GST WEEKLY UPDATE : 1/2022-23 (03.04.2022) By CA Vipul Khandhar

CA Vipul Khandhar,

1. GST Major points to be taken care of w.e.f. 1st April 2022 (FY 2022-23):

• New series of Tax Invoices, Bill of Supply, Challans, Debit Notes, Credit Notes, Self Invoices, Receipt Vouchers, Payment Vouchers etc.
• Mandatory E-invoicing w.e.f. 1st April 2022, if turnover exceeds INR 20 crores in any of previous years. 3. Renewal of Letter of Undertaking (LUT), in case of exports

2. Exemption of IGST & Compensation Cess on imported goods or procured by EOU’s, STP Units, EHTP units etc., till June 30, 2022:

The CBIC vide Notification No. 18/2022-Customs dated March 31, 2022 has issued amendments in Notification No. 52/03-Customs dated March 31, 2003 which provides exemption to specified goods imported in India or procured by Export Oriented Undertaking (“EOU”) or Electronic Hardware Technology Park (“EHTP”) unit or Software Technology Park (“STP”) etc. for specified purposes in order to extended the date of exemption of Integrated Goods and Services Tax (“IGST”) and the Goods and Services Tax Compensation Cess on such goods from March 31, 2022 to June 30 2022.

3.    𝐄–𝐖𝐚𝐲 𝐁𝐢𝐥𝐥 𝐥𝐢𝐦𝐢𝐭 𝐞𝐱𝐭𝐞𝐧𝐝𝐞𝐝 𝐭𝐨 𝟐 𝐋𝐚𝐜 𝐢𝐧 𝐑𝐚𝐣𝐚𝐬𝐭𝐡𝐚𝐧 𝐰𝐞𝐟 𝟏𝐬𝐭 𝐀𝐩𝐫𝐢𝐥 𝟐𝟎𝟐𝟐:

Where the Goods movement 𝐜𝐨𝐦𝐦𝐞𝐧𝐜𝐞 𝐚𝐧𝐝 𝐭𝐞𝐫𝐦𝐢𝐧𝐚𝐭𝐞𝐬 𝐰𝐢𝐭𝐡𝐢𝐧 𝐭𝐡𝐞 𝐚𝐫𝐞𝐚 𝐨𝐟 𝐬𝐚𝐦𝐞 𝐜𝐢𝐭𝐲 without crossing the area of the city.

𝗖𝗶𝘁𝘆:- Municipal area as notified by the govt under Rajasthan municipalities Act 2009.

4. DGFT EXTENDS THE FTP FOR PERIOD OF 6 MONTHS UPTO 30.09.2022

• As expected DGFT has notified the extension of the FTP & Handbook for 6 Months i.e upto 30.09.2022
• Notification No. 64/2015-2020 Dt. 31.03.2022 is issued to notify the extension of FTP upto 30.09.2022

The Public Notice also extended time period of the Handbook of Procedures and

1. The Validity of Status Holder Certificates which was 5 Years and was extended to 31.03.2022 or whichever is later. this date has been extended to 30.06.2022 or whichever is later. (Para 3.20(a))
2. The Validity of Ad-Hoc Norms Approved by the Norms Committee was upto 3 years or upto 31.03.2022. The same has now been extended upto 30.09.2022 (Para 4.12(vi))

5. GST Updates for Brick manufacturer & Traders

The government on March 31 notified the changes as recommended by 45th GST Council Meeting that would be applicable from 1st April 2022 on

Any person who is engaged in manufacturing and trading of Brick Kilns with effect from 1.4.2022:

6. New Rule of E-Way Bill in M.P from April,15 2022, E way bill limit has been revised in M.P w.e.f. 15.04.2022:

7. AAR & Judicial Decisions:

(i) AAR On Inspection services provided in India for foreign client to certify quality of goods will not be treated as exports:

(Applicant – Telangana International Inspection Services)

The applicant was performing inspection services for its foreign client during manufacturing of equipment and packing of equipment/material in India. It would be certifying quality and quantity of goods being supplied by Indian suppliers to foreign client. It filed an application for advance ruling to determine whether services rendered for foreign companies which do not have any business place/agency in India would be considered as an export or not.

The Authority for Advance Ruling observed that recipient of services provided by the applicant would be foreign buyer of Indian goods. The applicant would be performing services in relation to goods located or under manufacture in the territory of India on behalf of the foreign buyer. As per Section 13(3) of IGST Act, 2017, the place of supply shall be the location where the services are actually performed in respect of goods. Therefore, the services provided by the applicant would not be treated as exports and liable to CGST and SGST

(ii) AAR GST on GST on Support Services in support to mining
(Applicant – Worley Services India Private Limited)

The services provided by the Applicant are not classified under SI. No. 24(ii) of heading 9986 of the Rate Notification as ‘Support services to exploration, mining or drilling of petroleum crude or natural gas or both’ under SAC 998621 and attracts GST @ 12% in terms of SI. No. 24(ii) of Rate Notification.

The services provided by the Applicant are not classified under SI No. 21 (ia) of heading 9983 of the Rate Notification as ‘Other professional, technical and business services relating to exploration, mining or drilling of petroleum crude or natural gas or both’ and attracts GST @ 12% in terms of SI. No. 21(ia) of Rate Notification.

Answer: –  In view of the discussions made above, the subject services are covered under Sr. No. 21 (ii) of Notification 11/2017 — CTR dated 28.06.2017 as amended, attracting tax rate of 18%.

(iii) AAR on Value of supply includes interest or late fee or penalty for delayed payment
(Applicant – Hyderabad Metropolitan Water Supply And Sewerage Board)

The applicant M/s. Hyderabad Metropolitan Water Supply and Sewerage Board is making payments to the contractors in equated yearly installment manner where in such equated yearly installment consists of both principal amount and interest on such delayed payment. The applicant is desirous ascertaining their liability on payment of GST on interest for delayed payment.

The clause (d) of sub section 2 of Section 15 clearly states that the value of supply shall include interest or late fee or penalty for delayed payment of any consideration for any supply. Therefore all the monies paid to the contractor by the applicant including the interest on delayed payments is liable to tax under CGST Act, 2017 Central Goods and Services Tax Act, 2017 The following Act of Parliament received the assent of the President on the 12th April, 2017, and is hereby published for general information:- An Act to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Central Government and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-eighth Year of the Re… Read More under this provision.

Interest is part of consideration as per the valuation rules discussed above. Therefore no separate classification exists.

(iv) AAR On 18% GST payable on ‘Ready to Eat’ popcorn sold in retail packages
       (Applicant – Agro Tech Foods Limited)

The Fair Trade Premium forms part of the consideration and value of taxable supply of the goods supplied and the applicant is liable to pay GST on the same rate as the rate applicable to the respective goods supplied.

The Fair Trade Premium forms part of the consideration for the goods supplied.

The component of ‘Fair Trade Premium’ cannot be treated as a gratia payment which is not liable for GST either as supply of goods or as supply of services.

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.

(The author is well known Chartered Accountant Practicing at Ahmadabad on Direct and Indirect Tax Tax)