Circular, 2022

Text

Reproduced from the document India Code holds for this instrument. The Gazette prints Hindi and English side by side and this is the English; the Department's own PDF remains the authority.

Office of the Commissioner, Commer cial Tax, Uttar. Pradesh, (GST Section) .

Lucknow: Dated; 26 Ppril 52022 All. Zonal Additional Commissioner, Gr ade - 1 Commercial Tax, ‘Uttar Pradesh,’ : *.

Subject: Clarification in respect of certain GST. related issues - reg. Various . representations have: beets ree eived from: taxpayers, ‘and other stakeholders secking clarification in respect of certain, issues pertal ning to GST laws. The i issues have been examined. In order to ensure uniformity i in the: insplementation of the provisions of the law across field formations, the. Commissioner, in exercise of its powers conferred by section 168 of the Uttar Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as “UPSGST Act”), , Section - 16 (4), as amended with effect from 01.01.2021, provides |.

‘| that a registered person shall |” ‘not be entitled ‘to take input tax ) eredit in Tespect of any invoice or debit note for: supply’ of | goods or: services or both after.

| the due date of furnishing of the return under section 39 for the f month. of September following.

the end of financial year: to: me | which ‘such invoice or: debit | - note pertains or furnishing of | the -¢elevant -annual return, | ~ hereby clarifies each of these i issues. as Sunder:

Issue ~ Glatification | aes ween hnmenene 1, With effect from O4.01. 2021, section 16(4) of the UPSGST Act, 2017 was amended vide the: Uttar Pradesh Goods and ‘Services Tax |:

(Third Amendment)Act, 2020,-so as to’ delink the date of issuance of debit note from the date “of issuance of the underlying © lnvoice for | "Purposes of availing input tax credit. « The amendment made j 4S shown as below:

“A registered person. shall not be entitled te. take input tax credit in respect of any - ‘invoice or debit note for supply of goods or "services. or. both after the due’ date of furnishing of the réturn under’ section 39 forthe month of September following the A : tyes whichever is earlier.

Doubts have. . been, .

dates are relevant — to determine the. ‘financial year’ for the purpose of | section 16(4):

(a) date of issuance of r debit note, or

(b) date of: issuance; “of underlying i INVOICE. » | 2. Whether any, availment of input tax. credit, on \ after... 01.01.2021,.

respect - of debit notes | issued either prior to or | after 01.01.2021, will be governed — by provisions of the amended section 16(4), ~ or the amended provision will be applicable only in | — respect of the debit notes.

issued after 01.01.2021? seeking following clarification...

1. Which of the. following the | d of ‘financial year to. which such invoice OL, inveiee—ralating—to steht debit note.

‘oh rt@ins -.or furnishing. of. the relevant -annual return, whichever is earlier.’ As. can. be seen, the words.“ invoice relating t to 7 sugh:’ -were omitted w.e.f. 01.01.2021.

The intent of law as. specified in the . Memorandum explaining the Finance Bill, ~~ 2020, states that “Clause. 118 of the Bill seeks ' to amend sub-section.(4). of section 16 of the Central. Goods and. Services Tax Act so as to detink the date of issuance of debit note.from the date of- issuance. of. the . underlying invoice for purposes of availing input tax credit.

b) . Accordingly, it is clarified that:

wef O1. 01.2021, in: case of debit notes, ‘the date of issuance of debit. note (not the of. ‘uriderlying:. invoice) - ~ Shall determine the relevant’ financial year for the: purpose of: section. - +104)” of . the UPSGST Act. ~ The -availment of ITC on’ debit notes in respect of amended provision shall be applicable from 01.01.2021. Accordingly, of ITC on or. after in respect of debit . notes for ‘availment.

: ‘4ssued either prior to or after 01.01.2021, "os" the eligibility for availment of ITC will -be governed by the amended provision of section 16(4), whereas any ITC availed prior to 01.01.2021, in respect of debit notes, shall be governed under the provisions of section 16(4), as it existed before the amendment | _ Said on Has tration IA debit note dated 07.07. 2021 is issued in respect of the original invoice dated 16.03.2021. As the invoice pertains to F.Y. 2020- | 21, the relevant financial year for availment of ITC in respect of the said invoice in terms of '|-Section 16(4) of the UPSGST shall be 2020-21.

ae “However, as the debit note has been issued in FY ‘| 2021-22, the relevant financial year for availment ‘of. ITC in respect of the said debit note shall be | 2021-22 in terms of amended provision of section | 16(4) of the UPSGST Act.

|| Mlustration 2. A debit note bas. been issued on | 10.11.2020 dated :

15.07.2019. As per amended_ provision of section in respect an invoice.

: |: 16(4), the relevant financial year for availment.of 7 input tax credit on the said debit note, on or after | 01.01.2021, will be FY 2020-21 and‘accordingly, , _| the registered person can avail ITC on the same till due date of furnishing of FORM GSTR-3B for the month. of September, 2021 or furnishing of the annual return for FY 2020-21, whichever is Whether carrying physical copy.

of invoice is compulsory during | movement of goods in casés | where suppliers have issued | “manner | - invoices in the prescribed under rule 48 (4). of the UPSGST Rules, 2017 (i.e.

in cases of e-invoice).

~ Rule..138A (iy of the UPSGST Rules, 2017 |.

“inter-alid, provides that the person in. charge of a conveyance shall carry— (a) the invoice or bill of supply or delivery challan, as the case may be; and (by a copy of the e-way dill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device. embedded: on to the conveyance in such manner as may be notified by the Commissioner. _ Further, rule 138A (2) of UPSGST Rules, after being amended vide Notification No.- that “In case, invoice is issued in the:manner prescribed under sub-rule (4): of rule-48, the:

Quick Reference (QR) code. having an embedded Invoice Reference Number (IRN) in it, may be produced electronically, for \ verification by the proper officer in lieu of the physical ¢ copy of such tax invoice” BB. A conjoint ‘reading of. ules 138A. ay and I 138A, (2) of UPSGST Rules;. 2017 clearly indicates that there. 1S: no requirement, to carry _ the, physical copy of tax invoice in cases . where -e-Invoice .has. been.,.generated. by, the | supplier, After, amendment, the. revised rule 138A;(2),-States: in: unambiguous. words - that whenever: e-invoice: has -been generated, the Quick. “Reference (QR):.code,:. having’ ‘an embedded Invoice Reference. Number A{IRN) | in, dt, may: be: produced electronically for soo a verification ‘by:.the.proper officer-in. lieu: of ane) the physical copy of such.tax.invoice.- 4, Accordingly, it is clarified, that there is.no- need -.to- carry .the: -physical copy of tax generated: by the. supplier. in the ‘manner | prescribed under rule 48(4) of the UPSGST ” Rules: -and- - production. of ‘the ~ Quick Response (QR). code: having: an embedded:

Invoice... Reference ~ Number-: ‘ (URN) electronically; for. verification. by the . proper officer, would suffice. : ae | Whether the first proviso to] 1. The term’ ‘subjected’ to’ export ‘duty’ used section 54(3) of UPSGST / in “first: proviso ©to ‘section’ 543) of ‘the CGST Act, prohibiting refund UPSGST Act, 2017 means where the goods of unutilized ITC is applicable are’ actually iéviable' to export duty and in case. of exports of goods . suffering, export duty, at. the time of export. which are having NIL rate of | Therefore, goods, in respect of which either export duty. Ce “NIL rate is: specified i in Second Schedule to / ms the Customs Tariff Act, 1975 or which are | fully exempted from payment of export duty by. virtue of any. customs. notification or which. are not, covered under: Second Schedule to the Customs Tariff Act, 1975, cannot be considered to be subjected to any export duty under Customs Tariff Act; 1975.

2. Accordingly, it is clarified that only those ___goods which are actually subjected to Circular.

export duty i.e., on which some “export duty has to be paid at the time of export, will be covered under the restriction imposed under section 54(3) from availment of refund of accumulated ITC.

Goods, which are not subject to any |.

export duty and in respect of which either NIL rate is specified in Second Schedule to the Customs Tariff Act, 1975 or which are fully exempted from payment of export duty by. virtue. of any customs notification or which:..are. -not...covered. under. Second Schedule to the Customs. Tariff Act, 1975, | would. not be covered: by the restriction imposed under. the first: proviso to section 54(3) of the UPSGST Act for the purpose of availment. of refund. of accumulated . IPC.

tt 1S requested that suitable trade notices t may be issued to public icize the contents of this "Difficulty, if any, in the implementation of this Circular ‘may be brought to the n notice of _ the Undersigned, - ‘By Order, - Ze 412 | ane Commissioner, Commercial Tax, Uttar. Pradesh. pen kee

Provisions this circular answers to

Read out of the instrument itself: an enabling provision is one it says it was made under, which is the power it rests on. The rest it names without resting on.

Other instruments under the same Act

All of the The Uttar Pradesh Goods and Services Tax Act, 2017