CGST RULES -- AMENDED UP TO 26.12.2022

CGST RULES -- AMENDED UP TO 26.12.2022 

CGST ACT *AMENDED UP TO 28.9.2022

CGST ACT AMENDED UP TO 28.9.2022 

Fortnightly Magazine--“J.K.JAIN’S GST & VR”

 

HIGHLIGHTS OF THE MAGAZINE―“J.K.JAIN’S GST & VR”

 

1. Non-constitution of the Tribunal─Stay granted on recovery proceedings─Read the following case laws;

Angel Engicon Pvt. Ltd. v. The State of Bihar (2023) 39 J.K.Jain’s GST & VR 305 (Patna),

Sandeep, Prop. Madhukar Sangam Jewellers v. State Tax officer (2023) 39 J.K.Jain’s GST & VR 316 (Ker),

KW and Jasim Traders v. State of Bihar (2023) 39 J.K.Jain’s GST & VR 314 (Patna).

Note.─The above Judgments pose a direct question on the functioning of CBIC, which could not constitute Tribunals even after nearly five years of implementation of GST, leading to taxing various citizens of India.

2. SC Clarificatory Order on Recovery of GST on Royalty : Myrayash Hotels Pvt. Ltd. v. Union of India & Ors. (SC). (2023) 39 J.K.Jain’s GST & VR 341

3. Read following Articles written by CA Om PraKash Jain s/o J.K.Jain, Jaipur Containing Legal Interpretation based on ratio decidendi of Supreme Court and Interpretation of CGST Act, 2017.

    i) Royalty─(a) Levy of GST on reverse charge basis, on Royalty payable on Minerals excavated from Mines─Analysis of Rajasthan HC decision─ Whether Legal (2022) 38 J.K.Jain’s GST & VR, Pages R31-34.

     (b) Constitutional Validity of levy of GST for grant of mining lease/royalty     under HSN code 9973 on Reverse charge basis (2023) 39 J.K.Jain’s GST & VR, Pages A1 to A4.  

Conclusion─(a) GST on Royalty is not leviable─Royalty is a Right of enjoyment of Immovable property based on Ratio decidendi of SC cases.

(b) In case of recovery proceedings, avail appellate remedies. 

ii) Reconciliation Statement in GSTR-9C─Late Submission─Whether Late Fee/Penalty leviable : (2022) 38 J.K.Jain’s GST & VR, Page R11-12.

Conclusion─Late Fee/Penalty not leviable as per interpretation of Law.

iii)  Late filing of GSTR-3B─Whether Interest u/s 50 is payable : (2022) 38 J.K.Jain’s GST & VR, Page R-27-R-28.

 Conclusion─Interest u/s 50 is not payable Based on Ratio decidendi of High Court & interpretation of Law.

iv) No Reversal of ITC on Goods Lost during Manufacturing Process [S.17(5)(h), GST Act, 2017]:  (2022) 37 J.K.Jain’s GST & VR, Page R-7.

Conclusion─No Reversal of ITC on Goods Lost/By Product Produced during Manufacturing Process Based on Ratio decidendi of Madras High Court & interpretation of CGST Act, 2017.

4. Rajasthan State notfns/circulars: Cross referenced actual notfns/ circulars of Rajasthan State are given.

5. Recent SC Judgment, on VAT, applicable in GST regime also;

a) ITC Claim─Burden of Proof─On purchasing dealer─Similar section in GST also─S.155─The State of Karnataka  v. Ecom Gill Coffee Trading Pvt. Ltd. (2023) 39 J.K.Jain’s GST & VR 247 (SC)

b)Taxability of Warranty on defective parts replaced─Tata Motors Ltd v. Deputy Commissioner of Commercial Taxes (SPL) (2023) 39 J.K.Jain’s GST & VR

J.K.Jain's GST & VR--List of Articles published

 

J.K.Jain's GST & VR--List of Articles published

 

Details of Articles published in:

i) (2023) 39 J.K.Jain's GST & VR  [From 1.1.2023 to 24.5.2023]

 

Articles Section (Vol.39)
(From 1.1.2023 to 24.5.2023)	Part	Pages
Constitutional Validity of levy of GST for grant of mining lease/royalty under HSN code 9973 on Reverse charge basis	8	A1 to A4

HIGHLIGHTS OF THE MAGAZINE―“J.K.JAIN’S GST & VR”

 

HIGHLIGHTS OF THE MAGAZINE―“J.K.JAIN’S GST & VR”

      1. Appellate Advance Rulings of Rajasthan State decided in the year 2021 & 2022:

AAAR in the matter of	Contents (in regard to)
Mody Education Foundation	GST on Hostel Accommodation Services with  allied services & Food etc.─Mixed Supply
Tej Kumar Jain	GST on Old and used Refurbished Car, to be calculated on Purchase Price
Harish Chand Modi	GST on Reimbursement of electricity expenses ─Leasing of Immovable Property
Utsav Corporation	GST on Solar power equipments/System
Consulting Engineers Groups	GST on ‘Project Management Consultancy’ services provided to RUDSICO

      These 5 Appellate Advance Rulings were published in our magazines: (2022) 37 J.K.Jain’s GST & VR ─ Parts 4 & 5

      2. Advance Rulings of Rajasthan State decided in the year 2021 & 2022: Some Important rulings are as under;

AAR in the matter of	Contents (in regard to)
Suresh Kumar Mourya, Dausa	28% GST on Fizzy Apple & Fizzy Malt* *[Read analysis from our Analyst based on SC case on Carbonated Drinks (Fruit Drinks)]
Richwell Enterprises Pvt. Ltd.	18% GST on Ancillary Services relating to Construction of Flats/House
RSWM	ITC not allowable on Health Insurance of employees+ (+Read analysis from our Analyst on Govt. Policy)
Pristine Industries Ltd.	ITC on Inputs allowable─Installation of “Solar Power Generating Plant” for captive consumption
Markk Business P. Ltd.	12% GST on Answer Booklets/copies
RIICO Ltd.	No ITC on Development of an Industrial Area
Zuberi Engineering Company	12% GST on Lift Irrigation Project operated by Solar Power─EPC contract

      Total 31 AAR of Rajasthan were published in the following magazines;

      (2022) 37 J.K.Jain’s GST & VR ─ Parts 1, 3, 4, 5

      (2021) 36 J.K.Jain’s GST & VR ─ Parts 5, 7, 8, 9, 11, 12

    

      3. Royalty/Mining Lease─The Stay granted by the Supreme court on payment of GST on Royalty/Mining Lease, in the case of Lakhwinder Singh v. Union of India (2021) 36 J.K.Jain’s GST & VR 319 (SC) has come to an end due to dismissal of the case on 4.1.2022: (2022) 37 J.K.Jain’s GST & VR 93.

Read Article in (2022) 37 J.K.Jain’s GST & VR page R-43, regarding Legal Position after dismissal of SLP by the Supreme Court on 4.1.2022.

4. Rajasthan State notfns/circulars: Cross referenced actual notfns/ circulars of Rajasthan State are given.

J.K.Jain's GST & VR--List of Articles published

 

Details of Articles published in:

i) (2021) 36 J.K.Jain's GST & VR  [From 1.7.2021 to 24.12.2021]

ii) (2022) 37 J.K.Jain's GST & VR [From 1.1.2022 to 9.3.2022]

 

Articles Section (Vol.36) (From 1.7.2021 to 24.12.2021)	Part	Pages
Proceedings―Extension of Limitation in Quasi Judicial Proceedings in the wake of Covid-19―Analysis of Supreme Court Directives	2	R5-R8
ITC Reversal―Maintenance Charges paid to RWA	3	R9-R10
Right to Broadcast & Show Films–Analysis of entries under HSN codes 9973 & 9996	3	R11-R12
Outward Supply in GSTR-1─Restrictions w.e.f. 1.9.2021	4	R15-R16
Articles Section (Vol.37) (From 1.1.2022 to 9.3.2022)
ITC─No Reversal on Goods Lost during Manufacturing Process  [S.17(5)(h), GST Act, 2017]	1	R-7
Composite & Mixed Supply─Coaching services to students Analysis of Rulings by AAR & AAAR in Rajasthan	1	R-8
GSTR-3B─notified  a return subsequent to Judgment of Gujarat HC─No analysis of this crucial aspect prior to its overruling by Apex Court─Case of AAP & Company in SC─ Whether the judgment of Apex Court is valid	2	R-11
Quasi Judicial Proceedings─Whether interpretation of SC case by CBIC is valid	2	R-12
GST on Royalty/Mining lease─Analysis after dismissal of SC case  Lakhwinder Singh v. Union of India (2022) 37 J.K.Jain’s GST & VR 93 (SC).	5	R-41

 

 

HIGHLIGHTS OF THE MAGAZINE―“J.K.JAIN’S GST & VR”

 

HIGHLIGHTS OF THE MAGAZINE―“J.K.JAIN’S GST & VR”

 

      1. Appellate Advance Rulings of Rajasthan State decided in the year 2021 & 2022: Total 5 Appellate Advance Rulings were published in our following magazine, including AAAR on Hostel Fees (Lodging & boarding) charged from Students, to be treated as “Mixed Supply”;

      (2022) 37 J.K.Jain’s GST & VR ─ Parts 4, 5

      2. Advance Rulings of Rajasthan State decided in the year 2021 & 2022:Total 31 Advance Rulings were published in following magazines;

      (2022) 37 J.K.Jain’s GST & VR ─ Parts 1, 3, 4, 5

      (2021) 36 J.K.Jain’s GST & VR ─ Parts 5, 7, 8, 9, 11, 12

     3. Royalty/Mining Lease─The Stay granted by the Supreme court on payment of GST on Royalty/Mining Lease, in the case of Lakhwinder Singh v. Union of India (2021) 36 J.K.Jain’s GST & VR 319 (SC) has come to an end due to dismissal of the case on 4.1.2022: (2022) 37 J.K.Jain’s GST & VR 93 (SC).

      4. Interpretation of Entry─Clear language─No external aid needed for interpretation, like other notfns issued─Read Supreme Court Case titled : Authority for Clarification & Adv. Ruling v. Aakavi Spg. Mills (P) Ltd. (2022) 37 J.K.Jain’s GST & VR 135 (SC).  

5. Arrest for alleged eva­sion of GST─Granting of Bail─Supreme Court granted Bail to the accused due to long detention where Investigation is Pending;

Read case titled Paresh Nathalal Chauhan v. State of Gujarat (2022) 37 J.K.Jain’s GST & VR 94 (SC).

   6. “Notwithstanding Clause”─Read analysis of our Analyst in the case of V.S. Products v. Union of India (2022) 37 J.K.Jain’s GST & VR 53 (Kar), based on Supreme court case of Skill Lotto Solutions Pvt. Ltd. v. Union of India (2021) 35 J.K.Jain’s GST & VR 167 (SC).

   7. GSTR-3B is a Return─Retrospective amendment to Rule 61(5), GST Act carried out Subsequently on 9.10.2019 after the judgment of Gujarat High Court on 24.6.2019─Read analysis of our Analyst in the case of Union of India v. AAP And Company (2021) 36 J.K.Jain’s GST & VR 519 (SC).

   8. GST Act, Rules & Forms updated as on 31.1.2022;

   refer Website  : J.K.Jains.blogspot.com.

   9. Subject wise elaborated Index of notfns/circulars given in the magazine.

   10. Rajasthan State notfns/circulars: Cross referenced actual notfns/ circulars of Rajasthan State are given.

Mithlesh Book Company     : Tel:9414300730, 0141-3584043

E-mail :  mbc_j@yahoo.com:  Website  : J.K.Jains.blogspot.com

Advance Rulings of Rajasthan State decided in the year 2021:

 Advance Rulings of Rajasthan State decided in the year 2021:

 A) A total 21 Advance Rulings of Rajasthan State─Year 2021, on varied subjects of GST, were published in our following magazines;

(2021) 36 J.K.Jain’s GST & VR Pages 335 to 366/416 to 422─ Vol.36-8/Vol.36-9, Pages 495 to 502─Vol.36-11, 308 to 316─Vol.36-7, Pages 19 to 31─Vol. 37-1.

     B). Brief Subjects of Advance Rulings of Rajasthan State─Year 2021:

Details of Advance Ruling	Citation of the Magazine  “J.K.Jain’s GST & VR”	Subject matter in Brief
RSWM Limited	(2021) 36 Page 335	ITC on  Health Insurance Premium of employees
Richwell Enterprises Pvt. Ltd.	(2021) 36 Page 490	Other services are separate services with Construction Services
Pristine Industries Ltd.	(2021) 36 Page 362	ITC on Inputs
Resonance Eduventures Ltd.	(2022) 37 Page 19	Coaching Services─ Mixed Supply
Umed Club	(2021) 36 Page 344	Services provided by Club to its Members
Consulting Engineers Gp. Ltd.	(2021) 36 Page 352	Pure Services
L&T Hydrocarbon Eng. Ltd.	(2021) 36 Page 357	Composite Supply
Petrofac International	(2021) 36 Page 347	Composite Supply
Harish Chand Modi	(2021) 36 Page 500	Composite Supply
ADS Agro Industries Pvt. Ltd.,	(2021) 36 Page 416	GST on ‘Distillers Wet Grain Solubles’
Rahul Goyal	(2021) 36 Page 419	GST on ‘Educational & Training Services’
Sapna Gupta	(2021) 36 Page 338	Rate of GST on Solar Panels/Solar Pump etc.
USG Boral Building Products (India) Pvt. Ltd.	(2021) 36 Page 311	GST on ‘Gypsum Board’
Tej Jain	(2021) 36 Page 308	GST on “Old & used Refurbished Car”

Inverted duty structure-SC case dated 13.9.2021

 

Union of India & Ors v. VKC Footsteps India Pvt.Ltd. & Ors.(2021) 36 J.K.Jain's GST & VR 231 (SC)

Refund of unutilised ITC on Services─Inverted Duty Structure─Validity of Rule 89(5), CGST Rules, 2017─Valid & In tune with the provisions of S.54(3), CGST Act, 2017

https://main.sci.gov.in/supremecourt/2020/24110/24110_2020_33_1502_29954_Judgement_13-Sep-2021.pdf

Reversal of ITC─Late filing of Return─Applicability of section 16(4) CGST Act, 2017

Reversal of ITC─Late filing of Return─Applicability of section 16(4) CGST Act, 2017

Section 16(2)(d) , CGST Act, 2017 starts with notwithstanding clause and stipulates “furnishing of return u/s 39 for entitlement of ITC”. This clause nowhere mentions “timely submission of returns and/or debarring rectification of any return belatedly, for being entitled to avail ITC. The “notwithstanding clause”, in the section 16(2) means that it supersedes[1] all the sub-sections of section 16.

As such, in our view, if a registered person has furnished returns &/or rectified any return belatedly, he is entitled to ITC irrespective of section 16(4) CGST Act, 2017 and his vested right[2] can not be withdrawn in the absence of a clear legal prohibition, by framing rules.

Rules are procedural in nature and can not be construed as a mandatory provisions[3]. The Govt. has no legal authority to retain the amount of credit to which the respondent in the present case is entitled to and retention of it by the Govt., cannot be sustained, being violative of Article 265 of the Constitution of India[4].

In view of the above, in our view, ITC is not required to be reversed.

CA Om Prakash Jain

Jaipur

9414300730

opjain02@yahoo.co.in

---

[1]. (1989) 74 STC 260 A.C.T.O. v. Laxmi Misthan Bhandar (Raj

[2]. (1999) 106 ELT 3 Eicher Motors Ltd. v. Union of India (SC)

[3]. (2019) 32 J.K.Jain’s GST & VR 485 Adfert Technologies Pvt. Ltd. v. Union of India (P&H)

    (2020) 33 J.K.Jain’s GST & VR 147 Union of India & Ors. v. Adfert Technologies Pvt. Ltd.(SC)

[4] . (2019) 32 J.K.Jain’s GST & VR 473 Jakap Metind Pvt. Ltd. v. Union of India & Ors.(Guj)