Latest GST News, Information, Notifications & Announcements [Period 15/11/21 to 21/11/21]

Latest GST News
  1. Latest Notifications Issued By CBIC:

Notification No. 15/2021 –Central Tax

i) Composite supply of works contract to Govt. Entity or Govt. Authority will be taxable @18 percent w.e.f. 01st January, 2022

ii) Job Work by way of Dyeing and Printing of Textile and Textile Products will be taxable @12 percent w.e.f. 01st January, 2022

Notification No. 16/2021 –Central Tax

Vide Notification No.16/2021-Central Tax, removed exemption for:

1. Pure services and composite supply of goods and services where goods constitute not more than 25 percent value, provided to a Govt. Entity or Govt. Authority.

In Serial No. 3 (i.e., pure services) and 3A (i.e., Composite supply of goods and services in which the value of supply of goods constitutes not more than 25% of the value of the said composite supply), the words “or a Governmental authority or a Government Entity” have been omitted in order to exclude such services supplied to a Governmental Authority or Government Entity. Thus, services mentioned in Serial No. 3 and 3A provided to Governmental authority and Government Entity shall no longer be exempt from January 1, 2022 and shall attract GST as applicable under Services Rate Notification.

2. Non-AC contract Carriage or State Carriage or metered Cabs or Auto/e-rickshaws if supplied through e-commerce operators.

Notification No. 17/2021 –Central Tax

Tax shall be paid by e-commerce operator for supply of restaurant service other than the services supplied by restaurant. In simple words, online food delivery apps are now liable to pay GST.

  • Major changes in GST from 1st Jan, 2022:

Restaurant owners [other than those located in Hotel having room tariff more than 7500 per day per room] need not pay GST on food supplied by them through e-commerce operators like Swiggy, Zomato. The same shall be paid by e-commerce operators. There such sale will not become part of GST Returns also.

3.       Clarification on certain GST refund related issues:

Various representations have been received from taxpayers and other stakeholders seeking clarification in respect of certain issues relating to refund. The issues have been examined. In order to ensure uniformity in the implementation of the provisions of the law across field formations, the Board, in exercise of its powers conferred by section 168(1) of the Central Goods and Services Tax Act, 2017 (“CGST Act”), hereby clarifies each of these issues as under:

S. No.IssueClarification
1.Whether the provisions of subsection (1) of section 54 of the CGST Act regarding time period, within which an application for refund can be filed, would be applicable in cases of refund of excess balance in electronic cash ledger?No, the provisions of sub-section (1) of section 54 of the CGST Act regarding time period, within which an application for refund can be filed, would not be applicable in cases of refund of excess balance in electronic cash ledger.
2.Whether certification/ declaration under Rule 89(2)(l) or 89(2)(m) of CGST Rules, 2017 is required to be furnished along with the application for refund of excess balance in electronic cash ledger?No, furnishing of certification/ declaration under Rule 89(2)(l) or 89(2)(m) of the CGST Rules, 2017 for not passing the incidence of tax to any other person is not required in cases of refund of excess balance in electronic cash ledger as unjust enrichment clause is not applicable in such cases.
3.Whether refund of TDS/TCS deposited in electronic cash ledger under the provisions of section 51 /52 of the CGST Act can be refunded as excess balance in cash ledger?The amount deducted/collected as TDS/TCS by TDS/ TCS deductors under the provisions of section 51 /52 of the CGST Act, as the case may be, and credited to electronic cash ledger of the registered person, is equivalent to cash deposited in electronic cash ledger. It is not mandatory for the registered person to utilise the TDS/TCS amount credited to his electronic cash ledger only for the purpose for discharging tax liability. The registered person is at full liberty to discharge his tax liability in respect of the supplies made by him during a tax period, either through debit in electronic credit ledger or through debit in electronic cash ledger, as per his choice and availability of balance in the said ledgers. Any amount, which remains unutilized in electronic cash ledger, after discharge of tax dues and other dues payable under CGST Act and rules made thereunder, can be refunded to the registered person as excess balance in electronic cash ledger in accordance with the proviso to sub-section (1) of section 54, read with sub-section (6) of section 49 of CGST Act
4.Whether relevant date for the refund of tax paid on supplies regarded as deemed export by recipient is to be determined as per clause (b) of Explanation (2) under section 54 of CGST Act and if so, whether the date of return filed by the supplier or date of return filed by the recipient will be relevant for the purpose of determining relevant date for such refunds?Clause (b) of Explanation (2) under Section 54 of CGST Act reads as under: “(b) in the case of supply of goods regarded as deemed exports where a refund of tax paid is available in respect of the goods, the date on which the return relating to such deemed exports is furnished;” On perusal of the above, it is clear that clause (b) of Explanation (2) under section 54 of the CGST Act is applicable for determining relevant date in respect of refund of amount of tax paid on the supply of goods regarded as deemed exports, irrespective of the fact whether the refund claim is filed by the supplier or by the recipient. Further, as the tax on the supply of goods, regarded as deemed export, would be paid by the supplier in his return, therefore, the relevant date for purpose of filing of refund claim for refund of tax paid on such supplies would be the date of filing of return, related to such supplies, by the supplier.

4.       Circular No. 166/22/2021-GST dated November 17, 2021

To clarify the matter further regarding the QR code, the Entry at S. No. 4 of the Circular No. 156/12/2021-GST dated June 21, 2021 is substituted as below:

4.” In cases, where receiver of services is located outside India, and payment is being received by the supplier of services ,through RBI approved modes of payment, but as per provisions of the IGST Act 2017, the place of supply of such services is in India, then such supply of services is not considered as export of services as per the IGST Act 2017; whether in such cases, the Dynamic QR Code is required on the invoice issued, for such supply of services, to such recipient located outside India?No. Wherever an invoice is issued to a recipient located outside India, for supply of services, for which the place of supply is in India, as per the provisions of IGST Act 2017, and the payment is received by the supplier, in convertible foreign exchange or in Indian Rupees wherever permitted by the RBI, such invoice may be issued without having a Dynamic QR Code, as such dynamic QR code cannot be used by the recipient located outside India for making payment to the supplier.”

5.       Circular No. 156/12/2021-GST, dated June 21, 2021 stands modified to this extent:

Rate of GST rate changes w.e.f. 01.01.2022:

INSERTEDINSCHEDULE2-TAX RATE12%,SUBSTITUTED 
Sch 3   
SerialNoHSNDescriptionGST rate
“132AA5007Wovenfabricsofsilk orofsilk waste.12%
132AB5111Wovenfabricsofcardedwoolorofcardedfineanimalhair.12%
132AC5112Wovenfabricsofcombedwoolorofcombedfineanimalhair.12%
132AD5113Wovenfabricsofcoarseanimalhairorofhorsehair.12%
132AE5208Wovenfabricsofcotton,containing85%ormorebyweightofcotton,weighingnotmorethan200g/m2.12%
132AF5209Wovenfabricsofcotton,containing85%ormorebyweightofcotton,weighingmorethan200g/m2.12%
  132AG  5210Wovenfabricsofcotton,containinglessthan85%byweightofcotton,mixedmainlyorsolelywithman-madefibres,weighingnotmorethan 200g/m2.12%
  132AH  5211Wovenfabricsofcotton,containinglessthan85%byweightofcotton,mixedmainlyorsolelywithman-madefibres,weighingmorethan200g/m2.12%
132AI5212Otherwovenfabricsofcotton.12%
132AJ5309Wovenfabricsofflax.12%
132AK5310Wovenfabricsofjuteorofothertextilebastfibresofheading5303.12%
132AL5311Wovenfabricsofothervegetabletextilefibres;wovenfabricsofpaperyarn.”;12%
“132BA5401Sewingthreadofman-madefilaments,whetherornotputupforretailsale.12%
132BB5402Syntheticfilamentyarn(otherthansewingthread),notputupforretailsale, includingsyntheticmonofilamentoflessthan67decitex.12%
132BC5403Artificialfilamentyarn(otherthansewingthread),not putupforretail sale, includingartificialmonofilamentoflessthan67decitex.12%
  132BD  5404Synthetic monofilament of 67 decitex or more and of which no cross-sectionaldimensionexceeds1mm;stripandthelike(forexample,artificialstraw)ofsynthetictextilematerialsofanapparentwidthnotexceeding5 mm.12%
  132BE  5405Artificialmonofilamentof67decitexormoreandofwhichnocross-sectionaldimensionexceeds1mm;stripandthelike(forexample,artificialstraw)ofartificialtextilematerialsofanapparentwidthnotexceeding5 mm.12%
132BF5406Man-madefilamentyarn(otherthansewingthread),putupforretailsale.12%
132BG5407Wovenfabricsofsyntheticfilamentyarn,includingwovenfabricsobtained frommaterialsofheading5404.12%
132BH5408Wovenfabricsofartificialfilamentyarn,includingwovenfabricsobtained frommaterialsofheading5405.”12%
“132CA5501Syntheticfilamenttow.12%
132CB5502Artificialfilamenttow12%
132CC5503Syntheticstaplefibres,notcarded,combedorotherwiseprocessedforspinning.12%
132CD5504Artificialstaplefibres,notcarded,combedorotherwiseprocessedforspinning.12%
132CE5505Waste(includingnoils,yarnwasteandgarnettedstock)ofman-madefibres.12%
132CF5506Syntheticstaplefibres,carded,combedorotherwiseprocessedfor spinning.12%
132CG5507Artificialstaplefibres,carded,combedorotherwiseprocessedforspinning.12%
132CH5508Sewingthreadofman-madestaplefibres,whetherornotputupforretail sale.12%
132CI5509Yarn(otherthansewingthread)ofsyntheticstaplefibres,notputupfor retailsale.12%
132CJ5510Yarn(otherthansewingthread)ofartificialstaplefibres,notputupforretailsale.12%
132CK5511Yarn(otherthansewingthread)ofman-madestaplefibres,putupforretail sale.12%
132CL5512Wovenfabricsofsyntheticstaplefibres,containing85%ormorebyweight ofsyntheticstaplefibres.12%
  132CM  5513Wovenfabricsofsyntheticstaplefibres,containinglessthan85%byweightofsuchfibres,mixedmainlyorsolelywithcotton,ofaweightnot exceeding170g/m2.12%
  132CN  5514Wovenfabricsofsyntheticstaplefibres,containinglessthan85%byweightofsuchfibres,mixedmainlyor solelywithcotton,ofaweight exceeding170g/m2.12%
132CO5515Otherwovenfabricsofsyntheticstaplefibres.12%
132CP5516Wovenfabricsofartificialstaplefibres.”;12%
  139  5607“Twine,cordage,ropesandcables,whetherornotplaitedorbraidedandwhetherornotmpregnated,coatedorsheathedwithrubberorplastics12%
“139A5608Knottednettingoftwine,cordageorrope;madeupoffishingnetsandothermadeup nets, oftextilematerials.”;12%
“146A5801Wovenpilefabricsandchenillefabrics,otherthanfabricsofheading5802 or5806.”12%
    “151A    5806  Narrow woven fabrics, other than goods of heading 5807; narrow fabricsconsistingofwarpwithoutweftassembledbymeansofanadhesive(bolducs).”12%
  154  5808“Braids in the piece; ornamental trimmings in the piece, withoutembroidery,otherthanknittedorcrocheted;tassels,pomponsandsimilar Articles12%
  155  5809“Wovenfabricsofmetalthreadandwovenfabricsofmetallisedyarnofheading5605,ofakindusedinapparel,asfurnishingfabricsorforsimilarpurposes, not elsewherespecifiedor included12%
1565810“Embroideryinthepiece,instripsorinmotifs12%
1685911Chapter5912%
“168A6001Pilefabrics,including“longpile”fabricsandterryfabrics,knittedorcrocheted.12%
  168B  6002Knittedorcrochetedfabricsofawidthnotexceeding30cm,containingbyweight5%ormoreofelastomericyarnorrubberthread,otherthanthose ofheading6001.12%
168C6003Knittedorcrochetedfabricsofawidthnotexceeding30cm,otherthanthoseofheading6001or6002.12%
  168D  6004Knittedorcrochetedfabricsofawidthexceeding30cm,containingbyweight5%ormoreofelastomericyarnorrubberthread,otherthanthose ofheading6001.12%
168E6005Warpknitfabrics(includingthosemadeongalloonknittingmachines),otherthanthoseofheadings6001to6004.12%
168F6006Otherknittedorcrochetedfabrics.”;12%
16961“Articlesofapparelandclothingaccessories,knittedorcrocheted,ofsalevalueexceeding₹1000 perpiece”12%
16961“Articlesofapparelandclothingaccessories,knittedorcrocheted.12%
17062“Articlesofapparelandclothingaccessories,notknittedorcrocheted,ofsalevalueexceeding₹1000 perpiece”12%
17062“Articlesofapparelandclothingaccessories,notknittedorcrocheted.”12%
“171A16301Blanketsandtravellingrugs.12%
171A26302Bedlinen,tablelinen,toiletlinenandkitchenlinen.12%
171A36303Curtains(includingdrapes)andinteriorblinds;curtainorbedvalances.12%
171A46304Otherfurnishingarticles,excludingthoseofheading9404.12%
171A56305Sacksandbags,ofakindusedforthepackingofgoods.12%
171A66306Tarpaulins,awningsandsunblinds;tents;sailsforboats,sailboardsorlandcraft;campinggoods.12%
171A76307Othermadeuparticles,includingdresspatterns.12%
  171A8  6308Sets,consistingofwovenfabricandyarn,whetherornotwithaccessories,for making up into rugs, tapestries, embroidered table cloths or serviettes,orsimilartextilearticles, putupinpackings forretailsale.12%
  171A9  6309  Wornclothingandotherwornarticles.12%
171A106310Usedornewrags,scrap,twine,cordage,ropeandcablesandwornoutarticlesoftwine,cordage,ropeorcables,oftextilematerials.12%
171A1164Footwearofsalevaluenotexceeding₹1000perpair.”12%

Disclaimer:

This publication contains information for general guidance only. It is not intended to address the circumstances of any particular individual or entity. Although the best of endeavour has been made to provide the provisions in a simpler and accurate form, there is no substitute to detailed research with regard to the specific situation of a particular individual or entity. We do not accept any responsibility for loss incurred by any person for acting or refraining to act as a result of any matter in this publication.

THANKING YOU.

VIPUL KHANDHAR

CHARTERED ACCOUNTANTS KHANDHAR & ASSOCIATES

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