GST Calendar –Compliances for the month of April 2023.
| Nature of Compliances | Due Date |
| GSTR-7 (Tax Deducted at Source ‘TDS’) | May 10, 2023 |
| GSTR-8 (Tax Collected at Source ‘TCS’) | May 10, 2023 |
| GSTR-1 | May 11, 2023 |
| IFF- Invoice furnishing facility (Availing QRMP) | May 13, 2023 |
| GSTR-6 Input Service Distributor | May 13, 2023 |
| GSTR-2B (Auto Generated Statement) | May 14, 2023 |
| GSTR-3B | May 20, 2023 |
| GSTR-5 (Non-Resident Taxable Person) | May 20, 2023 |
| GSTR-5A (OIDAR Service Provider) | May 20, 2023 |
| PMT-06 (who have opted for QRMP scheme) | May 25, 2023 |
GST
Supreme Court set aside High Court Order imposing a condition of pre-deposit while granting bail
Case Name: Makhijani Pushpak Harish Vs State Of Gujarat (Supreme Court of India)
Appeal Number: Criminal Appeal No.1193 of 2023 (@ SLP (CRL.) No. 2868/2023)
Date of Judgement/Order: 19/04/2023
Aggrieved by the imposition of condition for deposit of bank guarantee, as a pre-deposit for bail, the appellant approached the High Court by filing Criminal Miscellaneous Application No. 710 of 2023 which came to be disposed of by the order dated 12.01.2023 impugned herein, whereby the High Court modified the condition of furnishing bank guarantee of an amount of Rs.3 crore by reducing it to Rs.1.5 crore. Such pre-condition of deposit of an amount or furnishing a bank guarantee has been the subject matter of consideration by this Court in a number of cases, where the condition of pre-deposit has been held to be bad. Reference may be made to an identical matter in Criminal Appeal No. 186/2023, Subhash Chouhan Vs. Union of India, this Court vide Judgment dated 20.01.2023 set aside the order passed by the High Court imposing a condition of deposit while granting bail to the appellant therein. It is also pertinent to note that in the said case, the learned Additional Solicitor General appearing for the Union of India/State had fairly stated that such a condition cannot be imposed while granting bail. The statement made by the learned Additional Solicitor General is recorded in the judgment and order dated 20.01.2023. SC held that the pre-condition of furnishing bank guarantee imposed by the High Court is not liable to be sustained and is hereby set aside.
Supreme Court Order whether mens rea is essential for levy of penalty under taxation laws
Case Name: State of Gujarat and Anr. Vs Saw Pipes Ltd. (Supreme Court of India)
Appeal Number: Civil Appeal No. 3481 of 2022 Date of Judgement/Order: 17/04/2023
The highest court of the country in this case was considering the levy of penalty and interest under the provisions of the Gujarat Sales Tax Act 1969 when the high court gave relief by setting aside interest and penalty in relation to tax paid on execution of works contract of coating of coal tar and enamel coating on pipes whereas the AO held it to be taxable under a different entry. While conceding the liability to pay tax at a higher rate before the High court, the respondent-assessee pleaded bonafide belief based on expert opinion, to be absolved of interest and penalty. Under the circumstances, on a strict interpretation of Section 45 and Section 47 of the Act, 1969, the only conclusion would be that the penalty and interest leviable under Section 45 and 47(4A) of the Act, 1969 are statutory and mandatory and there is no discretion vested in the Commissioner/Assessing Officer to levy or not to levy the penalty and interest other than as mentioned in Section 45(6) and Section 47 of the Act, 1969. It is required to be noted that the learned Tribunal specifically found that there was nothing on record to prove that there was in fact a bonafide belief of the respondent herein, that it would be required to pay tax at 2% only. As observed hereinabove and on plain reading of Section 45 and Section 47 of the Act, 1969 and as observed hereinabove, on the eventualities occurring under subsection (5) of Section 45, there shall be levied penalty mentioned in subsection (6) of Section 45 and the liability to pay the interest is incurred as mentioned in Section 47(4A).
The impugned judgment and order passed by the High Court on the grounds that the amount of tax has already been paid by the assessee–dealer; that the assessee–dealer was under the bonafide belief that it was liable to pay the tax at the rate of 2%, is unsustainable. The Supreme Court while considering the language of the statute, the element mens rea and decisions rendered in relation to the levy of penalty particularly Hindustan Steels Ltd Vs State of Orissa, Dharmendra Textiles and other cases, held that the language of the statute was very clear in this case and there was no option with the commissioner but to impose the penalty which was mandatory. This judgement will have repercussions under all the laws including income tax, GST and other laws while dealing with the imposition of penalty.
Case Law
ITC can be claimed during the revocation of cancelled GST registration
The Hon’ble Rajasthan High Court in M/s R.K. Jewelers v. Union of India [D.B. CWP No. 4236 of 2023 dated April 26, 2023] has held that the cancellation of the registration effected on the ground of non-filing of GST return, could be revoked and the assessee can claim Input Tax Credit (“ITC”) when the department considers the issue of revocation of such cancelled GST registration. Further held that, the assessee shall be entitled to lodge its claim for availment of ITC in respect of the period from the cancellation of the GST registration till the GST registration is restored.
Facts:
This petition has been filed by M/s R.K Jewelers (“the Petitioner”) challenging the order dated February 02, 2022 (“the Impugned Order”) passed by the Appellate Authority, Commercial Tax, Jodhpur, (“the Respondent”), whereby the GST registration of the Petitioner was cancelled on the ground of non-filing of GST return. Further, an appeal was filed by the Petitioner against the Impugned Order which was also rejected by the Appellate Authority.
Being aggrieved this petition has been filed.
Issue:
Whether ITC can be claimed during revocation of cancelled GST registration?
Held:
The Hon’ble Rajasthan High Court in D.B. CWP No. 4236 of 2023 has held as under:
- Observed that, a notification dated March 31, 2023 had been issued and as per the said notification, on the conditions being fulfilled, the cancellation of registration effected on the ground of non-filing of GST return, could be revoked.
- Opined that, the Petitioner is covered under the notification dated March 31, 2023 and the Petitioner can move an application before the competent authority with a prayer for restoration of its GST registration subject to fulfilment of the specified conditions.
- Directed the Petitioner to file an application for restoration of its GST registration before the competent authority, which shall consider and decide the application filed by the Petitioner in the light of the notification dated March 31, 2023.
- Further clarified that, when the competent authority considers the issue of revocation of cancellation of Petitioner’s GST registration, the Petitioner, shall be entitled to lodge its claim for availment of ITC in respect of the period from the cancellation of the registration till the registration is restored.
Relevant provision:
Section 30 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”):
“Revocation of cancellation of registration.
30. (1) Subject to such conditions as may be prescribed, any registered person, whose registration is cancelled by the proper officer on his own motion, may apply to such officer for revocation of cancellation of the registration in such manner, within such time and subject to such conditions and restrictions, as may be prescribed.
(a) by the Additional Commissioner or the Joint Commissioner, as the case may be, for a period not exceeding thirty days;
(b) by the Commissioner, for a further period not exceeding thirty days, beyond the period specified in clause (a).
(2) The proper officer may, in such manner and within such period as may be prescribed, by order, either revoke cancellation of the registration or reject the application:
Provided that the application for revocation of cancellation of registration shall not be rejected unless the applicant has been given an opportunity of being heard.
(3) The revocation of cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a revocation of cancellation of registration under this Act.”
RNM IDT News Bulletin
GST Collections Show Remarkable Growth Rate In Jammu and Kashmir: Official
The GST collections in Jammu and Kashmir stood at Rs 917.85 crore in April, marking a growth rate of 30.73 per cent compared to the first month of the last financial year, an official said on Monday.
The growth in SGST has been one of the highest in the country at 44.51 per cent over the same period last year, the official said, quoting the data released by the Union Ministry of Finance.
Similarly, IGST settlement showed a growth of 22 per cent in comparison to last financial year, the official said.
“The GST collections for the month of April this year are the highest ever recorded by the State Taxes Department since GST implementation. The total collections for the month of April 2023 touched Rs 917.85 crores, showing an increase of Rs 215.77 crores over last year April collections,” the official said.
He said the SGST cash collections have been rising in recent months significantly with April this year making national headlines with the record growth in J and K since inception of GST as the figures speak more than volumes.
The department has also increased the tax base from 1.17 lakhs in the year 2021-22 to 1.34 lakhs in the financial year 2022-23, the official said. He said around 25,982 new registrations were granted in the year 2022-23.
“The trend in increased revenue collections from the past one year by State Taxes Department is due to the myriad of steps taken by the department, which resulted in improvement in the compliance behavior by the taxpayers and proactive support provided to taxpayers by the department for making the compliances under Goods and Services Tax easier and smoother,” the official said.
At the same the department has been vigilant on taking actions against defaulters identified through various IT tools like BIFA, GST Prime, GST BO portal and as well as through human intelligence, the official said.
He said 8,800 cancellations have also been done in the financial year 2022-23.
“Honest taxpayers have also been facilitated and rewarded under the initiative taken by the department in tax awareness programme ‘KAR-TAVYA’ which was launched recently by Lt Governor Manoj Sinha.”
Integrated GST declines in April, reflects softening prices, import contraction
Even as gross Goods and Services Tax (GST) collection touched a record high of Rs 1.87 trillion in April, the mop-up from integrated GST on imports declined by 4.7% on year in the month, owing to contraction in imports, falling global commodity prices and the glitches in the Customs duty payments on the Electronic Cash Ledger portal.
According to official data, the integrated GST collection from imports was Rs 34,972 crore in April 2023 as against Rs 36,705 crore in April 2022. The cess collected from import of goods was slightly higher at Rs 901 crore in April 2023 as against Rs 857 crore a year ago. Integrated GST collections from imports in March and February 2023 was also higher at Rs 42,503 crore and Rs 35,689 crore, respectively.
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