GST Circular No. 191/03/2023-GST dated 27-03-2023
Clarification regarding GST rate and classification of ‘Rab’ based on the recommendation of the GST Council in its 49th meeting held on 18th February, 2023 –reg. Based on the recommendation of the GST council in its 49th meeting, held on 18th February, 2023, with effect from the 1st March, 2023, 5% GST rate has been notified on Rab, when sold in pre- packaged and labelled, and Nil GST, when sold in other than pre- packaged and labelled.
Hon’ble High Court held that there is no dispute that the recipient of Services – that is EY Entities – are located outside India. Thus, indisputably, the Services provided by the petitioner would fall within the scope of the definition of the term ‘export of service’ under Section 2(6) of the IGST Act. 35. The petition is, accordingly, allowed. The impugned order as well as the impugned orders-in-original are set aside. The Adjudicating Authority is directed to process the petitioner’s refund application as expeditiously as possible.
An authorised signatory – Manager-Finance & Accounts of Chinese origin company M/s. Oppo Mobiles India Private Limited Mr. Mahendra Kumar Rawat has been arrested by CGST Bhiwandi Commissionerate, for fraudulent availment of ITC amounting to Rs.19cr on fake invoices. The officers of CGST Bhiwandi Commissionerate in Mumbai Zone arrested Mr. Rawat today (22.03.23) and he will be in judicial custody till 03.04.23. Based on material evidence gathered during the investigation, he was arrested today under section 69 of the CGST Act, 2017 for contravention of section 132 of the CGST Act, 2017.
Hon’ble Madras High Court held that as per section 75(4) of the GST Act 2017 makes it clear that in cases, where an adverse decision is taken by the Assessing Officer against the assessee, personal hearing is mandatory. Admittedly, in the assessment proceedings, pertaining to the assessment year 2017-18, no personal hearing was afforded to the petitioner. This being the case, on the ground of violation of principles of natural justice as the impugned assessment order has been passed contrary to Section 75(4) of the GST Act 2017, which mandates personal hearing, the impugned assessment order dated 31.10.2022, pertaining to the assessment year 2017-18 has to be quashed and the matter has to be remanded back to the respondent for fresh consideration, on merits and in accordance with law.
- In case of purchase of tobacco leaves/bhukko from the agriculturist, the applicant is liable to pay GST on RCM basis at 5% [2.5% CGST and 2.5% SGST] in terms of[Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017], Sr. No. 109 of Schedule I.
- Applicant is liable to pay GST on forward charge basis at 5% [2.5% CGST and 2.5% SGST] in terms of [Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017], Sr. 109 of Schedule I, in respect of trading of tobacco leaves/bhuk_ko, procured from agriculturist, subject to the condition that they are engaged in trading of tobacco leaves/bhukko, procured from agriculturist, on as such basis i.e. without undertaking any further process on the same.
- In case of supply of unmanufactured tobacco leaf consequent to coating the same with natural edible gum, the applicant is liable to pay GST at 28% [14 % CGST and 14 % SGST] in terms of [Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017], Sr. No. 13 of Schedule IV. However, it is made clear that in case of supply of the said coated tobacco to the customers in gunny bag with their name being printed/mentioned on the gunny bags so as to identify the lot, then the applicant would be liable to pay GST at 28% [14 % CGST and 14 % SGST] in terms of [Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017], Sr. No. 13 of Schedule IV, along with 71% compensation cess in terms of [Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017] (Sr. No. 5).
- The applicant is liable for payment of GST at the rate of 12 % (6% CGST and 6% SGST) in terms of Notification No. 20/2019-C.T. (Rate), dated 30-9-2019 on the job work process of coating, done in respect of tobacco leaves supplied by other registered persons.
Hon’ble Calcutta High Court dismissed the writ petition by holding that the Corona Pandemic substantially ebbed in the year 2021 and as opportunity was given for virtual hearing, the petitioner ought to have availed the same. The conduct of the petitioner does not appear to be a bona fide one. At such a belated point of time, the Court is of the opinion that the matter is not required to be remanded back to the authority for reconsideration.
Subject: Guidelines regarding refund process within time limit. All the Proper officers are directed to decide the refund application and pass the final sanction/rejection order in form GST RFD -06 and the payment advice in FORM GST RFD-05 after verifying the correctness of the refund claim, in accordance with provisions of RGST Act. 2017 and Rules made thereunder, within 21 days of the date of receipt of the refund application.
Subject:- Regarding guidelines for reimbursement of late fee payable and deposited under Section 47 by the registered taxable person under the Rajasthan Goods and Services Tax Act, 2017 for the period from April 2021 to March 2022. The reimbursement of late fee payable and deposited under the Rajasthan Goods and Services Tax Act, 2017 for the period from April 2021 to March 2022 shall be available to the registered taxable persons who have furnished returns/details of outward supplies under section 37(GSTR 1), section 39 (GSTR 3B, GSTR 4, GSTR5. GSTR6, GSTR7), and section 45 (GSTR 10) under the Rajasthan Goods and Services Tax Act, 2017 by 31.03.2023.
Hon’ble High Court set aside the order of the adjudicating authority and the appellate forum by holding that that provision of Section 129(3) of the Act would not be invoked to subject a godown premises to search and seizure operation. For invoking Section 67 of the Act, existence of reasons to believe to subject the premises to search and seize goods is mandated. It is directed to the department to refund the amount collected from the petitioner as penalty positively within four weeks from the date of communication of this order.
Penalty u/s 129 justified on transportation of goods without a valid e-way bill: Abinash Kumar Singh Vs State of West Bengal & Ors. (Calcutta High Court) WPA 3374 of 2022 Date of Judgement: 03/03/2023
Hon’ble High Court held that transportation of goods with a proper e-way bill is one of the salient features of the Act. There is no scope to dilute the said provision of law for granting relief to an errant transporter. The Act cannot and ought not to be interpreted in such a manner that the very essence of the same is lost. Section 129 of the Act opens with a non obstante clause which lends a mandatory character to the same. The petitioner may or may not be directly responsible for the delay in issuance of the gate pass, but he is certainly at fault in transporting goods without a valid e-way bill.
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