GST WEEKLY UPDATE : 51/2022-23 (19.03.2023) By CA Vipul Khandhar

-By CA Vipul Khandhar

1.   GST e-Invoice System enabled the ‘E-Invoice voluntary enablement’ for FY 2022-23:

Up-till e invoice has been enablement as under:

The GST e-Invoice System has enabled the ‘E-Invoice voluntary enablement’ for Financial Year 2022-23.

2.    As per the Notification No.78/2020 – Central Tax dated 15th October, 2020,  it is mandatory for the taxpayers to mention 6-digit HSN Codes for their outward supplies having AATO more than Rs.5 Crores.:

After a few weeks of time, e-Invoice System will not accept 4-digit HSN codes.  The date for blocking e-Invoice generation having HSN code as 4-digits will be intimated shortly in this portal.

So, please make necessary changes in your system to report 6-digit HSN codes to e-Invoice Portal and comply by the notification.

You may verify all your HSN codes in the ( https://einvoice1.gst.gov.in ) portal under Search–>Master–>HSN Codes and also test in the sandbox system ( https://einv-apisandbox.nic.in ).

In case the 6 digit HSN code is not available, you may raise a ticket at Helpdesk so that it can be included in the system.

3. Regular taxpayers can opt for Composition Scheme for Financial Year 2023-24 by navigating as ‘Services-> Registration-> Application to Opt for composition Levy’ and filing Form CMP-02.

This facility is available on GST Portal till 31st March, 2023.

4.   Rajasthan GST Dept. issued guidelines for reimbursement of late fee payable and deposited u/s 47 by the registered taxable person under the RGST Act, 2017

The Government of Rajasthan, Commercial Taxes Department has issued Guidelines vide Order No. F.17 (137) ACCT/GST/2017/8289 dated March 10, 2023 for reimbursement of late fee payable and deposited under Section 47 by the registered taxable person under the Rajasthan Goods and Services Tax Act, 2017 (“the RGST Act”) for the period from April 2021 to March 2022.

The Chief Commissioner of State Tax shall issue guidelines for application and procedure for reimbursement of late fee payable and deposited. Therefore in compliance of the said order, the following guidelines are hereby issued for application and procedure of reimbursement of late fee payable and deposited under the Rajasthan Goods and Services Tax Act, 2017 for the period from April 2021 to March 2022.

1. The reimbursement of late fee payable and deposited under the Rajasthan Goods and Services Tax Act, 2017 for the period from April 2021 to March 2022 shall be available to the registered taxable persons who have furnished returns/details of outward supplies under section 37 (GSTR 1), section 39 (GSTR 3B, GSTR 4, GSTR 5, GSTR 6, GSTR 7), and section 45 (GSTR 10) under the Rajasthan Goods and Services Tax Act, 2017 by March 31, 2023.
2. The registered person applying for reimbursement of late fee payable and deposited shall first sign up by visiting Rajtax Portal http://rajtax.gov.in/vatweb.
3. Thereafter, the registered person shall submit “One Time request for Reimbursement of late fee” in the prescribed format as available on Rajtax Portal (http://rajtax.gov.in/vatweb).
4. If any registered taxpayer wants to update the bank details for getting reimbursement, he may submit request for updation of bank detail on Rajtax portal. Before submitting request for updation of bank details on Rajtax portal, the taxpayer has to update the same bank detail on GST portal by submitting application for amendment of registration.
5. The Jurisdictional proper officer shall verify the bank detail on GST portal before approving the request for bank detail updation on Rajtax portal.
6. The registered taxpayer shall furnish all the due returns compulsorily before submitting application for reimbursement of late fee.
7. A separate application for reimbursement of late fee for each type of return shall be submitted by the registered taxpayer.
8. The registered person shall apply for reimbursement of late tee in Format-I as available on Rajtax Portal (http://raitax.gov.in/vatweb). The registered person may apply for reimbursement of late fee for more than one tax period as defined under Section 2(106) of RGST Act, 2017 by submitting a single application.
9. On submission of the application by the applicant, a task shall be created on the Rajvista ID of the respective jurisdictional proper officer.
10. After verifying the correctness of the application, the proper officer shall issue sanction/partial sanction/rejection order for reimbursement in Format-2 as available on Rajtax Portal (http://rajlax.gov.in/vatweb) and the order shall be forwarded to the CSDO, Headquarter, Commercial Taxes Department, Jaipur for the payment of reimbursement amount.
11. The proper officer shall not reject any claim of reimbursement of late fee, without providing reasonable opportunity of being heard to the taxpayer and shall pass a reasoned speaking order of rejection, if any.
12. The CSDO shall estimate the budgetary requirement and request for budget to the headquarters. On receipt of the budget, the CSDO shall pass payment order.

5. Filing of manual Appeal Applications before 1st Appellate Authority under the Odisha GST Act, 2017

The Commissionerate of CT & GST, Finance Department, Government of Odisha has issued Notification No. CCT-PEI-POL-0155-2021-4450/CT&GST dated March 10, 2023 regarding the Filing of manual Appeal Applications before 1st Appellate Authority under Odisha Goods & Services Tax Act, 2017 (“the OGST Act”).

WHEREAS, filing of appeal applications in Form GST APL-01 electronically in the GST Common Portal is not possible in certain specific circumstances where the proper officers have passed orders manually disposing the rectification applications filed manually under Section 161 of the Odisha Goods & Services Tax Act, 2017. Now, therefore, in exercise of the powers conferred under sub-rule (1) of Rule 108 and sub-rule (1) of Rule 26 of Odisha Goods and Services Tax Rules, 2017, I, Sanjay Kumar Singh, IAS, Commissioner of State Tax, Odisha, Cuttack, do hereby specify the following procedures on manual filing of appeal applications by the appellants before the 1st Appellate Authorities specifically against orders passed manually by the proper officers under Section 161 of the Odisha Goods & Services Tax Act, 2017.

The appeal against orders disposing the rectification applications passed manually by proper officers, under section 107(1) of Odisha Goods & Services Tax Act, before the first Appellate Authority, shall be filed manually in Form GST APL-01 annexing thereto the self- certified copy of order appealed against.

Form GST APL-01 shall be verified and signed manually by the appellant.

The office of the First Appellate Authority shall record the APL-01 in the appeal register with serial number. The Provisional acknowledgement of the appeal shall be issued manually to the appellant immediately. The provisional acknowledgement shall contain the serial number of the appeal register.

The office of the Appellate Authority shall register the appeal and manually issue the final acknowledgement in FORM GST APL-02 indicating the appeal number. The appeal shall be treated as filed only when the final acknowledgement, indicating the appeal number, is issued.

The hearing and disposal of the same, the compliance of all the other procedures envisaged under Section 107 of Odisha Goods & Services Tax Act and Rule 108, Rule 109 and Rule 109(A) of the Odisha Goods & Services Tax Rules shall be ensured by the Appellate Authorities.

This notification shall also be applicable for all such pending cases for the specific circumstances described in Para-1. 

6. Clarification Regarding No restriction for GST Registration for Professional on Residential Address By Govt On Rajya Sabha Dated 14.03.2023:

          The Government of India, Ministry of Finance, Department of Revenue, Rajya Sabha answered the following:

        The Central Goods & Services Tax Act, 2017 does not restrict GST registration of Management consultants, Architects and other professionals operating from residential premises, due to covid-19 pandemic or otherwise.

7. AAR & Judicial Decisions:

(i) Decision of Hon’ble High court of Bombay Regarding Issue of “Proper Authority” resolves between Customs and GST Dept, Customs sanctions Refund following Direction:

(Applicant – M/s. M/s Bora Mobility)

The Bombay High Court (HC) has directed both the Goods and Services Tax (GST) and Customs department to coordinate and decide about the correct authority to decide the Integrated Goods and Services Tax (IGST) refund. The “proper authority” problem was resolved in accordance with the Bombay HC’s instructions. Together, the two departments determined who would be the appropriate authority to decide the petitioner’s claim. The Customs department took the initiative to sanction the refund.

(ii) Decision of Supreme Court Regarding Transaction has to be Proven Beyond Reasonable Doubt to Claim ITC u/s 70 of KVAT Act:

(Applicant – M/s. Ecom Gill Coffee Trading Private Limited)

The Supreme Court of India has clarified that under Section 70 of the Karnataka Value Added Tax Act, 2003, dealers who claim Input Tax Credit (ITC) on their purchases must provide evidence of actual physical movement of goods and prove the genuineness of the transaction. The dealer must furnish the name and address of the selling dealer, details of the vehicle that delivered the goods, payment of freight charges, acknowledgement of taking delivery of goods, Tax Invoices, payment particulars, and other relevant information to establish the same. If the purchase dealer fails to provide evidence of physical movement of goods on which ITC is claimed, the Assessing Authority is justified in rejecting the ITC claims.

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.