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Integrated Goods and Services Tax

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Clarification on applicability of Dynamic QR Code on B2C invoices

Clarification on applicability of Dynamic QR Code on B2C invoices

CBEC-20/16/38/2020 -GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi

Circular No. 165/21/2021-GST | Dated the 17th November, 2021

To,

The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners / Commissioners of Central Tax (All)
The Principal Directors General / Directors General (All)

Madam/Sir,

Subject: Clarification in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance of notification 14/2020- Central Tax dated 21st March, 2020 -Reg

Various references have been received from trade and industry seeking further clarification on applicability of Dynamic Quick Response (QR) Code on B2C (Registered person to Customer) invoices for compliance of notification 14/2020-Central Tax, dated 21st March, 2020 as amended. It has been represented that in some cases where, though the service recipient is located outside India and place of supply of the service is in India as per IGST Act 2017, the payment is received by the service provider located in India not in foreign exchange, but through other modes approved by RBI. In such cases, the supplier will not be fulfilling the condition specified in S. No. 4 of the Circular No. 156/12/2021 dated 21st June 2021, and accordingly, will be required to have dynamic QR code on the invoice. It has been also represented that relaxation from dynamic QR code on the invoices in such cases should be available if the payment is received through any RBI approved mode of payment, and not necessarily in foreign exchange.

2. The issues have been examined and in order to ensure uniformity in the implementation of the provisions of the law across the field formations, the Board, in exercise of its powers conferred under section 168(1) of the CGST Act, 2017, hereby clarifies the issues hereafter.

3 It is observed that from the present wording of S. No. 4 of Circular No. 156/12/2021 dated 21stJune 2021, doubt arises whether the relaxation from the requirement of dynamic QR code on the invoices would be available to such supplier, who receives payments from the recipient located outside India through RBI approved modes of payment, but not in foreign exchange. It is mentioned that the intention of clarification as per S. No. 4 in the said circular was not to deny relaxation in those cases, where the payment is received by the supplier as per any RBI approved mode, other than foreign exchange.

4. Accordingly, to clarify the matter further, the Entry at S. No. 4 of the Circular No. 156/12/2021-GST dated 21st June, 2021 is substituted as below:

4. ” In cases, where receiver of services is located outside India, and payment is being received by the supplier of services ,through RBI approved modes of payment, but as per provisions of the IGST Act 2017, the place of supply of such services is in India, then such supply of services is not considered as export of services as per the IGST Act 2017; whether in such cases, the Dynamic QR Code is required on the invoice issued, for such supply of services, to such recipient located outside India?No. Wherever an invoice is issued to a recipient located outside India, for supply of services, for which the place of supply is in India, as per the provisions of IGST Act 2017, and the payment is received by the supplier, in convertible foreign exchange or in Indian Rupees wherever permitted by the RBI, such invoice may be issued without having a Dynamic QR Code, as such dynamic QR code cannot be used by the recipient located outside India for making payment to the supplier.”

5. Circular No. 156/12/2021-GST, dated 21.06.2021 stands modified to this extent.

6. It is requested that suitable trade notices may be issued to publicize the contents of this

7. Difficulty, if any, in the implementation of the above instructions may please be brought to the notice of the Board. Hindi version would follow.

(Sanjay Mangal)

Principal Commissioner

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Govt blocks ITC of over Rs 6.14 Lakh Crores under Rule 86A: RTI

Govt blocks ITC of over Rs 6.14 Lakh Crores under Rule 86A: RTI

GOODS AND SERVICE TAX NETWORK

4th Floor, Worldmark 1, East Wing, Asset 11,
Hospitality District, Aerocity, New Delhi-11000
Tel: 011-49111200, Fax: 011-49111210
Email: info@gstn.org.in, Website: http://www.gstn.org
CIN: U72200DL2013NPL249988

File No. CPIO/RTI/2021/GSTN/244

Dated: 05-10-2021

To,

…………..

Sub Your RTI Application No. CBECE/R/T/21/01290 dated 31.02.2021 under RTI Act, 2005.

Sir,

With reference to your above mentioned RTI application received upon transfer from Shri Aman Mittal, CPIO/Deputy Commissioner, GST Policy Wing New Delhi on 13.09.2021, for SI. No. 1 to 4 of the above captioned RTI, point wise response to information sought by you is at follows.

SI No.Information sought by RTI ApplicantInformation provided by CPIO
I.Please specify state wise numbers of taxpayers for whom Input Tax Credit has been blocked under rule 86A of CGST Rules 2017 as on 31.07.2021.The information sought by RTI applicant at SI. No. 1 can be found at Annexure-1.
2.Please specify the amount of Input Tax Credit blocked for all such taxpayers.The amount of Input Tax Credit blocked from all such taxpayer are Rs. 6,14,010.81 Cr.
3Please specify out of all the Input Tax Credit blocked under rule 86A of CGST Rules 2017, how much Input Tax Credit pertains to period exceeding 1 year from the date of blocking of such Input Tax Credit.The amount of Input Tax Credit pertaining to period exceeding 1 year from the date of blocking of such input tax credit blocked under rule 86A of CGST Rules, 2017 is Rs. 296311.45 Cr.
4.Please specify details of Taxpayers for whom Input Tax Credit has been unblocked after 1 year has been lapsed from the date of blocking of such Input Tax Credit.The details of taxpayers for whom Input Tax Credit has been unblocking after 1 year has been lapsed from the date of blocking of such Input Tax credit are as followsNo. of GSTINs: 2228Amount: Rs. 1370.71 Cr.

B. In case you are dissatisfied with the information, you may file an appeal to First Appellate Authority Shri Dheeraj Rastogi Executive Vice President (Support), Goods and Services Tax Network, East Wing, 4th Floor, World Mark-1, Aerocity, New Delhi-110037.

Copy for information to:-

(1) Shri Aman Mittal CPIO, Deputy Commissioner, Government of India, Ministry of Finance, Central Board of Indirect Taxes and Customs, GST Policy Wing, Room No. 244D North Block New Delhi – 110001.

S. No.StateNo. of Tax PayersAmount  (in Cr.)
1Jammu and Kashmir12931.76
2Himachal Pradesh326110.45
3Punjab82851213.25
4Chandigarh12919.69
5Uttarakhand963255.76
6Haryana61452779.36
7Delhi135395744.75
8Rajasthan4193470.92
9Uttar Pradesh10174582163.82
10Bihar1480556.82
11Sikkim512.85
12Arunachal Pradesh10.13
13Nagaland65.49
14Manipur30.27
15Mizoram31.01
16Tripura64648.46
17Meghalaya186.18
18Assam396200.99
19West Bengal29207335.34
20Jharkhand3399694.42
21Odisha539316.15
22Chhattisgarh474224.70
23Madhya Pradesh1723987.86
24Gujarat57671201.67
25Daman and Diu40.22
26Dadra and Nagar Havelli343.43
27Maharashtra28104210.11
29Karnataka31961381.88
30Goa51219.59
32Kerala72184.36
33Tamil Nadu20032,415.58
34Puducherry45525.24
35Andaman and Nicobar island30.24
36Telangana3288469.42
37Andhra Pradesh165686.96
97Other Territory431.65
Total6,14,010.81
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Clarification in respect of certain GST related issues

Clarification in respect of certain GST related issues

F. No. CBIC-20001/8/2021-GST

Government of India Ministry of Finance

Department of Revenue

Central Board of Indirect Taxes and Customs

GST Policy Wing

New Delhi, dated the 20th September, 2021

To

The Pr. Chief Commissioners / Chief Commissioners / Principal Commissioners / Commissioners of Central Tax (All)

The Principal Directors General / Directors General (All)

Madam / Sir,

Subject: Clarification in respect of certain GST related issues – reg.

Various representations have been received from taxpayers and other stakeholders seeking clarification in respect of certain issues pertaining to GST laws. The issues have been examined. In order to ensure uniformity in the implementation of the provisions of the law across field formations, the Board, in exercise of its powers conferred by section 168(1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “CGST Act”), hereby clarifies each of these issues as under:

S. No.IssueClarification
1.Section 16 (4), as amended with effect from 01.01.2021, provides that a registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier.   Doubts have been raised seeking following clarification: Which of the following dates are relevant to determine the ‘financial year’ for the purpose of section 16(4):date of issuance of debit note, ordate of issuance of underlying invoice.Whether any availment of input tax credit, on or after 01.01.2021, in respect of debit notes issued either prior to or after 01.01.2021, will be governed by the provisions of the amended section 16(4), or the amended provision will be applicable only in respect of the debit notes issued after 01.01.2021?1. With effect from 01.01.2021, section 16(4) of the CGST Act, 2017 was amended vide the Finance Act, 2020, so as to delink the date of issuance of debit note from the date of issuance of the underlying invoice for purposes of availing input tax credit. The amendment made is shown as below: “A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier.” As can be seen, the words “invoice relating to such” were omitted w.e.f. 01.01.2021.   The intent of law as specified in the Memorandum explaining the Finance Bill, 2020 states that “Clause 118 of the Bill seeks to amend sub-section (4) of section 16 of the Central Goods and Services Tax Act so as to delink the date of issuance of debit note from the date of issuance of the underlying invoice for purposes of availing input tax credit.   Accordingly, it is clarified that:   w.e.f. 01.01.2021, in case of debit notes, the date of issuance of debit note (not the date of underlying invoice) shall determine the relevant financial year for the purpose of section 16(4) of the CGST Act. The availment of ITC on debit notes in respect of amended provision shall be applicable from 01.01.2021. Accordingly, for availment of ITC on or after 01.01.2021, in respect of debit notes issued either prior to or after 01.01.2021, the eligibility for availment of ITC will be governed by the amended provision of section 16(4), whereas any ITC availed prior to 01.01.2021, in respect of debit notes, shall   be   governed   under   the provisions of section 16(4), as it existed before the said amendment on 01.01.2021.
 
Illustration 1. A debit note dated 07.07.2021 is issued in respect of the original invoice dated 16.03.2021. As the invoice pertains to F.Y. 2020- 21, the relevant financial year for availment of ITC in respect of the said invoice in terms of section 16(4) of the CGST shall be 2020-21. However, as the debit note has been issued in FY 2021-22, the relevant financial year for availment of ITC in respect of the said debit note shall be 2021-22 in terms of amended provision of section 16(4) of the CGST Act.
 
Illustration 2. A debit note has been issued on 10.11.2020 in respect an invoice dated 15.07.2019. As per amended provision of section 16(4), the relevant financial year for availment of input tax credit on the said debit note, on or after 01.01.2021, will be FY 2020-21 and accordingly, the registered person can avail ITC on the same till due date of furnishing of FORM GSTR-3B for the month of September, 2021 or furnishing of the annual return
for FY 2020-21, whichever is earlier.
S. No.IssueClarification
2.Whether carrying physical copy of invoice is compulsory during movement of goods in cases where suppliers have issued invoices in the manner prescribed under rule 48 (4) of the CGST Rules, 2017 (i.e. in cases of e-invoice).Rule 138A (1) of the CGST Rules, 2017 inter-alia, provides that the person in charge of a conveyance shall carry— (a) the invoice or bill of supply or delivery challan, as the case may be; and (b) a copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner.   Further, rule 138A (2) of CGST Rules, after being amended vide notification No. 72/2020-Central Tax dated 30.09.2020, states that “In case, invoice is issued in the manner prescribed under sub-rule (4) of rule 48, the Quick Reference (QR) code having an embedded Invoice Reference Number (IRN) in it, may be produced electronically, for verification by the proper officer in lieu of the physical copy of such tax invoice”   A conjoint reading of rules 138A (1) and 138A (2) of CGST Rules, 2017 clearly indicates that there is no requirement to carry the physical copy of tax invoice in cases where e-invoice has been generated by the supplier. After amendment, the revised rule 138A (2) states in unambiguous words that whenever e- invoice has been generated, the Quick Reference (QR) code, having an embedded Invoice Reference Number (IRN) in it, may be produced electronically for verification by the proper officer in lieu of the physical copy of such tax invoice.   Accordingly, it is clarified that there is no need to carry the physical copy of tax invoice in cases where invoice has been generated by the supplier in the manner prescribed under rule 48(4) of the CGST Rules and production of the Quick Response (QR) code having an embedded Invoice Reference Number (IRN) electronically, for verification bythe proper officer, would suffice. generated by the supplier in the manner prescribed under rule 48(4) of the CGST Rules and production of the Quick Response (QR) code having an embedded Invoice Reference Number (IRN) electronically, for verification by the proper officer, would suffice.
S. No.IssueClarification
3.Whether the first proviso to section 54(3) of CGST / SGST Act, prohibiting refund of unutilized ITC is applicable in case of exports of goods which are having NIL rate of export duty.1. The term ‘subjected to export duty’ used in first proviso to section 54(3) of the CGST Act, 2017 means where the goods are actually leviable to export duty and suffering export duty at the time of export. Therefore, goods in respect of which either NIL rate is specified in Second Schedule to the Customs Tariff Act, 1975 or which are fully exempted from payment of export duty by virtue of any customs notification or which are not covered under Second Schedule to the Customs Tariff Act, 1975, cannot be considered to be subjected to any export duty under Customs Tariff Act, 1975. 2. Accordingly, it is clarified that only those goods which are actually subjected to export duty i.e., on which some export duty has to be paid at the time of export, will be covered under the restriction imposed under section 54(3) from availment of refund of accumulated ITC. Goods, which are not subject to any export duty and in respect of which either NIL rate is specified in Second Schedule to the Customs Tariff Act, 1975 or which are fully exempted from payment of export duty by virtue of any customs notification or which are not covered under Second Schedule to the Customs Tariff Act, 1975, would not be covered by the restriction imposed under the first proviso to section 54(3) of the CGST Act for the purpose of availment of refund of accumulated ITC.

2. It is requested that suitable trade notices may be issued to publicize the contents of this Circular.

3. Difficulty, if any, in the implementation of this Circular may be brought to the notice of the Board. Hindi version will follow.

(Sanjay Mangal)

Principal Commissioner

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Clarification relating to export of services-condition (v) of section 2(6) of the IGST Act 2017

Clarification relating to export of services-condition (v) of section 2(6) of the IGST Act 2017

F. No. CBIC-20001/8/2021–GST

Government of India Ministry of Finance

Department of Revenue

Central Board of Indirect Taxes and Customs

GST Policy Wing

New Delhi, dated the 20th September, 2021

To

The Pr. Chief Commissioners / Chief Commissioners / Principal Commissioners / Commissioners of Central Tax (All)

The Principal Directors General / Directors General (All) Madam / Sir,

Subject: Clarification relating to export of services-condition (v) of section 2(6) of the IGST Act 2017–reg.

Various representations have been received citing ambiguity caused in interpretation of the Explanation 1 under section 8 of the IGST Act 2017 in relation to condition (v) of export of services as mentioned in sub-section (6) of the section 2 of the IGST Act 2017. Doubts have been raised whether the supply of service by a subsidiary/ sister concern/ group concern, etc. of a foreign company in India, which is incorporated under the laws in India, to the foreign company incorporated under laws of a country outside India, will hit by condition (v) of sub- section (6) of section 2 of IGST Act.

2. The matter has been examined. In view of the difficulties being faced by the trade and industry and to ensure uniformity in the implementation of the provisions of the law across field formations, the Board, in exercise of its powers conferred by section 168 (1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “CGST Act”), hereby clarifies the issue in succeeding paragraphs.

3. Relevant legal provisions:

The export of services has been defined in sub-section (6) of the section 2 of the IGST Act 2017 as under:

  • “export of services” means the supply of any service when,
    • the supplier of service is located in India;
    • the recipient of service is located outside India
    • ;the place of supply of service is outside India;
    • the payment for such service has been received by the supplier of service in convertible foreign exchange; and

(iv)    the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8;

Explanation 1 of the Section 8 of the IGST Act provides for the conditions wherein establishments of a person would be treated as establishments of distinct persons, which is reproduced as under:

Explanation 1.––For the purposes of this Act, where a person has,––

  • an establishment in India and any other establishment outside India;
  • an establishment in a State or Union territory and any other establishment outside that State or Union territory; or
  • an establishment in a State or Union territory and any other establishment being a business vertical registered within that State or Union territory, then such establishments shall be treated as establishments of distinct persons.

As per the above Explanation, an establishment of a person in India and another establishment of the said person outside India are considered as establishments of distinct persons.

Reference is also invited to the Explanation 2 of Section 8 of IGST Act, which is reproduced below:

“Explanation 2.––A person carrying on a business through a branch or an agency or a representational office in any territory shall be treated as having an establishment in that territory.”

Reference is also invited to the definition of “person” as provided under CGST Act 2017, made applicable to IGST Act vide section 2(24) of IGST Act 2017. “Person” has been defined under sub-section (84) of the section 2 of the CGST Act 2017, as under:

(84) “person” includes—

  • an individual;
  • a Hindu Undivided Family;
  • a company;
  • a firm;
  • a Limited Liability Partnership;
  • an association of persons or a body of individuals, whether incorporated or not, in India or outside India;
  • any corporation established by or under any Central Act, State Act or Provincial Act or a Government company as defined in clause (45) of section 2 of the Companies Act, 2013;
  • any body corporate incorporated by or under the laws of a country outside India;
  • a co-operative society registered under any law relating to co-operative societies;
  • a local authority;
  • Central Government or a State Government;
  • society as defined under the Societies Registration Act, 1860;
  • trust; and
  • every artificial juridical person, not falling within any of the above;

The definitions of company and foreign company have been provided under section 2 of Companies Act 2013, as under:

(20) “company” means a company incorporated under this Act or under any previous company law;

(42) “foreign company” means any company or body corporate incorporated outside India which—

  • has a place of business in India whether by itself or through an agent, physically or through electronic mode; and
  • conducts any business activity in India in any other manner.

4. Analysis of the issue:

Clause (v) of sub-section (6) of section 2 of IGST Act, which defines “export of services”, places a condition that the services provided by one establishment of a person to another establishment of the same person, considered as establishments of distinct persons as per Explanation 1 of section 8 of IGST Act, cannot be treated as export. In other words, any supply of services by an establishment of a foreign company in India to any other establishment of the said foreign company outside India will not be covered under definition of export of services.

Further, perusal of the Explanation 2 to section 8 of the IGST Act suggests that if a foreign company is conducting business in India through a branch or an agency or a representational office, then the said branch or agency or representational office of the foreign company, located in India, shall be treated as establishment of the said foreign company in India. Similarly, if any company incorporated in India, is operating through a branch or an agency or a representational office in any country outside India, then that branch or agency or representational office shall be treated as the establishment of the said company in the said country.

In view of the above, it can be stated that supply of services made by a branch or an agency or representational office of a foreign company, not incorporated in India, to any establishment of the said foreign company outside India, shall be treated as supply between establishments of distinct persons and shall not be considered as “export of services” in view of condition (v) of sub-section (6) of section 2 of IGST Act. Similarly, any supply of service by a company incorporated in India to its branch or agency or representational office, located in any other country and not incorporated under the laws of the said country, shall also be considered as supply between establishments of distinct persons and cannot be treated as export of services.

From the perusal of the definition of “person” under sub-section (84) of section 2 of the CGST Act, 2017 and the definitions of “company” and “foreign company” under Section 2 of the Companies Act, 2013, it is observed that a company incorporated in India and a foreign company incorporated outside India, are separate “person” under the provisions of CGST Act and accordingly, are separate legal entities. Thus, a subsidiary/ sister concern/ group concern of any foreign company which is incorporated in India, then the said company incorporated in India will be considered as a separate “person” under the provisions of CGST Act and accordingly, would be considered as a separate legal entity than the foreign company.

5. Clarification:

In view of the above, it is clarified that a company incorporated in India and a body corporate incorporated by or under the laws of a country outside India, which is also referred to as foreign company under Companies Act, are separate persons under CGST Act, and thus are separate legal entities. Accordingly, these two separate persons would not be considered as “merely establishments of a distinct person in accordance with Explanation 1 in section 8”.

Therefore, supply of services by a subsidiary/ sister concern/ group concern, etc. of a foreign company, which is incorporated in India under the Companies Act, 2013 (and thus qualifies as a ‘company’ in India as per Companies Act), to the establishments of the said foreign company located outside India (incorporated outside India), would not be barred by the condition (v) of the sub-section (6) of the section 2 of the IGST Act 2017 for being considered as export of services, as it would not be treated as supply between merely establishments of distinct persons under Explanation 1 of section 8 of IGST Act 2017 . Similarly, the supply from a company incorporated in India to its related establishments outside India, which are incorporated under the laws outside India, would not be treated as supply to merely establishments of distinct person under Explanation 1 of section 8 of IGST Act 2017. Such supplies, therefore, would qualify as ‘export of services’, subject to fulfilment of other conditions as provided under sub-section (6) of section 2 of IGST Act.

It is requested that suitable trade notices may be issued to publicize the contents of this Circular.

Difficulty, if any, in the implementation of this Circular may be brought to the notice of the Board. Hindi version will follow.

(Sanjay Mangal)

Principal Commissioner

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Availment of ITC credit for the month of june-2021

Availment of ITC credit  for the month of june-2021

Rule 36(4) restricts the availment of input tax credit beyond 5% of the ITC reflected in Form GSTR 2A/2B. However, as per Notification No. 13/2021-CT dated 1st May 2021 as amended by Notification No: 27/2021 dated 01/06/2021the said restriction will not apply in individual months of April & May 2021, but will apply cumulatively for the period April & May, 2021 and the return in FORM GSTR-3B for the month of June, 2021 is to be furnished with the cumulative adjustment of input tax credit for those months.

For the month of April-21 and May-2021 and June-2021 the GSTR-2B was generated on 29/05/2021 and 29/06/2021 and 14/07/2021 respectively and is available for download from GSTN portal.

Illustration for the availment of ITC for June-2021 as per the said legal provisions.

ReturnGSTR-2BAs Per 3B/Books Situation IAs Per 3B/Books Situation IIAs Per 3B/Books Situation IIIRule 36 (4)
Apr-211001259095Not Applicable
May-211001258090Not Applicable
Already availed200250170185 
Jun-21100125105110Not Applicable
Total300375275295Cumulative application
Cumulative GSTR-2B300300300300
Cumulative GSTR-3B 375275295
Cumulative Difference75-25-5
Cumulative DifferenceDiff more than 5%Diff more than 5%Diff. Less 5%
Eligible amount Maximum (  2B or Book X1.05) 300288.75309.75
As per Book375275295
Already availed250170185
Balance as per Book125105110
Maximum Amount to be availed in June 3B50118.75124.75
Actual amount to be availed whichever is less Book or 1.05%50105110

Please Note:

GSTN system the ITC for the Month of June 2021 as per the system generated GSTR3B, if amount is entered more than Maximum amount is entered alert in red font will appear. In the above maximum the eligibility, the GSTN System bas eligibility of ITC as per Section 16 and 17(5) has not been considered. 

Don’t follow the System generated ITC, it is only a facilitation measure.

Taxable person has to ensure that his availment of ITC reported in GSTR-3B is as per legal provisions of GST Act/Rules governing availment of ITC.

For those who wish to avail as per the legal provisions after due verification, the calculation is as under:

Sl. NoDetailsAs per Books of AmountAs per GSTN System & RemarksAs per GSTN System & Remarks
1Eligible amount as per details uploaded in GSTR-2A/2B during 2020-21 but not availed in 2021-22 (QTR-1) –A2500  (System will populate the return filed during the Q1 only)
2Eligible amount as per details uploaded in GSTR-2A/2B during in 2021-22 (QTR-1) (B)10001200  System will populate the return filed during the Q1 only and does not verify the eligibility)
3Total eligible for 2021-22-Q1 (C)12501200 
4ITC availed during April 21 and May 21 as per GSTR-3B (D)800800 
5Balance to be availed. in June-21 –(E=C-D)450400 

In the above situation, as you are availing credit only as per the legal provisions, you can ignore the alert, if any is indicated. 

Author: B.Venakteswaran, IRS., Asst. Commissioner CGST Retired

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GST collection crossed 1 Lakh Crore for May 2021

GST collection crossed 1 Lakh Crore for May 2021

The gross GST revenue collected in the month of May 2021 is Rs.1,02,709 crore of which CGST is Rs.17,592 crore, SGST is Rs.22,653, IGST is Rs.53,199 crore (including Rs.26,002 crore collected on import of goods) and Cess is Rs. 9,265 crore (including Rs.868 crore collected on import of goods).The above figure includes GST collection from domestic transactions till 4th of June since taxpayers were given various relief measures in the form of waiver/reduction in interest on delayed return filing for 15 days for the return filing month May’21 in the wake of covid pandemic second wave.

During this month the government has settled Rs. 15,014 crore to CGST and Rs. 11,653 crore to SGST from IGST as regular settlement.

The revenues for the month of May 2021 are 65% higher than the GST revenues in the same month last year. During the month, revenues from import of goods was 56% higher and the revenues from domestic transaction (including import of services) are 69% higher than the revenues from these sources during the same month last year.

This would be eighth month in a row that GST revenues have crossed Rs. 1 lakh crore mark. This is despite the fact that most of the States have been under strict lockdown due to the pandemic. In addition, while the taxpayers with turnover above Rs. 5 crore had to file their returns by 4th June, which they would have otherwise filed by 20th May, smaller taxpayers with turnover less than Rs. 5 crore still have time till first week of July to file the returns without any late fee and interest and the revenue from these taxpayers is deferred till then. The actual revenues for the month of May 2021, thus would be higher and would be known when all the extended dates expire.

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Haryana Lets GST Refund on Covid Items’ donation

Haryana Lets GST Refund on Covid Items’ donation

The Haryana government has allowed reimbursement of goods and service tax paid by companies, non-governmental or­ganisations and individuals on purchase of 15 items including Covid vaccines, remdesi­vir injections, ventilators and oxygen cylin­ders that they have donated free of cost to the state government or state-run hospitals. Haryana is the first state to give such a relax­ation. The Centre has already waived integra­ted GST (IGST) till June 30 on the import of Covid-related relief material donated or rece­ived from outside India for free distribution. “In order to encourage such efforts, it is ne­cessary in the public interest to facilitate do­nation of such items appearing in the table annexed herewith by way of reimbursement of GST, if any, already paid on such Covid- re­lated items.

Below read full notification

HARYANA GOVERNMENT

FINANCE DEPARTMENT

Notification

The 17th May 2021

No. 28/19/2021-5B&C.— In view of the surge in number of cases of COVID-19 pandemic, the State of Haryana is facing acute shortage of liquid medical oxygen and other health equipment such as ventilators, medicines etc. Large number of Corporates, Non-Government Organisations (NGOs) and individuals are coming forward to help the State Government in its efforts to augment the health infrastructure and equipment by way of donating such material to Government medical facilities.

In order to encourage such efforts, it is necessary in the public interest to facilitate donation of such items appearing in the table annexed herewith by way of reimbursement of GST (including the State, Central or IGST portions), if any, already paid on such covid related items. The reimbursement of GST shall be subject to the following conditions:

  1. Such covid related material shall be donated free of cost to the Government of Haryana, hospitals run by State Government, or any Hospital/ Institution permitted by State Government to receive such material through Health & Family Welfare, Department, Government of Haryana.
  2. This Scheme shall remain in force up to and inclusive of the 30th June, 2021.
  3. The Health & Family Welfare Department shall issue a certificate of such donation, which shall be submitted by such donors to the Excise and Taxation Department for claiming refund, which shall after verifying the amount of GST paid, sanction the reimbursement of GST.

By order and in the name of Governor of Haryana.

T.V.S.N. PRASAD,

Additional Chief Secretary to Government Haryana, Finance Department.

Annexure

S. No.Description
1Oxygen concentrator including flow meter, regulator, connectors and tubings
2Vacuum Pressure Swing Absorption (VPSA) and Pressure Swing Absorption (PSA) oxygen plants, cryogenic oxygen Air separation Units (ASUs) producing liquid/gaseous oxygen.
3Oxygen canister/cylinders (D-type or B-type)
4Oxygen filling systems
5Oxygen storage tanks
6Oxygen generator
7ISO containers for Shipping Oxygen
8Cryogenic road transport tanks for Oxygen
9Oxygen cylinders including cryogenic cylinders and tanks
10Ventilators, including ventilator with compressors; all accessories and tubings; humidifiers; viral filters (should be able to function as high flow device and come with nasal canula).
11High flow nasal canula device with all attachments; nasal canula for use with the device
12Helmets for use with non-invasive ventilation.
13Non-invasive ventilation nasal masks for ICU ventilators
14COVID-19 vaccine
15Injection Remdesivir
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CBIC Special Refund & Drawback Disposal Drive for exporters

CBIC Special Refund & Drawback Disposal Drive for exporters

Central Board of Indirect and Taxes had issued Instruction No. 10/2021 Customs dated May 13, 2021 regarding Special Refund and Drawback Disposal Drive from 15.05.2021 to 31.05.2021 – Implementation of – reg.

Below read Instruction No. 10/2021-Customs

Instruction No. 10/2021-Customs

F. No. 450/119/2017-Cus-IV

Government of India Ministry of Finance Department of Revenue

(Central Board of Indirect Taxes and Customs)

****

New Delhi, Dated the 13th May, 2021

To,

All Principal Chief Commissioner/Chief Commissioner of Customs/Customs (Preventive)

All Principal Chief Commissioner/Chief Commissioner of Customs & Central Tax

All Principal Commissioner/ Commissioner of Customs & Customs (Preventive)

All Principal Commissioner/ Commissioner of Customs & Central Tax

Subject: Special Refund and Drawback Disposal Drive from 15.05.2021 to 31.05.2021 – Implementation of – reg.

Madam/Sir,

1. As you are aware, the CBIC has throughout been in the forefront of our fight against Covid-19 pandemic. The measures put in place for this include 24×7 Customs functioning, single window helpdesk, nodal officers at all locations, relaxing requirement of submission of bond and replacing it with undertaking, exemption from Customs duty and IGST on specified COVID-19 material donated from abroad, expeditious Customs clearance for all COVID-19 related imports made by Red Cross Society, etc. Further, last year, difficulties of liquidity during COVID-19 were sought to be ameliorated by having a Special Drive from 08.04.2020 to 30.04.2020 for priority disposal of pending Customs refund, IGST refund and Customs Duty Drawback claims. This Special Drive was governed by Instructions No.03/2020-Customs and No.2/1/2020-GST, both dated 09.04.2020.

2. Continuing with the aforementioned trade facilitation measures, the Board has decided that there is a need to focus on timely disposal of all pending refund/duty drawback claims in order to provide immediate relief to the business entities, especially MSMEs, in these difficult times. Accordingly, it is hereby instructed that there shall be a “Special Refund and Drawback Disposal Drive” with the objective of priority processing and disposal of all pending refund and drawback claims. This Special Drive shall be in place from 15th May 2021 to 31st May 2021. It is expected that during this period all refund and drawback claims that are pending as on 14th May 2021 shall be disposed.

3. The Principal Chief Commissioners/ Chief Commissioners shall monitor the performance on this front closely on a daily basis and, wherever required, suitably guide the officers concerned to maximize the disposal. Further, it is important to coordinate this Special Drive with the major trade and industry associations (especially those that cater to exporters) for their assistance including submission of required documents from their members (if a claim is pending for want of a required document).

4. In this regard, the following may kindly be taken note of:

  • Though the decision to process pending refund claims has been taken with a view to provide immediate relief to the taxpayers, due diligence is to be done before granting the refunds and drawback. All the relevant legal provisions, notifications, circulars and instructions must be followed while processing these claims.
  • For facilitation of exporters, all communication should be done over email, wherever email id of the applicant is available.
  • All deficiency memos may be reviewed and refund / drawback may be considered on merit.
  • The Special Drive should be widely publicized.

5. It is urged that in these difficult times all officers concerned make special efforts to liquidate the pending refund and drawback claims by 31.05.2021 and make the Special Drive a grand success.

Yours faithfully

Deputy Secretary (Customs)

Email : dircus@nic.in

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FAQ on covid specific import exemption in IGST

FAQ on covid specific import exemption in IGST

Ad hoc Exemption Order No. 4/2021-Customs dated 3 May, 2021 (said Order) exempting IGST on imports of specified COVID-19 relief material subject to conditions – regarding

S. No.FAQClarification
1.Whether exemption from IGST under the said Order is available in case the importer buys the goods from abroad, but the same is meant for free distribution for COVD relief in India?1. Condition No.1 of Annexure to the said Order states that, the said goods are imported free of cost for the purpose of Covid relief by a State Government or, any entity, relief agency or statutory body, authorised in this regard by any State Government. Thus, it is clear that the ad hoc exemption order applies only where the importer gets goods free of cost for free distribution. Other instances are not covered by the exemption order.
2. In this context, a number of references have been received informing that many entities, including Corporates, intend to source COVID relief material from abroad and distribute it freely, availing the IGST exemption under the said Order.
3. It may be mentioned that in case any corporate buys it and even gives it for free, such exemption will not be available. To reiterate, it is available when said goods are imported free of cost for the purpose of Covid relief by a State Government or, any entity, relief agency or statutory body, authorised in this regard by any State Government.
2.The imports may be imported at place within jurisdiction of State A, and goods may be for free distribution in State A as well as B. In such a case, which State nodal authority, A    or    B,    shall    be  required to issue authorization           and certify the free distribution of said goods?Any ‘relief agency’ authorised by a State can make free distribution of goods so imported anywhere in India. Exemption order only envisages that relief agency should have been authorised by a State and should have obtained a certificate to this effect. So in the instant case either of the States A or B may authorise the agency and issue the certificate for compliance of Condition No. 3 of the Annexure to the said Order.
S. No.FAQClarification
3.Is    there    a       specified format       for        issuing certificate, recommending exemption to a relief agency?A format for the said authorization for import is placed on CBIC’s website, under Customs à Instructions à Instruction 9/2021-Customs dated 3rd May, 2021. This format is for facilitation purpose. Certificate in any format containing information as mentioned in format at the above link shall be accepted by Customs.
4.What will be the procedure                  for certification of the statement containing details of such imported                               goods distributed free of cost, if distributed within the state whose nodal authority authorising the importing entity/ relief agency, and if distributed in other states.Condition No. 4 of the Annexure to the said Order requires that a statement containing details of goods distributed free of cost, duly certified by the said nodal authority of the State Government, is to be produced by the importer before the specified Customs officer at the port of importation. The certification of statement shall be done by the nodal authority that authorises the relief agency and issues certificate to relief agency recommending exemption under the adhoc order. There is no prescribed procedure for certification of statement and the States/ State nodal authorities are at liberty to devise their own suitable mechanism as deemed fit, for certification of statement.
5.The nodal authority will issue the certificate to the entity who will submit the same before the concerned customs authority at the time of clearance of goods. Is this understanding, correct?Yes, Condition No. 3 of Annexure to said Order may be referred to. As mentioned therein, the State nodal authority will authorize the importing entity, and the importer will produce the said authorization before Customs at time of clearance for availing the exemption.
6.Is the certificate to be issued                 import consignment wise or a certificate     could     be issued              covering multiple imports by a relief agency?Although    a    certificate    is   required    to    be produced by an importer to Customs at the time of clearance of   each consignment,   a separate, consignment-wise certificate is not necessary. A certificate issued to a relief agency may cover goods imported under multiple consignments. The certificate should specify port-wise anticipated import by relief agency, in the format as mentioned at S. No. 3 above.

(Disclaimer: This document is being issued for the purpose of understanding of the stakeholders and does not have the force of law, and in respect of dispute, if any, the legal text of the exemption order shall only be relevant)

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Ad hoc Exemption from IGST on imports of specified COVID-19 relief material donated from abroad

Ad hoc Exemption from IGST on imports of specified COVID-19 relief material donated from abroad

In view of the COVID-19 pandemic, the Central Government has issued notifications exempting Basic Customs Duty and/or Health cess on imports of a number of COVID-19 related relief materials, for a limited period. These include–

S. No.NotificationPurpose
 27/2021-Customs dated 20.04.21 (as amended by notification No.29/2021-Customs dated 30.4.21)Remdesivir injection/ API and Beta Cyclodextrin (SBEBCD), Inflammatory diagnostic (markers) kits, till 31st Octber,2021
 28/2021-Customs dated 24.04.21Medical grade Oxygen, oxygen therapy related equipment such as oxygen concentrators, cryogenic transport tanks, etc, and COVID-19 vaccines till 31st July, 2021

The Central Government had received a number of representations from charitable organizations, corporate entities, and other Associations/ entities outside India seeking exemption from IGST on the import of Covid-19 relief material (already exempted from customs duty), donated/received free of cost from outside India for free distribution. Accordingly, the Central Government has vide Ad hoc exemption Order number 4/2021 dated 3rd May, 2021 has granted exemption from IGST on import of such goods received free of cost for free distribution for covid relief.

This exemption shall apply till 30th June, 2021. It would also covers goods already imported but lying uncleared on the date of its issuance of exemptioni.e. today.

The exemption shall be subject to the following conditions:

  1. State Government shall appoint a nodal authority in the State for the purpose of this exemption. As per section 2 (103) of the Central Goods and Services Tax Act, 2017, state include a Union territory with Legislature.
  2. The Nodal authority so appointed shall authorise any entity, relief agency or statutory body, for free distribution of such Covid-relief material.
  3. The said goods can be imported free of cost by a State Government or, any entity/ relief agency/ statutory body, authorized in this regard for free distribution anywhere in India.
  4. The importer shall before clearance of goods from Customs produce a certificate from the said nodal authorities that goods are meant for free distribution for Covid relief.
  5. After imports, the importer shall produce, to the Deputy or Assistant Commissioner of Customs at the port within a period of six months from the date of importation or within such extended period not exceeding nine months, a simple statement containing details of goods imported and distributed free of cost. This statement shall be certified by the said nodal authority of the State Government.

This exemption, shall thus enable import of the covid relief supply imported free of cost for free distribution without payment of IGST (upto the 30th June, 2021).

As customs duty is already exempt , these imports will not attract any customs duty or IGST.

Below you can read full Ad hoc exemption Order number 4/2021 dated 3rd May, 2021

AdHoccs04-2021

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