- GSTN enables New Functionality of Interest Calculator in GSTR-3B on GST Portal:
- This functionality will facilitate & assist the taxpayers in doing self-assessment. This functionality will arrive at the system computed interest on the basis of the tax liability values declared by the taxpayers, along with the details about the period to which it pertains.
- The interest applicable, if any, will be computed after the filing of the said GSTR-3B and will be auto-populated in the Table-5.1 of the GSTR-3B of the next tax-period.
- The facility would be similar to the collection of Late fees for GSTR-3B, filed after the Due date, posted in the next period’s GSTR-3B.
- This functionality will inform the taxpayers about the manner of system computed interest for each tax-head and hence will assist the taxpayers in doing correct computation of interest for the tax liability of any past period declared in the GSTR-3B for the current tax period.
- The interest computed by the system has been aligned with the Section-50 of the CGST Act, 2017, as amended. Consequently, interest liability for respect of supplies made during the tax-period pertaining to the GSTR-3B being filed will be calculated only on that portion of the tax which is paid by debiting the electronic cash ledger, i.e., net tax paid in cash.
- However, with respect to the supplies pertaining to the previous tax- period(s) being declared in later GSTR-3B, the interest will be computed for the entire liability.
2. Warning Alert In GST Portal About Registration Suspension If Variance Of Liability (3B vs 1) or ITC (3B vs 2B) is more than 10%:
- Where liability declared in GSTR 3B varies significantly with GSTR 1 or where ITC taken in GSTR 3B varies significantly from GSTR 2B indicating contravention, registration shall be suspended – Rule 21(2A) of CGST Rule 17.
- If one could remember, as per Notification 94/2020 dated 22nd December 2020, a new sub-rule 2A has been inserted in Rule 21A of the Central Goods and Services Tax (CGST) Rules.
- Any significant differences or anomalies observed between the GSTR-3B and the GSTR-1/2B could lead to suspension of GST registration.
- Further, if these differences remain unexplained, the GSTIN could get cancelled.
- The tolerence limit has been kept at 10% in both cases by GSTN as per the alert message.
- The taxpayer can check the comparison / variances post login by navigating through Services–>Returns–> Tax liabilities–>and ITC Comparison–> Select year (period).
3. New Functionality “LIABILITY PAID PERCENTAGE” enabled by GSTN it can be accessed under Search Taxpayer tab after login to GSTN Portal it shows quantum of liability auto populated from GSTR-1 that was declared/paid in GSTR-3B
- GST Aadhaar Authentication needed:
- W.e.f. 01.01.2022, otherwise dealer cannot file refund & new registration application:
- IGST (Export) refund in Automatic route:
- ITC refund in export
- ITC refund in Inverted duty
- New Registration WILL BE STUCK until Report this ad Primary Authorized Signatory’s Aadhaar is not AUTHENTICATED.
5. Procedure to pay service tax/central excise arrears:
First user has to Login to Service Tax/Central Excise portal i.e. cbic-gst.gov.in using their login credentials. After log in, user has to create challan and click on “Make Payment” that will redirect user to ICEGATE portal for further processing. Complete Steps for making payment at ICEGATE portal are as follows:
- Once the User clicks on MAKE PAYMENT at ACES GST, SEZ or ECCS Online Application, the taxpayer is redirected to the ICEGATE e-Payment web page, where four inputs are required to be entered i.e. Duty Type, Document Type, Location, Identification Number.
- Select “Central Excise/ Service Tax” or “SEZ Custom Duty” or “ECCS” for Duty Type, relevant Doc code for Document Type, Location Code for Location, enter the Registration Number for Identification Number and then enter captcha and click on submit. (Location code can be traced through challan that was created from Service Tax/Central Excise Portal).
- On clicking Submit, the user is directed to a page displaying the list of unpaid challans for the particular Registration number.
- On the List of unpaid challans page, the user can select up to a maximum of 10 Challans and confirm the challans for payment by clicking Confirm Challan.
- On clicking Confirm Challan, the user is directed to List of selected challans page showing the details of selected challans. To make the payment the of the total amount, click Pay Now or Back to select another group of challans.
- On clicking Pay now, the user is directed to Payment Options page showing the modes of payment. To make the payment the user can select NEFT or RTGS and click Generate Mandate Form.
- On clicking Generate Mandate Form, the user is directed to Mandate Form Details page showing the details required to make the NEFT/RTGS payment. The User can use the details to make an online payment or save a copy to pay at any bank branch by clicking Print/Save.
- The User can use the mandate form details to make an online payment through his personal/ corporate Internet Banking Portal and following the procedure to make an NEFT/ RTGS payment. For further assistance at banks User may get in touch with banks customer service.
- After the payment has been made at the bank, the user can check the status of his payment on the Enquiry page of the module and entering the relevant inputs.
- A successful payment will be integrated at ICEGATE and status “Success” will be shown. For an unpaid transaction, if the user has misplaced his Mandate form, it can be downloaded from the Action button of enquiry page.
6. Important Judgements & AARs:
(i) AAR On No GST payable on Services of providing of Artificial Teeth, Crown, Bridges falls only when the same are provided as Health Care:
(Applicant – Jyoti Ceramic Industries Pvt Ltd)
Applicant manufactures Zirconium Oxide Ceramic Dental Blanks from clinical-grade raw materials which have been classified by the applicant under chapter heading 69091200 of the erstwhile Central Excise Act and also under the GST regime. The applicant has submitted that the said product is used in dentistry for artificial teeth and should therefore be covered under the same HSN as artificial teeth i.e. 9021of the GST Tariff.
The AAR held that, the Product namely “Zirconium Oxide Ceramic Dental Blanks” in different sizes as sold by Applicant are classifiable under Chapter Heading 69091200 & Services of providing of Artificial Teeth, Crown, Bridges falls under Chapter Heading 999312, attracting Nil rate of GST only when the same are provided as Health care Services and not as a Cosmetic Services.
The services of bleaching of teeth and dental veneers for smile designing provided by dental clinic of Applicant to its patients falls under Chapter heading 999722 at 18% GST.
(ii) AAR On No GST on cash discount for early payments by dealer:
(Applicant- Mahaveer Prasad Mohanlal)
The applicant, is wholesale trading of rice and pulses and dealer of ‘India Gate Basmati Rice.’ The supplier offers him a cash discount if payment is made before the due date or within certain days from the invoice date. Then, there is a target incentive.
The applicant sought advance rulings on whether he can avail the Input Tax Credit (ITC) of the full GST charged on the invoice of the supply or a proportionate reversal of the same is required in case of post-purchase cash discount (for early payment of supply invoices (bills) given by the supplier of goods to the applicant without adjustment of GST) or Incentive/schemes (provided through credit note without adjustment of GST by the supplier). He also wanted to know whether GST will be applicable on cash discount incentives/schemes offered by suppliers to the applicant through credit notes without adjustment of GST.
After going through submissions, facts and arguments, AAR held that the applicant could avail the Input Tax Credit of the full GST charged on the invoice of the supply and no proportionate reversal of ITC is required in respect of commercial credit note issued by supplier for Cash discount for early payment of supply invoices (bills) and Incentive/schemes provided without adjustment of GST, if the said discount is not covered under Section 15(3)(b) of CGST Act, 2017 (Related with inclusion of discount in the valuation of supply) and the said discounts is not in terms of prior agreement. “This is subject to the conditions that the GST paid for the said goods/service is not reversed or reimbursed/re-credited by the supplier to the cant in any manner,” it said
It also held that since the amount received in the form of the credit note is a discount and not a supply by the applicant to the supplier, no GST is leviable on the receiver on cash discount/incentive/schemes offered by the supplier to the applicant through credit note against supply without adjustment of GST.
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.