KHANDHAR & ASSOCIATES

CHARTERED ACCOUNTANTS

GST WEEKLY UPDATE : 46/2021-22 (13.02.2022)

1. Delhi Govt. issues Guidelines on issuance of SCN under GST:

a) It should be issued only after proper inquiry/investigation i.e. when the facts used are
ascertained and allegations are prima fade made out;

b) It should be strictly in the format & manner prescribed under the GST Act and Rules made
thereunder;

c) It should be clear on facts and legal provisions. Alleged violation of the provisions of law
and other anomalies should be clearly brought out in the Show Cause Notice;

d) Copies of the documents to be submitted or compliance to be made by the noticee should be

specifically mentioned in the SCN;

e) Possibility of additional evidence being needed or additional anomalies being detected

should be kept open during the pendency of the proceeding and should also be mentioned in
the notice itself;

f) Copies of the details giving reasons for SCN should be attached with the SCN and Proper
Officer should not depend only on the drop down menus on the GSTIN portal;

g) The prima facie amount due, if any needs to be quantified and should be manifestly
specified in the notice itself. Possibility of raising additional demand should be kept and
mentioned in notice itself;

h) It should be clearly mentioned that whether the noticee(s) wishes to be heard in person,
apart from filing a written representation, in the matter;

i) The authority to which the SCN is answerable should be specifically stated along with Ward,
designation, e-mail id etc.;

j) All SCNs should be disposed off within statutory timelines.

2. Kerala SGST Dept has clarified on the GST applicability on the

service supplied Government & Govt authorities:

Applicability of the revised rate of GST.

The revised rate applicable for the said supply is 18%.

The revised rate is applicable from the 01st day of January, 2022.
In case, where the time of supply of the work completed is on or before 31st December,
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2021, GST at pre-revised rate is applicable and in case where the time of supply of the
work completed is on or after, 01st day of January, 2022, GST at the revised rate is
applicable.

Description of Service SGST

rate with
effect
from
01.01.20
22

Composite supply of works contract as defined in clause (119) of section 2 of the 9%

Kerala State Goods and Services Tax Act, 2017, supplied to a Governmental
Authority or a Government Entity by way of construction, erection,
commissioning, installation, completion, fitting out, repair, maintenance,
renovation, or alteration of, –
1. a historical monument, archaeological site or remains of national
importance, archaeological excavation, or antiquity specified under the
Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of
1958);
2. canal, dam or other irrigation works;
3. pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii)
sewerage treatment ordisposal
Composite supply of works contract as defined in clause (119) of section 2 of 9%
the State Goods and Services Tax Act, 2017 other than that covered by items
(i), (ia), (ib), (ic), (id), (ie) and (if) above, provided to a Governmental
Authority or a Government Entity by way of construction, erection,
commissioning, installation, completion, fitting out, repair, maintenance,
renovation, or alteration of-
1. a civil structure or any other original works meant predominantly for use
other than for commerce, industry, or any other business or profession;
2. a structure meant predominantly for use as (i) an educational, (ii) a clinical,
or(iii) an art orcultural establishment; or
3. a residential complex predominantly meant for self-use or the use of their
employees or other persons specified in paragraph 3 of the Schedule III of the
Kerala Goods and Services Tax Act, 2017.

Explanation. — For the purposes of this item, the term business shall not
include any activity or transaction undertaken by the State Government, the
Central Government or any local authority in which they are engaged as
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public authorities
Composite supply of works contract as defined in clause (119) of section 2 of 9%

the State Goods and Services Tax Act, 2017, involving predominantly earth
work (that is, constituting more than 75per cent. of the value of the works
contract) provided to a Governmental Authority or a Government Entity.

Composite supply of works contract as defined in clause (119) of section 2 of 9%

the Kerala State Goods and Services Tax Act, 2017 provided by a sub-
contractor to the main contractor providing services specified in item (vii)
above to a Governmental Authority or a Government Entity.

3. Central Government hereby revises Import policy for Moong from

Free to Restricted with immediate effect:

Exim Code Item Existing Existing Policy Revised Revised

Description Import Policy Condition Import Policy
policy Condition

07133190 Moong [Beans Free Import of the item, Restricted —

of the SPP Bill of Lading should
Vigna Radiata be issued on or before
(L.) Wilczek] 31.03.2022 and
import of such
consignment shall
need to be cleared
from Customs on or
before 30.06.2022.

Effect of the Notification: Import policy for Moong is revised from “Free” to “Restricted” with
immediate effect.

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4. DGFT notifies ITC (HS) 2022 to Sync with the Finance Act, 2021:
The Director-General of Foreign Trade (DGFT) has notified the Indian Trade Classification
(Harmonised System) 2022 (ITC (HS) 2022) to sync with the Finance Act, 2021

5. DGTR for imposing countervailing duty on copper tubes, pipes from

Malaysia, Thailand, Vietnam:

The commerce ministry has recommended the imposition of countervailing duty on copper
tubes and pipes from Malaysia, Thailand and Vietnam for five years, a move aimed at guarding
domestic players against imports that are subsidised by these countries. The ministry’s
investigation arm Directorate General of Trade Remedies (DGTR) in its findings after a probe
has stated that the investigation was initiated on a suo-motu basis and was notified to all
interested parties.

6. Important Judgements & AARs:

(i) Karnataka Highcourt Decision Regarding LEASE GIVEN TO HOSTAL IS EXEMPTED
UNDER GST:
(Applicant – Taghar Vasudeva Ambrish)

The service provided by the petitioner i.e., leasing out residential premises as hostel to
students and working professionals is covered under Entry Entry 13 of Notification
No.9/2017 dated 28.09.2017 namely 'Services by way of renting of residential dwelling for
use as residence' issued under the the Act.

The petitioner is held to be entitled to benefit of exemption notification."

(ii) Gujarat Highcourt Decision Regarding GST Dept. to Sanction Refund towards IGST
paid on Goods exported i.e. ‘Zero Rated Supplies’:

The Gujarat High Court has directed GST Department to sanction refund towards IGST paid in
respect to the goods exported i.e. ‘Zero Rated Supplies’. The petitioner, Jal Engineering invokes
the extraordinary jurisdiction vested in this Court under Article 226 of the Constitution of
India and seeks direction against the respondents for immediate sanction of the refund of
Integrated Goods and Service Tax paid in regard to the goods exported zero rated supplies
made vide Shipping Bills. It is averred that the authority has illegally withheld the refund of
the petitioner and the e-mail received from ICEGATE stating that since drawback is claimed at
a higher rate of refund of the petitioner, the same cannot be sanctioned under Section 54 of
the Central Goods and Service Tax Act, 2017 read with Section 16 of the Integrated Goods and
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Service Tax Act, 2019.

The petitioner is a partnership firm and is engaged in the business of manufacture, export and
supply of premium quality arrays of Gate Valve, Globe Valve, Swing Check Valve, Ball Valve,
Pressure Seal Valve, Conduit Gate Valve, etc. It also is registered under the GST Act and having
IEC Code. The refunds were stuck due to mismatch of invoice and shipping bills and Central
Board of Excise & Customs (CBEC) vide Circular No.05 of 2018-Customs dated 23.02.2018
provided an alternative mechanism to give exporters an opportunity to rectify such errors
committed in the initial stage. It envisaged an officer interface on the Customs EDI System
through which the Custom Officer may verify the information furnished in GSTN and Custom
EDI system and sanction refund in those cases where detail of invoice provided in GSTR-
01/Table 6A are correct.

High court held that, the sanction of the refund towards the IGST paid in respect of the goods
exported i.e. “zero rated supplies”, vide the shipping bills ought to have been completed as the
two circumstances provided in sub clauses (a) & (b) of Clause (4) of Rule 96 of Rules, 2017 do
not exist. The shipping bills, as per Rule 96, exporter once file are deemed to be an application
for refund of Integrated tax paid on the exports of goods and withholding of the same is made
permissible under Rule 96 (4) when read with Section 54 as specified. The court directed
respondents to sanction the refund towards the IGST paid in respect to the goods exported i.e.
‘Zero Rated Supplies’ made via the Shipping Bills. Respondent authorities are also directed to
pay interest, at the rate prescribed under the statute, to the petitioner on the amount of refund
from 01.07.2019 within a period of six weeks from the date of receipt of a copy of this order.

Disclaimer:
This publication contains information for general guidance only. It is not intended to address the
circumstances of any particular individual or entity. Although the best of endeavour has been
made to provide the provisions in a simpler and accurate form, there is no substitute to detailed
research with regard to the specific situation of a particular individual or entity. We do not accept
any responsibility for loss incurred by any person for acting or refraining to act as a result of any
matter in this publication.

THANKING YOU.

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