GST REGULATORY UPDATES CIRCULAR NO. 164/20/2021-GST, DATED 06-10-2021
CBIC issued clarifications regarding applicable GST rates & exemptions on certain services
Editorial Note: The CBIC has issued clarifications with reference to GST rates of certain services on the basis of recommendations of the GST Council in its 45th meeting held on 17th September, 2021. In this regard, a circular has been issued to provide those clarifications.
CIRCULAR NO. 163/19/2021-GST, DATED 06-10-2021
CBIC issues clarification on GST rates & classification based on recommendations of the GST Council
Editorial Note: On the basis of recommendations of the GST Council in its 45th meeting held on 17th September, 2021, at Lucknow, the CBIC has issued clarification with reference to GST rate, levy and classification of certain goods. In this regard, a circular has been issued.
PUBLIC NOTICE NO. 28, DATED 14-10-2021
8424 MT sugar can be exported to USA from 01.10.2021 to 30.09.2022 under TRQ Scheme: DGFT
Editorial Note: The DGFT has notified quantity of 8424 MT sugar (raw and/or white sugar) to be exported to USA under TRQscheme from 01.10.2021 to 30.09.2022.
NOTIFICATION NO. 39/2015-2020, DATED 14-10-2021
DGFT changed category of Diagnostic Kits and reagents from Restricted to Free
Editorial Note: The export policy had earlier placed ‘all diagnostic kits and reagents (including instruments / devices)’ under ‘restricted’ category and now it has been shifted to ‘free’ category.
TRADE NOTICE NO. 21/2021-2022, DATED 18-10-2021
Mandatory e-filing of Non-Preferential Certificate of Origin extended till 31st October, 2021: Notice
Editorial Note: The DGFT has issued trade notice to extend the mandatory electronic filing of Non-Preferential Certificate of Origin (CoO). Now the option of submission and issuance of CoO (Non-Preferential) by the issuing agencies through their paper-based systems may continue further up to 31st October, 2021.
GSTN issued advisory for availability of Input Tax Credit of FY 2020-21
Editorial Note: GSTN has issued advisory for taxpayers to ensure that their records pertaining to Financial Year 2020-21 are reported on or before the due date of their GSTR-3B for the month September 2021. It is informed that no taxpayer shall take inputtax credit in respectrecords (invoices and debit notes) for Financial Year 2020-21 after the due date of furnishing the return of September 2021.
GSTN issues FAQs on Form GSTR-2B
Editorial Note: GSTN has issued FAQs relating to form GSTR-2B and clarified several issues such as when GSTR-2B is generated, what are the inputs for generating GSTR-2B and cut-off dates for GSTR-2B generation etc.
NOTIFICATION NO. 61 /2021-CUSTOMS (ADD), DATED 20-10-2021
No anti-dumping duty on import of “Phenol” from European Union, Singapore and Korea
Editorial Note: The Central Government revokes the anti-dumping duty imposed on “Phenol”, falling under tariff item 2907 11 10, originating in or exported from the European Union, Singapore and Korea RP and imported into India.
OFFICE MEMORANDUM F.NO. 605/14/2021/-DBK/778, DATED 21-10-2021
Govt. constituted Committee for determination of RoDTEP rates for AA or EOU or SEZ exports
Editorial Note: The Government has constituted a Committee for determination of RoDTEP rates for AA/EOU/SEZ exports and to give a supplementary report / recommendations on issues or representations, if any. The Committee will submit its report to the Government within a total period of eight months.
NOTIFICATION NO. 13/2021 – CENTRAL TAX (RATE), DATED 27-10-2021
Permanent transfer of IPRs would be subject to 18% GST
Editorial Note: Based on the 45th GST Council meeting, the GST rate on permanent transfer of IPR under service tariff notification was increased from 12% to 18%. No such amendment was made in the rate notification of goods (as similar expression was also there). In order to avoid any ambiguities the amendment rate notification of goods has also been made to provide that GST rate of 18% on permanent transfer of IPRs.
RECENT JUDICIAL RULINGS ON GST
CLASSIFICATION OF SERVICES
Going concern service: Where applicant-AAI conducted bidding process for undertaking operation, management and development of certain airports of AAI on a public private partnership basis in which concessionaire who is successful bidder formed a Special Purpose Vehicle (SPV) to carry contract, said business arrangement between AAI and SPV is a supply of transfer of going concern service as per section 7(1) – Airport Authority of India, In re – [2021] 131 taxmann.com 249 (AAR – GUJARAT)
SECTION 7 & SECTION 15 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – SUPPLY
Scope of incentive given by Government to applicant bank under Sahay Yojana scheme is a consideration for applicant as incentive amount received by applicant is for performing and achieving success for said scheme and incentive amount is not passed on to customers who are getting loan, therefore, subject supply is covered under section 7(1)(a) and not covered under section 7(2); consideration received by Government in terminology of one-time incentive cannot adorn colour of actionable claimdoes not merit exclusion from valuation under section 15(2)(e) and therefore, subject incentive amount will be liable to GST – Rajkot Nagarik Sahakari Bank Ltd., In re – [2021] 131 taxmann.com 247 (AAR – GUJARAT)
RULE 9 OF THE CENVAT CREDIT RULES, 2004 – CENVAT CREDIT – DOCUMENTS TO AVAIL CREDIT
Debit note issued by importer in respect of import of machines and CVD paid thereon can also be valid document for availing credit – Kevin Process Technologies (P.) Ltd. v. Commissioner of Central Excise, Ahmedabad – [2021] 131 taxmann.com 323 (Ahmedabad – CESTAT)
CLASSIFICATION OF SERVICES
Supply of military or defence equipment through a goods transport
agency to different units of Government : Where applicant is a unit of Ordnance Factories Board and it manufactures ammunitions and explosive and non-explosive components and supplies same mainly to Indian defence, exemption on payment of GST on transport of military or defence equipments through a goods transport agency is applicable to goods transported by applicant – Senor General Manager, Ordnance Factory, In re – [2021] 131 taxmann.com 213 (AAR – MAHARASHTRA)
SECTION 9A OF THE CUSTOMS TARIFF ACT, 1975 – ANTI- DUMPING DUTY ON DUMPED ARTICLES
Where vide impugned order in writ petitions High Court had only issued notice to Government and parties to file Counter Affidavit and response, Apex Court would not intervene – Indian Solar Manufacturers Association v. Solar Power Developers Association – [2021] 131 taxmann.com 301 (SC)
SECTION 17 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – INPUT TAX CREDIT
Where applicant is a unit of Ordnance Factories Board and it manufactures ammunitions and explosive and non-explosive components and it has also let out some part of factory estate for commercial purposes on rent, of eligible input tax credit on inputs and input services relating to main business activity of manufacturing is not allowed against GST liability on renting of immovable property (which is an ancillary business activity) – Senor General Manager, Ordnance Factory, In re – [2021] 131 taxmann.com 213 (AAR – MAHARASHTRA)
SECTION 54 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – REFUND – TAX, REFUND OF
Where petitioner exported certain goods on 28-6-2017 but shipping bill which should have got printed on 28-6-2017 got printed on 1-7-2017 and since GST was applicable with effect from 1-7-2017 and leviable on export of goods, shipping bill got printed on 1-7-2017 with petitioner’s GST Identification Number and levy of IGST albeit with date of 29-6-2017, it was held that petitioner was entitled to refund to Integrated Goods and Service Tax (IGST) paid by it along with interest in respect of export of goods on 28-6-2017 – SRC Chemicals Private Limited v. Central Board of Indirect Taxes and Customs – [2021] 131 taxmann.com 314 (Bombay)
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