Dated: 05 Oct 2022
1. GST DEADLINES
1.1.Deadlines | October 22
● GST Compliance Calendar – Oct 2022
● GST Annual Return and Reconciliation Statement (GSTR9 and GSTR9C)
Due date 31st Dec 2022 for FY 21-22.
2. Circulars or Clarifications
2.1. GUIDELINES FOR LAUNCHING OF PROSECUTION OF GST OFFENCES UNDER THE CENTRAL GOODS AND SERVICE TAX ACT, 2017
(Instruction No. 04/2022-23; Dated: 01/09/2022)
1. The standard of proof required in a criminal prosecution is higher than the adjudication proceeding as the case has to be established beyond reasonable doubt. Therefore, even cases where demand is confirmed in adjudication proceedings, evidence collected should be weighed so as to likely meet the above criteria for recommending prosecution.
2. Prosecution should not be launched in cases of technical nature, or where additional claim of tax is based on a difference of opinion regarding interpretation of law.
3. It follows, therefore, that in the case of public limited companies, prosecution should not be launched indiscriminately against all the directors of the company but should be restricted to only persons who oversaw day-to-day operations of the company and have taken active part in committing the tax evasion etc. or had connived at it.
4. In the view of above observations of Hon’ble supreme court in the case of Radheshyam Kejriwal [2011 (266) ELT 294 (SC)], prosecution complaint may even be filed before adjudication of the case, especially where offence involved is grave, or qualitative evidences are available, or it is apprehended that the concerned person may delay completion of adjudication proceedings, In the case where offender is arrested under Section 69 of the CGST Act, 2017.
2.2. CBIC CLARIFIES CLASSIFICATION OF CRANES FOR GST, CUSTOMS DUTY
(Circular No. 20/2022-Customs; Dated: 22/09/2022)
The Central Board of Indirect Taxes and Customs (CBIC) has issued clarification regarding the classification of the goods referred to as Truck Cranes or All Terrain Cranes. These are essential goods that are used in handling and lifting heavy loads and have mobility as a function. Since the goods have features that are similar to motor vehicles, as well as to that of load-handling heavy machines, there are differing opinions on the classification of such goods.
Board outlined a set of parameters that can serve as a guide to arrive at the classification of all such goods.
3. GST PORTAL UPDATES
3.1 GSTN ENABLES CHANGES IN TABLE 4 OF GSTR-3B RELATED TO CLAIM OF ITC ON PORTAL (Advisory Dated: 01/09/2022)
The Goods and Services Tax Network (GSTN) has made changes in Table 4 of GSTR-3B related to the claim of Input Tax credit (ITC) is now live on the GST Portal.
3.2 GST Portal live for Filing of Transitional Credit
Hon’ble Supreme Court while hearing an application from GSTN has allowed extension of 4 weeks’ time to comply with their order dated 22/07/2022 issued in the matter of UOI &Anr. V/s Filco Trade Centre Pvt. Ltd. &Anr. bearing SLP (C) nos. 32709-32710/2018. Accordingly, GSTN has opened the common portal for filing transitional credit through Tran 1 and Tran 2 w.e.f 01/10/2022.
3.3 E-way Bill Available for Gold on Portal: NIC
(NIC, 13 Sept 2022)
The National Informatics Centre has informed that the e-way bill is available for gold on the portal. As per the Government recommendation, E-Way Bill generation has been provisioned for movement of Gold (HSN Chapter 71) for all Intrastate and Interstate transactions. The taxpayers of the state may generate the E-Waybill for Gold as per the notification issued by their respective state.
4. NOTIFICATION
4.1 GST Amendments in Sections 100 to 114 of Finance Act, 2022 applicable from 1st October: CBIC
Notification No. 18/2022-Central Tax; 28th September, 2022
CBIC has notified that the GST amendment to implement the changes in the provisions of sections 100 to 114, except clause (c) of section 110 and section 111, of the Finance Act, 2022 from 1st October 2022. Following important amendments are made effective:
1. Last date for availment of ITC, issuance of Credit Notes and rectification of GSTR-1 & GSTR-3B for FY 2021-22 extended to 30 Nov of succeeding FY from due date of Sep return.
2. New condition clause (ba) of Restricted ITC notified in Section 16 ‘Eligibility and conditions for taking ITC’.
3. Amendment of Section 29: Cancellation of Registration
· Section 29 and corresponding Rule 21 amended to provide that GST Registration may be cancelled by the proper officer if GST returns are not furnished for a continuous period of 6 months.
4. Amendment of Section 37: Details of Outward Supplies
· Concept of matching has been done away with.
· Chronological filling of GSTR1 mandatory.
5. Section 42, 43 and 43A omitted
6. Section 49: Payment of Tax
· Sub Claus (10) substituted to allow transfer of balance in cash ledger between distinct persons.
5. JUDICIAL PRONOUNCEMENTS
5.5 GST: Supreme Court to decide Eligibility of ITC for Construction of Immovable Property intending to Let Out
SAFARI RETREATS PRIVATE LIMITED Vs CHIEF COMMISSIONER OF CGST
In a significant move, the Supreme Court has admitted the appeal filed by the GST department against the order of the Odhisha High Court wherein the High Court held that input tax credit is available in respect of GST paid while constructing the immovable property intending to let out for rent.
5.6 GST Registration cannot be Granted/Renewed in respect of a Premise under Dispute: Jammu & Kashmir HC
S Parveez Ahmad Baba Vs Union Territory of J&K
The Jammu & Kashmir High Court has held that the GST registration cannot be granted or renewed considering the fact that the said premise is under dispute between the co-owners.
5.7 Limitation Period for Appeal cannot start since GST Registration Cancellation Order was unsigned: Bombay HC
Ramani Suchit Malushte V/s. Union of India and Ors
The Bombay High Court, in a significant ruling, held that where an Order of Cancellation of Registration under GST Act was uploaded on the GST Portal without signature, the limitation for filing appeal cannot start at all until the signature is affixed on such an order.
5.8 No GST on Renting of Residential Building by Proprietor of a registered proprietorship firm: Delhi HC
Seema Gupta V/s. Union of India and Ors
A division bench of the Delhi High Court has held that GST is not leviable on the portion of rent received by a Proprietor of a registered proprietorship firm when such renting is sone in his /her own personal capacity for use as his/her own residence as well as not for use in the course or furtherance of business of his/her proprietorship firm.
5.9 Amount in Electronic Credit Ledger can be Utilized to Pay Pre-deposit, rules Bombay HC
Oasis Realty vs. Union of India
A division bench of the Bombay High Court has held that the amount remaining in the Electronic Credit Ledger can be utilized to pay pre-deposit as per section 107(6) of the Maharashtra GST Act, 2017.
The petitioner approached the Court contending that sub-paragraph (5) of paragraph 6 of the circular reproduced in paragraph (11) makes it clear that Electronic Credit Ledger cannot be used for making payment of any tax which is payable under the reverse charge mechanism.
6. PRESS RELEASE
6.1. Govt to Decriminalize GST Offences Soon: Revenue Secretary Tarun Bajaj
Press Release; 22 September, 2022
Revenue Secretary Tarun Bajaj has said that the government will soon come out with norms for decriminalising offences under Goods & Services Tax (GST). In an interview to business line, he also said that windfall gain tax on domestically produced crude oil and on export of diesel and ATF will continue till there is windfall gain. The government recently comes out with revised guidelines for compounding offences under the Direct taxes. Earlier a similar arrangement was made in case of customs duty related offences.
6.2 GST Council to Meet in October: Tax on Casinos, Online Games and GSTAT on Agenda
Press Release; 20th September, 2022
The appellate body deciding the tax policies under the indirect taxes in the country, the Goods & Services Tax (GST) Council may reportedly meet in October instead of September, as the group of ministers (GoM) on casinos, race courses & online gaming, as well as the panel on the GST Appellate Tribunal (GSTAT), are yet to submit their reports.
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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