Reference: Central Board of Indirect Taxes and Customs
Update:
Features of Making Payment on Voluntary Basis (Form GST DRC-03) on GST Portal
- Making Voluntary Payment on GST Portal: A facility is given to taxpayers to make payment on voluntary basis, through Form GST DRC-03 (refer Rule 142(2) or 142(3) of the CGST Rules, 2017). Login into GST Portal and navigate to Services > User Services > My Applications and Select the Intimation of Voluntary Payment – DRC – 03, from the Application Type drop-down list.
- When to make Payment Voluntary Payment: Payment can be voluntarily made by taxpayer for a self-ascertained liability or in response to the show cause notice (SCN) raised by the tax authorities, u/s 73 or 74 of the CGST Act, 2017, within 30 days of issuance of SCN or even before issuance of the SCN.
- Partial Payment not allowed: GST Portal does not allow for making partial payments of the amount stated in the SCN.
- Cause of Payment: Payments through Form GST DRC-03 can be made for any causes like Audit, Investigation, Voluntary Payment, SCN, Annual Return, Reconciliation Statement or Others.
- Saving Draft DRC 03 Application: Draft of Application for intimation of voluntary payment can be saved for a maximum period of 15 days. If the same is not filed within 15 days, the saved draft will be purged. To view the saved application, navigate to Services > User Services > My Saved Applications option.
- Using Payment Reference Number: If payment has been made and payment reference number (PRN) has been generated, but application in Form GST DRC-03 has not been filed, then in such cases, application available in ‘My Saved Applications’ need to be selected and using PRN already generated, it may be filed. However, if a period of fifteen days has elapsed, then, details in Form need to be filled up again. PRN generated already can be used for filing the application.
- Filing Form GST DRC 03: Taxpayers are required to file Form GST DRC-03 using DSC or EVC, as the case may be, after making payment. The status will change to “Pending for approval by Tax officer”. However, it may be noted that, no approval of tax officer is needed on earlier application, while making another voluntary payment using FORM GST DRC 03.
- Acknowledgment by Tax Official: Upon filing of Form GST DRC-03, the tax officer will issue an Acknowledgement in Form GST DRC-04(Acknowledgement of Acceptance of voluntary payment). There is no bar on making another payment on voluntary basis by a taxpayer, pending issuance of acknowledgement by the tax officer.
Update:
Clarification regarding GST rates & classification (goods):
CBIC has made clarifications on the following
(i) Classification of leguminous vegetables such as grams when subjected to mild heat treatment: Such goods if branded and packed in a unit container would attract GST at the rate of 5%. In all other cases such goods would be exempted from GST.
(ii) Almond Milk: “almond milk” would be classified as “Fruit Pulp or fruit juice-based drinks” and attract 12% GST.
(iii) Applicable GST rate on Mechanical Sprayer: “mechanical sprayers” of all types whether or not hand operated (like hand operated sprayer, power operated sprayers, battery operated sprayers, foot sprayer, rocker etc.) and attracts 12% GST.
(iv) Taxability of imported stores by the Indian Navy : Imported stores for use in navy ships are entitled to exemption from GST.
(v) Applicable GST rate on parts for the manufacture solar water heater and system: Parts including Solar Evacuated Tube falling under chapter 84, 85 and 94 for the manufacture of solar water heater and system will attract 5% GST.
(vi) Applicable GST on parts and accessories suitable for use solely or principally with a medical device: 12% IGST would be applicable on the parts and accessories suitable for use solely or principally with a medical device.
(vii) Taxability of goods imported under lease.
Implication:
This will bring clarity in taxpayers regarding GST rate and Classification of Goods
Update:
Clarification on scope of support services to exploration, mining or drilling of petroleum crude or natural gas or both:
CBIC has clarified that most of the activities associated with exploration, mining or drilling of petroleum crude or natural gas fall under heading 9986. A few services particularly technical and consulting services relating to exploration also fall under heading 9983. Therefore, following entry has been inserted under heading 9983 with effect from 1st October 2019:
“Other professional, technical and business services relating to exploration, mining or drilling of petroleum crude or natural gas or both”
Implication:
Scope of the entry at Sr. 24 (ii) under heading 9986 of Notification No. 11/2017- Central Tax (Rate) shall be governed by the explanatory notes to service codes 998621 (Support services to oil and gas extraction) and 998622 (Support services to other mining n.e.c.) of the Scheme of Classification of Services
Update:
Levy of GST on the service of display of name or placing of name plates of the donor in the premises of charitable organisations receiving donation or gifts from individual donors:
CBIC has clarified that where all the three conditions are satisfied namely the gift or donation is made to a charitable organization, the payment has the character of gift or donation and the purpose is philanthropic (i.e. it leads to no commercial gain) and not advertisement, GST is not leviable.
Implication:
If there is no reference or mention of any business activity of the donor which otherwise would have got advertised by display of name or placing of name plates of the donor in the premises of charitable organisations receiving donation or gifts from individual donors shall be exempted from GST
Update:
Clarification on applicability of GST exemption to the DG Shipping approved maritime courses conducted by Maritime Training Institutes of India:
CBIC has clarified that Maritime Training Institutes and their training courses are approved by the Director General of Shipping which are duly recognised under the provisions of the Merchant Shipping Act, 1958 read with the Merchant Shipping (standards of training, certification and watch-keeping for Seafarers) Rules, 2014.
Implication:
The Maritime Institutes are educational institutions under GST Law and the courses conducted by them are exempt from levy of GST.
Update:
MCA amended Companies (Cost Records and Audit) Amendment Rules.
Clarification regarding determination of place of supply in case of software/design services related to Electronics Semi-conductor and Design Manufacturing (ESDM) industry:
CBIC has clarified that the place of supply of software/design by supplier located in taxable territory to service recipient located in non-taxable territory by using sample prototype hardware / test kits in a composite supply, where such testing is an ancillary supply, is the location of the service recipient as per Section 13(2) of the IGST Act. Provisions of Section 13(3)(a) of IGST Act do not apply separately for determining the place of supply for ancillary supply in such cases.
Implication:
This will bring clarity in taxpayers determining the place of supply of services in ESDM industry
Update:
Clarification regarding taxability of supply of securities under Securities Lending Scheme, 1997:
CBIC has clarified that:
The activities of the intermediaries facilitating lending and borrowing of securities for commission or fee are also taxable separately.
The supply of lending of securities under the scheme is classifiable under heading 997119 and is leviable to GST@18% under Sl. No. 15(vii) of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 as amended from time to time.
For the past period i.e. from 01.07.2017 to 30.09.2019, GST is payable under forward charge by the lender and request may be made by the lender (supplier) to SEBI to disclose the information about borrower for discharging GST under forward charge. The nature of tax payable shall be IGST. However, if the service provider has already paid CGST / SGST / UTGST treating the supply as an intra-state supply, such lenders shall not be required to pay IGST again in lieu of such GST payments already made.
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Implication:
With effect from 1st October, 2019, the borrower of securities shall be liable to discharge GST as per Sl. No 16 of Notification No. 22/2019-Central Tax (Rate) dated 30.09.2019 under reverse charge mechanism (RCM). The nature of GST to be paid shall be IGST under RCM.
Reference: Central Board of Direct Taxes
Update:
Clarifications in respect of option exercised under section 115BAA of the Income Tax Act, 1961 inserted through The Taxation Laws (Amendment) Ordinance 2019
CBDT has clarified that:
Allowability of brought forward loss on account of additional depreciation: It may be noted that clause (i) of sub-section (2) of the newly inserted section 115BAA, inter alia provides that the total income shall be computed without claiming any deduction under clause (iia) of sub-section ( 1) of section 32 (additional depreciation); and clause (ii) of the said sub-section provides that the total income shall be computed without claiming set off of any loss carried forward from any earlier assessment year if the same is attributable, inter alia, to additional depredation.
Allowability of brought forward MAT credit: As the provisions of Section 115JB relating to MAT itself shall not be applicable to the domestic company which exercises option under Section 115BAA. it is hereby clarified that the tax credit of MAT paid by the domestic company exercising option under section 115BAA of the Act shall not be available consequent to exercising of such option.
A domestic company which would exercise option for availing benefit of lower tax rate under section 115BAA shall not be allowed to claim set off of any brought forward loss on account of additional depreciation for an Assessment Year for which the option has been exercised and for any subsequent Assessment Year.
Implication:
These norms will not be applicable to debt ETFs, tracking debt indices having constituents as government securities, treasury bills and tri-party repo.
Reference: Institute of Chartered Accountants of India
Update:
Exposure Draft on Interest Rate Benchmark Reform :
Accounting Standards Board (the Board) of the Institute of Chartered Accountants of India, has issued Exposure Draft on Interest Rate Benchmark Reform (Amendments to Ind AS 109 and Ind AS 107) for comments
Implication:
Comments should be submitted using one of the following methods, so as to receive not later than
November 8, 2019
