GST WEEKLY UPDATE :30/2024-25 (27.10.2024)

1. Advisory for GST REG-07:

In pursuance the advisory issued on October 13 regarding the “New GST provision for metal scrap transactions,” the GST portal has been updated to facilitate registration compliance for buyers of metal scrap through form GST REG-07.

Taxpayers in this category are required to select “Others” in Part B of Table 2 under the title “Constitution of Business” section.

Please note that this entry is a mandatory field for those selecting “Others” in Table 2.

Once this is completed, the remaining details in the GST REG-07 form must be filled and submitted on the common portal to comply with registration requirements as per Notification No. 25/2024 – Central Tax, issued on October 9, 2024.

2. Rule 47A of the CGST Rules – Effective from 1st November 2024:

1. Section 31(3)(f) – Requirement to Issue Self-Invoice in RCM Cases:
   1. This section mandates that when a registered recipient of goods or services is liable to pay tax under the Reverse Charge Mechanism (RCM), the recipient must issue a self-invoice.

2. Section 9(3) – Reverse Charge on Notified Goods and Services:

• This section provides for Reverse Charge Mechanism (RCM) on specific categories of goods and services, which are notified by the government.
  • In these cases, the recipient of the goods or services is liable to pay GST instead of the supplier. Examples include:
    • Legal services from advocates
    • Services provided by transportation agencies
    • Purchase of certain goods such as cashew nuts from agriculturists

3. Section 9(4) – Reverse Charge on Purchases from Unregistered Persons:

4. Section 13 – Time of Supply for Services under RCM:

• Section 13(3) specifies that the time of supply for services under RCM will be the earlier of:
  • The date of payment (recorded in the recipient’s books or when debited in the bank)
  • 60 days from the invoice date (if issued by the supplier)
  • The date of issuing the self-invoice (if applicable)

RCM Invoice Format contain following details: as per section 31(3)(f):

S. No	Details
1	Name, address, and GSTIN of the supplier
2	Invoice number and date
3	Name, address, and GSTIN of the recipient
4	Description of goods or services supplied
5	HSN or SAC code
6	Quantity and unit of measure
7	Taxable value and rate of tax
8	Amount of tax payable by the recipient
9	Signature of the supplier or authorised representative

The table above outlines the necessary information that must be included in an RCM Invoice Format, including details such as the supplier and recipient’s name, address, and GSTIN, as well as the taxable value and rate of tax.

Self invoice require to be made for the following service by the registered dealer:

• Goods Transport Agency (GTA) service.
• Legal Services: Services by individual advocates or law firms to business entities, including representational services.
• Arbitral Tribunal Services: Services provided by arbitral tribunals to businesses.
• Sponsorship Services: Sponsorships given to corporate bodies or partnership firms.
• Director’s Services (Non-remunerative): Services provided by directors to the company or corporate body.
• Insurance and Recovery Agent Services:
• Government Services to Business Entities:
• Transfer of Development Rights and Long-Term Lease.
• Copyright Services,
• Direct Selling Agents (DSAs).
•  Business Facilitator and Correspondent Services:
• Security Services,
• Motor Vehicle Rental:
• Securities Lending.
• Renting of immovable commercial property.

3. Important Decisions:

         (i) Hon’ble Highcourt Decision Regarding the consolidation of multiple years into a single notice is held to be improper

The Karnataka High Court in the case of M/S. VEREMAX TECHNOLOGIE SERVICES LIMITED   WRIT PETITION NO. 15810 OF 2024 (T-RES) dated 04.09.2024, has held Section 73(10) of the CGST Act sets out specific time limits for issuing show cause notices related to tax dues for each financial year.

It relied on the Supreme Court’s decision in State of Jammu and Kashmir v. Caltex (India) Ltd. (AIR 1966 SC 1350), which established that assessments spanning different years must be treated separately, and each assessment order should be distinct.

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.