Recent updates in GST

Summary of Recnet GST changes-1a7271b2

Summary of Recent updates in GST

  1. Important changes in QRMP Scheme
  2. Upcoming functionalities to be deployed on GST Portal
  3. GSTN enables Request for adjournment for Personal Hearing in GST portal
  4. Enabled mechanism to disallow use of same Certificate of Origin number in more than one Bill of Entry (BOE) in certain cases w.e.f. July 08, 2021
  5. Extended WFH facility for all SEZ Units under MEPZ SEZ up to December 31, 2021
  6. The DGFT issued Trade Notice 08/2021-22 dated July 08, 2021 w.r.t. acceptance, processing and issuance of claims under MEIS, SEIS,  ROSL, ROSCTL in the DGFT IT modules on hold for a temporary  period due to change in allocation procedure
  7. Recent AAR & Judicial Decisions pronouncement 

Recent updates in GST

1) Important changes in QRMP Scheme implemented on the GST Portal  for the taxpayers: 

  •  Auto population of GSTR-3B liability from IFF and Form GSTR 1A taxpayer under QRMP  Scheme can declare their liability through optional IFF for Month 1 and Month 2 of a quarter &  Form GSTR-1 for Month 3 of that quarter. Declaration of liability in these forms would now be auto-populated in their Form GSTR-3B (Quarterly) for that quarter, based on their filed Form  GSTR-1 and IFF. These fields are editable and in case their values are revised upwards or  downwards, the edited field(s) would be highlighted in red colour and a warning message will  be displayed to the taxpayer.
  •   Nil filing of Form GSTR-1 (Quarterly) through SMS Nil filing of Form GSTR-1 (Qtrly)  through SMS has been enabled for taxpayers under QRMP Scheme. However, NIL filing  through SMS can’t be done in following scenarios (i) If IFF for Month 1 or 2 of a quarter is in  Submitted stage, but not Filed, or (ii) If invoices are Saved in IFF for Month 1 or 2 of a quarter,  which was not submitted or filed by due date.
  •  Impact of cancellation of registration on liability to file Form GSTR-1 In case registration  of a taxpayer under QRMP Scheme is cancelled, with effective date of cancellation being any  date after 1st day of Month 1 of a quarter, they would be required to file Form GSTR-1 for the  complete quarter, as the last applicable return. For example if the taxpayer’s registration is  cancelled w.e.f. 1st of April, he/she is not required to file Form GSTR-1 for Apr-June quarter  and Form GSTR-1 for Jan-Mar Quarter shall become the last applicable return. However, if the  registration is cancelled on a later date during the quarter, the taxpayer would be required to  file Form GSTR-1 for Apr-June quarter. In such cases the filing will become open on 1st of  month following the month with cancellation date i.e. if cancellation has taken place on 20th  May, Form GSTR-1 for Quarter Apr-June can be filed anytime on or after 1st of June.

2)Upcoming functionalities to be deployed on  GST Portal for the Taxpayers in the month of  July, 2021:

As part of our constant endeavour to provide a smooth and hassle free experience to the taxpayers and simplify the process of meeting GST compliances, following changes were recently deployed/ would be deployed shortly, on the GST portal:

Sl.NoModuleForm/ FunctionalityFunctionality released/ to be released for TaxpayersCurrent status of deployment
1RegistrationTimelines for filing of Application for Revocation of Cancellation of Registration in Form GST REG-21♦ In view of the spread of pandemic COVID-19 across many parts of India, vide Notification No 14/2021-CT, dated 1st May, 2021, read with vide Notification No 24/2021-CT, dated 1st June, 2021, the Government had extended the date for filing of various applications falling during the period from the 15th April, 2021 to 29th June, 2021, till 30th June, 2021.  ♦ In addition to this, timeline for filing of Application for Revocation of Cancellation of Registration, which were due on 15th of April 2021, had also been extended till 30th June 2021 on the GST Portal. ♦ Accordingly, these extensions have now ceased to be effective w.e.f. 1st July, 2021, and timelines for filing of application for revocation of cancellation is now changed to 90 days (as was earlier) on the GST Portal, from date of Order of Cancellation of Registration in Form GST REG-19.Deployed on 1st July, 2021
2ReturnsInformation regarding late fee payable provided in Form GSTR-10♦ Taxpayers whose registration is cancelled, at the time of filing of last return in Form GSTR-10, will now be provided with details of late fee payable by them, for the delayed filing of any of the previous returns/ statements in a table, for their assistance in filing of said return by them.   ♦ This information can be viewed by clicking on a hyperlink provided under the column “Late Fee Payable” in the online Form GSTR- 10.
3ReturnsAuto-population of data in Form GSTR-11 on basis of Forms GSTR-1 / 5 filed by their suppliers♦ The UIN holders file details of their inward supplies in Form GSTR-11 on a quarterly basis. They can subsequently file for refund (if required) in Form GST RFD- 10, for the quarter, in which summary of the documents is auto-populated from their Form GSTR-11, in an editable mode   ♦ Form GSTR-11 of the UIN holder would be generated with details of their inward supplies, on basis of Forms GSTR-1 / 5 filed by their suppliers, which will subsequently help them in filing their refund claims

3) GSTN enables Request for adjournment for Personal Hearing in GST  portal:  

The GSTN have enabled the Request for an adjournment for Personal Hearing (PH) in the  Goods and Service Tax (GST) portal. Adjourns the personal hearing already fixed and enables  the next personal hearing. The officer has to select the date and time and issue a personal  hearing notice. Adjournments are limited to a maximum of three times. The request can be  filed by logging in the GST portal and filling up the details namely date of hearing and time of  hearing for personal hearing, request for an adjournment for personal hearing, the due date to reply to the Show Cause Notice, request for extension of the due date for replying to the Show  cause notice and upload the supporting documents.

4) Enabled mechanism to disallow use of same Certificate of Origin number in more than one Bill of Entry (BOE) in certain cases w.e.f. July 08, 2021:

The Office of the Pr. Commissioner of Customs (Ns– I), issued Public Notice No. – 64/2021 dated  July 07, 2021 for enabling additional checks for Certificate of Origin (“CoO”) Declaration in Bill  of Entry (“BOE”) on System.  

5) Extended WFH facility for all SEZ Units under MEPZ SEZ up to  December 31, 2021:  

The Madras Export Processing Zone (“MEPZ”) Special Economic Zone (“SEZ”), Chennai issued  Circular No. MEPZ/10/1/2009/IA1 dated July 08, 2021 to grant Work from Home (“WFH”)  facility for all SEZ Units under MEPZ SEZ up to December 31, 2021 or until further orders,  whichever is earlier.

6)The DGFT issued Trade Notice 08/2021-22 dated July 08, 2021 w.r.t.  acceptance, processing and issuance of claims under MEIS, SEIS,  ROSL, ROSCTL in the DGFT IT modules on hold for a temporary  period due to change in allocation procedure:  

Members of the Trade and Industry are informed that issuance of benefits/scrips under MEIS,  SEIS, ROSL and ROSCTL Schemes would be on hold for a temporary period due to changes in  the allocation procedure. During this period, no fresh applications would be allowed to be  submitted at the online IT module of DGFT for these schemes and all submitted applications  pending for issuance of scrips would also be on hold. Trade would be suitably informed, once  issuance of scrips is opened again. 

7) Recent AAR & Judicial Decisions:-  

(i) The Decision of Hon’ble Madras High Court Regarding Substantial benefit under  MEIS scheme cannot be denied for inadvertent human error: (Applicant – M/s K. I. International Ltd.) The Hon’ble Madras High Court in K.I. International Ltd. v. the Commissioner of Customs  (Appeal) [W.P. No. 16328 of 2020 dated June 23, 2021] set aside the order passed by the  Revenue Department rejecting the claim of the assessee that disentitled the assessee from  claiming the benefits under the Merchandise Export from India Scheme ( “the MEIS Scheme” )  and held that, the assessee will be entitled for such benefits and the shipping bills reveal a  clear intention of the assessee to avail benefit under the MEIS Scheme and directs the Revenue  Department to grant consequential benefits within 8 weeks.  

(ii) AAR On Engineering Design and Other Technical Advisory Services carried out in  India constitute a supply as ‘Intermediary Services’:   (Applicant –M/s. Airbus Group India Private Limited) The Karnataka Authority of Advance Ruling (AAR) ruled that the Engineering design and other  technical advisory services carried out in India constitute a supply as “Intermediary services”.  The applicant Airbus Group India Private Limited provides engineering design and other  technical advisory services which include marketing support, customer support services, flight  maintenance training, flight operations support, flight pilot training, etc. They also provide  maintenance, repairs and overhaul services, agency services, renting of assets and trading of  spares and parts of helicopters.   The applicant sought the advance ruling on the issue Whether the activities carried out in  India by the Applicant would constitute a supply of “Other support services” falling under HSN  code 9985 or as “Intermediary service” classifiable under HSN code 9961/9962 or any other  classification of services as specified under various Tariff entries of rate notification issued  under Goods and Services Tax law HELD The activities carried out in India by the Applicant  would constitute a supply as Intermediary services classifiable under SAC 998599.

(iii) AAR On 12% GST Payable on Banana/Jackfruits/ Tapioca/ Sarkaraupperi Chips: (Applicant –M/s. Aswath Manoharan)  Banana Chips are classifiable under Customs Tariff Heading 2008.19.40 and is liable to GST at  the rate of 12% [6% – CGST + 6% – SGST] as per Entry at Sl No. 40 of Schedule II of  Notification No.01/2017 Central Tax (Rate) dated 28.06.2017. Jackfruit Chips are classifiable under Customs Tariff Heading 2008.19.40 and is liable to GST at  the rate of 12% [6% – CGST + 6% – SGST] as per Entry at Si No. 40 of Schedule II of  Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.   Tapioca Chips are classifiable under Customs Tariff Heading 2008.19.40 and is liable to CST at  the rate of 12% [6% – CGST + 6% – SGST] as per Entry at Sl No. 40 of Schedule II of  Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.   Jaggery Coated Banana Chips [Sarkaraupperi] are classifiable under Customs Tariff Heading  2008.19.40 and is liable to GST at the rate of 12% [6% -CGST + 6% – SGST] as per Entry at S1  No. 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.  

(iv) AAR On No GST on payment of examination fee on behalf of students to AAPC as a  pure agent:   (Applicant – M/s. Cigma Medical Coding Pvt Ltd.)  The collection and payment of examination fee to AAPC by the applicant on behalf of the  students who are enrolled for training with the applicant is not liable to GST subject to  fulfilment of the conditions stipulated under Rule 33 of CGST Rules 2017.   The collection and payment of examination fee to AAPC by the applicant on behalf of outside  students (who are not enrolled for training with the applicant) without collecting any service  charge either from students or AAPC is not liable to GST for the reasons as detailed in Para 7.7  above.   This authority has no jurisdiction to issue ruling on the question as the question not being in  respect of any of the matters on which advance ruling can be sought, this authority is not  having jurisdiction to give ruling on the question.

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