GST WEEKLY UPDATE : 31/2021-22 (31.10.2021) By CA Vipul Khandhar
- CBIC Notified that Permanent Transfer of IPRs attracts 18% GST:
The CBIC has notified that permanent transfer of IPRs attracts 18% GST. In exercise of the powers conferred by sub-section (1) of section 9 and subsection (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the further amend the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.1/2017-Central Tax (Rate), dated the 28th June, 2017. In the said notification, in Schedule II – 6%, S. No. 243 and the entries relating thereto shall be omitted. Further, in Schedule III 9%, against S. No. 452P, in column (3), the words “in respect of Information Technology software” shall be omitted. The above mentioned changes are applicable on Integrated Goods and Service Tax (IGST), Central Goods and Service Tax (CGST) and Union Territory Goods and Service Tax (UTGST)
- E Invoice has updated Resolution for Common Errors:
| Error Code | Error
Message |
Reason for Error | Resolution |
| 2150 | Duplicate
IRN |
Attempting to register a document again which is already registered and IRN is generated. | Don’t fire the same request simultaneously. This results in one request giving the error as ‘Duplicate IRN request’. Best way to avoid firing of IRN request repeatedly for the same request, is update in your system with IRN number when the response comes back. Next time check the IRN, if it is not there, then fire for IRN. |
| 2172 | For intra state transaction IGST amounts is not applicable for item – {0} and Sl. No {1}, only CGST and SGST amounts are applicable. | IGST amount is being passed for Intra State transaction where as CGST and SGST are applicable. | Please check the applicable taxes for current transaction. If the State code of Point of Supply (POS) of recipient is same is state code of Supplier, then CSGT and SGST applies. However, under exception circumstances as per rule if IGST is applicable for intrastate transaction, then pass the ‘IGST_on_Intra State_Supply’ flag as ‘Y’ with IGST value so that system can process your request. |
| 2176 | Invalid HSN code(s)-{0} | Wrong HSN code is being passed | Pl check the HSN code being passed and Cross-check the correctness of HSN code on e-invoice portal. Still, if you feel it is correct, then please send the details to the helpdesk for verification at e-invoice system side. |
| 2182 | Taxable value of all items must be equal to total taxable value. | Sum of taxable amounts of all items should be equal to invoice level taxable amount. | Please check the request payload for the taxable value validation. Total Taxable Value = Taxable value of all line items |
| 2189 | Invalid total Invoice Value | Invoice level total value has not been calculated as per the passed values. | Invoice level total value is equal to totals of all the total item value plus other charges minus discount with tolerance limit of +/- One. Pl refer to the validations in sandbox portal. |
| 2193 | AssAmt value should be equal to (TotAmt – Discount) for HSN – {0} and Sl. No {1} | Incorrect assessable amount is passed for the specified item. | For the specific item, assessable amount should be arrived at by deducting discount from total amount. |
| 2194 | Invalid total item value for HSN – {0} and Sl. No {1}. | Total item value passed is incorrect. | Total item value should be sum of assessable value, all tax and cess values, other charges with tolerance limit of +/- One. Please refer to the validations in the portal. |
| 2211 | Supplier and recepient GSTIN should not be the same. | Same GSTIN has been passed for Supplier and Buyer GSTIN. | Self generated Invoice are not allowed for e-invoice generation. |
| 2212 | The recepient GSTIN cannot be URP for supply type {0}. | Un Registered Person (URP) is passed wrongly for B2B type of transaction. | For this type of transaction, actual GSTIN needs to be passed. |
| 2227 | SGST and CGST Amounts should be equal for HSN – {0} and and Sl. No {1} | For the specified item, CGST and SGST amounts are not equal | CGST and SGST amounts should be same for the specified item. |
| 2233 | Duplicate SI nos are not allowed in items. | Duplicate serial number for the items has been sent in the item list. | The serial number of the items in the item list should be unique in an invoice. |
| 2234 | Invalid SGST and CGST Amounts for HSN – {0} and Sl. No {1}. | Wrong SGST and CGST amounts are passed for the specified item in the item list. | Correct values for the SGST and CGST amounts have to be passed. |
| 2235 | IGST amount given with HSN -{0} and Sl. No {1} is Invalid. | Wrong IGST amount is passed for the specified item in the item list. | Correct values for the SGST and CGST amounts have to be passed. SGST and CGST values should be equal to [taxable value X tax rate / 2] for that line item with tolerance limit of +/- One. |
| 2240 | Invalid GST rate for HSN -{0} and Sl. No {1}. | Wrong GST rate is passed for the specified item in the item list. | Correct value for the GST rate has to be passed. Standard tax Rates are 0, 0.5, 1, 2, 3, 5, 12, 18, 28 |
| 2244 | Recipient pincode is mandatory for transaction -{0} | Recipient PIN code is missing for the specified transaction type. | For the specified type of transaction, PIN code is mandatory under Recipient details. |
| 2265 | Recepient GSTIN state code should be same as the sate code passed in recepient details. | The state code passed and first two digits of the GSTIN passed in the Recipient details do not match. | In the Recipient details, first two digits of the GSTIN should match the state code passed. |
| 2275 | Recepient PIN code should be 999999 for direct export. | PIN code under Recipient Details has been passed as other than 999999 for specified type of transactions. | 999999 as PIN code should be passed under Recipient Details for specified type of transactions. |
| 3028 | GSTIN is not present in invoice system | Recipient GSTIN is invalid or does not exist in e-invoice system | Check the correctness of the GSTIN. If you are sure that it is valid, Pl use the ‘Sync GSTIN from GST CP’ API to get it pulled from the GST Portal. If it is available in GST portal, it will return you with the details. If you get the details, then you can re-fire your request to generate the IRN. If you are not able to verify through API, you can go to einvocie1.gst.gov.in portal and use the ‘Tax Payer / GSTIN’ option in search menu to check the status manually from GST Portal and use ‘Update’ button to get it updated from GST Common Portal. If you are satisfied with result, you can re-fire the request. |
| 3029 | GSTIN is not active | GSTIN is inactive or cancelled by department or tax payer. | Check the correctness of the GSTIN and its status. If you are sure that it is active, Pl use the ‘Sync GSTIN from GST CP’ API to get it verified from the GST Portal. If it is active at GST portal, it will return you with the new status. If you get the status as ‘Active’, then you can re-fire your request to generate the IRN. If you are not able to verify through API, you can go to einvocie1.gst.gov.in portal and use the ‘Tax Payer / GSTIN’ option in search menu to check the status manually from GST Portal and use ‘Update’ button to get it updated from GST Common Portal, if required. If you are satisfied with result, you can re-fire the request. |
- Recent AAR & Judicial Decisions:
(i) AAR On No ITC on available to Manufacturer who purchased Dubai Tickets, Gold Vouchers, Home Appliances for rewarding Retailers who meet Targets:
(Applicant – GRB Dairy Food Pvt. Ltd)
The Tamil Nadu Authority of Advance Ruling (AAR) ruled that the no Input Tax Credit (ITC) is available to manufacturers who purchased Dubai tickets, gold vouchers, home appliances for rewarding retailers who meet targets.
The applicant with the objective of expanding the market share’, the applicant launched a sales promotional offer to enhance sales of its products. The sales promotional offer was named as ‘Buy n Fly’ scheme. The scheme was valid from 8th April 2019 to 8lh July 2019. This scheme is applicable for sales of Instant Mix, Masalas, ready-to-eat sweets, and snacks. In other words, based on the quantity and value purchases made by retailers from sub stockists, the rewards fixed under the scheme would be awarded by the company to retailers. The applicant has stated that as per the scheme the retailers have to purchase the eligible products from the distributor, sub stockiest and they shall be eligible for the rewards/rewards under the scheme once the targets specified therein are achieved. This is a scheme aimed at promoting second leg sales in the supply chain i.e. from super-stockist to retailer which in turn would increase the overall sales of the company and also the market share. This scheme was made known to retailers/supply chains in advance to ensure that the benefits of promotional activities accrue to the company. It is not a mandatory scheme for all the retail outlets rather it is left in the direction of retailers to participate in the scheme. As per the scheme, retail outlets shall make efforts to maximize the sales of applicants’ products which in turn leads to an increase in the purchase of products by them from sub-stockist. The retail outlets have an obligation to increase the sales of the products covered by the scheme as much as possible and once the purchase of products by retail outlets exceeds the specified limit under the scheme they automatically become eligible to the rewards/rewards. This scheme is applicable for sales of Instant Mix, Masalas, ready-to-cat sweets, and snacks. In other words, based on the quantity and value purchases made by retailers from sub stockists, the rewards fixed under the scheme would be awarded by the company to retailers.
(ii) AAR On GST payable on Vehicles Registered in Tourist category for carrying Covid-19 patients for Medical Treatment:
(Applicant – Geetee Tours Pvt. Ltd)
The Maharashtra Authority of Advance Ruling (AAR) ruled that GST payable on Vehicles registered in the Tourist category for carrying Covid-19 patients for Medical Treatment.
The applicant is engaged in the business of tours and travels and carries on the business as package tour operators, daily passenger service operators, travel agents, etc, and is also engaged in running of buses, conveyances of all kinds and to transport passengers. Since their vehicles are supplied for transportation of passengers and other allied activities, the applicant feels that the rate of tax applicable on supplies of vehicles for transportation of passengers and other allied activities is 12% as per Notification No. 11/2017-C.T(Rate) dated 28.06.2017, as amended vide Notification No. 20/2017-C.T(Rate) dated 22.08.2017. The applicant has entered into the contract with “MUNICIPAL CORPORATION OF GREATER MUMBAI (MCGM), Worli, Mumbai 400018 to provide AC SUV and Innova equivalent car services for carrying COVID 19 patients for medical treatment. The applicant has sought the advance ruling on whether Toyota Innova Or Equivalent Vehicles (6 Seater) registered in Tourist category with All India Tourist Permit provided for carrying Covid 19 patients for Medical Treatment would be considered as Taxable Services Or Exempted Services.
Disclaimer:
This publication contains information for general guidance only. It is not intended to address the circumstances of any particular individual or entity. Although the best of endeavour has been made to provide the provisions in a simpler and accurate form, there is no substitute to detailed research with regard to the specific situation of a particular individual or entity. We do not accept any responsibility for loss incurred by any person for acting or refraining to act as a result of any matter in this publication.
(Author is a well known Chartered Accountant practicing at Ahmedabad)
