Monthly Newsletter July 2022

CONTENTS: 

• GST Notifications and Circulars
• Case Laws
• Advance Rulings
• Customs Updates

GST Notifications and Circulars

 

• Notification 09/2022 – GST (Central Tax) dated 05.07.2022 Seeks to notify the provisions of clause (c)      of section          110     and section 111 of the Finance Act, 2022.
• Notification 10/2022 – GST (Central Tax) dated 05.07.2022 Seeks to exempt taxpayers having AATO up to Rs. 2 crores from the requirement of furnishing annual returns for FY 2021-22
• Notification No. 11/2022 – GST (Central Tax) dated 05.07.2022 Seeks to extend the due date of furnishing FORM GST CMP-08 for the quarter ending June 2022 till 31.07.2022.
• Notification 12/2022 – GST (Central Tax) dated 05.07.2022 Seeks to extend the waiver of late fee for delay in filing FORM GSTR-4 for FY 2021-22.
• Notification 13/2022 – GST (Central Tax) dated 05.07.2022 Seeks to extend dates of specified compliances in the exercise of powers under section 168A of CGST Act.
• Notification 14/2022 – GST (Central Tax) dated 05.07.2022 Seeks to make amendments (First Amendment, 2022) to the CGST Rules, 2017.
• Notification 15/2022 – GST (Central Tax) dated 13.07.2022 Seeks to amend notification   No. 10/2019-Central Tax.
• Notification No. 10/2019- GST (Central Tax) dated 07.03.2019- To give exemption from registration for any person engaged in exclusive supply of goods whose aggregate turnover in the financial year does not exceed Rs 40 lakhs.
• Notification 16/2022 – GST (Central Tax) dated 13.07.2022 Seeks to amend notification No. 14/2019- Central Tax.
  • Notification No. 14/2019- GST (Central Tax) dated 07.03.2019- Seeks to supersede notification No. 08/2017 – GST (Central Tax) dated 27.06.2017 in order to extend the limit of the threshold of aggregate turnover for availing Composition Scheme u/s 10 of the CGST Act, 2017 to Rs. 1.5 crores.
• Notification No. 03/2022 – GST (Central Tax – Rate) dated 13.07.2022 Seeks to amend Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017.
  • Notification No 11/2017- GST (Central Tax – Rate) dated 28.06.2017- To notify the rates for the supply of services under the CGST Act.
• Notification No. 04/2022 – GST (Central Tax – Rate) dated 13.07.2022 Seeks to amend Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017.
  • Notification No 12/2017- GST (Central Tax – Rate) dated 28.06.2017- To notify the exemptions on the supply of services under the CGST Act.
• Notification No. 05/2022 – GST (Central Tax – Rate) dated 13.07.2022 Seeks to amend Notification No. 13/2017- Central Tax (Rate) dated 28.06.2017.
  • Notification No 13/2017- GST (Central Tax – Rate) dated 28.06.2017- To notify the categories of services on which tax will be payable under the reverse charge mechanism under the CGST Act.
• Notification No. 06/2022 – GST (Central Tax – Rate) dated 13.07.2022 Seeks to amend Notification No. 1/2017- Central Tax (Rate) dated 28.06.2017
  • Notification No. 1/2017- Central Tax (Rate) dated 28.06.2017- CGST Rate Schedule notified under section 9 (1).
• Notification No. 07/2022 – GST (Central Tax – Rate) dated 13.07.2022 Seeks to amend Notification No. 2/2017- Central Tax (Rate) dated 28.06.2017.
  • Notification No. 2/2017- Central Tax (Rate) dated 28.06.2017- CGST exempt goods notified under section 11 (1).
• Notification No. 08/2022 – GST (Central Tax – Rate) dated 13.07.2022 Seeks to amend Notification No. 3/2017- Central Tax (Rate) dated 28.06.2017.
  • Notification No. 3/2017- Central Tax (Rate) dated 28.06.2017- 2.5% concessional CGST rate for supplies to Exploration and Production notified under section 11 (1).
• Notification No. 09/2022 – GST (Central Tax – Rate) dated 13.07.2022 Seeks to amend Notification No. 5/2017- Central Tax (Rate) dated 28.06.2017.
  • Notification No. 5/2017- Central Tax (Rate) dated 28.06.2017- Supplies of goods in respect of which no refund of unutilized input tax credit shall be allowed under section 54 (3).
• Notification No. 10/2022 – GST (Central Tax – Rate) dated 13.07.2022 Seeks to amend Notification No. 2/2022- Central Tax (Rate) dated 31.03.2017.
  • Notification No. 2/2022- Central Tax (Rate) dated 31.03.2017- Seeks to provide for a concessional rate on intra-state supply of bricks conditional to not availing the ITC, as recommended by 45 GSTC.
• Notification No. 11/2022 – GST (Central Tax – Rate) dated 13.07.2022 Rescinds notification No. 45/2017- Central Tax (Rate).
• Circular No. 170/02/2022 – GST dated 06.07.2022 Mandatory furnishing of correct and proper information on inter-supplies and amount of ineligible/blocked Input Tax Credit and reversal thereof in return in FORM GSTR-3B and statement in FORM GSTR-1.
• Circular No. 171/03/2022 – GST dated 06.07.2022 Clarification on various issues relating to the applicability of demand and penalty provisions under the Central Goods and Services Tax Act, 2017 in respect of transactions involving fake invoices.
• Circular No. 172/04/2022 – GST dated 06.07.2022 Clarification on various issues pertaining to GST.
• Circular No. 173/05/2022 – GST dated 06.07.2022 Clarification on the issue of claiming a refund under an inverted duty structure where the supplier is supplying goods under some concessional notification.
• Circular No. 174/06/2022 – GST dated 06.07.2022 Prescribing manner of re-credit in electronic credit ledger using FORM GST PMT-03A.
• Circular No. 175/07/2022 – GST dated 06.07.2022 Manner of filing refund of unutilized ITC on account of export of electricity.
• Circular No. 176/08/2022 – GST dated 06.07.2022 Withdrawal of Circular No. 106/25/2019-GST dated 29.06.2019.

Case Laws

Sri Sri Engineering Works Vs Deputy Commissioner (CT), (Judgment of Telangana High Court dated 07.2022)

Facts of the case –

The challenge made in this batch of writ petitions is the constitutionality of Telangana

Value Added Tax (Second Amendment) Act, 2017. It is the contention of the petitioners that the Telangana Value Added Tax (Second Amendment) Act, 2017 is ultra vires the Constitution of India and thus unconstitutional.

Held –

The High Court of Telangana, vide its subsequent Order dated 05-Jul- 2022 Intention of Parliament in ushering in the GST regime through the Constitution Amendment Act and enactment of the CGST Act and simultaneous enactment of various State GST Acts by the State Legislatures is to avoid multiplicity of taxes by subsuming those indirect taxes in a single tax called GST. It is in this context we have analyzed Section 19 of the Constitution Amendment Act. Viewed thus, the amendments brought in by the Second Amendment Act, as discussed above, are wholly inconsistent with the scheme of the Constitution Amendment Act read with the CGST Act and the TGST Act. Thus, upon thorough consideration of all aspects of the matter, we have no hesitation in holding that the Second Amendment Act is unconstitutional being devoid of legislative competence. It is accordingly declared as such. Consequently, the notices issued and orders passed under Section 32 (3) of the VAT Act which has been impugned in the present batch of writ petitions are hereby set aside and quashed.

Shyam Hardware Store Vs State Of Jharkhand (Judgment of Jharkhand High Court dated 11.07.2022)

Facts of the case –

By the order of the Joint Commissioner of State Tax (Admin), Hazaribagh Division, Hazaribagh an inspection was conducted by the joint team of officers of the Investigation Bureau and Ramgarh Circle in the premises of the petitioner, and an Inspection Report was prepared. At the bottom of the inspection report (Annexure- 2/6) petitioner was directed to appear on 17.1.2020 before the Joint Commissioner of State Tax (Admin) Hazaribagh Division, Hazaribagh failing which proceeding under Sections 73, 50(1), and 125 of JGST Act would be initiated. In the Inspection Report, the inspecting team has also alleged three discrepancies against the petitioner namely, short of goods in physical stock to the tune of Rs. 4,26,734.01/-, short of goods in summary stock for Rs.19918.00/- and failure to declare additional place of business and thereby directed the petitioner to submit his explanation for aforesaid discrepancies along with purchase invoices and payment evidences before the Joint Commissioner of State Tax (Admin), Hazaribagh Division, Hazaribagh on 17.01.2020, otherwise, the action would be taken against the petitioner under Sections 73, 50(1) and 125 of the Act.

Held –

It was held that any adjudication order is non-est in the eye of the law if the same is passed without the issuance of proper show-cause notice being dehors principle of natural justice. In the instant case admittedly, the procedure has not been followed.

 

Union of India & Anr. Vs Filco Trade Centre Pvt. Ltd & Anr. (Judgment of Supreme Court dated 22.07.2022)

The following directions were issued –

1. Goods and Service Tax Network (GSTN) is directed to open a common portal for filing concerned forms for availing Transitional Credit through TRAN-1 and TRAN-2 for two months i.e. w.e.f. 01.09.2022 to 31.10.2022.

2. Considering the judgments of the High Courts on the then prevailing peculiar circumstances, any aggrieved registered assessee is directed to file the relevant form or revise the already filed form irrespective of whether the taxpayer has filed a writ petition before the High Court or whether the case of the taxpayer has been decided by Information Technology Grievance Redressal Committee (ITGRC).

3. GSTN has to ensure that there are no technical glitches during the said time.
4. The concerned officers are given 90 days thereafter to verify the veracity of the claim/transitional credit and pass appropriate orders thereon on merits after granting the appropriate reasonable opportunity to the parties
5. Thereafter, the allowed Transitional credit is to be reflected in the Electronic Credit Ledger.
6. If required GST Council may also issue appropriate guidelines to the field formations in scrutinizing the claims.

Advance Rulings

• In re Myntra Designs Private Limited (GST AAR Karnataka) order dated 01.07.2022

QUESTIONS

Question 1: Whether the transaction of the Applicant providing space on its web portal for advertisements provided by a foreign entity i.e., Lenzing Singapore Pte Limited for consideration, taxable?

Answer 1: No, an Advance ruling is given on this issue as the question involves the determination of the place of supply, which is outside the jurisdiction of this Authority.

Question 2: Consequently, what will be the correct classification of the services provided and rate of tax on the transaction of the Applicant of providing space on its web portal for advertisements provided by a foreign entity i.e., Lenzing Singapore Pte Limited?

Answer 2: The services provided by the applicant are classified under

SAC 998365 which reads “Sale of internet Advertising Space (except on commission)” under the Heading 9983 and the same is exigible to CGST at 9% and SGST at 9% as per Sl. No.21 of Notification No.11/ 2017- Cent al Tax (Rate)

• In re Teamlease Education Foundation (GST AAR Karnataka) order dated 06.07.2022

QUESTIONS

Question 1: Whether the Applicant is acting as a pure agent of the industry partner to the extent of reimbursement received towards stipend paid to Trainees on behalf of the industry partner as part of the training agreement and therefore the said reimbursement is not chargeable to GST?

Answer 1: The Applicant does not qualify to be a pure agent of the Industry partner to the extent of reimbursement received towards stipend paid to Trainees on behalf of the Industry partner as part of the training agreement and therefore the said reimbursement is chargeable to GST

Question 2: Whether the Applicant is acting as a pure agent of the industry partner to the extent of reimbursement received against the cost of medical and accident insurance obtained for the benefit of Trainees by the Applicant and reimbursed by the industry partner as per the training agreement and therefore the said reimbursement is not chargeable to GST?

Answer 2: The Applicant does not qualify to be a pure agent of the Industry partner to the extent of reimbursement received against the cost of medical and accident insurance obtained for the benefit of Trainees by the Applicant and reimbursed by the Industry partner as per the training agreement and therefore the said reimbursement is chargeable to GST.

 

Customs Updates

Notification No. 38/2022 – Customs dated 04.07.2022: Seeks to extend the exemption from BCD and AIDC upon import of Raw Cotton.

Notification No. 39/2022 – Customs dated 12.07.2022: Seeks to amend notification No. 50/2017-Customs with respect to the tariff heading referring to the open cells for use in the manufacture of TV Panels of heading 8524.

Notification No. 50/2017- customs dated 30.06.2017- Seeks to supersede notification No. 12/2012- Customs dated 17.03.2012 and prescribes effective rates of customs duty and IGST for goods imported into India.

Notification No. 40/2022 – Customs dated 13.07.2022: Seeks to amend notification No. 50/2017 – Customs for DEC tablet and S. No. 404 Petrol operations.

Notification No. 41/2022 – Customs dated 13.07.2022: Seeks to amend notification No. 19/2019-Customs for defence-related imports.

Notification No. 19/2019- customs dated 06.07.2019- Seeks to exempt specified defense equipment and their parts from Basic Customs Duty for a period of 5 years.

Notification No. 42/2022 – Customs dated 13.07.2022: Seeks to amend notification No. 51/96-Customs for withdrawing IGST exemption.

Notification No. 51/1996- customs dated 23.07.1996- This notification exempts specified goods imported by publicly funded Non- commercial research institutions or NIIT or Indian Institute of Science or Regional Engineering College.

Notification No. 43/2022 – Customs dated 20.07.2022: Seeks to amend notification No. 22/2022-Customs,      dated 30.04.2022 to enable TRQ holders to import gold through IIBX under the TRQ mechanism of India-UAE CEPA.

Notification No. 22/2022- customs dated 30.04.2022- Seeks to give effect to the first tranche of India UAE CEPA

Notification No. 44/2022 – Customs dated 23.07.2022: Seeks to amend notification No. 49/2021 – Customs, dated 13.10.2021, to extend the concessional   Agriculture Infrastructure and Development Cess [AIDC] of Nil on Lentils (Mosur) up to and inclusive of the 31st March 2023.

Notification No. 49/2021- customs dated 13.10.2021- Seeks to reduce AIDC on crude soya, sunflower, and palm oils till 31.03.2022.

Circular No. 10/2022- Customs dated 25.07.2022 Clarification on Electro- Chemiluminescence Immunoassay kits.

Circular No. 11/2022- Customs dated 29.07.2022 Extension of Customs clearances beyond normal working hours in Inland Container Depot(s).

 

Disclaimer: Information in this newsletter is for educational purposes only. Bhasin Sethi assumes no responsibility of any mistakes which,  despite of all precautions, may be found therein. The material contained in the document does not constitute professional advice that may be required before acting on any matter.