Article

Bill of Supply whether a tax invoice for issuance of GST debit/credit note?

By Vatsal Bhansali, Nirav Karia and Chaitanya Bhatt

The article in this 120th issue of Tax Amicus discusses an amendment made in the Central Goods and Services Tax Act, 2017 with effect from 1 January 2021 which has resulted in delinking the date of issuance of the debit note from the date of original / parent invoice against which the GST debit note is issued. The authors elaborately consider the scenario where a person had supplied goods at Nil rate of tax by issuing Bill of Supply (which is a document for making exempted supply) and thereafter realised at later date that the goods supplied earlier were in fact subjected to tax at applicable rate. They note that it can be said that ‘tax invoice’ and ‘Bill of Supply’ are independent documents and since Section 34(3) only prescribes that a GST debit note can be issued against one or more tax invoices, a GST Debit note cannot be issued against a Bill of Supply. However, considering Rule 53(1A) of the Central Goods and Services Tax Rules, 2017, they point out that it appears that a GST debit note is also allowed to be issued with respect to a Bill of Supply. The authors urge the CBIC and the legislature to take cognizance of the said ambiguity and clarify the stand...

Goods & Services Tax (GST)

Notifications and Circulars

• Rate of GST reduced on specified items for Covid-19 relief and management
• Dynamic Quick Response (QR) Code on B2C invoices clarified
• 43rd meeting of the GST Council – Certain clarifications and changes

Ratio decidendi

• Race club liable only on commission received for service rendered through totalisator – CGST Rule 31A(3) quashed – Karnataka High Court
• Provisional release of goods/vehicle when no opportunity given for depositing tax and penalty before confiscation – Rajasthan High Court
• Refund claim cannot be denied due to technical glitches on GSTN portal – Madras High Court
• Appeal – Limitation – Liberal approach to be followed during Covid – Orissa High Court
• Composition levy – Turnover of VAT regime to be considered in computing aggregate turnover in preceding financial year – Andhra Pradesh High Court
• No intention to evade just because validity of e-way bill not extended – Telangana High Court
• Liaison office connecting Indian customers with foreign partners is liable as intermediary – Maharashtra AAR
• Medicines, implants separately billed to inpatients liable to GST – Kerala AAR
• TDS under GST – Invoice when and when not to be equated to contract – Karnataka AAR

Customs

Notifications and Circulars

• IGST exemption on import of medical supplies listed under Customs Notification No. 27 and 28/2021 extended till 31 August 2021
• EPCG – Applications for relaxations in policy or procedures to be submitted online
• DFIA scrips to be paperless – Transfer of DFIA scrips to be recorded online
• Export authorisation for restricted items to be issued online
• Plastic and used/worn clothes recycling units in SEZs/EOUs – Revised policy guidelines issued
• SEZ unit by multilateral or unilateral or international agencies in International Financial Services Centre

Ratio decidendi

• Quantitative import restrictions – Goods imported in excess of cap are prohibited goods – Supreme Court
• Valuation – Notional transportation cost not includible in value of fuel remaining in aircraft after incoming international flight – CESTAT Larger Bench
• Deputy Commissioner not authorised to reject preferential duty claims and CBIC Circular No. 42/2020-Cus. bad in law – Madras High Court
• Quantum of redemption fine and penalty – Prior knowledge about description of goods is important – CESTAT Chandigarh
• Valuation – Subvention payments not to be included in transaction value – CESTAT Delhi
• Recovery of sanctioned refund – Order sanctioning refund to be challenged by department – CESTAT Kolkata
• Appeal to Tribunal – Multiple appeals against multiple bills of entry (order) but single appeal against consolidated order-in-original – CESTAT Ahmedabad
• Authorised courier agent when not liable for import of counterfeit goods – CESTAT Delhi

Central Excise, Service Tax & VAT

Ratio decidendi

• Crushing, pulverizing, converting and packing of spices into powder form is ‘manufacture’ – CESTAT Larger Bench
• Retrospective exemption and refund of service tax – Tax paid utilising Cenvat credit also refundable – CESTAT Ahmedabad
• Cenvat credit on tower, tower material available to telecommunication service provider – CESTAT Delhi
• Interest on delayed refund of revenue deposit – CESTAT directs interest @ 12% - CESTAT Allahabad
• DTA clearance by EOU – Words ‘similar goods’ to mean similar, same class of or same kind of goods – CESTAT Mumbai
• Cenvat credit not deniable for gap in statute – CESTAT notes non-mention of specific document in case of high sea sales – CESTAT Delhi
• Domestic supply under international competitive bidding – Compliance of procedures prescribed under Customs notification not required – CESTAT Mumbai
• Refund of Cenvat credit on exports – Credit reversal in GSTR-3B correct – CESTAT Bengaluru