Category: GST

1. As per the GST Council decision to notify “Restaurant Service” under section 9(5) of the CGST Act, 2017 along with other services notified earlier such as motor cabs, accommodation and housekeeping services wherein the tax on such supplies would be paid by electronic commerce operator if such supplies made through it, Notification No. 17/2021-Central Tax (Rate) and 17/2021-Integrated Tax (Rate) dated 18.11.2021 have been issued. Accordingly, the tax on supplies of restaurant service supplied through e-commerce operators, shall be paid by the e-commerce operator with effect from the 1st January, 2022.
2. In light of the above, E-commerce operator and registered person would report taxable supplies notified under section 9(5) of CGST Act, 2017 and similar provisions in IGST/SGST/UTGST Act in the following manner.

1. 3. For more details, please refer to CBIC Circular No. 167/23/2021 dated 17.12.2021.

Thanking you,
Team GSTN

Press Release

Recommendations of 46th GST Council Meeting

Existing GST rates in textile sector to continue beyond 1st January, 2022

Posted Date:- Dec 31, 2021

The GST Council’s 46th meeting was held today in New Delhi under the chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman.

The GST Council has recommended to defer the decision to change the rates in textiles recommended in the 45th GST Council meeting. Consequently, the existing GST rates in textile sector would continue beyond 1st January, 2022.

Mandatory Aadhaar authentication for registered person under GST (GST portal updates-22 Dec 2021)

The Central Government vide Notification No. 38/2021-CT dated 21.12.2021 has notified January 1, 2022 as the implementation date for Rule 10B of CGST Rules, 2017.

In the said rule, it is mandatory for the registered person to undergo Aadhaar authentication for the below purposes,

1. Filing of application for revocation of cancellation of registration in FORM GST REG-21 under Rule 23 of CGST Rules, 2017
2. Filing of refund application in FORM RFD-01 under Rule 89 of CGST Rules, 2017
3. Refund of the IGST paid on goods exported out of India under Rule 96 of CGST Rules, 2017.

The taxable person, who have not yet authenticated their Aadhaar, may like to go through this authentication process before filing the above two applications and enabling GST system to validate and transmit the IGST refund data from GST system to ICEGATE system.

If Aadhaar number has not been assigned to the concern person for Aadhaar authentication as specified above, such person may undergo e-KYC verification by furnishing the following:

Provided further that such person shall undergo the Aadhaar authentication within a period of thirty days from allotment of the Aadhaar number.

Aadhaar authentication or e-KYC verification before filing of refund may be completed by navigating to “Dashboard > My Profile > Aadhaar Authentication Status”
Thanking You,
Team GSTN

CGST Notification No. 38/2021 dated 21st Dec 2021

Officers Of Directorate General Of GST Intelligence (DGGI), Ahmedabad With The Support Of Officers Of Local Central GST Initiated Search Operations In Kanpur

Posted Date:- Dec 24, 2021

On specific intelligence, officers of Directorate General of GST Intelligence (DGGI), Ahmedabad with the support of officers of local Central GST initiated search operations in Kanpur on 22.12.2021. The search operations covered the factory premises of M/s Trimurti Fragrance Pvt Ltd, Kanpur, manufacturers of Shikhar brand Pan Masala and Tobacco products and the office/godowns of M/s Ganpati Road Carriers, Transport Nagar, Kanpur, involved in transportation of goods.

The information indicated clandestine supply of goods by the manufacturer without payment of applicable tax. The transporter reportedly used to generate multiple invoices in the name of non-existent firms, all below Rs 50,000/- for one full truck load, to avoid generation of E-way Bills while moving the goods. The transporter was also collecting the sale proceeds of such clandestine supply in cash and handing it over to the manufacturer, after deducting his commission.

The officers initially were able to successfully intercept and seize 4 such trucks outside the factory premises, cleared from the factory without invoices and E-way Bills, which confirmed the contents of intelligence.

In the factory premises, during physical stock taking, shortage of raw materials and finished products was noticed as the finished products had been cleared clandestinely. The authorised signatory of the company has admitted to have cleared the goods without GST.

In the premises of the transporter, M/s Ganpati Road Carriers, more than 200 fake invoices used in the past for transportation of goods without payment of GST have been recovered. The transporter has also admitted that goods were being transported without e-way bills under the cover of fake invoices and also the sale proceeds was being collected in cash, to be handed over to the manufacturer. An amount of Rs 1.01 crores in cash has been seized from the possession of transporter.

Based on the intelligence inputs, the residential premises of partners of M/s Odochem Industries, Kannauj, UP, located at 143, Anandpuri, Kanpur,who were supplying perfumery compound, mostly in cash, to the said company was also searched. It was suspected that the sale proceeds in cash were secreted in the premises.

During the search proceedings at the residential premises, huge amount of cash, wrapped in paper, has been found. The process of counting of cash has been initiated with the help of officials of State Bank of India, Kanpur, which may continue till 24.12.2021, evening. The total amount of cash is expected to be in excess of Rs 150 crores.

The agency proposes to seize the cash under the provisions of section 67 of CGST Act, pending further investigations.

An amount of Rs 3.09 crores has been recovered so far towards tax dues. Necessary follow up action in the ongoing investigation of sensitive nature is being organised.

Ministry of Finance

Payment of GST compensation to States in times of COVID-19 pandemic

Posted Date:- Dec 07, 2021

As per the provisions of the GST (Compensation to States) Act, 2017, GST compensation for financial years 2017-18, 2018-19 and 2019-20 has already been paid to the States. This was stated by Union Minister of State for Finance Shri Pankaj Chaudhary in a written reply to a question in Rajya Sabha today.

The Minister further stated that the economic impact of the pandemic has led to higher compensation requirement due to lower GST collection and at the same time lower collection of GST compensation cess. Recently, Centre released ₹ 17,000 crore on 03.11.2021 towards GST compensation to States from the Compensation Fund. Details of GST compensation released to States/ UTs is as per details in ANNEXURE. This is in addition to GST compensation of ₹ 1,13,464 crore released to States/ UTs with legislature to partly meet the compensation payable for the period April’20 to March’21 as the amount in GST Compensation Fund was not adequate to meet the full compensation requirement, the Minister stated.

Giving more details, the Minister stated that the issue of shortfall of cess collection into Compensation Fund and GST compensation to States/UTs due to economic impact of the pandemic has been deliberated in 41st, 42nd & 43rd GST council meetings. As per the decision of GST Council, ₹1.1 lakh crore for FY 2020-21 & ₹1.59 lakh crore for FY 2021-22 has been released to States/ UTs as back-to-back loan to meet the resource of the States/UTs due to shortfall in GST compensation. Release of this amount has been front loaded during the financial year to enable States/UTs to undertake capital expenditure. In addition, depending on the amount available in the Compensation Fund, Centre has also been releasing the regular GST compensation to States to make up for GST revenue shortfall.

The Minister stated that taking  into account, the GST compensation released from Compensation Fund as well as back-to-back loan released in FY 2020-21 and FY 2021-22, GST compensation of ₹ 37,134 crore for period April’20 to March’21 and ₹ 14,664 crore for April-September’21 is pending to States/ UTs as per provisional figures. Centre is committed to release full GST Compensation to the States/UTs as per GST (Compensation to States) Act, 2017 for the transition period by extending the levy of Compensation cess beyond 5 years to meet the GST revenue shortfall as well as servicing the loan borrowed through special window scheme, the Minister stated.

On the question of proposal to extend GST compensation beyond 2022, the Minister stated that as per Section 18 of the Constitution (One Hundred and First Amendment) Act, 2016, Parliament shall, by law, on the recommendation of the Goods and Services Tax Council, provide for compensation to the States for loss of revenue arising on account of implementation of the goods and services tax for a period of five years from the date of implementation of GST. During transition period, the States’ revenue is protected at 14% per annum over the base year revenue of 2015-16. Central Government is committed for GST compensation to States/UTs for 5 years as per the Constitutional provision.