INDIRECT TAX AMENDMENTS – MAY / JUNE 2021 EXAMS
INDIRECT TAX
AMENDMENTS
APPLICABLE FOR CA / CS / CMA INTER
MAY / JUNE 2021 EXAMS
This Amendment booklet contains summarized content of
relevant notifications and circulars issued between
1st May 2020 to 30th Nov 2020
CA NIKUNJ GOENKA
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INDIRECT TAX AMENDMENTS – MAY / JUNE 2021 EXAMS
Amendments made vide Finance Act 2020
Definition of Union territory
Addition of Two Union Territories in the Definition of Union Territories
(c) Dadra and Nagar Haveli and Daman and Diu;
(d) Ladakh
Restriction on Composition Scheme [Section 10(2)]
A person is not eligible to opt for composition scheme, inter alia
(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 electronic
commerce operator who is required to collect tax at source under section 52; and
Time limit to claim ITC pertaining to debit notes [Section 16(4)]
A registered person 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 under section 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.
Note: The effect of the amendment is that date of debit note, and date of underlying
invoice have been delinked. Thus, debit note in respect of an invoice can be raised even
after 30th September following end of financial year to which the invoice pertains.
It means the recipient can avail ITC of GST paid through debit note, even if the supply
pertains to previous financial years.
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INDIRECT TAX AMENDMENTS – MAY / JUNE 2021 EXAMS
Cancellation of Registration [Section 29(1)]
The proper officer may, either on his own motion or on an application filed by the
registered person or by his legal heirs, in case of death of such person, 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
of the proprietor, amalgamated with other legal entity, demerged 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 under sub-section (3) of
section 25, is no longer liable to be registered under section 22 or section 24.
the taxable person is no longer liable to be registered u/s 22 or section 24 or
intends to optout of the registration voluntarily made u/s 25(3)
Note: It is now implied that Voluntary registration can be cancelled by proper officer on
own or on application by registered person or his legal heir.
Extension of period for application of revocation of cancellation of
registration [Section 30(1)]
Subject to such conditions as may be prescribed, any registered person, whose
registration is cancelled by the proper officer on his own motion, may apply to such
officer for revocation of cancellation of the registration in the prescribed manner within
30 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 30 days;
(b) by the Commissioner, for a further period not exceeding 30 days, beyond
the period specified in clause (a).”
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INDIRECT TAX AMENDMENTS – MAY / JUNE 2021 EXAMS
Tax Invoice [Section 31(1)]
The Government 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—

any other document issued in relation to the supply shall be deemed to be a
tax invoice; or

tax invoice may not be issued
Note: Thus, the Central Government can now even prescribe a different time limit for
issuance of tax invoices for such categories of services as may be notified.
TDS Certificate [Section 51(3)]
The deductor shall furnish to the deductee a certificate mentioning therein the contract
value, rate of deduction, amount deducted, amount paid to the Government and such
other particulars in such manner as may be prescribed.
“(3) A certificate of tax deduction at source shall be issued in such form and in such
manner as may be prescribed
Note: It means the deductee can take credit of tax deducted on the basis of details of
tax deducted and uploaded by the deductor u/s 39(3).
The details are available in the GSTR-7 return filed by the deductor will be auto
populated in GSTR-2A of deductee. Hence, any further certificate is not required.
Late fee on furnishing TDS certificate is deleted
If any deductor fails to furnish to the deductee the certificate, after deducting the tax
at source, within 5 days of crediting the amount so deducted to the Government, the
deductor shall pay, by way of a late fee, a sum of ₹ 100 per day from the day after
the expiry of such 5 days period until the failure is rectified, subject to a maximum
amount of ₹ 5,000.
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INDIRECT TAX AMENDMENTS – MAY / JUNE 2021 EXAMS
Removal of difficulties [Section 172]
If any difficulty arises in giving effect to any provisions of this Act, the Government
may, on the recommendations of the Council, by a general or a special order published
in the Official Gazette, make such provisions not inconsistent with the provisions of
this Act or the rules or regulations made thereunder, as may be necessary or expedient
for the purpose of removing the said difficulty:
Provided that no such order shall be made after the expiry of a period of 5 years from
the date of commencement of this Act.
Similar amendments has been made in IGST Act, 2017, UTGST Act, 2017 and GST
(Compensation to States) Act, 2017
Activities to be treated as supply of goods / supply of services [Schedule II]
Transfer of business assets shall be treated as supply of goods
a) where goods forming part of the assets of a business are transferred or disposed of
by or under the directions of the person carrying on the business so as no longer to
form part of those assets, whether or not for a consideration, such transfer or
disposal is a supply of goods by the person;
b) where, by or under the direction of a person carrying on a business, goods held or
used for the purposes of the business are put to any private use or are used, or
made available to any person for use, for any purpose other than a purpose of the
business, whether or not for a consideration, the usage or making available of
such goods is a supply of services;
c) where any person ceases to be a taxable person, any goods forming part of the
assets of any business carried on by him shall be deemed to be supplied by him in
the course or furtherance of his business immediately before he ceases to be a
taxable person, unless—
(i) the business is transferred as a going concern to another person; or
(ii) the business is carried on by a personal representative who is deemed to be a
taxable person.
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INDIRECT TAX AMENDMENTS – MAY / JUNE 2021 EXAMS
Notifications and Circulars brought issued between
1st April 2020 to 30th November 2020
Power to notify HSN digits by CBIC [N/N 79 /2020 – CT dated 15/10/2020]
The CBIC may, on the recommendations of the Council, by notification, specify(i)
the number of digits of HSN code for goods or services that a class of registered
persons shall be required to mention; or
(ii) a class of supply of goods or services for which specified number of digits of HSN
code shall be required to be mentioned by all registered taxpayers; and
(iii) the class of registered persons that would not be required to mention the HSN
code for goods or services:
How many HSN digits to be mentioned on a Tax Invoice [N/N 78/2020 – CT
dated 15/10/2020] applicable from 1st April 2021
Aggregate
Turnover
in
preceding Financial Year
the Number
of
Digits
of
(HSN Code)
Upto ₹ 5 crores
4
More than ₹ 5 crores
6
A registered person having aggregate turnover up to ₹ 5 crores in the previous financial
year may not mention the number of digits of HSN Code in a tax invoice issued by
him in respect of supplies made to unregistered persons.
Manner of furnishing of return or details of outward supplies by SMS facility
[Rule 67A] [N/N 79 /2020 – CT dated 15/10/2020]
A registered person who is required to furnish a Nil return u/s 39 in FORM GSTR-3B or
Nil details of outward supplies u/s 37 in FORM GSTR-1 or a Nil Statement in FORM
CMP-08 for a tax period, any reference to electronic furnishing shall include furnishing
of the said return or the details of outward supplies through a short messaging service
using the registered mobile number and the said return or the details of outward
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INDIRECT TAX AMENDMENTS – MAY / JUNE 2021 EXAMS
supplies or statement shall be verified by a registered mobile number based One Time
Password facility.
Explanation: A Nil return or Nil details of outward supplies or Nil statement shall mean
a return u/s 39 or details of outward supplies u/s 37 or statement u/r 62, for a tax
period that has nil or no entry in all the Tables in FORM GSTR-3B / FORM GSTR-1 /
FORM GST CMP-08.”.
Requirement for GST Audit is exempted for taxpayer having aggregate
turnover upto ₹ 5 Crores to FY 2019-20 as well [N/N 79 /2020 – CT dated
15/10/2020]
Provided that for the FY 2018-2019 and 2019-2020, every registered person whose
aggregate turnover exceeds ₹ 5 crore shall get his accounts audited as specified u/s
35(5) and he shall furnish a copy of audited annual accounts and a reconciliation
statement, duly certified, in FORM GSTR-9C for the said financial year.
Requirement of filing of Annual return for FY 2019-20 is optional [N/N 77
/2020–CT dated 15/10/2020]
Filing of annual return u/s 44 (1) for FY 2019-20 is optional for small taxpayers whose
aggregate turnover is less than ₹ 2 crores and who have not filed the said return
before the due date.
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INDIRECT TAX AMENDMENTS – MAY / JUNE 2021 EXAMS
Due dates of filing of Form GSTR-1 [N/N 74/2020 & 75/2020–CT dated
15/10/2020]
Form GSTR-1 for the Quarter/ Month
Due Date
October, 2020 to December, 2020
13th January, 2021
January, 2021 to March, 2021
13th April, 2021
October, 2020
11th November 2020
November, 2020
11th December 2020
December, 2020
11th January 2021
January, 2021
11th February 2021
February, 2021
11th March 2021
March, 2021
11th April 2021
Extension of Time Limits: Time limit for furnishing the details of outward supplies in
Form GSTR-1 for each tax periods is 11th day of the month succeeding such tax period:
Time limit for furnishing the details of outward supplies in Form GSTR-1 for the class
of registered persons required to furnish return for every quarter u/s 39(1) shall be
extended till the 13th day of the month succeeding such tax period. This notification
superseded NT 74/2020 CT and 75/2020 CT.
[N/N 83/2020 CT dated 10/11/2020, applicable from 1st January 2021]
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INDIRECT TAX AMENDMENTS – MAY / JUNE 2021 EXAMS
Due dates of filing of Form GSTR-3B [N/N 76/2020 – CT dated 15/10/2020]
Form GSTR-3B
Aggregate Turnover in
Aggregate Turnover in preceding FY upto
for Months of
the preceding FY > ₹
₹ 5 crores
5 Crores
Category A
Category B
October, 2020
20th November 2020
22nd November 2020
24th November 2020
November, 2020
20th December 2020
22nd December 2020
24th December 2020
December, 2020
20th January 2021
22nd January 2021
24th January 2021
January, 2021
20th February 2021
22nd February 2021
24th February 2021
February, 2021
20th March 2021
22nd March 2021
24th March 2021
March, 2021
20th April 2021
22nd April 2021
24th April 2021
*Category A - Taxpayers whose principal place of business 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.
*Category B - Taxpayers whose principal place of business is in the States of Himachal
Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal
Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand
or Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh or Delhi.
Contents of Tax Invoice [Rule 46 amended N/N 72/2020 dated 30/09/2020]
As per Rule 46, tax invoice shall additionally include
 Quick Response code, having embedded Invoice Reference Number (IRN) in it, in
case invoice has been issued in the manner prescribed u/r 48(4).
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INDIRECT TAX AMENDMENTS – MAY / JUNE 2021 EXAMS
Exemption from Issue of E-Invoices [Rule 48(4) amended vide N/N 72/2020
dated 30/09/2020]
The Commissioner may, on the recommendations of the Council, by notification, exempt
a person or a class of registered persons from issuance of e-invoice for a specified
period and QR Code duly embedded with IRN can be produced for verification instead of
physical copies, subject to such conditions and restrictions as may be specified in the
said notification
Documents and devices to be carried by a person-in-charge of a conveyance [Rule
138A(2) amended vide N/N 72/2020 dated 30/09/2020]
In case, invoice is issued in the manner prescribed u/r 48(4), the Quick Response (QR)
code having an embedded Invoice Reference Number (IRN) in it, may be produced
electronically, for verification by the proper officer in lieu of the physical copy of such
tax invoice.
Applicability of E-Invoicing [N/N 61/2020 dated 30/07/2020 & 70/2020 dated
30/09/2020]
E-invoicing is applicable if the aggregate turnover is more than ₹ 500 crores in any of
the last three Financial Years i.e. from 2017-18 onwards. The limit is reduced to ₹ 100
crores with effect from 1st January 2021. E-invoicing is also applicable for Export
Invoices.
Entities/Sectors are exempt from the e-invoicing:
(a) Special Economic Zone Units
(b) Insurer or a banking company or a financial institution, including a non-banking
financial company.
(c) Goods transport agency supplying services in relation to transportation goods by
road in a goods carriage.
(d) Suppliers of passenger transportation services.
(e) Suppliers of services by way of admission to exhibition of cinematograph films in
multiplex screens
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INDIRECT TAX AMENDMENTS – MAY / JUNE 2021 EXAMS
Interest on delay in payment of GST [Proviso to Section 50(1) notified vide
N/N 63/2020 dated 25th August 2020 applicable from 01/09/2020]
Interest on tax payable in respect of supplies made during a tax period and declared in
the return for the said period furnished after the due date in accordance with the
provisions of section 39, except where such return is furnished after commencement of
any proceedings u/s 73 or section 74 in respect of the said period, shall be levied on
that portion of the tax that is paid by debiting the electronic cash ledger.”.
Date of Submission of Registration Application effective after authentication of
Aadhaar Number [Rule 8(4A)] [N/N 62/2020 dated 20/08/2020]
Where an applicant, other than a person notified u/s 25(6D), opts for authentication of
Aadhaar number, he shall, while submitting the application u/r 8(4), with effect from
21 August 2020, undergo authentication of Aadhaar number and the date of
submission of the application in such cases shall be the date of authentication of
the Aadhaar number, or 15 days from the submission of the application in Part B of
FORM GST REG-01 u/r 8(4), whichever is earlier.
Registration granted only after physical verification of the place of business [N/N
62/2020 dated 20/08/2020]
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) or does not opt for
authentication of Aadhaar number, the registration shall be granted only after physical
verification of the place of business in the presence of the said person, in the manner
provided u/r 25:
The proper officer 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. On failure to authenticate Aadhaar, notice in FORM GST REG-03 may be issued not
later than 21 days from the date of submission of the application.
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INDIRECT TAX AMENDMENTS – MAY / JUNE 2021 EXAMS
Deemed approval of registration in following cases [N/N 62/2020 dated 20/08/2020]
In following cases, application for grant of registration shall be deemed to be approved
if proper officer fails to take action in any of the following cases:
Relevant Case
Time Limit
Where a person successfully undergoes authentication 3 working days from the date of
of Aadhaar number or is notified u/s 25(6D); or
submission of the application
Where a person, other than a person notified u/s 21
days
from
the
date
of
25(6D) fails to undergo authentication of Aadhaar submission of the application
number as specified in rule 8(4A)
Where a person does not opt for authentication of 21
Aadhaar number
days
from
the
date
of
submission of the application
Where a person has furnished reply to the notice 7 working days from the date of
issued by the proper officer
the receipt of the clarification,
information
or
documents
furnished by the applicant
Furnishing of Returns [Section 39(1)] [Effective vide N/N 81/2020 dated 10th
November 2020]
Every registered person, other than
(a) an Input Service Distributor or
(b) a non-resident taxable person or
(c) 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, a return, electronically, of
inward and outward supplies of goods or services or both, input tax credit availed, tax
payable, tax paid and such other particulars, in such form and manner, and within such
time, as may be prescribed:
The Government may, on the recommendations of the Council, notify certain class of
registered persons who shall furnish a return for every quarter or part thereof, subject
to such conditions and restrictions as may be specified therein.
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INDIRECT TAX AMENDMENTS – MAY / JUNE 2021 EXAMS
Furnishing of Returns by Persons opting for Composition Scheme [Section
39(2)] [Effective vide N/N 81/2020 dated 10th November 2020]
A registered person paying tax u/s 10, shall, for each financial year or part thereof,
furnish a return, electronically, of turnover in the State or Union territory, inward
supplies of goods or services or both, tax payable, tax paid and such other particulars in
such form and manner, and within such time, as may be prescribed.
Tax due as per return to be paid before due date of filing return [Section
39(7)] [Effective vide N/N 81/2020 dated 10th November 2020]
Every registered person who is required to furnish a return u/s 39(1), other than the
person required to furnish return quarterly, or 39(3) or 39(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 registered person furnishing return quarterly shall pay to the
Government, the tax due taking into account inward and outward supplies of goods or
services or both, input tax credit availed, tax payable and such other particulars during
a month, in such form and manner, and within such time, as may be prescribed:
Provided further that every registered person furnishing return u/s 39(2) [persons opted
composition scheme] shall pay to the Government, the tax due taking into account
turnover in the State or Union territory, 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.”
New Exemptions introduced on supply of services [N/N 12/2017 dated 28th
June 2017 amended]
Exemptions will be provided from GST on supply of following services:
(a) Satellite launch services supplied by Indian Space Research Organisation, Antrix
Corporation Limited or New Space India Limited.
(b) Transportation of goods by air or by sea from customs station of clearance in India
to a place outside India, is exempt upto 30.09.2021.
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INDIRECT TAX AMENDMENTS – MAY / JUNE 2021 EXAMS
Taxability of remuneration paid to director [Circular No: 140/10/2020 GST dated
10.06.2020]
In order to determine the leviability of tax on the remuneration paid to the directors, we
first need to ascertain whether the director is an employee of the company or not.
Following two situations are possible:
Particulars
Taxability
Services provided by the independent
Such services are clearly outside the
directors who are not employees of
scope of Schedule III of the CGST Act
the said company to such company, in
and are therefore taxable in hands of
lieu of remuneration as the consideration
the company, on reverse charge basis
for the said services
Services
provided
by
a
director,
The part of director’s remuneration
irrespective of name and designation, is
which are declared as Salaries in the
an employee, next step would be to
books of a company and subjected to
examine whether all the activities
TDS u/s 192 of the Income-tax Act
performed by the director are in the
course of employer - employee relation
(i.e. a “contract of service”) or is there
any element of “contract for service”.
Not taxable being consideration for
services by an employee to the employer
in the course of or in relation to his
employment in terms of Schedule III.
The
part
of
remuneration
employee
which
is
director’s
declared
separately other than salaries in the
company’s accounts and subjected to
TDS u/s 194J of the IT Act as fees for
professional or technical services
It
is
treated
as
consideration
for
providing services which are outside the
scope of Schedule III and is therefore,
taxable on reverse charge basis. i.e.
the company, is liable to discharge GST
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