NOTIFICATIONS
Extended time period allowed to issue removal of difficulty order
Time limit to issue removal of difficulty order, to remove any difficulty arising in giving effect to any provisions of the CGST Act, 2017, in terms of Section 172 of the Act has been extended from 3 years to 5 years from the date of commencement of the Act. Provision to come in effect from June 30, 2020.
Notification No. 49/2020-Central Tax dated June 24, 2020
Rule 7 of CGST Rules amended to provide for the tax rates applicable in case of composition levy
CGST (7th Amendment) Rules, 2020 have been introduced to amend Rule 7 of the said rules wherein tax rates applicable in case composition levy with effect from April 01, 2020 have been prescribed.
Notification No. 50/2020-Central Tax dated June 24, 2020
Rate of interest for delayed payment of taxes for various tax periods for specified classes of taxpayers
Rate of interest applicable in case of delayed payment of taxes for various tax periods ranging from February 2020 ~ July 2020 has been prescribed. Taxpayers have been divided into those having turnover of more than INR 5 crores and those having turnover up to INR 5 crores in the preceding financial year.
Notification No. 51/2020-Central Tax dated June 24, 2020
Conditional waiver of late fee for delayed filing of GSTR 3B has been provided for various classes of taxpayers for different tax periods
Taxpayers having turnover of more than INR 5 crores and upto INR 5 crores in preceding financial year have been offered immunity from late fee applicable for delayed filing of GSTR 3B for the tax periods ranging from February 2020 ~ July 2020 subject to the conditions that such GSTR 3B are filed on or before the specified date. Further, maximum ceiling has been prescribed as INR 500/- on late fee where returns (having tax liability) for tax periods July 2017 ~ January 2020 have not been filed within due dates but are filed during the period July 01, 2020 ~ September 30, 2020. Returns having nil tax liability shall not attract any late fee levy.
Notification No. 52/2020-Central Tax dated June 24, 2020
Conditional waiver of late fee on delayed filing of GSTR-1 prescribed
Waiver of late fee leviable on account of delayed filing of GSTR-1 has been provided for the monthly tax periods March 2020 ~ June 2020 or quarter ending March 2020 and June 2020, where returns for the said periods are filed on or before the dates as prescribed.
Notification No. 53/2020-Central Tax dated June 24, 2020
Extended due dates to file GSTR 3B for the month of August 2020 have been prescribed
Due dates to file GSTR 3B for the month of August 2020 for the taxpayers having turnover up to INR 5 crores have been prescribed.
Notification 54/2020-Central Tax dated June 24, 2020
CIRCULARS
Clarifications on various measures announced by Government for providing relief to taxpayers
In terms of various notifications issued, certain relaxations with respect of interest and late fee have been provided. Circular clarifying the manner in which such interest or late fee leviable under the said notification are to be computed has been issued by CBIC.
Circular No. 141/11/2020-GST dated June 24, 2020
ORDERS
Extension in date of filing application for revocation of cancellation of registration for specified tax payers.
Due date to file application for revocation of cancellation of registration, where cancellation order was passed up to June 12, 2020 has been extended. Now, such application for revocation can be filed within 30 days from the date of service of such order or August 31, 2020, whichever is later.
Removal of Difficulty Order No. 01/2020-Central Tax dated June 25, 2020
APPELLATE AUTHORITY FOR ADVANCE RULING
Taxability of membership fee/subscription fee, admission fee collected by the club from its members
Where the appellant is not providing any specific facility or benefit to its members against the fee collected and such fee is entirely spent towards meetings and administrative expenditures only, it cannot be said that the appellant is carrying on any business. Once it is established that no business is being carried on, the same shall not be covered within the meaning of supply in terms of Section 7(1) of the CGST Act. Hence, the activities carried on by the appellant shall not be liable to GST.
Rotary Club of Mumbai Queens Necklace (Maharashtra AAAR)
Eligibility of input tax credit in respect of motor vehicle i.e. cash carry vans which are purchased and used for cash management business and supplied post usage as scrap
In the absence of subject money not being used as legal tender at any stage of performance of services by the appellant, what is being transported in the cash carry vans is not the money, but goods. Hence, money transported in cash carry vans is nothing but goods in the present case. Accordingly, credit in respect of such vehicle shall be admissible in terms of Section 17(5) (a) as vehicles are being used for the transportation of goods.
M/s CMS Info Systems Limited (Maharashtra AAAR)
Valuation in terms of Rule 32(5) shall apply to all second hand goods and classification of goods has nothing to be with eligibility of Margin scheme
The question as to eligibility of margin scheme has to be decided independently of fitment of the product. Rule 32(5) nowhere provides that it shall not apply in case of valuables or precious objects or object having antique value. The words used by the said rule are ‘second hand goods’ and where the words used by the statute are unambiguous and only one reasonable meaning can be given to them, such words have to be interpreted strictly and be given their natural or ordinary meaning. Hence, Rule 32(5) shall apply to all kinds of second hand goods irrespective of their classification.
Safset Agencies Private Limited (Maharashtra AAAR)
CESTAT RULINGS
Eligibility of CENVAT credit on the strength of supplementary invoices
An assessee is not entitled to avail the credit of services tax paid on the strength of supplementary invoices where it is case of fraud, collusion, suppression of facts etc. Where there is no fraud, collusion, suppression of facts etc., assessee shall be entitled to avail the credit on the basis of supplementary invoices issued.
M/s Dynamic Engineers & Consultants v. Commissioner of Central Excise and CGST, Udaipur (CESTAT Delhi)
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.
