FCA KAPIL JAIN FCA MANISH KUMAR
Goods
Change Description
Fortified Rice GST reduced to 5% for FRK, classifiable under HS
Kernel (FRK) code 1904.
Gene Therapy GST exempted for gene therapy.
IGST exemption extended for systems, sub-
LRSAM System systems, equipment, parts, sub-parts, tools, test
Components equipment, and software for LRSAM under
Notification 19/2019-Customs.
Compensation
Reduced to 0.1% on supplies to merchant
Cess on Merchant
exporters, aligning with GST rate.
Exports
IGST exemption on imports of equipment and
IAEA Equipment
consumable samples by IAEA inspection teams,
Imports
subject to specified conditions.
Concessional 5% GST rate on food inputs of food
Concessional GST preparation under HSN 19 or 21intended for free
on Food distribution to economically weaker sections
Preparations under a government program subject to existing
conditions.
Services
Change Description
Sponsorship Supply of sponsorship services by Corporates will
Services fall under Forward Charge Mechanism.
Exemption of GST on contributions made by
general insurance companies to the Motor Vehicle
Accident Fund(constituted under Section164B of
Motor Vehicle Motor Vehicles Act 1988) from the third party
Accident Fund motor vehicle premium collected by them. This
fund is constituted for providing compensation/
cashless treatment to the victims of road
accidents including hit and run cases.
Amendments related to GST rate on restaurant
services in hotel based on the value of
accommodation supply. Restaurants in hotels can
opt for 18% GST with ITC or 5% without ITC based
on the preceding year's accommodation value. If
Hotel value of supply’ of units of accommodation made
Accommodation in the preceding financial year is more than Rs.
and Restaurant 7500, then Restaurant in such hotel will charge
Services GST at 18% with ITC or 5% without ITC otherwise.
Further the proposed amendment will provide an
option to the hotel, if it chooses to charge 18% GST
with ITC on restaurant services, to give a
declaration on or before the beginning of the
financial year or on obtaining registration. This
Change Description
proposal if approved will take effect from
01/04/2025.
As per Entry No 5AB inserted via notification no
9/2024 CTR dated 8th October 2024, any
immovable property other than residential
dwelling given on rent by unregistered person to
registered person is taxable on RCM basis.
Composition Currently, this provision was also applicable to the
Scheme Exemption taxpayers registered under composition scheme.
After the proposed amendment, this provision will
not be applicable to the Composition Taxpayers
i.e. No RCM will be levied if commercial property/
property other than residential dwelling is taken on
rent by the composition taxpayer.
Other Goods and Services Changes
Change Description
GST increased from 12% to 18% on sale of old and
used vehicles, but only on the margin (difference
Sale of Old and
between selling price and purchase price). If the
Used Vehicles
difference is negative than it shall be ignored.{This is
applicable only if ITC is not claimed on such vehicle}
Change Description
Autoclaved
Clarification that ACC blocks with more than 50% fly
Aerated
ash fall under HS 6815 and attract 12% GST.
Concrete (ACC)
Pepper and GST exempt on fresh/dried pepper and raisins
Raisins supplied by agriculturists.
Pre-Packaged Amended to include all commodities intended for
and Labelled retail sale with packaging of ≤ 25 kg/litre, as per the
Goods Legal Metrology Act.
Clarification on GST rates for different types of
Ready to Eat
popcorn: 5% for unlabelled, 12% for labelled, and
Popcorn
18% if changed into sugar confectionery.
To clarify that the Explanation in Sl. No. 52B in
Ground notification No. 1/2017- Compensation Cess (Rate)
Clearance dated 28.6.2017 regarding ground clearance is
applicable with effect from 26.07.2023.
Clarified that they are eligible for exemption vide Sl
RBI Regulated
no 34 of N/N 12/2017 CTR but this exemption is not
Payment
for payment gateways or fintech services which do
Aggregators
not involve settlement of funds.
Penal Charges by No GST on penal charges levied by banks/NBFCs for
Banks/NBFCs non-compliance with loan terms.
1. Amendment in Schedule III of CGST Act, 2017
Change Description
Supply of goods warehoused in SEZ or FTWZ to any
Special Economic
person before clearance for export or Domestic
Zones (SEZ) and
Tariff Area (DTA) is not treated as supply of goods or
FTWZ
services.
2. Taxability of Vouchers
Change Description
Proposal to omit Sections 12(4) and 13(4) from
Omission of
CGST Act and Rule 32(6) from CGST Rules to
Sections
resolve ambiguity in treatment of vouchers.
Vouchers distributed on principal-to-principal
Clarification on
basis not subject to GST. When distributed on
Voucher
principal-to-agent basis, commission/fee is
Transactions
taxable.
Services related to vouchers (advertisement, co-
Additional Services branding, marketing and promotion,
on Vouchers customization and technology support, customer
support etc. related to vouchers) will attract GST.
Unredeemed
No GST payable on income related to unredeemed
Vouchers
vouchers.
(Breakage)
3. Issuance of Circulars for Clarity
Change Description
Clarified that no proportional ITC reversal required
under Section 17(1) or section 17(2) for e-commerce
Input Tax Credit
operators in respect of supplies under section 9(5) of
(ITC) Reversal
CGST Act {Circular No 243 issued and discussed
below}.
The GST Council recommended to clarify that in an Ex-
Works contract, where goods are delivered by the
supplier to the recipient or a transporter at the
supplier's place of business, and the property in goods
transfers to the recipient at that point, the goods are
considered to be "received" by the recipient under
ITC on Ex-Works
section 16(2)(b) of CGST Act, 2017 and the recipient
Contract
may claim Input Tax Credit (ITC) on such goods,
subject to the conditions outlined in Sections 16 and
17 of the CGST Act, 2017 clarified that ITC is available
for goods delivered at the supplier’s business
premises in an Ex-Works contract{Circular No 240
issued and discussed below}
The GST council recommends to clarify through a
Late Fee circular that the late fee under section 47(2) of CGST
imposition and Act is leviable for delay in filing complete annual return
Late fee waiver under section 44 which includes both GSTR 9 and
for FORM GSTR- GSTR 9C, where applicable.
9C
Proposal to issue notification for waiver of late fees
for delay in filing of FORM GSTR-9C which is in excess
Change Description
of the amount of late fee payable till the date of filing
of FORM GSTR-9 for the FY 2017-18 to 2022-23,
provided the said FORM GSTR-9C is filed on or before
31st March 2025.
Change Description
A provision will be inserted in CGST Act to enforce Track
Enabling and Trace Mechanism for certain goods prone to evasion.
Provision Goods will be marked with a unique identifier for
traceability.
Change Description
For online services supplied to unregistered
Recording of recipients, the supplier must record the recipient's
State Name for State on the tax invoice for the purpose of place of
Online Services supply rules {Circular No 242 issued and discussed
below}
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Q-1 : Whether the notice / statement is issued through the portal ?
Answer:
Q2 : Whether any order has been issued against the SCN ?
Answer:
Q3 : Whether the tax amount as per SCN is already paid through DRC 03 ?
Answer:
Q4 : Whether the SCN is issued U/s 73 /74 ?
Answer:
Q5 : If the same is covered U/s 75 ?
Answer:
Q6 : Whether the SCN is issued for erroneous refunds?
Answer:
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Q.1 - Whether the demand order is issued through GST portal?
Answer:
Q.2 – Whether any appeal application filed against the order?
Answer:
Q.3-Whether any application filed for the withdrawal of appeal?
Answer:
Q.4-Whether the appeal or writ petition against the order been withdrawn before the AA ,
AT , HC , SC ?
Answer:
Q.5-Whether order issued U/s 73 / 74 ?
Answer:
Q.6- Whether the order covered U/s 75 of the Act ?
Answer:
Q.7- Whether any demand order includes any erroneous refunds?
Answer:
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Question: Suppose Mr Manish has received demand order U/s 73 of the Act for Rs 5,00,000
IGST. Then how to fill the tables while filing SPL-02?
Solution: In this table amount of 5,00,000 has to be entered or will be
auto populated as per the mode of order i.e online or manual.
Suppose Mr Manish has received demand order U/s 73 of the Act for Rs
5,00,000 IGST out of which Rs 1,50,000 is related to violation of Section
16(4) for the FY 2018-19. Then how to fill the tables while filing SPL-02?
Solution: In this case, Rs 5,00,000 will be entered in Table 3A and Rs
1,50,000 will be entered in Table 3B as it is related to Section 16(4) and
the same is now allowed as per Section 16(5). Thus, there is no
requirement of following the process U/s 128A for the amount pertaining
to Section 16 (4).
Balance tax that has be paid will be Rs 3,50,000 (5,00,000-1,50,000).
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Ganesh Kachori wala is a restaurant service provider registered in Zomato (an
ECO ) for supply of services through online mode . Mr Kapil , ordered one thali of
Rs 2,000 from Ganesh Kachori wala through the Zomato .
In this transaction there are 3 main parties involved :
1) Ganesh Kachori Wala – The restaurant service provider (Actual Supplier) .
2) Zomato – The ECO U/s 9(5) (Deemed Supplier).
3) Mr Kapil – Customer .
In this case , the supply is of the restaurant but due to deeming fiction Zomato is
deemed supplier and the tax liability on Rs 2,000 will be paid by Zomato and not
the restaurant service provider.
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In the above case, suppose, Zomato is charging RS 5,000 as platform fee
from the restaurant service provider for using the platform as platform fee
and for which Zomato has procured some inputs on which ITC of Rs 1,000
is there.
• Now, here the total turnover of Zomato is Rs 7,000 (2000+5000) on
which Zomato will the tax and ITC available is Rs 1,000.
• While filing GST Return Zomato will declare turnover of Rs 5,000 in
Table 3.1 as his own supply and pay the tax liability there on and for
this Zomao can avail and utilize the ITC as well cash balance for paying
the tax .
• But in respect of Rs 2,000 (deemed supplies) Zomato will declare the
same in Table 3.1.1 and tax liability will be paid only in Cash and ITC
cannot be utilized for the payment of tax on Rs 2,000.
• Further, ITC in proportion to Rs 2,000 is not required to be reversed as
clarified by the Circular 167/23/2021 and Circular 040/34/2024.
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