GST WEEKLY UPDATE :13/2022-23 (26.06.2022) By CA Vipul Khandhar
-By CA Vipul Khandhar
- Period for levy and collection of Compensation Cess extended till March 31, 2026:
- The CBIC vide Notification No. 1/2022–Compensation Cess dated June 24 June, 2022 has issued the Goods and Services Tax (Period of Levy and Collection of Cess) Rules, 2022 w.e.f. July 1, 2022, to extend the period for levy and collection of Compensation Cess under Section 8(1) of the Goods and Services Tax (Compensation to States) Act, 2017 (“the Compensation Cess Act”), upto the March 31, 2026.
- GST Cess would be applicable to both the supply of goods or services that have been notified by the Central Government. Also, both intra-state supplies of goods or services and inter-state supplies of goods or services would attract GST cess. All taxable person under GST, except taxpayers registered under GST composition scheme is expected to collect and remit GST cess. The following goods will attract GST Cess :
- Pan Masala
- Tobacco and manufactured tobacco substitutes, including tobacco products
- Coal, briquettes, ovoids and similar solid fuels manufactured from coal, lignite, whether or not agglomerated, excluding jet, peat (including peat litter), whether or not agglomerated
- Aerated waters
- Motor cars and other motor vehicles principally designed for the transport of persons (other than motor vehicles for the transport of ten or more persons, including the driver), including station wagons and racing cars.
- Any other supplies as notified from time to time.
GST Cess Rate
| Name of Goods or Service | HSN Code | GST Cess |
| Pan Masala | 2106 90 20 | 60% |
| Aerated waters, containing added sugar or other sweetening matter or flavoured | ||
| Aerated waters | 2202 10 10 | 12% |
| Lemonade | 2202 10 20 | 12% |
| Others | 2202 10 90 | 12% |
| Tobacco and Tobacco Products | ||
| Unmanufactured tobacco bearing a brand name | 2401 | 65% |
| Tobacco refuse, bearing a brand name | 2401 30 00 | 61% |
| Chewing tobacco (without lime tube) | 2403 99 10 | 160% |
| Chewing tobacco (with lime tube) | 2403 99 10 | 142% |
| Filter khaini | 2403 99 10 | 160% |
| Jarda scented tobacco | 2403 99 30 | 160% |
| Pan masala containing tobacco ‘Gutkha’ | 2403 99 90 | 204% |
| Cigarettes | ||
| Non-filter | ||
| Not exceeding 65 mm | 2402 20 10 | 5% + Rs.1591 per thousand |
| Exceeding 65 mm but not 70 mm | 2402 20 20 | 5% + Rs.2876 per thousand |
| Filter | ||
| Not exceeding 65 mm | 2402 20 30 | 5% + Rs.1591 per thousand |
| Exceeding 65 mm but not 70 mm | 2402 20 40 | 5% + Rs.2126 per thousand |
| Exceeding 70 mm but not 75 mm | 2402 20 50 | 5% + Rs.2876 per thousand |
| Others | 2402 20 90 | 5% + Rs.4170 per thousand |
| Other Tobacco Products | ||
| Cigar and cheroots | 2402 10 10 | 21% or Rs. 4170 per thousand, whichever is higher |
| Cigarillos | 2402 10 20 | 21% or Rs. 4170 per thousand,
whichever is higher |
| Cigarettes of tobacco substitutes | 2402 90 10 | Rs.4006 per thousand |
| Cigarillos of tobacco substitutes | 2402 90 20 | 12.5% or Rs. 4,006 per thousand whichever is higher |
| Other | 2402 90 90 | 12.5% or Rs. 4,006 per thousand whichever is higher |
| Hookah’ or ‘gudaku’ tobacco bearing a
brand name |
2403 11 00 | 72% |
| Tobacco used for smoking ‘hookah’ or ‘chilam’
commonly known as ‘hookah’ tobacco or ‘gudaku’ |
2403 11 00 | 17% |
| Other smoking tobacco not bearing a brand name. | 2403 11 90 | 11% |
| Smoking mixtures for pipes and cigarettes | 2403 19 10 | 290% |
| Other smoking tobacco bearing a brand name | 2403 19 90 | 49% |
| Other smoking tobacco not bearing a brand name | 2403 19 90 | 57% |
| “Homogenised” or “reconstituted” tobacco bearing a brand name | 2403 91 00 | 72% |
| Preparations containing chewing tobacco | 2403 99 20 | 72% |
| Snuff | 2403 99 40 | 72% |
| Preparations containing snuff | 2403 99 50 | 72% |
| Tobacco extracts and essence bearing a brand name | 2403 99 60 | 72% |
| Tobacco extracts and essence not bearing a brand name | 2403 99 60 | 65% |
| Cut tobacco | 2403 99 70 | 20% |
| All goods, other than pan masala containing tobacco ‘gutkha’, bearing a brand name | 2403 99 90 | 96% |
| All goods, other than pan masala containing tobacco ‘gutkha’, not bearing a brand name | 2403 99 90 | 89% |
| Other Products | ||
| Coal; briquettes, ovoids and similar solid fuels manufactured from coal. | 2701 | Rs.400 per tonne |
| Lignite, whether or not agglomerated, excluding jet | 2702 | Rs.400 per tonne |
| Peat (including agglomerated) | 2703 | Rs.400 per tonne |
| Motor Vehicles | ||
| Motor vehicles (10<persons <13) | 8702 | 15% |
| Small Cars (length < 4 m ; Petrol<1200 cc ) | 8703 | 1% |
| Small Cars (length < 4 m ; Diesel < 1500 cc) | 8703 | 3% |
| Mid Segment Cars (engine < 1500 cc) | 8703 | 15% |
| Large Cars (engine > 1500 cc) | 8703 | 15% |
| Sports Utility Vehicles (length > 4m ; engine > 1500 cc; ground clearance > 170 mm) | 8703 | 15% |
| Mid Segment Hybrid Cars (engine < 1500 cc) | 8703 | 15% |
| Hybrid motor vehicles > 1500 cc | 8703 | 15% |
| Hydrogen vehicles based on fuel cell tech > 4m | 8703 | 15% |
| Motorcycles (engine > 350 cc) | 8711 | 3% |
| Aircraft for personal use. | 8802 | 3% |
| Yacht and other vessels for pleasure or sports | 8903 | 3% |
- GST QRMP Scheme: Govt asks Taxpayers to Pay Tax with interest after 25th June, Late Payment to Attract Interest:
In a recent advisory, the Goods and Services Tax (GST) department has issued an advisory asking the taxpayers opted for Quarterly Returns Monthly Payment (QRMP) scheme to pay their taxes on or before 25th June 2022, in order to avoid interest for late payment. An instruction published in the official twitter handle of the GST Network (GSTN) has stated that “Attention GST Taxpayers who are under QRMP Scheme! Deposit due tax liability for May, 2022 by using Form/Challan PMT-06 by June 25, 2022. Late payment will attract interest.”
- Commerce Ministry launches Indian Business Portal to help Indian exporters get global visibility:
Union Minister of State for Commerce & Industry Smt. Anupriya Patel launched the Indian Business Portal – An International Trade Hub for Indian Exporters and Foreign Buyers here today dated May 27, 2022. FIEO in partnership with GlobalLinker, has designed and developed the “Indian Business Portal”, an International Trade Hub for Indian Exporters and Foreign Buyers. This is a B2B digital marketplace to empower SME exporters, artisans and farmers to identify new markets for their products and grow their sales globally. Indian Business Portal is the only such marketplace that is exclusive for exporters registered in India and is custom-built to support exporters with a range of bespoke features and relevant partners integrated to build this ecosystem.
Strategic objectives of Indian Business Portal:
- Digitizing Indian Exporters and help them become discoverable online
- Promoting exports from all Indian States
- Showcasing India’s strength in wide range of Products & Services
- Encouraging virtual meetings between buyers and sellers
- Providing a trusted network of Indian Exporters to Foreign Buyers
- AAR & Judicial Decisions:
(i) AAR On Royalty Paid on Mining Lease Contract attracts 18% GST:
(Applicant – M/s. Singareni Collieries Company Limited)
The Telangana State Authority for Advance Ruling (AAR) has held that royalty paid in respect of mining lease contracts attracts 18% GST. The applicant, operates mines in the State of Telangana and is allotted 44 renewable mining leases covering an area of 1,50,000 acres by the Government under an agreement. The SCCL is required to pay a royalty to the Government at the rate of 14% on the sale price of coal extracted by them. The applicant approached the AAR to ascertain the rate of the tax rate applicable to the royalty paid. The Authority observed that Serial no. 17 of the Notification No. 11/2017 chapter heading no. ‘9973’ of SAC enumerates ‘leasing or rental services without an operator’. This entry was modified by removing the ‘with’ operator by Notification No. 27/2018. According to the explanation of this notification, any reference to chapter, section or heading shall be concerning the scheme of classification of services annexed to the notification. In this annexure, the service leasing or renting of goods is enumerated under group head ‘99732’. As against the above entry in the annexure to Notification No. 11/2017 the group head ‘99733’ enumerates leasing services for the right to use the intellectual property and similar products. Under this group, the tariff item ‘997337’ enumerates ‘licensing services for the right to use minerals including its exploration and evaluation’. This is the appropriate entry concerning royalty on mining. Hence the rate of tax of the residual entry is attracted on the royalty paid for mining at the rate of 9% CGST & 9% SGST.
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 endeavor 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.
