Author: admin_gst

Customs – Import – Export – SEZ – By: – Kishan Barai – Dated:- 24-7-2017 Last Replied Date:- 27-7-2017 – In the GST regime, IGST and GST Compensation cess will be levied on imports by virtue of sub-sections (7) & (9) of Section 3 of the Customs Tariff Act, 1975. Barring a few commodities such as pan masala, certain petroleum products which attractlevy of CVD, majority of imports would attract levy of IGST. Further, a few products such as aerated waters, tobacco products, motor vehicles etc, would also attract levy of GST Compensation Cess, over and above IGST. IGST andGST Compensation cess, wherever applicable, would be levied on cargo that would arrive on or after 1st July, 2017. It may also be noted that IGST would also be levied on cargo which has arrived prior to 1st July but a bill of entry is filed on or after 1st July 2017.Similarly ex-bond bill of entry filed on or after 1st July 2017 would attract IGST and GST Compensation cess, as applicable.In the case where cargo arriv

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T Act, 2017. The rates applicable to goods of Chapter 98 are as under: • 9801- Project Imports- 18% • 9802- Laboratory Chemicals- 18% • 9803- Passenger baggage – Nil Rate • 9804- Specified Drugs and medicines for personal use- 5% • 9804- Other drugs and medicines for personal use- 12% • 9804- All other dutiable goods for personal use- 28% Likewise, different rates of tax have been notified for goods attracting Compensation Cess which is leviable on 55 item descriptions (of supply). These rates are mostly ad valorem. But some also attract either specific rates (e.g. coal) or mixed rates (ad valorem + specific) as for cigarettes. The coverage of the goods under GST compensation cess isavailable on CBEC website along with their HSN codes and applicable cess rates.The IGST Rates of Goods, Chapter wise IGST rate, GST Compensation Cess rates, IGST Exemption/Concession are available on CBEC website for trade and departmental officers as well. Valuation and method

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include education cess or higher education cess as well as anti-dumping and safeguard duties.The inclusion of anti-dumping duties and safeguard duty in the value for levy of IGST and Compensation Cess is an important change. These were not hitherto included in the value for the levy of additional duty of customs (CVD) or Special Additional Duty (SAD).The IGST paid shall not be added to the value for the purpose of calculating Compensation Cess. Although BCD, Education Cesses and IGST would be applicable in majority of cases, however, for some products CVD, SAD or GST Compensation cess may also be applicable. For different scenarios the duty calculation process has been illustrated in Annexure – I of this document. IV. Changes in import procedures: Importer Exporter Code (IEC): In GST regime, GSTIN would be used for credit flow of IGST paid on import of goods. Therefore, GSTIN would be the key identifier. DGFT in its Trade Notice No. 09 dated 12.06.2017 has stated that PAN would be the

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ime, Customs duties will be exempted on imports made under export promotion schemes namely EPCG, DEEC (Advance License) and DFIA. IGST and Compensation Cess will have to be paid on such imports. The EXIM scrips under the export incentive schemes of chapter 3 of FTP (for example MEIS and SEIS) can be utilised only for payment of Customs duties or additional duties of Customs, on items not covered by GST, at the time of import. The scrips cannot be utilized for payment of Integrated Tax and Compensation Cess. Similarly, scrips cannot be used for payment of CGST, SGST or IGST for domestic procurements. VI. EOUs and SEZ: EOUs/EHTPs/STPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable under Section 3 (1) and 3(5) of the Customs Tariff Act. GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input tax credit (ITC). This ITC can be utilized for payment of GST

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fied under heading 9801 and duty shall be levied @ 18%. IX. Baggage: Full exemption from IGST has been provided on passenger baggage. However, basic customs duty shall be leviable at the rate of 35% and education cess as applicable on the value which is in excess of the duty free allowances provided under the Baggage Rules, 2016. X. Refunds of SAD paid on imports: The need for SAD refunds arose mainly on account of the fact that traders or dealers of imported goods were unable to take credit of this duty (which was a Central tax) while discharging their VAT or Sales tax liability (which was State levy) on subsequent sale of the goods. Unless corrected through a mechanism such as refund (of one of the taxes) this would have resulted in double payment of tax. With the introduction of GST on 01.07.2017, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock, is permissible to registered persons not liable to be re

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however the credit of basic customs duty (BCD) would not be available. In order to avail ITC of IGST and GST Compensation Cess, an importer has to mandatorily declare GST Registration number (GSTIN) in the Bill of Entry. Provisional IDs issued by GSTN can be declared during the transition period. However, importers are advised to complete their registration process for GSTIN as ITC of IGST would be available based on GSTIN declared in the Bill of Entry. Input tax credit shall be availed by a registered person only if all the applicable particulars as prescribed in the Invoice Rules are contained in the said document, and the relevant information, as contained in the said document, is furnished in FORM GSTR-2 by such person. Customs EDI system would be interconnected with GSTN for validation of ITC. Further, Bill of Entry data in non-EDI locations would be digitized and used for validation of input tax credit provided by GSTN. – Reply By KASTURI SETHI – The Reply = Dear Sir, By entering

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ighted with this article. Very useful. Thanks for all your efforts!!.I have a query. EOU plans to import capital goods (machinery) for manufacture. What is the import duties applicable? If IGST is applicable, how we can get refund? There is no DTA sales. In pre-GST scenerio, all import duties on capital goods are exempted to the unit.Please clarify.Thanks and regards,CA Sekhar PN – Reply By JAIPRAKASH RUIA – The Reply = May be import under notification 52/2003-Custom and IGST refund through export under rebate in place of BOND/LUT. – Reply By Kishan Barai – The Reply = An EOU will have to pay the applicable GST on the import or domestic sourcing of inputs (goods or services). The EOUs will continue to get exemption from payment of the basic Customs Duty, however they will have to pay IGST on imports. On the IGST paid on import of inputs, ITC would be available which can be used for payment of GST payable on the goods cleared in the DTA. Refund of the unutilized ITC can also be claimed

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any benefits taken on procurement of inputs from DTA under Chapter 7 of FTP and used in the manufacture of products under DTA sale. Supply of goods from one EOU to another EOU (inter-unit transfer) will require payment of applicable GST. The BCD exemption availed on inputs from the supplier EOU, used in such transferred goods would have to be reversed by the recipient EOU at the time clearance of such goods in DTA. Same provisions apply on sending of Goods for Job work. For GST exempt Goods like Petroleum products, the existing provisions provided under notification no. 52/2003-Cus, notification no. 22/2003-CE and Notification no. 23/2003-CE will continue to apply for import, domestic procurement and domestic clearance. – Reply By JAIPRAKASH RUIA – The Reply = Dear Sir, Whether 52/2003-Custom is not available to EOU for duty free Import of input and capital goods subject to condition of said notification. – Reply By Kishan Barai – The Reply = No, IGST has to be paid post GST – Reply B

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Goods and Services Tax – GST – By: – Craig Dsilva – Dated:- 24-7-2017 Last Replied Date:- 30-12-1899 – Weekends don't count unless you spend them doing something relaxing. With the introduction of the Goods and Services Tax on 1st July 2017 spending on leisure or recreation activities is expected to burn a hole in your pocket. Below is a sample illustration: Mr X and Mrs X are newly married. They are in their early 30 s. Mr X earns 7 Lakhs p.a. while Mrs X earns 7.56 Lakhs p.a. Hence their total income is 14.56 Lakhs (assuming net take home pay). They decided to follow a simple process of spending 25% of their income on Savings, Investments, Necessities and Recreational expenses respectively. 25% of ₹ 14.56 Lakhs is ₹ 3.64

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200 28% 2240 1,040 9 Shopping Mall (Branded Merchandise) 9000 12.5% 1125 18% 1620 495 10 Yacht Cruise (2 Hours) 10000 18.5% 1850 28% 2800 950 11 Casino/Betting (Horse Race) 11000 18% 1980 28% 3080 1,100 12 Upgrading Gadgets (Once in 3 Months) 12000 6% 720 12% 1440 720 13 Resort Vacation 2N/3D (Tariff>2500) 13000 22.5% 2925 18% 2340 (585) Total 91000 Net Increase 4,545 *Note: This refers to the average rate of tax in India. It includes Entertainment tax, Service Tax, Value Added Tax and other local body taxes. As you can see from the sample illustration above, the couple will have to spend 5% {(4545/91000)*100} more on recreational expenses on account of GST. Leisure lowers Stress and Depression. Mental wellness is an important part of yo

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iddle class person usually in a 3 star with a tariff of ₹ 5000 the person spends ₹ 900 as GST i.e. at the rate of 18%. If a rich person books a hotel room in a 5 star, with a tariff of ₹ 15000 the person spends ₹ 2700 as GST at the same rate of 18% which is more than the ₹ 900 spent by the middle class person. If the person is taxed at the current rate of 28% for 5 star hotel room then the person has to spend Rs 4200. The rich person will argue that this is a double punishment, since such a person is already paying more income tax charged at a higher slab rate. Irrespective of the view and counter view mentioned above, Mr X and Mrs X will realise that there is an increase in their weekend expenses at an average

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GST – States – 01/2017-GST – Dated:- 24-7-2017 – GOVERNMENT OF JHARKHAND COMMERCIAL TAXES DEPARTMENT File No.-Va0 Kar/GST/16/2017 2764 Ranchi, Dated-24.07.2017 Order No. 01/2017-GST Subject: Extension of time limit for filing intimation for composition levy under sub-rule (1) of rule 3 of the Jharkhand Goods and Services Rules, 2017. In exercise of the powers conferred by Section 168 of the Jharkhand Goods and Services Tax Act, 2017 (Jharkhand Act 12, 2017) I hereby extend the period for filing

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Customs – Public Notice: -23/2017 – Dated:- 24-7-2017 – OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS, CUSTOM HOUSE, AHMEDABAD – 380009. F. No.:- VIII/48-74/Cus/T/2017 Dated:-24.07.2017 Public Notice: -23/2017 Sub: Operational problems being faced by EOU in GST regime consequent to amendment in Notification no. 52/2003-Customs dated 31-3-2003. Attention of the Trade is invited to Board's Circular No. 29/2017-Customs issued vide F. No. DCEP/EOU/CST/16/2017 dated 17.07.2017. In this regard as it is known that EOUs were allowed duty free import of goods under notification No.52/2003-Custom dated 31-3-2003. However, in view of CST the said notification has been consequently amended by notification No. 59/2017-Custcms dated 30-6-2017. 2.

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he can give requirements for the subsequent period. Also there is no bar in the said rules to amend/give additional information. Therefore, the units can amend/modify/add such information from time to time as per the requirement of import of goods. (iii) For the transitional period upto 31-7-2017, the EOU/EHTP/STP units would have option to follow the procedure of Rule (5) of IGCR, rules or use procurement certificate for import of goods. (iv)The inter unit transfer would be on invoice on payment of applicable CST taxes. However, such transfer would be without payment of custom duty. The supplier unit will endorse on such documents the amount of custom duty, availed as exemption, if any, on the goods intended to be transferred. The recipien

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Goods and Services Tax – Started By: – THYAGARAJAN KALYANASUNDARAM – Dated:- 23-7-2017 Last Replied Date:- 26-7-2017 – Dear expert, We are running a tax consultancy firm and registered with the service tax department and discharging the taxes on the receipt basis, because our turnover less than 50 lakhs p.a. My question is if we receive the payment from the clients, against which we raised the invoices and rendered the services prior to appointed day. 1. How to discharge the service tax liability since this receipt may continue more than 1 year. Whether should we pay existing tax or new gst on the services rendered and invoices raised before appointed day. 2. The final return of service tax is between April2017 and June 2017, then how to d

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5, when HE and SHE Cesses were abolished, Govt. allowed to transfer the credit on these cesses into BED. Ed. Cesses in Central Excise sector were allowed to be used in BED in respect of invoices which were issued on or before 28.2.15 and goods(inputs) were received on 1.3.15 or after 1.3.15. Similarly, in respect of Service Tax Sector, credit on Ed.Cesses were allowed to used in BED in respect of those invoices which were issued on or before 30.6.15 but input services were received on or after 1.7.15. – Reply By MARIAPPAN GOVINDARAJAN – The Reply = As indicated by Shri Sethi GST will not attract in your case. In my opinion you may pay the amount as and when received. There is no instruction whether the facility of payment of service tax in

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Goods and Services Tax – Can an Importer of goods or services opt to pay tax under composition scheme under GST? – TMI Updates – Highlights

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Goods and Services Tax – Can an exporter of goods opt to pay tax under composition scheme under GST? – TMI Updates – Highlights

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Goods and Services Tax – Whether a person who is opting for Composition u/s 10 of the GST, is required to pay GST at composite rate on Exempted Goods also? – TMI Updates – Highlights

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Dated:- 23-7-2017 – Section 10 – Composition levy. THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 Yes, as per the provisions of section 10, tax at specified rate is payable on the turnover in State or turnover in Union territory As per the Section 2(11), the meaning of “turnover in State” or “turnover in Union territory” is as follows: (112) “turnover in State” or “turnover in Union territory” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis) and exempt supplies made within a State or Union territory by a taxable person, exports of goods or services or both and inter-State supplies of goods or services or both made from the State or Union ter

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ply in Section 2(47) of the CGST Act is as under: (47) exempt supply means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply; A combined reading of the above provisions suggests that a person who is making supplies of exempted goods as well as taxable goods is not eligible to opt for composition scheme itself. If such is the case, the composition supplier will not be liable to pay composition rate tax on the exempted goods. However, the above interpretation would lead to a large number of small traders ineligible to opt for composition. It is the general practice that

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Dated:- 23-7-2017 – Section 10 – Composition levy. THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 As per the scheme of the GST, the intention of extending the benefit of composition scheme to small manufacturer or trader (including Dabhas) only. Therefore, it can be construed clearly that since the turnover the previous year is a determining factor for eligibility of composition scheme, a registered person who was making inter-state supplies during the previous year, cannot be allowed to avail th

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Goods and Services Tax – Started By: – satbir singh wahi – Dated:- 23-7-2017 Last Replied Date:- 24-7-2017 – SirPls guide what does no itc mean here. – Reply By vk agarwal – The Reply = it maens , thje motor cab owner will not be entitled to any input tax credit such as credit of GST paid on repair of car etc – Reply By satbir singh wahi – The Reply = SirIf cab operator uses services of other unregistered cab operator then pays under reverse charge @5%, whether itc will be available. – Reply By THYAGARAJAN KALYANASUNDARAM – The Reply = Dear sir,If the cab operator uses the services from other operators who is not registered under GST, the receiver has to pay RCM @ 5% on the value of services and no ITC eligible on any inputs. – Reply By Ra

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Goods and Services Tax – Started By: – THYAGARAJAN KALYANASUNDARAM – Dated:- 23-7-2017 Last Replied Date:- 25-7-2017 – Dear expert, What is the rate of tax for selling of cinema film by the producer.Thanks iin advance. – Reply By Rajagopalan Ranganathan – The Reply = Sir, Cinema film will fall under heading 3706 attracting CGST @ 9% vide Sl. No. 78 of Notification No.1/2017-Central Tax (Rate) dated 2806.2017. – Reply By THYAGARAJAN KALYANASUNDARAM – The Reply = Dear sir, Thanks for your valuabl

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Dated:- 23-7-2017 – Rule 3 – Intimation for composition levy Rule 6 – Validity of composition levy Central Goods and Services Tax Rules, 2017 The option to pay tax under composition levy would remain

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Dated:- 23-7-2017 – Section 10 – Composition levy. THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 Yes, there is no restriction of person availing the Composition scheme to import the goods or services. Obviously, at the time of Import, he has to pay IGST for which may not be eligible for input tax credit, but he can still avail the benefit of composition scheme. – Reply By THYAGARAJAN KALYANASUNDARAM – The Reply = Dear sir, As per my understanding the service provider is not eligible under compos

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Can an exporter of goods opt to pay tax under composition scheme under GST? – Dated:- 23-7-2017 – Section 10 – Composition levy. THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 No. Supplies made Outside

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Dated:- 23-7-2017 – Rule 5 – Conditions and restrictions for composition levy Central Goods and Services Tax Rules, 2017 Section 10 – Composition levy. THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 No

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Whether a person having turnover much below ₹ 75 Lakhs (Rs. 50 lakhs as the case may be) as on 30-6-2017, and having stock of goods purchased against C form, F form etc. or import goods or inter-state purchases, is eligible for availing the benefit of Composition Scheme under GST? – Dated:- 23-7-2017 – Rule 5 – Conditions and restrictions for composition levy Central Goods and Services Tax Rules, 2017 The answer is No. Any registered person who is holding stock on the appointed day i.e. 1.

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Goods and Services Tax – Whether a person having turnover much below ₹ 75 Lakhs (Rs. 50 lakhs as the case may be) as on 30-6-2017, and having stock of goods purchased against C form, F form etc.

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Dated:- 23-7-2017 – Rule 5 – Conditions and restrictions for composition levy Central Goods and Services Tax Rules, 2017 No. the provisions of Rule 5 specifically prescribes that, he is neither a cas

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Goods and Services Tax – GST – Who are not eligible to opt for composition scheme? Whether certain manufacturers (like Ice cream, Pan masala, Tobacco etc.) are excluded from opting composition scheme?

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Goods and Services Tax – Started By: – KIRTIKUMAR PUROHIT – Dated:- 23-7-2017 Last Replied Date:- 24-7-2017 – Works Contractor done work on material; as per specification of work provided by manufacturer, in manufacturer premises, work contractor with his man power, here my question is:1 in this case service call as Works Contract or Manpower supply? 2 Any Exemption is available in both case ? if no3 what is GST Code and Rate? – Reply By vk agarwal – The Reply = 1. This is not a works contract

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Goods and Services Tax – Started By: – RameshBabu Kari – Dated:- 23-7-2017 Last Replied Date:- 26-7-2017 – Dear Experts,how to deal with reverse charge if service recipient already registered under GST.In this case, can service provider can issue the invoice as normal without RCM if service recipient was already registered. – Reply By Ganeshan Kalyani – The Reply = Section 9 (3) of CGST Act, 2017 provides a list of services for which the recipient of supply of service shall have to pay GST under reverse charge. The service provider providing those services is exempted from taking registration. They may surrender there registration. Even if they are registered they are not suppose to collect and pay tax to the government. – Reply By KASTURI

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Goods and Services Tax – Started By: – THYAGARAJAN KALYANASUNDARAM – Dated:- 23-7-2017 Last Replied Date:- 25-7-2017 – Dear expert, Can you explain elaborately the position of high sea sales under the GST regime. Thanks iin advance. – Reply By Ganeshan Kalyani – The Reply = In my view it is export of goods. Export can happen with payment of GST or without payment of GST. – Reply By THYAGARAJAN KALYANASUNDARAM – The Reply = Dear expert, As per sec 5(2) of CST act, when the importer import the goods instead of taking delivery from customs, they will transfer the title and the original buyer will file the bill of entry with the respective authority after paying the duty and fees. And subsequently the importer will issue the invoice to the buy

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Goods and Services Tax – GST – if a person from outside the sate comes to the shop of the composite dealer and asks for Invoice, the composite dealer may gently refuse to mention the place of supply as outside his state. – TMI Updates – Highlights

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Goods and Services Tax – GST – a supplier of goods supplies through electronic commerce operator may be eligible to avail composition scheme before the date on which the provisions of Section 52 are made operative. – TMI Updates – Highlights

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