The Central Board of Indirect Taxes & Customs (CBIC) has issued certain Circulars under GST law on 6th July, 2022 to issue clarification regarding procedural changes in GST based on the recommendation of the 47th GST Council meeting held on 28th and 29th of June, 2022.
However, clarifications regarding changes in GST rates and exemptions as decided in the said meeting are yet to be issued.
A. Circular No. 170/02/2022-GST dated July 06, 2022
The CBIC vide this, mandates furnishing of correct and proper information of inter-State supplies and amount of ineligible/blocked Input Tax Credit and reversal thereof in return in FORM GSTR-3B and statement in FORM GSTR-1.
To ensure correct reporting of information is done by the registered person in FORM GSTR-3B and FORM GSTR-1 so as to ensure correct accountal and accurate settlement of funds between the Central and State Governments. Accordingly, in order to ensure uniformity in return filing, The Board vide this Circular has clarified on the following matters:
- Furnishing of information regarding inter-State supplies made to unregistered persons, composition taxable persons and UIN holders
- Furnishing of information regarding ITC availed, reversal thereof and ineligible ITC in Table 4 of GSTR-3B – it is clarified that the reversal of ITC of ineligible credit under section 17(5) or any other provisions of the CGST Act and rules thereunder is required to be made under Table 4(B) and not under Table 4(D) of FORM GSTR-3B.
The Circular can be accessed https://taxo.online/wp-content/uploads/2022/07/cir-170-02-2022-cgst.pdf
B. Circular No. 171/03/2022-GST dated July 06, 2022
The CBIC issued clarification on various issues relating to the applicability of demand and penalty provisions under the Central Goods and Services Tax Act, 2017 (“the CGST Act”) in respect of transactions involving fake invoices.
In order to curb the cases, where the registered persons are found to be involved in issuing tax invoice, without actual supply of goods or services or both (hereinafter referred to as “fake invoices”), in order to enable the recipients of such invoices to avail and utilize input tax credit fraudulently, the Board vide this Circular has clarified the issues relating to applicability of demand and penalty provisions under the Central Goods and Services Tax Act, 2017, in respect of such transactions involving fake invoices.
The Circular can be accessed https://taxo.online/wp-content/uploads/2022/07/cir-171-03-2022-cgst.pdf
C. Circular No. 172/04/2022-GST dated July 06, 2022
The CBIC issued clarification on the various issue pertaining to GST Law with respect to:
- Refund claimed by the recipients of supplies regarded as deemed export;
- Interpretation of section 17(5) of the CGST Act;
- Perquisites provided by employer to the employees as per contractual agreement; and
- Utilisation of the amounts available in the electronic credit ledger and the electronic cash ledger for payment of tax and other liabilities.
The Circular can be accessed https://taxo.online/wp-content/uploads/2022/07/cir-172-04-2022-cgst.pdf
D. Circular No. 173/05/2022-GST dated July 06, 2022
The CBIC issued clarification on issue of claiming refund under Inverted Duty Structure (“IDS”) where the supplier is supplying goods under some concessional notification.
The Board has clarified the applicability of para 3.2 of the Circular No. 135/05/2020-GST dated 31.03.2020, whereby it was clarified that refund on account of inverted duty structure under clause (ii) of sub-section (3) of section 54 of the CGST Act would not be admissible in cases where the input and the output supplies are the same.
Vide this circular, the Board has clarified that in such cases, refund of accumulated ITC on account of inverted structure as per clause (ii) of sub-section (3) of section 54 of the CGST Act, 2017 would be allowed in cases where accumulation of input tax credit is on account of rate of tax on outward supply being less than the rate of tax on inputs (same goods) at the same point of time, as per some concessional notification issued by the Government providing for lower rate of tax for some specified supplies subject to fulfilment of other conditions.
The Circular can be accessed https://taxo.online/wp-content/uploads/2022/07/cir-173-05-2022-cgst.pdf
E. Circular No. 174/06/2022-GST dated July 06, 2022
The Board vide this Circular has prescribed manner of re-credit in Electronic Credit Ledger (“ECL”) using FORM GST PMT-03A.
The GSTN recently developed a new functionality of FORM GST PMT-03A which allows proper officer to re-credit the amount in the electronic credit ledger of the taxpayer, in cases where any excess or erroneous refund sanctioned to taxpayer had been paid back by them either on their own or on being pointed by the tax officer. Further, sub-rule (4B) in rule 86 of the Central Goods and Services Tax Rules, 2017 has been inserted vide Notification No. 14/2022-CT dated 05.07.2022 to provide for re-credit in the electronic credit ledger where the taxpayer deposits the erroneous refund sanctioned to him.
Vide this Circular, the Board clarifies on the following:
- Categories of refunds where re-credit can be done using FORM GST PMT-03 A
- Procedure for re-credit of amount in electronic credit ledger
The Circular can be accessed at https://taxo.online/wp-content/uploads/2022/07/cir-174-06-2022-cgst.pdf
F. Circular No. 175/07/2022-GST dated July 06, 2022
The CBIC clarifies various issues and procedure for filing refund of unutilized Input Tax Credit on account of the export of electricity.
It is represented that though electricity is classified as “goods” in GST, there is no requirement for filing of Shipping Bill/ Bill of Export in respect of export of electricity. However, the extant provisions under Rule 89 of CGST Rules, 2017 provides for requirement of furnishing the details of shipping bill/ bill of export in respect of such refund of unutilised ITC in respect of export of goods. Accordingly, clause (ba) has been inserted in sub-rule (2) of rule 89 and a Statement 3B has been inserted in FORM GST RFD-01 of the CGST Rules, 2017 vide notification No. 14/2022-CT dated 5 th July, 2022.
The Board vide this circular has clarified various issues and procedure for filing of refund claim of unutilized ITC pertaining to export of electricity:
- Filing of refund claim
- Relevant date for filing of refund
- Processing of refund claim by the proper officer
The Circular can be accessed at https://taxo.online/wp-content/uploads/2022/07/cir-175-07-2022-cgst.pdf
G. Circular No. 176/08/2022-GST dated July 06, 2022
The CBIC has withdrawn the Circular No. 106/25/2019-GST dated June 29, 2019 in respect of Rule 95A of the CGST Rules, 2017 (i.e. Refund of taxes to the retail outlets established in departure area of an international Airport beyond immigration counters making tax free supply to an outgoing international tourist) pursuant to its omission vide CGST amendment Rules, 2022.
The said rule 95A has been omitted, retrospectively w.e.f. 01.07.2019, vide notification No. 14/2022-Central Tax, dated 05.07.2022. Accordingly, the Board hereby withdraws, ab-initio, Circular No 106/25/2019-GST dated 29th June, 2019.
The Circular can be accessed at https://taxo.online/wp-content/uploads/2022/07/cir-176-08-2022-cgst.pdf