CIRCULAR NO-149/2021-CBIC-190354/36/2021-TRU Section-CBEC-Clarification regarding applicability of GST on supply of food in Anganwadis and Schools.

Circular No. 149/05/2021-GST

CBIC-190354/36/2021-TRU Section-CBEC
Government of India
Ministry of Finance
Department of Revenue
*****

North Block, New Delhi,Dated the 17th June, 2021

To,

The Principal Chief Commissioners/ Chief Commissioners/ Principal
Commissioners/ Commissioner of Central Tax (All) /
The Principal Director Generals/ Director Generals (All)
Madam/Sir,

Sub– Clarification regarding applicability of GST on supply of food in
Anganwadis and Schools -reg.

Representations have been received seeking clarification regarding
the applicability of GST on the issues as to whether serving of food in schools  under the Mid-Day Meals Scheme would be exempt if such supplies are funded by government grants and/or corporate donations. The issue was examined by GST Council in its 43rd meeting held on 28th May, 2021.

2. Entry 66 clause (b)(ii) of notification No. 12/2017-Central Tax (Rate) dated
28th June, 2017, exempts Services provided to an educational institution, by way of catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory. This entry applies to pre-school and schools.

3. Accordingly, as per said entry 66, any catering service provided to an
educational institution is exempt from GST. The entry further mention that such
exempt service includes mid- day meal service as specified in the entry. The scope of this entry is thus wide enough to cover any serving of any food to a school, including pre-school. Further, an Anganwadi interalia provides pre-school nonformal education. Hence, aganwadi is covered by the definition of educational institution (as pre-school)

Circular No. 149/05/2021-GST

4. Accordingly, as per recommendation of the GST Council, it is clarified that
services provided to an educational institution by way of serving of food (  catering including mid- day meals) is exempt from levy of GST irrespective of its funding  from government grants or corporate donations [under said entry 66 (b)(ii)]. Educational institutions as defined in the notification include aganwadi. Hence, serving of food to anganwadi shall also be covered by said exemption, whether sponsored by government or through donation from corporates.

5. Difficulty if any, in the implementation of this circular may be brought to the
notice of the Board.

Yours faithfully,

(Rajeev Ranjan)
Under Secretary, TRU
Email: rajeev.ranjan-as@gov.in
Tel: 011 2309 5558

CIRCULAR NO-148-2021-CBEC-20/06/04/2020-GST-Seeks to prescribe Standard Operating Procedure (SOP) for implementation of the provision of extension of time limit to apply for revocation of cancellation of registration under section 30 of the CGST Act, 2017 and rule 23 of the CGST Rules, 2017.

Circular No. 148/04/2021-GST

CBEC-20/06/04/2020-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
****

New Delhi, dated the18th May, 2021

To,

The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners /
Commissioners of Central Tax (All)

Madam/Sir,

Subject: Standard Operating Procedure (SOP) for implementation of the provision of extension of time limit to apply for revocation of cancellation of registration under section 30 of the CGST Act, 2017 and rule 23 of the CGST Rules, 2017 – reg.

As you are aware vide Finance Act, 2020, section 30 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “CGST Act”) was amended and the same has been notified with effect from 01.01.2021 vide notification No. 92/2020- Central Tax, dated 22.12.2020. The amended provision provides for extension of time limit for applying for revocation of cancellation of registration on sufficient cause being shown and for reasons to be recorded in
writing, by:

(a) the Additional or Joint Commissioner, as the case may be, for a period not exceeding thirty days;

(b) the Commissioner, for a further period not exceeding thirty days, beyond the period specified in clause (a) above Consequently, changes have also been made in rule 23 and FORM GST REG-21 of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the “CGST Rules”) vide notification No.15/2021- Central Tax, dated 18.05.2021…

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CIRCULAR NO-147-CBEC-20/23/03/2020-GST-seeks to clarify certain refund related issues

Circular No. 147/03//2021-GST

CBEC-20/23/03/2020-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing

New Delhi, Dated the 12th March, 2021

To,
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/
Commissioners of Central Tax (All)
The Principal Director Generals/ Director Generals (All)

Madam/Sir,

Subject: Clarification on refund related issues – Reg.

Various representations have been received seeking clarification on some of the issues relating to GST refunds. The issues have been examined and to ensure uniformity in the implementation of the provisions of law across the field formations, the Board, in exercise of its powers conferred by section 168 (1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “CGST Act”), hereby clarifies the issues detailed hereunder:

2. Clarification in respect of refund claim by recipient of Deemed Export Supply
2.1 Representations have been received in respect of difficulties being faced by the recipients of the deemed export supplies in claiming refund of tax paid in respect of such supplies since the system is not allowing them to file refund claim under the aforesaid category unless the claimed amount is debited in the electronic credit ledger.

2.2 Para 41 of Circular No. 125/44/2019 – GST dated 18/11/2019 has placed a condition that the recipient of deemed export supplies for obtaining the refund of tax paid on such supplies shall submit an undertaking that he has not availed ITC on invoices for which refund has been claimed. Thus, in terms of the above circular, the recipient of deemed export supplies cannot avail ITC on such supplies but when they proceed to file refund on the portal, the system
requires them to debit the amount so claimed from their electronic credit ledger.

2.3 The 3rd proviso to Rule 89(1) of CGST Rules, 2017 allows for refund of tax paid in case of a deemed export supply to the recipient or the supplier of deemed export supplies. The said proviso is reproduced as under:

\“Provided also that in respect of supplies regarded as deemed exports, the application
may be filed by, –

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CIRCULAR NO-146/2021-CBEC-20/16/38/2020-GST-Clarification in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance of notification 14/2020- Central Tax dated 21st March, 2020 – Reg.

Circular no. 146/02/2021-GST

F. No. CBEC-20/16/38/2020-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
***

New Delhi, dated the 23rd February, 2021

To
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners /
Commissioners of Central Tax (All)
The Principal Directors General / Directors General (All)

Madam/Sir,

Subject: Clarification in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance of notification 14/2020- Central Tax dated 21st March, 2020 – Reg.

, dated 21st March 2020 had been issued which requires Dynamic QR Code on B2C invoice issued by taxpayers having aggregate turnover more than 500 crore rupees, w.e.f. 01.12.2020. Further, vide Notification No. 89/2020- Central Tax, dated 29th November 2020, penalty has been waived for non-compliance of the provisions of Notification No.14/2020 – Central Tax for the period from 01st December, 2020
to 31st March, 2021, subject to the condition that the said person complies with the provisions of the said Notification from 01st April, 2021.

2. Various references have been received from trade and industry seeking clarification on applicability of Dynamic Quick Response (QR) Code on B2C (Registered person to Customer) invoices and compliance of Notification No. 14/2020-Central Tax, dated 21st March, 2020 as amended. The issues have been examined and in order to ensure uniformity in the implementation of the provisions of the law across the field formations, the Board, in
exercise of its powers conferred under section 168(1) of the CGST Act, 2017, hereby clarifies the issues in the table below:

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CIRCULAR NO-145/2021-CBEC-20/06/01/2021-GST-Standard Operating Procedure (SOP) for implementation of the provision of suspension of registrations under sub-rule (2A) of rule 21A of CGST Rules, 2017.

Circular No. 145/01/2021-GST

CBEC-20/06/01/2021-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
****

New Delhi, dated the 11th February, 2021

To,
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners /
Commissioners of Central Tax (All)

Madam/Sir,

Subject: Standard Operating Procedure (SOP) for implementation of the provision of suspension of registrations under sub-rule (2A) of rule 21A of CGST Rules, 2017 – regarding

As you are aware that vide notification No. 94/2020- Central Tax, dated 22.12.2020, sub-rule (2A) has been inserted to rule 21A of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the CGST Rules). The said provision provides for immediate suspension of registration of a person, as a measure to safeguard the interest of revenue, on observance of such discrepancies /anomalies which indicate violation of the provisions of Act
and rules made thereunder; and that continuation of such registration poses immediate threat to revenue.

2.1 Sub-rule (2A) of rule 21A is reproduced hereunder:

“(2A) Where, a comparison of the returns furnished by a registered person under section 39 with
(a) the details of outward supplies furnished in FORM GSTR-1; or
(b) the details of inward supplies derived based on the details of outward
supplies furnished by his suppliers in their FORM GSTR-1, or such other analysis, as may be carried out on the recommendations of the Council,
show that there are significant differences or anomalies indicating contravention of the provisions of the Act or the rules made thereunder, leading to cancellation of registration of the said person, his registration shall be suspended and the said person shall be intimated in FORM GST REG-31, electronically, on the common portal, or by sending a communication to his e-mail address provided at the time of registration or as amended from time to time, highlighting the said differences and anomalies and asking him to explain, within a period of thirty days, as to why his registration shall
not be cancelled.”;

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Rajasthan news :सेंट्रल GST की उदयपुर में बड़ी कार्रवाई, 8 करोड़ की घपले में पंजाब के व्यापारी को किया गिरफ्तार

राजस्थान के उदयपुर जिले में जीएसटी चोरी के एक बड़े मामले का खुलासा हुआ है। इस संबंध में सेंट्रल जीएसटी ने पंजाब के एक व्यवसायी को पकडा है।

 सतीश शर्मा, उदयपुर।
सेंट्रल जीएसटी टीम ने रविवार को उदयपुर में एक बड़ी कार्यवाही को अंजाम दिय़ा। यहां टीम ने फर्जी इन्वॉयसेस (fake invoice) के आधार पर आयरन स्क्रैप (iron scrap) का व्यापार में करते हुए करोड़ो की जीएसटी चोरी (GST evasion worth crores) कर रहे एक व्यापारी को गिरफ्तार किया। टीम ने पंजाब मूल के अनिल कुमार अरोड़ा उर्फ सेंटी को गिरफ्तार किया, जो इस गिरोह का मास्टरमाइंड भी है। दरअसल, अनिल फर्जी इनवॉयसेस बनाकर राजस्थान के कई शहरों से पंजाब (Punjab)में स्क्रैप का परिवहन करवा रहा था। गिरफ्तारी के बाद पूछताछ में सेंट्रल जीएसटी (Central GST investigation ) की टीम ने आरोपी अनिल कुमार पर 44 करोड़ के बिलों पर 7.97 करोड़ की जीएसटी चोरी भी पकड़ी हैं।2 ट्रक भी जब्त

जानकारी के अनुसार इस कार्रवाई में जीएसटी टीम ने आयरन स्क्रैप से भरे 2 ट्रक भी पकड़े हैं, जिन पर करीब 16 लाख का टैक्स अलग से बनाया गया। जीएसटी टीम के अधिकारियों की मानें तो आरोपी मार्च महीने में पंजाब के पवन कुमार शर्मा के पकड़े जाने के बाद से राजस्थान में इस कारोबार की कमान संभाले हुए था। गिरफ्तारी के बाद सेंट्रल जीएसटी की टीम आरोपी को उदयपुर से जोधपुर न्यायालय (Jodhpur court ) में पेश करने ले गई है। टीम ने आरोपी के उदयपुर आवास से लैपटॉप, मोबाइल फोन और अन्य दस्तावेज भी बरामद किए है।आरोपी ने बना रखी थी दो फर्मे!

आरोपी अनिल बगैर बिल और बिना ई-वे बिल के ही आयरन स्क्रेप की खरीद-बेचान कर रहा था। यही नहीं इसके लिए उसने बालाजी सेल्स कॉपोरेशन और करनी एंटरप्राइजेज नाम की फर्मे भी बना रखी थी। आरोपी कम वक्त में ज्यादा कमाने के लालच में सरकार को जाने वाला करोड़ो रूपये का टैक्स बचाने के लिए यह सब कर रहा था।

Delhi-based businessman arrested for Rs 128 cr GST-related fraud

A Delhi-based businessman here has been arrested for an alleged Rs 128 crore GST-related fraud, a senior official said on Sunday.

Investigations conducted by the officials of the Chandigarh zonal unit of the Directorate General of GST (Goods and Services Tax) Intelligence (DGGI) revealed that the accused was allegedly involved in issuing invoices without actually procuring goods and thus passing on input tax credit (ITC) to various beneficiaries at several places, including Delhi and Chandigarh.

ITC means that a businessman can reduce taxes already paid on the input while paying tax on the output.

The accused had set up six firms with an intention of passing on the fake ITC to multiple beneficiaries, the official of the Chandigarh zonal unit of the DGGI said.

He said the accused had passed on fraudulent ITC worth Rs 128 crore.

The GST officials also conducted searches at the business premises and residential places of the accused in Delhi and Himachal Pradesh, he said.

Raids were also carried out at the premises of some of the suppliers, the official added.

Investigation further revealed that the items, which were shown as sales, were never bought and similarly some items, which were shown as purchases, were never sold by the firms.

The vehicles, which were shown for transporting the goods, were found to be operating in some other parts of the country.The accused was into the business of readymade garments, chemicals, cigarettes, among other things. PTI

source:https://www.tribuneindia.com/news/delhi/delhi-based-businessman-arrested-for-rs-128-cr-gst-related-fraud-288168

GST: End hibernation on dispute resolution

The adage “old is gold” is not necessarily true, and has exceptions. The same applies to the pre-GST indirect tax landscape of India. The long-queues of trucks at state-borders (with entry upon cascading and exorbitant entry taxes), the rampant tax evasion on inter-state characterisation of local sales, etc, and the incoherent and localised VAT policy, with cascading effect, rate-wars between states, etc, many ills marked the past. Hence, GST is a shining example of the present being better than the past. Having said that, the foundations of a bright future do not rise on a stand-still present. In fact, more work is required, over the hard work already done. Unfortunately, time is not on the side of the policymakers. The expected buoyancy of GST collections is yet to be achieved, many distortionary taxes (like stamp duties and those on petroleum, electricity, stamp duties) continue. The clock is ticking, and it is now less than a year before the true contours of cooperative federalism, the idea on which GST is based, begin to get perceived. Some policy issues are identified here as requiring urgent action.

 The GST Council must evolve the rules for adjudication in time, lest a solution on resolving disputes itself becomes dispute-ridden

 

AdvertisementThe clock is ticking, and it is now less than a year before the true contours of cooperative federalism, the idea on which GST is based, begin to get perceived. Some policy issues are identified here as requiring urgent action.
The adage “old is gold” is not necessarily true, and has exceptions. The same applies to the pre-GST indirect tax landscape of India. The long-queues of trucks at state-borders (with entry upon cascading and exorbitant entry taxes), the rampant tax evasion on inter-state characterisation of local sales, etc, and the incoherent and localised VAT policy, with cascading effect, rate-wars between states, etc, many ills marked the past. Hence, GST is a shining example of the present being better than the past. Having said that, the foundations of a bright future do not rise on a stand-still present. In fact, more work is required, over the hard work already done. Unfortunately, time is not on the side of the policymakers. The expected buoyancy of GST collections is yet to be achieved, many distortionary taxes (like stamp duties and those on petroleum, electricity, stamp duties) continue. The clock is ticking, and it is now less than a year before the true contours of cooperative federalism, the idea on which GST is based, begin to get perceived. Some policy issues are identifie

 

From July 1, 2022, states will be on their own, the cushion of GST compensation lapsing, given that there is no formal acceptance by the Centre—much less an amendment in law—to extend compensation timelines. This is a far cry from last year’s scenario, the entitlement with which the states cajoled the Centre to borrow on its own and compensate the states for Covid-led economic diminution. It is an open secret that the underlying objective of the five-year compensation window (allowing states to conclude capacity-building, officer-training, and other initiatives) has not materialided into self-sustaining economic realities for most states. Why should it be a national concern if some states have chosen to ignore investments in capacity-building? The answer is clear. Vertical inequities amongst states result in dehyphenated policy-solutions with local issues superseding national developmental goals. Lop-sided and disjointed state interests imply a divided house, which is likely to result in frequent deadlocks in the GST Council. This will threaten the ability of this constitutional body to work. That GST Council should take immediate stock of such harsh realities can’t, thus, be overemphasised.

This requires conceptualising and implementing macro-economic solutions to bridge the economic divide amongst states. However, that alone would not be enough. The GST Council can’t rule out the possibility of a hung house. So far, it has worked with Group of Ministers (GoMs) to address differences among states. Whether it be the impasse on sugar cess, flood cess, or other issues, GoMs have performed satisfactorily. However, one cannot ignore the salient effect of the Centre compensating the states. With no such cushion around, disagreements with the states or their overt refusal to heed GST Council recommendations may turn out beyond the influence of Union finance minister’s office. An external intervention hinges upon guidelines for adjudication mechanism to address disputes amongst GST Council members owing to the constitutional stipulation for adjudication as the dispute resolution mechanism. It would be prudent for the Council to evolve the rules for adjudication in time, lest a solution on resolving disputes itself becomes dispute-ridden. It is notable that in absence of pre-defined adjudication mechanism, all political disputes may have to be tried as judicial ones by the constitutional courts.

Entrusting relatively junior officers with the responsibility to quell doubts of taxpayers does not appear to have yielded dividends for the GST Authority for Advance Ruling (AAR), a mechanism which was expected to impart certainty and obviate disputes. Even a two-tier machinery, with appeals against AAR being heard by senior tax officers, was found wanting in its objective of resolving inadequacies of AAR rulings. This led to creation of a third-institution—National Appellate Authority—to hear disputes arising from ‘conflicting advance rulings’. As on date, however, this forum is dysfunctional, with members yet to be appointed. Even otherwise, in most cases, the quality of AAR rulings has not been inspiring for taxpayers, often inviting interjection of the High Courts. There is urgent need for policy-makers to take stock. An ideal solution would be to replace the three-tier system with a single-tier AAR, like the ones recently-introduced for income tax and customs laws, with very senior officials determining request for advance ruling and working under appellate supervision of the High Courts.

GST tribunals have become a ping-pong in the apparent ego-clash between policy and law. Having to bear the brunt of adjudication owing to lack of tribunals, the Allahabad High Court and other High Courts have directed the policy-makers to urgently operationalise these. Almost parallelly, the Madras High Court quashed the legal provisions relating to the tribunal, highlighting lack of independence of its members owing to restricted qualification of members. The GST Council has not yet acted on the judicial opinion. As a result, there is not a single GST tribunal despite rise in GST disputes, especially those arising from refund claims and goods-confiscation. A recent guidance of the Supreme Court in the context of tribunals seems to vindicate the Madras High Court’s observations. Thus, this can brook no further delay, even by pleading that the matter is sub-judice. Being without tribunals implies locking precious tax revenue in litigation, which is self-defeating for GST reform. Piling tax refund claims and resorting to criminal law measures for recovery with breakdown in adjudication mechanism needs urgent intervention and an overhaul.

There is no room for procrastination. Covid-induced lockdown can influence tax collection, but should not be a reason for policy-inactivity. One would hope that the mechanism to seek resolution is put in place well in time to avoid disputes reaching unmanageable levels.

source:https://www.financialexpress.com/opinion/gst-end-hibernation-on-dispute-resolution/2297352/

GST officials arrest Delhi-based businessman for passing on fake ITC of Rs 128 cr

GST Intelligence officials have arrested a Delhi-based businessman here for allegedly fraudulently passing on input tax credit (ITC) worth Rs 128 crore, a senior official said on Sunday.

Investigations conducted by the officials of the Chandigarh zonal unit of the Directorate General of GST (Goods and Services Tax) Intelligence (DGGI) revealed that the accused was allegedly involved in issuing invoices without actually procuring goods and thus passing on the ITC to various beneficiaries at several places, including Delhi and Chandigarh.

ITC means that a businessman can reduce taxes already paid on input while paying tax on output.

The accused had set up six firms with an intention of passing on the fake ITC to multiple beneficiaries, the official of the Chandigarh zonal unit of the DGGI said.

He said the accused had passed on fraudulent ITC worth Rs 128 crore.

The GST officials also conducted searches at the business premises and residential places of the accused in Delhi and Himachal Pradesh, he said.

Raids were also carried out at the premises of some of the suppliers, the official added.

Investigation further revealed that the items, which were shown as sales, were never bought and similarly some items which were shown as purchases were never sold by the firms.

The vehicles, which were shown for transporting the goods, were found to be operating in some other parts of the country.

The accused was into the business of readymade garments, chemicals, cigarettes, among other things

source:https://www.businesstoday.in/latest/economy/story/gst-officials-arrest-delhi-based-businessman-for-passing-on–itc-of-rs-128-cr-302344-2021-07-25

CIRCULAR NO-144/2020-CBEC- 349/48/2017-GST-Waiver from recording of UIN on the invoices for the months of April 2020 to March 2021

Circular No.144/14/2020-GST

F. No. CBEC- 349/48/2017-GST (Part I)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing

New Delhi, dated the 15th December,2020

To,

The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/
Commissioners of Central Tax (All)/ The Principal Director General/ Director General (All)/ Pr.
Chief Controller of Accounts (CBIC)

Madam/Sir,

Subject: Waiver from recording of UIN on the invoices for the months of April 2020 to March2021-regarding

Vide Circular No.63/37/2018-GST dated 14th September, 2018 & corrigendum to the said circular dated 6th September 2019, waiver from recording of UIN on the invoices issued by retailers/other suppliers were given to UIN entities till March,2020.

2. It has been bought to the notice of the Board that the issue of non-recording of UINs has continued even after 31st March,2020. Therefore, it has been decided to give waiver from recording of UIN on the invoices issued by the retailers/suppliers, pertaining to the refund claims from
April 2020 to March 2021, subject to the condition that the copies of such invoices are attested by the authorized representative of the UIN entity and the same is submitted to the jurisdictional officer.

3. It is requested that suitable trade notices may be issued to publicize the contents of this Circular.

4. Difficulty, if any, in implementation of this Circular may please be brought to the notice of the Board. Hindi version would follow.

(Sanjay Mangal)
Commissioner (GST)

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IN PDF:-https://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular_Refund_144_12_2020.pdf