Brief Summary of GST Central Tax Notifications No. 32, 33 & 34

Here is the comprehensive study of GST notifications based on the Amnesty Scheme & the revision of the time limit to apply for revocation in various scenarios.

1.0 late fees Amnesty scheme for GSTR 3B towards the period July 2017 to April 2021 has been extended from 31st August 2021 to 30th November 2021 [NN 33/2021 – CT dated 29th August 2021]

The government has declared the Amnesty scheme for the late fee waiver towards the returns on 1st June 2021 towards the mentioned returns:

Form GSTR 3B (Notification 19/2021 – CT dated 1st June 2021)
Form GSTR 1 (Notification 20/2021 – CT dated 1st June 2021)
Form GSTR 4 (Notification 21/2021 – CT dated 1st June 2021)

Towards the period of July 2017 to April 2021 given that it is to be furnished from 1st June 2021 to 31st August 2021 as follows:

Under the Notification 33/2021 – Central Tax dated 29th August 2021, the due date is to be extended by the government to which the amnesty for the diminished late fee for the GSTR-3B excluding GSTR 1 & GSTR 4 can be claimed. The due date to claim the late fee Amnesty policy is now prolonged to 30th November 2021 rather than 31st August 2021.

(Nil return does not mean tax payable is nil; Nil returns describe that there are no details for furnishing in returns).

Influence & Review of Author:

• It is essential to note the amnesty has been given on 1st June 2021 to furnish the GSTR 3B, 1, & 4 however, a delay till 30th November 2021 has been conferred only to furnish the Form GSTR 3B.
• The government is executing Rule 59(6) of CGST rules which get started from 1st September 2021. On the implementation of the mentioned rule, the system will check that before filing the GSTR-1/IFF of the tax period the mentioned is to be filed or not:
  • a) GSTR-3B for the past 2-month tax periods (for monthly filers),
  • b) GSTR-3B towards the previous quarterly tax period for quarterly filers as per the case. The system will restrict the filing of the GSTR-1/IFF till Rule-59(6) is complied with.

On clicking the submit button of GSTR-1 this check will operate and the system will give you the error message if the condition of the rule-59(6) is not met. It is to be mentioned that the records which are to be saved in GSTR-1 will be saved and filing of the records will be permitted the post to the compilation of the rule-59(6).

Hence from 1st Sept 2021, if the GSTR -3B had not been furnished for the two tax periods (monthly) / 1 tax period (quarterly), the system shall not get permitted furnishing the GSTR-1. Thus the first step taxpayer will be needed to execute is furnishing the GSTR-3B soon so that GSTR-1 shall be furnished so as to reduce the fee on furnishing of GSTR-1. In short, the government has done the trouble through prolonging the GSTR-3B amnesty even when the case is transparent that both go collectively.

Author’s Comments: From my choice, GSTR-1 Amnesty must be prolonged to 30th Nov 2021 so as to advantage the assessee. The clarification is awaited on this concern.

Moreover reading rule 138E of CGST rules it shall know that if being an individual other than the composition individual needs not to get filed the GSTR 1/IFF towards two months or quarters according to the case will not be permitted to create the e-way bill.

The government shall not provide due consideration to the other filers of returns prior to 1/06/2021. The government must consider re-crediting the late fees furnished through the other enrolled individual so as to keep the equitability between the assessee otherwise it shall lose the interest of timely filers.

2.0 last date to Apply for Revocation of Registration fell amid 1st March 2020 to 31st August 2021 prolonged to 30th September 2021 [NN 34/2021 – CT dated 29th August 2021]

Introduction to Revocation of Enrollment

Revocation of enrollment is the double side mechanism which means that the assessee can apply towards the revocation or the proper officer might also on his own motion revoked the assessee registration post the proper process. The law of revocation of cancellation shall come towards the force when the proper officer on his own motion chooses to revoke the enrollment. As per that the assessee who does not urge his enrollment to get revoked applies for the refusal of cancellation. Section 30 read with Rule 23 outlines the method towards the cancellation of registration.

Brief Summary on Revocation

A detailed summary of the cancel process is to be explained through the diagram.

Additional Facts:

• The proper office will provide you with the opportunity to get heard prior to rejecting the application for revocation.
• Beneath CGST the revocation of the cancellation to be a deemed revocation beneath SGST and vice-versa.
• On no satisfaction with the application for revocation, the PO might provide you with the SCN which will be replied through a regd person in 7 days if the reply is good enough then the revocation of the cancellation shall be implemented in 30 days of receipt of the clarification.

The assessee shall only have the intention to apply towards the revocation when cancellation of the enrollment is to be implemented towards his will. Hence it is essential to find that when the proper officer revokes the GST registration of the assessee. According to section 29(2) of the CGST Act.

(1). An enrolled individual has violated the provisions of the Act or the rules made thereunder as might be prescribed or

Mentioned Violations CGST Rules 21

The enrollment provided to the individual is subjected to be cancelled if the said individual,

• Shall not implement the business from the declared place of the business.
• Problems invoices or bills excluding the supply of goods or services or dual in revocation of the provisions of the act or the rules build thereunder or
• Ravishes the stipulations of section 171 of the Act or the rules enacted thereunder (Anti-profiteering).
• Ravishes the stipulations of rule 10A (filed of Bank details)
• Claims ITC in revocation of the provisions of section 16 of the act or the rules enacted thereunder.
• Files the information of outward supplies in FORM GSTR-1 under section 37 for one or exceeding time which is in excess of the outward supplies made through him in his valid return beneath section 39 for the same tax period.
• Ravishes the stipulations of rule 86B (Particularized individuals will pay GST @ 1% in cash in spite of having ITC.

(2). An individual furnishing the tax beneath section 10 didn’t file the returns for 3 consecutive tax period

(3). Any enrolled individual other than the individual specified in the clause shall not be filed returns for the continuous-time of 6 months

(4). Beneath sub-section (3) of section 25 any individual who opted for the voluntary registration has not started the business within 6 months from the registration date.

(5). Registration has been taken through means of fraud, wilful misstatement, or suppression of facts:

• But the proper officer will not cancel the registration without providing the person an opportunity of being heard.
• Moreover in due proceedings concerning to cancellation of registration the proper officer might suspend the enrollment for that period and in the way as mentioned.

According to Notification 34/2021 – Central Tax, in which the registration shall not get cancelled beneath section 29(2)(b) or 29(2)(c) [Non-filing of returns] of the CGST Act and the time limit for building the application or revocation of cancellation of registration beneath section 30(1) of CGST Act* comes in the period from 1st March 2020 to 31st August 2021 the time limit to build the application will be prolonged up to 30th Sept 2021.

According to section 30(1) of the CGST Act, the enrollment individual whose enrollment gets refused from the proper officer on his own motion might apply to the officer for the revocation of the cancellation of the registration in a prescribed way in 30 days from the service date of the cancellation order.

But for the period might be on enough cause being shown and for the reasons to be recorded in writing gets prolonged.

1. Through the additional commissioner or the joint commissioner according to the case might be for the time limit, not more than 30 days.
2. Through the commissioner for the coming time not more than 30 days beyond the time specified in clause (a). (Extension time is notified w.e.f. 1st January 2021)

Note: if the appeal is previously furnished prior to appellate authority with respect to the cancellation order because of lapse of time limit to apple for the revocation of the cancellation order then this shall not get withdrawn despite the prolongation of the time limit gets extended as the GST portal will not permit to withdraw the petition unlike the withdrawal of the refund of the application functionality.

3.0 Extension in EVC Facility for filing GSTR 3B & GSTR 1 through the companies [NN 32/2021 – CT dated 29th August 2021]

Form GSTR 3B & GSTR 1/IFF furnishing by the companies through electronic verification code (EVC) rather than the Digital Signature Certificate (DSC) shall get enabled for the period from the date 27th April 2021 to 31st August 2021. This period shall get prolonged to 31st October 2021.

The author mentioned that: It will be notified that post to the introduction of the facility of Aadhar Authentication u/s 25(6A) to 25(6C) of CGST Act, the authorized signatories have gained authenticity, thus the signing of GSTR 3B/1/ IFF by DSC will be scrapped out

Relevant GST Notifications