CIRCULARS
Extension in relaxation under Customs laws w.r.t. submission of undertaking in lieu of bond due to extended period of lockdown
In terms of CBIC Circular 17/2020-Customs dated April 03, 2020, relaxations were provided whereby requirement of submission of bond under Customs Act, 1962 was temporarily relaxed up to April 30, 2020. The same was further extended to May 30, 2020 vide Circular 23/2020-Customs dated May 11, 2020. Now such relaxation has further been extended to June 15, 2020 subject to conditions, as provided earlier, to be complied with. Due date of submission of paper bond in lieu of which undertaking is temporarily accepted is extended to June 30, 2020. The relaxation given under the circular shall be subject to review by the Board at the end of lockdown period.
CBIC Circular No. 26/2020-Customs dated May 29, 2020
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CESTAT RULINGS
Refund of service tax paid in respect of membership fee for obtaining membership in trade association and insurance services should be allowed
Membership of NASSCOM (a trade association) is taken so that it could help assessee to keep themselves updated about the market situations. It helps the assessee to know trends in the market as well as legal position with regard to the business being carried on by them. As regards insurance services, such services were availed by the assessee to take director’s and officer’s liability policy. Such policies indemnify the loss of advancement of defence costs in the event the loss has resulted due to wrong act or wrong decision of the Directors and officers.
Hence, credit in respect of such services availed is eligible and accordingly should be allowed as refund.
M/s BNY Mellon Technology Private Limited v. Commissioner of GST & Central Excise (Chennai CESTAT)
License fee and royalty paid towards distribution rights is includible in assessable value of imported goods
Amounts, in the form of license fee and royalty, paid towards distribution rights are includible in the assessable value in terms of Rule 10(2) (c) of Customs Valuation (Determination of Value of Imported Goods) Rules, where such amounts are charged as a condition of sale of goods. Non-inclusion of license fee or guarantee shall be treated as mis-declaration of value and declarant shall be liable for confiscation and penalty in terms of the provisions contained under Customs Act, 1962.
M/s Moser Baer India Limited v. CC (II)- Airport Special Cargo, Mumbai (Mumbai CESTAT)
GSTN UPDATES
Facility for registration of IRP’s/ RP’s made available on GSTN Portal
Facility of registration for Insolvency Resolution Professionals (‘IRPs’) or Resolution Professionals (‘RPs’), appointed to undertake corporate insolvency resolution proceedings for corporate debtors, has been made available on GSTN Portal. Advisory as to the process of obtaining registration of such IRPs or RPs has also been provided on the Portal.
GSTN News and Updates dated May 27, 2020
Facility to transfer ITC to other units separately registered within the same state made available
In terms of Rule 41A of CGST Rules, 2017, facility to transfer ITC to other units separately registered within the same state has been made available on the Portal. Such transfer can be made by filing Form GST ITC-02A within 30 days from the date of obtaining registration which shall be made in the ratio of assets held by the units at the time of registration. On filing of the Form GST ITC-02A, the transferee shall be required to accept the details after which ITC shall be credited to the electronic credit ledger of the recipient.
ADVANCE AUTHORITY RULINGS
Supply of food to students of a school for monthly consideration is covered under exemption notification
Preparation of food in the school premises and supply of it to the students of school (being a primary school) for a monthly consideration shall be treated as catering services provided to an educational institution and hence covered within the Entry 66 of Notification no. 12/2017-Central Tax (Rate) dated June 28, 2017 i.e. exemption notification and hence, exempt from GST. Further, supply being an exempt supply, provisions concerning TDS, as contained under Section 51 of CGST Act, 2017, are not applicable.
M/s Mahalakshmi Mahila Sangha (Karnataka AAR)
Disclaimer
Information contained herein are only for reference purposes and are based on the information publicly available as on the date of this publication. The author takes no responsibility for its reliability and accuracy. It is advised to take appropriate legal/professional advice before undertaking any business activity or otherwise based on the above. Neither author nor Yes GST assumes assume no responsibility thereof.
