Enmiendas al GST según lo recomendado en la 47.ª reunión del Consejo del GST

In the 47th GST Council meeting held on 28th June and 29th June 2022, GST Council recommended various amendments in GST Rate on goods and services to streamline GST refund due to inverted duty structure, removed various exemptions on goods and services, suggested changes to facility smooth trade operations. To give effect to GST amendments suggested by GST Council, CBIC has issued various notifications and circulars.

Following is the gist of notifications issued to give effect to GST Council suggestions:

1. Waiver from filing GSTR-9 (N/No. 10/2022–Central Tax dated 05.07.2022)

Filing of GSTR-9 (Annual return) has been exempted for FY 2021-22 for the registered person whose aggregate turnover is up to 2 Crores during the year.

2. Extension of Due dates of CMP 08 and GSTR 4

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3. Central Goods and Service Tax (Amendment) Rules, 2022 (N/No. 14/2022–Central Tax dated 05.07.2022)

3.1 Automatic Revocation of suspension of GST Registration 

• Presently, proper officers may suspend GST registration if GST returns are not filed for more than 6 months and upon the furnishing of GST returns, the assessee has to file an application for revocation of suspension.
• However, as per amendment in Rule 21A(4) of CGST Rules, suspended GST registration will automatically become revoked upon furnishing all pending returns by the assessee.

3.2 Transfer of balance lying in Electronic Cash Ledger to Electronic cash ledger of a distinct person

• Till now no option is available to transfer the balance lying electronic cash ledger of one GSTIN to the Electronic Cash Ledger of another GSTIN.
• Therefore, a person having GST registration in more than one state was genuinely facing the hardship of working capital blockage because he may have a balance lying in the cash ledger in one state and he is required to deposit GST liability in another state in cash.
• Now an option is provided to transfer the balance lying in the electronic cash ledger under CGST & IGST of one GSTIN to CGST/IGST of another GSTIN of distinct persons.
• However, no such transfer shall be allowed if the said registered person has any unpaid liability in his electronic liability register.
• Distinct person means GST registration of the same person in the same or different states, i.e., GSTINs with the same PAN.

3.3 Interest on Delay payment of Taxes

Manner of calculation of interest on delayed payment of GST is provided in new Rule 88B in the following manner:

• Delay filing of GST Return:

1. In case of delay in filing of GST return, Interest shall be payable on such amount of GST liability which is paid through cash ledger.
2. Interest shall be calculated from the due date of filing of return till the actual date of filing of return.

• Wrong availment and utilization of ITC

1. In case of wrong availment of ITC, interest shall be payable only on the amount of ITC which is wrongly availed as well as utilized. Therefore, ITC availed but not utilized shall not attract any interest liability.
2. Interest shall be calculated from the date of utilization of ITC till the date of reversal of ITC.
3. ITC shall be considered as utilized only if the balance in electronic credit ledger falls below the amount of ITC wrongly availed. The utilized amount shall be the difference of ITC wrongly availed and balance lying in electronic credit ledger.

P. ej.

1. ITC wrongly availed: INR 1,50,000
2. Balance lying in electronic Credit Ledger: INR 1,25,000
3. Wrong ITC utilized: INR 25,000

4. Date of the utilization of ITC shall be the earlier of the following dates for the month in which the balance in Electronic Credit ledger is utilized:
   1. Due date of filing return of GSTR-3B
   2. Actual Date of filing of return of GSTR-3B.

• All other cases:

1. In all other cases, Interest shall be paid on taxes that remain unpaid and interest shall be calculated from the due date of payment of taxes till the date of actual payment of tax.
2. E.g. Supplier charged GST on the sale of goods @ 12% instead of 5%. Interest shall be payable on 7%.

Nota: Las disposiciones de esta norma entrarán en vigor con carácter retroactivo desde el 1 de julio de 2017

3.4 Otros cambios

1. A efectos del cálculo del valor de los suministros exentos para determinar la reversión del crédito fiscal de los insumos (Input Tax Credit) según la Regla 43, no se considerará el valor del suministro de los vales de crédito fiscal (Duty Credit Scrips).

2. De acuerdo con la enmienda a la Regla 46, en los casos en que la persona registrada no esté obligada a generar una factura electrónica, incluso cuando su facturación agregada supere el límite establecido, deberá incluir la siguiente declaración en la factura:

“Declaro/Declaramos que, aunque nuestra facturación agregada en cualquier ejercicio financiero anterior desde 2017-18 en adelante sea superior a la facturación agregada notificada en la subregla (4) de la regla 48, no estamos obligados a preparar una factura en virtud de las disposiciones de dicha subregla.”:

3. El GST puede depositarse a través de IMPS o UPI desde cualquier banco.

4. Enmienda en las tasas del GST

Tal como sugirió el Consejo del GST, el Departamento ha modificado diversas tasas de GST sobre bienes y servicios mediante la Notificación n.º 3/2022-CGST Rate hasta la Notificación n.º 11/2022-CGST Rate, con fecha del 13 de julio de 2022.

Las enmiendas en las tasas de GST de bienes y servicios son las siguientes:

4.1 Racionalización de tasas para eliminar la estructura arancelaria invertida

• Una estructura arancelaria invertida ocurre cuando la tasa de GST sobre los insumos es superior a la tasa de GST sobre el producto final, lo que resulta en la acumulación de crédito fiscal de los insumos.
• Para evitar una estructura arancelaria invertida, el Consejo del GST ha recomendado un aumento en las tasas de GST sobre ciertos artículos, tales como:

A. BIENES

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• Asimismo, no se permitirá la devolución del crédito fiscal (ITC) acumulado debido a una estructura arancelaria invertida para los siguientes bienes:
  • Aceite comestible
  • Carbón

B. SERVICIOS

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4.1.2 Otros cambios en las tasas de GST

• La tasa de GST para equipos médicos ha disminuido, mientras que la tasa de GST sobre diamantes pulidos ha aumentado.
• Los cambios principales son los siguientes:

A. BIENES

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• Además, la tasa de GST sobre el transporte de bienes y pasajeros por teleférico se ha reducido del 18% al 5% (con crédito fiscal sobre servicios), y la tasa de GST sobre el alquiler de camiones/transporte de mercancías (cuando se incluye el costo del combustible) se ha reducido del 18% al 12%.

4.1.3 Retirada de exenciones

• Se retira la exención de GST para cheques, mapas o gráficos similares de todo tipo, y se ha impuesto un GST del 12%/18%.
• Se ha retirado la exención parcial concedida al petróleo/metano de capas de carbón, instrumentos científicos y técnicos suministrados a institutos públicos de investigación y residuos electrónicos; ahora se aplicará un GST del 12%/18%.
• La exención sobre diversos servicios ha sido racionalizada, por ejemplo:
  • Se ha retirado la exención sobre el alquiler de viviendas residenciales a entidades comerciales (personas registradas).
  • Se ha retirado la exención sobre los servicios prestados por el RBI, IRDA, SEBI y FSSAI.
  • El alojamiento en hoteles con un precio de hasta 1000 rupias/día estará gravado al 12%.

4.1.4 Clarification of various issues under GST

• GST Council has clarified GST rates applicable on various goods and services to avoid ambiguity such as :

1. Clarification on GST Rate of goods

• Electric vehicles, whether or not fitted with a battery pack, are eligible for the concessional GST rate of 5%.
• All fly ash bricks attract the same concessional rate irrespective of fly ash content
• Sewage-treated water is exempted from GST and is not the same as purified water provided in S. No. 99 of notification 2/2017-CT(Rate). The word 'purified' is being omitted to make this amply clear.

2. Clarification of GST Rate of Services

• Services associated with transit cargo both to and from Nepal and Bhutan are covered by an exemption under entry 9B of notification No. 12/2017-CT(R) dated 28.06.2017.
• Selling of space for advertisement in souvenirs published in the form of books is eligible for concessional GST at 5%.
• Renting a vehicle with an operator for transportation of goods on a time basis is classifiable under Heading 9966 (rental services of transport vehicles with operators) and attracts GST at 18%. GST on such renting where the cost of fuel is included in the consideration charged is being prescribed at 12%.

4.1.5 GST under RCM

Following new services have been added under Reverse Charge Mechanism

1. Goods Transport Agency (GTA)

• Till now, GTA had following two options to pay GST

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• Now, Government has provided an option to the GTA to pay GST under Forward Charge in the following two manners:

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• For opting to pay GST under forwarding Charge, GTA shall issue the tax invoice to the recipient charging GST at applicable rates and shall also make the following declaration on an invoice:

“I/we have taken registration under the CGST Act, 2017 and have exercised the option to pay tax on services of GTA in relation to transport of goods supplied by us during the Financial Year _____ under forwarding charge.”

• For payment of GST under forwarding Charge, GTA has to exercise the option of payment of GST under forwarding Charge by making a declaration in Annexure V on or before 15th March of the preceding Financial Year. For FY 2022-23, GTA may exercise the option by 16th August 2023.

2. Renting of Residential Dwelling

Service of renting of a residential dwelling provided to a registered person is now taxable under Reverse Charge. GST on renting of residential dwelling will be charged in the following manner:

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Please note that the above-mentioned list of GST rate amendments is not exhausted and you are suggested to refer to the respective notification to ascertain the applicable GST rate.