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Please find tax updates in Newsletter 16 as below:

Index

1. GST Notification
2. GSTN Update
3. GST in Media
4. Income Tax in Media
5. Press Release
6. Central Sales Tax - CST
7. GST Article

GST Notification


1) 01.12.2021 : CBIC issued notification no. 37/2021-CT dated 01.12.2021 : GST Form DRC-03 is being amended vide this notification. Heading of the FORM GST DRC-03, serial no.3, 5 and 7 amended to include scrutiny, intimation of tax ascertained through Form GST DRC-01A, audit, inspection or investigation, others (specify).& Tenure of Authority for Advance Ruling has been increased from 4 to 5 Years w.e.f. November 30, 2021. Read more

GSTN Update


1) 02.12.2021 : Module wise new functionalities deployed on the GST Portal for taxpayers - Various new functionalities are implemented on the GST Portal, from time to time, for GST stakeholders. These functionalities pertain to different modules such as Registration, Returns, Advance Ruling, Payment, Refund and other miscellaneous topics. Read more

GST Media

1) 29.11.2021 : 29.11.2021 : Hosiery makers slam revised GST rate on apparel – The South India Hosiery Manufacturers Association (Sihma) urged Centre to roll back the revised GST rate on apparel items. The GST council, in its previous meeting, raised tax up to 12% from 5% on several textile and apparel items, and footwear from January. GST rate on woven garments of any value has been raised to 12% from 5% on products priced up to Rs 1,000. Industry experts said it would impact working capital requirement, besides sales that were gradually increasing following Covid crisis. The new tax will impact hosiery manufacturers, Sihma president A C Eswaran said. Read more

2) 30.11.2021 : 30.11.2021 : Centre committed to compensate states for 5 yrs for revenue loss due to GST roll out – The Centre is committed to compensate states for five years for the revenue loss due to GST implementation as provided in the statute, Finance Minister Nirmala Sitharaman said on Tuesday. The GST Constitutional Amendment Act provides for the centre compensating the state for five years for loss of revenue arising on account of implementation of the goods and services tax (GST) and during the transition period, the states’ revenue is protected at 14 per cent per annum over the base year revenue of 2015-16. Read more.

3) 01.12.2021 : Petrol and diesel can’t be brought under GST in pandemic times, says GST Council - The 45th GST Council has decided not to include petrol and diesel and ATF under GST until India overcomes the COVID-19 pandemic. Government officials told CNBC-TV18 that the call to levy GST on petroleum products is on hold considering the current COVID situation. Read more

4) 01.12.2021 : CBIC detects bogus tax credit worth Rs.38,000 crore since last November - The Central Board of Indirect Taxes and Customs (CBIC) has since last November detected Rs.38,000 crore of bogus claims from businesses for input tax credit in a technology and data analytics enabled drive against tax evasion, said a person familiar with the development. The result of the CBIC’s year-long compliance drive points to the potential goods and services tax (GST) has in widening the tax base buoyancy, one of the key goals of the 2017 indirect tax reforms. Read more

5) 02.12.2021 : Not satisfied why petroleum products can’t be brought under GST: Kerala HC - A division bench of Kerala High Court on Wednesday said it was not satisfied with the reasons pointed out by the Centre and the GST Council on why petroleum products could not be brought under the GST regime. One of the reasons cited by the Council was that during the pandemic, it would be difficult to bring petroleum products under the GST regime. Last month, while hearing a petition of Kerala Pradesh Gandhi Darshanavedi, challenging the decision of the GST Council not to include petroleum products under GST, the High Court had directed the Council to file a statement. Read more

Income Tax in Media

1) NIL

Press Release


1) 29.11.2021 : Gross GST Collection in FY 2021-22 shows increasing trend - The gross GST Collection in FY 2021-22 post COVID-19 pandemic outbreak are showing an increasing trend. Minister stated that the GST compensation cess levied under Section 8 of the GST (Compensation to States) Act, 2017 is transferred into a non-lapsable Fund known as GST Compensation Fund which forms part of the Public Account of India as provided in Section 10(1) of the Act. The States are being compensated for any loss of revenue arising on account of implementation of GST for five years out of the Compensation Fund as per Section 10(2) of the said Act. GST compensation for financial years 2017-18, 2018-19 and 2019-20 has already been paid to the states, the Minister added. Read more

2) 01.12.2021 : Income Tax Department conducts search operations in Rajasthan - The Income Tax Department initiated search and seizure operations on a group engaged in manufacturing and export of jewellery and coloured gemstones at Jaipur on 23.11.2021. The search action covered more than 50 premises at different locations in and around Jaipur. The search action has resulted in seizure of cash of about Rs. 4 crore and jewellery valued at Rs. 9.00 crore. So far, detection of undisclosed income of more than Rs. 500 crore has been made in the group, out of which aggregate amount of Rs. 72 crore has been admitted by the respective group entities as their undisclosed income. Read more

3) 01.12.2021 : Rs. 1,31,526 crore gross GST revenue collected in November 2021- The gross GST revenue collected in the month of November 2021 is ₹ 1,31,526 crore of which CGST is ₹ 23,978 crore, SGST is ₹ 31,127 crore, IGST is ₹ 66,815 crore (including ₹ 32,165 crore collected on import of goods) and Cess is ₹ 9,606 crore (including ₹ 653 crore collected on import of goods). The government has settled ₹ 27,273 crore to CGST and ₹ 22,655 crore to SGST from IGST as regular settlement. The total revenue of Centre and the States after regular settlements in the month of November 2021 is ₹ 51251 crore for CGST and ₹ 53,782 crore for the SGST. Centre has also released ₹ 17,000 crore to States/UTs towards GST compensation on 03.11.2021. Read more

Central Sales Tax - CST

1) 01.12.2021 : Punjab exempts 1.5 lakh cases of traders from Form ‘C’ assessment - In a major reprieve to traders ahead of the assembly polls, the Punjab Cabinet on Wednesday decided to exempt about 1.50 lakh cases from assessment related to cases of ‘C’ form from 2014-15 to 2017-18. The decision would mean that about 8,500 would now be assessed under this category every year. “This trader-friendly decision would cost Rs 200 crore to the state exchequer,” an official statement said. Read more


GST Article

1) ASSESSMENT UNDER GST - By Mr. Ashish Miglani - INTRODUCTION In this article we will study about different types of Assessments under GST which can help each and every Professional as well as Taxpayer to be aware of how he can protect himself against the Read more

3) Module wise new functionalities deployed on the GST Portal for taxpayers - Source : GSTN / News and Updates 02.12.2021 Various new functionalities are implemented on the GST Portal, from time to time, for GST stakeholders. These functionalities pertain to different modules such as Registration, Returns, Advance Ruling, Payment, Refund and other Read more



Case Laws

1) In the case of SBI Cards & Payment Services Limited v. Union of India and others the Hon’ble High Court of Punjab and Haryana has ordered on 08.08.2021 that the Authority should refund GST worth Rs. 108 crores paid under the wrong head along with applicable interest as the money was lain with the Authority for the past two and a half years.

During the initial stage of the GST regime the complete break up of individual transactions was not available to the Petitioner and in the absence thereof for the period April 2018 to December 2018 the Petitioner paid CGST and SGST of about Rs. 108 crores approximately considering the transactions to be intra-state sales. It later transpired that those transactions for which the amount of Rs. 108 crores approximately had been paid as on the basis of them intra-state sales were actually inter-state transactions. It was in those circumstances that the Petitioner applied for refund of the amount wrongly paid on the basis that these transactions were intra-state transactions. At that stage the Department required it to first make the payment under the right head Integrated Goods and Services Tax (“IGST”) and then the prayer for refund would be considered. The Petitioner hence deposited another amount of Rs. 108 cores approximately as tax which was due on the inter-state transactions. Even then its plea for refund was rejected.

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Thank you,

Regards,
OTU Team

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