MM TAX CLUB

Circular No. 165/21/2021-GST of CBIC dated 17th November, 2021 issued clarification in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance of notification 14/2020- Central Tax dated 21st March, 2020.

It has been represented that in some cases where, though the service recipient is located outside India and place of supply of the service is in India as per IGST Act 2017, the payment is received by the service provider located in India not in foreign exchange, but through other modes approved by RBI. In such cases, the supplier will not be fulfilling the condition specified in S. No. 4 of the Circular No. 156/12/2021 dated 21st June 2021, and accordingly, will be required to have dynamic QR code on the invoice. It has been also represented that relaxation from dynamic QR code on the invoices in such cases should be available if the payment is received through any RBI approved mode of payment, and not necessarily in foreign exchange.

Issue has been examined clarify by modifying  S. No. 4 of the Circular No. 156/12/2021-GST dated 21st June, 2021 as under;

In cases, where receiver of services is located outside India, and payment is being received by the supplier of services ,through RBI approved modes of payment, but as per provisions of the IGST Act 2017, the place of supply of such services is in India, then such supply of services is not considered as export of services as per the IGST Act 2017; whether in such cases, the Dynamic QR Code is required on the invoice issued, for such supply of services, to such recipient located outside India?

No. Wherever an invoice is issued to a recipient located outside India, for supply of services, for which the place of supply is in India, as per the provisions of IGST Act 2017, and the payment is received by the supplier, in convertible foreign exchange or in Indian Rupees wherever permitted by the RBI, such invoice may be issued without having a Dynamic QR Code, as such dynamic QR code cannot be used by the recipient located outside India for making payment to the supplier."

Directorate General of Foreign Trade

Trade Notice No. 24/2021-22 dated 15^th November 2021

In continuation to the earlier Trade Notice 42/2020-2021 dated 19.02.2021, 48/2020-2021 dated 25.03.2021, 10/2021-2022 dated 19.07.2021, 19/2021-2022 dated 01.10.2021 and 21/2021-22 dated 18.10.2021, it is informed that the electronic platform for Certificate of Origin (CoO) (URL: https://coo.dgft.gov.in) has been expanded to facilitate electronic filing and issuance for Non-Preferential Certificates of Origin. The objective of this platform is to provide an electronic, contact-less single window for the CoO related processes.

In this reference, it is informed that the transition period for mandatory filing of applications for Non-Preferential Certificate of Origin through the e-CoO Platform has been extended till 31st January 2022. The existing systems for submitting and processing non-preferential CoO applications in manual/paper mode is being allowed for the stated time period and the online system is not being made mandatory.

All Agencies as notified under Appendix-2E are required to ensure their onboarding process is completed at the earliest and no later than 31st January 2022. Reference Trade Notice 21/2021-22 dated 18.10.2021, it is submitted that all Agencies notified under Appendix-2E, are required to ensure that the onboarding exercise is completed latest by 31st January 2022 failing which the agencies shall be de-notified from Appendix 2E.

All Exporters concerned are requested to ensure that they are duly registered onto the said platform at the earliest. Any technical/procedural issues may be brought to the attention of the CoO Helpdesk within the time prescribed. For guidance on registration and application submission process, the Help Manual & FAQs may be accessed on the landing page at https://coo.dgft.gov.in .

For any further assistance you may utilize any of the following channels —

Raise a service request ticket through the DGFT Helpdesk service

Send an email to DGFT CoO Helpdesk at coo-dgft@gov.in

Call the toll-free DGFT Helpdesk number

The Income Tax Department carried out search and seizure operations on 10.11.2021 on two groups, one engaged in real estate and hospitality and the other, a tools and equipment manufacturing group at Gurugram.

Various incriminating documents and electronic data relating to unaccounted investment in real estate, unaccounted sales and purchases, difference in stock, acquisition of shell companies, benami properties and transactions, bogus unsecured loans and share application money, evasion of capital gains, etc. were found and seized. Further, evidence of large sums of money having been received in the form of salary and remuneration by family members without any commensurate qualification or participation in the management of the businesses has been found and seized in one of the groups.

Total cash amounting to Rs. 3.54 crore and Jewellery valued at Rs. 5.15 crore have been seized. In total, 18 bank lockers have been placed under restraint.

The search action, in these groups, has led to the detection of estimated unaccounted income to the tune of Rs. 600 crore.

Further investigations are in progress.

Based upon specific intelligence, the officers of the Anti Evasion branch of Central Goods and Service Tax (CGST) Commissionerate, Delhi (East) have unearthed a case of availment/utilization and passing on of inadmissible input tax credit (ITC) through bogus GST invoices without actual movement of goods of Rs 34 crore (approx).

The 7 firms were created in order to generate bogus GST invoices with an intent to pass on fraudulent ITC without actual movement of goods and without paying actual GST to the Government. These entities have generated goods less GST invoices of value Rs. 220 crore (approx.) and passed inadmissible ITC amounting to Rs. 34 crore (approx.). Sh. Rishabh Jain was the mastermind behind running this racket of creating bogus firms and generating/selling bogus GST invoices.

The modus operandi involved creating multiple firms with the intent to avail/utilize & passing on of inadmissible credit. The firms involved in this network are M/s Blue Ocean, M/s Highjack Marketing, M/s Kannha Enterprises, M/s S S Traders, M/s Evernest Enterprises, M/s Gyan Overseas & M/s Viharsh Exporters Pvt. Ltd.

Sh. Rishabh Jain tendered his voluntary statement admitting his guilt. He admitted that due to non payment against Overdraft account of Central Bank of India, the business premises were sealed by bankers. Thereafter, he indulged into issuance of bogus GST invoices without actual movement of goods.

Sh. Rishabh Jain has knowingly committed offences under Section 132(1)(b) of the CGST Act, 2017 which is cognizable and non-bailable offences as per the provisions of Section 132(5) and are punishable under clause (i) of the sub section (1) of Section 132 of the Act ibid. Accordingly, Sh. Rishabh Jain has been arrested under Section 132 of the CGST Act on 13.11.2021 and remanded to judicial custody by the duty Metropolitan Magistrate till 26.11.2021.

Further Investigations are in progress.

Edible Oil prices show a declining trend across the country

Government has cut the basic duty on Crude Palm Oil, Crude Soyabean Oil and Crude Sunflower Oil from 2.5% to nil

To control prices of edible oils the government rationalizes import duties on palm oil, sunflower oil and soyabean oil;

Major edible Oils players cut wholesale prices by Rs. 4 -7 Per Ltr

Central and   State Governments’ pro active involvement  have led to reduction in prices of edible oils.

The Government has cut the basic duty on Crude Palm Oil, Crude Soyabean Oil and Crude Sunflower Oil from 2.5% to nil  in a bid to reign in continuous rise in the cooking oil prices since past one year.  The Agri-cess on these Oils has been brought down from 20% to 7.5% for Crude Palm Oil and 5% for Crude Soyabean Oil and Crude Sunflower Oil.

Consequent upon the above reduction, the total duty is 7.5% for Crude Palm Oil and 5% for Crude Soyabean Oil and Crude Sunflower Oil. The basic duty on RBD Palmolein Oil, Refined Soyabean and Refined Sunflower Oil has been slashed to 17.5% from the current 32.5%.

Before  reduction, the agricultural infrastructure cess on all forms of Crude Edible Oils was 20%. Post reduction, the effective duty on Crude Palm Oil will be 8.25%, Crude Soyabean Oil and Crude Sunflower Oil will be 5.5% each.

To control prices of edible oils the government has rationalised import duties on palm oil , sunflower oil and soyabean oil,  futures trading in mustard oil on NCDEX has been suspended and stock limits have been imposed.

Major edible Oils players including Adani Willmar and Ruchi industries have cut wholesale prices by Rs. 4 -7 Per Ltr. Prices have  been reduced to give relief to consumers during festival season.

The other players that have reduced the wholesale prices of edible oils are Gemini Edibles & Fats India, Hyderabad, Modi Naturals, Delhi, Gokul Re-foils and Solvent, Vijay Solvex, Gokul Agro Resources and N.K Proteins.

Despite international commodity prices being high, interventions have been taken by Central Government along with State Governments’ pro active involvement have led to reduction in prices of edible oils.

Edible prices are higher than year ago period but from October onwards there was a declining trend. The government is taking steps to improve the production of secondary edible oils, especially rice bran oil to reduce the import dependence.