15 June 2022
Respected experts please guide. A gst number was suspended on 1.01.2022 which was revoked on 31.03.2022, the revocation being effective from 1.1.2022.
As per law when gst is suspended a person can not make taxable supply that is tax invoice can't be issued, further it is stated that within 30 days of revocation order revise invoice to be issued for all those supplies made during the period of suspension till passing of revocation order. Then it is stated that all those supplies made during the said period shall be reported in the first return filed after revocation order is passed. Now considering above i am bit confused regarding its practical application. 1. What shall be the first return, most probably January return? 2. Date of revise invoice will be what? 3. In case of B2C supply i feel it is not practically possible to issue revise invoice so does it means that the tax on B2C supplies in such case shall be borne by the taxpayer. 4. What will be the liability on the registered taxpayer if he availed rcm service during the said period. Experts guidance will clear doubts of many. Thanks in advance
11 July 2024
Certainly! Let's address each of your queries regarding the practical implications of GST suspension and revocation:
1. **First Return After Revocation:** - The "first return" refers to the return period immediately following the effective date of revocation. In your case, since the revocation is effective from 1st January 2022, the first return after revocation would be the January 2022 return. - Therefore, all supplies made during the period of suspension (1st January 2022 to 31st March 2022) need to be reported in the January 2022 return.
2. **Date of Revised Invoice:** - The revised invoices for supplies made during the suspension period should ideally be issued within 30 days from the date of revocation order. Since the revocation is effective from 1st January 2022, you should aim to issue revised invoices by the end of January 2022. - This revised invoice will essentially correct the original invoices issued during the period of suspension, reflecting the correct GST details as applicable post-revocation.
3. **B2C Supplies and Practicality of Issuing Revised Invoices:** - For B2C (Business to Consumer) supplies, issuing revised invoices may not be practical in many cases, especially if there are numerous transactions and individual customers involved. - As per GST rules, for B2C supplies where the invoice value does not exceed Rs. 200, there is no requirement to issue invoices. However, for transactions where invoices were issued and the GST was collected during the suspension period, the liability to pay GST remains with the taxpayer. - In such cases, if revised invoices cannot be practically issued, the taxpayer is liable to pay the GST on these supplies out of their own funds.
4. **Liability on Registered Taxpayer for RCM (Reverse Charge Mechanism) Services:** - If the registered taxpayer availed services under RCM during the period of suspension, they are required to report and pay the applicable GST on such services in their GST returns for the respective periods. - The liability for RCM services remains even if the GST registration was under suspension at the time of availing the services.
**Key Points to Consider:** - Ensure that all supplies made during the suspension period are correctly reported in the GST return for January 2022. - Issue revised invoices for supplies made during the suspension period within 30 days from the date of revocation order. - For B2C supplies where issuing revised invoices is not practical, the taxpayer bears the liability to pay GST out of their own funds. - Pay GST on RCM services availed during the suspension period in the respective GST returns.
It's advisable to consult with a GST expert or a qualified tax professional to ensure compliance with GST laws and regulations specific to your situation. They can provide tailored advice based on the details of your business and the specific circumstances of the GST suspension and subsequent revocation.
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