Based on the recommendations of the GST Council made in its 53rd meeting, Section 128A has been inserted in the CGST Act, 2017 with effect from November 01, 2024 to provide for waiver of interest or penalty or both, relating to demands under section 73 of the CGST Act pertaining to Financial Years 2017-18, 2018-19 and 2019-20, subject to certain conditions. Clarification has been issued to clear various doubts related to the said amnesty scheme.
(Circular No. 238/32/2024-GST dated October 15, 2024)
The United States continues to expand sanctions on Russia in response to its invasion of Ukraine and has expanded secondary sanctions targeting Russia. To this end, the Office of Foreign Assets Control (“OFAC”) has imposed secondary sanctions on any foreign financial institution that facilitates prohibited transactions. In light of the OFAC prohibitions on certain transactions related to Russia, specifically in certain critical goodsA and operating or having operated in certain sectorsB in Russia, in that case bank will not support, facilitate or process any transaction or banking service that relates directly or indirectly to transactions involving the critical goodsA and/or sectorsB in Russia (please refer to Annex A and B).
Prior to entering into any transaction or service, one should ensure it is not
prohibited by any such sanctions.
Annex A
The Russia Critical Items Determination issued by U.S. Office of Foreign Assets Control, pursuant to subsection 11(a)(ii) of Executive Order 14024 identifies certain items that support Russia’s military-industrial base. Please note that the list is subject to periodic updates or additional determinations may be issued from time to time.
Annex B
Technology sector of the Russian Federation economy: The term technology sector of the Russian Federation economy includes activities such as the production, procurement,
research, development, design, engineering, testing, servicing, financing, distribution, use, or transport involving the Russian Federation, of software, equipment, electronics, items, tools, materials, or devices, and any components, parts, or accessories of the foregoing, related to the fields of computing, engineering, applied mathematics, or applied sciences involving the Russian Federation and any related activities, including the provision or receipt of goods or services involving the technology sector of the Russian Federation economy.
Defense and related material sector of the Russian Federation economy: The term defense and related materiel sector of the Russian Federation economy includes military, armed forces, or security forces of or within the Russian Federation; the use of arms or related materiel by military, armed forces, or security forces of or within the Russian Federation; any person designing, developing, manufacturing, supplying, financing, procuring, or distributing goods, services, or technology to, from, or involving military, armed forces, or security forces of or within the Russian Federation; and any related activities, including the provision or receipt of goods, services, or technology involving the defense and related materiel sector of the Russian Federation economy. The term defense and related materiel sector of the Russian Federation economy also includes acquisition, possession, procurement, research, design, development, testing, evaluation, manufacture, maintenance, upgrade or refurbishment, shipping, supply, sale, transfer, or storage to, from, within, for, transiting, or on behalf of the Russian Federation of arms or related materiel of all types; enablers, aggregates, components, parts, as well as related documentation and instructions for any such arms or related materiel; or training for
the use of included systems, provision of simulation equipment, documentation (including
training manuals, maintenance orders, or technical bulletins), prototypes, software upgrades, and licensing and manufacturing agreements for such items.
Construction sector of the Russian Federation economy: The term construction sector of the Russian Federation economy includes activities such as the production, procurement, devising, framing, design, testing, financing, distribution, or transport involving the Russian Federation, of goods, services, or technology to fabricate, shape, alter, maintain, or form any buildings or structures, including the on-site development, assembly, or construction of residential, commercial, or institutional buildings, or of transportation infrastructure, in the Russian Federation; and any related activities, including the provision or receipt of goods, services, or technology to, from, or involving the construction sector of the Russian Federation economy.
Aerospace sector of the Russian Federation economy: The term aerospace sector of the
Russian Federation economy includes activities such as the production, procurement,
development, design, testing, servicing, financing, distribution, use, or transport involving the Russian Federation and its airspace, of aircraft or any other device used or intended to be used for flight or activities in the air or in space, missiles, unmanned aerial vehicles, space-based vehicles, satellites, high-altitude balloons, any other device that operates above the surface of the earth, and any items, components, parts, or accessories intended for the foregoing; airports or any other area of land or water used or intended to be used for a purpose related to the aerospace sector of the Russian Federation; and any related activities, including the provision or receipt of goods, services, or technology involving the aerospace sector of the Russian Federation economy.
Manufacturing sector of the Russian Federation economy: The term manufacturing sector of the Russian Federation economy includes activities such as the creation, modification, repair, testing, or financing, of goods by manual labor or machinery involving the Russian Federation and any related activities, including the provision or receipt of goods, services, or technology to, from, or involving the manufacturing sector of the Russian Federation economy. Note that persons conducting or facilitating transactions that are exempt or authorized by OFAC—such as those related to the provision of agricultural commodities, food, medicine, or medical devices, or related to energy—will not be subject to sanctions under E.O. 14024.
Extracted from: 1126 | Office of Foreign Assets Control (treasury.gov)
Reserve Bank of India (RBI) issues Master Circular to regulate import of goods and services in India. For delay remittance following guidelines of RBI Master circular should be complied
AD Category – I banks can consider granting extension of time for settlement of import dues up to a period of six months at a time (maximum up to the period of three years) irrespective of the invoice value for delays on account of disputes about quantity or quality or non-fulfilment of terms of contract; financial difficulties and cases where importer has filed suit against the seller. In cases where sector specific guidelines have been issued by Reserve Bank of India for extension of time (i.e. rough, cut and polished diamonds), the same will be applicable.
While granting extension of time, AD Category –I banks must ensure that:
a. The import transactions covered by the invoices are not under investigation by Directorate of Enforcement / Central Bureau of Investigation or other investigating agencies;
b. While considering extension beyond one year from the date of remittance7 , the total outstanding of the importer does not exceed USD one million or 10 per cent of the average import remittances during the preceding two financial years, whichever is lower; and
c. Where extension of time has been granted by the AD Category – I banks, the date up to which extension has been granted may be indicated in the ‘Remarks’ column.
(iii) Cases not covered by the above instructions / beyond the above limits, may be referred to the concerned Regional Office of Reserve Bank of India.
(iv) The above shall be reported in IDPMS as per message “Bill of Entry Extension” and the date up to which extension is granted will be indicated in “Extension Date” column.
Ministry of Heavy Industries issued order dated 28.08.2024 mandating BIS certification for specified machinery and electrical equipment to ensure to meet safety and quality standards. This order will be applicable w.e.f. 28.08.2025. Companies are required to check applicability of this order for all domestic and import products for smooth sourcing of products. This order will not be applicable to goods or articles manufactured domestically for export.
Data for view of taxpayer is to be retained for seven years only. Therefore, return data will not be available to view beyond 7 years for taxpayers in GST portal. (Advisory dated September 24, 2024)
The Institute of Company Secretaries of India (ICSI) has requested Ms. Deepti Gaur Mukherjee, Secretary of the Ministry of Corporate Affairs to extend the timeline for the requirement of DEMAT for Private Companies. Last date of dematerialization of shares is 30.09.2024.
Following key recommendations have been made in the 54th GST Council meeting:
Import of services by an establishment of a foreign airline company from a related person or any of its establishment outside India, when made without consideration, to be exempted. Further, past period to be regularised on ‘as is where is’ basis.
Renting of commercial property by an unregistered person to a registered person to be brought under Reverse Charge Mechanism (RCM).
Ancillary/intermediate services provided by Goods Transport Agency (‘GTA’) in the course of transportation of goods to constitute a composite supply.
Rules and forms to be inserted for providing the procedure and conditions for availment of amnesty scheme announced recently. Further, March 31, 2025, to be date before which the payment of tax to be made, to avail said benefits.
Special procedure to be notified for rectification of Orders, which are to be followed by the taxpayers against whom demand has been confirmed for wrong availment of ITC on account of contravention of time period of availment of ITC as per Section 16(4), but where such ITC is now available as per new timelines as provided under subsection (5) and (6) of the Section 16 of the CGST Act.
E-invoicing to be rolled out for B2C transactions. The pilot to be rolled out on voluntary basis in selected sectors and States.
Changes to be made in the rates of few goods and services.
The GST Council acknowledged the ongoing improvements to the current GST return system. Key enhancements include the introduction of:
• RCM Ledger
• Input Tax Credit Ledger (ITC) Reclaim Ledger.
• Invoice Management System (IMS)
Taxpayers will have the option to declare their opening balances for these new ledgers by October 31, 2024.
The Invoice Management System (IMS) will enable taxpayers to manage their invoices by accepting, rejecting, or keeping them pending for the purpose of claiming Input Tax Credit (ITC). This system is designed to be an optional tool for taxpayers, aimed at reducing errors in ITC claims and improving reconciliation processes. By using IMS, taxpayers can expect a reduction in notices related to ITC mismatches in their GST returns.
Honourable Delhi High Court held that as per Circular No. 125/44/2019-GST dated 18.11. 2019, furnishing BRCs is not a necessary condition for claiming refund in case of export of goods. Therefore, the refund application cannot be rejected merely due to non-submission of BRC. It is not mandatory for claiming refund.
The said Act has received the assent of the President on August 16, 2024. The provisions related to GST in the Budget 2024 are now in effect, unless notified otherwise. ((Press release dated August 16, 2024)
Pushkar Mer 