The economy has started showing signs of recovery after second wave of Covid-19 which is receding fast. While nothing is predictable on the third wave yet, the economy is slowly returning to normal with most of the curbs been lifted in all parts of the country. While capital expenditure has grown in Q1 this year, there is a decline in revenue expenditure lead by rural expenditure which may impact economic recovery. On economy, various economists and agencies have estimated GST growth for Q1 of current fiscal in the range of 13-23% with most predictable being in 17-18% range.

Union Government has ruled out any possibility for the present, to cut excise duty on petroleum products i.e., petrol and diesel because of the cost of burden on the oil bonds. The principal amount outstanding on the oil bonds is Rs. 1.3 trillion and Government has to repay Rs. 10000 crore in current fiscal, Rs. 31150 crore in 2023-24 followed by Rs. 52860 crore and Rs. 36,913 crore till 2025-2026.

Authority for Advance Rulings keep pronouncing rulings of interest. It has now said that dosa and idli mix are liable to GST @ 18%. Also, hand sanitizers are liable to levy of GST. Another example is that branded, packaged cut fruits in a container with or without preservatives are liable to GST of 5%.  Subway, the sandwich makers after loosing through franchisees have challenged the validity of anti-profiteering provisions in GST law before Delhi High Court. It has raised the issue of constitutional validity of setting up the Authority without prescribing the methodology to determine profiteered amount.

Creation of Challan without Logging on to GSTN Portal

  • GSTN has released procedure for generating challan without logging on to GSTN portal.
  • Visit www.gst.gov.in, go to services, select payment, click on create challan option, enter your GSTN or other ID and click on proceed button.
  • Select reasons for challan, enter challan details and select mode of payment –e-payment / over the counter / NEFT / RTGS.
  • Select the mode of e-payment and click make ‘payment’ to pay the challan. Challan is generated; Can be down loaded by clicking ‘down load’ button.

 (Source:  www.gst.gov.in; manual>create challan (Pre log in))

GSTR-9 for Financial Year 2020-21 on GSTN portal

Form GSTR-9, Annual Return for the financial year 2020-21 has been made available on GSTN portal for filing.

The last date for filing GSTN-9 for the Financial Year 2020-21 is 31st December, 2021.

Nil GSTR-9 can be filed in specified cases, i.e., where registered person has:

    • Not made any outward supply (commonly known as sale);
    • Not received any inward supplies (commonly known as purchase) of goods/services;
    • No liability of any kind;
    • Not claimed any Credit during the Financial Year;
    • Not received any order creating demand;
    • Not claimed any refund.
  • GSTR 9 can be filed online or prepared on offline tool and then uploaded on portal and filed.
  • All applicable returns (1, 3B etc) must be filed before filing Form GSTR 9.
  • Once filed, Form GSTR 9 can not be revised.
  • Where Form GSTR 9C (Reconciliation Statement and Self Certification) is to be filed, same will be enabled on dashboard after filing Form GSTR 9.

 (Source:  GSTN)

 Advisory on GSTR 1 Filing – Errors & Resolution

  • GSTR-1 is a monthly or quarterly return containing details of outward supply to be filed by every registered GST taxpayer.
  • Currently, the taxpayers are seeing the below statuses for GSTR 1, after uploading of JSON file from the Offline Tool:

1. Processed with Error, or

2. In Progress

  • This is due to the fact that many offline utilities used by Taxpayers are not filing the Table 12 HSN wise summary of outward supplies correctly. The HSN Code and Rate fields cannot be null.
  • It is suggested to use the latest version of Offline Tool (Version 3.0.4) provided by GSTN instead of 3rd Party GSTR 1 Offline Tool.

 [Source: https://twitter.com/infosys_GSTN/status/1425489278138683392 dated 11.08.2021]

No Notice to Lawyers on GST

  • The petitioner, an advocate was issued notice by the department to submit documentary evidence to prove that he was a practicing individual lawyer and did not come under provisions of GST or service tax.
  • The Court observed that despite knowing that advocates are not liable to pay service tax or GST, notices continue to be issued to them by the GST Commissionerate.
  • The Court directed the Commissioner GST to issue clear instructions to all the officers in the GST Commissionerates in Odisha that no notice demanding payment of service tax/GST will be issued to lawyers rendering legal services and practising advocates should not have to face harassment.
  • A compliance affidavit was filed by the Principal Commissioner, GST & Central Excise Commissionerate, Bhubaneswar enclosing the copies of instructions issued on 9th April, 2021 and 15th April, 2021.
  • The petition was disposed off with directions.

 [Source: In Devi Prasad Tripathy v. Principal Commissioner CGST & Central Excise, Bhubaneswar (2021) 128 taxmann.com 413; (2021) 50 GSTL 9; (2021) 7 TMI 1146 (Orissa)]

GST registration of company under CIRP – IBC Code

  • The insolvency resolution professional can apply for GST registration of a corporate debtor with the intent of keeping the corporate debtor company as a going concern.
  • On such application, GST department rejected the registration application on the ground that GST registration of corporate debtor was earlier cancelled by the Department suo moto and there is no ground to apply for grant of fresh registration.
  • Corporate debtor undergoing CIRP is to be treated as a distinct person and is liable to take new registration where corporate debtor was registered earlier. Section 238 of IBC overrides the provisions of other laws.
  • It was directed to the GST department to allow the IRP to register as a corporate debtor under GST.

[Source: Sapan Mohan Garg v. Commercial Tax Officer, Gujarat (2021) 128 taxmann.com 173 (NCLT, Ahmedabad)]

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