GST REGULATORY UPDATES APRIL 2022
New e-Bill system to enable paperless submission launched: Press Release
Editorial Note: The Govt. launched the new e-Bill system to make the entire process of submission and backend processing of bills completely paperless and transparent. Under the newly launched e-Bill system, vendors/suppliers can upload their bills online along with supporting documents through digital signature.
TRADE NOTICE NO. 37/2021-22, DATED 28-02-2022
DGFT issued clarification on amending the import policy of Moong from “Free” to “Restricted”
Editorial Note :The various representations were received from various entities indicating that certain firms have entered into purchase contract for import of Moong before amendment in import policy with either advance payment or partial advance payment. The DGFT has now issued clarification and granted some relief subject to conditions in such cases.
GSTN issued advisory on auto-population of e-invoice details into GSTR-1
Editorial Note : The generation of e-invoice is mandatory for certain class of taxpayers, as notified by the Government. The documents (invoices, debit notes, credit notes) reported on the IRP are then transmitted electronically to the GST system. The GSTN has issued detailed advisory on auto-population of e-invoice details into Form GSTR-1.
ADVISORY NO 06/2022, DATED 01-03-2022
Advisory for Importers to avail benefit of IGCR Rules (Import of Goods at Concessional Rate of duty)
Editorial Note : CBIC issued advisory for Importers to avail benefit of IGCR Rules (Import of Goods at Concessional Rate of duty). This advisory is a complete step-by-step guide for the user to declare an advance intimation of goods to be imported, access continuity bond management module, file monthly return statements.
NOTIFICATION NO. 13/2022- CUSTOMS (N.T.), DATED-03-03-2022
CBIC notified exchange rates effective from March 4th, 2022
Editorial Note :The Central Board of Indirect Taxes and Customs has notified the rate of exchange of conversion of the foreign currencies into Indian currency or vice versa, with effect from 4th March 2022, for import and export of goods.
NOTIFICATION NO. 58, DATED 07-03-2022
Last date of submitting applications under MEIS, ROSCTL, ROSL etc. is further extended
Editorial Note : The last date of submitting applications under MEIS and 2% additional ad hoc incentive is further extended till April 30, 2022. The last date for submitting applications under ROSCTL and ROSL are also extended till March 15, 2022.
NOTIFICATION NO. 02/2022-CENTRAL TAX, DATE 11-03-2022
CBIC notifies powers of Commissioners for adjudication of SCNs issued by officers of DGGI
Editorial Note : The CBIC has issued notification to empower Additional Commissioners of Central Tax/ Joint Commissioners of Central Tax of some of the specified Central Tax Commissionerates, with All India Jurisdiction for the purpose of adjudication of the show cause notices issued by the officers of the Directorate General of Goods and Services Tax Intelligence (DGGI).
GST reduced from 18% to 5% for domestic MRO services: Press Release
Editorial Note : The GST rate has been reduced from 18% to 5% for domestic Maintenance, Repair and Overhaul (MRO) services.
TRADE NOTICE 38/2021-22, DATED 15-03-2022
New online IT module for Interest Equalisation Scheme from April 1, 2022
Editorial Note : A new online IT module for filing of electronic registration under Interest Equalisation Scheme shall be available from April 1, 2022 on DGFT website.
NOTIFICATION NO. 18/2022 – CUSTOMS (N.T.), DATED 17-03-2022
CBIC notified exchange rates effective from March 18th, 2022
Editorial Note : The Central Board of Indirect Taxes and Customs has notified the rate of exchange of conversion of the foreign currencies into Indian currency or vice versa, with effect from 18th March 2022, for import and export of goods.
ADVISORY NO. 06/2021, DATED 21-03-2022
Advisory for E-scrip to avail Export Incentive Schemes
Editorial Note : Escrip module is developed by ICEGATE, CBIC to provide a digital service to exporters to avail benefits defined under various incentive schemes like RoDTEP (Remission of Duties and Taxes on Exported Products) and RoSCTL (Rebate of State and Central Taxes and Levies).
The scheme provides for rebate of Central, State and Local duties/taxes/ levies which are not refunded under any other duty remission schemes.
INSTRUCTION NO. 02/2022-GST, DATED 22-03-2022
CBIC issues SOPs for Scrutiny of GST returns for FY 2017-18 and 2018-19
Editorial Note : CBIC has issued Standard Operating Procedure (SOP) for Scrutiny of returns for FY 2017-18 and 2018-19 to ensure uniformity in selection/ identification of returns for scrutiny, methodology of scrutiny of such returns and other related procedures
NOTIFICATION NO. 63/2015-2020, DATED 29-03-2022
Free import policy of Urad and Tur extended upto 31st March 2023
Editorial Note : The DGFT has issued notification to extend the free import policy of Urad and Tur upto 31st March 2023.
NOTIFICATION NO. 64/2015-20, DATED 31-03-2022
DGFT extends validity of existing Hand Book of Procedures 2015-20 till Sep. 30th, 2022
Editorial Note : The DGFT has issued public notice to extend the validity of existing Hand Book of Procedures 2015-20 till September 30th, 2022 from March 31st, 2022.
NOTIFICATION NO. 20/2022, DATED 30-03-2022
CBIC issues Customs (Electronic Cash Ledger) Regulations, 2022
Editorial Note : The CBIC has issued notification to prescribe Customs (Electronic Cash Ledger) Regulations, 2022. These regulations shall come into force with effect from 1st June, 2022.
NOTIFICATION NO. 18/2022-CUSTOMS [G.S.R. 249(E)/F. NO. DGEP/EOU/5/2022-TECH], DATED 31-03-2022
Govt. extends exemption of IGST and Compensation Cess for imports under AA, EPCG and EOU schemes
Editorial Note : The CBIC has issued notification to extend the existing exemption of IGST and Compensation Cess for imports under the specified export incentive schemes (i.e. Advance Authorisation, Export Promotion of Capital Goods and Export oriented units etc.) till June 30, 2022.
All time high Gross GST collection of Rs. 1,42,095 crores in March 2022: Press Release
Editorial Note : The gross GST revenue collected in the month of March 2022 is Rs.1,42,095 crores. The gross GST collection in March 2022 is all time high breaching earlier record of Rs. 1,40,986 crores collected in the Month of January 2022.
NOTIFICATION NO. 64/2015-2020, DATED 31-03-2022
DGFT extends validity of Foreign Trade Policy 2015-20 till Sep. 30th, 2022
Editorial Note : The DGFT has issued notification to extend the validity of Foreign Trade Policy 2015-20 till September 30th, 2022 from March 31st, 2022.
NOTIFICATION NO. 01/2022-CENTRAL TAX (RATE), DATED 31-03-2022
CBIC prescribes new GST rates for Fly Ash Bricks, Building Bricks etc.
Editorial Note : The CBIC has issued notifications to increase GST rates for Fly Ash Bricks, Blocks, Building Bricks and roofing tiles to 12% with ITC and 6% without ITC from existing rate of 5%. These notifications shall be effective from April 1st, 2022.
NOTIFICATION NO. 11/2022-CUSTOMS (ADD), DATED 31-03-2022
Anti-dumping duty on Jute Products extended till 31st August, 2022
Editorial Note : The anti-dumping duty on imports of Jute products namely, Jute Yarn/Twine (multiple folded/cabled and single), Hessian fabric, and Jute sacking bag shall remain in
RECENT JUDICIAL RULINGS ON GST
CLASSIFICATION OF SERVICES
Educational Services : Supply of service by way of conducting educational assessment examination to educational institutions is exempt from GST; Exemption notification should be construed in accordance with the object sought to be achieved if such provision is to grant incentive for promoting education – Educational Initiatives (P.) Ltd. v. Union of India – [2022] 137 taxmann.com 4 (Gujarat)
SECTION 2(83) OF CENTRAL GOODS AND SERVICES TAX ACT, 2017 – OUTWARD SUPPLY
Where applicant at manufacturing unit maintains canteen for its employees, recovery of amount from employees for providing this facility falls within definition of outward supply and is liable to tax – Bharat Oman Refineries Ltd., In re – [2022] 136 taxmann.com 273 (AAR – MADHYA PRADESH)
RULE 5 OF THE CENVAT CREDIT RULES, 2004 – REFUND OF CENVAT CREDIT
Where assessee availed cenvat credit on input services, registration number provided by assessee earlier if matched with PAN based registration provided by assessee at present, then, appellant is entitled for Cenvat Credit; matter remanded back to Adjudicating Authority – Dabur India Ltd. v. Commissioner of CG & ST, Shimla – [2022] 137 taxmann.com 6 (Chandigarh – CESTAT)
SECTION 7 OF CENTRAL GOODS AND SERVICES TAX ACT, 2017 – SUPPLY SCOPE OF
Payment of notice pay by an employee to employer in lieu of serving for notice period is liable to GST – Bharat Oman Refineries Ltd., In re – [2022] 136 taxmann.com 273 (AAR – MADHYA PRADESH)
Where employer pays premium towards Group Medical Insurance Policy of non-dependent parents of employees, premium amount recovered by employer from employees will fall within ambit of supply and is liable to GST – Bharat Oman Refineries Ltd., In re – [2022] 136 taxmann.com 273 (AAR – MADHYA PRADESH)
Where applicant has provided telephone connections to its employees, recovery of amount from employees towards charges at actuals falls within ambit of supply liable to GST – Bharat Oman Refineries Ltd., In re – [2022] 136 taxmann.com 273 (AAR – MADHYA PRADESH)
Where applicant has provided telephone connections of BSNL to its employees and it recovers amount from its employees towards telephone charges at actuals, applicant shall be eligible to claim input tax credit in respect of telephone charges paid to BSNL – Bharat Oman Refineries Ltd., In re – [2022] 136 taxmann.com 273 (AAR – MADHYA PRADESH)
SECTION 16 OF CENTRAL GOODS AND SERVICES TAX ACT, 2017 – INPUT TAX CREDIT – ELIGIBILITY AND CONDITIONS FOR TAKING CREDIT
Where an employee includes his non-dependent parents under Group Medical Insurance Policy scheme, additional premium paid by employer is recovered from said employee, employer shall be eligible to claim input tax credit in respect of premium paid to extent of its further supply – Bharat Oman Refineries Ltd., In re – [2022] 136 taxmann.com 273 (AAR – MADHYA PRADESH)
Where applicant maintains a canteen for providing tea, etc. to its employees and it recovers Rs. 700 per month from employees as a fixed amount, applicant shall not be eligible for input tax credit in respect of canteen services – Bharat Oman Refineries Ltd., In re – [2022] 136 taxmann.com 273 (AAR – MADHYA PRADESH)
Where applicant has provided telephone connections of BSNL to its employees and it recovers amount from its employees towards telephone charges at actuals, applicant shall be eligible to claim input tax credit in respect of telephone charges paid to BSNL – Bharat Oman Refineries Ltd., In re – [2022] 136 taxmann.com 273 (AAR – MADHYA PRADESH)
Where applicant maintains a canteen for all its employees without charging any amount from them, applicant shall not be eligible to claim input tax credit in respect of canteen services – Bharat Oman Refineries Ltd., In re – [2022] 136 taxmann.com 273 (AAR – MADHYA PRADESH)
SECTION 27 OF THE CUSTOMS ACT, 1962 – INTEREST ON DELAYED REFUNDS
Interest liability on refund to be calculated from date of final order of Tribunal; interest @ 6% per annum was to be granted – Bochasanwasi Shri Aksharpurushottam Swaminarayan Sansth v. Commissioner of Customs – [2022] 137 taxmann.com 5 (Ahmedabad – CESTAT)
Commissioner (Appeals) as well as Tribunal being a creature under statute cannot grant interest on interest in absence of any statutory provision – Bochasanwasi Shri Aksharpurushottam Swaminarayan Sansth v. Commissioner of Customs – [2022] 137 taxmann.com 5 (Ahmedabad – CESTAT)
SECTION 73 OF CENTRAL GOODS AND SERVICES TAX ACT, 2017 – DEMANDS AND RECOVERY – TAX OR INPUT TAX CREDIT DUE NOT INVOLVING FRAUD OR MISSTATEMENT OR SUPPRESSION
Where Competent Authority passed ex parte orders on assessee and Appellate Authority rejected appeal on ground of being barred by limitation, Competent Authority was to be directed to decide case afresh after complying with principles of natural justice – Cityneon Holding Ltd. v. State of Bihar – [2022] 136 taxmann.com 274 (Patna)
[2022] 135 taxmann.com 189 (Bombay)HIGH COURT OF BOMBAYDee Vee Projects Ltd.v.Government of MaharashtraEditorial 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 Commissioner and authorised by Commissioner, has jurisdiction to pass order to block electronic credit ledger under Rule 86A
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