Key GST and Customs Updates

Regulatory Highlights

• DIN Not Needed on Portal Communications: Documents issued via the GST portal with a Reference Number (RFN) are valid even without a Document Identification Number (DIN).

• Refund Applications Fixed for QRMP Taxpayers: Earlier technical issues for Quarterly Return Monthly Payment (QRMP) scheme taxpayers have been resolved.

• Returns Barred After 3 Years: From July 2025, returns (e.g., GSTR-1, GSTR-3B) can't be filed after 3 years from the due date.

• Manual Amnesty Applications: Taxpayers can now file amnesty applications manually if the portal isn't working.

• SPL-01/SPL-02 Filing: Taxpayers can file these forms even if payment details don't auto-populate, but must upload proof manually.

SEZ (Special Economic Zone) Reforms

• Boost for Semiconductors & Electronics:

  • Minimum land requirement cut from 50 to 10 hectares.

  • Domestic sales allowed with duties.

  • Free goods now included in Net Foreign Exchange (NFE) calculations.

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⚖️ Court Rulings of Interest

• Penalty Proceedings Continue Separately: Even if a GST demand is dropped under Section 74, penalty proceedings under Section 122 can continue.

• Animal Feed Classification: Supreme Court ruled that folic acid feed premixes fall under HSN 2309 90 90, not 2936.

• Incorrect GST Portal Tab Usage: Orders uploaded incorrectly must be set aside; personal hearings are mandatory.

• Single Appeal for Multiple Years: Allowed if a single show cause notice and order covers multiple years.

• AAAR Limited to AAR Scope: Appellate Advance Ruling Authority can’t address issues beyond what was raised with AAR.

• Cash Credit Account Not “Property”: Can’t be attached under GST provisions.

• Retailer Discounts Not Taxable Services: Trade discounts from manufacturers to retailers are not GST-applicable service payments.

• EDD Not Customs Duty: Extra Duty Deposits are security deposits, and time limits for customs duty refunds don’t apply.

• Refund of ITC on Business Closure: Businesses that shut down can claim unutilized input tax credit refunds.

• Speaking Order Needed for Re-Assessment: Customs re-assessments require proper reasoned orders under Section 17(5).