GST WEEKLY UPDATE : 49/2021-22 (06.03.2022) by CA Vipul Khandhar

CA Vipul Khandhar

1. Taxpayers having T/O more than Rs.20 cr. are enabled for testing on sandbox system of the e-Invoice portal:

As per the recent update by GST e-Invoice System, e-Invoicing is mandatory as per notification No. 01/2022 Dated 24, February, 2022 for the taxpayers with annual turnover more than Rs. 20 crores from April 01, 2022.

The taxpayer can check his eligibility of e-Invoicing at Option Search -> ‘e-Invoice Status of Taxpayer’ of the e-Invoice portal.

The eligible taxpayers are enabled presently on sandbox for testing.

2. GSTN advisory on salient features of E Invoices auto population into Gstr-1:

• Auto-population in GSTR-1 from IRP
• The tax-period of GSTR-1 in which the e-invoice will be auto-populated will be as per the Invoice Document Date and will be reflected in that respective month.
• If the e invoice is generated after filing of GSTR 1, such e invoice will not be auto-populated.
• If the invoice/debit/credit note is manually entered in GSTR 1, such shall not be over written and shall not be auto populated; the message regarding the same will be displayed.
• Supplies made thru ECO shall be enabled in tile 4A(ii)
• If a taxpayer edits the data auto-populated in GSTR-1 from e-invoices, such edited documents will be treated as if they were not auto populated but uploaded separately by taxpayer.
• Outward supplies details other than those reported in on the IRP have to be manually entered in GSTR-1, as earlier.
• Documents reported earlier on the Invoice Registration Portal (IRP) can be cancelled within a specified period on the IRP. Upon cancellation, all cancelled document(s) which were appearing as saved documents in GSTR-1 are deleted from the GSTR-1.
• An additional facility of consolidated download E-invoice data in Excel format is made available in GSTR-1 dashboard.
• The link ‘e-invoice download history’ can be used to view the list of last five downloaded files.

3.Maharashtra Govt. issued guidelines for issuance of FORM GST DRC-07 for vehicles detained under e-way bill provisions:

The office of the Commissioner of the State Tax, Maharashtra State, vide Internal Circular No. 04A of 2022 dated March 02, 2022 issued guidelines for issuance of FORM GST DRC-07 in case of detention of vehicles under EWB provisions.

To address the issues faced by the proper officer regarding issuance of FORM GST DRC-07 online on BO, where the taxpayer is not under his jurisdiction and difficulties faced by the taxpayer while filing an appeal against the orders passed by the proper officer, the following guidelines, as scenarios given in the Table No.1, are being issued with this Internal Circular until further directions. Hereinafter, in this circular, proper officer shall be referred to as the “PO” and jurisdictional officer as the “JO”.

Table No. 1

4. GST Evasion: CBIC cautions against Sharing Aadhaar, PAN Details without Valid Reason: .

The CBIC has cautioned the public against sharing Aadhaar and PAN details without a valid reason or for monetary gains, saying that the information could be misused by fraudsters for GST evasion. In a Communication issued by CBIC said that, Aadhaar and PAN details can be used for creating fake entities in GST for evasion of taxes and hence people should refrain from sharing these without a valid reason.

5. The Goods and Services Tax Network (GSTN) has enabled the new feature ‘Geo-location’ for filling Address of new registration and amendment of address for existing registration:

In case of any changes to the address of principal place of business or any additional place of business, GST FORM REG-14 can be filed.

6. Implementation of automation in IGCR Rules, 2017 w.e.f. 01.03.2022: Circular No. 04/2022-Customs Dated February 27th, 2022:

Earlier, CBIC issued notification to make certain amendments in existing Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017. These changes shall come into effect from 1st March, 2022. The amendments are aimed at simplifying the procedures with a focus on automation and making the entire process contact-less. These include:

1. a) The individual transaction based permissions and intimations, such as -intimation of the intent to import goods at a concessional rate of duty, intimation of the receipt of goods, permission to re-export or clear goods domestically etc, are all being done away with.
2. b) The various forms have been standardized and notified for the purpose of electronic submission of details.
3. c) A monthly statement would be submitted by the importer on the common portal.
4. d) A procedure for inter-unit transfer of the imported goods has been provided for.
5. e) An electronic option for voluntary payment through the common portal is also being developed for implementation.

7. DGFT: Filing/issuance of RCMC/RC through common digital platform Mandatory from April 01, 2022:

The Directorate General of Foreign Trade (DGFT) has mandated the Filing / issuance of RCMC / RC through common digital platform Mandatory from April 01, 2022. it will be mandatory for the exporters to file Registration Cum Membership Certificate (RCMC)/ Registration Certificate (RC) applications (for issue/renewal/amendment) through the common digital portal of e-RCMC Platform from April 1st 2022.

8. Important Judgements & AARs:

(i) Hon’ble Gujarat Highcourt Decision Regarding Refund of unutilized credit – Zero rated supply/export by SEZ unit:

(Applicant – M/s. IPCA Laboratories Ltd)

“4. The writ applicant received the aforesaid Input Tax Credit of the integrated tax from its ISD and ITC inward supply charged by the supplier as is permissible under the law. It is the case of the writ applicant that being a SEZ Unit making Zero Rated Supplies under the GST, the writ applicant has not been utilized the credit and the same is lying unutilized in the Electronic Credit Ledger.

10. The issue raised in the present writ application is no longer res integra in view of the judgement and order passed by this Court dated 11th March 2020 in the case of M/s. Britannia Industries Limited vs. Union of India [Special Civil Application No.15473 of 2019]. We take notice of the fact that M/s. Britannia Industries Limited(supra) is based on M/s. Amit Cotton Industries vs. Principal Commissioner of Customs [Special Civil Application No.20126 of 2018 decided on 27th June 2019].
11. In view of the aforesaid, the writ applicant could be said to be entitled to claim the refund of the IGST lying in the Electronic Credit Ledger as there is no specific supplier who can claim the refund under the provisions of the CGST Act and the CGST Rules as Input Tax Credit is distributed by the input service distributor”.

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 in the field of direct and indirect taxes at Ahmedabad)