Maharashtra Tax Practitioners’ Association has made a representation on Confusion related to Levy of GST under RCM on Residential Property, Rejection of Appeal for non-submission of Certified copy of order from Authorities and Issues related to GTA Time Limit Of 16.08.2022 For Submission Of Annexure V.
Maharashtra Tax Practitioners' Association has made a representation on Confusion related to Levy of GST under RCM on Residential Property, Rejection of Appeal for non-submission of Certified copy of order from Authorities and Issues related to GTA Time Limit Of 16.08.2022 For Submission Of Annexure V.
MAHARASHTRA TAX PRACTITIONERS' ASSOCIATION
Date 19th Aug 2022
To
Smt. Nirmala Sitharaman
Chairman, Goods and Service Tax Council and
Hon'ble Union Minister of Finance, Government of India,
North Block, New Delhi – 110001
Subject: Representation on a) RCM levy on Residential Property b) GTA Declaration c) Appeal Related
Respected Sir/Madam,
We, Maharashtra Tax Practitioners' Association (MTPA, formerly known as The Western Maharashtra Tax Practitioners' Association), was formed in 1950 with the object to assist the professionals and resolve common problem faced by the tax professional. MTPA represents Tax Consultants, Advocates, Chartered Accountants & Cost Accountants who are practicing in taxation, corporate and other allied laws. Association's primary objective is, to help the member to get acquaint with changes in various laws as well to help the government, by representing, issues faced by taxpayer as well as professionals
We are thankful to you for various measures taken on GST. We would like to invite your attention to below ambiguity and hardship faced by taxpayer.
A. CLARIFICATION REQUIRED ON BELOW ISSUES, RELATING TO RECENT 47TH GST COUNCIL DECISION, RELATING TO RCM ON RESIDENTIAL DWELLING, IN ORDER TO AVOID UNNECESSARY DISPUTE:
Vide Notification No. 05/2022 – CT Rate dated 13th July 2022, government has levied RCM on Renting of Residential Dwelling. Below is relevant Entry added in RCM category:
- In this regard, there is lot of confusion and uncertainty, across the country, on below issues relating to said RCM Entry.
- We request you to kindly issue suitable clarification in this regard, on urgent basis to avoid unnecessary litigation and to ensure proper compliance of law
B. APPEAL IS REJECTED AS 'CERTIFIED COPY OF ORDER' FROM AUTHORITY IS NOT SUBMITTED, WHERES AUTHORITIES ARE SENDING ORDERS ON EMAIL:
- LEGAL PROVISION: As per Rule 108(3) of CGST Rules 2017,
A 'certified copy of the decision or order' appealed against shall be submitted within seven days of filing the appeal.
where the said copy is submitted after seven days, the date of filing of the appeal shall be the date of the submission of such copy
- HARDSHIP FACED:
As per Rule 108(3) of CGST Taxpayer is required to submit "Certified Copy of Order" to Appellate authority, after submission on appeal on GST Portal. However, what is meaning of certified copy of order is not provided in said rules. Whether it is to be certified by officer or taxpayer is not mentioned. Due to this different practice is adopted across India.
Also with the advent of technology and requirement of law, now a days, adjudicating authorities are sending notices on Email / Uploaded on Portal. Sometimes said notices are digitally signed. In such case, signed Hard copy of Order is not provided to taxpayer.
It is observed that, Appellate authorities are rejecting the appeal, in case of Certified copies of order from authorities is not submitted by taxpayer, (whereas self-certified copy of order is submitted).
This is resulting into Big Hardship on Taxpayer for his no mistake.
Just for this small issue, which is also due to ambiguity in provision and change in methodology of sending notices on Email/Portal, Taxpayer is required approach High Court for Relief. Below are few instances, where high court has given relief to taxpayer on the issue of "Certified Copy of Order"
- DEBABRATA SANTRA VS ASSISTANT COMMISSIONER OF REVENUE, TAMLUK CHARGE & ORS
[ Calcutta High Court – WPA 17055 of 2022 dt. 16.08.2022]
[2021 (6) TMI 636 – ORISSA HIGH COURT , W.P.(C) No.14887 of 2021 dt 10th June 2021 ]
- RECOMMENDATION:
Since now a days authorities are providing Copies of Order on email/Portal, it is recommended that,
- Kindly remove said requirement of submission of Certified copy of Order. OR
- Else, Certified Copy is to be defined to include Certified by Taxpayer.
We are moving towards, Ease of Doing Business. Such ambiguous requirement cause hindrance to Ease of Doing Business and access to appeal mechanism for justice. Therefore, we request to kindly make suitable amendment in regulation or issue circular, on the line with above mentioned recommendation.
C. GTA – TIME LIMIT OF 16.08.2022 FOR SUBMISSION OF 'ANNEXURE V' AS PER NOTIFCATION NO 3/2022 CT RATE DATED 13TH JULY 2022, IS TO BE CONDONED DUE TO HOLIDAY IN VARIOUS PARTS OF COUNTRY FROM 13TH AUG TO 16TH AUG:
As per above referred notification, Goods Transport Agent (GTA) who wish to opt Forward Charge Mechanism is required to submit Declaration in Form Annexure V upto 16th Aug 2022. However, in many parts of country, there happens to have holiday from 13th Aug 2022 to 16th Aug 2022. Due to which many Transporters who wish to submit said form are unable to submit or submitted after date mentioned.
This restriction, is directly affect entry in Forward Charge and it might attract unnecessary dispute. Therefore request to :
- kindly issue suitable clarification or amendment in said notification so as to provide further period of 1-2 week or delay condonation in submission of the same, as consequently 4 days holiday was there from 13th Aug to 16th
- Also, it is requested that online option for submission of Annexure V should be provided at earliest on GST Portal.
We again request our government to kindly take note of above issue and issue suitable clarification / amendments. This will help to achieve objective of:
- Ease of Doing Business
- Unnecessary Dispute and litigation can be avoided if recommendation are accepted.
FOR MAHARASHTRA TAX PRACTITIONERS' ASSOCIATION
CC:
1) Shri Narendra Modi, The Prime Minister of India
152, South Block, Raisina hills, New Delhi 110011
2) Bhagwat Karad, The Minister of State finance
North Block, New Delhi – 110 001
3) Devendra Fadanvis, The Deputy Chief Minister & Finance Minister of Maharashtra Mantralay, Madam Kama Road, Nariman Point, Mumbai 400 032
4) Hon'ble GST Council Secretariat
5th Floor, Tower II, Jeevan Bharti Building, Janpath Road,
Connaught Place, New Delhi-110 001
5) The Chairman of Central Board of Indirect Tax and Custom, North Block, New Delhi – 110001
6) Commissioner, GST Policy wing
North Block, New Delhi – 110001
7) The Principal Chief Commissioner of Central Tax,
GST Bhavan, Sassoon Road, Pune 411001
8) The Additional Commissioner of State Tax,
GST Bhavan, Yerwada