GST REGULATORY UPDATES AUGUST 2022
GSTN implemented mandatory mentioning of 6 digit HSN codes in GSTR-1 for turnover above 5 crore
Editorial Note: The GSTN has implemented mandatory mentioning of 6 digit HSN codes in GSTR-1 for turnover above 5 crore and it shall be available w.e.f. 1st August, 2022.
INSTRUCTION NO. 15/2022- CUSTOMS, DATED 20-07-2022
CBIC clarifies that no change in Customs Duty on Open Cells in LCD & LED TV Panels
Editorial Note : The CBIC has issued instruction to clarify that no change in Customs Duty on Open Cells used in LCD & LED TV Panels and it shall be levied at the rate of 5%.
New Table inserted in GSTR-3B for reporting supplies notified u/s 9(5): GSTN Update
Editorial Note : The GSTN has informed that a new table is being added as per Notification No. 14/2022 – Central Tax dated 5th July, 2022 in GSTR-3B where both ECOs and registered persons can report supplies made under Section 9(5).
CIRCULAR NO. 42/2015-2020, DATED 27-07-2022 DGFT issues clarifications on compulsory registration under NFMIMS
Editorial Note : The DGFT has received several representations from Trade and Industry seeking clarification on Non-Ferrous Metal Import Monitoring System (NFMIMS). In this regard, policy circular has been issued to provide clarifications on compulsory regis- tration under NFMIMS and several other issues related to NFMIMS.
CIRCULAR NO. 43/2015-20, DATED 27-07-2022
No requirement to submit Bill of Export for supplies made to SEZ prior to 1.4.2015 under EPCG Authorizations
Editorial Note : Now, there is no requirement to submit Bill of Export for supplies made to SEZ prior to 1.4.2015 under EPCG Authorizations and therefore, the exporters can submit corroborative evidences as prescribed in lieu of Bill of Export for the purpose of discharge of export obligation under EPCG Authorizations.
FILE NO. RCD-01001/7/2021-REGULATO- RY-FSSAI-PART(1), DATED 27-07-2022
18% GST on services provided by FSSAI; State levies are subject to GST under reverse charge: FSSAI Order
Editorial Note : With effect from 18th July 2022, the Government has withdrawn the GST exemption on services provided by the Food Safety and Standards Authority of India (‘FSSAI’) to Food Business Operators by way of licensing, registration and analysis/testing of food. In other words, these services of FSSAI are now subject to GST. In connection with this change, FSSAI has issued an order explaining the GST applica- bility on different services.
CIRCULAR NO. 11/2022- CUSTOMS, DATED 29-07-2022
Extension of Customs clearances beyond normal working hours in Inland Container Depots
Editorial Note : The CBIC has extended the facility of 24×7 Customs clearance to Inland Container Depots (ICDs) across the country, so as to cater to the require- ments of the trade. In this regard, a circular has been issued.
RECENT JUDICIAL RULINGS ON GST CLASSIFICATION OF GOODS
Tamarind Kernal Powder : Tamarind Kernal Powder (TKP) is classifiable under tariff item 1302 39 90 – Colourtex Industries (P.) Ltd., In re – [2022] 140 taxmann.com 552 (AAR – GUJARAT)
CLASSIFICATION OF SERVICES
Education service : Supply of pre-school education service is exempt from GST in terms of entry at Sl. No. 66 of Notification No.
12/2017-CT(R) when school quali- fies as an educational institution as perdefinitiongiveninnotification- Rahul Ramchandran (Inspire Acad- emy), In re – [2022] 140 taxmann.com 551 (AAR – MAHARASHTRA)
Pre-school education service : Supply of pre-school education service to students against a fee is exempt from payment of GST in terms of entry at Sl. No. 66 of Notifi- cation No. 12/2017-CT(R) – Rahul Ramchandran (Inspire Academy), In re – [2022] 140 taxmann.com 551 (AAR – MAHARASHTRA)
Education service : Supply of goods such as books, etc. to pre-school students without any consideration is in nature of composite supply where principal supply is to provide pre-school education service; exemption is available as principal supply is already exempt in terms of entry at Sl. No. 66 of Notification No. 12/2017-CT(R) – Rahul Ramchan- dran (Inspire Academy), In re – [2022] 140 taxmann.com 551 (AAR – MAHARASHTRA)
Supply of goods – Pre-school students : Supply of goods for consideration by educational institu- tion being a standalone supply of goods, cannot be implied to be a part of composite supply; exemp- tion is not available on such supply
Transportation service : Supply of transportation service by educa- tional institution to pre-school students without any consider- ation is exempt from payment of GST in terms of entry at Sl. No. 66 of Notification No. 12/2017-CT(R) – Rahul Ramchandran (Inspire Acad- emy), In re – [2022] 140 taxmann.com 551 (AAR – MAHARASHTRA)
Canteen service : Supply of canteen service by educational institution to faculty and staff for consideration is exempt from payment of GST in terms of entry at Sl. No. 66 of Notification No. 12/2017-CT(R) – Rahul Ramchan- dran (Inspire Academy), In re – [2022] 140 taxmann.com 551 (AAR – MAHARASHTRA)
Works contract service : Conces- sional GST rate of 12% is not appli- cable on works contract service of construction of IT towers for government entity as it is meant for commerce/industry; GST is payable at 18% – Siddhartha Constructions, In re – [2022] 140 taxmann.com 653 (AAR- TELANGANA)
SECTION 54 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – REFUND – TAX, REFUND OF
Where rate of drawback of exported product was same in both cases, whether cenvat credit facility was availed or not, refund could not be denied on technical ground – Guja- rat Nippon International (P.) Ltd. v. Union of India – [2022] 140 taxmann.com 649 (Bombay) Where deficiency memo was issued by department beyond statu- tory period and same was not communicated to assessee, fresh application of refund of tax paid in excess to be filed by assessee – Vodafone Mobile Services Ltd. v. Union of India – [2022] 140 taxmann.com 650 (Madhya Pradesh)
SECTION 97 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – ADVANCE RULING – APPLICATION FOR
Admissibility of input tax credit on common input services falls within scope of advance ruling – Bharatiya Reserve Bank Note Mudran (P.) Ltd., In re – [2022] 140 taxmann.com 654 (AAAR-KARNA- TAKA)
Question as to whether method that was followed for claiming ITC was as per provisions; is not within scope of advance ruling – Bharatiya
Reserve Bank Note Mudran (P.) Ltd., In re – [2022] 140 taxmann.com 654 (AAAR-KARNA- TAKA)
Question as to whether financial year to be considered for calculat- ing ineligible ITC; is not within scope of advance ruling – Bharatiya Reserve Bank Note Mudran (P.) Ltd., In re – [2022] 140 taxmann.com 654 (AAAR- KARNATAKA)
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