GST WEEKLY UPDATE :02/2024-25 (14.04.2024) By CA Vipul Khandhar

By Vipul Khandhar

1. Advisory: Auto-populate the HSN-wise summary from e-Invoices into Table 12 of GSTR-1 (09/04/2024):

GSTN is pleased to inform that a new feature to auto-populates the HSN-wise summary from e-Invoices into Table 12 of GSTR-1 is now available on the GST portal. This allows for direct auto-drafting of HSN data into Table 12 based on e-Invoice data.

Please note that the HSN-wise summary data auto-populated into Table 12 is intended for your convenience. Please ensure that you reconcile the data with your records before its final submission.

Any discrepancies or errors should be manually corrected or added in Table 12 before final submission.

2. Advisory on Reset and Re-filing of GSTR-3B of some taxpayers (09/04/2024):

This has reference to the facility for re-filing of GSTR-3B for some of the taxpayers. It was noticed that there were discrepancies in the returns of some taxpayers during the filing process between the saved data in the GST system and actually filed data in the fields of ITC availment and payment of tax liabilities. The matter was examined and deliberated by the Grievance Redressal Committee of the GST Council and as a facilitation measure the Committee decided that these returns shall be reset, in order to give opportunity to such taxpayers to correct the discrepancy.

Accordingly, only the affected taxpayers have been communicated on their registered email-ids and the affected returns are visible on their respective dashboards for the purpose of refiling with the correct data. The taxpayers who have received such communication, are requested to visit their dashboard and re-file their GSTR-3B within 15 days of receipt of such communication.

You may reach out to your jurisdictional tax officer or may raise ticket of GST grievance redressal portal, in case you face any difficulty in re-filing of such GSTR-3B.

Inconveniences caused to the taxpayer is deeply regretted.

3. Kerala GST Dept issued guidelines regarding the Issuance of Show cause.

Notices/Orders u/s 73 & 74 – Numbering of Show Cause Notices/Orders Circular No: 04/2024 dated March 30, 2024

Show cause notices u/s 73 & 74 of the SGST Act are being issued by the Intelligence and Enforcement, Audit and Taxpayer Services verticals of the Department. Rule 142 (1)(a) of the Kerala GST Rules mandates serving of a summary of notice electronically in Form GST DRC-01 along with the notice issued under Section 73 or Section 74 of the State GST Act. The Notice mentioned above is being prepared manually by the proper officer and uploaded in the portal.

Further, the adjudication of Show Cause Notices issued u/s 73 /74 of the SGST Act by various verticals are being done by the Taxpayer Services Vertical. The adjudication order is prepared manually and uploaded in the portal by the proper officer along with Form DRC-07. These notices and orders form the basis for all further litigation in that particular matter even in the tribunal and courts.

Under the circumstances, it is essential that Show Cause Notices and adjudication orders are duly recorded and tracked through litigation cycles that may last many years. For this purpose, it is necessary that Show Cause Notices and adjudication orders (Order in Original) are numbered in such a manner that they have a unique, easily identifiable number. At present however, there is a lack of uniformity among the State GST formations regarding numbering of Show Cause Notices and Adjudication Orders. Proper officers are currently uploading SCNs and Orders without providing any serial number for identification purposes. Since, these notices and orders are prepared manually, no online reference number will get generated on uploading the document from the GSTN backend portal.

As the notices and orders are the basis for subsequent legal processes, it is vital to identify the details such as the name of district, the vertical from which the notice/order was issued, designation of the issuing authority, unique serial number of the notice/order etc. from the number itself. Therefore, to bring in uniformity in creating the serial number of the Notices and Orders u/s 73 & 74 of the Act by the Intelligence and Enforcement, Audit, and Taxpayer services verticals of the Department, the following instructions are issued;

1. Every Show Cause Notice u/s 73 and 74 annexed with the DRC-01 issued from the backend portal shall carry distinct and unique SCN number.
2. The Format of the Show Cause Notice Number is as follows:- SCN/Short form of Vertical/Short form of District/Short form of Office/Unique number – Short form of Issuing officer. The unique number shall begin with 01 and continue sequentially until the end of the calendar year. The Format of number with examples is shown in Annexure-1.
3. A register for issuing Show cause Notice Number must be maintained in every office where an officer with power to issue an SCN is present.
4. The Format of Show Cause Notice Register is shown in Annexure-II.
5. Every Adjudication Order u/s 73 and 74 annexed with the DRC-07 issued from the backend portal shall carry distinct and unique order number.
6. The Format of the Adjudication Order Number (Order-in-Original number) is as follows:- OIO/Short form of Vertical/Short form of District/Short form of Office/Year/Unique number – Short form of Issuing officer. The unique number shall begin with 01 and continue sequentially until the end of the calendar year. The Format of number with examples is shown in Annexure-III.
7. A register for issuing Adjudication Order Number must be maintained in every office in Taxpayer Services vertical in the Format shown in Annexure IV
8. The supervisory authorities shall periodically verify the SCN Register and Adjudication Order Register and ensure that the Show Cause Notices and Adjudication Orders are numbered correctly.

The new numbering system of Notices and Orders shall come into force from April 01, 2024.

4. CBIC extends the timeline for implementation of new special procedure to be followed by a registered person engaged in manufacturing of certain goods from April 01, 2024 to May 15, 2024:

The CBIC vide Notification No. 08/2024- Central Tax dated April 10, 2024 extends the timeline for implementation of Notification No. 04/2024 – Central Tax dated January 05, 2024 for the new special procedure to be followed by a registered person engaged in manufacturing of certain goods from April 01, 2024 to May 15, 2024.

In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 04/2024-Central Tax, dated the January 05, 2024 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), vide number S.O. 85(E), dated the January 05, 2024, namely:-

In the said notification, in para 4, for the words and letters “1st day of April, 2024”, the words and letters “15th day of May, 2024” shall be substituted. This notification shall come into force from 1st day of April, 2024.

5. AAR & Important Judgements:

(i) CAAR Regarding Classification of Airsoft Toy Guns:

(Applicant – Jaiico Transs)

The Customs Authority for Advance Rulings, Mumbai, deliberated on the classification of Airsoft Toy Guns imported by M/s. Jaiico Transs. This article presents a comprehensive analysis of the ruling, examining the applicant’s submissions, jurisdictional responses, and the final decision.

The applicant sought classification under CTI 9503 0010 for electronic toys, citing the design and purpose of the Airsoft Toy Guns as recreational. They provided detailed specifications for various models, emphasizing their resemblance to classic army guns. The ruling considered the applicant’s arguments, scrutinizing the nature of the toy guns and their intended use in gameplay. Additionally, the ruling examined relevant legal frameworks, including Arms Rules, 2016, to assess the applicability of regulations governing toy imports.

The analysis also addressed concerns raised during personal hearings regarding the velocity of projectiles and manufacturing processes. The applicant clarified that the toy guns were harmless and intended for recreational use in controlled environments. Reference was made to similar trade rulings, reinforcing the classification of Airsoft Toy Guns as toys under heading 9503.

Based on the evidence presented and the interpretation of relevant laws, the Customs Authority for Advance Rulings, Mumbai, concluded that Airsoft Toy Guns and associated projectiles are classified as toys under CTI 9503. However, the ruling highlighted the necessity of compliance with safety standards and Arms Rules for importation.

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.