5 6269551039725175633

Applicable for CA/CS/CMA - Nov/Dec 2021 CHARTMASTER’s IDT - Statutory updates
Index
Composition Levy ............................................................................................................... 4
Section 10(2) amended to insert the word “or services” for people ineligible to opt for composition ............. 4
Section 10(2): Person ineligible to opt for composition .......................................................................................4

Section 10(2A): .....................................................................................................................................................4
Registration........................................................................................................................ 5
Section 25(6D): AA not required in case of notified person. New notification issued in suspension of old
notification, specifying the persons not required AA. .............................................................................. 5
Section 25(1): Person liable to be registered shall apply within 30 days of becoming liable ......................... 6
Rule 9 - Verification of the application and approval. Time limits enhanced for PO to grant registration from
3 to 7 working days & for physical verification from 21 to 30 days. ....................................................................6
Section 29: Cancellation or Suspension of registration – amended to allow voluntary registered person to
apply for cancellation. ........................................................................................................................ 8
Rule 21-Registration to be cancelled in certain cases – Amended to include additional situations when PO can
cancel registration ................................................................................................................................................8
Rule 21A: Suspension of registration - Amended ................................................................................... 9
Rule-22: Cancellation of registration – PO has reason to believe that registration is liable to be cancelled –
Consequential amendment to include Rule 21A(2A). ............................................................................ 10
Section 30: Revocation of cancellation of registration – Now the time limit to apply for revocation can be
extended by AC/JC by 30 days & Commissioner by further 30 days. ...................................................... 11
Tax Invoice, Credit and Debit Notes ................................................................................. 12
Proviso to section 31(2) amended empowering government to specify categories of services w.r.t. which time
& manner of invoicing can be prescribed. ............................................................................................ 12
HSN code – new notification issued. HSN to be mentioned by all RPs issuing B2B invoice from 01.04.21. .. 12
Rule 46 – 6th proviso inserted – Govt may notify, that the tax invoice shall have QR code ......................... 13
Notification Seeks to notify class of registered persons required to capture dynamic QR code [NNo. 14/2020–
CT dated 21.03.20 – Effective 01.12.20] – RP (except BG-PMO) + ATO > 500 cr + B2C supplies. ......................13
Clarification in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance
of NNo. 14/2020: Circular no. 146/02/2021-GST dt. 23.02. 21 ..........................................................................14
Notification Seeks to notify certain class of registered persons required to issue e-invoice. RP + ATO in any
preceeding FY from 17-18 onwards, exceeds 50 crores. ....................................................................... 16
E Way Bill ......................................................................................................................... 17

Rule 138: Information to be furnished prior to commencement of movement of goods & generation of EWB. –
138(10): Validity of EWB reduced i.e., 1 day per 200 Kms for other than ODC/MMT(s). ........................... 17
Rule 138E: Restriction on furnishing of information in PART A of FORM GST EWB-01 – Additional situation
introduced for blocking Generation of EWB i.e., during suspension of registration. ................................... 17
Input Tax Credit ............................................................................................................... 18
Section 16(2): Conditions for claiming ITC .......................................................................................... 18
Rule 36: Documentary requirements and conditions for claiming ITC. Rule 36(4) amended, 10% reduced to
5%. ......................................................................................................................................................................18
Section 16(4): Maximum time limit to claim ITC relating to Invoice or debit note..................................... 18
Payment of Tax ................................................................................................................ 19
New Rule 86B: Restrictions on use of amount available in electronic credit ledger – 99% ......................... 19
Returns ............................................................................................................................ 20
Section 37: Furnishing details of outward supplies ............................................................................... 20
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Notification No. 83/2020 – Central Tax dated 10.11.20 – Seeks to extend the due date for Monthly GSTR-1 till
the eleventh day of the month succeeding such tax period. .............................................................................20
Rule 59: Form and manner of furnishing details of outward supplies - substituted with a new rule................20
Section 38: Furnishing details of inward supplies ................................................................................. 22
Rule 60: Furnishing details of inward supplies - substituted with a new rule ...................................................22
Section 39: Furnishing of returns ....................................................................................................... 23
Section 39(1): Every RP to file return monthly by 20th of the month succeeding such calendar month or part
thereof. ...............................................................................................................................................................23
Rule 61: Form and manner of submission of monthly return - substituted with a new rule.............................23
Rule 61A: Manner of opting for furnishing quarterly return – New rule introduced .................................... 25
Notification No. 84/2020 – Central Tax dated 10.11.2020 - Seeks to notify class of persons under proviso to
section 39(1). ................................................................................................................................. 26
Section 39(2) r/w rule 62: Composition dealer .................................................................................... 27
Rule 62: Form and manner of submission of statement and return ..................................................................27
Section 39(7) Tax shall be paid on/before the last date of filing return ................................................... 27
Notification No. 85/2020 – Central Tax dated 10.11.20 – Seeks to notify special procedure for making
payment of 35% as tax liability in first two month ............................................................................... 28
CA Ramesh Soni | +91 93536 19482 3

Composition Levy
Section 10(2) amended to insert the word “or services” for people ineligible to opt for
composition
Section 10(2): Person ineligible to opt for composition1
The registered person shall be eligible to opt under sub-section (1), if—
(a) save as provided in sub-section (1), he is not engaged in the supply of services;
(b) he is not engaged in making any supply of goods or services which are not leviable to tax under
this Act;
(c) he is not engaged in making any inter-State outward supplies of goods or services;
(d) he is not engaged in making any supply of goods or services through an ECO who is required to
collect tax at source under section 52;
(e) he is not a manufacturer of such goods as may be notified by the Government on the
recommendations of the Council; and
(f) he is neither a CTP nor a NRTP.
Section 10(2A):
Notwithstanding anything to the contrary contained in this Act, but subject to the provisions of
sub-sections (3) and (4) of section 9,
• a RP, not eligible to opt to pay tax under sub-section (1) and sub section (2),
• whose aggregate turnover in the preceding financial year did not exceed fifty lakh rupees,
• may opt to pay, in lieu of the tax payable by him under section 9(1),
• an amount of tax calculated at such rate as may be prescribed, but not exceeding 3% of the turnover
in State or turnover in Union territory,
• if he is not—
(a) engaged in making any supply of goods or services which are not leviable to tax under this Act;
(b) engaged in making any inter-State outward supplies of goods or services;
(c) engaged in making any supply of goods or services through an electronic commerce operator
who is required to collect tax at source under section 52;
(d) a manufacturer of such goods or supplier of such services as may be notified by the Government
on the recommendations of the Council; and
(e) a casual taxable person or a non-resident taxable person:
Crux: Amendment in section 10(2) to bring it in line with section 10(2A). Hence now Interstate
supplier of services and Supplier of services through ECO are ineligible for composition.
1
Inserted by the Finance Act, 2020, w.e.f. 1-1-2021.
CA Ramesh Soni | +91 93536 19482 4
Registration
Section 25(6D): AA not required in case of notified person. New notification issued in
suspension of old notification, specifying the persons not required AA.
Section 25(6D):
The provisions of sub-section (6A) or sub-section (6B) or sub-section (6C) shall not apply to such
person or class of persons or any State or Union territory or part thereof, as the Government may, on the
recommendations of the Council, specify by notification.
Notification no 3/2021 CT dt. 23.02.21 issued in suspension of NNo. 17/2020

The provisions of sub-section (6B) or sub-section (6C) of section 25 of the said Act shall not
apply to a person who is, -
(a) not a citizen of India; or
(b) a Department or establishment of the Central Government or State Government; or
(c) a local authority; or
(d) a statutory body; or
(e) a Public Sector Undertaking; or
(f) a person applying for registration under the provisions of sub-section (9) of section 25 of
the said Act.
Notification no. 17/2020 – Central Tax dated 23.03.20 (Effective 01.04.20)

The provisions of sub-section (6B)/(6C) of the said Act shall not apply to a person who is not a citizen of
India/to a class of persons other than the following class of persons, namely:
• Individual;
• authorised signatory of all types;
• Managing & Authorised partner;
• Karta of a Hindu undivided family.
Crux: Post amendment: Following persons are not required AA:

Not an Indian Citizen, Dept of CG/SG, LA, A statutory body, A PSU, UIN Applicant.
Question:
When shall the provisions of Section 25(6B) pr (6C) not applicable to a person?
The provisions of sub-section (6B) or sub-section (6C) of section 25 of the said Act shall not apply to a
person who is, -
(a) not a citizen of India; or
(b) a Department or establishment of the Central Government or State Government; or
(c) a local authority; or
(d) a statutory body; or
(e) a Public Sector Undertaking; or
(f) a person applying for registration under the provisions of section 25(9) of the said Act.
CA Ramesh Soni | +91 93536 19482 5

Section 25(1): Person liable to be registered shall apply within 30 days of becoming liable
Every person who is liable to be registered u/s 22/24 shall apply for registration in every such
State/UT in which he is so liable within thirty days from the date on which he becomes liable to
registration, in such manner and subject to such conditions as may be prescribed.
Rule 9 - Verification of the application and approval.

Time limits enhanced for PO to grant registration from 3 to 7 working days & for physical
verification from 21 to 30 days.
(1) The Application shall be forwarded to PO - PO to examine application & accompanying

documents – if found to be in order, approve the grant of registration to the applicant within seven
three WDs from submission.
Provided that where-
(a) a person, other than a person notified under sub-section (6D) of section 25, fails to
undergo authentication of Aadhaar number as specified in sub-rule (4A) of rule 8 or does
not opt for authentication of Aadhaar number; or
(b) the proper officer, with the approval of an officer authorised by the Commissioner not
below the rank of Assistant Commissioner, deems it fit to carry out physical verification
of places of business,
the registration shall be granted within thirty days of submission of application, after
physical verification of the place of business in the presence of the said person, in the
manner provided under rule 25 and verification of such documents as the proper officer may
deem fit2.
Provided that where a person, other than those notified u/s 25(6D), fails to undergo authentication of
Aadhaar number as specified in rule 8(4A) or does not opt for authentication of Aadhaar number, the
registration shall be granted only after physical verification of the principle place of business in the
presence of the said person, in the manner provided under rule 25
Provided further that the PO may, for reasons to be recorded in writing and with the approval of an
officer not below the rank of Joint Commissioner, in lieu of the physical verification of the place of
business, carry out the verification of such documents as he may deem fit.
(2) PO to Issue notice to seek clarification in case of deficiency in application by issuing a notice
in GST REG-03 within a seven three working days (WDs) & applicant shall furnish clarification,
information or documents (CID) electronically, in GST REG-04, within 7 working days (WDs) from
the date of the receipt of notice.
Provided that where-

(a) a person, other than a person notified under sub-section (6D) of section 25, fails to
undergo authentication of Aadhaar number as specified in sub-rule (4A) of rule 8 or does
not opt for authentication of Aadhaar number; or
(b) the proper officer, with the approval of an officer authorised by the Commissioner not
below the rank of Assistant Commissioner, deems it fit to carry out physical verification
of places of business,
the notice in FORM GST REG-03 may be issued not later than thirty days from the date of
submission of the application.
Provided that where a person, other than a person notified under section 25(6D), fails to undergo
authentication of Aadhaar number as specified in rule 8(4A) or does not opt for authentication of
Aadhaar number, the notice in FORM GST REG-03 may be issued not later than 21 days from the date
of submission of the application.
2
Substituted by the Central Goods and Services Tax (Fourteenth Amendment) Rules, 2020, w.e.f. 22-12-2020.
CA Ramesh Soni | +91 93536 19482 6
Explanation - For the purposes of this sub-rule, the expression "clarification" includes
modification/correction of particulars declared in the application for registration, other than PAN, State,
mobile number and e-mail address declared in Part A of GST REG-01.
(3) PO Satisfied, approve grant of registration within 7 WDs from date of receipt of such CID.
(4) No reply/PO not satisfied - he may record reasons & reject application & inform applicant in GST
REG 05.
(5) If the proper officer fails to take any action, -

(a) within a period of 7 working days from the date of submission of the application in cases
where the person is not covered under proviso to sub-rule (1); or
(b) within a period of 30 days from the date of submission of the application in cases where
a person is covered under proviso to sub-rule (1); or
(c) within a period of 7 working days from the date of the receipt of the clarification,
information or documents furnished by the applicant under sub-rule (2),
the application for grant of registration shall be deemed to have been approved.
(5)If the proper officer fails to take any action,

(a) within a period of 3 working days from the date of submission of the application in cases where a
person successfully undergoes authentication of Aadhaar number or is notified under section
25(6D); or
(b) within the time period prescribed under the proviso to sub-rule (2), in cases where a person, other
than a person notified under section 25(6D), fails to undergo authentication of Aadhaar number
as specified in rule 8(4A); or
(c) 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; or
(d) within a period of 7 working days from the date of the receipt of the clarification, information or
documents furnished by the applicant under sub-rule (2), the application for grant of registration
shall be deemed to have been approved.
Crux:
Rule 9 amended to increase time limit for grant of registration
In a case where Application is in order and
• AA is not required/
• AA is required, applicant opts AA and also AA is successfully done
Time limit to grant registration enhanced from 3 to 7 working days.
Also, time limit to seek clarification, information or documents (in case application not in order)
increased from 3 to 7 days.
In a case where Application is not in order but

• AA failed/ Required but not opted/ PO deems it fit to carry out Physical verification
Time limit enhanced from 21 to 30 working days.
Also, time limit to seek clarification, information/documents increased from 21 to 30 days.
Also, consequent changes in Rule 9(5): i.e., provisions relating to deemed approval.
CA Ramesh Soni | +91 93536 19482 7

Section 29: Cancellation or Suspension of registration – amended to allow voluntary registered

person to apply for cancellation.
Section 29(1): The PO may, either

• on his own motion (Suo-moto) or on an application filed by the RP/by his legal heirs, in case of death
of RP,
• cancel the registration, in such manner and within such period as may be prescribed, having regard to
the circumstances
where, -
(a) the business has been discontinued, transferred fully for any reason including death/
amalgamation/demerger or otherwise disposed of; or
(b) there is any change in the constitution of the business; or
(c) the taxable person other than the person registered u/s 25(3), is no longer liable to be
registered under section 22 or section 24 or intends to optout of the registration voluntarily
made under section 25(3)3.
Crux: Post amendment a person voluntarily registered under section 25(3) can apply for
cancellation of registration (restriction removed).
Section 29(2): The PO may cancel the registration of a person from such date, including any
retrospective date, as he may deem fit, where, ––
(a) a RP has contravened such (rule 21) provisions of the Act/rules
Rule 21-Registration to be cancelled in certain cases – Amended to include additional situations

when PO can cancel registration
The registration granted to a person is liable to be cancelled, if the said person, -

(a) does not conduct any business from the declared place of business; or
(b) issues invoice or bill without supply of goods or services or both in violation of the provisions
of the Act, or the rules made thereunder; or
(c) violates the Anti profiteering provisions.
(d) violates the provision of rule 10A (furnishing of Bank account details on portal)
(e) avails input tax credit in violation of the provisions of section 16 of the Act or the rules
made thereunder; or
(f) furnishes the details of outward supplies in FORM GSTR-1 under section 37 for one or
more tax periods which is in excess of the outward supplies declared by him in his
valid return under section 39 for the said tax periods; or
(g)violates the provision of rule 86B4.
(b) Composition supplier has not furnished returns for three consecutive tax periods.
(c) RP, other than a composition supplier, has not furnished returns for a continuous period of 6 months
(d) any person who has taken voluntary registration has not commenced business within 6 months from
the date of registration.
(e) Registration has been obtained by means of fraud, willful misstatement or suppression of facts
Crux: Post amendment PO may cancel registration in following additional contraventions:

• avails ITC in violation of the provisions of section 16 or
• furnishes the details of outward supplies in GSTR-1 u/s 37 for one/more tax periods which
is in excess of the outward supplies declared by him in his valid return u/s 39 for the said
tax periods; or
• violates the provision of rule 86B.
3
Substituted by the Finance Act, 2020, w.e.f. 1-1-2021.
4
Inserted by the Central Goods and Services Tax (Fourteenth Amendment) Rules, 2020, w.e.f. 22-12-2020.
CA Ramesh Soni | +91 93536 19482 8
Rule 21A: Suspension of registration - Amended
(1) Where a RP has applied for cancellation – Pending cancellation, the registration shall be deemed to be
suspended:
- from the date of submission of the application or
- the date from which the cancellation is sought,
whichever is later.
(2) Where the PO has reason to believe that registration is liable to be cancelled, he may, after
affording the said person a reasonable OBH, suspend the registration with effect from a date to be
determined by him, pending the completion of the proceedings for cancellation.
(2A) Where, a comparison of the returns furnished by a registered person under section 39 with
(a) the details of outward supplies furnished in FORM GSTR-1; or
(b) the details of inward supplies derived based on the details of outward supplies furnished
by his suppliers in their FORM GSTR-1,
or such other analysis, as may be carried out on the recommendations of the Council, show
that there are significant differences or anomalies indicating contravention of the provisions
of the Act or the rules made thereunder, leading to cancellation of registration of the said
person, his registration shall be suspended and the said person shall be intimated in GST
REG-31, electronically, on the common portal, or by sending a communication to his e-mail
address provided at the time of registration or as amended from time to time, highlighting
the said differences and anomalies and asking him to explain, within a period of 30 days, as
to why his registration shall not be cancelled.
(3) A RP, whose registration has been suspended under sub-rule (1) or sub-rule (2), or sub-rule (2A)
shall not make any taxable supply & shall not be required to furnish any return u/s 39.
Explanation. - For the purposes of this sub-rule, 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.
(3A) A RP, whose registration has been suspended under sub-rule (2) or (2A), shall not be
granted any refund u/s 54, during the period of suspension of his registration.
(4) The suspension of registration under sub-rule (1) or sub-rule (2) or sub-rule (2A) shall be deemed to
be revoked upon completion of the cancellation proceedings by the PO & 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 PO,
anytime during the pendency of the proceedings for cancellation, if he deems fit5.
(5) Where any order having the effect of revocation of suspension of registration has been passed, the
provisions of clause (a) of sub-section (3) of section 31 and section 40 in respect of the supplies made
during the period of suspension and the procedure specified therein shall apply.
5
CA Ramesh Soni | +91 93536 19482 9
Crux:
• Rule 21(2) amended to provide that PO is no more required to provide OBH before suspension
of registration.
• New sub rule (2A) introduced, providing for immediate suspension in case of significant
differences/anomalies (i.e., on comparison of GSTR 1 with 3B/2A, analysis carries out on
recommendation of council) indicating contravention of the provisions of the Act or the rules.
• New sub rule (3A) introduced, to provide that RP whose registration has been suspended
under sub-rule (2) or (2A), shall not be granted any refund u/s 54, during the period of
suspension of his registration.
• Proviso to sub rule (4) inserted to provide that the suspension of registration may be revoked
by the proper officer, anytime during the pendency of the proceedings for cancellation, if he
deems fit.
Rule-22: Cancellation of registration – PO has reason to believe that registration is liable to be

cancelled – Consequential amendment to include Rule 21A(2A).
(1) PO shall issue a notice in REG-17, to show cause, within 7 WDs from the date of the service of
notice, as to why his registration shall not be cancelled.
(2) Reply to SCN shall be furnished in Form REG–18 within 7 WDs.
(3) Where a person who has submitted an application for cancellation of his registration is no
longer liable to be registered or his registration is liable to be cancelled,
• the proper officer shall issue an order in FORM GST REG-19, within a period of thirty days
• from the date of application submitted under rule 20 or, as the case may be, the date of the reply
to the show cause issued under sub-rule (1), or under sub-rule (2A) of rule 21A
• cancel the registration, with effect from a date to be determined by him and notify the taxable
person,
• directing him to pay arrears of any tax, interest or penalty including the amount liable to be paid
under sub section (5) of section 29.
(4) Where the reply furnished under sub-rule (2), or in response to the notice issued under sub-rule
(2A) of rule 21A6 is found to be satisfactory, PO shall drop the proceedings & pass an order Form REG
– 20.
Crux: Consequential amendment due to rule 21(2A).
6
Inserted by the Central Goods and Services Tax (Fourteenth Amendment) Rules, 2020, w.e.f. 22-12-2020
CA Ramesh Soni | +91 93536 19482 10
Section 30: Revocation of cancellation of registration – Now the time limit to apply for revocation
can be extended by AC/JC by 30 days & Commissioner by further 30 days.
(1) Subject to such conditions as may be prescribed, any RP, whose registration is cancelled by the PO on
his own motion, may apply to such officer for revocation of cancellation of the registration in the
prescribed manner within thirty days from the date of service of the cancellation order.
Provided that such period may, on sufficient cause being shown, and for reasons to be
recorded in writing, be extended, —
(a) by the Additional Commissioner or the Joint Commissioner, as the case may be, for a
period not exceeding thirty days;
(b) by the Commissioner, for a further period not exceeding thirty days, beyond the period
specified in clause (a)7.
(2) The PO in such manner and within such period as may be prescribed, by order, either revoke cancellation
of the registration or reject the application:
Provided that the application for revocation of cancellation of registration shall not be rejected unless
the applicant has been given an opportunity of being heard.
(3) The revocation of cancellation of registration under the State Goods and Services Tax Act or the Union
Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a revocation of
cancellation of registration under this Act.
Crux:
Before amendment time limit to submit application for revocation was 30 days and there were
no provisions for extension of such time limit,
Post amendment provisions introduced empowering Additional Commissioner/Joint
Commissioner to extend the time limit of 30 days by 30 days and Commissioner by further 30
days.
7
Proviso substituted by the Finance Act, 2020, w.e.f. 1-1-2021.
CA Ramesh Soni | +91 93536 19482 11
Tax Invoice, Credit and Debit Notes
Section 31(2): Tax Invoice in case of services

Proviso to section 31(2) amended empowering government to specify categories of services
w.r.t. which time & manner of invoicing can be prescribed.
A registered person supplying taxable services shall,

• before or after the provision of service
• but within a prescribed period (Rule 47: 30/45 days)
issue a tax invoice, showing the
• description,
• value,
• tax charged thereon and
• such other particulars as may be prescribed (Rule 46/46A)
Provided that the Govt may, on the recommendations of the Council, by notification, —
(a) specify the categories of services or supplies in respect of which a tax invoice shall be issued,
within such time and in such manner as may be prescribed;
(b) subject to the condition mentioned therein, specify the categories of services in respect of
which—
(i) any other document issued in relation to the supply shall be deemed to be a tax invoice;
or
(ii) tax invoice may not be issued8.
Proviso: the Govt may, on the recommendations of the Council, by notification & subject to such conditions
as may be mentioned therein, specify the categories of services in respect of which—
(a) any other document issued in relation to the supply shall be deemed to be a tax invoice; or
• tax invoice may not be issued.
Crux:
Prior to amendment government was empowered to specify manner of invoicing for goods but
not for services,
Post amendment government empowered to specify time & manner of invoicing w.r.t. category
of services.
HSN code – new notification issued.

HSN to be mentioned by all RPs issuing B2B invoice from 01.04.21.
With effect from 01.04.21, for the Table, the following shall be substituted, namely, -
ATO in PFY No of digits of HSN code
upto 5 crores 4 digits mandatory
>5 crores 6 digits is mandatory
Provided that a RP having ATO up to Rs 5 Cr in PFY may not mention HSN Code, in a tax invoice
issued by him under the said rules in respect of supplies made to unregistered persons.
NNo. 12/2017 – CT as amended by NNo. 78/2020 – CT/ dt. 15.10.20 [w.e.f. 01.04.21]
ATO in PFY No of digits of HSN code

Upto 1.5 crores Nil
>1.5 crores upto 5 crores 2 digits mandatory
>5 crores 4 digits is mandatory
8
Substituted by the Finance Act, 2020 w.e.f. 1-1-2021.
CA Ramesh Soni | +91 93536 19482 12
Rule 46 – 6th proviso inserted – Govt may notify, that the tax invoice shall have QR code
Provided also that the Government may, by notification, on the recommendations of the Council,
and subject to such conditions and restrictions as mentioned therein, specify that the tax invoice
shall have Quick Response (QR) code.
Notification Seeks to notify class of registered persons required to capture dynamic QR code
[NNo. 14/2020– CT dated 21.03.20 – Effective 01.12.20] – RP (except BG-PMO) + ATO > 500 cr
+ B2C supplies.
An invoice issued by a registered person, whose aggregate turnover in a financial year 9any preceeding
financial year from 2017-18 onwards exceeds five hundred crore rupees, other than those referred to
in sub-rules (2), (3), (4) and (4A) of rule 54 of said rules, and registered person referred to in section 14
of the IGST Act, 2017, to an unregistered person (hereinafter referred to as B2C invoice), shall have
Dynamic Quick Response (QR) code:
Provided that where such registered person makes a Dynamic Quick Response (QR) code available to the
recipient through a digital display, such B2C invoice issued by such registered person containing cross-
reference of the payment using a Dynamic Quick Response (QR) code, shall be deemed to be having Quick
Response (QR) code.
This notification shall come into force from the 1st day of October 1st day of December, 2020.
Crux:
Effective 01.12.20:
- RP + whose ATO (in any PFY from 17 – 18) exceeds 500 crores
- With respect to: Supplies to URP (B2C supplies)
- Invoice should have Dynamic Quick Response (QR) code
NA to RP: (Mnemonic - BGPMO)

1. Rule 54(2): Insurance co, Banking co, FI including NBFC
2. Rule 54(3): GTA supplying services in relation to transportation of goods by road
3. Rule 54(4): Supplier supplying Passenger transportation service.
4. Rule 54(4A): Supplier supplying services by way of admission to exhibition of cinematograph films in
Multiplex screens.
5. OIDAR u/s 14 of IGST act.
Purpose of amendment: To enable and encourage digital payments where buyer can scan the dynamic
QR code and make payment from mobile wallet directly. Today, many shops have static QR code at the
payment counter which is scanned by the buyer, but the buyer has to enter the amount to be paid to the
shop in the mobile payment App. The dynamic QR code, on the other hand, will have the payment details
and thus ‘scan and pay’ in one go is possible.
9
Notification No. 71/2020 – Central Tax dated 30.09.20
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Clarification in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices
and compliance of NNo. 14/2020: Circular no. 146/02/2021-GST dt. 23.02. 21
NNo. 14/2020-CT, dt. 21.03.20 had been issued which requires Dynamic QR Code on B2C invoice issued
by taxpayers having aggregate turnover more than 500 crore rupees, w.e.f. 01.12.2020. Further, vide NNo.
89/2020- CT, dated 29.11.20, penalty has been waived for non-compliance of the provisions of
NNo.14/2020 – CT for the period from 01.12.20 to 31.03.21, subject to the condition that the said person
complies with the provisions of the said Notification from 01st April, 2021.
Various references have been received from trade and industry seeking clarification on applicability of
Dynamic QR Code on B2C invoices and compliance of NNo. 14/2020-CT, dated 21.03.20 as amended.
The issues have been examined and 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, 2017, hereby clarifies the issues in the table below:
SN Issues Clarification
1 To which invoice is NNo This notification is applicable to a tax invoice issued to
14/2020- Central Tax dated an URP by a RP (B2C invoice) whose annual aggregate turnover
21st March, 2020 applicable? exceeds 500 Cr rupees in any of the FYs from 2017-18 onwards.
Would this requirement be However, the said notification is not applicable to an invoice
applicable on invoices issued issued in following cases:
for supplies made for (i) Where the supplier of taxable service is:
Exports? a) an insurer or a banking company or a financial
institution, including a NBFC;
b) a GTA supplying services in relation to transportation of
goods by road in a goods carriage;
c) supplying passenger transportation service;
d) supplying services by way of admission to exhibition of
cinematograph in films in multiplex screens
(ii) OIDAR supplies made by any RP, who has obtained
registration u/s 14 of the IGST Act, to an URP.
As regards the supplies made for exports, though such supplies

are made by a RP to an URP, however, as e-invoices are
required to be issued in respect of supplies for exports, in terms
of NNo. 13/2020-CT, dated 21.03.20 treating them as B2B
supplies, NNo. 14/2020- CT, dated 21.03.20 will not be
applicable to them.
2 What parameters/ details are Dynamic QR Code, in terms of NNo. 14/2020-CT, dt. 21.03.20
required to be captured in the is required, inter-alia, to contain the following information:
Quick Response (QR) Code? (i) Supplier GSTIN number
(ii) Supplier UPI ID
(iii) Payee’s Bank A/C number and IFSC
(iv) Invoice number & invoice date,
(v) Total Invoice Value and
(vi) GST amount along with breakup i.e., CGST, SGST, IGST,
CESS, etc.
Further, Dynamic QR Code should be such that it can be
scanned to make a digital payment.
3 If a supplier provides/ If the supplier has issued invoice having Dynamic QR Code for
displays Dynamic QR Code, payment, the said invoice shall be deemed to have complied
but the customer opts to with Dynamic QR Code requirements.
make payment without using
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SN Issues Clarification
Dynamic QR Code, then will In cases where the supplier, has digitally displayed the Dynamic
the cross reference of such QR Code & the customer pays for the invoice:
payment, made without use (i) Using any mode like UPI, credit/debit card or online banking
of Dynamic QR Code, on the or cash or combination of various modes of payment, with
invoice, be considered as or without using Dynamic QR Code, and the supplier
compliance of Dynamic QR provides a cross reference of the payment (transaction id
Code on the invoice? along with date, time and amount of payment, mode of
payment like UPI, Credit card, Debit card, online banking
etc.) on the invoice; or
(ii) In cash, without using Dynamic QR Code and the supplier
provides a cross reference of the amount paid in cash, along
with date of such payment on the invoice;
4 If the supplier makes In such cases, if the cross reference of the payment made using
available to customers an such electronic modes of payment is made on the invoice, the
electronic mode of payment invoice shall be deemed to comply with the requirement of
like UPI Collect, UPI Intent or Dynamic QR Code. However, if payment is made after
similar other modes of generation / issuance of invoice, the supplier shall provide
payment, through mobile Dynamic QR Code on the invoice.
applications/computer-
based applications, where
though Dynamic QR Code is
not displayed, but the details
of merchant as well as
transaction are displayed/
captured otherwise, how can
the requirement of Dynamic
QR Code as per this
notification be complied
with?
5 Is generation/ printing of If cross reference of the payment received either through
Dynamic QR Code on B2C electronic mode or through cash or combination thereof is made
invoices mandatory for pre- on the invoice, then the invoice would be deemed to have
paid invoices i.e., where complied with the requirement of Dynamic QR Code.
payment has been made In cases other than pre-paid supply i.e., where payment is
before issuance of the made after generation / issuance of invoice, the supplier shall
invoice? provide Dynamic QR Code on the invoice.
6 Once the E-commerce The provisions of the notification shall apply to each supplier/RP
operator or the online separately, if such person is liable to issue invoices with
application has complied with Dynamic QR Code for B2C supplies as per the said notification.
the Dynamic QR Code In case, the supplier is making supply through the E-commerce
requirements, will the portal or application, and the said supplier gives cross
suppliers using such e- references of the payment received in respect of the said supply
commerce portal or on the invoice, then such invoices would be deemed to have
application for supplies still complied with the requirements of Dynamic QR Code. In cases
be required to comply with other than pre-paid supply i.e., where payment is made after
the requirement of Dynamic generation/issuance of invoice, the supplier shall provide
QR Code? Dynamic QR Code on the invoice.
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Notification Seeks to notify certain class of registered persons required to issue e-invoice. RP +
ATO in any preceeding FY from 17-18 onwards, exceeds 50 crores.
Notifies Registered person, other than a SEZ unit and those referred to in sub-rules (2), (3), (4) and (4A)
of rule 54 of the said rules, whose aggregate turnover in any preceding FY from 2017-18 onwards
exceeds five hundred one hundred10 fifty crore rupees11, as a class of registered person who shall
prepare invoice and other prescribed documents, in terms of rule 48(4) of the said rules in respect of supply
of goods or services or both to a registered person or for exports.
This notification shall come into force from the 1st October, 2020
[Notification No. 13/2020– Central Tax dated 21.03.20 (Effective 01.10.2020)]
Crux:
• RP + whose ATO in any preceeding FY from 17-18 onwards, exceeds 50 crores.
• With respect to: Supply to RP (i.e., B2B supplies) or for exports.
• E-invoicing has been made mandatory.
Following RP exempt from E-invoicing: (Mnemonic - SEZ + BGPM)
• A SEZ unit
• Rule 54(2): Insurance co, Banking co, FI including NBFC
• Rule 54(3): GTA supplying services in relation to transportation of goods by road
• Rule 54(4): Supplier supplying Passenger transportation service.
• Rule 54(4A): Supplier supplying services by way of admission to exhibition of cinematograph films in
Multiplex screens.
10
NN 88/2020: w.e.f. 01.01.21, for the words “500 crore rupees”, the words “100 crore rupees” shall be substituted.
11
with effect from the 01.04.21, for the words “100 crore rupees”, the words “50 crore rupees” shall be substituted.
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E Way Bill
Rule 138: Information to be furnished prior to commencement of movement of goods &

generation of EWB. – 138(10): Validity of EWB reduced i.e., 1 day per 200 Kms for other than
ODC/MMT(s).
(10) Validity of EWB/Consolidated EWB:

SN Cargo type Distance within Validity period
country from relevant
date
1 Other than Over Dimensional Cargo or multimodal Upto 200 km12 One day
shipment in which at least one leg involves transport by
ship
2 Other than Over Dimensional Cargo or multimodal For every 200 One additional
shipment in which at least one leg involves transport by km or part day
ship thereof
3 Over Dimensional Cargo or multimodal shipment in which Upto 20 km One day
at least one leg involves transport by ship
4 Over Dimensional Cargo or multimodal shipment in which For every 20 km One additional
at least one leg involves transport by ship or part thereof day
Crux: In cases other than Over Dimensional Cargo and Multi Modal shipment involving ship, the
validity of EWB was 1 day per 100 kms, now validity of EWB reduced to 1 day per 200 kms.
Rule 138E: Restriction on furnishing of information in PART A of FORM GST EWB-01 – Additional
situation introduced for blocking Generation of EWB i.e., during suspension of registration.
Notwithstanding anything contained in sub-rule (1) of rule 138, no person (including a consignor,
consignee, transporter, an e-commerce operator or a courier agency) shall be allowed to furnish the
information in PART A of FORM GST EWB-01 in respect of a registered person, whether as a supplier or
a recipient, who, —
(a) being a person paying tax u/s 10, or availing the benefit of notification No. 2/2019- Central
Tax (Rate), dated the 7th March, 2019 has not furnished the statement in FORM GST CMP-08 for two
consecutive quarters; or
(b) being a person other than a person specified in clause (a), has not furnished the returns for a
consecutive period of two months tax periods13:
(c) being a person other than a person specified in clause (a), has not furnished the statement
of outward supplies for any two months or quarters, as the case may be.
(d) being a person, whose registration has been suspended under the provisions of sub-rule (1)
or sub-rule (2) or sub-rule (2A) of rule 21A.
Crux: Provisions relating to blocking of EWB during suspension of registration introduced.
12
Substituted for "100 km." by the CGST (Fourteenth Amendment) Rules, 2020, w.e.f. 1-1-2021.
13
Amendments by the CGST (Fourteenth Amendment) Rules, 2020, w.e.f. 22-12-2020.
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Input Tax Credit
Section 16(2): Conditions for claiming ITC
Notwithstanding anything contained in this section, no registered person shall be entitled to the credit
of any input tax in respect of any supply of goods or services or both to him unless, —
(a) he is in possession of a tax invoice/debit note/such other tax paying documents as
prescribed (Rule 36);
Rule 36: Documentary requirements and conditions for claiming ITC. Rule 36(4) amended, 10%
reduced to 5%.
(1) Eligible documents to claim ITC by RP including ISD

(2) ITC available only if document complete in all respect
(3) No ITC shall be availed by a RP in respect of any tax that has been paid in pursuance of any order where
any demand has been confirmed on account of any fraud, willful misstatement or suppression of facts.
(4) ITC to be availed by a RP in respect of invoices/debit notes, the details of which have not
been uploaded furnished by the suppliers’ u/s 37(1), in FORM GSTR-1 or using the invoice
furnishing facility (IFF) shall not exceed 10% 5% of the eligible credit available in respect of
invoices or debit notes the details of which have been uploaded furnished14 by the suppliers’
u/s 37(1) in FORM GSTR-1 or using the invoice furnishing facility.
Crux: Restriction for availing credit w.r.t. unfurnished invoices/Dr notes has now been reduced
from 10% to 5%.
Section 16(4): Maximum time limit to claim ITC relating to Invoice or debit note
A RP shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods
or services or both after the due date of furnishing of the return u/s 39 for the month of September following
the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing
of the relevant annual return, whichever is earlier:
Crux:
Prior to amendment time limit to avail credit w.r.t. debit note as linked to the year of issuance
of tax invoice relating to such debit note,
Post amendment time limit to avail credit w.r.t. debit note is delinked with invoice and hence,
credit w.r.t. debit note can be availed based on year of issuance of debit note.
Example:
SL Tax Invoice Debit note Maximum Time limit to avail ITC
No. issuance date issuance
date
1 01.10.2020 01.01.2021 With respect to Invoice
20.10.2021 (i.e., DD of monthly return of September of
Next financial year)
With respect to Debit note
2 01.10.2020 01.06.2021 With respect to Invoice
With respect to Debit note
14
Inserted by the CGST (Fourteenth Amendment) Rules, 2020, w.e.f. 1-1-2021.
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Payment of Tax
New Rule 86B: Restrictions on use of amount available in electronic credit ledger – 99%
Notwithstanding anything contained in these rules, the RP shall not use the amount available in
electronic credit ledger to discharge his liability towards output tax in excess of ninety-nine per
cent. of such tax liability, in cases where the value of taxable supply other than exempt supply
and zero-rated supply, in a month exceeds fifty lakh rupees:
Provided that the said restriction shall not apply where -

a. the said person or the proprietor or karta or the managing director or 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 one lakh rupees as income tax under the
Income-tax Act, 1961 in each of the last two financial years for which the time limit to file
return of income under subsection (1) of section 139 of the said Act has expired; or
b. the registered person has received a refund amount of more than one lakh rupees in the
preceding financial year on account of unutilised input tax credit under clause (i) of first
proviso of subsection (3) of section 54; or
c. the registered person has received a refund amount of more than one lakh rupees in the
preceding financial year on account of unutilised input tax credit under clause (ii) of first
proviso of subsection (3) of section 54; or
d. the registered person has discharged his liability towards output tax through the electronic
cash ledger for an amount which is in excess of 1% of the total output tax liability, applied
cumulatively, upto the said month in the current financial year; or
e. the registered person is -
(i) Government Department; or
(ii) a Public Sector Undertaking; or
(iii) a local authority; or
(iv) a statutory body:
Provided further that the Commissioner/an officer authorised by him in this behalf may remove
the said restriction after such verifications and such safeguards as he may deem fit15.
Crux:
New Rule 86B has been inserted to restrict the amount available in e-credit ledger which a
registered person can use to discharge his output tax liability to 99% of such tax liability.
Example: (ICAI study material)

The total value of inter-State supply of Raman & Sons for the month of February 2021 is of Rs. 100 lakhs.
Said supply is taxable @ 18% IGST. Thus, total output tax liability of Raman & Sons is Rs. 18 lakhs. Amount
available in electronic credit ledger is Rs. 20 lakhs (IGST).
In terms of restriction imposed by rule 86B, Raman & Sons can discharge 99% of its output tax liability,
i.e., Rs.17,82,000 (99% of Rs. 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 Rs.
18,00,000) through electronic cash ledger only.
15
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Returns
Section 37: Furnishing details of outward supplies
(1) Details of outward supplies to be furnished by the 10th of NM in FORM GSTR-1

Every registered person, other than—
• an ISD, a NRTP, and
• a person paying tax under the provisions of Section 10 or Section 51 or Section 52,
shall furnish, electronically,
• in such form (GSTR-1) and manner (rule 59) as may be prescribed,
the details of outward supplies of goods or services or both

• effected during a tax period
• on or before the 10th day of the month succeeding the said tax period,
• and such details shall be communicated to the recipient of the said supplies
• within such time and in such manner as may be prescribed.
Proviso:
1. the registered person shall not be allowed to furnish the details of outward supplies during the
period from the 11th to the 15th day of the month succeeding the tax period
2. the Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit
for furnishing such details for such class of taxable persons as may be specified therein:
3. any extension of time limit notified by the Commissioner of State tax or Commissioner of Union
territory tax shall be deemed to be notified by the Commissioner.
Notification No. 83/2020 – Central Tax dated 10.11.20 – Seeks to extend the due date for
Monthly GSTR-1 till the eleventh day of the month succeeding such tax period.
The Commissioner, on the recommendations of the Council, hereby extends the time limit for
furnishing the details of outward supplies in FORM GSTR-1 of the CGST Rules, 2017, for each of
the tax periods, till the eleventh day of the month succeeding such tax period:
Provided that
- the time limit for furnishing the details of outward supplies in FORM GSTR-1 of the said rules
for the class of RPs required to furnish return for every quarter under proviso to sub-section
(1) of section 39 of the said Act,
- shall be extended till the thirteenth day of the month succeeding such tax period.
This notification shall come into force with effect from the 1st day of January, 2021.
16
Rule 59: Form and manner of furnishing details of outward supplies - substituted with a new
rule
(1) Every RP except OIDAR, to furnish details of outward supplies in GSTR 1

Every registered person, other than a person referred to in section 14 of the IGST Act, 2017, required
to furnish the details of outward supplies of goods or services or both under section 37, shall furnish
such details in FORM GSTR-1 for the month or the quarter, as the case may be, electronically
through the common portal, either directly or through a Facilitation Centre notified by the
Commissioner.
(2) The RPs required to furnish return for every quarter under proviso to sub-section (1) of
section 39 may furnish the details of such outward supplies of goods/services/both to a
16
Substituted by the Central Goods and Services Tax (Thirteenth Amendment) Rules, 2020, w.e.f. 1-1-2021.
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registered person, as he may consider necessary, for the first and second months of a
quarter, up to a cumulative value of fifty lakh rupees in each of the months, - using invoice
furnishing facility (hereafter in this notification referred to as the "IFF") electronically on
the common portal, duly authenticated in the manner prescribed under rule 26, from the 1st
day of the month succeeding such month till the 13th day of the said month.
(3) The details of outward supplies furnished using the IFF, for the first and second months of
a quarter, shall not be furnished in FORM GSTR-1 for the said quarter.
(4) Details to be furnished in GSTR 1

The details of outward supplies of goods or services or both furnished in FORM GSTR-1 shall include
the—
(a) invoice wise details of all—
(i) inter-State and intra-State supplies made to the registered persons; and
(ii) inter-State supplies with invoice value more than two and a half lakh rupees made to the
unregistered persons;
(b) consolidated details of all—
(i) intra-State supplies made to unregistered persons for each rate of tax; and
(ii) State-wise inter-State supplies with invoice value upto two and a half lakh rupees made to
unregistered persons for each rate of tax;
(c) debit and credit notes, if any, issued during the month for invoices issued previously.
(5) The details of outward supplies of goods or services or both furnished using the IFF shall
include the—
(a) invoice wise details of inter-State and intra-State supplies made to the registered
persons;
(b) debit and credit notes, if any, issued during the month for such invoices issued
previously.
(3) The details of outward supplies furnished by the supplier shall be made available electronically to the
concerned registered persons (recipients) in Part A of FORM GSTR-2A, in FORM GSTR-4A and in FORM
GSTR-6A through the common portal after the due date of filing of FORM GSTR-1.
(4) The details of inward supplies added, corrected or deleted by the recipient in his FORM GSTR-2 under
section 38 or FORM GSTR-4 or FORM GSTR-6 under section 39 shall be made available to the supplier
electronically in FORM GSTR-1A through the common portal and such supplier may either accept or
reject the modifications made by the recipient and FORM GSTR-1 furnished earlier by the supplier shall
stand amended to the extent of modifications accepted by him.
(6) Notwithstanding anything contained in this rule, —

(a) a registered person shall not be allowed to furnish the details of outward supplies of
goods or services or both under section 37 in FORM GSTR-1, if he has not furnished the
return in FORM GSTR-3B for preceding two months;
(b) a RP, required to furnish return for every quarter under the proviso to sub-section (1)
of section 39, shall not be allowed to furnish the details of outward supplies of
goods/services/both u/s 37 in FORM GSTR-1 or using the invoice furnishing facility, if
he has not furnished the return in FORM GSTR-3B for preceding tax period;
(c) a RP, who is restricted from using the amount available in electronic credit ledger to
discharge his liability towards tax in excess of 99% of such tax liability under rule 86B,
shall not be allowed to furnish the details of outward supplies of goods/ services/both
u/s 37 in FORM GSTR-1 or using the invoice furnishing facility, if he has not furnished
the return in FORM GSTR-3B for preceding tax period.
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Section 38: Furnishing details of inward supplies
17
Rule 60: Furnishing details of inward supplies - substituted with a new rule
(1) Details of OS furnished in GSTR 1/IFF shall be made available to supplier in Part A of GSTR
2A/4A/6A
The details of outward supplies furnished by the supplier in FORM GSTR-1 or using the IFF shall be
made available electronically to the concerned RPs (recipients) in Part A of FORM GSTR-2A, in GSTR-
4A and in GSTR-6A through the common portal, as the case may be.
(2) Details of invoices furnished by NRTP in GSTR 5 shall be made available to recipient in Part
A of GSTR 2A
The details of invoices furnished by a non-resident taxable person in his return in FORM GSTR-5 under
rule 63 shall be made available to the recipient of credit in Part A of FORM GSTR 2A electronically
through the common portal.
(3) Details of invoices furnished by NRTP in GSTR 6 shall be made available to recipient in Part
B of GSTR 2A
The details of invoices furnished by an Input Service Distributor in his return in FORM GSTR-6 under
rule 65 shall be made available to the recipient of credit in Part B of FORM GSTR 2A electronically
(4) Details of TDS furnished by NRTP in GSTR 7 shall be made available to deductee in Part C of
GSTR 2A
The details of tax deducted at source furnished by the deductor under sub-section (3) of section 39 in
FORM GSTR-7 shall be made available to the deductee in Part C of FORM GSTR-2A electronically through
the common portal
(5) Details of TCS furnished by ECO in GSTR 8 shall be made available to concerned person in
Part C of GSTR 2A
The details of tax collected at source furnished by an e-commerce operator under section 52 in FORM
GSTR-8 shall be made available to the concerned person in Part C of FORM GSTR 2A electronically
(6) Details of IGST paid on the import of goods/goods brought in DTA from SEZ unit/ developer
on a BOE shall be made available in Part D of FORM GSTR-2A
The details of the integrated tax paid on the import of goods or goods brought in domestic Tariff Area
from SEZ unit or a SEZ developer on a bill of entry shall be made available in Part D of FORM GSTR-2A
electronically through the common portal.
(7) An auto drafted statement containing the details of ITC shall be made available to RP in GSTR
2B for every month
An auto-drafted statement containing the details of ITC shall be made available to the RP in FORM
GSTR-2B, for every month, electronically through the common portal, and shall consist of:
(i) the details of outward supplies furnished by his supplier, other than a supplier required to
furnish return for every quarter under proviso to sub-section (1) of section 39, in FORM GSTR-1,
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 invoices furnished by a NRTP in GSTR5 and details of invoices furnished by an ISD
in his return in GSTR-6 and details of outward supplies furnished by his supplier, required to furnish
return for every quarter under proviso to sub-section (1) of section 39, in FORM GSTR-1 or using
the IFF, as the case may be, -
17
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(a) for the first 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 first month of the quarter;
(b) for the second month of the quarter, between the day immediately after the due date of
furnishing details using the IFF for the first month of the quarter to the due date of furnishing
details using the IFF for the second month of the quarter;
(c) for the third month of the quarter, between the day immediately after the due date of
furnishing of details using the IFF for the second 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 domestic
Tariff Area from SEZ unit or a SEZ developer on a bill of entry in the month.
(8) The Statement in FORM GSTR-2B for every month shall be made available to the RP, -
(i) for the first and second 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 RP required to furnish return
for every quarter under proviso to sub-section (1) of section 39, or in FORM GSTR-1 by a RP, other
than those required to furnish return for every quarter under proviso to sub-section (1) of section
39, whichever is later;
(ii) in the third 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 required to
furnish return for every quarter under proviso to sub-section (1) of section 39.
Section 39: Furnishing of returns
18
Section 39(1): Every RP to file return monthly by 20th of the month succeeding such calendar
month or part thereof.
Every registered person, other than

• an ISD or a NRTP or
• a person paying tax under the provisions of section 10 or
• section 51 or section 52
shall for every calendar month or part thereof, furnish, in such form and manner as may be prescribed, a
return, electronically, of inward and outward supplies of goods or services or both, ITC availed, tax payable,
tax paid and such other particulars in such form and manner, and within such time, as may be
prescribed as may be prescribed on or before the twentieth day of the month succeeding such calendar
month or part thereof.
Provided that the Govt may, on the recommendations of the Council, notify certain classes of RPs who
shall furnish return for every quarter or part thereof, subject to such conditions and safeguards as
may be specified therein.
19
Rule 61: Form and manner of submission of monthly return - substituted with a new rule
(1) Every RP other than a person referred to in section 14 of the IGST act, 2017 or an ISD or a non-
resident taxable person or a person paying tax u/s 10 or section 51 or, as the case may be, u/s 52
shall furnish a return in FORM GSTR-3B specified u/s 39(1) in GSTR-3 electronically through the
common portal either directly or through a Facilitation Centre notified by the Commissioner, as
specified under
(i) sub-section (1) of section 39, for each month, or part thereof, on or before the twentieth day of
the month succeeding such month:
(ii) proviso to sub-section (1) of section 39, for each quarter, or part thereof, for the class of RPs
mentioned in column (2) of the Table given below, on or before the date mentioned in the
18
Substituted by the Finance (No. 2) Act, 2019, w.e.f. 10-11-2020.
19
CA Ramesh Soni | +91 93536 19482 23
corresponding entry in column (3) of the said Table, namely: –
Sl No. Class of registered persons Due Date

(1) (2) (3)
1. Registered persons whose principal place of business is in the Twenty-
States of Chhattisgarh, Madhya Pradesh, Gujarat, second day of
Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, the month
Andhra Pradesh, the Union territories of Daman and Diu and succeeding
Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar such quarter.
Islands or Lakshadweep.
2. Registered persons whose principal place of business is in the Twenty-fourth
States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, day of the
Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, month
Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, succeeding
West Bengal, Jharkhand or Odisha, the Union territories of such quarter.
Jammu and Kashmir, Ladakh, Chandigarh or Delhi.
(2) Part A of the return under sub-rule (1) shall be electronically generated on the basis of information
furnished through FORM GSTR-1, FORM GSTR-2 and based on other liabilities of preceding tax periods.
(2) Every RP required to furnish return, under sub-rule (1) shall, subject to the provisions of
section 49, discharge his liability towards tax, interest, penalty, fees or any other amount
payable under the Act or the provisions of this Chapter by debiting the electronic cash ledger
or electronic credit ledger and include the details in the return in FORM GSTR-3B.
(3) Every registered person furnishing the return under sub-rule (1) shall, subject to the provisions of
section 49, discharge his liability towards tax, interest, penalty, fees or any other amount payable
under the Act or the provisions of this Chapter by debiting the electronic cash ledger or electronic credit
ledger and include the details in Part B of the return in FORM GSTR-3.
(3) Every registered person required to furnish return, every quarter, under clause (ii) of sub-
rule (1) shall pay the tax due under proviso to sub-section (7) of section 39, for each of the
first two months of the quarter, by depositing the said amount in FORM GST PMT-06, by the
twenty fifth day of the month succeeding such month:
Provided that the Commissioner may, on the recommendations of the Council, by

notification, 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:
Provided further that any extension of time limit notified by the Commissioner of State tax
or Union territory tax shall be deemed to be notified by the Commissioner:
Provided also that while making a deposit in FORM GST PMT-06, such a registered person
may—
(a) for the first month of the quarter, take into account the balance in the electronic cash
ledger.
(b) for the second month of the quarter, take into account the balance in the electronic
cash ledger excluding the tax due for the first month.
(4) A registered person, claiming refund of any balance in the electronic cash ledger in accordance with
the provisions of sub-section (6) of section 49, may claim such refund in Part B of the return in FORM
GSTR-3 and such return shall be deemed to be an application filed u/s 54.
(4) The amount deposited by the registered persons under sub-rule (3) above, shall be debited
while filing the return for the said quarter in FORM GSTR-3B, and any claim of refund of such
CA Ramesh Soni | +91 93536 19482 24
amount lying in balance in the electronic cash ledger, if any, out of the amount so deposited
shall be permitted only after the return in FORM GSTR-3B for the said quarter has been filed.
(5) Where the time limit for furnishing of details in FORM GSTR-1 under section 37 or in FORM GSTR-2
under section 38 has been extended, the return specified in sub-section (1) of section 39 shall, in such
manner and subject to such conditions as the Commissioner may, by notification, specify, be furnished
in FORM GSTR-3B electronically through the common portal, either directly or through a Facilitation
Centre notified by the Commissioner:
Provided that where a return in FORM GSTR-3B is required to be furnished by a person referred to in
sub-rule (1) then such person shall not be required to furnish the return in FORM GSTR-3.
(6) Every RP other than a person referred to in section 14 of the IGST Act, 2017 or an ISD or a NRTP or a
person paying tax under section 10 or section 51 or, as the case may be, under section 52 shall furnish
a return in FORM GSTR-3B, electronically through the common portal either directly or through a
Facilitation Centre notified by the Commissioner, on or before the twentieth day of the month
succeeding such tax period:
Provided that for taxpayers having an aggregate turnover of up to 5 crore rupees in the PFY, whose
PPOB is in the States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala,
Tamil Nadu, Telangana, Andhra Pradesh, the Union territories of Daman and Diu and Dadra and Nagar
Haveli, Puducherry, Andaman and Nicobar Islands or Lakshadweep, the return in FORM GSTR-3B of
the said rules for the months of October, 2020 to March, 2021 shall be furnished electronically through
the common portal, on or before the 22nd day of the month succeeding such month:
Provided further that for taxpayers having an aggregate turnover of up to Rs. 5 cr in the PFY, whose
PPOB 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, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh or
Delhi, the return in FORM GSTR-3B of the said rules for the months of October, 2020 to March, 2021
shall be furnished electronically through the common portal, on or before the 24th day of the month
succeeding such month
20
Rule 61A: Manner of opting for furnishing quarterly return – New rule introduced
(1) Every registered person intending to furnish return on a quarterly basis under proviso to
sub-section (1) of section 39, shall in accordance with the conditions and restrictions
notified in this regard, indicate his preference for furnishing of return on a quarterly basis,
electronically, on the common portal, from the 1st day of the second month of the
preceding quarter till the last day of the first month of the quarter for which the option is
being exercised:
Provided that where such option has been exercised once, the said registered person shall
continue to furnish the return on a quarterly basis for future tax periods, unless the said
registered person, -
(a) becomes ineligible for furnishing the return on a quarterly basis as per the conditions
and restrictions notified in this regard; or
(b) opts for furnishing of return on a monthly basis, electronically, on the common portal:
Provided further that a registered person shall not be eligible to opt for furnishing
quarterly return in case the last return due on the date of exercising such option has
not been furnished.
(2) A registered person, whose aggregate turnover exceeds 5 crore rupees during the current
financial year, shall opt for furnishing of return on a monthly basis, electronically, on the
20
Inserted by the Central Goods and Services Tax (Thirteenth Amendment) Rules, 2020, w.e.f. 10-11-2020.
CA Ramesh Soni | +91 93536 19482 25
common portal, from the first month of the quarter, succeeding the quarter during which
his aggregate turnover exceeds 5 crore rupees.
Notification No. 84/2020 – Central Tax dated 10.11.2020 - Seeks to notify class of persons under
proviso to section 39(1).
The registered persons, other than a person referred to in section 14 of the IGST act, having an
aggregate turnover of up to five crore rupees in the preceding financial year, and who have
opted to furnish a return for every quarter, under sub-rule (1) of rule 61A of the CGST Rules,
2017 as the class of persons who shall, subject to the following conditions and restrictions,
- furnish a return for every quarter from January, 2021 onwards,
- and pay the tax due every month in accordance with the proviso to section 39(7) of the said
Act, namely: —
(i) the return for the preceding month, as due on the date of exercising such option, has been
furnished:
(ii) where such 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 same.
A registered person whose aggregate turnover crosses five crore rupees during a quarter in a
financial year shall not be eligible for furnishing of return on quarterly basis from
the first month of the succeeding quarter.
For RP who have furnished the return for the tax period October, 2020 on or before 30th
November, 2020, it shall be deemed that they have opted under sub-rule (1) of rule 61A of the
said rules for the monthly or quarterly furnishing of return as mentioned in column (3) of the
said Table: -
Sl No. Class of registered person Deemed Option
1 Registered persons having aggregate turnover of up to 1.5 Quarterly return
crore rupees, who have furnished FORM GSTR1 on quarterly
basis in the current financial year
2 Registered persons having aggregate turnover of up to 1.5 Monthly return
crore rupees, who have furnished FORM GSTR1 on monthly
basis in the current financial year
3 Registered persons having aggregate turnover more than 1.5 Quarterly return
crore rupees and up to 5 crore rupees in the preceding
financial year
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21
Section 39(2) r/w rule 62: Composition dealer
Section 39(2): Composition dealer

A registered person paying tax under the provisions of section 10 shall, for each quarter financial year or
part thereof, furnish in such form and manner as may be prescribed, a return, electronically, of turnover in
the State or Union territory, inward supplies of goods or services or both, tax payable and tax paid within
eighteen days after the end of such quarter and such other particulars in such form and manner, and
within such time, as may be prescribed22.
Rule 62: Form and manner of submission of statement and return
(1) RP under Compo, furnish quarterly payment statement in GST CMP-08 till 18th day of the
month succeeding quarter
Every RP paying tax under section 10/paying tax by availing the benefit of notification no. 02/201923
shall,
(i) furnish a statement, every quarter or, as the case may be, part thereof, containing the details of
payment of self-assessed tax in FORM GST CMP-08, till the 18th day of the month succeeding such
quarter; and
(ii) furnish a return for every FY or, as the case may be, part thereof in FORM GSTR-4, till the thirtieth
day of April following the end of such financial year,
electronically through the common portal, either directly or through a Facilitation Centre notified by the
Commissioner:
(2) Discharge of liability through E-cash ledger
(3) Details to be furnished
(4) A RP who has opted to pay tax u/s 10 or by availing the benefit of notification No. 2/2019, from the
beginning of a FY shall, where required, furnish the details of outward and inward supplies and return
under rules 59, 60 and 61 relating to the period during which the person was liable to furnish such
details and returns till the due date of furnishing the return for the month of September of the
succeeding financial year or furnishing of annual return of the preceding financial year, whichever is
earlier.
Explanation. — For the purposes of this sub-rule, it is hereby declared that the person shall not be
eligible to avail ITC on receipt of invoices or debit notes from the supplier for the period prior to his
opting for the composition scheme or opting for paying tax by availing the benefit of notification of the
Government of India, Ministry of Finance, Department of Revenue No. 2/2019- Central Tax (Rate),
dated the 7th March, 2019.
Section 39(7) Tax shall be paid on/before the last date of filing return
Every RP, who is required to furnish a return under sub-section (1), other than the person referred to
in the proviso thereto, or sub-section (2) or sub-section (3) or sub-section (5), shall pay to the
Government the tax due as per such return not later than the last date on which he is required to furnish
such return:
Provided that every RP furnishing return under the proviso to sub-section (1) shall pay to the
Government, the tax due taking into account inward and outward supplies of goods or services
or both, ITC availed, tax payable and such other particulars during a month, in such form and
manner, and within such time, as may be prescribed:
21
22
23
omitted by the Central Goods and Services Tax (Thirteenth Amendment) Rules, 2020, w.e.f. 10-11-2020.
CA Ramesh Soni | +91 93536 19482 27
Provided further that every RP furnishing return under sub-section (2) shall pay to the
Government the tax due taking into account turnover in the State or UT, inward supplies of
goods or services or both, tax payable, and such other particulars during a quarter, in such form
and manner, and within such time, as may be prescribed 24.
Proviso: the Govt may, on the recommendations of the Council, notify certain classes of RPs who shall pay
to the Govt the tax due/part thereof as per the return on/before the last date on which he is required to
furnish such return, subject to such conditions and safeguards as may be specified therein.
Notification No. 85/2020 – Central Tax dated 10.11.20 – Seeks to notify special procedure for
making payment of 35% as tax liability in first two month
In exercise of the powers conferred by section 148 r/w section 39(7) of the CGST Act, 2017, the
CG, on the recommendations of the Council, hereby notifies
- the RPs, notified under proviso to section 39(1) of the said Act,
- who have opted to furnish a return for every quarter or part thereof,
- as the class of persons who may, in first month or second month or both months of the
quarter,
- follow the special procedure such that the said persons may pay the tax due under proviso
to sub-section (7) of section 39 of the said Act, by way of making a deposit of an amount in
the electronic cash ledger equivalent to,
(i) 35% of the tax liability paid by debiting the electronic cash ledger in the return for the
preceding quarter where the return is furnished quarterly; or
(ii) the tax liability paid by debiting the electronic cash ledger in the return for the last month
of the immediately preceding quarter where the return is furnished monthly:
Provided that no such amount may be required to be deposited

(a) for the first month of the quarter, where the balance in the e cash ledger or e credit ledger
is adequate for the tax liability for the said month or where there is nil tax liability;
(b) for the second month of the quarter, where the balance in the electronic cash ledger or
electronic credit ledger is adequate for the cumulative tax liability for the first and the
second month of the quarter or where there is nil tax liability:
Provided further that registered person shall not be eligible for the said special procedure unless
he has furnished the return for a complete tax period preceding such month.
Explanation- For the purpose of this notification, the expression “a complete tax period” means
a tax period in which the person is registered from the first day of the tax period till the last day
of the tax period.
This notification shall come into force with effect from the 1st day of January, 2021.
24
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CA Ramesh Soni | +91 93536 19482 31


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Applicable for CA/CS/CMA - Nov/Dec 2021 CHARTMASTER’s IDT - Statutory updates

Section 10(2): Person ineligible to opt for composition .......................................................................................4

E Way Bill ......................................................................................................................... 17

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Section 10(2): Person ineligible to opt for composition1

Notification no 3/2021 CT dt. 23.02.21 issued in suspension of NNo. 17/2020

Notification no. 17/2020 – Central Tax dated 23.03.20 (Effective 01.04.20)

Crux: Post amendment: Following persons are not required AA:

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Rule 9 - Verification of the application and approval.

(1) The Application shall be forwarded to PO - PO to examine application & accompanying

Provided that where-

(5) If the proper officer fails to take any action, -

(5)If the proper officer fails to take any action,

In a case where Application is not in order but

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Section 29: Cancellation or Suspension of registration – amended to allow voluntary registered

Section 29(1): The PO may, either

Rule 21-Registration to be cancelled in certain cases – Amended to include additional situations

The registration granted to a person is liable to be cancelled, if the said person, -

Crux: Post amendment PO may cancel registration in following additional contraventions:

Rule 21A: Suspension of registration - Amended

Rule-22: Cancellation of registration – PO has reason to believe that registration is liable to be

Crux: Consequential amendment due to rule 21(2A).

Tax Invoice, Credit and Debit Notes

Section 31(2): Tax Invoice in case of services

A registered person supplying taxable services shall,

HSN code – new notification issued.

ATO in PFY No of digits of HSN code

NA to RP: (Mnemonic - BGPMO)

As regards the supplies made for exports, though such supplies

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Rule 138: Information to be furnished prior to commencement of movement of goods &

(10) Validity of EWB/Consolidated EWB:

Crux: Provisions relating to blocking of EWB during suspension of registration introduced.

Input Tax Credit

Section 16(2): Conditions for claiming ITC

(1) Eligible documents to claim ITC by RP including ISD

Provided that the said restriction shall not apply where -

Example: (ICAI study material)

Section 37: Furnishing details of outward supplies

(1) Details of outward supplies to be furnished by the 10th of NM in FORM GSTR-1

the details of outward supplies of goods or services or both

(1) Every RP except OIDAR, to furnish details of outward supplies in GSTR 1

(4) Details to be furnished in GSTR 1

(6) Notwithstanding anything contained in this rule, —

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Section 38: Furnishing details of inward supplies

Section 39: Furnishing of returns

Every registered person, other than

Sl No. Class of registered persons Due Date

Provided that the Commissioner may, on the recommendations of the Council, by

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Section 39(2): Composition dealer

Rule 62: Form and manner of submission of statement and return

(2) Discharge of liability through E-cash ledger

(3) Details to be furnished

Provided that no such amount may be required to be deposited

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