Guidelines for disallowing debit of electronic credit ledger under Rule 86A of CGST Rules (CBEC-20/16/05/2021-GST/1552 dated 2nd November, 2021)

Dear Sir,

Please find below YouTube video link on Guidelines for disallowing debit of electronic credit ledger under Rule 86A of CGST Rules (CBEC-20/16/05/2021-GST/1552 dated 2nd November, 2021)

1. Grounds for disallowing debit of an amount from electronic credit ledger

2. Proper authority for the purpose of Rule 86A

3. Procedure for disallowing debit of electronic credit ledger/blocking credit under Rule 86 A

4. Allowing debit of disallowed/restricted credit under sub–rule (2) of Rule 86A

Regards,
Bipul Kumar

Role of material evidence under Rule 86A clarified by CBIC Chairman (D.O.No.96/CH(IC)/2020 dated 08 Nov 2021)

Last week week I inaugurated the DGGI Annual Conference of DGs/ADGs for the year 2021 at Mumbai on 01/11/2021. Senior officers of DGGI from across the country had met to discuss and share their thoughts on important GST related compliance and tax evasion issues. These included strengthening of enforcement mechanism, the menace of fake invoicing including those in services, transport monitoring mechanism and issues pertaining to seizure and arrests. The deliberations during the conference, it is felt, will provide key policy inputs to the Board and help in ensuring better compliance.

Simultaneously, on the trade facilitation front, guidelines for scrutinising proper availment of Input Tax Credit under Rule 86A of CGST Rules 2017 have been issued by GST Policy Wing on 02/11/2021. The guidelines inter alia lay the contours of the ‘reasons to believe’ test on objective parameters rather than on subjective consideration. The role of material evidence under Rule 86A has also been clarified. This would bring in clarity and transparency both for officers and the trade. It is also in line with the observations made by various courts regarding the laying down of such guidelines.

CBIC is gearing up in its preparedness on AKAM activities to befittingly commemorate the 75th anniversary of India’s Independence. The ICONIC week allotted for Ministry of Finance is from 6th to 12th December 2021. We are planning to have two major events during this period. The event requiring your active participation is on honouring sports persons i.e. awardees of Padma / Arjuna / Dronacharya awards and those who have won medals at international competitions like Olympics, Asian Games Commonwealth games and/ or other non-athletic international sport of an equal stature, including Paralympic events. This has been informed to the Zones earlier. If you are in this category or know of some departmental officer, serving or retired who does so, immediately inform your / their details to your Sports officers or the JC / ADC (P&V) of your Commissionerate. As the time now left is very short, a quick response is expected from the Zones with names of officers and the awards / medals they have won.

They should communicate the details latest by Tuesday i.e. the 8th of December 2021 to Shri Upender Gupta, Pr. ADG, DGTS. Let us ensure that no one who is eligible is left out from the merit list.
CBIC would also be participating in the forthcoming Trade Fair in Delhi from the 14th of November, 2021. During the fair a few thematic events would be showcased. All those who are or happen to be in Delhi during this period are invited to visit our enclosure. Those interested may also volunteer their services and participate in the events.

During my visit to Mumbai, I got an opportunity to visit and take stock of the progress made in the construction of our Customs enclave at Wadala. This is a prestigious project that is coming up in a centrally located place of Mumbai and is expected to ease and address the office and accommodation needs of our departmental officers. Work is in progress and the foundation laying ceremony for the complex would be possible by early December. Phase I of this project will have six towers housing 10 Commissionerates and 769 residential quarters. It is scheduled to be completed by 2024.

On the welfare front, the Governing Body of the Welfare Fund had approved the proposals for granting financial assistance of Rs. 8.44 lakh for setting up a Gym/Recreation/sports facilities at Customs Commissionerate Hqrs. Indore during FY 2021-22 and Rs 4.06 lakh for setting up of a new canteen at Customs Canine Centre, Attari. It has also approved the proposal for reimbursement of medical claims of about Rs. 13.45 lakh incurred by 11 officers/staff for their own/dependents medical treatment.

Our anti-evasion efforts last week saw Mumbai Central CGST Commissionerate detect a fake ITC case involving Rs. 49 crores, based on data mining. Rs. 24.51 crores has been recovered and one person has been arrested.

Last week Air Cargo Customs, Chennai made a seizure of a large brass Nritya Ganapati idol that was to be exported out of India. Archaeological Survey of India on examination of the statue has opined that the idol is more than 400 years old. This detection has helped save a national treasure from being lost. Madurai airport Customs has seized gold bars weighing 4999.89 grams valued at Rs. 2.42 crore from a passenger who arrived from middle east. Such seizures call for alertness of our officers even at smaller airports having thin international flight operations.

With three months to go before the budget is presented, preparatory work has begun in right earnest. To begin with, Tax Research Unit (TRU) has invited inputs/suggestions relating to indirect taxation from
all our stakeholders. You may also add value to this exercise with contributions of your own through your Zonal Chief Commissioners. Comprehensive suggestions on fiscal changes, both on policy and procedure, you feel would be beneficial for the country are welcome. This should reach the JS, TRU by the 15th of this month. I also hope, as indicated by me earlier, that you have sent your valuable policy contributions to the Pr. Commissioner GST Policy Wing on the subject of GST revenue augmentation and compliance reduction, which is to be placed before the Group of Ministers. A chance to win an award should not be wasted.

It is my pleasure to share with you that a beginning has been made to bring to close a long pending issue of regularization of promotion in various grades of Grp ‘A’ posts. In a major achievement, a DPC was held in the UPSC today i.e. 08th November 2021 for regularization of promotions in the grade of Assistant Commissioner of Customs and Indirect Taxes against the vacancy years 2002-03 to 2012-13. This is a matter of great happness for officers and department alike as it will set the ball rolling for further regularization of promotion right up to the Commissioner level posts and for regular promotions thereafter.

Heavy rains have taken place in Tamil Nadu causing severe disruption to life and more rains are predicted. All officers and staff there, should take maximum care and support one’s colleague or fellow citizen in distress. Departmental assets should also be secured against the ravages of the weather. Do take care.

Yours sincerely,
(M. Ajit Kumar)
To
All Officers and Staff of Central Board of Indirect Taxes and Customs

Judiciary updates (Income tax, GST & Corporate Laws) -09th Nov 2021

Income Tax

ITAT condone the delay in appeal filing as delay was in e-filing & not on manual filing

Gemini Iron and Steel (P) Ltd. Vs ITO (ITAT Chennai) dated 02/11/2021

TDS not deductible on exempt supplementary rent – Section 10(15A)

InterGlobe Aviation Ltd. Vs JCIT (ITAT Delhi) dated 29/10/2021

Capital subsidy liable to be excluded from computation of book profit

Sunrise Biscuit Co. Pvt. Ltd. Vs ITO (ITAT Gauhati) dated 28/10/2021

GST

SCN quashed by Bombay HC for allegedly availing inadmissible transitional credit as has been issued on an erroneous legal premise

Godrej & Boyce Mfg. Co. Ltd. Vs Union of India and Ors. (Bombay High Court) dated 29/10/2021

TDS under GST applicable if services not exempt from GST

In re Tukaram Pundalik Borade (GST AAR Maharashtra) dated 02/11/2021

Corporate Laws

Judgment debtor cannot raise objections to executions in installments: SC

Dipali Biswas & Ors. Vs Nirmalendu Mukherjee (Supreme Court of India) dated 05/10/2021

Beneficial scheme cannot run contrary to express terms of provisions

 Union of India Vs Abhiram Verma (Supreme Court of India) dated 30/09/2021

Regards

Bipul Kumar

GST में ITC कैसे, कब और कब तक क्लेम कर सकते हैं? II GST ITC-Eligibility, Conditions & Time period of ITC claim

Dear Sir,

Please find below YouTube video link on GST में ITC कैसे, कब और कब तक क्लेम कर सकते हैं? II GST ITC-Eligibility, Conditions & Time period of ITC claim
https://youtu.be/e7xxM8LOfto

Regards,
Bipul Kumar

Judiciary updates (Direct Tax, Indirect tax & Corporate Laws)-07 Nov 2021

HC directs dept to refund GST paid under wrong head by petitioner

SBI Cards & Payment Services Limited Vs Union of India (Punjab & Haryana High Court) dated 08/10/2021

Section 148 reassessment based on mere change of opinion is invalid

Jagannath Promoters & Builders Vs DCIT (Orissa High Court) dated 26/10/2021

Capital subsidy liable to be excluded from computation of book profit

Sunrise Biscuit Co. Pvt. Ltd. Vs ITO (ITAT Gauhati) dated 28/10/2021

No bail to person alleged of fraudulently inducing people to invest in Crypto Currency Chit Fund

Grant of bail was refused as applicant did not return the amounts due to the complainants and there was a breach of trust and faith and was against the national economy and national interest, whereby a large number of innocent investors had been duped of their hard-earned money.

Umesh Verma Vs State (Delhi High Court) dated 26/10/2021

Judgment cannot be given based on evidence recorded in other trial despite same offence

A.T. Mydeen and Another Vs Assistant Commissioner, Customs Department (Supreme Court of India) dated 29/10/2021

There Cannot Be Total Ban on Firecrackers : SC

Goutam Roy And Anr. Vs State of West Bengal & Ors. (Supreme Court of India) dated 01/11/2021

Regards

Bipul Kumar

Judiciary updates (GST)- 05 Nov 2021

TDS under GST applicable if services not exempt from GST

In re Tukaram Pundalik Borade (GST AAR Maharashtra) dated 02/11/2021

Bail granted to person accused of availing ITC fraudulently

Krishan Lal Chopra Vs Director General of GST Intelligence (Punjab and Haryana High Court) dated 28/10/2021

GST advance rulings are applicable within the particular state only

In re Kamdhenu Agrochem Industries LLP (GST AAR Maharashtra) dated 02/11/2021

Society claiming INR 7500 exemption cannot avail ITC

 In re Vishal Cooperative Housing Society Limited (GST AAR Maharashtra) dated 02/11/2021

No GST exemption on renting of property to Govt for under-privileged Girl in absence of Proper Info: AAR

In re Meerabai Tukaram Borade (GST AAR Maharashtra) dated 02/11/2021

Manpower Agency cannot escape GST liability on Gross amount by showing Services Charges and Salary/Wages Separately

 In re Prodip Nandi (GST AAR West Bengal) dated 08/10/2021

Regards,

Bipul Kumar

Centre releases Rs. 17,000 crore as GST Compensation to States/UTs (MoF Press Release dated 03rd Nov 2021)

The Central Government has released GST Compensation of Rs. 17,000 crore to States today. The total amount of compensation released to the States/UTs so far including the aforesaid amount during the year 2021-22 is Rs. 60,000 crore. As per the decision of GST Council, back to back loan of Rs.1.59 lakh crore has already been released in lieu of shortfall in release of GST Compensation during the current financial year

The table below shows the State-wise GST compensation released to States/UTs on 3rd November  2021:

Centre releases Rs. 17,000 crore as GST Compensation to States/UTs

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1769214&RegID=3&LID=1

GST collection for October 2021 registered the second highest since implementation of GST (MoF Press Release dated 01 Nov 2021)

GST collection for October 2021 registered the second highest since implementation of GST


₹ 1,30,127 crore gross GST revenue collected in October

Revenues for the month of October 2021 are 24% higher than the GST revenues in the same month last year and 36% over 2019-20

Refer link for Press Release

GST collection for October 2021 registered the second highest since implementation of GST₹ 1,30,127 crore gross GST revenue collected in October Revenues for th

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1768437&RegID=3&LID=1

Judiciary updates -29th Oct 2021 (GST Law)

Summary Order in GST DRC-07 quashed by Patna HC for violating principles of natural justice

K. R. Steel Traders Vs State of Bihar (Patna High Court) dated 21/10/2021

Bombay HC directs GST Authority to process Application for IGST Refund as no order was passed

Evertime Overseas Private Limited Vs Union of India and ors. (Bombay High Court) dated 08/10/2021

No ITC on gifts to retailers for personal consumption for sales promotion

In re GRB Dairy Foods Pvt. Ltd (GST AAR Tamilnadu) dated 30/09/2021

It is illegal to attach Director’s personal property for recovery of sales tax dues

 Manharlal Hirjibhai Virdiya Vs Assistant Commissioner of Commercial Tax (Gujarat High Court) dated 08/10/2021

18% GST payable on Electronic Toys

In re Joshna ChandresJ1  Shah (GST AAR Tamilnadu) dated 30/09/2021

GST not Payable on Ambulances Services to MCGM

 In re Geetee Tours Private Limited (GST AAR Maharashtra) dated 25/10/2021

ITC cannot be availed on second hand car if applicant opted for concessional rate

 In re Deccan Wheels (GST AAR Maharashtra) dated 25/10/2021

Recipient of services/Goods or both cannot apply for advance ruling

 In re Godavari Marathwada Irrigation Development Corporation (GST AAR Maharashtra) dated 25/10/2021

18% GST Payable on activity of reshelling of old sugar mill rollers

In re S.B. Reshellers Pvt.Ltd. (GST AAR Maharashtra) dated 25/10/2021

Regards

Bipul Kumar