GST – Weekly Updates – 03.07.2021 CA Vaishali Kharde (Founder and CEO of VBK and Company) Areas Covered Weekly Updates Key Highlights Clarifications Issued Ongoing Litigation Key Pronouncements Key highlights GST – 4 Th Anniversary – Key Aspects of 4 Years 1st Year • Full of technical surprises! • System Glitches • Impact on Business • Transitional Credit • Litigation 2nd Year • Increase in compliances • E - way Bill Launched • New Revised structure for Real Estate Sector 3rd Year • Unforeseen challenges Covid - 19 • Efforts for New GST return • 20% /10% provisional ITC [ Rule 36(4)] • Change in rate of hotel accommodation 4th Year • Litigation • Pandemic Continue • E - Invoice implemented for specified person • Restriction of utilization of ITC to large Taxpayer • Amendment in GST Act Amendments Applicability of QR Code [ Not. No 28/2021 ] 01.12.2020 • Not. No. 14/2020 - CT dated 21.03.2020 • QR code made applicable for taxpayers having aggregate turnover more than 500 crore rupees 30.06.2021 • Not. No. 6/2021 - CT dated 30.03.2021 • Penalty has been waived for non - compliance of QR code up to 30.06.21, subject to the condition that the taxpayer complies with the provisions from 1.07.2021 1.07.2021 • Not. No 28/2021 dated 30.06.2021 • Extends applicability of B2C dynamic QR code provisions to 30.09.2021. GSTN releases guide to check misuse of PAN in GST registration GSTN enabled functionality to register complaints on GST Portal It’s a a 6 - step process It will help to check the misuses, control the frauds and help officers in enquiry and cancellation of such registration; Complain will be sent to the concerned jurisdictional authority where the registration is claimed to be fraudulently taken GSTN releases guide to check misuse of PAN in GST registration 1. • A complainant/registered taxpayer can access the search function in GST Common Portal to check GSTIN issued under their PAN, 2. • By clicking on report button i.e. a complaint function, complainant can raise complaint in case he/she finds unauthorized registration of GSTN under his/her PAN, 3. • On clicking ‘report button’ a pop up will appear where complainant have to enter personal details which would be followed by Aadhaar Authentication GSTN releases guide to check misuse of PAN in GST registration 4. • ARN will be generated on submission of details and registration of complaint, 5. • The Authorities will able to check complaints at their dashboard under “Application for Reporting Fake GSTIN’s” for further necessary action and the officers shall have a new Role of “PAN Vigilance officer” in the Back Office, 6. • Complainant will be able to track the status of application through ‘Track ARN’ at GST Portal pre - login: GSTN Enablement of Refund Application Withdrawal Ongoing Litigation GST on license fee for Government S chemes GST on license fee • Authorities are demanding GST on licence fees paid by companies to the government for availing certain benefits • RCM is Applicable in case of Fees paid to Government • Examples of the licence fees are Advance Authorisation licence , EPCG ETC • There should be differentiation between Statutory Dues and Fees Paid to Government GST on license fee for Government S chemes Key Highlights • Revisit the amount paid to Government • Differentiation of amount paid to Government in to statutory dues and amount towards fess is key to decide applicability of the liability under RCM • ITC will not be available if RCM lability computed and paid during Departmental Audit, Assessment, Investigation etc. Thus, revisit fees if any paid to Government so that to mitigate risk of litigation. Key Pronouncement No reversal of ITC on material losses incurred Case • Ars Steels And Alloy International Pvt Ltd Vs STO [ 2021 - TIOL - 1393 - HC - MAD - GST] Issue ▪ Whether ITC is not available u/s 17(5) of the CGST Act on loss of inputs during Manufacturing Process Legal Provision • Section 17(5) of the CGST Act, • (5) Notwithstanding anything contained in sub - section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following, namely: — • (h)Goods lost, Stolen, Destroyed, written off or disposed of by way of gifts or free samples No reversal of ITC on material losses incurred Observation • The petitioners are engaged in the manufacture of MS Billets and Ingots. MS scrap is an input in the manufacture of MS Billets and the latter, in turn, constitutes an input for manufacture of TMT/CTD Bars. • The loss that is occasioned by the process of manufacture cannot be equated to any of the instances set out in clause (h) Way Forward • It is relevant to construct the meaning of goods lost, stolen, destroyed etc. • Documents substantiating nature of loss like Normal Loss, Process Loss , Goods Lost etc. to be maintained properly. Thank You CA Vaishali B Kharde and Co. YouTube : CA Vaishali Kharde Linked In : linkedin.com/in/ca - vaishali - kharde - 6a122539 E - Mail : cakhardevaishali@gmail.com Mobile : +91 95610 05039 GST - Decoding of Amendments of Budget 2021 Vivad Se Vishwas Scheme (Direct Tax) Firm Visit us for Updates Share Feedback and Queries Our Books