Dr. Sanjiv Agarwal, FCA, FCS

Dr Sanjiv Agarwal

Indian economy is still in ‘struggle’ phase. According to latest reports, industrial growth in five core sectors (coal, crude, natural gas, cement and electricity) have fallen to 4.7% which is the lowest in last over 4 years. The core sector growth in current year @ 2.4% is lower than 5.7% in previous year. Fiscal deficit has hit 78.7% of financial year 2019-20 target.

On refunds, Government is committed to make refunds within prescribed time lines. In case of MSMEs, pending refunds shall be paid within 30 days. In future, GST refunds shall be paid within 60 days of application which is aimed at resolving liquidity crises faced by MSME sector and also release working capital pressure. This seamless and speedy refund has become possible with, ‘Online Refund Processing and Single Disbursement’ system.

♦ Constitution of State/Area benches of GSTAT

In terms of provisions of Section 109 of the CGST Act, GST Council recommended constitution of GST Appellate Tribunal and its benches in following states:

Sl. No. Name of States/UT State Bench Area Bench
1.        Meghalaya  Shillong  No bench 
2.        Mizoram Aizawl -do-
3.        Rajasthan Jaipur Jodhpur 
4.        Karnataka —– Two Area benches at Bengaluru

♦ Extension of last date for filing appeal before GSTAT

In the wake of non-functionality of GST Appellate Tribunal in the States/UTs, the Council has also decided to extend the last date for filing of appeal before the GSTAT by three months from the date of order or three months from the date on which the President or the State President of the Tribunal enter office, whichever is later.

♦ GST Refunds

Online refund processing functionality shall be implemented from 24th September, 2019 enabling disbursement of refund through a Single Refund Sanctioning Authority under an Integrated Refund System. Earlier, the refund processing was done for both Centre and State GST by one authority to whom the taxpayer was assigned administratively but disbursement was done by accounting authority of Centre and State tax department separately. The new system has done away with this and after processing is completed by the tax officer, the sanctioned amount will get credited to the bank account of the taxpayers through PFMS System.

The Council also approved that the procedure to be followed and other issues be clarified in relation to refund in following situations:

(a) procedure to claim refund in FORM GST RFD-01A subsequent to favourable order in appeal or any other forum;

(b) eligibility to file a refund application in FORM GST RFD-01A for a period and category under which a NIL refund application has already been filed.

♦ Issue of new Notifications

CBIC has issued 14 notifications yesterday on 30.09.2019 the decisions taken in 37th GST Council meeting which was held on 22.09.2019 in Goa. The gist of new notifications is given below in this article

Recession of Circular

CBIC has rescinded Circular No.105/24/2019-GST dated 28.06.2019, ab-initio, which was issued in respect of post-sales discount.

♦ GST Collections

GST collection has dropped below Rs 1 lakh crore mark to Rs 91,916 crore for September, 2019. The September collection is believed to be the lowest in nineteen months.

The revenue during September, 2019 has declined by 2.67% in comparison to the revenue during September, 2018. During April-September, 2019 vis-à-vis 2018, the domestic component has grown by 7.82% while the GST on imports has shown negative growth and the total collection has grown by 4.90%.

The total gross GST revenue collected in the month of September, 2019 was Rs 91,916 crore of which Central GST (CGST) was Rs 16,630 crore, State GST (SGST) was Rs 22,598 crore, Integrated GST (IGST) was Rs 45,069 crore (including Rs 22,097 crore collected on imports) and Cess is Rs 7,620 crore (including Rs 728 crore collected on imports).

GST collection at a glance in 2019-20

GST Collection (YoY)

Gist of Recent GST Notifications issued

Notification No. Dated Amendment/details
Central Tax
Notification No.42/2019-Central Tax 24.09.2019 Seeks to notify date of enforcement as 24.09.2019 of rules 10, 11, 12 and 26
Notification No.43/2019-Central Tax 30.09.2019 Seeks to amend notification No 14/2019- Central Tax dated 7.3.2019 so as to exclude manufacturers of aerated waters from the purview of composition scheme.
Central Tax (Rate)
Notification No. 14/2019-Central Tax (Rate) 30.09.2019 Seeks to amend notification No 1/2017- Central Tax (Rate) dated 28.6.2017 so as to specify effective CGST rates for specified goods, to give effect to the recommendations of the GST Council in its 37th meeting dated 20.09.2019.
Notification No. 15/2019-Central Tax (Rate) 30.09.2019 Seeks to amend notification No 2/2017- Central Tax (Rate) dated 28.6.2017 so as to grant exemption to dried tamarind and cups, plates made of leaves, bark and flowers of plants.
Notification No. 16/2019-Central Tax (Rate) 30.09.2019 Seeks to amend notification No 3/2017- Central Tax (Rate) dated 28.6.2017 so as to extend concessional CGST rates to specified projects under HELP/OALP, and other changes.
Notification No. 17/2019-Central Tax (Rate) 30.09.2019 Seeks to amend notification No 26/2018- Central Tax (Rate) dated 31.12.2018, so as to exempt CGST on supplies of silver and platinum by nominated agencies to registered persons.
Notification No. 18/2019-Central Tax (Rate) 30.09.2019 Seeks to amend notification No 2/2019- Central Tax (Rate) dated 7.3.2019 so as to exclude manufacturers of aerated waters from the purview of composition scheme.
Notification No. 19/2019-Central Tax (Rate) 30.09.2019 Seeks to exempt supply of goods for specified projects under FAO.
Notification No. 20/2019-Central Tax (Rate) 30.09.2019 Seeks to amend notification No. 11/2017- Central Tax (Rate) so as to notify CGST rates of various services as recommended by GST Council in its 37th meeting held on 20.09.2019.
Notification No. 21/2019-Central Tax (Rate) 30.09.2019 Seeks to amend notification No. 12/2017- Central Tax (Rate) to exempt services as recommended by GST Council in its 37th meeting held on 20.09.2019.
Notification No. 22/2019-Central Tax (Rate) 30.09.2019 Seeks to amend notification No. 13/2017- Central Tax (Rate) so as to notify services under reverse charge mechanism (RCM) as recommended by GST Council in its 37th meeting held on 20.09.2019.
Notification No. 23/2019-Central Tax (Rate) 30.09.2019 Seeks to amend notification No. 4/2018 – Central Tax (Rate), dated the 25th January, 2018, by adding an explanation on the applicability of provisions related to supply of development rights.
Notification No. 24/2019-Central Tax (Rate) 30.09.2019 Seeks to amend notification No. 7/2019 – Central Tax (Rate), dated the 29th March, 2019 by amending the entry related to cement.
Notification No. 25/2019-Central Tax (Rate) 30.09.2019 Seeks to notify the grant of alcoholic liquor licence neither a supply of goods nor a supply of service as per Section 7(2) of CGST Act, 2017.
Integrated Tax
Notification No. 4/2019- Integrated Tax 30.09.2019 Seeks to notify the place of supply of R&D services related to pharmaceutical sector as per Section 13(13) of IGST Act, as recommended by GST Council in its 37th meeting held on 20.09.2019.
Integrated Tax  (Rate)
Notification No. 14/2019-Integrated Tax  (Rate) 30.09.2019 Seeks to amend notification No 1/2017- Integrated Tax dated 28.6.2017 so as to specify effective IGST rates for specified goods, to give effect to the recommendations of the GST Council in its 37th meeting dated 20.09.2019.
Notification No. 15/2019-Integrated Tax  (Rate) 30.09.2019 Seeks to amend notification No 2/2017- Integrated Tax (Rate) dated 28.6.2017 to grant exemption to dried tamarind and cups, plates made of leaves, bark and flowers of plants.
Notification No. 16/2019-Integrated Tax  (Rate) 30.09.2019 Seeks to amend notification No 3/2017- Integrated Tax (Rate) dated 28.6.2017 so as to extend concessional IGST rates to specified projects under HELP/OALP, and other changes.
Notification No. 17/2019-Integrated Tax  (Rate) 30.09.2019 Seeks to amend notification No 27/2018- Integrated Tax (Rate) dated 31.12.2018 so as to exempt IGST on supplies of silver and platinum by nominated agencies to registered persons.
Notification No. 18/2019-Integrated Tax  (Rate) 30.09.2019 Seeks to exempt supply of goods for specified projects under FAO.
Notification No. 19/2019-Integrated Tax  (Rate) 30.09.2019 Seeks to amend notification No. 08/2017- Integrated Tax (Rate) so as to notify GST rates of various services as recommended by GST Council in its 37th meeting held on 20.09.2019.
Notification No. 20/2019-Integrated Tax  (Rate) 30.09.2019 Seeks to amend notification No. 09/2017- Integrated Tax (Rate) so as exempt certain services as recommended by GST Council in its 37th meeting held on 20.09.2019.
Notification No. 21/2019-Integrated Tax  (Rate) 30.09.2019 Seeks to amend notification No. 10/2017- Integrated Tax (Rate) so as notify certain services under reverse charge mechanism (RCM) as recommended by GST Council in its 37th meeting held on 20.09.2019.
Notification No. 22/2019-Integrated Tax  (Rate) 30.09.2019 Seeks to amend notification No. 04/2018 – Integrated Tax (Rate), dated the 25th January, 2018, by adding an explanation on the applicability of provisions related to supply of development rights.
Notification No. 23/2019-Integrated Tax  (Rate) 30.09.2019 Seeks to amend notification No. 07/2019 – Integrated Tax (Rate), dated the 29th March, 2019 by amending the entry related to cement.
Notification No. 24/2019-Integrated Tax  (Rate) 30.09.2019 Seeks to notify the grant of alcoholic liquor licence neither a supply of goods nor a supply of service as per Section 20(i) of IGST Act read with Section 7(2) of CGST Act.
Union Territory Tax  (Rate)
Notification No. 14/2019- Union Territory Tax  (Rate)

 

30.09.2019 Seeks to amend notification No 1/2017- Union territory Tax (Rate) dated 28.6.2017 so as to specify effective UTGST rates for specified goods, to give effect to the recommendations of the GST Council in its 37th meeting dated 20.09.2019.
Notification No. 15/2019- Union Territory Tax  (Rate) 30.09.2019 Seeks to amend notification No 2/2017- Union territory Tax (Rate) dated 28.6.2017 so as to grant exemption to dried tamarind and cups, plates made of leaves, bark and flowers of plants.
Notification No. 16/2019- Union Territory Tax  (Rate) 30.09.2019 Seeks to amend notification No 3/2017- Union territory Tax (Rate) dated 28.6.2017 so as to extend concessional UTGST rates to specified projects under HELP/OALP, and other changes.
Notification No. 17/2019- Union Territory Tax  (Rate)

 

30.09.2019 Seeks to amend notification No 26/2018- Union territory Tax (Rate) dated 31.12.2018 so as to exempt UTGST on supplies of silver and platinum by nominated agencies to registered persons.
Notification No. 18/2019- Union Territory Tax  (Rate)

 

30.09.2019 Seeks to amend notification No 2/2019- Union territory Tax (Rate) dated 7.3.2019 so as to exclude manufacturers of aerated waters from the purview of composition scheme.
Notification No. 19/2019- Union Territory Tax  (Rate) 30.09.2019 Seeks to exempt supply of goods for specified projects under FAO.
Notification No. 20/2019- Union Territory Tax  (Rate)

 

30.09.2019 Seeks to amend notification No. 11/2017- Union Territory Tax (Rate) so as to notify GST rates of certain services as recommended by GST Council in its 37th meeting held on 20.09.2019.
Notification No. 21/2019- Union Territory Tax  (Rate)

 

30.09.2019 Seeks to amend notification No. 12/2017- Union Territory Tax (Rate) so as to exempt certain services as recommended by GST Council in its 37th meeting held on 20.09.2019.
Notification No. 22/2019- Union Territory Tax  (Rate)

 

30.09.2019 Seeks to amend notification No. 13/2017- Union Territory Tax (Rate) so as to notify certain services under reverse charge mechanism (RCM) as recommended by GST Council in its 37th meeting held on 20.09.2019.
Notification No. 23/2019- Union Territory Tax  (Rate)

 

30.09.2019 Seeks to amend notification No. 04/2018 – Union Territory Tax (Rate), dated the 25th January, 2018, by adding an explanation on the applicability of provisions related to supply of development rights.
Notification No. 24/2019- Union Territory Tax  (Rate)

 

30.09.2019 Seeks to amend notification No. 07/2019 – Union Territory Tax (Rate), dated the 29th March, 2019 by amending the entry related to cement.
Notification No. 25/2019- Union Territory Tax  (Rate) 30.09.2019 Seeks to notify the grant of alcoholic liquor licence neither a supply of goods nor a supply of service as per Section 21(i) of UTGST Act read with Section 7(2) of CGST Act, 2017.

The decisions of GST Council meeting held on 20th September, 2019 were supposed to be implemented w.e.f. 1st October, 2019. However, the relevant notifications to give effect to the same have been issued only in the evening of 30th September, 2019 after offices had closed. This could have been avoided and such notifications issued last week itself. The Government also expects taxpayers to be compliant.

It is high time that Government decides to amend GST rules only at fixed intervals, if required, say every quarter end. The changes also necessitate amendments in rules and rates which make it difficult for taxpayers, professionals and even officers to track the changes, leading to possible non-compliances. The Government claims that it is ‘listening and acting; so far, so good. But is this the way, any tax Collector is expected to act ?

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