Kerala High court asked the GST official that why the products of the petroleum do not come beneath GST, must furnish the reply for the same in 10 days.
Hearing public interest litigation (PIL), a bench of Chief Justice S Manikumar and Justice Shaji P Chaly read the GST Council to justify grounds for not including petrol and diesel under the GST regime.
“Now different rates are being charged in different states and the same is due to a different tax rate levied by the state governments under their fragmented taxing policies. This is an impediment to harmonised national market as contemplated under Article 279(A) 6 of the constitution,” PIL mentioned. It also rendered that the state and the central taxes held with 60% of the rate of 1 litre of fuel.
If petrol and diesel are drawn beneath the GST then the market will be in coordination across the nations and the highest taxable cost shall be 28%. It is implemented that despite people who are indirect clients of fuel gets negatively influenced by the rise in the cost of the fuel.
“A welfare state must be the one where everyone is in a position to bear expenses of basic amenities. The unprecedented hike in fuel prices push the public to immense hardships by which their right to life guaranteed under Article 21 is violated, they rendered.”
PIL Respondents are the Union of India, Kerala Government, Petroleum Secretary, Goods and Service Tax Council and three major oil companies.
The fuel must come beneath the GST upon this discussion the union government and the GST council can not argue it poses serious executions on revenue collection. A constitutional duty was directed on the GST council to build some serious suggestions to engage petrol and diesel beneath the GST the PIL mentioned “To declare the non-inclusion of petrol and diesel under the GST regime are violative of the Article 14 and 21 of the constitution, it mentioned.”
Clarification on B2C QR Code
- Issue – 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.
- Clarification – It is observed that from the present wording of S. No. 4 of Circular No. 156/12/2021 dated 21stJune 2021, doubt arises whether the relaxation from the requirement of dynamic QR code on the invoices would be available to such supplier, who receives payments from the recipient located outside India through RBI approved modes of payment, but not in foreign exchange. It is mentioned that the intention of clarification as per S. No. 4 in the said circular was not to deny relaxation in those cases, where the payment is received by the supplier as per any RBI approved mode, other than foreign exchange.
Update on Registration of Cancellation
- CBIC has notified the update related to the registration of cancellation form REG-16 on the gst.gov.in website. “Taxpayers can now withdraw their application for cancellation of registration (filed in Form REG-16) unless the tax officer has initiated action on it.”
GST on notice pay, group insurance, phone bill: AAR
GST will be applicable on employee recoveries such as notice pay, group insurance and telephone bill, an Advance Authority of Advance Ruling (AAR) has said.
The ruling said that as in the case of notice pay, the company is actually “providing a service” to an employee and hence GST should be applied on that. Under the GST framework, tax is levied on any activity that is viewed as supply of service-whether directly or deemed supply.
GST Collection – October 2021
The gross GST revenue collected in the month of October 2021 is Rs. 1,30,127 crore of which CGST is Rs. 23,861 crore, SGST is Rs. 30,421 crore, IGST is Rs. 67,361 crore including Rs. 32,998 crore collected on import of goods and Cess is Rs. 8,484 crore including Rs. 699 crore collected on import of goods.