1. .
Brief of Recent Circulars Under GST:-
(A) A) Clarification on GST rates & classification of goods:
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Sr.
No.
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Goods
|
Clarification
|
|
1
|
Leguminous vegetable
|
which is not
mixed with other ingredients such as oil, salt would be exempt from GST.
However, if such goods are branded and
packed in a unit container
then GST would be charged @ 5%.
|
|
2
|
Almond milk
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neither
constitutes any fruit pulp or fruit juice and
hence it attracts GST rate of 18%.
|
|
3
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Mechanical sprayers
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of all types whether or not hand operated
(other
than fire extinguishers, whether or not charged) would attract GST rate of
12%
|
|
4
|
Imported stores
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for use in navy ships are
exempted from GST.
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5
|
Goods imported
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under lease are
exempted from IGST.
➢
Parts including Solar
Evacuated Tube for
the manufacture of solar water heater and system
will attract GST rate of 5%.
|
|
6
|
Parts and accessories used with a medical device (Ophthalmic equipment)
|
should be
classified with the ophthalmic equipment only and shall attract GST rate of
12%.
|
(Circular No. 113/32/2019 dated 11.10.2019)
(B)
B)
GST Scope of support services to exploration, mining or drilling
of petroleum c rude or natural gas:-
New entry has been inserted under heading 9983 w.e.f.
01.10.2019 vide Notification No.20/2019-Central Tax (Rate) dated 30.09.2019-
“(ia) Other professionals, technical and business
services relating to exploration, mining or drilling of petroleum crude or
natural gas or both”
(Circular No.114/33/2019 dated
11.10.2019)
(C) Airport operators
liable for GST on the PSF & UDF collected:
·
The airport operators shall pay GST on the PSF and UDF collected
by them from the passengers through the airlines.
·
Airline can act as pure agent (provided all conditions are satisfied under
rule 33) on the airport services like Passenger Service Fee (PSF) and User
Development Fees (UDF) provided by Airport Operators to the passengers.
·
The airline (pure agent) shall not take ITC of GST payable or paid on PSF and
UDF. The airline would only recover from the passengers the actual PSF and UDF
and GST payable on such PSF and UDF by the airline operator.
·
Airlines shall be liable to pay GST on the collection charges under
forward charge. ITC of the same will be available with the airport operator.
(Circular No.115/34/2019 dated
11.10.2019)
(D)
D)
GST is not leviable on services of
display of name
or placing of
name plates of d onor:
GST shall not
be leviable if 3 conditions are satisfied which are:
-
gift or donation is made to a charitable organization
-
the payment has the character of gift or donation
-
the purpose is neither commercial gain nor advertisement
(Circular
No.116/35/2019 dated 11.10.2019)
(E) E) GST exemption to DG shipping approved maritime courses:
The Maritime Institutes are educational institutions under GST and
the courses conducted by them are exempt from GST.
(Circular No.117/36/2019 dated 11.10.2019)
(F) F) Place of supply of software/design services
related to ESDM industry:
Place of supply is the
location of the service recipient as per Section
13(2) of the IGST Act.
(Circular
No.118/37/2019 dated 11.10.2019)
(G) G) GST on supply of securities under Securities
Lending Scheme, 1997:
With effect
from 1st Oct 2019, the borrower of securities shall be liable to discharge
IGST as per Sl. No 16 of Notification No. 22/2019-Central Tax (Rate) dated 30.09.2019 under
RCM. (Circular No.119/38/2019 dated 11.10.2019)
(H)
H)
Granting of alcoholic
liquor license neither
a supply of
goods nor supply of s ervice :
·
Granting of alcoholic liquor
license, against consideration in the form of license fee or application fees
by State Government has notified as “neither a supply of goods nor supply of
service “as per Notification No.
25/2019(CTR) Dated 30-09-2019.
·
This notification is specifically
applied to granting of alcoholic liquor license and has no applicability in
relation to grant of other licenses for fees where GST is payable.
(Circular No.121/41/2019 dated
11.10.2019)
2.
. Restriction for availing
upto 20% of ITC for invoices not reflected in
G STR-2A:-
(Notification
No.49/2019 Central Tax dated 09.10.2019)
·
Input tax credit claimed
in GSTR-3b in respect of vendors who have not uploaded invoice
details at GST portal shall not exceed 20% of the total eligible credit.
·
Regular matching of ITC with the
details available in GSTR-2A is now necessary.
·
Follow-up with non-compliant vendors
to be done on a regular and priority basis now.
·
This particular requirement has
been proposed to be implemented from the current month of October 2019.
·
Example:
1. Total ITC eligible Rs.50000
2.
ITC of which invoices received but not uploaded in 2A Rs.20000
3.
ITC on Invoices eligible for ITC out of 2 above Rs.4000
4.
Net ITC available for claiming in GSTR-3B Rs.34000
(ITC which has
been uploaded in 2A – Rs.30000 + 20% of ITC not uploaded in 2A – Rs.4000)
3. .
Extension in time limit of furnishing TRAN-1 & TRAN-2:-
·
In respect of
registered persons who could not submit the said declaration by the due date on
account of technical difficulties on the common portal and in respect of whom
the Council has made a recommendation for such
extension.
·
Now, the last date
has further been extended to December 31, 2019 for submitting the declaration
electronically in FORM GST TRAN-1.
·
Correspondingly,
amendment has also been made in sub-rule (4), in clause (b), in sub-clause
(iii), in the proviso, in order to extend the date of FORM GST TRAN-2 to
January 31, 2020.
4. .
Annual GSTR-9 return for taxpayer having turnover below 2 crore:-
·
GSTR 9 Annual Return
for Turnover less than 2 Crore, is optional, and if taxpayer chose not to filed
before 30th November it would be deemed to be filed on due date.
·
It means if anyone
chose not to file annual return within due date for the reason that your
turnover was below 2 crore, it will be presumed you have filed annual return.
In that case, it may be auto populate data annual return or it may be summary
of GSTR 3B and GSTR 1 summary deemed to be annual return.
·
So, auto populate
data from GSTR-3B & GSTR-1 will be presumed to be annual return GSTR 9 and
later on one will not have option to correct
it.
5. . AAR And Judicial Decisions:-
(i) i) GST @18% o n the
supply of desktop consisting together of CPU, monitor, keyboard, a nd mouse: -
(Applicant – HP India Sales (P.) Ltd)
The invoice is raised for “Desktop
Computer”, though each of the parts is listed with a serial number as per the
specification. It is further seen that the applicant has classified under CTH
84715000. The price list describes the product as “HP Desktop Pro an MT
(Business Tower Desktop).
The rate of GST applicable to a
supply made by the applicant of desktops consisting together of CPU, monitor, keyboard, and mouse
classifiable under CTH 8471 is taxable @ 9% CGST as
per Notification No. 01/2017-C.T. (Rate)
dated 28.06.2017 & 9% -SGST
under Notification No.II (2)/CTR/532(d-14)/2017 vide G.O.
(Ms) No. 72 dated 29.06.2017 as amended if all the units are supplied together
with the CPU in a single supply.
(ii)
i) AAR On applicability of
GST on the advisory management fee
received in Indian & F oreign
currency:-
Applicant was appointed as an investment manager of AIF fund and its professional services are rendered
to the said fund which is separate legal entity from its investors/
contributors. A recipient is the one who is liable to pay for services
received. 'Person liable to pay' cannot be equated with 'Person who has paid'.
The receipt of fee by the applicant from the investors is probably an internal arrangement which cannot be used to say that services have been rendered to the investors, in fact
services have always been rendered to AIF
Since the location of both, the
applicant and the AIF are in India, the place of supply is to be determined by
applying Sec. 12 of the IGST Act, 2017. As per Section 12(1) of the said Act,
this Section shall apply to determine the place of supply of services where the
location of the supplier of services and the location of the recipient of
services is in India.
(iii) i) Patna High-court decision for not imposing penalty for ineligible
ITC availed but not u tilised:-
(Applicant – Commercial
Steel Engineering Corporation)
The Patna High Court holds that
"ITC availed" but not utilized for tax payment doesn't invite penal consequences of Section 73 i.e. no interest payment
on merely ITC availed but not utilized. Distinguishes Supreme Court
judgment of Ind Swift Laboratories.
(iv) v) Allahabad High-court decision for no requirement of hard copy of
e-way bill:- (Applicant – Bhumika Enterprises)
The High court ruled that the consignment need not be
supported with the hard copy of the E- Way bill as the current Goods &
Service Tax laws permits possession of digital copies. E-way bills can also be
stored in electronic form on a mobile phone or another device.
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