GST Update€¦ · Weekly Update 02.05.2020 1. Background •This Presentation covers the GST changes / observations/ press releases/ Tweet FAQs/ Sectoral FAQs released by CBEC since

N at i o n a l A c ade m y o f C u s t o m s , I n d i re c t Taxe s an d N arc o t i c s ( N A C I N )

GST Update

Weekly Update 02.05.2020

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Background

• This Presentation covers the GST changes /observations/ press releases/ Tweet FAQs/ SectoralFAQs released by CBEC since the last update on18.04.2020. No update was released on 25.04.2020.It supplements the earlier GST Updates.

• This presentation is based on CGST Act/Rules/Notifications, except the provisions related solely toSGST provisions. Similar parallel provisions in StateLaws may be referred to as required

N at i o n a l A c ade m y o f C u s t o m s , I n d i re c t Taxe s an d N arc o t i c s ( N A C I N )2

Transfer of amount from one account head to another in Electronic Cash Ledger (Effective from 21st April 2020)

Notification No. 37/2020 – Central Tax dated 28th April 2020

Rule 87 (13) of CGST Rules, 2017; Form GST PMT-09

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• Notification No. 37/2020 – Central Tax dated 28th April 2020

• Rule 87(13) and Form GST PMT-09 made effective w.e.f21st April 2017

• Rule 87 (13) of CGST Rules, 2017: A registered person may, onthe common portal, transfer any amount of tax, interest,penalty, fee or any other amount available in the electroniccash ledger under the Act to the electronic cash ledger forintegrated tax, central tax, State tax or Union territory tax orcess in FORM GST PMT-09.

4N at i o n a l A c ade m y o f C u s t o m s , I n d i re c t Taxe s an d N arc o t i c s ( N A C I N )

• Taxpayers deposit money using challan and the paid amount getscredited in the particular head in the Electronic Cash ledger and thesame can be utilized in settling liabilities of that head only. In case ataxpayer deposited any amount under a major head i.e. IGST, CGST,SGST/UTGST and Cess or minor head i.e. Tax, Interest, Penalty, Fee andOthers, they can then utilize this amount for discharging their liabilitiesonly under that major head and minor head. Sometimes, inadvertently,the taxpayer pays the amount under the wrong head and it cannot beused to discharge the liabilities which may be due in another head.

• In such cases taxpayers can claim the refund of the amount which mayhave been deposited under wrong head in GST by filing a refundapplication in FORM RFD-01 under the category “Excess balance inelectronic cash ledger”. The process of filing refund claim and itsdisbursement can sometimes lead to blockage of funds for the taxpayer.

5N at i o n a l A c ade m y o f C u s t o m s , I n d i re c t Taxe s an d N arc o t i c s ( N A C I N )

• Form GST PMT-09 is now available on GST portal and it enablesa taxpayer to make intra-head or inter-head transfer of amountavailable in Electronic Cash Ledger. A taxpayer can file GST PMT09 for transfer of any amount of tax, interest, penalty, fee orothers available under one (major or minor) head to another(major or minor) head in the Electronic Cash Ledger.

• Form GST PMT 09 provides flexibility to taxpayers to makemultiple transfers from more than one Major/Minor head toanother Major/Minor head if the amount is available in theElectronic Cash Ledger. To file Form GST PMT-09 taxpayers arerequired to login on GST portal with valid credentials andnavigate to Services > Ledgers > Electronic Cash Ledger > FileGST PMT-09 For Transfer of Amount option.

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• After Form GST PMT-09 is filed:

• ARN is generated on successful filing of Form GST PMT-09.

• An SMS and an email is sent to the taxpayer on his registered mobile and email id.

• Electronic Cash ledger will get updated after successful filing of Form GST PMT-09.

• Filed form GST PMT-09 will be available for view/download in PDF format.

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Personal Hearings in Virtual Mode in Customs, Central Excise and Service Tax

Judicial Cell (CBIC) Instructions F. No. 390/Misc/3/2019-JC dated 27th April 2020

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• Personal hearing, in respect of any proceeding under CustomsAct 1962, (and Central Excise Act, 1944 / Chapter V of FinanceAct, 1994) given by various authorities, such as Commissioner(Appeals), original adjudicating authorities and Compoundingauthority, may be conducted through video conferencing facility.

• Broad guidelines to conduct such virtual hearing are beingprovided so that ongoing Customs work of appeals andadjudications are completed expeditiously for quick delivery ofjustice – through quasi-judicial proceedings and in compliance ofoverall directions given by Hon’ble Supreme Court under Article142 of the Constitution of India in Suo moto Writ (Civil) No.5/2020).

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• Consent: The party, either as an appellant or a respondent, shall givehis consent to avail the personal hearing through video conferencingfacility, at the time of filing his appeal or immediately after the issueof this instruction. He should also indicate his email address forcorrespondence etc

• Sharing of Link: The date and time of hearing along with a link forthe video conference shall be informed in advance to the appellant/respondent or their consultant/ counsel and the concernedcommissioner representing revenue through the official email orelectronic media of the adjudicating/appellate authority, giving thedetails of officer-in-charge who would provide assistance to theparty, for conducting the virtual hearing. This link should not beshared with any other person without the approval of theadjudicating/appellate authority.

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Guidelines for the conduct of virtual mode of personal hearing through video

conferencing facility

N at i o n a l A c ade m y o f C u s t o m s , I n d i re c t Taxe s an d N arc o t i c s ( N A C I N )

• Proper Authorisation: The advocate/ consultant/ authorizedrepresentative, appearing on behalf of the party, in virtualhearing, should file his vakalatnama or authorization letter alongwith a copy of his photo ID card and contact details to theadjudicating/appellate authority through official e-mail address ofthe concerned authority after scanning the same. All personsparticipating in the video conference should be appropriatelydressed and maintain the decorum required for such an occasion.

• Virtual hearing through video conference shall be held from theoffice of adjudicating/appellate authority or any official videoconference facility set up in the office of theadjudicating/appellate authority.

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Guidelines for the conduct of virtual mode of personal hearing through video

conferencing facility (Contd)

N at i o n a l A c ade m y o f C u s t o m s , I n d i re c t Taxe s an d N arc o t i c s ( N A C I N )

• The virtual hearing through video conference will be conductedthrough available applications like VIDYO, or other securedcomputer network. The appellant/respondent should downloadsuch application in their computer system/laptop/mobile phonebeforehand for ready connectivity during virtual hearing, and jointhe video conference at the time allotted to them.

• In case where the party/ his representative wishes to participatein the virtual hearing proceeding along with their advocate, theyshould do so under proper intimation to the adjudicating/appellate authority. They may participate in virtual hearing alongwith their advocate/ authorized representative or join theproceedings from their own office.

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Guidelines for the conduct of virtual mode of personal hearing through video

conferencing facility (Contd)

N at i o n a l A c ade m y o f C u s t o m s , I n d i re c t Taxe s an d N arc o t i c s ( N A C I N )

• Record of Personal Hearing(PH): The submissions made by theappellant or their representative through the video conferencewill be reduced in writing and a statement of the same will beprepared, which shall be known as “record of personal hearing”.A soft copy of such record of personal hearing in PDF format willbe sent to the appellant through email ID provided by advocate/appellant/ respondent, within one day of such hearing.

• If the, appellant/their representative wants to modify thecontents of e-mailed record of personal hearing, they can do soand sign the modified record, scan and send back the signedrecord of personal hearing to the adjudicating/appellateauthority.

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Guidelines for the conduct of virtual mode of personal hearing through video

conferencing facility (Contd)

N at i o n a l A c ade m y o f C u s t o m s , I n d i re c t Taxe s an d N arc o t i c s ( N A C I N )

• If, however, the appellant/their representative do not resend theabove e-mailed record of personal hearing within 3 days of receiptof such e-mail, it will be presumed that they agree with the contentsof e-mailed record of personal hearing and adjudicatingauthority/appellate authority will proceed to decide the caseaccordingly. No modification in e-mailed record of personal hearingwill be entertained after 3 days of its receipt by appellant/theirrepresentative. The date of receipt of the email by theappellate/adjudicating authority will not be counted for thispurpose.

• The record of personal hearing submitted in this manner shall bedeemed to be a document for the purpose of Customs Act, 1962 interms of section 138C of the said Act, read with Section 4 ofthe information Technology Act, 2000.

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Guidelines for the conduct of virtual mode of personal hearing through video

conferencing facility (Contd)

N at i o n a l A c ade m y o f C u s t o m s , I n d i re c t Taxe s an d N arc o t i c s ( N A C I N )

• If the party/ advocate prefers to submit any document includingadditional submissions during the virtual hearing, he may do soby self-attesting such document and a scanned copy of the samemay be emailed to the adjudicating/appellate authorityimmediately after virtual hearing and in no case after 3 days ofvirtual hearing. The date of the hearing will be excluded for thispurpose.

• Any official representing the Department’s side can alsoparticipate in the virtual hearing through video conferencing. TheCommissionerate concerned shall inform the details in advanceregarding such participation.

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Guidelines for the conduct of virtual mode of personal hearing through video

conferencing facility (Contd)

N at i o n a l A c ade m y o f C u s t o m s , I n d i re c t Taxe s an d N arc o t i c s ( N A C I N )

GST Portal Updates

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• Return- Filing Form GSTR-3B, through EVC

• The taxpayers who are required to mandatorily use DSC to fileForm GSTR-3B, now have an option to file it using EVC.

• This is applicable to for all categories of Companies (includingLimited Liability Partnerships and PSUs), registered underCompanies Act, 2013.

• This option is available for returns filed in Form GSTR-3Bduring the period starting from 21-04-2020 to 30-06-2020.

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New Functionality

N at i o n a l A c ade m y o f C u s t o m s , I n d i re c t Taxe s an d N arc o t i c s ( N A C I N )

• Return - Adjustment of negative ITC, while distributing credit to its units by ISD, through Form GSTR- 6

• The persons registered as ISD can distribute ITC among itsUnits by filing Form GSTR-6, every month.

• Previously, ISD were not able to adjust negative ITC to its units,under a major head through ITC available under another majorhead. For example, if in a particular month, no ITC hadaccrued under a head but ITC reversal was required to be doneunder that head or in cases where no inward supplies under ahead but receipt of Credit Note(s) under that head for pastsupplies etc.

• ISD would now be able to adjust negative ITC whiledistributing credit through Form GSTR 6.

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New Functionality

N at i o n a l A c ade m y o f C u s t o m s , I n d i re c t Taxe s an d N arc o t i c s ( N A C I N )

• Payment - Creation of Electronic Cash ledger and LiabilityRegister for UIN holders

• UIN holders can claim refund under section 55 of the GST Act.The facility of cash ledger and liability register was notprovided to UIN holders earlier, as they were only claimingrefunds.

• As there is no check on invoices reported in Form GSTR-11, forclaiming refund, it was possible for the UIN holders to claimexcess refund in Form GST RFD-10, inadvertently.

• In such a scenario, there was no mechanism in place for theUIN holder to deposit the excess refund claimed voluntarily orfor the Tax Officer to create a demand against them.

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New Functionality

N at i o n a l A c ade m y o f C u s t o m s , I n d i re c t Taxe s an d N arc o t i c s ( N A C I N )

• Payment - Creation of Electronic Cash ledger and LiabilityRegister for UIN holders

• A cash ledger and a Liability Register, for UIN holders, has nowbeen created on the GST portal.

• A facility to make payment through challan has also beencreated in the Payment module for UIN holders.

• The UIN would now be able to make payment of the amountof excess refund claimed, on voluntary basis, through FormGST DRC-03. It would also be possible for the Tax Officer topost the liability in Liability Register (Part-II), if the UIN holderdoes not pay the excess amount voluntarily.

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New Functionality (Contd)

N at i o n a l A c ade m y o f C u s t o m s , I n d i re c t Taxe s an d N arc o t i c s ( N A C I N )

Legal Updates

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• Case of Commercial Steel Company – Decision of Hon’bleTelangana High Court in theWrit Petition No. 2161 of 2020

Facts

Petitioner had purchased goods from JSW Karnataka and goods weredestined for Hyderabad. Goods intercepted at Jeedimetla in Telanganaand notice of detention alleging “wrong destination” issued underSection 129 (3) of CGST Act. Though the goods were accompanied bytax paid documents which reflected payment of IGST, demand madefor payment of CGST + SGST. It is contended by the petitioner that sinceat that time the petitioner could not contest it on account of a marriagein the family, on 12.12.2019 at Hyderabad, and since the driver of thevehicle was pressurizing for release of the vehicle, Petitioner wasforced to pay the amountmentioned in the notice.

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Wrongful Detention – Tax not to be collected by Coercion

N at i o n a l A c ade m y o f C u s t o m s , I n d i re c t Taxe s an d N arc o t i c s ( N A C I N )

Facts….Contd…

The petitioner further contended that the said collection of tax andpenalty by the respondents is through coercion and threat in spite ofthe fact that the consignment was covered by all the requisitedocuments. It is alleged that when the goods were in transit in aninter-State sale, the respondents cannot detain the same and demandand collect the tax in the manner they have donewhich is arbitrary andwithout jurisdiction.

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Wrongful Detention – Tax not to be collected by Coercion

N at i o n a l A c ade m y o f C u s t o m s , I n d i re c t Taxe s an d N arc o t i c s ( N A C I N )

• Decision of the Hon’ble Court

TheHon’bleHighCourtheld that -

• In our considered opinion, there were no good and sufficientreasons for detention by the 1st respondent of the vehicle and thegoods which it was carrying when the transaction causingmovement of the goods was inter-State in nature and the provisionsof the SGST were not shown to have been violated. Also, there is nowarrant to levy any penalty since it cannot be said that there is anywilfulness in the conduct of the dealer.

• It is settled law that no tax shall be levied or collected except byauthority of Lawas perArticle 226of the Constitution of India

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Wrongful Detention – Tax not to be collected by Coercion

N at i o n a l A c ade m y o f C u s t o m s , I n d i re c t Taxe s an d N arc o t i c s ( N A C I N )

• In Dabur India Ltd. vs. State of Uttar Pradesh1, the Supreme Courtobserved that a litigant cannot be coerced by the Government to makepayment of duties which the litigant is contending not to be leviable.The Supreme Court held that though the State is entitled to enforcepayment and to take all legal steps, it cannot be permitted to play dirtygames with the citizens to coerce them in making payments when thecitizens were not obliged to make them. It also observed that if anymoney is due to the Government it should not take extra legal steps torecover it.

• Therefore, in our considered opinion, the impugned action of therespondents in collecting the amount of Rs.4,16,447/- from thepetitioner towards tax andpenaltyunder the CGSTand

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Wrongful Detention – Tax not to be collected by Coercion

N at i o n a l A c ade m y o f C u s t o m s , I n d i re c t Taxe s an d N arc o t i c s ( N A C I N )

• SGST Act, 2017 under threat of detention of the vehicle carrying thesaid goods for an absurd reason (‘wrong destination’)when the vehiclein question carried all the proper documents evidencing that it was aninter-State sale transaction is clearly arbitrary, violative of Articles 14,265 and300-Aof the Constitutionof India.

• The 1st respondent is directed to refund the same with interest at therate of 6% per annum from 13.12.2019 till the date of payment withina period of three (03) weeks from the date of receipt of copy of theorder.

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Wrongful Detention – Tax not to be collected by Coercion

N at i o n a l A c ade m y o f C u s t o m s , I n d i re c t Taxe s an d N arc o t i c s ( N A C I N )

• https://cbec-gst.gov.in/

• CBEC MITRA HELPDESK

• 1800 1200 232

• [email protected]

• GSTN Help Desk

• https://selfservice.gstsystem.in/ - Grievance redressal portal

• Help Desk Number: 0120-4888999

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Any ISSUES/ queries?

N at i o n a l A c ade m y o f C u s t o m s , I n d i re c t Taxe s an d N arc o t i c s ( N A C I N )

Any ISSUES/ queries?

• Twitter Handles

• For General Questions

• https://twitter.com/askGST_GoI

• For technology related issues

• https://twitter.com/askGSTech

• NACIN twitter

• https://twitter.com/NACIN_OFFICIAL

N at i o n a l A c ade m y o f C u s t o m s , I n d i re c t Taxe s an d N arc o t i c s ( N A C I N )28

THANK YOU

N at i o n a l A c ade m y o f C u s t o m s , I n d i re c t Taxe s an d N arc o t i c s ( N A C I N )29