Goods and Services Tax

December 2022

The Central Board of Indirect Taxes & Customs has prescribed the manner of processing and sanction of IGST refunds, withheld in terms of clause (c) of sub-rule (4) of rule 96, transmitted to the jurisdictional GST authorities under sub-rule (5A) of rule 96 of the Central Goods and Service Tax Rules, 2017. The instruction dated 28 November 2022 can be accessed here.
CBIC has decided not to file a review petition against the Supreme Court ruling in the case of Mohit Minerals Private Limited wherein it was held that imposition of IGST on ocean freight is violative of GST law. The SC had also noted that recommendations of the GST Council only have a persuasive value and are not binding on the Centre and States.
The Central Board of Indirect Taxes & Customs has issued a Circular to clarify issues relating to application of formula for refund of unutilized input tax credit on account of inverted tax structure under GST. The Circular No. 181/13/2022-GST dated 10 November 2022 can be accessed here.
CBIC has issued instruction to the effect that taxpayers must use the dedicated CBIC-GST Integrated portal for making pre-deposits under section 35F of the Central Excise Act, 1944 and section 83 of the Finance Act, 1944. The instruction dated October 28, 2022 can be accessed here.
During the 47th GST Council meeting held earlier this year, the issue of uneven practices followed by the field formations regarding the issuance of recurring Show Cause Notices (SCNs) was discussed in detail. Following the same, the Council has issued an Office Memorandum clarifying that initial and recurring SCNs to be issued by same authority, and that recurring SCNs are to be issued by actual jurisdictional authorities responsible for assessment of returns of the taxpayer. The Memorandum dated October 19, 2022 can be accessed here.
The GST Implementation Committee of GST Council has extended due date of filing GSTR-3B return for the month of September 2022 by one day, from October 20, 2022 to October 21, 2022. The Notification No. 21/ 2022 – Central tax can be accessed here.
The reconstitution of GoM looking after GST System Reforms has been notified vide Office Memorandum dated September 22, 2022, which can be accessed here.

September 2022

The amendments to the CGST Act as proposed in the Union Budget 2022 have now been notified by CBIC, to be effective from October 01, 2022. Consequential amendments to the CGST Rules have also been made w.e.f. October 01, 2022. The Notification Nos. 18 to 20/2022- Central Tax all dated September 28, 2022 can be accessed here.
The Group of Ministers (GoM) on online gaming led by the Chief Minister of Meghalaya, in its meeting earlier this month decided that horse racing, online gaming and gambling would be taxed separately, instead of clubbing online gaming with gambling which had led to concerns within industry. The GoM’s final report shall be submitted after further consultations with stakeholders.
The Uttar Pradesh cabinet approved the draft Uttar Pradesh Goods and Services Tax (Amendment) Bill 2022 which shall simplify and rationalise various provisions, including filing details of return and outward supply, and relief to small tax payers using settlement scheme who fail to file tax returns.
Following the ruling of the Hon’ble Supreme Court in the case of in the case of Filco Trade Center to open the portal for filing TRAN-1 and TRAN-2, CBIC has issued guidelines detailing the procedure for such filings. The Circular No. 180/12/2022 – GST dated September 09, 2022 can be accessed here
CBIC has laid down guidelines on issuance of summons under the CGST Act, including procedure to be followed prior to issue of summons, and avoidance of summons notices calling for statutory information already filed online. The Instruction No. 03/2022-23 (GST-Investigation) dated August 17, 2022 can be accessed here.

Pursuant to the recommendations of the GST Council in its 47th meeting held on 28-29 June, CBIC issued a series of circulars in response to requests for clarifications from industry on various issues:

  • Clarifications regarding applicable GST rates and exemptions on certain services (Circular No. 177/09/2022-TRU)
  • GST applicability on liquidated damages, compensation and penalty arising out of breach of contract or other provisions of law (Circular No. 178/10/2022-GST)
  • Clarifications regarding applicable GST rates on EVs, Stones, Mangoes, Treated water, etc. (Circular No. 179/11/2022-GST)

The above Circulars issued on August 03, 2022, can be accessed here.

CBIC has notified that e-invoicing under GST will now be applicable to taxpayers having aggregate turnover exceeding INR10 crore in any preceding financial year from 2017-18 onwards. The Notification No.17/2022 – Central Tax dated August 01, 2022 can be accessed here.

July 2022

In response to a question posed in Rajya Sabha, the Minister of State for Finance Mr. Pankaj Chaudhary clarified that the ruling of the Supreme Court of India in Union of India & Anr. v M/s Mohit Minerals Pvt. Ltd. (which held that recommendations of the GST Council are non-binding on States) does not alter the constitutional mechanism of the GST Council. He stated that the State and Central Acts provide that rates, exemptions and rules etc. would be prescribed only on the recommendations of the council, and therefore are binding on the States and the Centre.

The documented response against Unstarred Question No. 203 on July 19, 2022 can be accessed here.

CBIC issued a series of notifications giving effect to the GST rate related decisions taken in the 47th Meeting of the GST council held last month. The relevant notifications No. 03/2022 to 11/2022-Central Tax (Rate) dated July 13, 2022 can be accessed here. A summary of these rate changes, effective July 18, 2022, is also available on the Tax Forum website.

Pursuant to the recommendations and decisions taken in the 47th GST Council meeting, the CBIC has given effect to the same via issue of necessary circulars and notifications (the relevant circulars can be accessed here and the Notifications No. 09/2022 to 14/2022 can be accessed here. A summary of these circulars and notifications is also available on the Tax Forum website.

In view of the recommendations of the 47th GST Council Meeting, a GoM was constituted to address necessary changes to provisions governing GST Appellate Tribunals. The GoM consists of Ministers from Haryana, Uttar Pradesh, Goa, Rajasthan, Andhra Pradesh, and Odisha. The Office Memorandum dated July 06, 2022 can be accessed here.

Pursuant to consultations with stakeholders and businesses, the CBIC is likely to release comprehensive SoP for issuing summons and notices as part of investigations under GST provisions. The aim is to streamline the investigation process, increase transparency, and prevent undue harassment of businesses.
Section 194-R, which came into effect on July 01, 2022 introduced TDS on benefits/ perquisites granted in the course of business to any resident taxpayer. While CBDT issued clarifications last month to address implementation issues arising from this levy, the industry has expressed numerous concerns from a practical and legal standpoint. In continuation of our advocacy efforts on Direct Tax matters, the Forum has collated details of such difficulties, and shall be organising a meeting with key officials from the Tax Policy and Legislation Unit of CBDT, and making a representation on behalf of the industry.
The recommendations made by the GST Council in its 47th meeting held last week were made effective via issue of official notifications by CBIC. The relevant Notifications No. 09/2022 to 14/2022 can be accessed here.
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