GST WEEKLY UPDATE : 43/2022-23 (22.01.2023) By CA Vipul Khandhar

By CA Vipul Khandhar

1.    GST registration direct from MCA portal through spice-agile application form:

• Applying for incorporation of company on MCA Portal. Registration process under GST is now integrated with SPICe-AGILE Form (Simplified proforma software of MCA). 

• Once a new company applies for its incorporation/ registration with MCA, they can also apply for their registration under GST through SPICe-AGILE form, by furnishing additional information in addendum.

• Registration as a Normal or as a Composition taxpayer on SPICe-AGILE form.

• You cannot apply for registration as Input Service Distributor (ISD), SEZ Developer, SEZ Unit or Casual Taxable Person, UIN, Non-resident taxable person, Non-resident online services provider etc. through the SPICe-AGILE form.

• You can apply for GST registration by filling SPICe-AGILE form. However, please note that GST registration will be granted only after your company is incorporated with the MCA.

• The Director signing the SPICe-AGILE form on the MCA portal will be the Primary authorized signatory for GST registration. You can also add two Directors as your authorized signatory for GST purposes. 

• You can correct it through process of amendment on the GST Portal. Navigate toServices > Registration > Amendment of Registration Core Fields on GST Portal for making changes.

• Multiple registration has not allowed via MCA portal. The proposed company, as provided in the SPICe-AGILE form, will be the principal place of business for GST application.You can take registration for that State only where registered office of the proposed company is present.

• you can opt for composition levy through the SPICe-AGILE form.

• MCA allows details of up to 3 Directors to be entered in theSPICe-AGILE e-form form based on the class, category or sub-category.

• Later on up to a maximum of 10 directors’ details can be added through a process of core amendment onthe GST Portal. Navigate to Services > Registration > Amendment of Registration Core Fields on GST Portal.

• You can opt for Aadhaar authentication while applying for GST registration, in SPICe-AGILE form, through MCA Portal.

• While filing the SPICe-AGILE form, you need to digitally sign it. Same DSC will be applicable for GST registration also. However, you can register DSC of the other 2 Directors, nominated as authorized signatory, on GST Portal.

• What are various SRN statuses on the GST Portal?

2.    Advisory on taxpayers facing issue in filing GSTR-3B (16/01/2023):

• According to Hon’ble Supreme Court’s directive filing of TRAN forms was made available for aggrieved taxpayers during 10.2022to 30.11.2022. It has been observed that, in the process of filing TRAN forms, few taxpayers have submitted their forms on the portal but did not finally File it within the specified time. After submitting the Tran Forms, only filing was to be done with e-sign. Further, it is seen that such taxpayers have not raised any ticket for difficulty faced by them in filing Tran Forms. Some taxpayers were also contacted by GSTN and they informed that they do not intend to file TRAN forms. As the TRAN forms of these taxpayers are submitted but not filed, these taxpayers are not able to file their GSTR-3B.
• The TRAN filing window has already been closed. Hence, such taxpayers are advised to raise a ticket on GST Grievance Portal giving consent that their TRAN filing status may be reset by GSTN. Once the consent for resetting their unfiled TRAN forms is received, the TRAN forms will be reset and the taxpayer will be able to file their GSTR-3B. 

3. Advisory on facility of ‘Initiating Drop Proceedings’ of Suspended GSTINs due to Non-filing of Returns (16/01/2023):

Recently, a functionality of “Automated Drop Proceedings” of GSTINs suspended due to non-filing of returns has been implemented on the GST Portal. This functionality is available for the taxpayers who have filed their pending returns i.e. 6 monthly or 2 Quarterly returns.

1. If such taxpayers have filed all their pending returns, the system will automatically drop the proceedings and revoke suspension.
2. If the status of the GSTIN does not automatically turn ‘ACTIVE’, then taxpayers are advised to revoke the suspension once the due returns have been filed, by clicking on ‘Initiate Drop Proceeding’ for which navigation is as follows:

“Log on to GST Portal > Services > User Services > View Notices and Orders > Initiate Drop Proceeding”

Note: This functionality is applicable to the taxpayers whose GSTINs have been suspended after 1st December, 2022.

 4.    Advisory on “Initiating Drop Proceeding” by taxpayers(12/01/2023):

Recently, a functionality of Automated Drop Proceedings of GSTINs suspended due to non-filing of returns has been implemented on the GST Portal. This functionality is for the taxpayers who have filed their pending 6 monthly or 2 Quarterly returns.

Such taxpayers are advised to revoke the suspension once the due returns have been filed by clicking on “INITIATE DROP PROCEEDING” for which navigation is as follows:

“Services > User Services > View Notices and Orders > Initiate Drop Proceeding” 

5. AAR & Judicial Decisions:

(i) AAR On GST @12% applicable on unbranded pre-packaged namkeens and salted/flavoured potato chips:

(Applicant – Prajapati Keval Dineshbhai)

The AAR, Gujarat in  held as under:

• Observed that, the word ‘Namkeen’ is not defined under the Central Goods and Services Tax Act, 2017 (“the CGST Act”) and applying the common parlance test, deciphered that ‘Namkeen’ is a savoury snack that is ready to eat and is prepared by applying salt, masala, etc.
• Referred to the Judgment of Hon’ble CESTAT, New Delhi in the matter of Pepsico India Holidings (P.) Ltd. v. CCE & ST [2015 (318) ELT 278 (Tri – Delhi)]wherein, it was observed that salted food preparations are called ‘Namkeen’.
• Observed that, the Applicant intends to supply pre-packaged and labelled food products. Further, w.e.f. July 18, 2022, SI. No. 101A of the Schedule-I of the Goods Rate Notification is applicable to the goods that are not pre-packaged and labelled, which was earlier applicable to un-branded packages which do not contained any brand name. Thus, the Applicant is not eligible to tax rate of 5% GST under SI. No. 101A of the Schedule-I of the Goods Rate Notification.

• Stated that, the Products of the Applicant are classifiable under CTH 2106 90 99, even though the Applicant is intending to supply its products unbranded, the Products will be pre-packaged and labelled as per the Legal Metrology Act, 2009 and therefore, the Products will be classified under Sl. No. 46 of Schedule-II of the Goods Rate Notification and will attract GST at 12%.
• Further stated that, potato starch has a specific entry and is classified under CTH 1108 13 00 under Sl. No. 18 of Schedule-II of the Goods Rate Notification, attracting GST rate of 12%.
• Held that, the Products of the Applicant are classified under CTH 2106 90 99 and attract GST at 12%. Further held that, the by-product i.e. dry potato starch powder is classified under CTH 1108 13 00 and will attract GST at 12%.

Relevant Provisions:

Sl. No. 46 of Schedule – II of the Goods Rate Notification:

“Schedule II – 6%

Sl. No. 18 of the Goods Rate Notification:

“Schedule II – 6%

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.