Recommendations of 44th GST Council Meeting 12.06.2021
The Council in its meeting has decided to reduce the GST rates on the specified items being used in Covid-19 relief and management till 30th September, 2021.
Medicines
Tocilizumab from 5% to nil, Amphotericin from B 5% to nil, Anti-Coagulants like Heparin-12% to 5%,Remdesivir from 12% to 5%,Any other drug recommended by Ministry of Health and Family Welfare (MoHFW) and Dept. of Pharma (DoP) for Covid treatment from applicable rate to 5%.
Oxygen, Oxygen generation equipment and related medical devices,specific covid related testing kits including specified inflammatory Diagnostic kits namely D-Dimer, IL-6, Ferritin and LDH-, pulse oxymeters from 12% to 5%.
Hand Sanitizer, Temperature check equipment, Gas / Electric / other furnaces for crematorium, including their installation, etc.18% to 5%.Ambulances 12% from 28%.
No reduction of rates on vaccines.
TABLE-12 OF GSTR-1 (ADVISORY ON PDF) 08/06/2021
Table-12 of GSTR-1 pertains to the data related to the HSN-code wise supplies of goods & services declared in the aforesaid GSTR-1. It has been reported that in the GSTR-1 for the tax period of May 2021, the ‘Total Invoice value’ field in the preview PDF is displaying a value as ‘0’ (zero) instead of N.A, in the cases where the taxpayer has not reported any value in the concerned Table-12 of GSTR-1.
Editorial Note-Taxpayers are requested to kindly proceed with their filing of GSTR-1 & ignore this error for the time being, till it is being fixed, as per advisory issued by the Department.
UPCOMING FUNCTIONALITIES TO BE DEPLOYED ON GST PORTAL FOR THE TAXPAYERS 11/06/2021
Editorial Note-As part of our constant endeavour to provide a smooth and hassle free experience to the tax payers and simplify the process for them, to comply with their GST compliances, following functionalities are recently deployed or are being deployed on the portal shortly, e.g., Negative liability statement made available to composition taxpayers, Download of Form GSTR-4A in excel and auto-population of its details in Form GSTR-4 of the composition taxpayer, Inclusion of common names in the HSN Directory and its download in excel format by the taxpayers
PUBLIC NOTICE NO. 6/2015-2020, DATED 14-06-2021
Power of Cashew Export Promotion Council to issue Registration-Cum-Membership Certificate suspended: DGFT Notice
Editorial Note : Cashew Export Promotion Council of India’s power to issue or renew Registration-Cum-Membership Certificate (RCMC) for products falling under their jurisdiction are suspended. Now, the APEDA is designated as the agency authorised to issue RCMC for cashew kernels, cashewnut shell liquid and kardanol
CIRCULAR NO. D.O.NO.72/CH (IC)/2020, DATED 14-06-2021
Weekly Newsletter of CBIC Chairman Dated June 14th, 2021
Editorial Note : The CBIC Chairman has issued weekly newsletter on June 14th, 2021. In this newsletter, the officers are advised to handhold taxpayers and clear their doubts regarding beneficial measures such as those related to annual returns; amnesty scheme to provide relief to taxpayers regarding late fee for pending returns; rationalization of late fee etc.
TRADE NOTICE NO. 4/2021, DATED 16-06-2021
DGFT issued checklist for streamlining Anti-Dumping Investigation Process
Editorial Note : The Directorate General of Foreign Trade Policy has issued revised checklist for submission of anti-dumping duty and countervailing duty applications to DGTR for initiation of investigations.
INSTRUCTION NO. 14 /2021- CUSTOMS, DATED 21-06-2021
Central Revenues Control Laboratory (CRCL) module is seamlessly integrated with current modules of ICES Portal: CBIC Instruction.
Editorial Note : CBIC has advised all Custom Officers to mandatorily make use of the CRCL module to forward Test Memos for testing of
samples to CRCL and other Revenue Laboratories from 01.07.2021 onwards. DG Systems has enabled a ‘CRCL module’ in ICES with the objective of automating all paperwork related to sampling, forwarding of test memos to CRCL and other Revenue Laboratories, and electronic receipt of test reports, instantly by the Customs Officers.
CIRCULAR NO. 156/12/2021-GST, DATE 21-06-2021
CBIC issues clarification in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices
Editorial Note : The CBIC has received various references from trade and industry seeking clarification on applicability of Dynamic Quick Response (QR) Code on B2C (Registered person to Customer) invoices. Now CBIC has issued circular to provide clarification on those issues to ensure uniformity in the implementation of QR Code provisions.
CIRCULAR NO. 1078/02/2021 – CX, DATED 22-06-2021
Clarification on applicability of exemption from Excise duty in case the blending of petrol is done within the refinery
Editorial Note : CBIC issued clarification on applicability of Central Excise exemption on Ethanol/ Methanol blended Petrol, and High-speed diesel blended with bio-diesel, when blending is done within the refinery
Functionality to register complaint on misuse of PAN in GST Registration: GSTN Update
Editorial Note : To address the complaint related to misuse of PAN for obtaining GST registration, a functionality to register such complaints on GST Portal has been introduced. It will check the misuses, control the frauds and help officers in enquiry and cancellation of such registration.
NOTIFICATION NO. 34/2021- CUSTOMS, DATED 29-06-2021
Import duty on Crude Palm Oil reduced to 10% till 30 September, 2021
Editorial Note : The Government has issued notification to reduce the import duty on Crude Palm Oil and now 10% duty shall be leviable. This notification shall come into effect on 30th June 2021 and will remain in force upto and inclusive of the 30th September, 2021.
CIRCULAR NO. 12/2021 – CUSTOMS, DATED 30-06-2021
Transitional provisions under SCMTR Regulation 15(2) further extended till 31st July 2021 to enable submission of manifests under erstwhile regulations
Editorial Note : CBIC has issued Notification No. 56/2021 – Customs (N.T) dated 30.06.2021 to further extend the transitional provisions of Sea Cargo Manifest and Transhipment Regulations (SCMTR), 2018, till 31st July 2021 to enable submission of manifests under erstwhile regulations and to enable carriers continue mandatory filing on parallel basis.
RECENT JUDICIAL RULINGS ON GST SECTION 6 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – GST AUTHORITIES AND ADMINIS TRATION – STATE / UNION TERRITORY TAX OFFICERS, AUTHORISATION
As per section 6(2)(b) when a proceeding has been initiated by Central authorities, State cannot step into same, hence, summons issued by State GST, prima facie, in violation of section 6(2)(b) were to be stayed – Raj Metal Industries v. Union of India – [2021] 127 546 (Calcutta)
SECTION 54 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – REFUND – TAX
Where assessee filed writ petition seeking refund of export benefits along with interest under Section 16 of IGST Act, 2017 read with Section 54 of CGST Act, 2017, since claim of refund of export benefits was pending consideration and no final decision had been taken by respondents, revenue was to be directed to decide claim of refund of assessee as early as possible and practicable – Green Leaf Tobacco Products v. Principal Commissioner of Customs – [2021] 127 621 (Delhi)
SECTION 65B (44) OF THE FINANCE ACT, 1994 – SERVICE
Provision of food and drink to be taken-away in parcels by restaurants tantamount to sale of food and drink and does not attract service tax under Finance Act, 1994 – AnjapparChettinad A/C Restaurant v. Joint Commissioner, Office of the Commissioner of GST and Central Excise, Chennai – [2021] 127 620 (Madras)
SECTION 9 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – LEVY AND COLLECTION OF TAX
Where the petitioner entered into agreement with Tamilnadu water supply and drainage board for laying underground sewerage works for municipality on 25-1-2016 and contract price included cost factor, profit margin and tax component (TNVAT and Excise Duty) and rate of tax was 2% for civil works contract and 5% for other works contract but post GST implementation said rate has been enhanced to 12% GST and petitioner had requested the Board to rework the price component of the contract in terms of Formula set out by the Government order but since said request was not considered, it filed writ petition, High Court directed Board to calculate tax component in contract price and rework terms of contract and enter into revise agreement with petitioner – Subaya Constructions Company Ltd. v. Tamil Nadu Water Supply and Drainage Board. – [2021] 127 taxmann.com 504 (Madras)
SECTION 87 OF THE FINANCE ACT, 1994 – RECOVERY – OF SUMS DUE TO GOVERNMENT
Where petitioner had filed an appeal before First Appellate Authority against assessment order, whereby demand of service tax was created, along with mandatory pre-deposit, respondent-Department should have restrained itself from coercive recovery as soon as it came to know of appeal with mandatory pre-deposit; order of attachment of bank account of assessee to recover balance tax was to be set aside – J.S. Grover Autos (P.) Ltd. v. Commissioner of Central Goods & Services Tax – [2021] 127 taxmann.com 503 (Punjab & Haryana)
MERE NON-EXTENSION OF VALIDITY OF E-WAY BILL DOESN’T AMOUNT TO TAX EVASION:
M/S Satyam Shivam Papers Pvt. Ltd. vs Asst. Commissioner St And 4 Others on 2 June, 2021 Telangana High Court. The division bench of Justice M.S.Ramachandra Rao and Justice T.Vinod Kumar held that there was no material before the respondent to come to the conclusion that there was evasion of tax by the petitioner merely on account of lapsing of time mentioned in the e-way bill because even the respondent does not say that there was any evidence of attempt to sell the goods to somebody else on January 6, 2020. On account of non-extension of the validity of the e-way bill by petitioner or the auto trolley driver, no presumption can be drawn that there was an intention to evade tax. The court further ruled that there has been a blatant abuse of power by the 2nd respondent in collecting from the petitioner tax and penalty both under the CGST and SGST and compelling the petitioner to pay Rs.69,000/- by such conduct. “We deprecate the conduct of respondent in not even adverting to the response given by petitioner to the Form GST MOV-07 in Form GST MOV – 09, and his deliberate intention to treat the validity of the expiry on the e-way bill as amounting to evasion of tax without any evidence of such evasion of tax by the petitioner,” the court said. The court directed the respondent authority to refund the said amount collected from petitioner within four (04) weeks with interest at the rate of 6% p.a from January 20, 2020 when the amount was collected from petitioner till date of repayment. The respondent shall also pay costs of Rs.10,000 to the petitioner in 4 weeks.
Constitutional Validity of GST Provision for Place of Supply relating to Intermediary Services: Bombay HC Judges pronounces Split Views
Dharmendra M. Jani vs The Union Of India And 3 Ors on 9 June, 2021
Bench: Ujjal Bhuyan, Abhay Ahuja Constitutional Validity of GST Provision for Place of Supply relating to Intermediary Services: Bombay HC Judges pronounces Split ViewsThe Bombay High Court judges split on the constitutional validity of GST Provision for Place of Supply relating to Intermediary services.
Mr. Bharat Raichandani contended that section 13(8)(b) read with section 8(2) of the IGST Act would lead to double taxation being denied. In case of intermediary services in relation to import of goods in India, there are two distinctly identifiable supplies involved, viz, supply of goods by the overseas supplier to the Indian importer of goods; and supply of services by the intermediary to the overseas supplier of goods. The two distinct supplies are liable to tax under two different statutes i.e., Customs
Act, 1962 and the IGST Act operating under two different fields of taxation.
The division bench of Justice Abhay Ahuja and Justice Ujjal Bhuyan presided over matters pertaining to the constitutional validity of Section 13(8)(b) & Section 8(2) of IGST Act dealing with ‘place of supply (POS) in case of ‘Intermediary service’. The court said that section 13(8)(b) of the Integrated Goods and Services Tax Act, 2017 is ultra vires the said Act besides being unconstitutional.
However, Justice Abhay Ahuja expresses that he is unable to be persuaded by Justice Bhuyan’s opinion and therefore “would like to record my separate opinion in the matter”.
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