Income Tax Law Updates
Notification/Circular:
CBDT Circular No.10 of 2022 dated 17-05-2022
The CBDT has issued Circular No 10 of 2022. Finance Act 2022 amended the definition of ‘specified person’ to, inter-alia, mean a person who has not filed ROI for 1 year to attract higher TDS and TCS under section 206AB and 206CCA of the Act. Earlier, if a person had not filed ROI for 2 years, the person was referred to as ‘specified person’ thereby making the section more stringent. A functionality was provided to check applicability of those sections. As per the Circular, the functionality has been changed to incorporate the amendment and therefore for FY 2022-23, it is important to check if any PAN is falling under the category of ‘specified person’ to attract a higher TDS rate. The data bank should also be kept as record by the deductor.
Goods and Services Tax Law Updates:
GST Notification No. 06/2022–Central Tax Dated 17-05-2022
In exercise of the powers conferred by the first proviso to sub-rule (3) of rule 61 of the Central Goods and Services Tax Rules, 2017, the Commissioner, on the recommendations of the Council, hereby extends the due date for depositing the tax due under proviso to sub-section (7) of section 39 of the Central Goods and Services Tax Act, 2017 in FORM GST PMT-06 for the month of April, 2022 till the 27th day of May, 2022.
GST Notification No.05/2022–Central Tax Dated 17-05-2022
In exercise of the powers conferred by sub-section (6) of section 39 of the Central Goods and Services Tax Act, 2017 (12 of 2017) read with sub-rule (1) of rule 61 of the Central Goods and Services Tax Rules, 2017, the Commissioner, on the recommendations of the Council, hereby extends the due date for furnishing the return in FORM GSTR-3B for the month of April, 2022 till the 24th day of May, 2022.
AAR/Case Laws/Judgement:
Hon’ble Supreme Court dismissed the department appeal against the decision of Gujarat High court wherein it was held that once the freight has already suffered the IGST as a part of the value of the goods being imported, the dual levy of the IGST cannot be imposed on the same freight amount by treating it as supply of service. Since the Indian importer is liable to pay IGST on the ‘composite supply’, comprising of supply of goods and supply of services of transportation, insurance, etc. in a CIF contract, a separate levy on the Indian importer for the ‘supply of services’ by the shipping line would be in violation of Section 8 of the CGST Act.
In re Gujarat Rural Industries Marketing Corporation Ltd. (GST AAR Gujarat) Date of Order 11-05-2022
Hon’ble AAR pronounced the ruling that Recipient of Supply cannot file Advance Ruling application under GST. Section 103(1) CGST Act, which stipulates that Advance Ruling shall be binding only on the applicant who had sought it and on the concerned officer/ jurisdictional officer in respect of the applicant. Section 95(a) CGST Act defines advance ruling as a decision provided in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. GRIMCO has not substantiated its locus standi to file said application as per section 95(a) CGST Act. We hold that GRIMCO’s supplier is not bound by our Ruling as per section 103(1) CGST Act.
The hon’ble CESTAT held that when the entire issue was in knowledge of the revenue since 1993, we do not find ourselves in agreement with the findings recorded by the Commissioner for invoking extended periods of limitation in the present case. Since we do not find any merits in the order invoking extended periods of limitation, the penalty imposed under Section 11AC cannot be sustained and needs to be set aside.
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