Intelli Tax Advisors LLP

Dear all, sharing the update on the Circular 159, 160 and 161 issued by CBIC on 20 September 2021.

1. After the amendment in Section 16(4) delinking the issuance of debit notes with underlying invoices, the financial year in which debit note was issued shall be considered. Input tax credits availed post amendment (on debit notes issued either before or after the amendment) shall be governed by the amended provisions.

2. Physical copies of the tax invoice would not be required for the transport of goods when an IRN (e-invoice) has been generated.

3. Restrictions to claim a refund of unutilised input tax credits under proviso to Section 54(3) in case of export of goods shall be applicable only when export duty has been paid.

4. A branch or an agency or a representational office of a company in other territory and the company itself shall be treated as establishments of distinct persons, and supply between them will not be treated as export of services.

However, a company incorporated in India and a body corporate incorporated by or under the laws of any other country shall be treated as separate persons (legal entities) i.e. would not be considered as 'merely establishments of a distinct person' in accordance with Explanation 1 in Section 8 and may qualify as an export of service.

5. Clarification on the scope of intermediary services

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https://www.linkedin.com/feed/update/urn:li:activity:6846361248330842114

The GST Council held its 45th meeting on 17 September 2021 wherein a range of taxpayer-friendly measures to facilitate trade, issuing clarifications to reduce the tax disputes to streamlining compliances and extending the exemption on COVID essential drugs were announced.

We have summarised the key updates.

https://www.linkedin.com/feed/update/urn:li:activity:6845430547804647424

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Customs Update

Applicability of IGST on repairs cost, insurance and freight on goods re-imported after being exported for repairs

GST Snippet !!

𝗚𝗦𝗧 𝗨𝗽𝗱𝗮𝘁𝗲

GST Amnesty Scheme

𝗜𝗻𝗰𝗼𝗺𝗲 𝗧𝗮𝘅 𝗨𝗽𝗱𝗮𝘁𝗲𝘀

𝗜𝗻𝗰𝗼𝗺𝗲 𝗧𝗮𝘅 𝗨𝗽𝗱𝗮𝘁𝗲𝘀

Headlines

📌Extension of Labour law implementation
📌Extension of QR Code (conditional waiver from penalty) on B2C invoices till 30-6-2021.
📌 Extension of FTP 2015-2020 till 30th September, 2021.
📌 Extension in exemptions from levy of IGST & CCess to EOU till 31-3-2022.
🖌️HSN Code at 4, 6 and 8 digits in specified cases w.e.f. 1-4-2021
🖌️E-invoicing for taxpayers having aggregate turnover of more than INR 50 Crores w.e.f. 1-4-2021.
🖌️Audit Trail feature in Accounting Softwares for Companies w.e.f. 1-4-2021.
🖌️ E-waybill not required below INR 1 Lac on intra-state movement in Rajasthan w.e.f. 1-4-2021.
🔸Filing Bill of Entry in Advance.
🔸Changes as per Finance Act, 2021 regarding GST like removal of audit, penalty on detention, etc. once notified by CBIC.
🔸Extension of relaxation for filing refund claim in cases supplies wrongly declared in Table 3.1(a) till 31-3-2021.
🔸Option to avail Composition Scheme for FY 2021-22 by 31-3-2021.
🔸Option to avail QRMP Scheme in Q1 of FY 2021-22 till 30-04-2021.
🔸New invoicing series, LUT for making zero-rated supplies, etc. for FY 2021-22.
🔸Reconciliation of Books vis-a-vis Returns filed should be ascertained to fill the inadvertent gaps, if any, in Annual Return or upcoming regular returns, as the case may be.

𝗜𝗻𝗰𝗼𝗺𝗲 𝗧𝗮𝘅 𝗨𝗽𝗱𝗮𝘁𝗲𝘀