Exam Fees, Supply Of Food To Anganwadis Exempt from GST Levy

The Central Board of Indirect Taxes and Customs (CBIC) has stated that Goods and Services Tax (GST) is not levied on services like supplying food to Anganwadis and schools under the ambit of Mid-day Meal scheme.

It has further clarified that fees paid by students to sit in any examination conducted by Central Board of Secondary Education (CBSE) or state boards, will also not attract any GST levy.

Even fees paid by students for sitting in any entrance examination is also exempted from GST levy, the board has clarified.

CBIC recently had clarified these points through its Twitter handle, which had emerged from the GST Council meeting.

The board said that it had received several representations from educational institutions, seeking to know whether supplying food in schools under government schemes would be exempted from GST, if it is funded by government or supported by donations from private bodies.

The CBIC said that as Anganwadis impart pre-school and non-formal education, they fall under the definition of an educational institution.

Source: https://www.thehindu.com/news/national/kerala/gst-state-to-oppose-centres-move/article34915534.ece

GST authorities bust network of firms dealing in fake invoice

Goods and Services Tax (GST) authorities have bust two networks of firms indulging in tax frauds using fake invoices, leading to the arrest of one person, Central Board of Indirect Taxes and Customs (CBIC) said in a communication to officials on Monday.

The Directorate General of GST Intelligence (DGGI) bust a network of 16 firms after conducting searches at multiple premises in Punjab, Himachal Pradesh and Haryana, leading to detection of bogus invoices meant to pass on tax credits worth more than 115 crores.

In a separate operation, central GST officers in Gujarat discovered a web of 19 firms allegedly involved in export and claiming tax refunds on the basis of fraudulent invoices showing tax credits. The total tax credits involved in this case is about 52 crores. One person is arrested and further probe is on, CBIC said. Mint has seen a copy of the communication.

GST authorities have in recent past tightened the enforcement of tax compliance based on extensive use data analytics and sourcing of intelligence from various other regulatory agencies including customs department and the income tax department.

The compliance enforcement drive had to some extent helped step up GST receipts in recent months. GST collections of central and state governments have been staying above 1 trillion mark since last October. The government also tightened rules of tax credit as well as reporting requirements in recent months with the intention of improving tax compliance. Many small businesses are now seeking a relaxation on compliance given the reduced availability of manpower during the second wave of the pandemic.

Source: https://www.livemint.com/news/india/gst-authorities-bust-network-of-firms-dealing-in-fake-invoice-11624282840736.html

Notification No. 67/2018-Central Tax ,dt. 31-12-2018 – Seeks to extend the time period specified in notification No. 31/2018-CT dated 06.08.2018 for availing the special procedure for completing migration of taxpayers who received provisional IDs but could not complete the migration process.

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub section (i)]
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
Notification No. 67/2018 – Central Tax

New Delhi, the 31st December, 2018

G.S.R……(E).- In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.31/2018-Central Tax, dated the 6th August, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i), vide number G.S.R. 742(E), dated the 6th August, 2018, namely :

In the said notification, in paragraph 2 ,-
(i) in clause (i), for the figures, letters and word “31st August, 2018”, the figures,
letters and word “31st January, 2019” shall be substituted;
(ii) in clause (iv), for the figures, letters and word “30th September, 2018”, the figures, letters and word “28th February, 2019” shall be substituted.

( Dr. Sreeparvathy S.L.)
Under Secretary to the Government of India.

Note:- The principal notification No. 31/2018 – Central Tax, dated the 6th August, 2018 was published in the Gazette of India, Extraordinary vide number G.S.R. 742(E), dated the 6th August, 2018.

Will we write an elegy for GST?

The Goods and Services Tax (GST) is not an exotic animal. It is in force in federal and unitary nation-states. There are different models, but the basic principle is the same: that a tax paid at one stage in the chain of supply must be set off against the tax payable at the next stage. There should be no tax on tax.

MODVAT, and then CENVAT (central VAT), was introduced to mitigate the impact of excise duty and service tax. It worked well. States were persuaded, through considerable effort, to adopt VAT (Value Added Tax) to replace Sales Tax. CENVAT by the Central government and VAT by state governments operated independently within their own jurisdictions. However, there were unresolved issues in inter-state sales and inter-state services. There were also issues when, in the chain of supply, a ‘service’ was rendered at one stage and a ‘sale’ was done at another stage. The answer was the GST, that would apply to all sales and all services.

A Task Accomplished

Bringing the Central government and state governments on the same page was a Herculean task. Among the matters that had to be honoured were:

that the hallmark of a sovereign was the power to levy taxes;
that the Indian Constitution was federal in nature and the power to tax was divided between the Centre and states;
that states were required to give up their exclusive power to tax sale of goods, which was their principal source of revenue;
that the distinction between big states and small states was irrelevant;
that the states’ fear that they will suffer loss of revenue had to be dispelled through assurances of compensation and an enforceable mechanism therefor;
that shared sovereignty can be practised based only on mutual trust and respect; and
that while a rule on voting was necessary, the more important unwritten rule would be that all decisions must be taken on the basis of consensus and not along party lines.
Mr Yashwant Sinha, the late Pranab Mukherjee and I made every effort to adhere to the principles above. So did the late Arun Jaitley, although he slipped up on the initial tax rates. The meetings of the finance ministers’ group that prepared for the GST and meetings of the GST Council, as long as Arun Jaitley was in the chair, were smooth and non-confrontational and took the GST process forward — haltingly, but nevertheless forward.

The Breakdown

Enter Ms Nirmala Sitharaman. At every successive meeting of the Council there has been only more conflict, confrontation and, now, almost a complete breakdown of mutual trust and respect.

The Constitutional provisions are clear. Article 246A empowers both Parliament and, except in the case of inter-state trade or commerce, the state Legislature to levy the GST. On inter-state transactions, Article 269A stipulates that the GST “shall be levied by the Government of India and such tax shall be apportioned between the Union and states on the recommendations of the Goods and Services Tax Council”. Article 279A completes the circle by creating a GST Council, appointing the Union Finance Minister as the Chairperson, requiring the election of a Vice Chairperson, mandating the Council to make recommendations on every matter relating to the GST including the taxes, cesses and surcharges to be levied, authorising the establishment of a Dispute Resolution Mechanism, and providing for a system of weighted votes under which, it was believed, the Centre will not be able to ride roughshod over states.

Every key feature of the GST Council has broken down. No Vice Chairperson has been chosen since its inception in 2016. The GST Council did not meet for six months between October 2020 and April 2021. It has been stealthily (and effectively) sidelined by constituting a GST Implementation Committee of officers who make “recommendations” that are made into Rules by the Central government, by-passing the GST Council and the state Legislatures!

Weaponising GST

Ahead of the 43rd meeting of the GST Council, Mr Manpreet Badal (FM, Punjab) flagged the above issues and emphasised two urgent matters: reduction of GST rates to aid Covid treatment and management, and excessive delegation to the GST Implementation Committee. After the meeting, the Union Finance Minister constituted a committee of eight ministers to review Covid-related GST rates and, pointedly, excluded the three Congress-ruled states and other states that had forcefully argued for a reduction of rates!

According to a letter dated June 4, 2021, from Dr Amit Mitra (FM, West Bengal) to Ms Sitharaman, the GST compensation dues to states up to January 2021 were Rs 63,000 crore. Punjab, Rajasthan and Chhattisgarh have claimed that their dues, up to June 1, are Rs 7,393 crore, Rs 4,635 crore and Rs 3,069 crore respectively. Yet, in a TV interview on June 15, Ms Sitharaman angrily refuted the interviewer and said “What dues, I have cleared the GST dues of all states”!

Source: https://indianexpress.com/article/opinion/columns/will-we-write-an-elegy-for-gst-7365658/

Facility for registration of IRP/RPs made available on the GST Portal 27/05/2020

  1. The Insolvency Resolution Professionals/ Resolution Professionals (IRPs/RPs), appointed to undertake corporate insolvency resolution proceedings for Corporate Debtors, can apply for new registration on GST Portal, on behalf of the Corporate Debtors, in each of the States or Union Territories, on the PAN and CIN of the Corporate Debtor, where the corporate debtor was registered earlier, in terms of Notification No. 11/2020-CT, dated 21st March, 2020 and as amended vide Notification No. 39/2020-CT, dated 5th May, 2020. The IRP / RP are required to obtain a new registration within thirty days of their appointment as IRP/RP or by 30th June, 2020, whichever is later, except in cases where the corporate debtors have filed Form GSTR-1 and Form GSTR-3B, for all the tax periods prior to the appointment of IRP/RP.
  2. They should select the Reason for Registration as “Corporate Debtor undergoing the Corporate Insolvency Resolution Process with IRP/RP” from the drop down menu.
  3. The date of commencement of business for IRP/RPs will be the date of their appointment. Their compliance liabilities will also come into effect from the date of their appointment.
  4. The person appointed as IRP/RP shall be the Primary Authorized Signatory for the newly registered Company.
  5. In the Principal Place of business/ Additional place of business, the details as specified in original registration of the Corporate Debtors, is required to be entered.
  6. The new registration application shall be submitted electronically on GST Portal under DSC of the IRP/RP
  7. The new registration by IRP/RP will be required only once. In case of a change in IRP/RP, after initial appointment, it would be deemed to be change of authorized signatory and not an appointment of a distinct person requiring a fresh registration.
  8. In cases where the RP is not the same as IRP, or in cases where a different IRP/RP is appointed midway during the insolvency process, the change in the GST system may be carried out by a non- core amendment in the registration form.
  9. The change in Primary Authorized Signatory details on the portal can be done either by the authorised signatory of the Company or by the concerned jurisdictional officer (if the previous authorized signatory does not share the credentials with his successor) on request of IRP/RP.

Alert to Taxpayers on fake messages on GST Refund 03/05/2020

Attention Taxpayers!
Safeguard yourself from fake messages on GST Refunds
It has been observed that some fraudulent messages are being circulated on WhatsApp, Email and SMS, claiming to process GST refund. It clearly shows that some miscreants have started to take undue advantage of Covid-19 crisis, by sending out fake messages with phishing links. One such link takes to a portal claimed to have been developed by GSTN. The same is fake and Government has notified only www.gst.gov.in as the common portal, under the GST Laws.

Through such links, the taxpayers are asked to fill important information such as- Personal details, Address, Refund Details and KYC Verification, which may not just cause financial losses to the taxpayer but also enable such unscrupulous elements to steal their personal data for mala fide intentions.

Please be informed that GST refunds can be claimed through GST portal www.gst.gov.in only. Any other source, portal with similar interface, message claiming to process GST refunds are fraudulent. Please also note that GST Network does not ask personal information, refund details and KYC verification through email, WhatsApp or SMS or through any other website.

Taxpayers are advised to remain cautious against such messages and use GST portal www.gst.gov.in for refund application or any other GST related activity.

Do’s and Don’ts regarding Refund applications

Do’s Don’ts
Use only GST portal www.gst.gov.in for claiming refunds Do not reply to any message claiming to process GST refunds
For any information on claiming GST refund, checking status of the refund application read
Do not open any link or attachment in the message
Remember that GST Network never call detailed personal information and refund details on email, WhatsApp or SMS Never fill any personal detail and other information on any platform other than GST portal for claiming refunds
Stay updated with News & Update section of www.gst.gov.in for any official and authorized information Do not call at the number mentioned in the message
In case of any query of confusion, please call GST helpdesk 1800-103-4786. Do not trust information from any source other than the GST portal which uses similar portal names and interface

File FORM GST PMT 09, to transfer/shift the money available in Electronic Cash ledger, between various major and minor heads of GST 27/04/2020

Taxpayers deposit money using challan and the paid amount gets credited in the particular head in the Electronic Cash ledger and the same can be utilized in settling liabilities of that head only. In case a taxpayer deposited any amount under a major head i.e. IGST, CGST, SGST/UTGST and Cess or minor head i.e. Tax, Interest, Penalty, Fee and Others, they can then utilize this amount for discharging their liabilities only under that major head and minor head. Sometimes, inadvertently, the taxpayer pays the amount under the wrong head and it cannot be used to discharge the liabilities which may be due in another head. In such cases taxpayers can claim the refund of the amount which may have been deposited under wrong head in GST by filing a refund application in FORM RFD-01 under the category “Excess balance in electronic cash ledger”. The process of filing refund claim and its disbursement can sometimes lead to blockage of funds for the taxpayer.

Form GST PMT-09 is now available on GST portal and it enables a taxpayer to make intra-head or inter-head transfer of amount available in Electronic Cash Ledger. A taxpayer can file GST PMT 09 for transfer of any amount of tax, interest, penalty, fee or others available under one (major or minor) head to another (major or minor) head in the Electronic Cash Ledger. Form GST PMT 09 provides flexibility to taxpayers to make multiple transfers from more than one Major/Minor head to another Major/Minor head if the amount is available in the Electronic Cash Ledger. To file Form GST PMT-09 taxpayers are required to login on GST portal with valid credentials and navigate to Services > Ledgers > Electronic Cash Ledger > File GST PMT-09 For Transfer of Amount option. After Form GST PMT-09 is filed:

  • ARN is generated on successful filing of Form GST PMT-09.
  • An SMS and an email is sent to the taxpayer on his registered mobile and email id.
  • Electronic Cash ledger will get updated after successful filing of Form GST PMT-09.
  • Filed form GST PMT-09 will be available for view/download in PDF format.

A detailed FAQ and User Manual to guide taxpayer on Form PMT-09 has been provided on the GST Portal under the Help section click here

Alert for Input Service Distributors (ISDs), for data in SAVE stage in their Form GSTR 6 11/04/2020

    1. Changes are being made in the credit utilization criteria in Form GSTR-6, filed by Input Service Distributors (ISDs). These changes are likely to be implemented on the GST portal with effect from 14.04.2020.
    2. During the implementation of this change, any data which is lying in Form GSTR-6 of ISDs, in saved stage, will be lost. Thus, if there is some data, filled up in Form GSTR-6 and is in saved stage (which is not Submitted so far), that data will not be available to ISD, in their Form GSTR 6, for its further use. ISD will be required to fill up this data (which was in Saved stage and now lost due to implementation of change) again in their Form GSTR 6.
    3. All the Input Service Distributors (ISDs) are, therefore, requested to take note of this and take suitable action accordingly.


Filing Dates extended for providing relief to taxpayers in view of COVID-19 pandemic- Part 3 07/04/2020

7. Interest liability for filing Form GSTR-3B

a. Taxpayers having aggregate turnover > Rs. 5 Cr. in preceding FY

Tax period
Interest not payable,if filed by
Date from which interest is payable@ 9% till date of filing,if filed by 24th June, 2020
Date from which interest is payable@ 18% till date of filing,if not filed by 24th June, 2020
Feb, 2020
4th April, 2020
5th April, 2020
21st March, 2020
March, 2020
5th May, 2020
6th May, 2020
21st April, 2020
April, 2020
4th June, 2020
5th June, 2020
21st May, 2020

b. Taxpayers having aggregate turnover of > Rs. 1.5 crores and upto Rs. 5 crores in preceding FY

Tax period
Interest not payable,if filed by
Date from which interest is payable @18%, if not filed by dates in Column (b),for taxpayers falling in States/UT of Group 1
Date from which interest payable @18%, if not filed by dates in Column (b), for taxpayers falling in States/UT of Group 2
Feb, 2020
29th June, 2020
23rd March, 2020
25th March, 2020
March, 2020
29th June, 2020
23rd April, 2020
25th April, 2020
April, 2020
30th June, 2020
23rd May, 2020
25th May, 2020

c. Taxpayers having aggregate turnover of upto Rs. 1.5 crores in preceding FY

Tax period
Interest not payable,if filed by
Date from which interest is payable @18%, if not filed by dates in Column (b),for taxpayers falling in States/UT of Group 1
Date from which interest payable @18%, if not filed by dates in Column (b), for taxpayers falling in States/UT of Group 2
Feb, 2020
30th June, 2020
23rd March, 2020
25th March, 2020
March, 2020
03rd July, 2020
23rd April, 2020
25th April, 2020
April, 2020
06th July, 2020
23rd May, 2020
25th May, 2020

Note: To know in detail about States or UTs falling in Group 1 or 2, refer point no 1 (d) of the Part 1 of the advisory (click here https://www.gst.gov.in/newsandupdates/read/371)