GST REGULATORY UPDATES SEPT 2022
PUBLIC NOTICE 27/2015-2020, DATED 29-09-2022
Time limit for filing Annual Return under Para 5.15 of HBP 2015-2020 extended till Dec 31, 2022
Editorial Note : The time limit of furnishing the annual report by Authorisation holder to the concerned RA on fulfilment of the export obligation under Para 5.15 of Handbook of Procedures (HBP) 2015-2020 has been extended till December 31, 2022
NOTIFICATION NO. 37/2015-2020, DATED 29-09-2022
Notification issued for extending Foreign Trade Policy 2015-2020 till March 31, 2023
Editorial Note : The validity of the existing Foreign Trade Policy 2015-2020 which was earlier valid upto September 30, 2022 has now been extended till March 31, 2023.
NOTIFICATION NO.20/2022 – CENTRAL TAX, DATED 28-09-2022
CBIC rescinds Notification No. 20/2018-CT extending time limit for refund by UIN entities
Editorial Note : The CBIC has rescinded Notification No. 20/2018-CT which prescribed the extended time limit of eighteen months from the last date of the quarter in which such supply is received for refund by UIN entities. This notification had become irrelevant due to amendment introduced by Finance Act, 2022 by providing time limit of 2 years in CGST Act itself.
NOTIFICATION NO.19/2022–CENTRAL TAX, DATED 28-09-2022
CBIC issues Central Goods and Services Tax (Second Amendment) Rules, 2022
Editorial Note : The CBIC has issued Central Goods and Services Tax (Second Amendment) Rules, 2022 to give effect to the changes introduced by the Finance Act, 2022. These changes shall be effective from October 1st, 2022.
NOTIFICATION NO.18/2022–CENTRAL TAX, DATED 28-09-2022
CBIC notifies all amendments of Finance Act, 2022 w.e.f October 1st, 2022
Editorial Note : The CBIC has notified all the provisions of Finance Act, 2022 related to GST which shall be effective from October 1st, 2022. The key changes include availment of ITC till 30th November of next financial year, credit notes can be issued till 30th November of next financial year, omission of sections 42, 43 and 43A etc.
New functionalities for taxpayers on GST Portal in August 2022: GSTN Update
Editorial Note : The GSTN has issued an update to inform about the new functionalities made available for taxpayers on GST Portal. These functionalities pertain to different modules such as Registration, Returns, Refund and other miscellaneous topics.
INSTRUCTION NO. 23/2022-CUSTOMS, DATED 09-09-2022
Clarification regarding requirement of AGMARK certification for import of food products
Editorial Note : The CBIC has issued instruction to provide clarification that the requirement of AGMARK certification for import of food products shall be kept in abeyance till further orders.
NOTIFICATION NO. 74/2022 – CUSTOMS, DATED 09-09-2022
Editorial Note : The CBIC has issued guidelines for launching prosecution under CGST Act, 2017 covering procedure for prosecution, monetary limits, procedure for withdrawal etc. It is also provided that prosecution should not be filed merely because a demand has been confirmed in the adjudication proceedings.
NEW FUNCTIONALITIES FOR TAXPAYERS ON GST PORTAL
ReturnsGeneration of Form GSTR-11 [summary return for taxpayers registered as Unique Identity Number (UIN) holders] based on Form GSTR-1 (outward supply return) filed by the suppliersRefundFiling for refund in Form RFD- 01 (application for refund) for exports without payment of taxFront OfficeUpdation of statistics on GST Portal
| Relating To | Form/Functionality | Detailed Information |
| Registration | Enabling CORE amendment link for taxpayers who fail to update the bank account | • Earlier if the taxpayers failed to update their bank account details on the GST portal within 45 days post grant of registration, they were barred from filing an application for core amendment in their registration details. There could be scenarios, such as updating bank account details through a non- core amendment, which would fail if their name were to be updated in Central Board of Direct Tax (CBDT) database post grant of registration
• Now the filing of core amendment applications, pending bank account updation has been enabled on GST portal |
| Returns | Changes implemented in
Form GSTR-3B (summary return) |
• As per section 9(5) of CGST Act, 2017, every electronic commerce operator (ECO) is required to pay tax on sale of certain services such as passenger transport, accommodation, housekeeping & restaurant services made through them
• Earlier every ECO and taxable person providing such services through ECO was required to report the detail of sales made in the common table of form GSTR-3B i.e. 3.1.a where detail of sale made other than export and nil rated supply was reported
• Now for reporting of such sales made , a new table 3.1.1 has been added in Form GSTR-3B from July 2022 onwards wherein both ECO and taxable person providing such services through ECO are required to to report the details |
| Late fee waiver for delayed filing of form GSTR-4 (annual return for composition taxpayers) for FY 2021-22 upto 28 July 2022 | • Form GSTR-4 is an annual return to be filed by taxpayers who have opted for composition scheme. For FY 2021-22, the due date of filing was 30 April 2022. In case of any delay, a late fee of Rs. 50 per day is chargeable subject to maximum of Rs. 2000. Earlier, the Central Board of Indirect Taxes & Customs (CBIC) vide notification no. 12/2022 has extended the waiver of late fees upto 28 July 2022
• Where any taxpayer had filed form GSTR-4 earlier with payment of late fee, the same will be refunded by the system and credited to the electronic cash ledger (ECL) of the concerned taxpayer |
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| • Form GSTR-11 is a quarterly return to be filed by taxpayers who have been issued UIN to get tax credit or refund under GST. UIN taxpayers file details of inward supplies in Form GSTR-11 and subsequently claim refund for the relevant quarter
• Earlier to facilitate and authenicate their refund claims, auto- population of Form GSTR-11 on basis of returns filed by the suppliers had been enabled on the GST portal. However, auto-populated form includes the details of inward supplies received on reverse charge (RCM) basis for which the refund is not eligible to UIN taxpayers. Now auto-population of such details has been disbaled on GST portal |
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| Harmonized System of Nomenclature (HSN) based validation implemented in Form GSTR-9 (annual return filed by regular taxpayers) | • CBIC made it mandatory to report HSN at minimum of 4-digit level for taxpayers having annual aggregate tunrover (AATO) upto Rs. 5 crore and 6-digit level for taxpayers having AATO more than Rs. 5 crore
• Earlier no tool was available on GST portal relating to validation of HSN codes reported in Table-17 of Form GSTR- 9 (annual return by regular taxpayers). Now such HSN based validation has been implemented in Form GSTR-9 |
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| Change in HSN length validation in Form GSTR-1 (statement of outward supplies) | • CBIC made it mandatory to report HSN at 6-digit level for taxpayers having AATO more than Rs. 5 crore
• Earlier the minimum length of HSN to be entered in table 12 of Form GSTR-1 for taxpayers having AATO more than Rs. 5 crore was 4-digits. Now such minimum length has been raised to 6 digits |
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| • The taxpayers are required to upload the details of invoices in statement 3 while filing for refund in Form RFD-01 under category ‘refund of unutilized Input Tax Credit (ITC) on account of exports (without payment of tax)’
• As per para 47 of circular no. 125/44/2019-GST, dated 18 November 2019, if the export value declared on the shipping bill is different than the value declared in the tax invoice, the lower of the 2 values would be considered for processing of refund on account of export of goods made without payment of tax. Therefore, a column ‘FOB value’ has been added in statement 3 format for the taxpayers to declare the value while filing application for refund |
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| • A statistical report on 5 years of GST has been made available on the GST Portal under Downloads > GST Statistics section |
RECENT JUDICIAL RULINGS ON GST
SECTION 2(30) OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – SUPPLY – COMPOSITE SUPPLY
Accommodation services with provisions of food and other services provided by applicant to ASML are in conjunction with each other and therefore is a naturally bundled composite supply of services with ‘Provision of Accommodation’ as principle supply – Healersark Resources (P.) Ltd, In re – [2022] 142 taxmann.com 345 (AAAR – TAMILNADU)
SECTION 11 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – LEVY AND COLLECTION OF TAX – EXEMPTION – POWER TO GRANT
Renting of a residential dwelling by a proprietor of a registered proprietorship firm, who rents it in his/her own personal capacity for use as his/her own residence as well as not for use in course or furtherance of business of his/her proprietorship firm and such renting shall is on his/her own account and not proprietorship firm shall be exempt from GST – Seema Gupta v. Union of India – [2022] 142 taxmann.com 564 (Delhi)
Per day equivalent consideration for providing composite supply of Hospitality services by applicant to ASML are below one thousand stipulated for one day, therefore applicant is eligible of exemption Sl. No 14 of Notification No 12/2017-Central tax (Rate) dated 28-06-2017 – Healersark Resources (P.) Ltd, In re – [2022] 142 taxmann.com 345 (AAAR – TAMILNADU)
Project Development Services and Project Management Consultancy Services provided by sub-contractor to recipient having contract with State Government Nodal Agency for consultancy services qualify as pure services and same are exempted from payment of GST – KDS Services (P.) Ltd., In re – [2022] 142 taxmann.com 556 (AAR- UTTAR PRADESH)
SECTION 30 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – REGISTRATION – REVOCATION OF CANCELLATION OF
Application filed in July, 2021 for restoration of GST registration certificate cancelled prior to 12-6-2020 could not be held time barred in view of order passed by Supreme Court excluding period from 15-3-2020 to 28-2-2022 in view of COVID Pandemic and applicant having filed GST returns and also paid self assessed GST, registration was directed to be restored – Tahura Enterprise v. Union of India – [2022] 142 taxmann.com 557 (Gujarat)
SECTION 50 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – PAYMENT OF TAX – INTEREST ON DELAYED PAYMENT
Liability to pay interest for belated payment of tax under section 50 of Central Goods and Services Tax Act, 2017 is not only self-imposed but also automatic without any requirement for determination – Orissa Stevedores Ltd. v. Union of India – [2022] 142 taxmann.com 559 (Orissa)
SECTION 83 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – DEMANDS AND RECOVERY – PROVISIONAL ATTACHMENT
Provisional attachment of bank accounts was to be lifted, provided cumulative amount appearing as credit balance in all bank accounts was remitted to revenue to protect its interests pending adjudication – Sun Flame Trading (P.) Ltd. v. Commissioner of Central Excise & CGST Commissionerate Delhi South – [2022] 142 taxmann.com 558 (Delhi)
SECTION 107 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – APPELLATE AUTHORITY – APPEALS TO
Writ jurisdiction was not maintainable against assessment order in view of existence of statutory appellate remedy under CGST Act, 2017 – B.M. Construction Coochbehar v. Additional Commissioner of CGST and CE – [2022] 142 taxmann.com 555 (SC)
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