Indirect Tax News Letter- July 2022

GST Calendar –Compliances for the month of July 2022

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

1. Summary of GST Notifications dated 5 July 2022, issued pursuant to 47^th GST Council meeting
2. Vide Notification No. 09/2022-Central Tax dated 5 July 2022, CBIC has appointed 5 July, 2022 as the date on which the provisions of clause (c) of Section 110 and section 111 of Finance Act, 2022 shall come into force.
   1. Clause (c) of Section 110 of the Finance Act 2022 is in relation to Section 49(10) of the CGST Act, 2017. It has been provided that any amount of tax, interest, penalty, fee or any other amount in Electronic Cash Ledger can be transferred to Distinct Person i.e. GST registered entities with same PAN as transferor, subject to the condition that there is no unpaid liability in Electronic Liability Ledger.
   1. Section 111 of the Finance Act 2022 is in relation to Section 50 (3) of the CGST Act, 2017. It has been provided that interest is payable only when “ITC is wrongly availed and utilized”. Thus, no interest is payable where even though ITC is wrongly availed but not utilised and ITC is reversed before utilization. 
3. Vide Notification No. 10/2022-Central Tax dated 5 July 2022, amendment to Section 44 of CGST Act, 2017 has been made. It is provided that filing of annual return (GSTR-9) is not mandatory for registered person whose aggregate turnover is upto INR 2 Crore for the financial year 2021-22. 
4. Extension of timeline for Composite Tax Payer-
   1. Vide Notification No. 11/2022 – Central Tax dated 05 July 2022, the due date for submitting FORM GST CMP-08 containing the details of self-assessed tax for quarter ended 30 June 2022 has been extended till 31 July 2022. 
   1. Vide Notification No. 12/2022- Central Tax dated 5 July 2022, delay in furnishing returns in FORM GSTR-4 (return in relation to composition scheme), late fee for such delay has been waived off for the period from 1 May, 2022 till 28 July, 2022. 
5. Extension of timeline vide Notification No. 13/2022-Central Tax dated 5 July 2022
6. The proper officer gets extended time for issuing any demand orders for non-fraud cases for the Financial Year 2017-18 upto 30 September 2023.
7. Time period between 1 March 2020 to 28 February 2022 has been excluded for computation of period of limitation u/s 73(9), for recovery of erroneous refunds.
8. For computing limitation period for filing of refund application u/s 54 and 55 of the CGST Act time period from 1 March 2020 to 28 February 2022 has been excluded
9. Amendments in several CGST Rules Vide Notification 14/2022- Central Tax dated 5 July 2022 
10. Automatic Cancellation of Suspension- Suspension of registration under Rule 21A (2A) of CGST Rules in respect of non-filing of returns shall be deemed to be revoked upon furnishing of all pending returns by the tax payer in the portal.
11. Duty Credit Scrip: The value of duty credit scrips shall be not included in the aggregate value of exempt supplies for the reversal of common credits in respect of inputs or inputs services or capital goods and reversal thereof. 
12. Declaration on the invoice: The taxpayers having aggregate turnover exceeding ₹20 crores in any of the Financial Year from 2017-18 and onwards, but not mandated to generate e-invoice shall be required to provide a declaration to that effect in the invoices issued by them. 
13. Erroneous refund: If the registered person deposited the erroneous refund amount along with interest & penalty through cash ledger, then an amount equivalent to the deposit by taxpayers through FORM GST DRC-03, shall be re-credited to electronic credit ledger by proper officer by an order made in FORM GST PMT-03A.
14. Refund of accumulated ITC on the export of electricity: The documentary evidence for claiming a refund on accumulated credits on the export of electricity has been notified to ease the process of claiming refunds.
15. UPI and IMPS shall be allowed as modes of payment towards tax, interest, penalty, fees, or any other amount. 
16. FORM GST PMT-09 shall be used for the transfer of any amount of tax, interest, penalty, fee or any other amount available in the Electronic Cash ledger of CGST or IGST to the Electronic Cash ledger for CGST or IGST of distinct person.
17. Refund of accumulated credits due to inverted duty structure: The formula has been amended to consider utilization of ITC on account of inputs and input services in the pro-rata ratio in which ITC had been availed during the said tax period.
18. Levy of interest on Net Cash liability and Input Tax Credit wrongly utilised: Changes has been incorporated in Rule 88B regarding-
    1. interest calculation only on the Net liability after utilising the input for the period of delay in filing of GST return, and
    1. In case of ITC wrongly availed, interest shall be calculated on the amount of ITC availed & utilised.
19. Value of exports for claiming refund of accumulated Input Tax Credit: For claiming refund of accumulated ITC on the export of goods, the value of goods shall be taken as lesser of the following-
20. declared FOB value in the Shipping bill or Bill of Export or 
21. value declared in the tax invoice/bill of supply
22. Amendments in several CGST Rules Vide Notification 14/2022- Central Tax dated 5 July 2022
23. Rule 95A providing for a refund on supplies from Duty-Free Shops at international terminals has been withdrawn retrospectively from 1 July 2019. 
24. Refund of IGST paid on export of goods: Rule 96 has been retrospectively amended from July 2017 to make refund claims for exports of goods contingent on the matching of shipping details with GSTR-1. 
25. GSTR-3B: The format of FORM GSTR-3B has been revised for reporting the supply of services through aggregators/e-commerce operators, the tax on which it shall be paid by such operators under Section 9(5). Table 4 for the ITC claims has also been revised. 
26. GSTR-9/9C: The format for GSTR-9 and 9C for FY 2021-22 have been amended/inserted in line with the changes in relevant provisions. Few of them are as under:
27. The registered person shall report non-GST supply (5F) separately and shall have an option to either separately report his supplies as exempted and nil-rated supply or report consolidated information for these two heads in the “exempted” row only.
28. Six digit HSN code is mandatory for taxpayers having annual turnover in the preceding year upto 5 Cr for both inward and outward supplies and four digit HSN code for taxpayers having annual turnover in the preceding year upto 5 Cr. Further, for FY 2021-22 the registered person shall have an option to not fill Table 18 (Inward Supplies). 
29. Clarification issued by CBIC vide Circular 170-176 dated 6 July 2022 
30. Circular no. 170/02/2022-GST dated 6 July 2022 has been issued in relation to a new Rule to Section 50 of the CGST Act (Rule 88B) with retrospective effect from 1 July 2017 has been introduced prescribing the manner to calculate interest-
31. Delayed Returns- As per Sub Rule (1), if the tax liability declared in return is paid belatedly, interest is payable in cash on such portion of the liability.
32. Wrong Payment of tax- In case of wrong availment of ITC, interest would be payable only if such ITC is utilised.
33. Other Cases- As per sub-rule (2), in all other cases (such as short payment of taxes, non-payment of taxes, etc.) Interest is payable from the due date for payment of such tax, till the payment is made.  
34. Furnishing of correct and proper information of inter-State supplies and amount of ineligible/blocked Input Tax Credit and reversal thereof in return in FORM GSTR-3B and furnishing statement in GSTR-1 has been made mandatory vide Circular No. 170/02/2022- GST.
35. Clarification regarding Fake Invoicing issued Vide Circular No. 171/03/2022- GST
36. Issuing of tax invoice by the supplier to the recipient without actual supply of goods or services or both will not amount to supply and hence no demand/recovery/penal action can be taken against the supplier under Section 73 and 74 of the CGST Act, whereas, penal action will be taken against the supplier under Section 122(i)(ii) of the CGST Act.
37. When the recipient of the fake tax invoice avails ITC on account of the said tax invoice, he shall be liable for demand/recovery/penal action u/s 74 and applicable interest under Section 50 for contravention of Section 16(2)(b) of the CGST Act. 
38. When the recipient of the fake tax invoice avails ITC on account of the said tax invoice and further passes on to another registered person by issuing invoices without actually supplying goods or services shall be liable for penal action both under Section 122(1)(ii) and 122(1)(vii) of the CGST Act for issuing invoices without actually supplying goods or services. 

• Clarification on various issues introduced Vide Circular No. 172/04/2022- GST
• Clarification on refund claimed by recipient of deemed export supplies
• ITC availed by the recipient of deemed export supplies would not be subjected to provisions of Section 17 of the CGST Act, 2017 as such tax is not ITC in terms of the provisions of Chapter V of the CGST Act, 2017. 
• ITC availed by the recipient of the deemed export supply for claiming refund of tax paid on supplies regarded as deemed exports is not be included in the “Net ITC” for computing of refund of unutilised ITC on account of zero-rated supplies or inverted rate structure.
• Clarification on various issues of Section 17(5) of the CGST Act
• Scope of ITC is being widened and would now be made available in respect of goods or services which are obligatory for an employer to provide to it’s employees, under any law for the time being in force.
• It has been provided that leasing referred in Section 17 refers to leasing of motor vehicles, vessels and aircrafts only and not leasing to any other items. Availment of ITC is available in case of leasing, other than leasing of motor vehicles, vessels and aircrafts.
• Incentives provided by the employer to the employees is not subjected to GST- As per Schedule III of the CGST Act, services by employee to the employer in course of or in relation to his employment is not considered as supply and hence GST is not applicable on any perquisites provided by the employer to its employees in term of contractual agreement entered between them.
• Balance in the electronic credit ledger can be used for making payment of any tax under the GST Law- Any payment towards output tax, whether self-assessed in the return or payable as consequences of any proceeding under the provisions of GST Laws, can be made by utilization of the amount available in the electronic credit ledger of a registered person. Furthermore, output tax does not include tax paid under Reverse Charge Mechanism hence electronic credit ledger cannot be used for making any payment of tax under RCM. 
• Balance in electronic credit ledger cannot be used for making payment of any liability other than tax under the GST Laws- The electronic credit ledger can be used only for making payment of output tax under CGST and IGST Act. It cannot be used for making payment of any interest, penalty, fees or any other amount payable under the said Acts. Electronic credit ledger cannot be used for payment of erroneous refund sanctioned in cash
• Electronic cash ledger can be used for making of payment of any liability under the GST Laws- The amount available in the electronic cash ledger can be used for making any payments towards tax, interest, penalty, fees or any other amount payable under the GST Laws. 
• GSTR-3B: The format of FORM GSTR-3B has been revised for reporting the supply of services through aggregators/e-commerce operators, the tax on which it shall be paid by such operators under Section 9(5). Table 4 for the ITC claims has also been revised. 
• Clarification has been issued vide Circular No. 173/05/2022- GST regarding refund of accumulated input tax credit on account of inverted structure. Refund would be allowed in cases where accumulation of input tax credit is on account of rate of tax on outward supply being less than the rate of tax on inputs (same goods) at the same point of time, as per some concessional notification issued by the Government providing for lower rate of tax for some specified supplies subject to fulfilment of other conditions.
• Re-credit in Electronic Credit Ledger – Vide Circular No. 174/06/2022-GST, a new functionality of FORM GST PMT-03A has been introduced in the GSTN. It has been clarified that the new functionality allows proper officer to re-credit the amount in electronic credit ledger in cases where any erroneous or excess refund has been sanctioned to them had been paid either on their own or on being pointed out by the tax officer. 
• Export of Electricity- The exporters of electricity can now avail refund by filing application for refund under “Any Other” category electronically in FORM GST RFD-01, on the portal mentioning “Export for electricity” in the remark column of the application. Manner by which the refund can be filed is clarified vide Circular No. 175/07/2022-GST dated 6 July 2022.
• Withdrawal of Circular No. 106/25/2019-GST dated 29.06.2019 – Vide Circular No. 176/07/2022-GST dated 6 July 2022 it has been clarified that the benefit of availing refund of taxes paid on inward supply of indigenous goods by retail outlets established at departure area of the international airport beyond immigration counters when supplied to outgoing international tourist against foreign exchange has been withdrawn. 
• Summary of GST Notifications dated July 13, 2022, Pursuant to 47^th GST Council
• Vide Notification No. 03-CT(R), IT(R) & UT(R) dated July 13, 2022 rate of GST has been revised on supply of specified services w.e.f. July 18, 2022 

S. No	Services	Previous Rate of Tax	Effective Rate of Tax
A.	Transport of passengers by ropeways, with or without accompanied belongings	18%	5% [ITC of goods used in supplying service has not taken]
B.	Transport of goods by ropeways	18%	5% [Input Tax Credit (‘ITC’) of goods used in supplying service has not taken]
C.	Hotel accommodation below 1,000/- INR per day	NIL	12%
D.	Works contract for roads, bridges, railways, metro, effluent treatment plant, crematorium etc	12%	18%
E.	Works contract supplied to central and state governments, local authorities for historical monuments, canals, dams, pipelines, plants for water supply, educational institutions, hospitals etc. & sub-contractor thereof	12%	18%
F.	Services supplied by foreman to chit fund	12%	18%
G.	Renting of goods carriage where the cost of fuel is included in the consideration charged from the service recipient.	18%	12%
H.	Supporting services in transport (This entry does not include goods transport service involving Goods Transport Agency (GTA) service, which falls under Heading 9965)	5% / 12%	18%
I.	Services provided by a clinical establishment by way of providing room (other than Intensive Care Unit (‘ICU’)/Critical Care Unit (‘CCU’)/Intensive Cardiac Care Unit (‘ICCU’)/Neo natal Intensive Care Unit (‘NICU’) having room charges exceeding INR 5000 per day to a person receiving health care services.	NIL	5% [ITC of goods and services used in supplying service has not been taken]
J.	Services by way of treatment or disposal of biomedical waste or the processes incidental thereto by a common bio-medical waste treatment facility to a clinical establishment.	NIL	12%

• Vide Notification No. 03-CT(R), IT(R) & UT(R) dated July 13, 2022 rate of GST has been revised on supply of GTA Services w.e.f. July 18, 2022 

S. No	Services	Rate of Tax	Conditions
i.	Services of Goods Transport Agency (‘GTA’) supplied for transportation of goods.	5% [Payable on RCM]	•       GTA does not exercise the option to itself pay tax on the services supplied by it•       ITC of goods and services used in supplying service has not been taken by GTA provider
ii.	Services of GTA supplied for transportation of goods (including used household goods for personal use) in case	5% / 12%	•       GTA exercises the option to pay tax itself on services supplied by it •       GTA service provider is required to opt payment of tax @5% or GST@ 12% before 15th March of the preceding financial year (‘FY’). For FY 2022-23, option can be exercised till August 16, 2022•       ITC of goods and services used in supplying service has not been taken where GTA opts to pay 5%

• Vide Notification No. 04-CT(R), IT(R) & UT(R) dated July 13, 2022 exemption from payment of GST has been withdrawn on specified services w.e.f. July 18, 2022

S. No	Services
1.	Renting of residential dwelling to registered persons
2.	Services by a hotel, inn, guest house, club or campsite, for residential or lodging purposes, having value of supply of a unit of accommodation less than or equal to INR 1000/- per day
3.	Air travel except economy class for North-Eastern states and Bagdogra
4.	Transportation by rail or a vessel of railway equipment or materials
5.	Transportation provided by GTA by way of transport of goods where consideration for such transportation in single carriage is less than INR 1500/-, and for a single consignee is less than INR 750/-
6.	Storage and warehousing of taxable goods (spices, nuts, copra, sugarcane, jaggery, raw vegetable fibres such as cotton, flax, jute etc., indigo, unmanufactured tobacco, betel leaves, tendu leaves, coffee and tea)
7.	Services provided by RBI, SEBI, IRDAI, FSSAI, GSTN
8.	Services like fumigation of warehouses of agricultural products
9.	Services by way of slaughtering of animals
10.	Services provided by the cord blood banks by way of preservation of stem cells or any other service in relation to such preservation
11.	Services provided by a clinical establishment by way of providing room [other ICU/ CCU/ ICCU/ NICU] wherein the room charges exceeds INR 5000/- per day to a person receiving health care services
12.	Services provided by operators of the common bio-medical waste treatment facility to a clinical establishment by way of treatment or disposal of biomedical waste or the processes incidental thereto
13.	Training or coaching supplied by an individual in any recreational activities relating to arts or culture is being restricted as being exempt services

• Vide Notification No. 04-CT(R), IT(R) & UT(R) dated July 13, 2022  GST has been exempted on specified services w.e.f. July 18, 2022

S. No	Services
01.	Services provided by the Department of Posts by way of post card, inland letter, book post and ordinary post (envelopes weighing less than 10 grams).
02.	Tour operator service which is performed partly in India and partly outside India, supplied by a tour operator to a foreign tourist, to the extent of the value of the tour operator service which is performed outside India. Formula for computing the value of tour operator service performed outside India has been provided

• Vide Notification No. 05-CT(R), IT(R) & UT(R) dated July 13, 2022  GST is applicable under RCM in relation to the following services w.e.f. July 18, 2022

S. No	Services	Recipient of Service	Supplier of Service
1.	Service by way of renting of residential dwelling to a registered person.	Any registered person	Any person
2.	Services by the department of posts by way of speed post, express parcel post, life insurance, and agency services provided to a business entity	Any business entity located in the taxable territory	Central Government, State Government, Union territory or local authority
3.	Services of GTA supplied in relation to transportation of goods (including used household goods for personal use) in case GTA has not exercised the option to pay GST under forward charge	Specified persons	GTA

• Vide Notification No. 06-CT(R), IT(R) & UT(R) dated July 13, 2022 Rate of GST on certain goods has been amended w.e.f. July 18, 2022

Chapter/Heading/Sub-heading/Tariff item	Goods	Rate of Tax
0403	Curd, Butter Milk, lassi, pre-packaged and labelled	5%
1701 or 1702	Jaggery of all types including Cane Jaggery (gur), Palmyra Jaggery, pre-packaged and labelled; Khandsari Sugar, pre-packaged and labelled	5%
1904	Puffed rice, commonly known as Muri, flattened or beaten rice, commonly known as Chira, parched rice, commonly known as khoi, parched paddy or rice coated with sugar or gur, commonly known as Murki, pre-packaged and labelled	5%
3006	Ostomy appliances including pouch or flange, stoma adhesive paste, barrier cream, irrigator kit, sleeves, belt, micro-pore tapes	5%
9021	Orthopaedic appliances, such as crutches, surgical belts, and trusses; Splints and other fracture appliances; artificial parts of the body; other appliances which are worn or carried, or implanted in the body, to compensate for a defect or disability; intraocular lens [other than hearing aids]	5%
4107	Leather further prepared after tanning or crusting, including parchment-dressed leather, of bovine (including buffalo) or equine animals, without hair on, whether or not split, other than leather of heading 4114	12%
4112	Leather further prepared after tanning or crusting, including parchment-dressed leather, of sheep or lamb, without wool on, whether or not split, other than leather of heading 4114	12%
4113	Leather further prepared after tanning or crusting, including parchment-dressed leather, of other animals, without wool or hair on, whether or not split, other than leather of heading 4114	12%
4114	Chamois (including combination chamois) leather; patent leather and patent laminated leather; metallised leather	12%
4115	Composition leather with a basis of leather or leather fibre, in slabs, sheets or strip, whether or not in rolls; parings and other waste of leather or of composition leather, not suitable for the manufacture of leather articles; leather dust, powder and flour	12%
4905	Maps and hydrographic or similar charts of all kinds, including atlases, wall maps, topographical plans and globes, printed	12%
6815	Fly ash bricks, Fly ash aggregates, Fly ash blocks	12%
8419 12	Solar water heater and system	12%
3215	All Goods, including printing ink, writing or drawing ink and other inks, whether or not concentrated or solid, fountain pen ink, ball pen ink	18%
4907	Cheques, loose or in book form	18%
8211	Knives with cutting blades, serrated or not (including pruning knives), other than knives of heading 8208, and blades therefor	18%
8215	Spoons, forks, ladles, skimmers, cake-servers, fish-knives, butter-knives, sugar tongs and similar kitchen or tableware	18%
8413	a)     Concrete pumps [8413 40 00] b)     other rotary positive displacement pumps [8413 60]; c)     Power driven pumps primarily designed for handling water, namely, centrifugal pumps (horizontal and vertical), deep tube-well turbine pumps, submersible pumps, axial flow and mixed flow vertical pumps	18%
8414 20 10	Bicycle pumps	18%
8414 90 12	Parts of air or vacuum pumps and compressors of bicycle pumps	18%
8433	Machines for cleaning, sorting or grading eggs, fruit or other agricultural produce, other than machinery of heading 8437, parts thereof [8433 90 00]	18%
8434	Milking machines and dairy machinery	18%
8437	Machines for cleaning, sorting or grading, seed, grain or dried leguminous vegetables, machinery used in milling industry or for the working of cereals or dried leguminous vegetables other than farm type machinery and parts thereof	18%
84 or 85	E-waste	18%
8539	Light Emitting Diode (LED) lamps, lights and fixture, their metal printed circuits board	18%
8807	Parts of goods of heading 8801 (Non powered aircraft)	18%
9017	Drawing, marking-out or mathematical calculating instruments (for example, drafting machines, pantographs, protractors, drawing sets, slide rules, disc calculators), instruments for measuring length, for use in the hand (for example, measuring rods and tapes, micrometers, callipers), not specified or included elsewhere in chapter	18%
7102 &7104	Cut and polished diamonds	18%

• Vide Notification No. 07-CT(R), IT(R) & UT(R) dated July 13, 2022, exemption from payment of GST has been withdrawn on specified goods w.e.f. July 18, 2022
• Pre-packaged and pre-labelled retail pack in terms of Legal Metrology Act, 2009 including pre-packed, prelabelled curd, lassi, butter milk, chhena, paneer, natural honey, dried makhana etc. 
• Purified water
• Vide Notification No. 08-CT(R), IT(R) & UT(R) dated July 13, 2022, the rate of GST on supplies of goods in connection with coal methane and petroleum operations undertaken under specified polices has been increased from 5% to 12%.
• Vide Notification No. 09-CT(R), IT(R) & UT(R) dated July 13, 2022, it has been specified that refund of unutilised ITC on account of inverted duty structure is not available in relation to supply of specified goods including edible oils, coal, lignite, peat etc.
• Vide Notification No. 10-CT(R), IT(R) & UT(R) dated July 13, 2022, GST rate on supply of fly ash bricks, fly ash aggregates and fly ash blocks has been increased from 5% to 12%.
• Vide Notification No. 11-CT(R), IT(R) & UT(R) dated July 13, 2022, Concessional GST rate @5% on supply of scientific and technical equipments to public funded research institutions has been withdrawn.
• Vide Notification No. 15 & 16-CT(R), IT(R) & UT(R) dated July 13, 2022, Concessional rate of GST provided on supply of fly ash bricks, fly ash aggregates and fly ash blocks under general composition scheme has been withdrawn. Further, taxpayer dealing in such goods is required to obtain GST registration even if its turnover is less than INR 40 lakhs. 
• GST exempt on annuity payments for road construction- Karnataka High Court 

M/s DPJ Bidar – Chincholi Road Project Pvt Ltd (Petitioner) and Ors Vs UOI and Ors | Karnataka High Court | 11^th July 2022

Facts-

• The Petitioner in the instant case are concessionaries/ contractors entrusted with construction of road by one of the respondents (Karnataka Road Development Corporation Limited)
• The Petitioners filed the present writ petition praying that the clarification issued vide the Circular dated June, 17, 2021 is liable to be set aside as it is contrary to the exemption notification.
• Vide Notification No. 12/2017- CT (R) Tax dated June, 28, 2017, 100% exemption under GST was granted towards collection of toll charges, which consisted of the charges collected towards construction as well as services (operation and maintenance of the road) provided by the concessionaries/ contractors. 
• Thereafter, two more notifications were issued (Notification No. 32/2017 and Notification No. 33/2017- CT (R) dated October 13, 2017) and the services by way of access to road or a bridge on payment of annuity was also exempt under GST. 
• However, CBIC vide it’s Circular No. 150/06/2021-GST dated June 17, 2021 clarified that access to road or bridge, whether consideration are in the form of toll or annuity is exempted from GST and annuity (deferred payments) received on construction of roads and highways is not exempt from GST.
• Aggrieved by the same, the present writ petition was filed before the Karnataka HC.

Held-

• The Karnataka High Court upheld that annuity payment awarded by highway authorities to concessionaires is exempt from GST.
• The Hon’ble High Court observed that the Circular dated June 17, 2021 issued to clarify the Notification No. 32 and 33/ 2017- CT (R) dated October, 13, 2017 is contrary in nature and a Circular issued by CBIC cannot be contrary to the provisions of Exemption Notification and hence has been held bad in law.
• In view of the above, the Hon’ble High Court set aside / quashed the Circular and further directed that if the respondents wish to charge GST on annuity payment and alter the Notification No. 32 and 33/ 2017- CT (R) dated October, 13, 2017, it has to issue fresh notifications amending it’s earlier notifications.