GST WEEKLY UPDATE : 51/2021-22 (20.03.2022), By CA Vipul Khandhar

By CA Vipul Khandhar

1. CBIC enables Registration and Login for Taxpayers with Turnover Rs.20 cr:

The CBIC has enabled the facility to Registration and Login for Taxpayers with Turnover Rs. 20 to 50 crores. The CBIC had notified the reduction in the Applicability of GST E-invoicing threshold from Rs.50 Crores to Rs.20 Crores with effect from April 1, 2022.

2. GSTN enabled window to opt in for composition scheme for the FY 2022-23:

• The Goods and Services Tax Network (“GSTN”) has enabled window to opt in for composition scheme for the FY 2022-23 on GST Portal for the taxpayers. 

• The eligible taxpayers, who wish to avail the composition scheme may opt in for composition before March 31, 2022.

3.    Process to Generate Invoice reference number (E-Invoice) via GePP – ON excel module without            API or software help:

• The e-invoice system provides a provision of offline method to generate the multiple Invoice reference number in one-go by the tax payers. In order to download this tool, visit the trial e-invoice portal.

Go to Help> Tools > Bulk Generation Tools option.

Please make sure you are using 2010, or higher version of MS office.

Process of generating IRN using GePP

• Prepare the Invoice,
• Enter the Invoice details under ‘New Invoice’ option,
• Goto ‘Pending Invoices’ and
• Prepare Json, Upload the e-Invoice Json in e-Invoice portal Generate IRN and download the Excel File containing IRNs and QR Code.
• Import the Excel file in Tool using ‘Import QR Code’ Print the e-Invoice.
• Seller Profile This is one time entry form for entering the seller details. Details entered here will be used for preparation of JSON file. If more than one business address exists then separate Tools may be used. You may also upload your business logo which will be printed on the invoice as required in the ‘Supplier Profile’ sheet.
• Recipient Master You may enter the details of your clients using this option. Details of the recipient such as GSTIN, Tradename and address details may be entered using this option. This master will help you in quickly entering the purchaser details in the invoice entry form. That is, a list of the recipients will be shown so that you can select the purchaser and the other details are automatically populated.
• Product Master You may enter the details of your product using this option. Details of the products such as HSN code, description, units, price and tax rates can be entered. This master will help you in quickly entering the product details in the invoice entry form. That is, a list of the products will be shown so that you can select the product and the other details are automatically populated.
• New Invoice This is the main form and is used to enter the Invoice details. When user selects the ‘New E-invoice’ system displays the New E-Invoice entry form which is used to generate the new e-invoice (ENV). Before initiating a new E-Invoice generation,

– The user should have the Invoice in his hand. Firstly, the document details can be entered.  Category can be B2B/ SEZ / Exports

– The document type can be Tax Invoice/Credit Note/ Debit Note as per the business requirements.

–  Document No. should be unique for all the documents of the financial year

–  Document Date should be less than or equal to current date.

–  Next is the Bill To Details. The recipient details may be auto populated if the user has already entered the consignor details in Recipient Master. You can enter first 3 characters of the Purchaser name and the list is shown. Now select the purchaser, the other details are auto populated. All the other fields like GSTIN, State etc. are auto populated after selection. However, the system allows the user to edit the auto populated details. If the Recipient master is not created by the user, the system will allow him to manually enter the Name, GSTIN and Address details.

– The user can add multiple products by clicking on Add New Product button.  For one invoice only 10 items can be added.

– Serial Number must be unique

– System will automatically show the CGST and SGST tax rate for intra-state movement and IGST tax rate for inter-state movement based on the Consignor state and POS. All the totals are automatically calculated and displayed.

• E-Waybill details: E-way Bill can be generated for document types of Invoice only.

If e-Way bill is required, the details may be entered as given beow:

– Distance is mandatory.

– User needs to Enter Transporter ID, Transporter name and Transporter mode.

– If only Transporter Id is provided, then only Part-A is generated.

– If mode of transportation is “Road”, then the Vehicle number and vehicle type should be entered. If mode of transportation is Ship, Air, Rail, then the transport document number and date should be entered.

• After entering all the details in new invoice & uploading process: On click of ‘Browse’ button, the system will request to select the JSON file. User has to upload the IRN request file (maximum allowed file size for upload is 2 MB) to the e-invoice system.

– After IRN request file is uploaded the system processes the JSON file and generates the e-invoices and displays the 64 characters length Invoice reference number for each request.

– Once JSON is uploaded successfully, the IRNs are generated. Then, user can download the response file which is an Excel file.

• IMPORT IRNs The e-Invoice Tool has a facility where-in the IRNs generated may be imported in the tool. This will help in updating the details and printing the e-Invoice from the tool itself. Once imported successfully, ACK No, ACK Date and IRN will auto populate from the E-Invoice details file.
• Other function in GePP-ON tools:

Push To History option: This will transfer all details to IRN Generated sheet. Once push Invoices containing IRNs to history, All the details like Doc type, Doc No, Doc date, IRN No etc. will be displayed in the Invoice with IRN sheet.

Print E-invoice– If the IRN is present in the Invoice, then those Invoices has to be pushed to history by using a menu push history. Once it is done all details will be stored in the print E-invoice sheet. Now User can take the complete print copy of the selected e-invoice.

4. AAR & Judicial Decisions:

(i) Gujarat Highcourt Decision Regarding No GST Levy on exam services:

(Applicant – Educational Initiatives Pvt Ltd)

The company deals in products and solutions used by primary and secondary schools for assessment and learning. It works with private and public schools and organizations such as the World Bank and has undertaken assessment projects with various state governments. It prepares question papers and evaluates answers. The exams are conducted by schools on their premises or online.

When the company challenged the appellate authority’s conclusion before the high court, the division bench held that examination services are part of education and are hence duly exempted by the government from being taxed under the GST regime. In arriving at this conclusion, it observed by highcourt that, “We are of the view that the word ‘education’ cannot be given a natural meaning by restricting it to the actual imparting of education to students but should be given a wider meaning which would take within its sweep all matters relating to imparting and controlling education. Examination is an essential component of education as it is one of the major means to assess and evaluate the skills and knowledge of a candidate, be it a school test, university examination, professional entrance examination or any other examination.”

The Gujarat high court in the case of Educational Initiatives Pvt Ltd held that the government cannot levy goods and services tax (GST) on services provided to educational institutions for conducting exams as “examination is an essential component of education”.

(ii) AAR GST on road cutting charges paid to JNN on behalf of Jaipur Smart City Limited

            (Applicant – Lakhlan & Quereshi Construction Company)

M/s Jaipur Smart City Limited is not a “Governmental Authority”. Item number (vi) in Column (3) of serial number 3 of Notification 11/2017 dated 28th June 2017 as amended by Notification number 24/2017 of Central Tax (Rate) dated 21st September 2017 is not applicable in respect of all payments related to work order for Fire Fighting System installation at contracted area between applicant and Jaipur Smart City Limited.

The services provided by the applicant will be covered under Item number (xii) in Column (3) of serial number 3 of Notification 11/2017 dated 28th June 2017 as amended time to time and attracts GST @18% (i.e. 9% CGST & 9% SCGST).

the Applicant is liable to pay GST under RCM in respect of road cutting charges paid by them to Jaipur Nagar Nigam (JNN) on behalf of M/s. Jaipur Smart City Limited (JSCL) under Section 9 of CGST Act, 2017 read with No. 5 of the Notification No. 13/2017-CT(R) dated 28.06.2017 & No. 9 of the Notification No. 12/2017 of central tax (rate) dated 28th June 2017. The rate of GST would be @ 18% ( i.e. 9% CGST+9% SCGST).

As M/s JSCL is not a governmental authority therefore, serial number 3 of Notification No. 12/2017 of central tax (rate) dated 28th June 2017 as amended by Notification No. 02/2018 of central tax (rate) dated 25th January 2018 is not applicable on applicant. Further, as per clause (c) of sub section (2) of Section 15 of CGST Act, 2017, recovery of such road cutting charges by the Applicant from M/s. Jaipur Smart City Limited will be included in the value of supply under GST as the applicant is not qualified as a pure agent in the instant case. Thus, the applicant is liable to pay GST @18% (i.e. 9% CGST+9% SGST).

(iii) AAR GST on GST payable on Hostel Services by Mody Education Foundation:

(Applicant – Mody Education Foundation)

In the instant case, we find that the exemption to accommodation service is applicable in respect of a unit of accommodation where tariff is below Rs.1000/- per day. Notification No. 11/2017-CT(Rate) as discussed above provides applicable GST rate as per declared tariff of a unit of accommodation. Further, accommodation having declared tariff of a unit of accommodation of one thousand rupees and above but less than two thousand five hundred rupees per unit per day or equivalent, the GST rate will be charged 12%, further accommodation having declared tariff of a unit of accommodation of two thousand five hundred rupees and above but less than seven thousand five hundred rupees per unit per day or equivalent, the GST Rate will be charged 18%, further accommodation having declared tariff of a unit of accommodation of seven thousand five hundred rupees & above per unit per day or equivalent, the GST Rate wall be charged 28%. The applicant has stated in their application that they will charge below Rs. 1000/-per student per day, but it has not been declared by the applicant that how many Student will stay in a room, if more than one students wall stay in a room then GST rate will be chargeable, since the applicant did not make clear that how many students wall stay in a room/unit, hence considering non-clarity of tariff of a unit of accommodation, the GST rate as per notification no. 11/2017-Central Tax (Rate), dated 28.06.2017 will be applicable to the applicant.

Further, the applicant is providing service of serving of food to students in hostel. The said service is classifiable under HSN 9963 as provided under notification no. 11/2017-Central Tax (Rate), dated 28.06.2017 and GST rate will be applicable as per the above notification as discussed in para no. 8.

In view of the above, we find that the services supplied by the applicant is a Mixed Supply and highest rate of GST will be applicable among services provided by the applicant to students in hostel.

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 & Indirect Taxes at Ahmedabad