1. GST DEADLINES
1.1.Deadlines | Nov 22
● GST Compliance Calendar – Nov 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 Enforcement action can be initiated by Either Central or State Officers: GST Council Clarifies
Circular No. F.NO.757/FOLLOW-UP/GSTC/2018/8198;19th October, 2022
The GST Council, while clarifying that both the State and Central Authorities can initiate enforcement action, also stated that the authority regarding action consequential to the issuance of Show Cause Notice and for issuance of recurring SCN in case of an enforcement action initiated by the Central authorities against a taxpayer assigned to State and vice versa. A taxpayer located within a State is open to enforcement action by both authorities. For example, enforcement action against a taxpayer, assigned to State tax authorities, can be initiated by the Central tax authorities (and vice versa). In such cases, all the consequential action relating to the case including, but not limited to, appeal, review, adjudication, rectification, the revision will lie with the authority which had initiated the enforcement action i.e. the Central tax authorities the instant case.
3. GST PORTAL UPDATES
3.1 Taxpayers having Turnover Up to 5 Crore shall mention 4-digit HSN codes in GSTR 1 from 1ST November
(Advisory Dated: 22/10/2022)
As per Notification No. 78/2020 – Central Tax dated 15th October, 2020, it is mandatory for the taxpayers to report minimum 4 digits or 6 digit of HSN Code in table-12 of GSTR-I on the basis of their Aggregate Annual Turnover (AATO) in the preceding Financial Year. the Goods and Services Tax (GST) portal has asked taxpayers with up to Rs 5 crore turnover to report 4-digit HSN codes in their GSTR-1 from 1st November 2022.
3.2 Taxpayers cannot file GSTR-1 if previous GSTR-1 or GSTR-3B are not filed from 1st November 2022
(Advisory Dated: 21/10/2022)
The Goods and Services Tax (GST) portal has informed the taxpayers that the sequential filing of GSTR-1 & filing of GSTR-1 before GSTR-3B on GST Portal shall not be allowed from 1st November 2022. According to amended section 37(4) of CGST, Act, a taxpayers shall not be allowed to file GSTR-1 if previous GSTR-1 is not filed and as per amended sec 39(10) a taxpayer shall not be allowed to file GSTR-3B if GSTR-1 for the same tax period is not filed.
3.3 Advisory on Filing TRAN-1/2 Forms to claim Transitional Credit
(Advisory dated: 01/10/2022)
The facility for filing TRAN-1/ TRAN-2 or revising the earlier filed TRAN-1/TRAN-2 on the GST common portal by aggrieved taxpayers is now available on GSTN from 01.10.2022 till 30.11.2022. As per the present flow the transitional credit availed by the taxpayer in TRAN-1/2 forms shall be verified by the jurisdictional tax officer before the credit entry is made in the respective ledgers. In case the taxpayer has already filed his original TRAN, the taxpayer is requested to file the complete form with all the required details and not the differential values (i.e. the difference between originally claimed credit and credit being claimed now). The taxpayers are also provided with a preview functionality wherein they can download the currently filled TRAN forms in Excel format and ensure the correctness of the details filled by them before finally submitting the form. The declaration in FORM GST TRAN-1/TRAN-2 filed/revised by the applicant will be subjected to necessary verification by the concerned tax officers. The applicant may be required to produce the requisite documents/ records/ returns/ invoices in support of their claim of transitional credit before the concerned tax officers for verification of their claim. After the verification of the claim, the jurisdictional tax officer will pass an appropriate order thereon on merits after granting an appropriate reasonable opportunity of being heard to the applicant. The transitional credit allowed as per the order passed by the jurisdictional tax officer will be reflected in the Electronic Credit Ledger of the applicant on the GST common portal.
4. NOTIFICATION
4.1 GSTR-3B Due Date Extended due to Technical Glitches in GST Portal
Notification No. 21/2022-Central Tax
Due to the technical glitches on the Goods and Services Tax (GST) portal, the Central Board of Indirect Taxes and Customs (CBIC) have extended the due date for filing of GSTR-3B for the month of September 2022.
5. JUDICIAL PRONOUNCEMENTS
5.1 Setback to Hero Motocorp Ltd: Supreme Court rejects plea of 100% Budgetary Support, Directs State Governments and the GST Council to consider Representations
M/S HERO MOTOCORP LTD. vs. UNION OF INDIA & ORS
The Supreme Court, on Monday, rejected the plea of Hero Motorcorp Ltd wherein the Company pleaded to allow 100% Budgetary Support after the enactment of GST. While dismissing the plea, Justice B.R. Gavai and Justice B.V. Nagarathna directed the State Governments and the GST Council to consider such representations, if made, in accordance with what has been observed herein above in an expeditious manner. Rejecting the plea, the Apex Court observed that the Central and State Governments had given various incentives of Central Excise and Value Added Tax (VAT) and Central Sales Tax (CST) so as to encourage investment in those States. It also took notice of the fact that such incentives could not be continued as supplies would need to be made on payment of tax to permit flow of tax to the destination state. The solution that was suggested was to provide for budgetary apportionment in the State and the Central budgets for reimbursing the tax paid to those units which enjoyed tax exemption up to a specified period
5.2 GST order Published on Portal But Not Intimated to Assessee: Madras HC allows Time to file Statutory Appeal
Mrs.Nirmala Menon vs. Assistant Commissioner
The Madras High Court has allowed the assessee to file first appeal before the competent forum under the GST Act considering the fact that the assessment order was published on the GST portal and the same was not intimated to the assessee.
5.3 Instant Composite Supply of Service of Milling of Food Grains into Flour to Food and Supplies Department, Govt. of West Bengal attracts Nil GST
In Re: M/s Himalayan Flour Mill Private Limited
The West Bengal Authority for Advance Ruling (AAR) has held that Instant composite supply of service of milling of food grains into flour to Food and Supplies Department, Govt. of West Bengal attracts Nil GST. The applicant has submitted that the Department of Food and Supplies, Government of West Bengal has issued memo no. 569(3) -FS/Sectt./Food/4P-02/2016/2021 dated 18th February 2022 wherein the Government has explained the full process of crushing of wheat into Fortified Atta for Public Distribution System. After considering both the cash and noncash consideration, it came to the conclusion that maximum value of involvement of goods is less than 25% of the total value of composite supply. Therefore, it was provided that the said process would qualify for exemption as per entry no. 3A of Notification no. 12/2017-CT (Rate) read with State Notification no. 1136-FT dated 28th June 2017.
5.4 Cancellation of GST Registration: Rajasthan HC Restores Appeal Rejected on Ground of Delay in filing Hard Copy
Poonamchand Saran vs Union Of India
A division bench of the Rajasthan High Court has restored an appeal against the order cancelling GST Registration on the ground that the assessee failed to submit the hard copies after filling the appeal through online within the prescribed time.
5.5 GST: Security Services provided by LLP not to be covered under RCM, rules AAR
In Re: M/s AS & D Enterprise LLP
The Authority of Advance Rulings (AAR) in Haryana recently clarified that, Security Services provided by a Limited Liability Partnership are not taxable under Reverse Charge Mechanism (RCM).
5.6 GST Order passed without providing Adequate Time to Respond to SCN is ‘Patently Illegal’: Bombay HC Advises Training to Officers
(AAR; dated 18 October, 2022)
In a significant ruling to provide relief to the taxpayers, a division bench of the Bombay High Court has held that a GST order passed by tax authorities, which granted only seven days to file a reply to a show-cause notice is “patently illegal” and the High Court also asked the tax authorities to donate Rs10,000 to the PM CARES Fund. “The order was erroneous because, in the SCN, only seven days were given to reply to the notice, and on the eighth day, the order came to be passed. Therefore, the question of not paying (the tax along with interest) within 30 days of the issue of the notice will not arise.
6. PRESS RELEASE
6.1. Govt to Introduce One-Time Settlement to Avoid Litigations
Press Release; 19 October, 2022
With the growing number of litigations in connection with the GST offences, the government is considering a Goods and Services Tax (GST) dispute settlement scheme offering a one-time opportunity for businesses to settle tax cases and avoid litigation, officials aware of the development said. Reportedly, the scheme will be a time-bound one covering only minor GST offences while offering a one-time opportunity to settle past disputes under excise duty, service tax and customs duty, they said. The scheme will not cover wilful tax evasion.
6.2 ICAI requests Govt to include Chartered Accountants as Technical Members of GST Appellate Tribunal
Press Release; 17th October, 2022
In a significant move, the Institute of Chartered Accountants of India (ICAI) has requested the Government to include Chartered Accountants as Technical Member of GST Appellate Tribunal.
6.3 CBIC issues Clarification on Time Limit for certain GST Compliances
Press Release; 4 October, 2022
The Central Board of Indirect Taxes and Customs (CBIC) has issued Clarification regarding time limit for certain compliances pursuant to issuance of Notification No. 18/2022-Central Tax dated 28.09.2022 Thereby, the time limit for the following compliances in respect of a particular financial year has been extended and fixed as 30th November of the next financial year, or furnishing of the relevant annual return, whichever is earlier:
6.4 GST: Govt likely to mandate E-Invoice for Businesses having Annual Turnover of above Rs. 5 Crore
Press Release; 11 October, 2022
In a drive to avoid leakage of revenue, the Government is likely to mandate Businesses with annual turnover of over Rs. 5 crore to move to e-invoicing under goods and services tax (GST) from January 1.
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
Comments