REGULATORY UPDATES NOTIFICATION NO. 16/2015-20, DATED 01-07-2022
Amendment in FTP to extend IGST & Compensation Cess exemption on imports under AA/EPCG etc.
Editorial Note : The exemption of IGST and Compensation Cess on import of goods under Advance Authorisation, EPCG and EOU has been extended without any time restrictions. The corresponding amendment is made under FTP 2015-20 under Para 4, 5 and 6 to provide for exemption from IGST and Compensation cess on imports under the above specified export incentive schemes.
NOTIFICATION NO. 15/2015-2020, DATED 01-07-2022
Last date to submit application under MEIS for exports made between 01.09.2020 to 31.12.2020 extended till 31.08.2022
Editorial Note : The last date for submitting application under MEIS for exports made between 01.09.2020 to 31.12.2020 has been extended till 31.08.2022. In this regard, notification has been issued.
NOTIFICATION NO. 56/2022- CUSTOMS (N.T.), DATED 30-06-2022
Transitional provisions under SCMTR Regulation 15(2) further extended till 31st Dec. 2022 to enable submission of manifests under erstwhile regulations
Editorial Note : CBIC has issued notification to further extend the transitional provisions of Sea Cargo Manifest and Transhipment Regulations (SCMTR), 2018, till 31st December 2022 to enable submission of manifests under erstwhile regulations and to enable carriers continue mandatory filing on parallel basis.
NOTIFICATION NO. 57/2022 – CUSTOMS (N.T.), DATED 30-06-2022
CBIC issues conditions & restrictions for re-import of returned jewellery exported through the courier mode on e-commerce platform
Editorial Note : The CBIC has issued conditions & restrictions for re-import of returned jewellery exported through the courier mode on e-commerce platforms. In this regard, amendment has been introduced in Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010.
TRADE NOTICE NO. 13/2022-23, DATED 30-06-2022
Existing e-BRC portal/website is upgraded to new IT platform Editorial Note : The DGFT has issued trade notice to inform that existing e-BRC portal/website is upgraded to new IT platform. The old existing platform is proposed to be discontinued from end of July 2022.
NOTIFICATION NO. 32/2022-CUSTOMS, DATED 30-06-2022
CBIC exempts Additional Customs Duty on import of Petroleum, Crude and Aviation Turbine Fuel Editorial Note : The CBIC has issued notification to exempt the levy of Additional Customs Duty on import of Petroleum, Crude and Aviation Turbine Fuel.
NOTIFICATION NO. 07/2022-CENTRAL EXCISE, DATED 30-06-2022
No Special Additional Excise Duty on Crude Petroleum produced after exceeding production of FY 2021-22
Editorial Note : For the Financial year, 2022-23, the Special Additional Excise Duty shall not apply to such quantity that is produced by a person immediately after exceeding his production of crude petroleum oil during the Financial Year 2021-22. In this regard, notification has been issued.
CIRCULAR NO. 09/2022- CUSTOMS, DATED 30-06-2022
CBIC issued SOPs for simplified regulatory framework for e-commerce exports of jewellery through courier
Editorial Note : The CBIC has issued SOPs for simplified regulatory framework for e-commerce exports of jewellery through courier. In this regard, a Circular has been issued.
CBIC issued several exemption notifications under Excise Laws
Editorial Note : The CBIC has issued several exemption notifications under Excise Laws to provide exemptions related to Air Turbine Fuel, Crude Petroleum, Motor Spirit and High Speed Diesel.
Excise Duty levied on export of Petrol & Diesel: Notification
Editorial Note : The Government has levied additional duty of excise and
special additional excise duty on Petrol & Diesel cleared for exports.
Key Recommendations of the 47th GST Council Meeting
Relief for E commerce Suppliers The GST Council decided to remove compliance obstacles for online retailers.
• It made registration easier for e-commerce suppliers and helped them pay less in taxes by allowing them to register under the composition system for intrastate supplies.
• Once the IT system is in place, the new composition scheme for e-commerce suppliers for intrastate online sales will be put into effect on January 1st, 2023.
• It means that these intrastate e-commerce vendors will no longer be required to register for mandatory GST if their annual revenue does not surpass the lower limitations established for particular states/UTs, which are Rs. 40 lakh for commodities and Rs. 20 lakh for services.
• Regardless of turnover, interstate providers using e-commerce platforms are obligated to register.
GST Council approved GSTR-3B modifications
The GST Council approved GSTR-3B modifications (Monthly GST return for taxpayers).
For improved compliance and ease of compliance, it allowed auto-population of the majority of details in Form GSTR-3B and annual returns in Form GSTR-9.
The new GST return system would be discontinued since it is no longer necessary, the Council stated clearly.
A proposal for extensive changes to GSTR-3B will be made available to the public for comment.
Relaxation in GSTR 9
For the remainder of FY 2021–2022, those having threshold turnovers below Rs. 2 crore are still exempt from filing GSTR-9 and GSTR-9A.
The deadline for issuing decisions relating to claims tied to the annual return due date under Section 73 of the CGST Act for FY 2017–18 has been extended until September 30, 2023.
Due date extension for GSTR 4
Instead of the former extension of up to 30 June 2022, GSTR-4 for FY 2021–22 will now receive a waiver of the late charge for submitting until July 28, 2022.
The CMP-08 deadline for April–June 2022 (Q1 of FY 2022-23) has been extended from July 18–July 30, 2022
Rates
The Council agreed on rationalization of GST rates by increasing tariffs on a host of goods and services (such as LED lamps, solar water heater, leather, works contract services for specified works) for correction of inverted duty structure to avoid the accumulation of input tax credit resulting in blockage of working capital. Various exemptions on goods and services have also been withdrawn, such as taxing hotel accommodation priced up to Rs 1,000 and hospital accommodation (excluding ICU) exceeding Rs 5,000 per day.
RECENT JUDICIAL RULINGS ON GST CLASSIFICATION OF GOODS
Laboratory reagents : All laboratory reagents and other goods falling under Heading 3822 are eligible for concessional rate of GST at 12% in terms of CBIC Circular No. 163/19/2021-GST – Imperial Life Sciences (P.) Ltd., In re – [2022] 139 taxmann.com 529 (AAAR-Haryana)
SECTION 11B OF THE CENTRAL EXCISE ACT, 1944 – CLAIM FOR REFUND OF DUTY AND INTEREST, IF ANY, PAID ON SUCH DUTY
Where appellants paid duty ‘under protest’ under Reverse
Charge Mechanism for legal consultancy services received for winding up of their business, refund of said duty was admissible as appellant cannot be saddled will any tax liability only because it was still registered under Companies Act – Lehman Brothers Securities (P.) Ltd. v. Commissioner of Central Tax, Central Excise & Service Tax, Mumbai – [2022] 139 taxmann.com 533 (Mumbai – CESTAT)
SECTION 54 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – REFUND – TAX, REFUND OF
Where demand of ITC was raised on account of difference between ITC claimed by assessee as compared to that shown by supplier remedy by way of appeal was to be availed, writ petition would not be maintainable – Progressive Stone Works v. Joint Commissioner (ST) – [2022] 139 taxmann.com 531 (Madras)
SECTION 69 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – SEARCH, SEIZURE, ETC. – POWER TO ARREST
Where petitioner had committed fraud of availing and passing of fake ITC, anticipatory bail was to be denied as custodial interrogation of petitioner was required to find out his modus operandi as well as involvement of others in GST fraud – Gurbax Lal @ Happy Nagpal v. State of Punjab – [2022] 139 taxmann.com 295 (Punjab & Haryana)
SECTION 129 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – DETENTION, SEIZURE AND RELEASE OF GOODS AND CONVEYANCES IN TRANSIT
Where assessee claimed to be owner of goods seized in transit and had replied to show cause notice and also deposited tax and penalty payable, order passed for purpose of release of such goods by holding that seized goods were not traceable to any bona fide owner was not sustainable – S.K. Steels v. State of Uttar Pradesh – [2022] 139 taxmann.com 294 (Allahabad)
SECTION 171 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – ANTI-PROFITEERING MEASURE
Profiteering is established when prices of movie admission tickets were not commensurately reduced when GST rate was reduced to 12% from 18% and instead, base price was increased; NAA directs reduction of price commensurately and deposit of profiteered amount with interest in Consumer Welfare Fund – Principal Commissioner,Hyderabad v. Sri Laxmi Kale Mandir 70mm Theatre – [2022] 139 taxmann.com 530 (NAA)
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