GST WEEKLY UPDATE :10/2022-23 (05.06.2022) BY CA Vipul Khandhar

-By Vipul Khandhar

1. GST Portal facilitates addition of ‘Additional Trade Name’ under Same GSTIN:

• The Goods and Services Tax Network (GSTN) has enabled the new functionality in the official portal to add “Additional Trade Name” under the same Goods and Services Tax Identification Number (GSTIN).
• With this now, it is easy to do multiple businesses under the same Legal name with a different Trade Name. Every GST return form contains a different column of both trade name and legal name that needs to be furnished. Till now, single trade name is allowed for one registration, taxpayer cannot use two different trade names for single registration.
• A taxpayer can take more than one registration in one state with same PAN if he wishes to carry two different business with two different trade names in same state.                  

2. Processing of Registration Application in Form GST –REG 01 (Haryana State):

Form GST REG-01 emphasizing on facilitating bonafide taxpayers for GST registration and at the same time weeding out bogus or fake firms being set up for fake input tax credit. Accordingly, it may be noted that :

• All applicants for registration are to be processed in accordance with provisions in Section 25 and Rules framed there under.
• The Act does not mandate physical appearance / personal statements of the applicants at the time of processing of registration. This practice shall be discouraged. In case of doubt/suspicion, physical verification of the business premises may be conducted under Rule 25.
• The list of documents to be uploaded with the application for registration are provided in FORM GST REG-01.
• Ideally, no extraneous information/documents shall be sought by the Proper Officer while processing such applications. However, in case of doubt/suspicion, the proper officer may call for information as he may deem fit but information shall be relevant to the application and frivolous / extraneous information shall not be called for.

3. CBIC allows Manual Processing of Declarations filed by Co-Noticees under SVLDRS:

• The Central Board of Indirect Taxes (CBIC) has issued the manual processing of declarations filed by the co-noticees under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS).
• As per the letter dated June 09, 2020, wherein it was, inter alia, conveyed that in cases where co-noticees’ applications are pending at Form SVLDRS-2 stage and the main noticees have paid tax dues under the scheme, DG (Systems) shall provide functionality for issuance of Form SVLDRS-4 directly from Form SVLDRS-2 stage.

• “In all such cases, there was no requirement of issuance of Form SVLDRS-3 as per proviso to rule 6(2) of SVLDRS, Rules 2019 which provides that no statement in Form SVLDRS-3 shall be issued in a case where the amount payable, as determined by the designated committee is nil and there is no appeal pending in a High Court or the Supreme Court.
• It is noted that in the absence of such functionality in the SVLDRS Module, the concerned designated committees are unable to issue Form SVLDRS-4 in otherwise eligible cases,” the instruction said.
• The Board stated that “the matter has been examined by the Board in consultation with DG (Systems) who have informed that creation of such functionality at this stage will incur an additional cost, efforts and time which would be disproportionately high. Further, the Board has noted that such cases are still being reflected as pending at Form SVLDRS-2 stage and the declarants have not been issued discharge certificate in Form SVLDRS-4.”

4. GSTR-1: GSTN adds New Rate of 6% to Composition Taxpayers in GST Portal:

The Goods and Services Tax Network (GSTN) has added the 6% tax rate in the item details section of all the tables of form GSTR-1, except HSN table 12 on the GST Portal. A new tax rate of 6% IGST or 3% CGST+ 3% SGST has been introduced on certain goods vide Notification No. 02/2022 dated 31st March 2022. The technical team was working on the GST portal to include this rate in GSTR-1. In respect to HSN table 12 of form GSTR-1, 6% tax rate shall be added shortly. Due to the delay in adding the facility on the portal, last month the GST portal has come with a temporary solution and has issued an advisory regarding the temporary measure for filing GSTR-1 by composition taxpayers.

5. Dear Taxpayer, voluntary enablement for generating e-invoice has been enabled. Please visit “https://einvoice1.gst.gov.in/”.

6. AAR & Judicial Decisions:

(i) AAR On GST not leviable on Fees collected for Training on Football, Basketball, Athletics, Cricket, Swimming, Karate, and Dance:

(Applicant – M/s Navi Mumbai Sports Association)

The Maha AAR held that GST is not leviable on Fees collected for training in respect of Football, Basketball, Athletics, Cricket, Swimming, Karate, and Dance.

The applicant is a Non-Government Sports Organization and Public Charitable Trust registered under The Societies Registration Act, 1860 and The Bombay Public Trust Act, 1950. The Association holds a valid registration under section 12AA of the Income Tax Act, 1961. An International Sports complex was constructed by the association on the land allotted to it by M/s CIDCO. The main aim and object of the Association are to encourage and foster sports, and cultural and social activities. The sports complex is equipped with various facilities for achieving its objectives, which include indoor badminton, squash, table tennis courts, gym, health club, retiring rooms, football and cricket ground, swimming pools, restaurants, conference halls, etc.

The Applicant, with a view to promoting their objectives, provides training/coaching on basic/advanced courses to members and non-members for various sports activities such as badminton, table tennis, squash, swimming, cricket, basketball, football, dance, etc, and charges fees for the same. The AAR observed that “football, basketball, athletics, cricket, swimming, and karate are sports, and “dance” would be covered under arts. However, physical fitness cannot be considered a sport, art, or culture. Further, the term “summer coaching” is a general term which cannot cover sports, arts, or culture.

AAR held that we find that training and coaching in football, basketball, athletics, cricket, swimming, karate, and dance by the applicant would be covered under Entry No. 80 of notification 12/2017-CTR dated June 28, 2017, as amended, and “physical fitness” training and “summer coaching” are not covered under the said Entry No. 80 mentioned above. Therefore, the benefit as per Entry No. 80 of notification 12/2017-CTR dated June 28, 2017, as amended will be available to the applicant only in respect of training and coaching in respect of football, basketball, athletics, cricket, swimming, karate, and dance.”

(ii) AAAR On Occupation Health Check-up Service by hospital is Health Care Service exempted under GST:

(Applicant – Baroda Medicare Private Limited)

AAR: held that supply of Occupation Health Check-up Service by the hospital to be treated as Health Care Service and exempted under GST in terms of notification for exempt services.

Fact of the case : The appellant is running 3 multispecialty hospitals under the Brand name ‘Sunshine Global Hospitals’ at Manjalpur, Vadodara and Surat. The appellant filed an application for advance ruling on whether the supply of medicines, surgical items, implants, consumables, and other allied services and items provided by the hospital through their hospital in-house pharmacy is part of the composite supply of health care treatment and thus not taxable under CGST/SGST.

It was held by AAR that this is a composite supply of in-patient healthcare service and exempted from GST. And whether the supply of Occupational Health Check-up (OHC) service by the hospital i.e. nursing staff, Doctors, Paramedical staff on hospital’s payroll, working in different corporate for providing health check-up service, ambulance facility, and allied medical services to their employees and also the camps conducted for health check-up outside the hospitals, to be treated as Health Care service and hence not taxable under CGST / SGST.

It was held that by AAR that the appellant will be liable to pay GST under “Human health and social care services”. Ads by ADVERTISEMENT Ads by Thus, aggrieved by the said ruling of AAR in respect of the second question, the appellant filed the appeal. Argument by Petitioner:

The appellant has submitted that the impugned advance ruling provides for classification of occupational health check-up under “Human Health and Social Care Services” and that services provided by the appellant merit classification under Service Code 999312 as far as occupational health check-up is concerned which is very well covered within the purview of Sr. No. 74 of exempt notification No. 12/2017-Central Tax (Rate) 28.06.2017, as amended. It further submitted that Occupational Health Check-up is not in the nature of Social Services but in the nature of Health Care Services. At one end AAR doesn’t want the services to get classified in the category of “Health Care Services” and immediately thereafter mentions that the activity merits classification under “Human Health and Social Care Services”. Advertisement The appellant has referred to the definition of “Health Care Services” given at clause (zg) of Para 2 of the said exemption notification and submitted that the entire scheme and objective of Occupational Health Check-up is medical examination of a patient. The appellant has also submitted that in order to be eligible to claim benefit of exemption, what is important is that the said Health Care Services must be supplied by a clinical establishment, an authorized medical practitioner or paramedics and to whom it should be provided, is not a condition for claiming exemption. The appellant has submitted that in the Service Tax regime, the Central Government vide notification has fully exempted the taxable service provided or to be provided by any hospital, nursing home or multi-specialty clinic referred in sub-clause (zzzzo) of clause (105) of section 65 of the Finance Act, 1994.

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.