4.IDT Amendment May 2022 CA FINAL Prof Dippak

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CA-Final May 2022 Amendments [IDT (GST + Customs + FTP)] 1
CA-Final May 2022
Amendments [IDT (GST + Customs + FTP)]
GST – Volume I Amendments ................................................................................................... 4

1 : TIME OF SUPPLY ................................................................................................................................................. 4
1. TIME OF SUPPLY in case of Joint Development Agreement (JDA): N/N 06/2019- CT (Rate) (laying down ‘special procedure
for GST payment by ‘landowner’ and ‘developer’ in case of Joint Development Agreement (JDA)) amended so as to allow
‘developer- promoter’ to pay GST EARLIER THAN ‘the date of issuance of completion certificate for the project, or the date
of first occupation in the project, whichever is earlier’ (now, the Landowner-promoter can utilize credit of GST charged to
them by Developer-promoter in respect of such apartments that are subsequently sold by the landowner-promoter and on
which GST is paid.) [N/N 06/2019-CT (Rate) – amended now by N/N 03/2021-CT (Rate)- dated 2nd June, 2021] 4
2 : PAYMENT OF TAX .............................................................................................................................................. 8

1. Interest liability on belated GST payment made in belated GST return for the same tax period: Retrospective effect given to
proviso to Sec 50(1) providing that in case of belated tax payment (of self-assessed liability made by filing belated return),
interest shall be chargeable on NET CASH TAX liability (not on GROSS TAX LIABILITY) [FA, 2021 Amendment – enforced on 1st
June, 2021 – RETROSPECTIVE EFFECTIVE FROM 1ST July, 2017 ] 8
3 : JOBWORK .........................................................................................................................................................10
1. Rule 45(3) requiring Principal to file Form GST ITC-04 has been amended to change filing frequency from ‘Quarterly basis’
to the ‘ANNUALLY (for Principal having ATO (PY) upto 5 cr) and HALF-YEARLY basis (for Principal having ATO (PY) exceeding
5 cr)’. [Inserted Vide N/N 35/2021-CT (dated 24th Sep) – Effective from 1st Oct, 2021] 10
4 : REGISTRATION ................................................................................................................................................... 11
1. Rule 23 amended to incorporate provisions as to extension of time limit of submission of ‘Application for revocation of
cancellation of registration (AC/JC can extend time limit by 30 days & Commissioner can extend time limit by another 30
days) as made in Sec 30 by FA, 2020 [Amended by N/N 15/2021-CT –effective from 18th May, 2021] 11
5 : TAX INVOICE..................................................................................................................................................... 13
1. N/N 13/2020-CT amended to EXCLUDE (a) Government department and (b) Local Authority from scope of e-invoicing [N/N
23/2021-CT amended – w.e.f. 1st June, 2021] 13
6 : E-WAY BILL ........................................................................................................................................................ 14

1. Rule 138-E (Blocking of EWB) amended to the effect that supplier’s EWB facility will not be blocked on account of default on
part of registered recipient (i.e., he can make his supply to the registered recipient who is at default) [amended by N/N
15/2021-CT (w.e.f. 18th May, 2021)] 14
7 : ACCOUNTS & RECORDS .................................................................................................................................. 16

1. Requirement of getting the books audited by professional (CA or Cost Accountant) has been abolished by omission of Sec
35(5) of the CGST Act, 2017 [Omitted by FA, 2021 (w.e.f. 1st Aug, 2021)] 16
8 : RETURN ............................................................................................................................................................. 17
1. Section 44 has been substituted so as to provide for filing of the ANNUAL RETURN which may include SELF- CERTIFIED
RECONCILIATION STATEMENT. Also, by notification, RP with ATO up 2 crores exempted from filing AR for FY 2020-21.
Further, Rule 80 has been amended to provide that RP with ATO exceeding 5 crore shall be required to file annual return
with self-certified reconciliation statement. [Amended by FA, 2021 (w.e.f. 1st Aug, 2021) + N/N 31/2021-CT issued (dated
30 July, 2021)] 17
GST Volume-2 Amendment .................................................................................................... 22

1 : PLACE OF SUPPLY ............................................................................................................................................. 22
1. Supply of MRO (Maintenance, Repair and Overhaul) Services in respect of (SHIPS/ OTHER VESSELS) (+ their engines and
other components or parts): Notified u/Sec 13(13) – PoS shall now be LOCATION OF RECIPIENT OF SERVICE (as against
place of performance) – [Notification issued in exercise of powers given by Sec 13(13) – amended and made effective from
2nd June, 2021] 22
2 : REFUNDS.......................................................................................................................................................... 29
1. Rule 90 (Refund Acknowledgment) amended (a) to provide EXCLUSION of the Time Period between Filing of Original Refund
Application to Issuance of Deficiency Memo for Computation of Time for Filing Refund u/Sec 54(1) AND (b) to incorporate
provisions enabling refund applicant to withdraw his refund application (where no action, other than acknowledgement, has
been taken to such refund application [Proviso to Rule 90 (3) inserted – by N/N 15/2021-CT (w.e.f. 18th May, 2021) + sub-
rules (5) and (6) inserted in Rule 90 – by N/N 15/2021-CT (w.e.f. 18th May, 2021)] 29

2 Amendments [IDT (GST + Customs + FTP)] CA-Final May 2022
2. Rule 92 (Order Sanctioning Refund) amended to provide for withholding of refund, release of withheld refund and notifying
Forms thereof [ proviso omitted in Rule 92 (1) + proviso inserted in Rule 92 (2) + Consequential amendment in Rule 96 – by
N/N 15/2021-CT (w.e.f. 18th May, 2021) ] 32
3. Refund in terms of Sec 77 (refund of tax paid under wrong head): Rule 89 (1A) has been inserted providing that in respect to
‘refund of WRONG TAX paid due to wrong determination of place of supply’, the refund can be claimed before the expiry of
2 years from the date of payment of tax under the CORRECT HEAD (Also, since this N/N 35/2021 - CT is dated 24-9-2021,
those taxpayers who had paid the right type of tax before, can apply for refund of the wrong type of tax paid within two
years from 24-9-2021.) [Inserted by N/N 35/2021-CT (24 Sep, 2021) – Effective from 24 Sep, 2021] 36
3 : EXEMPTIONS UNDER GST ................................................................................................................................ 38

1. Exemption Notification 12/2017- CT (R): Entry No. 1, 9-D, 13, 74-A and 80 (Exemption to services by an Entity registered
u/Sec 12-AA of the Income Tax Act)- Presently due to amendment in Income Tax Act, 1961, in order to claim Income Tax
exemption u/Sec 10 and 11 of the Income Tax act, 1961, trust/institution has to register under 12AB of the Income Tax Act,
1961. Since, in order to claim income tax exemption u/Sec 10 and 11 of the Income Tax Act, 1961, trust/institution has to
register u/Sec 12AB of the Income Tax Act, 1961, the reference to Sec 12AA of the Income Tax Act in GST notification has
been replaced with “sec 12AA or sec 12 AB [E/N 12/2017-CT(R) amended by N/N 07/2021-CT(R) - (w.e.f. 1st Oct, 2021)] 38
2. Exemption Notification 12/2017- CT (R): Entry No. 9-AA (Exemption to services provided by/ to FIFA (and its subsidiaries) –
related to Events under FIFA U-17 Women’s World Cup 2020)- Considering the factual situation as to its postponement due
to Corona issue, the words ‘whenever rescheduled’ has been added to the exemption entry. [E/N 12/2017-CT(R) amended
by N/N 07/2021-CT(R) (w.e.f. 1st Oct, 2021) ] 39
3. Exemption Notification 12/2017- CT (R): Entry No. 9-AB inserted granting (Exemption to services provided by/ to AFC (and
its subsidiaries) – related to Events under AFC Women’s Asia Cup, 2022) [E/N 12/2017-CT(R) amended by N/N 07/2021-
CT(R) (w.e.f. 1st Oct, 2021)] 39
4. Exemption Notification 12/2017- CT (R): Entry No. 82-B inserted granting (Exemption to services provided by way of right to
admission to the events organized under AFC Women’s Asia Cup, 2022) [E/N 12/2017-CT(R) amended by N/N 07/2021-
CT(R) (w.e.f. 1st Oct, 2021)] 40
5. Exemption Notification 12/2017- CT (R): Entry No. 9-A and 9-B (Exemption to ‘Air Transportation of Export Goods’ and ‘Sea
Transportation of Export Goods) – Exemption was valid upto 30th Sep, 2021 which has now been extended to 30th Sep, 2022
[E/N 12/2017-CT(R) amended by N/N 07/2021-CT(R) (w.e.f. 1st Oct, 2021) ] 40
6. Exemption Notification 12/2017- CT (R): Entry No. 43 (Leasing of ROLLING STOCK (wagons, coaches etc) by IRFC (Indian
Railway Finance Corporation) - to IR (Indian railways)) – Exemption withdrawn and hence, entry omitted [E/N 12/2017-CT(R)
amended by N/N 07/2021-CT(R) (w.e.f. 1st Oct, 2021) ] 40
7. Exemption Notification 12/2017- CT (R): Entry No. 61-A inserted granting exemption to (Services by way of granting National
Permit to a goods carriage to operate through-out India / contiguous States) [E/N 12/2017-CT(R) amended by N/N
07/2021-CT(R) (w.e.f. 1st Oct, 2021) ] 41
8. Exemption Notification 12/2017- CT (R): Entry No. 72 amended (Services provided to the CG/SG/UT administration under
any training programme) – This exemption shall now be available if 75% or more of total expenditure is borne by the
CG/SG/UT administration [E/N 12/2017-CT(R) amended by N/N 07/2021-CT(R) (w.e.f. 1st Oct, 2021) ] 41
CUSTOMS Amendments......................................................................................................... 43
1. Amendments in Customs Act, 1962 ............................................................................... 43
1 : INTRODUCTION ................................................................................................................................................ 43
1. Section 154-C of CA, 1962 inserted empowering CBIC to notify customs common portal – which shall be called ‘CCEP –
Customs Common Electronic Portal’ (ICEGATE / ICES notified as ‘common customs portal’ u/Sec 154-C of the CA, 1962)
[Sec 154-C inserted by FA, 2021 + N/N 33/2021-Cus ] 43
2 : EXEMPTION FROM DUTY .................................................................................................................................44

1. Sec 25 of CA, 1962 amended to provide ‘default validity period’ in respect of CONDITIONAL EXEMPTION NOTIFICATION
[Sec 25 (4A) inserted by FA, 2021] 44
3 : IMPORT PROCEDURE ....................................................................................................................................... 45

1. Sec 46(3) of the CA, 1962 amended to make it mandatory Advance Filing of B/E latest by the end of the day (including
holiday) preceding the day of arrival of the vessel/aircraft/vehicle at the customs station at which the goods are to be
cleared for home consumption or warehousing (However, CBIC is empowered to prescribe different time limits for such filing
in certain cases, but by not later than the end of the day of arrival of the vessel/aircraft/vehicle at the Customs
port/station) [FA, 2021 read with Regulation 4 of of Bill of Entry (Electronic Integrated Declaration and Paperless
Processing) Regulations, 2018 (w.e.f March, 2021)] 45
4 : EXPORT PROCEDURE ....................................................................................................................................... 49

1. Electronic Duty Credit Ledger Regulations, 2021 framed in pursuance of Sec 51-B [Notified by N/N 75/2021-Cus (NT) –(23rd
Sep, 2021)] 49

2. Amendments in Customs Tariff Act, 1975 ..................................................................... 52
1 : TYPES OF CUSTOMS DUTIES ........................................................................................................................... 52
1. FA, 2021 has amended Section 9 (CVD on subsidized article) and Section 9A (ADD- Anti Dumping Duty) of the CTA, 1975 to
(a) provide for the levy of CVD and ADD on an imported good removed from an SEZ to the DTA, even when incorporated as
part of finished goods. (b) provide for CVD on imported goods removed from an EOU to the DTA, even when incorporated
as part of a finished good. [Amended by FA, 2021] 52
2. FA, 2021 has amended Section 9 (CVD on subsidized article) and Section 9A (ADD- Anti Dumping Duty) of the CTA, 1975 to
(a) provide that in case of circumvention of CVD/ADD, CG can impose ‘anti-circumvention measures’ but not earlier than
the date of initiation of the inquiry in this regard; (b) introduce ‘Anti-absorption provisions’ which can be imposed not earlier
than the date of initiation of the inquiry in this regard ; (c) clarify that extension of period of imposition of CVD/ADD at a
time can be for a maximum period of 5 years; (d) provide that ‘temporary revocation of CVD/ADD’ can be for a maximum
period of 1 year. [Amended by FA, 2021] 54
3. FA, 2021 .......................................................................................................................... 59

1: AIDC imposed by FA, 2021 ................................................................................................................................ 59
1. FA, 2021 has imposed AIDC (Agriculture Infrastructure and Development Cess) on ‘specified imported goods’ at notified
rates [Imposed vide Sec 124 of FA, 2021] 59
4. Amendments in Foreign Trade Policy ............................................................................ 61

1. Extension of FTP 2015-20:: Validity of Foreign Trade Policy 2015-20 has been extended till 31st March, 2022. [Notified vide
N/N 33/ 2015-20 (dated 28th Sep 2021)] 61
2. Imports under Advance Authorization, EPCG Authorization, EOU/EHTP/STP/BTP Units- Exemption to ‘IGST’ and ‘GST
Compensation Cess’ extended to 31st March, 2022. [Notified vide N/N 33/ 2015-20 (dated 28th Sep 2021)] 61
3. Principles of ‘Prohibition’ / ‘Restriction’ for imports/ Exports now made in line with international agreement. [Notified vide
N/N 17/ 2015-20 (dated 10th Aug, 2021)] 61
4. RoDTEP (Remission of Duties and Taxes on Export Products) Scheme notified [Notified vide N/N 19/ 2015-20 (dated 17th
Aug, 2021) - new scheme effective from 1st March, 2021] 62

GST – Volume I Amendments
1 : TIME OF SUPPLY
1. TIME OF SUPPLY in case of Joint Development Agreement (JDA): N/N 06/2019- CT (Rate) (laying down ‘special
procedure for GST payment by ‘landowner’ and ‘developer’ in case of Joint Development Agreement (JDA))
amended so as to allow ‘developer- promoter’ to pay GST EARLIER THAN ‘the date of issuance of completion
certificate for the project, or the date of first occupation in the project, whichever is earlier’ (now, the Landowner-
promoter can utilize credit of GST charged to them by Developer-promoter in respect of such apartments that are
subsequently sold by the landowner-promoter and on which GST is paid.) [N/N 06/2019-CT (Rate) – amended now by N/N
03/2021-CT (Rate)- dated 2nd June, 2021]
Real Estate Sector – ToS in case of JDA

This is an important amendment but has neither been covered in ICAI Study Material nor in Statutory
Updates.
On safer side, students are advised to do cover this.
Simplified version of Amendment

Illustration:
[Joint Development Agreement (JDA) between ‘Landowner’ and ‘Builder/Developer’ (wherein the Landowner transfers the LDR (Land
Development Rights) to the Developer and gets few constructed flats from the developers in return).]
 Landowner = A Ltd.
 Developer / Builder (promoter) = C Ltd.
 Date of entering into JDA = 10 April, 2021
 Date of Sale of under-construction flats by Landowner (landowner-promoter : A Ltd) to buyers = 20 June, 2022
 Date of issuance of completion certificate to the project (to Developer -promoter : C Ltd) to buyers = 28 Aug, 2025

PRE-AMENDMENT
Nature of Activity GST liability Payment of GST
1. Landowner (A Ltd.) Service Activity 1 RCM liability ToS as per ‘Sec 148 (Special Procedure) +
- Tfd. Of LDR/ FSI (Against non-monetary consideration (‘Developer- Promoter’ N/N 06/2019- CT (Rate)’
of construction service received from shall be liable to pay
‘Developer- Promoter’) GST) On the date of issuance of completion
certificate or first occupation, whichever is earlier
(in ours case, 28 Aug, 2025)
2. Developer- Promoter (C Ltd.) Service Activity FCM liability ToS as per ‘Sec 148 (Special Procedure) +
– Construction Service (sale of (Against non-monetary consideration (‘Developer- Promoter’ N/N 06/2019- CT (Rate)’
of transfer of LDR/ FSI received from shall be liable to pay
apartments before issuance of ‘Landowner’) GST) On the date of issuance of completion
‘completion certificate’ or ‘first certificate or first occupation, whichever is earlier
occupation’, whichever is earlier) (in ours case, 28 Aug, 2025)
3. Landowner – Promotor (A Ltd.) Service Activity FCM liability ToS as per ‘Sec 13’
– Construction Service (Against monetary consideration (‘Landowner-Promoter’ In general, earlier of
from other buyers) shall be liable to pay
(subsequent sale of apartments before GST)
(a) Issuance of invoice;
issuance of ‘completion certificate’ or (b) Receipt of payment;
‘first occupation’, whichever is earlier) (in ours case, 20 June, 2022)
Whether such ‘landowner-promoter’ is eligible to avail ITC of GST charged by the ‘developer-
promoter’ towards the supply of construction of apartments by the ‘developer-promoter’ to him?
Yes
Sec 17(5) of CGST Act
Such ITC is not blocked in terms of Sec 17(5) of CGST Act
N/N 11/2017- CT (Rate). [some conditions as to ITC availment]
(i) The ‘developer-promoter’ shall pay tax on the supply of service of construction of
apartments to the ‘landowner-promoter’.
(ii) ‘Landowner-promoter’ is eligible to take ITC, provided he further supplies such
apartments to his buyers before issuance of CC or first occupation, whichever is
earlier, and pays tax on the same which is not less than the amount of tax charged
from him on construction of such apartments by the developer-promoter’.
Issue: ITC becomes available to landowner-promoter in (Aug, 2025), while his GST liability on
further supplies arises in (June 2022) – it virtually means, he shall pay his GST liability (tax
period: June 2022) in cash only. Also, subsequently availed ITC (tax period: Aug, 2025)
may remain unutilized if it is their one-time business activity).
[Therefore, in his own interest such landowner-promoter treats the GST paid by him to the
developer-promoter as his cost and inbuilt the incidence thereof in price of apartment leading
to increase in sale price of such apartment.]
POST-AMENDMENT
Nature of Activity GST liability Payment of GST
1. Landowner (A Ltd.) Service Activity RCM liability ToS as per ‘Sec 148 (Special Procedure) +
- Tfd. Of LDR/ FSI (Against non-monetary consideration (‘Developer- Promoter’ N/N 06/2019- CT (Rate)’
of construction service received from shall be liable to pay
‘Developer- Promoter’) GST) On or before the date of issuance of
completion certificate or first occupation,
whichever is earlier
(in ours case, on or before 28 Aug, 2025)
2. Developer- Promoter (C Ltd.) Service Activity FCM liability ToS as per ‘Sec 148 (Special Procedure) +
– Construction Service (sale of (Against non-monetary consideration (‘Developer- Promoter’ N/N 06/2019- CT (Rate)’
of transfer of LDR/ FSI received from shall be liable to pay
apartments before issuance of ‘Landowner’) GST) On or before the date of issuance of
‘completion certificate’ or ‘first completion certificate or first occupation,
occupation’, whichever is earlier) whichever is earlier
(in ours case, on or before 28 Aug, 2025)
3. Landowner – Promotor (A Ltd.) Service Activity FCM liability ToS as per ‘Sec 13’
– Construction Service (Against monetary consideration (‘Landowner-Promoter’ In general, earlier of
from other buyers) shall be liable to pay
(subsequent sale of apartments before GST)
(a) Issuance of invoice;
issuance of ‘completion certificate’ or (b) Receipt of payment;
‘first occupation’, whichever is earlier) (in ours case, 20 June, 2022)
1 FAQs on real estate [F. No. 354/32/2019-TRU]- Dated 7th May, 2019
39: Land Owner being an individual is not engaged in the business of land relating activities and thus whether the transfer of development rights by an
individual to a promoter is liable for GST and whether the same will fall within the scope of “Supply‟ as defined in Section 7 of CGST Act, 2017?
Ans. The term business has been assigned a very wide meaning in the CGST Act and it includes any trade, commerce, manufacture, profession, vacation,
adventure, or any other similar activity whether or not it is for a pecuniary benefit irrespective of the volume, frequency, continuity or regularity
of such activity or transaction. Therefore, the activity of transfer of development rights by a land owner, whether an individual or not, to a promoter
is a supply of service subject to GST]

Whether such ‘landowner-promoter’ is eligible to avail ITC of GST charged by the ‘developer-
promoter’ towards the supply of construction of apartments by the ‘developer-promoter’ to him?
Yes (same as discussed above)
Resolution of Issue: ITC becomes available to landowner-promoter in (Aug, 2025), while his
GST liability on further supplies arises in (June 2022) – it virtually means, he shall pay his
GST liability (tax period: June 2022) in cash only. Also, subsequently availed ITC (tax
period: Aug, 2025) may remain unutilized if it is their one-time business activity).
Now this timing difference is sought to be taken care of wherein the landowner and the
developer have an option to get into back-to-back contracts where the developer can
also pay the GST to the Government in 2022 only and consequently the landowner will get
the Credit for the GST. However, it needs to be noted that the developer would only do this
in case the landowner pays it the GST Component immediately and hence there is no cash
flow impact on him.
Special ToS for REAL ESTATE SECTOR (on/from 1st April, 2019)
Notification No. 06/2019-CT (Rate) (dated 29th March, 2019):: Amended by N/N 03/2021-CT (Rate) – w.e.f. 2nd June, 2021
Suppliers of Services (Cross supply of services by landowner to builder/developer/ construction company):
ToS = [Date of CC / Date of first occupation- whichever is earlier].
1. In exercise of the powers conferred by Section 148 of the CGST Act, 2017, the CG, on the recommendations of the Council,
hereby notifies the following classes of registered persons, namely:-
(i) a promoter who receives development rights or Floor Space Index (FSI) (including additional FSI) on or after 1st
April, 2019 for construction of a project against consideration payable or paid by him, wholly or partly, in the form of
construction service of commercial or residential apartments in the project or in any other form including in cash;
(ii) a promoter, who receives long term lease of land on or after 1st April, 2019 for construction of residential apartments
in a project against consideration payable or paid by him, in the form of upfront amount (called as premium, salami,
cost, price, development charges or by any other name),
as the registered persons in whose case the liability to who shall pay central tax on, -
(a) the consideration paid by him in the form of construction service of commercial or residential apartments in the
project, for supply of development rights or FSI (including additional FSI);
(b) the monetary consideration paid by him, for supply of development rights or FSI (including additional FSI) relatable
to construction of residential apartments in project;
(c) the upfront amount (called as premium, salami, cost, price, development charges or by any other name) paid by him
for long term lease of land relatable to construction of residential apartments in the project; and
(d) the supply of construction service by him against consideration in the form of development rights or FSI (including
additional FSI),
- shall arise on the earliest of the following 2 dates:
 on the date of issuance of completion certificate for the project, where required, by the competent authority or
 on its first occupation.
- in A TAX PERIOD
Not Later Than the tax period in which
-- the date of issuance of the completion certificate for the project, where required, by the competent authority, or
-- the date of its first occupation, whichever is earlier,
falls.
2. Explanation:- For the purpose of this notification,-

(i) the term “apartment” shall have the same meaning as assigned to it in section 2 (e) of the Real Estate (Regulation and Development)
Act, 2016 ;
(ii) the term “promoter” shall have the same meaning as assigned to it in section 2 (zk) of the Real Estate (Regulation and Development)
Act, 2016 ;
(iii) the term “project” shall mean a Real Estate Project (REP) or a Residential Real Estate Project (RREP);
(iv) the term “Real Estate Project (REP)” shall have the same meaning as assigned to it in section 2 (zn) of the Real Estate (Regulation
and Development) Act, 2016;

(v) the term “Residential Real Estate Project (RREP)” shall mean a REP in which the carpet area of the commercial apartments is not more
than 15% of the total carpet area of all the apartments in the REP.
(vi) the term “floor space index (FSI)” shall mean the ratio of a building’s total floor area (gross floor area) to the size of the piece of land
upon which it is built.
(vii) Tax on services covered by sub-para (i) and (ii) of Paragraph 1 above is required to be paid under reverse charge basis in
accordance with N/N 13/2017- CT (Rate), dated 28.06.2017.
Author: Special ToS for REAL ESTATE SECTOR

Service by way of transfer of DR/ FSI [Sec 148 (Spl Procedure) + N/N 6/2019-CT (Rate)]
Service by way of Long Term Lease (30 years or more) [Sec 148 (Spl Procedure) + N/N 6/2019-CT (Rate)]

2 : PAYMENT OF TAX
1. Interest liability on belated GST payment made in belated GST return for the same tax period: Retrospective
effect given to proviso to Sec 50(1) providing that in case of belated tax payment (of self-assessed liability made
by filing belated return), interest shall be chargeable on NET CASH TAX liability (not on GROSS TAX LIABILITY)
[FA, 2021 Amendment – enforced on 1st June, 2021 – RETROSPECTIVE EFFECTIVE FROM 1ST July, 2017 ]
Section 50 : Interest on DELAYED PAYMENT of tax.

(1) Failure to pay (full/ part): Interest @18% p.a.
Every person who is liable to pay tax in accordance pay, on his own,
with the provisions of this Act or the rules made interest at such rate, not exceeding 18% p.a., as
thereunder, may be notified by the Government on the
but fails to pay the tax or any part thereof to the recommendations of the Council.
Government within the period prescribed, shall for
the period for which the tax or any part thereof
remains unpaid,
Notified Rate 18% p.a. [N/N 13/2017-CT + N/N 6/2017-IT]
Belated tax payment (taking place with belated filing of return): Interest to be levied only on NET CASH
LIABILITY paid through E-Cash Ledger 2
Provided that
the interest on tax payable in respect of supplies made shall be levied
during a tax period and declared in the return for the on that portion of the tax that is paid by
said period furnished after the due date in accordance with debiting the electronic cash ledger.
the provisions of section 39,
except where such return is furnished after commencement
of any proceedings under section 73 or section 74
in respect of the said period,
Provided that
the interest on tax payable in respect of supplies made shall be payable
during a tax period and declared in the return for the on that portion of the tax that is paid by
said period furnished after the due date in accordance with debiting the electronic cash ledger.
the provisions of section 39,
except where such return is furnished after commencement
of any proceedings under section 73 or section 74
in respect of the said period,
Author: Applicability of proviso to Sec 50(1):
Supplies Supplies declared Furnishing of Interest liability on
made in return of return ‘Gross Liability’ / ‘Net liability’
Jan, 20x1 Jan, 20x1 After due date Interest on Net GST liability
(26 Feb, 20x1) (Benefit of proviso to Sec 50(1) available)
Jan, 20x1 March, 20x1 Returns filed on Interest on Gross GST liability
due date (Benefit of proviso to Sec 50(1) is not available)
* The provision does not give relief on the following amounts:
1. Any unpaid tax even balance is lying in his electronic cash / credit ledger; Proviso to Sec 50(1) is not
2. Tax payable in one tax period but paid later would not enjoy such relief applicable
even when paid by ITC eg. A taxpayer paid short tax of ₹ 1 Lakh in Nov, 20x1.
2
Interest to be levied only on NET CASH LIABILITY: Proviso inserted in Sec 50(1) by FA, 2019 to provide for charging interest on ‘net tax
liability’ of the tax payer, after taking into account the admissible ITC. Vide FA, 2021, this has been given retrospective effect – w.e.f. 1st
July, 2017.

He declared and paid the same in tax period of Dec, 20x1. The payment is made Therefore, interest shall be payable
by using the carried forward ITC in the month of Nov, 20x1. As per the current on ‘gross tax liability’.
version of the section, he would be required to pay interest on tax of ₹ 1 Lakh for
the period of delay even if the same is paid by ITC.
3. Tax liability of a tax period paid through return of same tax period filed Proviso to Sec 50(1) specifically
belatedly, but such return filed after initiation of any proceedings under exclude this situation
Section 73/74 in respect of such tax period Therefore, interest shall be payable
on ‘gross tax liability’.

3 : JOBWORK
1. Rule 45(3) requiring Principal to file Form GST ITC-04 has been amended to change filing frequency from
‘Quarterly basis’ to the ‘ANNUALLY (for Principal having ATO (PY) upto 5 cr) and HALF-YEARLY basis (for Principal
having ATO (PY) exceeding 5 cr)’. [Inserted Vide N/N 35/2021-CT (dated 24th Sep) – Effective from 1st Oct, 2021]
Amendment in Simplified Form

Form GST ITC-04 (Return/Intimation filed by Principal – containing details of all goods sent to job-worker and received from job-worker)
Compliances for sending goods for job-work:
 For movement of goods for Job work, supplier is required to prepare a delivery challan (Rule 55) and is also required to generate e-
way Bill (Rule 138).
 Further, he is required to file Form GST ITC-04 return (Rule 45(3)) , which contains details of all goods sent to job worker and received
from job worker. As per erstwhile provision, this is required to be filed on QUARTERLY BASIS (by 25th of following month).
 It has been represented that FORM GST ITC-04 is difficult to prepare which makes it extremely difficult to file.
Accordingly, requirement of filing Form GST ITC-04 is under review.
Till the time final decision is taken as to requirement of filing Form GST ITC-04, Rule 45(3) has been amended to the following effect:
(i) Taxpayers whose annual ATO (PY) is upto ₹ 5 crores shall furnish Form GST ITC ITC-04 annually (by 25th);
(ii) Taxpayers whose annual ATO (PY) is above ₹ 5 crores shall furnish Form GST ITC-04 once in six months (by 25th)
Rule 45 : Conditions and restrictions in respect of inputs and capital goods sent to the JOB WORKER
(1) Goods (input/ CG) sent to Job-worker: Principal shall prepare [(JOB-WORK) CHALLAN] as covering documents
(2) J/W Challan issued by the principal to the job worker shall contain the details specified in rule 55:
(3) Half-Yearly / Yearly Form GST ITC-04 (containing details of J/W challans) – to be filed within 25 days or
extended due date
The details of challans in respect of shall be included in FORM GST ITC 04 furnished for
goods dispatched to a job worker or that tax period
goods received from a job worker on or before 25st day of month succeeding the said
quarter the said period or
during a QUARTER during a specified period 3
within such period as may be extended by
Commissioner by notification in this behalf.
Provided that
any extension of the time limit notified by the shall be deemed to be notified by the Commissioner.
Commissioner of State tax or the Commissioner of (CGST)
Union territory tax
Explanation: For the purposes of this sub-rule, the expression “SPECIFIED PERIOD” shall mean –
(a) the period of 6 consecutive months in respect of a principal whose ATO during the
commencing on immediately preceding financial year exceeds ₹ 5
the 1st day of April and crore;
the 1st day of October
and
(b) a financial year in any other case.
(4) Goods sent to J/Wker must be received within period-stipulated u/Sec 143
Consequence of Non-Receipt = Transaction to be treated as supply (made at the time goods were sent for job-
work)
3 Inserted Vide N/N 35/2021-CT (dated 24th Sep) – Effective from 1st Oct, 2021

4 : REGISTRATION
1. Rule 23 amended to incorporate provisions as to extension of time limit of submission of ‘Application for
revocation of cancellation of registration (AC/JC can extend time limit by 30 days & Commissioner can extend time
limit by another 30 days) as made in Sec 30 by FA, 2020 [Amended by N/N 15/2021-CT –effective from 18th May, 2021]
Pre-Amendment: Fixed time limit for submission of ‘Revocation Application’ – 30 days from date of service of cancellation order
Post-Amendment: Provisions as to extension of time limit introduced. Now, applicable time limit (including extension) shall be as follows:
Time limit for submission of Application for First extension Further extension
revocation of registration cancellation
30 days from the date of service of cancellation Extension upto 30 days Extension upto 30 days
order by jurisdictional by jurisdictional
Additional Commissioner Commissioner
/ Joint Commissioner

Rule 23 : Revocation of cancellation of registration

(1) 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 FORM GST REG-21, to such proper officer,
 within thirty days from the date of service of the order of cancellation of registration
 or within such time period as extended by the Additional Commissioner or the Joint Commissioner or the
Commissioner, as the case may be, in exercise of the powers provided under the proviso to section 30(1),
(Inserted vide N/N 15/2021-CT)
 at the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner:

5 : TAX INVOICE
1. N/N 13/2020-CT amended to EXCLUDE (a) Government department and (b) Local Authority from scope of e-
invoicing [N/N 23/2021-CT amended – w.e.f. 1st June, 2021]
Notified RP mandated to do e-invoicing

N/N 13/2020-CT (dated 21st march, 2020) (issued in exercise of powers given by Rule 48(4))
(as amended by N/N 23/2021-CT (dated 1st June, 2021 2021)
 Registered person (other than or A Government Department or Local Authority or those referred in Rule 54 (2) , (3),
(4), (4A). or a SEZ Unit)
whose ATO (in any preceding FY from 2017-18 onwards) > ₹ 50 Crores 4
shall prepare Invoice and other prescribed documents (Debit Note and Credit Notes) in terms of Rule 48(4) (i.e., Document
with QR Code (with embedded IRN) in respect of supply of goods or services or both
- to a Registered person (i.e., B2B supply) or
- for EXPORT
4
Mandatory e-Invoicing:
 [From 1st Oct 2020 (FY 2020-21) to all businesses whose ATO has exceeded the ₹ 500 crore in any of the previous FYs from 2017-18 to 2019-20].
 [From 1st January 2021 (FY 2020-21), to businesses whose ATO has exceeded ₹100 crore in any of the previous FYs from 2017-18 to 2019-20.]
 [From 1st April, 2021 (FY 2021-22) to all businesses whose ATO has exceeded ₹50 crore in any of the previous FYs from 2017-18 to 2020-21.].
Computation of ATO for FY 2017-18 (the first year of introduction of GST from 1st July, 2017): For FY 2017-18, the aggregate turnover is to be computed
from 1st July 2017 until 31st March 2018. - GST e-invoice/IRN System – (updated on 30th March, 2021)

6 : E-WAY BILL
1. Rule 138-E (Blocking of EWB) amended to the effect that supplier’s EWB facility will not be blocked on account
of default on part of registered recipient (i.e., he can make his supply to the registered recipient who is at
default) [amended by N/N 15/2021-CT (w.e.f. 18th May, 2021)]
Amendment: As per existing Rule 138-E of CGST Rules 2017, the EWB generation facility by a consignor, consignee, transporter, an e-
commerce operator or a courier agency) in respect of a RP, whether as a supplier or a recipient, is liable to be restricted, in case the said
RP fails to file their returns for a consecutive period of two tax periods or more (or composition supplier fails to file CMP-08 statements for
two consecutive quarters or more).
The biggest concern for a taxpayer with this new system is that if the recipient of goods has not filed the returns for more than two
months, and EWB facility in respect of such recipient is blocked in terms of provisions of Rule 138-E, then the supplier will not be able to
generate EWB in respect of any supply to such recipient (even though such supplier is not at any default).
Thus, in such a case, for the mistake of the recipient, the supplier’s business is made to suffer. (e.g., if such supplier has already
arranged for goods for supply to such recipient, now due to blocking of EWB i.r.o. such recipient, he will not be able to supply goods and
consequently will not be able to realize payment)
Preventing supply of goods by suppliers to such defaulting recipients adversely affects the business of the compliant supplier,
which may not be the intention while introducing the said provision of blocking of EWB under Rule 138E of CGST Rules, 2017.
To take care of such situations, Rule 138-E has been amended to the effect that issuance of e-way bill by the compliant supplier might
not be blocked, in respect of supply made to such recipient who is at default.

Crux:
1. Blocking of GSTIN for EWB generation is now considered only for the defaulting Supplier GSTIN and not for the defaulting Recipient or
Transporter GSTIN.
2. Suspended GSTIN as supplier cannot generate EWB. However, the Suspended GSTIN as recipient or as transporter can get the EWB
generated.
Rule 138-E : Restriction on furnishing of information in PART A of FORM GST EWB-01

Blocking of EWB Generation – for [RP who is Statement/Return Defaulter for certain period] / [RP whose reg. has
been suspended]
Notwithstanding anything contained in Rule 138 (1),
NO PERSON (including a consignor, consignee, transporter, an e-commerce operator or a courier agency)
shall be allowed to furnish the information in PART A of FORM GST EWB-01
 in respect of a registered person, whether as a supplier or a recipient, who, —
 in respect of any OUTWARD MOVEMENT of goods of a registered person, who, —
(a) being a person paying tax under section 10, has not furnished
or the STATEMENT in Form GST CMP -08
(i.e. a person working under composition scheme) for two consecutive quarters; or
(b) being a person other than a person specified in has not furnished
clause (a), the returns
(i.e. all persons other than composition supplier) for a consecutive period of two TAX PERIODS: or
[Tax period = Return filing period (Quarter for QRMP taxpayer)
& (Monthly for other)]
(c) being a person other than a person specified in has not furnished
clause (a) , the Statement of Outward Supplies (GSTR-1)
(i.e. all persons other than composition supplier) for ANY two months or quarters, as the case may be: 5 or
[GSTR-1 = (Quarterly for QRMP taxpayer) & (Monthly for Other)]
(d) being a person, whose registration has been
SUSPENDED under the provisions of
-- Rule 21-A (1):
(Deemed suspension in case RP applied for cancellation)
-- Rule 21-A (2)
(Invocation of cancellation by PO and discretionary
suspension by PO)
-- Rule 21-A (2A)
(Suspension by GST System/portal followed by
Cancellation of Reg by PO)
5 Default in filing of GSTR-1 (Statement of Outward Supplies) for ANY 2 months/ quarters (not necessarily consecutive months)
will lead to EWB blockage: It shall be noted that as per GST law, GSTR – 1 can be filed even without filing previous tax periods’ return.
Thus, by this notification, not only consecutive period defaulter of GSTR-1 but defaulter of any two months would fall under ambit of
blocking of E-way Bill.

7 : ACCOUNTS & RECORDS

1. Requirement of getting the books audited by professional (CA or Cost Accountant) has been abolished by
omission of Sec 35(5) of the CGST Act, 2017 [Omitted by FA, 2021 (w.e.f. 1st Aug, 2021)]

Annual GST Audit
Requirement of getting the books audited by professional (CA or Cost Accountant) has been abolished by omission of Sec
35(5).
Note: Audit by professional and submission of CA (Chartered Accountant or Cost Accountant) certified reconciliation statement is being substituted
by Self-certified Reconciliation Statement by taxpayer (which will be inbuilt in Annual return).
Consequential amendment for that is also being made in Sec 44 dealing with Annual Return).
Sec 35 : Accounts and other records.

[Omitted by FA, 2021 (w.e.f. 1st Aug, 2021)]
(5) GST Audit: RP having ATO > prescribed limit [Prescribed limit = 2 crores (for FY 2018-19, 2019-20: prescribed limit is
5 crores) [Submit (audited annual accounts + reconciliation statement) with Annual Return]
Every registered person  shall get his accounts audited by a Chartered Accountant
whose turnover during a financial year or a Cost Accountant
exceeds the prescribed limit and
 shall submit
 a copy of the audited annual accounts,
Prescribed Limit [R-80 of CGST Rules, 2017]  the reconciliation statement under section 44(2) [Form
Generally 2 Crore GSTR- 9C]. and
FY 2018-19, 2019-20 5 Crore  such other documents
in such form and manner as may be prescribed.
GST Audit not required by Dept of Govt/ Local Authority liable to CAG Audit / Statutory Auditor of LA
Provided that
nothing contained in this sub-section shall apply to whose books of accounts are subject to audit by
any department of the Central Government or a  the Comptroller and Auditor-General of India or
State Government or a local authority,  an auditor appointed for auditing the accounts of
local authorities under any law for the time being in
force.

8 : RETURN
1. Section 44 has been substituted so as to provide for filing of the ANNUAL RETURN which may include SELF-
CERTIFIED RECONCILIATION STATEMENT. Also, by notification, RP with ATO up 2 crores exempted from filing AR
for FY 2020-21. Further, Rule 80 has been amended to provide that RP with ATO exceeding 5 crore shall be
required to file annual return with self-certified reconciliation statement. [Amended by FA, 2021 (w.e.f. 1st Aug, 2021)
+ N/N 31/2021-CT issued (dated 30 July, 2021)]

Annual Return (AR) – Sec 44
Pre-Amendment Post-Amendment by FA, 2021
Person required  RP = Normal Supplier  RP = Normal Supplier
to file AR  RP = Composition Supplier  RP = Composition Supplier
Form  Normal Supplier: Form GSTR-9  Normal Supplier: Form GSTR-9
 Composition Supplier: Form GSTR-9A  Composition Supplier: Form GSTR-9A
[Specified in Rule 80] [Specified in Rule 80 (New Forms Notified)]
Manner Online (over common portal) Online (over common portal)
Due Date 31st Dec (following end of FY) [Specified in Sec 44] 31st Dec (following end of FY) [Now Specified in Rule 80]
Due date extension provisions – Sec 44 (1) contained Due date extension provisions – Rule 80 does not contain any
extension provision. It provided for extension of due extension provision.
date by Commissioner (on recommendation of GST If need arises, then extension shall be granted by way of issue of
Council) notification by Govt. u/Sec 148 (Special Procedure).
Person exempted from filing Annual Return

Category-1: No parallel provision First Proviso to Sec 44
[But similar relaxation was granted by issuing Notified class of RP (notified by Commissioner 6
upon
notification under ‘Sec 148 (special procedure)] recommendation of GST Council) *
N/N 47/2019-CT (issued u/Sec 148). N/N 31/2021-CT (issued u/first proviso to Sec 44)
For 2017-18, 2018-19 & 2019-20: RP with ATO in FY For FY 2020-21: RP whose ATO in FY 2020-21 is upto ₹ 2 crore is
upto ₹ 2 crore - filing of AR was made optional. exempted from filing AR
Category-2: No parallel provision Second Proviso to Sec 44

[But these entities were exempted from Department of CG/SG or LA – whose books of accounts
requirement of GST Audit and furnishing of are already subject to audit by C&AG or auditor
audited financial statements and certified GSTR- appointed by LA under law.
9C – Sec 35(5) + R-80]
Documents to accompany Annual Return
Accompanying Sec 35 (5) Sec 35 (5): Omitted by FA, 2021
Documents RP (i.e., ATO > 2 Crores) 7 is required to get his
[Reconciliation accounts audited by CA Sec 44 r/w Rule 80
Statement] RP required to file Annual Return and having [ATO (FY) >
Sec 44 (2)
5 cr)]- then return shall be accompanied with Self-
RP who is required to get his accounts
Certified Reconciliation Statement [Form GSTR-9C]
audited u/Sec 35 (5) (i.e., ATO > 2 Crores) shall
furnish alongwith
- Audited financial statements
- CA certified Reconciliation Statement
[Form GSTR-9C]
Department of CG/SG/ LA – whose books of
accounts are already subject to audit by C&AG or Department of CG/SG/ LA – whose books of accounts are
auditor appointed by LA under law: GST Audit &
::
already subject to audit by C&AG or auditor appointed by LA
consequent furnishing of GSTR-9C Not under law: Exempted from filing AR itself and hence, no
::
applicable to these entities question of furnishing of GSTR-9C -

[Sec 35 (5) + Sec 44 (2) + R-80] [Sec 44 (second proviso) + R-80]
6
Note: For purpose of Sec 44, Commissioner shall mean ‘Commissioner posted in CBIC’ (and not jurisdictional Commissioner) – refer
consequential amendment in Sec 168 also (discussed later)
7 Threshold limit of ATO for GST Audit for FY 2018-19 and 2019-20 was 5 crore.


Summary Table :
FY 2017-18, 2018-19, 2019-20 [JUST FOR KNOWLEDGE]
Registered Person Annual Return Filing GST Audit and furnishing of copy of Audited Annual
(being normal supplier or [Sec 44 (1) + Rule 80] Accounts & Reconciliation Statement [Sec 35 + Sec
composition supplier) 44(2) + Rule 80]
Not applicable to Department of CG/SG/ LA – whose books
of accounts are already subject to audit by C&AG or auditor
appointed by LA under law
ATO upto 2 crore Has been made Optional Not Required (for any FY)
(for FY 2017-18, 2018-19 and 2019-20)
[As per Sec 44 + Read with Sec 148 8]
ATO > 2 crore but upto 5 crore Compulsory Not Required. (for FY 2018-19 and 2019-20)
ATP > 5 crore Compulsory Required (for all FYs)
FY 2020-2021 & onwards

RP (being normal supplier or composition supplier) Compliances as to Annual Return
Excluding Department of CG/SG/ LA – whose books of accounts [Sec 44 + Rule 80]
are already subject to audit by C&AG or auditor appointed by LA
under law
ATO upto 2 crore No Annual Return

ATO > 2 crore but upto 5 crore Annual Return shall be furnished (but no self-certified reconciliation
statement required)
ATP > 5 crore Annual Return shall be furnished with self-certified reconciliation
statement
Sec 44 : Annual Return

(1) RP (except few) to file Annual Return – by 31st Dec (or extended due date)
Every registered person, shall furnish an ANNUAL RETURN electronically
other than  in such form and manner as may be prescribed
 an Input Service Distributor, [Rule-80: (For composition supplier: Form GSTR-9A) (For others :
Form-9)]
 a person paying tax under section 51 or section
52, (i.e., tax deductor and tax collector)  on or before 31st December following the end of
 a casual taxable person* and a non-resident such financial year.
taxable person,
Due Dates Extension: Commissioner empowered to extend

[GST Council recommendation + Reasons to be recorded in writing + Extension Notification]
Provided that the Commissioner may, on the recommendations of the Council and for reasons to be recorded
in writing, by notification, extend the time limit for furnishing the annual return for such class of registered
persons as may be specified therein.
Extension by State Commissioner / UT Commissioner = Deemed extension by CGST Commissioner
Provided further that any extension of time limit notified by the Commissioner of State tax or the
Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.
(2) RP liable to GST Audit u/Sec 35: Filing of Annual Return: Attach copy of (Audited Accounts) + Reconciliation
Statement
8 Sec 148 (Special procedures for certain RP) – N/N 47/2019-CT (dated 9th Oct, 2019) – further amended by N/N 77/2020-CT dated 15th Oct, 2020
N/N 47/2019-CT (as amended from time to time)
RP with ATO upto 2 crores – Filing of AR for FY 2017-18, 2018-19 & 2019-20 shall be OPTIONAL.
In case such person opts for non-filing of annual return and therefore does not furnish such return by due date, then such return shall be
deemed to have been furnished on due date.
Author: The relaxation granted from filing of Annual Returns due u/Sec 44 (1), also extends to FORM -9A (Annual Return of Composition Supplier).

Every registered person who is required to get shall furnish, electronically, the annual return under sub-
his accounts audited in accordance with the section (1)
provisions of Section 35(5) along with
 a copy of the Audited Annual Accounts and
 a RECONCILIATION STATEMENT in FORM
GSTR-9C, reconciling the value of supplies declared
in the return furnished for the financial year with
the audited annual financial statement, and such
other particulars as may be prescribed.
[as substituted by FA, 2021 (w.e.f. 1st Aug, 2021)]
RP (to file Annual Return – [Time Limit + Form + manner to be prescribed by rules]
Every registered person, shall furnish an ANNUAL RETURN
other than which may include a SELF- CERTIFIED reconciliation
 an Input Service Distributor, statement,
 a person paying tax under section 51 or reconciling
section 52, (i.e., tax deductor and tax collector) the value of supplies with the audited annual
 a casual taxable person* and declared in the return financial statement for
furnished for the financial every financial year
 a non-resident taxable person,
year, electronically,
within such time and in such form and in such manner as may
be prescribed.
Relevant Rule = Rule 80 (also newly formed- w.e.f 1st Aug, 2021)
 Due date = 31st Dec (following end of such FY)
 Form = GSTR-9 (for normal supplier) and GSTR-9A (for composition supplier)
 RP [ATO (FY) > 5 cr)]- then return shall be accompanied with self-certified reconciliation statement
Exception-1: Commissioner empowered to exempt filing of AR for any class of RP (if so recommended by GSTC)
Provided that
the Commissioner may, by notification,
on the recommendations of the Council, exempt any class of registered persons from filing annual
return under this section.
N/N 31/2021- CT Dated: 30th July, 2021 Issued in exercise of powers given u/first proviso to Sec 44
FY 2020-21: RP whose ATO in FY 2020-21 is upto ₹ 2 cores exempted from filing AR for the FY 2020-21.
Exception-2: AR is not required to be filed by Department of CG/SG and Local Authority- if books of accounts
are audited by CAG or Auditor of Local Authority
Provided further that

nothing contained in this section shall apply to any department of the Central Government or a State
Government or a local authority, whose books of accounts
are subject to audit by
 the Comptroller and Auditor-General of India or
 an auditor appointed for auditing the accounts of local
authorities under any law for the time being in force.

Rule 80 : Annual return
(1) Form of Annual Return (u/Sec 44): GSTR-9 for Normal Supplier and GSTR-9A for Composition Supplier
Every RP, other than an ISD, a person paying tax under section 51 or section 52, a casual TP and a NRTP, shall furnish
an ANNUAL RETURN as specified under section 44(1)
 electronically
 in FORM GSTR-9
 through the common portal either directly or through a Facilitation Centre notified by the Commissioner:
Provided that
 a person paying tax under section 10 (i.e.. Composition Supplier) shall furnish the annual return in FORM GSTR-9A.
(2) Form of Annual Statement (by ECO u/Sec 52): GSTR-9B

Every ECO required to collect tax at source under section 52 shall furnish ANNUAL STATEMENT referred to in Sec
52(5) in FORM GSTR -9B.
(3) Threshold for GST Audit is 2 crores (i.e., GST audit required if ATO > 2 crores)
Every RP [other than those referred to in the proviso to section 35 (5)] whose ATO during a financial year exceeds
₹ 2 crore shall get his accounts audited as specified under Sec 35 (5)
and he shall furnish
 a copy of AUDITED ANNUAL ACCOUNTS and
 A RECONCILIATION STATEMENT, duly certified, in FORM GSTR-9C,
electronically through the common portal either directly or through a Facilitation Centre notified by the
Commissioner.
FY 2018-19 & 2019-20: Threshold for GST Audit is 5 crores (i.e., GST audit required if ATO > 5 crores)
Provided that
 For the FY 2018-19 and FY 2019-20,
every RP whose ATO exceeds ₹ 5 crore 9
 shall get his accounts audited as specified under Sec 35 (5)
and he shall furnish
 a copy of AUDITED ANNUAL ACCOUNTS and
 A RECONCILIATION STATEMENT, duly certified, In FORM GSTR-9C for the said FY,
electronically through the common portal either directly or through a facilitation centre notified by the
commissioner.
[as substituted by N/N 30/2021-CT (w.e.f. 1st Aug, 2021)]
(1) Form of ANNUAL RETURN (u/Sec 44): GSTR-9 for Normal Supplier and GSTR-9A for Composition Supplier
Every RP, shall furnish an ANNUAL RETURN for every financial

other than year as specified under section 44(1)
those referred to in the second proviso to Sec 44 ., 10  electronically
an ISD,  in FORM GSTR-9
a person paying tax under section 51 or section 52,  on or before the 31st Dec following the end of
a casual TP and a NRTP, such financial year
through the common portal either directly or through a
Facilitation Centre notified by the Commissioner:
Provided that
a person paying tax under section 10 shall furnish the annual return in FORM GSTR-9A.
(i.e.. Composition Supplier)
9 Decided to focus on RP with ATO > 5 Crores: (Taxpayers with ATO more than ₹. 5 crores would invariably account for more than 93-
95% of the revenue)
10 RP referred to in second proviso to Sec 44 : Department of CG/SG or LA – whose books of accounts are already subject to audit by
C&AG or auditor appointed by LA under law *

(2) Form of ANNUAL STATEMENT (by ECO u/Sec 52): GSTR-9B
Every ECO (electronic commerce operator) required to collect shall furnish ANNUAL STATEMENT referred to in Sec
tax at source under section 52 52(5) in FORM GSTR -9B.
(3) RP required to file AR: If (ATO FY > 5 crore), then Self-Certified Reconciliation Statement to be furnished along with
the Annual Return
Every RP, shall also furnish
other than  A SELF-CERTIFIED Reconciliation Statement as
those referred to in the second proviso to Sec 44 ., specified under section 44 in FORM GSTR-9C
an ISD, along with the annual return referred to in sub-
rule (1),
a person paying tax under section 51 or section 52,
 on or before the 31st Dec following the end
a casual TP and a NRTP,
of such financial year
whose ATO during a financial year exceeds ₹ 5 crore , electronically through the common portal either directly
or through a Facilitation Centre notified by the
Commissioner:

GST Volume-2 Amendment
1 : PLACE OF SUPPLY
1. Supply of MRO (Maintenance, Repair and Overhaul) Services in respect of (SHIPS/ OTHER VESSELS) (+ their
engines and other components or parts): Notified u/Sec 13(13) – PoS shall now be LOCATION OF RECIPIENT OF
SERVICE (as against place of performance) – [Notification issued in exercise of powers given by Sec 13(13) – amended and
made effective from 2nd June, 2021]

Sec 13 (13) notification amended i.r.o MRO (maintenance, repair and overhaul) Services in respect of [SHIPS/
OTHER VESSELS + their engines/ components /parts]
 MRO services in respect of [SHIPS/ OTHER VESSELS + their engines/ components /parts]:: PoS = LoR
o Supply by Indian MRO Services supplier to Foreign recipient: Eligible for zero-rating – GST free
o Supply by Foreign MRO Services supplier to Indian recipient: GST chargeable (with RCM)

MRO INDUSTRY – supply of services in respect of [SHIPS/ OTHER VESSELS + their engines/ components /parts]
MRO (maintenance, repair and overhaul) Services in respect of [SHIPS/ OTHER VESSELS + their engine / components /parts]


Supplier Recipient Situation PoS as per existing provisions PoS as per new provisions
Indian Foreign Foreign recipient does Determination of POS Determination of POS
Supplier Recipient not send ‘Ship/ Other Sec Sec 13 Sec Sec 13
(supplying Vessel or its engine/
(Foreign Sub-Sec Sec 13 (3) (a) = Location Sub-Sec Sec 13 (13) = Location of
MRO components/ part’
Services) Shipping where services are recipient
Entity) Rather, technicians sent actually performed
outside for providing PoS Outside India PoS Outside India
MRO services there Nature of Inter-State Supply Nature of Inter-State Supply
(This is theoretical) Supply [Sec 7(5)(a)] Supply [Sec 7(5)(a)]
Export Export of Service Export Export of Service
status [Sec 2(6)- fulfilled] status [Sec 2(6)- fulfilled]
Zero- Yes Zero- Yes
rating [Sec 16] rating [Sec 16]
Crux: There is change in determination of

POS, only. There is no change in the
consequent treatment of the transaction.
PoS as per existing provisions PoS as per new provisions
Foreign recipient sends Determination of POS Determination of POS

‘Ship/ Other Vessel or its Sec Sec 13 Sec Sec 13
engine/ components/ part’ Sub-Sec Sec 13 (3) (a) = Location Sub-Sec Sec 13 (13) = Location of
Exclusively for purposes where services are recipient
of repair actually performed 11
- Which post -repair Sec 13 (2) = LoR
PoS Outside India PoS Outside India
are sent back
Nature of Inter-State Supply Nature of Inter-State Supply
(This is quite uncommon) Supply [Sec 7(5)(a)] Supply [Sec 7(5)(a)]
Export Export of Service Export Export of Service
status (as PoS is in India) status [Sec 2(6)- fulfilled]
[Sec 2(6)- fulfilled]
Zero- Yes Zero- Yes
rating [Sec 16] rating [Sec 16]
Crux: There is change in determination of
POS, only. There is no change in the
consequent treatment of the transaction.
11 Kindly Note:
Sec 13(3) of IGST Act
(3) The POS of the following services shall be the location where the services are actually performed, namely:—
(a) services supplied in respect of goods which are required to be made physically available by the recipient of services to
the supplier of services, or to a person acting on behalf of the supplier of services in order to provide the services:
Provided that when such services are provided from a remote location by way of electronic means, the place of supply shall be
the location where goods are situated at the time of supply of services:
Provided further that nothing contained in this clause shall apply in the case of services supplied in respect of goods which
are temporarily imported into India for repairs or for any other treatment or process and are exported after such repairs
or treatment or process without being put to any use in India, other than that which is required for such repairs or treatment or
process; (in such cases, PoS shall be as per Sec 13(2) – PoS = Location of Recipient)
Author:
Situation Applicability of IInd Determination of POS
proviso to Sec 13(3)(a)
1. When Foreign ships/ vessels come to India exclusively for repairs and go back Applicable PoS as per Sec 13(2)
without being put to any use in India. = LoR = Outside India
2. When Foreign ships/ vessels do not come to India exclusively for the purpose of Not applicable PoS as per Sec 13(3)(a)
repair. They use the window between transportation of goods for seeking repair = Place of performance = In India
services. They may carry cargo within and out of India after repairs.

PoS as per existing provisions PoS as per new provisions
Foreign recipient is not Determination of POS Determination of POS

sending ‘Ship/ Other Sec Sec 13 Sec Sec 13
Vessel or its engine/ Sub-Sec Sec 13 (3) (a) = Location Sub-Sec Sec 13 (13) = Location of
components/ part’ where services are recipient
exclusively for repairs actually performed
Rather, they are using the PoS In India PoS Outside India
window between Nature of Inter-State Supply Nature of Inter-State Supply
transportation of goods Supply [Sec 7(5)(c)] Supply [Sec 7(5)(a)]
for seeking repair Export Not Export of Service Export Export of Service
services. They may carry status (as PoS is in India) status [Sec 2(6)- fulfilled]
cargo within and out of Zero- No Zero- Yes
India after repairs. rating [Sec 16] rating [Sec 16]
Crux: With change in determination of
POS, the consequent treatment of the
transaction has also changed.
Domestic MRO Sr Entity can now
affect such supply without payment
of IGST (i.e., under Bond/ LuT)
43rd Meeting of GST Council

It was decided to make following changes:.
 GST rate on MRO Services – changed from 18% (with full ITC) to 5% (with full ITC)
 PoS of MRO Services – changed from Sec 13(3)(a) to Sec 13(13) (= Location of Recipient)
[Notification 04/2019-IT has been amended to that effect. (Sl. No. 3 inserted) - see below]
Notification amended (adding another entry)

N/N 04/2019-IT (dated 30th Sep, 2019)
Sl No. Description of services or circumstances Place of Supply
(1) (2) (3)
[inserted by N/N 02/2020-IT (dated 26th March, 2020) – Made effective from 1st April, 2020]
1. Supply of Maintenance, repair or overhaul [MRO] services in respect The place of supply of services shall be the location
of of the recipient of services
 Aircrafts
 Aircrafts engines and other aircrafts components or parts
supplied to a person for use in the course or furtherance of
business
[inserted by N/N 03/2021-IT (dated 2 JUNE, 2021) – Made effective from 2ND JUNE, 2021]
2. Supply of Maintenance, repair or overhaul [MRO] services in respect The place of supply of services shall be the location
of of the recipient of services
 Ships and other Vessels
 Their engines and other components or parts
supplied to a person for use in the course or furtherance of
business

MRO INDUSTRY – supply of services in respect of [SHIPS/ OTHER VESSELS + their engines/ components /parts]

Analysis
Indian Indian ‘Ship/ Other Vessel or
Determination of POS Determination of POS
Supplier Recipient its engine/ components/
Sec Sec 12 Sec Sec 12
(supplying (Domestic part’ made available
MRO for MRO Sub-Sec Sec 12 (2) = Location of Sub-Sec Sec 12 (2) = Location of
Shipping
Services) recipient recipient
Entity)
PoS In India PoS In India
Nature of Intra-State Supply or Inter- Nature of Intra-State Supply or Inter-
Supply State Supply Supply State Supply
[Sec 8(2) or 7(3)] [Sec 8(2) or 7(3)]
GST liab Yes GST liab Yes
[IGST or (CGST + SGST)] [IGST or (CGST + SGST)]
Crux: No change
Foreign Indian Indian recipient is not
Determination of POS Determination of POS
Supplier Recipient sending ‘Ship/ Other
Sec Sec 13 Sec Sec 13
(supplying (Domestic Vessel or its engine/
MRO components/ part’ Sub-Sec Sec 13 (3) (a) = Location Sub-Sec Sec 13 (13) = Location of
Shipping
Services) where services are actually recipient
Entity) exclusively for repairs
performed
Rather, they are using
PoS Outside India PoS In India
the window between
Nature of Neither Intra-State Supply Nature of Inter-State Supply
transportation of
Supply nor Inter-State Supply Supply [Sec 7(4)]
goods for seeking [Not covered by Sec 8 or Sec 7]
repair services. GST liab Yes [IGST Liability]
GST liab No Liability Import Yes
Import Not status [Sec 2 (11)- fulfilled]
status [Sec 2(11)- not fulfilled] RCM Yes
RCM N.A. [Indian recipient liable to pay GST]
Crux: Transaction which are earlier non-taxable

has now become taxable. It is now getting
qualified as ‘import of service’ and thus,
attracting RCM also. (It is entitled to avail ITC in
compliance with ITC provisions)

2 : REFUNDS
1. Rule 90 (Refund Acknowledgment) amended (a) to provide EXCLUSION of the Time Period between Filing of
Original Refund Application to Issuance of Deficiency Memo for Computation of Time for Filing Refund u/Sec
54(1) AND (b) to incorporate provisions enabling refund applicant to withdraw his refund application (where
no action, other than acknowledgement, has been taken to such refund application [Proviso to Rule 90 (3) inserted –
by N/N 15/2021-CT (w.e.f. 18th May, 2021) + sub-rules (5) and (6) inserted in Rule 90 – by N/N 15/2021-CT (w.e.f. 18th May, 2021)]
Simplified version of amendment

 Proviso to Rule 90 (3) INSERTED: To avoid fresh refund application being hit by time limitation, now it has been provided
that Time limitation for submission of FRESH REFUND APPLICATION will exclude the time period ‘from date of submission
of Original Refund Application till date of communication of deficiency therein
Amendment: As per Rule 90 (3) of CGST Rules, in case any deficiencies were noticed in the refund application, the PO should
communicate the same to the applicant in FORM GST RFD-03 through the common portal. It also provides that in such case, the
applicant would be required to file FRESH REFUND APPLICATION for refund after rectification of such deficiencies. [*Accordingly, system
had been designed in such a way that on issuance of deficiency memo in FORM GST RFD-03 in respect of any refund application, any amount debited
from the e-credit ledger/e-cash ledger at the time of filing refund application, gets re-credited to the respective ledger requiring the taxpayer to debit
the amount again while filing a fresh refund application after correction of deficiencies]. The fresh refund application, filed post rectification
of deficiencies, after stipulated period of 2 years from the relevant date, was rejected by the PO on the grounds of time bar.
The taxpayers feel aggrieved in such cases as they would not be able to get any relief from the Appellate authority, as the provisions
of Law and Rules were clear that any claim filed after rectification of deficiencies was treated as a fresh refund claim and the time bar
aspect for such claims had to be ascertained in terms of section 54 (1) of CGST Act 2017.
Above provision is harsh and relief has been sought by taxpayers in this regard (particularly in cases where time is taken by PO
is issuing deficiency memo or where wrong issuance of deficiency memo by PO) as it results into subsequent FRESH REFUND CLAIM
becoming time barred due to time limitation specified in Sec 54 (1).
To take care of above problem, proviso has been inserted providing that the time period from the date of filing of original refund claim
to the date of issuance of Deficiency Memo in FORM GST RFD-03 SHALL NOT be taken into consideration and be excluded for the
purpose of computation of time period of 2 years as provided in Sec 54(1) of CGST Act, 2017, in respect of any fresh refund claim filed
after rectification of deficiencies.
Refund Application and processing Pre-Amendment Post-Amendment

1. Tax Period = [June, 2019]
Excess GST paid (say, 20 Lakh)
2. Refund Applied for 12 July, 2021 12 July, 2021
[Within limitation period of 2 years from [Within limitation period of 2 years from
Relevant Date (2 years from date of Relevant Date (2 years from date of payment of
payment of tax = 2 years from 20th July, tax = 2 years from 20th July, 2019) = 20 July,
2019) = 20 July, 2021] 2021]
3. Deficiency Order 21 July , 2021 21 July , 2021
[Within 15 days of submission of R/A] [Within 15 days of submission of R/A]
4. Fresh Refund Application 28 July , 2021 28 July , 2021
This is time barred This is Not time barred
[as beyond time limitation specified in Sec [as new applicable time limitation = Original
54(1) – i.e. 20 June, 2021] time limitation + Excluded period = 20 July 2021
+ Excluded period (from 12 July, 2021 till 21 July,
2021 = 10 days) = 30th July, 2021]
 Sub-rules (5) & (6) to Rule 90 INSERTED (to incorporate provisions enabling refund applicant to withdraw his refund application
(where no action, other than acknowledgement, has been taken to such refund application): Submission of Defective/ Deficient
Refund Application (by mistake)- Applicant can now withdraw such application (by submitting WITHDRAWAL
APPLICATION over portal)
Amendment: It may happen that applicant made mistakes in refund application submitted by him. There is no functionality available
on portal which allows applicant to correct mistakes in the refund application already submitted. Such defective application is liable
to rejection at end of PO. Post rejection, what applicant shall do? Logical answer will be he shall submit FRESH APPLICATION (free of
mistakes). However, the portal does not allow filing the refund application again, for the same tax period, even after correcting
such a mistake. Thus, the only resort available with the taxpayer is such cases is to file an appeal against the rejection. However, the
appeal route is more tedious and time consuming.
As a relief measure, it has been decided to provide FACILITY OF WITHDRAWAL OF SUCH REFUND APPLICATION.
Rule 90 (5)  Applicant can withdraw refund application.
 Withdrawal application [Form GST RFD-01 W] shall be submitted over portal.
 Withdrawal application can be submitted any time post-submission of refund application. However, withdrawal
is not allowed if any of following actions have been taken on refund application --
 Provisional Refund Sanction Order [Form GST RFD-04] has been passed by PO; or
 Final Refund Sanction Order [Form GST RFD-06] has been passed by PO; or
 Payment Order [Form GST RFD-05] has been passed by PO; or
 Refund Withheld Order [Form GST RFD-07] has been passed by PO;
 Rejection Notice [Form GST RFD-08] has been issued by PO;
Rule 90 (6)  On submission of withdrawal application, , any amount debited from the e-credit ledger/e-cash ledger at
the time of filing refund application, shall be re-credited to the respective ledger.

Rule 90 : Acknowledgement
(1) Refund Application for refund from E-Cash ledger: immediate Online Acknowledgement in Form GST RFD-02
Where the application relates an ACKNOWLEDGEMENT in FORM GST RFD-02 shall be made available to
to a claim for refund from the the applicant through the common portal electronically,
electronic cash ledger,  clearly indicating the date of filing of the claim for refund and
 the time period specified in section 54 (7) shall be counted from such
date of filing.
(2) Refund Application (other than refund from E-Cash ledger): PO to scrutinize application within 15 days + if found
complete, then Online Acknowledgement in Form GST RFD-02
The application for refund, shall be forwarded to the PO who shall, within a period of fifteen days [15 D] of
other than claim for refund from filing of the said application, scrutinize the application for its completeness
electronic cash ledger, and
where the application is found to be complete in terms of rule 89
 (2) [89(2)= Requirement to attach documentary evidences]
 (3) [89(3)= Requirement to debit e-credit ledger in case of ‘ITC refund application] and
 (4) [89(4)= ITC refund i.r.o. 0-rated supply made under Bond/ LuT]
an ACKNOWLEDGEMENT in FORM GST RFD-02 shall be made available to
the applicant through the common portal electronically,
 clearly indicating the date of filing of the claim for refund and
 the time period specified in section 54 (7) shall be counted from such
date of filing.
(3) PO finding deficiencies in refund application – Deficiency shall be communicated in Form GST RFD-03
Applicant to file FRESH REFUND APPLICATION (rectifying deficiencies)
Where any deficiencies are the PO shall communicate the deficiencies to the applicant in FORM GST
noticed, RFD-03 through the common portal electronically,
 requiring him to file a FRESH REFUND APPLICATION after
rectification of such deficiencies.
[R-93 (1)= Amount debited from EcrL at time of refund application – shall be re-credired to ECrL]
[inserted by N/N 15/2021-CT (dated 18th May, 2021)]

Time-limit for Filing Fresh Refund Application: (Period from filing initial application till communication of
deficiency) shall be EXCLUDED
Provided that
the time period, from the date of filing of the refund claim shall be EXCLUDED from the
in FORM GST RFD-01 period of two years[2 Y] as specified
till the date of communication of the under Section 54 (1), in respect of
deficiencies in FORM GST RFD-03 by the PO, any such FRESH REFUND CLAIM
filed by the applicant after
rectification of the deficiencies.
(4) Deficiencies communicated under SGST Rules, 2017: Deemed Communication under CGST Rules, 2017
Where deficiencies have been  the same shall also deemed to have been communicated
communicated in FORM GST RFD-03 under the under this rule along with the deficiencies communicated
SGST Rules, 2017, under rule 90(3).
[Inserted by N/N 15/2021-CT (dated 18th May, 2021)]

(5) Refund applicant may WITHDRAW refund application
The at any time before issuance of WITHDRAW the said
applicant application for refund by filing
 provisional refund sanction order in FORM GST RFD-04 or
may, an application in FORM GST

 final refund sanction order in FORM GST RFD-06 or RFD-01W.

 payment order in FORM GST RFD-05 or
 refund withhold order in FORM GST RFD-07 or
 notice in FORM GST RFD-08,
in respect of any refund application filed in FORM GST RFD-01,
(6) Submission of Withdrawal Application: Amount earlier debited in ECL / ECrL shall be credited back to ECL/ ECrL
On submission of application for withdrawal of refund in FORM GST RFD-01W,
any amount debited by the applicant from Electronic Credit  shall be CREDITED BACK to the
Ledger [ECrL] or Electronic Cash Ledger [ECL], as the case may be, ledger from which such debit was
while filing application for refund in FORM GST RFD-01, made.
2. Rule 92 (Order Sanctioning Refund) amended to provide for withholding of refund, release of withheld refund
and notifying Forms thereof [ proviso omitted in Rule 92 (1) + proviso inserted in Rule 92 (2) + Consequential amendment in
Rule 96 – by N/N 15/2021-CT (w.e.f. 18th May, 2021) ]
Simplified version of amendment

 Proviso to Rule 92(1) OMITTED (it was requiring passing of refund order in Form GST RFD-07 (Part A) in cases involving full
adjustment of refund against outstanding demand): Refund Order shall be passed in GST RFD-06 in all cases (whether involving
partial or full adjustment of o/s demand)
Amendment: As per Rule 92(1) of CGST Rules, GST refund order is passed in Form GST RFD-06. However, proviso to Rule 92(1) makes
an exception by providing that refund order shall be issued in Form GST RFD 07 (Part A) when refund amount is completely adjusted
any outstanding demand whether under GST law or existing laws.
The existing proviso has been omitted and thus, now onwards, both partial and complete adjustment of refund against any outstanding
demand should be carried out in FORM GST RFD-06.
Refund Order Pre-Amendment Post-Amendment

1. Refund Sanctioned - no o/s demand against Order GST RFD-06 . Order GST RFD-06 .
applicant – no adjustment involved R-92 (1) R-92 (1)
2. Refund Sanctioned - o/s demand against applicant Order GST RFD-06 . Order GST RFD-06 .
–adjustment involved – Refund partially adjusted R-92 (1) R-92 (1)
3. Refund Sanctioned - o/s demand against applicant Order GST RFD-07 . Order GST RFD-06 .
–adjustment involved – Refund fully adjusted R-92 (1) Part-A R-92 (1)
(proviso)
Proviso to R-92 (1) has been omitted
Logic of Amendment: In actual practice (in field as well over system/portal), even in cases involving full refund adjustment, Refund
Order was being issued in Form GST RFD-06.
Though it was not as per the law but since it was working without any operational difficulties, it has been decided to amend the law in
line with prevailing practice. Hence, proviso to Rule 92(1) omitted.
Thus, now onwards, both partial and complete adjustment of refund against any outstanding demand should be carried out in FORM
GST RFD-06, rather than having separate form (Part A of FORM GST RFD-07) for complete adjustment.
 Consequential Amendments in Form GST RFD-07

Amendment: FORM GST RFD-07 to be amended to provide that Part A thereof shall be for withholding and Part B for release of the
amount withheld.

GST RFD-07 . Pre-Amendment Post-Amendment

It is used in cases of Refund involving Full Now, onwards it will be used for
GST RFD-07 . Part-A
Adjustment. WITHOLDING REFUND
 Refund Sanctioned - o/s demand against applicant
–adjustment involved – Refund fully adjusted
It is used in cases of Refund is withheld as per law. Now, onwards it will be used for RELEASE
GST RFD-07 . Part-B
OF Refund Withhold.
 Proviso to Rule 92 (2) INSERTED (it is requiring passing of order for Release of Withheld Refund in Form GST RFD-07 (Part
B): Provisions as to passing of release order were absent in GST law- now introduced for first time.
Amendment: Rule 92 (2) provides for passing of Refund Withholding Order in Form GST RFD-07 (Part B). But there was no provision as
to passing of ‘Release of Withheld refund’.
Proviso to Rule 92(2) has been inserted for providing for such release order.
Situation Pre-Amendment Post-Amendment
1. Withhold of Refund Order GST RFD-07. Order GST RFD-07.
[in situations mentioned in Sec 54(10) and 54 (11)] R-92 (2) Part-B R-92 (1) Part-A .
2. Release of Refund Withheld No provision as to issuance of Order GST RFD-07.
Release Order R-92 (2) Part- B .
(Proviso)
Proviso to R-92 (2) has been inserted
 Consequential Amendments have been made in Rule 96 (Refund of IGST Paid on Export of Goods / Services)
Rule 92 : Order Sanctioning Refund

(1) Refund (Due and Payable to the Applicant: [Refund Oder (RO- GST RFD-06) + with Details of Adjustment on
account of (1) Provisional refund (if any) and (2) Outstanding Demand under GST / old law]
Where, upon examination of the application, he shall make AN ORDER in FORM GST RFD-06 sanctioning
the PO is satisfied that a refund u/Sec 54(5) the amount of refund to which the applicant is entitled,
is due and payable to the applicant, mentioning therein
 the amount, if any, refunded to him on a provisional basis
u/Sec 54 (6),
 amount adjusted against any outstanding demand
under the Act or under any existing law and
 the balance amount refundable:
[omitted by N/N 15/2021-CT (dated 18th May, 2021)]

Amount refundable adjusted in full against outstanding demand (under GST/ Old Laws) = Refund Order
shall be issued in Form GST RFD-07
Provided that
in cases where the amount of refund is COMPLETELY an ORDER giving details of the
ADJUSTED against any outstanding demand under the Act adjustment shall be issued in Part A
or under any existing law, of FORM GST RFD-07.
Author:
Refund Claim (in case of ZERO-RATED SUPPLY + DEEMED EXPORT)
Refund Order shall be passed in Form GST RFD-06
[A] Amount Refundable XXXXXX
[B] Less: Provisional refund (if already made) as per Sec 54(6) XXXXXX
[C] Less: Refund adjustment against outstanding demand as per Sec 79 XXXXXX
(Demand under GST law or an existing/old law) [WN-1]
[D] Net amount refundable to applicant XXXXXX
[WN-1]: If entire refund is adjusted against the outstanding demand, then refund order (giving details of such
adjustment) shall be issued in Form GST RFD-07 (Part A).

(1A) Refund Admissible in favour of Applicant (other than of zero-rated supply and deemed export supply): [Refund
Oder (RO- GST RFD-06) + specify amount REFUNDABLE IN CASH]
Where, upon examination of the application of he shall make AN ORDER in FORM GST RFD-06
refund of any amount paid as tax other than the sanctioning the amount proportionate to
refund of tax paid on zero-rated supplies or of REFUND TO BE PAID the amount debited in cash
deemed export, IN CASH, against
the PO is satisfied that a refund u/Sec the total amount paid for
54(5) is due and payable to the applicant, discharging tax liability for
the relevant period,
mentioning therein
 the amount adjusted against any outstanding demand
under the Act or under any existing law and
 THE BALANCE AMOUNT REFUNDABLE
and
for the REMAINING AMOUNT which has been debited from
the e-credit ledger for making payment of such tax,
 the PO shall issue FORM GST PMT-03 re-crediting the said
amount as ITC in e-credit ledger.
Author:
Refund Claim (in case other than refund of tax paid on ZERO-RATED SUPPLY + DEEMED EXPORT)
Refund Order shall be passed in Form GST RFD-06
[A] Amount Refundable in CASH (proportionate to the amount paid in cash) XXXXXX
Total Amount * Amount debited in e-cash ledger (during relevant period)
refundable Total amount paid for discharging tax liability (during relevant period)
[B] Less: Provisional refund (if already made) as per Sec 54(6) XXXXXX
[C] Less: Refund adjustment against outstanding demand as per Sec 79 XXXXXX
(Demand under GST law or an existing/old law) [WN-1]
[D] Net amount refundable to applicant in CASH XXXXXX
[WN-1]: For remaining amount of refund (the amount which was paid by way of debit to E-credit ledger) – PO shall
re-credit that to E-credit Ledger. For that purpose, PO shall issue FORM GST PMT-03.
(2) Withholding of refund as per Sec 54(10) and (11): Withholding Order shall be passed [Form GST RED-07 (Part A)]
Where the PO or the Commissioner he shall pass AN ORDER
is of the opinion that the amount of refund is liable in Part B Part A 12
of FORM GST RFD- 07
to be withheld under the provisions of
informing him the reasons for withholding of such
 Sec 54 (10) or, as the case may be, refund.
 Section 54 (11),
[inserted by N/N 15/2021-CT (dated 18th May, 2021)]
Refunds withhold – Subsequent release shall be made by passing ORDER [Form GST RFD-07 (Part B)]
Provided that
Where the PO or the Commissioner is satisfied that the he may an ORDER for RELEASE OF
refund is no longer liable to be withheld, withheld refund
in Part B of FORM GST RFD-07.
(3) Inadmissible Refund: PO to reject refund by passing Rejection Order (by prior to that Notice seeking
applicant’s reply shall be issued)
(4) Refund Ordered for refund to Applicant: [Refund Oder (RO) + Payment Order (PO) in favour of Applicant]
Refund Order passed in 1 year, but actual refund not disbursed in same FY: Payment Order to be revalidated
(4A) Disbursement of refund by CG: based on Consolidated Payment Advice
(5) Refund Ordered for credit to CWF: [Refund Oder (RO) + Payment Order (PO) in favour of CWF]
12
Substituted by N/N 15/2021-CT (dated 18 May, 2021)

Rule 96 : Refund of integrated tax paid on GOODS or SERVICES exported out of India
Exporter of Goods: IGST refund by Customs Officer (no separate refund application is required)
(1) Shipping Bill / Bill of export = Gets status of R/A automatically when [‘Departure Manifest or EGM/ER filed
by PIC of conveyance’ and ‘GSTR-3B is filed by the applicant exporter’]
The shipping bill / bill of export filed by an exporter of goods shall be deemed to be an application for refund of
IGST paid on the goods* exported out of India
and such application shall be deemed to have been filed only when:-
(a) the person in charge of the duly files a Departure Manifest 13/Export Manifest or an Export Report
conveyance carrying the export goods covering the number and the date of shipping bills or bills of export
and
(b) the applicant has furnished a valid return in FORM GSTR-3B
(2) Transmission of details of EXPORT INVOICES (details furnished in FORM GSTR-1): From GST Portal to Customs
Portal (Customs Portal will send confirmation to GST Portal as to actual export materialized)
(3) Valid return GSTR-3B (tax paid) filed by Exporter – Information transmission to Customs Portal – Customs
Portal / Customs Officer will process refund claim. (IGST refund disbursement – direct credit to bank account of applicant)
(4) Customs Officer can withheld IGST refund
The claim for refund shall be withheld where,-
Request received from jurisdictional GST Commissioner (as per PO (Customs) finds that goods exported in
provisions of sec 54(10) & (11)) violation of Customs Act, 1962
(a) a request has been received from the jurisdictional (b) the PO of Customs determines
Commissioner of central tax, State tax or Union territory tax OR that the goods were exported in
to withhold the payment of refund due to the person violation of the provisions of the
claiming refund in accordance with the provisions of section 54 Customs Act, 1962.
(10) & (11);
96(5)
In case refund is withheld on request of jurisdictional GST
Commissioner, PO (IGST) at Customs Station shall
 intimate the applicant and the jurisdictional
Commissioner of CGST/SGST or UTGST and
 a copy of such intimation shall be transmitted to the common portal.
96(6)
Upon transmission of withholding intimation to GST Portal,
PO (CGST / SGST or UTGST), as the case may be, shall pass
WITHHOLDING ORDER
in Part B Part A 14 of FORM GST RFD-07.
96(7)
If subsequently applicant becomes entitled to IGST refund,
concerned jurisdictional officer (CGST/ SGST or UTGST) , as the
case may be, shall proceed to refund the amount
after passing REFUND ORDER in FORM GST RFD-06.
by passing AN ORDER in FORM GST RFD-06
after passing an order for release of withheld refund in
Part B of FORM GST RFD-07 15
(8) Exports to Bhutan (IGST Paid): In respect of notified class of goods, Govt may refund this IGST to ‘Govt of
Nepal’ (instead of to ‘the exporter of goods’)
[*Author: No Notification issued – so, presently provisions not of any use]
Exporter of Services:
(9) Exporter of Services: [RA in Form GST RFD 01 shall be filed and dealt with as per Rule 89]
13
PIC of conveyance:: PIC of vessel/ aircraft: to file Departure Manifest/ EGM- export general manifest PIC of vehicle: to file ER- export report
14 Substituted by N/N 15/2021-CT (dated 18 May, 2021)
15 Substituted by N/N 15/2021-CT (dated 18 May, 2021)

3. Refund in terms of Sec 77 (refund of tax paid under wrong head): Rule 89 (1A) has been inserted providing that in
respect to ‘refund of WRONG TAX paid due to wrong determination of place of supply’, the refund can be claimed
before the expiry of 2 years from the date of payment of tax under the CORRECT HEAD (Also, since this N/N 35/2021 -
CT is dated 24-9-2021, those taxpayers who had paid the right type of tax before, can apply for refund of the wrong type of
tax paid within two years from 24-9-2021.) [Inserted by N/N 35/2021-CT (24 Sep, 2021) – Effective from 24 Sep, 2021]
Sec 77 (Refund of tax paid under wrong head) forms part of syllabus
However, refund related amendment made in Rule 89 [insertion of Rule 89 (1A)] has neither been covered
in ICAI Study Material nor in Statutory Updates. It seems an unintended omission.
Students are strictly advised to cover this amendment also

Section 77 : Tax wrongfully collected and paid to Central Government or State Government.
(1) CGST + SGST/UTGST paid instead of IGST: Refund of CGST+ SGST/UTGST paid incorrectly (refund application within 2
years from the date of payment of tax under correct head)16
A RP who has paid shall be granted refund of the amount of taxes so
- Central tax and State Tax [CGST + SGST] or, as the case may be, paid
- the central tax and the Union territory tax [CGST + UTGST] - in such manner and
on a supply considered by him to be an intra-State supply, - subject to such conditions
- but which is subsequently held to be an inter-State supply, as may be prescribed. [Rule 89(1A)]
Author:
Rule 89(1A) 17 Prescribed manner for claiming refund of ‘wrong tax paid’
Refund Application = Form GST RFD-01 to be submitted electronically.
Time limitation = 2 years from the date of payment of tax under the correct head.
In cases where right tax was paid before 24th Sep (i.e. date of introduction of Rule 89(1A), the limitation period of 2 years shall
be counted from the date Rule 89(1A) comes into effect (i.e. 24th Sep, 2021)
(2) IGST paid instead of CGST + SGST/UTGST: CGST + SGST/UTGST payable without INTEREST
A RP shall not be required to pay any interest on the
- who has paid Integrated Tax [IGST] amount of
on a supply considered by him to be an inter-State supply, - the Central tax and State tax [CGST + SGST] or, as the
- but which is subsequently held to be an intra-State case may be,
supply, - the Central tax and the Union territory tax [CGST + UTGST]
payable.
Clarification in respect of refund of tax wrongfully paid as specified in S. 77(1) of the CGST/SGST Act & S. 19(1) of the IGST Act
Consider following situation:
ABC = GST registered supplier
Jan, 20x1 = Supply made (V= 20L + GST@18%)
CGST@9% + SGST@9% charged and paid along with return filed on due date = 20th Feb, 20x1
During investigation/scrutiny in July, 20x3, it was discovered that ABC has wrongly classified supply of Jan month as ‘intra-state supply.
PO (by order) held that such supply was ‘inter-state supply’ liable to IGST liability@18%.
Action on part of RP Date of Payment Issue
Pay IGST Payment Date
(i.e. tax under correct head ) = 28th Aug, 20x3
Claim refund of ‘CGST + SGST Payment Date Applicable time limitation:
paid’ = 20th Feb, 20x1  2 years from Relevant date as provided in Sec 54. = 2 years from
(i.e. wrong tax paid) ‘Date of payment of tax’ – Sec 52(2)(h)
Payment of tax = ????
View-1 = Payment of tax paid under wrong head (R/D = 20th Feb,
20x1 – Refund application will be time barred)
16 Author: Impact on recipient of such supply: It is yet to be seen whether the ITC of incorrect tax head availed by bonafide recipient
can be questioned in such cases, where supplier pays correct tax type subsequently & claims refund of incorrect tax type.
17 Rule 89 (1A) (inserted by N/N 35/2021-CT (24 Sep, 2021) – Effective from 24 Sep, 2021)

View-2 = Payment of tax under correct head (R/D = 28th Aug, 20x2
– Refund application will be time barred)
Alternate view
 Applicable time limitation in such cases shall be as separately
prescribed in Rules. No such rule being made, such refund
admissible without any time limitation. [FAQ issued by CBIC – Ans to Q87
stated that ‘stipulation in Sec 54(1) that claims shall be filed within 2 years from
the relevant date, will not apply to refund under this category]
Resolution of issue:
Rule 89 (1A) inserted laying down that in such cases, relevant date shall be ‘date of payment of IGST – i.e. under the correct head’
Rule 89 : Application for refund of tax, interest, penalty, fees or any other amount
(1A) Refund Claim in respect of ‘Wrong tax paid due to wrong classification of supply as ‘intra-state’ which was
18 actually an ‘inter-state supply’’ :
Time period for filing refund = 2 years from the date of payment of IGST
Any person, may , before the expiry of a period of 2 years from
claiming refund under section 77 of the Act of any tax the date of payment of the tax on the inter-State
paid by him, in respect of a transaction considered by him supply,
to be an intra- State supply, which is subsequently held to file an application
be an inter-State supply, electronically
(i.e. CGST +SGST/UTGST paid considering supply as Intra-State, but in FORM GST RFD-01
actually supply was inter-state and IGST was payable)
through the common portal, either directly or through a
Facilitation Centre notified by the Commissioner.
Cases where IGST was paid before 24 Sep, 2021: Time limitation of 2 years shall be counted from 24 Sep, 2021
Provided that
the said application may, as regard to any payment of be filed before the expiry of a period of two years from
tax on inter-State supply before coming into force of this the date on which this sub-rule comes into force.
sub-rule,
18 Inserted Vide N/N 35/2021-CT (dated 24th Sep) – Effective from 24 Sep, 2021

3 : EXEMPTIONS UNDER GST
1. Exemption Notification 12/2017- CT (R): Entry No. 1, 9-D, 13, 74-A and 80 (Exemption to services by an Entity registered
u/Sec 12-AA of the Income Tax Act)- Presently due to amendment in Income Tax Act, 1961, in order to claim Income Tax
exemption u/Sec 10 and 11 of the Income Tax act, 1961, trust/institution has to register under 12AB of the Income Tax Act,
1961. Since, in order to claim income tax exemption u/Sec 10 and 11 of the Income Tax Act, 1961, trust/institution has to
register u/Sec 12AB of the Income Tax Act, 1961, the reference to Sec 12AA of the Income Tax Act in GST notification
has been replaced with “sec 12AA or sec 12 AB [E/N 12/2017-CT(R) amended by N/N 07/2021-CT(R) - (w.e.f. 1st Oct, 2021)]
Above amendment has neither been covered in ICAI Study Material nor in Statutory Updates. It seems
an unintended omission.
Students are advised to cover this amendment also.
Entry No. 1 (Charitable Entity (Registered u/Sec 12-AA or Sec 12-AB of Income Tax Act, 1961) – exemption to specified charitable
activities)
Services by an entity registered under section 12AA or Sec 12-AB of the Income-tax Act, 1961 by way of charitable activities*.
Entry No. 9-D. (Services by OLD AGE HOME run by Charitable Entity (Registered u/Sec 12-AA or Sec 12-AB of Income Tax Act, 1961)
or run by CG/SG - to residents (for consideration upto ₹ 25,000 per month))
Services
by an OLD AGE HOME run by
- CG, SG
- an entity registered under section 12AA or Sec 12-AB of the Income-tax Act, 1961.
to its residents
against consideration upto ₹ 25,000 per month per member, provided that the consideration charged is inclusive of charges
for boarding, lodging and maintenance.
Entry No. 13 (Renting of precincts of a religious place by certain entities) (Conduct of religious ceremony by any person)
Services by a person by way of—

(a) conduct of any RELIGIOUS CEREMONY;
(b) renting of precincts of A RELIGIOUS PLACE meant for general public, owned or managed by
 an entity registered as a charitable or religious trust u/Sec 12AA or Sec 12-AB of the Income-tax Act, 1961 or
 a trust or an institution registered u/ Sec 10 (23C)(v) or
 a body or an authority covered u/ Sec 10 (23BBA) of the said Income-tax Act (e.g.. Shree Vaishno Devi Shrine Board,
Katra, Shri Amarnath Ji Shrine Board)
.
Provided that nothing contained in entry (b) of this exemption shall apply to,—
(i) renting of ROOMS where charges are ₹ 1,000 or more per day;
(ii) renting of PREMISES, community halls, kalyanmandapam or open area, and the like where charges are ₹ 10,000
or more per day;
(iii) renting of SHOPS or other spaces for business or commerce where charges are ₹ 10,000 or more per month.
Entry No. 74-A (Services of Rehabilitation Professionals recognized under RCI Act, 1992 – at specified places)
Services provided
by Rehabilitation Professionals recognized under the Rehabilitation Council of India Act, 1992
by way of rehabilitation, therapy or counselling and such other activity as covered by the said Act
at medical establishments, educational institutions, rehabilitation centers established by CG, SG or UT or an
entity registered u/Sec 12-AA or Sec 12-AB of the Income tax Act, 1961.

Entry No. 80 (Training/ Coaching in Recreational activities – related to

(a) Arts / Culture (b) Sports by Charitable Entity (Registered u/Sec 12-AA or Sec 12-AB of Income Tax Act, 1961)
Services by way of training or coaching in recreational activities relating to—

(a) arts [e.g. painting, sculpture making] or culture [e.g. Dance, Music],
or
(b) sports [e.g. cricket, hockey, any sport] by charitable entities registered under section 12AA or Sec 12-AB of the Income-tax Act.
2. Exemption Notification 12/2017- CT (R): Entry No. 9-AA (Exemption to services provided by/ to FIFA (and its
subsidiaries) – related to Events under FIFA U-17 Women’s World Cup 2020)- Considering the factual situation as to its
postponement due to Corona issue, the words ‘whenever rescheduled’ has been added to the exemption entry. [E/N
12/2017-CT(R) amended by N/N 07/2021-CT(R) (w.e.f. 1st Oct, 2021) ]
Entry No. 9-AA (Services by/to FIFA (and its subsidiaries) – related to Events under FIFA U-17 Women’s World Cup 2020,
whenever rescheduled)
Services provided by and to Fédération Internationale de Football Association (FIFA) and its subsidiaries directly or indirectly
related to any of the events under FIFA U-17 Women’s World Cup 2020 to be hosted in India, whenever rescheduled.
Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to
any of the events under FIFA U-17 World Cup 2020.
Author:
India is going to host 7th edition of
FIFA under-17 Women‟s World Cup in
2021. (if Corona does not create any problem)
Govt of India has given guarantees to
FIFA including Guarantee relating to
Tax exemptions. Accordingly, Entry
No. 9-AA issued.
 Since the FIFA U-17 Women's
World Cup is postponed from 2020,
the words ‘whenever
rescheduled’ has been added.
3. Exemption Notification 12/2017- CT (R): Entry No. 9-AB inserted granting (Exemption to services provided by/ to AFC
(and its subsidiaries) – related to Events under AFC Women’s Asia Cup, 2022) [E/N 12/2017-CT(R) amended by N/N 07/2021-
CT(R) (w.e.f. 1st Oct, 2021)]
Entry No. 9-AB (Services by/to AFC (and its subsidiaries) – related to Events under AFC Women’s Asia Cup, 2022)
Services provided by and to Asian Football Confederation (AFC) and its subsidiaries directly or indirectly related to any of
the events under AFC Women’s Asia Cup, 2022 to be hosted in India.
Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to
any of the events under AFC Women’s Asia Cup, 2022.

4. Exemption Notification 12/2017- CT (R): Entry No. 82-B inserted granting (Exemption to services provided by way of
right to admission to the events organized under AFC Women’s Asia Cup, 2022) [E/N 12/2017-CT(R) amended by N/N 07/2021-
CT(R) (w.e.f. 1st Oct, 2021)]
Entry No. 82-B (Admission to AFC Women’s Asia Cup, 2022)
Services by way of right to admission to

 the events organized under AFC Women’s Asia Cup, 2022.
5. Exemption Notification 12/2017- CT (R): Entry No. 9-A and 9-B (Exemption to ‘Air Transportation of Export Goods’ and
‘Sea Transportation of Export Goods) – Exemption was valid upto 30th Sep, 2021 which has now been extended to 30th
Sep, 2022 [E/N 12/2017-CT(R) amended by N/N 07/2021-CT(R) (w.e.f. 1st Oct, 2021) ]
Entry No. 19-A & 19-B (Transportation of Export Goods19 – by air / sea) – Exempt till Sep 2022
Entry 19-A
Services by way of transportation of GOODS by an AIRCRAFT
 from customs station of clearance in India to a place outside India
Nothing contained in this serial number shall apply after 30th Sep, 2021. 30th Sep, 2022
Entry 19-B
Services by way of transportation of GOODS by an VESSEL
 from customs station of clearance in India to a place outside India
Nothing contained in this serial number shall apply after 30th Sep, 2021. 30th Sep, 2022
Author
The recipient of such service is exporter of goods who (in absence of this exemption) is entitled to claim ITC and refund thereof.
 This exemption was given as refund mechanism was not fully established. Initially, exemption was given up to 30.9.2018 and then
extended every year. Now, refund regime is fully established and thus, exemption can be withdrawn. However, in the present position
withdrawal of exemption may cause some disruptions for exports. Therefore, it was decided to continue with for another year.
6. Exemption Notification 12/2017- CT (R): Entry No. 43 (Leasing of ROLLING STOCK (wagons, coaches etc) by IRFC
(Indian Railway Finance Corporation) - to IR (Indian railways)) – Exemption withdrawn and hence, entry omitted [E/N
12/2017-CT(R) amended by N/N 07/2021-CT(R) (w.e.f. 1st Oct, 2021) ]
Entry No. 43 (Leasing of ROLLING STOCK (wagons, coaches etc) by IRFC (Indian railway finance Corporation) - to IR(Indian railways))
Services of leasing of assets (rolling stock assets* including wagons, coaches, locos)
by the Indian Railway Finance Corporation
by Indian Railway
* Rolling Stock: The term rolling stock in rail transport industry originally referred to any vehicles that move on a railway.
19
PoS of Export Freight: It shall be noted that w.e.f. 1st Feb, 2019, as per sec 12(8) of IGST Act, PoS of export goods is destination of goods viz. outside India.
However, still transaction fails to qualify as ‘export of serive’ where payment is not received in forex. Hence, for the time being, export
freight has been separately exempted.

7. Exemption Notification 12/2017- CT (R): Entry No. 61-A inserted granting exemption to (Services by way of granting
National Permit to a goods carriage to operate through-out India / contiguous States) [E/N 12/2017-CT(R) amended by N/N
07/2021-CT(R) (w.e.f. 1st Oct, 2021) ]
Entry No. 61-A (Service by way of grant of National Permit Fee to a goods carriage)
Services by way of granting National Permit to a goods carriage to operate through-out India / contiguous States.
Author: National permit fee is not a tax but a fee or consideration for a service supplied by the Government in the form of grant of national
permits for plying of vehicles.
However, it has been decided to exempt National permit fee since this fee replaced a levy in the nature of tax levied by the states earlier
on entry of vehicles in their states.
8. Exemption Notification 12/2017- CT (R): Entry No. 72 amended (Services provided to the CG/SG/UT administration
under any training programme) – This exemption shall now be available if 75% or more of total expenditure is borne by
the CG/SG/UT administration [E/N 12/2017-CT(R) amended by N/N 07/2021-CT(R) (w.e.f. 1st Oct, 2021) ]
Entry No. 72 (Any Training programmes to CG /SG / UT administration)
Services provided
to the CG, SG, Union territory administration under any training programme
for which 75% or more of the total expenditure is borne by the CG, SG, Union territory administration.

Additional Discussion: Not covered by ICAI, but recommended for Student

JUDICIAL UPDATE
Entry No. 77(c): Interpretation of exemption limit of 7,500/-
Entry No. 77 (Members Contribution to RWA exempt upto ₹ 7,500)- Madras HC held that it is only contributions in excess of ₹ 7,500/- that
would be taxable under GST [GREENWOOD OWNERS ASSOCIATION - 2021- Madras HC [WP]
Entry No. 77 (Services by certain mutual concerns - to members)
Service
by an unincorporated body or a non-profit entity registered under any law for the time being in force,
to its own members
by way of reimbursement of charges or share of contribution—
(a) as a Trade Union;
(b) for the provision of carrying out any activity which is exempt from the levy of GST; or
(c) up to an amount of ₹ 7,500 per month per member for sourcing of goods or services from a third person for the
common use of its members in a Housing Society or A Residential Complex.
.
Services by RWA to Members (common use services) – exempt upto ₹ 7,500 per month per member
Issue: Whether the entire contribution exceeding ₹ 7500/- is liable to GST or whether the exemption would be available upto
to ₹ 7,500/- and only the difference (excess) is exigible to tax?
CBIC Circular 109/28/2019-GST dated 22nd July, 2019
Contributions exceeding ₹ 7,500 = full amount of contribution is taxable
GREENWOOD OWNERS ASSOCIATION - 2021- Madras HC [WP]
 The term 'upto' connotes an upper limit. It is interchangeable with the term 'till' and means that any amount till the ceiling of ₹
7,500/- would exempt for the purposes of GST -
 The intendment of the exemption Entry in question is simply to exempt contributions till a certain specified limit. The
conclusion of the AAR as well as the Circular to the effect that any contribution above ₹ 7,500/- would disentitle the RWA to
exemption, is contrary to the express language of the Entry in question and both stand quashed - in conclusion, it is only
contributions to RWA in excess of ₹7,500/- that would be taxable under GST

CUSTOMS Amendments
1. Amendments in Customs Act, 1962
1 : INTRODUCTION
1. Section 154-C of CA, 1962 inserted empowering CBIC to notify customs common portal – which shall be called
‘CCEP – Customs Common Electronic Portal’ (ICEGATE / ICES notified as ‘common customs portal’ u/Sec 154-C of
the CA, 1962) [Sec 154-C inserted by FA, 2021 + N/N 33/2021-Cus ]
Amendment neither been covered in ICAI Study Material nor in Statutory Updates.
Not being very technical student, student are advised to do this just for updating their knowledge.
Sec 154-C of CA, 1962 N/N 33/2021-Cus (NT)

CBIC to notify – common portal (of customs)
- Common Customs Electronic Portal
(or common portal)
Section 154-C : Common Customs Electronic Portal

FA, 2021 (dated 28 March, 2021) w.e.f. 28 March, 2021
The Board (CBIC) may notify a common portal, to be called the Common Customs Electronic Portal,
 for facilitating registration,
filing of bills of entry, shipping bills, other documents and forms
prescribed under this Act or under any other law for the time being in
force or the rules or regulations made thereunder,
payment of duty and
 for such other purposes, as the Board may, by notification, specify
N/N 33/2021- Cus (NT) Dated: 29th March, 2021 Issued in exercise of powers given u/Sec 154-C
ICEGATE (https://www.icegate.gov.in/) has been notified as the Common Customs Electronic Portal (Common Portal) for
facilitating registration, filing of Bill of Entry (BoE), shipping bills, other prescribed documents and forms, payment of duty and for
data exchange with other systems within or outside India. 20
Section 2 : Definition
(7B) “Common portal” means the Common Customs Electronic Portal referred to in section 154C
20
Service of notices, order etc. over customs common portal is now made legally acceptable mode of service: Sec 153 has been
amended by FA, 2021 to enable service of order, summons, notice, etc. by making it available on the common portal of customs.

2 : EXEMPTION FROM DUTY

1. Sec 25 of CA, 1962 amended to provide ‘default validity period’ in respect of CONDITIONAL EXEMPTION
NOTIFICATION [Sec 25 (4A) inserted by FA, 2021]

CONDITIONAL EXEMPTION NOTIFICATION issued under Customs – mandatory SUN-SET CLAUSE (i.e. default validity period)
 Sec 25 (4A) inserted providing for ‘default validity period’ in respect of any conditional exemption notification issued under Customs.
 The default period shall be applicable only if notification is not specifically providing for any validity period.
Conditional E/N Validity comes to end Exceptional validity
(i.e. default validity period)
Newly issued 1. If validity period is specifically
Date of + 2 years 31st March
(after FB, 2021 receives assent from provided in exemption (or
issuance following
President – on/after 29th March) subsequently varied), then
1st July, 2021 + 2 years = 1st July, 2023 = 31st Mar, 2024
exemption will be valid till that
Earlier issued – presently prevailing period.
1st Feb, + 2 years 31st March
(Operative as on date on which FB, 2021 following 2. If exemption is
2021 receives assent from President st st st rescinded/withdrawn earlier,
1 Feb, 2021 + 2 years = 1 Feb, 2023 = 31 Mar, 2023
–upto 28th March) then exemption will becomes
invalid earlier.
Section 25 : Power to grant exemption from duty

(4A) Conditional Exemption Notification: Will be operative only upto ‘the default validity period = upto 31st March
falling immediately after 2 years from the date of grant (unless exemption specifically provides for a particular validity
period or is withdrawn earlier)
Where any exemption is granted subject such exemption shall, unless otherwise specified or varied or
to any condition under Section 25(1) rescinded,
(Exemption by Notification)
be valid upto 31st day of March falling immediately after two
years from the date of such grant or variation:
Pre-existing Conditional Exemption Notification (i.e., E/N in existence upto the date FB, 2021 receives President
assent): Valid upto 31st March falling immediately after 2 years from 1st Feb, 2021
Provided that
i.r.o. any such exemption in force as on the said period of two years shall be reckoned from the 1st
the date on which the Finance Bill, 2021 February, 2021:
receives the assent of the President,
(i.e. –upto 28th March)

3 : IMPORT PROCEDURE
1. Sec 46(3) of the CA, 1962 amended to make it mandatory Advance Filing of B/E latest by the end of the day
(including holiday) preceding the day of arrival of the vessel/aircraft/vehicle at the customs station at which
the goods are to be cleared for home consumption or warehousing (However, CBIC is empowered to prescribe
different time limits for such filing in certain cases, but by not later than the end of the day of arrival of the
vessel/aircraft/vehicle at the Customs port/station) [FA, 2021 read with Regulation 4 of of Bill of Entry (Electronic Integrated
Declaration and Paperless Processing) Regulations, 2018 (w.e.f March, 2021)]


Section 46(3) of the Customs Act, 1962. (*As amended by FA, 2021)
The importer should present the bill of entry before the end of the day (including holidays) preceding the day on which the
aircraft/vessel/vehicle carrying the goods arrives at a customs station at which such goods are to be cleared for home consumption or
warehousing.
Provided that the Board may, in such cases as it may deem fit, prescribe different time limits for presentation of the bill of entry, which
shall NOT be later than the end of the day of such arrival. [Regulation 4 of Bill of Entry (Electronic Integrated Declaration and
Paperless Processing) Regulations, 2018 (w.e.f March, 2021)]
Circular No.08 /2021-Cus: Clarifications on the legislative changes in Section 46 of Customs Act, 1962–reg.
Amendment seeks to facilitate pre-arrival processing and assessment of Bills of Entry (B/E) by mandating their ADVANCE FILING21
thus leading to significant decrease in the Customs clearance time. The amended Section 46 requires an importer to file a BE before the
end of the day (including holidays) preceding the day of arrival of the vessel/aircraft/vehicle carrying the imported goods at a
Customs port/station at which such goods are to be cleared for home consumption or warehousing. However, Board is empowered to
prescribe different time limits for such filing in certain cases, but by not later than the end of the day of arrival of the
vessel/aircraft/vehicle at the Customs port/station.
Summary of Amended provisions
Sl. Customs Station Bill of Entry is required to be filed latest by Bill of Entry is required to be filed latest by the
No. the end of the day (including holiday) end of the day of Arrival of the Vessel/ Aircraft
preceding the day of Arrival of the / Vehicle
Vessel/ Aircraft / Vehicle
1. Sea Port Imports consigned from all countries Imports consigned from following countries
(other than ICD) (other than Sri Lanka, Myanmar, Pakistan, viz.
Bangladesh, Maldives) 1. Sri Lanka 4. Bangladesh
2. Myanmar 5. Maldives
3. Pakistan
2. Inland Container Depot (ICD) All imports None
Air Freight Station (AFS)
3. Land Customs Station (LCS) None All Imports

4. Airport None All imports
Notes:
21 Just for yours knowledge:

Circular No.08 /2021-Cus: Removal of the need for Master Bill of Lading (MBL)/ Master Airway Bill (MAWB)in Advance B/E :
“Several representations have been received regarding the non-availability of Master Bill of Lading (MBL)/ Master Airway Bill (MAWB) within
the prescribed time-limits leading to delay in filing advance BE. Upon carefully examining this matter and noting the genuine difficulties of
the importers, Board has decided to do away with the requirement of MBL/MAWB for the filing of advance B/E. Only the reference to House
Bill of Lading (HBL)/ House Airway Bill (HAWB) would be sufficient at the time of advance filing. Thus, an importer can now file the advance
BE on the strength of either a MBL/MAWB or the HBL/HAWB or both.
Further, to regularize the BE filed in advance with the Arrival Manifest (IGM) when a B/E has been filed only with the HBL/HAWB (and not
MBL/MAWB), it is proposed to enable an option in ICEGATE for the importer to subsequently update the MBL/MAWB in the B/E. This
amendment to the already filed B/E would be auto approved in the Customs Automated System without the need for approval of a Customs
officer. An automated approval by the Customs Automated System is supported by section 149 of the Customs Act, 1962 amended vide FA,
2021. Since all such amendments would be auto approved by the Customs Automated System, these would not be subject to levy of fees
under the Levy of Fees (Customs Documents) Regulations, 1970.

1. In respect of import goods arriving at seaports, consigned country (refer Column 3 of the Sl.no 1 of above table) refers to the country where the
goods have been consigned by the exporter of the goods by way of Bill of Lading. The same is already being mentioned as the country of
consignment in the Bill of Entry. To illustrate, in respect of the goods consigned from Sri Lanka by the Sri Lanka exporter, Bill of Entry is to be filed latest
by the end of the day of the arrival, whereas in respect of the goods consigned from let us say, Hong Kong, but merely transhipped through Sri Lanka,
Bill of Entry is required to be filed latest by the end of day preceding the day of the arrival of the vessel.
2. In accordance with the said Section 46 read with the said Regulations, a B/E that is filed after the above timelines shall attract late charges.
 Relevant dates for determining the late charges as clarified earlier by Circular No. 12/2017-Cus for different types of Customs Stations remains
unchanged i.e., Entry Inwards for the Seaport and Date of Arrival at the Airport, ICDs/Air Freight Stations and Land Customs Stations.
Filing of advance B/E under existing provisions is still continuing
It may be noted that, the existing provision that a B/E may be presented upto 30 days prior to the expected arrival of the aircraft or
vessel or vehicle carrying the imported goods continues.

Section 46 : Entry of goods on importation
(1) Clearance of goods from Port – Importer shall present BE (electronically)
(2) B/E shall be for all goods covered in Bill of Lading
(3) TIME LIMIT for filing B/E:

The importer shall present the before the end of the next day following the day (excluding holidays)
B/E under section 46(1) before the end of the day (including holidays) preceding the day
on which the aircraft or vessel or vehicle carrying the goods arrives at
a customs station at which such goods are to be cleared for H/C or
warehousing.
CBIC empowered to prescribe different time limits (but not later than end of the day of arrival)
Provided that
the Board may, in such cases as it may deem fit, prescribe which shall not be later than the end of the
different time limits for presentation of the B/E, day of such arrival.
Advance B/E
B/E may be presented at any time not exceeding thirty days by which the goods have been shipped for
prior to the expected arrival of the aircraft or vessel or importation into India.
vehicle
Belated filing: Late Fees shall be payable

Provided also that
where the B/E is not presented within the time so specified the importer shall pay such charges for late
and presentation of the B/E as may be prescribed.
the PO is satisfied that there was no sufficient cause for [Reg. 4 (3) and (4) of Bill of Entry (Electronic Integrated
such delay, Declaration and Paperless Processing) Regulations, 2018]
(4) Declaration / Verification
(4A) Importer’s Obligations
(5) Substitution of B/E: PO may permit (if no fraudulent intention)
Bill of Entry (Electronic Integrated Declaration and Paperless Processing) Regulations, 2018
Regulation 4 : Filing of Bill Of Entry
(1) Time limit for filing Bill Of Entry
The authorised person shall file the bill of entry before the end of the next day following the day (excluding holidays) on
which the aircraft or vessel or vehicle carrying the goods arrives at a customs station at which such goods are to be cleared

for home consumption or warehousing. 22
Time limit for filing Bill Of Entry 23
(a) In case of a customs port (other than inland the authorized person shall file the bill of entry before the
container depot and air freight station) at end of the day (including holidays) preceding the day on
which goods are to be cleared for home which the vessel carrying the goods arrives at the
consumption or warehousing, customs port:
Provided that the authorized person shall file bill of entry
before the end of the day (including holidays) of said
arrival of the vessel where the goods are consigned from
any of the countries mentioned below:-
(i) Bangladesh ; (iv) Pakistan ;
(ii) Maldives ; (v) Sri Lanka.
(iii) Myanmar ;
(b) In case of a customs airport at which goods the authorized person shall file the bill of entry before the
are to be cleared for home consumption or end of the day (including holidays) of the arrival of the
warehousing, aircraft carrying the goods at the customs airport.
(c) In case of an inland container depot (ICD) the authorized person shall file bill of entry before the end
or air freight station (AFS) at which goods of the day (including holidays) preceding the day on which
are to be cleared for home consumption or the vehicle (which includes train) carrying the goods
warehousing, arrives at the inland container depot or air freight station.
(d) In case of a land customs station at which the authorized person shall file the bill of entry before the
goods are to be cleared for home consumption end of the day (including holidays) of the arrival of the
or warehousing, vehicle (which includes train) carrying the goods at the land
customs station.
(2) Generation of B/E No. is ‘completion of self-assessment’
The bill of entry shall be deemed to have been filed when after entry of the electronic integrated declaration
and self-assessment completed on the common portal24 or by way of data entry through
the service centre, a bill of entry number is
generated by the ICES for the said declaration
and the self- assessed copy of the Bill of Entry may be electronically transmitted to the authorized person or
printed out at the service centre.
Author :
Common Sec 2 (7-B) CP = Customs Common Electronic Portal (CCEP) as referred in Sec 154-C
Portal [FA, 2021]
Sec 154-C = Customs Common Electronic Portal (CCEP) – as notified by CBIC
[FA, 2021] N/N 33/2021-Cus ICEGATE (https://www.icegate.gov.in/) has been notified as
(NT) the Common Customs Electronic Portal (Common Portal)
(Indian Customs Electronic DATA INTERCHANGE GATE way
ICEGATE Reg 2 (e) ICEGATE = Customs Automated System (CAS)

CAS Reg 2 (ca) CAS = Indian Customs Electronic Data Interchange System (ICES)
[newly inserted]
Late fees payable on belated filing of B/E [proviso to Sec 46(1) r/w Reg. 4(3) &(4)]
Status of goods Prescribed Late presentation charges (late Fees)

Charges as per Reg. 4(3) Upper Cap as per Reg. 4(4)
If duty is payable on goods (First 3 days: Rs 5,000/ day) Duty payable in respect of that particular entry
+ (Subsequent Delay: Rs 10,000/day)
22 Substituted vide N/N 34 /2021-Customs (N.T.) New Delhi, dated 29th of March, 2021
23 Substituted vide N/N 34 /2021-Customs (N.T.) New Delhi, dated 29th of March, 2021
24
Substituted vide N/N 34 /2021-Customs (N.T.) New Delhi, dated 29th of March, 2021

If duty is NOT payable on (First 3 days: Rs 5,000/ day) Rs 50,000

goods (exempted goods) + (Subsequent Delay: Rs 10,000/day)
(3) Belated filing of B/W: Charges [@5,000 per day for first 3 days + @10,000 per day for subsequent delay]
Where the bill of entry is not filed within the the importer shall be liable to pay charges for late presentation of
time specified in regulation 4(1) and the bill of entry
the PO of Customs is satisfied that there  @ ₹ 5,000 per day for the initial three days [3 D] of default and
was no sufficient cause for such delay,  @ ₹ 10,000 per day for each day of default thereafter.
Provided that where the PO is satisfied with the reasons of delay, he may waive off the charges referred to in
the second proviso to section 46(3) of the Customs Act, 1962.
(4) Cap on Late filing charges = Duty payable i.r.o. such B/E [in case of ‘0 Duty’, cap shall be ₹ 50,000]
The late presentation charges referred to in regulation shall not exceed the duty payable in respect of that
4(3) above in respect of any bill of entry particular bill of entry.
Provided that
where the duty or any other charges in respect of any the late presentation charges shall not exceed ₹
bill of entry are not payable for any reason like exemption 50,000.
or otherwise,
Amendment not covered by ICAI

JUST FOR YOURS KNOWLEDGE
Sec 149 of the CA, 1962 (containing provisions as to ‘Amendment of any document presented in Customs House upon
Authorization by the PO) is amended to provide that (a) such amendment may be done electronically over CAS; (b) PO can
e-authorize amendment.
(Further, amendments as notified by CBIC can be made by Importer / Exporter without need of any authorization by the PO)
[Second and Third proviso inserted by FA, 2021 ]
Amendments of DOCUMENTS presented under Customs
Nature of Amendment Manner of amendment
Specified Amendment by Importer/ Exporter over portal N/N 36/2021-Cus (NT) (29th March, 2021)
Amendments  Authorization/approval of PO is not required.
(specified by CBIC) Following amendments in the bill of entry
presented under the second proviso to S.46 (3)
of the said Act, which may be done by the
importer on the common portal:-
(i) Supplementing of Bill of Lading Details in the
Bill of Entry
All other Amendments Documentary evidences in support of amendments
shall be submitted.
PO will scrutinize the documents and then,
approve the amendments.
Amendment will be effective post approval.
Amendment / authorization may ALSO be done
electronically.

4 : EXPORT PROCEDURE
1. Electronic Duty Credit Ledger Regulations, 2021 framed in pursuance of Sec 51-B [Notified by N/N 75/2021-Cus (NT) –
(23rd Sep, 2021)]
Sec 51-B (dealing with Duty Credit Ledger) forms part of syllabus and covered in ICAI Study Material.
However, relating regulations issued in 2021 (namely, Electronic Duty Credit Ledger Regulations, 2021)
have neither been covered in ICAI Study Material nor in Statutory Updates.
On safer side, student can make a QUICK READING of summary of latest regulations as given below:
S. 51-B (1) Concept of DUTY CREDIT

Sec Export of goods – Remission of taxes/ duties on goods 2 Notifications have been issued
51-B (a) used in manufacture/processing of such goods N/N 76/2021 - Cus (N.T.) – dated 23rd Sep, 2021
Instead of giving such remission in cash, Duty credit Manner to issue duty credit for goods exported
will be given in specified manner. under the Scheme for Remission of Duties and
Taxes on Exported Products
[Manner of issuing duty credit shall be notified by CG] [RoDTEP Scheme]
N/N 77/2021 - Cus (N.T.) – dated 24th Sep, 2021
Manner to issue duty credit for goods exported
under the Scheme for Rebate of State and
Central Taxes and Levies
[RoSCTL Scheme]
Sec Grant of ANY OTHER FINANCIAL BENEFIT No notification issued presently

51-B (b) Instead of giving such BENEFIT in cash, Duty credit
will be given in specified manner.
[Manner of issuing duty credit shall be notified by CG]
S. 51-B (2) Electronic Duty Credit ledger

 An e-Duty Credit Ledger of recipient of duty credit shall be maintained over Customs Portal (ICE-gate).
Exporter shall create Duty Credit Ledger over ICEGATE (customs portal).
(This can be done by IECs who have registered on ICEGATE (customs portal) with a DSC.)
 Duty Credit shall be given/issued by way of credit into e-Duty Credit Ledger.
 Issuance of duty credit shall be governed by Electronic Duty Credit Ledger Regulations, 2021. [recently notified
vide N/N 75/2021- Cus (NT)- w.e.f. 23rd Sep, 2021]
1. Issuance of Duty Credit Reg. 3 of e-DCL Regulations, 2021
1) Claim to be made in Export Document (Shipping Bill/ Bill of Export presented on/after 1st Jan, 2021):
To avail the scheme exporter shall make a claim for Duty credit under RoDTEP / RoSCTL in the shipping
bill/ bill of export by making a declaration.
(It may be noted that if Benefit under Scheme is not claimed in the Shipping Bill, no benefit
under the scheme will accrue to the exporter)
2) Customs will process claim: Once EM/ER (Export manifest or export report) is filed, claim will be
processed by Customs.
Claim shall be allowed subject to conditions and restrictions notified for the Scheme.
3) PO (AC/DC) will generate a scroll (list) of duty credit for claims allowed: Once the claim is allowed,
a scroll (list) of duty credit will be generated by PO in the Customs Automated System. [The scroll details
shall be visible to the recipient of duty credit]
Separate scrolls will be generated for each Scheme.
2. Conversion of duty credit into scrip Reg. 4 of e-DCL Regulations, 2021
1) Option to exporter to combine duty credit under a particular scheme and to create e-Scrip for that
Scheme: Exporter to exercise this option within 1 year from the date of generation of scroll in CAS)

(If he does not exercise above option, then after expiry of above period, CAS will automatically combine
duty credits and will create a single e-scrip)
Clubbing of Credit allowed against multiple Shipping Bills/ Bills of Export:

1. Credit allowed under RoDTEP Scheme – can be clubbed and a single e-scrip can be generated
2. Credit allowed under RoSCTL Scheme – can be clubbed and a single e-scrip can be generated
Scrip shall be generated ‘Customs Station wise’ – according to Customs Station of EXPORT.
2. Each scrip shall have Unique Identification Number: (All transactions in the e-DCL shall be carried out
using that number and date).
S. 51-B (3) Utilization of Duty credit by RECIPIENT of duty credit :

RECIPIENT of duty credit can utilize his duty credit in following 2 ways:
[1] He can use duty credit for payment of customs duties (payable under CA, 1962 or CTA, 1975)
– subject to conditions and restrictions as may be prescribed
Duties which can be Only BCD leviable u/sec 12 of Customs Act, 1962 Reg. 6 (1) of e-DCL
paid 25 26 Regulations, 2021
Time limit for 1 year from date of creation of e-scrip (of duty credit) Reg. 6 (2) of e-DCL
utilization [Any duty credit remaining unutilized at the end of 1 year shall Regulations, 2021
LAPSE].
[2] He can transfer his duty credit to other person.

Manner of Transfer Transfer shall be allowed within CAS. Reg. 7 (1) of e-DCL
Transfer shall be from one e-DCL to another e-DCL (meaning Regulations, 2021
thereby, the transferee shall also have e-DCL – i.e. he shall also be
IEC Holder under FT (D&R) Act)
Entire duty credit in e- Partial transfer of duty credit shall not be permitted. Reg. 7 (2) of e-DCL
scrip shall be tfd. Regulations, 2021
Validity period for Validity period shall remain same (i.e. 1 year from the date of Reg. 7 (3) of e-DCL
utilization by creation of e-scrip) Regulations, 2021
transferee
25 The owner of the scrip (either the original exporter beneficiary or any other IEC to whom the scrip was transferred) will be able to use the
scrip in the Bills of Entry by giving the details in the license table of the Bill of Entry. The scheme code to be used for these scrips would
be “RD” along with the applicable Notification Number.
26 Limited utilization of e-scrip: This scrip/duty credit CANNOT be utilized towards payment of any other duties/ taxes like Customs Duties
other than BCD and also for payment of IGST, Compensation Cess etc. upon the import of goods

Section 51-B : Ledger for DUTY CREDIT

(1) CG to notify manner in which it will issue Duty Credit (in lieu of remission of duty/tax) or (in lieu of other
financial benefits)
The CG may, by notification in the Official Gazette, specify the manner
in which it shall issue DUTY CREDIT,—
(a) in lieu of remission of any duty or tax or levy, chargeable on any material used
 in the manufacture or processing of goods or
 for carrying out any operation on such goods in India
that are exported;
or
(b) in lieu of such other financial benefit subject to such conditions and restrictions as may be
specified therein.
(2) For recipient of duty credit, e-Duty Credit Ledger (to be maintained in Customs Automated System) – Duty
Credit issued shall be maintained therein (in prescribed manner)
The duty credit issued shall be maintained
under section 51-B(1)  in the Customs Automated System
 in the form of an Electronic Duty Credit Ledger of the person who is
the recipient of such duty credit, in such manner as may be prescribed.
[*prescribed by Electronic Duty Credit Ledger Regulations, 2021]
(3) Utilization of E-Duty Credit Ledger- for payment of Customs Duties (under CA, 1962 + under CTA, 1975)
The duty credit available in the electronic towards making payment of duties payable under this Act
duty credit ledger may be used by or under the CTA, 1975
 the person to whom it is issued or in such manner and
 the person to whom it is subject to such conditions and restrictions and
TRANSFERRED, within such time
as may be prescribed.
[*prescribed by Electronic Duty Credit Ledger Regulations, 2021]

2. Amendments in Customs Tariff Act, 1975
1 : TYPES OF CUSTOMS DUTIES

1. FA, 2021 has amended Section 9 (CVD on subsidized article) and Section 9A (ADD- Anti Dumping Duty) of the
CTA, 1975 to (a) provide for the levy of CVD and ADD on an imported good removed from an SEZ to the DTA, even
when incorporated as part of finished goods. (b) provide for CVD on imported goods removed from an EOU to
the DTA, even when incorporated as part of a finished good. [Amended by FA, 2021]
Pre-amendment position Post-amendment position
Imported Liability to Liability to Liability to Imported Liability to Liability to Liability to

goods pay pay ‘Anti- pay goods pay pay ‘Anti- pay
cleared (as ‘Safeguard Dumping ‘Counter- cleared (as ‘Safeguard Dumping ‘Counter-
such or as a Duty (SD)’ Duty (ADD)’ veiling Duty such or as a Duty (SD)’ Duty (ADD)’ veiling Duty
part of a [Sec 8-B] [Sec 9-A] on part of a [Sec 8-B] [Sec 9-A] on
finished Subsidized finished Subsidized
good) Article good) Article
to DTA (CVD)’ to DTA (CVD)’
from [Sec 9] from [Sec 9]
SEZ unit Yes No No SEZ unit Yes Yes Yes
100% EoU Yes Yes No 100% EoU Yes Yes Yes
Remark: The absence of legal provisions imposing ADD/CVD on imported goods removed from a SEZ to the DTA created a very uneven
playing field. However, with the enactment of the Finance Act, the legal position has been rendered unifrom.
Section 8-B : Power of CG to apply SAFEGUARD MEASURES

[Explanation inserted by FA, 2021]
(6) Safeguard Measures (including safeguard duty) : Inapplicability to imports by 100% EoU and SEZ Unit
Notwithstanding anything contained in the foregoing sub-sections,
 a notification issued under sub-section (1) or
 any safeguard measures applied under sub-sections (2), (3), (4) and (5),
shall not apply to article imported by a 100% EoU / SEZ Unit

Safeguard Measures (including safeguard duty) applies if made specifically applicable or if goods/finished goods are cleared to DTA
UNLESS,
(i) specifically made applicable in such notifications or such impositions, as the case may be;
or
(ii) the article imported is and in such cases safeguard duty shall be
either cleared as such into the DTA (say, imported rubber) levied on that portion of the article so
or used in manufacture of any goods that are cleared cleared or so used as was leviable
in DTA (say, tyre manufactured in India from imported rubber) when it was imported into India.
Explanation: For the purposes of this sub-section,

(a) the expression “100% Export- shall have the meaning assigned to it in Explanation 2 to
Oriented Undertaking” section 3(1) of the Central Excise Act, 1944.
(b) the expression “Special Economic shall have the meaning assigned to it in section 2(za) of the
Zone” Special Economic Zones Act, 2005

Section 9 : Countervailing Duty On Subsidized Articles
[inserted by FA, 2021]
(2A) CVD : Inapplicability to imports by 100% EoU and SEZ Unit
Notwithstanding anything contained in sub-section (1) and sub-section (2),
 any countervailing duty imposed under sub-section (2),
shall not apply to articles imported by a 100% Export-Oriented Undertaking or a unit in SEZ
CVD applies if made specifically applicable or if goods/finished goods are cleared to DTA
UNLESS,
(i) it is specifically made applicable in such notifications or to such undertaking or unit;
or
(ii) the article imported is and in such cases CVD shall be levied on
either cleared as such into the DTA (say, imported rubber) that portion of the article so cleared or
or used in manufacture of any goods that are cleared so used as was leviable when it was
in DTA (say, tyre manufactured in India from imported rubber) imported into India.

Section 9-A : Anti-Dumping Duty

[substituted by FA, 2021]
(2A) ADD : Inapplicability to imports by 100% EoU and SEZ Unit
Notwithstanding anything contained in sub-section (1) and sub-section (2),
 any anti-dumping duty imposed under sub-section (2),
shall not apply to articles imported by a 100% Export-Oriented Undertaking or a unit in SEZ
ADD applies if made specifically applicable or if goods/finished goods are cleared to DTA
UNLESS,
(i) it is specifically made applicable in such notifications or to such undertaking or unit;
or
(ii) the article imported is and in such cases ADD shall be levied on
either cleared as such into the DTA (say, imported rubber) that portion of the article so cleared or
or used in manufacture of any goods that are cleared so used as was leviable when it was
in DTA (say, tyre manufactured in India from imported rubber) imported into India.


2. FA, 2021 has amended Section 9 (CVD on subsidized article) and Section 9A (ADD- Anti Dumping Duty) of the
CTA, 1975 to (a) provide that in case of circumvention of CVD/ADD, CG can impose ‘anti-circumvention
measures’ but not earlier than the date of initiation of the inquiry in this regard; (b) introduce ‘Anti-absorption
provisions’ which can be imposed not earlier than the date of initiation of the inquiry in this regard ; (c) clarify
that extension of period of imposition of CVD/ADD at a time can be for a maximum period of 5 years; (d) provide
that ‘temporary revocation of CVD/ADD’ can be for a maximum period of 1 year. [Amended by FA, 2021]

Sec 9 (CVD on subsidized articles) and Sec 9-A (Anti-Dumping Duty) amended in following aspects:
1. Circumvention of ADD [Sec 9-A (1A)] and Circumvention of CVD [Sec 9 (1A)]:
Sec 9-A (1A) takes care of situations where ADD is sought to be circumvented. It provides that where ADD has been levied on any article but
certain situations have taken place resulting into circumvention of ADD, then CG can extend the levy of ADD to such situations.
CG can impose anti-circumvention measures retrospectively. However, the retrospective imposition cannot be earlier than the date of
initiation of the anti-circumvention investigation.
2. Anti-Absorption of ADD [Sec 9-A (1B)] and Anti-Absorption of CVD [Sec 9 (1B)]:
Purpose of anti-absorption provisions
When trade remedial measures such as anti-dumping duty (‘ADD’) or countervailing duty (‘CVD’) is imposed on imports of a particular
product into a country by the government of the importing country, the purpose is to remove the impact of the unfair trade and create
a level playing field between the dumped/subsidized imports and the domestically produced goods.
The level-playing field sought to be created by the imposition of ADD/CVD is effected when the importer clears the subject goods from
customs after paying the ADD/CVD, apart from ordinary customs duties in force. Other things remaining the same, this leads to an
increase in cost of imported goods as a result of ADD / CVD paid on such goods. This is intended to level the playing field between the
domestically manufactured goods and the imported goods.
There may be a situation when in spite of imposition of ADD / CVD, the price of the imported goods in the Indian domestic market does
not increase, thereby giving imported goods a competitive advantage over the domestically manufactured goods. One of the
circumstances which may lead to this situation is when the exporters reduce their export price to the extent of ADD / CVD
levied on the subject goods. Except when there is a valid reason for such reduced export price, such a practice is called ‘absorption’
of ADD / CVD by the exporter and leads to the same situation of unfair trade in the Indian domestic market.
‘Absorption of ADD’ Explanation to Sec 9-A (1B) r/w Rule 29(1) of Customs Tariff (Identification, Assessment and
Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995
An anti-dumping duty imposed under section 9A of the Act may be considered to be absorbed
when export prices of an article from the exporting country or countries decrease post imposition of the ADD without
any commensurate change in the
 cost of production of such article or
 export prices of such article to countries other than India or
 resale price of such article in India imported from the exporting country or countries.
For an easier understanding of absorption, reference may be made to the example below.
Situation pre-ADD imposition
In the example, the exporter has invoiced the goods to the importer at US$
A B C
80 (dumped price) and with the addition of freight, insurance etc. and
Net export price Landed Value Market price import duties, the said goods land in India at a price of US$ 100 (without
80 USD 100 USD 120 USD any ADD). They are re-sold by the importer into the domestic market after
adding a markup of US$ 20 to account for his profit margins and other
selling costs.
Let us assume that the fair market price in India of the like goods produced
by the domestic industry is US$140. The government, after investigation,
imposes a duty of US$20 on this import to create a level playing field.
Situation post-ADD imposition
With imposition of ADD of 20 USD, the landed value and re-sale price will
A B C
go up by the same amount. The price paid by the end-customer in the
Net export price Landed Value Market price domestic market is US$ 140. Thus, the ADD of US$ 20 has created a level
80 USD 120 USD 140 USD playing field and the users of subject goods in India will now have a fair
[ADD of 20 USD] choice between imports and domestic product which is also selling at
US$140 in the local market.
Situation of Absorption of ADD
Now, let us consider a situation where the exporter has In such case, even though the importer is importing the goods after paying
reduced its export price in the following illustration: ADD of US$20, the goods are being resold to the customers in India at a

A B C price which is lower than the fair market price of the US$140 charged by
Net export price Landed Value Market price the domestic industry in India. The exporter’s reduction of export price has
commercially enabled the importer to resell the imported goods in the
60 USD 120 USD 120 USD
domestic market at the same price as by not including ADD. As a result, the
[ADD of 20 USD]
investigating authority’s objective of creating a level playing field by the
imposition of ADD is defeated.
Such a practice is called absorption and may be considered a form
of unfair trade practice. In order to counter the same, the investigating
authority would need to be empowered to investigate such practices and
recommend/enforce the necessary counter measures.
Accordingly, anti-absorption provisions have been introduced in Sec 9-A of
CTA, 1975 (and also in Sec 9 of CTA, 1975). 27
In terms of newly inserted Sec 9-A (1A),
Anti- CG to conduct inquiry/investigation to find whether ADD levied has been so absorbed.
Absorption  The domestic industry or any other interested party shall file application with DA (designated authority) seeking
Investigation initiation of ‘anti-absorption investigation’. DA may also initiate such investigation suo-moto.
 If absorption is found by DA, then it shall make recommendation to CG to modify ADD Then CG will issue
notification modifying the ADD.
Anti- CG will issue notification modifying (i.e. increasing) ADD.
Absorption CG may modify ADD retrospectively also. However, the retrospective modification cannot be from a date earlier
Action than the date of initiation of the anti-absorption investigation.
3. Period of imposition of ADD [Sec 9-A (5)] and Period of imposition of CVD [Sec 9 (6)]:
 Period of Imposition: 5 Years (unless revoked earlier)
 [Extension: SUNSET REVIEW must – extension (at one time for maximum 5 years)]. – proviso amended
 [Temporary Revocation: Temporary revocation is permissible (but for max period of 1 year)] – proviso inserted
Section 9-A : Anti- dumping duty on DUMPED ARTICLES

(1) Imposition of ADD if there is dumping of imported article
(1A) ANTI-CIRCUMVENTION measures can be taken in case upon investigation it is found that ‘Circumvention of ADD’
has rendered its levy ineffective: [Anti-circumvention measures can be imposed – w.e.f. date not earlier than the date of
initiation of the inquiry)]
Where the CG, on such inquiry as it may consider it may extend the ADD to
necessary, is of the opinion that circumvention of  such article or
ADD has taken place,  an article originating in or exported
- either by altering the description or name or from such country, as the case may
composition of the article subject to such ADD or be,
- by import of such article in an unassembled or
disassembled form or
27 JUST FOR KNOWLEDGE: Vide N/N 84/2021-Cus (NT), Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty
on Dumped Articles and for Determination of Injury) Rules, 1995 have also been amended. Rule 29, 30 and 31 have been inserted
therein.
Rule 29: The domestic industry or any other interested party shall file application with DA (designated authority) seeking initiation
Anti-absorption review of ‘anti-absorption investigation’ normally within period 2 years from the date of imposition of final/definitive ADD
(however, in exceptional cases, DA may accept application even after expiry of 2 years).
If ADD imposed is about to expire in less than 12 months, then no application shall be accepted.
Rule 30: DA may initiate investigation to determine the existence and effect of any alleged absorption of ADD. Such an
Initiation of investigation may be initiated either suo-moto or upon receipt of written application by domestic industry or other
investigation to interested party. Investigation shall be completed in a time-bound manner- within 6 mths (extendable to 9 mths max)
determine absorption from the date of initiation of the investigation.
Rule 31: If absorption is found by DA, then it shall make recommendation to CG to modify ADD Then CG will issue notification
Determination of modifying eh ADD. and such modification may apply retrospectively from the date of initiation of the investigation
Absorption u/R-30 or such date as recommended by DA.
Vide N/N 83/2021-Cus (NT), Customs Tariff (Identification, Assessment and Collection of CVD on Subsidized Articles and for
Determination of Injury) Rules, 1995 have also been amended. Rule 25, 26 and 27 have been inserted therein.

- by changing the country of its origin or export or from such date, not earlier than the date
- in any other manner, of initiation of the inquiry, as the
whereby ADD so imposed is rendered ineffective, Central Government may, by
notification in the Official Gazette,
specify.
(1B) ANTI-ABSORPTION measures can be taken in case upon investigation it is found that ‘Absorption of ADD’ has
rendered its levy ineffective: [ADD will be modified – w.e.f. date not earlier than the date of initiation of the inquiry]
Where the CG, on such inquiry as it may consider it may modify such duty to counter the effect of such
necessary, is of the opinion that absorption,
absorption of anti-dumping duty imposed under from such date, not earlier than the date of
sub-section (1) has taken place whereby the anti- initiation of the inquiry, as the CG may, by
dumping duty so imposed is rendered ineffective, notification in the Official Gazette, specify.
Absorption of ADD- meaning thereof

“absorption of anti- is said to have (a) if there is a decrease in the export price of an article without
dumping duty” taken place,–– any commensurate change in the
 cost of production of such article or
 export price of such article to countries other than India or
 resale price in India of such article imported from the
exporting country or territory; or
(b) under such other circumstances as may be provided by rules.
(2) Provisional Imposition:
(2A) Imports by 100% EoU and SEZ Unit: CVD imposition not applicable (except in certain cases)
(discussed separately)
(3) Retrospective provisional Imposition: (for maximum period of 90 days)
(4) ADD is in addition to any other customs duty
(5) Period of Imposition: 5 Years (unless revoked earlier)

[Extension: SUNSET REVIEW must – extension (at one time for maximum 5 years)]
[Temporary Revocation: Temporary revocation is permissible (but for max period of 1 year)]
The ADD imposed shall, unless revoked earlier*, cease to have effect on expiry of 5 years [5 Y] from the date
of such imposition.
Provided that
if the CG, in a review, is of the opinion that the  it may, from time to time, extend the period of
discontinuation of such duty is likely to lead to such imposition for a further period of 5 years
continuation or recurrence of dumping and injury, upto 5 years and
 such further period shall commence from the date
of order of such extension.
where a review initiated before the expiry of the  the ADD may continue to remain in force
aforesaid period of 5 years has not come to a pending the outcome of such a review for a
conclusion before such expiry, further period not exceeding 1 year.


Provided also that
if the said duty is revoked temporarily, the period of such revocation shall not exceed one year at a
time.
Author:
First time 5 years [maximum]
Imposition
ADD shall remain in force for a period of 5 years (max) from the date of imposition of duty.
(by However, after a reasonable period has elapsed since the imposition of ADD (normally, 12 months or
Notification more), the Designated Authority (DGTR) can conduct a review to examine the need for the continued
in OZ) imposition of the ADD or the change in the rate of duty imposed.
 This review is referred as ‘Mid-Term Review (MTR)’
 MTR can be done suo moto or on the basis of a request received from an interested party in view
of the changed circumstances.
 MTR may result in the withdrawal of the duty or in continuation (with or without the variation of the
duty level) depending upon the new circumstances.
Based on MTR, earlier revocation of ADD may be made.
Permanent revocation Validity of ADD ceases
Temporary Revocation Temporary revocation can be for a maximum period of 1 year at a
[FA, 2021] time.
Practical Illustration of Temporary revocation
Considering sharp rise in steel prices, in Year 2021, CG revoked temporarily ADD on imports of alloy-
steel bars, rods and flat steel products coated or plated with aluminium or zinc revoked until Sept. 30.
Extension Extension can be made time to time (i.e. any number of times)
(by Any extension shall fulfill following conditions:
Notification  Extension shall be done only after carrying out a review (generally referred as ‘sunset review’)
in OZ) where the outcome of review indicates that discontinuation of ADD is likely to lead to continuation
or recurrence of dumping and injury
 Extension at one time can only be for a maximum period of 5 years.
 Extension shall be applicable from the date of order of extension only. (*Order of Extension = here
basically means, issuance of notification extending period)
*SUNSET REVIEW (SSR): SSR is done to decide continuation or otherwise of the ADD beyond the
stipulated period of 5 years. The purpose of a Sunset review is to investigate whether the cessation of
anti-dumping duty is likely to lead to continuation or recurrence of dumping and injury.
.
Extension of time-period
(A) Extension is possible only upon sun-set review.
(B) Sun-set review must be initiated before the expiry period of original imposition of 5 years.
In the absence of any initiation of a sunset review, the ADD lapses at the expiry of 5 years from
the date of its initial imposition.
Review: Initiation vs Conclusion [Initiation before expiry of original validity period is must, review can
gets concluded later]
1. Review initiated within original validity period of 5 years and also concluded within
that period.
 Notification extending period of levy shall be passed on date of expiry of original period.
 Extension will take effect with issuance of such extension notification.
2. Review initiated within original validity period of 5 years and not concluded within
that period.
 Pending such review, ADD can be continued for a period of 1 year.
 Notification extending levy shall still be passed on date of expiry of original
validity period of 5 years, else original levy of ADD will lapse.
KUMHO PETROCHEMICALS CO LTD- 2017- SC:
Continuity of ADD pending outcome of sunset review- Continuity is not automatic,
it requires ‘notification in OZ’

(6) Determination of MARGIN OF DUMPING: as per Rules
(6A) Determination of MARGIN OF DUMPING: as per exporter’s records (if he does not furnish records, then MoD shall
be determined on basis of facts available)
(7) ADD Notification shall be laid before the Parliament
(8) Provisions of CA, 1962 shall be applicable mutatis mutandis:
Section 9 : Countervailing duty on subsidized articles

(1) Imposition of Countervailing Duty if there is subsidization of imported article
(1A) ANTI-CIRCUMVENTION measures can be taken in case upon investigation it is found that ‘Circumvention of CVD’
has rendered its levy ineffective: [Anti-circumvention measures can be imposed – w.e.f. date not earlier than the date of
initiation of the inquiry]
Where the CG, on such inquiry as it may consider it may extend the CVD to such other
necessary, is of the opinion that circumvention of article also
CVD has taken place, from such date, not earlier than the date
- either by altering the description or name or
of initiation of the inquiry, as the
composition of the article subject to such CVD or
Central Government may, by
- by import of such article in an unassembled or
notification in the Official Gazette,
disassembled form or
specify.
- by changing the country of its origin or export or
- in any other manner,
whereby CVD so imposed is rendered ineffective,
Author : Refer Discussion under Sec 9-A (1A): )- Anti-Circumvention measures for ADD
(1B) ANTI-ABSORPTION measures can be taken in case upon investigation it is found that ‘Absorption of CVD’ has
rendered its levy ineffective: [CVD will be modified – w.e.f. date not earlier than the date of initiation of the investigation]
Where the CG, on such inquiry as it may consider it may modify such duty to counter the effect of such
necessary, is of the opinion that absorption,
absorption of countervailing duty imposed under from such date, not earlier than the date of
sub-section (1) has taken place whereby the initiation of the inquiry, as the CG may, by
countervailing duty so imposed is rendered notification in the Official Gazette, specify.
ineffective,
Absorption of CVD- meaning thereof

“absorption of is said to have (a) if there is a decrease in the export price of an article
countervailing duty” taken place,–– without any commensurate change in the resale price in
India of such article imported from the exporting country
or territory; or
(b) under such other circumstances as may be provided by
rules.
Author : Refer Discussion under Sec 9-A (1B)- Anti-absorption measures for ADD
(2) Provisional Imposition:
(2A) Imports by 100% EoU and SEZ Unit: CVD imposition not applicable (except in certain cases)
(discussed separately)
(3) Restriction on imposition of CVD

(4) Retrospective provisional Imposition: (for maximum period of 90 days)
(5) CVD is in addition to other duty
(6) Period of Imposition: 5 Years (unless revoked earlier)

[Extension: SUNSET REVIEW must – extension (at one time for maximum 5 years)]
[Temporary Revocation: Temporary revocation is permissible (but for max period of 1 year)]
The CVD imposed shall, unless revoked earlier, cease to have effect on expiry of 5 years [5 Y] from the date
of such imposition.
Provided that
if the CG, in a review, is of the opinion that the  it may, from time to time, extend the period of
discontinuation of such duty is likely to lead to such imposition for a further period of 5 years
continuation or recurrence of subsidization and upto 5 years and
injury,  such further period shall commence from the date
of order of such extension.
where a review initiated before the expiry of the  the CVD may continue to remain in force
aforesaid period of 5 years has not come to a pending the outcome of such a review for a
conclusion before such expiry, further period not exceeding 1 year.
Provided also that
if the said duty is revoked temporarily, the period of such revocation shall not exceed one
year at a time.
Author : Refer Discussion under Sec 9-A (5)- Period of imposition of ADD
(7) Determination of SUBSIDY: as per Rules
(7A) Provisions of CA, 1962 shall be applicable mutatis mutandis:
(8) CVD Notification shall be laid before the Parliament
3. FA, 2021
1: AIDC imposed by FA, 2021

1. FA, 2021 has imposed AIDC (Agriculture Infrastructure and Development Cess) on ‘specified imported goods’ at
notified rates [Imposed vide Sec 124 of FA, 2021]

Sec 124 of FA, 2021
Nature Customs Duty (Retention of whole proceeds by CG- no sharing with States)
Purpose Financing the agriculture infrastructure and other development expenditure.
Applicability AIDC is leviable on all imported goods. (AIDC not levied on EXPORT OF GOODS)
However, presently, Govt has decided to levy it only on SPECIFIED GOODS.
All other goods have been exempted from levy of AIDC -- vide N/N 11/2021- Cus (dated 1st Feb, 2021)
* Further, the BCD rates have been simultaneously lowered on items on which cess is being imposed.
(Note: AIDC is not levied on EXPORT OF GOODS)
Rate Max rate = As specified in the First Schedule (i.e. BCD Rates)
* Thus, if BCD on a goods is 25%, then, the rate of AIDC on such goods may be in the range of zero to 25%.

Value AV as per Sec 124 (3) of FA, 2021 = Value as per Sec 14 of Customs Act, 1962. (i.e., Transaction Value / Tariff Value)
Other Provisions of CA, 1962 (and rules and regulations made thereunder) shall be applicable mutatis mutandis.
provisions
Section 124 of FA, 2021 : AIDC on Imported Goods

(1) AIDC on Imported Goods = Duty of Customs (Retention of whole proceeds by CG- no sharing with States)
There shall be levied and collected, in accordance with the provisions of this Chapter,
- for the purposes of the Union,
- a duty of Customs, to be called a AIDC (Agriculture Infrastructure and Development Cess),
- on the goods specified in the First Schedule to the CTA, 1975, being the goods imported into India,
- at the rate not exceeding the rate of customs duty as specified in the said Schedule,
- for the purposes of financing the agriculture infrastructure and other development expenditure.
(2) Utilization of AIDC = To Finance ‘the agriculture infrastructure and other development expenditure’
The CG may, after due appropriation made by Parliament by law in this behalf, utilize such sums of money of
the AIDC levied under this section for the purposes specified in section 124 (1), as it may consider necessary.
(3) Computation of AIDC = Specified Rate * AV (= Sec 14 of CA, 1962)
Where the duty is leviable on the goods at any the value of such goods shall be calculated in the same
percentage of its value, then, for the purposes manner as the value of goods is calculated for the purpose of
of calculating the AIDC under this section, customs duty under section 14 of the Customs Act, 1962.
(4) AIDC on imported goods = In addition to other customs duties

The AIDC on imported goods chargeable under this section shall be in addition to any other duty imposed
under this Act or under any other law for the time being in force.
(5) Provisions of CA, 1962 shall be applicable mutatis mutandis:

The provisions of the CA, 1962 and the rules and shall, as far as may be, apply in relation the
regulations made thereunder, levy and collection of the AIDC on imported
including those relating to goods
 assessment, non-levy, short-levy, as they apply in relation to the levy and
 refunds, exemptions, interest, collection of the duties of customs under the
 appeals, offences and penalties Customs Act, 1962 or the rules or the
regulations, as the case may be (BCD).

4. Amendments in Foreign Trade Policy
1. Extension of FTP 2015-20:: Validity of Foreign Trade Policy 2015-20 has been extended till 31st March, 2022.
[Notified vide N/N 33/ 2015-20 (dated 28th Sep 2021)]
2. Imports under Advance Authorization, EPCG Authorization, EOU/EHTP/STP/BTP Units- Exemption to ‘IGST’ and
‘GST Compensation Cess’ extended to 31st March, 2022. [Notified vide N/N 33/ 2015-20 (dated 28th Sep 2021)]
3. Principles of ‘Prohibition’ / ‘Restriction’ for imports/ Exports now made in line with international agreement.
[Notified vide N/N 17/ 2015-20 (dated 10th Aug, 2021)]

Act Provision Remarks
Foreign Trade Sec 3: Goods so prohibited u/Sec
(Development S. 3 (2): CG may, by order published in OZ, prohibit, restrict or otherwise regulate 3 of FT (D&R) Act, 1992 =
and Regulation) the import or export of any goods. [Foreign Trade Policy (FTP)] Prohibited goods
Act, 1992 S. 3 (3): All goods covered by order issued u/sec (1) shall be deemed to be goods
(under which Foreign the import or export of which has been prohibited u/S. 11 of the Customs Act,
Trade Policy (FTP) is 1962 and all the provisions of that Act shall have effect accordingly
issued)
The Ministry of Commerce and Industry vide its notification dated 10th August 2021 has revised the principles of
restrictions and prohibitions for imports/exports in order to be in line with international agreements.
N/N 17/ 2015-20. (w.e..f 10th Aug, 2021) Principles of Restrictions And Prohibitions For Imports/Exports
DGFT may, through a notification, impose ‘prohibition’ or ‘restriction’:-

a) on export of foodstuffs or other essential products for preventing or relieving critical shortages;
b) on imports and exports necessary for the application of standards or regulations for the classification, grading
or marketing of commodities in international trade;
c) on imports of fisheries product, imported in any form, for enforcement of governmental measures to restrict
production of the domestic product or for certain other purposes;
d) on import to safeguard country’s external financial position and to ensure a level of reserves.
e) on imports to promote establishment of a particular industry;
f) for preventing sudden increases in imports from causing serious injury to domestic producers or to relieve
producers who have suffered such injury;
g) for protection of public morals or to maintain public order;

h) for protection of human, animal or plant life or health;
i) relating to the importations or exportations of gold or silver;
j) necessary to secure compliance with laws and regulations including those relating to the protection of patents, trademarks
and copyrights, and the prevention of deceptive practices;
k) relating to the products of prison labour;
l) for the protection of national treasures of artistic, historic or archaeological value;
m) for the conservation of exhaustible natural resources;
n) for ensuring essential quantities for the domestic processing industry;

o) essential to the acquisition or distribution of products in general or local short supply;
p) for the protection of country’s essential security interests:

(i) relating to fissionable materials or the materials from which they are derived;
[*fissionable = capable of undergoing nuclear fission as a result of any process (e.g. Uranium)]

(ii) relating to the traffic in arms, ammunition and implements of war;

(iii) taken in time of war or other emergency in international relations; or
q) in pursuance of country’s obligations under the United Nations Charter for the maintenance of international peace
and security.
4. RoDTEP (Remission of Duties and Taxes on Export Products) Scheme notified [Notified vide N/N 19/ 2015-20 (dated
17th Aug, 2021) - new scheme effective from 1st March, 2021]
☛
'Remission of Duties or Taxes on Exported Products' (RoDTEP). 28
RoDTEP provides for REBATE/REFUND of Central, State and Local duties/taxes/ levies which are currently not refunded
under any other duty remission schemes.
N/N 19/ 2015-20 (dated 17th Aug, 2021)
The Scheme’s objective is to refund, currently unrefunded:
 Duties/ taxes/ levies, at the Central, State and local level, borne on the exported product, including prior-stage cumulative
indirect taxes on goods and services used in production of the exported product and
 Indirect duties/taxes/levies in respect of distribution of exported products.
It may be noted that rebate under the Scheme shall not be available in respect of duties and taxes already
exempted or remitted or credited.
This scheme has been introduced as replacement of MEIS Scheme. [MEIS Scheme has been discontinued w.e.f. 1st Jan, 2021]
Reason for New Scheme: In March 2018, the US had challenged various Indian export subsidy schemes (including MEIS). against which
several representations were made by both the countries. The allegations were heard by the WTO’s dispute settlement panel and a final
report was issued on 30 September 2019. On 31 October 2019, WTO ruled out that these schemes are inconsistent with the WTO
agreements for providing prohibited export subsidies.
GOI decided to revisit the existing structure and roll out a scheme compatible with WTO norms. RoDTEP Scheme made
replacing MEIS w.e.f. 1st Jan, 2021.

MEIS RoDTEP Scheme
Incentive available on the export of goods Refund of duties and taxes that are currently not being reimbursed
by any other schemes.
[Focus is on making exports a fully ‘zero-rated supply’]
Not compliant with the WTO norms. Compliant with the WTO norms.
Computation of benefit Computation of benefit
Rate Notified rates Rate Notified rates 29
Value Lower of the following two: Value Lower of the following two: 30
1. (FOB Value as declared in Shipping Bill) 1. (FOB Value as declared in Shipping Bill)
or or
2. (FOB Value as actually realized) 2. (1.5 times the market price (Indian) of said goods)
At the time of granting rebate, it shall not depend upon realization of
export proceeds. 31
 Rebate shall be granted subject to receipt of sales proceeds within
the time allowed under FEMA, 1999. As per Foreign Exchange
Management (Export of Goods & Services) Regulations, 2015, full
28
Not all sectors have been covered by Scheme presently: Some of the most critical sectors which have not been covered currently
from the benefit under the scheme are Steel, Pharmaceuticals, Organic And Inorganic Chemicals etc.
29 Annual Review of RoDTEP Rates: Rate of Rebate under RoDTEP scheme shall be reviewed on an annual basis and any change in
rate will be notified well in advance before commencement of the FY.
30 As provided in [Condition No. 2 (1) (b) - Manner to issue duty credit for goods exported under RoDTEP Scheme – N/N 76/2021-Cus
(NT)]
31 However, if the Principal Commissioner of Customs or Commissioner of Customs has reason to believe, on the basis of risk evaluation or
on the basis of enquiry, that the claim of duty credit made by an exporter on export goods may not be bona fide, he may direct, for reasons
to be recorded in writing, to allow duty credit after realization of sale proceeds of such exports; [Condition No. 2 (6) - Manner to issue
duty credit for goods exported under RoDTEP Scheme – N/N 76/2021-Cus (NT)]

value of export of goods should be released and repatriated to India
within 9 months from the date of export.
 If sales proceeds are not received within the time limit given
under FEMA then the rebate shall be deemed to never have been
allowed.
Issued in the form of transferable scrip (physical copy) Issued in the form of transferable scrip (paperless mode / e-scrip)
Scheme was in operation upto 31st Dec, 2020. Scheme is in operation w.e.f. 1st Jan, 2021.
[W.e.f. 1st Jan, 2021, it is mandatory for EXPORTER OF GOODS to
indicate in their SHIPPING BILL whether or not they intend to claim
RoDTEP Scheme]
Salient Features
 Refund of taxes which are presently not getting refunded/ reimbursed under any other mechanism :
Benefit would be provided on certain taxes / duties / levies (other than GST) at the central, state and local level,
which are NOT refunded for exports, such as,
1) VAT, 4) Mandi Tax,
2) Central Excise Duties on Fuel used for 5) Duty on Electricity,
Transportation, 6) Compensation Cess on Coal for Captive Power
3) Natural Gas used in certain Industries, used during manufacturing etc.
 Implementation of Scheme:
Scheme notified by- Scheme administered by-
Department of Commerce [DoC] Department of Revenue [DoR]
The sequence of introduction of the Scheme across sectors, The overall budget/outlay for the RoDTEP scheme would be
prioritization of the sectors to be covered, degree of the benefit to finalized by the Ministry of Finance in consultation with
be given on various items, within the overall budget/outlay DOC.
finalized, will be decided, and notified by the DoC in consultation
with DoR.
Scheme will be implemented by Customs through its Customs Automated System (CAS).
Rebate/refund is granted in the form of ‘duty-credit’ which are accounted for in the electronic duty credit ledger of the
recipient of such credit maintained over CAS. The duty credit issued against multiple shipping bills or bill of exports can be
converted into e-scrip by the recipient of the duty credit.
 Procedure for claiming benefit under RoDTEP Scheme:
1) Creation of Duty Credit Ledger over customs portal: Exporter shall create ‘Duty credit Ledger’ account over
ICEGATE (customs portal).
(This can be done by IECs who have registered on ICEGATE (customs portal) with a DSC.)
2) Claim to be made in Export Document (Shipping Bill or Bill of Export): To avail the scheme exporter shall make a
claim for RoDTEP in the shipping bill or bill of export by making a declaration.
(It may be noted that if RoDTEP is not so claimed, no RoDETP will accrue to the exporter)
3) Customs will process claim: Once EM/ER (Export manifest or export report) is filed, claim will be processed
by Customs.
Claim shall be allowed subject to conditions and restrictions notified for the Scheme.
4) PO (AC/DC) will generate a scroll (list) of duty credit for claims allowed: Once the claim is allowed, a scroll
(list) of duty credit will be generated by PO in the Customs Automated System. [The scroll details shall be visible to the
recipient of duty credit]
5) Option to exporter to combine duty credit under a particular scheme and to create e-SCRIP for that Scheme:
Exporter to exercise this option within 1 year from the date of generation of scroll in CAS)
(If he does not exercise above option, then after expiry of above period, CAS will automatically
combine duty credits and will create a single e-scrip)
Scrip shall be generated ‘Customs Station wise’ – according to Customs Station of EXPORT.
6) Each scrip shall have Unique Identification Number: (All transactions in the e-DCL shall be carried out using that
number and date).
 Utilization of duty credit (e-scrip) issued under RoDTEP Scheme:
RECIPIENT of duty credit can utilize his duty credit in following 2 ways:

[1] He can use duty credit for payment of customs duties (payable under CA, 1962 or CTA, 1975)
Duties which can be Only BCD leviable u/sec 12 of Customs Act, 1962 Reg. 6 (1) of e-DCL Regulations, 2021
paid 32 33
Time limit for 1 year from date of creation of e-scrip (of duty credit) Reg. 6 (2) of e-DCL Regulations,
utilization [Any duty credit remaining unutilized at the end of 1 year shall 2021
LAPSE].
[2] He can transfer his duty credit to another person.
Manner of Transfer Transfer shall be allowed within CAS. Reg. 7 (1) of e-DCL Regulations, 2021
Transfer shall be from one e-DCL to another e-DCL
(meaning thereby, the transferee shall also have e-DCL – i.e.
he shall also be IEC Holder under FT (D&R) Act)
Entire duty credit in e- Partial transfer of duty credit shall not be permitted. Reg. 7 (2) of e-DCL Regulations,
scrip shall be tfd. 2021
Validity period for Validity period shall remain same (i.e. 1 year from the date Reg. 7 (3) of e-DCL Regulations, 2021
utilization by of creation of e-scrip)
transferee
Items/Categories/Supplies not eligible for benefits under RoDTEP Scheme

Following nature of transactions or class of items for which no benefit shall be granted under RoDTEP Scheme:
 Products which are PROHIBITED for export under Schedule-2 of the Export Policy of ITC (HS) [such as Birds: — Birds of prey, Carcasses
and half carcasses and many others. Export of prohibited items is not permitted.]
 Products which are RESTRICTED for export under Schedule-2 of the Export Policy of ITC (HS) [such as horses, bulls, cows and many others.
Export of restricted items is allowed subject to necessary approvals.]
 Export of Imported goods covered under Para 2.46 of FTP. [Para 2.46 of FTP provides for import of goods which are further exported either
in same form or substantially the same form]
 Export through trans-shipment, i.e., exports which originate in a third country but trans-shipped through India. [General meaning of
transhipment is taking shipment of goods to an intermediate designation then to another designation. This generally happens in case of change of
containers, small shipments may be combined in one container etc.]
 Export products which are subject to minimum export price or export duty.
 Deemed Export under the FTP [i.e., Supply to 100% EOU etc.]
 Supplies of products manufactured by DTA units to Special Economic Zones (SEZ)/FTWZ units.
 Products manufactured in EHTP and BTA.
 Products manufactured partly or wholly in a WAREHOUSE under section 65 of Custom Act, 1962.
 Products manufactured and exported in an obligation against Advance Authorization or Duty Free Import Authorization or Special
Advance Authorization issued under a Duty exemption scheme of relevant Foreign Trade Policy.
 Products manufactured or exported by units having licence as 100% EOU.
 Products manufactured or exported by any unit situated in Free Trade zones or Export processing zones or SEZ.
 Products manufactured or exported availing benefit of N/N 32/1997-Cus (dated: 1st April, 1997).
 Exports for which electronic documentation in IECGATE EDI has not been generated/ Export from non-EDI port.
 Goods which have been taken into use after manufacturing.
[Note: However, above mentioned categories may be amended to include or exclude on a later date.]
Illustration

Determine admissible refund under RoDTEP Scheme from the following (rate of refund may be taken to be 2%)
(1) Goods X - FOB Value declared in shipping bill is ₹ 5,00,000 (payment realized in advance)
(2) Goods X - FOB Value declared in shipping bill is ₹ 2,00,000 (payment is yet to be realized)
(3) Supplies of goods made to SEZ units : ₹ 50,000
(4) Supplies of goods made to 100% EpU : ₹ 1, 50,000
32 The owner of the scrip (either the original exporter beneficiary or any other IEC to whom the scrip was transferred) will be able to use the
scrip in the Bills of Entry by giving the details in the license table of the Bill of Entry. The scheme code to be used for these scrips would
be “RD” along with the applicable Notification Number.
33 Limited utilization of e-scrip: This scrip/duty credit CANNOT be utilized towards payment of any other duties/ taxes like Customs Duties
other than BCD and also for payment of IGST, Compensation Cess etc. upon the import of goods

(5) Export of products liable to export duty : FOB Value ₹ 1,75,000
(6) Export of products subject to Minimum export price : FOB Value ₹ 4,25,000
Statement showing computation of admissible refund under RoDTEP Scheme [In terms of Foreign Trade Policy 2015-20]
Value for purposes of RoDTEP Scheme Amount in
₹
(1) Goods X (payment realized in advance) 5,00,000
FOB value in shipping bill ₹ 5,00,000
(2) Goods Y (payment yet to be realized) 2,00,000
FOB value in shipping bill ₹ 2,00,000
At the time of granting rebate, it shall not depend upon realization of
export proceeds.
 Rebate shall be granted subject to receipt of sales proceeds within
the time allowed under FEMA, 1999. As per Foreign Exchange
Management (Export of Goods & Services) Regulations, 2015, full
value of export of goods should be released and repatriated to India
within 9 months from the date of export.
 If sales proceeds are not received within the time limit given
under FEMA then the rebate shall be deemed to never have been
allowed.
(3) Supplies of goods made to SEZ unit N.A. (as such supply is not eligible for RoDTEP Scheme) Ineligible
(4) Supplies of goods made to 100% EoU N.A. (as such supply is not eligible for RoDTEP Scheme) Ineligible
(5) Export of products liable to export duty N.A. (as such supply is not eligible for RoDTEP Scheme) Ineligible
(6) Export of products subject to Minimum N.A. (as such supply is not eligible for RoDTEP Scheme) Ineligible
export price
Total 7,00,000
Admissible refund under RoDTEP Scheme @ 2% 14,000
.

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GST – Volume I Amendments ................................................................................................... 4

2 : PAYMENT OF TAX .............................................................................................................................................. 8

6 : E-WAY BILL ........................................................................................................................................................ 14

7 : ACCOUNTS & RECORDS .................................................................................................................................. 16

GST Volume-2 Amendment .................................................................................................... 22

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3 : EXEMPTIONS UNDER GST ................................................................................................................................ 38

2 : EXEMPTION FROM DUTY .................................................................................................................................44

3 : IMPORT PROCEDURE ....................................................................................................................................... 45

4 : EXPORT PROCEDURE ....................................................................................................................................... 49

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3. FA, 2021 .......................................................................................................................... 59

4. Amendments in Foreign Trade Policy ............................................................................ 61

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GST – Volume I Amendments

Real Estate Sector – ToS in case of JDA

Simplified version of Amendment

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2. Explanation:- For the purpose of this notification,-

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Author: Special ToS for REAL ESTATE SECTOR

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Section 50 : Interest on DELAYED PAYMENT of tax.

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Amendment in Simplified Form

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Amendment in Simplified Form

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Rule 23 : Revocation of cancellation of registration

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Amendment in Simplified Form

Notified RP mandated to do e-invoicing

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Amendment in Simplified Form

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Rule 138-E : Restriction on furnishing of information in PART A of FORM GST EWB-01

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7 : ACCOUNTS & RECORDS

Amendment in Simplified Form

Sec 35 : Accounts and other records.

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Amendment in Simplified Form

Person exempted from filing Annual Return

Category-2: No parallel provision Second Proviso to Sec 44

applicable to these entities question of furnishing of GSTR-9C -

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FY 2020-2021 & onwards

ATO upto 2 crore No Annual Return

Sec 44 : Annual Return

Due Dates Extension: Commissioner empowered to extend

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Provided further that

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Rule 80 : Annual return