Dated: 05 Sep 2022
1. GST DEADLINES
1.1.Deadlines | September 22
● GST Compliance Calendar – Sep 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. GST Rates and Classification Based On the Recommendations of the GST Council
(Circular No. 179/11/2022-GST; Dated: 03/08/2022)
CBIC has clarified GST rates applicable on certain items as per the recommendations of GST council meeting:
Electrical vehicles whether or not fitted with battery packs, attract a concessional GST rate of 5%.
Stones which are not minor polished (like Ecausssine and other calcareous monumental or building stones, etc.) attract a GST rate of 5%.
Treated sewage water falling under the heading 2201, is exempt under GST.
Nicotine Polacrilex Gum attracts GST rate of 18%.
It is also clarified that the condition of 90% or more fly ash content applied only to Fly Ash aggregates and not fly ash bricks.
The by-products of milling of pulses/ dal such as Chilka, Khanda and Churi are appropriately classifiable under heading 2302 that consists of goods having description as bran, sharps and other residues, whether or not in the form of pellets, derived from the sifting, milling or other working of cereals or of leguminous plants. it is hereby clarified that the subject goods which inter alia is used as cattle feed ingredient are appropriately classifiable under heading 2302 and attract GST at the rate of 5% and that for the past, the matter would be regularized on as is basis.
2.2. GST Rates and Exemptions on Certain Services
(Circular No. 177/09/2022-GST; Dated: 03/08/2022)
CBIC has clarified GST rates and exemption on certain services as per the recommendation of the GST council meeting:
The services by way of storage or warehousing of cotton in ginned and or baled form was covered under entry 24B of notification no 12/2017- Central Tax dated 28.06.2017 in category of raw vegetable fibres cotton. This exemption has been withdrawn w.e.f 18.07.2022.
GST on services associated with transit cargo both to and from Nepal and Bhutan are exempt.
Any services in relation to sanitation and conservancy services supplied to Army and other Central and State governments are applicable to GST.
It is clarified that the additional fee collected in the form of higher toll charges from vehicles not having Fas tag is essentially payment of toll for allowing access to roads or bridges to such vehicles and may be liable to GST.
Passenger transport services with predetermined route and schedule is exempted vide Notification No. 12/2017. Not available in case of hire where vehicle is at the disposal of renter. Hiring of vehicles by firms for transportation of their employees to and from work is not exempted.
It is clarified that where the body corporate hires the motor vehicle (for transport of employees etc.) for a period of time, during which the motor vehicle shall be at the disposal of the body corporate, the service would fall under Heading 9966, and the body corporate shall be liable to pay GST on the same under RCM.
Sale of land does not attract GST. However, the services such as levelling, laying down of drainage line will attract GST.
2.3. Applicability of GST on Liquidated Damages
(Circular No. 178/10/2022-GST; Dated: 03/08/2022)
2.4. Guidelines on Arrest and Bail for Offenses under CGST Act
(Instruction No. 02/2022-23; Dated: 17/08/2022)
CBIC issued instructions guidelines with respect to arrest under CGST Act, 2017. The Guidelines add conditions precedent to arrest, the procedure for arrest, post-arrest formalities, and the manner in which the reports need to be sent. Before placing a person under arrest, the legal requirements must be fulfilled; the reasons for an arrest must be unambiguous. Sub-section (4) and (5) of Section 132 of the CGST Act, 2017 have been amended to modify the right of bail, and conditions of bail, and in cases where conditions for bail are not satisfied then the arrested person be produced before the Magistrate within 24 hours of arrest and also handing over the person to police custody in case of necessity. The Instructions also mention making of prosecution complaint under section 132 at the earliest and also maintaining of bail register.
2.6. Guidelines on Issuance of Summons under section 70 of the CGST Act, 2017
(Instruction No. 03/2022-23; Dated: 17/08/2022)
CBIC has issued instructions regarding the issuance of summons under Section 70 of the Central Goods and Services Act (CGST),2017. The Instruction mentions that Summons by Superintendents should be issued after obtaining prior written permission from an officer, not below the rank of Deputy or Assistant Commissioner with the reasons for issuance of summons to be recorded in writing and if it is not possible to obtain such prior written permission, oral or telephonic permission should be obtained and reduced to writing and intimated to the officer at the earliest opportunity.
It also instructed that the officer should record about the appearance and non- appearance of the summoned person and should keep a copy of the same. The instruction exempts the issuance of summons in cases where statutory documents are digitally available in the GST portal.
3. GST PORTAL UPDATES
3.1 GSTR 9 And GSTR 9C are available for filing for FY 21-22 (Advisory Dated: 05/08/2022)
The GST annual return forms, GSTR -9 and GSTR-9C for FY 21-22 are available on the portal for filing. GSTR 9 is a Return Form and GSTR-9C is a Reconciliation Statement.
3.3 Allow Taxpayers to enter Multiple trade names.
(Advisory Dated: 05/08/2022)
Earlier only a single trade name was being captured during new registrations and subsequent amendments in the core field for normal taxpayers on the portal. Now taxpayers can provide up to 9 additional trade names for a single GSTIN.
3.5 Introduction of Single Click Nil Filing of GSTR-1
(Advisory Dated: 02/08/2022)
Single click Nil filing of GSTR-1 has been introduced on the GSTN portal to improve the user experience and performance of GSTR-1/IFF filing. Taxpayers can now file NIL GSTR-1 return by simply ticking the checkbox File NIL GSTR-1 available at GSTR-1 dashboard
4. NOTIFICATION
4.1 GST: CBIC Reduces Mandatory E-Invoice For Businesses Having INR 20 Cr. Turnover to INR 10 Cr.
Notification No. 17/2022-Central Tax; 1st August, 2022
CBIC has made mandatory E-invoicing for businesses with aggregate turnover exceeding INR 10 crore in any of the preceding FY with effect from October 1. Presently, e-invoice is compulsory for businesses with an annual turnover of over INR 20 crores.
5. JUDICIAL PRONOUNCEMENTS
5.1 Supreme court Directs Sate Govts and GST Council to Consider Implementing DIN System to Prevent Harassment to Honest Taxpayers
Pradeep Goyal vs. Union of India & Ors.
The Supreme Court has directed the state governments to consider the implementation of DIN system in order to prevent harassment to the honest taxpayers and advised the central government and GST council to issue necessary instructions.
5.2 GST Transitional Credit filing from October till December: Centre approaches Supreme Court
In a major relief to the taxpayers under the GST regime, the Supreme Court has directed to open the GST system enabling to claim transitional credit for two months starting from 1st September to 31st October. The central government is now seeking a period of 30 days to facilitate the service.
5.3. Cleaning, Sweeping of Lawn and Supply of Manpower provided to Govt are Pure Services
(KARNATAKA AUTHORITY OF ADVANCE RULING)
The Karnataka Authority for Advance Rulings (AAR) has held that cleaning and sweeping lawns and garden paths and the supply of manpower provided to the government are pure services which are eligible for exemption under Entry no. 3 of the Central Tax Rate.
6. PRESS RELEASE
6.1. GST on House Rent
Press Release; 13 August, 2022
The 47th GST Council meeting presided over by Union Finance Minister Nirmala Sitharaman in June approved a slew of changes to the taxing scheme including levy of 18% GST on the registered tenant. As per the modified law, the tenant must pay Goods and Service Tax at the rate of 18% when renting a residential property.
Clarifications from Government:
The 18 per cent tax on rent paid is only applicable to tenants registered under the GST, meaning a GST-registered person who carries out business or profession will incur 18 per cent GST on such rent paid to the owner. The Government, through the official twitter handle of the Press Information Bureau clarified on 12th August 2022 that the levy is applicable in case of renting of residential units to business entities only and the levy would not be applicable when it is rented to a private person for personal use.
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.”)
Comentários