Limitation period for Refund (FY 2019-20)
As per section 54(1), any person claiming refund of any tax paid by him, may make an application before the expiry of two years from the relevant date. As per Explanation to section 54 the relevant date is the date of payment of tax. If we go by this, the period of 2 years is expired. But as per NOTIFICATION NO. 13/2022 - CENTRAL, DATED 5-7-2022, the period from the 1st day of March 2020 to the 28th day of February 2022 for computation of the period of limitation for filing refund application under section 54 is excluded.
Time of supply on interest and relevant treatment
Interest or late fee or penalty for delayed payment of any consideration for any supply is included in the value of supply. But the time of supply for such interest is attracted when such interest is received.
At the time of receipt of such interest, the supplier has to issue the debit note as per section 34 of CGST Act/ State GST Act.
Goods sold on lower than the cost (i.e. loss)
GST is levied on the transaction value which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply.
GST law does not contain any provision for reversal of ITC in case of supply at the reduced price. Therefore, the contention of the department of reversal of ITC is not tenable in law.
GTA under forward charge
It can do so only if it has made a declaration in Annexure V on or before the 16th August, 2022 before the jurisdictional GST Authority. It may be noted that such declaration is to be made in physical mode and not the electronic mode.
In case such declaration is not made then by law presumes that such services provided by GTA is covered under RCM @ 5% without ITC.
Documentation on purchase return/sale return
Delivery Challan: As per rule 55 of CGST Rules, for the purposes of transportation of goods for reasons other than by way of supply, a delivery challan is required to be issued by the consigner in lieu of invoice at the time of removal of goods for transportation. Here the consigner (M/s Brijesh Ltd.) has to issue the delivery challan for the removal of goods for transportation.
E Way Bill: Further, in case of applicability of e-way bill, it is also required to be generated.
Credit note: It is required to be issued by the supplier i.e. M/s Gopala & Co. on the return of the goods. In case of applicability of E-invoice, IRN is required to be generated for credit note is also required to be generated in such cases.
ITC benefits in case of mandatory registration
A person who has applied for registration under this Act within 30 days from the date on which he becomes liable to registration and has been granted such registration shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of this Act;
Further, the registered person shall not be entitled to take the input tax credit in respect of any supply of goods or services or both to him after the expiry of one year from the date of issue of tax invoice relating to such supply.
It infers that
- a) he is not entitled to take the credit in respect of the capital goods.
- b) he is not entitled to take the credit in respect of any supply of goods or services or both to him after the expiry of one year from the date of issue of tax invoice relating to such Supply.
- c) he is not entitled to take the credit if applies for registration post 30 days from the date on which he becomes liable to registration.