Q.40 Can you please share any CBIC instruction for GST refund under limitation period / SC judgment applicability on GST Refund application after Bombay HC/Madras HC Decision ? 

Ans. The Hon’ble Supreme Court took the suo-moto cognizance and vide its order dated 10.01.2022 held to restore the limitation extension upto 28.02.2022, therefore the validity period of 90 days shall be counted from 01.03.2022.

The Hon’ble High Court of Madras and Bombay also referred that the period of limitation as extended by the Apex Court shall apply on refund cases too. Therefore, by applying the same ratio, the period of limitation in case of refund application shall also be extended overriding the effect of a circular issued by the department.

Q.39 Is GST applicable on grants received by a Company from the Central/State Govt under a scheme ? 

Ans. This is one of the most subjective matters whether grants are taxable or not. It primarily depends on the nature of grant received and needs to be checked carefully.

Apparently, any activity covered under the definition of Supply would be subject to levy of GST. Grants received from the government are also subject to levy of GST unless otherwise specifically exempted from the levy by way of exemption notification.

It is advisable to take a legal opinion on this matter as it requires proper examination of facts and figures.

Q.38 Whether manpower supplies services provided by any proprietorship firm to an Old Age home (unregistered) covers under RCM?

Old age home is not a business entity how it will pay tax under RCM?

And if RCM is not applicable then services provider needs to tax under forward charge by charging the said GST tax in the invoice to Old age home assessee ? 

Ans. Manpower services are not covered under RCM instead service providers will charge GST on their invoice and collect from the Old Age Home.