GST WEEKLY UPDATE : 47/2023-24 (18.02.2024) By CA Vipul Khandhar

-By CA Vipul Khandhar

1. GST Clearance Certificate from department procedure for tender submission:

Documents Required for Obtaining a GST Clearance Certificate

Acquiring a GST Clearance Certificate necessitates a specific set of documents. These documents are vital in demonstrating your commitment to GST compliance. The required documents include:

1. Photographs of Authorised Signatories:As with any official documentation, photographs of the authorized signatories are crucial to verifying the legitimacy of your application.
2. Identification and Address Proof of the Authorized Person:The person designated by the partners to handle GST matters must provide identification and address proof to confirm their identity and residence.
3. For Limited Liability Partnerships (LLP):If your business structure is an LLP, you will need to furnish additional documentation, including the registration certificate of the LLP and a board resolution attesting to your pursuit of a GST Clearance Certificate.

Process for application:

Obtaining a GST Clearance Certificate may seem like a complex process, but it can be broken down into a few key steps:

1. Submit Return Copies:Begin by submitting copies of your filed GST returns. This step ensures that your financial records are up-to-date and compliant with GST regulations.
2. Contact Assessing Officer:Alternatively, you can directly approach the Assessing Officer of your GST jurisdiction. It is essential to have a clean GST filing history with no outstanding dues to facilitate the process.
3. Provide Information:When making your request, include your full name, address, and GST number. This information is crucial for the authorities to process your application.
4. Certification Request:Draft a formal letter addressed “To Whom It May Concern.” This letter explicitly requests the issuance of the GST Clearance Certificate, citing your compliance with GST regulations.

On approval download Your GST Clearance Certificate?

Downloading your GST Clearance Certificate is a straightforward process:

1. Visit the GST Portal:Start by visiting the official GST portal at gst.gov.in. This portal is your gateway to accessing a multitude of GST-related services.
2. Log In:Use your correct login details to access your account on the GST portal. Ensure that your credentials are accurate to avoid any hiccups in the process.
3. Navigate to “Services”:Once logged in, proceed to the “Services” section of the portal. You will find various user services catering to your GST-related needs here.
4. View/Download Certificates:Within the “User Services” section, select “View/Download Certificates.” This action will lead you to a comprehensive list of certificates issued by GST tax authorities, all neatly arranged in descending chronological order.
5. Download Your GST Clearance Certificate:Locate the GST Clearance Certificate you require and proceed to download it. The document will be available in a format that is easy to store and share as needed.

The GST Clearance Certificate is a critical document for businesses in India, serving as a testament to their adherence to GST regulations. Obtaining and downloading this certificate involves a structured process that, when followed diligently, can unlock a world of business opportunities.

2.         GST Portal Alert: File Form CMP-02 to opt for Composition Levy Scheme by March 31, 2024:

The Goods and Services Tax Network (GSTN) has issued an announcement, stating that taxpayers can opt for the GST Composition Levy Scheme by filing Form CMP-02 in the Goods and Services Tax Portal by March 31, 2024. The Goods and Services Tax composition levy is an alternative method of levy of tax designed for small taxpayers whose turnover is up to Rs.75 lakhs (Rs. 50 lakhs in case of few States). The objective of the GST composition scheme is to bring simplicity and to reduce the compliance cost for the small taxpayers.

3. DOR, MOF, invites applications for appointment to the posts of the Judicial Members, Technical Members (Centre) and Technical Member (State) in Principal Bench and States Benches of GST Appellate Tribunal:

Eligible candidates are required to apply online and application portal would be accessible from 19.02.2024 until 1700 Hours on 31.03.2024

The Department of Revenue (DoR), Ministry of Finance has invited applications for appointment to the posts of the Judicial Members, Technical Members (Centre) and Technical Member (State) in the Principal bench and States benches of GST Appellate Tribunal (GSTAT).

GSTAT is the second Appellate Authority established under the Central Goods and Services Tax Act, 2017 (CGST Act) to hear various appeals under the said Act and the respective State/UT GST Acts. GSTAT will have one Principal Bench located at Delhi and 31 State benches located at various locations across States.

Details of posts and eligibility in brief are given below:

Minimum age to apply is 50 years (as on last date of application). Pay is ₹ 2,25,000 (fixed) per month. All other allowances and other terms and conditions of service (DA, Medical etc.) shall be the same as applicable to Central Government officers carrying the same pay (presently an officer at Pay Level 17).

Further details about the eligibility and other details are mentioned in the vacancy circular published in the DoR website (https://www.dor.gov.in/gstat-recuitment). Eligible candidates are required to apply online, details of which are also available on the DoR website. Online application portal would be accessible from 19.02.2024 and shall be open until 1700 Hours on 31.03.2024. Interested candidates may go through details posted on the website and apply online as per their eligibility and the procedure mentioned therein.

The Government shall appoint the Members on the recommendations of a Search-Cum-Selection Committee. The Applications received would be scrutinised with respect to suitability of application for the posts having regard to the qualifications and relevant experience of candidates. Shortlisted candidates may be called for personal interaction by the Committee, if deemed necessary and proper. The Committee shall recommend a panel of suitable candidates, on the basis of overall evaluation, to the Government to make the appointments.

4. AAR & Important Judgements:

(i) Hon’ble Madras Highcourt Decision Regarding CA Certificate is required to be considered by the department before  disallowing the claim of ITC:

(Applicant – Ingram Micro India (P) Ltd) 

The Hon’ble Madras High Court in the case of Ingram Micro India (P.) Ltd. v. State Tax Officer [Writ Petition No. 594 of 2024 dated January 12, 2024] held that the Assessing Authority did not apply their mind before drawing conclusions and failed to consider the certificate issued by a Chartered Accountant and all documents submitted by the Assessee. Hence, the Impugned Order was remanded for reconsideration.

Issue:

Whether a Certificate from Chartered Accountant is required to be considered by the department while disallowing the claim of ITC?

Held:

The Hon’ble Madras High Court in Writ Petition No. 594 of 2024, held as under:

• Observed that, all relevant documents were provided by the Petitioner in the reply.
• Noted that, the contentions of the Respondent stating that the entire trade payables of the Company across India should be taken as the trade payables because the Petitioner did not provide Tamil Nadu financial statements are wrong. Under the Companies Act 2013, every company is required to file financial statements regarding all of its operations, and there is no provision for filing state-specific financial statements. However, the Petitioner had submitted a certificate from a Chartered Accountant stating that the trade payables attributable to the State of Tamil Nadu are Rs. 1816.48 million. Learned counsel for the Petitioner also submits that the Petitioner would provide all the invoices issued by the suppliers with regard to the aggregate sum of Rs. 1816.48 million.

Held that, the Respondent did not apply its mind before drawing the conclusions. Consequently, the matter was remanded for reconsideration by the Respondent. Hence, the Impugned Order was quashed, and writ petition was allowed.

(ii) Hon’ble Highcourt Decision Regarding Penalty has not been leviable in the absence of E-way bill until the department proves intention to evade tax:

(Applicant – Falguni Steels)

in the case of M/s. Falguni Steels v. State of Uttar Pradesh and Ors. [Writ Tax No. 146 of 2023 dated January 25, 2024] held that mere technical errors, without having any potential financial implications, should not be the grounds for imposition of penalties. The Court emphasized that there must be an intention to evade tax. Therefore, if a penalty is imposed in the presence of all the valid documents, even if an E-Way Bill has not been generated, and there is the absence of any determination to evade tax, the penalty cannot be sustained.

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.