in the implementation of the provisions of the law across the field formations, the Board, in exercise of its powers conferred under section 168(1) of the CGST Act hereby clarifies the issue as below:

Leviability of GST on remuneration paid by companies to the independent directors or  those directors who are not the employee of the said company

 4.1 The primary issue to be decided is whether or not a ‘Director’ is an employee of the company. In this regard, from the perusal of the relevant provisions of the Companies Act, 2013, it can be inferred that:

a. the definition of a whole time-director under section 2(94) of the Companies Act, 2013 is an inclusive definition, and thus he may be a person who is not an employee of the company.

b. the definition of ‘independent directors’ under section 149(6) of the Companies Act, 2013, read with Rule 12 of Companies (Share Capital and Debenture) Rules, 2014 makes it amply clear that such director should not have been an employee or proprietor or a partner of the said company, in any of the three financial years immediately preceding the financial year i n which he is proposed to be appointed in the said company.

 4.2 Therefore, in respect of such directors who are not the employees of the said company, the services provided by them to the Company, in lieu of remuneration as the consideration for the said service, are clearly outside the scope of Schedule Ill of the CGST Act and are therefore taxable. In terms of entry at SI. No. 6 of the Table annexed to notification No. 13/2017–Central Tax (Rate) dated 28.06.2017, the recipient of the said service i.e. the Company, is liable to discharge the applicable GST on it on reverse charge basis.

 4.3 Accordingly, it is hereby clarified that the remuneration paid to such independent directors, or those directors, by whatever name called, who are not employe of the said company, is taxable in hands of the company, on reverse charge basis.

Leviability of GST on remuneration paid by companies to the directors, who are also an  employee of the said company

 5.1 Once, it has been ascertained whether a director, irrespective of name and docignation, is an employee, it would be pertinent to examine whether all the activities performed by the director are in the course of employer-employee relation (i.e. a “contract of service’) or is there any element of “contract for service ’17 The issue has been deliberated by various courts and it has been held that a director who has also taken an employment in the company may be functioning in dual capacitiac, namely, one as a di rector of the company and the other on the basis of the contractual relationship of master and servant with the company, i.e. under a contract of service (employment) entered into with the company.

5.2 It is also pertinent to note that similar identification (to that in Para 5.1 above) and treatment of the Director’s remuneration is also present in the Income Tax Act, 1961 wherein the salaries paid to directors are subject to Tax Deducted at Source (‘TDS’) under Section 192 of the Income Tax Act, 1961 (‘IT Act’). However, in casec where the remuneration is in the nature of professional fees and not salary, the same is liable for deduction under Section 194J of the IT Act.

5.3. Accordingly, it is clarified that the part of Director’s remuneration which are declared as `Salariac’ in the books of a company and subjected to TDS under Section 192 of the IT Act, are not taxable being consideration for services by an employee to the employer in the course of or in relation to his employment in terms of Schedule III of the CGST Act, 2017.

5.4 It is further clarified that the part of employee Director’s remuneration which is declared separately other than ‘salaries’ in the Company’s accounts and subjected to TDS under Section 194J of the IT Act as Fees for professional or Technical Services shall be treated as consideration for providing servicw which are outside the scope of Schedule Ill of the CGST Act, and is therefore, taxable. Further, in terms of notification No. 13/2017 –Central Tax (Rate) dated 28.06.2017, the recipient of the said servicw i.e. the Company, is liable to discharge the applicable GST on it on reverse charge basis.

6. t is requested that suitable trade notices may be issued to publicize the contents of this circular.

7. Difficulty, if any, in the implementation of the above instructions may please be brought to the notice of the Board. Hindi version would follow.

(Yogendra Garg)

Principal Commissioner

Note: As released by CBIC

If you want any sort of guidance regarding the CBIC Notifications for GST  you can feel free to contact our business advisor at  +91- 9900213022 or 9035002290