GST WEEKLY UPDATE : 15/2021-22 (11.07.2021)
-By CA Vipul Khandhar, Ahmedabad
- Important changes in QRMP Scheme implemented on the GST Portal for the taxpayers:
Auto population of GSTR-3B liability from IFF and Form GSTR 1 – A taxpayer under QRMP Scheme can declare their liability through optional IFF for Month 1 and Month 2 of a quarter & Form GSTR-1 for Month 3 of that quarter. Declaration of liability in these forms would now be auto-populated in their Form GSTR-3B (Quarterly) for that quarter, based on their filed Form GSTR-1 and IFF. These fields are editable and in case their values are revised upwards or downwards, the edited field(s) would be highlighted in red colour and a warning message will be displayed to the taxpayer.
Nil filing of Form GSTR-1 (Quarterly) through SMS – Nil filing of Form GSTR-1 (Qtrly) through SMS has been enabled for taxpayers under QRMP Scheme. However, NIL filing through SMS can’t be done in following scenarios (i) If IFF for Month 1 or 2 of a quarter is in Submitted stage, but not Filed, or (ii) If invoices are Saved in IFF for Month 1 or 2 of a quarter, which was not submitted or filed by due date.
Impact of cancellation of registration on liability to file Form GSTR-1- In case registration of a taxpayer under QRMP Scheme is cancelled, with effective date of cancellation being any date after 1st day of Month 1 of a quarter, they would be required to file Form GSTR-1 for the complete quarter, as the last applicable return. For example if the taxpayer’s registration is cancelled w.e.f. 1st of April, he/she is not required to file Form GSTR-1 for Apr-June quarter and Form GSTR-1 for Jan-Mar Quarter shall become the last applicable return. However, if the registration is cancelled on a later date during the quarter, the taxpayer would be required to file Form GSTR-1 for Apr-June quarter. In such cases the filing will become open on 1st of month following the month with cancellation date i.e. if cancellation has taken place on 20th May, Form GSTR-1 for Quarter Apr-June can be filed anytime on or after 1st of June.
2. Upcoming functionalities to be deployed on GST Portal for the Taxpayers in the month of July, 2021:
|Functionality released/ to be released for Taxpayers
|Timelines for filing of Application for Revocation of Cancellation of Registration in Form GST REG-21
|♦ In view of the spread of pandemic COVID-19 across many parts of India, vide Notification No 14/2021-CT, dated 1st May, 2021, read with vide Notification No 24/2021-CT, dated 1st June, 2021, the Government had extended the date for filing of various applications falling during the period from the 15th April, 2021 to 29th June, 2021, till 30th June, 2021.
♦ In addition to this, timeline for filing of Application for Revocation of Cancellation of Registration, which were due on 15th of April 2021, had also been extended till 30th June 2021 on the GST Portal.
♦ Accordingly, these extensions have now ceased to be effective w.e.f. 1st July, 2021, and timelines for filing of application for revocation of cancellation is now changed to 90 days (as was earlier) on the GST Portal, from date of Order of Cancellation of Registration in Form GST REG-19.
|Information regarding late fee payable provided in Form GSTR-10
|♦ Taxpayers whose registration is cancelled, at the time of filing of last return in Form GSTR-10, will now be provided with details of late fee payable by them, for the delayed filing of any of the previous returns/ statements in a table, for their assistance in filing of said return by them.
|Auto-population of data in Form GSTR-11 on basis of Forms GSTR-1 / 5 filed by their suppliers
|♦ The UIN holders file details of their inward supplies in Form GSTR-11 on a quarterly basis. They can subsequently file for refund (if required) in Form GST RFD- 10, for the quarter, in which summary of the documents is auto-populated from their Form GSTR-11, in an editable mode.
- GSTN enables Request for adjournment for Personal Hearing in GST portal.:
The GSTN have enabled the Request for an adjournment for Personal Hearing (PH) in the Goods and Service Tax (GST) portal. Adjourns the personal hearing already fixed and enables the next personal hearing. The officer has to select the date and time and issue a personal hearing notice. Adjournments are limited to a maximum of three times. The request can be filed by logging in the GST portal and filling up the details namely date of hearing and time of hearing for personal hearing, request for an adjournment for personal hearing, the due date to reply to the Show Cause Notice, request for extension of the due date for replying to the Show cause notice and upload the supporting documents.
- Enabled mechanism to disallow use of same CoO number in more than one BOE in certain cases w.e.f. July 08, 2021:
The Office of the Pr. Commissioner of Customs (Ns– I), issued Public Notice No. – 64/2021 dated July 07, 2021 for enabling additional checks for Certificate of Origin (“CoO”) Declaration in Bill of Entry (“BOE”) on System.
- Extended WFH facility for all SEZ Units under MEPZ SEZ up to December 31, 2021:
The Madras Export Processing Zone (“MEPZ”) Special Economic Zone (“SEZ”), Chennai issued Circular No. MEPZ/10/1/2009/IA1 dated July 08, 2021 to grant Work from Home (“WFH”) facility for all SEZ Units under MEPZ SEZ up to December 31, 2021 or until further orders, whichever is earlier.
- The DGFT issued Trade Notice 08/2021-22 dated July 08, 2021 w.r.t. acceptance, processing and issuance of claims under MEIS, SEIS, ROSL, ROSCTL in the DGFT IT modules on hold for a temporary period due to change in allocation procedure:
Members of the Trade and Industry are informed that issuance of benefits/scrips under MEIS, SEIS, ROSL and ROSCTL Schemes would be on hold for a temporary period due to changes in the allocation procedure. During this period, no fresh applications would be allowed to be submitted at the online IT module of DGFT for these schemes and all submitted applications pending for issuance of scrips would also be on hold. Trade would be suitably informed, once issuance of scrips is opened again.
- Recent AAR & Judicial Decisions:-
(i) The Decision of Hon’ble Madras High Court Regarding Substantial benefit under MEIS scheme cannot be denied for inadvertent human error:
(Applicant – M/s K. I. International Ltd.)
The Hon’ble Madras High Court in K.I. International Ltd. v. the Commissioner of Customs (Appeal) [W.P. No. 16328 of 2020 dated June 23, 2021] set aside the order passed by the Revenue Department rejecting the claim of the assessee that disentitled the assessee from claiming the benefits under the Merchandise Export from India Scheme ( “the MEIS Scheme” ) and held that, the assessee will be entitled for such benefits and the shipping bills reveal a clear intention of the assessee to avail benefit under the MEIS Scheme and directs the Revenue Department to grant consequential benefits within 8 weeks.
(ii) AAR On Engineering Design and Other Technical Advisory Services carried out in India constitute a supply as ‘Intermediary Services’:
(Applicant –M/s. Airbus Group India Private Limited)
The Karnataka Authority of Advance Ruling (AAR) ruled that the Engineering design and other technical advisory services carried out in India constitute a supply as “Intermediary services”. The applicant Airbus Group India Private Limited provides engineering design and other technical advisory services which include marketing support, customer support services, flight maintenance training, flight operations support, flight pilot training, etc. They also provide maintenance, repairs and overhaul services, agency services, renting of assets and trading of spares and parts of helicopters.
The applicant sought the advance ruling on the issue Whether the activities carried out in India by the Applicant would constitute a supply of “Other support services” falling under HSN code 9985 or as “Intermediary service” classifiable under HSN code 9961/9962 or any other classification of services as specified under various Tariff entries of rate notification issued under Goods and Services Tax law HELD The activities carried out in India by the Applicant would constitute a supply as Intermediary services classifiable under SAC 998599.
(Applicant –M/s. Aswath Manoharan)
Banana Chips are classifiable under Customs Tariff Heading 2008.19.40 and is liable to GST at the rate of 12% [6% – CGST + 6% – SGST] as per Entry at Sl No. 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.
Jackfruit Chips are classifiable under Customs Tariff Heading 2008.19.40 and is liable to GST at the rate of 12% [6% – CGST + 6% – SGST] as per Entry at Si No. 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.
Tapioca Chips are classifiable under Customs Tariff Heading 2008.19.40 and is liable to CST at the rate of 12% [6% – CGST + 6% – SGST] as per Entry at Sl No. 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.
Jaggery Coated Banana Chips [Sarkaraupperi] are classifiable under Customs Tariff Heading 2008.19.40 and is liable to GST at the rate of 12% [6% -CGST + 6% – SGST] as per Entry at S1 No. 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017.
(Applicant – M/s. Cigma Medical Coding Pvt Ltd.)
The collection and payment of examination fee to AAPC by the applicant on behalf of the students who are enrolled for training with the applicant is not liable to GST subject to fulfilment of the conditions stipulated under Rule 33 of CGST Rules 2017.
The collection and payment of examination fee to AAPC by the applicant on behalf of outside students (who are not enrolled for training with the applicant) without collecting any service charge either from students or AAPC is not liable to GST for the reasons as detailed in Para 7.7 above.
This authority has no jurisdiction to issue ruling on the question as the question not being in respect of any of the matters on which advance ruling can be sought, this authority is not having jurisdiction to give ruling on the question.
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.
(This weekly update is complied by well known Chartered Accountant Vipul Khandhar, of Khandhar and Associates, practicing in taxation)