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​published on 30 April 2024 I reading time approx. 6 minutes
 

​IDT Developments and Associated Procedures

1. No levy of interest in case where the GST in paid in electronic cash ledger before due date of filing FORM GSTR-3B even if the same is filed belatedly​

In the case of Eicher Motors Ltd. [2024 (1) TMI MADRAS HIGH COURT], the Hon’ble Madras High Court had held that in lieu of Section 39(1) of the CGST Act, the assessee is required to pay tax to the Government not later than the last date to file FORM GSTR-3B. Thus, for the payment of tax to the Government filing the monthly returns is not the matter but the last date for furnishing the monthly return is important. Hence, whether the monthly return is filed in time or not, but the GST has to be remitted not later than the last date for filing the monthly returns. Therefore, in case where the payment of GST liability is made via FORM GST PMT-06 before the due date and the FORM GSTR-3B is filed belatedly, there would be no levy on interest on account of delayed payment of taxes. 

Important GST Notifications, Circulars and Advisory issued during the quarter

1. Introduction of "Public Tech Platform for Frictionless Credit":

Vide Notification No. 06/2024-Central tax dated 22 February 2024, the Central Government on the recommendations from the Council, notifies “Public Tech Platform for Frictionless Credit” as the system with which the information can be shared by the common portal. The said “Public Tech Platform for Frictionless Credit” means an enterprise grade open architecture information technology platform, as conceptualized and developed by RBI for the operations of large ecosystem of credit to ensure easy access of information from various data sources digitally and where the financial service providers and multiple data service providers converge on the platform using shared API framework.

2. Extension of time limit for filing Form GSTR-3B for the period November 2023 and Annual return for FY 2022-23​:

Vide Notification No. 01/2024-Central Tax and 02/2024-Central Tax each dated 5 January 2024, the time limit for filing the Form GSTR-3B for November 2023 and annual return for FY 2022-23 is extended until 10 January 2024 for certain districts of Tamil Nadu.

3. Clarifications issued by way of Circulars/Instructions​:

Vide Instruction No. 01/2023-24-GST(Inv.) dated 30 March 2024, the Central Board of  Indirect Taxes and Customs issued guidelines which are required to be followed by the GST Authorities during the course of any investigation with the regular taxpayer to avoid duplication of proceedings, issuance of summons mechanically for gathering of the data, clarifying the process pertaining to the jurisdictional issues, grievance redressal mechanism for issues faced by the taxpayer during the investigation, etc. which is expected to result in avoidance of harassment of the taxpayer and ease of doing business.

It is also clarified in the above referred guidelines that investigation shall be concluded within 1 year and the conclusion  of  investigation  may  also  take  the  form  of  recording  that investigation is not being pursued further as nothing objectionable was found in terms of matter investigated.

Customs and Foreign Trade Policy Related Developments​​​

1. Extension of RoDTEP support for exports made by AA holders, EOUs and SEZ units​:

Vide Notification No. 70/2023 – DGFT dated 8 March 2024 and Notification No. 74/2023 – DGFT dated 11 March 2024, after considering the recommendations of the RoDTEP Committee report, the DGFT has extended the RoDTEP support for exports made by Advance Authorization (‘AA’) holders (except deemed exports) and Export Oriented Units (‘EOUs’) from 11 March 2024 till 30 September 2024 as per rates prescribed in Appendix 4RE.  Further, in case of SEZ units, the benefits of RoDTEP will be available as per Appendix 4RE only from the date of IT integrations of SEZs (expected from 1 April 2024) with ICEGATE till 
30 September 2024. 

The validity of RoDTEP scheme is being further extended for exports made by the exporters until 30 September 2024. Furthermore, RoDTEP rate revision in 25 HSN codes is also being made in Appendix 4R. 
The DGFT has also issued a list of 166 tariff line items extending support under RoDTEP for exports of products manufactured by AA holders (except deemed exports) and EOUs, which has been effective from 
1 April 2024. 


2. Exemption from mandatory quality control order to EOUs, AA holders and SEZ​:

Vide Notification No. 71/2023 - DGFT dated 11 March 2024, pre-import compliance with quality control orders for the specified products is mandatory prior to their clearance from customs. However, the same has led to issues and challenges where such inputs or goods were imported for manufacture and export including under various export incentive schemes. 

In order to facilitate the exports, the DGFT has notified a new Appendix 2Y wherein the Ministry of Steel, Ministry of Textiles and Department of Promotion of Industry & Internal Trade has issued orders for exempting the quality control procedure on the goods used and consumed in the manufacturing process.

3. Amendment in Import policy- removal of used IT Assets from SEZ to DTA​:

Vide Notification No. 56/2023 - DGFT dated 1 January 2024, the DGFT modified para 2.31 of the Foreign Trade Policy, 2023, relating to the import of second-hand goods to address the import policy with respect to used IT assets (laptops, desktops, monitors and printers) moving from a Special Economic Zone (SEZ) to a Domestic Tariff Area (DTA). In terms of the revised policy, the transferring of used IT assets continues to be restricted with relaxation from authorization extended in following situations:


  • Transferring of used IT assets from an SEZ to a DTA after a minimum usage of two years in an SEZ for further use in their DTA operations as long as such assets are not older than five years from the date of manufacture.
  • Moving used IT assets when an SEZ unit exits and re-locates to DTA, provided the assets are not older than five years from the date of manufacturing; additionally, IT assets entered in the SEZ area in second hand or used or old condition and used for less than two years in an SEZ area will not be covered.

Further above relaxation applies only if no exemption from regulatory requirement, e.g. Wireless Planning & Coordination Wing, Compulsory Registration Order, is availed. All other used assets not fulfilling the above conditions continue to be subject to an authorization requirement. 

4. Extension of Basic Customs Duty and Social Welfare Surcharge benefit to electric vehicles:

Vide Notification No. 19/2024 and 20/2024 – Customs (Tariff) each dated 15 March 2024, the electrically operated vehicles, if imported in India other than in incomplete or unfinished condition, as a knocked down kit containing all necessary components for assembling complete vehicle including battery pack, motor, etc. with a minimum cost including insurance and freight i.e., CIF Value of $35,000, will be eligible for a concessional BCD rate of 15% and would be exempt from the whole of social welfare surcharge subject to fulfillment of all other concerned conditions prescribed in the notification. 

5. Imposing of Anti-Dumping Duty:​

  • ​Vide Notification No. 3/2024 – Customs (ADD), dated 14 March 2024, the CBIC has imposed antidumping duty on Printed Circuit Boards (PCBs) classifiable under HSN 8534, imported or originating from China PR (subject to conditions as prescribed in the aforesaid notification). This antidumping duty will be effective for 5 years, unless revoked.
  • Vide Notification No. 5/2024 – Customs (ADD), dated 14 March 2024, the CBIC has imposed antidumping duty on Ethylene Vinyl Acetate (EVA) sheet for Solar Module classifiable under Chapter 3920 imported or originating from China PR (subject to conditions as prescribed in the aforesaid notification). This antidumping duty will be effective for 5 years, unless revoked.

6. Other Miscellaneous Updates in Customs, FTP and SEZ​:

  • ​Vide Notification No. 6/2024 – Customs dated 29 January 2024 and Notification No. 7/2024 dated 29 January 2024, the Government notifies extension of specified exemptions and notifications that were to lapse on 31 March 2024 now stand extended till 30 September 2024. A detailed list of such exemptions can be referred through the concerned notifications.
  • Vide Notification No. 15/2024 – Customs (Tariff) dated 12 March 2024, the tariff rate of Basic Customs Duty (BCD) on X-ray tubes under CTH 9022.30.00 and other parts and accessories of apparatus increased from 10 per cent to 15 per cent with effect from 1 April 2024. 
  • Vide Notification No. 16/ 2024 – Customs (Tariff) dated 12 March 2024, the CBIC has amended the exemption Notification No. 50/2017 – Customs dated 30 June 2017 extending the benefit if exemption to specified goods required for manufacture of X-ray machines for medical, surgical, dental or veterinary uses.  
  • Vide Notification No. 60/ 2023 – DGFT dated 13 February 2024, the DGFT has notified Chapters 1 to 39 of Schedule 2 (Export Policy) of the Indian Trade Classification of Export Items, 2023 (ITCHS 2023). These chapters contain the current export policy on items along with policy conditions that need to be fulfilled. However, it has been clarified that newly notified policy does not include any new policy changes or amendments. 
  • Vide Public Notice No. 40/2023 – DGFT dated 12 February 2024, the DGFT has modified para 4.36 of Handbook of Procedures 2023 regarding the clubbing provisions of Advance Authorisation Scheme. Accordingly, the time period of clubbing of authorisations has been increased from 18 months to 24 months from the date of issue of the earliest authorisations that is sought for clubbing. 
  • Vide Policy Circular No. 09/2023-24 dated 12 January 2024, the DGFT has clarified certain guidelines on the restriction of import of laptops, servers, etc. which was made applicable from last year, that the requirement of license specifically applies to only five articles i.e., laptops, tablets, all-in-one personal computers, ultra small form factor computers and servers. Moreover, the restriction is not applicable to any other goods covered under CTH 8471 such as desktop computers. 

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