Page 40 - DTPA Journal December 21

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Ans. For calculation of the threshold limit, the value iv) Statutory body
of taxable supplies excluding the zero-rated supplies Q8. Which financial years should be considered
needs to be considered. However, for the purpose of for calculating the limit of Rs. One lakh income tax
payment of tax liability, 1% of the total output tax needs when filing the return for the month of January
to be disbursed in cash. Therefore, where zero rated
2021?
supplies are with payment of tax, 1% cash payment will
still be required on output tax including that on zero Ans. The due date of filing Income Tax return for the
rated supplies. Assessment year 2020-21 has been extended for
persons liable for tax audit / companies’ audit / partners
For example, if in any month, taxable supplies are of of firms liable for audit etc. to 15th February 2021.
Rs. 60 lakhs and zero rated supplies with payment of tax Most of the taxpayers falling under Rule 86B would be
is Rs. 40 lakhs, assuming the rate of GST of 18%, having tax audit applicable to them. Thereby for
mandatory amount of 1%*100 lakhs*18% = Rs. 18000 compliance for the month of January 2021, the two
must be paid in cash.
preceding financial years for calculating the limit of
Q7. Are there any exceptions to the list of Rs. One lakh would be the Assessment year 2019-20
registered persons who are required to comply with and 2018-19.
this rule?
Q9. When meaning to state that refund in the
Ans. The following persons are not required to preceding financial year should be more than one
comply with the restrictions: lakh, would the limit be calculated for all refunds
taken together?
a) The registered person or the Proprietor or the Karta
or the Managing Director or any of its two partners, Ans. The limit of Rs. One lakh will be calculated for
whole-time directors or members of Managing inverted duty structure and zero rated supplies
Committee of Association or Board of Trustees should separately. Thereby, the limit for the exports and
have paid more than Rs. One lakh as income tax. This supplies to SEZ developer or unit will be clubbed to
amount should have been paid in each of the two determine Rs. One lakh but that of the inverted duty
preceding financial yearsfor which the time limit to file structure would be separate.
return of income under subsection section 139(1) of the
For example, if refund received for inverted duty
said Act has expired. structure is Rs. 60,000 and for exports is Rs. 50,000 in
b) the registered person has received a refund of more a year, the exceptions provided above will not be
than Rs. One lakh in the preceding financial year under attracted. However, if the refund for supplies to SEZ
zero rated supplies (i.e. exports and supplies to SEZ) had been Rs. 60,000 and for exports Rs. 50,000, the
limit would be breached and Rule 86B would not be
c) The registered person has received a refund of more required to be complied with.
than Rs. One lakh in the preceding financial year under
inverted duty structure Q10. Under the exception, whether the limit is
refund received during the year or refund
d) The registered person has discharged his liability belonging to the year?
towards output tax through electronic cash ledger in
excess of 1% of total output tax liability applied Ans. It has been clearly provided the limit is for
cumulatively upto the said month in the current refund received during the preceding financial year
financial year irrespective of the period for which the refund had
been claimed.
e) The registered person is –
For example, in the return for the month of January
i) Government Department or
2021, one needs to calculate the refund received during
ii) Public Sector Undertaking or
the year 2019-20. Assuming the refund received
iii) Local authority or during 2019-20 was Rs. 1,20,000 wherein Rs. 70,000
belonged to 2018-19 and Rs. 50,000 to the year 2017-

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