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NOTIFICATIONS UNDER GST LAWS

NOTIFICATIONS UNDER GST LAWS

				By: Mr. M. GOVINDARAJAN
				January 11, 2023
All Articles by: Mr. M. GOVINDARAJAN View Profile

Contents

Introduction

Notification means the act of telling someone something.
The change is inevitable and law is not an exception to this.
Changing laws always by legislation is not possible.
For this purpose any act will delegate the power to the respective Government in carrying out the provisions of the Act by making rules which are consistent with the provisions of the Act, through notifications.

Power to the Government to issue notifications under GST laws

Section 164(1) of the CGST Act provides that the Central Government may, on the recommendations of the Council, by notification, make rules for carrying out the provisions of this Act.

Section 164 (2) provides that without prejudice to the generality of the provisions of sub-section (1), the Government may make rules for all or any of the matters which by this Act are required to be, or may be, prescribed or in respect of which provisions are to be or may be made by rules.

Section 164 (3) provides that the power to make rules conferred by this section shall include the power to give retrospective effect to the rules or any of them from a date not earlier than the date on which the provisions of this Act come into force.

Section 164 (4) provides that any rules made under sub-section (1) or sub-section (2) may provide that a contravention thereof shall be liable to a penalty not exceeding Rs.10,000/-

Similar powers are given to the respective State Government/Central Government to issue notifications for making rules by respective State/Union Territory GST Acts.

Powers to Board

Section 165 of the CGST Act provides that the Board may, by notification, make regulations consistent with this Act and the rules made there under to carry out the provisions of this Act.

Notifications issued by Central Government

The number of notifications issued by the Central Government from the year 2016 to 07.01.2023 are-

Central Tax -

For the year 2017 – 79 Notifications;
For the year 2018 – 80 Notifications;
For the year 2019 – 81 Notifications;
For the year 2020 – 104 Notifications.
For the year 2021 – 40 Notifications;
For the year 2022 – 28 Notifications;
For the year 2023 – (upto 07.01.2023) – 01 Notification.

Central Tax (Rate) –

For the year 2017 – 54 Notifications;
For the year 2018 - 32 Notifications;
For the year 2019 – 31 Notifications;
For the year 2020 – 5 Notifications;
For the year 2021 – 23 Notifications;
For the year 2022 – 15 Notifications;
For the year 2023 – (up to 07.01.2023) – 00 Notification.

Integrated tax-

For the year 2017 – 13 Notifications;
For the year 2018 – 4 Notifications;
For the year 2019 – 5 Notifications;
For the year 2020 – 6 Notifications;
For the year 2021 – 3 Notifications;
For the year 2022 – 00 Notification;
For the year 2023 – (up to 07.01.2023) – 00 Notification.

Integrated tax (Rate)-

For the year 2017 –59 Notifications;
For the year 2018 – 33 Notifications;
For the year 2019 – 30 Notifications;
For the year 2020– 5 Notifications;
For the year 2021 – 23 Notifications;
For the year 2022 – 15 Notifications;
For the year 2023 – (upto 07.01.2023) – 00 Notification.

Union Territory tax -

For the year 2017 – 17 Notifications;
For the year 2018 – 15 Notifications;
For the year 2019 – 3 Notifications;
For the year 2020 – 2 Notifications;
For the year 2021 – 2 Notifications;
For the year 2022 – 4 Notifications;
For the year 2023 – (up to 07.01.2023) – 00 Notification.

Union Territory Tax (Rate)-

For the year 2017 – 54 Notifications;
For the year 2018 – 32 Notifications;
For the year 2019 –31 Notifications;
For the year 2020– 5 Notifications;
For the year 2021 – 23 Notifications;
For the year 2022 – 15 Notifications;
For the year 2023 – (up to 07.01.2023) - 00 Notification.

Compensation Cess-

For the year 2017 – 1 Notification;
For the year 2018 – 1 Notification;
For the year 2019 – 1 Notification;
For the year 2020 – 0 Notification;
For the year 2021 – 0 Notification;
For the year 2022 – 1 Notification;
For the year 2023 – (up to 07.01.2023) – 00 Notification.

Compensation Cess (Rate)-

For the year 2017 – 9 Notifications;
For the year 2018 – 2 Notifications;
For the year 2019 – 3 Notifications;
For the year 2020 - 0 Notification;
For the year 2021 – 2 Notifications;
For the year 2022 – 0 Notification;
For the year 2023 – (up to 07.01.2023) – 00 Notification.

Laying of rules, regulations and notifications

Section 166 of the CGST Act provides every rule made by the Government, every regulation made by the Board and every notification issued by the Government under this Act, shall be laid, as soon as may be after it is made or issued, before each House of Parliament, while it is in session, for a total period of 30 days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or in the notification, as the case may be, or both Houses agree that the rule or regulation or the notification should not be made, the rule or regulation or notification, as the case may be, shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation or notification, as the case may be.

Advance Ruling

The application for Advance Ruling on applicability of a notification issued under the provisions of Section 97(2) (b) is allowed.

Case laws

Notification No.02/2018-Central Tax (Rate)

In re ‘Yashaswini Enterprises’- 2019 (11) TMI 161 - AUTHORITY FOR ADVANCE RULING, KARNATAKA, the applicant is engaged in drilling of bore wells, in pursuance of work orders issued by some of the agencies under Social Welfare Department of Karnataka, to small and marginal land owners of scheduled castes and scheduled tribes and other backward class.

The applicant sought for advance ruling as to the applicability of Notification No. 02/2018 - Central Tax (Rate), dated 25.01.2018 with respect to Sl. No. 3A of the Notification to the applicant.

The Authority for Advance Ruling observed that notwithstanding that beneficiary of bore wells are small and marginalized SC/ST farmers, aforesaid service is not being supplied to them but to Government corporations under special schemes for irrigation. The consideration for work is also paid by such Government Corporations which are Government entities inasmuch as Government owns 100% of their share capital. The value of goods in the entire works contract is less than 25% of the entire composite supply. Further the irrigation activity is fully covered under Article 243G of the Constitution of India and implementation of individual irrigation work having been entrusted to Panchayats in Karnataka.

The Authority for Advance Ruling ruled that the Notification is applicable to the applicant and the applicant is entitled for full exemption from GST under Sl. No. 3A of the Notification No.12/2017 - Central Tax (Rate) as amended.

Notification No. 20/2018 - Central Tax (Rate)

In re ‘Uttaranchal Filament (India)’ – 2020 (2) TMI 854 - AUTHORITY FOR ADVANCE RULING - UTTARAKHAND, the applicant sought for an advance ruling on whether the meaning of the word ‘lapse’ in Notification No. 20/2018 - Central Tax (Rate) would mean lapse for refund or lapse for utilization of input tax credit for payment of output tax liability.

The applicant sought for the applicability of the above said Notification in his case. The Authority for Advance Ruling analyzed the Notification No. 5/2017 - Central Tax (Rate), dated 28.06.2017 as amended vide Notification No. 44/2017 - Central Tax (Rate), dated 14.11.2017 and the Notification No.20/2018 - Central Tax (Rate).

The Authority for Advance Ruling found that refund is not available to accumulated input tax credit due to inverted duty structure in respect of specified inputs which remain unutilized.

In view of the Notifications the Authority for Advance Ruling ruled that the Notification No. 20/2018 - Central Tax (Rate) dated 26.07.2018 deals with the refund of inverted duty structure only.

Notification No. 12/2017 - Central Tax (Rate)

In re ‘Sri DMS Hospitality Private Limited’ – 2019 (10) TMI 1092 - AUTHORITY FOR ADVANCE RULING, KARNATAKA the applicant sought for advance ruling on the applicability of GST Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017 ‘Services by way of renting of residential dwelling for use as residence’ is exempt from GST.

The Authority for Advance Ruling ruled that the Entry No. 12 of Notification No. 12/2017 - Central Tax (Rate), dated 28.06.2017 – ‘services by way of renting of residential dwelling for use as residence’ is not applicable to the present case on hand.

Applicability of three notifications

In re ‘General Manager, Ordinance Factory, Bhandara’ – 2019 (6) TMI 1236 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA, the main business of the applicant is to manufacture propellants and commercial explosives for use by their sister factories for production of finished products like arms and ammunitions that are ultimately supplied to Indian defence and military forces. However, some of the manufactured goods are also directly supplied to depots and units of defence military forces, state police, private firms, defence public sector companies like Bharat Dynamics Limited etc., and defence laboratories like Defence Research & Development Laboratory.

The applicant sought for advance ruling on whether-

Notification No. 2/2018 - Central Tax (Rate), in relation to services by an arbitrator or an advocate to our organization.
Notification No. 3/2018 - Central Tax (Rate), in relation to services supplied by our organization by way of renting of immovable property to a person registered under the Central Goods and Services Tax Act, 2017.
Notification No. 36/2017 – Central Tax (Rate), in relation to payment of tax on reverse charge mechanism on sale of used vehicles, seized and confiscated goods, old and used goods, waste and scrap to a GST registered person.

The Authority for Advance Ruling ruled that-

Notification no. 02/2018 - Central Tax (Rate) provides exemption to services by an arbitrator or an advocate to the Central Government.
Notification No. 03/2018 - Central Tax (Rate) covers the services supplied by the Central Government, State Government, Union Territory or local authority by way of renting of immovable property to a person registered under the CGST Act is covered under reverse charge mechanism.
Notification No. 36/2017 - Central Tax (Rate) provides for payment of tax on reverse charge basis on the supply of any used vehicles, seized and confiscated goods, old and used goods, waste and scrap made by the Central Government, State Government etc.

Since the applicant is not a Government the above said notifications are not applicable to the applicant.

By: Mr. M. GOVINDARAJAN - January 11, 2023

Discussions to this article

Dear Sir

Wish you a happy new year.

very nice and nut shell about the the issuance of notifications . However, if it is permissible to issue notifications with retrospective effect , it would be convenient to all concerned to remember or for easy reference, if it is issued once in a quarter/half year/annual.which ever is convenient.GST council has to consider it.