By Vipul Khandhar, Chartered Accountant
- GSTN enhances GST Registration Application user interface:
User Interface (UI) with respect to the address fields in the Registration Application GST REG-01 has been enhanced as follows:-
- Incorporation of a map tile along with a drag and drop facility of address pinhead on to the exact location of the applicant’s address. Once selected, the details will automatically fill in the various address input fields given in the application.
- Address fields have been linked so as to auto- fill other macro level address entry fields based on the entry in one of such fields particularly PIN Codes.
- The user can also directly fill-up the address input fields which are now aided with suggestive address input dropdowns from which the user can select the appropriate/relevant address field(s).
- The address fields have been segregated appropriately to reduce confusions while entering the relevant inputs under various address heads. Based on the address entries given by the user, the Latitude/ Longitude of the address will get auto populated which is non-editable
- How to check if you are eligible for E-Invoice:
As per Notification Number 01/2022 – Central Tax dated 24th February 2022, E-Invoicing is mandatory for taxpayers with an annual turnover of more than Rs.20 crores from 1st April 2022.
Steps to check the eligibility for e-Invoicing:
- Go to this link https://einvoice1.gst.gov.in
- Navigate through Menu to Search –> e-Invoice status of Taxpayer
- Enter your GST Number and Captcha
- Click on Go and check the status Source: E-Invoice Portal
3. Delhi Govt. issued instructions for issuance of SCNs in time bound manner:
The Department of Trade & Taxes, Government of N.C.T. of Delhi issued instructions vide F.3(409)/GST/Policy/2021/1054-1058 dated March 04, 2022 regarding Issuance of Show Cause Notices (“SCNs”) in time bound manner.
The last date for filing the Annual Returns for the FYs of 2017-18, 2018-19 & 2019-20 is already over as per details below:-
|Last date to file Annual Return
|05th & 7th February, 2020 (Notification no. 06/2020- Central Tax dated 03.02.2020)
|31 December, 2020 (Notification no. 80/2020-Central Tax dated 28.10.2020)
|31 March, 2021 (Notification no. 04/2021- Central Tax) dated 28.02.2021
Section 73 of DGST Act, 2017 provides that the adjudication order will be issued within three years from the due date of filing of annual return for the year to which the discrepancy is noticed. The section also provides that the show cause notices is required to be issued at least three months prior to the time limit.
As per sub-section (2) & sub-section (10) of the Section 74 of the Delhi Goods & Services Act, 2017;
(2) The proper officer shall issue the notice under sub-section (1) at least six months prior to the time limit specified in sub-section (10) for issuance of order.
(10) The proper officer shall issue the order under sub-section (9) within a period of five years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilized relates to or within five years from the date of erroneous refund.
Further, Section 74 of DGST Act, 2017 provides that in cases of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized, for reasons of fraud or willful mis-statement or suppression of facts, the adjudication order will be issued within five years from the due date of filing of annual return for the year to which the discrepancy is noticed. Further, the show cause notice is required to be issued at least six months prior to the time limit.
- Delhi Govt. issued guidelines for unblocking of ITC on expiry of 1 year from the date of blocking:
The Department of Trade & Taxes, Government of N.C.T. of Delhi issued guidelines vide F.3(429)/GST/Policy/2022/1067-1072 dated March 08, 2022 regarding unblocking of ITC on expiry of one year from the date of blocking.
Following indicative steps may be taken by the Proper Officer on immediate basis.
- In case of taxpayers whose registration is active
- An immediate field visit of all such GSTINs whose credit have been blocked,
- In case of the firm is found non-existing, suspension and cancellation of registration of the firm may be carried out. Further, a show cause notice (DRC-01) should be issued proposing to create a demand by disallowing the ITC availed and thereafter demand should be created (DRC-07) in case of no or no satisfactory reply eived from the registered person, as per law.
- If considered appropriate, summary assessment under Section 64 may also be considered. Finally, the blocked ITC should be unblocked and utilized towards payment of the demand created.
- In case, during the field visit the taxpayer is found existing, then a show cause notice (DRC-01) should be issued proposing to create a demand by disallowing the ITC to the extent, fraudulently availed or for which the taxpayer is not eligible.
- Proper officer should also search whether the said firm exists in the name of some other firm (same PAN), and if such cases are found then intimation of those firms, claiming the wrong ITC, shall also be sent to the concerned jurisdictional authority (other firm).
- In case of taxpayer registration has already been cancelled
- Reason of cancellation should be ascertained.
- In case the taxpayer was cancelled for being non-existing/non-functioning, then the ITC availed should be disallowed and blocked ITC be utilized for demand.
In case the taxpayer was cancelled for the reasons other than the reason of non-existing/non-functioning, then the ITC, to the extent it is believed to be availed fraudulently/ineligibly, should be disallowed and demand (DRC-07) should be created and finally the blocked ITC should be unblocked and utilized towards payment of the demand created through DRC 07.
- CBIC amended circular on ‘Proper officer u/s 73 and 74 of the CGST Act, 2017 and under the IGST Act, 2017′: pertain DGGSTI officer jurisdiction for adjudication:
The CBIC issued Circular No.169/01/2022-GST dated March 12, 2022 regarding the amendment to Circular No. 31/05/2018-GST, dated February 09, 2018 on ‘Proper officer under sections 73 and 74 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) and under the Integrated Goods and Services Tax Act, 2017 (“the IGST Act”)‘.
“6. The Central Tax officers of Audit Commissionerates and Directorate General of Goods and Services Tax Intelligence (hereinafter referred to as “DGGI”) shall exercise the powers only to issue show cause notices. A show cause notice issued by them shall be adjudicated by the competent Central Tax officer of the executive Commissionerate in whose jurisdiction the noticee is registered when such cases pertain to jurisdiction of one executive Commissionerate of Central Tax only.
7.1 In respect of show cause notices issued by officers of DGGI, there may be cases where the principal place of business of noticees fall under the jurisdiction of multiple Central Tax Commissionerates or where multiple show cause notices are issued on the same issue to different noticees, including the persons having the same PAN but different GSTINs, having principal place of business falling under jurisdiction of multiple Central Tax Commissionerates. For the purpose of adjudication of such show cause notices, Additional/Joint Commissioners of Central Tax of specified Commissionerates have been empowered with All India jurisdiction vide Notification No. 02/2022-Central Tax dated March 11, 2022. Such show cause notices may be adjudicated, irrespective of the amount involved in the show cause notice(s), by one of the Additional/Joint Commissioners of Central Tax empowered with All India jurisdiction vide Notification No. 02/2022-Central Tax dated March 11, 2022. Principal Commissioners/ Commissioners of the Central Tax Commissionerates specified in the said notification will allocate charge of Adjudication (DGGI cases) to one of the Additional Commissioners/ Joint Commissioners posted in their Commissionerates. Where the location of principal place of business of the noticee, having the highest amount of demand of tax in the said show cause notice(s), falls under the jurisdiction of a Central Tax Zone mentioned in column 2 of the table below, the show cause notice(s) may be adjudicated by the Additional Commissioner/ Joint Commissioner of Central Tax, holding the charge of Adjudication (DGGI cases), of the Central Tax Commissionerate mentioned in column 3 of the said table corresponding to the said Central Tax Zone. Such show cause notice(s) may, accordingly, be made answerable by the officers of DGGI to the concerned Additional/ Joint Commissioners of Central Tax”.
The CBIC vide Notification No. 02/2022-Central Tax dated March 11, 2022 has issued amendments in NN 2/2017, in order to notify the powers of Additional Commissioner or Joint Commissioner of Central Tax for passing an order or decision in respect of notices issued by the officers of Directorate General of Goods and Services Tax Intelligence (“DGGSTI”) in a following manner:
New Clause 3A has been inserted in NN 2/2017, which states that the Additional Commissioners or the Joint Commissioners of Central Tax, subordinate to the Principal Commissioners of Central Tax or the Commissioners of Central Tax, are vested with the powers to adjudicate the notice has been issued by the DGGSTI.
- Extension In last date of submitting applications for scrip-based FTP schemes:
The DGFT, vide Notification No. 58/2015-2020 dated March 7, 2022 has amended Para 3.04A(a) and Para 3.13A of the FTP, in order to further extend the last date of submitting applications for script-based schemes under MEIS (for exports made during April 1, 2020 to December 31, 2020), and 2% additional ad hoc incentive (for exports made during January 1, 2020 to March 31, 2020), to April 30, 2022 and for ROSCTL and ROSL to March 15, 2022.
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 Taxation matters at Ahmedabad)