-By CA Vipul Khandhar
GSTN New Facilities On Portal:
- Registration Bank Account Validation of Taxpayers:
To establish correctness of the bank account and to verify whether it matches with the PAN of the business, validation of the bank account details provided at the time of GST Registration/ Creation of Temp ID by the taxpayers is being done with CBDT database. The status based on validation result is displayed to the registered taxpayers and Temp ID holders on their dashboard. Taxpayers and Temp ID holders can verify their Bank account status in their profile by clicking on the Bank Account Status link under Quick Links.
- Improvements made in filing process of GSTR-4 (Annual) Taxpayers who opt for Composition Levy are required to file an annual return in Form GSTR-4 from FY 2019-20 onwards. Several taxpayers were earlier filing GSTR-4 without filling up the required details in Table-6 of the said form with the result that the amount paid through Form CMP-08s became excess tax paid and got credited to Negative Liability Statement. To prevent taxpayers from making this mistake, they are now shown a warning message, “Table 4A to 4D and Table 6 outward supplies are required to be filled by taxpayer”. A reconciliation statement is also shown if difference occurs in table 5 and 6. In addition, for taxpayer who have already filed Form GSTR-4 wrongly for the FY2019-20 and/ or FY2020-21, a code was deployed to update the Ledger Tables for correcting the negative liability, in the backend.
- Changes in Table 12 of Form GSTR1 for enabling HSN validation for taxpayers with AATO more than Rs 5 Crore by The taxpayers are required to furnish HSN wise summary of outward supplies in Table 12 of Form GSTR-1 on the basis of their Annual Aggregate Turnover (AATO) as per the following scheme:
- Taxpayers with AATO of up-to Rs 5 crore have to report their supplies at minimum 4 digit and maximum 8 digit HSN/SAC code for their B2B supplies.
- Taxpayers with AATO of more than 5 Crore have to report their supplies at minimum 6 digit and maximum 8 digit HSN/SAC code for B2B and B2C supplies.
- Accordingly, a phase wise AATO based validation has been built into the system to ensure that taxpayers with AATO of up-to Rs 5 crore have to report minimum 2 digit HSN and more than Rs 5 crore have to report minimum 4 digit HSN in table 12 of GSTR-1 in the phase 1 of HSN validation at the portal.
- Changes made in Form GSTR-11:
- The placement of ‘INITIATE PRE-FILL OF GSTR-11’ button has now been changed to right side corner of the screen.
- As and when a user clicks on this button, a warning message, “You are about to initiate the auto population of filed GSTR- 1/5 records in your Form GSTR-11. You may view/Edit/Delete the auto populated records in the respective GSTR-11 tables. Do you want to proceed?” would be displayed.
Facility to apply for Temp User ID by an unregistered persons for claiming refund on GST Portal:
- The un-registered persons will now be able to apply for Temp User ID on GST Portal by selecting the reason for registration as, “To claim Refund”.
- They will be able to add their bank account details at the time of applying for Temp ID and subsequently edit their profile in respect of Authorized Signatory, Address and Bank Account details, if required. They can subsequently file for refund under the appropriate category on the Portal using their Temp ID credentials.
- Govt waives interest for non-filing of GSTR-8 by certain e-Commerce Operators:
The CBIC has waived the interest rate on account of the non-filing of GSTR-8 by certain e-commerce operators under section 52 of the Central GST Act, 2017.
Electronic commerce operators having the prescribed Goods and Services Tax Identification Numbers who could not file the statement under sub-section (4) of section 52 of the said Act, for the month of December 2020, by the due date, due to technical glitch on the portal but had deposited the tax collected under sub-section (1) of section 52 for the said month in the electronic cash ledger, the rate of interest per annum to be ‘Nil’, for the class of registered persons mentioned in column (2) of the Table given below, who were required to furnish the statement in FORM GSTR-8, but failed to furnish the said statement for the months mentioned in the corresponding entry in column (3) of the said Table by the due date, for the period mentioned in the corresponding entry in column (4) of the said Table.”
- DGFT extended the last date for filing of annual report under EPCG Scheme for the year 2022-23 till September 30, 2022:
- The DGFT vide Public Notice No. 13/2015-2020 dated June 09, 2022has issued amendments in Para 5.15 to Chapter 5 of the Handbook of Procedures 2015-20 (“HBP”) [i.e. Export Promotion Capital Goods (“EPCG”) Scheme] so as to extend the last date for filing of the annual report for the year 2022-23 from June 30, 2022 till September 30, 2022. Further, clarified that imposition of penalty of INR 5000/- for late filing of annual returns is applicable from 2022-23.
- The following sentence is added at the end of existing para 5.15 of Handbook of procedures.
- “Time limit to file returns for the year 2022-23 is extended till September 30, 2022. Late fees of Rs. 5000/- under this para is applicable for the returns due to be filed from the year 2022-23 onwards.”
- Effect of this Public Notice:Extension of last date for filing of annual returns under Para 5.15 of HBP 2015-20 along with a clarification that imposition of penalty of Rs. 5000/- for late filing of annual returns is applicable from 2022-23.
- DGFT relaxes Provision of submission of ‘Bill of Export’ for supplies made to SEZ units in case of Advance Authorisation:
The Director-General of Foreign Trade (DGFT) has relaxed the provision of submission of ‘Bill of Export’ as an evidence of export obligation discharge for supplies made to SEZ units in case of Advance Authorisation. Presently, one of the documentary requirements prescribed under ‘Guidelines for Applicants’ of ANF-4F (Application for Redemption) in case of supplies made to SEZ units under Advance Authorisation, states as follows: “…EP copy of the shipping bilks) containing details of shipment effected or bill of export in case of export to SEZ…”
- Exporter IEC should have only one ad code registered in EDI, throughout all ports. Exporter has to use only one AD code for all exports:
If an IEC is having different Ad codes in different ports, then one AD code has to be registered. Multiple ad codes are not allowed from today onwards.
- AAR & Judicial Decisions:
(i) AAR On GST supply value for sale of used motor vehicle would be the difference between Sale price and WDV on date of sale:
(Applicant – M/s Dishman Carbogen Amcis Private Limited)
Gujarat Authority for Advance Ruling (‘AAR’) “the applicant” has ruled that the value to be considered for sale of used motor vehicle would be the difference between Sale price and WDV on date of sale under Income Tax Act, 1961.
QUESTIONS BEFORE THE AAR (relevant extracts) On what value, the new car purchase by the company is sold after using it for business purpose, shall the GST be charged? Whether the value of old and used car, sold by the company, can be taken as the value that represent margin of the supplier, on supply of such car, and whether the GST can be charged on such margin? At what rate of GST, the new car purchase by the company is sold after using it for business purpose, shall the GST be charged?
That the ITC was not claimed at the time of purchases since it is blocked U/s 17(5) of CGST Act, 2017
AAR has specified the tax incidence on used vehicles as stated in Notification 8/2018 -CT (R) dated 25th January 2018. It states that the GST shall be discharged by seller on margin to be worked out on following basis: In case, depreciation under Income Tax Act is claimed, then sale value as reduced by written down value of asset on the date of sale. In case, this value is negative, then no GST would be charged. In other cases, sale value as reduced by purchase value of asset. In case, this value is negative, then no GST would be charged.
(ii) AAR On Turmeric in Whole form falls under the definition of ‘Agricultural Produce’
(Applicant – N.B. Patil)
The Turmeric (Turmeric in Whole form – not in powder form) is covered under the definition of ‘Agricultural Produce’. The HSN code of Turmeric is 0910 30 20 and the applicable rate of GST is 5% (CGST @ 2.5%+ SGST@ 2.5%). However, the first supply of Turmeric (Turmeric in Whole form -not in powder form) by farmers, being supply by non-taxable person in Agricultural Produce and Marketing Committee, is not liable to GST by virtue of provisions of section 23 (1) (b) and 2 (107) of the CGST Act, 2017.
Services rendered by the Appellant as a Commission Agent in APMC, Sangli, are not liable to GST in terms of SI. 54 Heading 9986 of Notification No. 12/2017 CT(R) dated 28.06.2017 read with SI. No. 24 of Notification No. 4/2017-Central Tax (Rate), dated 28.06.2017.
The Appellant is required to be registered in terms of Section 22( 1) of the CGST Act, 2017.
(iii) AAR On GST on royalty for Mining Lease & contributions to DMF & NMET
(Applicant – Singareni Collieries Company Limited)
The entry ‘997337’ is not enumerated at Serial No. 17(viia) and therefore is a different tariff item attracting tax at the rate of 9% CGST & SGST each.
The tax rate applicable for entry ‘997337’ is applicable to DMF & NMET.
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.
(The Author is a well known Chartered Accountant Practicing at Ahmedabad)