{"id":245,"date":"2020-08-10T05:31:01","date_gmt":"2020-08-10T05:31:01","guid":{"rendered":"http:\/\/www.rnm.in\/blog\/?p=245"},"modified":"2025-01-30T10:55:45","modified_gmt":"2025-01-30T10:55:45","slug":"something-good-comes-out-of-every-crisis","status":"publish","type":"post","link":"https:\/\/www.rnm.in\/blog\/something-good-comes-out-of-every-crisis\/","title":{"rendered":"Something good comes out of every crisis"},"content":{"rendered":"\n<p>High Courts giving\nclarity on refunds and exports; Relief in late fee till September 30<sup>th<\/sup>\n2020 <\/p>\n\n\n\n<p><strong>Gujarat High Court, Ruling-1&nbsp;&nbsp;<\/strong> <br>Material Recycling Association of India &nbsp; <\/p>\n\n\n\n<p><strong>Issue Involved:<\/strong> <br>Determination of Place of Supply of Intermediary Services supplied outside India. <\/p>\n\n\n\n<p><strong>Facts:<\/strong> <br>The applicant, being registered person in taxable territory is rendering business promotion and marketing services (Intermediary services) outside India, for which consideration is received in convertible foreign exchange. They also facilitate the sale of recycled scrap goods for their foreign principals both within India and outside India.   <br>In pursuance with Section 2 of the IGST Act, the aforesaid transaction may be considered as Export of services and eligible for Zero Rated supply.  <\/p>\n\n\n\n<p>Further,\nthe law permits the refund of ITC consumed for Zero Rated Supplies.<\/p>\n\n\n\n<p>However,\nthe place of supply is determined as per Section 13 of IGST Act, 2017, for\nfollowing services shall be location of supplier of service-<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Banking<\/li>\n\n\n\n<li>Intermediary<\/li>\n\n\n\n<li>Hiring\ntransports including yatch excluding vessel and aircraft.<\/li>\n<\/ul>\n\n\n\n<p>In\naccordance with Section 13, the place of supply being in India the transaction\nwould be considered as domestic supply only despite complying with all the\nconditions of export of services under Section 2(6) the same would be exigible\nto CGST\/ SGST.<\/p>\n\n\n\n<p>A\nreference was made to Article 286 of Constitution which restricts imposition of\ntaxes where goods or services or both are supplied out of territory of India.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/p>\n\n\n\n<p>Hence,\nthe provision of Section 13(8)(b) read with Section 2(13) and 8(1) of IGST Act\nshould be said to be as unconstitutional. <\/p>\n\n\n\n<p><strong>Decision:<\/strong> <br>There is no difference is provision of intermediary service within India or outside India irrespective of amounts being received in Foreign Exchange and is chargeable to CGST\/ SGST. <\/p>\n\n\n\n<p><strong>Gujarat High Court, Ruling-2&nbsp;&nbsp;<\/strong> <br>VKC Footsteps India Pvt. Ltd. \u2013  <\/p>\n\n\n\n<p><strong>Issue Involved:<\/strong> <br>Refund of ITC paid on Intermediary Services against Inverted Duty Structure <\/p>\n\n\n\n<p><strong>Facts:<\/strong> <br>The dealer is manufacturer of shoes which is liable for GST at 5% and is eligible for refund of Inverted Duty Structure under Section 54(3) read with Rule 89(5). <\/p>\n\n\n\n<p>Refund of unutilized input\ntax credit where the credit is accumulated on the account of tax rate on inputs\nbeing higher than the tax rate on output supplies. Such situation has been\nreferred as inverted duty structure. Section 54(3) (ii) of the CGST Act lays\ndown the eligibility criteria for the grant of refund on account of inverted\nduty structure or condition precedent. The criterion being, that the \u2018rate of tax\non inputs being higher than the rate of tax on output supplies\u2019. <\/p>\n\n\n\n<p>The provision of\nRule 89 (5) of the CGST Rules, 2017 was substituted vide Notification No. 26\/2018-CT\ndated 13.6.2018 with retrospective effect, denying refund on the input tax\ncredit availed on input services and allowing refunds of ITC availed on inputs\nalone.<\/p>\n\n\n\n<p><strong>Decision:<\/strong> <br>The Court allowed the claim of the refund made by the petitioners considering the unutilised ITC of \u201cinput services\u201d as part of Net ITC for the purpose of calculation of the refund of the claim as per Rule 89 (5) of the CGST Rules,2017 for claiming refund under Sub-section 3 of Section 54 CGST Act,2017. <\/p>\n\n\n\n<p><strong>Notification 56\/2020- CGST:&nbsp;<\/strong> <br>All due dates which were extended till June 29 or 30, 2020 have been extended till August 30 or 31, 2020 respectively.  <\/p>\n\n\n\n<p><strong>Notification 57\/2020- CGST:<\/strong> <br>Extension of due dates of Form GSTR-3B return for period from \u201cJuly 2017 to July 2020\u201d to September 30, 2020 with late fee being capped at Rs. 500 per return and complete waiver off late fee for Nil Return.  <\/p>\n\n\n\n<p><strong>Notification 59\/2020- CGST:<\/strong> <br>Due date for GSTR-4 (composition dealer) is extended for FY 2019-20 to August 31, 2020  <\/p>\n\n\n\n<p><strong>Notification 60\/2020- CGST:<\/strong> <br>Revision of format of E-Invoice- Form GST INV-1- https:\/\/www.cbic.gov.in\/resources\/\/htdocs-cbec\/gst\/notfctn-60-central-tax-english-2020.pdf <\/p>\n\n\n\n<p><strong>Notification 61\/2020- CGST:<\/strong> <br>The council have extended the relaxation of E- Invoicing to Special Economic Zone and turnover less than Rs. 500 crore.  <\/p>\n\n\n\n<p class=\"has-text-align-center has-medium-font-size\"><strong>GST Calendar \u2013July, 2020<\/strong><\/p>\n\n\n\n<p><strong>GSTR-3B<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Extended Due Date<\/strong><\/td><td><strong>Due Date relates to<\/strong><\/td><td><strong>Interest<\/strong><\/td><td><strong>Late Fee<\/strong><\/td><\/tr><tr><td>September 30, 2020<\/td><td>Feb 2020<\/td><td>9% from June 30, 2020 to September 30, 2020<\/td><td>Rs. 500 per return, no late fees for nil return<\/td><\/tr><tr><td>September 30, 2020 <\/td><td>March 2020<\/td><td>9% from July 05, 2020 to September 30, 2020<\/td><td>Rs. 500 per return, no late fees for nil return <\/td><\/tr><tr><td>September 30, 2020 <\/td><td>April 2020<\/td><td>9% from July 09, 2020 to September 30, 2020<\/td><td>Rs. 500 per return, no late fees for nil return <\/td><\/tr><tr><td> September 30, 2020  <\/td><td>May 2020<\/td><td>9% from September 15, 2020 to September 30, 2020<\/td><td>Rs. 500 per return, no late fees for nil return <\/td><\/tr><tr><td> September 30, 2020  <\/td><td>June 2020<\/td><td>9% from September 25, 2020 to September 30, 2020<\/td><td>Rs. 500 per return, no late fees for nil return <\/td><\/tr><tr><td>August 20, 2020<\/td><td>July 2020<\/td><td>Interest at 18%<\/td><td>Rs. 100 per return (max. Rs. 500), no late fees for nil return<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>   <strong>Due dates for GSTR-1<\/strong>   <\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Extended Due Date<\/strong><\/td><td> <strong>Due Date relates to<\/strong><\/td><td> <strong>Late Fee<\/strong><\/td><\/tr><tr><td>July 10, 2020<\/td><td>March\u2019 2020<\/td><td>Rs. 200\/- per day<\/td><\/tr><tr><td>July 17, 2020<\/td><td>Jan to March\u2019 2020 (Qtrly Return)<\/td><td>Rs. 200\/- per day<\/td><\/tr><tr><td>July 24, 2020<\/td><td>April\u2019 2020<\/td><td>Rs. 50\/- per day<\/td><\/tr><tr><td>July 28, 2020<\/td><td>May\u2019 2020<\/td><td>Rs. 200\/- per day<\/td><\/tr><tr><td>August 03, 2020<\/td><td>April to June\u2019 2020 (Qtrly Return)    <\/td><td>Rs. 200\/- per day<\/td><\/tr><tr><td>August 05, 2020<\/td><td>June\u2019 2020    <\/td><td>Rs. 200\/- per day<\/td><\/tr><tr><td>August 11, 2020<\/td><td>July\u2019 2020<\/td><td>Rs. 200\/- per day<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>   <strong>Other Compliances<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Extended Due Date<\/strong> <\/td><td><strong>Due Date relates to<\/strong><\/td><td><strong>Late Fee<\/strong> <\/td><\/tr><tr><td>September 30, 2020<\/td><td>GSTR-9 for FY 2018-19<\/td><td>Rs. 200\/- per day, Not exceeding 0.25% of Turnover<\/td><\/tr><tr><td>August 31, 2020<\/td><td>Other Compliances<\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>High Courts giving clarity on refunds and exports; Relief in late fee till September 30th 2020 Gujarat High Court, Ruling-1&nbsp;&nbsp; Material Recycling Association of India &nbsp; Issue Involved: Determination of Place of Supply of Intermediary Services supplied outside India. Facts: The applicant, being registered person in taxable territory is rendering business promotion and marketing services (Intermediary services) outside India, for [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":251,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[14,15],"tags":[8,7,9,84],"class_list":["post-245","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","category-gst-department","tag-cgst","tag-gst","tag-gst-calendar","tag-gst-notifications"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Export of Services: Eligibility for Zero Rated Supply<\/title>\n<meta name=\"description\" content=\"The applicant is a registered person in taxable territory and is rendering business promotion and marketing 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