NOTIFICATIONS
Extension in time limit to raise invoice for goods supplied under ‘sale on approval’ mode
Where the time limit to raise invoice in respect of goods sent on approval, in terms of S. 31(7) of the CGST Act, 2017, falls during March 20, 2020 to October 30, 2020 and such invoice has not been raised, time limit to raise such invoice shall be extended to October 31, 2020.
Notification No. 66/2020-CT dated September 21, 2020
Capping/waiver of late fee payable in respect of delayed filing of GSTR-4 for the quarters from July 2017 to March 2020
Late fee in respect of delayed filing of return in Form GSTR-4 for the quarters July 2017 to March 2020 shall stand waived (where there is no tax liability) or capped at INR 500/- i.e. INR 250/- each for CGST and SGST (in case of tax liability) provided such returns are furnished between the period September 22, 2020 to October 31, 2020.
Notification No. 67/2020-CT dated September 21, 2020
Capping of late fee for delayed filing of GSTR-10
Late fee in respect of delayed filing of return in Form GSTR-10 shall be capped at INR 500/- i.e. INR 250/- each for CGST and SGST provided such return is furnished during the period September 22, 2020 to December 31, 2020.
Notification No. 68/2020-CT dated September 21, 2020
COURT RULINGS
Detention of goods and recovery of GST with penalty is not correct when goods were merely stock transferred to additional place of business within same state
Where it is established that petitioner has additional place of business in the same state and goods were being transported from its corporate office to such additional place of business (within the same State), it cannot be said that petitioner was involved into any illegal activity. Hence tax along with penalty cannot be recovered in respect of the goods detained. Department was directed to refund the amount recovered as tax and penalty along with applicable interest to the petitioner.
M/s Same Deutzfahr India Private Limited v. State of Telangana (Telangana HC)
Sale of duty free goods at duty free shops (‘DFSs’) at departure area of airport are export and hence zero rated supplies
All the DFSs are located at international airports which are beyond the customs frontiers of India, and hence would not be within the custom frontiers of India. When any transaction takes place outside the customs frontiers of India, it is said to have taken place outside India also. In terms of provisions of S. 2(11) of Customs Act read with Article 286 of Constitution of India, such transaction would be said to have taken place outside India. Accordingly, supply to outbound passenger constitutes exports by DFSs. Consequently, it shall be treated as zero rated in terms of S. 16 of the IGST Act and hence, eligible for refund of accumulated ITC.
Cial Duty Free and Retail Services Limited v. Union of India (Kerala HC)
Rule 90(3) of the CGST Rules providing for rectified refund application to be treated as ‘fresh’ application has been challenged
Rule 90(3) of Rules which treats rectified refund application as fresh application has been challenged on the grounds of being arbitrary, illegal and ultra vires S. 16. Further, it has been contended by the petitioner that rectification of deficiencies should not be treated as submission of fresh application for the purposes of computation of period of limitation for applying refund. Also, Issuance of deficiency memo effectively results in rejection of refund application without giving any opportunity of hearing to the applicant. Further, Interest entitlements (in case of delayed refund) are computed from the date of filing of rectified application filed on the receipt of deficiency memo, which deprives them of their right of claiming interest on refund from the date of initial application. Notice has been issued to the Government and matter has been listed for hearing on December 09, 2020.
Insitel Services Private Limited v. Union of India & Ors. (Delhi HC)
CESTAT RULINGS
Mere delayed entries in books of accounts for debited CENVAT ledger for payment of service tax cannot be treated as delayed payment of service tax
Where service tax liability has been discharged by debiting CENVAT ledger on monthly basis, however such debit is done in books of accounts every six months, Department’s view that it amounts to delayed payment of service tax cannot be held correct. Since the appellant has debited its CENVAT ledger on monthly basis but passed such entries cumulatively after six months, it can at the best be treated as procedural irregularity and hence, cannot be
equated to statutory violations. The manner of keeping books of accounts alone, in absence of any statutory violation, is not enough to conclude that there was any delayed payment of service tax.
M/s UFO Moviez India Limited v. Commissioner of CGST & Central Excise, Mumbai East (Mumbai CESTAT)
ADVANCE AUTHORITY RULINGS
Property taxes and other statutory levies not deductible from the value of taxable supply involving renting of immovable property
In terms of S 15(2) of the CGST Act, any taxes, duties, cesses, fee and charges, levied under any law for the time being in force shall be included in the value of supply. Property tax is levied under Karnataka Municipality Act, 1964 and hence is a tax levied under such law. Accordingly, the same shall be includible in value of supply of renting of immovable property services. Further, where security deposit has been taken in respect of renting of property, notional interest shall be includible in the value of supply only where such notional interest influences the value of supply and is accordingly leviable to GST along with monthly rental amount.
M/s Midcon Polymers Private Limited (Karnataka AAR)
OTHER UPDATES
Administrative instructions for recovery of interest on net cash liability w.e.f. July 01, 2017
Instructions have been issued by CBIC whereby field formations have been instructed to recover interest only on net cash liability for the period July 01, 2017 to August 31, 2020. Further, where SCN have been issued on gross tax, the same has to be kept in call book till the retrospective amendments is S. 50 of CGST Act are carried out.
CBIC Instruction vide F. No. CBEC-20/01/08/2019-GST dated September 18, 2020
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.
