written by khatabook | June 24, 2021

Latest GST News, Information, Notifications & Announcements

With the recent changes in the national and global scenario, the government is taking steps for making the GST law, rules and regulations in line with the changing conditions. The government is making many changes to make it better for the taxpayers. So it is necessary to be well aware of the recent changes in GST.

From the beginning of July 2017, the government, with its GST council, is coming up with new changes in GST. This helps to cover the shortcomings faced in the GST laws for the conduct of business. Hence the consultants, taxpayers, and everyone related to this field should be aware of the latest GST news for better functioning.  

Latest GST Notification

The economic condition of the country makes the GST update an essential factor with the recommendation of the GST Authorities. The brief descriptions of the latest GST notifications have been tabulated as under:

Notification No

Date of Notification

Brief Description of the latest news on GST

07/2021-Central Tax

01/04/2021

Since the beginning of GST in July 2017, GST rates have been updated several times. So all the rates have been brought together, comprising all the updated changes for ease of reference. This contains all changes as of 31/03/2021.

06/2021-Central Tax

30/03/2021

The date for waiver of penalty charged under Section 125 of the CGST Act, 2017 for not following Notification No. 14/2020-Central Tax dated 21/03/2020 has been extended to up to 30th June 2021. So the government will not charge the penalty till 30th June 2021.

05/2021-Central Tax

08/03/2021

Generating e-invoicing from 01/04/2021 of B2B transactions for taxpayers having total turnover above 50 crores in any year since 2017-18

04/2021-Central Tax

28/02/2021

The due date for filing Annual Return for the financial year 2019-2020 is extended till 31/03/2021.

03/2021-Central Tax

23/02/2021

The provisions of Aadhaar Authentication as per Section 25 (6B) or (6C) will not apply to a person who is

 (a) not a citizen of India; or

(b) a Department or establishment of the Central or State Government; or

(c) a local authority; or

(d) a statutory body; or

(e) a Public Sector Undertaking; or

(f) a person applying for registration under the provisions of section 25(9) of the CGST Act, 2017.

02/2021-Central Tax

12/01/2021

The jurisdiction of the Central Tax officers changed

01/2021-Central Tax

01/01/2021

This notification means that a registered person shall not be allowed to file: 

  1. For monthly GSTR-1, if he does not file FORM GSTR-3B for the previous two months (Example- If GSTR 3B of December 2020 and January 2021 is not filed, then GSTR 1 of February 2021 cannot be filed. In other words, you can only file GSTR-1 of February if GSTR 3b of December 2020 and January 2021 is filed)
  2. For quarterly  GSTR-1, if you do not file FORM GSTR-3B for the previous tax period.
  3. Further, a registered person who falls under rule 86B to utilize the electronic credit balance of over 99% shall not be allowed to file FORM GSTR-1 or invoice furnishing facility if he fails to return in FORM GSTR-3B for the preceding tax period.

So the law makes it compulsory in the above cases to file GSTR 3b only after filing GSTR 1.

 

 

Also Read: GSTR-1 – Return Filing, Format, Eligibility & Rules

Budget 2021 Highlights

In view of the dynamic economy, every year Indian Government proposes a budget for bringing the laws in order with the changing scenario. Similarly, this year also the Union Budget of 2021-2022 has proposed few GST changes as well. So let us have a quick look over the GST updates.  

Section

Explanation

Section 7 of the CGST Act, 2017

A change applicable from the beginning of GST law has been made to include in the definition of supply. Activities or transactions involving the supply of goods or services by any person, other than an individual, to its members or constituents or vice-versa, for cash, deferred payment or other valuable consideration would fall in the definition of supply. 

Section 16(2)(aa) of the CGST Act, 2017

This new clause has been added as a condition for availing ITC. Accordingly, you can take ITC on tax invoice or debit note only if the supplier has shown such details in his FORM GSTR-1, Invoice Furnishing Facility (IFF), GSTR-2B, and the same has been informed to the recipient. 

Section 35 of the CGST Act, 2017

This section is deleted (Audit under GST of annual accounts and reconciliation statement)

Section 44 of the CGST Act, 2017

By the deletion of Section 35, the Government has made changes in this section by filing the annual return on a certification by the taxpayers and not the Chartered Accountants or Cost Accountants as in the reconciliation statement. Certain taxpayers have been exempted from this section by the Commissioner. This means CAs and Cost Accountants are not responsible, and the person who is registered is filing a return under his own certification and knowledge.

Section 50 of the CGST Act, 2017

This is one of the best changes being brought out for the issues faced by the taxpayers. Before this change, taxpayers had to pay interest on the gross amount without availing of the Input Tax Credit. However, this change means charging interest on the net cash liability, i.e. after availing ITC.

Section 74 of the CGST Act, 2017

This change separates seizure and confiscation of goods and vehicles in transit from the recovery of tax.

Section 75 of the CGST Act, 2017

Clarification has been made in this section for the term “self-assessed tax”. This term includes tax payable regarding outward supplies in GSTR 1 as per Section 37.

Section 83 of the CGST Act, 2017

This section is changed, stating that the provisional attachment will be valid till the completion of one year from the date of order passed u/s 83(1) 

Section 129 (Clause 107 of the Finance Bill) of the CGST Act, 2017

The appellant can file an appeal against an order only after paying a deposit of the disputed amount, including a penalty of 25% for detention and seizure of goods and conveyances in transit.

Section 129 (Clause 108 of the Finance Bill) of the CGST Act, 2017

There have been changes in the penalty levied relating to detention, seizure and release of goods and conveyances in transit.

  1. The penalty is 200% of the tax payable on goods.
  2. Where the owner of the goods does not come forward, the penalty will be higher of 50% of the value of goods or 200% of tax payable.

You cannot pay this penalty under bond, so it will have to be paid in cash. In case the penalty is not paid in fifteen days, then the goods can be disposed of or sold.

Section 130 of the CGST Act, 2017

This section has been separated from Section 129

Section 151 of the CGST Act, 2017

The Jurisdictional Commissioner has been given the power to collect information on any matters relating to the act.

Section 152 of the CGST Act, 2017

An opportunity of being heard has been made compulsory by this section for Section 150 & 151

Section 168 of the CGST Act, 2017

Under Section 151, the jurisdictional Commissioner has been given the power to call for information.

Schedule II of the CGST Act

This schedule has been deleted with retrospective effect.

Section 16 of the IGST Act

IGST Act has been changed :

(i)            Only if goods or services are supplied are for authorized operations to Special Economic Zone developer or Special Economic Zone unit then it is said to be zero-rated supplies

(ii)           Restriction to the zero-rated supply on payment of integrated tax to few classes of taxpayers or supplies of goods or services

(iii)          In case of export of goods with a refund, linking with the foreign exchange remittance 

Indian Budget is considered to be dynamic considering the socio-economic norms prevailing in our society. Everyone should keep an eye on the GST latest notifications, GST news and GST bill latest updates. This will ensure better transparency and make the process hassle-free.

Also Read: A Step-by-Step Guide to GST Registration Procedure in India

Judgments

Let us have a look at the latest changes in GST by a few landmark judgments.  

1. Safari retreats Private Limited vs Chief Commissioner of CGST (Orissa High Court)

Issue - Would ITC be allowed on goods or services which was used in the construction of malls against the GST payable on the rent received?

Takeaway - The High Court held that Input Tax Credit (ITC) of the goods or services used in the construction of malls that he neither used for his own account or sale, but it was his business of intending to earn from the rental incomes would be allowed. Since it was for business purposes, ITC is allowed.

2. Bai Mamubai Trust V. Suchitra (Bombay High Court)

Issue - Is GST leviable on services provided by the court receiver?

Takeaway- As per Schedule III of the CGST Act, 2017- There are few transactions that are considered to be neither supply of goods or service. One such instance that has been mentioned is of services provided by any court or tribunal. On this premise, for fees or charges paid to the Court Receiver, GST would not be levied. 

3. Amit Cotton Industries V. Principal Commissioner of Customs (Gujarat High Court)

Issue - Can Excess claim of Duty Drawback (DDB) not be a reason to withhold the refund of IGST paid on exported goods?

Takeaway - The High Court held that the applicant should immediately be entitled to the refund claim of IGST for export of goods as there was no provision, circular or instruction under the law for restricting the IGST refund in case a business claimed a higher rate of drawback.

4. Shabnam Petrofils Private Limited Vs UOI (Gujarat High Court)

Issue - Would Input tax credit of notified goods remaining unutilized on account of inverted duty structure lapse?

Takeaway - The High Court held that Input tax credit would not lapse as there was no inherent power that could empower the unutilized ITC to lapse on account of an inverted duty structure.

5. DGAP VS Nestle India Ltd (National Anti-Profiteering Authority or NAA)

Issue - Would anti-profiteering provisions be attracted if the incorrect methodology is adopted for passing on the benefit of rate reduction?

Takeaway - The decision held that the business would attract anti-profiteering provisions as the respondents had passed on the benefits at an aggregate level and not at the consumer level, which was not as per the provisions. 

6. Aravali Polyart (P.) Ltd (AAR- Uttrakhand)

Issue - Are restaurants & sweetshops operated from the same premises ‘Composite Supplies’ of restaurant services?

Takeaways - The AAR held that restaurants and sweetshops are not naturally bundled in the ordinary course of business. Anyone coming into the restaurant can avail of the dining services without having any nexus to buy from the sweetshop and vice versa. Hence, both the services are independent of each other and cannot be treated as composite supply. Further, for restaurant services, GST will be applicable, but tax credit will not be allowed. In the case of sweet shops, GST will be levied, and businesses can also claim ITC.

7. Square One Homemade Treats (AAR Kerala)

Issue-Is resale of food & bakery products a restaurant service?

Takeaway - the court held that the resale of food & bakery products could not be considered restaurant service. This is because food is not prepared, but only a facility is given to the customers for consumption in the premises which would not count as restaurant service.

8.    Royal Care Speciality Hospital Ltd. (AAR Tamil Nadu)

Issue - Would medicines, implants, etc., used in medical treatment be treated as a ‘composite supply’ of healthcare services?

Takeaway - Supplying medicines to patients will classify as a healthcare service and would be classified as a composite supply. However, healthcare services are exempt from GST, so tax will not be levied on the same.

Also Read: Advantages of GST – GST Benefits Explained With Example

Conclusion

Since its inception, there has been constant news on GST by the media. The pros and cons are brought forth and to improve the shortcomings, the government is taking necessary actions. It is because of this that the GST law is undergoing constant changes to make it more transparent and user friendly.

FAQs

How many HSN Codes are to be mentioned from 01/04/2021?

With effect from 1st April 2021, HSN Code upto 4 digits is made compulsory for turnover less than Rs. 5 crores for B2B transactions and 6 digit HSN code for turnover more than Rs. 5 crores in all transactions (B2B and B2C).

What is the new limit for the E-way bill in Rajasthan?

Rajasthan Government has raised the limit to Rs. 1 lakh for generation of E-way bill from 1st April 2021

Is E-invoicing applicable for B2C transactions?

Presently no e-invoicing is applicable for B2C transac

What is the applicability of the HSN Code?

HSN Code is mandatory for all B2B and B2C transactions from 01st April 2021.

From when is E-invoicing applicable over Rs50 crore?

From FY 2017-18, in any year, if the turnover crosses Rs.50 crore, then for B2B taxable supplies, E-invoicing is applicable from 1st April 2021

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