GST REGULATORY UPDATES
Central Board of Indirect Taxes & Customs (CBIC) extends the due date for payment of GST & filing Form GSTR-3B (summary return) for April 2022 amid technical glitches CBIC has extended the following due dates amid technical glitches reported in generation of Form GSTR-2B (auto drafted input tax credit (ITC) statement) and auto population of Form GSTR-3B on the GST portal
• Due date for furnishing Form GSTR-3B for April 2022 has been extended till 24 May 2022
• Due date for deposit of GST in Form PMT-06 for April 2022 has been extended till 27 May 2022
Form GSTR-1 (statement of outward supplies) / Invoice Furnishing Facility (IFF) enhance- ments deployed on GST Portal Background
The statement of outward supplies in Form GSTR-1 is to be furnished by all normal taxpayers on a month- ly or quarterly basis, as applicable. Quarterly GSTR-1 filers have also been provided with an optional IFF for reporting their outward supplies to registered persons (B2B supplies) in the 1st two months of the quarter.
Continuous enhancements and technology improvements in GSTR-1 / IFF have been made from time to time to enhance the performance and user-experience of GSTR-1 / IFF, which has led to improvements in summary generation process, quicker response time and enhanced user-experience for the taxpayers.
The previous phase of GSTR-1 / IFF enhancement was deployed on the GST Portal in November 2021. In that phase, new features like the revamped dashboard, enhanced B2B tables and information regarding table / tile documents count were provided. In continuation to the same, the next phase of the GSTR-1 / IFF improvements is now available on the Portal, for which an advisory has been issued by team GSTN on 27 April 2022.
The following changes have been done in this phase of the GSTR-1 / IFF enhancements
|
Improvement / Enhancement on GST portal |
Before |
Now |
Benefit of Improvement / Enhancement |
|
Removal of ‘Submit’ button before filing |
Filing of GSTR-1 / IFF was done in 2 steps in which taxpayer had to upload the data and then needed to submit the data first and then finally file the return. After submitting the data, taxpayer was unable to modify the data |
‘Submit’ and ‘File’ buttons are replaced with a ‘File Statement’ button making the filing a simpler ‘Single-step filing’ process |
Taxpayers will get flexibility to add / modify records till the filing is completed by pressing the file statement button |
|
Consolidated Summary |
GSTR-1 summary generated from the portal did not report table wise summary of taxable value and tax amounts in separate columns. Taxpayers had to use some other software for the confirmation |
Taxpayers will now be shown a table-wise consoli- dated summary before actual filing ofGSTR-1/IFF. This consolidated summary will have a detailed andtable-wise summary of the records added by the taxpayers |
This will provide a complete overview of the records added in GSTR-1 / IFF before actual filing |
|
Recipient wise Summary |
There was no option to generate recipient wise summary |
The consolidated summary page will also provide recipient-wise summary, containing the total value of the supplies and the total tax involved in such supplies for each recipient The recipient-wise summary will be made available with respect to the following tables of GSTR-1 / IFF, which have counter-party recipients: • Table 4A: B2B supplies • Table 4B: Supplies attracting reverse charge notes |
Ease of reference |
NOTIFICATION NO. 07/2022, DATED 26-05-2022
No late fees for filing of GSTR-4 of FY 2021-22 till 30th June, 2022
Editorial Note : The CBIC has issued notification to waive off late fees for delay in filing of Form GSTR-4 of FY 2021-22 from 1st May, 2022 till 30th June, 2022.
CBIC issued several notifications to change Custom Duty & Export Duty on various products
Editorial Note : The CBIC has issued several notifications to change Custom Duty & Export Duty on various products which shall be effective from 22nd May, 2022
NOTIFICATION NO. 02/2022-CEN- TRAL EXCISE, DATED 21-05-2022
CBIC reduces excise duty on Petrol & Diesel: Notification
Editorial Note : The CBIC has issued notification to reduce the central excise duty on Petrol and Diesel by Rs. 8 per litre and Rs. 6 per litre respectively which shall be effective from 22nd May, 2022.
NOTIFICATION NO. 43/2022 – CUSTOMS (N.T.), DATED 19-05-2022
CBIC notified exchange rates effective from May 20th, 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 20th May 2022, for import and export of goods.
NOTIFICATION NO. 4/2015-2020, DATED 11-05-2022
New RoDTEP schedule in appendix 4R notified for implementation w.e.f Jan. 1, 2022 Editorial Note : The Government has notified new RoDTEP schedule in appendix 4R for implementation w.e.f Jan. 1, 2022.
RECENT JUDICIAL RULINGS ON GST
Union of India v. Mohit Minerals (P.) Ltd. – [2022] 138 taxmann.com 331 (SC)
Held that GST on ocean freight paid in case of import of goods is unconstitutional. Also, the Indian importers who had paid such tax will be eligible to refund.
This judgement may change the landscape of those provisions under GST which are subject to judicial review. As the court has gone ahead to categorically hold that the GST Council recommendations have only persuasive value, there will be prag- matic approach to the provisions which are subject to judicial review by way of challenge to the constitutionality of such provisions based on GST Council recommendations.
Hon Justice quoted Cooperative federalism, the Centre and the States were “autonomous, independent and even competing units” while making GST laws. “Cooperative federalism is treated like a marble cake federalism due to the integrated approach of the federal units,” he compared. Cooperative federalism also known as marble-cake federalism, is defined as a flexible relationship between the federal and state governments in which both work together on a variety of issues and programs.
CLASSIFICATION OF GOODS
Dental blanks : Zirconium Oxide Ceramic Dental Blanks can be treat- ed as ceramicware used in laboratory and classifiable under heading 6909 attracting 18% GST; such goods are not classifiable under tariff item 9021 21 00 as artificial teeth – Jyoti Ceramic Industries (P.) Ltd., In re – [2022] 137 taxmann.com 390 (AAR – MAHARASHTRA)
CLASSIFICTION OF SERVICES
Dental Care : Zirconium Oxide Ceram- ic Dental Blanks can be treated as ceramicware used in laboratory and classifiable under heading 6909 attracting 18% GST such goods are not classifiable under tariff item 9021 21 00 as artificial teeth – Jyoti Ceramic Indus- tries (P.) Ltd., In re – [2022] 137 taxmann.com 390 (AAR – MAHARASHTRA)
Teeth bleaching and dental veneers : Bleaching of teeth and dental veneers for smile designing is to be considered as cosmetic surgery/treatment and not as healthcare; same is classifiable under heading 9972 and is liable to 18% GST – Jyoti Ceramic Industries (P.) Ltd., In re – [2022] 137 taxmann.com 390 (AAR – MAHARASHTRA)
SECTION 2(6) OF INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – EXPORT OF SERVICES
Where applicant is rendering marketing services to IIUL, since main intention of agreement between IIUL and applicant is for increasing sales of Intel products, place of provision of services is same that of location of supplier of services which Is in India and thus, said supply of services does not qualify as export of service as per section 13(3)(a) – MEK Peripherals India (P.) Ltd., In re – [2022] 138 taxmann.com 54 (AAR – MAHARASHTRA)
RULE 2(f) OF PLACE OF PROVISION OF SERVICES RULES, 2012 – INTERMEDIARY
Appellant was neither related to import of goods nor any sale of goods and also nor concerned with payment against those goods, therefore, appellant not “Intermediary” – Raaga Associates (P.) Ltd. v. Commissioner of Central Excise & Service Tax – [2022] 138 taxmann.com 55 (Chandigarh – CESTAT)
SECTION 15 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – SUPPLY – TAXABLE SUPPLY, VALUE OF
Where applicant is a reseller of Intel Products which they purchase from various distributors of Intel Inside US LLC (IIUL) and applicant is entitled to earn certain incentives directly from IIUL, Incentives received by applicant cannot be treated as trade discount as there is no direct sale transaction between IIUL and applicant – MEK Peripherals India (P.) Ltd., In re – [2022] 138 taxmann.com 54 (AAR – MAHARASHTRA)
Where IIUL has appointed various distributors to sell company’s products in India and applicant is not a distribu- tor, some amount , in form of incentives, is flowing from IIUL to applicant, in absence of supply of goods at all between IIUL and applicant it appear’s that IIUL is paying consideration(in form of incentives) to applicant for receiving marketing services which would augment sale of Intel products – MEK Peripherals India (P.) Ltd., In re – [2022] 138 taxmann.com 54 (AAR – MAHARASHTRA)
SECTION 49A OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – UTILISATION OF INPUT TAX CREDIT SUBJECT TO CERTAIN CONDITIONS
Amendment made to Notification No. 16/2015 Cus., dated 1-4-2015 vide Notification No. 79/2017 dated 13-10-2017 allowing exemption of IGST paid on import would be applicable to imports made till 13-10-2017; refund of ITC of IGST under EPCG Scheme would be admissible only after debiting such credit from Electronic Credit Ledger – Radheyshyam Spinning (P.) Ltd. v. Union of India – [2022] 137 taxmann.com 391 (Gujarat)
SECTION 149 OF CUSTOMS ACT, 1962 – AMENDMENT OF DOCUMENTS
As no time limit prescribed for permitting amendment of shipping bills under section 149 of Customs Act, 1962, Department cannot rely upon circular to deny amendment on ground of limitation – Carboline India (P.) Ltd. v. Commissioner of Customs – [2022] 138 taxmann.com 56 (Chennai – CESTAT)
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