1. GST DEADLINES
1.1. Deadlines | Apr 22
● GST Compliance Calendar – Apr 2022
2. Circulars or Clarifications
2.1. CBIC issues SoP for Scrutiny of GST Returns for FY 2017-18 and 2018-19
(Instruction No. 02/2022-GST; Dated: 23/03/2022)
Section 61 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “the CGST Act”) read with rule 99 of Central Goods and Services Tax Rules, 2017 (hereinafter referred to as “the CGST Rules”) provides for scrutiny of returns and related particulars furnished by the registered person.
Till the time a Scrutiny Module for online scrutiny of returns is made available on the CBIC-GST application As an interim measure, Standard Operating Procedure (SOP) is being issued by the Board in order to ensure uniformity in selection/ identification of returns for scrutiny, methodology of scrutiny of such returns and other related procedures.
The SoP stated that the selection of returns for scrutiny is to be based on specific risk parameters. For this purpose, the Directorate General of Analytics and Risk Management (DGARM) has been assigned the task to select the GSTINs registered with Central tax authorities
The Proper Officer shall scrutinize the returns and related particulars furnished by the registered person to verify the correctness of the returns. Information available with the proper officer on the system in the form of various returns and statements furnished by the registered person and the data/details made available through various sources like DGARM, ADVAIT, GSTN, E-Way Bill Portal, etc. may be relied upon for this purpose.
2.2 1,42,095 Crore gross GST Revenue collected in the month of March 2022
(Press Release; Dated: 01/04/2022)
The gross GST collection in March’2022 is all time high breaching earlier record of ₹ 1,40,986 crore collected in the Month of January 2022.
3. GST PORTAL UPDATES
3.1. Auto-population of e-invoice details into GSTR-1
(Advisory Dated: 03/03/2022)
a. The tax period of GSTR-1 in which the e-invoice will be auto-populated will be as per the Document Date.
b. If the taxpayer reports the document after filing GSTR-1 the e-invoice will not be auto-populated in any subsequent GSTR-1.
c. If the taxpayer reports the document manually entering the document in GSTR-1, the manually entered data will not be over-written even if the GSTR-1 is not filed.
3.3 CBIC Introduces Facility of Restoration of Cancelled GST Registration based on Appellate Order
(Registration Advisory No. 7.2022; Dated: 24/03/2022)
As per the advisory, functionality in the name of ‘Restoration of Cancelled Registration’ has been developed and deployed w.e.f. 23.03.2022, to facilitate the jurisdictional Range officers to restore the registrations in pursuance of judicial/appellate orders. This functionality would cover both the cancellations viz.. Ordered suo motu by Range officers against which appeal orders were obtained without applying for revocation through form REG-21, and cancelled on the request from the taxpayers. The Board has further said that the necessary permission to operate this functionality is being enabled for the Jurisdictional Range Officers.
4. JUDICIAL PRONOUNCEMENTS
4.1. Bombay High Court directs GST Department to issue Norms for Issuance of Summons during Investigations
(Bombay HIGH COURT Order; Dated: 26/02/2022)
The division bench of Justice R D Dhanuka and Justice S M Modak of the Bombay High Court has expressed its concern over the allegations made by several assessees in various petitions about the repeated summons issued by the GST authorities for the purpose of harassment, coercion and recovery of substantial amounts during the stage of investigation itself without issuance of a show cause notice. In the above background, the High Court passed an order directing the GST department to issue norms as to how many times, such summons can be issued against the assessees and for what purpose. The High Court ordered the GST department to give 7(seven) days clear notice in case it proposes to adopt coercive steps for recovery of any amount, in which event the Petitioner would be at liberty to approach to apply for interim relief.
4.2 Show cause notice issued in a format without striking out irrelevant portions and without stating contraventions committed is not valid; Summary of SCN without describing necessary facts is not valid; Both SCN and summary of SCN quashed
(HIGH COURT OF JHARKHAND; NKAS Services (P.) Ltd. v. State of Jharkhand)
Impugned SCN is issued in a format without striking out irrelevant portions and without stating contraventions committed by petitioner - Summary of SCN does not provide for which works contract service liability was not disclosed by petitioner in GSTR-3B return - SCN is completely silent on violation or contravention alleged to have been committed by petitioner regarding which he has to defend himself - Summary of SCN issued in terms of Rule 142(1) though cannot be a substitute to SCN also fails to describe necessary facts which could give an inkling as to the contravention - Unless foundation of case is laid down in SCN assessee would be precluded from defending charges in a vague SCN - Impugned SCN does not fulfil ingredients of proper SCN and amounts to violation of principles of natural justice - Impugned SCN and summary of SCN are quashed - Writ petition allowed - Section 73 of Central Goods and Services Tax Act, 2017/Section 73 of Jharkhand Goods and Services Tax Act, 2017.
4.3 Interest can be charged in case of tax unpaid or failure to pay tax before due date and not for late filing of GSTR-3B; Late fee is prescribed for late filing of GSTR-3B; Summary of order passed without issuing show cause notice is in violation of principles of natural justice and therefore, writ petition is maintainable
(HIGH COURT OF JHARKHAND; Nar Singh Ispat Ltd. v. Union of India)
Department failed to follow procedure prescribed under Section 73 before issuing summary of order - Summary of order issued without following principles of natural justice - Interest can only be charged on tax unpaid or failure to pay before due date and not for late filing of GSTR-3B - Late fee is prescribed for late filing of GSTR-3B and the same is already paid by the assessee - Petition disposed without going into merits as impugned order has been passed in violation of principles of natural justice. Proper officer failed to issue any SCN when demand of interest intimated was under dispute.
4.4 Input tax credit availed on purchases related to particular outward supply can be utilized for discharging GST on different outward supply; section 16 does not prescribe one-to-one correlation of particular inputs with particular outward supply
[Aristo Bullion (P.) Ltd., In re vs. M.S. TORAWANE AND SEEMA ARORA (Member Advance Ruling)]
Impugned inputs are intended to be used in course or furtherance of business - ITC of GST paid on such inputs would be admissible subject to conditions and restrictions - ITC on inputs once taken, merges into common pool of ITC under electronic credit ledger - Identification of ITC taken on particular input is not possible - Electronic credit ledger is not being maintained commodity wise - Section 16 does not impose any restriction on utilization of ITC earned - There is no prescription that ITC is to be utilized only for specific outward supply, on whose inputs such ITC was availed - Section 16 does not mandate proving one-to-one correlation of particular inputs with particular outward supply - Once input tax credit on inward supply of gold and dore bars is validly taken, it can be utilized for payment of 'output tax' (GST) on any taxable or zero rated outward supply of assessee - Payment of GST on castor oil seeds utilizing ITC taken on gold and silver dore bars is not deniable on ground of absence of nexus [Sections 2(82), 16 and 49 of Central Goods and Services Tax Act, 2017/Gujarat Goods and Services Tax Act, 2017]
4.5 Input tax credit received from Input Service Distributor lying unutilized due to exports eligible for refund
(HIGH COURT OF JHARKHAND; Nar Singh Ispat Ltd. v. Union of India)
Issue already decided in Britannia Industries Limited case - Assessee is entitled to claim refund of IGST lying unutilized in electronic credit ledger as the same is distributed by Input Service Distributor (ISD) - Impugned order quashed and set aside - Department directed to process refund claim made for unutilized credit under Section 54 within three weeks from the date of receipt of order - Petition allowed - Section 54 of Central Goods and Services Tax Act, 2017/Section 54 of Gujarat Goods and Services Tax Act 2017.
5. NOTIFICATIONS
5.1 CBIC prescribes new rates for fly ash bricks, fly ash, fly ash blocks, Bricks of fossil meals or similar siliceous earths, Building bricks, Earthen or roofing tiles
[Notification No. 01,02/2022-CT (Rate); Notification No. 03,04/2022-CT]
1. Change in GST Rate: The GST rate has been increased on the above-mentioned goods w.e.f 1st day of April 2022 from 5% to:
- 12% with ITC
- 6% without ITC
2. Compulsory Registration: The assesses engaged in the business of the above-mentioned products are required to take compulsory registration irrespective of their turnover w.e.f 1st day of April 2022.
3. Composition Scheme: The assesses engaged in the business of the above-mentioned products are not eligible for the composition scheme w.e.f 1st day of April 2022.
5.2 E-invoice mandatory for taxpayers with aggregate turnover of more than 20 Cr. From 1 April 2022
(Notification No. 01/2022-CT;Dated: 25/02/2022)
PAN India Turnover (including exempted turnover) if exceeds 20 cr. In any of the preceding FY (2017-18, 20-18-19, 2019-20 or 2020-21) then E-Invoice shall be raised for Taxable and Export Supplies w.e.f. 1 April 2022.
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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