Tag: latest gst portal news

Latest GST News, Information, Notifications & Announcements [Period 11/06/24 to 17/06/24]

GST WEEKLY UPDATE :16/2024-25

1.     Goa GST Department Reconstitutes Appellate Authority Jurisdictions under the Goa GST Act:

The Goa GST Department issued an Order vide No. CCT/26-2/2024-25/82/993 dated June 13, 2024, reconstituting the Appellate Authority under the Goa Goods and Services Tax Act, 2017 (“the Goa GST Act”). Commissioner of State Tax hereby specify the jurisdiction of the Appellate Authority as under: – 

Sr. No.Appellate Authority under Rule of the Goa G.S.T. Rules, 2017Authority specifiedJurisdiction
1234
1.109A (1) (a) where decision or order is passed by the Deputy CommissionerAdditional Commissioner of State Tax-I (North)North Goa District.
2.109A (1) (a) where decision or order is passed by the Deputy CommissionerAdditional Commissioner of State Tax-II (South)South Goa District.
3.109A (1) (b) where decision or order is passed by the State Tax Officer or the Assistant State Tax OfficerDeputy Commissioner of State Tax in-charge of Appeals SectionEntire State of Goa.

2.     CBIC urges public to discern the modus operandi of fraudsters, protect their information, verify antecedents of caller and report such acts by staying alert:

Various incidents have come to light through news portals/social media platforms of fraudulent persons posing as Indian Customs officers cheating the public of their hard-earned money across the country. These frauds are primarily done using digital means like phone calls or SMS, and are focused on extracting money through the ‘purported’ fear of immediate penal action.

In order to counter these frauds through public awareness, Central Board of Indirect Taxes and Customs (CBIC) is mounting a multi-modal awareness campaign that includes:

  • Newspaper advertisements
  • SMS/Emails to the general public
  • Social Media Campaigns

Public awareness campaigns by CBIC field formations across the country in coordination with local administration and trade bodies to spread awareness on this issue. 

3.     CBIC advises the public to take the following measures to safeguard themselves from becoming a victim of such scams by:

  • DISCERN: Indian Customs officers never contact the general public via phone, SMS, or e-mail for payment of duty in private accounts. Disconnect calls and never respond to messages, if you suspect fraud or encounter any irregularities. 
  • PROTECT: Never share or disclose personal information (Passwords, CVV, Aadhar number, etc.), or send money to unknown individuals or organizations without verifying their identity and legitimacy.
  • VERIFY: All communications from Indian Customs consist of a Document Identification Number (DIN), which can be verified on the CBIC website:
  • REPORT: Immediately report such cases to www.cybercrime.gov.in or helpline number 1930.

Some of the common modus operandi used by fraudsters are:

  • Fake Calls/SMS: Fraudsters posing as Courier officials/staff contact via calls, text messages or emails claiming that Customs have held a package or parcel and requires payment of Customs duties or taxes before it can be released.
  • Pressure Tactics: Fraudsters impersonating Customs/Police/CBI officials demand payment of Customs duty/clearance fees for packages/gifts that purportedly have been received from a foreign country and require Customs clearance. Targeted individuals are asked to make payments for the release of their goods.
  • Demand of Money: Targeted persons are informed that their package has been seized by Customs due to illegal contents (such as drugs/foreign currency/fake passport/contraband items) or violations of Customs regulations. Fraudsters threaten legal action or fines and demand payment to resolve the issue.

4.     AAR & Important Judgements:

(i) The Hon’ble Kerala High Court Decision Regarding Notification extending the period of limitation for issuance of Show Cause Notice upheld:

(Applicant – Faizal Traders)

The Hon’ble Kerala High Court in the case of Faizal Traders Private Limited v. Deputy Commissioner, Central Tax and Central Excise, Palakkad [WP (C) No. 24810 of 2023 dated February 07, 2024] wherein the Hon’ble High Court upheld the Notifications relating to extending the period of limitation to COVID-19 for issuance of Show Cause Notice by invoking the powers under Section 168A of the Central Goods and Services Tax Act, 2017 (“the CGST Act”).

(ii) The Hon’ble Calcutta Highcourt Decision Regarding Appeal can be accepted after one month from the prescribed period of limitation:

(Applicant – Sushil Kumar Hazra)

The Hon’ble Kerala High Court in the case of Faizal Traders Private Limited v. Deputy Commissioner, Central Tax and Central Excise, Palakkad [WP (C) No. 24810 of 2023 dated February 07, 2024] wherein the Hon’ble High Court upheld the Notifications relating to extending the period of limitation to COVID-19 for issuance of Show Cause Notice by invoking the powers under Section 168A of the Central Goods and Services Tax Act, 2017 (“the CGST Act”).

(iii) CAAR On Classification of Roasted Areca Nuts and Cashew Nuts: CAAR Mumbai:

(Applicant – M/s TMK TRADERS)

In the instant application, the applicant has submitted that they are intending to import `Oven Roasted Areca Nuts’ from Burma, Indonesia, Sri Lanka and Thailand and ‘Oven Roasted and salted Cashew Nuts’ from Vietnam, Thailand and Malaysia. I find that names of these countries except the name of Sri Lanka are mentioned in the Appendix-I of the said notification. However, the name of I3urma is mentioned as Myanmar. Further, it is quite obvious from the said notification that at Sr. No. 172 exemption is extended to all goods classified under sub-headings from 2007 10 to 2008 20 and from the above discussions and findings, it is now settled that ‘Oven Roasted Areca Nuts’ and ‘Oven Roasted and salted Cashew Nuts’ merit classification under sub-heading 2008 19.

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.

Latest GST News, Information, Notifications & Announcements [Period 13/02/24 to 19/02/24]

GST WEEKLY UPDATE : 47/2023-24 (18.02.2024)

  1. GST Clearance Certificate from department procedure for tender submission:

Documents Required for Obtaining a GST Clearance Certificate

Acquiring a GST Clearance Certificate necessitates a specific set of documents. These documents are vital in demonstrating your commitment to GST compliance. The required documents include:

  1. Photographs of Authorised Signatories: As with any official documentation, photographs of the authorized signatories are crucial to verifying the legitimacy of your application.
  2. Identification and Address Proof of the Authorized Person: The person designated by the partners to handle GST matters must provide identification and address proof to confirm their identity and residence.
  3. For Limited Liability Partnerships (LLP): If your business structure is an LLP, you will need to furnish additional documentation, including the registration certificate of the LLP and a board resolution attesting to your pursuit of a GST Clearance Certificate.

Process for application:

Obtaining a GST Clearance Certificate may seem like a complex process, but it can be broken down into a few key steps:

  1. Submit Return Copies: Begin by submitting copies of your filed GST returns. This step ensures that your financial records are up-to-date and compliant with GST regulations.
  2. Contact Assessing Officer: Alternatively, you can directly approach the Assessing Officer of your GST jurisdiction. It is essential to have a clean GST filing history with no outstanding dues to facilitate the process.
  3. Provide Information: When making your request, include your full name, address, and GST number. This information is crucial for the authorities to process your application.
  4. Certification Request: Draft a formal letter addressed “To Whom It May Concern.” This letter explicitly requests the issuance of the GST Clearance Certificate, citing your compliance with GST regulations.

On approval download Your GST Clearance Certificate?

Downloading your GST Clearance Certificate is a straightforward process:

  1. Visit the GST Portal: Start by visiting the official GST portal at www.gst.gov.in. This portal is your gateway to accessing a multitude of GST-related services.
  2. Log In: Use your correct login details to access your account on the GST portal. Ensure that your credentials are accurate to avoid any hiccups in the process.
  3. Navigate to “Services”: Once logged in, proceed to the “Services” section of the portal. You will find various user services catering to your GST-related needs here.
  4. View/Download Certificates: Within the “User Services” section, select “View/Download Certificates.” This action will lead you to a comprehensive list of certificates issued by GST tax authorities, all neatly arranged in descending chronological order.
  5. Download Your GST Clearance Certificate: Locate the GST Clearance Certificate you require and proceed to download it. The document will be available in a format that is easy to store and share as needed.

The GST Clearance Certificate is a critical document for businesses in India, serving as a testament to their adherence to GST regulations. Obtaining and downloading this certificate involves a structured process that, when followed diligently, can unlock a world of business opportunities.

  1. GST Portal Alert: File Form CMP-02 to opt for Composition Levy Scheme by March 31, 2024:

The Goods and Services Tax Network (GSTN) has issued an announcement, stating that taxpayers can opt for the GST Composition Levy Scheme by filing Form CMP-02 in the Goods and Services Tax Portal by March 31, 2024. The Goods and Services Tax composition levy is an alternative method of levy of tax designed for small taxpayers whose turnover is up to Rs.75 lakhs (Rs. 50 lakhs in case of few States). The objective of the GST composition scheme is to bring simplicity and to reduce the compliance cost for the small taxpayers.

3. DOR, MOF, invites applications for appointment to the posts of the Judicial Members, Technical Members (Centre) and Technical Member (State) in Principal Bench and States Benches of GST Appellate Tribunal:

Eligible candidates are required to apply online and application portal would be accessible from 19.02.2024 until 1700 Hours on 31.03.2024

The Department of Revenue (DoR), Ministry of Finance has invited applications for appointment to the posts of the Judicial Members, Technical Members (Centre) and Technical Member (State) in the Principal bench and States benches of GST Appellate Tribunal (GSTAT).

GSTAT is the second Appellate Authority established under the Central Goods and Services Tax Act, 2017 (CGST Act) to hear various appeals under the said Act and the respective State/UT GST Acts. GSTAT will have one Principal Bench located at Delhi and 31 State benches located at various locations across States.

Details of posts and eligibility in brief are given below:

Name of the PostNo of PostsEligibility
Judicial Member63Judge of the High Court, orServing or retired District Judge or Additional District Judge with 10 years of combined experience, orLawyers with 10 years of experience with substantial experience in litigation in matters relating to indirect taxes
Technical Member (Centre)32Officers with at least 25 years of experience in Group A inIndian Revenue Service (Customs and Indirect Tax), orAll India Service with at least 3 years in indirect taxes or finance and tax in the Central Government.
Technical Member (State)1Officers with at least 25 years of experience in Group A or equivalent inthe State Government not below the rank of Additional Commissioner of VAT of SGST, orAll India ServiceWith at least 3 years in indirect taxes or finance and tax in the State Government.

Minimum age to apply is 50 years (as on last date of application). Pay is ₹ 2,25,000 (fixed) per month. All other allowances and other terms and conditions of service (DA, Medical etc.) shall be the same as applicable to Central Government officers carrying the same pay (presently an officer at Pay Level 17).

Further details about the eligibility and other details are mentioned in the vacancy circular published in the DoR website (https://www.dor.gov.in/gstat-recuitment). Eligible candidates are required to apply online, details of which are also available on the DoR website. Online application portal would be accessible from 19.02.2024 and shall be open until 1700 Hours on 31.03.2024. Interested candidates may go through details posted on the website and apply online as per their eligibility and the procedure mentioned therein.

The Government shall appoint the Members on the recommendations of a Search-Cum-Selection Committee. The Applications received would be scrutinised with respect to suitability of application for the posts having regard to the qualifications and relevant experience of candidates. Shortlisted candidates may be called for personal interaction by the Committee, if deemed necessary and proper. The Committee shall recommend a panel of suitable candidates, on the basis of overall evaluation, to the Government to make the appointments.

4. AAR & Important Judgements:

(i) Hon’ble Madras Highcourt Decision Regarding CA Certificate is required to be considered by the department before  disallowing the claim of ITC:

(Applicant – Ingram Micro India (P) Ltd)

The Hon’ble Madras High Court in the case of Ingram Micro India (P.) Ltd. v. State Tax Officer [Writ Petition No. 594 of 2024 dated January 12, 2024] held that the Assessing Authority did not apply their mind before drawing conclusions and failed to consider the certificate issued by a Chartered Accountant and all documents submitted by the Assessee. Hence, the Impugned Order was remanded for reconsideration.

Issue:

Whether a Certificate from Chartered Accountant is required to be considered by the department while disallowing the claim of ITC?

Held:

The Hon’ble Madras High Court in Writ Petition No. 594 of 2024, held as under:

  • Observed that, all relevant documents were provided by the Petitioner in the reply.
  • Noted that, the contentions of the Respondent stating that the entire trade payables of the Company across India should be taken as the trade payables because the Petitioner did not provide Tamil Nadu financial statements are wrong. Under the Companies Act 2013, every company is required to file financial statements regarding all of its operations, and there is no provision for filing state-specific financial statements. However, the Petitioner had submitted a certificate from a Chartered Accountant stating that the trade payables attributable to the State of Tamil Nadu are Rs. 1816.48 million. Learned counsel for the Petitioner also submits that the Petitioner would provide all the invoices issued by the suppliers with regard to the aggregate sum of Rs. 1816.48 million.

Held that, the Respondent did not apply its mind before drawing the conclusions. Consequently, the matter was remanded for reconsideration by the Respondent. Hence, the Impugned Order was quashed, and writ petition was allowed.

(ii) Hon’ble Highcourt Decision Regarding Penalty has not been leviable in the absence of E-way bill until the department proves intention to evade tax:

(Applicant – Falguni Steels)

in the case of M/s. Falguni Steels v. State of Uttar Pradesh and Ors. [Writ Tax No. 146 of 2023 dated January 25, 2024] held that mere technical errors, without having any potential financial implications, should not be the grounds for imposition of penalties. The Court emphasized that there must be an intention to evade tax. Therefore, if a penalty is imposed in the presence of all the valid documents, even if an E-Way Bill has not been generated, and there is the absence of any determination to evade tax, the penalty cannot be sustained.

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.

Latest GST News, Information, Notifications & Announcements [Period 26/12/23 to 01/01/24]

GST WEEKLY UPDATE : 40/2023-24 (01.01.2024)

  1. Date extension for reporting opening balance for ITC reversal:

1.  In order to facilitate the taxpayers in correct and accurate reporting of ITC reversal and reclaim thereof and to avoid clerical mistakes, a new ledger namely Electronic Credit and Re-claimed Statement was introduced on the GST portal. This statement was made available to help the taxpayers in tracking their ITC that has been reversed in Table 4B(2) and thereafter re-claimed in Table 4D(1) and 4A(5). Kindly click here for the detailed advisory provided earlier.

2.  Now to facilitate taxpayers further, opportunity to declare opening balance for ITC reversal in the statement has been extended till 31st January, 2024.

3.  Kindly note that after declaring the opening balance for ITC reversal, only three amendment opportunities post the declaration will be provided to correct declared opening balance in case of any mistakes or inaccuracies in reporting.

4.  Facility to amend declared opening balance for ITC reversal will be available till 29th February, 2024.

2. Time limit extended for issuance of SCN and passing of order in non-fraud cases for FY 2018-19 and 2019-20:

The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 56/2023–Central Tax on December 28, 2023, to extend the time limit specified under Section 73(10) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”). This extension pertains to the issuance of orders under Section 73(9) of the CGST Act, which involves the recovery of tax not paid, short paid, or input tax credit wrongly availed or utilized for the financial years 2018-19 and 2019-20.

In exercising the powers conferred by relevant sections of the CGST Act, the CBIC has partially modified previous notifications (No. 35/2020, No. 14/2021, No. 13/2022, and No. 09/2023) and extended the time limit for passing orders under Section 73. The extension is granted based on the recommendations of the Council and is applicable as follows:

(i) For the financial year 2018-19, the time limit for issuing orders is extended up to the 30th day of April 2024.

(ii) For the financial year 2019-20, the time limit for issuing orders is extended up to the 31st day of August 2024.

This extension provides additional time for the authorities to take necessary actions for the recovery of taxes or input tax credit related to the specified tax periods.

3.    GSTN enables Much-Awaited Feature for Online Filing of Annexure-V by Newly Registered GTAs Opting for Forward Charge:

The GSTN has introduced the much-awaited feature to file Annexure-V online on the GST Portal. This option is specifically designed for newly registered Goods Transport Agencies (GTAs) opting for Forward Charge.

The new facility allows users to upload manual Annexure-V, which might have been submitted to the jurisdictional office before the commencement of the online filing option. If you are a GTA providing services and wish to pay tax under Forward Charge for the current financial year and beyond, filing your declaration Annexure V Form by January 28, 2024, is essential. By selecting “YES,” you will be directed to the Annexure V Form. If you are not involved in providing GTA services or prefer to pay tax under Reverse Charge, you can choose “NO.” It’s important to note that the Annexure V Form can also be accessed through Dashboard > Services > User Services > GTA > Opting Forward Charge payment by GTA (Annexure V).

4.   Software for Automated Notice Generation: Assam GST Department Issues Instructions on IIT Big Data Software:

The Assam GST Department has issued Instruction No. 13/2023-GST dated December 26, 2023 regarding notice issued based on IIT Big Data Software.

No. CT/GST-40/2020/108.- 

In those cases, where audit proceedings have been completed, the notices again given using IIT Big data software needs to be dropped.

The cases where return scrutiny proceedings have been completed and notices again issued using IIT Big data software, needs to be dropped to the extent of para which are already covered in previous notice.

The cases where advisory/summons proceedings have been completed and notices again issued using IIT Big data software, needs to be dropped to the extent of para which are already covered in advisory/summons proceeding.

The cases where the proceedings are initiated or going on u/s. 74, then notice issued using IIT Big Data Software needs to be dropped subject to information given to concern officials for inclusion of such para in their proceedings.

The cases where voluntary payment have been made in DRC-03 or where DRC-07 had been issued, on such grounds then notices issued using IIT Big Data needs to be dropped after due verification.

The cases where, only invoices were issued without movement of goods, in those cases proceedings are to be done u/s 122 and notice issued using IIT Big data needs to be dropped.

In cases of blocked credit u/s 17(5) where system generated HSN / SAC Code were used to issue notices it may be possible that credit may be eligible to such taxpayer involved in the business of same goods / services. (For example, taxpayer involved in the business of trading of vehicle, then such taxpayer is eligible for credit on purchase of vehicle). In such cases, Proper Officers shall examine relevant facts along with supporting records and take decision on case to case basis, in accordance with law.

In those cases, where ITC reversals under Rule 42/43 in respect to non-business transactions or exempt supply is applicable, then due verification needs to be verified as per notice issued. Further, on purchase and sale of exempted supplies, ITC reduction under rule 42/43 to be carried out based on actual turnover as per return filed and due process of verification to be followed. In no case, any clarification shall be obtained from the taxpayer, unless it is under exceptional circumstances.

With respect to above mentioned criteria, where notices are not required to be dropped then in those cases, notice shall be served in appropriate manner. An opportunity of being heard is to be given to the taxpayer and proceeding to be concluded in time bound manner.

The above instructions shall be followed strictly. The cases where the notices are required to be dropped then, neither any written submissions is to be called for nor a taxpayer is required to be called for any personal hearing. In such cases, the Proper officer after recording reasons shall drop the proceedings on the basis of facts and contents of each cases. A taxpayer must be informed about dropping of proceeding without fail, wherever applicable.

All Proper Officer must strictly adhere to the legal provisions and relevant guidelines/circulars in this regard. Strict action will be taken for non-compliance. Moreover, it should be ensured that no harassment is caused to any taxpayer and due tax is received by the department.

5. GSTN Unveils New Features to GST Portal:

The GST portal was amended with the new features.  The portal Introduces the new feature for addressing Grievances against Payment (GST PMT-07) system, giving users the power to swiftly address payment-related concerns.

6. AAR & Important Judgements:

(i) Gujarat High Court to examine the validity of Notification extending period for issuance of SCN u/s 73 of the CGST Act:

(Applicant – Rajkot Nagarik Sahakari Bank Ltd)

The Hon’ble Gujarat High Court heard the case of SRSS Agro Pvt. Ltd. v. Union of India [R/Special Civil Application No. 19720 of 2023] on November 10, 2023.

M/s. SRSS Agro Pvt. Ltd. (“the Petitioner”) filed a writ petition contending that, Notification No. 09/2023- Central Tax dated March 31, 2023, wherein the time limit specified under Section 73 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) has been extended is unjustified as the extension of time limit can be made under special circumstances only. Also, once the period has been extended vide Notification No. 13/2022-Central Tax dated July 5, 2022, no subsequent extension can be made.

The Court directed that the Petitioner shall be granted time if the Petitioner asks time for filing a reply to the Show Cause Notice.

The Court issued a Notice to the Respondent which is returnable on November 30, 2023. Further, the next date granted by the Court in the aforementioned matter is January 12, 2024.

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.

GST Network (GSTN) Seeks Consultancy Firm for Transition to GST 2.0: Preparing for the Next Chapter

With Infosys’ contract for providing technology support for Goods and Services Tax (GST) ending in September 2024, GST Network (GSTN) has started scouting for a consultancy firm to prepare the bid document for the selection of a new service provider and a roadmap for transitioning the system capacity to the next level — GST 2.0.

The consultancy firm would have to ensure a competitive bidding process and a seamless transition of the IT service backbone of GSTN to another technology company, who would be providing the software and hardware required in GST systems for the next seven years beginning October 1, 2024.

The scope of work of the consultancy firm would include preparing a request for proposal (RFP) document by evaluating the present system, based on the experience of the GST technology system of the past seven years, and provide a roadmap for enhancement and operations for the next contract period.

Indirect tax reform, GST, was introduced in India on July 1, 2017.

Prior to the GST rollout, in September 2015, Infosys was awarded a Rs 1,320-crore contract for developing the technology backbone for GST Network.

The IT bellwether outbid TCS, Wipro, Tech Mahindra and Microsoft to bag the contract which involved setting up a database for the new tax regime, enrolment, registration, end-to-end automation, besides providing a system for claiming refunds and credits.

Infosys has been providing necessary IT infrastructure support for GST registration, return filing, tax payment by businesses, as well as audit by tax officers.

The contracted period of the current Managed Service Provider (MSP), for development, enhancement and operations of the GST System, is nearing its completion. Hence, GSTN intends to execute a competitive bid to finalize a MSP for operating the GST System through the next term of 7 years starting 1st October 2024,” the GSTN said ..

An email seeking comments from Infosys on the above development did not elicit any response.

The consultant, to be appointed by GST Network would execute the competitive bidding process to select the MSP for GSTN and help in transitioning the operations from the incumbent MSP.

The consultancy firm needs to have an average annual turnover of Rs 30 crore in the last three years from IT consulting services or IT application development for indirect tax or direct tax or a finance system in India.

The deadline for putting in bids is September 5.

As a precursor to the appointment of a MSP, the consultancy firm would design, draft and create the detailed RFP, execute the bidding and selection process of the MSP for and on behalf of GSTN and enable the transitioning of the GST System to the selected MSP.

The mandate of the prospective MSP would be to introduce major improvements in the system capabilities and efficient monitoring ecosystem, and not limited to lift-and-shift of the existing GST System.

“The consultancy agency shall review the recommendations given by the technical review committee and determine the newer trends in technical space that can be incorporated in the RFP for GST System. Such requirements could be referred as GST 2.0 in terms of system capabilities,” the GSTN said.

The consultancy agency would consider the existing structure, past growth trend, changes made to the system from the original scope for the GST System, and the known government roadmap, like the changes being proposed by GST Council, Law Committee, etc. in the GST framework, to determine capacity sizing required to operate and enhance the GST System for the contract period.

While sufficient capacity is to be provisioned to operate for next 7 years considering various growth parameters, the consultancy agency shall also incorporate provision for the prospective MSP to stagger the infra augmentation plan over the duration of the project,” GSTN said.

Currently there are 1.28 crore registered taxpayers under GST. Since 2017, over 1,250 crore invoices have been uploaded on GST systems and over 67 crore returns have been filed.

Latest GST News, Information, Notifications & Announcements [Period 21/03/23 to 27/03/23]

GST WEEKLY UPDATE : 52/2022-23 (26.03.2023)

 1. Advisory for the taxpayer wishing to register as “One Person Company” in GST dt. 21/03/2023:
  • As per provision of section 2(62) of The Companies Act, 2013 “One Person Company” is defined as a company which has only one person as member.
  • Some issues have been raised by the persons registering as ‘One Person Company’ while they take GST registration. Upon analysis, it has been noticed that the option of choosing One Person Company is not there in form notified by CGST/SGST Acts and hence not available on the GSTN portal also.
  • As a work around, it is advised that in the ‘Part B’ of GST Registration Form ‘REG-01’, applicant may select (Constitution of Business under ‘Business Details’ tab using dropdown list) option “Others”, if the taxpayer wants to register for GST as “One Person Company”. After selecting option as “Others”, the applicant shall also mention “One Person Company” in the text field and follow the steps for a normal registration application to complete the process.
2. HSN Code Reporting in e-Invoice on IRPs Portal dt. 22/03/2023:

As per Notification no. 78/2020 – Central Tax dated 15th October 2020. As per the above-said notification, it is now mandatory for taxpayers to report a minimum of six-digit valid HSN code for their outward supplies having AATO of more than 5 crores in any previous financial year.

This requirement has already been implemented in the GST system, the E-invoice portal is now in the process of implementing the same at IRPs portal in collaboration with our IRP partners including NIC. It is further suggested that in case wherever valid six digit HSN code is not available, a corresponding valid eight digit HSN code be reported instead of artificially creating six digit HSN code.

They will communicate the exact date of implementation to us shortly.

3. GST Number To Professionals Working From Home:

Will the Minister of Finance be pleased to state:-

(a) whether it is a fact that Management consultants, Architects and other professionals operating from their homes are not allowed to get GST numbers for working from the residential premises;

(b) if so, the details thereof;

(c) whether it is a fact that post COVID-19 pandemic, most of senior professionals and consultants have started their professional activities under the Work from Home (WFH) concept; and

(d) if so, the steps Government is contemplating to allow all Professionals and Management Consultants to work from home and allot GST numbers?

ANSWER THE MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)
(a) to (c) The Central Goods & Services Tax Act, 2017 does not restrict GST registration of Management consultants, Architects and other professionals operating from residential premises, due to covid-19 pandemic or otherwise.
(d) Does not arise in view of above.
4. Restaurants can levy GST on service charges, says FinMin:

A provision in law permits restaurants to levy GST on service charges.

5. Advisory on New e-Invoice Portal

1. We would like to inform you that GSTN has on boarded four new IRPs (Invoice Reporting Portals) for reporting e-invoices in addition to NIC-IRP. As a result, the beta launch of a new e-Invoice portal (www.einvoice.gst.gov.in), has been done where taxpayers can find comprehensive information on e-invoice compliance in a user-friendly format, such as check your enablement status, self-enable themselves for invoicing, search for IRNs, web links to all IRP portals – all the relevant links/information in one convenient location. Taxpayers can log in to the new e-invoice portal using their GSTN credentials for select services pertaining to their GSTIN profiles.

2. Taxpayers may note that the portal <einvoice.gst.gov.in> is reference site for all masters (data), news and updates, latest releases etc. For registering e-invoices and to access APIs, you still need to go to <einvoiceX.gst.gov.in> sites. The urls of IRPs sites authorised to generate IRNs as on date are as follows:

URLURL Activation Status
<einvoice1.gst.gov.in>Active
<einvoice3.gst.gov.in>Shall be available soon
<einvoice4.gst.gov.in>
<einvoice6.gst.gov.in>

Also, at the helpdesk for e-invoice issues, for supporting the taxpayers vis-a-vis IRP issues is available at our Grievance Redressal Portal <selfservice.gstsystem.in> where the relevant IRP can be selected using the dropdown created for each of the private IRP.

3. Please note that taxpayers can continue to report e-invoices on the NIC IRP portal <einvoice1.gst.gov.in> as previously.

4. GSTN is committed to making your compliance journey as smooth as possible. If you have any questions or concerns, please do not hesitate to contact us.

6. AAR & Judicial Decisions:

(i) AAAR On Sale of small plots of land with development work is not taxable under GST:

(Applicant – M/s. Rabia Khanum)

AAAR, Karnataka, in the matter of M/s. Ms. Rabia Khanum [KAR/AAAR /02/2023 dated February 14, 2023] has upheld the advance ruling passed by AAR, Karnataka and held that the amounts received by the assessee due to the consideration, advance received on the sale of small plots which have the development work are not taxable under GST.  Stated that, the sale of land developed by the assessee falls under the scope of the term “sale of land” as mentioned in Entry 5 of Schedule III of the Central Goods and Services Tax Act, 2017 (“the CGST Act”), hence it is not taxable.

Held:

The AAAR, Karnataka in KAR/AAAR /02/2023 held as under:

  • Observed that, the Respondent owns a land and intends to develop the same with basic amenities required for human inhabitation and form small plots and sell them to individuals after obtaining necessary permission from the concerned Government authorities.
  • Noted that, the transfer of land ownership to buyers can only occur after the completion of development works overseen by the relevant authorities. The sale of land is the dominant intention, with development being incidental to it.
  • Stated that, in a plotted development, any amounts received from interested buyers are only advances for the purchase of land, not for the development works.
  • Further observed that, the Respondent is developing the land because it is required by law to sell the plots, not because the purchaser has requested any services. The development of the land is incidental to the sale of land, and any consideration received is only for the sale of the land. Hence, the Respondent provides no service to the buyer.
  • Further stated that, if the Respondent engages a third party to carry out the development activity or provides any additional development work beyond what is mandated by local authorities, that transaction will be taxable under GST as a service.
  • Noted that, as per the Impugned Circular, the sale of land, whether as it is or after some development work such as laying down drainage lines, water lines, electricity lines, etc., is covered under SI. No 5 of Schedule III of the CGST Act is not taxable under GST.
  • Relied on the judgment of the Hon’ble Supreme Court in the matter of Paper Products Ltd v. Commissioner of Central excise [1999 (112) ELT 765 dated August 24, 1999], wherein, it was held that Board’s circulars are binding on the Department and any action taken by the Department will have to be consistent with the circular which is in force at the relevant point of time therefore, the consideration received from prospective buyers whether as advances or full consideration is only towards obtaining a transfer in the title of the plot of land and hence not taxable under GST in terms of entry 5 of Schedule III of the CGST Act.
  • Held that, the sale of land developed by the Respondent falls under the scope of the term “sale of land” as mentioned in entry 5 of Schedule III of the CGST Act.
  • Upheld the Impugned Ruling.

Relevant Provisions:

Entry 5 of Schedule III of the CGST Act:

“Activities or transactions which shall be treated neither as a supply of goods nor a supply of services

(5.) Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building.”

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