GST WEEKLY UPDATE : 20/2022-23 (14.08.2022) By CA Vipul Khandhar

By CA Vipul Khandhar

1. GST Applicability has been clarified by the Finance Minister:

The Union Finance Nirmala Sitharaman on August 2, 2022 in Rajya Sabha said that,

• There is no GST on cash withdrawals from banks; nevertheless, the GST tax will apply only when the bank purchases cheque books from the printer. “5+5=10 transactions per month are totally free when withdrawn from ATMs,” she said.

• Further she clarified that Only 5% tax is imposed on hospital rooms that have a rent above Rs.5,000.

• No GST imposed on loose food items.

Finance Minister Nirmala Sitharaman clarified through a series of tweets that no GST will be levied on 14 items when sold loose.

“Recently, the GST Council in its 47th meeting recommended to reconsider the approach for imposition of GST on specified food items like pulses, cereals, flour, etc. There have been a lot of misconceptions about this that have been spread,” she tweeted.

• Clarification on exemption of renting of house for personal use: Govt has clarified that no GST is applicable when it is rented to a private person for personal use. No GST is applicable even if the proprietor or partner of the firm rents residence for personal use, the tweet said.

2. GST Portal Update:

(A) GSTN enabled GSTR-9 & GSTR-9C for F.Y. 2021-22 on GST Portal:

The Goods and Services Tax Network (“GSTN”) has enabled GSTR-9 & 9C for Financial Year (“FY”) 2021-22 for filing on the GST Portal.

• GSTR 9 – Annual Return | GSTR 9C Reconciliation Statement
• The due date for filing GSTR-9 & GSTR-9C is December 31, 2022.

The taxpayers whose aggregate turnover in the FY 2021-22 is up to 2 crore have been exempted from filing annual return.

(B) GST Portal enables Single Click Nil Filing of GSTR-1:

The Goods and Services Tax (GST) portal has introduced the new facility of filing of Nil Return for GSTR-1 in a single click where the taxpayers can file the Nil return by simply tick marking. “Introducing Single Click Nil Filing of GSTR-1 Taxpayers can now file Nil GSTR-1 by simply tick marking ‘File Nil GSTR-1’ check-box available on GSTR-1 dashboard. #NilGSTR1 #Return Made Easy #GST #Single Click #GSTR_1,” the Goods and Service Tax Network (GSTN) tweeted in its official twitter handle.

(C) GST Registration:

Allow taxpayer to enter multiple trade names Earlier only a single Trade Name was being captured during New Registrations and subsequent amendment in core field for Normal Taxpayer on the Portal. Now taxpayers have been provided with an option to provide up to 9 additional trade names for a single GSTIN registration through core field amendment.

1. The Taxpayer can upload supporting document for trade name of size 5 MB. Both these new fields will be kept optional.
2. Mandating mobile number for applying for persons applying for Temp ID for Advance Ruling Providing of Mobile number been made mandatory to the Advance Ruling Applicants for new Registration with a subsequent facility to Edit Profile.

(D) GST Returns:

Auto population of data in Form GSTR-4 from Form GSTR-1 in Table 4A & 4B (FO) The details of payment of liability, summary of outward supplies and inward supplies attracting reverse charge are reported by Composition taxpayers in Form GST CMP-08 on quarterly basis. In addition, details of purchases made from registered taxpayers are auto-populated in Form GSTR-4 A on basis of Form GSTR-1 filed by suppliers.

The Composition taxpayers have been provided with a facility to view the above details and its consolidated summary at GSTIN level. The above details are auto-populated in Form GSTR-4 (Annual) to help the taxpayers in filing their annual return.

These details can also be downloaded in Excel format. To access the same login to GST portal and click on Services > Returns > Annual return > Select FY > Search > GSTR-4 Annual > Download summary of GSTR-4A & 4B.

(E) GST Refund: Composite tax payer excess paid get refund.

Option in Form RFD-01 to get refund arising out of excess payment in GSTR 4, for Taxpayer under Composition levy. Earlier the taxpayers who had opted for Composition levy were not able to file for refund in Form GST RFD-01 under refund category “Excess payment of Tax, if any” but had to choose the refund category “Any other”.  While filing annual return (GSTR-4), if the composition taxpayers have deposited excess tax, they will now be able to file for refund under category “Excess payment of Tax, if any”.

(F) Advance Ruling:

Functionality to search and view Advance Ruling Orders Earlier.The same can be viewed/downloaded and would include orders passed by the Authorities of Model 1 States: GSTIN/ID of the Applicant Legal Name of the Applicant Order Date <> <> Order Number State/UT Nature of Activity for which Advance ruling is issued(List Box – Category – as in ARA-01-multiple selection) Issue related (List Box as in ARA-01-multiple selection) Description of Issue (Keyword searching)

(G) GST Payments:

1. Validation on generating Challan in OTC mode The limit of cash payment in Over the Counter (OTC) mode has now been restricted to Rs 10,000.

2. Updated GST PMT-06 challan page To account for any extensions in the due date for filing of Form GST PMT-06, filed by taxpayers who have opted for QRMP scheme.
3. For discharging their tax liability for Month 1 and Month 2 of a quarter, when taxpayer exercises 35% challan option, No interest shall be levied for the selected month if payment is made by 25th of the next month or the extended date, if any. Interest will be levied on payment made through „Challan on self-assessment basis‟ (other than 35% challan) in case of delayed payment (after due date of 25th of next month or the extended date, if any) or short payment.

3. AAR & Judicial Decisions:

(i) AAR On RCM not applicable to daily wages, Labour Charges & Contract Labour
       (Applicant – SubCom Projects India Private Limited)

The law regarding services by an employee to the employer in the course of or in relation to his employment enumerated in Schedule III to CGST Act, 2017 remains unchanged. Therefore tax will not be attracted for labour engaged on daily basis or employees etc., if the service is rendered in the course of such an employment. However manpower supply or labour supply services by manpower supply agency falls under SAC 98519 and is taxable @18%. This tax has to be paid by the manpower supply agency.

(ii) AAR On Electric Vehicle kits imported in disassembled state falls under CTH 8703:

       (Applicant – Volvo Auto India Private Limited)

CAAR held that Electric Vehicle kits, as described by Volvo Auto India Private Limited in the disassembled state and presented together as a kit merits classification under heading 8703 and are covered under S.No.526A(1)(a) of notification No. 50/2017-Cus. dated 30.06.2017 and therefore presently eligible for 15 percent rate of BCD applicable thereon.

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.