June, 2021 – Issue No. I

Announcements made by the GST council (to be implemented through circulars/notifications):

Trade Facilitation Measures:
Interest and Late fee waiver – Click here.
Extended due dates – Click here.
Amnesty Scheme for belated filing of GSTR – 3B – Click here.
Rationalization of late fee – Click here.

Important GST Clarifications:
Land owner promoters can utilize credit of GST charged to them by developer promoters in respect of such apartments that are subsequently sold by the land owner and on which GST is paid. The developer promoter shall pay GST any time before or at the time of issuance of completion certificate.

GST on Maintenance, Repair and Operation services in respect of ships/vessels to be reduced to 5% (from 18%). Place of Supply of B2B supply of MRO Services in respect of ships/ vessels would be location of recipient of service.

Milling of wheat/paddy into flour (fortified with minerals etc. by millers or otherwise)/rice to Government/ local authority etc. for distribution of such flour or rice under Public Distribution System to be exempt from GST if the value of goods in such composite supply does not exceed 25%.

Services to educational institutions by way of supply of food is exempted irrespective of funding of such supplies (corporate donations).

GST is payable on annuity payments received as deferred payment for construction of road.Exemption from IGST has been given upto 31.08.2021 for the following goods, if imported on payment basis, for donating to the government or on recommendation of state authority to any relief agency or even “free of cost” for free distribution:

1. medical oxygen,
2. oxygen concentrators and
3. other oxygen storage and transportation equipment,
4. certain diagnostic markers test kits and
5. COVID-19 vaccines, etc.
6. Amphotericin B

GST rate of 12% to apply on parts of sprinklers/ drip irrigation systems falling under tariff heading 8424 (nozzle/laterals) even if these goods are sold separately.

Changes in Compliances:a. The filing of annual return in FORM GSTR-9 / 9A to be optional for taxpayers having aggregate annual turnover upto Rs 2 Crore;

b. The reconciliation statement in FORM GSTR-9C will be required to be filed by taxpayers with annual aggregate turnover above Rs 5 Crore.

c. Self-certification of the reconciliation statement (GSTR 9C), instead of getting it certified from chartered accountants/cost accountants – amendment made vide Finance Act, 2021 to be notified so that it will be applicable for Annual Return FY 2020-2021.

New Rule for computation of fair market value of capital assets inserted.

Limitation time for filing of appeals before the CIT(Appeals) – limitation which is more beneficial to the assessee to be taken. Further, limitation period extended till further orders as ordered by the Hon’ble Supreme Court in Suo Motu Writ Petition (Civil) No.3 of 2020 vide order dated 27th April 2021.