GST REGULATORY UPDATES
INSTRUCTION NO. 01/2022-GST, DATED 07-01-2022
CBIC issued guidelines for recovery proceedings in case of mismatch in GSTR-1 & GSTR-3B
Editorial Note : CBIC noted that there may be a genuine reason for difference between the details of outward supplies declared in GSTR-1 and those declared in GSTR-3B. Therefore, opportunity needs to be provided to explain differences between GSTR-I and GSTR-3B, if any, and for short payment or non-payment of tax before any action under section 79 for recovery of the said amount.
Upcoming functionality of Interest Calculator in Form GSTR- 3B (Summary Return)
As a facilitation measure for taxpayers and for assisting taxpayers in doing a correct self- assessment, a new functionality of interest calculator is being released in Form GSTR-3B. This functionality will arrive at the system-computed interest on the basis of the tax liability values declared by the taxpayers. The interest applicable, if any, on the tax liability declared in Form GSTR-3B of a particular tax-period will be computed after the filing of the said GSTR-3B. These system-computed interest values will be auto-populated in the Table-5.1 of the GSTR-3B of the next tax-period. The facility would be similar to the collection of late fees for GSTR-3B, filed after the due date, posted in the next period’s GSTR-3B
- The functionality has a user-friendly interface, which informs the taxpayers regarding the manner of system computation of interest values for each tax-head. The functionality also assists the taxpayers in correctly computing interest for the liability of any past period declared in the Form GSTR-3B for the current tax period, based on the details furnished by them on the portal
- The functionality will further improve ease of filing return under GST and is, therefore, in the direction of further reducing the compliance burden for taxpayers. The functionality, as and when available on the GST Portal shortly, will be intimated to the taxpayers.
Advisory on Revamped Search Harmonized System of Nomenclature (HSN) Code functionality
The Central Board of Indirect Taxes and Customs (CBIC) has issued an update on 6th January 2022 regarding advisory on Revamped Search HSN Code functionality.
The search HSN functionality was earlier given as a measure of facilitation to taxpayers to search the technical description of any particular HSN code of any goods or service used in the trade, in relation to HSN description in the Customs Tariff Act, 1975. However, there are many instances of goods and services where descriptions commonly used in trade in common parlance i.e. trade descriptions differ from the technical descriptions otherwise provided in the HSN descriptions of the Customs Tariff Act, 1975 and the above said functionality. Thus, finding the corresponding HSN codes in relation to a common description was a bit challenging for the taxpayer.
To reduce the challenge and make the functionality user friendly, ‘Search HSN’ functionality has been revamped by linking it with e-invoice database and Artificial Intelligence tools.
RECENT JUDICIAL RULINGS ON GST
CLASSIFICATION OF GOODS
Papad of different shapes and sizes : Papad of different shapes and sizes merits classification under Tariff No. 1905 90 40 and chargeable to NIL rate of GST – Piyush Jayantilal Dobaria, In re – [2021] 133 taxmann.com 360 (AAAR-GUJARAT)
SECTIONS 2(31) OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – CONSIDERATION
Notice pay recovery made from the employees on account of not serving full notice period is not for any breach of contract or forbearance or toleration and therefore, not liable to GST – Emcure Pharmaceuticals Ltd., In re – [2022] 134 taxmann.com 74 (AAR – MAHARASHTRA)
SECTION 7 OF CENTRAL GOODS AND SERVICES TAX ACT, 2017 – SUPPLY – SCOPE OF
GST is not payable on part amount recovered from employees towards canteen facility as the same provided as welfare measure and applicant is not a provider of such service but recipient of the same – Emcure Pharmaceuticals Ltd., In re – [2022] 134 taxmann.com 74 (AAR – MAHARASHTRA)
SECTION 10 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – COMPOSITE LEVY
Where Competent Authority passed concluded that assessee was engaged in supply of works contract service and it was not engaged in manufacture and sale of goods and, hence, denied option of assessee to pay tax under composition levy, assessee’s appeal against said order being pending, Appellate Authority was to be directed to consider and pass appropriate order within two months – Mini Premjit v. State Tax Officer – [2021] 133 taxmann.com 356 (Kerala)
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