Central Excise – 1060/9/2017 – Dated:- 27-11-2017 – Circular No.1060/9/2017-CX F. No: 116/15/2017-CX-3 Government of India Ministry of Finance Department of Revenue Central Board of Excise & Customs New Delhi, dated 27th November, 2017 To The Principal Chief Commissioner/ Chief Commissioner of GST & Central Excise (Chandigarh, Meerut, Kolkata and Shillong zone) DG, GSTI, New Delhi Subject: Procedure for manual disbursal of budgetary support under Goods and Service Tax Regime to the units located in States of Jammu & Kashmir, Uttarakhand, Himachal Pradesh and North East including Sikkim. – reg. Madam/Sir, As you are aware, under the Central Excise regime as its existed prior to 01.07.2017, the units located in the states of Jammu & Kashmir, Uttarakhand, Himachal Pradesh and North East including Sikkim were eligible to avail exemption from payment of Central Excise duty in terms of area based exemption notifications. While ab-initio exemption was available to the units l
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nt of Industrial Policy and Promotion (DIPP), Ministry of Commerce & Industry which is the administrative department for the scheme, has issued a notification dated 05.10.2017 regarding "Scheme of budgetary support under Goods and Service Tax Regime to the units located in States of Jammu & Kashmir, Uttrakhand, Himachal Pradesh and North East including Sikkim." The gazette copy of the scheme, issued on 11.10.2017, can be accessed from website www.e-gazette.nic.in under Ministry of Commerce and Industry. The new scheme is introduced as a measure of goodwill, only to the units which were eligible for availing benefits under the earlier excise duty exemption/refund schemes but has otherwise no relation to the erstwhile schemes. The scheme of budgetary support has come into operation w.e.f. 01.07.2017 for an eligible unit (as defined under para 4.1 of the scheme) and shall remain in operation for residual period (as defined in para 4.3 of the scheme) in respect of specifi
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egistered person operating under Composition Scheme under Section 10 of the Central Goods and Services Act, 2017 the amount i.e. sum total of (i) & (ii) above shall be reduced by the same percentage as is the percentage value of inputs procured under Composition scheme out of the total value of inputs. 5. The budgetary support shall be disbursed from the budgetary allocation of DIPP, which shall further allocate to PAO, CBEC for its disposal. The eligible unit is required to obtain one time registration and file an application for payment of budgetary support. The application shall be processed by the Deputy/Assistant Commissioner of the Central Taxes for sanction of the admissible amount. The sanctioned amount shall be credited into bank accounts of the beneficiaries through PFMS platform of the Central Government. 6. The claim for the quarter ending September, 2017 has already become due. In order to mitigate the difficulties of the eligible units, it has been decided that units
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ll be signed by the proprietor/partner/managing director of the eligible unit or by the person authorized by him in this behalf and supported by the self-authenticated copies of the documents in support of information as per the application. The registration under GST is a necessary pre-requisite for the scheme. (ii) In case more than one eligible unit is operating under the same GSTIN separate registration is required to be obtained for each of the eligible units. (iii) The jurisdictional Deputy Commissioner/Assistant Commissioner of the Central Taxes would examine the application in terms of the scheme as notified on the basis of documents submitted along with the application for registration. (iv) A unique ID for each of the eligible units shall be allotted after registration and ID shall be indicated in the following manner: – sl.no./ name of Central Tax Division/name of Commissionerate/GSTlN. The ID shall be endorsed on all the three copies of the application. (v) It shall be ensu
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py of Inspection report would be forwarded to the Assistant/Deputy Commissioner having jurisdiction over the eligible unit. 9. Submission of application for budgetary support by the eligible unit for quarter ending September, 2017 and its sanction (i) An eligible unit after allotment of the Unique ID may file an application for claiming budgetary support under the provisions of para 5.7 of the scheme in the format attached to this circular. The application shall be filed by the eligible unit only after return for the quarter has been filed and tax as per return is paid. (ii) Once application is filed, duly supported by the prescribed document, the same shall be processed for sanction. The claim shall be sanctioned after verification of the tax paid by the eligible unit. The details relating to tax payment in cash and input tax credit availed, utilized including purchases made from a composition dealer during the quarter shall be available in the GST returns of the taxpayer, which are a
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f additional information and the refund application the jurisdictional Deputy Commissioner/Assistant Commissioner shall ensure that budgetary support is limited to the tax paid in cash after utilization of the input tax credit on the specified goods manufactured by the eligible unit. The return filed by the unit may be covering the entire transactions taking place outside the eligible unit in the same GSTIN. (iv) Further, in cases where the other unit operating under same GSTIN, is supplying the inputs to the eligible unit as such or after manufacture , the credit availed by supplying unit on the inputs would have to be factored for determining the input tax credit of the eligible unit. The information in terms of para 5.9.2 of the scheme is required to be submitted by the eligible unit duly certified by a Chartered Accountant. The jurisdictional Deputy/Assistant Commissioner in such cases shall sanction the budgetary support after reducing input tax credit relatable to inputs used by
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eneficiaries through PFMS would be issued shortly. In the interim, trade facility may be issued to initiate the process of registration and receipt of application for payment of budgetary support for the quarter July, 2017 to September, 2017. 11. Difficulty faced, if any, in the implementation of the Circular should be brought to the notice of the Board. Hindi version will follow. Yours faithfully, (Rohan) Under Secretary CX3 Encl.: As above. Form for Registration of eligible units for budgetary support 1. GSTIN No. 2. Legal Name 3. Trade Name, if an 4. Central Excise Registration No. 5. Name of the unit 6. Address of the unit 7. State where the unit is located 8. Date of commencement of commercial production specified goods-wise 1. 2. 3 . . . . 9. Authorisation issued by the State Government, if an 10. Erstwhile Central Excise Notification under which exemption was being availed up to 30.06.2017 11. Residual Period of exemption beyond 30.06.2017 which the unit was entitled for under t
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nd 2017-18 (up to 30th June 2017) . Signature (Proprietor/MD/Partner/ Authorised Director/Authorised Signatory) Seal of the registered entity under GST Application for Budgetary Support 1. Unique ID No. 2. Legal Name 3. Trade Name, if an 4. Address of the eligible unit 5. Tax Period From (DD/MM/YY) To (DD/MM/YY) 6. Amount of Total Tax Paid during the quarter in respect of GSTIN as per the return Name of the Tax Tax Cash Credit Balance of Credit, any Total value of Taxable inputs received Total receipts from composition dealers (A) (B) (C) (D) (E) (F) (G) Central Tax State/ UT Tax Integrated Tax Cess Total Information under this column includes all the business activities of the eligible unit viz. (i) Specified goods manufactured (ii) non-specified goods manufactured (iii) Trading of goods(iv) any other activity under the same GSTIN 7. Amount of Tax Paid out of 6 above (During the quarter in respect of manufacture by the eligible unit in respect of specified goods under the same GSTIN)
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pplies = {(CGST in cash- Balance of (ITC of CGST+ITC of1GST)) * 58%) * (1- Value under(G)} / Value under (F) (b)Budgetary support in respect of inter-state supplies {(IGST in cash- Balance# of (ITC of IGST+ ITC of CGST)) * 29%) * (1- Value under(G)} / Value under (F) # Balance to be taken under (b) after excluding amount considered under (a) above (c) Total Budgetary Support (a) + (b):- 9. Value addition achieved: (refer para 5.8 of notification dated 05.10.2017) 10. Details of Bank Account (As indicated in Registration form by the eligible unit) i. Account Number ii. Name of the Bank iii. Bank Account Type iv. Name of Account Holder v. Address of Bank Branch vi. IFSC vii. MICR Declaration: (i) I hereby declare that the good(s) under the claim of budgetary support have been manufactured by the eligible unit namely, M/S…. .. . . . . . …operating at the address …….. in the State of . . ….. The goods fall in the category of specified goods defined under the scheme of budgetary s
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