GST WEEKLY UPDATE : 13/2023-24 (25.06.2023)

-By CA Vipul Khandhar

1. Advisory On New E-Invoice Portal:

• We would like to inform you that GSTN has on boarded four new IRPs (Invoice Reporting Portals) for reporting e-invoices in addition to NIC-IRP. As a result, the beta launch of a new e-Invoice portal (einvoice.gst.gov.in), has been done where taxpayers can find comprehensive information on e-invoice compliance in a user-friendly format, such as check your enablement status, self-enable themselves for invoicing, search for IRNs, web links to all IRP portals – all the relevant links/information in one convenient location. Taxpayers can log in to the new e-invoice portal using their GSTN credentials for select services pertaining to their GSTIN profiles.
• Taxpayers may note that the portal <gst.gov.in> is reference site for all masters (data), news and updates, latest releases etc. For registering e-invoices and to access APIs, you still need to go to <einvoice.gst.gov.in> sites. The urls of IRPs sites authorised to generate IRNs as on date are as follows:

• Also, at the helpdesk for e-invoice issues, for supporting the taxpayers vis-a-vis IRP issues is available at our Grievance Redressal Portal <gstsystem.in> where the relevant IRP can be selected using the dropdown created for each of the private IRP.
• Please note that taxpayers can continue to report e-invoices on the NIC IRP portal <gst.gov.in> as previously.

2    FAQs On New IRPs:

Q: Can I report an e-Invoice on any IRPs (including new IRPs) without incurring a fee?

A: Reporting of an e-Invoice on any of the Invoice Registration Portals (IRPs) including new IRPs is free of charge.

The list of authorized portals is stated below:

Q: What are the prerequisites for obtaining API access from New IRPs?

A: Similar to NIC-IRP, API access is granted by new IRPs to those entities whose Aggregate Annual Turnover (AATO) exceeds 100 Crores.

Q: Are e-Invoices issued through the new IRP considered valid?

A: Yes, e-Invoices created through the new IRPs are indeed valid.

Q: How can I check the validity of an Invoice Reference Number (IRN) generated by the new IRP?

A: You can confirm the validity of an IRN by utilizing the ‘Search IRN’ function available on the new e-Invoice FO Portal at https://einvoice.gst.gov.in.

Q: Is there an offline version or mobile app provided by the new IRP for e-Invoice generation?

A: Yes, the new IRP offers both an offline platform and a mobile application to facilitate e-Invoice generation.

Q: Is it permissible to register Invoice through more than one IRPs?

A: Taxpayers have the flexibility to register on any of the six IRPs, as they might find convenient. However, they should report invoice for IRN generation through another IRP only if they don’t get IRN Number through the IRP through whom they report for first time.

Q: Can the same invoice be reported on multiple IRPs?

A: No, reporting the same invoice on multiple IRPs is not advisable. If attempted, only one IRP will issue a valid IRN. If the same invoice data is uploaded to another IRP, an error message will appear due to duplicate record detection.

Q: What steps should I follow to on board on a new IRP?

A: To on board a new IRP, if you’re enabled for e-Invoice, you need to register/establish an individual account with the desired IRP. Verification of your mobile number and email id via an OTP will be conducted before on boarding. The process is free of any charges.

Q: Will an e-Invoice reported on a new IRP be automatically populated in GSTR-1?

A: Yes, e-Invoices reported on new IRPs are auto-populated in GSTR-1 on an hourly basis.

3. Important AAR & Judicial Decisions:

(i) AAR On GST Applicability on Export of Pre-Packaged and Labelled Rice:

(Applicant – Seetharamnjaneya Sortex)

The Andhra Pradesh GST Authority for Advance Ruling (AAR) has received an application seeking clarity on the GST leviability for the export of pre-packaged and labelled rice. The applicant presents different scenarios involving foreign buyers, exporters, and supply to the factory of the exporter. The AAR examines the relevant provisions and issues a ruling based on the interpretation of the law.

The AAR refers to the relevant notifications and legal provisions, including Notification No. 06/2022-Central Tax (Rate) and the legal Metrology Act, 2009. The AAR cites the definition of “pre-packaged and labelled” and clarifications provided by the Ministry of Finance. Based on these provisions, the AAR concludes that GST is applicable to the supply of pre-packaged and labelled rice, irrespective of whether it is for domestic sale or export.

The Andhra Pradesh GST AAR rules that GST is leviable on the export of pre-packaged and labelled rice up to 25 kgs, both to foreign buyers and exporters on a “bill to ship to” basis. Additionally, GST is applicable when supplying pre-packaged and labelled rice to the factory of the exporter, who subsequently exports the rice.

(ii) AAR On Ruling cannot be pronounced without proper documentation:

(Applicant – Om Shree Maa Mangala Logistics Pvt Ltd)

AAR held that the application for advance ruling is not maintainable due to the lack of relevant documents and the applicant’s absence during the personal hearing. The ruling cannot be pronounced without proper documentation, and the application is deemed not maintainable.

(iii) AAR On GST on Manpower Services Supply to State Govt Departments/Authorities:

(Applicant – Andhrapradesh corporation for Outsourced services)

Order from the Authority for Advance Ruling (AAR) in Andhra Pradesh regarding the applicability of GST (Goods and Services Tax) on the services provided by Andhra Pradesh Corporation for Outsourced Services (APCOS). Summary of the key points mentioned in the order:

1. APCOS is a not-for-profit company established under the Companies Act, 2013, to provide manpower supply services to various government departments, corporations, municipalities, and public institutions in Andhra Pradesh.

2. APCOS aims to remove private outsourcing agencies, ensure corruption-free outsourcing, provide reservation for specific categories, ensure timely payment of salaries, and provide statutory benefits to the outsourced manpower.
3. The applicant sought an advance ruling on the following questions:
4. The value of the supply of services rendered by APCOS as per Section 15 of the GST Act.
5. Whether the supply of manpower services to various state government departments is eligible for GST exemption under Notification Number 12/2017-Central Tax (Rate).
6. Whether the services of manpower supply to government authorities and entities are eligible for GST exemption under Notification Number 12/2017-Central Tax (Rate) as amended by Notification 16/2021-Central Tax (Rate).
7. The AAR examined the relevant provisions of the GST Act and the notifications mentioned above. They concluded the following:
8. The value of the supply of services by APCOS includes the total amount collected, which consists of remuneration, EPF, ESI, and welfare fund. GST is applicable on the entire amount.
9. The exemption from GST under Notification Number 12/2017-Central Tax (Rate) is applicable only to services provided by APCOS that are directly related to functions entrusted to a Panchayat under Article 243G of the Constitution or to functions entrusted to a Municipality under Article 243W of the Constitution. Other services provided by APCOS are taxable at 18% GST.
10. The same exemption criteria mentioned in point (b) apply to services provided by APCOS to government authorities and entities.

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)