RECENT DEVELOPMENTS IN GST

[Dr. Sanjiv Agarwal]

38^th meeting of GST Council is likely to be held next week on 18^th December 2019. It will, inter alia look at rationalization of GST rates and possibility of hike in compensation cess. It is also likely to review the shortfall is few state’s tax revenues. With revenue from GST below expectation, the Centre is finding it difficult to pay States for the shortfall in revenue from the Compensation Fund. With revenue mop-up below expectation, the Goods and Services Tax (GST) rates and slabs could be raised to 6/8 percent and 15 per cent.

Many quarters have started voicing for holistic review of GST law and rules including rates. In fact, the present GST cannot be termed as a perfect GST as it does not include all products and services, there are barriers in input tax credit and GST rates are every now and then distorted. It is high time that the GST Council look at reviewing GST in a comprehensive manner now.

The Parliamentary Standing Committee on Finance has asked the Centre to address the issue of dwindling goods and services tax (GST) collections, which the finance ministry blamed for delay in the compensation to the states. It has also asked the government to prevent misuse of input tax credit (ITC) and take measures for increasing GST compliance.

Circular No. 107-GST  dated 18.07.2019 no more applicable

• CBIC Circular No. 107/26/2019-GST dated 18.07.2019 clarified issues in relation to taxability of supply of Information Technology enabled Services  (ITeS) under GST.
•  CBIC has now withdrawn the said controversial Circular ab-initio implying that such clarification on intermediary services / back office services operative since beginning.

(Source: Circular No. 127/46/2019-GST dated 04.12.2019)

Expanding the Sabka Vishwas Scheme, 2019

• CBIC has expanded the scope of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS) to the following Legislations

1. Cine-Workers Welfare Cess Act, 1981
2. Industries(Development and Regulation) Act, 1951
3. Sugar Export Promotion Act, 1958
4. Sugar (Regulation of Production) Act, 1961
5. Tea Act, 1953
6. Finance Act, 2001
7. Finance Act, 2005
8. Finance Act, 2010

(Source: Notification  No. 6/2019-CE (NT) dated 04.12.2019)

Last date for filing of appeal to GSTAT

• Presently, assessees / taxpayers are not able to file appeals before the second appellate forms, GST Appellate Tribunal (GSTAT) as GSTAT’s are not yet set up in all states / UTs.
• Appeals are required to be filed within three (3) monthly of the communication of orders to be appealed.
• The period of three months shall be reckoned from the date of communication or order or date on which President or State President of the Tribunal as the case may be, after its constitution enters the office, which even is later.

(Source: Removal of Difficulty Order No. 9/2019-Central Tax dated 03.12.2019)

Notified Benches of GST Appellate Tribunal

Following State/ Area Benches of the Goods and Services Tax Appellate Tribunal (GSTAT) notified:

•     Mizoram- Aizawl

•     Rajasthan- Jaipur and one area benches at Jodhpur

•     Karnataka- Two area benches at Bengaluru

(Source: Department of Revenue S.O. 4332(E) dated 29.11.2019)

Reset Option in GSTR-3B

• The GSTN has enabled the option to “RE-SET Return” in monthly GSTR-3B on GST Portal.
• It (RE-SET Return) shall be filed when GSTR return has been  submitted but not filed.
• It will provide relief to taxpayers in the form of opportunity to correct figures in 3B return, if any error is there, before final submission.
• For process, refer to User Manual  on GSTN Portal

(Source: GSTN)

Unblocking the E-way Bill Generation Facility

  Application Statuses the various application statuses while issuing an order of acceptance /rejection for unblocking of E-way Bill generation facility:

• Order generation enqueue – When Order generation is pending with tax official
• Order of acceptance issued – When Order generated by tax Official for acceptance of unblocking of E-way Bill generation facility request for taxpayer
• Order of rejection issued – When Order is generated by tax Official for rejection of unblocking of E-way Bill generation facility request to taxpayer

(Source: GSTN)