InTouch: India

Notifications/Circulars for CGST

CGST Notifications

• Notification No. 01/2022- Central Tax dated 24-02-2022 Seeks to implement e-invoicing for the taxpayers having aggregate turnover exceeding Rs. 20 Cr from 01 st April 2022.

• Notification No. 02/2022 - Central Tax dated 11-03-2022 Seeks to Appoint Common Adjudicating authority for adjudicating the show cause notices issued by DGGI under GST.

Case laws

• The Supreme Court in case of Toyota Kirloskar Motor Private Limited, under the Pre-GST regime, has held that outdoor catering services provided to employees within the employer’s premises was for ‘personal use’ or ‘personal consumption’ of the employees and hence would be excluded from the definition of ‘Input services’ as provided under Cenvat Credit Rules, 2004 (‘CCR’) i.e., no credit would be available in case of such service.
• Gujarat Appellate Authority for Advance Ruling (AAAR) in the matter of M/s. Aristo Bullion Pvt. Ltd. has held that Section 16(1) of the CGST Act only states the eligibility and conditions for taking ITC. It does not impose any restriction on utilization of the legitimately earned ITC. Section 16(1) nowhere mandates to prove one-to-one correlation of inputs with particular outward supply. Therefore, the amount of input tax credit lying in the electronic credit ledger can be utilised by the appellant for making any payment of output tax payable by him.
• Maharashtra Appellate Authority for Advance Ruling (AAAR) in the matter of M/S. Cummins India Limited [Advance Ruling No. MAH/AAAR/AM-RM/01/2021-22 dated December 21, 2021] has held that registration and compliance as an Input Service Distributor (ISD) is mandatorily required to distribute ITC on common input services received by a unit on behalf of other units. AAAR has concluded that, for the purpose of distribution of ITC of common input services, registration as an ISD is mandatorily required. 
• Maharashtra Bench of the Authority for Advance Ruling (AAR) in the case of Emcure Pharmaceuticals Limited, held that no GST shall be payable for recoveries made on account of provision of Canteen facility, Notice pay recovery and Transportation facility to employees. It was ruled that all three of the aforementioned recoveries shall not to be treated as a transaction made in the course or furtherance of business and consequently, no GST shall be payable.
• Authority of Advance Rulings (AAR) in the case of Ganga Kaveri Seeds Pvt. Ltd. [TS-52-AAR(TEL)-2022-GST] and M/s M. NARASIMHA REDDY & SONS [ 2022-VIL-33-AAR] held that supply of seeds made by the applicants are not falling under the ambit of agricultural produce and accordingly the outsourced activities (storage, packing, loading, unloading, cleaning, grading, transportation etc) would not be exempt under GST law. Hence, no exemption on outsourced activities in relation to seeds if not qualifying as agriculture produce.

For more information, please contact:
Pratik Jain
National Leader - Indirect Tax, PwC India