GST WEEKLY UPDATE : 38/2023-24 (17.12.2023) By CA Vipul Khandhar

By CA Vipul Khandhar

1. GST Portal glitch of non-population of ITC in GSTR-3B is now resolved: GSTN Portal:

GST return filers were encountering a technical issue while filing Form GSTR-3B. The data related to Input Tax Credit (ITC) was not being auto-populated in Form GSTR-3B.

For November, Form GSTR-2B has been generated, but it is not auto-populating in Form GSTR-3B.

We are pleased to inform GST filers that the issue has been resolved from the GST portal’s end. The due date for filing Form GSTR-3B for the month of November 2023 is 20th December 2023.

2. MRP includes GST too:

• Minister of State for Finance advises Customers to not Pay any Additional Charges Minister of State for Finance reaffirms that MRP includes Goods and Services Tax in response to a query raised at Lok Sabha By Manu Sharma –

• Minister of State in the Ministry of Finance, Pankaj Singh, affirmed in Parliament on Monday that the Maximum Retail Price (MRP) of products incorporates the Goods and Services Tax (GST), and consumers should not be subjected to any additional charges for it. In response to a query in the Lok Sabha raised by Member of Parliament Ramdas C. Tadas, questioning whether various retail traders are overcharging customers and manipulating GST payments to the Government through inflated bills, Minister Singh clarified that no specific instances of such practices have been observed by any Central Tax formation. Beyond this, additional inquiries were made about the Government receiving information on entities deceiving customers under the guise of GST, the prevalence of such malpractices across different regions due to collusion between officials and dishonest traders, and whether the Government possessed any details on the matter. To all these questions, Singh provided a concise response, stating that no specific cases of such practices have come to the attention of any Central Tax formation.

• Expanding on the clarification, the reply emphasized, “Hence, the Maximum Retail Price (MRP) of a pre-packaged commodity under the specified rules encompasses all applicable taxes, including GST.

• The Department of Consumer Affairs, through a letter dated 23.12.2019, has advised the Controllers of Legal Metrology of all States/UTs to instruct field staff to ensure compliance with the provisions of the rules.” Regarding a supplementary question on the steps taken or proposed by the Government, in consultation with various state governments, to address the issue and enhance vigilance against such malpractices, the Minister pointed to Rule 6 of the Legal Metrology (Packaged Commodities) Rules, 2011 (as amended).

• The rule mandates that every package must prominently declare the retail sale price, making it clear that it is the maximum retail price inclusive of all taxes. These concerns related to the “overcharging of customers by traders” were raised by Member of Parliament Ramdas C. Tadas in the Lok Sabha. In conclusion, Minister of State Pankaj Singh’s clear assertion in Parliament underscores that the Maximum Retail Price (MRP) of products inherently includes the Goods and Services Tax (GST), absolving consumers from any additional charges. The response to queries raised by Member of Parliament Ramdas C. Tadas emphasized the absence of specific instances of traders overcharging and manipulating GST payments.

3. GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE RAJYA SABHA UNSTARRED QUESTION NO-1043 ANSWERED ON – 12.12.2023 GST RATES FOR STATIONERY ITEMS AND ONLINE EDUCATION 1043. SHRI ABDUL WAHAB:

Will the Minister of Finance be pleased to state:

(a) whether it is a fact that stationery items that is mostly used by school and college going students are kept under higher GST slabs;

(b) if so, the reason and rational for keeping these items under higher GST;

(c) whether it is also a fact that, GST for taking online education that has largely democratised Indian education system, is under 18 per cent slab;

(d) if so, the reason and rational for keeping such higher GST on online education; and

(e) whether Government will consider bringing down the GST for both stationery items and online education in the interest of our aspiring students?

ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY) :

(a) & (b): GST on stationery items commonly used by school and college going students attract concessional rates ranging from NIL to 12%, except pens which attract 18% GST. The GST rates on such items are mentioned in the Annexure.

(c) & (d): Services, including online education, provided by an educational institution, i.e. an institution providing services by way of, –

(i) pre-school education and education up to higher secondary school or equivalent;

(ii) education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force;

(iii) education as a part of an approved vocational education course provided to its students, faculty and staff are exempt from GST.

(e): There is no such proposal. The GST rates and exemptions are notified on the recommendations of GST Council, which is a constitutional body comprising members from Union and State Governments.

4. AAR & Important Judgements:

(i) Supreme Court Decision Regarding ITC claimed by the Recipient cannot be denied without conducting due diligence of Supplier:

The Hon’ble Supreme Court in the case of the Assistant Commissioner of State Tax, Ballygunje and Others v. Suncraft Energy Pvt. Ltd. [Special Leave Petition (C) No. 27827-27828 of 2023 dated December 14, 2023] reaffirmed the order passed by the Hon’ble Calcutta High Court in the case of M/s. Suncraft Energy Private Limited and Another v. The Assistant Commissioner, State Tax [MAT 1218 of 2023 dated August 02, 2023] wherein the Court set aside the order of reversing excess credit availed in Form GSTR-3B as compared to Form GSTR-2A and held that the demand notice issued to the assessee for reversing the ITC could not be sustained without proper inquiry into the supplier’s actions.

Held:

The Hon’ble Supreme Court in the case of SLP (C) No. 27827-27828 of 2023 dismissed the Special Leave Petition and reaffirmed the order passed by the Hon’ble Calcutta High Court in the aforementioned case.

(ii) The Hon’ble Patna High Court  decision regarding Entire amount of pre-deposit not to be paid from Electronic Cash Ledger for filing appeal under Amnesty Scheme

The Hon’ble Patna High Court in M/s. Friends Mobile v. State of Bihar and Others [CWJC No. 6457 of 2023 dated December 6, 2023] allowed the Writ Petition and held that the Revenue Department cannot direct the Appellant to pay the entire amount of pre-deposit for filing appeal from Electronic Cash Ledger under the Amnesty Scheme. 

Issue:

Whether Entire amount of pre-deposit has to be paid from Electronic Cash Ledger for filing appeal under Amnesty Scheme?

Held:

The Hon’ble Patna High Court in CWJC No. 6457 of 2023 held as under:

Observed that Notification No. 53/2023 dated November 2, 2023 (“the Notification”) issued by the Respondent, allowed the filing of delayed appeals beyond the period specified in Section 107 of the Central Goods and Service Tax Act, 2017 (“the CGST Act”). The Notification mandates the payment of 12.5 percent of the pending amounts to the Department, as opposed to the 10 percent prescribed under the CGST Act. The notification further states that at least 20 percent of the remaining 12.5 percent should be paid from the Electronic Cash Ledger.

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)