NOTIFICATIONS
Extension in validity of e-way bill generated in terms of Rule 138 of CGST Rules
Validity of e-way bill generated (in terms of Rule 138 of CGST Rules) on or before March 24, 2020 and whose validity has expired on or after March 20, 2020, shall be deemed to have been extended to June 30, 2020.
Notification No. 47/2020-Central Tax dated June 09, 2020 to be effective from May 31, 2020
Extended time allowed for issuance refund order in terms of S. 54(7) of CGST Act
In case of issuance of notice for rejection of refund claim and where the time limit for issuance of refund order, in terms of S. 54(7), is falling during the period from March 20, 2020 to June 29, 2020, such time limit for issuance of order shall be extended to 15 days after the receipt of reply for the notice or June 30, 2020, whichever is later.
In terms of S. 54(7) of the CGST Act, order for refund is to be issued within 60 days from the date of receipt of application complete in all respect.
Notification No. 46/2020-Central Tax dated June 09, 2020 to be effective from March 20, 2020
Extension in date for transition under GST on account of merger of erstwhile Union Territories of Daman and Diu & Dadra and Nagar Haveli.
Due date of completion of transition (in terms of special procedure prescribed therefor) under GST on account of merger of erstwhile Union Territories of Daman and Diu & Dadra and Nagar Haveli has been extended to July 31, 2020 which was earlier prescribed as May 31, 2020.
Notification No. 45/2020-Central Tax dated June 09, 2020 to be effective from May 31, 2020
Provisions relating to Rule 67A allowing filing of return through SMS made effective
Provision of Rule 67A of CGST Rules providing for optional filing of NIL GSTR 3B through SMS have been made effective from June 08, 2020
Notification No. 44/2020-Central Tax dated June 08, 2020
Special Corona Fee levied on liquor sold in Delhi stands deleted
Rule 154 of Delhi Excise Rules has been amended and Special Corona Fee levied at the rate of 70 per cent of MRP on all categories of liquor sold through retail licensees for consumption “off” the premises, has been deleted with effect from June 10, 2020.
Delhi Notification no. F. 3(2)/FIN.(Rev-I)/2020/DS-VI/177 dated June 09, 2020
CIRCULARS
Clarification on applicability of GST on director’s remuneration
It has been clarified by CBIC that, where the director is an employee of the company, services rendered by such director shall be covered within the Schedule III of CGST Act and shall not be leviable to GST. Otherwise, the same shall be charged to GST and company shall be liable to pay GST under RCM. It is further clarified that where remuneration paid to director has been shown as ‘salary’ in the books of accounts and TDS has been paid under section 192 of Income Tax Act, 1961, such remuneration shall be treated as remuneration paid to director for his services as an employee of the company. Accordingly, the same shall not be chargeable to GST. Remuneration, paid to director which is declared in the books otherwise than salary and is subjected to deduction of tax under section 194J of Income Tax Act, shall be treated as consideration for services which are outside the scope of Schedule III and shall be chargeable to GST, wherein company concerned shall be liable to pay tax under RCM provisions
Circular no. 140/10/2020-GST dated June 10, 2020
Clarification on the issue relating to refund of accumulated ITC
CBIC has clarified that provisions of the Circular 135/05/2020-GST dated March 31, 2020, to the extent they restrict the refund of accumulated ITC in respect of invoices which are reflecting in GSTR-2A of the claimant, shall not apply in relation to refund of credit claimed in respect of import of goods, ISD invoices and taxes paid under reverse charge mechanism.
Circular no. 139/09/2020-GST dated June 10, 2020
COURT RULINGS
Allowance to file TRAN-01 manually as well as directions to Department to open the portal so as to enable filing of TRAN-01 before June 30, 2020
Where the assessee is not able to file TRAN-01 online since the concerned website is not functioning properly, the Department has been directed to accept such TRAN-01 application manually and also to reopen the portal enabling all the applicants including petitioners to file such TRAN-01 prior to June 30, 2020. It has further been directed by the court that the authorities responsible for such restoration of the website are to act on urgent basis in view of emergent pandemic situation so that online portal is opened for such filing at the earliest, positively before June 30, 2020.
SMVD Polypack Limited v. Commissioner of CGST and CX, Kolkata Norther Commissionerate 7 Ors. (Calcutta HC)
Goods and vehicle seized on account of non-amendment of e-way bill due to transhipment and lockdown situation, should be released provisionally on the basis on indemnity bond
Where goods were transhipped due to mechanical failure of vehicle carrying goods but e-way bill could not be amended immediately due to lockdown situation and the amended e-way bill was produced before the Officer, the vehicle and goods should, for fair ends of justice, be released on furnishing of an indemnity bond and relevant undertaking, though there are no provisions to release the seized goods on the basis of indemnity bond only.
M/s Sri Gopikrishna Infrastructure Private Limited v. State of Tripura (Tripura HC)
Validity of ex-parte order passed during COVID-19 pandemic
Because of pandemic COVID-19, the assessee could not remain present and an ex-parte order was issued. As the said order has been issued without hearing the assessee, it is a breach of principle of natural justice and accordingly the order has been quashed only on this ground. The tax authorities have been directed to pass a fresh order on merit after giving the assessee an opportunity of being heard.
Remankhan Belin v. State of Gujarat (Gujarat HC)
ORDERS
Name and designation of officer assigned for hearing appeals under S. 107 of Delhi GST Act, 2017
Names and designation of officers along with the zones or branches assigned for hearing appeals in terms of S. 107 of Delhi GST Act, 2017 have been specified.
Delhi Order F. No. IV/Misc./HR/GST/27/2015-16/Part file/2731-736
CESTAT RULINGS
Claim of refund from PLA (on account of it being not usable post July 01, 2017) cannot be denied on account of limitation
It is held that PLA deposit is nothing but ‘duty waiting to be debited’ and not ‘a duty under the Act’. Hence, limitation provisions would not apply to the same. PLA deposits are made by the taxpayers for future utilization and where the same could not be used on account of introduction of GST and there being no transitional provisions in respect of such deposit, the same should be refunded to the depositor.
Sun Ultra Tech Private Limited v. Commissioner, CGST, Excise & Customs, Bhopal (Delhi CESTAT)
Without laying down the principles as to how the value is to be arrived at and merely on account of similar/identical goods being imported at a higher price, value declared under Customs Valuation Rules, 2007 cannot be rejected.
It is not appropriate to reject the value declared in terms of Customs Valuation Rules, 2007 without laying down any principles as to how such value should be arrived at and merely on the ground that similar/identical goods are being imported by third parties at higher prices.
M/s Ebro Armaturen India Private Limited v. CCE Bangalore-I (CESTAT Bangalore Customs)
GST COUNCIL MEETING UPDATES
Reduction in late fee for past returns:
As a measure to clean up the pendency in return filing, late fee for non-furnishing of Form GSTR 3B for the period July 2017~January 2020 has been reduced/ waived as under:
- Late fee to be NIL where there is no tax liability
- In case of tax liability, maximum late fee capped at INR 500 per return
The reduced late fee shall apply for all GSTR 3B furnished between July 01, 2020 ~ September 30, 2020
Relief for small taxpayers for delayed filing of returns for the period February 2020 ~ April 2020
For taxpayers having turnover upto INR 5 crores (small taxpayers), delayed furnishing of return for the months of February 2020, March 2020 and April 2020 beyond the specified dates (staggered up to July 06, 2020) would attract a reduced rate of interest of 9 per cent instead 18 per cent till September 30, 2020.
Hence, no interest shall be levied for returns filed upto the specified due dates (staggered up to July 06, 2020) and thereafter reduced rate of interest at 9 per cent shall apply till September 30, 2020.
Relief for small taxpayers for subsequent periods i.e. May 2020, June 2020 and July 2020
In the wake of COVID-19 pandemic, for taxpayers having turnover up to INR 5 crores, further relief has been provided by way of waiver of late fee and interest if returns in Form GSTR 3B for the said months are furnished by September 30, 2020 (staggered dates to be notified for such filings)
One-time extension in period for seeking revocation of cancellation of registration
To facilitate taxpayers who could not get their cancelled GST registrations restored in time, an opportunity is being provided for filing of application for revocation of cancellation of registration up to 30.09.2020, in all cases where registrations have been cancelled till 12.06.2020.
Amendment in CGST Act, 2017 and IGST Act, 2017
Certain clauses of the Finance Act 2020 amending CGST Act, 2017 and IGST Act, 2017 are to be brought in force from June 30, 2020
Ministry of Finance, Press Release dated June 12, 2020
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