GST updates: Important developments in GST
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 31-10-2017
Dear Professional Colleague,
GST updates: Important developments in GST
* IGST exemption on inter-state supply of services to Nepal & Bhutan against payment in INR
Earlier, in the sectoral FAQs on Exports available on CBEC portal, it was provided that export of goods to Nepal or Bhutan fulfils the condition of GST Law regarding taking goods out of India, thus, will be treated as zero rated and consequently will also qualify for all the benefits available to zero rated supplies under the GST regime. However, the definition of 'export of services' in the GST Law requires that the payment for such services should have been received by the supplier of services in convertible foreign exchange.
Thus, applicability of GST on services supplied to Nepal & Bhutan was being debated. Now, the Central Government vide Notification No. 42/2017-Integrated Tax (Rate) dated Oc
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issued.
Form GST REG-26 date extended till December 31, 2017
In terms of Rule 24(2)(a) of the CGST Rules, 2017, every person who has been granted a provisional registration in GST shall submit an application electronically in FORM GST REG-26, along with the information and documents specified in the said application, within a period of 3 months or within such further period as may be extended by the Commissioner.
Vide Order No. 06/2017-GST dated October 28, 2017, the date for submission of application in Form GST REG-26 has been extended till December 31, 2017.
Form GST CMP-03 date extended till November 30, 2017
Vide Order No. 05/2017-GST dated October 28, 2017, the period for intimation of details of stock held on the date preceding the date from which the option to pay tax under Section 10 of the CGST Act, 2017 (i.e. Composition scheme) is exercised in FORM GST CMP-03 is extended till November 30, 2017.
Extension of due date to file Form ITC-04 for July – September, 2017 qu
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7, till November 30, 2017.
Further extension of time limit for furnishing declaration under Form GST ITC-01 to avail the benefit of ITC under Section 18(1) of CGST Act till November 30, 2017
Section 18(1) of the CGST Act, 2017 deals with availability of input tax credit on the inputs held in stock and inputs contained in semi-finished or finished goods held in stock in special circumstances like the persons applying for registration within 30 days from the date on which he become liable to registration, persons taking voluntary registration, persons ceasing to pay tax under composition scheme etc.
The Commissioner vide Notification No. 44/2017 – Central Tax dated October 13, 2017 (“Notification No. 44”), had earlier extended the time limit for furnishing a declaration in FORM GST ITC-01, by the registered persons, who have become eligible to avail the input tax credit under Section 18(1) of the CGST Act, 2017 during the months of July 2017, August 2017 and September 2017 upto Octob
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egistration.
Further, vide Notification No. 51/2017-Central Tax dated October 28, 2017, Rule 24(4) of the CGST Rules, 2017 has been amended to extend the date till December 31, 2017.
* Concessional rate of 0.1% on supplies to merchant exporter, subject to prescribed conditions
The Central Government vide Notification No. 40/2017-Central Tax (Rate) dated October 23, 2017 has provided for a concessional rate of 0.1% on supply of taxable goods to merchant exporters. However, the concessional rate would be applicable on fulfilment of specified conditions therein like:
* Supplier shall supply the goods to the registered recipient on a tax invoice;
* Recipient shall export the said goods within a period of 90 days from the date of issue of a tax invoice by the supplier;
* Recipient shall indicate the GSTIN of the supplier and the tax invoice number issued by the supplier in respect of the said goods in the shipping bill or bill of export;
* Recipient shall be registered with an E
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exports:
* Supply of goods by a registered person against Advance Authorisation.
* Supply of capital goods by a registered person against Export Promotion Capital Goods (“EPCG”) Authorisation.
* Supply of goods by a registered person to Export Oriented Unit (“EOU”).
* Supply of gold by a bank or Public Sector Undertaking specified in the notification No. 50/2017-Customs, dated the 30th June, 2017 (as amended) against Advance Authorisation.
In terms of Explanation (1) to Section 54 of the CGST Act, 2017 (dealing with refunds in GST), 'refund' under GST, inter alia, includes refund of tax on the supply of goods regarded as deemed exports.
List of evidences prescribed for claiming refund under deemed export
The Central Government vide Notification No. 49/2017 – Central Tax dated October 18, 2017, has prescribed the evidences which are required to be produced by the supplier of deemed export supplies for claiming refund. The list includes the following evidences:
* Acknowled
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g refund in cases where the recipient does not avail of input tax credit on such supplies and furnishes an undertaking to the effect that the supplier may claim the refund. Earlier, only recipient was eligible to file the application for claiming refund in case of deemed exports supplies.
* In clause (a) to Rule 96A(1) of the CGST Rules, 2017 (prescribing time period for payment of tax due along with interest to be furnished in the bond or letter of undertaking in case of export of goods without payment of IGST), 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.
* In FORM GST RFD-01, Cess column has been added appropriately.
Further, certain more amendments have been made in the CGST Rules, 2017 vide Notification No. 51/2017-Central Tax dated October 28, 2017:
* Amendment in Rule 24(4) as discussed supra;
* Amendment in Rule 45(3) as discussed supra;
* Insertion of provisos in Ru
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-1 for the said tax period.
Clarification on movement of goods on approval basis
The GST Policy Wing of Central Board of Excise & Customs vide Circular No. F. No. 10/10/2017-GST dated October 18, 2017,has clarified that goods which are taken for supply on approval basis can be moved from the place of business of the registered supplier to another place within the same State or to a place outside the State on a delivery challan along with the e-way bill wherever applicable and the invoice may be issued at the time of delivery of goods. For this purpose, the person carrying the goods for such supply can carry the invoice book with him so that he can issue the invoice once the supply is fructified.
It is further clarified that all such supplies, where the supplier carries goods from one State to another and supplies them in a different State, will be inter-state supplies and attract IGST in terms of Section 5 of the IGST Act, 2017.
It is also clarified that this clarification would b
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