GST WEEKLY UPDATE :05/2024-25 (05.05.2024) By CA Vipul Khandhar
-By CA Vipul Khandhar
- The Government of Assam, through the Office of the Principal Commissioner of State Tax, has issued Circular No.1/2024, modifying the process of GST registration concerning rent deeds:
This circular aims to streamline the registration process and provide clarity on the submission of notarized documents.
- Modified Guidelines: Circular No.1/2024 modifies Circular No.1/2023, specifying that applications for GST registration will be considered valid if accompanied by a notarized rent agreement, leased deed, or No Objection Certificate (NOC), along with an Affidavit affirming the authenticity of the principal place of This allows applicants to submit notarized documents in lieu of registered rent deeds.
- Approval Process: If an applicant submits notarized documents instead of registered ones, prior approval from the concerned Zonal Joint Commissioner of State Tax is required on a case-by-case This approval is to be obtained through official mail (webmail) and should be granted within one day. The responsibility for maintaining records of such cases lies with the Office of the Zonal Deputy Commissioner of State Tax.
- Ensuring Genuineness: The requirement of a notarized affidavit sworn before a First Class Judicial Magistrate adds a layer of authenticity to the submitted documents, thereby ensuring the genuineness of the principal place of business. This step aims to prevent fraudulent practices and enhance the credibility of GST registrations.
- Efficiency and Transparency: By allowing notarized documents and streamlining the approval process, the circular promotes efficiency and transparency in the GST registration process. It reduces the bureaucratic burden on applicants while maintaining the integrity of the registration system.
- New FAQs on E-Invoice:
Yes, if you are eligible for e-Invoicing, all the invoices of B2B and Exports need to be registered.
No, there is no time limit for delivery of goods or generation of e-waybill for the e-Invoice.
Yes, if you are eligible for e-Invoicing, all the invoices including RCM invoices issued by the Supplier need to be registered.
Type of GST (whether IGST or CGSTS/SGST) is determined by POS (Place of Supply). If the Supplier state is same as POS, then it is CGSTS/SGST else IGST for B2B transactions.
The e-Invoice for services may be generated like any other invoice, by mentioning related SAC code and the total price in unit rate and the quantity may be mentioned as one.
Ideally, the e-invoice must be generated after preparing the manual invoice and before issuing it to the customer. The system presently allows to register invoices for the previous periods also.
Freight charges may be entered as line items in case there is a GST component or else they may be entered under ‘Other charges’.
No, it is not required. e-Waybill is required only if at least one of the items in the invoice has Goods and the value of invoice exceeds Rs 50 thousand.
Yes, they can be entered. Please refer the schema of the invoice at https://einv-apisandbox.nic.in/version1.03/generate-irn.html#JSONSchema for more details.
No, there is no time limit to prepare the credit notes or debit notes against the e-Invoice.
No, shipping bill number or date is not mandatory for preparing e-invoice.
No, e-Invoice is applicable only if the notified turnover is crossed in the previous years.
Invoice sent to the customer must contain the IRN number and the QR Code. Along with this you may send the regular invoice also.
The e-invoice portal https://gepp.einvoice1.gst.gov.in helps the suppliers in registering the invoices without the necessity for ERP system. This is a browser based and user friendly portal by which the e-invoices can be generated. The application may also be downloaded on to the mobile.
Yes, its applicable. If the customer is of type SEZ, then e-Invoice may be generated using transaction type as SEZWP / SEZWOP by the Supplier.
Ideally, e-invoice must be generated after making the manual invoice and before issuing the invoice to the customer. Presently, system allows for the invoices to be registered for previous period also.
Presently, system allows for the invoices to be registered for previous period. So, if you have missed uploading, then you may still generate e-Invoice for the previous period invoices.
No, supplier cannot upload the digitally signed invoice to the portal. The e-invoice system will digitally sign the e-invoice details uploaded to the portal and return the signed invoice and QR code to the Supplier.
You may visit https://einvoice1.gst.gov.in/Others/CBT and https://gepp.einvoice1. gst.gov.in/downloads/Welcometogepp.mp4 to understand the e-Invoice system and GePP-On system.
There is no specific place for printing the QR Code, IRN and Acknowledgement number on the invoice. However, they should be visible and in case of QR code, it should be possible to scan it.
e-waybills may be generated for all the modes of travel such as Road, Train, Air and Ship. In case of train, you may enter the railway receipt number and date instead of vehicle number.
Document number in e-Invoice should not be starting with 0, / and -. You should pass the document number without such characters.
All invoices to be registered on the portal should contain the values in INR, however there are some optional fields in the schema in which the foreign currency may be included.
Please refer the schema at https://einv-apisandbox.nic.in/version1.03/generate-irn.html#JSONSchema
- AAR & Important Judgements:
(i) AAR On SEZ unit holding LUT has not been liable for the RCM GST:
(Applicant – Waaree Energies Limited)
In the case of M/s. Waaree Energies Limited [Advance Ruling No. GUJ/GAAE/R/2024/09 dated April 16, 2024] held that the Special Economic Zone units (“SEZ unit”) are not required to pay GST under Reverse Charge Mechanism (“RCM”) on any service received from suppliers located in the Domestic Traffic Area (“DTA”) for carrying out the authorized operation in the SEZ unit, provided that a Letter of Undertaking (“LUT”) or bond as a deemed supplier of such services is furnished as mentioned in Notification 37/2017-Central Tax dated October 04, 2017.
M/s. Waaree Energies Limited (“the Applicant”) were engaged in the manufacture of solar modules and were registered under the category of the taxpayer as a SEZ Unit. The Applicant availed services such as Goods Transport Agency (“GTA”), Legal services from Advocate, Security Services, and Bus Hiring for employees (specified services) from the DTA for their SEZ Unit.
In respect of the four services they avail, the Applicant is required to pay GST under RCM in terms of Notification No. 10/2017-Integrated Tax (Rate) dated June 28, 2017.
The Applicant contended that Rule 5(5)(a) of the Special Economic Zone Rules, 2006 (“the SEZ Rules”), provides an exemption from the State Goods and Services Tax (“SGST”). Further, Rule 30(1) of SEZ Rules, enables a DTA supplier to clear services to an SEZ unit as in the case of a zero-rated supply in terms of Section 16 of the Integrated Goods and Services Tax Act, 2017 (“the IGST Act”), either under the bond or under legal undertaking or under any other refund procedure permitted under the GST law. Therefore, the aforesaid Notification cannot have any application in the case at hand.
Held that, the Applicant, an SEZ unit, can procure the services, for use in authorized operations without payment of IGST provided the Applicant, furnishes a LUT or bond as specified in Notification No. 37/2017-Central Tax dated October 04, 2017. This rationale was borrowed from clarification and not a circular which was given to specified SEZ unit. wherein clarification was sought, as to whether the SEZ unit is liable to pay GST in respect of legal services, sponsorship services, etc received by an SEZ unit, from a unit in DTA, which are chargeable to GST under RCM. The Tax Research Unit, CBIC, New Delhi, clarified a unit in SEZ or the SEZ developer can procure such services, where they are required to pay GST under RCM, without payment of IGST provided by the actual recipient, i.e. SEZ unit, furnishes a LUT in place of a bond as specified in the condition of Notification No. 37/2017-Central Tax dated October 04, 2017. The actual recipient of service is the deemed supplier/registered person for the purpose of fulfilling other conditions including the manner of furnishing of LUT.
(ii) Hon’ble Kerala Highcourt Decision Regarding Assessment Order is not valid when Petitioner could not file reply due to cancellation of GST Registration:
(Applicant – Vadakkot Chackoo Devassy)
Hon’ble Kerala High Court in the case of Vadakkot Chackoo Devassy v. State of Kerala and Others [WP (C) No. 42265 of 2023 dated December 21, 2023] set aside the Assessment Order and remitted the matter back for reconsideration in case where the Assessee could not file the reply due to cancellation of GST Registration and issuance of show cause notice on the next day of notice in GST ASMT-10.
Held:
The Hon’ble Kerala High Court in the case of WP (C) No. 42265 of 2023 held as under:
Noted that, the Petitioner was not afforded any time for filing of reply to the notice in GST ASMT-10.
Further Noted that, the Petitioner GST registration was cancelled before the said notices were uploaded in GST Portal.
Opined that, in the present case there is a violation of principles of natural justice.
Held that, the Impugned Order is set aside and the matter is remitted back for reconsideration.
(iii) Madras HC Cancels Order Against Assessee Who Was Unaware of Uploading SCN on the Portal:
The Madras High Court in a recent ruling set aside the assessment order as the court noted that the impugned orders had been furnished without affording the applicant a hearing.
The applicant, Marson Industries claimed that he was not aware of the proceedings culminating in the impugned orders as the SCN and the assessment order were uploaded on the “View Additional Notices and Orders” tab on the GST portal and not communicated to the applicant via any other mode.
Quoting Form GSTR DRC-03 on 23.05.2023 & 30.03.2023, the counsel of the applicant shows that the interest obligations of Rs.88,028/- and Rs.3,05,551/- had been released by the applicant.
Similarly, it was highlighted that such amounts were readily available in the electronic credit ledger of the applicant. The applicant asked for fair consideration of the interest liability on its merits. The court on analyzing the provided documents conceded that the impugned orders had been issued without providing the applicant a hearing.
The applicant submitted the payment receipts totalling Rs.88,028/- and Rs.3,05,551/- respectively, demonstrating compliance with the obligations in question.
A Single bench of Justice Senthilkumar Ramamoorthy of the Madras High Court, on careful consideration of the facts delivered, ruled in favour of the applicant. The impugned orders were set aside on 17.03.2023 and the cases were remanded to the respondent for reconsideration.
A duration of 15 days was allotted to the petitioner from the receipt of the court’s order to submit a response to SCNs. Following this, the respondent was mandated to afford the applicant a reasonable chance, including a personal hearing, before issuing fresh orders within a stipulated period of two months.
Without any financial load levied on the petitioner, the writ petitions were disposed of. Related miscellaneous petitions were too closed.
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)
