TRADE NOTICE NO.5/2021, DATED-29-07-2021
New application proforma prescribed for the Anti-Dumping application to be filed by the Domestic Industry.
Editorial Note: The Government has prescribed new application proforma along with revised formats for the Anti-Dumping application to be filed by the Domestic Industry. Govt. notified Production Linked Incentive (PLI) Scheme for Specialty Steel
Editorial Note: The Government has notified the Production Linked Incentive (PLI) Scheme for Specialty Steel in India to be implemented over FY 2023-24 to FY 2029-30 with a budgetary outlay of Rs. 6,322 crore. The objective of the PLI Scheme for specialty grade steel is to promote manufacturing of such steel grades within the country.
Functionality to check and update bank account details: GSTN Update
Editorial Note: A functionality to check status of bank account details update for the taxpayers who have taken new registration at GST Portal but have not yet furnished the same, has been introduced, in view of Rule 10A of the CGST Rules 2017. Such taxpayers are required to update their Bank Account Details within 45 days of the first login henceforth.
NOTICE NO. 12/2021-22, DATED 28-07-2021
Introduction of Online Deemed Exports Application Module on DGFT Website
Editorial Note: DGFT has issued notice to inform the members of trade that online Deemed Exports Application Module is introduced on DGFT Website to file application for refund of Terminal Excise Duty, Grant of Duty Drawback as per AIR and fixation of brand rate for duty drawback.
New functionality on Annual Aggregate Turnover (AATO) deployed on GST Portal for tax payers
Editorial Note: The GSTN has implemented a new functionality on taxpayers’ dashboards. The taxpayers can now see the exact Annual Aggregate Turnover (AATO) for the previous FY, instead of just the two slabs of Above or Upto Rs. 5 Cr. The taxpayers can also see the Aggregate Turnover of the current FY based on the returns filed till date.
CIRCULAR NO. F.NO 01(05)/CIRCULAR/CESTAT/2021, DATED 26-07-2021
President CESTAT directed all benches to adhere to directions issued by Supreme Court for computing limitation period
Editorial Note: The President CESTAT has directed all benches to strictly adhere to directions issued by Supreme Court on 27.04.2021 for computing limitation period and should not insist for filing a delay condonation applications for appeals governed by order of Supreme Court.
PUBLIC NOTICE NO. 17/2015-2020, DATED 27-07-2021
DGFT notifies new form for revalidation of SCOMET Export Authorisation
Editorial Note: The DGFT has notified new performa namely ANF 2O(d) for filing applications for the revalidation of SCOMET Export Authorisation. In this regard, public notice has been issued.
CIRCULAR NO. 157/13/2021-GST, DATED 20-07-2021
CBIC issued clarification on extension of limitation under GST in terms of Hon’ble Supreme Court’s Order dated 27.04.2021
Editorial Note: CBIC issued circular to clarify that the extension of timelines granted by Hon’ble Supreme Court vide its Order dated 27.04.2021 is applicable in respect
of any appeal which is required to be filed before Joint/ Additional Commissioner (Appeals), Commissioner (Appeals), Appellate Authority for Advance Ruling, Tribunal and various courts etc. and is not applicable to any other proceedings under GST Laws.
NOTIFICATION NO. 36/2021-CUSTOMS, DATED 19-07-2021
IGST payable on reimportation of goods after repair
Editorial Note: In order to nullify the impact of the judgement of Hon’ble Delhi CESTAT in the case of M/s Interglobe Aviation Limited vs. Commissioner of Customs [2020] 121 taxmann.com 70 (New Delhi – CESTAT), the Government has made amendment in Notification No. 45/2017 & 46/2017 both dated June 30, 2017 to provide that IGST& Compensation Cess shall be payable on the goods re-imported after repair. Similar amendment is made for import of Cut & polished precious and semi-precious stones.
CIRCULAR NO. 16/2021- CUSTOMS, DATED-19-07-2021
Clarification on applicability of IGST on repair cost, insurance and freight, on goods re-imported after being exported for repair.
Editorial Note: CBIC issued clarification to provide that the re-import of goods sent abroad for repair attracts IGST on a value equal to the repair value, insurance and freight.
Further, in the light of the recommendations of the GST Council in its 43rd Meeting, a clarificatory amendment has been made in the said notifications, vide notification Nos. 36/2021-Customs and 37/2021- Customs, both dated 19th July, 2021.
PRESS RELEASE, DATED 15-7-2021
CBIC proactively put in place a COVID Response Plan (CRP) for speedy clearances of COVID-19 vaccines
Editorial Note: CBIC has proactively put in place a COVID Response Plan (CRP) for speedy clearances of COVID-19 vaccines at all major airports. CRP provides for setting up of a COVID-19 Vaccine Response Team (CVRT) at each Air Cargo/Courier Terminal. The CVRT will function as a single point of contact for all the clearance related to COVID-19 vaccine shipments.
PUBLIC NOTICE 12/2015/2020, DATED 12-07-2021
No requirement to furnish quarterly return of details of exports by exporter to concerned authorities / associations: DGFT Notice.
Editorial Note: The DGFT has issued a public notice to reduce the regulatory compliance burden of the exporters. Now, the requirement of furnishing quarterly return/details of exports to concerned registering authorities/associations has been done away with.
NOTIFICATION NO. 35/2021, DATED 12-07-2021
Govt. exempts Customs Duty on import of raw material for manufacturing Covid-19 test kits
Editorial Note: The Government has issued notification to exempt the duty of customs on import of raw material for manufacturing Covid-19 test kits. This exemption shall be available till 30th September, 2021.New Functionalities available on GST Portal including auto-population of GSTR 3B under QRMP Scheme
Editorial Note: GSTN will make available new functionalities on GST Portal from July, 2021. The details of late fee payable would now be provided in Form GSTR-10. Other functionalities include auto-population of data in Form GSTR-11 on basis of Forms GSTR-1 / 5 and change of timeline for filing application for revocation of cancellation of registration back to 90 days. New functionalities to be deployed on GST Portal from July, 2021
Editorial Note: GSTN has made available new functionalities on the GST Portal. These functionalities include auto-population of GSTR 3B under QRMP Scheme through IFF and Form GSTR-1 filed during the quarter, availability of option of not having LUT number for taxpayers (making exempt/ nil-rated supplies) while filing refund application of accumulated ITC and more.
TRADE NOTICE NO. 8/2021-22, DATED 08-07-2021
Benefits under Export incentive (SEIS, MEIS etc.) schemes put on hold.
Editorial Note: Issuance of benefits/scripts under MEIS, SEIS, ROSL and ROSCTL Schemes are put on hold for temporary period w.e.f. July 8, 2021. The DGFT informed that no fresh applications would be allowed to be submitted during this period and all submitted applications pending would also be on hold.
Online filing of application for Authorised Economic Operators (AEO T2 and AEO T3) launched.
Editorial Note: The CBIC has launched online filing of application for Authorised Economic Operators (AEO T2 and AEO T3) accessible at URL www.aeoindia.gov.in. Till 31-7-2021, physical filing of AEO application is allowed as a transition measure. From 1-8-2021, it will be mandatory for AEO T2 and AEO T3 applicants to register on the portal for AEO certification.
CIRCULAR NO.14 / 2021- CUSTOMS, DATED 07-07-2021
CBIC announced measures to improve Customs Faceless Assessment and clearance processes
Editorial Note: To substantially increase the pace of assessments and to enhance the uniformity in assessments, the CBIC decided to
implement various measures such as increase in facilitation level to 90%, expediting the assessment process, automated generation of examination orders, etc. Further, all advance Bills of Entry which are fully facilitated would be granted the facility of DPD. Important changes related to QRMP Scheme implemented on the GST Portal: GSTN Update
Editorial Note: GSTN has issued update on important changes related to QRMP Scheme implemented on the GST Portal for the taxpayers. The changes are related to Auto population of GSTR-3B liability from IFF and Form GSTR-1, Nil filing of Form GSTR-1 (Quarterly) through SMS and Impact of cancellation of registration on liability to file Form GSTR-1.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 undererstwhileregulationsandto enable carriers continue mandatory filing on parallel basis.
INSTRUCTION NO. 15/ 2021 – CUSTOMS, DATED 30-06-2021
COVID-19 testing in live animals to be done before importing into India: Instruction
Editorial Note: CBIC has issued instruction for requirement of COVID-19 testing in live animals before importing into India in order to rule out the spreading of COVID-19 infection through imported animals.
NOTIFICATION NO. 28/2021, DATED 30-06-2021
Penalty for non-compliance of B2C QR Code is waived till September 30, 2021
Editorial Note: The Government has issued notification for waiver of penalty for non-compliance of B2C QR Code by any regisetred person from December 1, 2020 till September 30, 2021NOTIFICATION 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.*GST Update (24-07-2021)*
*Filing of Annual returns by composition taxpayers – Negative Liability in GSTR-4*
GSTN has issued an update on how to deal with Negative Liability in GSTR-4 while filing Annual returns by composition taxpayers. It has been mentioned.
that liability paid through Form GST CMP-08 is auto-populated in table 5 of the GSTR-4 for convenience of the taxpayers. Taxpayers who do not fill up table 6 of GSTR-4 i.e. no liability is declared, even though, taxpayer may have paid the liability through Form GST CMP-08; since the ‘Tax payable’ in GSTR-4 is computed after reducing the liability declared in GST CMP-08 and then auto-populated in table 5. Thus, if nothing is declared in table 6, then the negative liability entry appears in GSTR-4.
GSTN has guided that if table 6 of GSTR-4 has not been filled due to oversight, a ticket may be raised to nullify the amount available in negative liability statement. If there is no liability to be paid during the year, the liability paid through Form GST CMP-08 shall move to negative liability statement and the same excess amount can be utilised to pay the liability of future tax periods.GST Update (31-07-2021)
Furnishing of self-certified reconciliation statements GSTR 9C for FY 2020-21 onwards
The Notification seeks to notify sections 110 and 111 of the Finance Act, 2021 w.e.f. 01.08.2021. Amendments in section 35 and 44 of CGST Act made through Finance Act, 2021
have been notified. This has eased the compliance requirement in furnishing reconciliation statement in FORM GSTR-9C, as taxpayers would be able to self-certify the reconciliation statement, instead of getting it certified by chartered accountants. This change will apply for Annual Return for FY 2020-21 onwards (Notification no. No. 29/2021 – Central Tax dt. 30th July, 2021).
Changes pursuant to notification of sections 110 and 111 of the Finance Act, 2021 w.e.f. 01.08.2021 in CGST Rules
The changes that are required in Rule 80 – Annual Return of the CGST Rules, 2017, Form GSTR 9 and Form GSTR 9C have been undertaken through this notification. The changes are mainly w.r.t. addition of the FY 2020-21 at appropriate places and some very minor ones. There is no major change in the Forms (Notification no. No. 30/2021 – Central Tax dt. 30th July, 2021).
Exemption in filing of annual return for assessees having aggregate turnover of upto 2 crores for FY 2020-21
The Government has exempted assessees whose aggregate turnover in the financial year 2020-21 is upto two crore rupees from filing annual return for the said financial year (Notification no. No. 31/2021 – Central Tax dt. 30th July, 2021).
RECENT JUDICIAL RULINGS ON GST
SECTION 2 (11) OF THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – IMPORT OF SERVICES
Where applicant entered into agreement with Overseas Commission Agent located outside India to arrange supply of applicant’s goods outside India, services received by applicant from Overseas Commission Agent do not fall within meaning of term ‘import of services’ as provided under section 2(11) as place of supply of service is out of India – Midas Foods (P.) Ltd., In re – [2021] 128 taxmann.com 360 (AAR- UTTARAKHAND)
SECTION 2(13) OF THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – INTERMEDIARY
Overseas Commission Agent is covered within definition of term ‘intermediary’ as provided under section 2(13) – Midas Foods (P.) Ltd., In re – [2021] 128 taxmann.com 360 (AAR- UTTARAKHAND)
SECTION 5 OF THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – LEVY AND COLLECTION
Where applicant entered into agreement with Overseas Commission Agent located outside India to arrange supply of applicant’s goods outside India, transaction being out of ambit of import of services applicant is not required to pay GST on reverse charge basis under section 5(3) on commission paid to Overseas Commission Agent – Midas Foods (P.) Ltd., In re – [2021] 128 taxmann.com 360 (AAR- UTTARAKHAND)
SECTION 132 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – OFFENCES
Punishments for certain offences :
Where Competent Authority lodged complaint against assessees for committing offence u/s 132(1)(i) and they had been summoned to appear before Investigating Officer, Investigating Officer was to be directed that no coercive steps will be taken against assesseesincluding arrest as and when they appear before him – Nannapaneni Krishnamurthy v. State of Andhra Pradesh – [2021] 128 taxmann.com 250 (Andhra Pradesh)
SECTION 50 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – PAYMENT OF TAX – INTEREST ON DELAYED PAYMENT
Provisions of section 42 provide for a notice to be issued by Assessing Authority in case of mismatch of particulars at end of assessee, vis-a-vis, particulars/details furnished in returns of selling/purchasing dealer and can only be invoked in a situation where mismatch is on account of error in database of revenue or a mistake that has been occasioned at end of revenue – F1 Auto Components (P.) Ltd. v. State Tax Officer – [2021] 128 taxmann.com 342 (Madras)
SECTION 83 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – DEMANDS AND RECOVERY
Provisional attachment: Where assessee was only a director of a company, namely, Milkfood Ltd. and Competent Authority based on information received that Milkfood Ltd. had availed input tax credit to extent of Rs. 85 crores against fake/ineligible invoices commenced investigation u/s 67 against Milkfood Ltd. and also recorded statement of assessee, provisional attachment of bank accounts of assessee was unsustainable – Roshni Sana Jaiswal v. Commissioner of Central Taxes GST Delhi (East) – [2021] 128 taxmann.com 357 (Delhi)SECTION 10 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – COMPOSITE LEVY
Where petitioner registered under GST w.e.f. 1-7-2017 opted for paying tax under composite scheme as per procedure contemplated under section 10(1) and was issued with notice in terms of section 74 and section 10(5), stating that it is liable to pay SGST at rate of 14 per cent and CGST at rate of 14 per cent from date of initial registration i.e., from 1-7-2017 and demand had been confirmed along with interest and penalty and petitioner filed writ contending that section 10(1) does not anywhere prescribe inclusion of previous turnover of the VAT regime for purpose of deciding tax to be paid under section 10(1), since word ‘preceding financial year’ is appearing at more than once place in section 10 itself, it would only mean that as on 1-7-2017, turnover of previous year under VAT regime has to be reckoned with for purpose of extending benefit under GST regime and thus, turnover in VAT regime is not to be excluded while computing tax liability and there is no illegality in taking into consideration previous year’s turnover (under VAT regime) for purpose of extending benefits under composite scheme or for collecting taxes and penalty – GodwayFurnicrafts v. State of Andhra Pradesh – [2021] 128 taxmann.com 345 (Andhra Pradesh)
SECTION 54 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – REFUND
Tax : Where assessee paid IGST of Rs. 2.35 lacs in respect of goods exported (zero rated supply) in September, 2017 but till date IGST was not refunded to it, Competent Authority was to be directed to sanction refund of IGST of Rs. 2.35 lacsalongwithinteresttoassessee- Raj Exim v. Assistant Commissioner of Customs, Guj. – [2021] 128 taxmann.com 205 (Madras)
SECTION 67 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – SEARCH, SEIZURE, ETC. – POWER OF INSPECTION, SEARCH AND SEIZURE
Where search and seizure was conducted at premises of applicant company pursuant to an inspection carried out under section 67(1) by Inspector of CGST without authority of a proper jurisdictional officer i.e. Additional commissioner and without any clue that any goods of applicant were liable to be confiscated or any books or things which would be useful for or relevant for proceedings under CGST Act had been secreted to any place which were a prerequisite for formation of belief for exercise of powers concerning search and seizure, impugned search and seizure and subsequent confiscation of books of assessee were unlawful – R.J. Trading Co. v. Commissioner of CGST, Delhi – [2021] 128 taxmann.com 344 (Delhi)
SECTION 140 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – TRANSITIONAL PROVISIONS – INPUT TAX CREDIT – TRANSITIONAL ARRANGEMENT FOR
Statute does not provide for any provision for lapsing of unutilized input tax credit for non-filing of TRAN-1. Input tax credit is required by law to be credited to electronic credit ledger of an assessee. Failure to credit input tax credit is an infraction of section 140(1) and to rule 117(3) of the GST Rules. Input tax credit is an asset in hands of dealer. A registered dealer had a statutory right under VAT regime to get refund. Unutilized input tax credit of erstwhile regime can be denied from being credited to electronic credit ledger only under contingencies mentioned in proviso to section 140(1). On all other situations, this statutory right cannot be defeated by any procedural rules under GST regime – Union of India v. Merchem India (P.) Ltd. – [2021] 128 taxmann.com 343 (Kerala)
Recent Comments