Section 148 of GST Act: Special procedure for certain processes

Amended and updated notes on section 148 of CGST Act, 2017. Detail discussion on provisions and rules related to special procedure for certain processes.

Amended and updated notes on section 148 of CGST Act, 2017. Detail discussion on provisions and rules related to special procedure for certain processes.

Chapter XXI (Sections 143174) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to miscellaneous. Section 148 of CGST 2017 provides for special procedure for certain processes.

Recently, we have discussed in detail section 147 (Deemed exports) of CGST Act 2017. Today, we learn the provisions of section 148 of Central GST Act 2017.

Section 148 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 1/2017-Central Tax, G.S.R. 605(E), dated 19.06.2017. This notification was come into force from 22nd June, 2017 i.e. the commencement date of section 148 is 22-6-2017.

GST Section 148: Last date to file your GST Form GSTR-1 is 31st October 2020 for the period from July-September 2020 if your aggregate turnover is up to ₹1.5 crore in the preceding FY or the current FY.

Name of ActThe Central Goods and Services Tax Act 2017
Enacted byParliament of India
Administered byCentral Board of Indirect Taxes & Customs
Governing bodyGST Council
Number of Chapters21
Number of Sections174
You are reading:
Chapter No.XXI
Chapter NameMiscellaneous
Section No.148
Section NameSpecial procedure for certain processes
Updated 2024 EditionGST Law Book PDF

Notes on Section 148 of CGST Act 2017

In section 148 of CGST Act, you should remember only two things:

  1. CG notify certain classes of registered persons; and
  2. CG makes special procedures to be followed by such notified persons.

CBIC (Central Board of Indirect Taxes and Customs) shall issue notification to notify such class of person on the recommendations of the GST Council. The Central Government makes such procedure including registration, furnishing of return, payment of tax and administration of such persons.

Cost Audit Report:

As per the provisions of section 71(2)(iv) (Access to business premises) of CGST, an authorised officer may demand cost audit report, if any, under section 148 of the Companies Act, 2013.

Notified Class of Persons under GST Section 148

Supply online info from Foreign Country:

If you are supplying information and data base access or retrieval services from a place outside India to a person in India, then you shall not be required to furnish: –

  1. An annual return in FORM GSTR-9; and
  2. Reconciliation statement in FORM GSTR-9C.

[Refer Notification No. 30/2019-Central Tax (Rate), G.S.R. 456(E) dated 28th June, 2019]

GSRT-1 if Turnover Upto ₹1.5 Crore:

The registered persons having aggregate turnover of up to ₹1.5 crore in preceding/ current FY shall file GSTR-1 within time as specified below:

  • For quarter January, 2023 to March, 2023: 13th April, 2023.

[Refer Notification No. 27/2020-Central Tax dated 23rd March, 2020 and Notification No. 74/2020-Central Tax dated 15th October, 2020

GSRT-1 if Turnover more than ₹1.5 Crore:

The registered persons having aggregate turnover of more than ₹1.5 Crore in preceding/ current FY shall file GSTR-1 within time as specified below:

  1. For the Month of September 2023: 11th October 2023.
  2. For the Month of October, 2023: 11th November, 2023.
  3. For the Month of November, 2023: 11th December, 2023.
  4. For the Month of December, 2023: 11th January, 2024.
  5. For the Month of January, 2023: 11th February, 2023.
  6. For the Month of February, 2023: 11th March, 2023.
  7. For the Month of March, 2023: 11th April, 2023.

[Refer Notification No. 75/2020-Central Tax dated 15th October, 2020]

GST Form GSTR-4 for Composition levy:

Class of Registered Person: The registered persons paying GST under composition scheme under section 10 or Notification No. 02/2019–Central Tax (Rate) G.S.R. 189(E) dated 7-March-2019.

GSTR-4 for FY 2019-20: You shall furnish a return for every financial year or, as the case may be, part thereof in FORM GSTR-4, on or before the 30th day of April following the end of such financial year.

However, you may file Form GSTR-4 for FY 2019-20 on or before 31st October 2020 vide Notification No. 64/2020-Central Tax, G.S.R. 539(E) dated 31.08.2020.

[Refer Notification No. 12/2020-Central Tax, G.S.R. 195(E) dated 21st March, 2020 and 21/2019-Central Tax, G.S.R. 322(E) dated 23rd April, 2019]

GST Refund within 18 Months:

Class of Registered Person: Any specialised agency of the United Nations Organisation or any Multilateral Financial Institution and Organisation notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries.

Special procedures: The above specified class of persons shall make an application for refund of tax paid by it on inward supplies in specified form and manner before the expiry of 18th months from the last date of the quarter in which such supply was received.

[Refer Notification No. 20/2018-Central Tax, G.S.R. 309(E) dated 28th March, 2018]

GST on Persons not opting Composition Scheme:

As we know that GST law provides for payment of GST at the time of receipt of advance towards supply of goods or services.

But if you did not opt for the composition levy then you shall pay GST on the outward supply of goods at the time of supply. Time of supply here means the date of issue of invoice or the due date of tax invoice, whichever is earlier.

You shall furnish the details and returns as mentioned in Chapter IX (Returns sections 3748) of CGST Act and the rules made thereunder. The period prescribed for the payment of tax shall also be such as specified in the CGST Act.

Therefore, the CG exempts all taxpayers from payment of GST on advances received in case of supply of goods, except persons opting to pay GST under composition scheme.

[Refer Notification No. 66/2017-Central Tax, G.S.R. 1422(E) dated 15th November, 2017]

Foreign Airlines Company:

Airlines foreign company covered under the notification issued under sub-section (1) of section 381 of the Companies Act, 2013 (18 of 2013) and who have complied with the sub-rule (2) of rule 4 of the Companies (Registration of Foreign Companies) Rules, 2014 are notified as the class of registered persons who shall follow the special procedure as mentioned below.

  1. Not required to furnish reconciliation statement in FORM GSTR-9C
  2. A statement of receipts and payments for the financial year in respect of its Indian Business operations is submitted for each GSTIN by the 30th September of the year succeeding the financial year.

Note that such statement of receipts and payments must be authenticated by a practicing Chartered Accountant in India or a firm or a Limited Liability Partnership of practicing Chartered Accountants in India.

Refer Notification No. 09/2020-Central Tax dated 16th March, 2020

Place of business Daman and Diu or Dadra and Nagar Haveli:

CG notifies those persons whose principal place of business or place of business was in the erstwhile Union territory of Daman and Diu or in the erstwhile Union territory of Dadra and Nagar Haveli till the 26th day of January, 2020; and is in the merged Union territory of Daman and Diu and Dadra and Nagar Haveli from the 27th day of January, 2020 onwards, as the class of persons who shall, except as respects things done or omitted to be done before the notification, follow the following special procedure till the 31st day of May, 2020 (hereinafter referred to as the transition date) as mentioned below.

The said registered person shall,-

  • (i) ascertain the tax period as per sub-clause (106) of section 2 of the said Act for the purposes of any of the provisions of the said Act for the month of January, 2020 and February, 2020 as below:-
    • (a) January, 2020: 1st January, 2020 to 25th January, 2020;
    • (b) February, 2020: 26th January, 2020 to 29th February, 2020;
  • (ii) irrespective of the particulars of tax charged in the invoices, or in other like documents, raised from the 26th January, 2020 till the transition date, pay the appropriate applicable tax in the return under section 39 of the said Act;
  • (iii) who have registered Goods and Services Tax Identification Number (GSTIN) in the erstwhile Union territory of Daman and Diu and the erstwhile Union territory of Dadra and Nagar Haveli till the 25th day of January, 2019 have an option to transfer the balance of input tax credit (ITC) after the filing of the return for January, 2020, from the registered Goods and Services Tax Identification Number (GSTIN) in the erstwhile Union territory of Daman and Diu to the registered GSTIN in the new Union territory of Daman and Diu and Dadra and Nagar Haveli by following the procedure as below:-
    • (a) the said class of persons shall intimate the jurisdictional tax officer of the transferor and the transferee regarding the transfer of ITC, within one month of obtaining new registration;
    • (b) the ITC shall be transferred on the basis of the balance in the electronic credit ledger upon filing of the return in the erstwhile Union territory of Daman and Diu, for the tax period immediately before the transition date;
    • (c) the transfer of ITC shall be carried out through the return under section 39 of the said Act for the tax period immediately before the transition date and the transferor GSTIN shall debit the said ITC from its electronic credit ledger in Table 4(B)(2) of FORM GSTR-3B and the transferee GSTIN shall credit the equal amount of ITC in its electronic credit ledger in Table 4(A)(5) of FORM GSTR-3B.

The balance of Union territory taxes in electronic credit ledger of the said class of persons, whose principal place of business lies in the Union territory of Daman and Diu, as on the 25th day of January, 2020, shall be transferred as balance of Union territory tax in the electronic credit ledger.

Notification No. 10/2020-Central Tax dated 21st March, 2020.

Corporate Debtors under IBC Code 2016:

CG notifies those registered persons (hereinafter referred to as the erstwhile registered person), who are corporate debtors under the provisions of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), undergoing the corporate insolvency resolution process and the management of whose affairs are being undertaken by interim resolution professionals (IRP) or resolution professionals (RP), as the class of persons who shall follow the following special procedure, from the date of the appointment of the IRP/RP till the period they undergo the corporate insolvency resolution process, as mentioned below.

Registration: The said class of persons shall, with effect from the date of appointment of IRP /RP, be treated as a distinct person of the corporate debtor, and shall be liable to take a new registration (hereinafter referred to as the new registration)in each of the States or Union territories where the corporate debtor was registered earlier, within thirty days of the appointment of the IRP/RP:

Provided that in cases where the IRP/RP has been appointed prior to the date of this notification, he shall take registration within thirty days from the commencement of this notification, with effect from date of his appointment as IRP/RP.

Return: The said class of persons shall, after obtaining registration file the first return under section 40 of the said Act, from the date on which he becomes liable to registration till the date on which registration has been granted.

Input tax credit: (1)The said class of persons shall, in his first return, be eligible to avail input tax credit on invoices covering the supplies of goods or services or both, received since his appointment as IRP/RP but bearing the GSTIN of the erstwhile registered person, subject to the conditions of Chapter V of the said Act and the rules made thereunder, except the provisions of sub-section (4) of section 16 of the said Act and sub-rule (4) of rule 36 of the Central Goods and Service Tax Rules, 2017 (hereinafter referred to as the said rules).

(2) Registered persons who are receiving supplies from the said class of persons shall, for the period from the date of appointment of IRP / RP till the date of registration as required in this notification or thirty days from the date of this notification, whichever is earlier, be eligible to avail input tax credit on invoices issued using the GSTIN of the erstwhile registered person, subject to the conditions of Chapter V of the said Act and the rules made thereunder, except the provisions of sub-rule (4) of rule 36 of the said rules.

(5) Any amount deposited in the cash ledger by the IRP/RP, in the existing registration, from the date of appointment of IRP/RP to the date of registration in terms of this notification shall be available for refund to the erstwhile registration.

Explanation: For the purposes of this notification, the terms ―corporate debtor‖, ―corporate insolvency resolution professional‖, ―interim resolution professional‖ and ―resolution professional‖ shall have the same meaning as assigned to them in the Insolvency and Bankruptcy Code, 2016 (31 of 2016).

Notification No. 11/2020-Central Tax dated 21st March, 2020

Receives Development Rights:

The following classes of registered persons are notified for section 148 of CGST Act 2017:

  • (i) a promoter who receives development rights or Floor Space Index (FSI) (including additional FSI) on or after 1st April, 2019 for construction of a project against consideration payable or paid by him, wholly or partly, in the form of construction service of commercial or residential apartments in the project or in any other form including in cash;
  • (ii) a promoter, who receives long term lease of land on or after 1st April, 2019 for construction of residential apartments in a project against consideration payable or paid by him, in the form of upfront amount (called as premium, salami, cost, price, development charges or by any other name),

    as the registered persons in whose case the liability to pay central tax on, –
    • (a) the consideration paid by him in the form of construction service of commercial or residential apartments in the project, for supply of development rights or FSI (including additional FSI);
    • (b) the monetary consideration paid by him, for supply of development rights or FSI (including additional FSI) relatable to construction of residential apartments in project;
    • (c) the upfront amount (called as premium, salami, cost, price, development charges or by any other name) paid by him for long term lease of land relatable to construction of residential apartments in the project; and
    • (d) the supply of construction service by him against consideration in the form of development rights or FSI (including additional FSI), –

      shall arise on the date of issuance of completion certificate for the project, where required, by the competent authority or on its first occupation, whichever is earlier.

Explanation:

  • (i) The term “apartment” shall have the same meaning as assigned to it in clause (e) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);
  • (ii) the term “promoter” shall have the same meaning as assigned to it in in clause (zk) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);
  • (iii) the term “project” shall mean a Real Estate Project (REP) or a Residential Real Estate Project (RREP);
  • (iv) the term “Real Estate Project (REP)” shall have the same meaning as assigned to it in in clause (zn) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);.
  • (v) the term “Residential Real Estate Project (RREP)” shall mean a REP in which the carpet area of the commercial apartments is not more than 15 per cent. of the total carpet area of all the apartments in the REP.
  • (vi) the term “floor space index (FSI)” shall mean the ratio of a building’s total floor area (gross floor area) to the size of the piece of land upon which it is built.
  • (vii) Tax on services covered by sub-para (i) and (ii) of paragraph 1 above is required to be paid under reverse charge basis in accordance with notification No. 13/2017- Central Tax (Rate), dated 28.06.2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide GSR No. 692 (E), dated 28.06.2017, as amended.

Notification No. 6/2019-Central Tax (Rate), G.S.R. 253(E) dated 29th March, 2019

Section 148 of Central GST – Special procedure for certain processes1

Section 148 of CGST Act 2017 shall come into force on 22.06.2017 vide Notification No. 1/2017-Central Tax, G.S.R. 605(E), dated 19.06.2017.

The Government may, on the recommendations of the Council, and subject to such conditions and safeguards as may be prescribed, notify certain classes of registered persons, and the special procedures to be followed by such persons including those with regard to registration, furnishing of return, payment of tax and administration of such persons.

  1. Section 148 of CGST Act 2017 shall come into force on 22.06.2017 vide Notification No. 1/2017-Central Tax, G.S.R. 605(E), dated 19.06.2017. ↩︎


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