GST Update (09-10-2023)
The important procedure related recommendations of 52nd GST Council Meeting held on 07 Oct 2023 at New Delhi are as follows:
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Amnesty Scheme for filing of appeals where appeal could not be filed within the allowable time period
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The Council has recommended an amnesty scheme who could not file an appeal against the demand order passed on or before the 31st day of March, 2023, or whose appeal against the said order was rejected solely on the grounds that the said appeal was not filed within the time period, upto 31st January 2024, subject to the condition of payment of an amount of extra pre-deposit of 2.5% of the tax through Electronic Cash Ledger.
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Clarifications regarding taxability of personal guarantee offered by directors to the bank against the credit limits/loans being sanctioned to the company and regarding taxability of corporate guarantee provided for related persons including corporate guarantee provided by holding company to its subsidiary company
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The Council has recommended to issue a circular clarifying that no GST is to be levied when no consideration is paid by the company to the director in any form, directly or indirectly, for providing personal guarantee to the bank/ financial institutes on their behalf. In case of companies, the taxable value of supply of corporate guarantee provided between related parties as one per cent of the amount of such guarantee offered, or the actual consideration, whichever is higher.
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Provision for automatic restoration of provisionally attached property after completion of one year
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The Council has recommended to provide that the order for provisional attachment shall not be valid after expiry of one year from the date of the said order. This will facilitate release of provisionally attached properties after expiry of period of one year, without need for separate specific written order from the Commissioner.
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Clarification on various issues related to Place of Supply
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The Council has recommended to issue a Circular to clarify the place of supply in respect of (i) Supply of service of transportation of goods, including by mail or courier, in cases where the location of supplier or the location of recipient of services is outside India; (ii) Supply of advertising services; and (iii) Supply of the co-location services.
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Issuance of clarification relating to export of services
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The Council has recommended to issue a circular to clarify the admissibility of export remittances received in Special INR Vostro account, as permitted by RBI, for the purpose of consideration of supply of services to qualify as export of services.
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Allowing supplies to SEZ units/ developer for authorised operations for IGST refund route by amendment in Notification 01/2023-Integrated Tax dated 31.07.2023
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The Council has recommended to allow the suppliers to a SEZ developer or a SEZ unit for authorised operations to make supply of goods or services (except the commodities like pan masala, tobacco, gutkha, etc.) to the SEZ developer or the SEZ unit for authorised operations on payment of integrated tax and claim the refund of tax so paid.
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Alignment of provisions of the CGST Act, 2017 with the provisions of the Tribunal Reforms Act, 2021 in respect of Appointment of President and Member of the proposed GST Appellate Tribunals
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The Council has recommended amendments to provide that an advocate having ten years of experience in litigation under indirect tax laws to be eligible for the appointment as judicial member; the minimum age for eligibility for appointment as President and Member to be 50 years; & President and Members shall have tenure up to a maximum age of 70 years and 67 years respectively.
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Law amendment with respect to ISD
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GST Council in its 50th meeting had recommended that ISD (Input Service Distributor) procedure as laid down in Section 20 of the CGST Act, 2017 may be made mandatory prospectively for distribution of ITC in respect of input services procured by Head Office (HO) from a third party but attributable to both HO and Branch Office (BO) or exclusively to one or more BOs. The Council has now recommended amendments in Section 2(61) and section 20 of CGST Act, 2017 as well amendment in rule 39 of CGST Rules, 2017 in respect of the same.
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There have been some changes to the rate of goods and services too, which can be accessed at: https://pib.gov.in/PressReleasePage.aspx?PRID=1965431
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(Press Release ID: 1965431 posted On: 07 OCT 2023 4:58PM by PIB Delhi
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Thanks and Best Regards
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CA. Tarun Kr. Gupta
+91 9830124482
Follow me on LinkedIn at https://www.dhirubhai.net/in/tarun-gupta-20b45b
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