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Statutory Updates
Statutory Updates
For the sake of brevity, Central Goods and Services Tax, Integrated Goods and Services
Tax, Central Goods and Services Tax Act, 2017, Integrated Goods and Services Tax Act,
2017, Central Goods and Services Tax Rules, 2017 and Integrated Goods and Services
Tax Rules, 2017 have been referred to as CGST, IGST, CGST Act, IGST Act, CGST Rules
and IGST Rules respectively.
EXEMPTIONS
FROM GST
1. Amendments in the list of services exempted from GST
Notification no. 12/2017 CT(R) dated 28.06.2017 provides list of services
exempted from CGST. With effect from 01.10.2021, the said list of
exempted services has been amended as follows:-
(i) Amendment in the existing exemptions
Below mentioned entries of exemption from GST have been amended.
Amendments have been highlighted in bold hereunder:
PLACE OF SUPPLY
1. Place of supply of B2B MRO services in case of shipping industry shall
be the location of the recipient.
Section 13 of the IGST Act determines the place of supply of services where
location of supplier or location of recipient is outside India. In order to
prevent double taxation or non-taxation of supply of any service, sub-
section (13) of said section empowers the Government to notify any service
for which the place of supply shall be the place of effective use and
enjoyment of service. Few services had already been notified in this regard
vide Notification No. 4/2019 IT dated 30.09.2019.
Said notification has been amended to notify the place of supply of
maintenance, repair or overhaul service in respect of ships and other
vessels, or parts thereof as follows
The place of supply in respect of B2B supply of maintenance, repair or
overhaul service (hereinafter referred to as MRO service) in respect of ships
and other vessels, their engines and other components or parts supplied to
a person for use in the course or furtherance of business shall be the
location of the recipient of service.
By virtue of this notification, if an Indian shipping company has received
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In the absence of such notification, the place of supply of such MRO service provided by a
foreign supplier to an Indian shipping company would have been the location where the
services are actually performed, determined in terms of section 13(3)(a) of the IGST Act.
Accordingly, the place of supply of such services would have been outside India and thus,
they would not have qualified as import of services, thus, not been liable to GST.
REGISTRATION
1. Extension of time-limit for filing application for revocation of
cancellation of registration by a registered person permitted beyond
the stipulated time
W.e.f. 01.01.2021, proviso to section 30(1) of the CGST Act, 2017 was
substituted to permit the extension of time-limit for filing application for
revocation of cancellation of registration by a registered person.
Accordingly, the time period of filing of application for revocation of 30
days from the date of service of the order of cancellation of registration,
may, on sufficient cause being shown, and for reasons to be recorded in
writing, be extended,—
(a) by the Additional Commissioner or the Joint Commissioner, as the
case may be, for a period not exceeding 30 days;
(b) by the Commissioner, for a further period not exceeding 30 days,
beyond the period specified in clause (a).
Consequently, rule 23(1) of the CGST Rules has also been suitably amended
to give effect to aforesaid amendment. Amended rule 23(1) reads as
follows:
A registered person, whose registration is cancelled by the proper officer on
his own motion, may submit an application for revocation of cancellation of
registration, in prescribed form, to such proper officer, within a period of 30
days from the date of the service of the order of cancellation of registration
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RETURNS
1. Maximum late fees payable under section 47 for delayed filing of
Forms GSTR-1, GSTR-3B, GSTR-4 and GSTR-7, rationalized
Section 47 of the CGST Act stipulates a specified amount of late fee for
delay in filing any of the following by their respective due dates:
(A) Statement of Outward Supplies [Section 37]
(B) Returns (including returns under QRMP Scheme) Returns [Section 39]
(C) Final Return [Section 45]
An equal amount of late fee is payable by such person under the respective
SGST/UTGST Act as well. Penalty leviable under IGST Act shall be the sum
total of the penalties leviable under the CGST Act and the SGST/UTGST Act.
The late fee can be waived off partially or fully by the Central Government.
Consequently, since the inception of GST law, late fee is being regularly
waived off by the Central Government either partially or fully.
From the tax period June, 2021 onwards or quarter ending June, 2021 or FY
2020-21 onwards, as the case may be, late fee for delayed filing of Forms
GSTR-1, GSTR-3B, GSTR-4 and GSTR-7, has been rationalized as follows:
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(1) Registered
persons who have nil
outward supplies in ` 500 (` 250 each
the tax period/ whose under CGST &
total amount of tax SGST or ` 500
Class of registered persons
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REFUNDS
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JOB WORK
1. Frequency of filing GST ITC-04 revised from quarterly to annual/half-
yearly
Form GST ITC-04 serves as an intimation that is furnished by a registered
manufacturer (principal) giving the details of goods/capital goods
dispatched to/received from job workers.
Earlier, as per rule 45(3) of the CGST Rules, Form GST ITC-04 was furnished
on a quarterly basis. Said form was to be furnished for said period, on or
before 25th day of the month succeeding the said quarter or within such
further period as may be extended by the Commissioner by a notification in
this behalf.
With effect from 01.10.2021, rule 45(3) has been amended. Now, Form GST
ITC-04 is required to be furnished by the principal on annual/half yearly
basis, depending upon the quantum of his aggregate turnover during
immediately preceding financial year.
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FOREIGN TRADE
POLICY
1. Applicability of FTP extended till 31.03.2022
Foreign Trade Policy (FTP), 2015-2020, (as updated) incorporating provisions
relating to export and import of goods and services will now remain in
force upto 31.03.2022, unless otherwise specified.
[Notification No. 33/2015-2020 dated 28.09.2021]
2. Exemption from IGST and GST compensation cess extended upto
31.03.2022, in case of imports under Advance Authorisation, EPCG,
EOU/EHTP/STP/BTP units
Earlier imports against Advance Authorisations for physical exports were
exempted from Integrated Tax and Compensation Cess upto 30.09.2021.
The exemption from Integrated Tax and Compensation Cess in case of
imports against Advance Authorisations for physical exports has now been
extended upto 31.03.2022.
Earlier capital goods imported under EPCG Authorisation for physical
exports were exempted from IGST and Compensation Cess upto 30.09.2021.
The exemption from IGST and Compensation Cess in case of capital goods
imported under EPCG Authorisation for physical exports has now been
extended upto 31.03.2022.
In case of goods imported by EOU/EHTP/STP/BTP units from DTA, IGST and
GST compensation cess were exempt upto 30.09.2021. The exemption from
IGST and GST Compensation Cess in case of goods imported by
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