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Important GST Updates, June 2020

1. Circular No. 140/10/2020 – GST dated June 10, 2020 issued clarification on levy of GST on director’s remuneration to put the controversy to rest. It has been clarified that payment made to Independent directors will attract GST levy and payment to director in the course of employer – employee relationship which is treated as “salaries” in the books of accounts subject to TDS under Section 192 of the Income Tax Act, 1961 would be out of the purview of GST. However, part payment to Director which is in the nature of fees for professional or technical services subject to TDS under section 194J of the Income Tax Act, 1961 shall attract GST levy.
2. Circular No. 139/09/2020 – GST dated June 10, 2020 clarifies on the issue of refund of accumulated ITC in respect of Invoices relating to imports, ISD and inward supplies liable to RCM not reflected in GSTR – 2A.
3. Notification No. 44/2020 – Central Tax dated June 8, 2020 seeks to give effect to the provisions of Rule 67A of the CGST Rules, 2017 for furnishing nil return in Form GSTR 3B by SMS from June 8, 2020.
4. Notification No. 45/2020 – Central Tax dated June 9, 2020 extends the date of transition under GST on account of merger of erstwhile Union Territories of Daman and Diu & Nagar Haveli from existing May 31, 2020 to July 31, 2020.
5. Notification No. 46/2020 – Central Tax dated June 9, 2020 seeks to extend period to pass order under Section 54(7) of CGST Act, 2017 which provides that final order in GST refund shall be issued within sixty days from the date of receipt of application complete in all respects but considering Pandemic Covid-19, if GST refund order date falls between March 20, 2020 to June 29, 2020 in that case refund order can be issued within 75 days (i.e. 60 + 15 Days) of receipt of reply of notice or June 30, 2020, whichever is later.
6. Notification No. 47/2020 – Central Tax dated June 9, 2020 seeks to amend Notification No. 40/2020 – Central Tax dated May 5, 2020 in respect of extension of validity of e-way bill generated on or before March 24, 2020 (whose validity has expired on or after March 20, 2020) till June 30, 2020.