GST WEEKLY UPDATE : 30/2021-22 (24.10.2021) By CA Vipul Khandhar

By CA Vipul Khandhar, 

1. Job work return Form ITC-04 on Inputs/Capital Goods sent to or Received from a Job Worker to be file before 25^th October for the period 1^st july to 30^th sep-2021:

The GST Taxpayers has to file Form ITC-04 in respect of inputs/capital goods sent to or received from a job worker. The ​​due date for filing Form ITC-04 in respect of inputs/capital goods sent to a job worker or received from a job worker, during the quarter from July to September 2021 is October 25, 2021. A registered manufacturer or a principal is required to file a declaration in Form GST ITC-04 in case of job work. It is filed once in every quarter in the various cases if the manufacturer sends inputs or capital goods on job work and/or receives it back or sends inputs or capital goods to another job worker or Supplies from the premises of the job worker to the customer directly.

2. GSTR-2B can viewed by the tax payer after the due date of GSTR-1 available in GST Portal till Afternoon of 14th of every month:

• The GSTN has issued the Advisory for taxpayers on Form GSTR-2B wherein it was stated that availability of ITC made available to the taxpayers in the Afternoon of 14th of every month.
• Form GSTR-2B is an auto-drafted ITC statement that is generated for every normal taxpayer on the basis of the information furnished by their suppliers in their respective GSTR-1/IFF, GSTR-5 (non-resident taxable person), and GSTR-6 (input service distributor). “This statement indicates availability and non-availability of input tax credit to the taxpayer against each document filed by their suppliers and is made available to the taxpayers in the afternoon of 14th of every month,” the advisory said. GSTR-2B is an auto-drafted ITC statement that is generated for every normal taxpayer on the basis of the information furnished by his suppliers in their respective GSTR-1/IFF, GSTR-5 (non-resident taxable person) and GSTR-6 (input service distributor).

• The statement indicates the availability and non-availability of input tax credit to the taxpayer against each document filed by his suppliers. It may be noted that the process of GSTR-2B generation starts after the ending of IFF, GSTR-5, and GSTR-6 due date on 13th midnight, and therefore GSTR-2B can be made available to the taxpayer in the afternoon of the 14th of the month. Further, GSTR-2B is a static statement and is made available for each month on the 14th day of the succeeding month.

Input:

• All the B2B information/documents filed by suppliers in their monthly or quarterly GSTR-1, IFF and GSTR-5 filed by NRTP
• Information filed by ISD taxpayers in their GSTR-6.
• Information of ITC of IGST paid on import of goods filed in

IGST: Import details: if IGST of imports is not featuring in GSTR-2B?

• GSTR-2B also contains information on import of goods from the ICEGATE system including inward supplies of goods received from Special Economic Zones Units / This is made available from GSTR-2B of August 2020. In case any Bill of entry is not being reflected in your GSTR-2B, then you can fetch the missing records from ICEGATE by a self-service functionality provided by GSTN.
• Reverse charge ITC : It may be noted that reverse charge credit on import of services is not a part of this statement and will be continued to be entered by taxpayers in Table 4(A)(2) of FORM GSTR-3B. However, reverse charge on import of goods is auto populated from

ITC available and not-available summary shown in GSTR-3B:

• ITC Available Summary is captured in Table-3 of GSTR-2B which shows the ITC available as on the date of generation of FORM GSTR-2B. It is divided into following parts:

1. Part A captures the summary of credit that may be availed in relevant tables of FORM GSTR-3B.
2. Part B captures the summary of credit that shall be reversed in relevant table of FORM GSTR-3B.
   • ITC not-available summary is captured in Table 4 of GSTR-2B which shows the summary of ITC not available as on the date of generation of FORM GSTR-2B, under the specific scenarios detailed at Sr. 11 below. Credit reflected in this table shall not be entered in Table 4(A) of FORM GSTR-3B.
   • Credit shown as “ITC Not available” in Table 4, Part A covers the following scenarios only: –
3. Invoice or debit note for supply of goods or services or both where the recipient is not entitled to input tax credit as per the provisions of sub-section (4) of Section 16 of CGST Act, 2017.
4. Invoice or debit note where the Supplier (GSTIN) and place of supply are in the same State while recipient is in another

However, there may be other scenarios for which Input Tax Credit may not be available to the taxpayers as per other legal provisions. Taxpayers are advised to exercise caution and self-assess & reverse such credit in their FORM GSTR-3B.

Cut off date:

• For monthly GSTR-1 filers, any GSTR-1 filed between the due date of furnishing for previous month (M-1) to the due date of furnishing of GSTR-1 for the current month (M). For example, GSTR-2B generated for the month of Jan, 2021 contains the details of all the documents filed by suppliers in their monthly GSTR-1 from 00:00 hours on 12^th Jan, 2020 to 23:59 hours on 11^th Feb
  • For quarterly GSTR-1/IFF, GSTR-5 and 6 filers, any IFF/GSTR-1/5 and GSTR-6 filed between the due date for previous month (M-1) to the due date of furnishing for the current month (M). For example, GSTR-2B generated for the month of Jan, 2021 contains the details of all the documents filed by suppliers in their quarterly GSTR-1/IFF, GSTR-5 and 6 from 00:00 hours on 14^th Jan, 2021 to 23:59 hours on 13^th Feb
  • The documents furnished by the supplier in any GSTR-1/IFF, GSTR-5 and 6 would reflect in the next open GSTR-2B of the recipient irrespective of the date of issuance of the concerned For example, if a supplier furnishes a document INV-1 dt. 15.05.2020 in the FORM GSTR-1 for the month of July, 2020 filed on 11^th August 2020, the details of INV-1, dt. 15.05.2020 will get reflected in GSTR-2B of July 2020 (generated on 12^th August 2020) and not in the GSTR-2B of May, 2020.

Precaution while availing ITC:

• Taxpayers are advised to ensure that the data generated in GSTR-2B is reconciled with their own records and books of Taxpayers shall ensure that

1. No credit shall be availed twice for any document under any
2. Credit shall be reversed as per GST Act and Rules in their FORM GSTR-3B.

• Tax on reverse charge basis shall be

3. Recent AAR & Judicial Decisions:

(i) AAR On GST on land after developing by erecting civil structure or a building or a complex:

(Applicant – TIF Integrated Industrial Parks PVT Ltd)

If the applicant sells the land after developing by way of erecting a civil structure or a building or a complex then such supply is liable to tax under CGST/SGST Acts. However if land is sold without any development involving any civil structure or building or complex such supply falls under paragraph 5 of schedule III to Section 7(2) of CGST Act, 2017 and hence is exempt from tax.

If the applicant executes works contracts involving transfer of property in goods for a consideration under an agreement of contract such consideration will be liable to tax. However if these elements are missing in execution of a construction it shall not be liable to tax.

(ii) Gujarat High court Decision Regarding Attachment of Personal Property of Director for realisation of Sales Tax Dues is Illegal:

(Applicant – Manharbhai virdiya a director of patel rolling mills Pvt ltd.)

The Gujarat High Court quashed the attachment of personal property of the Director for realization of Sales Tax Dues as it is illegal and bad in law. The petitioner, Manharlal Hirajibhai Virdiya is a director of the Patel Rolling Mills Pvt. Ltd. The said Company was inter alia in the business of rolling steel bars. The Respondent had initiated proceedings against the said Company in respect of the purported outstanding dues of sales tax and a demand of Rs.2.37 crores was raised against the said Company for the outstanding dues of sales tax in respect of the years 1998-99 to 2000-01.

The property is the personal property of the petitioner and respondents have on a premise that the said Company is a partnership firm and the petitioner is a partner therein attached the property belonging to the petitioner. Court has has allowed the said petition and quashed and set aside the impugned notification by holding that the auction of the residential property in question as illegal and bad in law and restrained the respondents from attaching or selling any private property of the Managing Director of the Company for realization of the aforesaid dues.

(iii) AAR On Advance ruling cannot be obtained in respect of past & completed supply:

(Applicant – USV Private Limited)

AAR while rejecting the application filed by the applicant held that the only goods supplier can seek GST advance ruling, not the recipient.

The AAR pointed out that as per section 95 (a) there are two conditions to be fulfilled for making an advance ruling application firstly, the question asked should be in relation to supply undertaken by the applicant secondly the question should be in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant.

(iv) AAR On GST on amount received by Arbitration for works executed in pre-GST period:

(Applicant – Continental Engineering Corporation)

Telangana Authority for Advance Ruling  has held that Goods and Services Tax (GST) would be payable on the amount received through Arbitration for work executed in the pre-GST period.

M/s. Continental Engineering Corporation (Applicant) had executed a works contract for M/s. Hyderabad Growth Corridor Ltd (HGCL). The work was completed in pre-GST era and the Applicant had raised certain claims under an Arbitration proceeding regarding compensation for delay in execution, payment of difference in rates and other contractual breaches. An arbitration award was passed on 09.05.2019 for Rs.169,58,22,197/- to be paid to the Applicant.

In the grounds submitted by the Applicant, they had contended that the works were completed in the Pre-GST regime and that only money was receivable after introduction of GST due to arbitration award. They have asserted that the receipt of money is not taxable under the provisions of GST laws as it doesn’t amount to supply of goods as money is excluded from the definition goods.

The Hon’ble AAR Telangana observed that as the amount received via the arbitration award would comprise a cost for the delays in performing contractual obligations, the amount shall fall within the meaning of consideration for tolerating an act or a situation arising out of the contractual obligation as given under entry 5(e) of Schedule II to the Central Goods and Services Tax Act, 2017 (“the CGST Act”). It was reiterated that the time of supply of the service of tolerance is the time when such determination takes place, which happened only by the arbitration award dated May 09, 2019. Therefore, the time of supply of this service as per Section 13 of the CGST Act is May 09, 2019. Accordingly, the amount received through Arbitration shall be taxable under the GST regime.

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 a well known Chartered Accountant practicing at Ahmedabad)