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Writer's pictureCA Hemant Singhal

GST MONTHLY | 5th March, 2023


1. GST DEADLINES


1.1.Deadlines | March 23


GST Compliance Calendar – March 2023




2. 49th GST COUNCIL MEETING RECOMMENDATIONS


2.1 RCM extended to Courts and Tribunal in respect of taxable services

Notification No. 02/2023-CT; Dated 28/02/2023

It has been decided to extend the dispensation available to Central Government, State Governments, Parliament and State Legislatures with regard to payment of GST under reverse charge mechanism (RCM) to the Courts and Tribunals also in respect of taxable services supplied by them such as renting of premises to telecommunication companies for installation of towers, renting of chamber to lawyers etc.


2.2 Capacity based Taxation and Special Composition Scheme in certain Sectors


With a view to plugging the leakages and improving the revenue collection from the commodities like pan masala, gutkha, and chewing tobacco, the council approved the recommendations of GoM including inter alia, that the capacity-based levy not to be prescribed; compliance and tracking measures to be taken to plug leakages/evasions; exports of such commodities to be allowed only against LUT with a consequential refund of accumulated ITC; compensation cess levied on such commodities to be changed from ad valorem to specific tax based levy to boost the first stage of the revenue.


2.3 Changes in GST Rates on Loose Rab Jaggerey and Packaged and labelled Rab

Notification No. 04/2023-CT; Dated 28/02/2023


The GST Council reduced the GST Rate on Rab Jaggery from 18% to 5% on pre-packaged and labelled Rab. If the same is sold without packaging and label, it will not attract any GST. In addition, the council has decided to regularize payment of GST on Rab Jaggery during the past period on “as is basis” due to genuine doubts over its classification and applicable GST rate.

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2.4 Changes in GST Rates on Pencil Sharpener

Notification No. 04/2023-CT; Dated 28/02/2023


The Council, Inter alia, reduced the GST Rate of Pencil Sharpeners from 18% to 12%, in an attempt to rationalize the rates.


2.5 Extension of Time Limit for Revocation of Registration


The Council has recommended amendment in section 30 of CGST Act, 2017 and rule 23 of CGST Rules, 2017 so as to provide that-

‘the time limit for making an application for revocation of cancellation of registration be increased from 30 days to 90 days. The GST Council also decided that, where the registered person fails to apply for such revocation within 90 days, the said time period may be extended by the Commissioner or an officer authorised by him in this behalf for a further period not exceeding 180 days. ‘


2.6 Amnesty Scheme for revocation of Cancelled Registration


The Council has also recommended that an amnesty may be provided in the past cases, where registration has been canceled on account of non-filing of the returns, but the application for revocation of cancellation of registration could not be filed within the time specified in section 30 of CGST Act, by allowing such persons to file such application for revocation by a specified date, subject to certain conditions.


2.7 Extension on exemption available to Educational Institutions

Notification No. 01/2023-CT; Dated 28/02/2023


It has been decided to extend the exemption available to educational institutions and central and state educational boards for the conduct of entrance examinations to any authority, board, or body set up by the Central Government or State Government including National Test Agencies for the conduct of entrance examination for admission to educational institutions.


2.8 Late fees Rationalised for belated filing of Annual GST Returns in FORM GSTR-9


One of the key decisions of the council meeting includes rationalization of late fee for belated filing of annual GST return GSTR-9. Presently, the late fee is Rs 200 per day (Rs 100 CGST + Rs 100 SGST), subject to a maximum of 0.5% of the turnover in the State or UT (0.25% CGST + 0.25% SGST), is payable in case of delayed filing of annual return in FORM GSTR-9. The Council recommended to rationalize this late fee for delayed filing of annual return in FORM GSTR-9 for FY 2022-23 onwards as follows:




2.9 Consensus Reached on Constitution of GST Tribunal


The proposed Structure of GST Tribunal will have a National level Principal bench, along with separate benches at state levels. Each bench is expected to have strength of Four Members, 2 Judicial and 2 Technical. One Judicial Member will be from the Centre, and the other from the state. The same applies to Technical Member composition also. i.e., both the State and Centre will have equal representation in the litigation proceedings, resembling the constitution of Authorities for Advance Ruling (AAR).


2.10 Rationalization of Provision of Place of Supply of services of transportation of Goods

The Council recommended to rationalize the provision of place of supply of services of transportation of goods by deletion of section 13(9) of IGST Act, 2017 as to provide that the place of supply of services of transportation of goods, in cases where location of supplier of services or location of recipient of services is outside India, shall be the location of the recipient of services.


2.11 Amendment to Section 62 of CGST Act, 2017


The best judgement assessment order issued under sub section (1) of section 62 is deemed to be withdrawn if the relevant return is filed within 30 days of service of the said assessment order. The council recommended to amend section-62 so as to increase the time period for filing of return for enabling deemed withdrawal of such best judgement assessment order, from present 30 days to 60 days, extendable by another 60 days, subject to certain conditions.


2.12 Amnesty Schemes


i) Revocation of Cancellation of Registration:


The Council has also recommended that an amnesty may be provided in the past cases, where registration has been cancelled on account of non-filing of the returns, but application for revocation of cancellation of registration could not be filed within the time specified in section 30 of CGST Act, by allowing such persons to file such application for revocation by a specified date, subject to certain conditions.


ii) Withdrawal of best judgement assessment order:

The Council has also recommended to provide an amnesty scheme for conditional deemed withdrawal of assessment orders in past cases where the returns could not be filed within 30 days of the assessment orders but has been filed along with due interest and late fees upto a specified date, irrespective of weather the said appeal has been decided or not.


iii) In respect of pending Annual returns:

Amnesty in respect of pending returns in FORM GSTR-4, FORM GSTR-9 and FORM GSTR-10 by way of a conditional wavier/reduction of late fees.


3. GST PORTAL UPDATES


3.1 Introduction of Negative Values in Table 4 of GSTR-3B

Advisory dated: 17/02/2023


The Government vide Notification No. 14/2022 – Central Tax dated 05th July, 2022 has notified few changes in Table 4 of Form GSTR-3B for enabling taxpayers to report correct information regarding ITC availed, ITC reversal and ineligible ITC in Table 4 of GSTR-3B. Accordingly, following changes have been made in the GST Portal from January-2023 period onwards and shall be applicable from tax period - January 2023’ onwards.

a. The impact of credit note & their amendments will now be auto-populated in Table 4(A) instead of Table 4(B) of GSTR-3B. In case the value of credit notes becomes higher than sum of invoices and debit notes put together, then the net ITC would become negative and the taxpayers will be allowed to report negative values in Table-4A. Also, taxpayers can now enter negative values in Table 4D (2) of GSTR-3B.

b. The calculation logic of Comparison Report has now been changed accordingly.


3.2 Advisory on opting for payment of tax under the forward charge mechanism by a Goods Transport Agency (GTA)

Advisory dated:25/02/2023


In compliance of Notification No. 03/2022-Central Tax (Rate), dated 13th July, 2022, an option is being provided on the portal to all the existing taxpayers providing Goods Transport Agencies Services, desirous of opting to pay tax under the forward charge mechanism to exercise their option. They can navigate Services > User Services > Opting Forward Charge Payment by GTA (Annexure V), after login, to submit their option on the portal.


Option in Annexure V FORM is required to be submitted on the portal by the Goods Transport Agencies every year before the commencement of the Financial Year. The Option once filed cannot be withdrawn during the year and the cut-off date for filing the Annexure V FORM is 15th March of the preceding financial year.

Annexure V has been made available on the portal for GTA’s to exercise their option for the Financial Year 2023-24, which would be available till 15TH March, 2023.


3.3 ARN now shows Information regarding State and Centre Jurisdiction


The GST portal has recently been updated to include new features that will assist taxpayers in tracking their application status for new registrations or clarification documents. Specifically, the portal’s Application Reference Number (ARN) status will now display information regarding the state and centre jurisdiction related to the application.


4. JUDICIAL PRONOUNCEMENT


4.1 Stay of Recovery Proceedings till The Formation Of Tribunal

Gulf Oil Lubricants India Ltd V.s. Joint Commissioner of State Tax

The honourable Bombay High Court has held that as per clause 5 of Circular No. JC (HQ)- 1/GST/2020/Appeal/ADM-8 dated 26 May 2020 a declaration in Annexure-I has to be filed before jurisdictional tax officer stating that an appeal is proposed to be filed and If such declaration is not filed, then it would be presumed that taxpayer is not willing to file an appeal and recovery proceedings would be initiated - In Instant case, if petitioners had not filed declarations, petitioner would submit same within 15 days - Further, If recovery had already been undertaken, 15 days period was to be given to make such a declaration.


Disclaimer: “This material is intended to provide general information on particular subject(s) and is not an exhaustive treatment of such subject(s) or a substitute to obtaining professional service or advice. It is strongly recommended to seek professional advice before implementation of any of the aspects covered in the presentation.”)


Author can be reached at ca.hsinghal@gmail.com; +91 99172 11511

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