GST Update – Circulars issued by CBIC related to returns & invoices

GST Policy Wing, CBIC has issued three circulars on 18th February, 2019 as listed below in brief.

Circular No. 90/09/2019 – GST dated 18-02-19: 

All registered persons making supply of goods or services or both in the course of inter-State trade or commerce to specify the place of supply along with the name of the State in the tax invoice. Sections 10 and 12 of the Integrated Goods and Services Tax Act, 2017 deals with the place of supply in case of supply of goods and services respectively. Since, GST is a destination-based consumption tax, the tax paid by a registered person accrues to the State in which the consumption of goods or services or both takes place.

Contravention of the above shall attract penal action under the provisions of section 125 of the CGST Act i.e. penalty upto Rs.25,000/- 

Circular No. 89/08/2019 – GST dated 18-02-19: 

It has been brought to the notice of tax payers that mentioning details of inter-state supplies made to unregistered persons in Table 3.2 of FORM GSTR-3B and Table 7B of FORM GSTR-1 is mandatory even though not mentioning the same in section 3.2 of GSTR 3B will have not impact on tax computation. Since the apportionment of IGST collected on inter–State supplies made to unregistered persons in the state where such supply takes place is based on the information reported in Table 3.2 of FORM GSTR-3B by the registered person, reporting is very important.

Contravention of the above shall attract penal action under the provisions of section 125 of the CGST Act i.e. penalty upto Rs.25,000/- 

Circular No. 91/10/2019 – GST dated 18-02-19

It was clarified through circular No. 3/1/2018-IGST on 25^th May 2018 that from 1st of April, 2018, the supply of warehoused goods before their clearance from the warehouse would not be subject to the levy of integrated tax.

Supply of warehoused goods while deposited in custom bonded warehouses had the character of inter-State supply as per the provisions of IGST Act 2017. But, due to non-availability of the facility on the common portal, suppliers have reported such supplies as intra-State supplies and discharged central tax and state tax on such supplies instead of integrated tax. In view of revenue neutral position of such tax payment and that facility to correctly report the nature of transaction in FORM GSTR-1 furnished on the common portal was not available during the period July, 2017 to March, 2018, it has been decided that, as a one-time exception, suppliers who have paid central tax and state tax on such supplies, during the said period, would be deemed to have complied with the provisions of law as far as payment of tax on such supplies is concerned as long as the amount of tax paid as central tax and state tax is equal to the due amount of integrated tax on such supplies.

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