Gist of various GST notifications/ order giving effect to recommendations made in 22nd GST Council meeting
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 16-10-2017
Dear Professional Colleague,
Gist of various GST notifications/ order giving effect to recommendations made in 22nd GST Council meeting
The GST Council on October 6, 2017, has introduced slew of reforms in its 22ndmeeting held at New Delhi, amidst the anomalies going on in the Trade and Industry on various critical provisions of GST Law and Rules made thereunder. To give effect to the changes suggested, around 41 new Notifications and an Order were issued by the Government on October 13, 2017, under CGST, UTGST, IGST and Compensation Cess. Few more notifications are expected soon to implement left out changes like the concept of quarterly return for small businesses etc. For the ease of reference, we are summarising hereunder the important notifications, for your easy digest:
Notifications/Order pe
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of Composition Scheme –
The Central Government vide Order No. 01/2017-Central Tax dated October 13, 2017 has issued Central Goods and Services Tax (Removal of difficulties) Order, 2017, to clarify the following in relation to composition scheme:
* Supplier of food with services eligible for composition scheme even if exempt services are also provided: If a person supplies goods/services referred to in clause (b) of paragraph 6 of Schedule II of the CGST Act, 2017 [i.e. Supply of food & beverages with services] and also supplies any exempt services, including services by way of extending deposits, loans or advances in so far as the consideration is in form of interest or discount, the said person shall be eligible for the composition scheme under Section 10 of the CGST Act, 2017, subject to the fulfilment of all other conditions specified therein.
* Non-inclusion of exempt services for calculating aggregate turnover:Further, for computing aggregate turnover in order to determine el
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stered person procuring taxable goods/services from unregistered suppliers, shall not be required to pay CGST under reverse charge mechanism till March 31, 2018.
Notes:
* Similar notification is issued under the UTGST Act vide Notification No. 38/2017 – Union Territory tax (Rate) dated October 13, 2017.
* Notification No. 8 was effective from July 1, 2017
* No RCM on inter-state procurements made from unregistered person till March 31, 2018
The Central Government vide Notification No. 32/2017 – Integrated Tax (Rate) dated October 13, 2017, has exempted the inter-state supply of goods or services or both received by a registered person from any supplier, who is not registered, from the whole of the IGST leviable under Section 5(4) of the IGST Act, 2017 till March 31, 2018.
Therefore, any registered person procuring taxable goods/services from unregistered suppliers, shall not be required to pay IGST under reverse charge mechanism till March 31, 2018.
* RBI is liable to pay GS
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liable to pay GST under RCM in case of used vehicles, seized and confiscated goods, old and used goods, waste and scrap supplied by Government or Local Authority
Notification No. 4/2017 dated June 28, 2017 – Central Tax (Rate) [“RCM Notification”] specifies the category of goods on which GST is liable to be paid by the recipient under reverse charge in terms of Section 9(3) of the CGST Act, 2017.
The Central Government vide Notification No. 36/2017-Central Tax (Rate) dated October 13, 2017 has inserted new entry [S.No. 6] in the list of goods under RCM Notification, to provide that 'used vehicles, seized and confiscated goods, old and used goods, waste and scrap' supplied by CG, SG, Union Territory or Local Authority to any registered person, shall be covered under RCM i.e. CGST thereon shall be paid by such registered person under RCM.
Notes:-
* Similar notification is issued under the UTGST Act vide Notification No. 36/2017 – Union Territory tax (Rate) dated October 13, 2017.
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e quarter for which he has paid tax under composition scheme and shall furnish the returns as applicable to him for the period of the quarter prior to opting to pay tax under Section 10.
Amendment in Form GSTR – 1 – Column titled “Cess” under Table 6 (dealing with Zero rated supplies made to SEZ and deemed export) of Form GSTR – 1 is inserted.
Amendment in Form GSTR – 1A – Column titled “Cess” under Table 4 (dealing with Zero rated supplies made to SEZ and deemed export) of Form GSTR – 1A is inserted.
Insertion of new instruction for Form GSTR – 4 – i.e. “For the Tax periods July 2017 to September 2017 and October 2017 to December 2017, serial 4A of Table 4 shall not be furnished.” Serial No. 4A of Table 4 deals with inward supplies received from a registered supplier (other than supplies attracting reverse charge).
Sub- rule 3(A) in Rule – 3 is substituted – A person who has been granted registration on a provisional basis under Rule 24 or who has been granted certificate of r
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CGST Rate to 65% of the otherwise applicable CGST rate on Motor Vehicle falling under chapter heading 87 in the following cases:
Leasing of Motor Vehicle:- If the Motor Vehicle was purchased by the lessee prior to July 1, 2017 and supplied on lease before July 01, 2017.
Supply of Motor Vehicle:- If the supplier is a registered person and such supplier had purchased the Motor Vehicle prior to July 1, 2017 and has not availed input tax credit of central excise duty, Value Added Tax or any other taxes paid on such vehicles
Note:-
* Nothing contained in this notification shall apply on or after July 1, 2020
* Similar notification is issued under the UTGST Act vide Notification No. 37/2017 – Union Territory tax (Rate) dated October 13, 2017.
* Similar notification is issued under the IGST Act vide Notification No. 38/2017- Integrated Tax (Rate) dated October 13, 2017.
* Similar notification is issued under GST (Compensation to the States) Act for Motor Vehicle falling under chap
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hall not be required to pay GST on receipt of advances against supply of goods.
No compulsory registration for supplier of services making inter- state supplies but having aggregate turnover less than ₹ 20 lakhs/ ₹ 10 Lakhs
In terms of Section 24 of the CGST Act, 2017, persons making any inter-state taxable supply are required to take compulsory registration in GST irrespective of threshold limits.
The Central Government vide Notification No. 10/2017 – Integrated Tax dated October 13, 2017 has exempted the persons making inter-state supplies of taxable services and having an aggregate turnover not exceeding an amount of ₹ 20 lakhs / ₹ 10 lakhs (in case of Special Category States other than J&K) in a financial year from obtaining compulsory registration in GST.
Other important Notifications
Extension of time limit for filling of return in Form GSTR – 5A for the months of July, August & September 2017 upto November 20, 2017
The Commissioner vide Notification
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October 13, 2017, has 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 October 31, 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.
Exemption of GST on various notified services
The Government vide Notification No. 32/2017- Central Tax (Rate) dated October 13, 2017, has further amended the Notification No. 12/2017 – Central Tax (Rate), dated June 28, 2017, containing the list of services exempted from GST a
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ial Development Corporations or Undertakings or by any other entity having 50 per cent or more ownership of CG, SG, UT to the industrial units or the developers in any industrial or financial business area.
Note:-
* Similar notification is issued under the UTGST Act vide Notification No. 32/2017 – Union Territory tax (Rate) dated October 13, 2017.
* Similar notification is issued under the IGST Act vide Notification No. 33/2017- Integrated Tax (Rate) dated October 13, 2017.
Empowering State Tax officers for processing and grant of refund
The Central Government vide Notification No. 39/2017 – Central Tax dated October 13, 2017, has specified the proper officers appointed under the respective SGST Act, 2017 or UTGST Act, 2017 to act as proper officers (in respect of a registered person located in the territorial jurisdiction of the said officers who applies for the sanction of refund to the said officers),for sanctioning of refund under section 54 or section 55 of the CGST Act, 20
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