MM TAX CLUB

In exercise of the powers conferred by proviso to clause (47A) of section 2 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies following virtual digital assets which shall be excluded from the definition of virtual digital asset:

(i) Gift card or vouchers, being a record that may be used to obtain goods or services or a discount on goods or services;

(ii) Mileage points, reward points or loyalty card, being a record given without direct monetary consideration under an award, reward, benefit, loyalty, incentive, rebate or promotional program that may be used or redeemed only to obtain goods or services or a discount on goods or services;

(iii) Subscription to websites or platforms or application.

2. This notification shall come into force from the date of publication in the Official Gazette.

Gross GST collection in June 2022 is the second highest collection next to the April 2022 collection

GST collection crosses ₹1.40 lakh crore mark 5th time since inception of GST; 4th month at a stretch since March 2022

The gross GST revenue collected in the month of June 2022 is â‚¹144,616 crore of which CGST is â‚¹25,306 crore, SGST is â‚¹32,406 crore, IGST is â‚¹75887 crore (including ₹40102 crore collected on import of goods) and cess is â‚¹11,018 crore (including ₹ 1197 crore collected on import of goods). The gross GST collection in June 2022 is the second highest collection next to the April 2022 collection of â‚¹1,67,540 crore.

The government has settled ₹29,588 crore to CGST and ₹24,235 crore to SGST from IGST. In addition, Centre has also settled â‚¹27,000 crore of IGST on ad-hoc basis in the ratio of 50:50 between Centre and States/UTs in this month. The total revenue of Centre and the States in the month of June 2022 after regular and adhoc settlement is ₹68,394 crore for CGST and ₹70,141 crore for the SGST.

The revenues for the month of June 2022 are 56% higher than the GST revenues in the same month last year of ₹92,800 crore. During the month, revenues from import of goods was 55% higher and the revenues from domestic transaction (including import of services) are 56% higher than the revenues from these sources during the same month last year.

This is the fifth time the monthly GST collection crossed ₹1.40 lakh crore mark since inception of GST and fourth month at a stretch since March 2022. The collection in June’2022 is not only be the second highest but also has broken the trend of being low collection month as observed in the past. Total number of e-way bills generated in the month of May 2022 was 7.3 crore, which is 2% less than 7.4 crore e-way bills generated in the month of April 2022.

The average monthly gross GST collection for the first quarter of the FY 2022-23 has been ₹1.51 lakh crore against the average monthly collection of ₹1.10 lakh crore in the first quarter of the last Financial year showing an increase of 37%. Coupled with economic recovery, anti-evasion activities, especially action against fake billers have been contributing to the enhanced GST. The gross cess collection in this month is the highest since introduction of GST.

The chart below shows trends in monthly gross GST revenues since 2017-18. The table shows the state-wise figures of GST collected in each State during the month of June 2022 as compared to June 2021.

Cess of Rs.23,250 per tonne imposed on crude; import of crude not to be subject to this cess

Special additional excise duty/Cesses imposed on exports of petrol and diesel at the rate  of Rs 6 per litre on Petrol and Rs 13 per litre on diesel

Special Additional Excise Duty (SAED) of Rs 6 per litre imposed on exports of Aviation Turbine Fuel

NO IMPACT OF ABOVE STEPS ON DOMESTIC FUEL PRICES

Customs duty on gold increased from 10.75% to 15%; step taken to help curtail Current Account Deficit

Notification issued on 30th June 2022

Following are the details of the Notifications issued regarding Customs duties on 30th June 2022. The details are as follows:

I   INCREASE OF CUSTOMS DUTY ON GOLD

Customs duty on gold has been increased from 10.75% to 15%.

There has been sudden surge in imports of gold. In the month of May, a total of 107 tonnes of gold was imported and in June also the imports have been significant. The surge in gold imports is putting pressure on current account deficit. To curb import of gold, customs duty has been increased from present 10.75% to 15%.

II   DUTIES/CESSES ON PETROLEUM CRUDE, HSD, PETROL AND ATF

A.    PETROLEUM CRUDE

A cess of Rs 23,250 per tonne (by way of special additional excise duty-SAED) has been imposed on crude.

Crude prices have risen sharply in recent months. The domestic crude producers sell crude to domestic refineries at international parity prices. As a result, the domestic crude producers are making windfall gains. Taking this into account, a cess of Rs. 23250 per tonne has been imposed on crude. Import of crude would not be subject to this cess.

Crude is sold by domestic producer at international parity price.

This cess will have no adverse impact, whatsoever, on domestic petroleum products/fuel prices.

Further, small producers, whose annual production of crude in the preceding financial year is less than 2 million barrels will be exempt from this cess.

Also, to incentivise an additional production over preceding year, no cess will be imposed on such quantity of crude that is produced in excess of last year production by a crude producer.

As stated above, this measure would not impact crude prices or the prices of petroleum products and fuels.

B. HSD and PETROL

Special additional excise duty/Cesses has been imposed on exports of petrol and diesel at the rate  of  Rs 6 per litre on Petrol and Rs 13 per litre on diesel

While crude prices have increased sharply in recent months, the prices of HSD and Petrol have shown a sharper increase. The refiners export these products at globally prevailing prices, which are very high. As exports are becoming highly remunerative, it has been seen that certain refiners are drying out their pumps in the domestic market.

In view of this, cesses equal to Rs 6 per litre on Petrol and Rs 13 per litre on diesel have been imposed on their exports.

These cesses would apply to any export of diesel and Petrol from the country.

As the above measure has been applied to exports, it has no implication on domestic retail prices of HSD and Petrol.

At the same time, EXPORT POLICY condition has been imposed by the DGFT that the exporters would be required to declare at the time of exports that 50% of the quantity mentioned in the shipping bill has been/will be supplied in the domestic market during the current FY.

These measures would not have any adverse impact on domestic retail prices of diesel and petrol.  Thus, domestic retail prices would remain unchanged. At the same time these measures will ensure domestic availability of the petroleum products.

 C.  AVIATION TURBINE FUEL

A special additional excise duty (SAED) of Rs 6 per litre has been imposed on exports of Aviation Turbine Fuel.

Like HSD and Petrol, the international prices of ATF have risen sharply. Accordingly, on the same reasoning, as stated above for diesel and petrol, a cess of Rs 6 per litre has been imposed on exports of ATF.

This measure will not have any adverse impact on domestic prices of aviation.

Trade Notice No. 13 /2022-23 Dated 30^th June, 2022

Reference is invited to DGFT Public Notice no.2 (RE-2012)/2009-14 dated 5 June 2012 through which electronic Bank Realization Certificate (e-BRC) was introduced. The existing eBRC platform (http://dgftebrc.nic.in/) is being managed by NIC-DGFT from 2012 onwards and has enabled us to capture details of realisation of export proceeds from the Banks directly through secured electronic mode and facilitated implementation of various export promotion schemes in an IT environment.

2. The existing eBRC module is now being upgraded to a new IT platform and it is proposed to discontinue the earlier version (http://dgftcbrc.nic.in/) from end of July 2022. Existing users of the eBRC module i.e. the AD Banks will need to migrate to the new environment (https:/dgfigov.in) on an urgent basis so that services to the exporting community do not get impacted.

3. In this regard Help Manual as well as FAQs have been made available to Bank Officials on the new portal after login. For any further assistance concerned Bank officials can send an email to the DGFT Helpdesk on dgfiedi@gov.in with subject header as "Support on eBRC for…. Bank (Name of Bank)"

The Goods and Services Tax Network has enabled a new feature to show return filling frequency on GST Portal for the Taxpayers.

Now you can check the return filling frequency of any GST registered person. This feature will help you to identify the Quarterly Returns Monthly Payment (QRMP) and Non QRMP dealers. You can check the frequency of the current as well as for the previous financial year.

Steps are as follows: