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TMI BlogRECENT DEVELOPMENTS IN GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... RECENT DEVELOPMENTS IN GST - By: - Dr. Sanjiv Agarwal - Goods and Services Tax - GST - Dated:- 15-9-2023 - Indian GDP has grown @ 7.8% in Q1 of current fiscal as per latest NSO data. This is mainly due to growth in services sector and investments. RBI had estimated GDP to grow @ 8% in Q1 of 2023-24. It is expected that growth in Q2 may be moderate due to higher inflation. Many rating agencies have upgraded India s growth forecast including Moody s, Nomura, Morgan Stanley, to quote a few. MOF has started preparations for Union Budget 2024-25 by asking various departments to submit their statements of budget and expenditure trends by October 5, 2023. Pre-budget meetings will commence from second week of October, 2023 till mid- November, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2023. CBIC has notified valuation rules for supply of online gaming and casino but the date of enforcement shall be notified in future. Most of the states are yet to enact the provisions in state GST laws. The date of likely levy is however, 1 st October, 2023 but it may be shifted ahead if all the states are not law ready. CBIC has also issued a Circular for providing the procedure to be followed with respect to provisional attachment under section 83(2), i.e. when does it ceases to have effect. Kerala GST has issued an instruction on maintenance of call book and how and when cases could be moved out of the same. The Goods and Service Tax (GST) Collection in August, 2023 dropped to a three month low of Rs. 1.59 lakh crore. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is 11 percent higher than last August. Ex-higher than last August. Experts expect Collections to rise during the rest of the years. The revenues for August, 2023 are 11 percent higher than the GST revenues in the same month last year. During the month, revenue from the import of goods was 3 percent higher, and that from domestic transactions (including the import of services) up 14 percent than the revenues from these sources during the same month last year. Online Gaming Value of Supply CBIC has notified new Rule 31B for value of supply in case of online gaming including online money gaming. As per new Rule 31B , the value of supply of online gaming, including supply of actionable claims involved in online money gami ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng, shall be the total amount paid or payable to or deposited with the supplier by way of money or money s worth, including virtual digital assets, by or on behalf of the player. However, any amount returned or refunded by the supplier to the player for any reasons whatsoever, including player not using the amount paid or deposited with the supplier for participating in any event, shall not be deductible from the value of supply of online money gaming. It may be noted that any amount received by the player by winning any event, including game, scheme, competition or any other activity or process, which is used for playing by the said player in a further event without withdrawing, shall not be considered as the amount paid to or deposi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted with the supplier by or on behalf of the said player. This shall come into force from a date to be notified later. (Source: Notification No. 45/2023-Central Tax dated 06.09.2023 ) Value of Supply of Actionable Claims, i.e., Casino CBIC has notified new Rule 31C for value of supply of actionable claims in case of casino. Accordingly, the value of supply of actionable claims in casino shall be the total amount paid or payable by or on behalf of the player for (i) purchase of the tokens, chips, coins or tickets, by whatever name called, for use in casino; or (ii) participating in any event, including game, scheme, competition or any other activity or process, in the casino, in cases where the token, ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ips, coins or tickets, by whatever name called, are not required However, any amount returned or refunded by the casino to the player on return of token, coins, chips, or tickets, as the case may be, or otherwise, shall not be deductible from the value of the supply of actionable claims in casino. It may be noted that any amount received by the player by winning any event, including game, scheme, competition or any other activity or process, which is used for playing by the said player in a further event without withdrawing, shall not be considered as the amount paid to or deposited with the supplier by or on behalf of the said player. This shall come into force from a date to be notified later. (Source: Notification No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 45/2023-Central Tax dated 06.09.2023 ) Maintenance of Call Book for Adjudication Kerala State Kerala State GST Department has issued Instructions on the Maintenance of Call Book for the Adjudication Process. Accordingly, all the adjudicating authorities are instructed to maintain the call book mandatorily in their respective offices. Cases that are required to be kept in the call book: Cases in which the Department has gone on appeal before the appropriate authority Cases where an injunction has been issued by Supreme Court, High Court, GSTAT, etc. Any SCN can be transferred to the call book if any of the grounds as above exist. If any SCN on the same issue is pending for adjudication in respect of the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame or different party, as stated above, the same should be transferred to the call book till the matter is decided by the Supreme Court, High Court, or GSTAT. An SCN cannot be transferred to a call book on grounds other than those specifically mentioned above without the prior approval of the supervisory officer. In the situation where the SCN is transferred to the call book, immediate intimation in this regard shall be given to the taxpayer concerned. If the grounds on which a case has been transferred to the call book no longer exist or where the issue involved has either been subsequently decided by the Supreme Court or the High Court or Tribunal, as the case may be, and such order has attained finality, such cases shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taken out of the call book and adjudicated. The adjudicating authority does not require any specific instructions or approval from the supervisory authority in this regard. The Supervisory authorities ranging from Additional Commissioner to STO of the respective jurisdiction, shall periodically review each case in the Call Book on a monthly basis. It should be verified to ensure that the case is not incorrectly transferred to or retained in the call book. [Source: Circular No. 13/2023 dated 22.06.2023 issued by Kerala GST Department] Provisional Attachment - When ceases to have effect Section 83(2) of CGST Act, 2017 provides that provisional attachment under section 83(2) shall cease to have effect from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date of order of provisional attachment issued u/s 83(1) . CBIC has issued an advisory on procedure to be followed with respect to sub-section (2) of section 83 of CGST Act, 2017 when provisional attachment of property ceases to have effect. Under section 83(2) read with rule 159 of CGST Rules, 2017 , the property is no longer liable to provisional attachment, however, it requires further consultation and actions to incorporate a prescribed language for such type of release/restoration of provisional attachment in a specified Form (like GST DRC-23 ). It has now been prescribed that in such types of situations, the Commissioner shall issue communication/an intimation to the concerned authority/bank, drawing attention to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he particulars of the Order/ Form DRC-22 (which made the provisional attachment) and the provisions of section 83 (2) of the CGST Act, 2017 , and further indicating the release/restoration of the relevant property/account, in terms of those provisions. This intimation shall be copied to the person concerned. This shall come into force with immediate effect. [Source: GST/INV/Provisional Attachment / Advisory/2023-24 dated 02.09.2023 issued by GST-Investigation Wing] Time limit for reporting invoices on e-invoice portal Time limit of 30 days for reporting invoices from date of invoice has been imposed on e-invoice portal. This time limit is applicable for taxpayers with Aggregate Annual Turnover (AATO) greater t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... han or equal to INR 100 crores. The taxpayers in this category will not be allowed to report invoices older than 30 days on the date of reporting. The Credit / Debit note will also have to be reported within 30 days of issue from date of issue. For example, if an invoice has a date of November 1, 2023, it cannot be reported after November 30, 2023. This restriction will apply to the all document types for which IRNs are to be generated. This validation will come into effect from 1st November, 2023. (Source: https://einvoice1.gst.gov.in/Documents/advisory080923.pdf) Mandatory 2 Factor Authentication GST e-invoice system has issued an update on 2-factor authentication. 2-Factor Authentication for all taxpayer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s with Aggregate Annual Turnover (AATO) above INR 20 crore has been made mandatory from November 01, 2023 The e-Invoice System is for GST registered person for uploading all the B2B invoices to the Invoice Registration Portal (IRP). The IRP generates and returns a unique Invoice Reference Number (IRN), digitally signed e-invoice and QR code to the user. This will be mandatory w.e.f. 01.11.2023. (Source: GST E-invoice System dated 11.09.2023) - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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