TMI BlogRECENT DEVELOPMENTS IN GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... RECENT DEVELOPMENTS IN GST - By: - Dr. Sanjiv Agarwal - Goods and Services Tax - GST - Dated:- 5-10-2023 - Eight key infrastructure sectors have recorded a higher growth of 12% in August, 2023 of which five sectors have shown growth in double digits. These are cement, coal, crude oil, electricity, fertilizers, natural gas, petroleum refinery products and steel. The levy of GST on online gaming and casinos has commenced in India w.e.f. 1 st October, 2023 with the passage of amendment Act and its notification to be effective from 1 st October, 2023, though some states / UTs are yet to enact amendments in respective state legislations. On the other hand, such assessees intend to seek legal shelter against the newest GST levy which according to industry is being taxed at a very high rate of tax, viz, 28 percent on gross valuation of supply. It is considered as a retrogatory move impacting present business, profit, liquidity, employment and so on. There is a sense of uncertainty amongst risk investors too. An important area of concern also emanates from the fact the tax authorities are considering the amendment as retrospective though it has been made effective from 1 st Oc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tober, 2023 only. It appears that GST taxation of online gaming is in for a being legal battle. According to one guess, tax demand on e-gaming companies may go upto INR 1.5 trillion. Government has already issued show cause notices to the online gaming / casino players. The valuation rules and the applicability of 2023 amendments have since been notified w.e.f. 1 st October, 2023. CBIC has issued Notifications under CGST / IGST / UTGST laws to give effect to recent amendments to enforce levy of GST on online gaming and casino supplies. The rules relating to registration of non-resident taxable person have also been notified including imports. The Government intends to review the same after six months. It may be noted that the Union of India is in appeal before Apex Court on taxation of online gaming against a Karnataka High Court order quashing a demand of Rs. 21,000 crore against Gameskraft. The high court order has since been stayed. Further digital foreign firms shall be liable to tax for OIDAR services provided to unregistered recipients of service such as cloud, gaming, music, advertising etc. Content streaming platforms, search engines etc will come into tax net. No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tification has also been insured to the effect that there will be no levy of IGST on ocean freight w.e.f. 1 st October, 2023. The gross GST revenue collected in the month of September, 2023 is Rs.1,62,712 crore out of which CGST is Rs.29,818 crore, SGST is Rs.37,657 crore, IGST is Rs.83,623 crore (including Rs.41,145 crore collected on import of goods) and cess is Rs.11,613 crore (including Rs.881 crore collected on import of goods). Rs.9,92,508 crore is the gross GST collection for the first half of FY 2023-24 marks 11% Y-o-Y growth. Average monthly gross GST collection in FY 2023-24 is at Rs. 1.65 lakh crore with 11% Y-o-Y growth. The revenues for the month of September, 2023 are 10% higher than the GST revenues in the same month last year. During the month, the revenues from domestic transactions (including import of services) are 14% higher than the revenues from these sources during the same month last year. It is for the fourth time that the gross GST collection has crossed Rs.1.60 lakh crore mark in FY 2023-24. Special Procedure for Pan Masala etc CBIC has amended Notification No. 30/2023-CT dated 31.07.2023 . Accordingly, Notification No. 30/2023-CT date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 31.07.2023 specifying the special procedure to be followed by a registered person engaged in manufacturing of Pan Masala, Tobacco, Cigarettes, Hookah etc., has been amended to provide that the said special procedure shall become effective from 01.04.2024. (Source: Notification No. 47/2023-Central Tax dated 25.09.2023 ) CGST Notifications Following new Notifications have been issued recently: Notification No. Date Subject 47/2023-Central Tax 25.09.2023 Seeks to amend Notification No. 30/2023-CT dated 31st July, 2023 48/2023-Central Tax 29.09.2023 Seeks to notify the provisions of the Central Goods and Services Tax (Amendment) Act, 2023 49/2023-Central Tax 29.09.2023 Seeks to notify supply of online money gaming, supply of online gaming other than online money gaming and supply of actionable claims in casinos under section 15(5) of CGST Act 50/2023-Central Tax 29.09.2023 Seeks to amen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Notification No. 66/2017-Central Tax dated 15.11.2017 to exclude specified actionable claims 51/2023-Central Tax 29.09.2023 Seeks to make amendments (Third Amendment, 2023) to the CGST Rules, 2017 in supersession of Notification No. 45/2023 dated 06.09.2023 11/2023-Central Tax (Rate) 29.09.2023 Seeks to amend Notification No 01/2017- Central Tax (Rate) dated 28.06.2017. IGST / UTGST Notifications Following new Notifications have been issued recently: Notification No. Date Subject 02/2023- Integrated Tax 29.09.2023 Seeks to notify the provisions of the Integrated Goods and Services Tax (Amendment) Act, 2023 03/2023-Integrated Tax 29.09.2023 Seeks to notify the supply of online money gaming as the supply of goods on import of which, integrated tax shall be levied and collected under sub-section (1) of section 5 of the Integrated Goods and Services Tax Act,2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 04/2023-Integrated Tax 29.09.2023 Seeks to provide Simplified registration Scheme for overseas supplier of online money gaming 11/2023- Integrated Tax (Rate) 26.09.2023 Seeks to amend notification No. 8/2017- Integrated Tax (Rate) dated 28.06.2017 to implement decisions of the 50th GST Council. 12/2023- Integrated Tax (Rate) 26.09.2023 Seeks to amend notification No. 09/2017- Integrated Tax (Rate) dated 28.06.2017 to implement decisions of the 50th GST Council. 13/2023- Integrated Tax (Rate) 26.09.2023 Seeks to amend notification No. 10/2017- Integrated Tax (Rate) dated 28.06.2017 to implement decisions of the 50th GST Council. 14/2023- Integrated Tax (Rate) 29.09.2023 Seeks to amend Notification No 01/2017- Integrated Tax (Rate) dated 28.06.2017. 11/2023-Union Territory Tax (Rate) 29.09.2023 Seeks to amend Notification No 01/2017- Union territory Tax ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rate) dated 28.06.2017 . Amendment in Taxability relating to Ocean Freight CBIC has amended Notification No. 8/2017-Integrated Tax (Rate) dated 28.06.2017 . Presently, 5% rate is prescribed for transport of goods in a vessel including services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India. Now, the words including services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India , have been omitted. Thus, 5% rate would apply to transport of goods in vessel. This is a consequent amendment in relation to Ocean Freight under CIF contracts. This shall come into force w.e.f. 1 st October, 2023. (Source: Notification No. 11/2023-Integrated Tax (Rate) dated 26.09.2023 ) Exemption to Ocean Freight CBIC has amended exemption related entry in Notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication No. 9/2017- Integrated Tax (Rate) dated 28.06.2017. Presently, in entry No. 10, services received from service provider located in a non-taxable territory are exempt but such exemption does not apply to online information and database access or retrieval services received by persons specified in entry (a) government, local authority, governmental authority or entry (b) ( 12AA entities of Income Tax Act, 1961 ) or services by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India received by persons specified in the entry. Now, it has been specifically provided that the exemption shall not apply to online information and database access or retrieval services received by persons specified in item (a) or item (b). The amendment comes as a consequence of Supreme Court ruling in UNION OF INDIA ANR. VERSUS M/S MOHIT MINERALS PVT. LTD. THROUGH DIRECTOR - 2022 (5) TMI 968 - SUPREME COURT . This shall come into force w.e.f. 1st October, 2023. (Source: N otification No. 12/2023-Integrated Tax (Rate) dated 26.09.2023 ) No RCM on Ocean Fright CBIC has amende ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Entry No. 10 in Notification No. 10/2017- Integrated Tax (Rate) dated 28.06.2017 relating to reverse charge mechanism on Ocean Fright under CIF contracts. Presently, services supplied by a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India are covered under reverse charge mechanism to be paid by importer. Now, entry No. 10 has been omitted. The amendment comes as a consequence of Supreme Court ruling in UNION OF INDIA ANR. VERSUS M/S MOHIT MINERALS PVT. LTD. THROUGH DIRECTOR - 2022 (5) TMI 968 - SUPREME COURT . This shall come into force w.e.f. 1st October, 2023. (Source: Notification No. 13/2023-Integrated Tax (Rate) dated 26.09.2023 ) Implementation of section 16(4) of IGST Act related to restriction on export of goods on payment of IGST CBIC has issued Circular for Implementation of Section 16(4) of IGST Act related to restriction on export of certain goods on payment of IGST and coverage under refund mechanism. Section 16(4) of IGST Act, 2017 on zero rated supply is effective from 01.10.2023 vide Notification No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 27/2023-CT dated 31.07.2023. In terms of Notification No. 1/2023-IT dated 31.08.2023, all goods or services (except the goods specified in column (3) of the Table in Notification) may be exported on payment of integrated tax on which the supplier of such goods or services may claim the refund of tax so paid, i.e., may be exported only under LUT. A backend functionality has been developed to restrict IGST refund route for the goods as specified in the above notification. Through the said functionality, changes have been made in the system of filing of shipping bills and during amendment, with respect to the commodities mentioned in the said notification. Since IGST refund is paid at shipping bills level, the checks have been enabled at shipping bill level. In cases where a shipping bill contains single or multiple invoices for which IGST have been paid and even if one invoice contains an item which is restricted for export on payment of IGST under section 16(4) of the IGST Act , the shipping bill containing such items will not be allowed to be filed. It has been advised especially for manual Shipping Bills in Non-EDI ports or even at EDI ports, or for export thro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh posts/courier, to not allow export of such notified goods on payment of IGST so as to ensure that no undue benefits are taken by exporting such notified goods in accordance with the provisions of section 16(4) of the IGST act 2017 . (Source: CBIC Circular No. 24/2023-Customs dated 30.09.2023 ) Track Application Status in GST Registration GSTN has introduced Track Application Status Tab in GST Registration Process. When a person needs to file further clarifications, they can log in with their Temporary Reference Number (TRN) and access this tab. Prior to this tracking the application status had to be done separately from the Registration Dashboard on the GST Portal. (Source: GSTN Portal dated 23.09.2023) GSTN approved accounting Billing Software GSTN has released the list of Central Government approved accounting and billing software These products are being made available free of cost to all taxpayers with annual turnover below INR 1.5 crore These are as follows: S.No. Name of Company Product Name Cloud /On-prem Mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bile App Try Here 1. Adaequare Info Private Limited uBooks Cloud Yes https://ubooks.in/ 2. Cygnet Infotech Private Limited Cygnet FACE On Prem No https://www.cygnet-face.com/ 3 Focus Softnet Private Limited FocusLyte Cloud No https://www.focuslyte.in/ 4 IRIS Business Services Limited CaptainBiz Cloud Yes https://www.captainbiz.com/ 5 Relyon Softech Limited Saral Accounts Cloud Yes https://relyonsoft.com/products/saral-accounts/ 6. Zoho Corporation Private Limited Zoho Books Cloud Yes https://www.zoho.com/i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n/books/ (Source: GSTN Portal dated 26.09.2023) DRC 01C for ITC Mismatches GSTN has enabled Form DRC-01C to deal with input tax credit (ITC) mismatches between GSTR - 2B and GSTR-3B This is as per newly inserted rule 88D of the Central Goods and Services Tax Rules, 2017 vide Notification No. 38/2023-Central Tax dated August 4, 2023 . Rule 88D provides for manner of dealing with difference in input tax credit available in auto-generated statement containing the details of input tax credit and that availed in return. (Source: GSTN Portal dated 02.10.2023) 6-Digit HSN Codes in E-invoicing / E-way bills deferred GSTN has issued an advisory to postpone the mandatory implementation of the 6-Digit HSN Code in e-Invoices and e-Way Bills in India. The 6-Digit HSN Code is used to classify goods and services for taxation purposes. The implementation of the 6-Digit HSN Code was initially scheduled to be mandatory from April 1, 2021, but the GSTN has decided to defer this requirement for the time being. The new implementation date for the 6-Digit HSN Code will be announced later. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Source: GSTN Portal dated 03.10.2023) GST Collection in September, 2023 Rs. 9,92,508 crore is the gross GST collection for the first half of FY 2023-24 marks 11% Y-o-Y growth. Average monthly gross GST collection in FY 2023-24 is at Rs. 1.65 lakh crore with 11% Y-o-Y growth. Rs. 1,62,712 crore is gross GST revenue collected during September 2023; records 10% Year-on-Year growth Top 5 states in GST collection are Maharashtra, Karnataka, Tamil Nadu, Gujarat and Haryana. Top 5 states from growth perspective on YoY basis are Ladakh, J K, Telangana, Arunachal Pradesh and Karnataka. (Source: GST collection PIB Release ID 1962701 dated 01.10.2023) - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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