The DGFT has issued Notification No.33/2015-2020 dated 16 September, 2022 permitting invoicing, payment and settlement of exports and imports in INR to sync with the RBI Circular dated 11 July 2022. This notification has been made effective immediately.
Further, the settlement of trade transactions is also permitted through Special Rupee Vostro Account in India in terms of the prescribed procedure under the relevant regulations of Foreign Exchange Management (Deposit) Regulations, 2016.
The Applicant had sought an advance ruling before the Karnataka AAR to ascertain whether ITC would be available on vouchers and subscription packages procured from third party vendors that are made available to the eligible customers, participating in the loyalty program against the loyalty points earned by such customers.
The Applicant contended that the procurement of the vouchers and the subscription packages on payment of the GST from third party vendors are exclusively for the purpose of business as an e-commerce platform leading to increase in earning commission. The Applicant had further submitted that the vouchers and subscription packages are classified as a services and not goods.
The AAR while referring the definition of voucher u/s. 2(118) of the CGST Act, observed that the subscription packages procured is also voucher as it plays an obligation on the potential supplier to accept it as consideration for supply of goods or services to the customer. It was further observed that that the vouchers are a movable property capable of being transmitted electronically or supplied physically, and thus qualify as goods.
The AAR further observed that the participation of a customer in the loyalty program will be dependent on meeting the pre-defined eligibility criteria plus by agreeing to the terms and conditions associated with the program. It was also observed that the Applicant recovers the full amount from the customer and gives the loyalty points free of cost, and the said loyalty points do not have any monetary value and are non-transferable and cannot be converted to cash. Hence, it implies that the vouchers are issued free of cost to the customers. In view of the above, the AAR held that the Applicant is not eligible to avail the ITC on the vouchers in terms of section 17(5)(h) of the CGST Act.
Myntra Designs Private Limited [KAR ADRG 33/2022 dated 14 September 2022]
CBIC vide Notification No. 79/2022-Customs (N.T.) dated 15 September 2022 has amended the Electronic Duty Credit Ledger Regulations, 2021 which specifies the manner of issuance of duty credit. Pursuant to the amendment, the validity of e-scrip has been extended to 2 years from the date of its creation in the ledger.
The Goods and Services Tax Network (‘GSTN’) has issued an update on new functionalities made available for taxpayers on GST Portal in the month of August 2022. These functionalities pertain to different modules such as Registration, Returns, Advance Ruling, Payment, Refund and other miscellaneous topics. As per the update the follows changes have been made;
1. Registration
1.1. Enabling CORE Amendment Link for Taxpayers who fail To Update Bank account
2.Returns
2.1. Changes implemented in Form GSTR-3B
2.2. Late fee waiver up to 28th July, 2022, for delayed filing of return in Form GSTR-4 (Annual) for the FY 2021-22
2.3. Generation of GSTR-11 based on GSTR-1 / 5 for UIN holders
2.4. HSN based validation implemented in Form GSTR-9
2.5. Changes in HSN length validation in Form GSTR-1
3. Refund
3.1. Filing for Refund in Form RFD-01 for exports without payment of tax
4. Front Office
4.1. Updation of Statistics on GST Portal
The National Informatics Centre (NIC) had earlier released an update on the generation of E-Way Bills for the movement of gold, gold jewellery, and precious stones. Accordingly, the ‘EWB for Gold’ option has been currently removed from the E-Way Bill portal. Consequently, the E-Way bill for Gold option will be accessible once notified.
In pursuance of the Government recommendations, a facility for the generation of E-Way Bills for the transportation of gold has been incorporated to the E-Way Bill portal. The National Informatics Centre ('NIC') has published an update dated 12 September 2022, apprising the details of the E-Way Bill for gold. E-Waybill for Gold will be mandatory when all the items belong to HSN Chapter 71 only. Moreover, if other items which do not belong to HSN Chapter 71 exists along with HSN Chapter 71, then it will be treated like a normal E-Way Bill and the details of Part-B shall be required. If the respective state has notified the requirement for the generation of an E-Way Bill in which taxpayer is registered, the taxpayer should review the notices and exemptions issued by their respective states. The E-Way Bill for gold consists primarily of two parts, as follows:
Part-A of E-way Bill for gold
Part-B of E-way Bill for gold
We are glad to bring you the 24th Edition of our ‘Vision 360’ Newsletter in association with TIOL. In this edition, we have covered the key judicial and legislative developments in Direct, Indirect Tax other regulatory areas in the month of August 2022. Following are some key highlights of this Newsletter:
We hope that reading of the newsletter would bring an enriching experience to you! Your valuable feedback is always welcome at consult@gstlegal.co.in or updates@gstlegal.co.in
The CBIC vide Circular No.180/12/2022-GST dated 09 September 2022 has issued guidelines for filing/revising TRAN-1/TRAN-2 in terms of order passed by Hon’ble Supreme Court in the case of Union of India vs. Filco Trade Centre Private Limited.
The Apex Court on 22 July 2022 vide the landmark judgment had directed re-opening of GSTN portal for filing Form TRAN-1 and TRAN-2 for a period of 2 months. Further, the Apex Court also directed the GST Council to issue appropriate guidelines in scrutinizing the claims. Subsequently in Miscellaneous Application No. 1545-1546/2022, the Apex Court vide order dated 02 September 2022 has extended the time for opening the GST Common portal for further period of 4 weeks i.e. from 01 October 2022 to 30 November 2022.
In pursuance to the aforementioned order, the CBIC vide the captioned Circular had issued various guidelines for filing TRAN-1/TRAN-2 or revising earlier filed TRAN-1/TRAN-2 as tabulated hereunder:
Sr. No. |
Guidelines |
1 |
· The Applicant may file declaration in FORM GST TRAN-1/TRAN-2 or revise earlier filed TRAN-1/TRAN-2, which is duly signed or verified through electronic verification code on the common portal. · In cases where the Applicant is filing a revised TRAN-1/TRAN-2, the Applicant can download the TRAN-1/TRAN-2 furnished earlier by him.
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2 |
· The Applicant also needs to upload the pdf copy of a declaration in the format as attached in Annexure ‘A’ of the captioned circular; · The Applicant claiming credit in table 7A of FORM GST TRAN-1 on the basis of Credit Transfer Document (CTD) also needs to upload the pdf copy of TRANS-3, containing the details in terms of the Notification No. 21/2017- CE (NT) dated 30.06.2017.
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3 |
· The Applicant cannot claim transitional credit filed in table 5(b) & 5(c) of FORM GST TRAN-1 in respect of such C-Forms, F-Forms and H/I-Forms which have been issued after the due date prescribed for submitting the declaration in FORM GST TRAN-1 i.e. after 27.12.2017.
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4 |
· While filing a claim in FORM GST TRAN-2, the Applicant shall file the entire claim in one consolidated FORM GST TRAN-2, instead of filing the claim tax period wise, as referred to in rule 117(4)(b)(iii) of the GST Rules; · In such cases, the Applicant shall mention the last month of the consolidated period in the column ‘Tax Period’ for which the claim is being made.
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5 |
· The Applicant shall download a copy of the TRAN-1/TRAN-2 filed on the common portal and submit a self-certified copy of the same, along with declaration in Annexure ‘A’ and copy of TRANS-3, where ever applicable, to the jurisdictional tax officer within 7 days of filing of declaration. · The Applicant shall provide all the requisite documents/records/returns/invoices, in support of his claim of transitional credit to the concerned tax officers for verification.
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6 |
· The Applicant is allowed to modify/edit, add or delete any record in any of the table of the said forms before clicking the Submit button. Once Submit button is clicked, the form gets frozen, and no further editing of details is allowed. · Thereafter this form would then be required to be filed on the portal using File button, with Digital signature certificate (DSC) or an EVC.
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7 |
· It is further clarified that those registered persons, who had successfully filed TRAN-1/TRAN-2 earlier, and who do not require to make any revision in the same, are not required to file/ revise TRAN-1/TRAN-2 during this period. · In cases where the credit availed by the Applicant on the basis of FORM GST TRAN-1/TRAN-2 filed earlier, has either wholly or partly been rejected by the proper officer, the appropriate remedy in such cases is to prefer an appeal against the said order or to pursue alternative remedies available as per law.
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8 |
· The declaration in FORM GST TRAN-1/TRAN-2 filed/revised by the Applicant will be subjected to necessary verification by the concerned tax officers. · After the verification of the claim, the jurisdictional tax officer will pass an appropriate order thereon on merits after granting reasonable opportunity of being heard to the Applicant. · Thereafter the transitional credit allowed as per the order passed by the jurisdictional tax officer will be reflected in the Electronic Credit Ledger of the Applicant on the common portal.
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The CBIC vide the captioned Circular also clarified that, once the Applicant files TRAN-1/TRAN-2 or revises the said form filed earlier, no further opportunity will be given to the Applicant to again file or revise the form either during this period or subsequently.
The Apex Court vide order dated 02 September 2022 has extended the time for opening GST Common Portal for a further period of 1 month. It has also been clarified that all questions of law decided by the respective High Courts concerning Section 140 of the CGST Act read with the corresponding Rule/Notification or direction are kept open
The CBIC vide instruction No. 04/2022-23 [GST – Investigation] dated 01 September 2022 has issued guidelines for initiating prosecution under the CGST Act. The Instructions inter alia provide that any person who violates the provision of section 132 of the CGST Act, may be subjected to criminal proceedings and prosecution. Following are the key highlights of the Instructions.
Sanction of prosecution
SC’s observations in RE: Radheshyam Kejriwal [(2011)3SCC 581]
Monetary limits
Authority to sanction prosecution
Procedure for sanction of prosecution
Appeal against Court order in case of inadequate punishment/acquittal
Procedure for withdrawal of prosecution
General guidelines
Publication of names of persons convicted
Monitoring of prosecution
Compounding of offence
Transitional Provisions
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