GST Daily
Dear Reader,
Today’s newsletter analytically summarizes the top GST stories reported at?taxmann.com.
During the initial period of implementation of GST, certain suppliers have failed to furnish the correct details of outward supplies in their FORM GSTR-1, which has led to certain deficiencies or discrepancies in the FORM GSTR-2A of their recipients. However, the concerned recipients may have availed of an input tax credit on the said supplies in their returns in FORM GSTR-3B. The discrepancies between the amount of ITC availed by the registered persons in their returns in FORM GSTR-3B and the amount as available in their FORM GSTR-2A are noticed by the tax officers during proceedings such as scrutiny/ audit/ investigation etc. due to such credit not flowing to FORM GSTR-2A of the said registered persons. Such discrepancies are considered by the tax officers as representing ineligible ITC availed by the registered persons. ? ? ?
Now, the CBIC has issued a clarification to deal with the difference in ITC availed in GSTR-3B and GSTR-2A for FY 2017-18 and 2018-19 since GSTR-2A could not be made available to the taxpayers on the common portal during the initial stages of implementation of GST and a detailed procedure is prescribed to ensure uniformity in the implementation. ? ? ?
The CBIC has issued a clarification on the entitlement of ITC for the transportation of goods to a place outside India where the place of supply is determined in terms of proviso to Section 12(8) of the IGST Act. It is also clarified that the supplier of service shall report the place of supply by selecting the State code as ‘96- Foreign Country’ from the list of codes in the dropdown menu available on the portal in FORM GSTR-1 and ITC would be available.
Clarifications on taxability of no claim bonus and applicability of e-invoicing under GST: Circular ?
The CBIC has issued a circular to clarify that there is no supply provided by the insured to the insurance company in form of agreeing to the obligation to refrain from the act of lodging an insurance claim during the previous year(s) and therefore, no claim bonus cannot be considered as a consideration for any supply provided by the insured to the insurance company. ? ? ?
It is also clarified that exemption from the generation of e-invoices is for the entity as a whole and not restricted by the nature of supply being made by the entity. ? ? ?
The CBIC has clarified that proceedings conducted under IBC also adjudicate the government dues pending under the CGST Act or under existing laws against the corporate debtor and it would be covered under the term ‘other proceedings’ in Section 84 of CGST Act.
Therefore, in cases where a confirmed demand for recovery has been issued by the tax authorities for which a summary has been issued in FORM GST DRC-07/DRC 07A against the corporate debtor, and where the proceedings have been finalised against the corporate debtor under IBC reducing the amount of statutory dues payable, then the jurisdictional Commissioner shall issue an intimation in FORM GST DRC-25 for reducing such demand.
The CBIC has issued a circular to clarify that new functionality has been made available on the common portal which allows unregistered persons to take a temporary registration and apply for a refund under the category ‘Refund for Unregistered person’. The date of issuance of the letter of cancellation of the contract/ agreement for supply by the supplier will be considered the date of receipt of the services by the applicant. Also, the manner and procedure for filing refund applications by unregistered persons are prescribed.
That’s it from us for today! Stay Tuned for more updates from?Taxmann.com.
Register for Taxmann’s Live Webinar | GST Issues faced by the Hotel Industry
?? 6th January 2023 (Friday) | ?? 5:00 PM – 6:00 PM (IST)
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?? Coverage of the Webinar:
?? GST issues relating to various arrangements entered with the brand owner and operators
?? Taxability of secondment of key managerial personnel
?? Classification of various services provided by the hotel in categories of composite supply, mixed supply and independent supplies
?? Practical issues relating to the time of supply
?? Issues relating to ITC reversals
?? Impact on ITC due to change in tariffs during a particular financial year
?? ITC with respect to renting, construction etc.
?? Speakers:
? CA Geetika Shrivastava – Executive Partner | Tattvam Advisors
She holds an experience of more than 12 years in the field of indirect taxation. She has worked with leading tax law firms and Big 4.
? CA Chetan Agrawal – Executive Partner | Tattvam Advisors
He has more than 12 years of experience in indirect tax advisory, compliance and litigation. He has rich experience advising various national and multinational companies across industry sectors.
?? Relevant For:
? Hotel Industry
? Practising Chartered Accountants
? Tax Professional
? Revenue Officers