GST WEEKLY UPDATE : 18/2023-24 (30.07.2023) By CA Vipul Khandhar

-By CA Vipul Khandhar

1. Advisory: e-Invoice Exemption Declaration Functionality Now Available:

• GSTN is pleased to inform you that the e-Invoice Exemption Declaration functionality is now live on the e-Invoice portal. This functionality is specifically designed for taxpayers who are by default enabled for e-invoicing but are exempted from implementing it under the CGST (Central Goods and Services Tax) Rules.
• Salient features of this functionality are:

1. The e-Invoice Exemption Declaration functionality is voluntary and can be accessed at the e-Invoice portal (www.einvoice.gst.gov.in ).
2. This functionality is applicable to taxpayers who are exempted from e-Invoicing as per the provisions of the CGST Rules.
3. It is important to note that any declaration made using this functionality will not change the e-Invoice enablement status of the taxpayer.
4. The responsibility to take decision vis-à-vis exemption with reference to various Notifications issued by the Government and report on the portal is of the person.

• The facility to report exemption declaration is purely for business facilitation purposes.

2    GSTN introduces New Tabs in ‘State Specific Information’ to Collect ‘CA Number/Electricity Consumer Number’:

• The New tabs in the ‘State Specific Information’ section of the registration form, for Consumer Agreement (CA) or Electricity Consumer (EC) numbers.
• It is now mandatory for all applicants to provide their CA/EC numbers while applying for GST registration.

3. Compulsory Generation of “e-invoice” if aggregate turnover is more than 5 Cr w.e.f. 01.08.2023:

E-Invoice is a concept in which all B2B invoices are electronically uploaded by the supplier and authenticated by invoice registration portal (IRP) with an IRN and QR code. The supplier should print the IRN and QR code on the invoice before issuing it to the buyer. Currently, e-invoicing is applicable for businesses with an annual turnover exceeding 10 crores. From 1st August 2023, e-invoicing is essential for all the registered persons whose aggregate turnover (based on PAN) in any prior fiscal year from 2017-18 onwards exceeds the 5 crores. 

What is GePP-On? Small taxpayer use free mobile base utilities for einvoice generation:

To help businesses to generate e-invoices, NIC has released an application known as ‘GePP-On’. To generate e-invoices using GePP-on application, you need to enter the invoice details in the form designed in the application.

Following are the features of GePP-On:

• Browser-desktop based application that works on mobile devices as well
• Generation of IRN
• Cancellation of IRN
• Generation of e-way bill number along with IRN
• Printing of e-invoice with QR Code,
• You can create customer and HSN master
• Designed to work in offline mode
• Backup and restoration of data and many such related features.

Currently, the beta version of GePP-On is released for businesses who are enabled for e-invoice generation. These businesses can use the existing login credentials to access the application. Shortly, the final version of GePP-On will be made available.

Download link to GePP: https://einv-apisandbox.nic.in/gepp/#/

The efforts to release of GePP-On application for e-invoice generation is a welcome move, not only for businesses that are already enabled for e-invoicing but also would benefit many small businesses in the coming days, when more businesses are brought under the ambit of e-invoicing.

4. Advisory for Customs (Waiver of Interest) Order 2023 and Regularisation of Electronic Bills of Entry:

       The Directorate General of Systems and Data Management of CBIC has issued an Advisory dated July 27, 2023 for operationalisation of the Customs (Waiver of Interest) Third Order, 2023 dated April 17, 2023 and the consequential regularisation of electronic Bills of Entry in case of manual Out of Charge (“OOC”) given in the wake of glitches in the implementation of ECL facility since April 01, 2023.

5. AAR & Important Judgements:

(i) AAR On GST On PG/Hostel Rent Paid:

(Applicant – Srisai Luxurious Stay LLP)

PG/Hostel Rent paid by inhabitants do not qualify for GST exemption under Sl No. 12 of Notification No. 9/2017-Central Tax (Rate) dated 28th September 2017. The services provided by the applicant are not considered akin to renting of residential dwelling for use as a residence, and thus, they do not fall under the exempted category.

The charges collected towards allied additional services provided by the LLP would not be considered as a naturally bundled service along with the service of providing Hostel/Paying guest accommodation. These services are treated as separate and distinct supplies for GST purposes.

GST on reverse charge will be applicable on the rental to be paid to the landowners by the applicant. Since the services provided by the applicant are liable to GST, the applicant must obtain GST registration and pay GST under the reverse charge mechanism for the rental paid to the landowners.

(ii) AAR On GST Classification Regarding Chikkis Taxable @5% and 18%:

(Applicant – Sirimiri Nutrition Food Products Private Limited)

1. Classification of Chikkies under respective HSN along with applicable tax rates on those chikkies:
2. Sesame Chikkies: HSN 1704, Tax Rate – 5%
3. Chocolate Peanut Chikkies: HSN 1806 90 20, Tax Rate – 18%

iii. Amaranth Chikkies: HSN 1704, Tax Rate – 5%

1. Crushed Peanut Chikkies: HSN 1704, Tax Rate – 5%
2. Spirulina Chikkies: HSN 1704, Tax Rate – 5% ADVERTISEMENT
3. Under which head classification needs to be done for the following types of chikkies:
   
   (a) Sesame Chikkies, Amaranth Chikkies, Crushed Peanut Chikkies, Spirulina Chikkies, and Dry Fruit Chikkies fall under “Sugar Confectionery not containing cocoa,” classified under chapter heading 1704, and are taxable at 5% GST.

(b) Chocolate Peanut Chikkies fall under “Sugar Confectionery containing cocoa,” classified under chapter heading 1806 90 20, and are taxable at 18% GST.

1. Will the above chikkies be treated as chikkies as per GST classification?

Yes, the above chikkies will be treated as chikkies as per the GST classification. They are categorized under “Sugar Confectionery not containing cocoa” or “Sugar Confectionery containing cocoa” based on their ingredients, and the applicable tax rates are determined accordingly.

d. Whether dry fruit chikkies will be covered under HSN 1702 or 1704?

Dry Fruit Chikkies will be covered under HSN 1704. They are considered as “Sugar Confectionery not containing cocoa,” and therefore, they fall under chapter heading 1704 for GST classification.

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.