Goods and Services Tax – GST – By: – Ramnarayan Balakrishnan – Dated:- 28-10-2017 – Vide my article dated 14 September 2017 published by Tax Management India, I had highlighted the problems from the legal and systems perspectives owing to delay in issue of SGST Notifications by the States. The problems I had highlighted in the above article remain unresolved to this date. Pending the above, there are two new developments which seem to have thrown up a new issue, which I have discussed below: 1. Reduced Rate of GST on penultimate export sale In what seems to be an effort to avoid blockage of cash flow to merchant exporters, the government had issued notifications dated 23 October 2017 to accord a reduced rate of 0.1% IGST and 0.05% CGST/ UT
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ion Cess (assuming that the car sold has engine capacity > 1500 cc) 20.00 GST Compensation Cess has not been notified as exempt (or rate reduced) by the Central Government, hence, it would continue to apply on penultimate export sale also. Total GST 20.10 Even though the government has accorded a great benefit for merchant exporters, they would be able to enjoy that benefit only if, The corresponding SGST notifications are issued immediately by the respective State Governments; and The Central Government clarifies on the applicability of GST Compensation Cess on sales preceding an export sale. 2. Purchases from Unregistered dealers – Reverse Charge Hitherto, purchases made from dealers who were not registered under GST triggered reverse
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