Page 57 - GSTL_2nd July 2020 _Vol 38_Part 1

2020 ] NEWS DESK J31
A Ford India spokesman said a consignment of parts required for manu-
facturing and export of products is on hold in Chennai.
“We are working with the authorities and supporting them with neces-
sary documents and details requested by them.” the spokesman told Reuters.
Pharmaceutical consignments are also stuck at Chennai and other ports
and at an airport, and drug companies have been told their shipments will be
released after rigorous scrutiny of each container, down to every drum, accord-
ing to a Senior Industry Executive.
“This testing process would take at least a week to complete and will
cause disruption,” the executive said.
The Chennai Customs Brokers’ Association, a trade body for logistics
companies, told its Members on 23-6-2020 to expect some delays, as it had re-
ceived an internal instruction from the Customs Department to hold all con-
signments which have originated from China.
“An official trade notice/circular (is) still awaited from Customs,” the
association said in its notice.
[Source : Sudarshan Vardhan and Manoj Kumar in Asian Age, New Delhi,
dated 26-6-2020]

GST Council Meetings : Waste of time and resources
Of late, the meetings of the GST Council are becoming like the annual
Union Budgets - raise expectations only to disappoint the taxpayer later. Much
was expected from the 40th Meeting of the GST Council but what transpired was
only a few token measures.
It reduced late fee and interest for those with tax liabilities and waived
off late fee completely for those with no tax liabilities. There was also an an-
nouncement prior to the meeting that nil returns could be filed through SMS
also.
There was nothing on GST rates and nothing on how the Council plans
to quench the thirst of the States for their pound of flesh. There were some indi-
cations given of GST collections - around ` 45,000 crore. It is a moot point to dis-
cuss whether the Council should spend so much to time and resources to discuss
things such as late fees and penalties.
The Central Board of Indirect Taxes and Customs (CBIC) can be given
this responsibility with a mandate to run their proposals through the Council.
The Council has plenty of reasons to have detailed meetings at regular intervals.
With the GST Appellate Tribunal yet to get up and running due to its faulty con-
stitution, taxpayers have no option but to approach the Authority for Advance
Rulings (AAR) to resolve their issues. It is nobody’s guess that had the Tribunal
been formed, many issues decided by AARs across the country would have
landed up before the Tribunal.
The decisions of the AAR on GST can range from the controversial (Raja-
sthan AAR on directors’ remuneration) to the ordinary (most AAR’s on anti-
profiteering). A recent decision of the Karnataka AAR hits a person where it
hurts the most - his stomach.

GST LAW TIMES  2nd July 2020  57