Author: admin_gst

Issues related to Bond/Letter of Undertaking (LUT) for Export payment of Integrated Goods & Service Tax (IGST) – GST – States – F. No. AC/Export Cell/W-208/2017-18/879-82 – Dated:- 2-8-2017 – Office of the Special Commissioner (GST) Export/KCS Branch, Department of Trade & Taxes Govt. of NCT of Delhi 8th Floor, Vyapar Bhawan, I.P. Estate, New Delhi-1 10002 F. No. AC/Export Cell/W-208/2017-18/879-82 Dated :- 02/08/2017 Circular Subject – Issues related to Bond/Letter of Undertaking (LUT) for Export payment of Integrated Goods & Service Tax (IGST). Ref – Notification No. 16/2017 Central Tax dated 07-07-2017, Circular xo. 02/02/2017- GST dated 04-07-2017 and Circular No. 04/04/2017 GST dated 07-07-2017 issued by CBEC, Govt. of India. Communications have been received from the professionals and exporters on the issue of difficulties faced while supplying goods or services or exports without payment of integrated tax and filing the FORM GST RFD-11. Therefore, for the purpose of unif

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le for furnishing of FORM GST RFD-11 is available on the common portal. This has been also clarified vide Circular No. 02/02/2017-GST dated 04-07-2017 issued by the GST policy wing of Central Board of Excise and Customs, Govt. of India. 4. Further, circular number 04/04/2017-GST dated 07-07-2017 has also been issued by the GST policy wing of Central Board of Excise and Customs, Govt. of India wherein the procedure to accept the Bond/LUT has been provided. 5. The Exporter is at liberty to furnish the GST RFD-11 with Bond/LUT before Central Tax Authority or State Tax Authority' till the administrative mechanism for assigning of taxpayers to respective authority is implemented. 6. In this regard, to streamline the process of acceptance of GST RFD-11 with LUT/Bond the competent authority, Department of Trade & Taxes, Govt. of NCT of Delhi, has setup an Export Cell vide order No, 6815-22 dated 12-07-2017 to deal with Export under GST Act. Further the work of export is allocated alph

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ue. The acceptance letter for RFD-11 with bond shall be valid upto 31-03-2018 only. Thereafter, fresh acceptance letter will be issued after scrutiny. 3 FORM GST RFD-11 under rule 96A of the Delhi Goods and Services Tax Rules. 2017 required furnishing a bank guarantee with bond. In this regard it is decided that an exporter would furnish bond with bank guarantee equal to 15% of the Bond amount, to maintain uniformity as right now there is no mechanism to ascertain the track record of the exporters, with the Deptt. of Trade & Taxes, Delhi 4 It is directed that proper record of all such FORM GST RFD-11 along with Bond/Letter of Undertaking shall be maintained at the ward level. 5. It is further clarified that the FORM CJST RDF-11 with LUT/Bond will be received alongwith the following documents . I. FOR ACCEPTANCE OF FORM GST RFD-11 with LETTER OF UNDERTAKING (LUT)- A. The registered person/exporter will submit request letter on its letter head for acceptance of GST RFD-11 signed by t

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nimum of 10% of the export turnover, which should not be less than one crore rupees in the preceding financial year. The bank Certificate should specifically mentioned amount of Foreign Inward Remittance in Indian Currency during the year 2016-17 with name & GSTIN of applicant or Bank Realisation Certificate (verifiable from the DGFT site) showing that the exporter has received the due foreign inward remittances amounting to a minimum of 10% of the export turnover, which should not be less than one crore rupees in the preceding financial year. In case of bulk BRCs, copies of BRCs must accompanied with reconciliation table showing total of Foreign Inward Remittance in Indian Currency. (iv) Undertaking/declaration on letter head that he has not been prosecuted for any offence uner the Central Goods and Services Tax Act, 2017 (12 of 2017) or under any of the existing laws in case where the amount of tax evaded exceeds two hundred any fifty lakh rupees. v. Copy of GST Registration Cert

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ond (prescribed format available on www.cbec.gov.in) on ₹ 100/- Non judicial stamp paper dully signed by the proprietor/ partner/ director/ authorised signatory as the case maybe. The Bond would cover the amount of tax involved (which may be considered equivalent to IGST levied on such goods/ Services). iii. Copy of GST registration Certificate (Provisional /Permanent). iv. Copy of Certificate of Importer- Exporter Code (IEC) issued by Ministry of Commerce, Govt. of India. v. Copies of Returns (DVAT-16) of all four quarters 2016-17 or GSTR-3 of all months of the preceding year. vi. Bank guarantee of 15% of the Bond amount in the name of Commissioner (GST), State Tax. Department of Trade & Taxes, Govt. of NCT of Delhi. New Delhi (valid för One Year). vii. Export bill/invoice /Performa invoice. 6. No public dealing or receiving of RFD-11 or distribution of acceptance letters will be done on 13 floor, Export Cell/KCS Branch, Department of Trade & Taxes. Delhi. This issu

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Notification under Section 68(1) under the HGST Act, 2017 regarding the value of goods during movement. – GST – States – 65/ST-2 – Dated:- 2-8-2017 – HARYANA GOVERNMENT EXCISE AND TAXATION DEPARTMENT Notification The 2nd August, 2017 No.65/ST-2.- In exercise of the powers conferred by section 68 of the Haryana Goods and Services Tax Act, 2017 (19 of 2017), the Governor of Haryana hereby specifies ten thousand rupees, as the value of any consignment of goods in a conveyance, exceeding which the p

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GST – States – 61/ST-2 – Dated:- 2-8-2017 – HARYANA GOVERNMENT EXCISE AND TAXATION DEPARTMENT Notification The 2nd August, 2017 No.61/ST-2 – In exercise of the powers conferred by section 164 of the Haryana Goods and Services Tax Act, 2017 (19 of 2017), the Governor of Haryana hereby makes the following rules further to amend the Haryana Goods and Services Tax Rules, 2017, namely:- 1. These rules may be called the Haryana Goods and Services Tax (Fourth Amendment) Rules, 2017. 2. In the Haryana Goods and Services Tax Rules, 2017 (hereinafter called the said rules), in rule 14, in sub-rule (2), for the words Central Government , the words State Government shall be substituted and shall be deemed to have been substituted with effect from the 22nd June, 2017; 3. In the said rules, in rule 24, in sub-rule (4), for the words within a period of thirty days from the appointed day , the words and figures on or before the 30th September, 2017 shall be substituted and shall be deemed to have bee

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said rules, in rule 46, in clause (l) and (m), the words Union Territory Tax , shall be omitted and shall be deemed to have been omitted with effect from the 1st July, 2017; 7. In the said rules, in rule 46, for the third proviso, the following proviso shall be substituted, namely:- Provided further that in the case of the export of goods or services, the invoice shall carry an endorsement SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS ON PAYMENT OF INTEGRATED TAX or SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX , as the case may be, and shall, in lieu of the details specified in clause (e), contain the following details, namely,- (i) name and address of the recipient; (ii) address of delivery; and (iii) name of the country of destination: ; 8. In the said rules, in rule 50, in clause (g) and (h), the words Union Territory Tax , shall be

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shall be electronically generated on the basis of information furnished through FORM GSTR-1, FORM GSTR-2 and based on other liabilities of preceding tax periods and PART B of the said return shall be electronically generated on the basis of the return in FORM GSTR-3B furnished in respect of the tax period; (b) the registered person shall modify Part B of the return in FORM GSTR-3 based on the discrepancies, if any, between the return in FORM GSTR-3B and the return in FORM GSTR-3 and discharge his tax and other liabilities, if any; (c) where the amount of input tax credit in FORM GSTR-3 exceeds the amount of input tax credit in terms of FORM GSTR-3B, the additional amount shall be credited to the electronic credit ledger of the registered person. . 11. In the said rules, in rule 83, in sub-rule (3), in the second proviso, for the word sub-section , the word sub-rule shall be substituted and shall be deemed to have been substituted with effect from the 1st July, 2017. 12. In the said ru

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GST – States – Trade Circular No. 1 of 2017 – Dated:- 2-8-2017 – EXCISE AND TAXATION DEPARTMENT HIMACHAL PRADESH. TRADE CIRCULAR No. 12-4/78-EXN-Tax-Part-Shimla-09 Dated:02.08.2017 Trade Cir. No. 1 of 2017 Subject: Submission of Bond/Letter of Undertaking by the Exporter in respect of Exports without payment of Integrated Tax under IGST Act. Ref.:(1) Himachal Pradesh Goods and Services Tax Act, 2017. (2) The Integrated Goods and Services Tax Act, 2017. (3) The Himachal Pradesh Goods and Services Tax Rules, 2017. (4) Notification No. 16/2017 dated 7th July 2017 issued by Government of India, Ministry of Finance, Department of Revenue (Central Board of Excise and Customs. (5) Circular bearing No. 4/4/2017-GST dated 7th July 2017 issued Commissioner of GST (Central Board of Excise and Customs). Sir/Gentlemen/Madam, The Himachal Pradesh Goods and Services Tax Act, 2017, (hereinafter referred to as the HPGST Act ), the Central Goods and Services Tax Act, 2017, (hereinafter referred to as t

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und of integrated tax paid on export of goods or services can be availed by submission of bond or Letter of Undertaking in FORM GST RFD-011. 4. Any registered person availing the option to supply goods or services for export without payment of integrated tax is required to furnish, prior to export, a bond or a Letter of Undertaking in FORM GST RFD-11 to the jurisdictional Commissioner, binding himself to pay the tax due along with the interest specified under sub-section (1) of section 50 within a period of,- (a) fifteen days after the expiry of three months from the date of issue of the invoice for export, if the goods are not exported out of India; or (b) fifteen days after the expiry of one year, or such further period as may be allowed by the Commissioner, from the date of issue of the invoice for export, if the payment of such services is not received by the exporter in convertible foreign exchange. 5. As per the provisions of sub-rule (5) of aforesaid rules the State Government i

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resaid communications more particularly in the Para-7 of the aforesaid circular. For better understanding the said para is reproduced below: 7. It is further stated that the Bond / LUT shall be accepted by the jurisdiction over the principal place of business of the exporter. The exporter is at liberty to furnish the bond/LUT before Central Tax Authority or State Tax Authority till the administrative mechanism for assigning of taxpayers to respective authority is implemented. However, if in a State, the Commissioner of State Tax so directs, by general instruction, to exporter, the Bond/LUT in all cases be accepted by Central Tax officer till such time the said administrative mechanism is implemented Central Tax officers are directed to take every step to facilitate the exporters . 8. On this backdrop, in order to mitigate the issues involved in relation to fulfil the mandate of section 16 of the IGST Act and rule 96A of the HPGST Rules, it is hereby informed to the exporters in the Sta

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GST – States – CCT’s Ref No. CS(1)/ 27/2017 – Dated:- 2-8-2017 – Office of the Commissioner of Commercial Taxes Telangana State :: Hyderabad CCT s Ref No. CS(1)/ 27/2017, Date. 02.08.2017 CIRCULAR Sub:-Goods and Services Tax – GST Readiness of VAT dealers migrated to GST – Obtaining certain information – Web form designed – Certain instructions issued – Reg. It has been decided to create, maintain and update certain data relating to GST readiness in respect of VAT dealers who have / are being migrated to GST, for further follow up in GST regime. Accordingly, a Web form (GST Readiness Input Form) has been designed in VATIS and made available in Officers logins since yesterday. In this regard, the following guidelines are issued for collecti

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y be obtained from all the LTU dealers and top 25 dealers of all circles. The data in respect of all other tables shall be obtained from all the dealers. To make it easy to obtain the information from the dealers, a separate Excel format will be prescribed shortly. The Deputy Commissioners (CT) may divide this item of work among the ACs / CTOs / DCTOs / ACTOs of the division so as to enable the work be completed within the stipulated time. Hence, all the Deputy Commissioners (CT) are hereby requested to issue suitable instructions to the Assistant Commissioners(CT)(LTU) and the Commercial Tax Officers of the circles under their control to obtain the data as required in the Input form, and ensure that the same is entered into VATIS as per th

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GST – States – 02/2017-GST – Dated:- 2-8-2017 – Government of Bihar Commercial Taxes Department Office Order No.-02/2017-GST In exercise of the powers conferred by clause (91) of section 2 of the Bihar Goods and Services Tax Act, 2017 (12 of 2017) read with the provisions of sub-section (1) of Section 5 of the said Act and subject to sub-section (2) of section 5 of the said Act, the Commissioner, hereby assigns the officers mentioned in Column (2) of the Table below, the functions as the proper officers in relation to the various provisions of the Bihar Goods and Services Tax Act, 2017 or the rules made thereunder given in the corresponding entry in Column (3) of the said Table:- Table S.No. Designation of the officer Functions under Secti

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10 (ix) Rule 12 (x) Rules 16 and 17 (xi) Rule 19 (xii) Rules 22, 23, 24 and 25 (xiii) Sub-rule (4) of Rule 86 (xiv) Sub-rule (11) of Rule 87 (xv) Sub-rules (2) and (3) of Rule 90 (xvi) Sub-rules (2) and (3) of Rule 91 (xvii) Rules 92, 93 and 94 (xviii) Sub-rule (6) of Rule 96 4. Deputy Commissioner of Commercial Taxes, Assistant Commissioner of Commercial Taxes, Commercial Taxes Officer (i) Sub-section (5) of Section 10 (ii) Sub-section (6) of Section 35 (iii) Sections 60, 61, 62, 63, 64, 65 and 66 (iv) Section 68 (v) Sections 70, 71, 72, 73, 74, 75 and 76 (vi) Section 78 (vii) Section 79 except clauses (e) and (f) of sub-section (1) (viii) Sections 129 and 130 (ix) Section 142 (x) Sub-rules (4) and (5) of Rule 6 (xi) Sub-rule (6) and sub-

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Customs – PUBLIC NOTICE NO- 101/2017 – Dated:- 2-8-2017 – OFFICE OF THE COMMISSIONER OF CUSTOMS, NHAVA SHEVA-II EDI (Centralised) SECTION, JAWAHARLAL NEHRU CUSTOM HOUSE, NHAVA SHEVA, DIST: RAIGAD. PIN-400707 F.NO. S/12-Gen-Misc-151/17-18 DBK NS-II Date 02.08.2017 PUBLIC NOTICE NO- 101/2017 Subject: Implementation of GST in Customs-Changes in S/B Declaration-reg.- Attention of Importers/Exporters, Custom Brokers & Trade is invited to Public Notice -80/2017 dated 27.06.2017on the above subject. As you are aware, the higher All Industry Rates (AIRs) under Duty Drawback scheme viz. rates and caps available under columns (4) and (5) of the Schedule of All Industry Rates of Duty Drawback have been continued for a transition period of three m

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given under the Schedule to said Notification, accordingly in terms of the Section 75(3) of the Customs Act, 1962 and Rule 5(2) of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995, it may be noted that the changes made in Note and Condition 12A shall be applicable w.e.f. 1.7.2017 itself. Thus, exports which have been made from 1.7.2017 onwards shall be governed by the revised Note and Condition 12A. For all exports made w.e.f 1.7.2017 for which higher rate of drawback is claimed, exporter has to submit the self-declaration in the format attached. This format is also being suitably included in the EDI shipping bill. In respect of exports that have already been made, exporters may submit a single declaration regarding

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Work contract services – Goods and Services Tax – Started By: – Vaishno Shukla – Dated:- 1-8-2017 Last Replied Date:- 2-8-2017 – Sir, I am work contractor of elecrical, engineering, errection commissi

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Goods and Services Tax – GST – Dated:- 1-8-2017 – Government has taken decision to organize workshops to make the people aware about Goods and Services Tax (GST). Both at the Central and States level have been organizing GST Awareness campaigns through workshops all across the country to spread awareness on GST. The workshops are being conducted in a town hall format all across the country by the field formations of CBEC, with power point presentations and resource material provided by National Academy of Customs, Indirect Taxes and Narcotics (NACIN). All field formations are involved in conducting these workshops, and even though a city-wise record is not maintained, an online portal has been especially created by the Directorate General

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Goods and Services Tax – GST – Dated:- 1-8-2017 – Government has set up two call centres being run for the purpose of catering to queries of taxpayers and stakeholders in GST. i. Call centre on GST Application software prepared by GSTN, is being run by GSTN. Phone number is 0120-4888999 and email id is helpdesk@gst.gov.in ii. CBEC Mitra Helpdesk for replying to queries related to GST is being run by CBEC. Phone number is 1800-1200-232 and email id is cbecmitra.helpdesk@icegate.gov.in The call c

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Goods and Services Tax – GST – Dated:- 1-8-2017 – The Government has received representations from small businesses relating to exemption from GST, reduction in applicable rates of GST, and product and area wise exemptions. The GST rates on supply of goods and services have been notified based on the recommendations of the GST Council. The tax rates on goods have been fixed taking into consideration, inter alia, the total indirect tax incidence on goods prior to GST, which included the central excise duty rates / embedded central excise duty incidence, VAT rates or weighted average VAT rates, embedded VAT incidence, cascading of VAT over excise duty, incidence on account of CST, Octroi, entry tax, etc. Keeping in view the interests of smal

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Goods and Services Tax – GST – Dated:- 1-8-2017 – Under the GST regime the applicable tax rate on passenger tickets for economy class has been reduced from 6% to 5% (non-creditable for goods). The tax rate for business and first class has been increased from 9% to 12% (with input tax creditable for both goods and services procured by airlines). With regard to the UDAN Scheme, the applicable tax would also be 5% (non-creditable for goods) on the value of the passenger ticket excluding the subsid

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Goods and Services Tax – GST – Dated:- 1-8-2017 – Question 1: How will imports be taxed under GST? Answer: All imports will be deemed as inter-State supplies for the purposes of levy of GST. IGST is leviable on imports in addition to other duties of customs. Full set-off will be available as ITC of the IGST paid on import on goods and services. Question 2: How will exports be treated under GST? Answer: All exports will be deemed as inter-State supplies. Exports of goods and services will be treated as zero rated supplies. The exporter has the option either to export under bond/Letter of Undertaking without payment of tax and claim refund of ITC or pay IGST by utilizing ITC or in cash at the time of export and claim refund of IGST paid. Question 3: How can IGST be paid? Answer: The IGST can be paid by utilizing ITC to the extent available and balance by cash. The use of ITC for payment of IGST will be done in the following order: ITC of IGST shall be used for payment of IGST first; Onc

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y unutilised input tax credit of inputs and input services at the end of any tax period except where (i) the goods exported out of India are subjected to export duty; or (ii) the exporter claims drawback of CGST or refund of IGST paid on such export. Question 6: What is the procedure for claiming refund by exporters? Answer: Refund can be claimed by filing an application electronically in prescribed form along with required documents through the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner. The refundable amount shall be electronically credited to any of the bank accounts of the applicant mentioned in his registration particulars and as specified in the application for refund.For details Chapter X of the CGST Rules, 2017 relating to refund may be referred to. In case of refund of IGST, the shipping bill filed with the Customs is treated as an application for refund if the exporter has filed a valid return in Form GSTR-3/3B and the person

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: The principle of unjust enrichment is not applicable in case of exports of goods or services as the recipient is located outside the taxable territory. Question 9: Today under VAT/CST merchant exporters can purchase goods without payment of tax on furnishing of a declaration form. Will this system be there in GST? Answer: No, there is no such provision in GST. Tax will be payable on their inward supplies and they can claim refund of the accumulated ITC. Question 10: Whether goods sent by a taxable person to a job worker be treated as supply and will they be liable to GST? Answer: No, the goods sent by a registered person to a job worker is not a supply, as there is no transfer of title and no consideration for the goods is involved. In terms of section 143 of the CGST Act, 2017 a registered taxable person (the principal), after following the prescribed procedure,may send any inputs or capital goods, without payment of GST, to a job worker for job work and the principal shall either (

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ion 12: Whether exemption from all duties of Customs be available on imports under exemption schemes such as EPCG, Advance licence etc under GST regime? Answer: No. Exemption will be available only from Basic Customs Duty. IGST will be payable on such imports. However, the importer can avail ITC of IGST paid and utilise the same or claim refund in accordance with the provisions of the CGST Act, 2017 and rules made thereunder. Question 13: Can duty credit scrips received as incentive by exporters such as MEIS, SEIS etc be utilised for payment of all duties at the time of import? Answer: No, these scrips can be utilised only for payment of Basic Customs duty. IGST cannot be paid by utilising these scrips. Question 14: Will drawback at higher rate be available to handicraft exporters who do not avail Input Tax Credit (ITC) like presently available to those who do not avail CENVAT credit? Answer: No. There will be no difference in rate of Drawback for exporters not availing ITC in GST regi

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exhibition participation letter and no foreign exchange involved letter from the concerned bank for the purpose of exchange control requirements. At the time of re-import, identity of goods imported with export goods needs to be established to seek exemption from import duty in accordance with Customs provisions. IGST will be exempted at the time of re-import in view of exemptions granted under Customs. Question 17: Will an exporter be required to pay GST in case of goods procured from unregistered persons? Answer: In case of supply by an unregistered person, the registered person i.e., exporter shall be liable to pay GST under reverse charge mechanismfor purchases above five thousand rupees in a day. However the exporter can avail ITC of such GST paid and either utilise the ITC or claim refund of the same. Question 18: Will credit of duties be available on inputs and inputs contained in semi-finished goods/finished goods lying in stock of an exporter who was not registered under exist

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Goods and Services Tax – GST – Dated:- 1-8-2017 – Question 1: Can small mining leaseholders with a turnover less than ₹ 75 lacs operate under composition scheme? Answer: As per Sec. 10(1) of the CGST Act, 2017, a registered person whose aggregate turnover in the preceding FY did not exceed ₹ 75 lakhs, would be eligible for paying GST under the composition scheme. Question 2: What is the GST rate for minerals and ores in Composition Scheme? Answer: In a case where the process amounts to manufacture, the rate of tax will be 1% (CGST) and 1% (SGST/UTGST). In any other case, the rate will be ½% (CGST) and ½% (SGST/UTGST). Question 3: Will they have to deposit GST under SGST/ CGST heads separately? Answer: Yes. GST has to be paid separately under CGST and SGST/UTGST by generating a single challan through the common portal under a single return. Question 4: Can a small Mine Lease holder undertake inter-State supply if it avails composition scheme? Answer: No. If a

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echanism. Question 8: What is the threshold limit and conditions when a small mine owner/lease holder under Composition Scheme has to migrate into full GST System? Answer: As per section 10(3) of the CGST Act, 2017, the option availed of by the small mine owner/lease holder shall lapse with effect from the day on which his aggregate turnover during a financial year exceeds ₹ 75 lakhs. For details regarding other conditions, section 10 of the CGST Act, 2017 and the rules framed there under may be referred to. Question 9: Is the Return filing and compliance simpler under composition scheme? Answer: Yes, Return filing and compliance is simpler under the composition scheme. The registered person has to file only one return on a quarterly basis in Form GSTR-4. Question 10: Will the basic exemption limit from GST be applicable to the tiny & micro segment in mining? Answer: Yes, the basic exemption limit of ₹ 20 lakhs (Rs.10 lakhs in the case of special category States) is app

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unregistered person pay reverse tax? Answer: A registered person receiving taxable goods or services from a supplier who is not registered, would be liable to pay GST under reverse charge mechanism. However, in terms of notification no. 8/2017-Central Tax (rate) dated 28th June, 2017, aggregate value of supplies of goods and/or service received by a registered person from any or all the suppliers, who is or are not registered, upto five thousand rupees in a day is exempt from tax un­der reverse charge mechanism. This exemption will not apply if the value exceeds ₹ 5000/-. Question 13: Can a buyer of goods and services pay the value of services / goods to the supplier and deposit the GST component of the invoice in the supplier s account so that when the buyer claims input credit, he may get the same cross entry tallied from the supplier s account? Answer: No. This option is not available under GST Law. Question 14: In case there are disputes regarding quality, weight, etc. be

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e date of issue of invoice or the date of receipt of payment, whichever is earlier. Accordingly, GST would be payable on advance payment received prior to issuance of the invoice. Question 17: Will the supplier have to issue receipt voucher against each advance received? Answer: Yes, as per section 31(3)(d) of the CGST Act, 2017 the supplier has to issue a receipt voucher for every advance received. Question 18: How do I show the advance received in GSTR 1? Answer: Where against an advance the invoice is issued in the same tax period, the advance need not be shown separately in Form GSTR-1 but the specified details of invoice itself can be directly uploaded on the system. Details of all advances against which the invoices have not been issued till the end of the tax period shall have to be reported on a consolidated basis in Table 11 of Form GSTR-1. As and when the invoices against these advances are issued, they have to be declared in Form GSTR-1 and the adjustment of the tax paid on

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adjusted in totality. While raising the invoice subsequent to receipt of advance, the tax payable will get reduced by the amount of tax paid on the advance and balance amount of advance may be adjusted against future supplies. Question 21: Will GST charged on purchase of all earth moving machinery including JCB, tippers, dumpers by a mining company be allowed as input credit? Answer: The provision of Sec. 17(5) (a) of the CGST Act, 2017 restricts credit on motor vehicle for specified purposes listed therein. Further, in terms of the provision of Section 2(76) of the CGST Act, 2017 the expression motor vehicle shall have the same meaning as assigned to it in Clause (28) of Section 2 of the Motor Vehicle Act, 1988, which does not include the mining equipment, viz., tippers, dumpers. Thus, as per present provisions, the GST charged on purchase of earth moving machinery including tippers, dumpers used for transportation of goods by a mining company will be allowed as input credit. Question

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ing amount of unutilised input credit be refunded by the Government? Answer: In terms of the provision of Section 54(3) of the CGST Act, 2017 subject to conditions, refund of unutilized input tax credit would be available in respect of zero rated supply or where ITC has accumulated on account of rate of tax on inputs being higher than the rate of taxon the output supply. However, such refund of ITC would not be available if export duty is payable on the goods so exported out of India. Question 26. Will GST charged by tax consultants, advocates, Chartered Accountants, environmental consultants, canteen service providers and other service providers to mining companies be allowed as input credit? Answer: ITC on any input service/ inputs used in the course or furtherance of business would be available subject to restrictions and other conditions as per the provisions of Chapter-V of the CGST Act, 2017. However, tax paid in respect of canteen service providers shall not be available as cred

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o the buyer if otherwise available. The supplier of the mineral will also pay tax on reverse charge basis on the freight charged by the GTA and the credit of the same will be available to the supplier of the mineral. In case of an ex-works contract of supply, where the GTA service has been booked by the supplier at the instance of the buyer and the service is billed by the GTA to the buyer and the minerals are billed by the supplier of the mineral to the buyer, then GTA on reverse charge shall be paid by the buyer who shall be entitled to take credit of the same. The tax on the mineral will be paid on forward charge by the supplier of the mineral and credit will be available to the buyer if otherwise available. Question 29. Will the situation as mentioned above be different if the value of mineral is less than the cost of freight in long distance consignments? Answer: In the aforesaid example relating to FOR contract, the supply under the contract shall be classified as composite suppl

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ess shall be available. Question 32. Will the mining companies be eligible to take ITC for construction of townships, hospitals and schools? Answer: No. Mining companies will not be eligible for ITC on such activities even if used in course or furtherance of business. In this connection, the provisions contained in section 17(5) (c) of the CGST Act, 2017 refer. Question 33. Are minerals sent for export in processed or raw form fully exempted from payment of GST or IGST? Answer: In terms of the provision of Section 16(1) of the IGST Act, 2017 export of goods is considered as zero rated supply. Further, in terms of the provision of Section 16(3) of the IGST Act, 2017 a registered person may export goods (i) without payment of IGST against bond/letter of undertaking and claim refund of unutilised ITC, or (ii) on payment of IGST,utilising eligible ITC and claim refund of such IGST. Question 34. What is the procedure for return of goods under GST? Answer: In terms of Section 34(1) of the CG

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1) of CGST Act. 2017 is applicable on: a) Dept. or establishment of the Central Govt. or State Govt.; or b) Local authority; or c) Govt. agencies; or d) Such persons or category of persons as may be notified by the Govt. on the recommendations of the Council. Answer: TDS, under section 51 (1) of the CGST Act, 2017 will apply to supplies made to such agencies as may be mandated by the Government for TDS. As of now, this section has not been notified and therefore TDS is not applicable on any supplies. . Question 37. What is the requirement for E-way bill for companies operating in the sector? Answer: As per rule 138 of the CGST Rules, 2017, till such time as final rules are issued, the Government may, by notification, specify the documents that the person in-charge of a conveyance shall carry while the goods are in movement or in transit storage. As and when the new e-way bill rules are notified, the person transporting the goods shall carry the said e-way bill generated from the common

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sale/stock transfer under CST Act. The benefit of concessional rate/nil rate is available conditional upon production of the statutory forms. Therefore,allowing migration of the credit that has accrued on account of sale/stock transfer having been made on concessional rate/nil rate should be given only on production of the statutory forms. Even otherwise, the taxpayer would have claimed refund of this ITC and such refund would have been given only on production of the statutory forms. It has been presumed that forms for periods before April 15 would have either been presented or the State would have recovered the additional tax payable on account of non-production of statutory forms. Production of these forms is a statutory liability and the taxpayers have already availed the benefit. Question 40. Education Cess and S&H Education Cess carried forward in ER-1 – whether eligible for ITC under the CGST Act, 2017? Answer: No. Credit of Education Cess and SH Education Cess cannot be ca

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tinuous supply of goods? Answer: Such supplies are in the nature of continuous supply as the invoices are raised periodically. The individual dispatches may be covered under delivery challans and invoice may be issued for the supplies made during a period as per the contract. Question 45. In case of coal, the applicable Compensation Cess is a Fixed Amount of ₹ 400/- per MT. Under above situation, how such apportionment is possible since in case of FSA Sale, supply of different grade of coal as per availability of stock against single bulk receipt of Advance is to be adjusted? Answer: If tax rate is not determinable, the tax rate may be determined and paid on the amount of advance at 18%. Question 46. Whether Railway siding in mining industry exclusively utilized for effecting dispatch of taxable goodsvz.coal (i.e. directly used in the course or furtherance of business) will be treated as Plant and Machinery and ITC under GST will be allowed or treated as civil structure and ITC w

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Goods and Services Tax – Started By: – RameshBabu Kari – Dated:- 1-8-2017 Last Replied Date:- 4-9-2017 – Dear Experts,If we purchase from UNR person, received a bill for ₹ 4000, same day there was no others unregistered supplies made on that particular day. and another day he raised bill for 4500, same day no other transaction was made. like this he raised bill overal in a month amounts to ₹ 35,000/-. Does this transaction attracts RCM on consolidated basis on vendor wise on month e

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Goods and Services Tax – Started By: – Jayaraman Mani – Dated:- 1-8-2017 Last Replied Date:- 24-9-2017 – WE are rent a cab operator having billing customer at KM/Hours basis only passenger cars up to 7 seats capacityand also run Radio taxi for airport services. we have coded as 996412 SAC and charging 5% GST but NO ITCfor us. But some other travels says it should be 996601. But it is also 5% and not ITC. what is appropriate SAC code for our type of business mentioned above. – Reply By Rajagopal

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Goods and Services Tax – Started By: – S VENKAT – Dated:- 1-8-2017 Last Replied Date:- 1-8-2017 – A person who is providing Rent a cab service opts for payment of 5% GST (without ITC). Is he liable to pay under reverse charge on the amounts payable to unregistered suppliers(from whom he obtains rent a cab service)? If yes, how much is the rate? is it 18% or 5%? Can he avail input credit of the same? – Reply By Vamsi Krishna – The Reply = Only Cab operators falling under E-commerce (Call taxi, O

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Goods and Services Tax – Embroidered sarees to attract 5% GST: CBEC – TMI Updates – Highlights

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Goods and Services Tax – Started By: – SURYAKANT MITHBAVKAR – Dated:- 1-8-2017 Last Replied Date:- 12-8-2017 – We have to pay GST on URD purchased during the month of July-17 through petty cash expenses.The URD purchased debited in different account in our books like as Stationery,Travelling Expenses (Lodging & boarding), Repairs & Mainteinance, Labour Welfare, etc.My query is that can we segregate all expenses as per different HSN Code wise which is too difficult or we have to mention our final product HSN Code for all. – Reply By Vamsi Krishna – The Reply = It is actually tough to get HSN for all the petty exp. Maintain an excel sheet with HSN codes every month.Generally same exp will get repeated in the course of business. First

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Goods and Services Tax – GST – Dated:- 1-8-2017 – Question 1: Whether formulations cleared have to be assessed to GST under transfer price mechanism or on the basis of MRP printed on them? Answer: The assessment of drugs and formulations under GST would be on the basis of transaction value at each level of supply with end to end ITC chain for neutralizing the GST paid at the procurement level. Question 2: What are the requirements for clearance of physician samples distributed free of cost? Answer: In case of clearance of physician samples distributed free of cost, the ITC availed on the said samples has to be reversed in view of the provisions under Section 17(5)(h) of the CGST Act, 2017.No tax is payable on clearance of physician samples distributed free of cost as the value of supply is zero and no credit has been availed. Question 3: What is the procedure for movement of time expired medicines from the retail outlets to the manufacturer for destruction? Answer: In such cases, the

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l can clear the goods from the premises of such units if the principal declares these units as his additional place of business or where such units are themselves registered under section 25 of CGST Act, 2017. Question 5: What is the treatment of clearances effected to Special Economic Zones? Answer: The clearances effected to the SEZ are zero rated supplies in terms of Section 16 of the IGST Act, 2017. Accordingly, the supplier can claim refund of IGST paid on such supplies or clear the same under bond/ letter of undertaking and claim refund of the unutilised ITC. Question 6: Whether SEZ unit located in a State requires a separate registration under GST? Answer: The SEZ unit located in a State is treated as a business vertical distinct from other units located in the State outside the SEZ [first proviso to Rule 8 of the CGST Rules, 2017 read with Section 25 of the CGST Act, 2017]. Hence, separate registration is required to be obtained for the unit located in SEZ. Question 7: Whether

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s after 01st July 2017 and the said amount shall be credited in the electronic credit ledger after the central tax payable on such supply has been paid. In case where integrated tax is paid, the amount of ITC would be at the rate of thirty per cent and twenty per cent respectively of integrtaed tax. This facility is available for a maximum period of 6 months from the appointed day (i.e. upto 31st December, 2017) or till the goods are sold out, whichever is earlier. Question 9: Whether a manufacturer can avail deemed credit in respect of transitional stocks on the appointed day in respect of the stocks for which duty paying document is not available? Answer: In terms of the proviso to Section 140(3) of the CGST Act, 2017, the manufacturer is not eligible to avail deemed credit in respect of transitional stocks, for which duty paying document is not available. Such credit is not available in case of SGST except where VAT was payable on the basis of MRP. Question 10: Whether deemed credit

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ring the taxable supplies from an Unregistered Supplier has to raise invoice and pay GST on reverse charge basis in respect of such supplies. Question 12: What is the treatment of supplies made from erstwhile tax free zones? Answer: Since GST is a destination based consumption tax with seamless transfer of ITC credit, no exemptions are accorded to supplies made by erstwhile tax free zones. Accordingly, the goods cleared from erstwhile tax free zones would be subjected to GST from the appointed day (01st July, 2017). Question 13: What is the effect of non-payment of consideration in respect of taxable supplies received by the recipient? Answer: If the recipient fails to pay to the supplier the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice by the supplier, theamount of input tax credit availed proportionate to the amount of consideration not paid would be added to his output tax liability

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r document that may be prescribed in lieu of the e-way bill. Question 16: Whether discounts can be claimed as an abatement from the price for assessing GST? Answer: In terms of Section 15(3) of the CGST Act, 2017, the value of supply for charging GST shall not include any discount which is given before or at the time of the supply if such discount has been duly recorded in the invoice issued in respect of such supply. The value of supply shall also not include any discount which is given after the supply has been effected, if such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices and ITC attributable to such discount has been reversed by the recipient of the supply. Question 17: What are the relevant provisions for movement of transitional goods lying at the premises of contract manufacturer on or after appointed day? Answer: The procedure for movement of transitional goods lying at the premis

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Goods and Services Tax – GST – Dated:- 1-8-2017 – Question 1: What is Electronic Commerce? Answer: Electronic Commerce has been defined in Sec. 2(44) of the CGST Act, 2017 to mean the supply of goods or services or both, including digital products over digital or electronic network. Question 2: Who is an e-commerce operator? Answer: Electronic Commerce Operator has been defined in Sec. 2(45) of the CGST Act, 2017 to mean any person who owns, operates or manages digital or electronic facility or platform for electronic commerce. Question 3: Is it mandatory for e-commerce operator to obtain registration? Answer: Yes. As per Section 24(x) of the CGST Act, 2017 the benefit of threshold exemption is not available to e-commerce operators and they are liable to be registered irrespective of the value of supply made by them. Question 4: Whether a person supplying goods or services through e-commerce operator would be entitled to threshold exemption? Answer: No. Section 24(ix) of the CGST Act,

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commerce operator as if he is the supplier liable to pay tax in relation to the supply of such services. A similar provision for inter-State supply is provided for in Sec. 5(5) of the IGST Act, 2017. (Refer to Notification No. 17/2017- Central Tax (Rate) and 14/2017- Integrated Tax (Rate) dated 28.06.2017). Question 6: Will threshold exemption be available to electronic commerce operators liable to pay tax on notified services? Answer: No. Threshold exemption is not available to e-commerce operators who are required to pay tax on notified services supplied through them. Question 7: What is Tax Collection at Source (TCS)? Answer: The e-commerce operator is required to collect an amount at the rate of one percent (0.5% CGST + 0.5% SGST) of the net value of taxable supplies made through it, where the consideration with respect to such supplies is to be collected by such operator. The amount so collected is called as Tax Collection at Source (TCS). (Refer to Section 52(1) of the CGST Act,

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Answer: Yes, every e-commerce operator (other than an operator required to pay tax under section 9(5) of the CGST Act, 2017) is required to collect tax where consideration with respect to a taxable supply is collected by such e-commerce operator. (Refer to Section 52(1) of the CGST Act, 2017). Question 11: What time should the e-commerce operator make such collection? Answer: The e-commerce operator should make the collection during the month in which the consideration amount is collected from the recipient. Question 12: What is the time within which such TCS is to be remitted by the e-commerce operator to Government? Answer: The amount collected by the operator is to be paid to the government within 10 days after the end of the month in which amount was so collected. (Refer to Section 52(3) of the CGST Act, 2017). Question 13: How can actual suppliers claim credit of this TCS? Answer: The amount of TCS paid by the operator to the government will be reflected in the GSTR-2 of the actua

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52(5) of the CGST Act, 2017). Question 15: What is the concept of matching in e-commerce provisions and how it is going to work? Answer: The details of supplies furnished by every operator in his statement for the month will be matched with the corresponding details of outward supplies furnished by the concerned supplier in his valid return for the same month or any preceding month. Where the details of outward supplies declared by the operator in his statement do not match with the corresponding details declared by the supplier, the discrepancy shall be communicated to both persons. (Refer to Section 52(8) and Section 52(9) of the CGST Act, 2017). Question 16: What will happen if the details remain mismatched? Answer: The amount in respect of which any discrepancy is communicated and which is not rectified by the supplier in his valid return or the operator in his statement for the month in which discrepancy is communicated shall be added to the output liability of the said supplier i

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facility operated by the ECO. This will result in the same additional place of business being registered by multiple suppliers. Is this allowed? Answer: Yes, this is allowed. Any registered person can declare a premises as a place of business if he has requisite documents for use of the premises as his place of business (like ownership document, agreement with the owner etc.) and there is no restriction about use of a premises by multiple persons. The registered person shall have to comply with the requirements of maintaining records as per section 35 of the CGST Act, 2017 and Rules 56 to 58 of the CGST Rules, 2017. Question 19: Do travel agents providing services through digital or electronic platform qualify as ECOs? Will they be required to collect tax at source as per the provisions of Section 52 of the GST Act? Answer: Online travel agents providing services through digital or electronic platform will fall under the category of ECOs liable to deduct TCS under Section 52 of the CGS

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ed supplier as credit in his electronic cash ledger. Question 22: GST requires a dealer to maintain a consecutive serial number for invoices. If we are supplying from multiple locations, do we need to centrally maintain the invoice numbers serially? Answer: Section 46 of the CGST Rules, 2017 provides that invoice may have a consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters hyphen or dash and slash symbolised as – and / respectively, and any combination thereof, unique for a financial year . Therefore, a supplier can have multiple series for the same year, so long as the same series is not used across financial years. Therefore, you may have a different invoice series for each location having consecutive serial numbers running across that series. Question 23: There are sellers who are selling exempted or zero-tax goods like books through ECOs. Will marketplaces be required to collect TCS on such

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Goods and Services Tax – GST – Dated:- 1-8-2017 – Question 1: If I have multiple manufacturing units in a State/UT, do I have to register all my companies separately or as a group? Answer: You shall be granted a single registration in the State/UT. However, you have the option to take separate registration for each of your business verticals (as defined in section 2(18) of the CGST Act, 2017) in the State/UT. Question 2: A registered person is sending semi-cooked food from his manufacturing unit at Gurgaon to his branch in Delhi. Is he required to pay any tax? Answer: In accordance with the provisions of section 25(4) of the CGST Act, 2017, branches in different States are considered as distinct persons. Further, as per Schedule I, this constitutes supply made in the course or furtherance of business between distinct persons even if made without consideration. As it is an inter-State supply, the registered person is required to pay IGST. Question 3: A registered person is supplying ma

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the recipient reduces the claim of ITC to that extent if ITC was availed by him. (Credit Note must bear reference of original invoice No.) Question 6: What will be the rate of tax on cold drinks ( non- alcoholic beverages ) and ice cream when served in non-AC Restaurant along with food ? Answer: The rate of tax shall be 12 %. In the event of the supply being made in an AC restaurant, the rate of tax shall be 18%. If the restaurant was availing compoistion scheme (can do so only if ice cream is not manufactured by the restaurant), the rate of tax shall be 5% of the aggregate turnover. Question 7: The supplier has sold machinery for hotel industry on 28-06-2017. The purchaser has received the invoice and machinery on 05-07-2017. Whether ITC of Duty / VAT paid ( under the existing law ) on machinery can be allowed to be claimed ? Answer: No. Such credit is not admissible in case of machinery, being capital goods. As per Section 140 ( 5 ) of the CGST Act, 2017, credit of eligible duties a

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put in a unit container and bearing a registered brand name is taxable @ 5%. In accordance with the provisions of section 22 of the CGSTAct, 2017 (applicable in your case), a person becomes liable to be registered in the State/UT from where he makes taxable supply of goods or services or both if his aggregate turnover (which includes value of exempt supplies as well) in a financial year exceeds ₹ 20 Lakh. Hence, liability to get registration accrues in your case from the date the aggregate turnover in the current financial year exceeds ₹ 20 lakh. (ii) The suppliers of basmati rice (branded) are saying that they will charge 5% IGST and I must get myself registered to avail the ITC. What do I do? Answer: As rice put up in a unit container and bearing a registered brand name is taxable @ 5%, the suppliers of branded basmati rice located in other States would be charging IGST @ 5%, whose credit can be availed only when the recipient is registered under the CGST Act, 2017.There

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issued by a registered person under rule 46 of the CGST Rules, 2017. An unregistered person cannot issue a tax invoice. (v) Assuming, I apply for voluntary registration and obtain GST registration: (a) Will I get ITC on the IGST paid on branded rice lying in stock on the date prior to the date of my liability? Yes, a person who takes voluntary registration is entitled to take credit of input tax in respect of inputs held in stock on the day immediately preceding the date of grant of registration. In this connection, section 18(1)(b) read with section 25(3) of the CGST Act, 2017 refers. (b) Will I get ITC on CGST & SGST paid on packing materials, office stationery, computer and accounting software purchased and lying with me as stock as business assets on the date preceding the date from which I have become liable to pay tax under GST? A person who takes voluntary registration is entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-fi

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registration number? Only from date the registration has been granted. The tax invoice also can be issued from that date only. Prior to it neither you can issue tax invoice nor charge any tax on the invoice. (d) Will I have to issue tax invoice for all sales that I make i.e. branded or un-branded after getting registered? Rice put up in a unit container and bearing a registered brand name is taxable @ 5% and tax invoice has to be issued for supply of taxable goods [ Section 31(1) of the CGST Act, 2017 read with Rule 46 of the CGST Rules, 2017]. For sale of goods exempt from tax i.e. unbranded rice, a bill of supply has to be issued [ Section31(3)(c) of the CGST Act, 2017 read with Rule 49 of the CGST Rules, 2017]. (e) Is it compulsory to show the tax amount separately on the face of the tax invoice? Yes, it is mandatory under section 33 of the CGST Act, 2017. (f) I have three shops in the city, can I issue tax invoices using prefix for these different locations? Yes. It may, however,

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se one tax invoice for both food and liquor or not? Answer: Tax invoice has to be issued for supply of food, while for liquor a bill of supply has to be issued or any invoice as may be required under the provisions of local VAT or sales tax law of the concerned State. (iii) What will the rate of tax to be charged for supplies of food made from their takeaway counter? Answer: Tax has to be charged @18% on supplies of food made from their takeaway counter. (iv) Can they claim ITC of CGST and SGST paid on crockery items to be used in the restaurant? Answer: Yes, they can claim ITC of CGST and SGST paid on crockery items to be used in the restaurant. It may be stated that they are entitled to the credit of even IGST paid where such goods are procured from outside the State against a tax invoice. (v) Whether they will be eligible for ITC on crockery items purchased locally in the month of March, 2017 paying VAT of ₹ 72,500/-. The goods have been shown as business assets. Answer: If th

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Goods and Services Tax – GST – Dated:- 1-8-2017 – New Delhi, Jul 31 (PTI) Sarees, whether designer or embroidered, will attract a five per cent Goods and Services Tax (GST), the tax department said today. Clearing the air over whether sarees will be treated as garments or fabric, the Central Board of Excise and Customs (CBEC) said sarees are treated as fabric and it remains so even after embroidery etc as no new item emerges having a distinct name, character and use. Therefore the sarees, whether, embroidered or not would be taxed at the same rate at which the fabric is taxed, the CBEC said in a set of frequently asked questions (FAQs). It said 5 per cent GST is levied on job processes relating to the textile yarn (other than man-made fibr

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Goods and Services Tax – GST – Dated:- 1-8-2017 – New Delhi, Jul 31 (PTI) Finance Minister Arun Jaitley today introduced in the Lok Sabha two bills that would extend the Goods and Services Tax (GST) regime to Jammu and Kashmir. The Central Goods and Services Tax (Extension to Jammu and Kashmir) Bill, 2017, would provide for levy of the GST on goods sold and services rendered in the state, while the Integrated Goods and Services Tax (Extension to Jammu and Kashmir) Bill, 2017 seeks to levy the tax on inter-state movement of goods. Jaitley introduced both these bills in the Lok Sabha. While the GST, which replaced more than a dozen central and state levies, came into effect from July 1 all over the country, the Jammu and Kashmir assembly pas

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Goods and Services Tax – Started By: – THYAGARAJAN KALYANASUNDARAM – Dated:- 1-8-2017 Last Replied Date:- 1-8-2017 – Dear expert, I would like know what is the rate of tax for contract under painting work. The paint is under 28% and the labour under 18%. Here which one is principal supply. Thanks in advance. – Reply By Kishan Barai – The Reply = Principal supply is paint for painting work, so 28% according to my view. – Reply By Vamsi Krishna – The Reply = Generally for composite tax cases, principal rate of tax only applies.Its better to enter works contract with the contractor where he will get paint and bill you. In such case 18% tax shall be levied.(I hope the painting is for construction activity,pls read Works contract definition) –

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