A. Important GST Judgment, Rulings of the week ending on 09th November 2020
1. Delhi High Court: Upheld the power to conduct Service Tax Audit post GST regime
3. NAA: Starbucks fined for not passing on GST cut benefits
B. Important Circulars of the week
1. CBIC issued Circular No. 49/2020-Customs dated November 03, 2020 for Scheme for Rebate of State Levies (ROSL).
2. CBIC vide Circular No. 50/2020-Customs dated November 05, 2020 issued Policy and Guidelines for setting up of Inland Container Depots (ICDs), Container Freight Stations (CFSs) and Air Freight Stations (AFSs)
3. Maharashtra AAR issued guidelines for online e-hearing- The Hon’ble AAR, Maharashtra vide Trade Circular ARA- 01T of 2020, dated November 02, 2020, issued the guidelines to initiate online e-hearing provisional basis, in respect of applications filed before the Advance Ruling Authority under Maharashtra State Goods and Services Tax Act, 2017.
C. Important Press Releases of the week
1. GST collection in the month of October, 2020 is ₹1,05,155 crore
2. GST: More than 495 Lakh e-invoices generated on the NIC portal within a month of introduction
4. Rajasthan decides to go for Option-1 to meet the GST implementation shortfall
5. Government extends Emergency Credit Line Guarantee Scheme till November 30, 2020
6. Ministry of MSME launches special drives for increasing Udyam Registration
7. PIB issued statistics of India’s Merchandise Trade Preliminary data for the month of October, 2020
India’s merchandise exports in October 2020 were USD 24.82 billion, as compared to USD 26.23 billion in October 2019, showing a fall of 5.4%. Exports during April-October 2020-21 were USD 150.07 billion, exhibiting a decline of 19.05% over the same period last year.
The value of India’s merchandise imports in October 2020 was USD 33.6 billion, as compared to USD 37.99 billion in October 2019, a decline of 11.56%. Merchandise imports during April-October 2020-21 were USD 182.29 billion, as compared to USD 286.07 billion during the same period last year, exhibiting a negative growth of 36.28%.
India was thus a net importer in October 2020, with a trade deficit of USD 8.78 billion, as compared to trade deficit of USD 11.76 billion, an improvement by 25.34%.
In October 2020, the value of non-petroleum exports was USD 23.21 billion, registering a positive growth of 1.84% over October 2019. The value of non-petroleum and non-gems and jewellery exports in October 2020 was USD 20.28 billion, as compared to USD 19.07 billion in October 2019, registering a positive growth of 6.34%. The cumulative value of non-petroleum and non-gems and jewellery exports in April-October 2020-21 was USD 124.79 billion, as compared to USD 137.72 billion for the corresponding period in 2019-20, exhibiting a decrease of 9.39%.
In October 2020, Oil imports were USD 5.98 billion, as compared to USD 9.73 billion in October 2019, a decline by 38.52%. Oil imports in April-October 2020-21 were USD 37.84 billion, as compared to USD 74.93 billion, showing a decline of 49.5%.
Non-oil imports in October 2020 were estimated at USD 27.62 billion, as compared to USD 28.26 billion in October 2019, showing a decline of 2.26%. Non-oil imports in April-October 2020-21 were USD 144.45 billion, as compared to USD 211.14 billion, registering a decline of 31.59% during the same period of the last year.
Non-oil, non-GJ (gold, silver &Precious metals) imports were USD 22.83 billion in October 2020, recording a negative growth of 8.31%, as compared to non-oil and non-gold imports of USD 24.9 billion in October 2019. Non-oil and non-gold imports were USD 126.97 billion in April-October 2020-21, recording a negative growth of 29.28%, as compared to non-oil and non-gold imports of USD 179.55 billion in April-October 2019-20.
Major commodities of export which have recorded positive growth during October 2020 vis-à-vis October 2019 are: Other cereals (369.30%), Rice (112.15%), Oil meals (76.62%), Iron ore (73.89%), Oil seeds (54.06%), Carpet (37.67%), Cereal preparations and miscellaneous processed item (36.13%), Ceramic products and glassware (34.62%), Drugs and pharmaceuticals (21.82%), Spices (21.61%), Jute mfg. Including floor covering (18.76%), Meat, dairy and poultry products (16.65%), Handicrafts excl. Handmade carpet (11.37%), Fruits and vegetables (8.92%), Mica, coal and other ores, minerals including process (7.68%), Cotton yarn/fabrics/made-ups, handloom products etc. (6.52%), RMG of all textiles (6.31%), Tobacco (4.34%), Organic and inorganic chemicals (1.91%), Tea (0.14%).
Major commodities of export which have recorded negative growth during October 2020 vis-à-vis October 2019 are Petroleum products (53.30%), Cashew (21.57%), Gems and jewellery (21.27%), Leather and leather manufactures (16.69%), Man-made yarn/fabrics/made-ups etc. (12.82%), Electronic goods (9.40%), Coffee (9.25%), Marine products (8.09%), Plastic and linoleum (6.88%), Engineering goods (3.84%).
Major commodity groups of import showing positive growth in October 2020 over the corresponding month of last year are: Pearls, precious & Semi-precious stones (50.47%), Fertilizers, Crude & manufactured (46.25%), Gold (35.88%), Sulphur & Unroasted Iron Pyrites (32.09%), Project goods (28.75%), Fruits & vegetables (22.81%), Electronic goods (16.12%), Medcnl. & Pharmaceutical products (13.33%), Vegetable Oil (7.29%), Metaliferrous ores & other minerals (4.80%), Chemical material & products (2.00%.
Major commodity groups of import showing negative growth in October 2020 over the corresponding month of last year are: Silver (90.54%), Newsprint (79.99%), Cotton Raw & Waste (77.40%), Pulses (65.15%), Transport equipment (56.32%), Leather & leather products (41.37%), Petroleum, Crude & products (38.52%), Pulp and Waste paper (29.88%), Machine tools (29.62%), Wood & Wood products (26.51%), Textile yarn Fabric, made-up articles (25.13%), Iron & Steel (22.32%), Machinery, electrical & non-electrical (15.63%), Professional instrument, Optical goods, etc. (11.95%), Artificial resins, plastic materials, etc. (7.53%), Coal, Coke & Briquettes, etc. (6.50%), Organic & Inorganic Chemicals (2.89%), Non-ferrous metals (2.26%), Dyeing/tanning/colouring materials (0.46%).
MERCHANDISE TRADE: Preliminary Data, October 2020
Summary Value in USD Billion
Total |
Non-Petroleum |
Non- Petroleum and Non-Gems & Jewellery |
|||||||
2019-20 |
2020-21 |
% change |
2019-20 |
2020-21 |
% change |
2019-20 |
2020-21 |
% change |
|
Exports |
26.23 |
24.82 |
-5.40 |
22.79 |
23.21 |
1.84 |
19.07 |
20.28 |
6.34 |
Imports |
37.99 |
33.60 |
-11.56 |
28.26 |
27.62 |
-2.26 |
24.90 |
22.83 |
-8.31 |
Deficit |
11.76 |
8.78 |
-25.34 |
5.47 |
4.41 |
-19.38 |
5.83 |
2.55 |
-56.26 |
Change by top Commodity Groups
Value in USD Million
| Top Increase in October 2020 as compared to October 2019 | Top Decline in October 2020 as compared to October 2019 | |||||
| Commodity group | Change in value | % change | Commodity group | Change in value | % change | |
| Export | Drugs And Pharmaceuticals | 372.05 | 21.82 | Petroleum Products | -1835.58 | -53.30 |
| Rice | 359.82 | 112.15 | Gems And Jewellery | -790.40 | -21.27 | |
| Organic And Inorganic Chemicals | 143.85 | 73.89 | Leather And Leather Manufacturers | -248.07 | -3.84 | |
| Import | Electronic Goods | 768.69 | 16.12 | Petroleum, Crude & Products | -3747.66 | -38.52 |
| Pearls, Precious & Semi-Precious Stones | 768.48 | 50.47 | Transport Equipment | -1459.42 | -56.32 | |
| Gold | 660.15 | 35.88 | Machinery, Electrical & Non-Electrical | -462.62 | -15.63 | |
The Press Release can be accessed at: https://www.pib.gov.in/PressReleasePage.aspx?PRID=1669762
8. There have been several media reports alluding to steep increase in service charges by certain Public Sector Banks (PSBs). The Press Release in this respect clarifying taht no such increase is been made can be accessed at: https://taxguru.in/finance/clarification-news-increase-service-charges-banks.html
9. GSTN has issued a comprehensive guide dated November 05, 2020 for taxpayers on common errors on GST Portal and suggested solutions with respect to registration, returns, payment, refunds, E-way bill, appeal, and DRC-03. The Complete Solutions Guide can be accessed at: https://taxguru.in/goods-and-service-tax/gst-portal-known-issues-suggested-solutions.html
10. National Informatics Centre (NIC) has issued a list of GSTINs dated November 05, 2020 For whom e-invoicing shall be mandatory.
11. The List of GSTINs generating IRN Can be accessed at: https://einvoice1.gst.gov.in/Others/GSTINsGeneratingIRN
| Due Dates | Forms | Period | Description |
| November 11, 2020 | GSTR-1 | October, 2020 | Taxpayers having an aggregate turnover of more than Rs. 1.50 Crores (> Rs 1.50 Cr) or opted to file Monthly Return |
| November 12, 2020 | GSTR-2B | October, 2020 | Auto generated ITC statement |
| November 22, 2020 | GSTR-3B | October, 2020 | Taxpayer having turnover upto ₹5 crores in previous financial year (monthly return) in the state of:
|
| November 24, 2020 | GSTR-3B | October, 2020 | Taxpayer having turnover upto ₹5 crores in previous financial year (monthly return) in the state of:
|
| November 20, 2020 | GSTR-3B | October, 2020 | Taxpayers having an aggregate turnover more than rupees 5 Crores (> Rs 5 Cr) in the preceding financial year |
| November 20, 2020 | GSTR-5 & 5A | October, 2020 | Non-resident taxable person and ODIAR services provider file Monthly GST Return |
| November 13, 2020 | GSTR-6 | October, 2020 | Every Input Service Distributor (ISD) |
| November 10, 2020 | GSTR-7 | October, 2020 | Return for Tax Deducted at source to be filed by Tax Deductor |
| November 10, 2020 | GSTR-8 | October, 2020 | E-Commerce operator registered under GST liable to TCS |
D. Income Tax- Important Notification, Circular of the week
1. CBDT gives exemption to Abu Dhabi’s sovereign wealth fund MIC Redwood for investments –
The Central Board of Direct Taxes (CBDT) has exempted dividend, interest and long term capital gains made by sovereign wealth fund MIC Redwood 1 RSC Limited, Abu Dhabi, United Arab Emirates in India from income tax subject to certain conditions. The Notification can be accessed at: https://taxguru.in/income-tax/cbdt-notifies-mic-redwood-1-rsc-limited-section-1023febvi.html
2. I-T department allows condonation of delay in filing audit reports by trusts, institutions
The Income Tax Department has allowed condonation of delay in filing audit reports by trusts, institutions, universities and hospitals who claim tax exemption. The Circular can be accessed at: https://taxguru.in/income-tax/cbdt-condones-delay-filing-form-no-10bb-ay-2016-17-subsequent-years.html
E. Important Income Tax Press Releases of the week
1. Income Tax Department conducts searches in West Bengal
2. Income Tax Department conducts searches in Kerala
F. Important Update of the week
1. CBDT has issued refunds of over Rs. 1,29,190 crore to more than 39.49 lakh taxpayers between April 01, 2020 to November 03, 2020
As per the recent tweet of Income Tax India, the CBDT issues refunds of over Rs. 1,29,190 crore to more than 39.49 lakh taxpayers between April 01, 2020 to November 03, 2020.
Income tax refunds of Rs. 34,820 crore have been issued in 37,55,428 cases & corporate tax refunds of Rs. 94,370 crore have been issued in 1,93,059 cases.
Source from: https://twitter.com/IncomeTaxIndia/status/1323904156852105217
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