The Central Board of Indirect Taxes and Customs (CBIC) on June 24, 2020, publishes the Central Goods and Service Tax (Seventh Amendment) Rules, 2020, to further amend the Central Goods and Service Tax, 2017.

Following are the amendments in Central Goods and Service Tax Rules, 2017:

Rule 7 which talks about the rate of tax of the composition levies table has been substituted with the new table.

1)      Manufacturers, other than manufacturers of such goods as may be notified by the Government shall have half per cent. of the turnover in the State or Union territory.

2)      Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II shall have two and a half per cent. of the turnover in the State or Union territory.

3)      Any other supplier eligible for composition levy under sub-sections (1) and (2) of section 10 shall have half per cent. of the turnover of taxable supplies of goods and services in the State or Union territory.

4)      Registered persons not eligible under the composition levy under sub-sections (1) and (2), but eligible to opt to pay tax under sub-section (2A), of section 10 which specifies Composition Levy Scheme shall have three percent of the turnover of taxable supplies of goods and services in the State or Union territory.

They will come into force with effect from April 01, 2020.

[Notification No. 50/2020- Central Tax]

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The Bihar Tax Commissioner on June 22, 2020 appoints a date on which the provisions of Bihar Goods and Services Tax (Fifth Amendment) Rules, 2020 issued vide Notification No. S.O. 125 shall come into force. It has appointed June 08, 2020 on which the provisions of such Rules shall come into force.

[Notification No. S.O. 130]

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The Bihar Tax Commissioner on June 22, 2020 has decided to extend the time limit for issuance of order in terms of the provisions of Section 54 of the Bihar Goods and Service Tax Act, 2017 falls during the period from March 20, 2020 to June 29, 2020. The time limit for such notices has been extended for 15 days after the receipt of reply to the notice from the registered person or June 30, 2020, whichever is later.

[Notification No: S.O. 131]

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The Bihar Tax Commissioner on June 22, 2020 amends the notification issued vide Notification No. S.O. 129 dated June 09, 2020 regarding e-way bill.

It is specified that where an e-way bill has been generated under Rule 138 of the Bihar Goods and Services Tax Rules, 2017 on or before March 24, 2020 and whose validity has expired on or after March 20, 2020, the validity period of such e-way bill shall be deemed to have been extended till the June 30, 2020.

[Notification No: S.O.132]

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The Central Board of Indirect Taxes and Customs (CBIC) on June 22, 2020, salient features of the secure electronic communication of the Final Let Export Order (LEO) copy of the Shipping Bill and the Gatepass copy of Shipping Bill.

1. The LEO shall now be circulated via pdf which will serve multiple purposes as well. There is no need of a printout copy of the shipping bill now. The pdf must be digitally signed and encrypted with a QR code. The QR code must be tamper proof and shall be digitally signed by the CBIC. Version number shall embed in the QR Code as well. 
2. The shipping bill should be showed electronically as well. The e-gate pass shall be electronically shown as well. 
3. The QR code shall be of two types, one shall be used for the e-gate pass. The other one shall be used for the bulk and other bulk cargo packages. 

[Circular No: 30/2020- Customs]

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The Central Board of Indirect Taxes and Customs (CBIC) on June 19, 2020, publishes the Central Goods and Services Tax (Sixth Amendment) Rules, 2020, to further amends the Central Goods and Services Tax Rules, 2017.

The following amendment is as under:

Under rule 26 (1) which specifies the method of authentication, second proviso has been substituted, namely:

1. A registered person registered under the provisions of the Companies Act, 2013 shall, during the period from April 21, 2020 to September 30, 2020, also be allowed to furnish the return in FORM GSTR-3B verified through electronic verification code (EVC).
2. A registered person registered under the provisions of the Companies Act, 2013 shall, during the period from May 27, 2020 to September 30, 2020, also be allowed to furnish the details of outward supplies in FORM GSTR-1 verified through electronic verification code (EVC).

[Notification No. 48 /2020-Central Tax]

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The Government of Goa on June 16, 2020 has issued the Goa Goods and Service Tax (Amendment) Ordinance, 2020 to further amend the Goa Goods and Services Tax Act, 2017.

The followings are the amendments:-

1. Section 29(c) has been substituted stating that the taxable person is no longer liable to be registered or intends to opt out of the registration voluntarily.
2. Section 51(3) has been substituted, stating that a certificate of tax deduction at source shall be issued in such form and in such manner as may be prescribed.
3. In Section 122, a new sub-section (1A) has been inserted, namely:-

“Any person who retains the benefit of a transaction covered under clauses (i), (ii), (vii) or clause (ix) of sub- -section (1) and at whose instance such transaction if conducted, shall be liable to a penalty of an amount equivalent to the tax evaded or input tax credit availed of or passed on.”

[Ordinance No. 5 of 2020]

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The Rajasthan Tax Department on June 15, 2020, issues clarification on levy of GST on Director’s remuneration. 

A lot of doubts were raised under this issue and under Rajasthan Goods and Service Tax Act, 2017, the clarification was provided under two categories. 

The main issue to be decided is whether a ‘Director’ is an employee of the company. In this regard, from the perusal of the relevant provisions of the Companies Act, 2013, it can be inferred that: 

1. The definition of a whole time-director under section 2(94) of the Companies Act, 2013 is an inclusive definition, and thus he may be a person who is not an employee of the company. 
2. The definition of “independent directors‟ under section 149(6) of the Companies Act, 2013, read with Rule 12 of Companies (Share Capital and Debentures) Rules, 2014 makes it amply clear that such director should not have been an employee or proprietor or a partner of the said company, in any of the three financial years immediately preceding the financial year in which he is proposed to be appointed in the said company.
3. Hence, in respect of such directors who are not the employees of the said company, the services provided by them to the Company, in lieu of remuneration as the consideration for the said services, are clearly outside the scope of Schedule III of the CGST Act and are therefore taxable.
4. Therefore, it is hereby clarified that part of Director’s remuneration which are declared as “Salaries” in the books of a company and subjected to TDS under Section 192 of the IT Act, are not taxable being consideration for services by an employee to the employer in the course of or in relation to his employment in terms of Schedule III of the CGST Act, 2017.

[GST Circular No. 10/2020]

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The Rajasthan Tax Department on June 15, 2020, clarifies on refund related issues on Input Tax Credit in respect of invoices whose details are not reflected in the FORM GSTR-2A of the applicant.

CBIC after examining the matter and decided that the refund of accumulated ITC shall be restricted to the ITC as per those invoices, the details of which are uploaded by the supplier in FORM GSTR-1 and are reflected in the FORM GSTR-2A of the applicant.

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This order does not in any way impact the refund of ITC availed on the invoices / documents relating to imports, ISD invoices and the inward supplies liable to Reverse Charge (RCM supplies) etc. It is hereby clarified that the treatment of refund of such ITC relating to imports, ISD invoices and the inward supplies liable to Reverse Charge (RCM supplies) will continue to be same as it was before the issuance of Circular No. 05/2020 dated April 04, 2020.

[GST Circular No. 09/2020]

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