Goods and Services Tax

As part of its advocacy on GST matters, the Forum made a submission summarising recommendations for effective resolution to the request for state-wise data by GST authorities at the time of GST audits.

In the 47th Meeting of the GST Council held in June this year, the Group of Ministers (GoM) on Rate Rationalisation (led by Mr. Basavaraj Bommai, Chief Minister of Karnataka) had submitted an interim report with its recommendations. Ahead of the next meeting of the GST Council which is likely to be held by the end of September, the Tax Forum has made a representation to the GoM on behalf of the industry summarising the recommendations for rationalising GST rates across sectors.

As part of its advocacy on GST matters, the Forum made a submission summarising recommendations for effective resolution to the request for state-wise data by GST authorities at the time of GST audits.

In the 47th Meeting of the GST Council held in June this year, the Group of Ministers (GoM) on Rate Rationalisation (led by Mr. Basavaraj Bommai, Chief Minister of Karnataka) had submitted an interim report with its recommendations. Ahead of the next meeting of the GST Council which is likely to be held by the end of September, the Tax Forum has made a representation to the GoM on behalf of the industry summarising the recommendations for rationalising GST rates across sectors.

Pursuant to the recommendations made in the 47th Meeting of the GST Council held last month, the GST Policy Wing of Central Board of Indirect Taxes & Customs has released a Concept Paper detailing the changes, including a draft Form GSTR-3B and explanatory instructions thereto, seeking comments and suggestions from the industry to finalise the same. The proposed changes aim to incorporate long-standing industry requests in view of challenges faced in undertaking compliances. A copy of the Concept Paper can be accessed here.

The industry has expressed several concerns emerging from recent GSTIN system updates, which have been impacting businesses operations for multinational companies on the ground. In continuation of our advocacy efforts on GST matters, the Forum has collated these concerns and made a representation on behalf of the industry to the GST Network (GSTN). Our representation includes issues emerging from the 2-Factor authentication enabled for e-waybill and e-invoice system, AP automation with IRP for GSTR 2B reconciliation, and operational issues faced by DTA suppliers for endorsement of invoices issued on SEZ units/developers on the GSTIN.
In May 2022, the GST Council constituted a Group of Ministers (GoM) on casinos, racecourses, and online gaming to oversee the taxation of these supplies. At the 47th meeting of the GST Council last month, the GoM was granted additional time till July 15, 2022 to submit its final report and recommendations. In continuation of our advocacy efforts on GST matters, and in view of the GoM meeting on July 12, 2022, the Forum made a representation to the GoM on behalf of players from the online gaming industry seeking clarity on applicability of GST where online gaming is only a part of the main service and has no separate value.
The CBIC vide Circular dated September 20, 2021 had clarified the scope of ‘intermediary’ under the IGST Act, and the requirements to be fulfilled by intermediary services. However, the industry continues to face challenges (including delay in issuance of refunds, or demand being raised on export of services despite not meeting requirements of intermediary services) since several jurisdictions are yet to give due cognizance to the clarifications issued. In this regard, further to the Forum’s meeting with the GST policy wing on May 26, 2022, the Forum is collating details of such continued challenges, in order to take them up formally with the authorities and advocate for their resolution.
The GST council is expected to meet towards the end of this month. USISPF’s tax forum has done multiple consultations with authorities at the central and state level. Our discussions focused largely on the legislative and procedural issues under the GST law and also included rate rationalisation requests. As a final push from our end we have shared a detailed representation capturing suggestions across sectors with the GST authorities.
Further to feedback received from our member companies, forum has requested an urgent consideration for extension of GST compliance timelines pertaining to filing of Form GSTR 9 and 9C for the FY 2020-21 by December 31, 2021 and levy of GST on ECO for restaurant services effective January 1, 2022 with CBIC. We look forward to a positive consideration of the same.
In its 45th meeting held on September 17, 2021, the GST Council discussed the need to undertake GST rate rationalization including correction of inverted duty structure with an objective to simplify the rate structure, to reduce classification related disputes and enhance GST revenues. Forum will soon submit a detailed representation for consideration of the GOM on GST rate rationalisation.
Central board of Indirect Taxes and Customs has issued clarification w.r.t. applicability of Dynamic Quick Response code on B2C. You would recall our consistent efforts to request CBIC for these FAQs are we are glad these have been released now. Please refer to the clarifications here . We understand the implementation challenges from July 1 2021 given that the clarifications have just been issued and accordingly, we have requested CBIC to consider deferring the date of implementation for a few more months.

The GST council will be holding its next meeting on May 28th 2021. Basis the feedback received from our members forum submitted a detailed recommendation on the legislative and procedural changes which are required under the GST Law mostly focus on the COVID relief measures.

The IT-ITeS industry has been grappling with challenges on the concept of ‘intermediary services’ and being exposed to demand of GST at 18% on exports, even though the billing for its activities are made to overseas customers for which foreign exchange is received as well.  Forum has been diligently pursuing this matter with the Ministry of Finance, the GST Law Committee, the GST Council Secretariat and the Board (CBIC) and have made multiple requests earlier. However, the industry is still awaiting a concrete resolution on this issue around “intermediary”. We have now submitted a request for issuance of revised Circular on the classification of Information Technology enabled Services as ‘intermediary services’ as recommended by the GST council in 37th meeting. 

Recently, CBIC had issued clarifications in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance of Notification No. 14/2020- C.T. dated March 21, 2020. Please refer to clarifications here.  On the basis of feedback received from our members, USISPF has submitted a detailed note highlighting the need for additional clarifications. To discuss the feedback and to share further suggestions to the Government forum did back to back meetings with CBIC, GST policy wing and also with the GST council secretariate. Given that guidelines were only recently and the need for additional time for companies to implement this compliance, Forum has now requested GST council secretariate and the CBIC for deferring the date of implementation.

The revised threshold of INR 50 Cr for GST e-invoicing is applicable from 1 April 2021. However, at present there is no facility online for checking e-invoicing enablement GSTIN-wise as per the new threshold. While list of GSTINs that are presently generating IRNs has been issued, the list does not contain GSTINs who are required to generate IRNs. On behalf of our members forum requested the GST council to enable to the same. 

Recently, CBIC had issued clarifications in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance of Notification No. 14/2020- C.T. dated March 21, 2020. Please refer to clarifications (here). On the basis of feedback received from our members, USISPF has submitted a detailed note highlighting the need for additional clarifications. To discuss the feedback and to share further suggestions to the Government forum did back-to-back meetings with CBIC, the GST policy wing, and also with the GST council secretariat. Post these meetings Forum submitted further details as required by the officials.

The Indian Finance Minister presented the Union Budget 2021 on February 1 2021. Key tax announcements made in the Budget which include some clarifications with respect to the equalization levy or the digital service tax and various other procedural changes. Most of the tax proposals will be applicable from April 1, 2021 unless otherwise specified. Please access the updates (here) and (here). On the basis of feedback received from our members, USISPF shared detailed submission as a post budget feedback to the Government on tax amendments.

Last week CBIC had issued clarifications in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance of Notification No. 14/2020- C.T. dated March 21, 2020. Please refer to clarifications here. On the basis of feedback received from our members, USISPF has submitted a detailed note highlighting the need for additional clarifications.

GST Council Secretariat has taken a progressive step of constitution of the Committee of Officers for Monitoring of Businesses Run through Online Platform for Tax Compliance. E-commerce sector is a power ally of the Government and we look forward to positive progressive steps being made in ensuring data availability vide compliances undertaken by us under the GST laws. With regards to the same, Forum has shared detailed submission on the issues being faced by the Sector.

The manner of generation of e-waybill for e-invoices is being updated from 01 January 2021 onwards (e-waybill to be generated only through the e-invoice portal by the seller). The change involves significant efforts both for the seller as well as the transporters from a technology standpoint. On behalf of the industry, Forum has requested that this requirement be either removed given the objective of replacing e-waybill with e-invoice or deferring the date of implementation to 01 April 2021 thereby providing much needed time for the industry to make necessary system changes and end to end testing.

Basis the inputs received from our members, forum has submitted detailed GST legislative and procedural issues across sectors with the CBIC and will soon engage with the concerned officials to get their views.

The dynamic QR code in case of B2C supplies is currently proposed to be implemented from December 1, 2020.  There are some prevailing concerns and ambiguities which our members are apprehensive about and basis the same we have submitted a detailed note with the CBIC and also held a closed door meeting with CBIC in relation to this. 

Owing the impact of COVID-19 which has resulted in business disruption and ability of work force to perform their tasks as well as difficulty for professionals in accessing data and interacting with the relevant stakeholders, USISPF has on behalf of its members requested CBIC for further relaxations on the compliance deadlines approaching by September 2020.

On August 5 forum discussed select issues around challenges/ issues being faced in obtaining endorsements for the purpose of GST refunds with the GST council secretariat. Further to the discussion we submitted a detailed note highlighting the need to bring our urgent clarifications in light of August 30 deadline. 

Post our interactive session with Mr Yogendra Garg, Principal Commissioner, Central Board of Indirect Taxes & Customs and in continuation to our GST advocacy efforts USISPF shared key recommendations across sectors for consideration at the GST policy meeting to be held on June 12, 2020. These recommendations were shared with the GST policy wing, Central Board of Indirect Taxes & Customs and GST council. Some of the key reforms are with regards:

  • Representation on GST rates rationalization on digital content, author royalties and home delivery kitchen etc
  • Revenue neutral recommendations to provide more liquidity to businesses by unblocking working capital locked in accumulated in GST input tax credits
  • Representation on operational issues faced by DTA Suppliers for endorsement of invoices in relation to supplies made to SEZ Units/ Developers
  • Representation on treatment of post-sale discounts
  • GST representation on face to face audit requirements

Government of India is planning to implement GST E-invoicing scheme voluntarily from January 2020 for companies with a specific turnover. On December 6, GSTN hosted an industry consultation to discuss the schema and address queries from the companies. USISPF along with few industry representatives shared the key suggestions towards a seamless implementation of the scheme. 

Government of India has begun a comprehensive review of goods and services tax (GST) — including a possible resetting of rates along with a scrutiny of the slabs — to tone up collections and plug leakages. The task has been assigned to a 12-member committee of state and central government officials to “augment GST collection and administration”. On behalf of our member companies Forum has submitted detailed recommendations with the GST council.

USISPF on behalf of its members shared and discussed industry issues with the CBIC officials. The recent E-invoicing recommendations of the Forum, GST issues for the E-commerce sector, classification of testing services and issues around the rolling stock industry were some top issues discussed.

Forum submitted detailed recommendations on behalf of our members on the draft consultation paper and template released by GSTN. Government of India is looking at implementing the electronic invoicing under the Goods and Services Tax w.e.f January 2020. As a part of the next steps, GSTN had released a consultation paper and a draft template for the E-invoicing system for comments. – GST

In what could radically transform the indirect tax administration and compliance system and how businesses are conducted in India, we understand that the Government of India is looking at the possibility of introducing electronic invoicing under the Goods and Services Tax. Pursuant to this business will likely have to issue invoices, or bills, directly via the GST Network. The forum has submitted a detailed note sharing severe concerns on this proposal. We have highlighted to the legislative and policy committee that a proposal like this could pose a deterrent threat to business and could result in signification disruption for businesses and the economy as a whole. Our request has been to defer the proposal for at least 2 years still GST as a regime is stabilized. – GST

Pursuant to the issues highlighted by our member companies, USISPF sent a submission to the GST authorities with a request to exempt the Online Information and Database Access Retrieval (‘OIDAR’) service providers from the upcoming GST return and audit obligations. We have highlighted that while the intent of the Government of India has been clear that non-resident taxable persons (providing OIDAR services) need not undertake detailed compliances as applicable for a resident taxable person, it appears that inadvertently compliances w.r.t. Annual Return and GST Audit Report have been made applicable to non-resident taxable person providing OIDAR services. – May 2019

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The dynamic QR code in case of B2C supplies is currently proposed to be implemented from December 1, 2020.  There are some prevailing concerns and ambiguities which our members are apprehensive about and basis the same we have submitted a detailed note with the CBIC and also held a closed door meeting with CBIC in relation to this. To get meeting updates and to share any further concerns, please write to @Shweta Kathuria 

Owing the impact of COVID-19 which has resulted in business disruption and ability of work force to perform their tasks as well as difficulty for professionals in accessing data and interacting with the relevant stakeholders, USISPF has on behalf of its members requested CBIC for further relaxations on the compliance deadlines approaching by September 2020.

On August 5 forum discussed select issues around challenges/ issues being faced in obtaining endorsements for the purpose of GST refunds with the GST council secretariat. Further to the discussion we submitted a detailed note highlighting the need to bring our urgent clarifications in light of August 30 deadline. 

Post our interactive session with Mr Yogendra Garg, Principal Commissioner, Central Board of Indirect Taxes & Customs and in continuation to our GST advocacy efforts USISPF shared key recommendations across sectors for consideration at the GST policy meeting to be held on June 12, 2020. These recommendations were shared with the GST policy wing, Central Board of Indirect Taxes & Customs and GST council. Some of the key reforms are with regards:

  • Representation on GST rates rationalization on digital content, author royalties and home delivery kitchen etc
  • Revenue neutral recommendations to provide more liquidity to businesses by unblocking working capital locked in accumulated in GST input tax credits
  • Representation on operational issues faced by DTA Suppliers for endorsement of invoices in relation to supplies made to SEZ Units/ Developers
  • Representation on treatment of post-sale discounts
  • GST representation on face to face audit requirements

Government of India is planning to implement GST E-invoicing scheme voluntarily from January 2020 for companies with a specific turnover. On December 6, GSTN hosted an industry consultation to discuss the schema and address queries from the companies. USISPF along with few industry representatives shared the key suggestions towards a seamless implementation of the scheme. 

Government of India has begun a comprehensive review of goods and services tax (GST) — including a possible resetting of rates along with a scrutiny of the slabs — to tone up collections and plug leakages. The task has been assigned to a 12-member committee of state and central government officials to “augment GST collection and administration”. On behalf of our member companies Forum has submitted detailed recommendations with the GST council.

USISPF on behalf of its members shared and discussed industry issues with the CBIC officials. The recent E-invoicing recommendations of the Forum, GST issues for the E-commerce sector, classification of testing services and issues around the rolling stock industry were some top issues discussed.

Forum submitted detailed recommendations on behalf of our members on the draft consultation paper and template released by GSTN. Government of India is looking at implementing the electronic invoicing under the Goods and Services Tax w.e.f January 2020. As a part of the next steps, GSTN had released a consultation paper and a draft template for the E-invoicing system for comments. – GST

In what could radically transform the indirect tax administration and compliance system and how businesses are conducted in India, we understand that the Government of India is looking at the possibility of introducing electronic invoicing under the Goods and Services Tax. Pursuant to this business will likely have to issue invoices, or bills, directly via the GST Network. The forum has submitted a detailed note sharing severe concerns on this proposal. We have highlighted to the legislative and policy committee that a proposal like this could pose a deterrent threat to business and could result in signification disruption for businesses and the economy as a whole. Our request has been to defer the proposal for at least 2 years still GST as a regime is stabilized. – GST

Pursuant to the issues highlighted by our member companies, USISPF sent a submission to the GST authorities with a request to exempt the Online Information and Database Access Retrieval (‘OIDAR’) service providers from the upcoming GST return and audit obligations. We have highlighted that while the intent of the Government of India has been clear that non-resident taxable persons (providing OIDAR services) need not undertake detailed compliances as applicable for a resident taxable person, it appears that inadvertently compliances w.r.t. Annual Return and GST Audit Report have been made applicable to non-resident taxable person providing OIDAR services. – May 2019

USISPF submission on request to exempt Online Information and Database Access Retrieval (‘OIDAR’) service providers from GST Annual and Audit report as required under Section 35(5) and Section 44 of the CGST Act, 2017 - GST

India Tax

USISPF submits feedback to the CBDT committee on profit attribution in case of a permanent establishment in India – May 2019 – Direct taxes

USISPF submits recommendations for Union Budget 2019 – June 2019 – others

The Union Budget will be presented by the newly-appointed Finance Minister Ms Nirmala Sitharaman on July 5, 2019 in first session of Parliament for the new Government that begins June 17 and continues till July 26, 2019. USISPF has submitted our key asks for Budget 2019 across industries as our Pre-budget memorandum. Focus of our recommendations this year is:

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