GST REGULATORY UPDATES FEBRUARY 2022
GST REGULATORY UPDATES NOTIFICATION NO. 1/2022 – CENTRAL TAX [24-02-2022] E-INVOICING MANDATORY FOR TAXPAYERS HAVING TURNOVER MORE THAN 20 CR
Editorial Note – In exercise of the powers conferred by sub-rule (4) of rule 48 of the Central Goods and Services Tax Rules, 2017, the Government, on the recommenda- tions of the Council, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 13/2020–Central Tax, dated the 21stMarch, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section(i) vide number G.S.R. 196(E), dated 21stMarch, 2020, namely: In the said notification, in the first para- graph, with effect from the 1stday of April, 2022, for the words – fifty crore rupees, the words – twenty crore rupees shall be substituted.
NOTIFICATION NO. 56/2015-2020, DATED 24-02-2022 EXPORT POLICY OF INJECTION REMDESIVIR & REMDESIVIR ACTIVE PHARMACEUTICAL INGREDIENTS (API)
REVISED TO ‘FREE’
Editorial Note : The export policy of Injection Remdesivir and Remdesivir Active Pharmaceutical Ingredients (API), Amphotericin-B injections, Enoxaparin (Formulation and API) and Intra – Venous Immunoglobulin (IVIG) (Formulation and API) has been made ‘Free’ with immediate effect.
RECENT JUDICIAL RULINGS ON GST
[2022] 135 taxmann.com 189 (Bombay) HIGH COURT OF BOMBAY Dee Vee Projects Ltd. v. Government of Maharashtra Editorial Note:In this important Judgement the following issues have been addressed which is a welcome judgement-
Order blocking electronic credit ledger without showing satisfaction of the authority on the necessity and without reasons in writing is arbitrary and illegal Order blocking electronic credit ledger under Rule 86A does not amount to provisional attachment of property as custody of property (ITC) remains with taxpayer and no proceedings have been initiated under specified provisions as required under Section 83
Disallowing debit of an amount from electronic credit ledger is blocking of such ledger and it cannot be for an amount which is more than the amount found to be fraudulently or wrongly availed; Authority not empowered to impose blanket prohibition
Writ petition is maintainable as appellate remedy or revisional remedy is not available against order passed under Rule 86A blocking use of electronic credit ledger
Deputy Commissioner being higher in rank than Assistant Com- missioner and authorised by Com- missioner, has jurisdiction to pass order to block electronic credit ledger under Rule 86A
[2022] 135 taxmann.com 157 (AAR – MAHARASH- TRA)[08-02-2022]
GST : Drilling and blasting for tunnel construction involves both goods and services and is a composite supply of works contract attracting 12% Composite supply – Drilling and blasting for tunnel – Agreement for construction of two tunnels as part of expressway project – Main contractor engaged applicant as sub-contractor for blasting and drilling work – Advance ruling sought on whether the activity carried out shall be classified as supply of goods or services or a composite supply of works contract – HELD: Various goods including explosives, tools and other material are used in the process of blasting – Element of goods involved in the transaction – Supply of service is in the form of drilling and blasting and clearing of rubble – Service of drilling and blasting cannot be conducted without the use of explosives – Blasting activity involves both goods as well as services – Impugned activity can be classified as composite supply of works contract for construction of tunnel – GST rate of 12% will be applicable – Section 2(30) of Central Goods and Services Tax Act, 2017/Section 2(30) of Maharashtra Goods and Services Tax Act, 2017 [Paras 5.5, 5.7, 5.8, 5.9.2, 5.10.4]
[2022] 135 taxmann.com 287 (Karnataka)[07-02-2022]
GST : Residential premises rented as hostel to students and working professionals is covered under residential dwell- ing being used as residence and eligible for exemption HIGH COURT OF KARNATAKA Taghar Vasudeva Ambrish v.
Appellate Authority for Advance Ruling, Karnataka
Editorial Note – Residential renting – Whether leasing of residential premises as hostel to students and
working professionals for long term accommodation is service by way of renting of residential dwelling for use as residence and eligible for exemption – HELD: Expression ‘residential dwelling’ to be understood in popular sense / common parlance – Residential dwelling in normal trade parlance means any residential accommoda- tion and is different from hotel, motel, inn, guest house etc. which is meant for temporary stay as per service tax education guide issued by CBIC and the same is binding on department – Residential dwell- ing is being rented as hostel to students and working professionals fall within purview of residential dwelling as the same is used by such persons as residence – Bene- fit of exemption notification cannot be denied on the ground that lessee is not using the premises as no requirement that lessee itself should use the premises – Finding recorded by Appellate Authority for Advance Rulings (AAAR) that hostel accommodation is more akin to sociable accommodation is unintelligible and not relevant – Petitioner is entitled to benefit of exemption notification – Ruling delivered by AAAR Karnata- ka quashed – Writ petition allowed – Section 6 of Integrated Goods and Services Tax Act, 2017 [Paras 12,13,14,15,16 and 17] [In favour of petitioner]
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