CONNECT WITH “CAJOHAR” AT 8010921000 , 8860068196

AMENDMENTS IN INCOME TAX FOR NOV 2021 EXAMS

INCOME FROM SALARY

Contribution of employer to various funds on the behalf of the employee: Section 17(2)(vii)
The amount or aggregate of amounts of contributions made by employer to the account of employee in
(a) RPF account
(b) NPS account referred u/s 80CCD(1) and
(c) Approved SAF account
beyond `7,50,000 shall be taxable as perquisites
Illustration 1: Salary of an employee, Mr. J is `80,00,000. Contribution of employer towards RPF for the
amount of `9,60,000 (being 12% of salary of `80,00,000) would not be treated as salary u/s 17(1)(vi).
However, since it exceeds `7,50,000, the amount in excess of `7,50,000 i.e. `2,10,000 (`9,60,000 -
`7,50,000) would be treated as perquisite u/s 17(2)(vii)
Illustration 2: Calculate taxable PV for the employee in following cases:
Case 1 Salary is `62,50,000 Employer’s contribution to RPF 12% of salary
Case 2 Salary is `62,50,000 Employer’s contribution to RPF 14% of salary
Case 3 Salary is `80,00,000 Employer’s contribution to RPF 12% of salary
Case 4 Salary is `80,00,000 Employer’s contribution to RPF 14% of salary
Solution:
Particulars Case 1 Case 2 Case 3 Case 4
Amount in ` Amount in ` Amount in ` Amount in
`
Salary 62,50,000 62,50,000 80,00,000 80,00,000
Employer’s contribution to RPF 7,50,000 8,75,000 9,60,000 11,20,000
Amount of contribution beyond `7,50,000 Nil 1,25,000 2,10,000 3,70,000
taxable as perquisite u/s 17(2)(vii)
Note: No guidance has been given in the Act, as to the composition of the amount in excess of `7,50,000
and which contributions such excess pertains to. Section 17(2)(vii) only provides that amount or aggregate
amount in excess of `7,50,000 would be perquisites.
Annual increase due to interest, dividend etc related to funds mentioned above: Section 17(2)(viia)
The annual increase due to interest, dividend etc which is credited to the funds referred above, on the
employer’s contribution which is included in total income shall be computed in a manner as prescribed

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Illustration 3: In above illustration, interest income on excess contribution of `1,25,000 or `2,10,000 or

`3,70,000 would also be treated as perquisite u/s 17(2)(viia)
Rule 3B has been inserted by Notification No. 11/ 2021, dated 5/3/2021
The annual increase due to interest, dividend etc which is credited to the funds referred above, on the
employer’s contribution which is included in total income shall be computed by using following formula
TP = ( PC / 2 ) * R + ( PC1 + TP1 ) * R
TP Taxable perquisite under of section 17(2)(viia) for the current PY
TP1 Aggregate of taxable perquisite under section 17(2)(viia) for the PY or PYs starting on or
after 1/4/2020 other than the current previous year
Note : If the amount or aggregate amounts of TP1 and PC1 exceeds the amount or
aggregate of amounts of balance to the specified fund or scheme on the first day of the
current previous year then such excess shall be ignored.
PC Amount or aggregate of amounts of employer’s contribution in excess of `7,50,000 to the
specified fund or scheme during the PY 2020-2021
PC1 Amount or aggregate of amounts of employer’s contribution in excess of `7,50,000 to the
specified fund or scheme for the PY or PYs starting on or after 1/4/2020 other than the current
previous year
Note : Second part of the formula will not be relevant for P.Y.2020-21
R I/ Favg ;
I Amount or aggregate of amounts of income accrued during the current PY in the
specified fund or scheme account
Favg Amount or aggregate of amounts of balance to the credit of the
specified fund or scheme on the first day of the current PY
+
Amount or aggregate of amounts of balance to the credit of the
specified fund or scheme on the last day of the current PY
2

In simple words, the perquisite arising from the annual accretion on the employer’s contribution to
welfare funds shall be the average return (I/Favg) on the sum of :
(a) ½ of the current year’s contribution in excess of `7,50,000
(b) Contribution in excess of `7,50,000 up to last year; and
(c) Accretion taxable as perquisite upto last year

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If the sum of (b) and (c) exceeds the opening balance of the fund, it shall be restricted to such opening
balance.
Illustration 4: Following data is given to you of an employee, Mr. J, for the PY 2020-2021

Particulars RPF NPS SAF Total

Opening balance of employer’s contribution 6,00,000 7,00,000 8,00,000 21,00,000

Employer’s contribution of current PY 3,00,000 3,00,000 3,00,000 9,00,000

Income accrued employer’s contribution of current PY 80,000 90,000 95,000 2,65,000

Closing balance of employer’s contribution 9,80,000 10,90,000 11,95,000 32,65,000

In the AY 2021-2022 following income will be considered as a perquisite

Section 17(2)(vii)

Total employer’s contribution `9,00,000

Less : Standard limit `7,50,000

Perquisite value `1,50,000

Section 17(2)(viia)
TP = (PC / 2) * R + (PC1 + TP1) * R
TP Taxable perquisite u/s 17(2)(viia) for PY 2020-2021 `1,50,000 / 2 * 9.88% = `7409
TP1 Aggregate of taxable perquisite u/s 17(2)(viia) for the Nil
PY or PYs starting on/after 1/4/2020 other than the (since this is the first year of
PY 2020-2021 taxability of such perquisite)
PC Amount or aggregate of amounts of employer’s `9,00,000 - `7,50,000 = `1,50,000
contribution in excess of `7,50,000 to specified fund
during PY 2020-2021
PC1 Amount or aggregate of amounts of employer’s Nil (Since this is the first previous
contribution in excess of `7,50,000 to the specified year for taxability of such
fund for the PY or PYs starting on/after 1/4/2020 perquisite)
other than the current PY
R I / Favg `2,65,000 / `26,82,500 = 9.88%.
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I Amount or aggregate of amounts of income `2,65,000

accrued during the PY 2020-2021 in the
specified fund
Favg Amount or aggregate of amounts of balance (`21,00,000 + `32,65,000) / 2 =
to the credit of the specified fund on `26,82,500
1/4/2020
+
Amount or aggregate of amounts of balance
to the credit of specified fund on 31/3/2021
2

Continuation with above example, following data is given to you of an employee, Mr. J, for the PY 2021-
2022

Particulars RPF NPS SAF Total

Opening balance of employer’s contribution 9,80,000 10,90,000 11,95,000 32,65,000

Employer’s contribution of current PY 3,20,000 3,15,000 3,50,000 9,85,000

Income accrued employer’s contribution of 90,000 1,05,000 1,10,000 3,05,000

current PY

Closing balance of employer’s contribution 13,90,000 15,10,000 16,55,000 45,55,000

Section 17(2)(vii)

Total employer’s contribution `9,85,000

Less : Standard limit `7,50,000

Perquisite value `2,35,000

Section 17(2)(viia)
TP = (PC / 2) * R + (PC1 + TP1) * R

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TP Taxable perquisite u/s 17(2)(viia) for PY 2020-2021 (`2,35,000 / 2 * 7.80%) + (`1,50,000

+ `7409) * 7.80%
= `21,444
TP1 Aggregate of taxable perquisite u/s 17(2)(viia) for the `7,409
PY or PYs starting on/after 1/4/2020 other than the
PY 2020-2021
PC Amount or aggregate of amounts of employer’s `9,85,000 - `7,50,000 = `2,35,000
contribution in excess of `7,50,000 to specified fund
during PY 2020-2021
PC1 Amount or aggregate of amounts of employer’s `1,50,000
contribution in excess of `7,50,000 to the specified
fund for the PY or PYs starting on/after 1/4/2020
other than the current PY
R I / Favg `3,05,000 / `39,10,000 = 7.80%
I Amount or aggregate of amounts of income `3,05,000
accrued during the PY 2020-2021 in the
specified fund
Favg Amount or aggregate of amounts of balance (`32,65,000 + `45,55,000) / 2 =
to the credit of the specified fund on `39,10,000
1/4/2020
+
Amount or aggregate of amounts of balance
to the credit of specified fund on 31/3/2021
2
Illustration 5: GGC Pvt. Ltd. contributed `8,50,000 during the PY 2020-2021 towards RPF to the
account of Mr. J. Mr. J had also made an equivalent contribution. Balance in his RPF A/c as on 1/4/2020
is `32,00,000. Interest accrued in his RPF during the PY 2020-2021 is `3,44,250. The taxable perquisite
u/s 17(2)(viia) for PY 2020-2021 would be computed in the following manner:

Section 17(2)(vii)

Total employer’s contribution `8,50,000

Less : Exempt `7,50,000

Perquisite value `1,00,000

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Section 17(2)(viia)
TP = (PC / 2) * R + (PC1 + TP1) * R
TP Taxable perquisite u/s 17(2)(viia) for PY 2020-2021 (`1,00,000 / 2) x 0.08153 + (Nil +
Nil) x 8.153% = `4,077
TP1 Aggregate of taxable perquisite u/s 17(2)(viia) for the Nil
PY or PYs starting on/after 1/4/2020 other than the (since this is the first year of
PY 2020-2021 taxability of such perquisite)
PC Amount or aggregate of amounts of employer’s `8,50,000 - `7,50,000 = `1,00,000
contribution in excess of `7,50,000 to specified fund
during PY 2020-2021
PC1 Amount or aggregate of amounts of employer’s Nil (Since this is the first previous
contribution in excess of `7,50,000 to the specified year for taxability of such
fund for the PY or PYs starting on/after 1/4/2020 perquisite)
other than the current PY
R I / Favg `3,44,250 / `42,22,125 x100
= 8.153%
I Amount or aggregate of amounts of income `3,44,250
accrued during the PY 2020-2021 in the
specified fund
Favg Amount or aggregate of amounts of balance (`32,00,000 + `52,44,250) / 2 =
to the credit of the specified fund on `42,22,125
1/4/2020
+ [`32,00,000 + `8,50,000 +
Amount or aggregate of amounts of balance `8,50,000 + `3,44,250 =
to the credit of specified fund on 31/3/2021 `52,44,250]
2

FILING OF INCOME TAX RETURN

Section 139AA : The last date for linking Aadhaar with PAN has been extended from 31/3/2021 to
30/6/2021

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AMENDMENTS IN GST FOR NOV 2021 EXAMS

REGISTRATION UNDER GST

SECTION 25(6D): PERSONS / CLASS OF PERSONS EXEMPT FROM AADHAAR
AUTHENTICATION
Provisions of section 25(6B) and Section 25(6C) shall not apply to
July 2021 exams November 2021 exams
(i) A person who is not a citizen of India (i) A person who is not a citizen of India
(ii) A class of persons other than the following (ii) Department or establishment of State
class of persons: Government or Central Government
 Individual (iii) Local authority

 Authorised signatory of all types (iv) Statutory body

 Managing and authorised partner (v) Public Sector Undertaking

 Karta of a Hindu Undivided Family (vi) A person applying for Unique Identity
Number.
Notification No. 03/2021 CT dated 23.02.2021

Rule 9 : Time limits for the submission of registration application

GST authority shall forward the application to the proper officer. (Superintendent of Central Excise)
July 2021 exams November 2021 exams
Rule 9(1): If application is in found to be Rule 9(1): If application is in found to be
complete: then registration certificate shall be complete: then registration certificate shall be
issued within 3 working days from the date of issued within 7 working days from the date of
submission of application. submission of application.
Proviso: that where a person (except notified u/s Proviso: that where a person (except notified u/s
25(6D) 25(6D)
(a) fails Aadhar authentication as per Rule 8(4A) or (a) fails Aadhar authentication as per Rule 8(4A) or
(b) who does not opt for the Aadhar authentication (b) who does not opt for the Aadhar authentication
then the registration shall be granted only after then the registration shall be granted only after
physical verification of the principle place of physical verification of the principle place of
business in the presence of applicant within 60 business in the presence of applicant within 30
days from the date of application. days from the date of application

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If application is in found to be deficient If application is in found to be deficient

(i) Rule 9(2): If the application is not complete (i) Rule 9(2): If the application is not complete
then a notice shall be sent to the applicant in then a notice shall be sent to the applicant in
GST REG-03 within 3 working days from the GST REG-03 within 7 working days from the
date of submission of application of registration date of submission of application of registration
Proviso: that where a person (except notified u/s Proviso: that where a person (except notified u/s
25(6D) 25(6D)
(a) fails Aadhar authentication as per Rule 8(4A) or (a) fails Aadhar authentication as per Rule 8(4A) or
(b) who does not opt for the Aadhar authentication (b) who does not opt for the Aadhar authentication
then a notice shall be sent to the applicant in GST then a notice shall be sent to the applicant in GST
REG-03 within 21 working days from the date of REG-03 within 30 working days from the date of
submission of application of registration submission of application of registration
(ii) Rule 9(3): applicant will have to furnish (ii) Rule 9(3): applicant will have to furnish
clarification in GST REG-04 within a period of 7 clarification in GST REG-04 within a period of 7
working days from the date of receipt of notice working days from the date of receipt of notice
(iii) If application is in found to be complete then (iii) If application is in found to be complete then
proper officer shall issue registration certificate in proper officer shall issue registration certificate in
GST REG-06 within 7 working days from the date GST REG-06 within 7 working days from the date
of receipt of clarification of receipt of clarification
(iv) Rule 9(4): If no clarification is submitted or (iv) Rule 9(4): If no clarification is submitted or
the proper officer is not satisfied, the proper officer the proper officer is not satisfied, the proper officer
may, after recording reasons in writing, reject the may, after recording reasons in writing, reject the
application and inform in GST REG-05 application and inform in GST REG-05
July 2021
Rule 9(5): Deemed Approval of Registration application: the application for grant of registration
shall be deemed to have been approved if the proper officer fails to take any action within a period of
(i) within 3 working days from the date of submission of application [in a case where person successfully
completed Aadhar authentication or he is notified u/s 25(6D)] or
(ii) Within the time given in Rule 9(2) [in cases where a person, other than a person notified u/s 25(6D),
fails to undergo authentication of Aadhaar number as specified in Rule 8(4A)]
(iii) within a period of 21 days from the date of submission of the application [in cases where a person
does not opt for authentication of Aadhaar number]
(iv) within 7 working days from the date of receipt of clarification, information or documents furnished

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by the applicant under Rule 9(2)

then the application for the grant of registration shall be deemed to have been approved.
November 21
Rule 9(5): Deemed Approval of Registration application: the application for grant of registration shall
be deemed to have been approved if the proper officer fails to take any action within a period of
[Notification No. 94/2020 CT dated 22.12.2020]
Number of days Situation
within 30 working Where registration is to be granted after physical verification of the
days from the date of premises of a person
submission of the (i) who fails to undergo the Aadhaar authentication or
application (ii) who does not opt for Aadhaar authentication or
(iii) where proper officer deems it fit to carry out physical verification of
places of business
Within 7 working days For the person other than those covered above
from the date of
submission of the
application
Within 7 working days Where proper officer issues notice seeking clarification, information or
from the date of the documents from the applicant
receipt of the
clarification,
information or
documents furnished
by the applicant under
Rule 9(2)

Cancellation by GST officer on his own motion–Suo-motu cancellation or suspension

Section 29(2) and Rule 21 [Notification No. 94/2020 CT dated 22.12.2020]
Section 29(2) Rule 21
The proper officer may cancel the registration of The registration granted to a person is liable to be
a person from such date, including any cancelled, if the said person
retrospective date, as he may deem fit, where (a) does not conduct any business from the
(a) a registered person has contravened such declared place of business; or

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provisions of the CGST Act or the CGST rules; (b) issues invoice or bill without supply of goods
or or services or both in violation of the
(b) a person paying tax under composition scheme provisions of the CGST Act or CGST Rules;
has not furnished returns for 3 consecutive tax or
periods (c) violates the provisions of Section 171 of the
(c) any registered person has not furnished returns CGST Act i.e. if rate of GST has been
for a continuous period of 6 months decreased, benefit should be given to the
(d) any person who has taken voluntary customer but he does not pass the benefit
registration and has not commenced business (d) violates the provision of Rule 10A of CGST
within 6 months from the date of registration Rules
(e) registration has been obtained by means of (e) avails ITC in violation of section 16 of the
fraud, willful misstatement or suppression of CGST Act or CGST Rules; or
facts (f) mismatch of GSTR-1 and GSTR-3B for one
(f) The Proper officer (superintendent of central or more tax periods; or
excise) shall issue a notice before cancellation (g) violates the provision of Rule 86B
and only after giving an opportunity of being
heard decision shall be taken to cancel the
certificate: 1st Proviso to section 29(2)
RULE 21A: SUSPENSION OF GST REGISTRATION
Rule Registered person has the registration shall be deemed to be suspended from the date
21A(1) applied for cancellation later of
of registration a) date of submission of the application for cancellation
b) date from which the cancellation is sought
this is till completion of proceedings for cancellation of
registration under rule 22
Rule Where cancellation of The Proper Officer may suspend the registration of a person
21A(2) the registration has been without giving opportunity of being heard and such
initiated by the suspension shall be done with effect from a date to be
Department on their determined by the Proper Officer
own motion
Rule mismatch of GSTR-1  If there is a mismatch indicating significant differences
21A(2A) and GSTR filed under which may lead to cancellation of registration
section 39 for one or  the registration shall be suspended and registered person

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more tax periods shall be intimated in form GST REG-31 on the common
portal or by sending an e-mail
 mentioning said differences in the form GST REG-31
 asking him to explain within a period of 30 days as to why
his registration shall not be cancelled
Rule Restriction on registered A registered person, whose registration has been suspended as
21A(3) person whose per Rule 21A(1) or (2) or (2A) above:
registration has been (a) shall not make any taxable supply during the period of
suspended suspension and
(b) shall not be required to furnish any return under section 39
Explanation: The expression "shall not make any taxable
supply" shall mean that the registered person shall not issue a
tax invoice and, accordingly, not charge tax on supplies made
by him during the period of suspension.
Rule Denial of refund A registered person, whose registration has been suspended
21(3A) under sub-rule (2) or sub-rule (2A), shall not be granted
any refund u/s 54, during the period of suspension of his
registration
Rule Revocation of The suspension of registration shall be deemed to be revoked
21A(4) cancellation upon completion of the cancellation proceedings by the Proper
Officer. Such revocation shall be effective from the date on
which the suspension had come into effect.
Provided that the suspension of registration under this rule
may be revoked by the proper officer, anytime during the
pendency of the proceedings for cancellation, if he deems fit
Rule Revised invoices and Where any order of revocation of suspension of registration
21A(5) first return has been passed the registered person has to issue revised
invoices u/s 31(3)(a) and has to file first GSTR u/s 40 related
to supplies made during the period of suspension

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INVOICE UNDER GST

Rule 48: MANNER OF ISSUE OF INVOICE
Rule 48(4): E-Invoicing
July 2021 November 2021
 E-Invoice shall be prepared by every registered  E-Invoice shall be prepared by every registered
person [except those who are covered under Rule person [except those who are covered under Rule
54(2), (3), (4) and (4A) or SEZ Unit] 54(2), (3), (4) and (4A) or SEZ Unit]
 Whose aggregate turnover in any preceeding  Whose aggregate turnover in any preceeding
financial year from 2017-2018 exceeds `500 financial year from 2017-2018 exceeds `50
crores [aggregate of supply of goods or supply of crores [aggregate of supply of goods or supply of
services or both to a registered person] services or both to a registered person] :
 Such E-Invoice and other prescribed documents Notification No.05/2021 CT dated 08.03.2021 –
for the supply of goods or services or both which implemented from 1/4/2021
have been supplied to registered dealer [i.e. B2B  Such E-Invoice and other prescribed documents
transactions] or issued for the export for the supply of goods or services or both which
have been supplied to registered dealer [i.e. B2B
transactions] or issued for the export

E-WAY BILL
Rule 138(10): Validity of e-way bill
Sl. Distance within Validity period from relevant date
No. country
1. Upto 100 km One day in cases other than Over Dimensional Cargo or multimodal shipment
200 km in which at least one leg involves transport by ship
[Notification No. 94/2020 CT dated 22/12/2020 implemented from 1/1/2021]
2. For every 100 km One additional day in cases other than Over Dimensional Cargo or
200 km or part multimodal shipment in which at least one leg involves transport by ship
thereof thereafter [Notification No. 94/2020 CT dated 22/12/2020 implemented from 1/1/2021]
3. Upto 20 km One day in case of Over Dimensional Cargo or multimodal shipment in which
at least one leg involves transport by ship
4. For every 20 km or One additional day in case of Over Dimensional Cargo or multimodal
part thereof shipment in which at least one leg involves transport by ship
thereafter
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Rule 138(10) : Validity of the e-way bill can be extended within eight hours from the time of its expiry
Rule 138E: Restriction on furnishing of information in Part A of form GST-EWB-01
July 2021 November 2021
No person (including a consignor, consignee, No person (including a consignor, consignee,
transporter, an e-commerce operator or a courier transporter, an e-commerce operator or a courier
agency) shall be allowed to furnish the information agency) shall be allowed to furnish the information
in PART A of FORM GST EWB-01 related to in PART A of FORM GST EWB-01 related to
registered person, whether as a supplier or a registered person, whether as a supplier or a
recipient recipient
(a) who is a person paying tax under composition (a) who is a person paying tax under composition
scheme u/s 10 has not furnished the statement scheme u/s 10 has not furnished the statement
in FORM GST CMP-08 for two consecutive in FORM GST CMP-08 for two consecutive
quarters or quarters or
(b) who is a person paying tax under regular (b) who is a person paying tax under regular
scheme has not furnished the returns for a scheme has not furnished the returns for a
consecutive period of two months consecutive period of two tax periods
(c) who is a person paying tax under regular (c) who is a person paying tax under regular
scheme has not furnished GSTR-1 scheme has not furnished GSTR-1
(statement of outward supplies) for any two (statement of outward supplies) for any two
months or quarters, as the case may be tax periods
(d) whose registration has been suspended
under Rule 21A.
[Notification No. 94/2020 CT dated 22/12/2020]

GST RETURNS

Quarterly Return Monthly Payment Scheme: (QRMP)

CIRCULAR NO. 143/13/2020 and Rule 61A
Effective date This new Scheme will be effective from 1-1-2021
of
implementation
Basic  QRMP Scheme is an optional return filing scheme
Introduction  introduced for small taxpayers having

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 aggregate annual turnover (PAN based) of

 `500 lakhs or less in the current and preceding financial year
 to furnish their Form GSTR-1 and Form GSTR-3B on a quarterly basis while
paying their tax on a monthly basis through a simple challan
 Opting of QRMP scheme is GSTIN wise.
 Distinct persons can avail QRMP scheme option for one or more GSTINs. It
implies that some GSTINs for a PAN can opt for the QRMP scheme and remaining
GSTINs may not opt for the said scheme
Eligible person a registered person who is required to furnish a return in FORM GSTR-3B, and
who has an aggregate turnover of `500 lakhs or less in the preceding financial
year, is eligible for the QRMP Scheme.
Manner to aggregate annual turnover for the preceding financial year shall be calculated in the
calculate common portal taking into account the details furnished in the returns by the
aggregate taxpayer for the tax periods in the preceding financial year.
turnover
In-eligible Further, in case the aggregate turnover exceeds 5 crore rupees during any quarter in
person the current financial year, the registered person shall not be eligible for the Scheme
from the next quarter.
Exercising Facility to avail the Scheme on the common portal would be available throughout
option for the year. A registered person can opt in for any quarter from first day of second
QRMP Scheme month of preceding quarter to the last day of the first month of the quarter. In order
to exercise this option, the registered person must have furnished the last return, as
due on the date of exercising such option.
For example: A registered person intending to avail of the Scheme for the quarter
'July to September' can exercise his option during 1st of May to 31st of July.
If he is exercising his option on 27th July for the quarter (July to September), in such
case, he must have furnished the return for the month of June
option every Registered persons are not required to exercise the option every quarter. Where such
quarter option has been exercised once, they shall continue to furnish the return as per the
selected option for future tax periods, unless they revise the said option.
Option GSTIN option to avail the QRMP Scheme is GSTIN wise and therefore, distinct persons as
wise defined in Section 25 of the CGST Act (different GSTINs on same PAN) have the
option to avail the QRMP Scheme for one or more GSTINs. In other words, some

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GSTINs for that PAN can opt for the QRMP Scheme and remaining GSTINs may
not opt for the Scheme.
details of The registered persons opting for the Scheme would be required to furnish the details
outward of outward supply in FORM GSTR-1 quarterly basis
supplies For each of the first and second months of a quarter, such a registered person will
have the facility (Invoice Furnishing Facility- IFF) to furnish the details of such
outward supplies to a registered person, as he may consider necessary, between the
1st day of the succeeding month till the 13th day of the succeeding month. The said
details of outward supplies shall, however, not exceed the value of fifty lakh rupees
in each month. It may be noted that after 13th of the month, this facility for
furnishing IFF for previous month would not be available. As a facilitation measure,
continuous upload of invoices would also be provided for the registered persons
wherein they can save the invoices in IFF from the 1st day of the month till 13th day
of the succeeding month. The facility of furnishing details of invoices in IFF has
been provided so as to allow details of such supplies to be duly reflected in the
FORM GSTR-2A and FORM GSTR-2B of the concerned recipient.
For example, a registered person who has availed the Scheme wants to declare two
invoices out of the total ten invoices issued in the first month of quarter since the
recipient of supplies covered by those two invoices desires to avail ITC in that month
itself. Details of these two invoices may be furnished using IFF. The details of the
remaining 8 invoices shall be furnished in FORM GSTR-1 of the said quarter. The
two invoices furnished in IFF shall be reflected in FORM GSTR-2B of the
concerned recipient of the first month of the quarter and remaining eight invoices
furnished in FORM GSTR-1 shall be reflected in FORM GSTR-2B of the
concerned recipient of the last month of the quarter.
The details of invoices furnished using the said facility in the first two months are
not required to be furnished again in FORM GSTR-1.
Monthly The registered person under the QRMP Scheme would be required to pay the tax
Payment of due in each of the first two months of the quarter by depositing the due amount in
Tax FORM GST PMT-06, by 25th day of the month succeeding such month. The said
person can use any of the following two options provided below for monthly
payment of tax during the first two months —
(a) Fixed Sum Method: A facility is being made available on the portal for

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generating a pre-filled challan in FORM GST PMT-06 for an amount equal to

thirty-five per cent. of the tax paid in cash in the preceding quarter where the
return was furnished quarterly; or equal to the tax paid in cash in the last month
of the immediately preceding quarter where the return was furnished monthly.
i. In case the last return filed was on quarterly basis for Quarter Ending March, 2021:
Tax paid in Cash in Quarter Tax required to be paid in each of the
(January - March, 2021) months - April and May, 2021
CGST 100 CGST 35
SGST 100 SGST 35
IGST 500 IGST 175
ii. In case the last return filed was monthly for tax period March, 2021:
Tax paid in Cash in March, Tax required to be paid in each of the months - April
2021 and May, 2021
CGST 50 CGST 50
SGST 50 SGST 50
IGST 80 IGST 80
Monthly tax payment through this method would not be available to those
registered persons who have not furnished all of their returns.
(b) Self-Assessment Method: The said persons, in any case, can pay the tax due by
considering the tax liability on inward and outward supplies and the input tax
credit available, in FORM GST PMT-06. In order to facilitate ascertainment of
the ITC available for the month, an auto-drafted input tax credit statement has
been made available in FORM GSTR-2B, for every month.
Quarterly Such registered persons would be required to furnish FORM GSTR-3B, for each
filing of quarter, on or before 22nd or 24th day of the month succeeding such quarter.
FORM
GSTR-3B

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Applicability
of Interest For registered person making For registered person making
payment of tax by opting Fixed Sum payment of tax by opting Self-
Method Assessment Method
In case the tax due (which is auto- Interest amount would be payable as
calculated fixed sum) is paid in the first per Section 50 for tax or any part
two months of the quarter, within the thereof (net of ITC) which remains
due date - No interest would be payable unpaid or is paid beyond the due date
if it is found that the tax liability (net of for the first two months of the quarter
ITC available) was higher than the
amount paid
If it is not paid within the due date then
interest would be payable at the
applicable rate, from the due date of
furnishing FORM GST PMT-06 till
the date of making such payment.
In case FORM GSTR-3B for the
quarter is furnished beyond the due
date, interest would be payable as per
Section 50 for the tax liability net of
ITC.

Applicability late fee would be the applicable for delay in furnishing of the said quarterly
of Late Fee return/details of outward supply. It is clarified that no late fee is applicable for delay
in payment of tax in first two months of the quarter.

FORM AND MANNER OF ASCERTAINING DETAILS OF INWARD SUPPLIES – GSTR-2A

AND GSTR-2B : RULE 60 (NEW)

Form GSTR-2A - is a system generated read only statement of inward supplies for a recipient. This
statement is updated on a real time basis. The details become available to the recipient for view/download
and are updated as and when supplier upload or change details in their respective form of return/statement,
for the given tax period.

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Rule Details of outward supplies furnished by the supplier in Form GSTR-1 or using the IFF is made
60(1) available electronically to the concerned registered persons (recipients) in Form GSTR-2A, in
Form GSTR-4A [The GSTR-4A is a purchase-related tax return for composition dealers] and in
Form GSTR-6A [summary for an Input Service Distributor (ISD) to view all inward supplies
details from the supplier]
Rule Details of invoices furnished by
60(2)  Rule 60(2): a non-resident taxable person in Form GSTR-5
–  Rule 60(3): an Input Service Distributor in Form GSTR-6
Rule  Rule 60(4): details of TDS by deductor furnished in Form GSTR-7
60(5)  Rule 60(5): details of TCS by an e-commerce operator furnished in Form GSTR-8

are made available to the recipient, deductee or concerned person, in Form GSTR-2A.
Rule Details of the IGST paid on the import of goods or goods brought in DTA from SEZ unit/developer
60(6) on a bill of entry are also made available in Form GSTR-2A.
Rule Form GSTR-2B – an auto-drafted read only statement containing the details of ITC - is made
60(7) available to the registered person (recipient) for every month. It is a static statement and is
available only once a month. It consists of –
(i) the details of outward supplies furnished by the suppliers in Form GSTR-1, other than a
supplier who has opted for QRMP scheme, between the day immediately after the due date of
furnishing of Form GSTR-1 for the previous month to the due date of furnishing of Form GSTR-
1 for the month.
(ii) the details of outward supplies furnished by his supplier who has opted for QRMP scheme, in
Form GSTR-1 or using the IFF, as the case may be-
(a) for the 1st month of the quarter, between the day immediately after the due date of
furnishing of Form GSTR-1 for the preceding quarter to the due date of furnishing details
using the IFF for the 1st month of the quarter;
(b) for the 2nd month of the quarter, between the day immediately after the due date of
furnishing details using the IFF for the 1st month of the quarter to the due date of furnishing
details using the IFF for the 2nd month of the quarter;
(c) for the 3rd month of the quarter, between the day immediately after the due date of
furnishing of details using the IFF for the 2nd month of the quarter to the due date of furnishing
of Form GSTR-1 for the quarter.
(iii) the details of the integrated tax paid on the import of goods or goods brought in the DTA
from SEZ unit/developer on a bill of entry in the month.

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Form GSTR-2B consists of all documents filed by suppliers/ISD in their Form GSTR-1, 5 & 6, between
the cut-off dates. It also consists of import data for the period which are received within 13th of the
succeeding month.
In case of monthly Form GSTR-1, the cut-off date is 00:00 hours on 12th of the relevant month to 23:59
hours, on 11th of the succeeding month. Whereas for quarterly Form GSTR-1/IFF, Form GSTR-5 and Form
GSTR-6, the cut-off date is 00:00 hours on 14th day of relevant month to 23:59 hours, on 13th day of
succeeding month.
The details filed in Form GSTR-1 & 5 (by supplier) & Form GSTR-6 (by ISD) would reflect in the next
open Form GSTR-2B of the recipient irrespective of supplier’s/ISD’s date of filing.
If a supplier opting for QRMP files an invoice dated 15th July on 13th August, it will get reflected in GSTR-
2B of July (generated on 14th August). If the document is filed on 14th August, the document will be
reflected in Form GSTR-2B of August (generated on 14th September).
Rule The statement in Form GSTR-2B for every month shall be made available to the registered person
60(8) (i) for the 1st and 2nd month of a quarter, a day after the due date of furnishing of details of outward
supplies for the said month
 in the IFF by a registered person opting for QRMP, or
 in Form GSTR-1 by a registered person other than opting for QRMP, whichever is later.
(ii) in the 3rd month of the quarter, a day after the due date of furnishing of details of outward
supplies for the said month, in Form GSTR-1 by a registered person opting for QRMP
For the quarter July-September, Form GSTR-2B for a registered person (recipient) who has received
supplies from QRMP suppliers as well as from other suppliers will be generated as follows:
Month Date of generation of GSTR-2B
July 14th August
August 14th September
September 14th October

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FORM AND MANNER OF FILING RETURN – GSTR-3B : RULE 61 (NEW)

Rule Every registered person, other than
61(1) a) an input service distributor or
b) a non-resident taxable person or
c) a composition taxpayer or
d) a person deducting tax at source or
e) a person collecting tax at source and
f) supplier of OIDAR services located in non-taxable territory
shall furnish a return in form GSTR-3B electronically as per following due dates
(i) In case of taxpayers not opting for QRMP - Monthly GSTR-3B on or before 20th of the
month succeeding the month for which return is furnished.
(ii) In case of a taxpayer opting for QRMP scheme, due dates are
Class of registered persons Due date
Registered persons whose principal place of business is in 22nd day of the month succeeding
the States of Chhattisgarh, Madhya Pradesh, Gujarat, such quarter.
Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu,
Telangana, Andhra Pradesh, Union territories of Daman
& Diu & Dadra & Nagar Haveli, Puducherry, Andaman
and Nicobar Islands or Lakshadweep.
Registered persons whose principal place of business is in 24th day of the month succeeding
the States of Himachal Pradesh, Punjab, Uttarakhand, such quarter.
Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim,
Arunachal Pradesh, Nagaland, Manipur, Mizoram,
Tripura, Meghalaya, Assam, West Bengal, Jharkhand or
Odisha, the Union territories of Jammu and Kashmir,
Ladakh, Chandigarh or Delhi.

Rule Every registered person required to furnish return shall, discharge their liability towards tax,
61(2) interest, penalty, fees or any other amount payable under GST law by debiting the electronic cash
ledger or electronic credit ledger and include the details in the return in form GSTR-3B
Rule Every registered person under QRMP scheme shall pay the tax due under proviso to section 39(7)
61(3) for each of the first 2 months of the quarter, by depositing the said amount in Form GST PMT-
06, by the 25th day of the month succeeding such month.

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1st Proviso: The Commissioner on the recommendations of the GST Council and by issue of
notification, can extend the due date for depositing the said amount in Form GST PMT-06, for
such class of taxable persons as may be specified therein.
2nd Proviso: Further, any extension of time limit notified by the Commissioner of State tax / UT
shall be deemed to be notified by the Commissioner
3rd Proviso: While making a deposit in Form GST PMT-06, such a registered person may
(a) for the 1st month of the quarter, take into account the balance in the electronic cash ledger.
for the 2nd month of the quarter, take into account the balance in the electronic cash ledger
excluding the tax due for the 1st month
Rule At the time of filing the return for the said quarter in Form GSTR- 3B, the amount deposited by
61(4) the registered person in the first 2 months of the quarter shall be debited. This amount is debited
solely for the purposes of offsetting the liability furnished in that quarter’s Form GSTR-3B.
However, any amount left after filing of that quarter’s Form GSTR-3B may either be claimed as
refund or may be used for any other purpose in subsequent quarters.

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Extension of due date for furnishing Form GSTR-1 [Notification No. 83/2020 CT dated 10.11.2020]
With effect from 1/1/2021 the time limit for furnishing the details of outward supplies in Form GSTR-1
has been extended in the following manner:
Class of registered person Time limit for furnishing the details of outward
supplies in Form GSTR-1 for each quarter/tax
period
Registered persons opting for QRMP scheme 13th day of the month succeeding such tax period
Others 11th day of the month succeeding such tax period

INPUT TAX CREDIT

ITC to be availed in respect of invoices/debit notes not uploaded by the suppliers in their GSTR-1s,
reduced from 10% to 5% of eligible ITC [Rule 36(4)]
WTF 1/1/2021 has amended Rule 36(4) to reduce the said percentage of ITC from 10% to 5%
PAYMENT OF GST
Restrictions on use of amount available in electronic credit ledger: Rule 86B [Notification No. 94/2020
CT dated 22/12/2020]
It implies that a registered person shall not use the amount available in electronic credit ledger to discharge
his liability towards output tax in excess of 99% of such tax liability, in cases where the value of taxable
supply other than exempt supply and zero-rated supply, in a month exceeds `50,00,000
Illustration: The total value of inter-State supply of Raman & Sons for the month of February 2021 is of
`100,00,000. Said supply is taxable @ 18% IGST. Thus, total output tax liability of Raman & Sons is
`18,00,000. Amount available in electronic credit ledger is ` 20,00,000 of IGST
In terms of restriction imposed by rule 86B, Raman & Sons can discharge 99% of its output tax liability,
i.e. ` 17,82,000 (99% of ` 18,00,000) from the amount available in electronic credit ledger. However, it has
to mandatorily discharge the balance 1% of the output tax liability i.e. `18,000 (1% of `18,00,000) through
electronic cash ledger only.
Exceptions:
This restriction shall not apply in following cases
(a) Where the said person / proprietor / karta / managing director / any of its two partners, whole-time
directors, members of Managing Committee of Associations or Board of Trustees, as the case may be,
have paid more than `1,00,000 as income tax in each of the last 2 financial years
(b) Where the registered person has received a refund of more than `1,00,000 in the preceding FY on
account of unutilized ITC in case of zero rated supplies.

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(c) Where the registered person is:-

 Government Department
 Public Sector Undertaking
 Local authority
 Statutory body
However, the Commissioner or an officer authorised by him in this behalf may remove the said restriction
after such verifications and such safeguards as he may deem fit.

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