The country is under Lockdown form 25th of March 2020
and till the first Unlock the department is working at the backend continuously
so that the trade and industry does not suffer much. The due dates for the
lockdown are extended and also refunds were disbursed to the taxpayers it will provide
them some legroom to meet their operational expenses. The departmental officers
are working during the lockdown from their houses like the private sector
employees who are working from homes. Stringent IT security norms were also
followed by way of using Virtual Private Network, so that there are not data
leakages or theft and at the same time some of the states have also taken
assessment or hearing through video conferencing and WhatsApp video calls etc
to clear the pending work wherever the taxpayers were able to join and share
the data. During the lockdown period the following notifications / circulars
were issued to facilitate the trade and industry about 18 notifications and
five circulars have been issued.
The taxpayers can file GSTR-3B by SMS in case of NIL returns and the effective
date for filing of returns through SMS is 8th June 2020. The
facility of filing of NIL GSTR – 3B through SMS will help about 22 lac
Q 1. What is NIL GSTR – 3B mean?
Nil GSTR – 3B means
Q 2. Which class of taxpayers can avail this facility?
Filing of Nil GSTR – 3B return using SMS can be filed by the following
category of taxpayers
Q 3. Are there any perquisites for filing of GSTR – 3B through SMS?
Yes, there are certain perquisites for filing of NIL Return through SMS
and they are
Q 4. Can the authorized signatory mobile number can be used for more
than on registration number?
No, the authorized signatories’ number cannot be same for more than one
Q 5. What is the number to which SMS has to be sent for filing NIL
return through SMS?
The SMS has to be sent to 14409
Q 6. What is the message format for sending the SMS for filing of Nil
GSTR – 3B?
The message has to be sent in the following format from the registered
Example: Nil 3B 26AAAAA1111AAA1 06/2020
Q 7. Will I get any validation message on sending the NIL return filing
Yes, you will get a validation message on sending the Nil return filing
message. It is 4-digit number.
Q 8. What is to be done with the validation message received and what
the format of sending the same?
The validation message has to be sent again to 14409
CNF 3B XXXX
Q 9. Will I get any confirmation message once I send the validation
Yes, a confirmation message will be received along with the ARN number
once the validation number is sent to 14409.
Q 10. From which month I can use SMS facility to file GSTR – 3B Nil
return through SMS?
The same can be used from the month of May 2020 as the effective date
given in the Notification No 44/2020 – Central Tax dated 8th June
The special procedure prescribed for the taxpayers who are having
principal place of business in the erstwhile Union territory of Daman and Diu
or in the erstwhile Union territory of Dadra and Nagar Haveli till the 26th day
of January, 2020; and is in the merged Union territory of Daman and Diu and
Dadra and Nagar Haveli from the 27th day of January, 2020 onwards, have to do
it before 31st May 2020 as per Notification No 10/2020–Central Tax dated 21st March 2020 has
been extended up to 31st July 2020.
The time limit for the reply of notices issued for rejection of refund
has been extended due to the prevailing pandemic situation. The due date for
reply of notices has been extended up to 30th June 2020 for the
notices for which the due date is falling between 20th March
2020 to 29th June 2020.
The validity of e-waybills has been extended up to 30th June
2020 for the e-waybills issued on or before 24th of March 2020
and expiring on or after 20th March 2020. The effective date of
this notification is 31st May 2020.
Refunds are issued in GST on Zero Rated Supplies, inverted duty
structure and excess payment of taxes. Circular No.135/05/2020 – GST dated 31st March 2020 has
been issued by replacing the circulars issued previously. There were some
challenges being faced by the trade and industry on the same as it was
mandatory for the refunds to be processed based on the invoices reflected in
GSTR – 2A. There will be cases where the taxpayer is eligible to take input tax
credit on the import of goods, reverse charge or on the input service
distributor invoices but these invoices are not being reflected in the GSTR –
Now, with this circular the refunds can be processed based on the invoices
even if they are not reflected in GSTR – 2A for transaction related to reverse
charge, ISD invoices and import transactions.
With the rollout of GST from 1st July 2020, there was
confusion on the director’s remuneration on payments made to them. This
confusion has added some more controversy based on the Orders issued by the
Advance Ruling Benches.
One of the recent Order passed by Clay Crafts India Pvt Ltd by the Rajasthan Bench has
said that the Revere Charge is applicable on the remuneration paid to the
directors under GST as it is considered to be the supply. Company is considered
to be recipient and the directors as supplier of services and as per the
provisions of Entry No 6 of Notification No. 13/2017 Central Tax (Rate) dated 28th June
2017 attracts reverse charge.
The above ruling as well as the Order issued by the Karnataka Bench in the case of M/s Alcon Consulting Engineers (India)
Pvt. Ltd., has also said that remuneration paid to the directors is
also payable under Reverse Charge.
The Circular has laid rest to this confusion and said that if the
director is on the payroll of the company and the income tax is deducted under
Section 192 of the Income Tax 1961 is not under Section 194 J then the relation
between the director and the company is falling under Schedule III of the CGST
Act 2017 where it is treated as relation between employee and employer.
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