The Goods and Services Tax is considered the most significant reform of the Government of India to handle the complicated structure of tax rates. It is assumed that the existing tax rate system created a cascading effect on transactions, developing unwanted inflation in the Indian economy. Since the advent of GST, the CBIC department conducted several programs to simplify the functioning of GST. Now, it is actively issuing new and modified GST circulars and notifications.
Let's look at a few GST orders with their latest updates to help you understand what has changed.
The CBIC announced the amnesty scheme to relieve the taxpayers who failed to file GSTR 10 and GSTR 3B within time. This GST circular allows the withdrawal of assessment orders under certain conditions.
The Government proposed this scheme for the conditional deemed withdrawal of the assessment orders. However, to avail of this new scheme, an individual has to file their required return before or on June 30, 2023. With it, the person must provide payment of the applicable interest and late fee under sections 50(1) and 47 of the CGST Act.
The CBIC also issued a clarification on the applicable GST rates and exemptions on the specific services according to the decision of the GST council. According to the new circular of GST, educational institutions will offer exemption from GST to their students.
The exemption is massive, covering the fee or amount charged by the institutions for admission. Services provided by educational institutions by issuing migration certificates to ex-students will also come under the exemption. They further clarified that the services of warehousing cotton covered under entry 24B in the Raw Vegetable Section like cotton. But, they withdrew the exemption in 2022.
Regarding the exemption on the services related to transit cargo from and to Bhutan and Nepal, the regulations must be followed to ensure that the trace facility and an electronic truck are in the right place.
The CBIC, or Central Board of Indirect Taxes and Customs, released a clarification on the GST-associated refund issues. So, it is a GST refund circular that received several representations from the stakeholders and taxpayers looking for clarifications for specific issues related to the refund.
After releasing the circular, CBIC issued a clarification for the specific issues related to the refund of the excess balance in the cash ledger. It includes limitations for the filling application, certificate requirements, refund of the TCS or TDS balance in the cash ledger, etc. However, the CBIC further claimed that the time limit of the refund filling application under sub-section 1 of the CSGT Act's section 54 would not apply to refund the excess balance in the cash ledger.
For people who want to claim a refund on any interest and tax, the individual must make an application before the expiry date in the prescribed manner. However, the registered individual doesn't need to utilise the TCS or TDS credited amount to the cash ledger just to pay the tax liability.
The GST, or Goods and Service Tax, is levied on the supply of goods in India. It is a multi-stage, comprehensive, and destination-related tax that can be levied on each value addition. Hence, Indian taxpayers must be familiar with the recent and updated GST circulars or updated tax structure of GST. Here, we discussed the top three updated GST circulars with proper rules and regulations.
The GST circular 111 is one of the updated GST circulars. It clearly states all the procedures a registered person should follow when the individual claims a refund after a favourable order in any forum against his or her refund claim rejection in the FORM GST RFD-06.
Under the Goods and Services Tax, the Central Board of Excise and Customs issues the GST circulars. They also update the notifications and any necessary changes to the GST structure. The CBIC does it to maintain the overall functioning of GST.