GST – Weekly News – 04.07.2021 -CA Vaishali Kharde - vaishali kharde

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GST – Weekly Updates – 03.07.2021 CA Vaishali Kharde (Founder and CEO of VBK and Company) Areas Covered Key Highlights Weekly Key Clarifications Updates Pronouncements Issued Ongoing Litigation Key highlights GST – 4Th Anniversary – Key Aspects of 4 Years 1st Year 2nd Year 3rd Year 4th Year • Full of technical • Increase in • Unforeseen • Litigation surprises! compliances challenges Covid-19 • Pandemic Continue • System Glitches • E-way Bill Launched • Efforts for New GST • E-Invoice • Impact on Business • New Revised return implemented for • Transitional Credit structure for Real • 20% /10% specified person • Litigation Estate Sector provisional ITC • Restriction of [Rule 36(4)] utilization of ITC to • Change in rate of large Taxpayer hotel • Amendment in GST accommodation Act Amendments Applicability of QR Code [Not. No 28/2021 ] 01.12.2020 30.06.2021 1.07.2021 • Not. No. 14/2020-CT dated • Not. No. 6/2021-CT dated • Not. No 28/2021 dated 21.03.2020 30.03.2021 30.06.2021 • QR code made applicable • Penalty has been waived • Extends applicability of B2C for taxpayers having for non-compliance of QR dynamic QR code aggregate turnover more code up to 30.06.21, provisions to 30.09.2021. than 500 crore rupees subject to the condition that the taxpayer complies with the provisions from 1.07.2021 GSTN releases guide to check misuse of PAN in GST registration GSTN enabled functionality to It’s a a 6-step process register complaints on GST Portal It will help to check the misuses, Complain will be sent to the control the frauds and help officers concerned jurisdictional authority in enquiry and cancellation of where the registration is claimed to such registration; 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 Schemes 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 Schemes 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 • Ars Steels And Alloy International Pvt Ltd Vs STO [2021-TIOL-1393-HC- Case MAD-GST] ▪ Whether ITC is not available u/s 17(5) of the CGST Act on loss of inputs Issue during Manufacturing Process • 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 Legal Provision 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 • 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 Observation 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) • It is relevant to construct the meaning of goods lost, stolen, destroyed etc. Way Forward • Documents substantiating nature of loss like Normal Loss, Process Loss, Goods Lost etc. to be maintained properly. Thank You Firm CA Vaishali B Kharde and Co. Visit us for YouTube : CA Vaishali Kharde Updates Linked In : linkedin.com/in/ca-vaishali-kharde-6a122539 Share Feedback E-Mail : [email protected] and Queries Mobile : +91 95610 05039 Our GST -Decoding of Amendments of Budget 2021 Books Vivad Se Vishwas Scheme (Direct Tax)