NOTIFICATIONS
Revised format/schema for e-invoicing issued by CBIC
Revised format/schema under GST in Form GST INV-01, for the taxpayers whose aggregate turnover in a financial year exceeds INR 500 crore, has been issued. Also, Special Economic Zones (‘SEZ’) units have been excluded from generating e-invoices. Revised schema to come into effect from October 01, 2020.
Notification No. 60/2020-Central Tax dated July 31, 2020
Continuation in levy of safeguard duty on import of Solar cells whether or not assembled in modules or panels
Levy of safeguard duty, on imports of solar cells whether or not assembled in modules or panels, when imported from specified countries, shall continue for one more year.
Notification No. 02/2020-Customs (SG) dated July 29, 2020
CIRCULARS
Second phase of faceless assessment under Customs to be introduced
Second phase of all India roll-out of faceless assessment under Customs shall begin w.e.f. August 03, 2020 by including Delhi and Mumbai Customs zones. Further, scope of faceless assessment already implemented at Chennai and Bengaluru Customs zones shall be extended.
Circular No. 34/2020-Customs dated July 30, 2020
ADVANCE AUTHORITY RULINGS
Activity of design of data Centre, supply of equipment, transport and delivery to sites, training, installation, testing and commissioning of such equipment is a composite supply
Where the statement of work activities clearly bifurcates the contract, where major part of contract is supply of goods, into supply of goods and supply of services but supplies are naturally bundled and are supplied in conjunction with each other, the same shall be treated as composite supply. Payments against the goods sold are separately received by the supplier. Further, goods supplied under the contract are used by the supplier to provide services of installation and commissioning of data centre and without such goods services cannot be supplied, it shall be treated as supply of goods and services in conjunction with each other, where principal supply is of goods.
M/s Prasa Infocom & Power Solutions Private Limited (Maharashtra AAR)
COURT RULINGS
Best judgment assessment can be done immediately after detection of failure to file returns, despite of service of notice
Section 62 provides that the order for assessment under the said section shall be issued within 5 years from the date specified for filing annual return for the year under Section 44. It does not mandate that the steps for completing the assessment should be initiated only after December 31, following the concerned financial year in which the default of non-filing occurs. The time limit as provided under section 62 is the outer limit within which the assessment has to be completed and assessment can be done immediately on detection of the failure to file the return despite of service of notice.
Amani Machine Centre v. The State Tax Officer (Kerala HC)
Transitional credit cannot be denied in the absence of Credit Transfer Document (‘CTD’)
Transitional provisions contained under Section 140(3) nowhere require the submission of CTD in order to claim credit of excise duty paid on goods. Where petitioners are not having any CTD but have produced on records the copies of invoices issued by the dealers along with the copies of invoices issued by the manufacturer corresponding to such invoice along with chassis number of vehicle sold, it can easily be verified if the excise duty has actually been paid in respect of such goods. If department is satisfied on the basis of such verification, the transitional credit claimed by the petitioner should be allowed.
Downtown Auto Private Limited v. Union of India (Gujarat HC)
Taxpayer is entitled to refund of excess Central Sales Tax (‘CST’) paid where the burden of such tax has not been passed on the other person
Where the contract of sales is on all inclusive basis with a fixed contracted price and tax computation in respect of such sales is to be done on reverse mode, it cannot be said that the seller has collected the tax amount from the buyer separately. Even otherwise, the provisions contained under Central Sales Tax Act do not contemplate any power to forfeit the refund amount by the Revenue. Hence, in the absence of any such power, taxpayer is entitled to refund of CST paid in excess.
State of Gujarat v. Advance Systek Private Limited (Gujarat HC)
Input tax credit for the purposes of refund under inverted duty structure in terms of Rule 89(5) shall include credit pertaining to input services also
Meaning of Net ITC, for the purposes of refund on account of inverted duty structure, as given in explanation to Rule 89(5), has been held as inconsistent with the provisions contained under Section 54(3) of the CGST Act, 2017.
Accordingly, it has been held that, in case of inverted duty structure, input services, instead of inputs only, shall also be eligible for refund
VKC Footsteps India Private Limited v. Union of India (Gujarat HC)
GST APPELLATE AUTHORITY RULINGS
Transfer of fixed assets from one branch to another branch, both having same GSTIN, is a supply of goods requiring compliance to e-way bill provisions
Transfer of business assets is considered as supply of goods in terms of Entry 4 of Schedule II appended to the CGST Act, 2017. Hence, GST is leviable on such supply and the transaction shall also comply with the e-way bill provisions. Imposition of tax and penalty on non-compliance of e-way bill provisions is hereby upheld.
M/s Aadhaar Wholesale Trading & Distribution Limited (GSTAA Jaipur)
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 assume no responsibility thereof.
