GST WEEKLY UPDATE :04/2024-25 (28.04.2024) By CA Vipul Khandhar

1. Important Update: Enhancement in the GST Portal:
   1. GSTN is pleased to inform that an enhanced version of the GST portal would be launched on 3rd May 2024. The effort is to improve user experience and ensure that the information you need is accessible and easy to navigate.
   2. Key Enhancements Include (PDF with screenshots attached):
   3. News and Updates Section:We have introduced a dedicated tab for all news and updates. This section now includes a beta search functionality, module wise drop downs and access to archived advisories dating back to 2017.
   4. User Interface Improvements: Minor tweaks have been made to the homepage to enhance usability and aesthetics especially to make it convenient to use.

Updated Website Policy: We have updated our website policy, including the data archival policy. Details regarding web managers have also been included.

These changes are scheduled to go live at midnight on 3rd May 2024. Attached to this advisory is a screenshot showcasing some of the upcoming modifications. GSTN will continue to keep you informed as and when these changes are implemented.

Thank you for your ongoing support and cooperation.  https://tutorial.gst.gov.in/downloads/news/screenshots_of_gst_revamped_fo_portal.pdf

Important Update from ICEGATE (CBIC):

Complete Registration Within 15 Days to Avoid Deletion: CEGATE (CBIC) has issued an update, stating: “Attention ICEGATE users: Your Reference ID is valid for 15 days. Complete your registration within this time to avoid deletion and re-initiation.”

3. AAR & Important Judgements:

(i) AAR On GST exempt On Teachers & Lectures Supply To BBMP Schools:

(Applicant – Crystal Infosystems And Services)

The GST AAR Karnataka addressed queries regarding the exemption of services provided by Crystal Infosystems and Services to BBMP schools and colleges. The analysis delves into the applicability of CGST and SGST to these services.

Crystal Infosystems and Services provide teachers and lecturers to BBMP schools and colleges on an outsourcing basis, characterizing the service as pure with no goods involved. Despite billing with 18% GST, BBMP claims exemption, citing its status as a municipality and the nature of the service falling under exempt categories.

The crux of the issue lies in the interpretation of relevant GST notifications, particularly Entry No. 3 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017. This entry exempts pure services provided to local authorities for functions entrusted to them under Article 243W of the Constitution.

The AAR examined three conditions for exemption eligibility:

1. Nature of Service: The service provided by Crystal Infosystems qualifies as pure service, devoid of any goods involvement.
2. Recipient Status: BBMP, being a municipality under Article 243P of the Constitution, qualifies as a local authority.
3. Function Relation: The service of providing teachers/lecturers aligns with the function of “Promoting educational aspects” entrusted to municipalities under Article 243W.

The ruling concludes that the service falls within the ambit of exemption under Entry No. 3, as it meets all stipulated conditions.

Conclusion: The GST AAR Karnataka’s ruling clarifies that the supply of teachers and lecturers to BBMP schools and colleges by Crystal Infosystems qualifies for exemption from GST under Entry No. 3. This decision underscores the importance of understanding the nuanced interpretations of GST laws and notifications in determining tax liabilities.

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)