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

2. NAA: Tata Croma told to slash prices of DSLRs, power banks; fined Rs 1.9 cr for GST-related profiteering

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.

GST

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

3. Central Government released Rs 6,000 cr as second tranche to 16 States and 3 Union Territories on account of GST compensation under Special Borrowing Window

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:

  • Chhattisgarh
  • Madhya Pradesh
  • Gujarat
  • Daman and Diu and Dadra and Nagar Haveli
  • Maharashtra
  • Karnataka
  • Goa
  • Lakshadweep
  • Kerala
  • Tamil Nadu
  • Puducherry
  • Andaman & Nicobar island
  • Telangana
  • Andhra Pradesh
November 24, 2020 GSTR-3B October, 2020 Taxpayer having turnover upto ₹5 crores in previous financial year (monthly return) in the state of:

  • Jammu and Kashmir
  • Ladakh
  • Himachal Pradesh
  • Punjab
  • Chandigarh
  • Haryana
  • Delhi
  • Rajasthan
  • Uttar Pradesh
  • Bihar
  • Sikkim
  • Arunachal Pradesh
  • Nagaland
  • Manipur
  • Mizoram
  • Tripura
  • Meghalaya
  • Assam
  • West Bengal
  • Jharkhand
  • Odisha
  • Uttarakhand
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

*****

About us:

A2Z TAXCORP LLP is a boutique Indirect Tax firm having professionals from Multi disciplines which includes Goods and Services Tax (GST), Central Excise, Custom, Service Tax, VAT, DGFT, Foreign Trade Policy, SEZ, EOU, Export – Import Laws, Free Trade Policy etc.

DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this weekly newsletter are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this weekly newsletter nor for any actions taken in reliance thereon.

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