GST Calendar – Compliances for the month of December 2021

Nature of Compliances	Due Date
GSTR-7 (Tax Deducted at Source ‘TDS’)	Jan 10,2022
GSTR-8 (Tax Collected at Source ‘TCS’)	Jan 10,2022
GSTR-1 September 2021	Jan 11, 2022
IFF- Invoice furnishing facility (Availing QRMP)	Jan 13,2022
GSTR-6 September 2021 Input Service Distributor	Jan 13, 2022
GSTR-2B (Auto Generated Statement)	Jan 14,2022
GSTR-3B September 2021	Jan 20,2022
GSTR-5 September 2021 (Non-Resident Taxable Person)	Jan 20,2022
GSTR-5A September 2021 (OIDAR Service Provider)	Jan 20,2022
PMT-06 (who have opted for QRMP scheme)	Jan 25,2022

1. Major amendments w.e.f 01.01.2022

Input Tax Credit:

• Registered person can claim Input Tax Credit only if the same is reflecting in GSTR-2B.
• Input Tax Credit based on invoice or debit note can be availed only when details of such invoice/debit note:
  • have been furnished by the supplier in his outward supplies (GSTR-1); and
  •  have been communicated to the recipient of such invoice or debit note.

GST Refunds:

•  Process to claim refund in cases where the Unique Identity Number ‘UIN’ is not mentioned on invoice : Where UIN of the applicant is not mentioned on a tax invoice, refund of tax shall be available only if the copy of the invoice, duly attested by the authorized representative of the applicant and is submitted along with the refund application in FORM GST RFD-10

Wider power for Bank Attachment / Property:

• Order of attachment to be made in written instructions by the Commissioner and in FORM GST DRC-22. Further, a copy of such order shall also be sent to the person whose property is being attached u/s 83;
• In case the property attached is of perishable / hazardous nature and the person whose property has been attached pays an amount equivalent to the market price of / the amount that is or may become payable by such person, (whichever is lower), the property to be released forthwith, by an order in FORM GST DRC-23, on proof of payment. However, if the the said amount is not paid, the Commissioner may dispose of such property and the amount realized thereby shall be adjusted against the tax, interest, penalty, fee or any other amount payable by such person.
• Provisional attachment of property : An objection may be filed in FORM GST DRC-22A by such person whose property has been attached to the effect that the property attached was / is not liable to attachment. Commissioner may after affording an opportunity of being heard to the person filing the objection, release the said property by an order in FORM GST DRC23.
• Stricter norms for E-way Bill : Penalty enhancement u/s 129(1)(a) & (b)

Pre amendment	Post Amendment
Sec 129(1)(a) Where owner comes forward	Taxable goods : Tax along with penalty equal to 100% of tax payable. Exempted goods : 2% of the value of goods or Rs. 25,000/ (whichever is lower)	Taxable goods : Penalty equal to 200% of tax payable Exempted goods : 2% of the value of goods or Rs. 25,000/- (whichever is lower)
Sec 129(1)(b) Where owner doesn’t comes forward	Taxable goods : Tax along with penalty equal to 50% of value of goods net of tax paid. Exempted goods : 5% of the value of goods or Rs. 25,000/- (whichever is lower)	Taxable goods : 50% of value of goods or 200% of the tax payable on such goods. (whichever is higher) Exempted goods : 5% of the value of goods or Rs. 25,000/- (whichever is lower)

• Period specified for issuance of notice and passing of order u/s 129(3) of the CGST Act: The proper officer post detaining/seizing the goods, needs to issue a notice in Form MOV-07 within 7 days. Further, the notice must specify penalty payable. Order to be passed in Form MOV-09 within next 7 days post service of such notice.
• New (7th) edition of the Harmonized System (HS) nomenclature i.e., HS-2022 shall be effective from 01.01.2022 which has introduced significant changes to the Harmonized System : India being a party to HS Convention, has introduced various amendments to align HSN with HS-2020.
• Deferment of changes in GST rate in textile industry from 5% to 12% : Ministry of Finance vide Press Release dated December 31, 2021 stated that GST Council’s in its 46th meeting has recommended to defer the decision to change the rates in textiles recommended Thus, the existing rates in textile sector would continue beyond January 01, 2022.
• Extension of timelines for filing GSTR-9 and 9C : CBIC vide Notification No. 40/2021 – CT dated December 29, 2021 has extended the due date of furnishing GSTR-9 and 9C from December 31, 2021 to February 28, 2022 for the FY 2020-2021.

• No IGST payable on supply of imported goods on high sea sales basis – M/s Aie Fiber Resource and Trading India Private Limited | AAR Telangana.

Facts:

Applicant is located in the state of Telangana and is in the business of selling imported goods in two models, namley:

1. High sea sales basis – Here the applicant sells imported goods before it cross the customs frontier of India i.e., prior to clearance of goods from the customs to pre-identified customers; and
   1. Free Trading Warehouse Zones ‘FTWZ’ – In this scenario, applicant imports the goods and entrust them to a logistic service provider, who will store the imported goods of the applicant at their FTWZ facilities of Mumbai & Chennai. Applicant would then identify the Indian customer and on the directions of the applicant logistic service provider would cause delivery of goods to the Applicant’s Indian customer. Further, Indian customer would take delivery of such goods by filing ex-bond BOE and discharging their liability to the customs.

Issue:

• Whether supply of imported goods on High Sea sale basis / from FTWZ facilities by the Applicant to the Indian customers would be subject to IGST?
• If there is no liability to tax under IGST, then whether Input Tax Credit ‘ITC’ already taken will have to be reversed, to the extent of inputs, input services and capital goods used by the Applicant to the extent of the aforesaid supply?
• Whether the issue of the invoices from the Applicant’s only office located at Hyderabad, Telangana for sale of goods from the Mumbai and Chennai FTWZ facilities of the third party logistic service provider namely DHL would qualify for purpose of discharge of its obligation in terms of Sec 31 of the CGST Act, 2017 considering the fact that the Applicant does not have any other business/fixed establishment in the States where such FTWZ facilities are located?
• In case no, then whether the Applicant ought to obtain registration in the States of Maharashtra and Tamil Nadu (location of the FTWZ facilities) for sale of such goods from the FTWZ facilities belonging to the logistic service provider namely DHL?

Held:

• AAR observed that :
  • FTWZ is a part of SEZ scheme and it is a customs bonded warehouse, wherein goods can be traded and warehoused without payment of customs duty in these zones and that the applicant imports goods and stores them in a FTWZ till he finds a local customer who will purchase the goods and such purchaser clears the goods under the Customs Act.
  • Transactions proposed to be made by the applicant is covered by Entry 8 of Schedule III of CGST/SGST Acts and that such transactions does not attract GST.
  • In terms of explanation to Section 17(3) of CGST Act all transactions falling under Schedule III other than Entry 5 shall not be considered as ‘exempted supply’ for purpose of reversal of ITC of common input services. Therefore the value of the transaction referred above will not form part of the value of the exempt supply.
• AAR held that :
  • No IGST shall be applicable on supply of imported goods on High Sea sale basis / from FTWZ facilities by the Applicant to the Indian customers.
  • No need to reverse Input Tax Credit ‘ITC’ already taken, to the extent of inputs, input services and capital goods used by the Applicant in terms of the aforesaid supply.
  • Invoice issued from Applicant’s only office located at Hyderabad, Telangana for sale of goods from the Mumbai and Chennai FTWZ facilities of the third party logistic service provider namely DHL qualifies for purpose of discharge of its obligation in terms of Sec 31 of the CGST Act, 2017.
  • No need to obtain registration in the States of Maharashtra and Tamil Nadu (location of the FTWZ facilities) for sale of such goods from the FTWZ facilities belonging to the logistic service provider.
• Commissioner of GST and Central Excise vs Citibank N.A. | Supreme Court

Facts :

The show cause notices (SCNs) was received by the respondent from the Revenue authorities for non-payment of service tax on the interchange fee for numerous periods, involving before and after the negative list regime. 

 The transaction involving receipt of interchange fee as an issuing bank to the respondent is briefly enumerated below:

• A credit card holder purchases goods or services by using sale machines of merchant provided by an acquiring bank.
• The Card associations provide the gateway systems for transactions.

Our Founder, Late Mr R.N. Marwah, started RNM in 1946 as a Consultancy firm to cater to the bespoke accounting needs of our demanding clients. RNM is a best ca firm in Connaught place. Since 1947, our firm has been based in Janpath, New Delhi, which was originally known as Queensway and was an integral part of Lutyens’ vision for Lutyens’ Delhi, with offices in Gurugram and Bengaluru. It is one of the top ca firm in India. RNM is also regarded as one of the best ca firm in Delhi.