The chatroom conversation revolves around inquiries related to GST, export-import matters, and the implications of recent regulatory developments. TNC Rajagopalan, an expert in tax and trade matters, provides insights and guidance on various queries posed by participants.
Firstly, he addresses concerns regarding the retrospective effect of CBIC circulars, particularly Circular No. 204/16/2023-GST, emphasizing their clarificatory nature and their enforcement by the GST department. Despite their retrospective application, Rajagopalan underscores that compliance is ultimately dictated by the law itself.
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CBIC Circulars and Retrospective Effect:
- Rajagopalan explains that circulars issued by the Central Board of Indirect Taxes and Customs (CBIC), such as Circular No. 204/16/2023-GST, serve to clarify existing legal positions related to GST.
- He emphasizes that these circulars have a retrospective effect, meaning that the GST department applies them retrospectively to transactions and scenarios predating the circular’s issuance.
- However, Rajagopalan underscores that while the GST department enforces these circulars retrospectively, ultimate compliance is mandated by the law itself, not merely by departmental circulars.
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RBI Master Direction and Export Outstanding:
- Referring to Para C.13 of Part C of the RBI Master Direction no.16/2015-16 on Export of Goods and Services, Rajagopalan addresses the query regarding export outstanding limitations imposed by AD Category – I banks.
- He critiques the condition set by the RBI, deeming it unrealistic due to its requirement that export outstanding not exceed 5 percent of previous year exports.
- Despite the impracticality of meeting this condition, Rajagopalan advises seeking necessary permissions from the RBI through the bank, providing all relevant details to support the request.
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EPCG Scheme and Export Targets:
- Regarding the Export Promotion Capital Goods (EPCG) scheme, Rajagopalan clarifies that if a company fails to achieve the stipulated annual average exports in one year, it can compensate for the shortfall in subsequent years.
- He cites Para 5.18 of the Hand Book of Procedures (HBP), which allows for maintaining the stipulated average on a cumulative basis over multiple years.
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Implications of GSTAT President Appointment:
- Rajagopalan discusses the appointment of Justice (Retd.) Surya Kumar Mishra as the first President of the GST Appellate Tribunal (GSTAT).
- He notes that with this appointment, the period of limitation for filing appeals to GSTAT commenced on May 6, 2024, and appeals must be filed before August 5, 2024.
- However, Rajagopalan acknowledges certain pending issues related to the appointment of Judicial and Technical Members to GSTAT, as well as infrastructure concerns for filing appeals. Consequently, he suggests the potential for further extensions of the filing deadline by the government.
