Goods and Services Tax – Due date for generation of FORM GSTR-2A and FORM GSTR-1A in accordance with the extension of due date for filing FORM GSTR-1 and GSTR-2 respectively – reg. – CGST – Circulars / Ordes – TMI Updates – Highlights
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Goods and Services Tax – Procedure regarding procurement of supplies of goods from DTA by Export Oriented Unit (EOU) / Electronic Hardware Technology Park (EHTP) Unit / Software Technology Park (STP)
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Goods and Services Tax – GST – Dated:- 7-11-2017 – New Delhi, Nov 7 (PTI) Finance Minister Arun Jaitley said today that the impact of structural reforms is behind us and the early economic indicators point to an improvement. Structural reforms like demonetisation and the roll out of the Goods and Services Tax would have had some consequences but they will help the economy in the long run, he said. Having undertaken two major structural changes which are extremely important for Indian economy, I think the impact being substantially behind us, the early indications for the future look to be positive. he said at the India Today Conclave here. In the last 2-3 months the Purchasing Managers' Index (PMI) data has come out positive, similar t
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three years in a row and the time was opportune to undertake structural reforms. Otherwise, the only option to structural reform that my predecessor could give you is policy paralysis, not my choice. The economy slowed to 5.7 per cent in the April-June quarter of the current fiscal, the weakest pace since 2014 as demonetisation sucked out 86 per cent of the currency in circulation throwing cash-dependent businesses in disarray and the implementation of GST from July 1 hit small and medium enterprises. The GDP growth had started to slip in the quarters before demonetisation, he said, adding that the manufacturing activity declined in the run up to the GST roll out from July 1 as businesses started destocking their goods. – News – Press rele
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Goods and Services Tax – Started By: – Brajesh Sinha – Dated:- 7-11-2017 Last Replied Date:- 17-9-2018 – If a registered recipient(third party exporter) is not registered with Export Promotion Council/ or freshly applied for, is he entitled for invoicing @0.1% from his supplier? (Ref.: notification no. 40/2017 -Central Tax (Rate)) ? – Reply By Ganeshan Kalyani – The Reply = The Notification states that reduced rate is applicable only when all the conditions mentioned in the notification is sati
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GST – GST Law and Procedure – 255 – Reduced liability of tax on homes under GST The CBEC and States have received many complaints that in view of the works contract Service Tax rate under GST at 12% in respect of under construction flats, complex etc., the people who have booked flats and made part payment before 1st July, 2017, are being asked to bear higher tax incidence for payments made after 1st July, 2017. This is against the GST law, as explained below. Construction of flats, complex, buildings have a lower incidence of GST as compared to a plethora of Central and State Indirect Taxes suffered by them under the earlier regime. Central Excise Duty was earlier payable on most construction material @12.5%. It was higher in case of ceme
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the flat. The earlier headline rate of Service Tax on construction of flats, residences, offices etc. was 4.5%. Over and above this, VAT @1% under composition scheme was also charged. The buyer only looked at the headline rate of 5.5%. In other Cities/States, where VAT was being levied under the composition scheme @2% or above, the headline rate visible to the customer was above 6.5%. What the customer did not see is the embedded taxes on account of cascading and sticking of input taxes in the cost of the flat etc. The situation has changed under GST. Under GST, full input credit is available for offsetting the headline rate of 12%. As a result, the input taxes embedded in the flat will not (& should not) form a part of the cost of the
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Goods and Services Tax – Started By: – Shivang Sharma – Dated:- 7-11-2017 Last Replied Date:- 8-11-2017 – The definition of Services under CGST Act specifically excludes money but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged.Banks are charging GST on Processing charges, etc as they are activities in relation to use of money, which is correct. But they are also charging GST on interest component of loan EMI's. The point here is interest charged by Banks is only for the use of money and use of money is not a service as per the definition of Services. The Servi
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when supply of goods or services is complete only after charging of interest, interest forms the part of taxable value.In routine, no GST is applicable on interest. It is further clear from the following extract and example :- GST – Time of Supply in GST – Procedure for – Reply By Ganeshan Kalyani – The Reply = I agree with the views of the experts. Also, i agree with the querist. GST is not leviable on the interest component. It is charged on bank charges. If your bank is charging GST then it would be on bank charges. However, it is advisable to get clarity from the bank. Thanks. – Reply By Shivang Sharma – The Reply = Many thanks for your reply experts… I don't accept the view that Banks action is covered by Section 15(2)(d) – Value
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. It was also not chargeable to Service Tax earlier i.e. pre-GST-era. GST is levaiable on the amount of interest only if interest is paid on account of default in payment. Your attention is also drawn to Sh.Maraippan Govindarajan's reply wherein he has clearly linked interest to penalty i.e. interest by virtue of default payment. When default occurs time of supply is complete only after payment of interest and in that situation interest forms the part of taxable value. Otherwise not at all. – Reply By Shivang Sharma – The Reply = Dear Sethi ji, Thank You for the clarification. My second message was for the post by Mr. Rajkumar Shukla ji. – Reply By Ganeshan Kalyani – The Reply = Agreed with Sri Kasturi Sir. Thanks. – Discussion-Forum –
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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 7-11-2017 – Meaning of Business [Section 2(17)] As per section 2(17) of the CGST Act, 2017 'business' includes – any trade, commerce, manufacture, profession, vocation adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit; any activity or transaction in connection with or incidental or ancillary to (a) above; any activity or transaction in the nature of (a) above, whether or not there is volume, frequency, continuity or regularity of such transaction; supply or acquisition of goods including capital assets and services in connection with commencement or closure of business; provision by a club, association, society, or any such
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ofession, vocation, adventure or wager or other similar activities are covered. It is immaterial whether such transactions are for pecuniary benefit or not. These terms have not been defined. 'Agriculture' has not been specifically included in 'business'. Example: M X is import-export dealer, owning and maintaining a hospital for charitable purpose which is providing medical treatment to poor patients. In that case, transactions of such hospital are also covered under the scope of 'business'. In Income Tax, business has been defined to include any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture. According to Halsbury (4th edition, Vol. 27), the word business
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as business there must be a course of dealings, either actually continued or contemplated to be continued with a profit motive, and not for sport or pleasure. Business includes: day-to-day running of the business, rationalization of business administration and modernization of machinery of business, preservation of business and protection of its assets and property from expropriation, coercive process or assertion of hostile title, payment of statutory dues and taxes imposed as pre-condition for commencement or carriage of business, things incidental to carriage of business. [Birla Cotton Spng. & Wvg. Mills Ltd v. CFT, 1967 (3) TMI 104 – CALCUTTA HIGH COURT ,, affirmed, 1971 (8) TMI 9 – SUPREME Court ]. Relevance of scope of 'busin
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Goods and Services Tax – GST – By: – cavamsi krishna – Dated:- 7-11-2017 Last Replied Date:- 7-11-2017 – Dear all, As per notification no 8/2017, Here by exempts intra-State supplies of goods or services or both received by a registered person from any supplier, who is not registered, from the whole of the central tax leviable thereon under sub-section (4) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017). Provided that the said exemption shall not be applicable where the aggregate value of such supplies of goods or service or both received by a registered person from any or all the suppliers, who is or are not registered, exceeds five thousand rupees in a day. As per notification no 38/2017, (Dated 13/10/2017) The
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Goods and Services Tax – GST – By: – CASanjay Kumawat – Dated:- 7-11-2017 Last Replied Date:- 9-11-2017 – In the present age of globalization, it is a universal phenomenon that multinational Companies (MNCs) have branches/subsidiaries/divisions operating in more than one country. In such a situation, it is common event for MNCs to transfer goods produced by a branch in one tax jurisdiction to an associate branch operating in another tax jurisdiction. While doing so, the MNCs concerned has in mind the goal of minimizing tax burden and maximizing profits but the two tax jurisdictions/countries have also the consideration of maximizing their revenue while making laws that govern such transactions. It is an internationally accepted practice that such transfer pricing should be governed by the Arm Length Price (ALP) Principle and the transfer price should be the price applicable in case of a transaction of arm s length. In other words, the transaction between associates should be priced in
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determination of reasonableness of expenditures between related domestic parties, the provisions of section 92 have been extended to include within its ambit the specified domestic transaction. Under GST regime, in Indian context, supply of goods and/or services between distinct person, as described in section 25(4) and (5) of the CGST Act, 2017, and related person, as defined in an explanation (a) attached with section 15 of the CGST Act, 2017, would be subject to levy of GST. Therefore, it is important to determine the correct value of supply of goods and services to distinct persons or related persons to avoid the litigation. As business entities look into the appropriate transfer price of transactions, they should be mindful of the GST implications arising from the transfer pricing adjustments. For instance, the retrospective increase in the transfer price of sales of goods is effectively an increase in the GST value of the supply of these goods. The increase in the value should b
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e term associated enterprises has been defined in section 92A of the Income Tax Act, 1961. Under GST Act, 2017, section 2(12) provides meaning of the term associated enterprises . Accordingly, associated enterprises shall have the same meaning as assigned to it in section 92A of the Income Tax Act, 1961. Accordingly, the term Associated Enterprise generally means any entity that participates directly or indirectly or through one or more intermediaries in the management or control or capital of another entity. Further, where two entities are commonly controlled by one or more controlling entities, such entities are also considered as Associated Enterprises . The Regulations further provide specific conditions and circumstances under which two entities are deemed to be Associated Enterprises. Some of these basic conditions include, ownership in the voting power of an enterprise exceeding the stipulated limit and right to appoint more than half of the directors on the governing Board of a
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ontrolled by a third person; together they directly or indirectly control a third person; or they are members of the same family. Distinct Persons As per section 25(4) of the CGST Act, 2017, a person who has obtained or is required to obtain more than one registration, whether in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purposes of GST Act. As per section 25(5) of the CGST Act, 2017, where a person who has obtained or is required to obtain registration in a State or Union territory in respect of an establishment, has an establishment in another State or Union territory, then such establishments shall be treated as establishments of distinct persons for the purposes of GST Act. Valuation aspects for transactions between distinct persons and related persons Under Income Tax Act, 1961, the Transfer Pricing (TP) Regulations require computation of ALP based on the prescribed TP
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7, provides provisions for determination of value of supply. Accordingly, the value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply. Section 15 of the CGST Act, 2017 deals with a situation where supplier and the recipient of the supply are not related persons. But in our case, we are discussing the situation where supplier and the recipient of the supply are related person. As per Rule 28 of the CGST Rules, 2017- Value of supply of goods or services or both between distinct or related persons, other than through an agent provides the valuation methods for the determination of value of supply. The text of Rule 28 is reproduced below: The value of the supply of goods or services or both between distinct persons as specified in sub-section (4) and (5) o
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lue of supply, are as follows: Open Market Value ( OMV ) Method Like kind and Quality Method (Or comparable method) Cost Plus Method (Rule 30 ) Residual Method (Rule 31 ) Resale price Method The various methods given in Rule 28 of the CGST Rules, 2017 have been discussed below: Open Market Value ( OMV ) Method The value of the supply of goods or services or both between distinct persons or where the supplier and recipient are related shall be the open market value of such supply. As per explanation (a) attached after Rule 35 of the CGST Rules, 2017, open market value of a supply of goods or services or both means the full value in money, excluding the integrated tax, central tax, State tax, Union territory tax and the cess payable by a person in a transaction, where the supplier and the recipient of the supply are not related and the price is the sole consideration, to obtain such supply at the same time when the supply being valued is made. It means the price at which the supplies of
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on Standards (IVS 1 – Market Value Basis of Valuation, Seventh Edition): The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion. From a taxpayer s perspective, open market value (OMV) is the value at which supply of goods and services being made to an unrelated person as per the market trend. The concept of OMV is most commonly invoked in inefficient markets or disequilibrium situations where prevailing market prices are not reflective of true underlying market value. Therefore, a taxpayer s may suffer in determination of value of supply for the similar goods in similar market conditions which is tedious task. Hence, the Department should issue suitable guidance note or advisory to determine the open market value in favorable market conditions or unfavorable market conditions. L
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ponents, materials, and the reputation of the goods or services or both first mentioned, is the same as, or closely or substantially resembles. This method is similar to the Comparable Method provides under Income Tax Act, 1961. Under GST, selection of comparables will be a tedious task for the taxpayers and any wrong determination of value of supply will invite the litigation in near future. For the purpose of selection of comparables, comparability analysis is to be performed by a comparison of the business activities and the Functions, Assets and Risks of the taxpayer vis-à-vis that of independent taxpayers. Several financial parameters and quantitative filters are applied while screening comparables. Finally, qualitative analysis is carried out to identify final set of comparables. There is a lot of subjectivity in this matter, leading to numerous litigations. For instance, issues in determination of comparables could be: Accurate adjustment for difference in Geographic segm
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comparison of the product shall be made between the product in respect of characteristics, quality, quantity, functional components, materials, and the reputation of the goods or services or both. The GST authorities or Department must demonstrate comparability of these factors in order to determine the value of supply of goods or services of like kind and quality otherwise it will add various interpretational issues, classification issues, etc in newly launched GST, hence, lead to litigation. There are so many judicial pronouncements on selection comparables under Income Tax Act, 1961, some of industry wise issues, for instance, are as follows: Consultancy Services : In TA Associates Advisory Private Limited v. DCIT 2016 (2) TMI 503 – ITAT MUMBAI , it was held that the assessee, rendering non-binding investment advisory services to associated enterprise could not be compared to a company engaged in providing merchant banking and investment banking services. ITES Sector : In Hewlett Pa
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and/or services, in case of services, the application of this Rule will be very difficult task for the authorities because quality of services or services for the satisfaction can t be measured. Cost Plus Method If the value is not determinable under earlier valuation methods, value of supply shall be the value as determined by the application of Rule 30 or Rule 31, in that order. Accordingly, Rule 30- Value of supply of goods or services or both based on cost of the CGST Rules, 2017, provides that where the value of a supply of goods or services or both is not determinable by any of the preceding rules of this Chapter, the value shall be one hundred and ten percent of the cost of production or manufacture or the cost of acquisition of such goods or the cost of provision of such services. Accordingly, in this method, value of supply of goods and services shall be 110% of the cost of production or cost of manufacturing of the product or cost of provision of services. As such law does n
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o provident fund and ESIS Bonus/ ex-gratia payment to employees Provision for retirement benefits such as gratuity and superannuation Medical benefits Subsidised food Leave with pay and holiday payment Leave encashment Other allowances such as children s education allowance, conveyance allowance which are payable to employees in the normal course of business etc. It is important to note that in the case of supply of services, the supplier may opt for Rule 31, ignoring rule 30. Hence, If the value is not determinable under Open market value method and like kind and quality method then value of the supply may be determined after application of the basic principles given in CAS-4 and same is approved by the CBEC vide Circular Number 692/08/2003 dated 13.02.2003. Residual Method If the value is not determinable under earlier valuation methods, value of supply shall be the value as determined by the application of Rule 30 or Rule 31, in that order. Accordingly, Rule 31- Residual method for
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, at the option of the supplier, be an amount equivalent to ninety percent of the price charged for the supply of goods of like kind and quality by the recipient to his customer not being a related person. The essential characters of this provision are as follows: There must be as such supply (i.e., supply in the same form in which received.). In other words, this method can be applied for trading industry only. This method is available at the option of supplier only. The value of supply shall be an amount equivalent to 90% of the price charged for the supply of goods of like kind and quality by the recipient to his customer not being a related person. Accordingly, taxpayers can pay GST on 90% of the market value as against 100% under the current excise laws in case of supply of goods to entities such as subsidiaries, branches and joint ventures. By opting to pay GST on 90% value of supply of goods instead of 100% value of supply of goods, a taxpayer can save working capital blockage o
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required, supplier will have to substantiate the manner of determining the value of supply. Tolerance limit for value of supply under GST Under Income Tax Act, 1961, the tolerance range available for wholesale traders is 1%, while that for other taxpayers is 3% of the value of International Transaction/ Specified Domestic Transaction. On other hand, no tolerance range available under GST hence it will invite the accuracy related issues, correctness issues, hence, resultant in disputes between the Department and assesse. Conclusion Transfer pricing itself is not a means of tax avoidance if transaction value matches with what the supplier would charge to an unrelated recipient. As the objective of the arm s length principles and mechanism is basically to ensure that the affairs of distinct persons or related persons are not arranged in a manner that results in lower GST payment to the Government, therefore, the governing principles need to be harmonized. The governing principles can be o
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Customs – 42/2017 – Dated:- 7-11-2017 – Circular No. 42/2017-Customs F. No: 450/119/2017-Cus.IV(Pt.I) Govt. of India Ministry of Finance Dept. of Revenue Central Board of Excise and Customs Room No.229-A, North Block, New Delhi,7th November, 2017 To, All Principal Chief Commissioners of Customs / Customs (Prev.). All Chief Commissioners of Customs / Customs (Prev.). All Principal Commissioners of Customs / Customs (Prev.). All Commissioner of Customs of Customs / Customs (Prev.). Subject: Refunds of IGST paid on export of goods under Rule 96 of CGST Rules, 2017 The GST Council in its 22nd Meeting had approved a major relief package for exporters. The Council was unanimous that it is in the national interest to take all possible measures to support the exporting community, which earns valuable foreign exchange and provides significant employment especially in the small and medium sector. The Council approved that by 10.10.2017 the refund of IGST paid on goods exported in July would beg
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number quoted in GSTR 1 either does not exist or it pertains to another exporter. In respect of these claims, the only way out is to amend the GSTR 1 (Amendments to taxable outward supply details furnished in returns for earlier tax periods) and enter the correct shipping bill number. In these cases, the amendments for information furnished in GSTR 1 for July 2017 need to be filed in Table 9A of GSTR 1 for August 2017. GSTN has been asked to provide for immediate implementation of this Table so that all such claims can be processed once amendment is filed. ii) Invoice number and IGST paid amount mis-match Analysis of data revealed that exporters have quoted different invoice numbers for GST and Customs purposes. Also, IGST paid amount indicated in GSTR 1 is not tallying with IGST paid amount indicated in shipping bill. As the same transaction is being reported under GST Act and under Customs Act, the exporters may take care to ensure the details of invoice, such as Invoice number, IGS
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, refunds are already being given. iv) Wrong Bank Account given to Customs In some cases, bank account details available with Customs have been invalidated by PFMS. Reports on such accounts / IECs have been provided to the Commissionerates by the Directorate of Systems in ICES and by email. Exporters may be advised that if the account has not been validated by PFMS, they must get their details corrected in the EDI system. Exporters are also advised not to change their bank account details frequently so as to avoid delay in refund payment. B. IGST Refunds for the export of goods in the month of August, 2017: GSTN has provided the utility to declare Table 6A in GSTR 1 for exporters to fill in information related to Zero Rated Supplies. Once exporters file Table 6A, it would be possible to sanction refunds for the exports made in August 2017. Thus Public/Trade notices may be issued emphasizing the need to fill Table 6A online by exporters to claim refunds against exports made in August 20
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ails of the registered supplier of each item should be declared in the ARE Certificate and Date columns in the Shipping Bill format. Necessary changes have already been done in ICES application. The third party details would be printed in the shipping bill copies for fulfilment of the notification conditions. ii) Further in case of an export consignment containing multiple supplies by registered suppliers, the registered recipient (merchant exporters) need to provide details of all registered suppliers and corresponding invoices against each item in the Shipping bills. iii) For the purpose of above mentioned notifications concerning supply to registered recipient at concessional GST, registered principal place of business or registered additional place of business shall be deemed to be a registered warehouse . iv) Registered recipients (Merchant exporters) may, if required, exclude commercially sensitive information while providing copies of Shipping Bills to registered suppliers. 3. D
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GST – States – Va Kar/GST/07/2017- S.O. 122 – Dated:- 7-11-2017 – COMMERCIAL TAXES DEPARTMENT NOTIFICATION 7th November, 2017 S.O. 122- Dated 8th November, 2017- In exercise of the powers conferred by section 164 of the Jharkhand Goods and Services Tax Act, 2017 (12 of 2017), the State Government hereby makes the following rules further to amend the Jharkhand Goods and Services Tax Rules, 2017, namely:- (1) These rules may be called the Jharkhand Goods and Services Tax (Eleventh Amendment) Rules, 2017. (2) They shall come into force from 28th October, 2017 2. In the Jharkhand Goods and Services Tax Rules, 2017, – (i) in rule 24, in sub-rule (4), for the words, figures and letters on or before 31st October, 2017 , the words, figures and let
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rts as specified in Table 6A of FORM GSTR-1 after the return in FORM GSTR-3B has been furnished and the same shall be transmitted electronically by the common portal to the system designated by the Customs: Provided further that the information in Table 6A furnished under the first proviso shall be auto-drafted in FORM GSTR-1 for the said tax period. ; (iv) in rule 96A, in sub-rule (2), the following provisos shall be inserted, namely:- Provided that where the date for furnishing the details of outward supplies in FORM GSTR-1 for a tax period has been extended in exercise of the powers conferred under section 37 of the Act, the supplier shall furnish the information relating to exports as specified in Table 6A of FORM GSTR-1 after the retur
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GST – States – Va Kar/GST/04/2017- S.O. No. 121 – Dated:- 7-11-2017 – COMMERCIAL TAXES DEPARTMENT NOTIFICATION 7th November, 2017 S.O. No. 121- Dated. 9th November, 2017- In exercise of the powers conferred by section 128 of the Jharkhand Goods and Services Tax Act, 2017 (12 of 2017), the State Government, on the recommendations of the Council, hereby waives the late fee payable under section 47 of the said Act, for all registered persons who failed to furnish the return in FORM GSTR-3B for the
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GST – States – KA. NI-2-1659/XI-9(42)/17 – Dated:- 7-11-2017 – Uttar Pradesh Shasan Sansthagat Vitta, Kar Evam Nibandhan Anubhag -2 NOTIFICATION No. KA. NI-2-1659/XI-9(42)/17-U.P. GST Rules-2017-Order(70)-2017 Lucknow : Dated : November 07, 2017 In exercise of the powers conferred by section 164 of the Uttar Pradesh Goods and Services Tax Act, 2017 (U.P. Act no. 1 of 2017) read with section 21 of the Uttar Pradesh General Clauses Act, 1904 (U.P. Act no. I of 1904), the Governor on the recommendation of the Council is pleased to make the following rules with a view to amending the Uttar Pradesh Goods And Services Tax Rules, 2017 THE UTTAR PRADESH GOODS AND SERVICES TAX (EIGHTH AMENDMENT) RULES, 2017 1. Short title and Commencement (1) These
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lier may claim the refund"; 3. Amendment of rule 96A In the said rules, in rule 96A, in sub-rule (l), in clause (a), after the words "after the expiry of three months", the words ", or such further period as may be allowed by the Commissioner," shall be inserted; 4. Amendment in FORM GST RFD-01 In the said rules, in FORM GST RFD-01,- (a) for "Statement-2", the following Statement shall be substituted, namely:- 4. In the said rules, in FORM GST RFD-01,- (a) for Statement-2 , the following Statement shall be substituted, namely:- Statement- 2 [rule 89(2)(c)] Refund Type: Exports of services with payment of tax (Amount in Rs.) Sl.No. Invoice details Integrated tax Cess BRC/FIRC Integrated tax and cess involve
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Customs – PUBLIC NOTICE No. 56/2017 – Dated:- 7-11-2017 – OFFICE OF THE COMMISSIONER OF CUSTOMS, NEW CUSTOM HOUSE, KANDLA-370 210 F. No. S/20-07/AG/GST/17-18 Dated: 07.11.2017 PUBLIC NOTICE No. 56/2017 Subject: – Validation of Bank Accounts in the Public Financial Management System (PFMS) for speedy & smooth disbursal of IGST (Integrated Goods & Services Tax) Export refund- reg. Attention of all the importers, exporters, customs brokers, and other stake holders is invited to the processing of refund of IGST paid on goods exported. 2. In this context, it is again clarified that the shipping bill itself are treated as the refund application with effect from 01/07/2017 and therefore, no separate refund application is required to be fi
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and PFMS has invalidated such accounts making the prospective disbursal of IGST refund to such closed accounts impossible. Accordingly, the list of accounts, which are not validated by PFMS pertaining to Kandla Customs (Export), is uploaded on the website of the "Kandla Customs House" (http://www.kandlacustoms.gov.in) under the heading "Latest Updates" for wider publicity and necessary action at the end of the concerned exporters. 5. In view of the above, exporters are advised to their bank accounts immediately and not to make any changes in the same during the current financial yea for smooth disbursal of IGST Refund. 6. Difficulty if any may be brought to the notice of the Deputy/ Assistant commissioner of Customs (ED
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GST – States – FTX.90/2016/194 – Dated:- 7-11-2017 – GOVERNMENT OF ASSAM ORDERS BY THE GOVERNOR FINANCE, (TAXATION) DEPARTMENT NOTIFICATION The 7th November, 2017 No.FTX.90/2016/194.- In exercise of the powers conferred by section 164 of the Assam Goods and Services Tax Act, 2017, the Governor of Assam is hereby pleased further to amend the Assam Goods and Services Tax Rules, 2017, hereinafter referred to as the principal rules, namely: – Short title and commencement. 1. (1) These rules may be called the Assam Goods and Services Tax (Eighth Amendment) Rules, 2017. (2) They shall deemed to have come into force with effect from the 29th day of September, 2017. Amendment of rule 24. 2. In the principal rules, in rule 24, in sub-rule (4), for
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es the period specified in rule 117 or such further period as extended by the Commissioner shall be substituted; Amendment of rule 120A. In the principal rules, in rule 120A, the marginal heading Revision of declaration in FORM GST TRAN-1 shall be inserted; Amendment in FORM GST REG – 29. 7. In the principal rules, in FORM GST REG-29, – (a) for the heading, APPLICATION FOR CANCELLATION OF PROVISIONAL REGISTRATION the heading APPLICATION FOR CANCELLATION OF REGISTRATION OF MIGRATED TAXPAYERS shall be substituted; (b) under sub-heading PART-A, against item (i), for the word and letters Provisional ID , the letters GSTIN shall be substituted. V. B. PYARELAL, Additional Chief Secretary to the Government of Assam, Finance Department. – Notificat
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Goods and Services Tax – Started By: – kamal kedia – Dated:- 6-11-2017 Last Replied Date:- 8-11-2017 – hellowe have 2 units. main unit is in karnataka and another unit is A.P.both are own by one company. unit in karnataka sends cut pcs of shirt to unit in A.P. for sewing. unit in A.P. after sewing sends shirts back to unit in karnataka who will do washing and packing and export.is there any gst liablity when unit in A.P. sends shirts after sewing – Reply By Rajagopalan Ranganathan – The Reply =
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DGFT – Export and Import of goods / Import of second hand goods under EOU, EHTS, STP, BTP schemes – Para 6.01 and 6.02 of Foreign Trade Policy (FTP) aligned with GST / IGST – TMI Updates – Highlights
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DGFT – EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME – Indigenous Sourcing of Capital Goods and benefits to Domestic Supplier – Para 5.01 and 5.07 of Foreign Trade Policy (FTP) aligned with GST / IGST – TMI Updates – Highlights
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DGFT – Details of Duties exempted – Import / Export under DUTY EXEMPTION / REMISSION SCHEMES – Para no. 4.14 of Foreign Trade Policy (FTP) aligned with GST / IGST – TMI Updates – Highlights
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Goods and Services Tax – Started By: – Vinay Kunte – Dated:- 6-11-2017 Last Replied Date:- 8-11-2017 – It is given to understand the the Deemed Export are exempted Under IGST as per provisions of certain notifications issued in October 2017. Similarly, the IGST @0.1% or CGST/SGST or UTGST @0.05%, respectively, is to be paid by the supplier of Goods to other Registered person for Exports (Erstwhile Merchant Exporters).My query is whether the ).1% IGST or 0.05% CGST is to be paid on goods supplied by a registered dealer under Deemed exports to other registered person or should be exempted in totality?Please provide your valuable guidance. – Reply By Rajagopalan Ranganathan – The Reply = Sir, The tax rate of 0.05% in respect of CGST and SGST
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= I support the views of Sh.Ranganathan Sir. However, I post the following information as additional knowledge :- Deemed Exports – Evidence required for claiming refund on deemed exports under CGST Rule 89(2)(g) In exercise of the powers conferred by clause (g) of sub-rule (2) of rule 89 of the Central Goods and Services Tax Rules, 2017 read with notification No. 48/2017-Central Tax, dated the 18th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 1305(E), dated the 18th October, 2017, the Central Government hereby notifies the following, as detailed in column (2) of the Table below, as evidences which are required to be produced by the supplier of deemed export supplies
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Goods and Services Tax – Started By: – kantipudi satyanarayana – Dated:- 6-11-2017 Last Replied Date:- 7-11-2017 – I got migrated to GST as I was on the erstwhile service tax rolls. Now I want to get my GSTIN cancelled as my gross receipts would be less than 20 lakhs. As the gst regn cancellation form has not been hosted on GSTN portal for quite a long time, I charged Gst on my bills and filed the respective GST returns till date. Now I want to get my regn cancelled, Pl advise me the procedure and the relevant form. I hope that I need not wait for 12 months as I am a migrated one. – Reply By KASTURI SETHI – The Reply = Dear Querist, Login your account in common portal. When it is opened, you will find 'provision for cancellation of reg
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nt on Common Portal system. – Reply By subramanian vijayakumar – The Reply = Portal is open dealer's can go for cancellation in REG 29 SIR FOR QUITE SIMTINE I HAVE NOT POSTED MY VERY GOOD MORNING TO. ALL EXPERTS – Reply By kantipudi satyanarayana – The Reply = Thank u exprerts for ur timely advises. But filing REG 29 form is applicable when the regd person has not issued any tax invoice. Conversly it is not applicable in a case where tax invoice has been issued as in the case of mine. I feel for me the applicable form is REG 16 which is yet to be opened on the GSTN portal. Now again my doubt is whether a migrated one would be allowed to submit REG 16 within 12 months of GST regn. If REG 16 is not opened for quite a long time, I shall be
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Goods and Services Tax – Started By: – vineet kumar – Dated:- 6-11-2017 Last Replied Date:- 8-11-2017 – HI there I have wrongly posted eligible input tax credit in ineligible input tax and file the GSTR 3B return, i wish to know the law regarding this as i can not correct the GSTR 3B retun now so how will i get the input back as I will be filing the GSTR 2 return which will show me the input in that return, so will i get that amount back as credit after filng the GSTR 2 or GSTR 3 returns. – Reply By KASTURI SETHI – The Reply = Wait for insertion of amendment in GSTR-3 B for July, 17 and onward. Still provision for amendment has not been activated. You know the due dates are being extended again and again, so provision for amendment will be
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Goods and Services Tax – Started By: – Yatin Bhopi – Dated:- 6-11-2017 Last Replied Date:- 6-11-2017 – Dear expert There are notifications issued under IGST and CGST Act i.e. Notification 32/2017-IGST & 38/2017-CGST, regarding exemption from taxes under reverse charge (purchases from unregistered supplier) whereas under SGST act said notifications has not been issued so far. In absence of exemption notifications by states, is SGST payable? Please clarify – Reply By KASTURI SETHI – The Reply
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Goods and Services Tax – GST – By: – CA.VINOD CHAURASIA – Dated:- 6-11-2017 Last Replied Date:- 6-11-2017 – Introduction: This article discusses in details GST taxability on education sector. Education is the process of training and developing knowledge, skill and character of students by normal schooling. The GST Act tries to maintain a fine balance whereby core educational services provided and received by educational institutions are exempt and other services are sought to be taxed at the standard rate of 18%. Auxiliary services received by such educational institutions for the purpose of education up to Higher Secondary level is also exempt from GST Other services related to education, not covered by the exemption would be taxed at a standard rate of 18% with full admissibility of ITC for such taxable services in cases where the output service is not exempt. However, Services by an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961) by way of charitable a
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g or State Council for Vocational Training offering courses in designated trades notified under the Apprentices Act, 1961 (52 of 1961); or A Modular Employable Skill Course, approved by the National Council of Vocational Training, run by a person registered with the Directorate General of Training, Ministry of Skill Development and Entrepreneurship. So in view of the above, Conduct of degree courses by colleges, universities or institutions which lead grant of qualifications recognized by law would be exempted from GST. Training given by private coaching institutes or other unrecognised institution or self styled educational institution would not be exempted as such training does not lead to grant of a recognized qualification. Services provided by way of education as a part of a prescribed curriculum for obtaining a qualification recognized by a law of a foreign country are also not exempted because the course / degree not recognized by Indian Law. Education Services are classified in
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aning or housekeeping services performed in such educational institution; (iv) services relating to admission to, or conduct of examination by, such institution; up to higher secondary: Provided that nothing contained in entry (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or Equivalent NIL as per serial no 66 of notification no. 12 CTR dated 28th June 2017 9992 Services provided by the Indian Institutes of Management, as per the guidelines of the Central Government, to their students, by way of the following educational programmes, except Executive Development Programme: – (a) two year full time Post Graduate Programmes in Management for the Post Graduate Diploma in Management, to which admissions are made on the basis of Common Admission Test (CAT) conducted by the Indian Institute of Management; (b) fellow programme in Management; (c) five year integrated programme
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r equivalent or education leading to a qualification recognised by law, are fully exempt from GST. Annual subscription/fees charged as lodging/ boarding charges by such educational institutions from its students for hostel accommodation shall therefore, not attract GST. Input services like canteen, repairs and maintenance etc. provided by private players to educational institutions are subject to GST. As output services are exempted, the Educational institutions may not be able to avail credit of tax paid on the input side. Auxiliary education services entry no 66 of notification no. 12, if provided to educational institutions providing degree or higher education, the same would not be exempt from GST. The supply of placement services provided to educational institutions for securing job placements for the students shall be liable to GST. Educational institutes such as IITs, IIMs charge a fee from prospective employers like corporate houses/ MNCs, who come to the institutes for recruit
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l be the location of such person; To a person other than a registered person, shall be the place where the event is actually held and if the event is held outside India, the place of supply shall be the location of the recipient. Place of supply of Educational Services where the location of the supplier of services or the location of the recipient of services is outside India The place of supply will be the place where the event is actually held. Composite and Mixed Supply in Education sector If in Boarding schools, charges for education and lodging and boarding are inseparable then it exempt from GST. Provision of dual qualifications is in the nature of two separate services as the curriculum and fees for each of such qualifications are prescribed separately. Service in respect of each qualification would, therefore, be assessed separately. The author is a practising CA based in Delhi and is registered Insolvency Professional. He can be reached at cavinodchaurasia@gmail.com , Mob. +91
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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 6-11-2017 Last Replied Date:- 7-11-2017 – GST Update on society charges collected by builder:- A builder is supposed to collected an amount for repairs and maintenance of flats. This collection is being kept in a separate account dedicated for the purpose. Until the residential housing society is formed, the expenses for repairs and maintenance of flats are borne out of this account. Once the society is formed, this account is being transferred to the society. This issue has been under litigation in service tax regime. In service tax regime, there were number of decisions on this issue wherein it was held that there is no need to pay the tax on these society charges collected by b
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e or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; (b) import of services for a consideration whether or not in the course or furtherance of business; (c) the activities specified in Schedule I, made or agreed to be made without a consideration; and (d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II. (2) Notwithstanding anything contained in sub-section (1),- (a) activities or transactions specified in Schedule III; or (b) such activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Government on the re
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will be termed as supply . In the case of supply, no consideration is involved. In general, if the consideration is not involved, it will not be treated as supply . However, certain activities are specified in Schedule I which will be considered as supply even if no consideration is involved. This schedule does not cover the society charges collected by the builder. Therefore, since no consideration is involved and builder is merely acting as a collector of amount which is subsequently transferred to society, in our view no tax should be payable on the same in GST regime. Further, since there is no change in legal position, the benefit of judgments given in service tax regime shall also be available. You can reach us at www.capradeepjain.c
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