1. Circulars or Clarifications

1.1. Amount of CGST, SGST, or IGST wrongly paid for Intra-State or Inter-State shall be Refunded within 2 years, clarifies CBIC

(Circular No. 162/18/2021-GST; Dated 25th Sep 2021)

The refund under section 77 of CGST Act! Section 19 of IGST Act, 2017 can be claimed before the expiry of two years from the date of payment of tax under the correct head, i.e. integrated tax paid in respect of subsequently held inter-State supply, or central and state tax in respect of subsequently held intra-State supply, as the case may be. However, in cases, where the taxpayer has made the payment in the correct head before the date of issuance of notification No.35/2021-Central Tax dated 24.09.2021, the refund application under section 77 of the CGST Act! section 19 of the IGST Act can be filed before the expiry of two years from the date of issuance of the said notification i.e. from 24.09.2021.

GST Compliance Calendar Oct 21 & important legal developments

1.2. Cut-off date for availing Input Tax Credit in Debit Notes

(Circular No. 160/16/2021-GST; Dated 20th Sep 2021)

The Board has clarified w.e.f. 01.01.2021, in case of debit notes, the date of issuance of debit note (not the date of underlying invoice) shall determine the relevant financial year for the purpose of section 16(4) of the CGST Act.

The availment of ITC on debit notes in respect of amended provision shall be applicable from 01.01.2021. Accordingly, for availment of ITC on or after 01.01.2021, in respect of debit notes issued either prior to or after 01.01.2021, the eligibility for availment of ITC will be governed by the amended provision of section 16(4), whereas any ITC availed prior to 01.01.2021, in respect of debit notes, shall be governed under the provisions of section 16(4), as it existed before the said amendment on 01.01.2021.

1.3. Physical Invoice need not be carried when E-Invoice has been issued

(Circular No. 160/16/2021-GST; Dated 20th Sep 2021)

The CBIC clarified that Rule 138A (1) of the CGST Rules, 2017 inter-alia, provides that the person in charge of a conveyance shall carry the invoice or bill of supply or delivery challan, as the case may be; and a copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner.

1.4. 5% GST on Services by Cloud Kitchens covered under ‘Restaurant Service’, GST Council issues Clarification on GST rate on Services

The services by cloud kitchens/central kitchens are covered under ‘restaurant service’, and attract 5% GST [without ITC]. Ice cream parlor sells already manufactured ice- cream. Such supply of ice cream by parlors would attract GST at the rate of 18%.

2. GST DEADLINES

2.1. Deadlines | Oct 21

  • GST Compliance Calendar – Oct 2021
Due Date Return/ Compliance Remarks
11 Oct 21 GSTR1 (Sep 21) Return of Outward Supplies- Monthly Return
13 Oct 21 GSTR1 (Sep 21)- IFF Return of Outward Supplies- QRMP
14 Oct 21 GSTR2B (Sep 21) Auto Drafted ITC Statement available for download
18 Oct 21 CMP 08 (July- Sep 21) Composition Return for the quarter ending Sep 21
20 Oct 21 GSTR3B (Sep 21) Last Date for Payment of Tax and Return for Normal Taxpayers (Monthly GTSR3B)
22 Oct 21 GSTR3B(July- Sep 21) Last Date for Payment of Tax and Return QRMP Taxpayers with Turnover Less Than 5 Crore having Principal Place of Business in Chhattisgarh, MP, Gujarat, Daman & Diu, Dadra & Nagar Haveli, Maharashtra, Karnataka, Goa, Lakshadweep, Kerala, Tamil Nadu, Puducherry, Andaman & Nicobar Islands, Telangana, Andhra Pradesh.
24 Oct 21 GSTR3B(July- Sep 21) Last Date for Payment of Tax and return for QRMP Taxpayers with Turnover Less Than 5 Crore having Principal Place of Business in J&K, Laddakh, HP, Punjab, Chandigarh, Uttarakhand, Haryana, Delhi, Rajashthan, UP, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, WB, Jharkhand and Odhisha
31 Oct 21 TDS Return (July- Sep 21) TDS return under Income Tax Act
  • GST Annual Return and Reconciliation Statement (GSTR9 and GSTR9C)

Due date 31st Dec 2021 for FY 20-2 1.

Taxpayer Description Aggregate Turnover Form Compliance
Normal Taxpayer Reconciliation Statement & Annual Return More than 5 Cr. GSTR 9 and 9C Compulsory
Annual Return Between 2 Cr. To 5 Cr. GSTR 9 Compulsory
Annual Return Less than 2 Cr. GSTR 9 Optional
Composition Taxpayer Annual Return NA GSTR 9A Compulsory
E Commerce Operator Annual Return NA GSTR 9B Compulsory

NOTE: Due date of Sep 21 GSTR3B return (i.e. 20 Oct 2021) is the last date to make any of the following changes pertaining to Financial year 2020-21:

  • Last date for reversal of ITC wrongly availed or claiming any missing ITC for FY 20-21,
  • Last date to issue credit note for FY 20-21,
  • Last date to make any rectification or amendments in GSTR3B or GSTR1.

3. GST PORTAL UPDATES

3.1. Advisory for Taxpayers regarding Generation of EWB where the principal supply is Supply of services.

(Advisory Dated: 16/09/2021)

In cases where along with the principal supply of service, movement of some goods is also involved, e-way bill may be generated. Such situations may arise in cases of supply of services like printing services, works contract services, catering services, pandal or shamiana services, etc. In such cases, e-way bill may be generated by entering the details of HSN code of the goods, along with SAC (Service Accounting Code) of services involved.

3.2. On demand fetching of Bill of Entry details from ICEGATE Portal

(Advisory Dated: 17/09/2021)

  • To help importers of goods, and recipients of supplies from SEZ, search Bill of Entry details, which did not auto-populate in GSTR-2A, a self-service functionality has been made available on the GST Portal that can be used to search such records in GST System, and fetch the missing records from ICEGATE.
  • Please note that it usually takes 2 days (after reference date) for BE details to get updated on GST Portal from ICEGATE. This functionality should, therefore, be used if data is not available after this

4.  NOTIFICATION

4.1. GST Rate Changes on Goods Applicable from 1 Oct 2021

(Notification No. 8/2021-Central Tax (R); 30th Sep, 2021)

Some of the important rate changes recommended by the 45th GST Council Meeting are as under:

Sr. No. Industry HSN Description Rate Change
201A Renewable energy industry 84, 85 or 94 Following renewable energy devices and parts for their manufacture:-

(a) Bio-gas plant;

(b) Solar power based devices;

(c) Solar power generator;

(d) Wind mills, Wind Operated Electricity Generator (WOEG);

(e) Waste to energy plants / devices;

(f) Solar lantern / solar lamp;

(g) Ocean waves/tidal waves energy devices/plants;

(h) Photo voltaic cells, whether or not assembled in modules or made up into panels.

5% to 12 %
153A Packaging industry 4819 Cartons, boxes, cases, bags and other packing containers, of

paper, paperboard, cellulose wadding or webs of cellulose fibres; box files, letter trays, and similar articles, of paper or paperboard of a kind used in offices, shops or the like.

12% to 18%
101A Waste/scrap industry 3915 Waste, Parings and Scrap, of Plastics 5% to 18%
447 Pen industry 9608 Ball point pens; felt tipped and other porous-tipped pens and markers; fountain pens; stylograph pens and other pens; duplicating stylos; pen holders, pencil holders and similar holders; parts (including caps and clips) of the foregoing articles, other than those of heading 9609. 12% to 18%
12B Carbonated Fruit Drink industry 2202 Carbonated Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice. 28%
186A Bio-diesel industry 3826 Bio-diesel supplied to Oil Marketing Companies for blending with High Speed Diesel 12% to 5%

4.2. GST Rate Changes on Services Applicable from 1 Oct 2021

(Notification No. 06/2021- Central Tax (R), dated 30.09.2021)

Some of the important rate changes recommended by the 45th GST Council Meeting are as under:

Sr. No. Industry Description GST Rate
34(iii) Amusement parks
industry
Services by way of admission to;

(a) theme parks, water parks and any other place having joy rides, merry- go rounds, go carting, or

(b) ballet, – other than any place covered by (iiia) below

18%
34(iiia) Amusement      parks
industry
Services by way of admission to (a) casinos or race clubs or any place having casinos or race clubs or (b) sporting events like Indian Premier League. 28%
26(ica) Job-work (alcohol) Services by way of job work in relation to manufacture of alcoholic liquor for human consumption 18%
17(ii) Intellectual Property (IP) right Temporary or permanent transfer or permitting the use or enjoyment of Intellectual Property (IP) right 18%

5.3. No GST Exemption on Seeds meant for any use other than Sowing

(Notification No. 9/2021-Central Tax (R); 30th Sep, 2021)

The Central Board Indirect Taxes and Customs (CBIC) notified that the no GST exemption on seeds meant for any use other than sowing.

The government has inserted the explanation which said that Seeds, fruit and spores, of a kind used for sowing are exempted from GST but this entry does not cover seeds meant for any use other than sowing.” The notification shall come into force on the 1st October 2021.

5.4. CBIC notified RCM applicability on supply of mentha oil by unregistered person to registered person

(Notification No. 10/2021-Central Tax (R); 30th Sep, 2021)

The CBIC vide Notification No. 10/2021-Central Tax (Rate) dated September 30, 2021 has further amended Notification No. 04/2017-Central Tax (Rate) dated June 28, 2017 (“the RCM notification for goods”), in order to adhere to the recommendations of 45th GST Council meeting held on September 17, 2021. Supply of mentha oil by unregistered person to registered person shall be taxable under RCM as per Section 9(3) of CGST Act, 2017.

5.5. CBIC relaxes Requirement of Filing Job Work Declaration in Form GST ITC-04

(Notification No. 35/2021-Central Tax; 24th Sep, 2021)

Requirement of filing FORM GST ITC-04 under rule 45 (3) of the CGST Rules has been relaxed as taxpayers whose annual aggregate turnover in preceding financial year is above Rs. 5 crores shall furnish ITC-04 once in six months and taxpayers whose annual aggregate turnover in preceding financial year is upto Rs. 5 crores shall furnish ITC-04 annually.

5.6. CBIC mandates Aadhaar Authentication for Registered Person for Filing of Application for Revocation of Cancellation of GST Registration, Refund Application

(Notification No. 35/2021-Central Tax; 24th Sep, 2021)

The CBIC inserted Rule 10B in respect of Aadhaar authentication for registered person shall be inserted, which says that The registered person shall undergo authentication of the Aadhaar number in order to be eligible for filing of application for revocation of cancellation of registration in FORM GST REG- 21 under Rule 23, filing of refund application in FORM RFD-01 under rule 89, and refund under rule 96 of the integrated tax paid on goods exported out of India.

6. JUDICIAL PRONOUNCEMENTS

6.1 Supreme Court upholds Validity of Provision relating to GST Refund of Inverted Duty on Input Services

The Honourable Supreme Court upheld the validity of Rule 89(5) of the CGST Rules 2017 which pertains to Good and Service Tax (GST) Refund of Inverted Duty on Input Services.

The issues raised in the petition was whether the amended Rule 89 of the CGST Rules is violative of Article 14 of the Constitution of India inasmuch as it treats dealers with accumulated credit on inputs and dealers with accumulated credit on input services differently; whether the amended Rule 89 of the CGST Rules is violative of Article 14 of Constitution of India inasmuch as it treats dealers with accumulated credit on inputs and dealers with accumulated credit on input services differently; and whether Section 164(3) is unconstitutional inasmuch as it suffers from the vice of excessive delegation.

VKC Footsteps India Pvt. Ltd. Vs. Union of India

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