CBIC Circulars Pursuant To The 48th GST Council Meeting

The Central Board of Indirect Taxes and Customs (CBIC) issued several circulars after the 48th GST Council Meeting held on December 18, 2020. Some of the important circulars are:

1. Circular No. 143/13/2020-GST: Clarification on applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance by non-resident taxable persons.

2. Circular No. 144/14/2020-GST: Clarification on refund related issues.

3. Circular No. 145/15/2020-GST: Clarification on issues related to application of sub-rule (4) of rule 36 of the CGST Rules, 2017.

4. Circular No. 146/16/2020-GST: Clarification on restriction in availment of input tax credit in terms of sub-rule (4) of rule 36 of the CGST Rules, 2017.

5. Circular No. 147/03/2021-GST: Clarification on issues related to GST on supply of various modes of transportation.

6. Circular No. 148/04/2021-GST: Clarification on issues related to GST on services related to loading, unloading, packing, storage or warehousing of goods.

7. Circular No. 149/05/2021-GST: Clarification on issues related to GST on supply of food and drinks by educational institutions.

These circulars provide much-needed clarity on several issues related to GST compliance and can be helpful for businesses and taxpayers to avoid any non-compliance issues.

Impact of the CBIC circulars on taxpayers

The CBIC circulars issued pursuant to the 48th GST Council Meeting provide guidance to taxpayers on various GST-related issues, including input tax credit, registration, and compliance. The impact of these circulars on taxpayers will depend on the specific issues addressed in each circular and the nature of the taxpayer's business.

For example, the circulars on input tax credit provide clarity on the conditions for claiming credit and the procedure for availing credit, which will help taxpayers to ensure compliance with the GST law and avoid any disputes with tax authorities. Similarly, the circulars on registration and compliance provide guidance on various procedural and technical aspects of GST, which will help taxpayers to avoid errors and ensure timely compliance with the GST law.

Overall, the CBIC circulars are intended to provide clarity and guidance to taxpayers and help to promote compliance with the GST law. By following the guidance provided in the circulars, taxpayers can avoid penalties and other legal consequences and ensure that they are complying with the GST law in a timely and accurate manner.

Significance of the 48th GST Council Meeting

The 48th GST Council Meeting was significant for several reasons. First and foremost, it brought much-needed relief to small and medium-sized businesses by extending the due dates for filing GST returns and reducing the interest and late fee charges for delayed filing. This move aimed to ease the compliance burden on taxpayers, particularly in light of the COVID-19 pandemic's economic impact.

The meeting also witnessed several changes in the GST rules, such as the introduction of a new return filing system, simplification of the annual return filing process, and changes in the way the Input Tax Credit (ITC) is claimed. These changes are expected to improve the ease of doing business and reduce the compliance burden for taxpayers.

The meeting also brought much-needed clarity on several contentious issues, such as the levy of GST on services provided by intermediaries, the treatment of supplies made to Special Economic Zones (SEZs), and the eligibility of taxpayers for availing the Composition Scheme. The Council also deliberated on several industry-specific issues, such as the GST rates on COVID-19-related goods and services, the treatment of MRO services in the aviation sector, and the GST rates on fertilizers.

Overall, the 48th GST Council Meeting was a significant step towards streamlining the GST regime and addressing the concerns of taxpayers.

FAQs

Q: What is CBIC?

A: CBIC stands for Central Board of Indirect Taxes and Customs. It is a part of the Department of Revenue under the Ministry of Finance, Government of India. CBIC is responsible for administering and collecting indirect taxes, including GST.

Q: What is the significance of the 48th GST Council Meeting?

A: The 48th GST Council Meeting was held on June 12, 2021. The council made several important decisions, including the reduction of GST rates on several COVID-related goods, the extension of the annual return filing deadline, and the introduction of several new measures to simplify GST compliance.

Q: What are CBIC circulars?

A: CBIC circulars are official communications issued by the Central Board of Indirect Taxes and Customs. They provide guidance on various aspects of GST, including compliance requirements, procedural issues, and changes to the GST law. Circulars are binding on taxpayers and tax authorities.

Q: What were the key circulars issued by CBIC after the 48th GST Council Meeting?

A: The key circulars issued by CBIC after the 48th GST Council Meeting include Circular No. 157/13/2021-GST, which clarifies the treatment of secondary or post-sales discounts under GST, and Circular No. 158/14/2021-GST, which provides guidelines on the applicability of GST on director's remuneration.

Q: What is the impact of the CBIC circulars on taxpayers?

A: CBIC circulars provide clarity on various aspects of GST, which helps taxpayers to understand their compliance requirements and avoid penalties for non-compliance. Taxpayers are required to comply with the guidelines provided in the circulars, and any deviation may lead to adverse consequences.