GST WEEKLY UPDATE : 52/2021-22 (27.03.2022) By CA Vipul Khandhar

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  1. Government (CBIC) has issued detailed guidelines for Return Scrutiny under GST for FY 2017-18 and 2018-19:

Such scrutiny of Returns would be in time bound manner. Some indicative list of parameters for scrutiny have been given in the guidelines as below:

  • Difference in Tax Liability between GSTR-1 and GSTR-3B.
  • RCM liability to be compared with RCM ITC availed in GSTR-3B
  • RCM liability appearing in GSTR-2A and liability declared in GSTR-3B
  • Tax liability paid in cash in GSTR-3B should not be less than liability declared on RCM in GSTR-3B
  • ITC availed on ISD to be compared with IDS ITC appearing in Table 7 of GSTR-2A
  • All other ITC availed in GSTR-3B to be compared with ITC appearing in GSTR-2A
  • Outward tax liability declared in GSTR-3B should not be less than payable as TDS/TCS appearing in GSTR-2A
  • Comparison of liability declared in GSTR-3B with E-way Bill Report
  • ITC availed in respect of vendors where registration cancelled retrospectively
  • ITC availed in GSTR-3B where vendors not filed GSTR-3B
  • GSTR-3B filed after September due date- no ITC to be availed in this Return
  • Import of goods ITC availed in GSTR-3B to be compared with ITC appearing in GSTR-2A on import of goods
  • ITC reversal under Rule 42/43 viz a viz exempted supply shown in Return

Payment of Interest and Late Fees, FAR.

  1. New change in GSTR-3B, table 3.1(A) for supply through e commerce operator:

A new table 3.1(A) shall be added in Form GSTR-3B for reporting of supplies made under section 9(5) of CGST Act and corresponding provisions in IGST/SGST/UTGST Acts.:

  • 1(A) Details of Supplies notified under section 9(5) of the CGST Act, 2017 and corresponding provisions in IGST/UTGST/SGST Acts Nature of Supplies Total taxable value Integrated tax Central tax State/UT tax Cess

(i)   Taxable supplies on which electronic commerce operator pays tax u/s 9(5) [To be furnished by electronic commerce operator]

(ii) Taxable supplies made by registered person through electronic commerce operator, on which electronic commerce operator is required to pay tax u/s 9(5) [To be furnished by registered person making supplies through electronic commerce operator]

3. GSTN – Upcoming changes/initiatives:

  • SMS based NIL Return filing for GSTR-3B and GSTR-1.
  • Improvements in GSTR-2A to show the status of filing of GSTR-1 and GSTR-3B by the supplier.
  • To show status of amendment of invoice with month of amendment.
  • Providing detail of invoices considered for computation in table 8A of GSTR-9.
  • Flow of ITC due to IGST paid on import from ICES to GST System.
  • Linking GSTR-1 with GSTR-3B (for flow of liability). PDF mail of filled GSTR-3B.
  • Linking GSTR-2A/2B & ICEGATE data with GSTR-3B for better ITC management.
  • Delinking of credit/debit notes with invoices in GSTR-1 GSTN – Upcoming changes with Matching Tool/Reconciliation Features:-
  • Matching Tool for comparison of system drafted purchase register and own purchase register.
  • Facility to create Vendor Master /HSN masters on taxpayer dashboard.
  • Communication of channel between buyer and supplier for missing invoices.
  • Improvement of Comparison Table of liability and ITC.


  1. Advisory for E-scrip to avail Export Incentive Schemes (RoSCTL, RoDTEP): Advisory No: 06/2021                               Escrip module is developed by ICEGATE, CBIC to provide a digital service to exporters to avail benefits defined under various incentive schemes like RoDTEP (Remission of Duties and Taxes on Exported Products) and RoSCTL (Rebate of State and Central Taxes and Levies). The scheme provides for rebate of Central, State and Local duties/taxes/ levies which are not refunded under any other duty remission schemes. The broad provisions are as under:                                                                                                                To avail the scheme exporter shall make a claim for RoSCTL/RoDTEP in the shipping bill by making a                                                    Once EGM is filed, claim will be processed by
  • Once processed, a scroll with all individual Shipping Bills for admissible amount would be generated and made available in the users account at ICEGATE
  1. User can create an escrip account under Escrip tab. This can be done by the IECs who have registered on ICEGATE with a
  2. Exporter can log in into his account and generate scrip after selecting the relevant shipping
  3. It has been decided that for the Chapters 61, 62 and 63(textile readymade & their articles), RoSCTL would continue to be given beyond 12.2020 and till 31.12.2024 instead of RoDTEP. Implementation of RoSCTL scheme in Custom Automated System has been developed.
  4. As of now the users can log into their ICEGATE account and create the escrip Account, as scrip generation provision will be made functional on the issuance corresponding notification by the department and availability of the Implementation of RoDTEP scheme in Custom Automated System has been developed.
  5. This advisory is a complete step-by-step guide for the user to create an escrip account, generate scrips and transfer the scrips to any other IEC to avail the benefit of the

  1. AAR & Judicial Decisions:

(i) Gujarat Highcourt Decision Regarding Department cannot block GST ITC without assigning any reason:

(Applicant – M/s New Nalbandh Traders)

The Gujarat High Court has held that the department cannot block the Input Tax Credit (ITC) without assigning any reason to the assessee.

The petitioner had purchased M.S. Scrap from one of its suppliers, namely, M/s Anmol Enterprise, during the period between December 22, 2020 and March 27, 2021.

When the assessee received the goods from the supplier along with the tax invoices, weighment slips, e-way bills, etc., which are the documents prescribed for the purchase under the provisions of the CGST Act, 2017. The purchases made were duly reflected on the Form GSTR-3B, Form GSTR-2A, and Form GSTR-2B, respectively.

One day, it came to the notice of the assessee that the respondent/department had blocked the ITC in the exercise of power under Rule 86A of the CGST Rules to the tune of Rs. 97,17,290 on the purchases made from M/s. Anmol Enterprise.

The assessee came to know about the blocking of the ITC through e-mail and SMS on 28.07.2021. Upon receipt of an e-mail and SMS, the assessee checked up with the GST portal wherein it was displayed that the ITC had been blocked by the department without assigning any reasons.

The assessee inquired with the department on what basis the ITC was blocked, but there was no response at the end of the department.

The court observed that the order blocking the ITC was bereft of any reasons, and there was no question of any reflection of the authority passing the order on being satisfied about the necessity of passing it. When the first requirement of Rule 86A of the CGST Rules is “having reasons to believe” and it has manifestly not been followed, the impugned order would have to be treated as erroneous in law. The second requirement regarding the recording of reasons in writing is also followed in breach. In such circumstances, it can be said that the case on hand is one of an arbitrary exercise of power under Rule 86A of the CGST Rules.

“The respondents are at liberty to pass a fresh order under Rule 86A of the Central Goods and Service Tax Rules, 2017 in accordance with law,” the court said while quashing the order blocking the ITC of the assessee.

(ii) AAR GST on Rent free accommodation provided by partner to partnership firm is liable for GST

            (Applicant – Shanmuga Durai)

AAR has ruled that GST is liable to be paid in respect of properties of a Partner rented to a partnership firm, even if it is free of rent, to carry out the business of the firm, since the activity is in furtherance of business and amounts to supply under Section 7 read with Schedule 1 of the CGST Act, 2017.

The Applicant filed an application before the Authority for Advance Ruling (AAR), seeking an advance ruling on whether GST liability arose in respect to the property of the Applicant used by the partnership firm, in which he was a partner, to carry out the business of the firm free of rent.

The Applicant stated before the AAR that the activity of letting out his own property to the partnership firm, wherein he was a Managing Partner and held 2/3rd of the shares, was not in furtherance of business so as to attract GST.

The AAR observed that as per Section 2(17) of the CGST Act, the term ‘business’ includes any trade, whether or not it is carried for a pecuniary benefit. The AAR added that in order to qualify any service as being carried out in the course of business it should be provided with the intention of deriving economic benefits. The AAR ruled that if the economic benefit accrued directly or indirectly, then the same would be treated as provision of service against consideration under the GST law.

(iii) AAR on GST on reimbursement received of actual Stipend amount from Industry partner
(Applicant – Team Lease Education Foundation)

TLEF is pure agent of Industry Partner to the extent of reimbursement of the actual amount Stipend incurred by it and thereby said reimbursement amount is not leviable to GST.

TLEF is not pure agent of Industry partner for Insurance premium amount , as TLEF does not satisfy clause (d) to the explanation of Rule 33 CGST Rules. Thereby, insurance amount reflected its invoices, shall not be deducted from arriving at taxable value and thereby leviable to GST.

(iv) AAR On 12% GST Payable on supply of EPABX system for Railways

(Applicant – Intellicon Private Limited)

We find that the EPABX system comes into existence by assembly and connection of various goods/components, wherein transfer of property of such goods is involved in the execution of said contracts. We note that EPABX system once installed cannot be taken to market in as such condition. It would be required to be dismantled and disassembled in parts and components. In the process of dismantling, some parts of the EPABX system such as cables, connectors may even be damaged/ may not be usable again. We, thereby, hold that an installed and commissioned EAPBX system becomes an immovable property and thereby its supply with installation and commissioning is Works Contract Service supply.

The subject supply pertains to Railways as it is for supply in railway office. As per Section 2(3 l)(d) Railways Act, 1989 , railway includes all offices and any other works constructed for the purpose of, or in connection with, railway. The subject supplies of EPABX system for Railways is covered at entry No. 3 (v) of Notification No. 11/2017-CT (R) dated 28-6-17, as amended, and liable to 12% GST.


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.

(Author is a well known Chartered Accountant practicing at Ahmedabad)

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