1. GST DEADLINES
1.1. Deadlines | Mar 22
● GST Compliance Calendar – Mar 2022
2. CIRCULARS
2.1 GST dept issues Clarifications regarding Issues relating to Incorrect Reporting of GSTR-1 and ITC Claim
(Circular No.02A of 2022; Dated:26/02/2022; Mumbai CGST Department)
With regard to the errors in GSTR-1 such as reporting B2B transactions as B2C, ultimately resulting in excess liability, it was clarified that the proper officer shall require the taxpayer to submit transaction-wise details of outward supplies and reconcile the same with the return, identify and figure out the transactions accordingly.
The clarification further dealt with the issue of difference in ITC claim of GSTR-3B and ITC available in GSTR-2A, stated that “in cases where the difference in ITC claim per supplier is Rs. 2.5 lakhs or more, ask the claimant to obtain certification from Chartered Accountant of the said supplier certifying the output transactions and tax paid thereon so as to comply with the provisions of section 16.”
3. NOTIFICATIONS
3.1 GST E-Invoice mandatory for entities having Turnover of Rs. 20 Crores
(Notification No. 01/2022-CT;Dated: 25/02/2022)
The Central Board of Indirect Taxes and Customs (CBIC) notified the reduction in the Applicability of GST E-invoicing threshold from Rs.50 Crores to Rs.20 Crores with effect from April 1, 2022.
4. GST PORTAL UPDATES
4.1 Upcoming GSTR-1 enhancements & improvements
(Advisory Dated: 22/02/2022)
The following changes are being done in this phase of the GSTR-1/IFF enhancements:
1. Removal of the ‘Submit’ button before filing: The present two-step filing of GSTR-1/IFF involving the ‘Submit’ and ‘File’ buttons will be replaced with a simpler single-step filing process.
2. Consolidated Summary: Taxpayers will now be shown a table-wise consolidated summary before actual filing of GSTR-1/IFF.
3. Recipient wise summary: The consolidated summary page will also provide a recipient-wise summary, containing the total value of the supplies & the total tax involved in such supplies for each recipient.
4.2 GSTN enables new Option of Search Tax Payer liability in GST Portal
(Advisory Dated: 03/02/2022)
You can now search for Taxpayer details by entering the GSTIN OR UIN. The search will contain a percentage of Liability paid that represents the quantum of liability auto-populated from GSTR-1 that was declared/paid in GSTR-3B.
You can login to the GST Portal then click on search by GSTN and then select liability percentage.
4.3 GSTN enables Feature to Withdraw application for Cancellation of GST Registration
(Advisory Dated: 17/02/2022)
The Goods and Service Tax Network (GSTN) has enabled the feature to withdraw applications for cancellation of GST registration. You need to Go to the Common Portal and post login navigate through Services → User Services → View My Submissions. Click on the “Withdraw” button available beside your Application for Cancellation of Registration. Click on Confirm and your application will be withdrawn.
4.4 GST Composition Scheme: GSTN enables Window to Opt-in for FY 2022-23
(Advisory Dated: 20/02/2022)
The Goods and Service Tax Network has enabled the window to opt-in for the composition scheme for the Financial Year 2022-23. The eligible taxpayers who avail of the composition scheme may opt-in for composition before March 31, 2022.
4.5 GSTN enables facility for filing LUT for FY 2022-23 on GST Portal
(Advisory Dated:21/02/2022)
The Goods and Service Tax Network (GSTN) has enabled the facility for filing Letter of Understanding (LUT) for Financial Year 2022-23 on the GST Portal. The LUT application is required to be completed before March 31, 2022, or before supply for Exports and SEZ.
5. JUDICIAL PRONOUNCEMENTS
5.1 Summons cannot be quashed by invoking inherent power of High Court when defence raised requires evidence which cannot be evaluated or adjudged in proceedings under Section 482 of Cr.P.C.; No reasonable basis to apprehend coercion by department to seek presence of lawyer during appearance in response to summons
HIGH COURT OF DELHI Saurabh Mittal v. Union of India
The defence raised by petitioner is a matter of investigation/inquiry to be adjudicated on merits and not by invoking inherent jurisdiction of High Court under Section 482 of Cr.P.C. - No material of impeccable quality found on record warranting invocation of such jurisdiction - Defence raised by petitioners requires evidence which cannot be appreciated, evaluated or adjudged in proceedings under Section 482 of Cr.P.C. - No reasonable basis to apprehend coercion by respondents to seek the presence of a lawyer at a visible distance beyond audible range by way of installation of CCTV cameras - Investigation is at nascent stage and involves fraud of Rs. 350 crores approximately and around 200 firms are involved in availing fraudulent ITC - Statement of bank official that bank account for 200 firms was opened at the behest of petitioner and his father - Petitioner is not entitled to any relief - No ground for quashing of action of respondents and setting aside of summons - No flaw or infirmity in the territorial jurisdiction of proceedings being carried out by Respondent - Sections 67 and 70 of Central Goods and Services Tax Act, 2017/Sections 67 and 70 of Uttar Pradesh Goods and Services Tax Act, 2017 - Section 482 of Criminal Procedure Code, 1973.
5.2 Adequate emphasis to be not only on ‘having reasons to believe’ to block ITC but also on ‘Recording of Reasons’ under GST
(Bombay HIGH COURT Order; Dated: 14/02/2022)
The division bench of Justice Anil S.Kilore and Justice Sunil B.Shukre has held that it is not necessary for us to answer it in specific terms as the impugned order itself has been found to be not worthy of upholding. The necessity for examining justification for issuance of the impugned order would have arisen, had it been held that the impugned order is sustainable in law on the touchstone of due process but requires consideration on merits, which is not the case here. “We are of the opinion that rule 86-A has been adequately framed by the rule making authority so as to take care of any possible misuse of the power. The authority has ensured that sufficient safeguards against the misuse of power are embedded in rule 86-A itself and accordingly the rule has been framed. We have already explained in detail the meaning, extent, necessity and manner of operation of these safeguards and, therefore, we do not think that anything more than what we have done here is required to be done,” the court said.
5.3 GST Registration shall be restored on Payment of Tax, Penalty and Uploading of Returns
(Madras HIGH COURT Judgement; Dated:25/02/2022)
In a major relief to the taxpayers facing problems with restoration of GST registration even after payment of tax amount, penalty and filing of GST registration, the Madras High Court directed the GST department to restore such registrations in order to avoid problems to the taxpayers and the loss of revenue to the department.
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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